ROIC Determination Sample Clauses
The ROIC Determination clause defines how Return on Invested Capital (ROIC) is calculated and assessed within an agreement. It typically outlines the specific formula, the financial metrics to be included or excluded, and the time periods over which ROIC is measured. For example, it may specify whether certain expenses or capital investments are factored into the calculation. The core function of this clause is to ensure a clear, consistent, and objective method for evaluating financial performance, which can be critical for triggering incentives, performance benchmarks, or other contractual outcomes.
ROIC Determination. Each component of ROIC and the calculation of any postretirement plans amounts recorded in the Corporation’s Statement of Stockholders’ Equity shall be determined by the Committee in accordance with generally accepted accounting principles in the United States and be based upon the comparable numbers reported on the Corporation’s audited consolidated financial statements or, if audited financial statements are not available for the date or period on which ROIC is being determined, the Committee shall make its determination in a manner consistent with the historical practices used by the Corporation in determining the components of ROIC and postretirement plans amounts recorded in the Corporation’s Statement of Stockholders’ Equity for purposes of reporting those items on its audited financial statements, as modified by this paragraph. Notwithstanding the foregoing, ROIC will be adjusted to exclude the impact of any change in accounting standards or adoption of any new accounting standard that was not included in the 2020 Long Range Plan that is required under generally accepted accounting principles in the United States and that is reported in the Corporation’s filings with the Securities and Exchange Commission as having a material effect on the Corporation’s consolidated financial statements. ROIC, as included in the 2020 Long Range Plan, and the change in ROIC for purposes of the ROIC Performance Factor, will be determined in accordance with this Section 4.1(b).