Press Releases
Supplemental Information Regarding Conference Call Remarks of October 25, 2004Return on Invested Capital (ROIC) is a measure of the return we earn on the capital invested in our businesses. Improving ROIC is a primary objective of our Global Business Plan. Our incentive compensation plans also contain ROIC objectives. We calculate ROIC on a rolling average four quarter basis using reported quarterly financial information. We calculate ROIC as follows:
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E minus (F - G)
Where for each of the most recent four quarters:
A = total reported operating profit for the periodB = total reported nonoperating expense for the period
C = average effective tax rate for the period
D = total reported share of net income of equity companies for the period
E = average total assets for the period
F = average total current liabilities for the period
G = average debt payable within one year for the period
