Supplemental Information for Investor Day
December 6, 2004
December 6, 2004
Definition of Return on Invested Capital
Return 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:
Definition of Total Capital
For our ratio of debt and preferred securities to total capital, total capital is the sum of total debt, preferred securities of subsidiary, minority owner's interest in subsidiaries and total stockholder's equity.