Average Return on Net Capital Employed

Average Return on Net Capital Employed. Employer's Average Return on Net Capital Employed, or "RONCE," for any performance period shall be expressed as a percentage and determined by dividing (1) the sum of the Employer's Return on Net Capital Employed for each year during the performance period, by (2) the number of years in the performance period. Return on Net Capital Employed is defined as earnings before interest and taxes ("EBIT") divided by one-half of the sum of the beginning period date (January 1 of a given year in the... performance period) net capital employed ("NCE") and the ending period date (December 31 of a given year in the performance period) NCE. NCE is the book value of equity plus long-term and short-term debt, plus long-term and short-term asset retirement obligations, less cash, excluding restricted cash. View More