AutoNation 2000 Annual Report Download - page 155

H. "Controllable Profits" means as to any Plan Year, a business unit's
Annual Revenue minus (a) cost of sales, (b) research, development, and
engineering expense, (c) marketing and sales expense, (d) general and
administrative expense, (e) extended receivables expense, and (f) shipping
requirement deviation expense.
I. "Customer Satisfaction MBOs" means as to any Participant for any
Plan Year, the objective and measurable individual goals set by a "management by
objectives" process and approved by the Committee, which goals relate to the
satisfaction of external or internal customer requirements.
J. "Determination Date" means as to any Plan Year, (a) the first day of
the Plan Year, or (b) if later, the latest date possible which will not
jeopardize the Plan's qualification as performance-based compensation under Code
Section 162(m).
K. "Disability" means a permanent and total disability determined in
accordance with uniform and nondiscriminatory standards adopted by the Committee
from time to time.
L. "Earnings Per Share" means as to any Plan Year, the Net Income or
Pro Forma Net Income, divided by a weighted average number of shares of Company
common stock outstanding and dilutive common stock equivalent shares deemed
outstanding.
M. "Individual MBOs" means as to a Participant for any Plan Year, the
objective and measurable goals set by a "management by objectives " process and
approved by the Committee (in its discretion).
N. "Maximum Award" means as to any Participant for any Plan Year, $2
million. The Maximum Award is the maximum amount which may be paid to a
Participant for any Plan Year.
O. "Net Income" means as to any Plan Year, the income after taxes of
the Company and its consolidated subsidiaries for the Plan Year determined in
accordance with generally accepted accounting principles, provided that prior to
each Plan Year, the Committee shall determine whether any significant item(s)
shall be included or excluded from the calculation of Net Income with respect to
one or more Participants. In addition, Net Income will be calculated without
regard to the following events during the Plan Year: (i) any change in
accounting standards that may be required by the Financial Accounting Standards
Board, (ii) all one-time charges and write-offs, and (iii) all expenses and
income attributable to any acquisition of or merger with a business (other than
those anticipated acquisitions or mergers that the Committee determines prior to
the Plan Year should be included in the calculation of Net Income).
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P. "New Orders" means as to any Plan Year, the firm orders for a
system, product, part, or service that are being recorded for the first time as
defined in the Company's Order Recognition Policy.
Q. "Participant" means as to any Plan Year, an officer of the Company
who has been selected by the Committee for participation in the Plan for that
Plan Year.
R. "Payout Formula" means as to any Plan Year, the formula or payout
matrix established by the Committee pursuant to Section III, D, below, in order
to determine the Actual Awards (if any) to be paid to Participants. The formula
or matrix may differ from Participant to Participant.
S. "Performance Goals" means the goal(s) (or combined goal(s))
determined by the Committee (in its discretion) to be applicable to a
Participant for a Plan Year. As determined by the Committee, the Performance
Goals applicable to each Participant shall provide for a targeted level or
levels of achievement using one or more of the following measures: (a) Annual
Revenue, (b) Controllable Profits, (c) Customer Satisfaction MBOs, (d) Earnings