(a) Income from continuing operations, before interest expense, income tax provision, and purchase accounting depreciation and amortization, for the most recent twelve months, divided by;

(b) average invested capital for the year, calculated as a five quarter rolling average using the sum of short-term debt, long-term debt, shareowners’ equity, and accumulated amortization of goodwill and other intangible assets, minus cash and cash equivalents and short-term investments, multiplied by;

(c) one minus the effective tax rate for the twelve-month period.

ROIC is calculated as follows:
 
Twelve Months Ended
June 30,
2013   2012
(a) Return
Income from continuing operations $ 736.2 $ 743.6
Interest expense 60.9 59.8
Income tax provision 220.4 223.5
Purchase accounting depreciation and amortization 19.7   20.1  
Return 1,037.2   1,047.0  
 
(b) Average invested capital
Short-term debt 227.2 175.8
Long-term debt 905.0 905.0
Shareowners’ equity 1,954.1 1,890.6
Accumulated amortization of goodwill and intangibles 775.4 742.6
Cash and cash equivalents (931.1 ) (902.4 )
Short-term investments (357.2 ) (162.5 )
Average invested capital 2,573.4   2,649.1  
 
(c) Effective tax rate
Income tax provision 220.4 223.5
Income from continuing operations before income taxes $ 956.6   $ 967.1  
Effective tax rate 23.0 % 23.1 %
 
(a) / (b) * (1-c) Return On Invested Capital 31.0 % 30.4 %

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