304 / 488
Chapter
26 /
Earnings Per Share (lAS 33)
295
• Instruments (including contingently issuable shares) that could potentially dilute basic earn–
ings per share in the future, but were not included in the calculation of diluted EPS because
they are antidilutive for the period(s) presented.
• A description of those ordinary share transactions or potential ordinary share transactions
that occur after the balance sheet date and that would have changed significantly the number
of ordinary shares or potential ordinary shares outstanding at the end of the period if those
transactions had occurred before the end of the reporting period. Examples include issues and
redemptions of ordinary shares, warrants and options.
10 .
EXTRACTS FROM PUBLISHED F INANCIAL STATEMENTS
10.1 ADIDAS GROUP, Annual Report 2006
Notes to the Consolidated F inancial Statements
29. Earnings Per Share
Basic earnings per share are calculated by dividing the net income attributable to shareholders by
the weighted-average number of sha res outstanding during the year. Due to the share split, conducted
in June 2006 , all numbers of shares have been restated by multiplying them by four.
Dilutive potential shares have arisen under the Management Share Option Plan (MSOP) of Adidas
Ag, which was implemented in 1999 (see note 33). As the required performance criteria for the exer–
cise of the stock options of all tranches of the share option plan have been fulfilled, dilutive potential
shares impact the diluted earnings per share calculation .
It is also necessary to include dilutive potential shares arising from the convertible bond issuance
in October 2003 in the calculation of diluted earnings per share as at December 31, 2006 and 2005 , re–
spectively, as the required conversion criteria were fulfilled at the balance sheet date (see note 16).
The convertible bond is assumed to have been converted into ordinary shares and the net income is
adjusted to eliminate the interest expense less the tax effect.
Year ending Dec. 3 /
Earnings Per Share
Net income attributable to shareholders
(€
in millions)
Weightedaveragenumber of shares
Basic earnings per share
(€)
Net income attributable to shareholders ( in millions)
Interest expenses on convertiblebond (net of taxes) ( in millions)
Net income used to determine diluted earnings per share ( in millions)
Weighted-average numberof shares
Weightedshare options
Weightedassumedconversion convertiblebond
Weighted-averagenumberof shares for diluted earnings per share
Dilutedearningsper share ( )
2006
483
203,386,104
2.37
483
12
495
203,386,104
328,308
15,685,110
219,399,522
2.25
2005
383
186,947,832
2.05
383
II
394
186,947,832
895,315
15,686,275
203,529,422
1.93
For the calculation of earn ings per share from continuing and discontinued operations, the
weighted-average number of shares as presented above has been used.
10.2 UNILEVER GROUP, An n ual Report 2006
Notes to the Consolidated Acco unts
7. Combined Earnings Per Share
2006
2005
2004
Combined earnings per year
€
€
€
From continuing operations
Basic earnings per share
U9 1.07
0.87
Dilutedearnings per share
U5 1.04
0.84
From discontinued operations
Basicearnings per share
0.46
0.22
0.07
Dilutedearningsper share
0.45
0.21
0.07
From total opera tions
Basic earningsper share
1.65
1.29
0.94
Dilutedearnings per share
1.60
1.25
0.91