LG 2000 Annual Report Download - page 71

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20. Earnings Per Share:
Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding
during the year. Basic ordinary income per share is computed by dividing ordinary income allocated to common stock, which is net
income allocated to common stock as adjusted by extraordinary gains or losses, net of related income taxes, by the weighted average
number of common shares outstanding during the year.
Basic earnings per share for the years ended December 31, 2000 and 1999 are calculated as follows:
Millions of won (except for EPS data) 2000 1999
Basic earnings per share
Net income as reported on the statements of income W 502,183 W 2,005,021
Less : Preferred stock dividends (19,472) (20,050)
Net income allocated to common stock 482,711 1,984,971
Weighted average number of common shares outstanding 108,942,560 107,327,666
Basic earnings per share W 4,431 W 18,494
Basic ordinary income per share for the year ended December 31, 2000 is W4,430, and basic ordinary income per share for the year
ended December 31, 1999 is the same as basic earnings per share, because there were no extraordinary gains or losses.
Diluted earnings per share is computed by dividing diluted net income, which is adjusted to add back the after-tax amount of interest
expenses on any convertible debt and dividends on any convertible preferred stock, by the weighted average number of common
shares and diluted securities outstanding during the year. Diluted ordinary income per share is computed by dividing diluted ordinary
income allocated to common stock, which is diluted net income allocated to common stock as adjusted by extraordinary gains or
losses, net of related income taxes, by the weighted average number of common shares and diluted securities outstanding during the
year.
Diluted earnings per share for the years ended December 31, 2000 and 1999 are calculated as follows:
Millions of Won (except for EPS data) 2000 1999
Net income allocated to common stock W 482,711 W 1,984,971
Add : Interest expenses on convertible bonds, net of tax 2,070 1,906
Redeemable preferred stock dividends 1,006 –
485,787 1,986,877
Weighted average number of common shares and diluted securities outstanding 111,224,159 108,820,224
Diluted earnings per share W 4,368 W 18,258
Diluted ordinary income per share for the year ended December 31, 2000 is W4,367, and diluted ordinary income per share for the
year ended December 31, 1999 is the same as diluted earnings per share, because there were no extraordinary gains or losses.
The diluted securities outstanding for the years ended December 31, 2000 and 1999 are as follows :
Number of common Conversion
Diluted security Issue price Conversion period stocks to be issued price
Foreign currency denominated W33,096 million December 26, 1996 1,492,558 shares W22,174
convertible bonds, issued in 1996 (US$ 40 million) through October per share
26, 2006
Convertible redeemable preferred W544,000 million From December 32,000,000 shares W17,000
stock, issued in 2000 23, 2001 per share
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