LG 2004 Annual Report Download - page 106

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LG Electronics Inc.
Notes to Non-Consolidated Financial Statements
December 31, 2004 and 2003
23. Earnings Per Share
Basic earnings per share is computed by dividing net income allocated to common stock 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, whichis 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, 2004 and 2003, are calculated as follows:
Basic ordinary income per share is identical to the basic earnings per share since there was no extraordinary gain or loss.
Diluted earnings per share is computed by dividing diluted net income, which is adjusted by adding back the after-tax amount of
interest expense 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 years ended December 31, 2004 and 2003, are calculated as follows:
Net income as reported on the statement of income
Less: Preferred stock dividends (Note 24)
Additional income available for dividends allocated to preferred stock
Net income allocated to common stock
Weighted-average numbern of common shares outstanding
Basic earnings per share and ordinary income per share (in won)
(in millions of Korean won, except per share amounts)
2004
1,545,954
(26,631)
(144,406)
1,374,917
139,016,745
9,890
2003
662,824
(22,336)
(51,154)
589,334
139,357,190
4,229
1. This is computed based on the effective tax rate of 16.9% (2003: 20.8%) for the year ended December 31, 2004 (Note 22).
Diluted ordinary income per share is identical to the diluted earnings per share since there were no extraordinary gains or loss.
Net income allocated to common stock
Add: Interest expense on convertible bonds, net of tax 1
Weighted-average number of common shares and diluted securities outstanding
Diluted earnings per share and diluted ordinary income per share (in won)
(in millions of Korean won, except per share amounts)
2004
1,374,917
14,027
1,388,944
145,949,525
9,517
2003
589,334
2,129
591,463
141,272,019
4,187