Lenovo 2011 Annual Report Download - page 101

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2010/11 Annual Report Lenovo Group Limited
104
NOTES TO THE FINANCIAL STATEMENTS (continued)
11 Emoluments of directors and highest paid individuals (continued)
(b) Five highest paid individuals (continued)
The emoluments fell within the following bands:
Number of individuals
2011 2010
Emolument bands
US$2,441,315 – US$2,505,559 –1
US$2,569,806 – US$2,634,050 –1
US$2,634,051 – US$2,698,295 –1
US$3,019,522 – US$3,083,766 1–
US$3,148,012 – US$3,212,256 1–
US$3,533,483 – US$3,597,727 1–
12 Earnings per share
(a) Basic
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the
weighted average number of ordinary shares in issue during the year.
2011 2010
Weighted average number of ordinary shares in issue for the
purpose of basic earnings per share 9,634,806,069 9,113,645,262
US$’000 US$’000
Profit attributable to equity holders of the Company 273,234 129,368
(b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding due
to the effect of all dilutive potential ordinary shares. The Company has three categories of dilutive potential ordinary
shares: convertible preferred shares, share options and long-term incentive awards.
2011 2010
Weighted average number of ordinary shares in issue 9,634,806,069 9,113,645,262
Adjustments for convertible preferred shares 176,317,792 –
Adjustments for share options and long-term incentive awards 337,099,963 621,234,062
Weighted average number of ordinary shares in issue for calculation
of diluted earnings per share 10,148,223,824 9,734,879,324
US$’000 US$’000
Profit attributable to equity holders of the Company 273,234 129,368
Interest expense on convertible preferred shares 3,810 –
Profit used to determine diluted earnings per share 277,044 129,368
Adjustments for the dilutive potential ordinary shares are as follows:
– For the convertible preferred shares, they are assumed to have been converted into ordinary shares and the net
profit is adjusted to add back the relevant finance costs. For the year ended March 31, 2010, they were antidilutive
as the amount of the dividend and related finance costs per ordinary share attainable on conversion exceeded
basic earnings per share and they were excluded from the weighted average number of ordinary shares in issue for
calculation of diluted earnings per share.
– For the share options, a calculation is done to determine the number of shares that could have been acquired at
fair value (determined as the average periodic market share price of the Company’s shares) based on the monetary
value of the subscription rights attached to outstanding share options. The number of shares calculated as above
is compared with the number of shares that would have been issued assuming the exercise in full of the share
options.
– For the long-term incentive awards, a calculation is done to determine whether the long-term incentive awards are
dilutive, and the number of shares that are deemed to be issued.