Chrysler 2007 Annual Report Download - page 127

126 Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes
12. Earnings per share
As explained at the Note 25 below, Fiat S.p.A. capital stock is represented by three different classes of shares (ordinary shares,
preference shares and saving shares) that participate in dividends with different rights. Profit or loss of the period attributable to
each class of share is determined in accordance with the share’s contractual dividend rights, and for this purpose the net result
attributable to ordinary equity holders of the parent entity is adjusted by the amount of the preference dividends attributable to
saving shares declared in the period equal to 0.155 euros per share. Additionally, in 2006 alone, the amount of 0.62 euros per share
of past cumulative dividends attributable to saving shares has been deducted from the net result attributable to equity holders of
the parent entity. In order to determine earnings per share, the amount obtained has been divided by the weighted average
number of outstanding shares.
Payment of the proposed dividend is contingent upon approval by stockholders at their Annual General’ Meeting and has therefore
not been recognized as a liability in the Group consolidated financial statements.
The following table shows the reconciliation between the net result attributable to equity holders of the parent and the profit
attributable to each class of shares, as well as, the weighted average number of outstanding shares for the two years presented:
2007 2006
Ordinary Preference Saving Ordinary Preference Saving
shares shares shares Total shares shares shares Total
Profit attributable to equity
holders of the parent millions of euros 1,953 1,065
Prior period dividends to saving
shares declared for the period millions of euros ––––––5050
Preferred dividends declared
for the period millions of euros ––1212 ––1212
Profit available for distribution
to all classes of shares millions of euros 1,659 159 123 1,941 859 81 63 1,003
Profit attributable to each class
of shares millions of euros 1,659 159 135 1,953 859 81 125 1,065
Weighted average number
of shares outstanding thousand 1,079,175 103,292 79,913 1,262,380 1,088,027 103,292 79,913 1,271,232
Basic Earnings per share euros 1.537 1.537 1.692 0.789 0.789 1.564
If prior period dividends to saving shares had not been assigned, basic earnings per savings shares in 2006 would have been 0.983
euros per share. Basic earnings per share attributable to ordinary and preference shares in 2006 would have been 0.828 euros per
share.
As part of the buy-back programme announced on April 5, 2007 Fiat S.p.A. purchased approximately 11 million of treasury stock in
2008, up to the date of the publication of these consolidated financial statements; no significant difference would have arisen in
the earnings per share figure reported above if these transactions, which took place after the balance sheet date, had been carried
out in 2007.
For the purpose of calculating the diluted earnings per share for the two years presented the number of ordinary shares considered
is the average number of shares outstanding plus “dilutive potential” ordinary shares arising from shares that would be issued on
the exercise of all stock options plans or other similar as warrant. In 2006 and 2007 no dilutive effects arose from warrants issued
by Fiat S.p.A. and no dilutive effects arose from stock option plan granted on Fiat S.p.A. on its ordinary shares at an exercise price
above euros 19,742 per share in 2007 and euros 11, 268 per share in 2006. Moreover, the result attributable to the Group has been