Mercedes 1999 Annual Report Download - page 114

OTHER NOTES
108
28,393 21,567 78,104 11,727 4,796 5,398 149,985
24,918 20,072 65,300 11,519 4,311 5,662 131,782
21,317 17,132 56,615 10,576 5,587 6,345 117,572
Consoli-
dated
Other
countriesAsia
Other
American
countries
European
Union*)
Germany
1999
1998
1997
*) Excluding Germany.
Germany accounts for €14,711 of long-term assets (1998: €12,953;
1997: €12,040), the U.S. for €43,036 (1998: €25,344; 1997:
€22,632) and other countries for €12,701 (1998: €11,309; 1997:
€9,797).
31. EARNINGS PER SHARE
The computation of basic and diluted earnings per share for “In-
come before extraordinary items” is as follows (in millions of euros
or millions of shares, except earnings per share):
Revenues
An income tax charge of €812 relating to changes in German tax
laws was included in the consolidated statement of income for the
year ended December 31, 1999 and resulted in a reduction of basic
and diluted earnings per share of €0.81 and €0.80, respectively
(see Note 8). In 1998, merger costs of €401 (net of tax) impacted
basic and diluted earnings per share by a decrease of €0.42 and
€0.41. In 1997, tax benefits relating to a special distribution and to
a decrease in the deferred tax asset valuation allowance of €2,490
resulted in an increase of basic and diluted earnings per share by
€2.62 and €2.57, respectively.
In 1997, convertible bonds issued in connection with the 1997
Stock Option Plan were not included in the computation of diluted
earnings per share because the options‚ underlying target stock
price was greater than the market price for DaimlerChrysler Ordi-
nary Shares on December 31, 1997. For the same reason, convert-
ible bonds issued in connection with the 1998 Stock Option Plan
were not included in the computation at December 31, 1998.
Unexercised employee stock options to purchase 0.2 million shares
of DaimlerChrysler Ordinary Shares as of December 31, 1997 were
not included in the computations of diluted earnings per share be-
cause the options’ exercise prices were greater than the average
market price of DaimlerChrysler Ordinary Shares during the pe-
riod.
32. FORMATION OF EADS
In October 1999, DaimlerChrysler, the French Lagardère Group
and the French government agreed to merge their respective aero-
space and defense activities into a new company. In December
1999, Sociedad Estatal de Participaciones Industriales (SEPI)
agreed to join the Franco-German alliance. The new corporation,
to be called European Aeronautic, Defense and Space Company
(EADS), will be established through a merger of Aerospatiale
Matra S.A., DaimlerChrysler Aerospace AG and Construcciones
Aeronauticas S.A. (CASA). The transaction is expected to be com-
pleted in the first half of 2000. Consummation of the merger is
subject to various conditions, including among others, approval of
certain governmental authorities.
U.S.
1998
Year ended December 31,
Income before extraordinary items
Less: preferred stock dividends
Income before extraordinary items -
basic
Income before extraordinary items
Interest expense on convertible
bonds and notes (net of tax)
Income before extraordinary items –
diluted
Weighted average number of shares
outstanding – basic
Dilutive effect of convertible bonds
and notes
Shares issued on exercise of
dilutive options
Shares purchased with proceeds
of options
Shares applicable to convertible
preferred stock
Shares contingently issuable
Weighted average number of shares
outstanding – diluted
Earnings per share before
extraordinary items
Basic
Diluted
1999
5,106 4,949 6,547
– – (1)
5,106 4,949 6,546
5,106 4,949 6,547
18 20 19
5,124 4,969 6,566
1,002.9 959.3 949.3
10.7 19.8 12.8
–18.317.7
– (11.8) (13.5)
– 0.2 0.8
–1.31.1
1,013.6 987.1 968.2
5.09 5.16 6.90
5.06 5.04 6.78
1997