Peachtree 2012 Annual Report Download - page 94

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Results for the year continued
3 Income tax expense continued
Note
2012
£m
2011
£m
Tax on items credited to other comprehensive income
Deferred tax credit on actuarial loss on post-employment benefit obligations (1.0) –
Tax on items charged to equity
Deferred tax charge on share options 1.7 1.7
Total tax on items charged to other comprehensive income/equity 14.5 0.7 1.7
The tax for the year is higher (2011: lower) than the standard rate of corporation tax in the UK of 25% (2011: 27%)
The differences are explained below:
2012
£m
2011
£m
Profit on ordinary activities before income tax 334.3 330.8
Profit on ordinary activities multiplied by rate of corporation tax in the UK of 25% (2011: 27%) 83.6 89.3
Tax effects of:
Adjustment in respect of prior years (20.0) (33.7)
Adjustment in respect of foreign tax rates 21.0 17.4
Non-deductible expenses and permanent items net of non-taxable income and other credits 10.8 1.8
Total income tax 95.4 74.8
4 Earnings per share and dividends
4.1 Earnings per share
Basic earnings per share is calculated by dividing the profit for the year by the weighted average number of ordinary shares in issue during the year, excluding
those held as treasury shares (note 14.5), which are treated as cancelled.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary
shares. The Group has two classes of dilutive potential ordinary shares: those share options granted to employees where the exercise price is less than the
average market price of the Company’s ordinary shares during the year and the contingently issuable shares under the Group’s long-term incentive plan.
For performance-related share plans, a calculation is performed to determine the satisfaction, or otherwise, of the forecast performance conditions at the
end of the reporting period, and the number of shares which would be issued based on the forecast status at the end of the reporting period.
Reconciliations of the earnings and weighted average number of shares
Underlying
2012
Underlying
2011
Statutory
2012
Statutory
2011
Earnings (£m)
Profit for the year from continuing operations 254.6 267.0 238.9 256.0
Profit/(loss) for the year from discontinued operations 1.2 11.3 57.8 (67.0)
255.8 278.3 296.7 189.0
Number of shares (millions)
Weighted average number of shares 1,282.2 1,316.7 1,282.2 1,316.7
Dilutive effects of shares 1.9 10.4 1.9 10.4
1,284.1 1,327.1 1,284.1 1,327.1
Earnings per share
Basic earnings per share (pence)
Continuing operations 19.86 20.28 18.63 19.44
Discontinued operations 0.09 0.86 4.51 (5.09)
19.95 21.14 23.14 14.35
Diluted earnings per share (pence)
Continuing operations 19.83 20.12 18.60 19.29
Discontinued operations 0.09 0.85 4.50 (5.05)
19.92 20.97 23.10 14.24
92