PDF (2.63 MB) - Geberit International AG

60
Earnings per share
The number of ordinary shares used for calculating earnings per share (incl. diluted and adjusted)
is determined on the basis of the weighted average of issued and outstanding ordinary
shares.
For diluted earnings per share potentially dilutive shares from option programs and from the
convertible bond issued in 2004 are added to ordinary shares (“adjusted number of ordinary
shares”). Dilutive shares from options programs are determined using the intrinsic value of the
options to calculate the number of ordinary shares that could have been bought at market
price. The market price is the average annual Geberit share price. For the convertible bond,
conversion in ordinary shares is assumed.
Diluted earnings per share is the ratio of net income adjusted for interest and amortization
expenses from the convertible bond, net of tax, and the adjusted number of ordinary shares.
Financial instruments
Trade and other receivables are carried at amortized cost less allowances for credit losses.
Trade and other payables are carried at amortized cost. Debt is initally recorded at fair value
net of transaction costs and measured at amortized cost. The Group classifies debt as noncurrent
when it has an unconditional right to defer settlement for at least 12 months after the
balance sheet date.
The fair value of the liability component of a convertible bond is determined at issuance using
a market interest rate for equivalent non-convertible debt instruments to discount the total of
future cash outflows. The difference to the nominal value is recognized as the equity component
within shareholder’s equity, net of income tax effects. Until converted or extinguished,
the liability component is measured on an amortized cost basis. Interest and amortization
charges are recorded straight-line on the basis of the outstanding convertible bond.
Derivatives are initially recognized at fair value and subsequently remeasured to fair value.
Instruments designated as fair value hedges are recorded in financial income and expenses
together with the change in fair value of the underlying item. The effective portion of instruments
designated as cashflow hedges and instruments designated as hedges of net investments
in foreign operations is recognized in shareholder’s equity. The ineffective portion is
recorded in financial income and expenses.
The instruments are described in Note 13.
Geberit Group