Annual report 2010 - Imperial Tobacco Group

Notes to the Financial Statements continued8 Earnings Per ShareBasic earnings per share is based on the profit for the year attributable to the owners of the parent and the weighted averagenumber of ordinary shares in issue during the year excluding shares held to satisfy the Group’s employee share schemesand shares purchased by the Company and held as treasury shares. Diluted earnings per share have been calculated bytaking into account the weighted average number of shares that would be issued if rights held under the employee shareschemes were exercised. No instruments have been excluded from the calculation for any period on the grounds that theyare anti-dilutive.£ million 2010 2009Earnings: basic and diluted 1,505 663Millions of sharesWeighted average number of shares:Shares for basic earnings per share 1,013.8 1,012.3Potentially dilutive share options 3.1 2.7Shares for diluted earnings per share 1,016.9 1,015.0Strategy Performance Governance FinancialsPenceBasic earnings per share 148.5 65.5Diluted earnings per share 148.0 65.3Reconciliation from reported to adjusted earnings and earnings per shareEarningsper share(pence)2010 2009Earningsper share(pence)£ million unless otherwise indicatedEarningsEarningsReported basic 148.5 1,505 65.5 663Acquisition accounting adjustments 2.0 20 – –Amortisation of acquired intangibles 37.1 377 37.4 379Fair value (gains)/losses on derivative financial instrumentsproviding commercial hedges (14.9) (151) 46.9 475Post-employment benefits net financing cost 1.3 13 2.1 21Restructuring costs 4.8 49 9.9 100Adjusted 178.8 1,813 161.8 1,638Adjusted diluted 178.3 1,813 161.4 1,638118