Download 2007 Annual Report in PDF (4.8Mb - VimpelCom

15. EARNINGS PER SHARE
Net income per common share for all periods presented has been
determined in accordance with SFAS No. 128, Earnings per Share, by
dividing income available to common shareholders by the weighted
average number of common shares outstanding during the period.
Net income per share of common stock has been adjusted by a factor
of twenty to determine net income per ADR equivalent as each ADR is
equivalent to one-twentieth of one share of common stock.
Financial information by reportable segment for the years ended
December 31, 2007, 2006 and 2005 is presented in the following tables.
The following table sets forth the computation of basic and diluted
earnings per share:
Years ended December 31,
2007 2006 2005
(In thousands of US dollars, except per share amounts)
Numerator:
Net income before cumulative effect
of change in accounting principle $1,462,706 $813,371 $615,131
Denominator:
Denominator for basic earnings
per share – weighted average shares 50,818 50,911 51,066
Effect of dilutive securities:
Employee stock options - 36 19
Denominator for diluted earnings per share –
assumed conversions 50,818 50,947 51,085
Basic net income per common share $28.78 $15.98 $12.05
Diluted net income per common share $28.78 $15.97 $12.04
16. SEGMENT INFORMATION
ВымпелКом / Годовой отчет 2007
Historically, VimpelCom has reflected its reportable segments on a
geographical basis. Management has historically taken this approach
as this is effectively how the business is managed, which is in line with
the requirements of SFAS No. 131, Disclosure about Segments of an
Enterprise and Related Information («SFAS No. 131»). Management
analyzes the reportable geographical segments separately because
of different economic environments and stages of development in
different geographical areas, requiring different investment and
marketing strategies. Starting from December 31, 2006, VimpelCom
had seven reportable geographical segments: the Russian Federation,
Kazakhstan, Ukraine, Tajikistan, Uzbekistan, Georgia and Armenia. The
segment data for acquired operations are reflected herein from the
date of their acquisitions.
The Board and management utilize more than one measurement and
multiple views of data to measure segment performance. However, the
dominant measurements are consistent with VimpelCom’s consolidated
financial statements and, accordingly, are reported on the same basis
herein. Management evaluates the performance of its segments
primarily based on revenue, operating income, income before income
taxes and net income along with cash flows and overall economic
returns. Inter-segment revenues are eliminated in consolidation. Intersegment
revenues may be accounted for at amounts different from sales
to unaffiliated companies. The accounting policies of the segments are
the same as those of VimpelCom.
97