215
The following table reconciles the effective tax rate with the Parent Company’s theoretical tax rate:
28. EARNINGS/(LOSS) AND DIVIDENDS PER SHARE
Both basic and diluted earnings (loss) per share have
been calculated by dividing the net result for the period
attributable to owners of the parent by the average number
of the Company’s outstanding shares.
The options under the Incentive Plan 2011-2013 have been
considered for the purposes of determining both basic and
diluted earnings/(loss) per share, since they are grantable
based on the level of cumulative EBITDA achieved in the
three-year target period.
Diluted earnings/(loss) per share are affected by the options
relating to adherences to the employee share purchase plan.
Instead, diluted earnings/(loss) per share are not impacted
by the following:
• the options under the Stock Option Plan 2007-2012 which
as at 31 December 2013 were fully vested and exercised;
• the options relating to the convertible bond that would
have an anti-dilutive effect since the conversion is
currently “out of the money”.
(in millions of Euro)
2013
Tax rate
2012
Tax rate
Profit/(loss) before taxes
222
242
Theoretical tax expense at Parent Company’s nominal tax rate
61
27.5%
67
27.5%
Differences in nominal tax rates of foreign subsidiaries
3
1.5%
4
1.7%
Utilisation of unrecognised carryforward tax losses
(20)
-8.8%
(45)
(18.5%)
Unrecognised deferred tax assets
21
9.6%
30
12.5%
Net increase (release) of provision for tax disputes
4
2.0%
(3)
(1.2%)
IRAP (Italian regional business tax)
12
5.3%
13
5.4%
Taxes on distributable reserves
2
0.8%
4
1.7%
Utilisation of prior year credit for taxes paid abroad
(7)
-3.2%
-
-
Asset impairment
4
1.9%
3
1.20%
Deferred tax assets from prior years recognised
and utilised in current year
(2)
-0.9%
(2)
(1.2%)
Non-deductible costs/ (non-taxable income) and other
(10)
-5.3%
2
0.9%
Effective income taxes
68
30.4%
73
30.0%
(in millions of Euro)
2013
2012 (*)
Net profit/(loss) attributable to owners of the parent
149
166
Weighted average number of ordinary shares (thousands)
211,835
211,416
Basic earnings/(loss) per share (in Euro)
0.71
0.79
Net profit/(loss) attributable to owners of the parent
149
166
Weighted average number of ordinary shares (thousands)
211,835
211,416
Adjustments for:
Dilution from incremental shares arising from exercise of stock options (thousands)
6
88
Weighted average number of ordinary shares to calculate diluted earnings per share (thousands)
211,841
211,504
Diluted earnings/(loss) per share (in Euro)
0.71
0.78
(*) The previously published figure for earnings per share in 2012 has been the subject of a restatement. Further details can be found in Section C. Restatement
of comparative figures at 31 December 2012.
