64 | FINANCIAL STATEMENTS | Notes to the Consolidated Financial Statements
10. Earnings per share continued The following tables disclose the earnings/(loss) and share capital data used in the earnings/(loss) per share calculations:
Reconciliation of earnings/(loss)
Earnings/(loss) attributable to ordinary equity holders of the parent for basic earnings/(loss) per share Amortisation of intangibles(1)
Exceptional employment expenses
TRC Management Retention and Incentive Plans Exceptional outsourcing expenses TRC Commutation expenses F&C Partners litigation expenses Exceptional premises expenses F&C REIT variable NCI SBP income TRC integration expenses
Deferred Tax – Corporation Tax rate change F&C REIT put option fair value gain
TRC acquisition consideration adjustments
Underlying earnings attributable to ordinary equity holders of the parent
Foreign exchange losses included within underlying earnings
Underlying earnings attributable to ordinary equity holders of the parent excluding foreign exchange losses
(1)
Gross £m
(5.1) 39.3 8.2 6.2 3.3 1.6 1.3 1.3
– (11.5)
44.6 2.0
46.6
2012 Tax
£m 5.2
(11.4) (2.2) (0.8) (0.8) –
(0.3) (0.2)
1.9 –
Net £m
0.1
27.9 6.0 5.4 2.5 1.6 1.0
1.9
Gross £m
(4.0)
42.6 8.7 4.6 2.7 5.7 1.9
––– (4.8) ––– 0.2 –
(11.5)
(8.6) (0.5)
(9.1) 36.0 37.5 (8.7) ––– (7.6) 41.3 41.3
2011 Tax
£m 3.5
(13.7) (2.3) (0.5) (0.7) –
(1.1)
(0.1) 2.0 – –
(12.9) (12.9) Share capital Weighted average number of Ordinary Shares(2)
Weighted average dilutive potential Ordinary Shares exercisable: The Long-Term Remuneration Plan awards TRC Management Retention Plan awards TRC Commutation arrangements
The Executive Director Remuneration Plan awards Purchased Equity Plan awards Deferred Share awards
Dilutive potential weighted average number of Ordinary Shares (2) Excludes own shares held by Nominees/Employee Benefit Trusts.
2012 No.
Net £m
(0.5)
28.9 6.4 4.1 2.0 5.7 0.8
1.1 ––– –
(4.8) 0.1 2.0
(8.7) (7.6)
28.4 1.5 ––– 28.4
Excludes £2.2m (2011: £2.0m) of amortisation of intangibles (net of tax) which is attributable to NCI. The tax amount includes the related deferred tax movement associated with the Corporation Tax rate change.
2011 No.
530,962,557 515,372,721
31,802,958 30,316,564 19,045,652 12,554,160 6,606,750 13,175,821 2,157,665 606,632 975,054
1,126,146 543,416 188,288
590,275,767 575,158,617
In the period between the reporting date and the approval of the Consolidated Financial Statements, 155,356 share awards (2011: 1,112,958) vested which were satisfied by the utilisation of own shares held by Employee Benefit Trusts and 201,369 shares were distributed from holdings in a nominee capacity in respect of TRC Commutations.
Potential future dilution The following share-based payment arrangements could potentially dilute basic earnings per share in the future, but were not included in the above calculation of diluted earnings per share because they were either anti-dilutive for the years presented or had not met the relevant performance criteria at the reporting date:
• Long-Term Remuneration Plan (restricted awards)
• F&C REIT variable NCI SBP This earn-out arrangement gives the F&C REIT NCI partners the opportunity to increase their ownership of F&C REIT from 30% to 40% before 31 December 2014. At 31 December 2012, the Directors do not expect any of the ownership percentage to transfer. Any transfer would potentially dilute the profits attributable to the equity holders of the parent. However, the principle of this incentive arrangement is that the incremental profits which would become attributable to NCI as a result of achieving the performance criteria are funded from the increased level of absolute profits generated by F&C REIT for the year in which vesting arises, rather than diluting the current level of profits attributable to equity holders of the parent. There can be no guarantee that, subsequent to vesting, the higher level of profits which met the vesting criteria would be sustainable.
• TRC Management Incentive Plan
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