Notes: 11
11 Basic and diluted net income (loss) after preferred dividends per common share
-
-
130
Ahold Annual Report 2003
Financial Statements
Net income (loss) after preferred dividends per common share - basic is calculated as net income (loss) after
preferred dividends, divided by the weighted average number of common shares outstanding during each period.
Net income (loss) per common share - diluted is calculated as net income (loss) after preferred dividends, adjusted
for interest expense (if not anti-dilutive) related to the Company's outstanding convertible subordinated notes,
divided by the weighted average number of common shares outstanding, including the number of common shares
that would have been issued upon conversion of the convertible subordinated notes (if not anti-dilutive) and the
exercise of stock option rights outstanding (if not anti-dilutive). The outstanding stock option rights and the 3%
convertible subordinated notes issued in 1998 are not included in the 2002 and 2003 calculation since they are
anti-dilutive. The 4% convertible subordinated notes issued in 2000 are not included in the calculation for 2003,
2002 and 2001, since they were anti-dilutive. The weighted average number of common shares outstanding is
retroactively adjusted for stock dividends or splits. In 2003 the Company completed a rights offering of 620,951,317
common shares. This offering was deemed to be equivalent to a stock split, since these shares were offered at an
issue price that represented a discount to the market price of the Company's shares at the time. Accordingly, the
Company retroactively increased the number of shares used to calculate earnings per share for all periods before
the completion of the rights offering by multiplying the number of shares by a factor of 1.081.
The computational components of basic and diluted net income (loss) after preferred dividends per common
share are as follows:
2003
2002
2001
Net income (loss)
Dividends on cumulative preferred financing shares
(1)
(38)
hJ
CO O
CO CO
750
(38)
Net income (loss) after preferred dividends
(39)
(1,246)
712
Effect of dilutive securities
Conversion of convertible subordinated notes
19
(39)
(1,246)
731
2003
2002
2001
Weighted average number of common shares outstanding (x 1,000) - basic
1,024,465
1,001,347
926,736
Effects of dilutive securities
Conversion of convertible subordinated notes
Exercise of stock option rights outstanding
25,669
4,553
Weighted average number of common shares outstanding (x 1,000) - diluted
1,024,465
1,001,347
956,958
Net income (loss) after preferred dividends per common share
- basic is comprised of the following:
2003
2002
2001
Net income (loss)
Dividends on cumulative preferred financing shares
0.00
(0.04)
(1.20)
(0.04)
0.81
(0.04)
Net income (loss) after preferred dividends per common share - basic
(0.04)
(1.24)
0.77
Net income (loss) after preferred dividends per common share
- diluted is comprised of the following:
2003
2002
2001
Net income (loss)
Interest expense - convertible subordinated notes
Dividends on cumulative preferred financing shares
0.00
(0.04)
(1.20)
(0.04)
0.78
0.02
(0.04)
Net income (loss) after preferred dividends per common share - diluted
(0.04)
(1.24)
0.76
