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20. EARNINGS PER COMMON SHARE
Basic earnings per share is computed by dividing net income available to Bunge common shareholders by the weighted-average number of common shares outstanding, excluding any dilutive effects of stock options, restricted stock unit awards and convertible preference shares during the reporting period. Diluted earnings per share is computed similar to basic earnings per share, except that the weighted-average number of common shares outstanding is increased to include additional shares from the assumed exercise of stock options, restricted stock unit awards and convertible securities, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options, except those which are not dilutive, were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. In addition, Bunge accounts for the effects of convertible securities and convertible notes, using the if-converted method. Under this method, the convertible securities and convertible notes are assumed to be converted and the related dividend or interest expense, net of tax, is added back to earnings, if dilutive.
At September 30, 2010, Bunge had 862,455 mandatory convertible preference shares outstanding with a liquidation preference of $1,000 per share. On the mandatory conversion date of December 1, 2010, Bunge used 6,714,573 repurchased common shares and issued an additional 1,702,642 common shares to satisfy the conversion of the mandatory convertible preference shares.
Bunge had 6,900,000 convertible perpetual preference shares outstanding at September 30, 2011. Each convertible preference share has an initial liquidation preference of $100 per share and each convertible preference share is convertible, at any time at the holder’s option, into approximately 1.0938 Bunge Limited common shares based on a conversion price of $91.4262 per convertible preference share (which represents 7,547,220 Bunge Limited common shares as of September 30, 2011, subject in each case to certain anti-dilution specified adjustments).
The following table sets forth the computation of basic and diluted earnings per common share.
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
September 30, |
|
September 30, |
|
|
(US$ in millions, except for share data) |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
Net income attributable to Bunge |
|
$ |
140 |
|
$ |
212 |
|
$ |
688 |
|
$ |
2,053 |
|
|
Convertible preference share dividends |
|
(8 |
) |
(19 |
) |
(25 |
) |
(58 |
) |
|
Net income available to Bunge common shareholders |
|
$ |
132 |
|
$ |
193 |
|
$ |
663 |
|
$ |
1,995 |
|
|
Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
146,684,583 |
|
139,600,641 |
|
146,935,716 |
|
141,247,100 |
|
|
Effect of dilutive shares: |
|
|
|
|
|
|
|
|
|
|
–Stock options and awards |
|
947,140 |
|
877,885 |
|
1,108,797 |
|
959,061 |
|
|
–Convertible preference shares |
|
— |
|
7,514,790 |
|
7,547,220 |
|
14,622,799 |
|
|
Diluted (1) |
|
147,631,723 |
|
147,993,316 |
|
155,591,733 |
|
156,828,960 |
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.90 |
|
$ |
1.38 |
|
$ |
4.51 |
|
$ |
14.12 |
|
|
Diluted |
|
$ |
0.89 |
|
$ |
1.36 |
|
$ |
4.42 |
|
$ |
13.09 |
|
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(1) |
Approximately 2.8 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the three and nine months ended September 30, 2011, respectively. Approximately 7.5 million weighted-average common shares that are issuable upon conversion of the convertible preference shares were not dilutive and not included in the weighted-average number of common shares outstanding for the three months ended September 30, 2011. |
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|
|
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Approximately 3.5 million outstanding stock options and contingently issuable restricted stock units were not dilutive and not included in the weighted-average number of common shares outstanding for the three and nine months ended September 30, 2010, respectively. Approximately 7.1 million weighted-average common shares that are issuable upon conversion of the convertible preference shares were not dilutive and not included in the weighted-average number of common shares outstanding for the three months ended September 30, 2010. |
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