Notes to the Pro Forma Financial Statements (37 kb) - Investis

3 Operating exceptional items
Notes to the Pro Forma Financial Statements
2000 1999
£m £m
Contract losses in China 8.9 –
Chubb Information Security (CIS) development costs 4.0 –
Provision in respect of debtors reduction programme 5.0 –
Total operating exceptional items 17.9 –
4 Finance charge
The pro forma finance charge includes an adjustment to reflect the post demerger capital structure as if the structure
had been in place since 1 January 1999. The adjustment has been calculated by reference to average indebtedness
that would have arisen from this revised capital structure at the average variable interest rate borne by the Chubb Group
on external borrowings.
5 Taxation
The pro forma tax charge reflects the impact of the adjusted finance charges and capital structure of the Chubb Group
following the demerger as if they had been in place since 1 January 1999, without the benefits of the previous Group’s tax
arrangements. The effective taxation rate implied by the pro forma charge is 32.5% (1999 32.5%).
6 Earnings per share
2000 1999
Basic Adjusted Basic Adjusted
£m £m £m £m
Profit on ordinary activities before tax 33.5 33.5 106.9 106.9
Contract losses in China – 8.9 – –
Development costs written off – 4.0 – –
Provision in respect of debtors reduction programme – 5.0 – –
Acquisition reorganisation costs – 27.6 .– 17.1
Goodwill amortisation – 28.5 .– 15.6
33.5 107.5 106.9 139.6
Tax charge (22.8) (22.8) (39.8) (39.8)
Tax on contract losses in China – (1.5) – –
Tax on provision in respect of debtors reduction programme – (1.6) – –
Tax on acquisition reorganisation costs – (9.0) .– (5.6)
Minority interest 2.8 (1.0) (5.0) (5.0)
13.5 71.6 62.1 89.2
Number of shares 828.5m 828.5m 828.5m 828.5m
Earnings per share 1.6p 8.6p 7.5p 10.8p
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