Anglo American Annual Report 2012

12. DIVIDENDSDividends payable during the year are as follows:US$ million 2012 2011Final ordinary dividend for 2011 – 46 US cents per ordinary share (2010: 40 US cents per ordinary share) 559 495Interim ordinary dividend for 2012 – 32 US cents per ordinary share (2011: 28 US cents per ordinary share) 411 339970 834(1)Of this, $599 million (2011: $561 million) was recognised in the parent Company.(1) (1)Total dividends paid during the year were $970 million (2011: $818 million). In 2011 the difference to dividends payable arose due to movements in exchangerates between the date of recognition and the date of payment.The directors are proposing a final dividend in respect of the financial year ended 31 December 2012 of 53 US cents per share. Based on shares eligible fordividends at 31 December 2012, this will result in an estimated distribution of $676 million of shareholders’ funds, of which $395 million will be distributed bythe parent Company. These financial statements do not reflect this dividend payable as it is still subject to shareholder approval.As stated in note 29, the employee benefit trust has waived the right to receive dividends on the shares it holds.13. EARNINGS PER SHAREUS$ 2012 2011(Loss)/profit for the financial year attributable to equity shareholders of the CompanyBasic (loss)/earnings per share (1.19) 5.10Diluted (loss)/earnings per share (1.19) 4.89Headline earnings for the financial year (1)Basic earnings per share 0.95 4.89Diluted earnings per share 0.95 4.69Underlying earnings for the financial year (1)Basic earnings per share 2.26 5.06Diluted earnings per share 2.24 4.85(1)Basic and diluted earnings per share are also shown based on headline earnings, a Johannesburg Stock Exchange (JSE Limited) defined performance measure, and underlying earnings, whichthe directors consider to be a useful additional measure of the Group’s performance. Both earnings measures are further explained below.The calculation of basic and diluted earnings per share is based on the following data:(Loss)/profit attributableto equity shareholdersof the Company Headline earnings Underlying earnings2012 2011 2012 2011 2012 2011Earnings (US$ million)Basic (loss)/earnings (1,493) 6,169 1,197 5,913 2,839 6,120Effect of dilutive potential ordinary sharesInterest payable on convertible bond (net of tax) (1) – 50 – 50 19 50Unwinding of discount on convertible bond (net of tax) (1) – 52 – 52 19 52Diluted earnings (1,493) 6,271 1,197 6,015 2,877 6,222Number of shares (million)Basic number of ordinary shares outstanding 1,254 1,210 1,254 1,210 1,254 1,210Effect of dilutive potential ordinary sharesShare options and awards – 10 5 10 5 10Convertible bond – 62 – 62 23 62Diluted number of ordinary shares outstanding 1,254 1,282 1,259 1,282 1,282 1,282Financial statements(1)All outstanding convertible bonds were converted or redeemed during the year, see note 24.Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of conversion of all potentiallydilutive ordinary shares. Potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares would decreaseearnings per share or increase loss per share from continuing operations. Consequently, in 2012 basic loss per share equals diluted loss per share and16,325,905 (2011: 270,095) shares have been excluded from the calculation of diluted earnings per share as they are anti-dilutive as at 31 December 2012.As at 31 December 2012, 10,339,454 (2011: 270,095) shares have been excluded from the calculation of diluted headline earnings per share and dilutedunderlying earnings per share as they are anti-dilutive.Basic and diluted number of ordinary shares outstanding represent the weighted average for the year. The average number of ordinary shares in issueexcludes shares held by employee benefit trusts and Anglo American plc shares held by Group companies.Anglo American plc Annual Report 2012 159