PDF, 3.2 MB - Pfleiderer AG

SFAS 13 lists the following criteria:
The lease transfers ownership of the property to the lessee at the end of the lease term.
The lease contains a bargain purchase option to purchase the leased property for considerably
less than its fair value.
The lease term is equal to 75 percent or more of the estimated economic life of the leased
property.
The present value at the beginning of the lease term of the future minimum lease payments
equals or exceeds 90 percent of the fair value of the leased property.
All other leases in which the Group is the lessee must be treated as operating leases, with the
consequence that the lease payments are expensed as incurred.
Stock-Based Compensation
On the basis of SFAS 123 (Accounting for Stock-Based Compensation), the Company has decided
to value the stock options that have been granted in accordance with the intrinsic value based
method in compliance with Accounting Principles Board Opinion 25 (Accounting for Stock Issued
to Employees) and related interpretations. In accordance with APB 25, the difference between
the market price of the Company’s shares at the date of issue of the option and the exercise price
of the subscription price that has been granted is recorded in the personnel expenses. The option
available under SFAS 148 (Accounting for Stock-Based Compensation – Transition and Disclosure)
that was published in December 2002 on transition to the fair value method has not been applied.
The following table provides information on the personnel expenses and the impact that application
of the fair values prescribed by SFAS 123 would have had on earnings (after taxes) and
earnings per share.
Dec. 31, 2004 Dec. 31, 2003
Earnings after minority interests and taxes
Less: Personnel expenses for stock-based compensation
‘000 euros 33,860 –45,762
in accordance with the fair value method ‘000 euros –945 –893
Pro forma earnings ‘000 euros 32,915 –46,655
Earnings per share euros 0.79 –1.07
Pro forma earnings per share euros 0.77 –1.09
Earnings per share (diluted) euros 0.79 –1.07
Pro forma earnings per share (diluted) euros 0.77 –1.09
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