The equity attributable to equity holders of the Parent Company consists of the following items:
Share capital
The share capital of AB Electrolux consists of 9,063,125 A-shares and 299,857,183 B-shares with a quota value of SEK 5 per share. All shares are fully paid. An A-share entitles the holder to one vote and a B-share to one-tenth of a vote. All shares entitle the holder to the same proportion of assets and earnings, and carry equal rights in terms of dividends. In 2010, 439,150 A-shares were converted to B-shares at the request of shareholders.
| Share capital | |
| Quota value | |
| Share capital, December 31, 2010 | |
| 9,063,125 A-shares, with a quota value of SEK 5 | 46 |
| 299,857,183 B-shares, with a quota value of SEK 5 | 1,499 |
| Total | 1,545 |
| Share capital, December 31, 2009 | |
| 9,502,275 A-shares, with a quota value of SEK 5 | 48 |
| 299,418,033 B-shares, with a quota value of SEK 5 | 1,497 |
| Total | 1,545 |
| Number of shares | |||
| Owned by Electrolux | Owned by other shareholders | Total | |
| Shares, December 31, 2009 | |||
| A-shares | — | 9,502,275 | 9,502,275 |
| B-shares | 24,498,841 | 274,919,192 | 299,418,033 |
| Conversion of A-shares into B-shares | |||
| A-shares | — | –439,150 | –439,150 |
| B-shares | — | 439,150 | 439,150 |
| Sold shares | |||
| A-shares | — | — | — |
| B-shares | –243,756 | 243,756 | — |
| Shares, December 31, 2010 | |||
| A-shares | — | 9,063,125 | 9,063,125 |
| B-shares | 24,255,085 | 275,602,098 | 299,857,183 |
Other paid-in capital
Other paid-in capital relates to payments made by owners and includes share premiums paid.
Other reserves
Other reserves includes the following items: Available for sale instruments which refer to the fair-value changes in Electrolux holdings in Videocon Industries Ltd., India; cash flow hedges which refer to changes in valuation of currency contracts used for hedging future foreign currency transactions; exchange-rate differences on translation of foreign operations, which refer to changes in exchange rate when net investments in foreign subsidiaries are translated to SEK. The amount of exchange-rate changes includes the value of hedging contracts for net investments. Finally, other reserves include tax relating to the mentioned items.
Retained earnings
Retained earnings, including income for the period, include the income of the Parent Company and its share of income in subsidiaries and associated companies. Retained earnings also include the reversal of the cost for share-based payments recognized in income, income from sales of own shares and the amount recognized for the common dividend.
| Earnings per share | ||
| 2010 | 2009 | |
| Income for the period | 3,997 | 2,607 |
| Earnings per share | ||
| Basic, SEK | 14.04 | 9.18 |
| Diluted, SEK | 13.97 | 9.16 |
| Average number of shares, million | ||
| Basic | 284.6 | 284.0 |
| Diluted | 286.0 | 284.6 |
Basic earnings per share is calculated by dividing the income for the period with the average number of shares. The average number of shares is the weighted average number of shares outstanding during the year, after repurchase of own shares.
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares. For the share options, a calculation is done to determine the number of shares that could have been acquired at fair value based on the monetary value of the subscription rights attached to outstanding share options. Performance share programs are included in the dilutive potential ordinary shares as from the start of each program. The dilution from Electrolux incentive programs is a consequence of the 2009 and 2010 Performance Share Programs.
As of December 31, 2010, Electrolux had sold a total of 243,756 (839,963) B-shares, with a total quota value of SEK 1m (4), to the participants in Electrolux long-term incentive programs. The average number of shares during the year has been 284,598,306 (284,023,234) and the average number of diluted shares has been 286,017,584 (284,611,284).