Use of EBIT*

EADS uses GlossaryEBIT pre-goodwill impairment and exceptionals as a key indicator of its economic performance. The term “exceptionals” refers to such items as depreciation expenses of fair value adjustments relating to the EADS merger, the Airbus Combination and the formation of MBDA, as well as impairment charges thereon.

Set forth below is a table reconciling EADS’ profit before finance costs and income tax (as reflected in EADS’ IFRS consolidated income statement) with EADS’ EBIT*.

 Download Excel

(in €m)

Year ended 31st December 2006

Year ended 31st December 2005

Year ended 31st December 2004

 

 

 

 

Profit before finance costs
and income tax

278

2,712

2,215

Subsequent adjustment of
goodwill(1)

64

0

0

Exceptional depreciation
(fixed assets)

57

136

212

Exceptional depreciation (others)

0

4

5

EBIT*

399

2,852

2,432

(1)

Relates to the finalisation of a tax audit for Dasa for the years 1994 until 1999. See “1.1.3 Critical Accounting Considerations, Policies and Estimates — Fair Value Adjustments”.