Use of EBIT*
EADS uses
EBIT* 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. It also comprises disposal impacts related to goodwill and fair value adjustments resulting from these transactions.
Set forth below is a table reconciling EADS’ profit (loss) before finance costs and income taxes (as reflected in EADS’ IFRS consolidated income statement) with EADS’ EBIT*.
| |||||
|
(in €m) |
Year ended 31st December 2007 |
Year ended 31st December 2006 |
Year ended 31st December 2005 | ||
|
|
|
|
| ||
|
Profit (loss) before finance costs |
(33) |
278 |
2,712 | ||
|
Disposal of goodwill/Subsequent adjustments to goodwill |
12 |
64(1) |
- | ||
|
Exceptional depreciation |
49 |
57 |
136 | ||
|
Exceptional disposal (fixed assets) |
24 |
- |
- | ||
|
Exceptional depreciation (others) |
- |
- |
4 | ||
|
EBIT* |
52 |
399 |
2,852 | ||
