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. 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*.

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(1)

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

(in €m)

Year ended 31st December 2007

Year ended 31st December 2006

Year ended 31st December 2005

 

 

 

 

Profit (loss) before finance costs
and income taxes

(33)

278

2,712

Disposal of goodwill/Subsequent adjustments to goodwill

12

64(1)

-

Exceptional depreciation
(fixed assets)

49

57

136

Exceptional disposal (fixed assets)

24

-

-

Exceptional depreciation (others)

-

-

4

EBIT*

52

399

2,852