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Financial Statements and Corporate Governance

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(in €m)

Capital stock

Share premiums

Revaluation reserves

Other legal reserves

Treasury shares

Retained earnings

Total equity

 

 

 

 

 

 

 

 

Balance at
31st December 2005

818

8,715

2,359

1,993

(445)

(386)

13,054

Capital increase

5

89

 

 

 

 

94

Net income

 

 

 

 

 

99

99

ESOP/SOP IFRS 2

 

 

 

 

 

40

40

Cash distribution

 

(520)

 

 

 

 

(520)

Transfer to other legal reserves

 

 

 

494

 

(494)

 

Purchase of treasury shares

 

 

 

 

(35)

 

(35)

Cancellation of shares

(7)

(124)

 

 

131

 

 

Others

 

 

1,298

(1,015)

 

 

283

Balance at
31st December 2006

816

8,160

3,657

1,472

(349)

(741)

13,015

Capital increase

3

43

 

 

 

 

46

Net income

 

 

 

 

 

(446)

(446)

ESOP/SOP IFRS 2

 

 

 

 

 

48

48

Cash distribution

 

(97)

 

 

 

 

(97)

Transfer to other legal reserves

 

 

 

204

 

(204)

 

Cancellation of shares

(5)

(138)

 

 

143

 

 

Others

 

 

316

208

 

 

524

Balance at
31st December 2007

814

7,968

3,973

1,884

(206)

(1,343)

13,090

For further information to the Stockholders’ equity, please see Note 20 of the Consolidated Financial Statements.

As of 31st December 2007, the item “Revaluation reserves” relates to €3,550 million (2006: €3,188 million) resulting from changes in the fair values of cash flow hedges, recognised directly in equity and €423 million (2006: €469 million) resulting from the fair value of Securities classified as available for sale.

The other legal reserves are related to EADS’ share in the undistributed results from investments for €841 million (2006: €664 million) internally generated capitalised development costs of €900 million (2006: €873 million), €1,103 million (2006: €1,298 million) resulting from currency translation effects of affiliated companies, compensated by the recognition of actuarial losses arising from defined benefit plans in equity of €960 million (2006: €1,363 million).

The internally generated development costs reflect capitalised development costs in the consolidated subsidiaries and allocated to other legal reserves in accordance with Article 2:389 paragraph 6 of the Dutch Civil Code.