| 27 | Earnings per share |
The calculation of basic earnings per share has been made by dividing the profit attributable to shareholders of the parent by the weighted-average number of ordinary shares outstanding during the year excluding ordinary shares purchased by the company and held as treasury shares (Note 26).
The calculation of diluted earnings per share has been made by dividing the profit attributable to shareholders of the parent, adjusted to assume conversion of all dilutive potential ordinary shares at subsidiaries by the weighted-average number of shares outstanding during the year excluding ordinary shares purchased by the company and held as treasury shares (Note 26). The Company’s subsidiaries have two categories of potential dilutive effects: share options and put options. For the share options, a calculation is done to determine the effect of the dilution in the profit attributable to shareholders of the parent due the exercise of the share options at subsidiaries. For the put option, is assumed to have been converted into ordinary shares, and the profit attributable to shareholders of the parent is adjusted.
The following table sets forth the calculation of earnings per share (in thousands of Brazilian Reais, except per share amounts):
| December 31, 2017 |
December 31, 2016 |
December 31, 2015 |
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Profit attributable from continued operation to ordinary equity holders for basic earnings |
551,021 | 325,132 | 381,392 | |||||||||
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Profit attributable from discontinued operation to ordinary equity holders for basic earnings |
— | (47,328 | ) | 24,326 | ||||||||
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Effect of dilution: |
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Dilutive effect of subsidiary’s stock option plan |
(1,352 | ) | (3,096 | ) | (394 | ) | ||||||
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Dilutive effect of subsidiary’s stock option plan—Discontinued operation |
— | 200 | — | |||||||||
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Dilutive effect of put option |
— | (15,601 | ) | (15,601 | ) | |||||||
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Profit from continued operation attributable to ordinary equity holders adjusted for the effect of dilution |
549,669 | 306,435 | 365,397 | |||||||||
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Profit from discontinued operation attributable to ordinary equity holders adjusted for the effect of dilution |
— | (47,128 | ) | 24,326 | ||||||||
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Basic number of shares outstanding—In thousands of shares |
262,999 | 264,691 | 264,691 | |||||||||
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Effect of dilution: |
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Dilutive effect of stock option plan |
5,553 | — | — | |||||||||
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Diluted number of shares outstanding—In thousands of shares |
268,552 | 264,691 | 264,691 | |||||||||
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Basic earnings per share from: |
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Continuing operations |
R$2.0951 | R$1.2283 | R$1.4409 | |||||||||
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Discontinuing operations |
— | (R$ 0.1788 | ) | R$0.0919 | ||||||||
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| R$2.0951 | R$1.0495 | R$1.5328 | ||||||||||
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Diluted earnings per share from: |
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Continuing operations |
R$2.0468 | R$1.1577 | R$1.3805 | |||||||||
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Discontinuing operations |
— | (R$ 0.1780 | ) | R$0.0919 | ||||||||
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| R$2.0468 | R$0.9797 | R$1.4724 |
The non-controlling interests of the indirect subsidiary Brado Logística S.A. have the right to exercise a liquidity option provided for in the shareholders’ agreement signed on August 5, 2013. This option would exchange all Brado shares held by such minority shareholders by shares of Rumo. The exchange ratio shall take into account the economic value for both Brado and Rumo shares. At the Company’s exclusive discretion, an equivalent cash payment is also possible.
For the year ended December 31, 2017, 3,558,449 share options from indirect subsidiary Rumo S.A. and 20,621,948 share options from indirect subsidiary Brado Logística S.A. were excluded from the diluted weighted-average number of ordinary shares calculation because their effect would have been anti-dilutive.
For the year ended December 31, 2017, 11,171,300 shares related to the share repurchase plan of subsidiary Cosan S.A. have an antidilutive effect, so they were not considered in the diluted earnings per share analysis.