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16. Earnings per share from continuing and discontinued operations

Earnings per share are determined according to IAS 33 (Earnings per Share) by dividing net income by the weighted average number of shares. The number of ordinary shares to be taken into account for this purpose is increased by the potential shares that would be issued upon exercise of the rights under the mandatory convertible bond issued in April 2006. The financing expenses for the mandatory convertible bond are added back to net income. In computing earnings per share, the ordinary shares to be issued upon exercise of the conversion rights from this bond issue are counted along with the already issued shares, so basic and diluted earnings per share are identical. Further details of the convertible bond can be found in Note [27].

	2007	2008
	€ million	€ million
Income after taxes	4,716	1,724
of which attributable to non-controlling interest	5	5
of which attributable to Bayer AG stockholders (net income)	4,711	1,719
Income from discontinued operations after taxes	2,410	4

Financing expenses for the mandatory convertible bond, net of tax effects	98	112
Adjusted net income from continuing operations	2,399	1,827
Adjusted net income from continuing and discontinued operations	4,809	1,831

Weighted average number of issued ordinary shares	764,341,920	764,342,029
Potential shares to be issued upon conversion of the mandatory convertible bond	59,565,383	59,893,122
Adjusted weighted average total number of issued and potential ordinary shares	823,907,303	824,235,151

Basic earnings per share	€	€
from continuing operations	2.91	2.22
from discontinued operations	2.93	-
from continuing and discontinued operations	5.84	2.22

Diluted earnings per share	€	€
from continuing operations	2.91	2.22
from discontinued operations	2.93	-
from continuing and discontinued operations	5.84	2.22