94 Consolidated  Notes to the  Financial  Statements 2011 2010 No. millions  No. millions Weighted average number of ordinary shares Weighted average number of ordinary shares used in the calculation of basic EPS  456.5 448.8 Effect of dilution – LTIP share performance rights  0.4 0.6 Weighted average number of ordinary shares used in the calculation of diluted EPS  456.9 449.4 2011 2010 $m $m Earnings used in calculating basic and diluted earnings per share Profit for the year attributable to owners of AGL Energy Limited  558.7 356.1 Statutory earnings used to calculate basic and diluted EPS 558.7 356.1 Significant expense/(income) items after income tax  27.3 (49.9) (Gain)/loss in fair value of financial instruments after income tax  (154.9) 122.7 Underlying earnings used to calculate basic and diluted EPS 431.1 428.9 2011 2010 Cents Cents Note 36 – Earnings per share (EPS) Statutory earnings per share Basic earnings per share  122.4 79.3 Diluted earnings per share  122.3 79.2 Underlying earnings per share Basic earnings per share  94.4 95.6 Diluted earnings per share  94.4 95.4 2011 2010 $m $m Note 35 – Retained earnings Balance at beginning of financial year  1,892.6 1,802.4 Profit for the year attributable to owners of AGL Energy Limited  558.7 356.1 Payment of dividends (Note 10)  (268.4) (255.9) Actuarial gain/(loss) on defined benefit plans, net of tax  2.5 (5.4) Share of actuarial gain/(loss) on defined benefit plans attributable to associates  8.6 (4.6) Balance at end of financial year  2,194.0 1,892.6