Kraft 2012 Annual Report Download - page 80

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Note 15. Earnings Per Share (“EPS”)
We grant shares of restricted stock and restricted stock units that are considered to be participating securities. Due to the
presence of participating securities, we have calculated our earnings per share using the two - class method.
For the Years Ended
December 29,
2012
December 31,
2011
December 31,
2010
(in millions, except per share data)
Basic EPS:
Net earnings from continuing operations $ 1,642 $ 1,775 $ 1,890
Earnings and gain from discontinued operations - - 1,644
Net earnings 1,642 1,775 3,534
Earnings allocated to participating securities 5 - -
Earnings available to common shareholders - basic $ 1,637 $ 1,775 $ 3,534
Weighted-average common shares outstanding 591 591 591
Continuing operations $ 2.77 $ 3.00 $ 3.20
Discontinued operations - - 2.78
Net earnings $ 2.77 $ 3.00 $ 5.98
Diluted EPS:
Net earnings from continuing operations $ 1,642 $ 1,775 $ 1,890
Earnings and gain from discontinued operations - - 1,644
Net earnings 1,642 1,775 3,534
Earnings allocated to participating securities 5 - -
Earnings available to common shareholders - diluted 1,637 1,775 3,534
Weighted-average common shares outstanding 591 591 591
Effect of dilutive securities 5 - -
Weighted-average common shares, including dilutive effect 596 591 591
Continuing operations $ 2.75 $ 3.00 $ 3.20
Discontinued operations - - 2.78
Net earnings $ 2.75 $ 3.00 $ 5.98
On October 1, 2012, Mondele¯ z International distributed 592 million shares of Kraft Foods Group common stock to
Mondele¯z International’s shareholders. Holders of Mondele¯z International common stock received one share of Kraft
Foods Group common stock for every three shares of Mondele¯ z International common stock held on September 19, 2012.
Basic and diluted earnings per common share and the average number of common shares outstanding as of
December 31, 2011 and December 31, 2010 were retrospectively restated for the number of Kraft Foods Group shares
outstanding immediately following this transaction. The same number of shares was used to calculate basic and diluted
earnings per share as of December 31, 2011 and December 31, 2010 since no Kraft Foods Group equity awards were
outstanding prior to the Spin-Off.
We exclude antidilutive Kraft Foods Group stock options from our calculation of weighted-average shares for diluted EPS.
Antidilutive options were insignificant for the year ended December 29, 2012.
Note 16. Segment Reporting
We manufacture and market food and beverage products, including refrigerated meals, refreshment beverages and
coffee, cheese, and other grocery products, primarily in the United States and Canada. We manage and report operating
results through five reportable segments. Our reportable segments are Beverages, Cheese, Refrigerated Meals, Grocery,
and International & Foodservice.
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