Kraft 2013 Annual Report Download - page 58

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Interest and Other Expense, Net:
Interest and other expense, net consisted of:
For the Years Ended
December 28,
2013 December 29, 2012 December 31, 2011
(in millions)
Interest expense $ 479 $ 238 $ 4
Other expense, net 22 20 3
Total interest and other expense, net $ 501 $ 258 $ 7
Interest expense increased in 2013 compared to 2012 due to the entire $10.0 billion of debt outstanding for the full
year. The increase in interest expense in 2012 compared to 2011 was due to the $6.0 billion debt issuance in June
2012, the $3.6 billion debt exchange in July 2012, and the transfer of $0.4 billion of debt from
International in October 2012.
Note 7. Capital Stock
Our articles of incorporation authorize the issuance of up to 5.0 billion shares of common stock and 500 million
shares of preferred stock.
Shares of common stock issued, in treasury and outstanding were:
Shares
Issued Treasury Shares Shares Outstanding
Consummation of Spin-Off on October 1, 2012 592,257,298 — 592,257,298
Exercise of stock options and issuance of other stock awards 526,398 (19,988) 506,410
Balance at December 29, 2012 592,783,696 (19,988) 592,763,708
Exercise of stock options and issuance of other stock awards 4,059,753 (589,011) 3,470,742
Balance at December 28, 2013 596,843,449 (608,999) 596,234,450
As of December 28, 2013, we had approximately 0.8 million shares of restricted stock outstanding that were issued
to current and former employees. There were no preferred shares issued and outstanding at December 28, 2013.
On December 17, 2013, our Board of Directors authorized a $3.0 billion share repurchase program with no
expiration date. Under the share repurchase program, we are authorized to repurchase shares of our common
stock in the open market or in privately negotiated transactions. The timing and amount of share repurchases are
subject to management evaluation of market conditions, applicable legal requirements, and other factors. We are
not obligated to repurchase any of our common stock and may suspend the program at our discretion. As of
December 28, 2013, no shares have been repurchased under this program.
On October 1, 2012, International distributed 592 million shares of Kraft Foods Group common stock to
International’s shareholders. Holders of International common stock received one share of
Kraft Foods Group common stock for every three shares of International common stock held on
September 19, 2012.
Note 8. Stock Plans
Under the Kraft Foods Group, Inc. 2012 Performance Incentive Plan (the "2012 Plan"), we may grant eligible
employees awards of stock options, stock appreciation rights, restricted stock and restricted stock units (“RSUs”) as
well as performance based long-term incentive awards (“Performance Shares”). In addition, we may grant shares
of our common stock to members of the Board of Directors who are not our full-time employees under the 2012
Plan. We are authorized to issue a maximum of 72.0 million shares of our common stock under the 2012 Plan.
Stock options and stock appreciation rights granted under the plan reduce the authorized shares available for issue
at a ratio of one share per award granted. All other awards, such as restricted stock, RSUs, and Performance
Shares, granted reduce the authorized shares available for issue at a ratio of three shares per award granted. At
December 28, 2013, there were 38,339,262 shares available to be granted under the 2012 Plan. All stock awards
are issued to employees from authorized common shares.