Snapple 2008 Annual Report Download - page 121

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the implied yield on zero coupon bonds issued in the UK, with periods which match the expected term of the awards
valued. The expected dividend yield was estimated using the historical dividend yield of Cadbury.
A summary of the status of the Company’s non-vested shares, in relation to the BSRP, LTIP and ISAP as of
December 31, 2007, and changes during the year ended December 31, 2007, is presented below:
Number of
Non-vested Shares (‘000)
Weighted Average
Grant Date Fair
Value
Non-vested as of December 31, 2006 ................ 2,388 $6.61
Granted .................................... 743 4.62
Vested ..................................... (828) 6.06
Forfeitures .................................. (417) 5.75
Non-vested as of December 31, 2007 ................ 1,886 6.26
The total grant date fair value of shares vested during the year was $5 million in 2007 and $1 million in 2006.
The total vested share units at December 31, 2007, was 237,447 with a weighted average grant date fair value of
$6.31.
A summary of option activity during 2007, in relation to the DSOP, is presented below:
Shares (‘000s)
Weighted
Average
Exercise Price
Weighted Average
Remaining
Contractual Term
Aggregate
Intrinsic
Value
Outstanding as of January 1, 2007 .... 22,669 $ 8.62
Exercised . . ................... (6,006) 8.37
Cancelled . . ................... (146) 9.76
Other ........................ 735 10.52
Outstanding as of December 31, 2007 . . 17,252 9.00 5.3 $58,632
Exercisable as of December 31, 2007 . . 13,502 8.58 4.8 $51,588
17. Earnings Per Share
Basic (loss) earnings per share (“EPS”) is computed by dividing net income by the weighted average number
of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of all dilutive securities.
The following table sets forth the computation of basic EPS utilizing the net income for the respective period and the
Company’s basic shares outstanding (in millions, except per share data):
2008 2007 2006
For the Year Ended
December 31,
Basic EPS:
Net (loss) income ...................................... $ (312) $ 497 $ 510
Weighted average common shares outstanding(1) ............... 254.0 253.7 253.7
(Loss) earnings per common share — basic ................... $(1.23) $ 1.96 $ 2.01
97
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)