Snapple 2012 Annual Report Download - page 110

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DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
92
RESTRICTED STOCK UNITS AND PERFORMANCE SHARE UNITS
In 2011, the Compensation Committee of the Board approved a PSU plan. Each PSU is equivalent in value to one share of
the Company's common stock. PSUs will vest three years from the beginning date of a pre-determined performance period to the
extent the Company has met two performance criteria during the performance period: (i) the percentage growth of net income and
(ii) the percentage yield from operating free cash flow.
The table below summarizes RSU and PSU activity for the year ended December 31, 2012. The fair value of restricted stock
units is determined based on the number of units granted and the grant date price of common stock.
RSUs/PSUs
Weighted
Average Grant
Date Fair
Value
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic Value
(in millions)
Outstanding as of January 1, 2012 3,321,255 $ 25.41 1.02 $ 131
Granted 993,735 37.83
Vested and released (1,564,681) 15.55
Forfeited (65,193) 35.14
Outstanding as of December 31, 2012 2,685,116 35.52 1.23 119
The total fair value of RSUs vested for the years ended December 31, 2012, 2011 and 2010 was $24 million, $21 million and
$5 million, respectively. As of December 31, 2012, there was $41 million of unrecognized compensation cost related to unvested
RSUs and PSUs granted under the DPS Stock Plans that is expected to be recognized over a weighted average period of 1.23 years.
15. Earnings Per Share
Basic 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 presents the
basic and diluted EPS and the Company's basic and diluted shares outstanding (in millions, except per share data):
For the Year Ended December 31,
2012 2011 2010
Basic EPS:
Net income $ 629 $ 606 $ 528
Weighted average common shares outstanding 210.6 218.7 240.4
Earnings per common share — basic $ 2.99 $ 2.77 $ 2.19
Diluted EPS:
Net income $ 629 $ 606 $ 528
Weighted average common shares outstanding 210.6 218.7 240.4
Effect of dilutive securities:
Stock options, RSUs, PSUs and dividend equivalent units 1.7 2.5 2.2
Weighted average common shares outstanding and common stock equivalents 212.3 221.2 242.6
Earnings per common share — diluted $ 2.96 $ 2.74 $ 2.17
Stock options, RSUs, PSUs and dividend equivalent units totaling 0.5 million, 0.7 million and 0.4 million shares were excluded
from the diluted weighted average shares outstanding for the years ended December 31, 2012, 2011 and 2010, respectively, as
they were not dilutive.
Under the terms of our RSU agreements, unvested RSU awards contain forfeitable rights to dividends and dividend equivalent
units. Because the dividend equivalent units are forfeitable, they are defined as non-participating securities. As of December 31,
2012, there were 140,854 dividend equivalent units, which will vest at the time that the underlying RSU vests.