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84 PepsiCo, Inc. 2009 Annual Report
Notes to Consolidated Financial Statements
The computations of basic and diluted net income attributable to PepsiCo per common share are as follows:
2009 20082007
Income Shares(a) Income Shares(a) Income Shares(a)
Net income attributable to PepsiCo $5,946 $5,142 $5,658
Preferred shares:
Dividends (1) (2) (2)
Redemption premium (5) (6) (10)
Net income available for PepsiCo common shareholders $5,940 1,558 $5,134 1,573 $5,646 1,621
Basic net income attributable to PepsiCo per common share $÷3.81 $÷3.26 $÷3.48
Net income available for PepsiCo common shareholders $5,940 1,558 $5,134 1,573 $5,646 1,621
Dilutive securities:
Stock options and RSUs – 17 – 27 - 35
ESOP convertible preferred stock 6 2 8 2 12 2
Diluted $5,946 1,577 $5,142 1,602 $5,658 1,658
Diluted net income attributable to PepsiCo per common share $÷3.77 $÷3.21 $÷3.41
(a) Weighted-average common shares outstanding.
Note 12 Preferred Stock
As of December 26, 2009 and December 27, 2008, there were 3 million shares of convertible preferred stock authorized. The preferred
stock was issued only for an ESOP established by Quaker and these shares are redeemable for common stock by the ESOP participants.
The preferred stock accrues dividends at an annual rate of $5.46 per share. At year-end 2009 and 2008, there were 803,953 preferred shares
issued and 243,553 and 266,253 shares outstanding, respectively. The outstanding preferred shares had a fair value of $73 million as of
December 26, 2009 and $72 million as of December 27, 2008. Each share is convertible at the option of the holder into 4.9625 shares of
common stock. The preferred shares may be called by us upon written notice at $78 per share plus accrued and unpaid dividends.
Quaker made the final award to its ESOP plan in June 2001.
2009 2008 2007
Shares Amount Shares Amount Shares Amount
Preferred stock 0.8 $÷41 0.8 $÷41 0.8 $÷41
Repurchased preferred stock
Balance, beginning of year 0.5 $138 0.5 $132 0.5 $120
Redemptions 0.1 7 – 6 – 12
Balance, end of year 0.6 $145 0.5 $138 0.5 $132
88045_pepsico-09ar_64-86_R1.indd 84 2/24/10 5:09 PM