Pepsi 2013 Annual Report Download - page 123
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105
fair value of our debt obligations as of December 28, 2013 and December 29, 2012 was $29.7 billion and
$30.5 billion, respectively, based upon prices of similar instruments in the marketplace.
The effective portion of the pre-tax losses/(gains) on our derivative instruments is categorized in the table
below.
Fair Value/Non-
designated Hedges Cash Flow Hedges
Losses/(Gains)
Recognized in
Income Statement(a)
Losses/(Gains)
Recognized in
Accumulated Other
Comprehensive Loss
Losses
Reclassified from
Accumulated Other
Comprehensive Loss
into Income
Statement(b)
2013 2012 2013 2012 2013 2012
Foreign exchange $(9)
$ (23) $ (24) $41
$—
$8
Interest rate 99 17 (13) (2) 319
Commodity 126 (23) 57 11 42 63
Total $ 216 $ (29) $20
$50
$45
$90
(a) Foreign exchange derivative gains/losses are primarily included in selling, general and administrative expenses. Interest rate derivative
losses are primarily from fair value hedges and are included in interest expense. These losses are substantially offset by decreases in the
value of the underlying debt, which are also included in interest expense. Commodity derivative gains/losses are included in either cost of
sales or selling, general and administrative expenses, depending on the underlying commodity.
(b) Foreign exchange derivative gains/losses are primarily included in cost of sales. Interest rate derivative losses are included in interest
expense. Commodity derivative gains/losses are included in either cost of sales or selling, general and administrative expenses, depending
on the underlying commodity.
Note 11 — Net Income Attributable to PepsiCo per Common Share
Basic net income attributable to PepsiCo per common share is net income available for PepsiCo common
shareholders divided by the weighted average of common shares outstanding during the period. Diluted net
income attributable to PepsiCo per common share is calculated using the weighted average of common shares
outstanding adjusted to include the effect that would occur if in-the-money employee stock options were
exercised and RSUs and preferred shares were converted into common shares. Options to purchase 0.6 million
shares in 2013, 9.6 million shares in 2012 and 25.9 million shares in 2011 were not included in the calculation
of diluted earnings per common share because these options were out-of-the-money. These out-of-the-money
options had average exercise prices of $75.69 in 2013, $67.64 in 2012 and $66.99 in 2011.