Pepsi 2014 Annual Report Download - page 129

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109
The computations of basic and diluted net income attributable to PepsiCo per common share are as follows:
2014 2013 2012
Income Shares(a) Income Shares(a) Income Shares(a)
Net income attributable to PepsiCo $ 6,513 $ 6,740 $ 6,178
Preferred shares:
Dividends (1) (1) (1)
Redemption premium (9) (7) (6)
Net income available for PepsiCo
common shareholders $ 6,503 1,509 $ 6,732 1,541 $ 6,171 1,557
Basic net income attributable to
PepsiCo per common share $ 4.31 $ 4.37 $ 3.96
Net income available for PepsiCo
common shareholders $ 6,503 1,509 $ 6,732 1,541 $ 6,171 1,557
Dilutive securities:
Stock options, RSUs, PSUs,
PEPunits and Other — 17 — 18 — 17
ESOP convertible preferred stock 10 1 8171
Diluted $ 6,513 1,527 $ 6,740 1,560 $ 6,178 1,575
Diluted net income attributable to
PepsiCo per common share $ 4.27 $ 4.32 $ 3.92
(a) Weighted-average common shares outstanding (in millions).
Note 12 — Preferred Stock
As of December 27, 2014 and December 28, 2013, there were 3 million shares of convertible preferred stock
authorized. The preferred stock was issued 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. As of December 27, 2014 and December 28, 2013, there were 803,953 preferred shares issued and
145,453 and 167,053 shares outstanding, respectively. The outstanding preferred shares had a fair value of
$70 million as of December 27, 2014 and $69 million as of December 28, 2013. Each share is convertible
at the option of the holder into 4.9625 shares of common stock. Under certain conditions, 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 in June 2001.
The following summarizes our preferred stock activity:
2014 2013 2012
Shares(a) Amount Shares(a) Amount Shares(a) Amount
Preferred stock 0.8 $ 41 0.8 $ 41 0.8 $ 41
Repurchased preferred stock
Balance, beginning of year 0.6 $ 171 0.6 $ 164 0.6 $ 157
Redemptions 0.1 10 — 7 — 7
Balance, end of year 0.7 $ 181 0.6 $ 171 0.6 $ 164
(a) In millions.