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17. Earnings Per Share
Basic earnings (loss) per share (“EPS”) is computed by dividing net income (loss) 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 (loss) for the
respective period and the Company’s basic shares outstanding (in millions, except per share data):
2009 2008 2007
For the Year Ended December 31,
Basic EPS:
Net income (loss) .................................... $ 555 $ (312) $ 497
Weighted average common shares outstanding(1) ............. 254.2 254.0 253.7
Earnings (loss) per common share — basic ................. $ 2.18 $ (1.23) $ 1.96
The following table presents the computation of diluted EPS (dollars in millions, except per share amounts):
2009 2008 2007
For the Year Ended December 31,
Diluted EPS:
Net income (loss) .................................... $ 555 $ (312) $ 497
Weighted average common shares outstanding(1) ............. 254.2 254.0 253.7
Effect of dilutive securities:
Stock options and RSUs(2) ........................... 1.0 — —
Weighted average common shares outstanding and common stock
equivalents ....................................... 255.2 254.0 253.7
Earnings (loss) per common share — diluted ................ $ 2.17 $ (1.23) $ 1.96
(1) For all periods prior to May 7, 2008, the date DPS distributed the common stock of DPS to Cadbury plc
shareholders, the same number of shares is being used for diluted EPS as for basic EPS as no common stock of
DPS was previously outstanding and no DPS equity awards were outstanding for the prior periods. Subsequent
to May 7, 2008, the number of basic shares includes approximately 500,000 shares related to former Cadbury
benefit plans converted to DPS shares on a daily volume weighted average. See Note 16 for further information
regarding the Company’s stock-based compensation plans.
(2) Anti-dilutive stock options and RSUs totaling 1.1 million shares were excluded from the diluted weighted
average shares outstanding for the year ended December 31, 2009. Anti-dilutive weighted average options and
RSUs totaling 0.8 million shares were excluded from the diluted weighted average shares outstanding for the
year ended December 31, 2008. DPS had no anti-dilutive options and RSUs for the year ended December 31,
2007.
110
DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)