Snapple 2013 Annual Report Download - page 108

Download and view the complete annual report

Please find page 108 of the 2013 Snapple annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 133

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133

DR PEPPER SNAPPLE GROUP, INC.
NOTES TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
98
The table below summarizes PSU activity for the year ended December 31, 2013. The fair value of performance share units
is determined based on the number of units granted and the grant date price of common stock.
PSUs
Weighted
Average Grant
Date Fair
Value
Weighted
Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic Value
(in millions)
Outstanding as of January 1, 2013 254,013 $ 37.10 1.64 $ 11
Granted 183,233 43.82
Vested and released — —
Forfeited (14,380) 40.94
Outstanding as of December 31, 2013 422,866 39.88 1.26 21
As of December 31, 2013, there was $7 million of unrecognized compensation cost related to unvested PSUs granted under
the DPS Stock Plans that is expected to be recognized over a weighted average period of 1.27 years.
17. 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 for the years ended December 31, 2013, 2012 and
2011 (in millions, except per share data):
For the Year Ended December 31,
2013 2012 2011
Basic EPS:
Net income $ 624 $ 629 $ 606
Weighted average common shares outstanding 202.9 210.6 218.7
Earnings per common share — basic $ 3.08 $ 2.99 $ 2.77
Diluted EPS:
Net income $ 624 $ 629 $ 606
Weighted average common shares outstanding 202.9 210.6 218.7
Effect of dilutive securities:
Stock options, RSUs, PSUs and dividend equivalent units 1.6 1.7 2.5
Weighted average common shares outstanding and common stock
equivalents 204.5 212.3 221.2
Earnings per common share — diluted $ 3.05 $ 2.96 $ 2.74
Stock options, RSUs, PSUs and dividend equivalent units totaling 0.5 million shares were excluded from the diluted weighted
average shares outstanding for the years ended December 31, 2013 and 2012, as they were not dilutive. Stock options, RSUs,
PSUs and dividend equivalent units totaling 0.7 million shares were excluded from the diluted weighted average shares outstanding
for the year ended December 31, 2011, as they were not dilutive. Shares to be repurchased under prepaid forward contracts are
still considered issued and outstanding and will not be used to reduce the number of weighted average basic and diluted shares
outstanding for the year ended December 31, 2013.
Under the terms of our RSU and PSU agreements, unvested RSU and PSU 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, 2013, there were 149,808 dividend equivalent units, which will vest at the time that the underlying RSU and
PSU vests.