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.
The computations of basic and diluted net income attributable to PepsiCo per common share are as follows:
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| | | | | | | | | | | | | | | | | | | | |
| 2013 | | 2012 | | 2011 |
| Income | | Shares(a) | | Income | | Shares(a) | | Income | | Shares(a) |
Net income attributable to PepsiCo | $ | 6,740 |
| | | | $ | 6,178 |
| | | | $ | 6,443 |
| | |
Preferred shares: | | | | | | | | | | | |
Dividends | (1 | ) | | | | (1 | ) | | | | (1 | ) | | |
Redemption premium | (7 | ) | | | | (6 | ) | | | | (6 | ) | | |
Net income available for PepsiCo common shareholders | $ | 6,732 |
| | 1,541 |
| | $ | 6,171 |
| | 1,557 |
| | $ | 6,436 |
| | 1,576 |
|
Basic net income attributable to PepsiCo per common share | $ | 4.37 |
| | | | $ | 3.96 |
| | | | $ | 4.08 |
| | |
Net income available for PepsiCo common shareholders | $ | 6,732 |
| | 1,541 |
| | $ | 6,171 |
| | 1,557 |
| | $ | 6,436 |
| | 1,576 |
|
Dilutive securities: | | | | | | | | | | | |
Stock options, RSUs, and PEPUnits | — |
| | 18 |
| | — |
| | 17 |
| | — |
| | 20 |
|
ESOP convertible preferred stock | 8 |
| | 1 |
| | 7 |
| | 1 |
| | 7 |
| | 1 |
|
Diluted | $ | 6,740 |
| | 1,560 |
| | $ | 6,178 |
| | 1,575 |
| | $ | 6,443 |
| | 1,597 |
|
Diluted net income attributable to PepsiCo per common share | $ | 4.32 |
| | | | $ | 3.92 |
| | | | $ | 4.03 |
| | |
| |
(a) | Weighted-average common shares outstanding (in millions). |
