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 9.6 million shares in 2012, 25.9 million shares in 2011 and 24.4 million shares in 2010 were not included in the calculation of diluted earnings per common share because these options were out-of-the-money. Out-of-the-money options had average exercise prices of $67.64 in 2012, $66.99 in 2011 and $67.26 in 2010.

The computations of basic and diluted net income attributable to PepsiCo per common share are as follows:



	2012				2011				2010
	Income			Shares^(a)	Income			Shares^(a)	Income			Shares^(a)
Net income attributable to PepsiCo	$	6,178			$	6,443			$	6,320
Preferred shares:
Dividends	(1		)		(1		)		(1		)
Redemption premium	(6		)		(6		)		(5		)
Net income available for PepsiCo common shareholders	$	6,171		1,557	$	6,436		1,576	$	6,314		1,590
Basic net income attributable to PepsiCo per common share	$	3.96			$	4.08			$	3.97
Net income available for PepsiCo common shareholders	$	6,171		1,557	$	6,436		1,576	$	6,314		1,590
Dilutive securities:
Stock options and RSUs	—			17	—			20	—			23
ESOP convertible preferred stock	7			1	7			1	6			1
Diluted	$	6,178		1,575	$	6,443		1,597	$	6,320		1,614
Diluted net income attributable to PepsiCo per common share	$	3.92			$	4.03			$	3.91


(a)	Weighted-average common shares outstanding (in millions).