Preferred Stock
As of December 28, 2013 and December 29, 2012, 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 28, 2013 and December 29, 2012, there were 803,953 preferred shares issued and 167,053 and 186,553 shares outstanding, respectively. The outstanding preferred shares had a fair value of $69 million as of December 28, 2013 and $63 million as of December 29, 2012. Each share is convertible at the option of the holder into 4.9625 shares of common stock. 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 plan in June 2001.
The following summarizes our preferred stock activity:
|
| | | | | | | | | | | | | | | | | | | | |
| 2013 | | 2012 | | 2011 |
| 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 |
| | $ | 164 |
| | 0.6 |
| | $ | 157 |
| | 0.6 |
| | $ | 150 |
|
Redemptions | — |
| | 7 |
| | — |
| | 7 |
| | — |
| | 7 |
|
Balance, end of year | 0.6 |
| | $ | 171 |
| | 0.6 |
| | $ | 164 |
| | 0.6 |
| | $ | 157 |
|
