Analyzing and Interpreting Equity Accounts and Accumulated Other Comprehensive Income Following is the stockholders’ equity section of Beam Inc. balance sheet and its statement of stockholders’

equity.

December 31 (In millions, except per share amounts) 2012 Stockholders’ equity

$2.67 Convertible preferred stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ —

Common stock, par value $3.125 per share (750.0 shares authorized; 234.9 shares issued; 160.1 shares outstanding in 2012 and 155.9 shares outstanding in 2011) . . . . . . . . 734.0 Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 873.7 Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (186.0)

Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,139.7 Treasury stock, at cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,949.3)

Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,612.1

(In millions, except per share amounts)

$2.67 Convertible Preferred Stock Common Stock Paid-in Capital Accumulated Other Comprehensive Income (Loss)

Retained Earnings Treasury Stock At Cost Total Equity Balance at December 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . $4.7 $734.0 $882.4 $(304.1) $5,892.6 $(3,109.9) $4,099.7 Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — 382.4 — 382.4 Other comprehensive Income . . . . . . . . . . . . . . . . . . . . . . . . — — — 118.1 — — 118.1 Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — (130.1) — (130.1)

Stock-based compensation . . . . . . . . . . . . . . . . . . . . . . . . . . — — 13.2 — (3.2) 126.1 136.1 Tax benefit on exercise of stock options . . . . . . . . . . . . . . . . — — 12.8 — — — 12.8 Conversion of preferred stock . . . . . . . . . . . . . . . . . . . . . . . . (3.4) — (31.2) — — 34.5 (0.1)

Redemption of preferred stock . . . . . . . . . . . . . . . . . . . . . . . (1.3) — (0.4) — — — (1.7)

Spin-off of Fortune Brands Home & Security Inc. . . . . . . . . . — — (3.1) — (2.0) — (5.1)

Balance at December 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . $ — $734.0 $873.7 $(186.0) $6,139.7 $(2,949.3) $4,612.1 Other comprehensive income (in millions) 2012 Foreign currency translation adjustments ????oreign currency translation gains (losses). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ????122.0 Reclassification adjustments included in earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ????
Tax benefit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 ????oreign currency translation adjustments, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124.4 Derivative instruments Derivative instrument losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3.4)
Reclassification adjustments included in earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 Tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.2)
Derivative instruments, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.2)
Pension and other postretirement benefit adjustments Current year actuarial loss????pension plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28.0)
Current year actuarial loss????other postretirement benefit plans . . . . . . . . . . . . . . . . . . . (0.2)
Reclassification adjustments included in earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.1 Tax benefit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.0 Pension and other postretirement benefit adjustments, net . . . . . . . . . . . . . . . . . . . . . (6.1)
Total other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ????118.1 Required

a. Explain the “$2.67” component of the convertible preferred stock account title.

b. Show (confirm) the computation that yields the $734.0 million common stock at year-end 2012.

c. At what average price were Beam’s common shares issued as of year-end 2012?

d. What is included in Beam’s accumulated other comprehensive income for 2012? What other items are typically included in accumulated other comprehensive income?