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Share-based and Deferred Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2016
Compensation Related Costs [Abstract]  
Weighted-average assumptions used in the Black-Scholes option-pricing model We estimated the fair value of each stock option and SAR award as of the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

 
 
2016
 
2015
 
2014
Risk-free interest rate
 
1.4
%
 
1.3
%
 
1.6
%
Expected term (years)
 
6.4 years

 
6.4 years

 
6.2 years

Expected volatility
 
27.0
%
 
26.9
%
 
29.7
%
Expected dividend yield
 
2.6
%
 
2.2
%
 
2.1
%
Summary of award activity Stock Options and SARs

 
 
Shares
(in thousands)
 
Weighted-Average Exercise
Price(a)
 
Weighted- Average Remaining Contractual Term (years)(a)
 
Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of the year
 
25,933

 
 
 
$
51.79

 
 
 
 
Granted
 
4,329

 
 
 
70.64

 
 
 
 
Exercised
 
(5,886
)
 
 
 
40.84

 
 
 
 
Forfeited or expired
 
(1,101
)
 
 
 
70.66

 
 
 
 
Outstanding at October 31, 2016
 
23,275

 
 
 
57.20

 
 
 
 
Equitable adjustment
 
(1,283
)
(b) 
 
 
 
 
 
 
 
Exercised
 
(631
)
 
 
 
24.66

 
 
 
 
Forfeited or expired
 
(119
)
 
 
 
52.13

 
 
 
 
Outstanding at the end of the year
 
21,242

(c) 
 
 
$
40.78

 
5.63

 
$
479

Exercisable at the end of the year
 
13,710

 
 
 
$
35.37

 
4.21

 
$
383


(a)
Activity and amounts that occurred after October 31, 2016 reflect modifications related to the Separation.

(b)
Adjustment to maintain intrinsic value upon Separation.

(c)
Outstanding awards include 1,341 options and 19,901 SARs with weighted average exercise prices of $33.33 and $41.28, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.
Impact on net income The components of share-based compensation expense and the related income tax benefits are shown in the following table:

 
 
2016
 
2015
 
2014
Options and SARs
 
$
38

 
$
41

 
$
39

Restricted Stock Units
 
38

 
3

 
5

Performance Share Units
 
4

 
2

 
1

Total Share-based Compensation Expense
 
$
80

(a) 
$
46

 
$
45

Deferred Tax Benefit recognized
 
$
26

 
$
15

 
$
14

 
 
 
 
 
 
 
EID compensation expense not share-based
 
$
5

 
$
1

 
$
8



(a)    Includes $30 million due to modifications of awards in connection with the Separation that was not allocated to any of our operating segments for performance purposes. See Note 5.