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Share-based and Deferred Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2018
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:

 
 
2018
 
2017
 
2016
Risk-free interest rate
 
2.5
%
 
1.9
%
 
1.4
%
Expected term (years)
 
6.5 years

 
6.4 years

 
6.4 years

Expected volatility
 
22.0
%
 
22.9
%
 
27.0
%
Expected dividend yield
 
1.8
%
 
1.8
%
 
2.6
%
Summary of award activity Stock Options and SARs

 
 
Shares
(in thousands)
 
Weighted-Average Exercise
Price
 
Weighted- Average Remaining Contractual Term (years)
 
Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of the year
 
18,285

 
 
 
$
44.85

 
 
 
 
Granted
 
2,580

 
 
 
78.35

 
 
 
 
Exercised
 
(3,832
)
 
 
 
34.05

 
 
 
 
Forfeited or expired
 
(842
)
 
 
 
71.72

 
 
 
 
Outstanding at the end of the year
 
16,191

(a) 
 
 
51.84

 
5.50

 
$
626

Exercisable at the end of the year
 
10,297

 
 
 
$
43.23

 
4.02

 
$
501



(a)
Outstanding awards include 753 options and 15,438 SARs with weighted average exercise prices of $42.40 and $52.30, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.

 [1]
Impact on net income The components of share-based compensation expense and the related income tax benefits are shown in the following table:

 
 
2018
 
2017
 
2016
 
Options and SARs
 
$
37

 
$
30

 
$
38

 
Restricted Stock Units
 
6

 
26

 
38

 
Performance Share Units
 
7

 
9

 
4

 
Total Share-based Compensation Expense
 
$
50

(a) 
$
65

(a) 
$
80

(b) 
Deferred Tax Benefit recognized
 
$
9

 
$
22

(c) 
$
26

(c) 
 
 
 
 
 
 
 
 
EID compensation expense not share-based
 
$
(2
)
 
$
12

 
$
5

 

(a)
Includes $3 million of appreciation and $18 million of depreciation in the market price of Yum China's stock in 2018 and 2017, respectively. See Note 5.

(b)
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.

(c)    Deferred tax benefit recognized does not reflect the impact of the Tax Act. See Note 17.
[1] Outstanding awards include 753 options and 15,438 SARs with weighted average exercise prices of $42.40 and $52.30, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.