XML 57 R41.htm IDEA: XBRL DOCUMENT v3.22.4
Share-based and Deferred Compensation Plans (Tables)
12 Months Ended
Dec. 31, 2022
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:

 202220212020
Risk-free interest rate1.7 %0.5 %1.0 %
Expected term6.6 years6.3 years5.8 years
Expected volatility25.0 %27.0 %24.0 %
Expected dividend yield1.9 %1.9 %1.9 %
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 year12,270  $79.96   
Granted1,333  122.01   
Exercised(2,041)69.23   
Forfeited or expired(281)107.97   
Outstanding at the end of the year11,281 
(a)
86.18 6.74$473 
Exercisable at the end of the year8,032  $77.46 5.88$407 
(a)Outstanding awards include 368 options and 10,913 SARs with weighted average exercise prices of $72.86 and $86.62, 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:

 202220212020
Options and SARs$26 $29 $75 
Restricted Stock Units27 16 20 
Performance Share Units29 30 
Total Share-based Compensation Expense$82 $75 $97 

Deferred Tax Benefit recognized$16 $15 $18 
[1] Outstanding awards include 368 options and 10,913 SARs with weighted average exercise prices of $72.86 and $86.62, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.