Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

YUM and the Company estimated the fair value of each stock option and SAR award granted to the Company’s employees as of the date of grant, using the BS model with the following assumptions:

	2017			2016		2015
Risk-free interest rate		1.9	%	1.3% - 1.4	%		1.3	%
Expected term (years)		6.75		6.5 - 6.75			6.5
Expected volatility		34.0	%	27.0% - 35.0	%		27.0	%
Expected dividend yield		0.0	%	0% - 2.6	%		2.2	%

Summary of award activity

	Shares (in thousands)				Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of 2017		24,728				17.88
Granted		2,234				26.56
Exercised		(4,168	)			15.50
Forfeited or expired		(1,199	)			22.90
Outstanding at the end of 2017		21,595		^(a)		18.96		5.55		455
Exercisable at the end of 2017		14,072				16.69		4.24		328

(a)	Outstanding awards include 890,249 stock options and 20,704,787 SARs with weighted average exercise prices of $14.74 and $19.14, respectively. Outstanding awards represent Yum China awards held by employees of both the Company and YUM.

Summary of Restricted Stock Units

	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of 2017		546			23.81
Granted		563			28.46
Vested		(79	)		22.02
Forfeited or expired		(81	)		25.68
Unvested at the end of 2017		949			26.56