Stock-Based Compensation

6 Months Ended

Jun. 15, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The following table summarizes our total stock-based compensation expense:

	12 Weeks Ended				24 Weeks Ended
	6/15/13		6/16/12		6/15/13		6/16/12
Stock-based compensation expense	$	72	$	69	$	149	$	125
Merger and integration charges	—		—		—		1
Restructuring and impairment benefits	—		—		—		(7		)
Total	$	72	$	69	$	149	$	119

Our weighted-average Black-Scholes fair value assumptions are as follows:

	24 Weeks Ended
	6/15/13		6/16/12
Expected life	6 years		6 years
Risk free interest rate	1.0	%	1.3	%
Expected volatility (a)	17	%	17	%
Expected dividend yield	2.7	%	3.0	%

(a) Reflects movements in our stock price over the most recent historical period equivalent to the expected life.

For the 12 weeks ended June 15, 2013, our grants of stock options, restricted stock units (RSUs) and PepsiCo equity performance units (PEPUnits) were nominal. For the 24 weeks ended June 15, 2013, we granted 2.5 million stock options, 3.9 million RSUs and 0.4 million PEPUnits at a weighted-average grant price of $75.75 under the terms of our 2007 Long-Term Incentive Plan. In connection with the Productivity Plan, the grant of the 2012 annual equity award was delayed until the second quarter of 2012. Therefore, for the 12 and 24 weeks ended June 16, 2012, we granted 3.4 million stock options and 4.2 million RSUs at a weighted-average grant price of $66.50 and 0.4 million PEPUnits at a weighted-average grant price of $66.51 under the terms of our 2007 Long-Term Incentive Plan.