Stock-Based Compensation

9 Months Ended

Sep. 07, 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				36 Weeks Ended
	9/7/2013		9/8/2012		9/7/2013		9/8/2012
Stock-based compensation expense	$	70	$	68	$	219	$	193
Merger and integration charges	—		1		—		2
Restructuring and impairment benefits	—		—		—		(7		)
Total	$	70	$	69	$	219	$	188

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

	36 Weeks Ended
	9/7/2013		9/8/2012
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 September 7, 2013, our grants of stock options, restricted stock units (RSUs) and PepsiCo equity performance units (PEPUnits) were nominal. For the 36 weeks ended September 7, 2013, we granted 2.7 million stock options, 4.2 million RSUs and 0.4 million PEPUnits at weighted-average grant prices of $76.22, $76.35 and $75.75, respectively, under the terms of our 2007 Long-Term Incentive Plan.

For the 12 weeks ended September 8, 2012, our grants of stock options, RSUs and PEPUnits were nominal. For the 36 weeks ended September 8, 2012, we granted 3.6 million stock options, 4.3 million RSUs and 0.4 million PEPUnits at weighted-average grant prices of $66.94, $66.51 and $66.70, respectively, under the terms of our 2007 Long-Term Incentive Plan.