Share-Based Compensation

8 Months Ended

Sep. 05, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Share-Based Compensation

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

	12 Weeks Ended				36 Weeks Ended
	9/5/2020		9/7/2019		9/5/2020		9/7/2019
Share-based compensation expense - equity awards	$	85	$	51	$	186	$	169
Share-based compensation expense - liability awards	3		3		10		7
Restructuring charges	—		—		—		1
Total (a)	$	88	$	54	$	196	$	177

(a)Primarily recorded in selling, general and administrative expenses.

The following table summarizes share-based awards granted under the terms of the PepsiCo, Inc. Long-Term Incentive Plan:

	36 Weeks Ended
	9/5/2020			9/7/2019
	Granted(a)	Weighted-Average Grant Price		Granted(a)	Weighted-Average Grant Price
Stock options	1.8	$	131.45	1.2	$	117.21
RSUs and PSUs	2.5	$	131.18	2.8	$	116.05

(a)In millions. All grant activity is disclosed at target.

For the 12 weeks ended September 5, 2020 and September 7, 2019, our grants of stock options, RSUs, PSUs and long-term cash awards were nominal.

We granted long-term cash awards to certain executive officers and other senior executives with an aggregate target value of $19 million and $16 million during the 36 weeks ended September 5, 2020 and September 7, 2019, respectively.

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

	36 Weeks Ended
	9/5/2020		9/7/2019
Expected life	6 years		5 years
Risk-free interest rate	0.9	%	2.5	%
Expected volatility	14	%	14	%
Expected dividend yield	3.4	%	3.1	%