Stock-Based Compensation

3 Months Ended

Mar. 24, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Stock-Based Compensation

For the 12 weeks ended March 24, 2012, we recognized stock-based compensation expense of $50 million ($56 million recorded as stock-based compensation expense, $1 million included in merger and integration charges and income of $7 million included in restructuring and impairment charges). For the 12 weeks ended March 19, 2011, we recognized stock-based compensation expense of $79 million ($72 million recorded as stock-based compensation expense and $7 million included in merger and integration charges).

In connection with our multi-year productivity plan (Productivity Plan) announced in February 2012, the Compensation Committee of PepsiCo's Board of Directors elected to delay the grant of the annual equity award from March to April, in order to appropriately administer the award following employee headcount reductions. Therefore, for the 12 weeks ended March 24, 2012, we did not issue any grants of stock options or restricted stock units (RSU). For the 12 weeks ended March 19, 2011, we granted 6.4 million stock options and 5.1 million RSUs at a weighted-average grant price of $63.75, under the terms of our 2007 Long-Term Incentive Plan.

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Our weighted-average Black-Scholes fair value assumptions in the prior year were as follows:

	12 Weeks Ended
	3/19/11
Expected life		6 yrs.
Risk free interest rate		2.6	%
Expected volatility(a)		16	%
Expected dividend yield		2.9	%

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