Pepsi 2007 Annual Report Download - page 72

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Our weighted-average Black-Scholes fair value assumptions are as follows:
2007 2006 2005
Expected
life 6 yrs. 6 yrs. 6 yrs.
Risk free interest rate 4.8% 4.5% 3.8%
Expected
volatility 15% 18% 23%
Expected dividend yield 1.9% 1.9% 1.8%
Average Aggregate
Average Life Intrinsic
Our Stock Option Activity Options(a) Price(b) (years)(c) Value(d)
Outstanding at December 30, 2006 127,749 $44.24
Granted 11,671 65.12
Exercised (28,116) 39.34
Forfeited/expired (2,496) 56.04
Outstanding at December 29, 2007 108,808 $47.47 5.26 $3,216,316
Exercisable at December 29, 2007 75,365 $42.65 3.97 $2,590,994
(a) Options are in thousands and include options previously granted under Quaker plans. No additional options or shares may be granted under the Quaker plans.
(b) Weighted-average exercise price.
(c) Weighted-average contractual life remaining.
(d) In thousands.
Average Average Aggregate
Intrinsic Life Intrinsic
Our RSU Activity RSUs(a) Value(b) (years)(c) Value(d)
Outstanding at December 30, 2006 7,885 $53.38
Granted 2,342 65.21
Converted (2,361) 47.83
Forfeited/expired (496) $57.73
Outstanding at December 29, 2007 7,370 $58.63 1.28 $567,706
(a) RSUs are in thousands.
(b) Weighted-average intrinsic value at grant date.
(c) Weighted-average contractual life remaining.
(d) In thousands.
Other Stock-Based Compensation Data 2007 2006 2005
Stock Options
Weighted-average fair value of options granted $13.56 $12.81 $13.45
Total intrinsic value of options exercised(a)
$826,913 $686,242 $632,603
RSUs
Total number of RSUs granted(a)
2,342 2,992 3,097
Weighted-average intrinsic value of RSUs granted $65.21 $58.22 $53.83
Total intrinsic value of RSUs converted(a)
$125,514 $10,934 $4,974
(a) In thousands.
The expected life is the period over
which our employee groups are expected
to hold their options. It is based on our
historical experience with similar grants.
The risk free interest rate is based on
the expected U.S. Treasury rate over the
expected life. Volatility refl ects move-
ments in our stock price over the most
recent historical period equivalent to the
expected life. Dividend yield is estimated
over the expected life based on our
stated dividend policy and forecasts
of net income, share repurchases and
stock price.
A summary of our stock-based com-
pensation activity for the year ended
December 29, 2007 is presented below:
At December 29, 2007, there was $287 million of total unrecognized compensation cost related to nonvested share-based
compensation grants. This unrecognized compensation is expected to be recognized over a weighted-average period of 1.5 years.
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