Pepsi 2013 Annual Report Download - page 110

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92
Other Stock-Based Compensation Data
2013 2012 2011
Stock Options
Total number of options granted(a) 2,868 3,696 7,150
Weighted-average fair value of options granted $ 8.14 $ 6.86 $ 7.79
Total intrinsic value of options exercised(a) $ 471,475 $ 512,636 $ 385,678
RSUs
Total number of RSUs granted(a) 4,231 4,404 5,333
Weighted-average intrinsic value of RSUs granted $ 76.30 $ 66.64 $ 63.87
Total intrinsic value of RSUs converted(a) $ 294,065 $ 236,575 $ 173,433
PEPUnits
Total number of PEPUnits granted(a) 355 410
Weighted-average intrinsic value of PEPUnits granted $ 68.48 $ 64.85
Total intrinsic value of PEPUnits converted(a) $ 3,868 —
(a) In thousands.
As of December 28, 2013, there were approximately 290,000 outstanding awards, consisting primarily of
phantom stock units that were granted under the PepsiCo Director Deferral Program and will be settled in
shares of PepsiCo Common Stock pursuant to the LTIP at the end of the applicable deferral period, not
included in the tables above.
As of December 28, 2013, there was $373 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 two years.
Note 7 — Pension, Retiree Medical and Savings Plans
Our pension plans cover certain full-time employees in the U.S. and certain international employees. Benefits
are determined based on either years of service or a combination of years of service and earnings. Certain
U.S. and Canada retirees are also eligible for medical and life insurance benefits (retiree medical) if they
meet age and service requirements. Generally, our share of retiree medical costs is capped at specified dollar
amounts, which vary based upon years of service, with retirees contributing the remainder of the costs.
Gains and losses resulting from actual experience differing from our assumptions, including the difference
between the actual return on plan assets and the expected return on plan assets, and from changes in our
assumptions are determined at each measurement date. If this net accumulated gain or loss exceeds 10% of
the greater of the market-related value of plan assets or plan liabilities, a portion of the net gain or loss is
included in expense for the following year based upon the average remaining service period of active plan
participants, which is approximately 11 years for pension expense and approximately 9 years for retiree
medical expense. The cost or benefit of plan changes that increase or decrease benefits for prior employee
service (prior service cost/(credit)) is included in earnings on a straight-line basis over the average remaining
service period of active plan participants.
In the fourth quarter of 2012, the Company offered certain former employees who had vested benefits in our
defined benefit pension plans the option of receiving a one-time lump sum payment equal to the present
value of the participant’s pension benefit (payable in cash or rolled over into a qualified retirement plan or
IRA). In December 2012, we made a discretionary contribution of $405 million to fund substantially all of
these payments. The Company recorded a pre-tax non-cash settlement charge of $195 million ($131 million