Pepsi 2015 Annual Report Download - page 116

Download and view the complete annual report

Please find page 116 of the 2015 Pepsi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 168

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168

Table of Contents
99
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 reflects movements 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 share-based compensation activity for the year ended December 26, 2015 is as follows:
Our Stock Option Activity
Options(a)
Weighted-
Average
Exercise
Price
Weighted-
Average
Contractual
Life
Remaining
(years)
Aggregate
Intrinsic
Value(b)
Outstanding at December 27, 2014 38,857 $ 64.06
Granted 1,884 $ 98.19
Exercised (8,483) $ 59.51
Forfeited/expired (786) $ 77.73
Outstanding at December 26, 2015 31,472 $ 66.98 4.38 $ 1,056,138
Exercisable at December 26, 2015 24,609 $ 62.20 3.34 $ 943,605
Expected to vest as of December 26, 2015 6,365 $ 83.60 8.07 $ 107,845
(a) Options are in thousands and include options previously granted under the PBG plan. No additional options or shares were granted under
the PBG plan after 2009.
(b) In thousands.
Our RSU and PSU Activity
RSUs/PSUs(a)
Weighted-
Average
Grant-Date
Fair Value
Weighted-
Average
Contractual
Life
Remaining
(years)
Aggregate
Intrinsic
Value(a)
Outstanding at December 27, 2014 11,228 $ 74.49
Granted (b) 2,759 $ 99.17
Converted (3,920) $ 67.91
Forfeited (1,000) $ 82.10
Actual performance change (c) 41 $ 89.34
Outstanding at December 26, 2015 (d) 9,108 $ 84.03 1.29 $ 915,727
Expected to vest as of December 26, 2015 8,389 $ 83.52 1.21 $ 843,472
(a) In thousands.
(b) Grant activity for all PSUs are disclosed at target.
(c) Reflects the net number of PSUs above and below target levels based on actual performance measured at the end of the performance period.
(d) The outstanding PSUs for which the performance period has not ended as of December 26, 2015, at the threshold, target and maximum
award levels were zero, 0.5 million and 0.7 million, respectively.