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Share-based and Deferred Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2019
Compensation Related Costs [Abstract]  
Weighted-average assumptions used in the Black-Scholes option-pricing model
We estimated the fair value of each stock option and SAR award as of the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

 
 
2019
 
2018
 
2017
Risk-free interest rate
 
2.5
%
 
2.5
%
 
1.9
%
Expected term
 
6.5 years

 
6.5 years

 
6.4 years

Expected volatility
 
22.0
%
 
22.0
%
 
22.9
%
Expected dividend yield
 
1.8
%
 
1.8
%
 
1.8
%
Summary of award activity
Stock Options and SARs

 
 
Shares
(in thousands)
 
Weighted-Average Exercise
Price
 
Weighted- Average Remaining Contractual Term (years)
 
Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of the year
 
16,191

 
 
 
$
51.84

 
 
 
 
Granted
 
2,332

 
 
 
93.52

 
 
 
 
Exercised
 
(3,210
)
 
 
 
38.16

 
 
 
 
Forfeited or expired
 
(449
)
 
 
 
75.29

 
 
 
 
Outstanding at the end of the year
 
14,864

(a) 
 
 
60.76

 
5.62

 
$
594

Exercisable at the end of the year
 
9,283

 
 
 
$
49.38

 
4.10

 
$
477



(a)
Outstanding awards include 782 options and 14,082 SARs with weighted average exercise prices of $45.03 and $61.64, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.

 [1]
Impact on net income
The components of share-based compensation expense and the related income tax benefits are shown in the following table:

 
 
2019
 
2018
 
2017
 
Options and SARs
 
$
39

 
$
37

 
$
30

 
Restricted Stock Units
 
12

 
6

 
26

 
Performance Share Units
 
8

 
7

 
9

 
Total Share-based Compensation Expense
 
$
59

 
$
50

(a) 
$
65

(a) 
Deferred Tax Benefit recognized
 
$
9

 
$
9

 
$
22

(b) 
 
 
 
 
 
 
 
 
EID compensation expense not share-based
 
$
17

 
$
(2
)
 
$
12

 

(a)
Includes $3 million of appreciation and $18 million of depreciation in the market price of Yum China's stock in 2018 and 2017, respectively. See Note 4.

(b)    Deferred tax benefit recognized does not reflect the impact of the Tax Act. See Note 17.
[1]
Outstanding awards include 782 options and 14,082 SARs with weighted average exercise prices of $45.03 and $61.64, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.