Equity-Based Compensation (Tables)

12 Months Ended

Sep. 28, 2013

The following table summarizes contractual terms for our stock option grants:

The following table summarizes vesting terms for our RSUs:



Grant dates		Vesting Terms
RSUs:
Prior to January 2009		50% on each of the second and fourth anniversaries of the grant date

Effective January 2009		Ratably over four years

Performance RSUs:
Prior to January 2010		50% on each of the second and fourth anniversaries of the grant date subject to achieving market and/or performance conditions

Effective January 2010		Fully after three years, subject to achieving market and/or performance conditions

In fiscal years 2013, 2012 and 2011, the weighted average assumptions used in the option-valuation model were as follows:

The impact of stock options/rights and RSUs on income and cash flows for fiscal years 2013, 2012 and 2011, was as follows:



	2013			2012			2011
Stock option/rights compensation expense ⁽¹⁾	$	101		$	115		$	133
RSU compensation expense	311			310			300
Total equity-based compensation expense ⁽²⁾	412			425			433
Tax impact	(139		)	(145		)	(151		)
Reduction in net income	$	273		$	280		$	282
Equity-based compensation expense capitalized during the period	$	58		$	56		$	66
Tax benefit reported in cash flow from financing activities	$	204		$	122		$	124


⁽¹⁾	Includes stock appreciation rights.


⁽²⁾	Equity-based compensation expense is net of capitalized equity-based compensation and excludes amortization of previously capitalized equity-based compensation costs. Amortization of previously capitalized equity-based compensation totaled $65 million, $59 million and $57 million in fiscal years 2013, 2012 and 2011, respectively.

The following table summarizes information about stock option transactions (shares in millions):



	2013
	Shares		Weighted Average Exercise Price
Outstanding at beginning of year	54		$	32.02
Awards forfeited	(1	)	39.62
Awards granted	8		51.37
Awards exercised	(20	)	29.57
Awards expired/cancelled	—		—
Outstanding at end of year	41		37.06
Exercisable at end of year	18		30.03

The following tables summarize information about stock options vested and expected to vest at September 28, 2013 (shares in millions):



	Vested
Range of Exercise Prices	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Years of Contractual Life
$ 0 — $ 20	1	$	18.90	1.8
$ 21 — $ 25	3	21.70		1.9
$ 26 — $ 30	6	28.84		1.7
$ 31 — $ 35	5	32.38		3.6
$ 36 — $ 45	3	39.60		7.7
	18



	Expected to Vest
Range of Exercise Prices	Number of Options ⁽¹⁾	Weighted Average Exercise Price		Weighted Average Remaining Years of Contractual Life
$ 0 — $ 30	1	$	27.84	2.5
$ 31 — $ 35	2	31.19		6.3
$ 36 — $ 45	10	39.11		7.9
$ 46 — $ 65	7	51.17		9.3
	20


⁽¹⁾	Number of options expected to vest is total unvested options less estimated forfeitures.

The following table summarizes information about RSU transactions (shares in millions):



	2013
	Units		Weighted Average Grant-Date Fair Value
Unvested at beginning of year	27		$	35.49
Granted ⁽¹⁾	7		50.92
Vested	(12	)	31.73
Forfeited	(1	)	36.65
Unvested at end of year ⁽²⁾	21		42.28

⁽¹⁾ RSU grants include 0.4 million shares of Performance RSUs.

⁽²⁾ 1.3 million of the unvested RSUs are Performance RSUs.