Equity-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2017

In fiscal years 2017, 2016 and 2015, the weighted average assumptions used in the option-valuation model were as follows:

The impact of stock options and RSUs on income and cash flows for fiscal years 2017, 2016 and 2015, was as follows:



	2017			2016			2015
Stock option	$	90		$	93		$	102
RSUs	274			293			309
Total equity-based compensation expense ⁽¹⁾	364			386			411
Tax impact	(123		)	(131		)	(134		)
Reduction in net income	$	241		$	255		$	277
Equity-based compensation expense capitalized during the period	$	78		$	78		$	57
Tax benefit reported in cash flow from financing activities ⁽²⁾	n/a			$	208		$	313


⁽¹⁾	Equity-based compensation expense is net of capitalized equity-based compensation and estimated forfeitures and excludes amortization of previously capitalized equity-based compensation costs.


⁽²⁾	The amount for fiscal 2017 is not applicable as the Company adopted new accounting guidance in fiscal 2017 (see Note 18).

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



	2017
	Shares		Weighted Average Exercise Price
Outstanding at beginning of year	25		$	66.91
Awards forfeited	(1	)	99.40
Awards granted	5		105.20
Awards exercised	(5	)	52.58
Outstanding at end of year	24		$	76.68
Exercisable at end of year	14		$	58.62

The following tables summarize information about stock options vested and expected to vest at September 30, 2017 (shares in millions):



						Vested
Range of Exercise Prices						Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Years of Contractual Life
	$	—	—	$	35	1	$	30.15	2.3
	$	36	—	$	45	4	39.10		3.9
	$	46	—	$	90	6	59.42		5.6
	$	91	—	$	115	3	99.59		7.6
						14



						Expected to Vest
Range of Exercise Prices						Number of Options ⁽¹⁾	Weighted Average Exercise Price		Weighted Average Remaining Years of Contractual Life
	$	—	—	$	75	1	$	72.56	6.2
	$	76	—	$	95	2	92.12		7.3
	$	96	—	$	115	7	107.98		8.9
						10


⁽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):



	2017
	Units		Weighted Average Grant-Date Fair Value
Unvested at beginning of year	10		$	88.84
Granted ⁽¹⁾	4		105.66
Vested	(4	)	77.15
Forfeited	(1	)	97.85
Unvested at end of year ⁽²⁾	9		$	101.17

⁽¹⁾ Includes 0.2 million Performance RSUs.

⁽²⁾ Includes 0.6 million Performance RSUs.