The Company uses various equity-based compensation programs to provide long-term performance incentives for its global workforce. Currently, these incentives consist principally of stock options, and to a lesser extent, executive performance shares, restricted stock units and restricted stock grants. The Company also sponsors a discounted stock purchase plan in the United States and matching-grant programs in several international locations. Additionally, the Company awards restricted stock to its outside directors. The interim information below should be read in conjunction with the disclosures included within the stock compensation footnote of the Company's 2013 Annual Report on Form 10-K.

The Company classifies pre-tax stock compensation expense in SGA expense principally within its corporate operations. For the periods presented, compensation expense for all types of equity-based programs and the related income tax benefit recognized were as follows:


		Quarter ended				Year-to-date period ended
(millions)		June 28, 2014		June 29, 2013		June 28, 2014		June 29, 2013
Pre-tax compensation expense	$	14	$	12	$	28	$	21
Related income tax benefit	$	5	$	5	$	10	$	8

As of June 28, 2014, total stock-based compensation cost related to non-vested awards not yet recognized was $67 million and the weighted-average period over which this amount is expected to be recognized was 2 years.

During the year-to-date periods ended June 28, 2014 and June 29, 2013, the Company granted non-qualified stock options to eligible employees as presented in the following activity tables. Terms of these grants and the Company's methods for determining grant-date fair value of the awards were consistent with that described within the stock compensation footnote in the Company's 2013 Annual Report on Form 10-K.

Year-to-date period ended June 28, 2014:
				Weighted-
			Weighted-	average		Aggregate
			average	remaining		intrinsic
	Shares		exercise	contractual		value
Employee and director stock options	(millions)		price	term (yrs.)		(millions)
Outstanding, beginning of period	20	$	54
Granted	6		60
Exercised	(2)		50
Forfeitures and expirations	(1)		57
Outstanding, end of period	23	$	55	7.5	$	209
Exercisable, end of period	11	$	52	6.0	$	145

Year-to-date period ended June 29, 2013:
				Weighted-
			Weighted-	average		Aggregate
			average	remaining		intrinsic
	Shares		exercise	contractual		value
Employee and director stock options	(millions)		price	term (yrs.)		(millions)
Outstanding, beginning of period	25	$	50
Granted	6		60
Exercised	(9)		48
Forfeitures and expirations	(1)		54
Outstanding, end of period	21	$	53	7.4	$	231
Exercisable, end of period	10	$	50	5.8	$	150

The weighted-average fair value of options granted was $6.70 per share and $5.92 per share for the year-to-date periods ended June 28, 2014 and June 29, 2013, respectively. The fair value was estimated using the following assumptions:

	Weighted-average expected volatility	Weighted-average expected term (years)	Weighted-average risk-free interest rate	Dividend yield
Grants within the year-to-date period ended June 28, 2014:	15%	7.34	2.35%	3.00%
Grants within the year-to-date period ended June 29, 2013:	15%	7.44	1.49%	2.90%

The total intrinsic value of options exercised was $33 million and $117 million for the year-to-date periods ended June 28, 2014 and June 29, 2013, respectively.

In the first quarter of 2014, the Company granted performance shares to a limited number of senior executive-level employees, which entitle these employees to receive a specified number of shares of the Company's common stock on the vesting date, provided cumulative three-year operating profit and internal net sales growth targets are achieved.

The 2014 target grant currently corresponds to approximately 227,000 shares, with a grant-date fair value of $54 per share. The actual number of shares issued on the vesting date could range from 0 to 200% of target, depending on actual performance achieved. Based on the market price of the Company's common stock at June 28, 2014, the maximum future value that could be awarded to employees on the vesting date for all outstanding performance share awards was as follows:

(millions)		June 28, 2014
2012 Award	$	23
2013 Award	$	26
2014 Award	$	30

The 2011 performance share award, payable in stock, was settled at 60% of target in February 2014 for a total dollar
equivalent of $3 million.