Share-based and Deferred Compensation Plans (Tables)

12 Months Ended

Dec. 27, 2014

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:



	2014		2013		2012
Risk-free interest rate	1.6	%	0.8	%	0.8	%
Expected term (years)	6.2		6.2		6.0
Expected volatility	29.7	%	29.9	%	29.0	%
Expected dividend yield	2.1	%	2.1	%	1.8	%

Summary of award activity

Stock Options and SARs



	Shares (in thousands)			Weighted-Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of the year	27,713			$	41.77
Granted	3,619			70.85
Exercised	(3,549	)		30.35
Forfeited or expired	(611	)		61.48
Outstanding at the end of the year	27,172		^(a)	$	46.68	5.54	$	703
Exercisable at the end of the year	17,671			$	37.62	4.25	$	628


(a)	Outstanding awards include 1,968 options and 25,204 SARs with weighted average exercise prices of $43.71 and $46.91, respectively.

Impact on net income

The components of share-based compensation expense and the related income tax benefits are shown in the following table:



	2014		2013			2012
Options and SARs	$	48	$	44		$	42
Restricted Stock Units	6		6			5
Performance Share Units	1		(1		)	3
Total Share-based Compensation Expense	$	55	$	49		$	50
Deferred Tax Benefit recognized	$	17	$	15		$	15

EID compensation expense not share-based	$	8	$	11		$	5