Share-Based Associate Compensation Plans (Tables)

Below is a summary of option information for the year 2017:



(Dollars in millions, except exercise price. Shares in thousands)	Shares		Weighted- average exercise price		Aggregate intrinsic value		Weighted-average remaining contractual life
Outstanding option shares at January 1, 2017	3,012		$	42.12
Granted	706		70.70
Exercised	(527	)	38.33
Forfeited or expired	(125	)	47.07
Outstanding option shares at December 31, 2017	3,066		49.14		$	79	5.61 years

Options exercisable at end of period	2,072		$	40.69	$	71	4.13 years

Below is a summary of service-based and performance-based share information, assuming a target payout for performance-based shares, for the year 2017:



(Shares in thousands)	Service-based shares		Weighted- average grant date fair value		Performance-based shares		Weighted- average grant date fair value
Nonvested at January 1, 2017	888		$	48.59	236		$	49.64
Granted	292		65.16		57		43.26
Vested	(311	)	43.05		(87	)	36.73
Forfeited or canceled	(26	)	55.59		—		—
Nonvested at December 31, 2017	843		56.16		206		53.35

The following weighted average assumptions were used in determining fair value for option grants issued:



	2017	2016	2015
Weighted-average expected term	8 years	8 years	8-9 years
Expected volatility	16.95%	24.88-25.75%	25.04-26.15%
Dividend yield	2.83%	2.58-3.12%	3.52%
Risk-free rates	2.33%	1.44-1.60%	1.94-2.01%
Weighted-average fair value of options granted during the period	$10.79	$13.21	$11.15

The following assumptions were used in determining fair value for performance-based grants issued:



	2017	2016	2015
Expected term	2.89 years	2.44-2.88 years	2.88 years
Expected volatility	15.75-28.35%	15.42-33.64%	13.78-34.69%
Dividend yield	2.83%	2.58-3.12%	3.52%
Risk-free rates	1.44%	0.77-0.87%	0.99%