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 and restricted stock grants. Additionally, the Company awards restricted stock to its non-employee directors. The interim information below should be read in conjunction with the disclosures included on pages 41 to 44 of the Company's 2010 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)		October 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010
Pre-tax compensation expense	$	8	$	1	$	30	$	24
Related income tax benefit	$	3	$	-	$	11	$	8

As of October 1, 2011, total stock-based compensation cost related to non-vested awards not yet recognized was $53 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 October 1, 2011 and October 2, 2010, 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 on pages 42 and 43 of the Company's 2010 Annual Report on Form 10-K.

Year-to-date period ended October 1, 2011:
				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	26	$	47
Granted	5		53
Exercised	(6)		45
Forfeitures and expirations	(1)		52
Outstanding, end of period	24	$	48	6.5	$	121
Exercisable, end of period	16	$	46	5.2	$	108

Year-to-date period ended October 2, 2010:
				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	26	$	45
Granted	4		53
Exercised	(4)		44
Forfeitures and expirations	-		-
Outstanding, end of period	26	$	46	6.5	$	129
Exercisable, end of period	20	$	46	5.7	$	104

The weighted-average fair value of options granted was $7.59 per share for the year-to-date period ended October 1, 2011 and $7.90 per share for the year-to-date period ended October 2, 2010. 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 October 1, 2011:	17%	6.98	3.07%	3.10%
Grants within the year-to-date
period ended October 2, 2010:	20%	4.94	2.54%	2.80%

The total intrinsic value of options exercised was $59 million for the year-to-date period ended October 1, 2011 and $40 million for the year-to-date period ended October 2, 2010.

In the first quarter of 2011, 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 2011 target grant currently corresponds to approximately 225,000 shares, with a grant-date fair value of $48 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 October 1, 2011, the maximum future value that could be awarded to employees on the vesting date for all outstanding performance share awards was as follows:

(millions)		October 1, 2011
2009 Award	$	18
2010 Award	$	21
2011 Award	$	24

The 2008 performance share award, payable in stock, was settled at 69% of target in February 2011 for a total dollar
equivalent of $6 million.