Equity-Based Compensation (Tables)

12 Months Ended

Sep. 29, 2018

In fiscal years 2018, 2017 and 2016, 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 2018, 2017 and 2016, was as follows:



	2018			2017			2016
Stock option	$	87		$	90		$	93
RSUs	306			274			293
Total equity-based compensation expense ⁽¹⁾	393			364			386
Tax impact	(99		)	(123		)	(131		)
Reduction in net income	$	294		$	241		$	255
Equity-based compensation expense capitalized during the period	$	70		$	78		$	78
Tax benefit reported in cash flow from financing activities ⁽²⁾	n/a			n/a			$	208


⁽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 2018 and 2017 is not applicable as the Company adopted new accounting guidance in fiscal 2017.

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



	2018
	Shares		Weighted Average Exercise Price
Outstanding at beginning of year	24		$	76.68
Awards forfeited	(1	)	107.69
Awards granted	4		111.48
Awards exercised	(3	)	58.09
Outstanding at end of year	24		$	84.14
Exercisable at end of year	14		$	69.06

The following tables summarize information about stock options vested and expected to vest at September 29, 2018 (shares in millions):



						Vested
Range of Exercise Prices						Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Years of Contractual Life
	$	—	—	$	45	3	$	38.13	2.8
	$	46	—	$	60	3	50.75		4.2
	$	61	—	$	90	3	72.94		5.2
	$	91	—	$	115	5	101.92		7.0
						14



						Expected to Vest
Range of Exercise Prices						Number of Options ⁽¹⁾	Weighted Average Exercise Price		Weighted Average Remaining Years of Contractual Life
	$	90	—	$	105	1	$	93.09	6.5
	$	106	—	$	110	3	105.24		8.3
	$	111	—	$	115	5	112.05		8.6
						9


⁽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):



	2018
	Units		Weighted Average Grant-Date Fair Value
Unvested at beginning of year	9		$	101.17
Granted ⁽¹⁾	5		109.05
Vested	(4	)	113.21
Forfeited	(1	)	107.23
Unvested at end of year ⁽²⁾	9		$	108.74

⁽¹⁾ Includes 1.1 million Performance RSUs.

⁽²⁾ Includes 1.4 million Performance RSUs.

WALT DISNEY CO/ 8-K