Real World Case 195 Share-based plans; Walmart Real World Financials Walmart offers its employees a variety of share-based compensation plans including stock options, performance share awards, restricted stock, and restricted stock units. The following is an excerpt from a disclosure note from Walmarts 2015 financial statements: Share-Based Compensation The Company has awarded share-based compensation to associates and nonemployee directors of the Company. The compensation expense recognized for all plans was $448 million, $462 million and $388 million for fiscal 2016, 2015 and 2014, respectively. Share-based compensation expense is included in operating, selling, general and administrative expenses in the Companys Consolidated Statements of Income. The total income tax benefit recognized for share-based compensation was $151 million, $173 million and $145 million for fiscal 2016, 2015 and 2014, respectively. The following table summarizes the Companys share-based compensation expense by award type: Fiscal Years Ended January 31, ($ in millions) 2016 2015 2014 Restricted stock and performance share units $ 134 $ 157 $ 141 Restricted stock units 292 277 224 Other 22 28 23 Share-based compensation expense $ 448 $ 462 $ 388 Required: 1. Walmarts share-based compensation includes stock options, restricted stock units, restricted stock awards, and performance-based awards. What is the general financial reporting objective when recording compensation expense for these forms of compensation? 2. Walmart reported share-based expense of $448 million in 2015. Without referring to specific numbers and ignoring other forms of share-based compensation, describe how this amount reflects the value of stock options.