EMPLOYEE STOCK BENEFIT PLANS Employee Stock Benefit Plans (Notes)

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement, Disclosure [Abstract]

Share-based Payment Arrangement [Text Block]

EMPLOYEE STOCK BENEFIT PLANS

Stock-based compensation expense was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
Dollars in Millions	2020		2019		2020		2019
Cost of products sold	$	9	$	3	$	19	$	7
Marketing, selling and administrative	86		28		174		58
Research and development	89		17		183		36
Other (income)/expense, net	29		—		47		—
Total stock-based compensation expense	$	213	$	48	$	423	$	101
Income tax benefit(a)	$	40	$	9	$	86	$	19

(a) Income tax benefit excludes excess tax benefits from share-based compensation awards that were vested or exercised of $5 million and $28 million for the three and six months ended June 30, 2020 and was not material for the three and six months ended June 30, 2019.

The total stock-based compensation expense for the three and six months ended June 30, 2020 includes $98 million and $221 million, respectively, related to the Celgene post-combination service period for the replacement awards and $29 million and $47 million, respectively, of accelerated vesting of the replacement awards related to the Celgene acquisition. It also includes $9 million related to CVR obligation on unvested stock awards for the six months ended June 30, 2020.

The number of units granted and the weighted-average fair value on the grant date for the six months ended June 30, 2020 were as follows:

Units in Millions	Units	Weighted-Average Fair Value
Restricted stock units	12.8	$	53.60
Market share units	0.9	53.92
Performance share units	1.4	55.61

Dollars in Millions	Stock Options		Restricted Stock Units		Market Share Units		Performance Share Units
Unrecognized compensation cost	$	70	$	1,182	$	65	$	111
Expected weighted-average period in years of compensation cost to be recognized	1.7		2.7		3.1		2.0