Stock-based compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Schedule providing assumptions used in determining the fair value of stock-based awards

The following table provides the assumptions used in determining the fair value of the Option awards for the years ended December 31, 2021, 2020 and 2019, respectively.

	Grant Year
	2021		2020		2019
Weighted-average dividend yield	2.6	%	2.5	%	2.6	%
Weighted-average volatility	32.9	%	25.7	%	29.1	%
Range of volatilities	29.2%-45.8%		24.5%-29.7%		25.1%- 38.7%
Range of risk-free interest rates	0.06%-1.41%		1.21%-1.39%		2.48%-2.68%
Weighted-average expected lives	8 years		8 years		7 years

Schedule of stock-based compensation activity

Please refer to Tables I and II below for additional information on our stock-based compensation awards.  

TABLE I — Financial Information Related to Stock-based Compensation
	Stock options			RSUs			PRSUs
	Shares	Weighted-  Average  Exercise  Price		Shares	Weighted- Average Grant Date Fair Value		Shares	Weighted- Average Grant Date Fair Value
Outstanding at January 1, 2021	10,076,983	$	109.60	1,327,950	$	134.89	727,757	$	132.81
Granted to officers and key employees	1,084,821	$	219.76	472,698	$	216.50	285,056	$	215.45
Exercised	(3,399,720)	$	103.45	—	$	—	—	$	—
Vested	—	$	—	(665,357)	$	138.90	(356,618)	$	138.35
Forfeited / expired	(39,664)	$	161.34	(35,110)	$	167.12	(10,822)	$	163.02
Outstanding at December 31, 2021	7,722,420	$	127.52	1,100,181	$	166.50	645,373	$	165.74
Exercisable at December 31, 2021	4,914,111	$	106.36

Stock options outstanding and exercisable as of December 31, 2021:
	Outstanding						Exercisable
Exercise Prices	Shares Outstanding at 12/31/2021	Weighted-  Average  Remaining  Contractual Life (Years)	Weighted-  Average  Exercise Price		Aggregate  Intrinsic Value 1		Shares Outstanding at 12/31/2021	Weighted-  Average  Remaining Contractual Life (Years)	Weighted-  Average  Exercise Price		Aggregate  Intrinsic Value 1
$74.77-$83.00	1,846,000	3.75	$	78.65	$	236	1,846,000	3.75	$	78.65	$	236
$89.75-$96.31	1,225,687	4.01	$	95.20	137		1,225,182	4.01	$	95.20	137
$110.09	39,909	0.17	$	110.09	4		39,909	0.17	$	110.09	4
$127.60-$138.35	2,675,475	7.88	$	131.81	200		936,141	7.68	$	134.01	68
$151.12-$219.76	1,935,349	7.93	$	189.01	34		866,879	6.26	$	151.12	48
	7,722,420		$	127.52	$	611	4,914,111		$	106.36	$	493

1    The difference between a stock award’s exercise price and the underlying stock’s closing market price at December 31, 2021, for awards with market price greater than the exercise price. Amounts are in millions of dollars.

Schedule of financial information related to stock-based compensation

TABLE II— Additional Stock-based Award Information
(Dollars in millions except per share data)	2021		2020		2019
Stock options activity:
Weighted-average fair value per share of stock awards granted	$	56.30	$	25.98	$	40.98
Intrinsic value of stock awards exercised	$	374	$	386	$	264
Fair value of stock awards vested 1	$	59	$	64	$	100
Cash received from stock awards exercised	$	212	$	282	$	298
RSUs activity:
Weighted-average fair value per share of stock awards granted	$	216.50	$	128.07	$	138.61
Fair value of stock awards vested 2	$	136	$	87	$	110
PRSUs activity:
Weighted-average fair value per share of stock awards granted	$	215.45	$	128.41	$	138.67
Fair value of stock awards vested 2	$	74	$	59	$	59

1    Based on the grant date fair value.

2    Based on the underlying stock’s closing market price on the vesting date.