Stock Plans (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Stock Option and RSA Activity

A summary of stock option and RSA activity as of December 31, 2012, and changes during the year is presented below:

			Stock Options			RSAs
(Shares in thousands)			Shares	Weighted-Average Exercise Price		Shares	Weighted- Average Grant Price
Outstanding as of
	December 31, 2011		42,457	$	41.63	13,996	$	33.69
Granted			1,205	$	49.23	4,270	$	49.80
Exercised/vested			(10,429)	$	35.28	(5,782)	$	31.53
Forfeited			(280)	$	34.55	(684)	$	37.84
Expired			(1,092)	$	54.05	―	$	―
Outstanding as of
	December 31, 2012		31,861	$	43.62	11,800	$	40.31
Options vested and
	expected to vest as of
		December 31, 2012	31,792	$	43.61	―		―
Options exercisable as of
	December 31, 2012		27,309	$	44.91	―		―

Weighted-average remaining contractual life and aggregate intrinsic value of the Company's stock options outstanding, exerciseable, and vested and expected to vest

The weighted-average remaining contractual life and the aggregate intrinsic value (the amount by which the fair value of the Company's stock exceeds the exercise price of the option) of the stock options outstanding, exercisable, and vested and expected to vest as of December 31, 2012 are as follows:

		Outstanding		Exercisable		Vested and Expected to Vest
Weighted-average remaining
	contractual life (in years)		4.6		4.1		4.6
Aggregate intrinsic value (millions)		$	444	$	346	$	443

Weighted Average Assumptions Used

The fair value of each option is estimated on the date of grant using a Black-Scholes-Merton option-pricing model. The following weighted-average assumptions were used for grants issued in 2012, 2011 and 2010, the majority of which were granted in the beginning of each year:

	2012			2011			2010
Dividend yield		1.5	%		1.6	%		1.8	%
Expected volatility^(a)		41	%		40	%		41	%
Risk-free interest rate		1.3	%		2.3	%		2.8	%
Expected life of stock option (in years)^(b)		6.3			6.2			6.2
Weighted-average fair value per option	$	17.48		$	16.21		$	14.11

The expected volatility is based on both weighted historical and implied volatilities of the Company's common stock price.
In 2012, 2011 and 2010, the expected life of stock options was determined using both historical data and expectations of option exercise behavior.

Summary of Stock Plan Expenses

The components of the Company's total stock-based compensation expense (net of forfeitures) for the years ended December 31 are as follows:

(Millions)		2012		2011		2010
Restricted stock awards^(a)		$	197	$	176	$	163
Stock options^(a)			29		40		58
Liability-based awards			70		83		64
Performance/market-based
	stock options		1		2		2
Total stock-based
	compensation expense^(b)	$	297	$	301	$	287

As of December 31, 2012, the total unrecognized compensation cost related to unvested RSAs and options of $237 million and $27 million, respectively, will be recognized ratably over the weighted-average remaining vesting period of 1.6 years and 1.4 years, respectively.
The total income tax benefit recognized in the Consolidated Statements of Income for stock-based compensation arrangements for the years ended December 31, 2012, 2011 and 2010 was $107 million, $105 million and $100 million, respectively.