Stock Compensation

3 Months Ended

Mar. 31, 2012

Stock Compensation [Abstract]

Stock Compensation [Text Block]

Note 6 Stock compensation

The Company uses various equity-based compensation programs to provide long-term performance incentives for its global workforce. Currently, these incentives consist principally of stock options, and to a lesser extent, executive performance shares and restricted stock grants. Additionally, the Company awards restricted stock to its non-employee directors. The interim information below should be read in conjunction with the disclosures included within the stock compensation footnote of the Company's 2011 Annual Report on Form 10-K.

The Company classifies pre-tax stock compensation expense in SGA expense principally within its corporate operations. For the periods presented, compensation expense for all types of equity-based programs and the related income tax benefit recognized were as follows:

		Quarter ended
(millions)		March 31, 2012		April 2, 2011
Pre-tax compensation expense	$	12	$	10
Related income tax benefit	$	4	$	4

As of March 31, 2012, total stock-based compensation cost related to non-vested awards not yet recognized was $74 million and the weighted-average period over which this amount is expected to be recognized was 2 years.

Stock options

During the year-to-date periods ended March 31, 2012 and April 2, 2011, the Company granted non-qualified stock options to eligible employees as presented in the following activity tables. Terms of these grants and the Company's methods for determining grant-date fair value of the awards were consistent with that described within the stock compensation footnote in the Company's 2011 Annual Report on Form 10-K.

Year-to-date period ended March 31, 2012:
				Weighted-
			Weighted-	average		Aggregate
			average	remaining		intrinsic
	Shares		exercise	contractual		value
Employee and director stock options	(millions)		price	term (yrs.)		(millions)
Outstanding, beginning of period	24	$	48
Granted	6		53
Exercised	(1)		42
Forfeitures and expirations	(1)		53
Outstanding, end of period	28	$	49	6.9	$	123
Exercisable, end of period	18	$	47	5.5	$	115

Year-to-date period ended April 2, 2011:
				Weighted-
			Weighted-	average		Aggregate
			average	remaining		intrinsic
	Shares		exercise	contractual		value
Employee and director stock options	(millions)		price	term (yrs.)		(millions)
Outstanding, beginning of period	26	$	47
Granted	5		53
Exercised	(3)		44
Forfeitures and expirations	-		-
Outstanding, end of period	28	$	48	6.8	$	166
Exercisable, end of period	20	$	46	5.7	$	144

The weighted-average fair value of options granted was $5.23 per share for the quarter ended March 31, 2012 and $7.59 per share for thequarter ended April 2, 2011. The fair value was estimated using the following assumptions:

	Weighted-average expected volatility	Weighted-average expected term (years)	Weighted-average risk-free interest rate	Dividend yield
Grants within the year-to-date
period ended March 31, 2012:	16%	7.53	1.60%	3.30%
Grants within the year-to-date
period ended April 2, 2011:	17%	6.98	3.07%	3.10%

The total intrinsic value of options exercised was $8 million for the quarter ended March 31, 2012 and $20 million for the quarter ended April 2, 2011.

Performance shares

In the first quarter of 2012, the Company granted performance shares to a limited number of senior executive-level employees, which entitle these employees to receive a specified number of shares of the Company's common stock on the vesting date, provided cumulative three-year operating profit and internal net sales growth targets are achieved.

The 2012 target grant currently corresponds to approximately 251,000 shares, with a grant-date fair value of $47 per share. The actual number of shares issued on the vesting date could range from 0 to 200% of target, depending on actual performance achieved. Based on the market price of the Company's common stock at March 31, 2012, the maximum future value that could be awarded to employees on the vesting date for all outstanding performance share awards was as follows:

(millions)		March 31, 2012
2010 Award	$	21
2011 Award	$	24
2012 Award	$	27
The 2009 performance share award, payable in stock, was settled at 82% of target in February 2012 for a total dollar
equivalent of $7 million.