Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Stock-based compensation expense

Stock-Based Compensation Expense

	Three months ended March 31,
(Millions)	2022		2021
Cost of sales	$	24	$	22
Selling, general and administrative expenses	83		84
Research, development and related expenses	28		25
Stock-based compensation expenses	135		131
Income tax benefits	(37)		(51)
Stock-based compensation expenses (benefits), net of tax	$	98	$	80

Stock option activity

The following table summarizes stock option activity during the three months ended March 31, 2022:

(Options in thousands)	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (months)	Aggregate Intrinsic Value (millions)
Under option —
January 1	34,560	$	163.52
Granted	3,776	162.39
Exercised	(1,111)	95.04
Forfeited	(156)	174.36
March 31	37,069	165.42		65	$	191,760
Options exercisable
March 31	29,505	$	165.47	54	$	191,760

Stock option assumptions

Stock Option Assumptions

	Annual 2022
Exercise price	$	162.41
Risk-free interest rate	1.9		%
Dividend yield	2.9		%
Expected volatility	21.8		%
Expected life (months)	83
Black-Scholes fair value	$	25.34

Restricted stock and restricted stock units activity

The following table summarizes restricted stock and restricted stock unit activity during the three months ended March 31, 2022:

(Shares in thousands)	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested balance —
As of January 1	1,987	$	175.96
Granted	1,024	162.18
Vested	(497)	200.60
Forfeited	(35)	167.51
As of March 31	2,479	165.44

Performance shares activity

The following table summarizes performance share activity during the three months ended March 31, 2022:

(Shares in thousands)	Number of Shares	Weighted Average Grant Date Fair Value
Undistributed balance —
As of January 1	481	$	175.12
Granted	264	144.75
Distributed	(116)	207.49
Performance change	(18)	221.38
Forfeited	(13)	165.21
As of March 31	598	154.30