Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of stock-based compensation expense

Stock-Based Compensation Expense

	Three months ended September 30,				Nine months ended September 30,
(Millions)	2022		2021		2022		2021
Cost of sales	$	8	$	8	$	41	$	39
Selling, general and administrative expenses	31		30		145		151
Research, development and related expenses	5		5		40		37
Stock-based compensation expenses	44		43		226		227
Income tax benefits	(10)		(13)		(56)		(89)
Stock-based compensation expenses (benefits), net of tax	$	34	$	30	$	170	$	138

Schedule of stock option activity

The following table summarizes stock option activity during the nine months ended September 30, 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	(1,722)	98.27
Forfeited	(537)	178.08
September 30	36,077	166.30		60	$	17
Options exercisable
September 30	28,670	$	166.58	49	$	17

Schedule of 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

Schedule of restricted stock and restricted stock units activity

The following table summarizes restricted stock and restricted stock unit activity during the nine months ended September 30, 2022:

(Shares in thousands)	Number of Shares	Weighted Average Grant Date Fair Value
Nonvested balance —
As of January 1	1,987	$	175.96
Granted	1,082	160.98
Vested	(530)	199.03
Forfeited	(101)	167.18
As of September 30	2,438	164.67

Schedule of performance shares activity

The following table summarizes performance share activity during the nine months ended September 30, 2022:

(Shares in thousands)	Number of Shares	Weighted Average Grant Date Fair Value
Undistributed balance —
As of January 1	481	$	175.12
Granted	269	144.77
Distributed	(116)	207.49
Performance change	(166)	153.04
Forfeited	(37)	156.76
As of September 30	431	157.54