Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2010

Stock-Based Compensation

Stock-Based Compensation Expense

	Years ended December 31
(Millions)	2010		2009		2008
Cost of sales	$	31	$	38	$	43
Selling, general and administrative expenses	209		144		122
Research, development and related expenses	34		35		37
Stock-based compensation expenses	$	274	$	217	$	202
Income tax benefits	$	(98)	$	(62)	$	(71)
Stock-based compensation expenses, net of tax	$	176	$	155	$	131

Stock Option Activity

	2010				2009				2008
	Number of		Exercise		Number of		Exercise		Number of		Exercise
	Options		Price*		Options		Price*		Options		Price*
Under option —
January 1	74,268,165		$	72.39	75,452,722		$	71.96	74,613,051		$	70.50
Granted:
Annual	5,788,313		78.79		6,649,672		53.93		5,239,660		77.22
Progressive (Reload)	188,105		88.67		68,189		77.37		78,371		79.53
Other	27,911		82.13		4,654		50.85		20,389		79.25
Exercised	(9,678,654	)	59.11		(6,930,544	)	49.83		(3,797,663	)	49.38
Canceled	(258,796	)	70.76		(976,528	)	73.50		(701,086	)	79.12
December 31	70,335,044		$	74.80	74,268,165		$	72.39	75,452,722		$	71.96
Options exercisable December 31	58,201,617		$	75.87	62,414,398		$	73.73	63,282,408		$	70.01

* Weighted average

Stock Option Assumptions

	Annual									Progressive (Reload)
	2010			2009			2008			2010			2009			2008
Exercise price	$	78.72		$	54.11		$	77.22		$	86.72		$	77.83		$	79.76
Risk-free interest rate	2.8		%	2.2		%	3.1		%	0.6		%	1.4		%	4.3		%
Dividend yield	2.5		%	2.3		%	2.0		%	2.5		%	2.0		%	2.0		%
Volatility	25.7		%	30.3		%	21.7		%	33.2		%	30.7		%	18.7		%
Expected life (months)	72			71			70			17			32			25
Black-Scholes fair value	$	16.50		$	13.00		$	15.28		$	12.01		$	14.47		$	12.00

Restricted Stock and Restricted Stock Units Activity

	2010				2009				2008
	Number of		Grant Date		Number of		Grant Date		Number of		Grant Date
	Awards		Fair Value*		Awards		Fair Value*		Awards		Fair Value*
Nonvested balance —
As of January 1	4,379,480		$	68.85	2,957,538		$	77.41	2,001,581		$	77.63
Granted:
Annual	902,549		78.81		1,150,819		53.89		924,120		77.23
Performance shares	760,645		73.99		—		—		—		—
Other	527,823		79.56		522,581		54.82		188,473		73.16
Vested	(948,233	)	79.12		(157,104	)	73.26		(64,806	)	68.72
Forfeited	(48,962	)	69.57		(94,354	)	69.57		(91,830	)	77.76
As of December 31	5,573,302		$	70.43	4,379,480		$	68.85	2,957,538		$	77.41

* Weighted average

General Employees' Stock Purchase Plan (GESPP)

	2010				2009				2008
			Exercise				Exercise				Exercise
	Shares		Price*		Shares		Price*		Shares		Price*
Options granted	1,325,579		$	70.57	1,655,936		$	50.58	1,624,775		$	62.68
Options exercised	(1,325,579	)	70.57		(1,655,936	)	50.58		(1,624,775	)	62.68
Shares available forgrant — December 31	4,334,360				5,659,939				7,315,875

* Weighted average