Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation

Stock-Based Compensation Expense

	Three months ended						Nine months ended
	September 30,						September 30,
(Millions)	2011			2010			2011			2010
Cost of sales	$	5		$	6		$	25		$	26
Selling, general and administrative expenses	28			45			159			174
Research, development and related expenses	5			6			26			28
Stock-based compensation expenses	$	38		$	57		$	210		$	228
Income tax benefits	$	(12	)	$	(13	)	$	(68	)	$	(68	)
Stock-based compensation expenses, net of tax	$	26		$	44		$	142		$	160

Stock Option Activity

Stock Option Program

					Remaining	Aggregate
	Number of		Exercise		Contractual	Intrinsic Value
	Options		Price*		Life* (months)	(millions)
Under option —
January 1	70,335,044		$	74.80
Granted
Annual	5,514,500		89.46
Progressive (Reload)	234,639		94.21
Other	5,667		90.42
Exercised	(11,408,114	)	68.55
Canceled	(281,801	)	74.24
September 30	64,399,935		$	77.24	57	$	192
Options exercisable
September 30	52,765,533		$	76.81	47	$	152

*Weighted average

Stock Option Assumptions

	Annual
Stock Option Assumptions	2011
Exercise price	$	89.47
Risk-free interest rate	2.8		%
Dividend yield	2.6		%
Expected volatility	22.0		%
Expected life (months)	72
Black-Scholes fair value	$	16.10

Restricted Stock and Restricted Stock Units Activity

Restricted Stock and Restricted Stock Units	Number of Awards		Grant Date Fair Value*
Nonvested balance —
As of January 1	5,573,302		$	70.43
Granted
Annual	889,448		89.46
Performance shares	375,146		83.34
Other	335,164		87.55
Vested	(1,277,111	)	72.33
Forfeited	(106,367	)	71.58
As of September 30	5,789,582		$	74.74

*Weighted average