Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation

Stock-Based Compensation Expense

	Years ended December 31
(Millions)	2011			2010			2009
Cost of sales	$	29		$	31		$	38
Selling, general and administrative expenses	192			209			144
Research, development and related expenses	32			34			35
Stock-based compensation expenses	$	253		$	274		$	217
Income tax benefits	$	(80	)	$	(98	)	$	(62	)
Stock-based compensation expenses, net of tax	$	173		$	176		$	155

Stock Option Activity

	2011				2010				2009
	Number of		Exercise		Number of		Exercise		Number of		Exercise
	Options		Price*		Options		Price*		Options		Price*
Under option — January 1	70,335,044		$	74.80	74,268,165		$	72.39	75,452,722		$	71.96
Granted:
Annual	5,514,500		89.46		5,788,313		78.79		6,649,672		53.93
Progressive (Reload)	237,839		94.02		188,105		88.67		68,189		77.37
Other	8,953		86.71		27,911		82.13		4,654		50.85
Exercised	(11,625,863	)	68.47		(9,678,654	)	59.11		(6,930,544	)	49.83
Canceled	(322,058	)	75.09		(258,796	)	70.76		(976,528	)	73.50
December 31	64,148,415		$	77.28	70,335,044		$	74.80	74,268,165		$	72.39
Options exercisable December 31	52,644,364		$	76.90	58,201,617		$	75.87	62,414,398		$	73.73

*Weighted average

Stock Option Assumptions

	Annual									Progressive (Reload)
	2011			2010			2009			2011			2010			2009
Exercise price	$	89.47		$	78.72		$	54.11		$	93.94		$	86.72		$	77.83
Risk-free interest rate	2.8		%	2.8		%	2.2		%	0.4		%	0.6		%	1.4		%
Dividend yield	2.6		%	2.5		%	2.3		%	2.6		%	2.5		%	2.0		%
Volatility	22.0		%	25.7		%	30.3		%	21.5		%	33.2		%	30.7		%
Expected life (months)	72			72			71			15			17			32
Black-Scholes fair value	$	16.10		$	16.50		$	13.00		$	7.49		$	12.01		$	14.47

Restricted Stock and Restricted Stock Units Activity

	2011				2010				2009
	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	4,812,657		$	68.75	4,379,480		$	68.85	2,957,538		$	77.41
Granted:
Annual	889,448		89.46		902,549		78.81		1,150,819		53.89
Other	351,624		87.07		527,823		70.09		522,581		54.82
Vested	(1,077,816	)	72.21		(948,233	)	79.12		(157,104	)	73.26
Forfeited	(116,941	)	72.01		(48,962	)	76.22		(94,354	)	69.57
As of December 31	4,858,972		$	73.02	4,812,657		$	68.75	4,379,480		$	68.85

*Weighted average

Performance Shares Activity

	2011				2010
	Number of		Grant Date		Number of		Grant Date
	Awards		Fair Value*		Awards		Fair Value*
Undistributed balance — As of January 1	760,645		$	73.99	—		$	—
Granted	415,024		84.58		370,575		74.46
Distributed	(206,410	)	72.77		—		—
Performance change	(39,323	)	82.10		396,390		73.55
Forfeited	(51,064	)	80.20		(6,320	)	73.92
As of December 31	878,872		$	78.55	760,645		$	73.99

*Weighted average

General Employees' Stock Purchase Plan (GESPP)

	2011				2010				2009
			Exercise				Exercise				Exercise
	Shares		Price*		Shares		Price*		Shares		Price*
Options granted	1,433,609		$	73.67	1,325,579		$	70.57	1,655,936		$	50.58
Options exercised	(1,433,609	)	73.67		(1,325,579	)	70.57		(1,655,936	)	50.58
Shares available forgrant — December 31	2,900,751				4,334,360				5,659,939

*Weighted average