Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation

Stock-Based Compensation Expense

	Three months ended
	March 31,
(Millions)	2012			2011
Cost of sales	$	12		$	14
Selling, general and administrative expenses	78			87
Research, development and related expenses	13			15
Stock-based compensation expenses	$	103		$	116
Income tax benefits	$	(32	)	$	(41	)
Stock-based compensation expenses, net of tax	$	71		$	75

Stock Option Activity

Stock Option Program

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (months)	Aggregate Intrinsic Value (millions)
Under option —
January 1	64,148,415		$	77.28
Granted:
Annual	5,770,190		87.91
Progressive (Reload)	27,555		87.65
Exercised	(2,818,401	)	63.68
Canceled	(54,173	)	82.53
March 31	67,073,586		$	78.77	58	$	704
Options exercisable `
March 31	55,524,130		$	77.18	48	$	700

Stock Option Assumptions

	Annual
Stock Option Assumptions	2012
Exercise price	$	87.89
Risk-free interest rate	1.1		%
Dividend yield	2.6		%
Expected volatility	24.5		%
Expected life (months)	74
Black-Scholes fair value	$	14.94

Restricted Stock and Restricted Stock Units Activity

Restricted Stock and Restricted Stock Units

			Weighted Average
Restricted Stock and	Number of		Grant Date
Restricted Stock Units	Awards		Fair Value
Nonvested balance —
As of January 1	4,858,972		$	73.02
Granted:
Annual	968,522		87.92
Other	15,267		86.92
Vested	(1,763,719	)	57.79
Forfeited	(20,803	)	77.82
As of March 31	4,058,239		$	83.23

Performance Shares Activity

			Weighted Average
	Number of		Grant Date
Performance Shares	Awards		Fair Value
Undistributed balance —
As of January 1	878,872		$	78.55
Granted	412,964		81.00
Performance change	78,166		81.07
Forfeited	(5,815	)	79.03
As of March 31	1,364,187		$	79.43