Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2012

Stock-Based Compensation Activity

Stock-Based Compensation Expense

Stock-Based Compensation Expense
	Three months ended				Six months ended
	June 30,				June 30,
(Millions)	2012		2011		2012		2011
Cost of sales	$	5	$	6	$	17	$	20
Selling, general and administrative expenses	31		44		109		131
Research, development and related expenses	6		6		19		21
Stock-based compensation expenses	$	42	$	56	$	145	$	172
Income tax benefits	$	(12)	$	(15)	$	(44)	$	(56)
Stock-based compensation expenses, net of tax	$	30	$	41	$	101	$	116

Stock Option Activity

The following table summarizes stock option activity during the six months ended June 30, 2012:
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)	74,211		88.16
		Other	653		89.60
	Exercised		(6,449,565)		65.08
	Canceled		(299,879)		82.65
	June 30		63,244,025	$	79.48	58	$	641
Options exercisable
	June 30		51,829,163	$	77.94	47	$	605

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	81,016		84.04
		Vested		(2,553,435)		63.54
		Forfeited		(49,791)		81.49
	As of June 30			3,305,284	$	84.85

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	441,055		81.20
		Performance change	(32,847)		81.10
		Forfeited	(63,535)		80.04
	As of June 30		1,223,545	$	79.36