Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2012

Stock-Based Compensation

Stock-Based Compensation Expense

Stock-Based Compensation Expense
	Three months ended				Nine months ended
	September 30,				September 30,
(Millions)	2012		2011		2012		2011
Cost of sales	$	6	$	5	$	23	$	25
Selling, general and administrative expenses	25		28		134		159
Research, development and related expenses	5		5		24		26
Stock-based compensation expenses	$	36	$	38	$	181	$	210
Income tax benefits	$	(12)	$	(12)	$	(56)	$	(68)
Stock-based compensation expenses, net of tax	$	24	$	26	$	125	$	142

Stock Option Activity

The following table summarizes stock option activity during the nine months ended September 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)	106,807		89.52
		Other	1,238		89.45
	Exercised		(10,205,938)		67.33
	Canceled		(363,183)		83.42
	September 30		59,457,529	$	80.01	57	$	739
Options exercisable
	September 30		48,076,370	$	78.47	46	$	671

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	86,773		84.44
		Vested		(2,560,923)		63.61
		Forfeited		(61,966)		82.47
	As of September 30			3,291,378	$	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	451,257		81.33
		Performance change	(183,460)		81.02
		Forfeited	(78,048)		80.20
	As of September 30		1,068,621	$	79.18