Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2013

Stock-Based Compensation

Stock-Based Compensation Expense

Stock-Based Compensation Expense
	Three months ended
	March 31,
(Millions)	2013		2012
Cost of sales	$	12	$	12
Selling, general and administrative expenses		77		78
Research, development and related expenses		14		13
Stock-based compensation expenses	$	103	$	103
Income tax benefits	$	(32)	$	(32)
Stock-based compensation expenses, net of tax	$	71	$	71

Stock Option Activity

The following table summarizes stock option activity during the three months ended March 31, 2013:
Stock Option Program
			Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (months)	Aggregate Intrinsic Value (millions)
Under option —
	January 1		56,565,030	$	80.33
	Granted:
		Annual	6,220,810		101.55
		Progressive (Reload)	91,690		102.45
	Exercised		(9,059,296)		77.46
	Canceled		(40,064)		87.37
	March 31		53,778,170	$	83.29	64	$	1,238
Options exercisable
	March 31		41,708,894	$	79.83	51	$	1,105

Stock Option Assumptions

	Annual
Stock Option Assumptions	2013
Exercise price	$	101.49
Risk-free interest rate		1.2	%
Dividend yield		2.7	%
Expected volatility		20.0	%
Expected life (months)		75
Black-Scholes fair value	$	13.46

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			3,261,562	$	85.17
		Granted:
			Annual	946,774		101.57
			Other	4,553		103.95
		Vested		(1,020,901)		79.74
		Forfeited		(10,315)		89.85
	As of March 31			3,181,673	$	91.81

Performance Shares Activity

				Weighted Average
			Number of	Grant Date
Performance Shares			Awards	Fair Value
Undistributed balance —
	As of January 1		1,089,084	$	79.27
		Granted	335,031		95.79
		Distributed	(506,725)		75.16
		Performance change	(50,908)		85.54
		Forfeited	(11,276)		91.27
	As of March 31		855,206	$	87.65