Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2013

Stock-Based Compensation

Stock-Based Compensation Expense

Stock-Based Compensation Expense
	Three months ended				Six months ended
	June 30,				June 30,
(Millions)	2013		2012		2013		2012
Cost of sales	$	6	$	5	$	18	$	17
Selling, general and administrative expenses	36		31		113		109
Research, development and related expenses	5		6		19		19
Stock-based compensation expenses	$	47	$	42	$	150	$	145
Income tax benefits	$	(13)	$	(12)	$	(45)	$	(44)
Stock-based compensation expenses, net of tax	$	34	$	30	$	105	$	101

Stock Option Activity

The following table summarizes stock option activity during the six months ended June 30, 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)	95,112		102.64
	Exercised		(13,301,442)		78.13
	Canceled		(95,918)		85.77
	June 30		49,483,592	$	83.61	64	$	1,236
Options exercisable
	June 30		37,461,732	$	79.87	50	$	1,076

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 Units and Restricted Stock Activity

Restricted Stock Units and Restricted Stock
					Weighted Average
Restricted Stock Units and				Number of	Grant Date
Restricted Stock				Awards	Fair Value
Nonvested balance —
	As of January 1			3,261,562	$	85.17
		Granted:
			Annual	946,774		101.57
			Other	38,193		109.82
		Vested		(1,035,090)		79.83
		Forfeited		(26,212)		89.96
	As of June 30			3,185,227	$	92.04

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	342,131		96.23
		Distributed	(506,725)		75.16
		Performance change	(29,559)		87.43
		Forfeited	(20,845)		91.72
	As of June 30		874,086	$	87.72