Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2013

Stock-Based Compensation

Stock-Based Compensation Expense

Stock-Based Compensation Expense
	Three months ended				Nine months ended
	September 30,				September 30,
(Millions)	2013		2012		2013		2012
Cost of sales	$	5	$	6	$	23	$	23
Selling, general and administrative expenses	36		25		149		134
Research, development and related expenses	6		5		25		24
Stock-based compensation expenses	$	47	$	36	$	197	$	181
Income tax benefits	$	(14)	$	(12)	$	(59)	$	(56)
Stock-based compensation expenses, net of tax	$	33	$	24	$	138	$	125

Stock Option Activity

The following table summarizes stock option activity during the nine months ended September 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)	96,770		102.86
	Exercised		(16,270,094)		78.76
	Canceled		(144,488)		89.23
	September 30		46,468,028	$	83.73	63	$	1,658
Options exercisable
	September 30		34,588,636	$	79.78	49	$	1,371

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	41,386		103.29
		Vested		(1,093,895)		79.94
		Forfeited		(42,841)		90.43
	As of September 30			3,112,986	$	92.16

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	345,948		96.33
		Distributed	(507,083)		75.16
		Performance change	(9,615)		82.32
		Forfeited	(27,792)		90.48
	As of September 30		890,542	$	87.86