Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2014

Stock-Based Compensation

Stock-Based Compensation Expense

Stock-Based Compensation Expense
	Three months ended
	March 31,
(Millions)	2014		2013
Cost of sales	$	22	$	12
Selling, general and administrative expenses		77		77
Research, development and related expenses		23		14
Stock-based compensation expenses	$	122	$	103
Income tax benefits	$	(40)	$	(32)
Stock-based compensation expenses, net of tax	$	82	$	71

Stock Option Activity

The following table summarizes stock option activity during the three months ended March 31, 2014:
Stock Option Program
			Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (months)	Aggregate Intrinsic Value (millions)
Under option —
	January 1		43,938,778	$	83.84
	Granted:
		Annual	5,736,183		126.77
	Exercised		(2,758,156)		83.04
	Canceled		(59,359)		108.64
	March 31		46,857,446	$	89.11	67	$	2,181
Options exercisable
	March 31		34,939,677	$	81.51	53	$	1,892

Stock Option Assumptions

	Annual
Stock Option Assumptions	2014
Exercise price	$	126.72
Risk-free interest rate		1.9	%
Dividend yield		2.6	%
Expected volatility		20.8	%
Expected life (months)		75
Black-Scholes fair value	$	19.63

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			3,105,361	$	92.31
		Granted:
			Annual	798,615		126.79
			Other	1,193		132.51
		Vested		(1,051,124)		90.60
		Forfeited		(14,949)		99.98
	As of March 31			2,839,096	$	102.62

Performance Shares Activity

				Weighted Average
			Number of	Grant Date
Performance Shares			Awards	Fair Value
Undistributed balance —
	As of January 1		895,635	$	88.12
		Granted	263,674		122.85
		Distributed	(277,357)		84.74
		Performance change	(36,160)		100.19
		Forfeited	(4,142)		90.80
	As of March 31		841,650	$	99.58