Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2014

Stock-Based Compensation

Stock-Based Compensation Expense

Stock-Based Compensation Expense
	Three months ended				Six months ended
	June 30,				June 30,
(Millions)	2014		2013		2014		2013
Cost of sales	$	11	$	6	$	33	$	18
Selling, general and administrative expenses	35		36		112		113
Research, development and related expenses	6		5		29		19
Stock-based compensation expenses	$	52	$	47	$	174	$	150
Income tax benefits	$	(13)	$	(13)	$	(53)	$	(45)
Stock-based compensation expenses, net of tax	$	39	$	34	$	121	$	105

Stock Option Activity

The following table summarizes stock option activity during the six months ended June 30, 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		(6,229,925)		83.02
	Canceled		(154,922)		103.29
	June 30		43,290,114	$	89.58	68	$	2,323
Options exercisable
	June 30		31,486,006	$	81.41	53	$	1,947

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	15,647		141.58
		Vested		(1,066,382)		90.63
		Forfeited		(33,543)		100.63
	As of June 30			2,819,698	$	102.89

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	285,149		123.88
		Distributed	(277,357)		84.74
		Performance change	59,443		114.15
		Forfeited	(6,501)		102.45
	As of June 30		956,369	$	101.28