Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2015

Stock-Based Compensation

Stock-Based Compensation Expense

Stock-Based Compensation Expense
	Three months ended
	March 31,
(Millions)	2015		2014
Cost of sales	$	23	$	22
Selling, general and administrative expenses		88		77
Research, development and related expenses		27		23
Stock-based compensation expenses	$	138	$	122
Income tax benefits	$	(47)	$	(40)
Stock-based compensation expenses, net of tax	$	91	$	82

Stock Option Activity

The following table summarizes stock option activity during the three months ended March 31, 2015:
Stock Option Program
			Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (months)	Aggregate Intrinsic Value (millions)
Under option —
	January 1		39,235,557	$	90.38
	Granted:
		Annual	5,529,615		165.91
	Exercised		(3,164,169)		84.03
	Canceled		(25,786)		130.40
	March 31		41,575,217	$	100.89	72	$	2,669
Options exercisable
	March 31		30,089,556	$	85.71	58	$	2,384

Stock Option Assumptions

	Annual
Stock Option Assumptions	2015
Exercise price	$	165.94
Risk-free interest rate		1.5	%
Dividend yield		2.5	%
Expected volatility		20.1	%
Expected life (months)		76
Black-Scholes fair value	$	23.98

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			2,817,786	$	104.41
		Granted:
			Annual	671,204		165.86
			Other	6,435		163.01
		Vested		(931,210)		90.38
		Forfeited		(12,372)		104.19
	As of March 31			2,551,843	$	125.84

Performance Shares Activity

				Weighted Average
			Number of	Grant Date
Performance Shares			Awards	Fair Value
Undistributed balance —
	As of January 1		1,099,752	$	102.65
		Granted	220,439		159.32
		Distributed	(323,717)		83.07
		Performance change	(18,723)		122.45
		Forfeited	(2,682)		100.23
	As of March 31		975,069	$	121.59