Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2015

Stock-Based Compensation

Stock-Based Compensation Expense

Stock-Based Compensation Expense
	Three months ended				Six months ended
	June 30,				June 30,
(Millions)	2015		2014		2015		2014
Cost of sales	$	8	$	11	$	31	$	33
Selling, general and administrative expenses	35		35		123		112
Research, development and related expenses	6		6		33		29
Stock-based compensation expenses	$	49	$	52	$	187	$	174
Income tax benefits	$	(14)	$	(13)	$	(61)	$	(53)
Stock-based compensation expenses, net of tax	$	35	$	39	$	126	$	121

Stock Option Activity

The following table summarizes stock option activity during the six months ended June 30, 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	5,529,544		165.91
	Exercised		(4,515,976)		83.22
	Canceled		(112,047)		117.81
	June 30		40,137,078	$	101.52	71	$	2,182
Options exercisable
	June 30		28,708,664	$	85.94	57	$	1,963

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	18,375		160.63
		Vested		(960,704)		90.23
		Forfeited		(25,033)		111.55
	As of June 30			2,521,628	$	126.50

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	225,466		159.16
		Distributed	(323,938)		83.08
		Performance change	(47,090)		119.37
		Forfeited	(14,579)		122.94
	As of June 30		939,611	$	121.81