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Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2016
Stock-Based Compensation  
Stock-Based Compensation Expense

Stock-Based Compensation Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Nine months ended 

 

 

 

September 30,

 

September 30,

 

(Millions)

    

2016

    

2015

    

2016

    

2015

 

Cost of sales

 

$
8

 

$
8

 

$
39

 

$
39

 

Selling, general and administrative expenses

 

 
36

 

 
31

 

 
166

 

 
154

 

Research, development and related expenses

 

 
7

 

 
7

 

 
39

 

 
40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expenses

 

$
51

 

$
46

 

$
244

 

$
233

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefits

 

$
(49)

 

$
(13)

 

$
(248)

 

$
(74)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expenses (benefits), net of tax

 

$
2

 

$
33

 

$
(4)

 

$
159

 

 

Stock Option Activity

Stock Option Program

 

The following table summarizes stock option activity during the nine months ended September 30, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

    

 

    

Weighted

    

Remaining

    

Aggregate

 

 

 

Number of

 

Average

 

Contractual

 

Intrinsic Value

 

 

 

Options

 

Exercise Price

 

Life (months)

 

(millions)

 

Under option —

 

 

 

 

 

 

 

 

 

 

 

January 1

 
38,552,445

 

$
102.01

 

 

 

 

 

 

Granted:

 

 

 

 

 

 

 

 

 

 

 

Annual

 
5,591,727

 

 
147.99

 

 

 

 

 

 

Exercised

 
(7,318,470)

 

 
86.67

 

 

 

 

 

 

Canceled

 
(189,747)

 

 
148.16

 

 

 

 

 

 

September 30

 
36,635,955

 

$
111.85

 
72

 

$
2,358

 

Options exercisable

 

 

 

 

 

 

 

 

 

 

 

September 30

 
25,622,123

 

$
95.54

 
59

 

$
2,067

 

 

Stock Option Assumptions

Stock Option Assumptions

 

 

 

 

 

 

 

 

 

Annual

 

 

    

2016

 

Exercise price

 

$
147.87

 

Risk-free interest rate

 

 
1.5

%

Dividend yield

 

 
2.5

%

Expected volatility

 

 
20.8

%

Expected life (months)

 

 
77

 

Black-Scholes fair value

 

$
22.47

 

 

Restricted Stock and Restricted Stock Units Activity

Restricted Stock and Restricted Stock Units

 

The following table summarizes restricted stock and restricted stock unit activity during the nine months ended September 30, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

    

    

    

Weighted

 

 

 

 

 

Average

 

 

 

Number of

 

Grant Date

 

 

 

Awards

 

Fair Value

 

Nonvested balance —

 

 

 

 

 

 

As of January 1

 
2,441,088

 

$
127.47

 

Granted

 

 

 

 

 

 

Annual

 
749,068

 

 
148.20

 

Other

 
8,115

 

 
169.00

 

Vested

 
(933,455)

 

 
101.34

 

Forfeited

 
(39,507)

 

 
144.14

 

As of September 30

 
2,225,309

 

$
145.27

 

 

Performance Shares Activity

The following table summarizes performance share activity during the nine months ended September 30, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

    

    

    

Weighted

 

 

 

 

 

Average

 

 

 

Number of

 

Grant Date

 

 

 

Awards

 

Fair Value

 

Undistributed balance —

 

 

 

 

 

 

As of January 1

 
871,192

 

$
120.89

 

Granted

 
214,710

 

 
159.98

 

Distributed

 
(367,428)

 

 
99.06

 

Performance change

 
(65,246)

 

 
157.21

 

Forfeited

 
(23,542)

 

 
147.99

 

As of September 30

 
629,686

 

$
142.18