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Stock-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2017
Stock-Based Compensation  
Stock-Based Compensation Expense

Stock-Based Compensation Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Six months ended 

 

 

 

June 30,

 

June 30,

 

(Millions)

    

2017

    

2016

    

2017

    

2016

 

Cost of sales

 

$

 9

 

$

 8

 

$

32

 

$

31

 

Selling, general and administrative expenses

 

 

43

 

 

34

 

 

141

 

 

130

 

Research, development and related expenses

 

 

 7

 

 

 7

 

 

33

 

 

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expenses

 

$

59

 

$

49

 

$

206

 

$

193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefits

 

$

(74)

 

$

(72)

 

$

(222)

 

$

(199)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

(15)

 

$

(23)

 

$

(16)

 

$

(6)

 

 

Stock Option Activity

Stock Option Program

 

The following table summarizes stock option activity during the six months ended June 30, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

    

 

    

Weighted

    

Remaining

    

Aggregate

 

 

 

Number of

 

Average

 

Contractual

 

Intrinsic Value

 

 

 

Options

 

Exercise Price

 

Life (months)

 

(millions)

 

Under option —

 

 

 

 

 

 

 

 

 

 

 

January 1

 

36,196,232

 

$

112.07

 

 

 

 

 

 

Granted:

 

 

 

 

 

 

 

 

 

 

 

Annual

 

5,409,628

 

 

175.93

 

 

 

 

 

 

Exercised

 

(4,667,165)

 

 

89.38

 

 

 

 

 

 

Canceled

 

(122,880)

 

 

161.12

 

 

 

 

 

 

June 30

 

36,815,815

 

$

124.16

 

75

 

$

3,093

 

Options exercisable

 

 

 

 

 

 

 

 

 

 

 

June 30

 

26,069,052

 

$

107.43

 

61

 

$

2,627

 

 

Stock Option Assumptions

Stock Option Assumptions

 

 

 

 

 

 

 

 

Annual

 

 

    

2017

 

Exercise price

 

$

175.76

 

Risk-free interest rate

 

 

2.1

%

Dividend yield

 

 

2.5

%

Expected volatility

 

 

17.3

%

Expected life (months)

 

 

78

 

Black-Scholes fair value

 

$

23.51

 

 

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 six months ended June 30, 2017:

 

 

 

 

 

 

 

 

    

    

    

Weighted

 

 

 

 

 

Average

 

 

 

Number of

 

Grant Date

 

 

 

Awards

 

Fair Value

 

Nonvested balance —

 

 

 

 

 

 

As of January 1

 

2,185,046

 

$

145.64

 

Granted

 

 

 

 

 

 

Annual

 

604,256

 

 

176.10

 

Other

 

1,547

 

 

184.98

 

Vested

 

(758,403)

 

 

126.75

 

Forfeited

 

(31,511)

 

 

157.36

 

As of June 30

 

2,000,935

 

$

161.84

 

 

Performance Shares Activity

The following table summarizes performance share activity during the six months ended June 30, 2017:

 

 

 

 

 

 

 

 

 

    

    

    

Weighted

 

 

 

 

 

Average

 

 

 

Number of

 

Grant Date

 

 

 

Awards

 

Fair Value

 

Undistributed balance —

 

 

 

 

 

 

As of January 1

 

656,278

 

$

142.98

 

Granted

 

187,480

 

 

189.81

 

Distributed

 

(312,173)

 

 

124.63

 

Performance change

 

65,216

 

 

173.25

 

Forfeited

 

(9,275)

 

 

168.09

 

As of June 30

 

587,526

 

$

170.63