Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2018

Stock-Based Compensation

Stock-Based Compensation Expense

Stock-Based Compensation Expense

	Three months ended
	March 31,
(Millions)	2018		2017
Cost of sales	$	23	$	23
Selling, general and administrative expenses		109		98
Research, development and related expenses		27		26
Stock-based compensation expenses	$	159	$	147
Income tax benefits	$	(98)	$	(148)
Stock-based compensation expenses (benefits), net of tax	$	61	$	(1)

Stock Option Activity

Stock Option Program

The following table summarizes stock option activity during the three months ended March 31, 2018:

				Weighted
				Average
		Weighted		Remaining	Aggregate
	Number of	Average		Contractual	Intrinsic Value
(Shares in thousands)	Options	Exercise Price		Life (months)	(millions)
Under option —
January 1	34,965	$	125.73
Granted:
Annual	3,174		233.62
Exercised	(1,844)		90.20
Forfeited	(22)		180.69
March 31	36,273	$	136.94	73	$	3,040
Options exercisable
March 31	27,757	$	120.20	63	$	2,757

Stock Option Assumptions

Stock Option Assumptions

	Annual
	2018
Exercise price	$	233.63
Risk-free interest rate		2.7	%
Dividend yield		2.4	%
Expected volatility		21.0	%
Expected life (months)		78
Black-Scholes fair value	$	41.59

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 three months ended March 31, 2018:

		Weighted
		Average
	Number of	Grant Date
(Shares in thousands)	Awards	Fair Value
Nonvested balance —
As of January 1	1,994	$	162.60
Granted
Annual	467		233.61
Vested	(611)		165.67
Forfeited	(6)		171.27
As of March 31	1,844	$	179.55

Performance Shares Activity

The following table summarizes performance share activity during the three months ended March 31, 2018:

		Weighted
		Average
	Number of	Grant Date
(Shares in thousands)	Awards	Fair Value
Undistributed balance —
As of January 1	686	$	171.90
Granted	156		231.34
Distributed	(206)		159.82
Performance change	28		205.82
Forfeited	(2)		181.11
As of March 31	662	$	191.02