XML 50 R35.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock-Based Compensation (Tables)
6 Months Ended
Jun. 30, 2018
Stock-Based Compensation  
Stock-Based Compensation Expense

 

Stock-Based Compensation Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Six months ended 

 

 

June 30,

 

June 30,

 

(Millions)

2018

    

2017

    

2018

    

2017

 

Cost of sales

$

 9

 

$

 9

 

$

32

 

$

32

 

Selling, general and administrative expenses

 

33

 

 

43

 

 

142

 

 

141

 

Research, development and related expenses

 

 7

 

 

 7

 

 

34

 

 

33

 

Stock-based compensation expenses

$

49

 

$

59

 

$

208

 

$

206

 

Income tax benefits

$

(19)

 

$

(74)

 

$

(117)

 

$

(222)

 

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

$

30

 

$

(15)

 

$

91

 

$

(16)

 

 

Stock Option Activity

Stock Option Program

 

The following table summarizes stock option activity during the six months ended June 30, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

    

 

    

Weighted

    

Remaining

    

Aggregate

 

 

 

Number of

 

Average

 

Contractual

 

Intrinsic Value

 

(Options in thousands)

 

Options

 

Exercise Price

 

Life (months)

 

(millions)

 

Under option —

 

 

 

 

 

 

 

 

 

 

 

January 1

 

34,965

 

$

125.73

 

 

 

 

 

 

Granted:

 

 

 

 

 

 

 

 

 

 

 

Annual

 

3,174

 

 

233.62

 

 

 

 

 

 

Exercised

 

(2,378)

 

 

89.67

 

 

 

 

 

 

Forfeited

 

(73)

 

 

186.24

 

 

 

 

 

 

June 30

 

35,688

 

$

137.60

 

71

 

$

2,226

 

Options exercisable

 

 

 

 

 

 

 

 

 

 

 

June 30

 

27,222

 

$

120.84

 

60

 

$

2,066

 

 

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 six months ended June 30, 2018:

 

 

 

 

 

 

 

 

 

    

    

    

Weighted

 

 

 

 

 

Average

 

 

 

Number of

 

Grant Date

 

(Shares in thousands)

 

Shares

 

Fair Value

 

Nonvested balance —

 

 

 

 

 

 

As of January 1

 

1,994

 

$

162.60

 

Granted

 

 

 

 

 

 

Annual

 

467

 

 

233.61

 

Other

 

 3

 

 

209.26

 

Vested

 

(632)

 

 

164.37

 

Forfeited

 

(22)

 

 

177.93

 

As of June 30

 

1,810

 

$

180.22

 

 

Performance Shares Activity

The following table summarizes performance share activity during the six months ended June 30, 2018:

 

 

 

 

 

 

 

 

 

    

    

    

Weighted

 

 

 

 

 

Average

 

 

 

Number of

 

Grant Date

 

(Shares in thousands)

 

Shares

 

Fair Value

 

Undistributed balance —

 

 

 

 

 

 

As of January 1

 

686

 

$

171.90

 

Granted

 

156

 

 

231.34

 

Distributed

 

(206)

 

 

159.82

 

Performance change

 

 2

 

 

249.07

 

Forfeited

 

(11)

 

 

194.69

 

As of June 30

 

627

 

$

190.52