Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2021

Stock-Based Compensation

Stock-Based Compensation Expense

Stock-Based Compensation Expense

	Three months ended
	March 31,
(Millions)	2021		2020
Cost of sales	$	22	$	22
Selling, general and administrative expenses		84		73
Research, development and related expenses		25		25
Stock-based compensation expenses	$	131	$	120
Income tax benefits		(51)		(39)
Stock-based compensation expenses (benefits), net of tax	$	80	$	81

Stock Option Activity

Stock Option Program

The following table summarizes stock option activity during the three months ended March 31, 2021:

				Weighted
				Average
		Weighted		Remaining	Aggregate
	Number of	Average		Contractual	Intrinsic Value
(Options in thousands)	Options	Exercise Price		Life (months)	(millions)
Under option —
January 1	35,401	$	156.23
Granted	3,612		175.04
Exercised	(2,323)		104.16
Forfeited	(104)		174.71
March 31	36,586	$	161.34	68	$	1,299
Options exercisable
March 31	28,819	$	158.58	57	$	1,126

Stock Option Assumptions

Stock Option Assumptions

	Annual
	2021
Exercise price	$	175.04
Risk-free interest rate		0.8	%
Dividend yield		2.8	%
Expected volatility		22.6	%
Expected life (months)		83
Black-Scholes fair value	$	25.33

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, 2021:

		Weighted
		Average
	Number of	Grant Date
(Shares in thousands)	Shares	Fair Value
Nonvested balance —
As of January 1	1,722	$	189.78
Granted	721		175.09
Vested	(433)		232.62
Forfeited	(33)		173.54
As of March 31	1,977	$	175.31

Performance Shares Activity

The following table summarizes performance share activity during the three months ended March 31, 2021:

		Weighted
		Average
	Number of	Grant Date
(Shares in thousands)	Shares	Fair Value
Undistributed balance —
As of January 1	423	$	188.61
Granted	163		176.41
Distributed	(115)		228.80
Performance change	17		178.43
Forfeited	(4)		172.92
As of March 31	484	$	174.75