Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2021

Stock-Based Compensation

Stock-Based Compensation Expense

Stock-Based Compensation Expense

	Three months ended				Six months ended
	June 30,				June 30,
(Millions)	2021		2020		2021		2020
Cost of sales	$	9	$	10	$	31	$	32
Selling, general and administrative expenses		37		35		121		108
Research, development and related expenses		7		7		32		32
Stock-based compensation expenses	$	53	$	52	$	184	$	172
Income tax benefits		(25)		(15)		(76)		(54)
Stock-based compensation expenses (benefits), net of tax	$	28	$	37	$	108	$	118

Stock Option Activity

Stock Option Program

The following table summarizes stock option activity during the six months ended June 30, 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	(3,514)		109.34
Forfeited	(144)		177.73
June 30	35,355	$	162.73	66	$	1,383
Options exercisable
June 30	27,628	$	160.24	55	$	1,172

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 six months ended June 30, 2021:

		Weighted
		Average
	Number of	Grant Date
(Shares in thousands)	Shares	Fair Value
Nonvested balance —
As of January 1	1,722	$	189.78
Granted	747		175.80
Vested	(441)		231.65
Forfeited	(42)		173.22
As of June 30	1,986	$	175.55

Performance Shares Activity

The following table summarizes performance share activity during the six months ended June 30, 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	27		177.41
Forfeited	(13)		171.82
As of June 30	485	$	174.83