Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes activity and related information under our stock option plans. All option grants presented in the table had exercise prices not less than the fair value of the underlying common stock on the grant date:



	Shares (in thousands)		Weighted- Average Exercise Price (in dollars)		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2015	27,413		$	28.56
Granted	2,927		$	82.78
Forfeited	(244	)	$	87.86
Expired	(42	)	$	92.39
Exercised	(6,897	)	$	18.46
Outstanding at December 31, 2016	23,157		$	37.69	4.05	$	864
Exercisable at December 31, 2016	19,264		$	28.16	3.07	$	860
Expected to vest, net of estimated forfeitures at December 31, 2016	3,660		$	84.88	8.85	$	3

Share-based Compensation, Performance Shares Award Outstanding Activity

The following table summarizes activity and related information for all of our PSUs:



	Shares ⁽¹⁾ (in thousands)		Weighted- Average Grant-Date Fair Value Per Share ⁽¹⁾ (in dollars)
Outstanding at December 31, 2015	487		$	85.83
Granted	606		$	71.60
Vested	(527	)	$	62.13
Forfeited	(57	)	$	95.67
Outstanding at December 31, 2016	509		$	92.32
_______________________

Note:


⁽¹⁾	Weighted-average grant-date fair value per share excludes shares related to grants that currently have no grant-date fair value as the performance objectives have not yet been defined.

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

The fair value of an RSU is equal to the closing price of our common stock on the grant date. The following table summarizes our RSU activities and related information:



	Shares (in thousands)		Weighted- Average Grant-Date Fair Value Per Share (in dollars)
Outstanding at December 31, 2015	11,028		$	73.93
Granted	4,897		$	84.51
Vested	(4,826	)	$	58.77
Forfeited	(1,054	)	$	83.02
Outstanding at December 31, 2016	10,045		$	85.41

Schedule of Stock-Based Compensation Expenses Included in Consolidated Statement of Income

The following table summarizes the stock-based compensation expenses included on our Consolidated Statements of Income (in millions):



	Year Ended December 31,
	2016			2015			2014
Cost of goods sold	$	14		$	11		$	10
Research and development expenses	176			173			152
Selling, general and administrative expenses	190			198			198
Stock-based compensation expense included in total costs and expenses	380			382			360
Income tax effect	(104		)	(131		)	(64		)
Stock-based compensation expense, net of tax	$	276		$	251		$	296

Schedule Of Assumptions To Calculate The Estimated Fair Value Of Awards

We used the following assumptions to calculate the estimated fair value of the awards:



	Year Ended December 31,
	2016		2015		2014
Expected volatility:
Stock options	30	%	35	%	34	%
ESPP	30	%	32	%	32	%
Expected term in years:
Stock options	5.5		5.7		5.5
ESPP	0.5		1.2		1.2
Risk-free interest rate:
Stock options	1.4	%	1.4	%	1.8	%
ESPP	1.1	%	1.4	%	1.5	%
Expected dividend yield	1.9	%	1.7	%	—	%