XML 82 R35.htm IDEA: XBRL DOCUMENT

Stock-based compensation (Tables)

12 Months Ended

Dec. 31, 2011

Stock option, restricted stock unit and employee stock purchase plan transactions

Shares available for future grant and reserved for issuance are summarized below:



	As of December 31, 2011
Shares	Long-term Incentive and Director Compensation Plans		Employee Stock Purchase Plan		Total
Reserved for issuance (a)	224,383,737		27,967,317		252,351,054
Shares to be issued upon exercise of outstanding options and RSUs	(136,755,907	)	(580,095	)	(137,336,002	)
Available for future grants	87,627,830		27,387,222		115,015,052

Total stock-based compensation expense recognized was as follows:



	2011		2010		2009
Stock-based compensation expense recognized in:
Cost of revenue (COR)	$	40	$	36	$	35
Research and development (R&D)	58		53		54
Selling, general and administrative (SG&A)	121		101		97
Acquisition charges	50		—		—
Total	$	269	$	190	$	186

Employee stock purchase plan transactions during 2011 were as follows:



	Employee Stock Purchase Plan (Shares)		Exercise Price
Outstanding grants, December 31, 2010	487,871		$	27.83
Granted	2,200,718		26.04
Exercised	(2,108,494	)	26.66
Outstanding grants, December 31, 2011	580,095		$	25.29

Summarized information as of December 31, 2011, about outstanding stock options that are vested and expected to vest, as well as stock options that are currently exercisable, is as follows:



	Outstanding Stock Options (Fully Vested and Expected to Vest) (a)		Options Exercisable
Number of outstanding (shares)	112,230,358		82,234,319
Weighted average remaining contractual life (in years)	4.5		3.2
Weighted average exercise price per share	$	26.03	$	25.97
Intrinsic value (millions of dollars)	$	539	$	370

(a) Includes effects of expected forfeitures of approximately 1 million shares. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $543 million.

We estimate the fair values for non-qualified stock options under long-term incentive and director compensation plans using the Black-Scholes option-pricing model with the following weighted average assumptions (these assumptions exclude options assumed in connection with the National acquisition):



	2011			2010			2009
Weighted average grant date fair value, per share	$	10.37		$	6.61		$	5.43
Weighted average assumptions used:
Expected volatility	30		%	32		%	48		%
Expected lives (in years)	6.9			6.4			5.9
Risk-free interest rates	2.61		%	2.83		%	2.63		%
Expected dividend yields	1.51		%	2.08		%	2.94		%

Stock option and RSU transactions under our long-term incentive and director compensation plans during 2011, including stock options and RSUs assumed in connection with the National acquisition, were as follows:



	Stock Options				RSUs
	Shares		Weighted Average Exercise Price per Share		Shares		Weighted Average Grant-Date Fair Value per Share
Outstanding grants, December 31, 2010	150,135,013		$	27.70	18,567,365		$	23.06
Granted	10,310,816		34.55		5,879,409		33.20
Assumed in National acquisition	1,316,283		15.75		4,884,774		27.22
Vested RSUs	—		—		(5,359,066	)	28.96
Expired and forfeited	(22,906,524	)	42.59		(613,636	)	24.43
Exercised	(25,582,194	)	24.91		—		—
Outstanding grants, December 31, 2011	113,273,394		$	25.79	23,358,846		$	25.09

Schedule of share-based compensation, Shares outstanding under stock option plans, by exercise price range

Summarized information about stock options outstanding at December 31, 2011, including options assumed in connection with the National acquisition, is as follows:



		Stock Options Outstanding				Options Exercisable
Range of Exercise Prices		Number Outstanding (Shares)	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price per Share		Number Exercisable (Shares)	Weighted Average Exercise Price per Share
$	.26 to 10.00	13,813	1.1	$	6.64	13,813	$	6.64
	10.01 to 20.00	26,219,258	3.8	15.66		18,859,398	15.91
	20.01 to 30.00	44,961,810	5.1	24.98		31,390,099	25.38
	30.01 to 38.40	42,078,513	4.3	32.99		31,971,009	32.49
$	.26 to 38.40	113,273,394	4.5	$	25.79	82,234,319	$	25.97

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References+ Details

- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

+ References+ Details