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Stock Compensation (Tables)
12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Schedule of Stock Compensation Expense Allocation Within the Consolidated Statements of Income
Total stock compensation expense recognized is as follows:
For Years Ended December 31,
201920182017
COR$21  $25  $36  
R&D66  69  59  
SG&A130  138  147  
Total$217  $232  $242  
Schedule of Weighted Average Assumptions Used to Estimate the Fair Values for Non-qualified Stock Options We estimate the fair values for non-qualified stock options using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions:
For Years Ended December 31,
201920182017
Weighted average grant date fair value, per share$22.08  $23.20  $16.49  
Weighted average assumptions used:
Expected volatility26 %23 %24 %
Expected lives (in years)7.17.27.2
Risk-free interest rates2.66 %2.57 %2.36 %
Expected dividend yields2.95 %2.25 %2.52 %
Schedule of Stock Option and RSU Transactions Under Long-term Incentive and Director Compensation Plans
Stock option and RSU transactions under our long-term incentive and director compensation plans are as follows:
Stock OptionsRSUs
SharesWeighted Average Exercise Price per ShareSharesWeighted Average Grant Date Fair Value per Share
Outstanding grants, December 31, 2018
39,905,454  $56.10  7,305,543  $66.72  
Granted4,559,093  104.51  1,142,974  106.58  
Stock options exercised/RSUs vested(11,529,174) 44.68  (2,370,762) 52.74  
Forfeited and expired(441,429) 83.89  (179,955) 81.57  
Outstanding grants, December 31, 2019
32,493,944  66.57  5,897,800  79.62  
Schedule of Shares Outstanding Under Stock Option Plans, by Exercise Price Range
Summarized information about stock options outstanding as of December 31, 2019, is as follows:
Stock Options OutstandingOptions Exercisable
Exercise Price RangeNumber Outstanding (Shares)Weighted Average Remaining Contractual Life (Years)Weighted Average Exercise Price per ShareNumber Exercisable (Shares)Weighted Average Exercise Price per Share
$
23.05 to 127.35
32,493,944  5.9$66.57  19,646,782  $50.82  
Schedule of Stock Options That are Vested and Expected to Vest, Outstanding and Exercisable
Summarized information as of December 31, 2019, 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)32,001,396  19,646,782  
Weighted average remaining contractual life (in years)5.84.6
Weighted average exercise price per share$66.03  $50.82  
Intrinsic value (millions of dollars)$1,992  $1,522  
(a)Includes effects of expected forfeitures. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $2.01 billion.
Schedule of ESPP Transactions
ESPP transactions are as follows:
SharesExercise Price
Outstanding grants, December 31, 2018
229,836  $80.29  
Granted742,819  102.34  
Exercised(798,806) 94.30  
Outstanding grants, December 31, 2019
173,849  110.14  
Schedule of Changes in Treasury Stock The following table reflects the changes in our treasury shares:
Stock OptionsRSUsTreasury Shares
Balance, December 31, 2016
744,831,978  
Repurchases30,570,129  
Shares used for:
Stock options/RSUs(13,313,019) (4,419,464) 
Stock applied to taxes—  1,058,100  
ESPP(1,065,757) —  
Director deferred stock units—  —  (4,750) 
Total issued(14,378,776) (3,361,364) (17,740,140) 
Balance, December 31, 2017
757,657,217  
Repurchases49,482,220  
Shares used for:
Stock options/RSUs(8,432,458) (2,769,994) 
Stock applied to taxes—  553,720  
ESPP(819,878) —  
Director deferred stock units—  —  (5,181) 
Total issued(9,252,336) (2,216,274) (11,468,610) 
Balance, December 31, 2018
795,665,646  
Repurchases27,398,701  
Shares used for:
Stock options/RSUs(11,529,174) (2,370,762) 
Stock applied to taxes—  490,347  
ESPP(798,806) —  
Director deferred stock units—  —  (71,571) 
Total issued(12,327,980) (1,880,415) (14,208,395) 
Balance, December 31, 2019
808,784,381  
Schedule of Cash Proceeds Received from Share-based Payment Awards
The effects on cash flows are as follows:
For Years Ended December 31,
201920182017
Proceeds from common stock transactions (a)$539  $373  $483  
Tax benefit realized from stock compensation$224  $179  $341  
Reduction to deferred tax asset(49) (43) (91) 
Excess tax benefit for stock compensation$175  $136  $250  
(a)Net of taxes paid for employee shares withheld of $52 million, $60 million and $83 million in 2019, 2018 and 2017, respectively.