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,
	2019		2018		2017
COR	$	21	$	25	$	36
R&D	66		69		59
SG&A	130		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,
	2019			2018			2017
Weighted average grant date fair value, per share	$	22.08		$	23.20		$	16.49
Weighted average assumptions used:
Expected volatility	26		%	23		%	24		%
Expected lives (in years)	7.1			7.2			7.2
Risk-free interest rates	2.66		%	2.57		%	2.36		%
Expected dividend yields	2.95		%	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 Options			RSUs
	Shares	Weighted Average Exercise Price per Share		Shares	Weighted Average Grant Date Fair Value per Share
Outstanding grants, December 31, 2018	39,905,454	$	56.10	7,305,543	$	66.72
Granted	4,559,093	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 Outstanding				Options Exercisable
Exercise Price Range		Number Outstanding (Shares)	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price per Share		Number 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)	5.8		4.6
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:

	Shares	Exercise Price
Outstanding grants, December 31, 2018	229,836	$	80.29
Granted	742,819	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 Options	RSUs	Treasury Shares
Balance, December 31, 2016			744,831,978
Repurchases			30,570,129
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
Repurchases			49,482,220
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
Repurchases			27,398,701
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,
	2019		2018		2017
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.