Stock Compensation (Tables)
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12 Months Ended |
Dec. 31, 2019 |
Share-based Payment Arrangement [Abstract] |
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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 | |
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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 | % |
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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 | |
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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 | |
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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.
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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 | |
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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 | |
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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.
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