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Stock-Based Compensation (Tables)
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3 Months Ended |
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Mar. 31, 2015
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| Stock-Based Compensation |
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| Stock-Based Compensation Expense |
| Stock-Based Compensation Expense | | | | | | | | | | | | | | | | | | Three months ended | | | | March 31, | | (Millions) | | 2015 | | 2014 | | Cost of sales | | $ | 23 | | $ | 22 | | Selling, general and administrative expenses | | | 88 | | | 77 | | Research, development and related expenses | | | 27 | | | 23 | | | | | | | | | | Stock-based compensation expenses | | $ | 138 | | $ | 122 | | | | | | | | | | Income tax benefits | | $ | (47) | | $ | (40) | | | | | | | | | | Stock-based compensation expenses, net of tax | | $ | 91 | | $ | 82 |
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| Stock Option Activity |
| The following table summarizes stock option activity during the three months ended March 31, 2015: | | | | | | | | | | | | | | | | Stock Option Program | | | | | | | | | | | | | | Number of
Options | | Weighted Average Exercise
Price | | Weighted Average Remaining
Contractual
Life (months) | | Aggregate
Intrinsic Value
(millions) | | Under option — | | | | | | | | | | | | | January 1 | | 39,235,557 | | $ | 90.38 | | | | | | | | Granted: | | | | | | | | | | | | | | Annual | | 5,529,615 | | | 165.91 | | | | | | | | Exercised | | (3,164,169) | | | 84.03 | | | | | | | | Canceled | | (25,786) | | | 130.40 | | | | | | | | March 31 | | 41,575,217 | | $ | 100.89 | | 72 | | $ | 2,669 | | Options exercisable | | | | | | | | | | | | | March 31 | | 30,089,556 | | $ | 85.71 | | 58 | | $ | 2,384 |
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| Stock Option Assumptions |
| | | Annual | | | Stock Option Assumptions | | 2015 | | | Exercise price | | $ | 165.94 | | | Risk-free interest rate | | | 1.5 | % | | Dividend yield | | | 2.5 | % | | Expected volatility | | | 20.1 | % | | Expected life (months) | | | 76 | | | Black-Scholes fair value | | $ | 23.98 | |
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| Restricted Stock Units and Restricted Stock Activity |
| Restricted Stock Units and Restricted Stock | | | | | | | | | | | | | | Weighted Average | | Restricted Stock Units and | | Number of | | Grant Date | | Restricted Stock | Awards | Fair Value | | Nonvested balance — | | | | | | | As of January 1 | | 2,817,786 | | $ | 104.41 | | | | Granted: | | | | | | | | | | Annual | | 671,204 | | | 165.86 | | | | | Other | | 6,435 | | | 163.01 | | | | Vested | | (931,210) | | | 90.38 | | | | Forfeited | | (12,372) | | | 104.19 | | | As of March 31 | | 2,551,843 | | $ | 125.84 |
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| Performance Shares Activity |
| | | | | | | | Weighted Average | | | | | | | Number of | | Grant Date | | Performance Shares | Awards | Fair Value | | Undistributed balance — | | | | | | | As of January 1 | | 1,099,752 | | $ | 102.65 | | | | Granted | | 220,439 | | | 159.32 | | | | Distributed | | (323,717) | | | 83.07 | | | | Performance change | | (18,723) | | | 122.45 | | | | Forfeited | | (2,682) | | | 100.23 | | | As of March 31 | | 975,069 | | $ | 121.59 |
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