Stock-Based Compensation (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
| Stock-Based Compensation |
|
| Stock-based compensation cost included in income from continuing operations |
| | | | | | | | | | ($ in millions) | | | | | | | | | | For the year ended December 31: | | 2022 | | 2021 | | 2020 | Cost | | $ | 164 | | $ | 145 | | $ | 126 | SG&A expense | | | 566 | | | 555 | | | 550 | RD&E expense | | | 258 | | | 218 | | | 197 | Pre-tax stock-based compensation cost | | | 987 | | | 919 | | | 873 | Income tax benefits | | | (249) | | | (223) | | | (198) | Net stock-based compensation cost | | $ | 738 | | $ | 695 | | $ | 675 | | | | | | | | | | |
|
| Summary of Restricted Stock Units activity |
| | | | | | | | | | | | | | | | | | | | | | | | | | RSUs | | PSUs | | | | Weighted-Average | | | | Weighted-Average | | | | | | Grant Price | | Number of Units | | Grant Price | | Number of Units | | Balance at January 1, 2020 | | $ | 123 | | 11,326,628 | | $ | 126 | | 2,856,450 | | Awards granted | | | 115 | | 10,651,955 | | | 117 | | 1,582,666 | | Awards released | | | 126 | | (3,781,240) | | | 137 | | (630,974) | | Awards canceled/forfeited/performance adjusted | | | 121 | | (1,300,639) | | | 125 | | (256,642) | * | Balance at December 31, 2020 | | $ | 117 | | 16,896,704 | | $ | 120 | | 3,551,500 | ** | Awards granted | | | 125 | | 9,566,307 | | | 129 | | 1,561,120 | | Awards released | | | 120 | | (4,582,159) | | | 129 | | (581,397) | | Awards canceled/forfeited/performance adjusted | | | 119 | | (2,072,800) | | | 124 | | (453,178) | * | Kyndryl separation - adjustment | | | — | | 660,089 | | | — | | 120,428 | | Kyndryl separation - cancellation | | | 119 | | (1,429,661) | | | 119 | | (469,616) | | Balance at December 31, 2021 | | $ | 116 | | 19,038,480 | | $ | 118 | | 3,728,857 | ** | Awards granted | | | 112 | | 11,447,966 | | | 110 | | 1,237,019 | | Awards released | | | 114 | | (7,013,530) | | | 114 | | (679,601) | | Awards canceled/forfeited/performance adjusted | | | 116 | | (2,420,002) | | | 116 | | (720,197) | * | Balance at December 31, 2022 | | $ | 115 | | 21,052,914 | | $ | 117 | | 3,566,078 | ** | | | | | | | | | | | | |
* | Includes adjustments of (362,247), (223,397) and (70,089) PSUs for 2022, 2021 and 2020, respectively, because final performance metrics were above or below specified targets. |
** | Represents the number of shares expected to be issued based on achievement of grant date performance targets. The actual number of shares issued will depend on final performance against specified targets over the vesting period. |
|
| Summary of Performance Share Units activity |
| | | | | | | | | | | | | | | | | | | | | | | | | | RSUs | | PSUs | | | | Weighted-Average | | | | Weighted-Average | | | | | | Grant Price | | Number of Units | | Grant Price | | Number of Units | | Balance at January 1, 2020 | | $ | 123 | | 11,326,628 | | $ | 126 | | 2,856,450 | | Awards granted | | | 115 | | 10,651,955 | | | 117 | | 1,582,666 | | Awards released | | | 126 | | (3,781,240) | | | 137 | | (630,974) | | Awards canceled/forfeited/performance adjusted | | | 121 | | (1,300,639) | | | 125 | | (256,642) | * | Balance at December 31, 2020 | | $ | 117 | | 16,896,704 | | $ | 120 | | 3,551,500 | ** | Awards granted | | | 125 | | 9,566,307 | | | 129 | | 1,561,120 | | Awards released | | | 120 | | (4,582,159) | | | 129 | | (581,397) | | Awards canceled/forfeited/performance adjusted | | | 119 | | (2,072,800) | | | 124 | | (453,178) | * | Kyndryl separation - adjustment | | | — | | 660,089 | | | — | | 120,428 | | Kyndryl separation - cancellation | | | 119 | | (1,429,661) | | | 119 | | (469,616) | | Balance at December 31, 2021 | | $ | 116 | | 19,038,480 | | $ | 118 | | 3,728,857 | ** | Awards granted | | | 112 | | 11,447,966 | | | 110 | | 1,237,019 | | Awards released | | | 114 | | (7,013,530) | | | 114 | | (679,601) | | Awards canceled/forfeited/performance adjusted | | | 116 | | (2,420,002) | | | 116 | | (720,197) | * | Balance at December 31, 2022 | | $ | 115 | | 21,052,914 | | $ | 117 | | 3,566,078 | ** | | | | | | | | | | | | |
* | Includes adjustments of (362,247), (223,397) and (70,089) PSUs for 2022, 2021 and 2020, respectively, because final performance metrics were above or below specified targets. |
** | Represents the number of shares expected to be issued based on achievement of grant date performance targets. The actual number of shares issued will depend on final performance against specified targets over the vesting period. |
|
| Summary of total fair value of RSUs and PSUs granted and vested |
| | | | | | | | | | ($ in millions) | | | | | | | | | | For the year ended December 31: | | 2022 | | 2021 | | 2020 | RSUs | | | | | | | | | | Granted | | $ | 1,288 | | $ | 1,195 | | $ | 1,220 | Vested | | | 801 | | | 549 | | | 478 | PSUs | | | | | | | | | | Granted | | $ | 136 | | $ | 201 | | $ | 186 | Vested | | | 77 | | | 75 | | | 86 | | | | | | | | | | |
|
| Schedule of weighted-average assumptions used for estimation of fair value of stock options |
| | | | | | | | For the year ended December 31: | | 2022 | | Expected term (years) | | 6.3 | | Expected volatility | | 25.5 | % | Risk-free rate | | 2.0 | % | Dividend yield | | 5.3 | % | | | | |
|
| Summary of option activity |
| | | | | | | | | | | | | | | | | | | Weighted-Average | | Number of Shares | | | Exercise Price | | Under Option | Balance at January 1, 2022 | | $ | 135 | | 1,549,732 | Options granted | | | 125 | | 5,044,353 | Options exercised | | | — | | — | Options forfeited/cancelled/expired | | | 125 | | (319,560) | Balance at December 31, 2022 | | $ | 128 | | 6,274,525 | Vested and exercisable at December 31, 2022 | | $ | 135 | | 1,549,732 | | | | | | |
|