Stock-Based Compensation (Tables)
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12 Months Ended |
Dec. 31, 2016 |
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| Stock-Based Compensation |
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| Stock-Based Compensation Expense |
Stock-Based Compensation Expense
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Years ended December 31
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(Millions)
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2016
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2015
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2014
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Cost of sales
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$
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47
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$
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46
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$
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47
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Selling, general and administrative expenses
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206
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185
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192
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Research, development and related expenses
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45
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45
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41
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Stock-based compensation expenses
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$
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298
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$
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276
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$
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280
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Income tax benefits
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$
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(272)
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$
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(87)
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$
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(79)
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Stock-based compensation expenses (benefits), net of tax
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$
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26
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$
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189
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$
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201
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| Stock Option Activity |
Stock Option Program
The following table summarizes stock option activity for the years ended December 31:
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2016
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2015
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2014
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Weighted
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Weighted
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Weighted
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Number of
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Average
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Number of
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Average
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Number of
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Average
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Options
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Exercise Price
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Options
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Exercise Price
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Options
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Exercise Price
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Under option —
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January 1
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38,552,445
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$
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102.01
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39,235,557
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$
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90.38
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43,938,778
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$
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83.84
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Granted:
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Annual
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5,591,727
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147.99
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5,529,544
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165.91
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5,736,183
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126.77
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Exercised
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(7,716,141)
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86.76
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(5,978,382)
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83.74
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(10,219,261)
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82.37
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Canceled
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(231,799)
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148.43
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(234,274)
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128.99
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(220,143)
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105.11
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December 31
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36,196,232
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$
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112.07
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38,552,445
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$
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102.01
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39,235,557
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$
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90.38
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Options exercisable
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December 31
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25,240,759
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$
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95.65
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27,262,062
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$
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85.97
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27,502,208
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$
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81.42
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| Stock Option Assumptions |
Stock Option Assumptions
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Annual
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2016
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2015
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2014
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Exercise price
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$
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147.87
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$
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165.94
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$
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126.72
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Risk-free interest rate
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1.5
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%
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1.5
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%
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1.9
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%
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Dividend yield
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2.5
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%
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2.5
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%
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2.6
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%
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Expected volatility
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20.8
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%
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20.1
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%
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20.8
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%
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Expected life (months)
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77
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76
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75
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Black-Scholes fair value
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$
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22.47
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$
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23.98
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$
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19.63
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| Restricted Stock and Restricted Stock Units Activity |
Restricted Stock and Restricted Stock Units
The following table summarizes restricted stock and restricted stock unit activity for the years ended December 31:
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2016
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2015
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2014
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Weighted
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Weighted
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Weighted
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Average
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Average
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Average
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Number of
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Grant Date
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Number of
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Grant Date
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Number of
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Grant Date
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Awards
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Fair Value
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Awards
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Fair Value
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Awards
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Fair Value
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Nonvested balance —
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As of January 1
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2,441,088
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$
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127.47
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2,817,786
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$
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104.41
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3,105,361
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$
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92.31
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Granted
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Annual
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749,068
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148.20
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671,204
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165.86
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798,615
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126.79
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Other
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8,115
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169.00
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26,886
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156.94
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78,252
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152.74
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Vested
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(960,345)
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101.64
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(1,010,612)
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89.99
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(1,100,675)
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90.37
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Forfeited
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(52,880)
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145.95
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(64,176)
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118.99
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(63,767)
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97.23
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As of December 31
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2,185,046
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$
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145.64
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2,441,088
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$
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127.47
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2,817,786
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$
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104.41
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| Performance Shares Activity |
The following table summarizes performance share activity for the years ended December 31:
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2016
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2015
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2014
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Weighted
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Weighted
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Weighted
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Average
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Average
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Average
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Number of
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Grant Date
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Number of
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Grant Date
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Number of
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Grant Date
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Awards
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Fair Value
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Awards
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Fair Value
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Awards
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Fair Value
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Undistributed balance —
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As of January 1
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871,192
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$
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120.89
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1,099,752
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$
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102.65
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895,635
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$
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88.12
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Granted
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219,431
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160.17
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227,798
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158.88
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305,225
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124.89
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Distributed
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(367,428)
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99.06
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(323,938)
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83.08
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(277,358)
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84.74
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Performance change
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(37,534)
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155.98
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(106,760)
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127.70
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212,461
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109.74
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Forfeited
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(29,383)
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149.08
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(25,660)
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125.33
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(36,212)
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109.44
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As of December 31
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656,278
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$
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142.98
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871,192
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$
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120.89
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1,099,752
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$
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102.65
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| General Employees' Stock Purchase Plan (GESPP) |
General Employees’ Stock Purchase Plan
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2016
|
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2015
|
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2014
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Weighted
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Weighted
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Weighted
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Average
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Average
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Average
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Shares
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Exercise Price
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Shares
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Exercise Price
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Shares
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|
Exercise Price
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Options granted
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987,478
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$
|
140.06
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1,007,669
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$
|
133.52
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1,073,956
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$
|
118.73
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Options exercised
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(987,478)
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140.06
|
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(1,007,669)
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133.52
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(1,073,956)
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118.73
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Shares available for grant - December 31
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27,116,857
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28,104,335
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29,112,004
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