v2.4.1.9
Stock-based compensation (Tables)
 12 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of stock-based compensation expense allocation within the Consolidated Statements of Income
Total stock-based compensation expense recognized was as follows:
 
 
For Years Ended December 31,
 
 
2014
 
2013
 
2012
Stock-based compensation expense recognized in:
 
 
 
 
 
 
COR
 
$
48

 
$
49

 
$
48

R&D
 
62

 
67

 
71

SG&A
 
156

 
160

 
127

Acquisition charges
 
11

 
11

 
17

Total
 
$
277

 
$
287

 
$
263
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,
 
 
2014
 
2013
 
2012
Weighted average grant date fair value, per share
 
$
8.13

 
$
6.78

 
$
8.31

Weighted average assumptions used:
 
 
 
 

 
 

Expected volatility
 
22
%
 
26
%
 
30
%
Expected lives (in years)
 
7.3

 
7.4

 
7.1

Risk-free interest rates
 
2.45
%
 
1.43
%
 
1.40
%
Expected dividend yields
 
2.72
%
 
2.56
%
 
2.10
%
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 during 2014 were 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, 2013
 
64,930,540

 
$
28.98

 
20,892,022

 
$
29.94

Granted
 
14,053,185

 
44.11

 
3,184,237

 
44.71

Vested RSUs
 
—

 
—

 
(5,609,627
)
 
23.68

Forfeited and expired
 
(1,832,897
)
 
36.54

 
(1,162,817
)
 
33.22

Exercised
 
(19,503,382
)
 
27.75

 
—

 
—

Outstanding grants, December 31, 2014
 
57,647,446

 
32.84

 
17,303,815

 
34.47
Schedule of shares outstanding under stock option plans, by exercise price range
Summarized information about stock options outstanding at December 31, 2014, is as follows:
 
 
 
Stock Options Outstanding
 
Options Exercisable
Range of
Exercise Price
 
Number
Outstanding
(Shares)
 
Weighted Average
Remaining Contractual
Life (Years)
 
Weighted Average
Exercise Price
per Share
 
Number
Exercisable
(Shares)
 
Weighted Average
Exercise Price
per Share
$
14.47 to 20.00
 
4,061,577

 
4.0
 
$
14.98

 
4,061,577

 
$
14.98

 
20.01 to 30.00
 
11,270,125

 
3.7
 
25.47

 
11,250,200

 
25.46

 
30.01 to 40.00
 
28,910,636

 
6.5
 
33.00

 
12,288,339

 
33.14

 
40.01 to 50.00
 
13,399,020

 
9.1
 
44.10

 
1,750

 
42.66

 
50.01 to 55.41
 
6,088

 
9.9
 
55.41

 
—

 
—

 
14.47 to 55.41
 
57,647,446

 
6.4
 
32.84

 
27,601,866

 
27.34
Schedule of stock options that are vested and expected to vest, outstanding and exercisable
Summarized information as of December 31, 2014, 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)
 
56,328,323

 
27,601,866

Weighted average remaining contractual life (in years)
 
6.3

 
4.4

Weighted average exercise price per share
 
$
32.69

 
$
27.34

Intrinsic value (millions of dollars)
 
$
1,170

 
$
721


(a) Includes effects of expected forfeitures of approximately 1 million shares. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $1,189 million.
Schedule of director deferred compensation payable in shares
Director deferred stock activity during 2014 was as follows:
 
 
Director Deferred Stock (Shares)
Outstanding, December 31, 2013
 
129,264

New shares deferred
 
13,636

Issued
 
(7,178
)
Outstanding, December 31, 2014
 
135,722
Schedule of employee stock purchase plan transactions
Employee stock purchase plan transactions during 2014 were as follows:
 
 
Employee Stock
Purchase Plan
(Shares)
 
Exercise Price
Outstanding grants, December 31, 2013
 
485,408

 
$
36.64

Granted
 
1,673,479

 
41.60

Exercised
 
(1,784,184
)
 
39.44

Outstanding grants, December 31, 2014
 
374,703

 
45.46
Schedule of changes in treasury stock
The table below reflects the changes in our treasury shares:

 
 
Stock Options
 
RSUs
 
Treasury Shares
Balance, December 31, 2011
 
 
 
 
 
601,131,631

Repurchases
 
 
 
 
 
59,757,780

Shares used for:
 
 
 
 
 
 
Stock options/RSUs
 
(22,409,816
)
 
(4,182,928
)
 
 
Previously unissued common shares (a)
 
180,955

 
4,593

 
 
Stock applied to taxes
 
—

 
990,845

 
 
ESPP
 
(2,829,498
)
 
—

 
 
Director deferred stock
 
—

 
—

 
(6,592
)
Total issued
 
(25,058,359
)
 
(3,187,490
)
 
(28,245,849
)
Balance, December 31, 2012
 
 
 
 
 
632,636,970

 
 
 
 
 
 
 
Repurchases
 
 
 
 
 
77,564,013

Shares used for:
 
 
 
 
 
 
Stock options/RSUs
 
(45,507,711
)
 
(5,741,981
)
 
 
Stock applied to taxes
 
—

 
1,461,422

 
 
ESPP
 
(2,386,834
)
 
—

 
 
Director deferred stock
 
—

 
—

 
(12,909
)
Total issued
 
(47,894,545
)
 
(4,280,559
)
 
(52,175,104
)
Balance, December 31, 2013
 
 
 
 
 
658,012,970

 
 
 
 
 
 
 
Repurchases
 
 
 
 
 
61,665,209

Shares used for:
 
 
 
 
 
 
Stock options/RSUs
 
(19,503,382
)
 
(5,609,627
)
 
 
Stock applied to exercises or taxes
 
6,618

 
1,408,701

 
 
ESPP
 
(1,784,184
)
 
—

 
 
Director deferred stock
 
—

 
—

 
(7,178
)
Total issued
 
(21,280,948
)
 
(4,200,926
)
 
(25,481,874
)
Balance, December 31, 2014
 
 
 
 
 
694,189,127


(a) Beginning in 2013, only treasury shares were issued.
Schedule of shares reserved for issuance and available for future grant
Shares available for future grants and reserved for issuance are summarized below:
 
 
December 31, 2014
Shares
 
Long-Term Incentive
and Director
Compensation Plans
 
Employee Stock
Purchase Plan
 
Total
Reserved for issuance (a)
 
121,127,656

 
39,565,038

 
160,692,694

Shares to be issued upon exercise of outstanding options and RSUs (a)
 
(75,086,983
)
 
(374,703
)
 
(75,461,686
)
Available for future grants
 
46,040,673

 
39,190,335

 
85,231,008



(a) Includes 135,722 shares credited to directors’ deferred stock accounts that settle in shares of TI common stock. These shares are not included as grants outstanding at December 31, 2014.
Schedule of cash proceeds received from share-based payment awards
The effects on cash flows were as follows:

 
 
For Years Ended December 31,
 
 
2014
 
2013
 
2012
Proceeds from common stock transactions
 
$
616

 
$
1,314

 
$
523

Tax benefit realized from stock options exercised
 
218

 
227

 
133