Stock Compensation (Tables)

Total stock compensation expense recognized is as follows:

	For Years Ended December 31,
	2016		2015		2014
COR	$	40	$	47	$	48
R&D		60		60		62
SG&A		152		169		156
Acquisition charges		—		10		11
Total	$	252	$	286	$	277

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,
	2016			2015			2014
Weighted average grant date fair value, per share	$	10.03		$	9.49		$	8.13
Weighted average assumptions used:
Expected volatility		25	%		22	%		22	%
Expected lives (in years)		7.3			7.3			7.3
Risk-free interest rates		1.72	%		1.64	%		2.45	%
Expected dividend yields		2.87	%		2.52	%		2.72	%

Stock option and RSU transactions under our long-term incentive and director compensation plans are as follows:

	Stock Options					RSUs
				Weighted Average					Weighted Average
				Exercise Price					Grant Date Fair
	Shares			per Share		Shares			Value per Share
Outstanding grants, December 31, 2015		56,773,983		$	37.45		16,055,542		$	38.51
Granted		10,974,304			53.02		2,337,976			53.98
Vested RSUs		—			—		(5,639,666	)		31.64
Forfeited and expired		(965,893	)		48.12		(421,473	)		42.63
Exercised		(14,516,606	)		32.51		—			—
Outstanding grants, December 31, 2016		52,265,788			41.89		12,332,379			44.44

Summarized information about stock options outstanding as of December 31, 2016, is as follows:

		Stock Options Outstanding						Options Exercisable
		Number		Weighted Average		Weighted Average		Number		Weighted Average
Exercise Price		Outstanding		Remaining Contractual		Exercise Price		Exercisable		Exercise Price
Range		(Shares)		Life (Years)		per Share		(Shares)		per Share
$	14.47 to 20.00		1,996,801		2.1	$	14.96		1,996,801	$	14.96
	20.01 to 30.00		5,130,177		2.6		24.59		5,130,177		24.59
	30.01 to 40.00		14,126,454		5.3		33.06		11,328,597		33.12
	40.01 to 50.00		9,854,196		7.1		44.10		3,544,639		44.10
	50.01 to 60.00		21,103,396		8.6		53.44		2,017,172		53.96
	60.01 to 71.27		54,764		9.7		71.00		—		—
	14.47 to 71.27		52,265,788		6.6		41.89		24,017,386		33.16

Summarized information as of December 31, 2016, 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		Options
	Expected to Vest) (a)		Exercisable
Number of outstanding (shares)		50,994,139		24,017,386
Weighted average remaining contractual life (in years)		6.5		4.9
Weighted average exercise price per share	$	41.63	$	33.16
Intrinsic value (millions of dollars)	$	1,598	$	956

(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 $1,624 million.

Director deferred stock activity is as follows:

	Director Deferred Stock
	(Shares)
Outstanding, December 31, 2015		142,913
New shares deferred		14,319
Issued		(13,587	)
Outstanding, December 31, 2016		143,645

Employee stock purchase plan transactions are as follows:

	Employee Stock
	Purchase Plan
	(Shares)			Exercise Price
Outstanding grants, December 31, 2015		372,566		$	46.19
Granted		1,273,036			55.51
Exercised		(1,362,202	)		51.50
Outstanding grants, December 31, 2016		283,400			62.55

The following table reflects the changes in our treasury shares:

	Stock Options			RSUs			Treasury Shares
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

Repurchases								51,384,339
Shares used for:
Stock options/RSUs		(11,953,455	)		(3,386,415	)
Stock applied to exercises or taxes		8,562			845,164
ESPP		(1,532,264	)		—
Director deferred stock		—			—			(7,531	)
Total issued		(13,477,157	)		(2,541,251	)		(16,018,408	)
Balance, December 31, 2015								729,547,527

Repurchases								35,480,036
Shares used for:
Stock options/RSUs		(14,516,606	)		(5,639,666	)
Stock applied to exercises or taxes		—			1,336,476
ESPP		(1,362,202	)		—
Director deferred stock		—			—			(13,587	)
Total issued		(15,878,808	)		(4,303,190	)		(20,181,998	)
Balance, December 31, 2016								744,831,978

Shares available for future grants and reserved for issuance are as follows:

	December 31, 2016
	Long-Term			Director			Employee Stock
Shares	Incentive Plans			Compensation Plans (a)			Purchase Plan			Total
Reserved for issuance		123,296,771			2,341,272			36,670,572			162,308,615
Shares to be issued upon exercise of outstanding options and RSUs		(63,715,186	)		(1,026,626	)		(283,400	)		(65,025,212	)
Available for future grants		59,581,585			1,314,646			36,387,172			97,283,403

(a)	Includes 143,645 shares credited to directors’ deferred stock accounts that settle in shares of TI common stock. These shares are not included as grants outstanding as of December 31, 2016.

The effects on cash flows are as follows:

	For Years Ended December 31,
	2016			2015			2014
Proceeds from common stock transactions (a)	$	472		$	396		$	554

Tax benefit realized from stock compensation	$	255		$	171		$	218
Reduction to deferred income tax asset		(105	)		(81	)		(108	)
Excess tax benefit for stock compensation	$	150		$	90		$	110

(a)	Net of taxes paid for employee shares withheld of $70 million in 2016, $46 million in 2015 and $62 million in 2014.