v2.4.0.6
Long-Term Incentive Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2012
Employee Stock-based Compensation Plans  
Components of Stock-based Compensation Expense (Net of Cancellations)
   2012 2011 2010
        
   (dollars in millions)
Deferred restricted stock units$ 864$ 1,057$ 1,075
Stock options  4  24  1
Performance-based stock units  29  32  39
 Total(1)$ 897$ 1,113$ 1,115

 

(1)       Amounts for 2012, 2011 and 2010 include $31 million, $186 million and $222 million, respectively, related to equity awards that were granted in 2013, 2012 and 2011, respectively, to employees who satisfied retirement-eligible requirements under the award terms that do not contain a future service period. The decrease in 2012 is due to the introduction of a new vesting requirement in certain 2012 performance year award terms for employees who satisfied the existing retirement eligible provisions to provide a one-year advance notice of their intention to retire from the Company. As such, these awards will begin to be expensed in 2013 after the grant date over the appropriate service period (see Note 2).

Activity Relating to Vested and Unvested RSUs
   2012
   Number of Shares Weighted Average Grant Date Fair Value
RSUs at beginning of period  111$ 28.82
Granted  54  18.09
Conversions to common stock  (38)  28.69
Canceled  (5)  24.77
RSUs at end of period(1)  122$ 24.29

 

(1)       At December 31, 2012, approximately 112 million RSUs with a weighted average grant date fair value of $24.44 were vested or expected to vest.

 
Activity Relating to Unvested RSUs
   2012
   Number of Shares Weighted Average Grant Date Fair Value
Unvested RSUs at beginning of period  78$ 28.32
Granted  54  18.09
Vested  (44)  24.64
Canceled  (5)  24.74
Unvested RSUs at end of period(1)  83$ 23.83

 

(1)       Unvested RSUs represent awards where recipients have yet to satisfy either the explicit vesting terms or retirement-eligible requirements. At December 31, 2012, approximately 73 million unvested RSUs with a weighted average grant date fair value of $24.00 were expected to vest.

 
Stock Options Valuation Assumptions
Grant Year Risk-Free Interest Rate Expected Life Expected Stock Price Volatility Expected Dividend Yield
2011 2.1% 5.0 years 32.7% 1.5%
Activity Relating to Stock Options
   2012
   Number of Options Weighted Average Exercise Price
Options outstanding at beginning of period  57$ 48.15
Canceled  (15)  47.49
Options outstanding at end of period(1)  42  48.37
Options exercisable at end of period  39  49.93

 

(1)       At December 31, 2012, approximately 42 million options with a weighted average exercise price of $48.58 were vested.

 

At December 31, 2012 Options Outstanding Options Exercisable
Range of Exercise Prices Number Outstanding Weighted Average Exercise Price Average Remaining Life (Years) Number Exercisable Weighted Average Exercise Price Average Remaining Life (Years)
              
$28.00 - $39.99  12$ 34.50  1.4  9$ 36.15  0.1
$40.00 - $49.99  18  46.57  1.1  18  46.57  1.1
$50.00 - $59.99  1  52.05  3.0  1  52.05  3.0
$60.00 - $76.99  11  66.75  3.9  11  66.75  3.9
Total  42      39    
Performance-based Stock Units Formular Table
  Minimum Maximum
Year Average ROE Multiplier Average ROE Multiplier
2012 Less than 6% 0.0 12% or more 1.5
2011 Less than 7.5% 0.0 18% or more 2.0
2010 Less than 7.5% 0.0 18% or more 2.0

    Minimum Maximum 
Year Metrics TSR Multiplier TSR Multiplier 
            
2012 Comparison of TSR Below Down to 0.0 Above Up to 1.5 
2011 Ranking within the comparison group Rank 9 or 10 0.0 Rank 1 2.0 
2010 Ranking within the comparison group Rank 9 or 10 0.0 Rank 1 2.0 
Performance-Based Stock Unit Awards Valuation Assumptions
Grant Year Risk-Free Interest Rate Expected Stock Price Volatility Expected Dividend Yield
2012 0.4% 56.0% 1.1%
2011 1.0% 89.0% 1.5%
2010 1.5% 89.9% 0.7%
Performance-based Stock Units Roll Forward Table
   2012
   Number of Shares
   (in millions)
PSUs at beginning of period  4
Granted  1
PSUs at end of period  5
Components of Deferred Compensation Expense (Net of Cancellations)
   2012 2011 2010
        
   (dollars in millions)
Deferred cash-based awards(1)$ 1,815$ 1,809$ 771
Return on referenced investments  435  132  465
 Total$ 2,250$ 1,941$ 1,236

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(1)       Amounts for 2012, 2011 and 2010 include $93 million, $113 million and $80 million, respectively, related to deferred awards that were granted in 2013, 2012 and 2011, respectively, to employees who satisfied retirement-eligible requirements under the award terms that do not contain a service period.