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1.0.0.3 false Incentive Program false 1 $ false false iso4217_USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 iso4217_USD_per_shares Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares 0 shares Standard http://www.xbrl.org/2003/instance shares 0 5 Incentive Program 3 us-gaap_DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <div> 14. Incentive Program The 2003 Incentive Program provides for grants of stock options, stock appreciation rights (SARs), restricted stock and other forms of award. Awards may be granted to eligible employees of the Corporation and those affiliates at least 50 percent owned. Outstanding awards are subject to certain forfeiture provisions contained in the program or award instrument. The maximum number of shares of stock that may be issued under the 2003 Incentive Program is 220 million. Awards that are forfeited or expire, or are settled in cash, do not count against this maximum limit. The 2003 Incentive Program does not have a specified term. New awards may be made until the available shares are depleted, unless the Board terminates the plan early. At the end of 2009, remaining shares available for award under the 2003 Incentive Program were 152,591 thousand. As under earlier programs, options and SARs may be granted at prices not less than 100 percent of market value on the date of grant and have a maximum life of 10 years. Most of the options and SARs normally first become exercisable one year following the date of grant. All remaining stock options and SARs outstanding were granted prior to 2002. Long-term incentive awards totaling 10,133 thousand, 10,116 thousand and 10,226 thousand of restricted (nonvested) common stock and restricted (nonvested) common stock units were granted in 2009, 2008 and 2007, respectively. These shares are issued to employees from treasury stock. The total compensation expense is recognized over the requisite service period. The units that are settled in cash are recorded as liabilities and their changes in fair value are recognized over the vesting period. During the applicable restricted periods, the shares may not be sold or transferred and are subject to forfeiture. The majority of the awards have graded vesting periods, with 50 percent of the shares in each award vesting after three years and the remaining 50 percent vesting after seven years. A small number of awards granted to certain senior executives have vesting periods of five years for 50 percent of the award and of 10 years or retirement, whichever occurs later, for the remaining 50 percent of the award.   The Corporation has purchased shares in the open market and through negotiated transactions to offset shares issued in conjunction with benefit plans and programs. Purchases may be discontinued at any time without prior notice. In 2002, the Corporation began issuing restricted stock as share-based compensation in lieu of stock options. Compensation expense for these awards is based on the price of the stock at the date of grant and has been recognized in income over the requisite service period. Prior to 2002, the Corporation issued stock options as share-based compensation and since these awards vested prior to the effective date of current authoritative guidance, they continue to be accounted for under the prior prescribed method. Under this method, compensation expense for awards granted in the form of stock options is measured at the intrinsic value of the options (the difference between the market price of the stock and the exercise price of the options) on the date of grant. Since these two prices were the same on the date of grant, no compensation expense has been recognized in income for these awards. The following tables summarize information about restricted stock and restricted stock units for the year ended December 31, 2009.   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="79%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom" colspan="5" align="center">2009 <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> </tr> <tr> <td valign="bottom" nowrap="nowrap"> Restricted stock and units outstanding                     <hr style="COLOR: #000000" align="left" size="1" width="254" noshade="noshade" /></td> <td valign="bottom">  </td> <td valign="bottom" align="center">Shares <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" colspan="2" nowrap="nowrap" align="center"> Weighted Average Grant-Date Fair Value per Share <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom" align="center">(thousands)</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" colspan="2"> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Issued and outstanding at January 1 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">43,701</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">61.88</td> </tr> <tr> <td valign="top"> 2008 award issued in 2009 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">10,109</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">78.24</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Vested </td> <td valign="bottom">  </td> <td valign="bottom" align="right">(10,229</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">54.03</td> </tr> <tr> <td valign="top"> Forfeited </td> <td valign="bottom">  </td> <td valign="bottom" align="right">(78</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">65.60</td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> <td valign="bottom"> <hr style="COLOR: #ffffff" align="left" size="1" width="0" noshade="noshade" /></td> <td valign="bottom"> </td> <td valign="bottom"> <hr style="COLOR: #000000" align="right" size="1" noshade="noshade" /></td> <td valign="bottom"> <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Issued and outstanding at December 31 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">43,503</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">67.52</td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> <hr style="COLOR: #000000" size="3" noshade="noshade" /></td> <td valign="bottom"> <hr style="COLOR: #ffffff" align="left" size="3" width="0" noshade="noshade" /></td> <td valign="bottom"> </td> <td valign="bottom"> <hr style="COLOR: #000000" align="right" size="3" noshade="noshade" /></td> <td valign="bottom"> <hr style="COLOR: #000000" size="3" noshade="noshade" /></td> </tr> </table>   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="82%"></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> <td valign="bottom" width="2%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom" nowrap="nowrap"> Grant value of restricted stock and units                  <hr style="COLOR: #000000" align="left" size="1" width="252" noshade="noshade" /></td> <td valign="bottom">  </td> <td valign="bottom" colspan="2" align="center">2009 <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> <td valign="bottom">  </td> <td valign="bottom" colspan="2" align="center">2008 <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> <td valign="bottom">  </td> <td valign="bottom" colspan="2" align="center">2007 <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Grant price </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">75.40</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">78.24</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">87.14</td> </tr> <tr> <td height="8"></td> <td height="8" colspan="9"></td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom" colspan="8" align="center">(millions of dollars)</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Value at date of grant: </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" colspan="7"> </td> </tr> <tr> <td valign="top"> Restricted stock and units settled in stock </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">711</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">735</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">827</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Units settled in cash </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">53</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">56</td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">64</td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> <hr style="COLOR: #000000" align="right" size="1" noshade="noshade" /></td> <td valign="bottom"> <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> <td valign="bottom">  </td> <td valign="bottom"> <hr style="COLOR: #000000" align="right" size="1" noshade="noshade" /></td> <td valign="bottom"> <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> <td valign="bottom">  </td> <td valign="bottom"> <hr style="COLOR: #000000" align="right" size="1" noshade="noshade" /></td> <td valign="bottom"> <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Total value </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">764</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">791</td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">891</td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> <hr style="COLOR: #000000" align="right" size="3" noshade="noshade" /></td> <td valign="bottom"> <hr style="COLOR: #000000" size="3" noshade="noshade" /></td> <td valign="bottom">  </td> <td valign="bottom"> <hr style="COLOR: #000000" align="right" size="3" noshade="noshade" /></td> <td valign="bottom"> <hr style="COLOR: #000000" size="3" noshade="noshade" /></td> <td valign="bottom">  </td> <td valign="bottom"> <hr style="COLOR: #000000" align="right" size="3" noshade="noshade" /></td> <td valign="bottom"> <hr style="COLOR: #000000" size="3" noshade="noshade" /></td> </tr> </table> As of December 31, 2009, there was $2,038 million of unrecognized compensation cost related to the nonvested restricted awards. This cost is expected to be recognized over a weighted-average period of 4.5 years. The compensation cost charged against income for the restricted stock and restricted units was $723 million, $648 million and $590 million for 2009, 2008 and 2007, respectively. The income tax benefit recognized in income related to this compensation expense was $76 million, $75 million and $81 million for the same periods, respectively. The fair value of shares and units vested in 2009, 2008 and 2007 was $763 million, $438 million and $581 million, respectively. Cash payments of $41 million, $25 million and $29 million for vested restricted stock units settled in cash were made in 2009, 2008 and 2007, respectively.   Changes that occurred in stock options in 2009 are summarized below (shares in thousands):   <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="66%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom" colspan="5" align="center">2009 <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> <td valign="bottom">  </td> <td valign="bottom" rowspan="2" align="center">Weighted Average Remaining Contractual Term <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> </tr> <tr> <td valign="bottom" nowrap="nowrap"> Stock options         <hr style="COLOR: #000000" align="left" size="1" width="92" noshade="noshade" /></td> <td valign="bottom">  </td> <td valign="bottom" align="center">Shares <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" colspan="2" align="center">Avg. Exercise Price <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> <td valign="bottom">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Outstanding at January 1 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">59,993</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">40.90</td> <td valign="bottom">  </td> <td valign="bottom"> </td> </tr> <tr> <td valign="top"> Exercised </td> <td valign="bottom">  </td> <td valign="bottom" align="right">(18,500</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">40.85</td> <td valign="bottom">  </td> <td valign="bottom"> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Forfeited </td> <td valign="bottom">  </td> <td valign="bottom" align="right">(20</td> <td valign="bottom" nowrap="nowrap">) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">41.85</td> <td valign="bottom">  </td> <td valign="bottom"> </td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> <hr style="COLOR: #000000" size="1" noshade="noshade" /></td> <td valign="bottom"> <hr style="COLOR: #ffffff" align="left" size="1" width="0" noshade="noshade" /></td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Outstanding at December 31 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">41,473</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">40.92</td> <td valign="bottom">  </td> <td valign="bottom" align="center">1.4 Years</td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> <hr style="COLOR: #000000" size="3" noshade="noshade" /></td> <td valign="bottom"> <hr style="COLOR: #ffffff" align="left" size="3" width="0" noshade="noshade" /></td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom"> </td> </tr> <tr> <td height="8"></td> <td height="8" colspan="3"></td> <td height="8" colspan="3"></td> <td height="8" colspan="2"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> Exercisable at December 31 </td> <td valign="bottom">  </td> <td valign="bottom" align="right">41,473</td> <td valign="bottom" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">40.92</td> <td valign="bottom">  </td> <td valign="bottom" align="center">1.4 Years</td> </tr> </table> No compensation expense was recognized for stock options in 2009, 2008 and 2007, as all remaining outstanding stock options were granted prior to 2002 and are fully vested. Cash received from stock option exercises was $752 million, $753 million and $1,079 million for 2009, 2008 and 2007, respectively. The cash tax benefit realized for the options exercised was $164 million, $273 million and $304 million for 2009, 2008 and 2007, respectively. The aggregate intrinsic value of stock options exercised in 2009, 2008 and 2007 was $563 million, $894 million and $1,359 million, respectively. The intrinsic value for the balance of outstanding stock options at December 31, 2009, was $1,131 million. </div> 14. Incentive Program The 2003 Incentive Program provides for grants of stock options, stock appreciation rights (SARs), restricted stock and other forms of false false No definition available. No authoritative reference available. false false 1 1 false UnKnown UnKnown UnKnown false true