SHAREHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

The fair value of stock options is determined using the Black-Scholes model. The weighted-average assumptions used in estimating the fair value of stock options granted during each year, along with the weighted-average grant-date fair values, were as follows:

years ended December 31	2016			2015			2014
Expected volatility		20	%		20	%		24	%
Expected life (in years)		5.5			5.5			5.5
Risk-free interest rate		1.4	%		1.7	%		1.7	%
Dividend yield		1.2	%		2.9	%		2.8	%
Fair value per stock option	$	7		$	9		$	12

Summary of Stock Option Activity

The following table summarizes stock option activity for the year ended December 31, 2016 and the outstanding stock options as of December 31, 2016.

(options and aggregate intrinsic values in thousands)	Options		Weighted- average exercise price		Weighted- average remaining contractual term (in years)		Aggregate intrinsic value
Outstanding as of January 1, 2016		35,799	$	34.16
Granted		6,939	$	39.70
Exercised		(7,705)	$	31.50
Forfeited		(1,831)	$	38.14
Expired		(126)	$	32.87
Outstanding as of December 31, 2016		33,076	$	35.73		6.2	$	284,821
Vested or expected to vest as of December 31, 2016		32,502	$	35.67		6.2	$	281,976
Exercisable as of December 31, 2016		18,707	$	33.71		4.7	$	198,873

Summary of Stock Option Activity

The following table summarizes nonvested RSU activity for the year ended December 31, 2016.

(share units in thousands)	Share units		Weighted- average grant-date fair value
Nonvested RSUs as of January 1, 2016		3,078	$	37.62
Granted		1,229	$	40.32
Vested		(1,271)	$	23.14
Forfeited		(338)	$	33.20
Nonvested RSUs as of December 31, 2016		2,698	$	32.90

Performance Stock Units Fair Value

The assumptions used in estimating the fair value of these PSUs granted during the period, along with the grant-date fair values, were as follows:

years ended December 31	2016		2015		2014
Baxter volatility		20%		19%		20%
Peer group volatility	17%-51%		16%-38%		13%-58%
Correlation of returns	0.22-0.73		0.24-0.55		0.23-0.66
Risk-free interest rate		1.0%		1.1%		0.7%
Fair value per PSU	$	51	$	46	$	57

Summary of Nonvested Performance Stock Unit Activity

The following table summarizes nonvested PSU activity for the year ended December 31, 2016.

(share units in thousands)	Share units			Weighted- average grant-date fair value
Nonvested PSUs as of January 1, 2016		300		$	36.11
Granted		282		$	45.83
Vested		(260	)	$	34.42
Forfeited		(44	)	$	42.27
Nonvested PSUs as of December 31, 2016		278		$	46.82