Employee Benefit Plans

9 Months Ended

Sep. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Combined Incentive Plan Activity

Activity under all stock option incentive plans is set forth below:

	Options Outstanding
	Number of Shares		Weighted Average Exercise Price per Share		Weighted Average Grant-Date Fair Value per Share
	(In millions, except per share data)
Balance at December 31, 2011	66		$	27.47	$	15.10
Options assumed	4		9.71		27.54
Options cancelled	(1	)	35.82		12.83
Options exercised	(9	)	16.83		11.85
Balance at September 30, 2012	60		$	27.77	$	14.93

Restricted stock unit activity is set forth below:

	Restricted Stock Units Outstanding
	Number of Shares		Weighted Average Grant-Date Fair Value per Share
	(In millions, except per share data)
Balance at December 31, 2011	22		$	32.88
Restricted stock units granted	12		36.07
Restricted stock units assumed	6		37.54
Restricted stock units cancelled	(1	)	34.63
Restricted stock units vested	(11	)	28.43
Balance at September 30, 2012	28		$	35.26

The per share fair values of rights granted in connection with the employee stock purchase plan and stock options assumed from acquisitions in the nine months ended September 30, 2012 have been estimated with the following weighted average assumptions:

	Employee Stock Purchase Rights			Assumed Employee Stock Options
Expected life (in years)	0.72			1.39
Implied volatility	0.36			0.41
Risk-free interest rate	0.15		%	0.22		%
Expected dividend yield	1.12		%	1.00		%
Weighted average fair value	$	9.08		$	27.54

Stock-Based Compensation Expense

The following table presents details of total stock-based compensation expense that is included in each functional line item in the unaudited condensed consolidated statements of income:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
	(In millions)
Cost of product revenue	$	6	$	6	$	21	$	19
Research and development	89		85		278		284
Selling, general and administrative	33		30		116		99
	$	128	$	121	$	415	$	402

The following table presents details of unearned stock-based compensation currently estimated to be expensed in the remainder of 2012 through 2016 related to unvested share-based payment awards:

	2012		2013		2014		2015		2016		Total
					(In millions)
Unearned stock-based compensation	$	120	$	384	$	254	$	131	$	22	$	911

The weighted-average period over which the unearned stock-based compensation is expected to be recognized is 1.40 years.