EMPLOYEE STOCK BENEFIT PLANS

9 Months Ended

Sep. 30, 2013

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

Employee Stock Benefit Plans [Text Block]

EMPLOYEE STOCK BENEFIT PLANS

Stock-based compensation expense was as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
Dollars in Millions	2013		2012			2013		2012
Stock options	$	—	$	(1	)	$	1	$	4
Restricted stock	19		9			56		46
Market share units	5		4			21		17
Performance share units	21		14			62		41
Amylin stock options and restricted stock units	—		94			—		94
Total stock-based compensation expense	$	45	$	120		$	140	$	202
Income tax benefit	$	13	$	38		$	47	$	66

The acceleration of unvested stock options and restricted stock units in connection with the acquisition of Amylin resulted in stock-based compensation expense for three and nine months ended September 30, 2012.

In the nine months ended September 30, 2013, 2.4 million restricted stock units, 1.0 million market share units and 2.5 million performance share units were granted. The weighted-average grant date fair value was $37.76 for restricted stock units and $37.40 for market share and performance share units granted during the nine months ended September 30, 2013.

Substantially all restricted stock units vest ratably over a four year period. Market share units vest ratably over a four year period and the number of shares ultimately issued is based on share price performance. The fair value of market share units considers the probability of satisfying market conditions. The number of shares issued when performance share units vest is determined based on the achievement of annual performance goals. Performance share units do not vest until the end of the three year performance period.

Unrecognized compensation cost related to nonvested awards of $255 million is expected to be recognized over a weighted-average period of 2.5 years.