Share-Based Compensation Plans

9 Months Ended

Sep. 30, 2011

Share-Based Compensation Plans [Abstract]

Share-Based Compensation Plans

11. Share-Based Compensation Plans

     The Company has share-based compensation plans under which employees and non-employee directors may be granted restricted stock units (“RSUs”). In addition, the Company grants options to purchase shares of Company common stock at the fair market value at the time of grant and performance share units (“PSUs”) to certain management-level employees. The Company recognizes the fair value of share-based compensation in net income on a straight-line basis over the requisite service period.

     The following table provides amounts of share-based compensation cost recorded in the Consolidated Statement of Income:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
($ in millions)	2011			2010			2011			2010
Pretax share-based compensation expense	$	86		$	125		$	287		$	400
Income tax benefit		(30	)		(42	)		(99	)		(136	)
Total share-based compensation expense, net of taxes	$	56		$	83		$	188		$	264

     During the first nine months of 2011 and 2010, the Company granted 8 million RSUs with a weighted-average grant date fair value of $36.44 per RSU and 10 million RSUs with a weighted-average grant date fair value of $33.90 per RSU, respectively.

     During the first nine months of 2011 and 2010, the Company granted 8 million options with a weighted-average exercise price of $36.55 per option and 7 million options with a weighted-average exercise price of $34.27 per option, respectively. The weighted-average fair value of options granted for the first nine months of 2011 and 2010 was $5.37 and $7.99 per option, respectively, and was determined using the following assumptions:

	Nine Months Ended
	September 30,
	2011			2010
Expected dividend yield		4.3	%		4.1	%
Risk-free interest rate		2.6	%		2.8	%
Expected volatility		23.2	%		33.7	%
Expected life (years)		7.0			6.8

     At September 30, 2011, there was $483 million of total pretax unrecognized compensation expense related to nonvested stock options, RSU and PSU awards which will be recognized over a weighted-average period of 1.9 years. For segment reporting, share-based compensation costs are unallocated expenses.