Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation

Stock-based compensation cost included in Consolidated Statement of Earnings

($ in millions)

For the year ended December 31:	2011			2010			2009
Cost	$	120		$	94		$	94
Selling, general and administrative	514			488			417
Research, development and engineering	62			48			47
Other (income) and expense*	—			(1		)	—
Pre-tax stock-based compensation cost	697			629			558
Income tax benefits	(246		)	(240		)	(221		)
Total stock-based compensation cost	$	450		$	389		$	337

* Reflects the one-time effects of the sale of the Product Lifecycle Management activities.

Summary of option activity

	2011				2010				2009
	Weighted Average Exercise Price		Number of Shares Under Option		Weighted Average Exercise Price		Number of Shares Under Option		Weighted Average Exercise Price		Number of Shares Under Option
Balance at January 1	$	94	39,197,728		$	98	73,210,457		$	102	119,307,170
Options exercised	98		(18,144,309	)	101		(33,078,316	)	98		(28,100,192	)
Options canceled/expired	107		(391,097	)	108		(934,413	)	127		(17,996,521	)
Balance at December 31	$	90	20,662,322		$	94	39,197,728		$	98	73,210,457
Exercisable at December 31	$	90	20,662,322		$	94	39,197,728		$	98	72,217,126

Options outstanding and exercisable with exercise price ranges

	Options Outstanding and Exercisable
						Weighted Average
	Weighted		Number of	Aggregate		Remaining
	Average		Shares	Intrinsic		Contractual Life
Exercise Price Range	Exercise Price		Under Option	Value		(in Years)
$61–$85	$	78	8,079,175	$	857,827,574	1.3
$86–$105	97		11,061,890	957,308,722		2.6
$106 and over	106		1,521,257	118,474,466		2.0
	$	90	20,662,322	$	1,933,610,763	2.1

Summary of Restricted Stock Units activity

	2011				2010				2009
	Weighted				Weighted				Weighted
	Average		Number		Average		Number		Average		Number
	Grant Price		of Units		Grant Price		of Units		Grant Price		of Units
Balance at January 1	$	110	11,196,446		$	102	13,405,654		$	100	12,397,515
RSUs granted	154		5,196,802		122		3,459,303		105		4,432,449
RSUs released	106		(3,508,700	)	98		(5,102,951	)	99		(2,748,613	)
RSUs canceled/forfeited	122		(665,947	)	105		(565,560	)	101		(675,697	)
Balance at December 31	$	129	12,218,601		$	110	11,196,446		$	102	13,405,654

Summary of Performance Share Units activity

	2011				2010				2009
	Weighted				Weighted				Weighted
	Average		Number		Average		Number		Average		Number
	Grant Price		of Units		Grant Price		of Units		Grant Price		of Units
Balance at January 1	$	111	3,649,288		$	107	3,476,737		$	102	3,078,694
PSUs granted at target	154		1,055,687		117		1,239,468		101		1,568,129
Additional shares earned above target*	118		230,524		103		463,913		83		396,794
PSUs released	118		(1,189,765	)	103		(1,486,484	)	83		(1,440,099	)
PSUs canceled/forfeited	118		(58,743	)	108		(44,346	)	111		(126,781	)
Balance at December 31**	$	122	3,686,991		$	111	3,649,288		$	107	3,476,737

*Represents additional shares issued to employees after vesting of PSUs because final performance metrics exceeded specified targets.

**Represents the number of shares expected to be issued based on achievement of grant date performance targets. The actual number of shares issued depends on the company’s performance against specified targets over the vesting period.