Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Stock-Based Compensation

Stock-based compensation cost included in Consolidated Statement of Earnings

($ in millions)

For the year ended December 31:	2012			2011			2010
Cost	$	132		$	120		$	94
Selling, general and administrative	498			514			488
Research, development and engineering	59			62			48
Other (income) and expense	(1		)	—			(1		)
Pre-tax stock-based compensation cost	688			697			629
Income tax benefits	(240		)	(246		)	(240		)
Total stock-based compensation cost	$	448		$	450		$	389

Summary of option activity

	2012				2011				2010
	Weighted		Number of		Weighted		Number of		Weighted		Number of
	Average		Shares		Average		Shares		Average		Shares
	Exercise Price		Under Option		Exercise Price		Under Option		Exercise Price		Under Option
Balance at January 1	$	90	20,662,322		$	94	39,197,728		$	98	73,210,457
Options exercised	86		(9,080,170	)	98		(18,144,309	)	101		(33,078,316	)
Options canceled/expired	75		(192,431	)	107		(391,097	)	108		(934,413	)
Balance at December 31	$	94	11,389,721		$	90	20,662,322		$	94	39,197,728
Exercisable at December 31	$	94	11,389,721		$	90	20,662,322		$	94	39,197,728

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)
$85 and under	$	83	3,222,177	$	350,989,003	0.9
$86–$105	97		7,532,868	709,980,689		1.9
$106 and over	106		634,676	54,314,359		1.1
	$	94	11,389,721	$	1,115,284,051	1.6

Summary of Restricted Stock Units activity

	2012				2011				2010
	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	$	129	12,218,601		$	110	11,196,446		$	102	13,405,654
RSUs granted	184		2,635,772		154		5,196,802		122		3,459,303
RSUs released	117		(4,338,787	)	106		(3,508,700	)	98		(5,102,951	)
RSUs canceled/forfeited	139		(674,125	)	122		(665,947	)	105		(565,560	)
Balance at December 31	$	148	9,841,461		$	129	12,218,601		$	110	11,196,446

Summary of Performance Share Units activity

	2012				2011				2010
	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	$	122	3,686,991		$	111	3,649,288		$	107	3,476,737
PSUs granted at target	185		1,004,003		154		1,055,687		117		1,239,468
Additional shares earned above target*	102		550,399		118		230,524		103		463,913
PSUs released	102		(1,998,746	)	118		(1,189,765	)	103		(1,486,484	)
PSUs canceled/forfeited	131		(70,446	)	118		(58,743	)	108		(44,346	)
Balance at December 31**	$	151	3,172,201		$	122	3,686,991		$	111	3,649,288

* 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.