Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2013

Stock-Based Compensation

Stock-based compensation cost included in Consolidated Statement of Earnings

($ in millions)
For the year ended December 31:	2013		2012		2011
Cost	$	122	$	132	$	120
Selling, general and administrative		435		498		514
Research, development and engineering		57		59		62
Other (income) and expense		—		(1)		—
Pre-tax stock-based compensation cost		614		688		697
Income tax benefits		(213)		(240)		(246)
Total stock-based compensation cost	$	402	$	448	$	450

Summary of option activity

	2013			2012			2011
	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	$	94	11,389,721	$	90	20,662,322	$	94	39,197,728
Options exercised		90	(5,585,127)		86	(9,080,170)		98	(18,144,309)
Options canceled/expired		86	(181,643)		75	(192,431)		107	(391,097)
Balance at December 31	$	97	5,622,951	$	94	11,389,721	$	90	20,662,322
Exercisable at December 31	$	97	5,622,951	$	94	11,389,721	$	90	20,662,322

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	$	82	468,427	$	49,244,658	2.1
$86–$105		98	4,908,689		440,012,196	1.1
$106 and over		106	245,835		20,055,475	0.2
	$	97	5,622,951	$	509,312,330	1.1

Summary of Restricted Stock Units activity

RSUs

	2013			2012			2011
	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	$	148	9,841,461	$	129	12,218,601	$	110	11,196,446
RSUs granted		189	2,541,081		184	2,635,772		154	5,196,802
RSUs released		131	(2,952,363)		117	(4,338,787)		106	(3,508,700)
RSUs canceled/forfeited		154	(794,862)		139	(674,125)		122	(665,947)
Balance at December 31	$	166	8,635,317	$	148	9,841,461	$	129	12,218,601

Summary of Performance Share Units activity

PSUs
		2013			2012			2011
		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		$	151	3,172,201	$	122	3,686,991	$	111	3,649,288
PSUs granted at target			195	869,875		185	1,004,003		154	1,055,687
Additional shares earned
	above target*		118	152,069		102	550,399		118	230,524
PSUs released			118	(1,321,784)		102	(1,998,746)		118	(1,189,765)
PSUs canceled/forfeited			170	(48,067)		131	(70,446)		118	(58,743)
Balance at December 31**		$	178	2,824,294	$	151	3,172,201	$	122	3,686,991

*    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.