Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Stock-Based Compensation

Stock-based compensation cost included in Consolidated Statement of Earnings

($ in millions)
For the year ended December 31:	2014		2013		2012
Cost	$	121	$	122	$	132
Selling, general and administrative		350		435		498
Research, development and engineering		54		57		59
Other (income) and expense*		(13)		—		(1)
Pre-tax stock-based compensation cost		512		614		688
Income tax benefits		(174)		(213)		(240)
Net stock-based compensation cost	$	338	$	402	$	448
* Reflects the one-time effects related to the divestitures of the customer care and industry standard server businesses in 2014.

Summary of Restricted Stock Units activity

	2014			2013			2012
	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	$	166	8,635,317	$	148	9,841,461	$	129	12,218,601
RSUs granted		172	2,525,947		189	2,541,081		184	2,635,772
RSUs released		157	(2,401,761)		131	(2,952,363)		117	(4,338,787)
RSUs canceled/forfeited		167	(1,025,226)		154	(794,862)		139	(674,125)
Balance at December 31	$	171	7,734,277	$	166	8,635,317	$	148	9,841,461

Summary of Performance Share Units activity

PSUs
		2014			2013			2012
		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		$	178	2,824,294	$	151	3,172,201	$	122	3,686,991
PSUs granted at target			180	1,430,098		195	869,875		185	1,004,003
Additional shares earned
	above target*		157	29,960		118	152,069		102	550,399
PSUs released			157	(1,027,181)		118	(1,321,784)		102	(1,998,746)
PSUs canceled/forfeited			187	(116,464)		170	(48,067)		131	(70,446)
Balance at December 31**		$	185	3,140,707	$	178	2,824,294	$	151	3,172,201

*    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 will dependon final performance against specified targets over the vesting period.

Summary of option activity

	2014			2013			2012
	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	$	97	5,622,951	$	94	11,389,721	$	90	20,662,322
Options exercised		97	(3,740,252)		90	(5,585,127)		86	(9,080,170)
Options canceled/expired		95	(131,750)		86	(181,643)		75	(192,431)
Balance at December 31	$	97	1,750,949	$	97	5,622,951	$	94	11,389,721
Exercisable at December 31	$	97	1,750,949	$	97	5,622,951	$	94	11,389,721

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	351,690	$	27,409,244	1.2
$86 and over		100	1,399,259		84,243,181	0.7
	$	97	1,750,949	$	111,652,425	0.8