STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2017

STOCK-BASED COMPENSATION

Stock-based compensation cost included in income from continuing operations

($ in millions)

For the year ended December 31:	2017			2016			2015
Cost	$	91		$	88		$	100
Selling, general and administrative	384			401			322
Research, development and engineering	59			55			51
Other (income) and expense*	—			—			(6		)
Pre-tax stock-based compensation cost	534			544			468
Income tax benefits	(131		)	(179		)	(156		)
Net stock-based compensation cost	$	403		$	364		$	312

*Reflects the one-time effects related to divestitures.

Summary of Restricted Stock Units activity

	2017				2016				2015
	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	$	147	8,899,092		$	159	7,527,341		$	171	7,734,277
RSUs granted	137		3,540,949		140		3,985,870		143		4,230,186
RSUs released	153		(3,032,531	)	174		(1,860,660	)	164		(3,567,495	)
RSUs canceled/forfeited	147		(852,247	)	158		(753,459	)	167		(869,627	)
Balance at December 31	$	141	8,555,263		$	147	8,899,092		$	159	7,527,341

Summary of Performance Share Units activity

	2017				2016				2015
	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	$	155	2,874,758		$	173	2,928,932		$	185	3,140,707
PSUs granted at target	137		824,875		140		990,336		153		1,137,242
Performance adjustments*	175		(623,245	)	194		(387,457	)	185		(168,055	)
PSUs released	175		(293,236	)	194		(419,759	)	185		(840,552	)
PSUs canceled/forfeited	144		(133,839	)	174		(237,294	)	184		(340,410	)
Balance at December 31**	$	144	2,649,313		$	155	2,874,758		$	173	2,928,932

*Represents the change in shares issued to employees after vesting of PSUs because final performance metrics were above or below 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 depend on final performance against specified targets over the vesting period.

Summary of option activity

	2017				2016				2015
	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	$	137	1,613,923		$	94	479,774		$	97	1,750,949
Options granted	—		—		140		1,500,000		—		—
Options exercised	103		(106,132	)	91		(361,088	)	98		(1,214,109	)
Options canceled/expired	103		(7,791	)	86		(4,763	)	100		(57,066	)
Balance at December 31	$	140	1,500,000		$	137	1,613,923		$	94	479,774
Exercisable at December 31	$	—	—		$	103	113,923		$	94	479,774

Options Outstanding by Exercise Price

	Options Outstanding
						Weighted-Average
	Weighted-		Number of	Aggregate		Remaining
	Average		Shares	Intrinsic		Contractual Life
Exercise Price Range	Exercise Price		Under Option	Value		(in Years)
$129–$154	$	140	1,500,000	$	39,236,250	8.1