Stock-Based Compensation:

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation:

Stock-Based Compensation:

5. Stock-Based Compensation: Stock-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized over the employee requisite service period.  The following table presents total stock-based compensation cost included in the Consolidated Statement of Earnings:

(Dollars in millions)
For the three months ended March 31:	2012			2011
Cost	$	34		$	24
Selling, general and administrative	119			130
Research, development and engineering	15			16
Pre-tax stock-based compensation cost	168			170
Income tax benefits	(60		)	(61		)
Total stock-based compensation cost	$	108		$	108

The decrease in pre-tax stock-based compensation cost for the three months ended March 31, 2012, as compared to the corresponding period in the prior year, was primarily due to a decrease related to the company’s assumption of stock-based awards previously issued by acquired entities ($2 million).

As of March 31, 2012, the total unrecognized compensation cost of $1,033 million related to non-vested awards is expected to be recognized over a weighted-average period of approximately three years.

There was no significant capitalized stock-based compensation cost at March 31, 2012 and 2011.