Stock-Based Compensation:

6 Months Ended

Jun. 30, 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:

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in millions)	2012			2011			2012			2011
Cost	$	30		$	22		$	64		$	46
Selling, general and administrative	117			126			236			256
Research, development and engineering	12			14			27			30
Pre-tax stock-based compensation cost	160			162			328			332
Income tax benefits	(56		)	(59		)	(116		)	(120		)
Total stock-based compensation cost	$	104		$	104		$	212		$	212

The decrease in pre-tax stock-based compensation cost for the three and six months ended June 30, 2012, as compared to the corresponding periods 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 of $1 million and $3 million, respectively.

As of June 30, 2012, the total unrecognized compensation cost of $1,411 million related to non-vested awards is expected to be recognized over a weighted-average period of approximately 3 years.

There was no significant capitalized stock-based compensation cost at June 30, 2012 and 2011.