Stock-Based Compensation:

3 Months Ended

Mar. 31, 2013

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:	2013			2012
Cost	$	31		$	34
Selling, general and administrative	99			119
Research, development and engineering	14			15
Pre-tax stock-based compensation cost	144			168
Income tax benefits	(50		)	(60		)
Total stock-based compensation cost	$	94		$	108

The decrease in pre-tax stock-based compensation cost for the three months ended March 31, 2013, as compared to the corresponding period in the prior year, was due to decreases related to performance share units ($12 million), restricted stock units ($9 million) and the company’s assumption of stock-based awards previously issued by acquired entities ($3 million).

As of March 31, 2013, the total unrecognized compensation cost of $964 million related to non-vested awards is expected to be recognized over a weighted-average period of approximately 2.5 years.

There was no significant capitalized stock-based compensation cost at March 31, 2013 and 2012.