Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation

Stock-Based Compensation Expense

	Three months ended						Six months ended
	June 30,						June 30,
(Millions)	2011			2010			2011			2010
Cost of sales	$	6		$	6		$	20		$	20
Selling, general and administrative expenses	44			47			131			129
Research, development and related expenses	6			6			21			22
Stock-based compensation expenses	$	56		$	59		$	172		$	171
Income tax benefits	$	(15	)	$	(19	)	$	(56	)	$	(55	)
Stock-based compensation expenses, net of tax	$	41		$	40		$	116		$	116

Stock Option Activity

					Remaining	Aggregate
	Number of		Exercise		Contractual	Intrinsic Value
	Options		Price*		Life* (months)	(millions)
Under option —
January 1	70,335,044		$	74.80
Granted
Annual	5,514,500		89.46
Progressive (Reload)	227,977		94.14
Other	4,857		91.89
Exercised	(10,212,885	)	67.99
Canceled	(139,862	)	68.17
June 30	65,729,631		$	77.17	60	$	1,163
Options exercisable
June 30	53,841,327		$	76.70	50	$	977

*Weighted average

Stock Option Assumptions

	Annual
Stock Option Assumptions	2011
Exercise price	$	89.47
Risk-free interest rate	2.8		%
Dividend yield	2.6		%
Expected volatility	22.0		%
Expected life (months)	72
Black-Scholes fair value	$	16.10

Restricted Stock and Restricted Stock Units Activity

Restricted Stock and Restricted Stock Units	Number of Awards		Grant Date Fair Value*
Nonvested balance —
As of January 1	5,573,302		$	70.43
Granted
Annual	889,448		89.46
Performance shares	444,161		82.97
Other	228,479		90.06
Vested	(1,273,100	)	72.35
Forfeited	(37,456	)	72.81
As of June 30	5,824,834		$	74.62

*Weighted average