Stock-based Compensation

3 Months Ended

Mar. 31, 2013

Stock Based Compensation Disclosure [Abstract]

Stock-based Compensation

2) STOCK-BASED COMPENSATION

The following table summarizes the Company's stock-based compensation expense for the three months ended March 31, 2013 and 2012.

	Three Months Ended
	March 31,
	2013		2012
RSUs and PSUs	$	32	$	29
Stock options and equivalents		28		12
Stock-based compensation expense, before income taxes		60		41
Related tax benefit		(23)		(16)
Stock-based compensation expense, net of tax benefit	$	37	$	25

During the three months ended March 31, 2013, the Company granted 3million RSUs with a weighted average per unit grant date fair value of $43.23. RSU grants during the first quarter of 2013 vest over a one- to four-year service period. Compensation expense for RSUs is determined based upon the market price of the Company's shares underlying the awards on the date of grant. For certain RSU awards the number of shares an employee earns ranges from 0% to 120% of the target award, based on the outcome of established performance goals. Compensation expense is recorded based on the probable outcome of the performance goals. During the three months ended March 31, 2013, the Company also granted 2million stock options with a weighted average exercise price of $43.21. Stock option grants during the first quarter of 2013 vest over a four-year service period and expire eight years from the date of grant.

Total unrecognized compensation cost related to unvested RSUs at March 31, 2013 was $250million, which is expected to be recognized over a weighted average period of 2.6years. Total unrecognized compensation cost related to unvested stock option awards at March 31, 2013was $84million, which is expected to be recognizedover a weighted average period of 2.5years.