Stock-based Compensation

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2013 and 2012.

		Three Months Ended				Six Months Ended
		June 30,				June 30,
			2013		2012		2013		2012
RSUs and PSUs		$	34	$	30	$	66	$	59
Stock options and equivalents			15		9		43		21
Stock-based compensation expense,
	before income taxes		49		39		109		80
Related tax benefit			(19)		(15)		(42)		(31)
Stock-based compensation expense,
	net of tax benefit	$	30	$	24	$	67	$	49

During the six months ended June 30, 2013, the Company granted 4 million RSUs with a weighted average per unit grant date fair value of $43.80. RSUs granted duringthe first six months of 2013 vest over a one- to four-year service period. Compensation expense for RSUs is determined based upon themarket price of the Company's shares underlying the awards on the date of grant. For certain RSUawards the number of shares an employee earns ranges from 0% to 120% of the target award, basedon the outcome of established performance conditions. Compensation expense is recorded based on theprobable outcome of the performance conditions.During the six months ended June 30, 2013, the Company also granted 3 million stock options with a weighted average exercise price of $44.04. Stock options granted during the first six months of 2013 vest over a four-year service period and expire eight years from the date of grant.Compensation expense for stock options isdetermined based on the grant date fair value of the award calculated using the Black-Scholes options-pricing model.

Total unrecognized compensation cost related to unvested RSUs at June 30, 2013 was $246 million, which is expected to be recognized over a weighted average period of 2.4 years. Total unrecognized compensation cost related to unvested stock option awards at June 30, 2013 was $78 million, which is expected to be recognized over a weighted average period of 2.5years.