INCENTIVE PLANS (Tables)

12 Months Ended

Dec. 31, 2013

INCENTIVE PLANS

Components of compensation expense relating to stock-based compensation programs and deferred cash award programs

In millions of dollars	2013		2012		2011
Charges for estimated awards to retirement-eligible employees	$	468	$	444	$	338
Option expense	10		99		161
Amortization of deferred cash awards, deferred cash stock units and performance stock units	230		198		208
Immediately vested stock award expense (1)	54		60		52
Amortization of restricted and deferred stock awards (2)	862		864		871
Total	$	1,624	$	1,665	$	1,630

(1) Represents expense for immediately vested stock awards that generally were stock payments in lieu of cash compensation. The expense is generally accrued as cash incentive compensation in the year prior to grant.

(2) All periods include amortization expense for all unvested awards to non-retirement-eligible employees. Amortization is recognized net of estimated forfeitures of awards.

Assumptions used in determining fair value of performance-vesting equity awards

Weighted-average per-share fair value	$	22.97
Weighted-average expected life	3.85 years
Valuation assumptions
Expected volatility	36.07		%
Risk-free interest rate	1.21		%
Expected dividend yield	0.88		%

Incentive Plans

Information with respect to stock option activity under stock option programs

	2013						2012						2011
	Options		Weighted- average exercise price		Intrinsic value per share		Options		Weighted- average exercise price		Intrinsic value per share		Options		Weighted- average exercise price		Intrinsic value per share
Outstanding, beginning of period	35,020,397		$	51.20	$	—	37,596,029		$	69.60	$	—	37,486,011		$	93.70	$	—
Granted—original	—		—		—		—		—		—		3,425,000		48.86		—
Forfeited or exchanged	(50,914	)	212.35		—		(858,906	)	83.84		—		(1,539,227	)	176.41		—
Expired	(86,964	)	528.40		—		(1,716,726	)	438.14		—		(1,610,450	)	487.24		—
Exercised	(3,374,413	)	40.81		9.54		—		—		—		(165,305	)	40.80		6.72
Outstanding, end of period	31,508,106		$	50.72	$	1.39	35,020,397		$	51.20	$	—	37,596,029		$	69.60	$	—
Exercisable, end of period	30,662,588						32,973,444						23,237,069

Summary of information about stock options outstanding under stock option programs

		Options outstanding			Options exercisable
Range of exercise prices	Number outstanding	Weighted-average contractual life remaining	Weighted-average exercise price		Number exercisable	Weighted-average exercise price
$29.70—$49.99 (1)	30,009,552	2.1 years	$	42.57	29,164,034	$	42.39
$50.00—$99.99	69,956	7.1 years	56.76		69,956	56.76
$100.00—$199.99	516,531	4.9 years	147.33		516,531	147.33
$200.00—$299.99	712,067	0.8 years	243.80		712,067	243.80
$300.00—$399.99	200,000	4.1 years	335.50		200,000	335.50
Total at December 31, 2013	31,508,106	2.1 years	$	50.73	30,662,588	$	50.78

(1) A significant portion of the outstanding options are in the $40 to $45 range of exercise prices.

Valuation and related assumption for option programs

For options granted during	2013	2012	2011
Weighted-average per-share fair value, at December 31	N/A	N/A	$	13.90
Weighted-average expected life
Original grants	N/A	N/A	4.95 yrs.
Valuation assumptions
Expected volatility	N/A	N/A	35.64		%
Risk-free interest rate	N/A	N/A	2.33		%
Expected dividend yield	N/A	N/A	—
Expected annual forfeitures
Original and reload grants	N/A	N/A	9.62		%

N/A Not applicable

Unvested stock awards that are not subject to variable accounting

Incentive Plans

Summary of the status of unvested stock awards

Unvested stock awards	Shares		Weighted- average grant date fair value per share
Unvested at January 1, 2013	63,976,925		$	37.62
New awards	19,619,715		43.96
Cancelled awards	(2,007,674	)	35.89
Vested awards (1)	(26,438,206	)	38.83
Unvested at December 31, 2013	55,150,760		$	39.37

(1) The weighted-average fair value of the vestings during 2013 was approximately $41.89 per share.

Unvested stock awards that are subject to variable accounting

Incentive Plans

Summary of the status of unvested stock awards

Unvested stock awards	Shares		Weighted- average award issuance fair value per share
Unvested at January 1, 2013	5,964,224		$	42.50
New awards	1,975,174		43.94
Cancelled awards	(65,409	)	47.71
Vested awards (1)	(1,887,967	)	42.52
Unvested at December 31, 2013	5,986,022		$	42.91

(1) The weighted-average fair value of the vestings during 2013 was approximately $41.41 per share.