INCENTIVE PLANS (Tables)

12 Months Ended

Dec. 31, 2012

Incentive Plans

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

In millions of dollars	2012		2011		2010
Charges for estimated awards to
retirement-eligible employees	$	444	$	338	$	366
Option expense		99		161		197
Amortization of deferred cash awards and
deferred cash stock units		198		208		280
Salary stock award expense		—		—		173
Immediately vested stock award expense (1)		60		52		174
Amortization of restricted and deferred
stock awards (2)		864		871		747
Total	$	1,665	$	1,630	$	1,937

(1)	This 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 Annual Award Programs

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	%

Information with respect to stock option activity under stock option programs

	2012						2011						2010
			Weighted-						Weighted-						Weighted-
			average		Intrinsic				average		Intrinsic				average		Intrinsic
			exercise		value				exercise		value				exercise		value
	Options		price		per share		Options		price		per share		Options		price		per share
Outstanding, beginning of period	37,596,029		$	69.60	$	—	37,486,011		$	93.70	$	—	40,404,481		$	127.50	$	—
Granted—original	—			—		—	3,425,000			48.86		—	4,450,017			47.80		—
Forfeited or exchanged	(858,906	)		83.84		—	(1,539,227	)		176.41		—	(4,368,086	)		115.10		—
Expired	(1,716,726	)		438.14		—	(1,610,450	)		487.24		—	(2,935,863	)		458.70		—
Exercised	—			—		—	(165,305	)		40.80		6.72	(64,538	)		40.80		3.80
Outstanding, end of period	35,020,397		$	51.20	$	—	37,596,029		$	69.60	$	—	37,486,011		$	93.70	$	—
Exercisable, end of period	32,973,444						23,237,069						15,189,710

Summary of the information about stock options outstanding under stock option programs

	Options outstanding				Options exercisable
		Weighted-average
	Number	contractual life	Weighted-average		Number	Weighted-average
Range of exercise prices	outstanding	remaining	exercise price		exercisable	exercise price
$29.70–$49.99 (1)	33,392,541	3.1 years	$	42.40	31,431,666	$	42.02
$50.00–$99.99	69,956	8.1 years		56.76	69,132		56.64
$100.00–$199.99	516,577	5.9 years		147.33	431,323		148.33
$200.00–$299.99	754,375	1.7 years		243.85	754,375		243.85
$300.00–$399.99	206,627	4.9 years		335.97	206,627		335.97
$400.00–$557.00	80,321	0.1 years		543.69	80,321		543.69
Total at December 31, 2012	35,020,397	3.1 years	$	51.20	32,973,444	$	51.13

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

Valuation and related assumption information for option programs

For options granted during	2012	2011			2010
Weighted-average per-share fair value,
at December 31	N/A	$	13.90		$	16.60
Weighted-average expected life
Original grants	N/A		4.95 yrs.			6.06 yrs.
Valuation assumptions
Expected volatility	N/A		35.64	%		36.42	%
Risk-free interest rate	N/A		2.33	%		2.88	%
Expected dividend yield	N/A		0.00	%		0.00	%
Expected annual forfeitures
Original and reload grants	N/A		9.62	%		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

			Weighted-average
			grant date
Unvested stock awards	Shares		fair value
Unvested at January 1, 2012	50,213,124		$	50.90
New awards	33,452,028			30.51
Cancelled awards	(2,342,822	)		39.15
Vested awards (1)	(17,345,405	)		62.12
Unvested at December 31, 2012	63,976,925		$	37.62

(1) The weighted-average fair value of the vestings during 2012 was approximately $32.78 per share.

Unvested stock awards that are subject to variable accounting

Incentive Plans

Summary of the status of unvested stock awards

			Weighted-average
			award issuance
Unvested stock awards	Shares		fair value
Unvested at January 1, 2012	5,290,798		$	49.30
New awards	2,219,213			30.55
Cancelled awards	(377,358	)		43.92
Vested awards (1)	(1,168,429	)		50.16
Unvested at December 31, 2012	5,964,224		$	42.50

(1) The weighted-average fair value of the vestings during 2012 was approximately $29.18 per share.