Stock-based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2013

The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions and resulting weighted-average fair value per share:

	2013			2012			2011
Dividend yield		1.7	%		1.5	%		1.2	%
Expected volatility		38	%		39	%		37	%
Risk free interest rate		1.2	%		1.5	%		2.8	%
Expected option life in years		7.0			6.9			6.9
Weighted-average fair value per share	$	23.93		$	25.26		$	31.38

Options Outstanding and Option Exercisable

The following table summarizes information concerning options outstanding and options exercisable as of December 31, 2013:

	(Shares stated in thousands)

	Options Outstanding						Options Exercisable
Exercise prices range	Options Outstanding		Weighted- average remaining contractual life (in years)		Weighted- average exercise price		Options Exercisable		Weighted- average exercise price
$23.75 - $56.61		7,244		3.8	$	45.23		6,257	$	45.84
$58.45 - $68.83		8,458		5.5	$	65.82		5,125	$	64.70
$70.31 - $78.35		13,765		8.6	$	71.94		1,289	$	72.25
$83.88 - $84.93		10,005		6.1	$	84.21		5,762	$	84.45
$89.99 - $110.77		2,467		5.8	$	94.31		1,658	$	96.29
		41,939		6.4	$	70.33		20,091	$	67.58

Summary of Stock Option Activity

The following table summarizes stock option activity during the years ended December 31, 2013, 2012 and 2011:

	(Shares stated in thousands)

	2013					2012					2011
	Shares			Weighted- average exercise price		Shares			Weighted- average exercise price		Shares			Weighted- average exercise price
Outstanding at beginning of year		42,059		$	67.77		40,027		$	63.84		37,499		$	55.33
Granted		6,570		$	72.16		8,664		$	72.04		9,528		$	84.29
Exercised		(5,168	)	$	51.73		(4,171	)	$	39.07		(5,470	)	$	42.36
Forfeited		(1,522	)	$	70.57		(2,461	)	$	67.50		(1,530	)	$	58.82
Outstanding at year-end		41,939		$	70.33		42,059		$	67.77		40,027		$	63.84

Restricted Stock Transactions

The following table summarizes information about all restricted stock transactions:

	(Shares stated in thousands)

	2013					2012					2011
	Restricted Stock			Weighted Average Grant Date Fair Value		Restricted Stock			Weighted Average Grant Date Fair Value		Restricted Stock			Weighted Average Grant Date Fair Value
Unvested at beginning of year		3,566		$	73.62		2,433		$	72.25		2,223		$	64.27
Granted		1,949			75.65		1,668			71.09		1,136			84.61
Vested		(958	)		66.98		(351	)		52.26		(767	)		67.36
Forfeited		(386	)		74.53		(184	)		73.38		(159	)		72.51
Unvested at end of year		4,171		$	76.01		3,566		$	73.62		2,433		$	72.25

Discounted Stock Purchase Plan Assumptions and Resulting Weighted Average Fair Value

The fair value of the employees’ purchase rights under the DSPP was estimated using the Black-Scholes model with the following assumptions and resulting weighted average fair value per share:

	2013			2012			2011
Dividend yield		1.7	%		1.6	%		1.2	%
Expected volatility		24	%		41	%		28	%
Risk free interest rate		0.1	%		0.2	%		0.2	%
Weighted average fair value per share	$	9.91		$	12.71		$	12.83

Stock-Based Compensation Expense Recognized in Income

The following summarizes stock-based compensation expense recognized in income:

	(Stated in millions)

	2013		2012		2011
Stock options	$	165	$	203	$	176
Restricted stock		110		82		60
DSPP		40		50		36
	$	315	$	335	$	272