Stock-based compensation (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of stock-based compensation expense allocation within the Consolidated Statements of Income

Total stock-based compensation expense recognized was as follows:

	For Years Ended December 31,
	2014		2013		2012
Stock-based compensation expense recognized in:
COR	$	48	$	49	$	48
R&D	62		67		71
SG&A	156		160		127
Acquisition charges	11		11		17
Total	$	277	$	287	$	263

Schedule of weighted average assumptions used to estimate the fair values for non-qualified stock options

We estimate the fair values for non-qualified stock options using the Black-Scholes-Merton option-pricing model with the following weighted average assumptions.

	For Years Ended December 31,
	2014			2013			2012
Weighted average grant date fair value, per share	$	8.13		$	6.78		$	8.31
Weighted average assumptions used:
Expected volatility	22		%	26		%	30		%
Expected lives (in years)	7.3			7.4			7.1
Risk-free interest rates	2.45		%	1.43		%	1.40		%
Expected dividend yields	2.72		%	2.56		%	2.10		%

Schedule of stock option and RSU transactions under long-term incentive and director compensation plans

Stock option and RSU transactions under our long-term incentive and director compensation plans during 2014 were as follows:

	Stock Options				RSUs
	Shares		Weighted Average Exercise Price per Share		Shares		Weighted Average Grant Date Fair Value per Share
Outstanding grants, December 31, 2013	64,930,540		$	28.98	20,892,022		$	29.94
Granted	14,053,185		44.11		3,184,237		44.71
Vested RSUs	—		—		(5,609,627	)	23.68
Forfeited and expired	(1,832,897	)	36.54		(1,162,817	)	33.22
Exercised	(19,503,382	)	27.75		—		—
Outstanding grants, December 31, 2014	57,647,446		32.84		17,303,815		34.47

Schedule of shares outstanding under stock option plans, by exercise price range

Summarized information about stock options outstanding at December 31, 2014, is as follows:

		Stock Options Outstanding				Options Exercisable
Range of Exercise Price		Number Outstanding (Shares)	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price per Share		Number Exercisable (Shares)	Weighted Average Exercise Price per Share
$	14.47 to 20.00	4,061,577	4.0	$	14.98	4,061,577	$	14.98
	20.01 to 30.00	11,270,125	3.7	25.47		11,250,200	25.46
	30.01 to 40.00	28,910,636	6.5	33.00		12,288,339	33.14
	40.01 to 50.00	13,399,020	9.1	44.10		1,750	42.66
	50.01 to 55.41	6,088	9.9	55.41		—	—
	14.47 to 55.41	57,647,446	6.4	32.84		27,601,866	27.34

Schedule of stock options that are vested and expected to vest, outstanding and exercisable

Summarized information as of December 31, 2014, about outstanding stock options that are vested and expected to vest, as well as stock options that are currently exercisable, is as follows:

	Outstanding Stock Options (Fully Vested and Expected to Vest) (a)		Options Exercisable
Number of outstanding (shares)	56,328,323		27,601,866
Weighted average remaining contractual life (in years)	6.3		4.4
Weighted average exercise price per share	$	32.69	$	27.34
Intrinsic value (millions of dollars)	$	1,170	$	721

(a) Includes effects of expected forfeitures of approximately 1 million shares. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $1,189 million.

Schedule of director deferred compensation payable in shares

Director deferred stock activity during 2014 was as follows:

	Director Deferred Stock (Shares)
Outstanding, December 31, 2013	129,264
New shares deferred	13,636
Issued	(7,178	)
Outstanding, December 31, 2014	135,722

Schedule of employee stock purchase plan transactions

Employee stock purchase plan transactions during 2014 were as follows:

	Employee Stock Purchase Plan (Shares)		Exercise Price
Outstanding grants, December 31, 2013	485,408		$	36.64
Granted	1,673,479		41.60
Exercised	(1,784,184	)	39.44
Outstanding grants, December 31, 2014	374,703		45.46

Schedule of changes in treasury stock

The table below reflects the changes in our treasury shares:

	Stock Options		RSUs		Treasury Shares
Balance, December 31, 2011					601,131,631
Repurchases					59,757,780
Shares used for:
Stock options/RSUs	(22,409,816	)	(4,182,928	)
Previously unissued common shares (a)	180,955		4,593
Stock applied to taxes	—		990,845
ESPP	(2,829,498	)	—
Director deferred stock	—		—		(6,592	)
Total issued	(25,058,359	)	(3,187,490	)	(28,245,849	)
Balance, December 31, 2012					632,636,970
Repurchases					77,564,013
Shares used for:
Stock options/RSUs	(45,507,711	)	(5,741,981	)
Stock applied to taxes	—		1,461,422
ESPP	(2,386,834	)	—
Director deferred stock	—		—		(12,909	)
Total issued	(47,894,545	)	(4,280,559	)	(52,175,104	)
Balance, December 31, 2013					658,012,970
Repurchases					61,665,209
Shares used for:
Stock options/RSUs	(19,503,382	)	(5,609,627	)
Stock applied to exercises or taxes	6,618		1,408,701
ESPP	(1,784,184	)	—
Director deferred stock	—		—		(7,178	)
Total issued	(21,280,948	)	(4,200,926	)	(25,481,874	)
Balance, December 31, 2014					694,189,127

(a) Beginning in 2013, only treasury shares were issued.

Schedule of shares reserved for issuance and available for future grant

Shares available for future grants and reserved for issuance are summarized below:

	December 31, 2014
Shares	Long-Term Incentive and Director Compensation Plans		Employee Stock Purchase Plan		Total
Reserved for issuance (a)	121,127,656		39,565,038		160,692,694
Shares to be issued upon exercise of outstanding options and RSUs (a)	(75,086,983	)	(374,703	)	(75,461,686	)
Available for future grants	46,040,673		39,190,335		85,231,008

(a) Includes 135,722 shares credited to directors’ deferred stock accounts that settle in shares of TI common stock. These shares are not included as grants outstanding at December 31, 2014.

Schedule of cash proceeds received from share-based payment awards

The effects on cash flows were as follows:

	For Years Ended December 31,
	2014		2013		2012
Proceeds from common stock transactions	$	616	$	1,314	$	523
Tax benefit realized from stock options exercised	218		227		133