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Stock Compensation (Tables)
12 Months Ended
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]  
Schedule of Stock Compensation Expense Allocation Within the Consolidated Statements of Income
Total stock compensation expense recognized is as follows:
For Years Ended December 31,
202020192018
COR$21 $21 $25 
R&D68 66 69 
SG&A135 130 138 
Total$224 $217 $232 
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,
202020192018
Weighted average grant date fair value, per share$25.55 $22.08 $23.20 
Weighted average assumptions used:
Expected volatility26 %26 %23 %
Expected lives (in years)6.87.17.2
Risk-free interest rates1.53 %2.66 %2.57 %
Expected dividend yields2.76 %2.95 %2.25 %
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 are as follows:
Stock OptionsRSUs
SharesWeighted Average Exercise Price per ShareSharesWeighted Average Grant Date Fair Value per Share
Outstanding grants, December 31, 2019
32,493,944 $66.57 5,897,800 $79.62 
Granted4,253,606 130.48 1,005,778 130.59 
Stock options exercised/RSUs vested(8,392,354)53.28 (2,034,933)53.88 
Forfeited and expired(359,919)111.06 (157,021)103.90 
Outstanding grants, December 31, 2020
27,995,277 79.69 4,711,624 100.80 
Schedule of Shares Outstanding Under Stock Option Plans, by Exercise Price Range
Summarized information about stock options outstanding as of December 31, 2020, is as follows:
Stock Options OutstandingOptions Exercisable
Exercise Price RangeNumber Outstanding (Shares)Weighted Average Remaining Contractual Life (Years)Weighted Average Exercise Price per ShareNumber Exercisable (Shares)Weighted Average Exercise Price per Share
$
28.13 to 161.98
27,995,277 5.8$79.69 17,221,451 $59.33 
Schedule of Stock Options That are Vested and Expected to Vest, Outstanding and Exercisable
Summarized information as of December 31, 2020, 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)27,596,705 17,221,451 
Weighted average remaining contractual life (in years)5.84.4
Weighted average exercise price per share$79.13 $59.33 
Intrinsic value (millions of dollars)$2,346 $1,805 
(a)Includes effects of expected forfeitures. Excluding the effects of expected forfeitures, the aggregate intrinsic value of stock options outstanding was $2.36 billion.
Schedule of ESPP Transactions
ESPP transactions are as follows:
SharesExercise Price
Outstanding grants, December 31, 2019
173,849 $110.14 
Granted714,680 108.74 
Exercised(745,483)103.48 
Outstanding grants, December 31, 2020
143,046 137.89 
Schedule of Changes in Treasury Stock The following table reflects the changes in our treasury shares:
Stock OptionsRSUsTreasury Shares
Balance, December 31, 2017
757,657,217 
Repurchases49,482,220 
Shares used for:
Stock options/RSUs(8,432,458)(2,769,994)
Stock applied to taxes— 553,720 
ESPP(819,878)— 
Director deferred stock units— — (5,181)
Total issued(9,252,336)(2,216,274)(11,468,610)
Balance, December 31, 2018
795,665,646 
Repurchases27,398,701 
Shares used for:
Stock options/RSUs(11,529,174)(2,370,762)
Stock applied to taxes— 490,347 
ESPP(798,806)— 
Director deferred stock units— — (71,571)
Total issued(12,327,980)(1,880,415)(14,208,395)
Balance, December 31, 2019
808,784,381 
Repurchases23,430,215 
Shares used for:
Stock options/RSUs(8,392,354)(2,034,933)
Stock applied to taxes 421,518 
ESPP(745,483) 
Director deferred stock units  (1,557)
Total issued(9,137,837)(1,613,415)(10,751,252)
Balance, December 31, 2020
821,461,787 
Schedule of Cash Proceeds Received from Share-based Payment Awards
The effects on cash flows are as follows:
For Years Ended December 31,
202020192018
Proceeds from common stock transactions (a)$470 $539 $373 
Tax benefit realized from stock compensation$195 $224 $179 
Reduction to deferred tax asset(44)(49)(43)
Excess tax benefit for stock compensation$151 $175 $136 
(a)Net of taxes paid for employee shares withheld of $53 million, $52 million and $60 million in 2020, 2019 and 2018, respectively.