| ($ in millions) | ||||||||||
| For the year ended December 31: | 2013 | 2012 | 2011 | |||||||
| Cost | $ | 122 | $ | 132 | $ | 120 | ||||
| Selling, general and administrative | 435 | 498 | 514 | |||||||
| Research, development and engineering | 57 | 59 | 62 | |||||||
| Other (income) and expense | — | (1) | — | |||||||
| Pre-tax stock-based compensation cost | 614 | 688 | 697 | |||||||
| Income tax benefits | (213) | (240) | (246) | |||||||
| Total stock-based compensation cost | $ | 402 | $ | 448 | $ | 450 | ||||
| PSUs | |||||||||||||||||
| 2013 | 2012 | 2011 | |||||||||||||||
| Weighted- | Weighted- | Weighted- | |||||||||||||||
| Average | Number | Average | Number | Average | Number | ||||||||||||
| Grant Price | of Units | Grant Price | of Units | Grant Price | of Units | ||||||||||||
| Balance at January 1 | $ | 151 | 3,172,201 | $ | 122 | 3,686,991 | $ | 111 | 3,649,288 | ||||||||
| PSUs granted at target | 195 | 869,875 | 185 | 1,004,003 | 154 | 1,055,687 | |||||||||||
| Additional shares earned | |||||||||||||||||
| above target* | 118 | 152,069 | 102 | 550,399 | 118 | 230,524 | |||||||||||
| PSUs released | 118 | (1,321,784) | 102 | (1,998,746) | 118 | (1,189,765) | |||||||||||
| PSUs canceled/forfeited | 170 | (48,067) | 131 | (70,446) | 118 | (58,743) | |||||||||||
| Balance at December 31** | $ | 178 | 2,824,294 | $ | 151 | 3,172,201 | $ | 122 | 3,686,991 | ||||||||
* Represents additional shares issued to employees after vesting of PSUs because final performance metrics exceeded specified targets.
** Represents the number of shares expected to be issued based on achievement of grant date performance targets. The actual number of shares issued depends on the company’s performance against specified targets over the vesting period.
RSUs
| 2013 | 2012 | 2011 | ||||||||||||||
| Weighted- | Weighted- | Weighted- | ||||||||||||||
| Average | Number | Average | Number | Average | Number | |||||||||||
| Grant Price | of Units | Grant Price | of Units | Grant Price | of Units | |||||||||||
| Balance at January 1 | $ | 148 | 9,841,461 | $ | 129 | 12,218,601 | $ | 110 | 11,196,446 | |||||||
| RSUs granted | 189 | 2,541,081 | 184 | 2,635,772 | 154 | 5,196,802 | ||||||||||
| RSUs released | 131 | (2,952,363) | 117 | (4,338,787) | 106 | (3,508,700) | ||||||||||
| RSUs canceled/forfeited | 154 | (794,862) | 139 | (674,125) | 122 | (665,947) | ||||||||||
| Balance at December 31 | $ | 166 | 8,635,317 | $ | 148 | 9,841,461 | $ | 129 | 12,218,601 | |||||||
| Options Outstanding and Exercisable | |||||||||||
| Weighted-Average | |||||||||||
| Weighted- | Number of | Aggregate | Remaining | ||||||||
| Average | Shares | Intrinsic | Contractual Life | ||||||||
| Exercise Price Range | Exercise Price | Under Option | Value | (in Years) | |||||||
| $85 and under | $ | 82 | 468,427 | $ | 49,244,658 | 2.1 | |||||
| $86–$105 | 98 | 4,908,689 | 440,012,196 | 1.1 | |||||||
| $106 and over | 106 | 245,835 | 20,055,475 | 0.2 | |||||||
| $ | 97 | 5,622,951 | $ | 509,312,330 | 1.1 | ||||||
| 2013 | 2012 | 2011 | ||||||||||||||
| Weighted- | Number of | Weighted- | Number of | Weighted- | Number of | |||||||||||
| Average | Shares | Average | Shares | Average | Shares | |||||||||||
| Exercise Price | Under Option | Exercise Price | Under Option | Exercise Price | Under Option | |||||||||||
| Balance at January 1 | $ | 94 | 11,389,721 | $ | 90 | 20,662,322 | $ | 94 | 39,197,728 | |||||||
| Options exercised | 90 | (5,585,127) | 86 | (9,080,170) | 98 | (18,144,309) | ||||||||||
| Options canceled/expired | 86 | (181,643) | 75 | (192,431) | 107 | (391,097) | ||||||||||
| Balance at December 31 | $ | 97 | 5,622,951 | $ | 94 | 11,389,721 | $ | 90 | 20,662,322 | |||||||
| Exercisable at December 31 | $ | 97 | 5,622,951 | $ | 94 | 11,389,721 | $ | 90 | 20,662,322 | |||||||