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Stock-Based Compensation (Tables) | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Schedule of Stock-Based Compensation Expense | Amounts recognized in the financial statements with respect to stock-based compensation programs, which include stock options, restricted stock, restricted stock units, performance shares and the General Employees’ Stock Purchase Plan (GESPP), are provided in the following table. Capitalized stock-based compensation amounts were not material.
(Millions) |  |  |  |  |  |  |  |  |  | 2024 |  | 2023 |  | 2022
Cost of sales |  |  |  |  |  |  |  |  |  | $ | 39 |  |  | $ | 38 |  |  | $ | 42 |
Selling, general and administrative expenses |  |  |  |  |  |  |  |  |  | 185 |  |  | 165 |  |  | 153 |
Research, development and related expenses |  |  |  |  |  |  |  |  |  | 44 |  |  | 38 |  |  | 39 |
Stock-based compensation expenses |  |  |  |  |  |  |  |  |  | 268 |  |  | 241 |  |  | 234 |
Income tax benefits |  |  |  |  |  |  |  |  |  | (31) |  |  | (41) |  |  | (58) |
Stock-based compensation expenses (benefits), net of tax |  |  |  |  |  |  |  |  |  | $ | 237 |  |  | $ | 200 |  |  | $ | 176 |
Schedule of Stock Option Activity | The following table summarizes stock option activity:
(Options in thousands) |  | Number of Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life (months) |  | Aggregate Intrinsic Value (millions) |  |  |  |  |  |  |  |
Under option — |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of January 1, 2024 |  | 34,683 |  |  | $ | 167.38 |  |  |  |  |  |  |  |  |  |  |  |  |
Expired |  | (3,689) |  |  | 130.83 |  |  |  |  |  |  |  |  |  |  |  |  |
Solventum exits |  | (2,558) |  |  | 169.45 |  |  |  |  |  |  |  |  |  |  |  |  |
Share conversion |  | 3,942 |  |  | 151.08 |  |  |  |  |  |  |  |  |  |  |  |  |
Granted |  | 528 |  |  | 97.15 |  |  |  |  |  |  |  |  |  |  |  |  |
Exercised |  | (218) |  |  | 120.80 |  |  |  |  |  |  |  |  |  |  |  |  |
Forfeited |  | (165) |  |  | 123.91 |  |  |  |  |  |  |  |  |  |  |  |  |
As of December 31, 2024 |  | 32,523 |  |  | 150.50 |  |  | 43 |  | $ | 55 |  |  |  |  |  |  |  |  |
Options exercisable |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of December 31, 2024 |  | 29,959 |  |  | $ | 153.29 |  |  | 39 |  | $ | 12 |  |  |  |  |  |  |  |  |
Schedule of Share-Based Compensation Arrangements by Share-Based Payment Award | The following table summarizes additional information relative to stock options exercised during the respective years:
(in millions) |  | 2024 |  | 2023 |  | 2022
Cash received from options exercised |  | $ | 26 |  |  | $ | 147 |  |  | $ | 205 |
Intrinsic value of options exercised |  | 3 |  |  | 29 |  |  | 116 |
Tax benefit realized related to options exercised |  | 1 |  |  | 6 |  |  | 24 |
The following table summarizes additional information relative to restricted stock units for the respective years:
(in millions, except per-unit amounts) |  | 2024 |  | 2023 |  | 2022
Weighted-average grant-date fair value of restricted stock units (per unit) that were granted |  | $ | 98.01 |  |  | $ | 114.71 |  |  | $ | 160.24 |
Intrinsic value of restricted stock units that vested |  | 73 |  |  | 81 |  |  | 88 |
Tax benefit realized related to restricted stock units that vested |  | 14 |  |  | 16 |  |  | 17 |
The following table summarizes additional information relative to performance shares for the respective years:
(in millions, except per-share amounts) |  | 2024 |  | 2023 |  | 2022
Weighted average grant date fair value per performance share that were granted |  | $ | 97.82 |  |  | $ | 110.21 |  |  | $ | 144.77 |
Intrinsic value of performance shares that were distributed |  | 9 |  |  | 19 |  |  | 21 |
Tax benefit realized related to performance shares that were distributed |  | 2 |  |  | 5 |  |  | 4 |
Schedule of Stock Option Assumptions | For the primary annual stock option grant, the weighted average fair value at the date of grant was calculated using the Black-Scholes option-pricing model and the assumptions that follow.
|  | 2024 |  | 2023 |  | 2022
Exercise price |  | $ | 97.15 |  |  | $ | 116.90 |  |  | $ | 162.41 |
Risk-free interest rate |  | 4.4 | % |  | 3.8 | % |  | 1.9 | %
Dividend yield |  | 3.8 | % |  | 3.3 | % |  | 2.9 | %
Expected volatility |  | 24.6 | % |  | 22.8 | % |  | 21.8 | %
Expected life (months) |  | 95 |  | 84 |  | 83
Black-Scholes fair value |  | $ | 20.53 |  |  | $ | 22.22 |  |  | $ | 25.34 |
Schedule of Restricted Stock Units Activity | The following table summarizes restricted stock unit activity:
(Units in thousands) |  | Number of Units |  | Weighted Average Grant Date Fair Value |  |  |  |  |  |  |  |
Nonvested balance — |  |  |  |  |  |  |  |  |  |  |  |
As of January 1, 2024 |  | 3,798 |  |  | $ | 136.55 |  |  |  |  |  |  |  |  |
Vested |  | (737) |  |  | 163.69 |  |  |  |  |  |  |  |  |
Solventum exits |  | (815) |  |  | 122.38 |  |  |  |  |  |  |  |  |
Share conversion |  | 328 |  |  | 115.54 |  |  |  |  |  |  |  |  |
Granted |  | 4,001 |  |  | 98.01 |  |  |  |  |  |  |  |  |
Forfeited |  | (425) |  |  | 109.27 |  |  |  |  |  |  |  |  |
As of December 31, 2024 |  | 6,150 |  |  | 104.83 |  |  |  |  |  |  |  |  |
Schedule of Performance Shares Activity | The following table summarizes performance share activity:
(Shares in thousands) |  | Number of Shares |  | Weighted Average Grant Date Fair Value |  |  |  |  |  |  |  |
Undistributed balance — |  |  |  |  |  |  |  |  |  |  |  |
As of January 1, 2024 |  | 360 |  |  | $ | 136.95 |  |  |  |  |  |  |  |  |
Vested |  | (101) |  |  | 176.72 |  |  |  |  |  |  |  |  |
Solventum Exits |  | (3) |  |  | 144.75 |  |  |  |  |  |  |  |  |
Share conversion |  | 51 |  |  | 113.35 |  |  |  |  |  |  |  |  |
Granted |  | 338 |  |  | 97.82 |  |  |  |  |  |  |  |  |
Performance change |  | 240 |  |  | 100.86 |  |  |  |  |  |  |  |  |
Forfeited |  | (103) |  |  | 102.67 |  |  |  |  |  |  |  |  |
As of December 31, 2024 |  | 782 |  |  | 101.99 |  |  |  |  |  |  |  |  |

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