Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes activity and related information under our stock option plans. All option grants presented in the table, except for the Kite-related replacement awards, had exercise prices not less than the fair value of the underlying common stock on the grant date:



	Shares (in thousands)		Weighted- Average Exercise Price (in dollars)		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2016	23,157		$	37.69
Granted	6,056		$	71.75
Granted-replacement awards ⁽¹⁾	8,047		$	23.68
Forfeited	(275	)	$	64.66
Expired	(63	)	$	82.50
Exercised	(6,702	)	$	21.99
Outstanding at December 31, 2017	30,220		$	43.93	5.89	$	921
Exercisable at December 31, 2017	16,112		$	35.78	3.61	$	624
Expected to vest, net of estimated forfeitures at December 31, 2017	13,314		$	52.94	8.47	$	285
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Share-based Compensation, Performance Shares Award Outstanding Activity

The following table summarizes activity and related information for our PSUs:



	Shares ⁽¹⁾ (in thousands)		Weighted- Average Grant Date Fair Value Per Share ⁽¹⁾ (in dollars)
Outstanding at December 31, 2016	509		$	92.32
Granted	388		$	74.42
Vested	(47	)	$	77.82
Forfeited	(93	)	$	99.61
Outstanding at December 31, 2017	757		$	82.80
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Note:


⁽¹⁾	Weighted-average grant-date fair value per share excludes shares related to grants that currently have no grant date as the performance objectives have not yet been defined.

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

The fair value of an RSU is equal to the closing price of our common stock on the grant date. The following table summarizes our RSU activities and related information:



	Shares (in thousands)		Weighted- Average Grant Date Fair Value Per Share (in dollars)
Outstanding at December 31, 2016	10,045		$	85.41
Granted	7,156		$	69.57
Granted-replacement awards ⁽¹⁾	2,970		$	83.19
Vested	(4,103	)	$	79.19
Forfeited	(1,063	)	$	81.85
Outstanding at December 31, 2017	15,005		$	79.37
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Schedule of Stock-Based Compensation Expenses Included in Consolidated Statement of Income

The following table summarizes total stock-based compensation expenses included on our Consolidated Statements of Income (in millions):



	Year Ended December 31,
	2017			2016			2015
Cost of goods sold	$	24		$	14		$	11
Research and development expenses	232			176			173
Selling, general and administrative expenses	393			190			198
Stock-based compensation expense included in total costs and expenses	649			380			382
Income tax effect	(280		)	(104		)	(131		)
Stock-based compensation expense, net of tax	$	369		$	276		$	251

Schedule Of Assumptions To Calculate The Estimated Fair Value Of Awards

We used the following assumptions to calculate the estimated fair value of the awards:



	Year Ended December 31,
	2017		2016		2015
Expected volatility:
Stock options	28	%	30	%	35	%
ESPP	28	%	30	%	32	%
Expected term in years:
Stock options	4.6		5.5		5.7
ESPP	0.5		0.5		1.2
Risk-free interest rate:
Stock options	2.1	%	1.4	%	1.4	%
ESPP	1.8	%	1.1	%	1.4	%
Expected dividend yield	2.7	%	1.9	%	1.7	%