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Preferred and Common Stock (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Share Activity

Share Activity (number of shares)

		Common stock
		Treasury				Outstanding
Balance at end of 2009			122,695,718				974,378,820
Private placement			-				44,313,146
Conversion of convertible notes			-				310
Issued for stock-based compensation plans			(3,333,689	)			3,333,689
Balance at end of 2010			119,362,029				1,022,025,965
Private placement			-				36,518,563
Issued for stock-based compensation plans			(5,867,538	)			5,867,538
Balance at end of 2011			113,494,491				1,064,412,066
Issued for stock-based compensation plans			(2,799,887	)			2,799,887
Balance at end of 2012			110,694,604				1,067,211,953

Schedule of Share-Based Compensation

Stock option features based on date of original grant were as follows:

Date of original grant		Vesting		Term		Reload feature
2002 and prior		1 year		10 years			One reload over option term
2003		3 years (1/3 each year)		10 years			One reload in 2004 for 1/3 vesting in 2004
2004 - 2009		3 years (1/3 each year)		6 years			None
2010 and forward		3 years (1/3 each year)		10 years			None

Schedule of Total Compensation Expense Recognized for All Stock Options and Awards

The following table summarizes the total compensation expense recognized for all stock options and stock awards (there was no stock-based compensation expense capitalized in 2012, 2011, or 2010):

		2012				2011				2010
Compensation expense recognized:
Stock option grants		$	27			$	34			$	44
Stock award grants			40				49				40
Total compensation expense before income taxes			67				83				84
Benefit for income taxes			21				27				27
Total compensation expense, net of income taxes		$	46			$	56			$	57

Schedule of Fair Value of New Options

The fair value of new options was estimated on the date of grant using a lattice-pricing model with the following assumptions:

		2012				2011				2010
Weighted average fair value per option		$	3.11			$	4.96			$	4.67
Average risk-free interest rate			0.06-1.89	%			0.19-3.44	%			0.14-3.62	%
Dividend yield			0.9	%			0.9	%			1.1	%
Volatility			39-45	%			36-43	%			47-51	%
Annual forfeiture rate			5	%			5	%			4	%
Exercise behavior			45	%			45	%			35	%
Life (years)			5.8				5.8				5.6

Schedule of Activity for Stock Options

The activity for stock options was as follows (options in millions):

		2012				2011				2010
Outstanding, beginning of year:
Number of options			46.8				56.1				65.5
Weighted average exercise price		$	17.41			$	19.29			$	24.44
Granted:
Number of options			10.5				4.5				9.0
Weighted average exercise price		$	10.17			$	16.24			$	13.52
Exercised:
Number of options			(1.5	)			(4.3	)			(1.6	)
Weighted average exercise price		$	8.28			$	8.59			$	8.34
Expired or forfeited:
Number of options			(10.8	)			(9.5	)			(16.8	)
Weighted average exercise price		$	31.83			$	31.90			$	37.21
Outstanding, end of year:
Number of options			45.0				46.8				56.1
Weighted average exercise price		$	12.58			$	17.41			$	19.29
Exercisable, end of year:
Number of options			29.8				28.8				30.2
Weighted average exercise price		$	13.02			$	20.90			$	26.91

Schedule of Options Fully Vested and/or Expected to Vest

Options Fully Vested and/or Expected to Vest*

Range of exercise price		Number				Weighted average remaining contractual life				Weighted average exercise price				Intrinsic Value
$6.12 - $8.33			17.9				2.06			$	8.33			$	7
$8.34 - $11.33			10.3				8.93				10.17				-
$11.34 - $17.40			11.2				7.21				14.47				-
$17.41 - $46.77			5.6				0.26				26.96				-
Total			45.0				4.69				12.58			$	7

* Expected forfeitures are immaterial to the Company and are not reflected in the table above.

Schedule of Options Fully Vested and Exercisable

Options Fully Vested and Exercisable

Range of exercise price		Number				Weighted average remaining contractual life				Weighted average exercise price				Intrinsic Value
$6.12 - $8.33			17.9				2.06			$	8.33			$	7
$8.34 - $11.33			0.1				6.65				10.72				-
$11.34 - $17.40			6.2				7.07				14.10				-
$17.41 - $46.77			5.6				0.26				26.96				-
Total			29.8				2.77				13.02			$	7

Summary of Outstanding Stock and Performance Share Awards

The following table summarizes the outstanding stock and performance share awards (awards in millions):

		Stock Awards				Performance Share Awards				Total				Weighted average FMV per award
Outstanding, January 1, 2012			6.4				2.9				9.3			$	13.63
Granted			3.0				1.9				4.9				10.08
Converted			(1.0	)			(0.8	)			(1.8	)			8.42
Forfeited			(0.5	)			(0.2	)			(0.7	)			13.49
Performance share adjustment			-				0.2				0.2				12.74
Outstanding, December 31, 2012			7.9				4.0				11.9				12.96

Schedule of Unrecognized Compensation Expense

As of December 31, 2012, the following table summarizes the unrecognized compensation expense expected to be recognized in future periods:

		Stock-based compensation expense (pretax)
2013		$	38
2014			18
2015			1
Totals		$	57

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