|
DERIVATIVES (Tables)
|
6 Months Ended |
|
Jul. 01, 2012
|
| DERIVATIVES |
|
| Outstanding foreign currency forward contracts |
|
|
|
|
Notional amount in millions
|
|
|
|
|
July 1,
|
|
December 31,
|
|
|
Currency denomination
|
|
2012
|
|
2011
|
|
|
United States Dollar (USD)
|
|
167
|
|
181
|
|
|
British Pound Sterling (GBP)
|
|
271
|
|
347
|
|
|
Euro (EUR)
|
|
18
|
|
47
|
|
|
Singapore Dollar (SGD)
|
|
9
|
|
20
|
|
|
Indian Rupee (INR)
|
|
1,815
|
|
1,701
|
|
|
Japanese Yen (JPY)
|
|
2,207
|
|
3,348
|
|
|
Canadian Dollar (CAD)
|
|
57
|
|
39
|
|
|
South Korea Won (KRW)
|
|
47,667
|
|
36,833
|
|
|
Chinese Renmimbi (CNY)
|
|
62
|
|
61
|
|
|
|
|
| Outstanding commodity swap contracts entered to hedge certain raw material purchases |
|
|
Dollars in millions
|
|
July 1, 2012
|
|
December 31, 2011
|
|
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Commodity
|
|
Notional Amount
|
|
Quantity
|
|
Notional Amount
|
|
Quantity
|
|
|
Copper
|
|
$
|
67
|
|
8,191
|
|
metric tons (1)
|
|
$
|
78
|
|
9,220
|
|
metric tons (1)
|
|
|
Platinum
|
|
81
|
|
51,150
|
|
troy ounces (2)
|
|
84
|
|
50,750
|
|
troy ounces (2)
|
|
|
Palladium
|
|
8
|
|
11,952
|
|
troy ounces (2)
|
|
5
|
|
7,141
|
|
troy ounces (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)A metric ton is a measurement of mass equal to 1,000 kilograms.
(2)A troy ounce is a measurement of mass equal to approximately 31 grams.
|
|
| Gains and losses on interest rate swap |
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
In millions
|
|
July 1, 2012
|
|
June 26, 2011
|
|
July 1, 2012
|
|
June 26, 2011
|
|
|
Income Statement
|
|
Gain/(Loss) on
|
|
Gain/(Loss) on
|
|
Gain/(Loss) on
|
|
Gain/(Loss) on
|
|
Gain/(Loss) on
|
|
Gain/(Loss) on
|
|
Gain/(Loss) on
|
|
Gain/(Loss) on
|
|
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Classification
|
|
Swaps
|
|
Borrowings
|
|
Swaps
|
|
Borrowings
|
|
Swaps
|
|
Borrowings
|
|
Swaps
|
|
Borrowings
|
|
|
Interest expense
|
|
$
|
17
|
|
$
|
(17
|
)
|
$
|
18
|
|
$
|
(18
|
)
|
$
|
5
|
|
$
|
(5
|
)
|
$
|
10
|
|
$
|
(10
|
)
|
|
|
| Location and amounts of gains and losses for derivative instruments classified as cash flow hedges |
|
|
|
|
|
|
Three months ended
|
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Six months ended
|
|
|
|
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Location of
|
|
|
|
|
|
|
|
|
|
|
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Gain/(Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Reclassified
|
|
Amount of Gain/(Loss)
|
|
Amount of Gain/(Loss)
|
|
Amount of Gain/(Loss)
|
|
Amount of Gain/(Loss)
|
|
|
|
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into Income
|
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Recognized in
|
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Reclassified from
|
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Recognized in
|
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Reclassified from
|
|
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In millions
|
|
(Effective
|
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AOCL on Derivative
|
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AOCL into Income
|
|
AOCL on Derivative
|
|
AOCL into Income
|
|
|
Derivatives in Cash
|
|
Portion)
|
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(Effective Portion)
|
|
(Effective Portion)
|
|
(Effective Portion)
|
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(Effective Portion)
|
|
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Flow Hedging
|
|
|
|
July 1,
|
|
June 26,
|
|
July 1,
|
|
June 26,
|
|
July 1,
|
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June 26,
|
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July 1,
|
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June 26,
|
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Relationships
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
Foreign currency forward contracts
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|
Net sales
|
|
$
|
(5
|
)
|
$
|
1
|
|
$
|
—
|
|
$
|
3
|
|
$
|
3
|
|
$
|
5
|
|
$
|
(2
|
)
|
$
|
4
|
|
|
Commodity swap contracts
|
|
Cost of sales
|
|
(10
|
)
|
(7
|
)
|
(2
|
)
|
8
|
|
3
|
|
(5
|
)
|
(5
|
)
|
14
|
|
|
Total
|
|
|
|
$
|
(15
|
)
|
$
|
(6
|
)
|
$
|
(2
|
)
|
$
|
11
|
|
$
|
6
|
|
$
|
—
|
|
$
|
(7
|
)
|
$
|
18
|
|
|
|
| Location and amounts of gains and losses for derivative instruments that are not classified as hedges |
|
|
|
|
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Three months ended
|
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Six months ended
|
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|
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|
|
|
Amount of Gain/(Loss) Recognized in
|
|
Amount of Gain/(Loss) Recognized in
|
|
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In millions
|
|
Location of Gain/(Loss)
|
|
Income on Derivatives
|
|
Income on Derivatives
|
|
|
Derivatives Not Designated as
|
|
Recognized in Income
|
|
July 1,
|
|
June 26,
|
|
July 1,
|
|
June 26,
|
|
|
Hedging Instruments
|
|
on Derivatives
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
Foreign currency forward contracts
|
|
Cost of sales
|
|
$
|
—
|
|
$
|
1
|
|
$
|
(3
|
)
|
$
|
(3
|
)
|
|
Foreign currency forward contracts
|
|
Other income (expense), net
|
|
(9
|
)
|
(10
|
)
|
5
|
|
(5
|
)
|
|
Commodity swap contracts
|
|
Cost of sales
|
|
(6
|
)
|
—
|
|
(1
|
)
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Location and fair value of derivative instruments |
|
|
|
|
Derivative Assets
|
|
|
|
|
Fair Value
|
|
|
|
|
|
|
July 1,
|
|
December 31,
|
|
|
|
|
In millions
|
|
2012
|
|
2011
|
|
Balance Sheet Location
|
|
|
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
Interest rate contract
|
|
$
|
87
|
|
$
|
82
|
|
Other assets
|
|
|
Total derivative assets
|
|
$
|
87
|
|
$
|
82
|
|
|
|
|
|
|
Derivative Liabilities
|
|
|
|
|
Fair Value
|
|
|
|
|
|
|
July 1,
|
|
December 31,
|
|
|
|
|
In millions
|
|
2012
|
|
2011
|
|
Balance Sheet Location
|
|
|
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
Commodity swap contracts
|
|
$
|
8
|
|
$
|
16
|
|
Other accrued expenses
|
|
|
Foreign currency forward contracts
|
|
2
|
|
7
|
|
Other accrued expenses
|
|
|
Total derivatives designated as hedging instruments
|
|
10
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
Commodity swap contracts
|
|
4
|
|
6
|
|
Other accrued expenses
|
|
|
Foreign currency forward contracts
|
|
—
|
|
1
|
|
Other accrued expenses
|
|
|
Total derivatives not designated as hedging instruments
|
|
4
|
|
7
|
|
|
|
|
Total derivative liabilities
|
|
$
|
14
|
|
$
|
30
|
|
|
|
|
|