Annual report pursuant to Section 13 and 15(d)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

v2.4.0.8
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2013
Fair Value Disclosures [Abstract]  
Summary of financial instruments recorded at fair value
The following table summarizes our financial instruments recorded at fair value in our Consolidated Balance Sheets at December 31, 2013:
 
Fair Value Measurements Using
In millions
Quoted prices in
active markets for
identical assets
(Level 1)
 
Significant other
observable inputs
(Level 2)
 
Significant
unobservable inputs
(Level 3)
 
Total
Available-for-sale debt securities
 
 
 
 
 
 
 
Debt mutual funds
$
72

 
$
29

 
$
—

 
$
101

Bank debentures
—

 
2

 
—

 
2

Certificates of deposit
—

 
22

 
—

 
22

Government debt securities-non-U.S.
—

 
2

 
—

 
2

Available-for-sale equity securities
 

 
 

 
 

 
 

Information technology industry
23

 
—

 
—

 
23

Derivative assets
 

 
 

 
 

 
 

Interest rate contracts
—

 
49

 
—

 
49

Foreign currency forward contracts
—

 
11

 
—

 
11

Total assets
$
95

 
$
115

 
$
—


$
210

Derivative liabilities
 

 
 

 
 

 
 

Commodity swap contracts
—

 
5

 
—

 
5

Foreign currency forward contracts
—

 
5

 
—

 
5

Total liabilities
$
—

 
$
10

 
$
—

 
$
10

The following tables summarize our financial instruments recorded at fair value in our Consolidated Balance Sheets at December 31, 2012:
 
 
Fair Value Measurements Using
In millions
 
Quoted prices in
active markets
for identical
assets
(Level 1)
 
Significant other
observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
 
Total
Available-for-sale debt securities
 
 
 
 
 
 
 
 
Debt mutual funds
 
$
100

 
$
42

 
$
—

 
$
142

Bank debentures
 
—

 
45

 
—

 
45

Certificates of deposit
 
—

 
47

 
—

 
47

Government debt securities-non-U.S.
 
—

 
3

 
—

 
3

Corporate debt securities
 
—

 
1

 
—

 
1

Available-for-sale equity securities
 
 
 
 
 
 
 
 
Financial services industry
 
9

 
—

 
—

 
9

Derivative assets
 
 
 
 
 
 
 
 
Interest rate contracts
 
—

 
88

 
—

 
88

Foreign currency forward contracts
 
—

 
3

 
—

 
3

Commodity swap contracts
 
—

 
1

 
—

 
1

Commodity zero cost collar contracts
 
—

 
1

 
—

 
1

Total assets
 
$
109

 
$
231

 
$
—

 
$
340

Derivative liabilities
 
 
 
 
 
 
 
 
Commodity swap contracts
 
—

 
2

 
—

 
2

Commodity zero cost collar contracts
 
—

 
1

 
—

 
1

Total liabilities
 
$
—

 
$
3

 
$
—

 
$
3

Fair value and carrying value of total debt
Based on borrowing rates currently available to us for bank loans with similar terms and average maturities, considering our risk premium, the fair value and carrying value of total debt, including current maturities, was as follows:
 
December 31,
In millions
2013
 
2012
Fair value of total debt
$
1,877

 
$
926

Carrying value of total debt
1,740

 
775