Annual report pursuant to Section 13 and 15(d)

DERIVATIVES (Tables)

v2.4.0.6
DERIVATIVES (Tables)
 12 Months Ended
Dec. 31, 2011
DERIVATIVES  
Outstanding foreign currency forward contracts

 

 

 
   Notional amount in millions  
Currency denomination
  December 31,
2011 		  December 31,
2010 		 

United States Dollar (USD)

     181     142  

British Pound Sterling (GBP)

     347     87  

Euro (EUR)

     47     46  

Singapore Dollar (SGD)

     20     17  

Indian Rupee (INR)

     1,701     1,275  

Japanese Yen (JPY)

     3,348     3,722  

Canadian Dollar (CAD)

     39     39  

South Korea Won (KRW)

     36,833     28,028  

Chinese Renmimbi (CNY)

     61     60  
Outstanding commodity swap contracts entered to hedge certain raw material purchases

 

 

 
   December 31, 2011   December 31, 2010
Dollars in millions
Commodity
  Notional
Amount 		  Quantity   Notional
Amount 		  Quantity

Copper

   $ 78   9,220 metric tons(1)   $ 55   7,560 metric tons(1)

Platinum

     84   50,750 troy ounces(2)     11   9,157 troy ounces(2)

Palladium

     5   7,141 troy ounces(2)     1   1,763 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

 

 

 
   For the years ended
December 31, 		 
 
   2011   2010  
In millions
Income Statement Classification
  Gain/(Loss)
on Swaps 		  Gain/(Loss)
on Borrowings 		  Gain/(Loss)
on Swaps 		  Gain/(Loss)
on Borrowings 		 

Interest expense

   $ 41   $ (41 ) $ 16   $ (16 )
Location and amounts of gains and losses for derivative instruments classified as cash flow hedges

 

 

 
    
   For the years ended
December 31, 		 
 
    
    
    
   Amount of
Gain/(Loss)
Reclassified
from
AOCL into
Income
(Effective
Portion) 		 
 
    
   Amount of
Gain/(Loss)
Recognized in
AOCL on
Derivative
(Effective
Portion) 		 
 
   Location of Gain/(Loss)
Reclassified into Income
(Effective Portion) 		 
In millions
Derivatives in Cash Flow Hedging Relationships
  2011   2010   2011   2010  

Foreign currency forward contracts

   Net sales   $ (4 ) $ (5 ) $ 3   $ (6 )

Commodity swap contracts

   Cost of sales     (22 )   13     19     8  
                       

Total

       $ (26 ) $ 8   $ 22   $ 2  
                       
Location and amounts of gains and losses for derivative instruments that are not classified as hedges

 

 

 
    
   For the years
ended
December 31, 		 
 
    
   Amount of
Gain/(Loss)
Recognized in
Income on
Derivatives 		 
 
   Location of Gain/(Loss)
Recognized in Income
on Derivatives 		 
In millions
Derivatives Not Designated as Hedging Instruments
  2011   2010  

Foreign currency forward contracts

   Cost of sales   $ (2 ) $ (3 )

Foreign currency forward contracts

   Other income (expense), net     (14 )   4  

Commodity swap contracts

   Cost of sales     (6 )   —  
Location and fair value of derivative instruments

 

 

 
   Derivative assets
 
   Fair Value    
In millions
   December 31,
2011 		  December 31,
2010 		  Balance Sheet Location

Derivatives designated as hedging instruments

                

Commodity swap contracts

   $ —   $ 20   Prepaid expenses and other current assets

Commodity swap contracts

     —     1   Other assets

Interest rate contract

     82     41   Other assets
             

Total derivative assets

   $ 82   $ 62    
             

 

 
   Derivative liabilities
 
   Fair Value    
In millions
   December 31,
2011 		  December 31,
2010 		  Balance Sheet Location

Derivatives designated as hedging instruments

                

Foreign currency forward contracts

   $ 7   $ 1   Other accrued expenses

Commodity swap contracts

     16     —   Other accrued expenses
             

Total derivatives designated as hedging instruments

     23     1    
             

Derivatives not designated as hedging instruments

                

Foreign currency forward contracts

     1     —   Other accrued expenses

Commodity swap contracts

     6     —   Other accrued expenses
             

Total derivatives not designated as hedging instruments

     7     —    
             

Total derivative liabilities

   $ 30   $ 1