|
DERIVATIVES (Tables)
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12 Months Ended |
|
Dec. 31, 2012
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| Derivatives |
|
| Gains and losses on interest rate swap |
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For the years ended December 31, |
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2012 |
|
2011 |
|
|
In millions
Income Statement Classification
|
|
Gain/(Loss)
on
Swaps |
|
Gain/(Loss)
on
Borrowings |
|
Gain/(Loss)
on
Swaps |
|
Gain/(Loss)
on
Borrowings |
|
|
Interest expense
|
|
$ |
6 |
|
$ |
(6 |
) |
$ |
41 |
|
$ |
(41 |
) |
|
| Location and amounts of gains and losses for derivative instruments classified as cash flow hedges |
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For the years ended December 31, |
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|
Amount of
Gain/(Loss)
Recognized in
AOCL on
Derivative
(Effective Portion) |
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Amount of
Gain/(Loss)
Reclassified from
AOCL into Income
(Effective Portion) |
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|
Location of Gain/(Loss)
Reclassified into Income
(Effective Portion) |
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|
In millions
Derivatives in Cash Flow Hedging Relationships
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
Foreign currency forward contracts
|
|
Net sales |
|
$ |
8 |
|
$ |
(4 |
) |
$ |
(2 |
) |
$ |
3 |
|
|
Commodity swap contracts
|
|
Cost of sales |
|
|
8 |
|
|
(22 |
) |
|
(9 |
) |
|
19 |
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| |
|
|
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|
|
|
|
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|
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Total
|
|
|
|
$ |
16 |
|
$ |
(26 |
) |
$ |
(11 |
) |
$ |
22 |
|
| |
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| Location and amounts of gains and losses for derivative instruments that are not classified as hedges |
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For the years ended December 31, |
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|
Amount of
Gain/(Loss)
Recognized in
Income on
Derivatives |
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|
In millions
Derivatives Not Designated as
Hedging Instruments
|
|
Location of Gain/(Loss)
Recognized in
Income on Derivatives |
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| |
2012 |
|
2011 |
|
|
Foreign currency forward contracts
|
|
Cost of sales |
|
$ |
(4 |
) |
$ |
(2 |
) |
|
Foreign currency forward contracts
|
|
Other income (expense), net |
|
|
11 |
|
|
(14 |
) |
|
Commodity zero-cost collars
|
|
Cost of sales |
|
|
1 |
|
|
— |
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Commodity swap contracts
|
|
Cost of sales |
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|
— |
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|
(6 |
) |
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| Location and fair value of derivative instruments |
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Derivative Assets |
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Fair Value |
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|
In millions
|
|
December 31,
2012 |
|
December 31,
2011 |
|
Balance Sheet Location |
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Derivatives designated as hedging instruments
|
|
|
|
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|
|
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Interest rate contract
|
|
$ |
88 |
|
$ |
82 |
|
Other assets |
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Foreign currency forward contracts
|
|
|
2 |
|
|
— |
|
Prepaid expenses and other current assets |
|
Commodity swap contracts
|
|
|
1 |
|
|
— |
|
Prepaid expenses and other current assets |
| |
|
|
|
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|
Total derivatives designated as hedging instruments
|
|
|
91 |
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|
82 |
|
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| |
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Derivatives not designated as hedging instruments
|
|
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Foreign currency forward contracts
|
|
|
1 |
|
|
— |
|
Prepaid expenses and other current assets |
|
Commodity call option contracts
|
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|
1 |
|
|
— |
|
Other assets |
| |
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Total derivatives not designated as hedging instruments
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2 |
|
|
— |
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| |
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Total derivative assets
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|
$ |
93 |
|
$ |
82 |
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| |
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Derivative Liabilities |
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|
Fair Value |
|
|
In millions
|
|
December 31,
2012 |
|
December 31,
2011 |
|
Balance Sheet Location |
|
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
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Commodity swap contracts
|
|
$ |
2 |
|
$ |
16 |
|
Other accrued expenses |
|
Foreign currency forward contracts
|
|
|
— |
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|
7 |
|
Other accrued expenses |
| |
|
|
|
|
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Total derivatives designated as hedging instruments
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|
|
2 |
|
|
23 |
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| |
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Derivatives not designated as hedging instruments
|
|
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Commodity put option contracts
|
|
|
1 |
|
|
— |
|
Other accrued expenses |
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Commodity swap contracts
|
|
|
— |
|
|
6 |
|
Other accrued expenses |
|
Foreign currency forward contracts
|
|
|
— |
|
|
1 |
|
Other accrued expenses |
| |
|
|
|
|
|
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|
Total derivatives not designated as hedging instruments
|
|
|
1 |
|
|
7 |
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| |
|
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Total derivative liabilities
|
|
$ |
3 |
|
$ |
30 |
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| |
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Foreign currency forward contracts
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| Derivatives |
|
| Summary of outstanding contracts |
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Notional amount in millions |
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Currency denomination
|
|
December 31,
2012 |
|
December 31,
2011 |
|
|
United States Dollar (USD)
|
|
|
110 |
|
|
181 |
|
|
British Pound Sterling (GBP)
|
|
|
227 |
|
|
347 |
|
|
Euro (EUR)
|
|
|
28 |
|
|
47 |
|
|
Singapore Dollar (SGD)
|
|
|
3 |
|
|
20 |
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|
Indian Rupee (INR)
|
|
|
1,943 |
|
|
1,701 |
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|
Japanese Yen (JPY)
|
|
|
384 |
|
|
3,348 |
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|
Canadian Dollar (CAD)
|
|
|
59 |
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|
39 |
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|
South Korea Won (KRW)
|
|
|
35,266 |
|
|
36,833 |
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|
Chinese Renmimbi (CNY)
|
|
|
45 |
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|
61 |
|
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|
Commodity swap contracts
|
|
| Derivatives |
|
| Summary of outstanding contracts |
|
|
|
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|
December 31, 2012 |
|
December 31, 2011 |
|
Dollars in millions
Commodity
|
|
Notional
Amount |
|
Quantity |
|
Notional
Amount |
|
Quantity |
|
Copper
|
|
$ |
24 |
|
3,025 metric tons(1) |
|
$ |
78 |
|
9,220 metric tons(1) |
|
Platinum
|
|
|
71 |
|
45,126 troy ounces(2) |
|
|
84 |
|
50,750 troy ounces(2) |
|
Palladium
|
|
|
10 |
|
14,855 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.
|
|
Commodity zero cost collars
|
|
| Derivatives |
|
| Summary of outstanding contracts |
|
|
|
|
|
|
|
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|
December 31, 2012 |
|
|
Commodity
|
|
Average
Floor or Cap |
|
Quantity in
metric tons(1) |
|
|
Copper call options
|
|
$ |
8,196 |
|
|
4,100 |
|
|
Copper put options
|
|
|
7,005 |
|
|
4,100 |
|
- (1)
- A metric ton is a measurement of mass equal to 1,000 kilograms.
|