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DERIVATIVES (Tables)
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9 Months Ended |
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Sep. 30, 2012
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| Derivatives |
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| Gains and losses on interest rate swap |
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Three months ended
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Nine months ended
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In millions
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September 30, 2012
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September 25, 2011
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September 30, 2012
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September 25, 2011
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Income Statement
Classification
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Gain/(Loss) on
Swaps
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Gain/(Loss) on
Borrowings
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Gain/(Loss) on
Swaps
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Gain/(Loss) on
Borrowings
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Gain/(Loss) on
Swaps
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Gain/(Loss) on
Borrowings
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Gain/(Loss) on
Swaps
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Gain/(Loss) on
Borrowings
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|
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Interest expense
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$
|
1
|
|
$
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(1
|
)
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$
|
30
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$
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(30
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)
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$
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6
|
|
$
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(6
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)
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$
|
40
|
|
$
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(40
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)
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|
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| Location and amounts of gains and losses for derivative instruments classified as cash flow hedges |
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Location of
Gain/(Loss)
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Three months ended
|
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Nine months ended
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In millions
Derivatives in Cash
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Reclassified
into Income
(Effective
Portion)
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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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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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Flow Hedging
|
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September 30,
|
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September 25,
|
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September 30,
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September 25,
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September 30,
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September 25,
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September 30,
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September 25,
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Relationships
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2012
|
|
2011
|
|
2012
|
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2011
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|
2012
|
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2011
|
|
2012
|
|
2011
|
|
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Foreign currency forward contracts
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Net sales
|
|
$
|
5
|
|
$
|
(8
|
)
|
$
|
(1
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)
|
$
|
1
|
|
$
|
8
|
|
$
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(3
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)
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$
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(3
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)
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$
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5
|
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Commodity swap contracts
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Cost of sales
|
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10
|
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(13
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)
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(3
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)
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4
|
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13
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(18
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)
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(8
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)
|
18
|
|
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Total
|
|
|
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$
|
15
|
|
$
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(21
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)
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$
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(4
|
)
|
$
|
5
|
|
$
|
21
|
|
$
|
(21
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)
|
$
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(11
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)
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$
|
23
|
|
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| 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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Nine months ended
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In millions
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Location of Gain/(Loss)
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Amount of Gain/(Loss) Recognized in
Income on Derivatives
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Amount of Gain/(Loss) Recognized in
Income on Derivatives
|
|
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Derivatives Not Designated as
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Recognized in Income
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September 30,
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September 25,
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September 30,
|
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September 25,
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Hedging Instruments
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on Derivatives
|
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2012
|
|
2011
|
|
2012
|
|
2011
|
|
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Foreign currency forward contracts
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Cost of sales
|
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$
|
(1
|
)
|
$
|
2
|
|
$
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(4
|
)
|
$
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(1
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)
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Foreign currency forward contracts
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Other income (expense), net
|
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13
|
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(15
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)
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18
|
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(20
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)
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Commodity swap contracts
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Cost of sales
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2
|
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—
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1
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—
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Commodity zero-cost collars
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Cost of sales
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1
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—
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1
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—
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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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September 30,
|
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December 31,
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In millions
|
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2012
|
|
2011
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Balance Sheet Location
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Derivatives designated as hedging instruments
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Interest rate contract
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$
|
88
|
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$
|
82
|
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Other assets
|
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Commodity swap contracts
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|
5
|
|
—
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Prepaid expenses and other current assets
|
|
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Foreign currency forward contracts
|
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4
|
|
—
|
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Prepaid expenses and other current assets
|
|
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Commodity swap contracts
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1
|
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—
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Other assets
|
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Total derivatives designated as hedging instruments
|
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98
|
|
82
|
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Derivatives not designated as hedging instruments
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Foreign currency forward contracts
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1
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—
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Prepaid expenses and other current assets
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Commodity call option contracts
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1
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—
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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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$
|
100
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|
$
|
82
|
|
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Derivative Liabilities
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Fair Value
|
|
|
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|
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September 30,
|
|
December 31,
|
|
|
|
|
In millions
|
|
2012
|
|
2011
|
|
Balance Sheet Location
|
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Derivatives designated as hedging instruments
|
|
|
|
|
|
|
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Commodity swap contracts
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|
$
|
—
|
|
$
|
16
|
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Other accrued expenses
|
|
|
Foreign currency forward contracts
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|
—
|
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7
|
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Other accrued expenses
|
|
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Total derivatives designated as hedging instruments
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—
|
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23
|
|
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|
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|
|
|
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Derivatives not designated as hedging instruments
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|
|
|
|
|
|
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Commodity swap contracts
|
|
—
|
|
6
|
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Other accrued expenses
|
|
|
Foreign currency forward contracts
|
|
1
|
|
1
|
|
Other accrued expenses
|
|
|
Total derivatives not designated as hedging instruments
|
|
1
|
|
7
|
|
|
|
|
Total derivative liabilities
|
|
$
|
1
|
|
$
|
30
|
|
|
|
|
|
|
|
Foreign currency forward contracts
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| Derivatives |
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| Summary of outstanding contracts |
|
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Notional amount in millions
|
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September 30,
|
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December 31,
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Currency denomination
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|
2012
|
|
2011
|
|
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United States Dollar (USD)
|
|
147
|
|
181
|
|
|
British Pound Sterling (GBP)
|
|
240
|
|
347
|
|
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Euro (EUR)
|
|
33
|
|
47
|
|
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Singapore Dollar (SGD)
|
|
8
|
|
20
|
|
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Indian Rupee (INR)
|
|
1,565
|
|
1,701
|
|
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Japanese Yen (JPY)
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1,788
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|
3,348
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Canadian Dollar (CAD)
|
|
52
|
|
39
|
|
|
South Korea Won (KRW)
|
|
51,107
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36,833
|
|
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Chinese Renmimbi (CNY)
|
|
78
|
|
61
|
|
|
|
|
|
Commodity swap contracts
|
|
| Derivatives |
|
| Summary of outstanding contracts |
|
|
Dollars in millions
|
|
September 30, 2012
|
|
December 31, 2011
|
|
|
Commodity
|
|
Notional Amount
|
|
Quantity
|
|
Notional Amount
|
|
Quantity
|
|
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Copper
|
|
$
|
44
|
|
5,420
|
|
metric tons (1)
|
|
$
|
78
|
|
9,220
|
|
metric tons (1)
|
|
|
Platinum
|
|
79
|
|
50,631
|
|
troy ounces (2)
|
|
84
|
|
50,750
|
|
troy ounces (2)
|
|
|
Palladium
|
|
8
|
|
12,687
|
|
troy ounces (2)
|
|
5
|
|
7,141
|
|
troy ounces (2)
|
|
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(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.
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|
|
|
Commodity zero cost collars
|
|
| Derivatives |
|
| Summary of outstanding contracts |
|
|
|
|
September 30, 2012
|
|
|
|
|
Commodity
|
|
Average Floor
or Cap
|
|
Quantity in
metric tons (1)
|
|
|
|
|
|
|
Copper call options
|
|
$
|
8,192
|
|
2,000
|
|
|
|
|
|
|
|
Copper put options
|
|
6,702
|
|
2,000
|
|
|
|
|
|
|
|
|
|
|
|
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(1) A metric ton is a measurement of mass equal to 1,000 kilograms.
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