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DERIVATIVES (Tables)
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3 Months Ended |
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Mar. 31, 2013
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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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In millions
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March 31, 2013
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April 1, 2012
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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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Interest expense
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$
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(11
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)
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$
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11
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$
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(12
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)
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$
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12
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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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Three months ended
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Location of Gain/(Loss)
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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In millions
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March 31,
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April 1,
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March 31,
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April 1,
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Derivatives in Cash Flow Hedging Relationships
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2013
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2012
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2013
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2012
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Foreign currency forward contracts
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Net sales
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$
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(9
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)
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$
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8
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$
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—
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$
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(2
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)
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Commodity swap contracts
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Cost of sales
|
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3
|
|
13
|
|
2
|
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(3
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)
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Total
|
|
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$
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(6
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)
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$
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21
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$
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2
|
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$
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(5
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)
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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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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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Derivatives Not Designated as
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Recognized in Income
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March 31,
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April 1,
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Hedging Instruments
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on Derivatives
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2013
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|
2012
|
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Foreign currency forward contracts
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Cost of sales
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$
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3
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$
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(3
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)
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Foreign currency forward contracts
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Other income (expense), net
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(27
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)
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14
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Commodity zero-cost collars
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Cost of sales
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(2
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)
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—
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Commodity swap contract
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Cost of sales
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—
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(2
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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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March 31,
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December 31,
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In millions
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2013
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|
2012
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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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$
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77
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$
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88
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Other assets
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Commodity swap contracts
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2
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|
1
|
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Prepaid expenses and other current assets
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Foreign currency forward contracts
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—
|
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2
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Prepaid expenses and other current assets
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Total derivatives designated as hedging instruments
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79
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91
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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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1
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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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1
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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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2
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Total derivative assets
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$
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81
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$
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93
|
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Derivative Liabilities
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Fair Value
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March 31,
|
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December 31,
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In millions
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2013
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|
2012
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Balance Sheet Location
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Derivatives designated as hedging instruments
|
|
|
|
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|
|
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Foreign currency forward contracts
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$
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7
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$
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—
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Other accrued expenses
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Commodity swap contracts
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1
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|
2
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Other accrued expenses
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Total derivatives designated as hedging instruments
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8
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2
|
|
|
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Derivatives not designated as hedging instruments
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|
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Commodity put option contracts
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1
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1
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Other accrued expenses
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Commodity swap contracts
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1
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—
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Other accrued expenses
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Foreign currency forward contracts
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1
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—
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Other accrued expenses
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Total derivatives not designated as hedging instruments
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3
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|
1
|
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Total derivative liabilities
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$
|
11
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|
$
|
3
|
|
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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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March 31,
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December 31,
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Currency denomination
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2013
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|
2012
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United States Dollar (USD)
|
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121
|
|
110
|
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British Pound Sterling (GBP)
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197
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227
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Euro (EUR)
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31
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28
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Singapore Dollar (SGD)
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—
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3
|
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Indian Rupee (INR)
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2,418
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1,943
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Japanese Yen (JPY)
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|
199
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384
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Canadian Dollar (CAD)
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54
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59
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South Korea Won (KRW)
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30,350
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35,266
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Chinese Renmimbi (CNY)
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|
60
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45
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Commodity swap contracts
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| Derivatives |
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| Summary of outstanding contracts |
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Dollars in millions
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March 31, 2013
|
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December 31, 2012
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Commodity
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Notional Amount
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Quantity
|
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Notional Amount
|
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Quantity
|
|
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Copper
|
|
$
|
12
|
|
1,500 metric tons (1)
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$
|
24
|
|
3,025 metric tons (1)
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Platinum
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|
59
|
|
36,735 troy ounces (2)
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|
71
|
|
45,126 troy ounces (2)
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|
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Palladium
|
|
10
|
|
14,066 troy ounces (2)
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|
10
|
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14,855 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 |
|
|
|
March 31, 2013
|
|
December 31, 2012
|
|
|
|
|
Average Floor
|
|
Quantity in
|
|
Average Floor
|
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Quantity in
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|
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Commodity
|
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or Cap
|
|
metric tons (1)
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or Cap
|
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metric tons (1)
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|
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Copper call options
|
|
$
|
8,294
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5,312
|
|
$
|
8,196
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|
4,100
|
|
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Copper put options
|
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7,327
|
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5,312
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7,005
|
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4,100
|
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(1) A metric ton is a measurement of mass equal to 1,000 kilograms.
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