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DERIVATIVES (Tables)
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6 Months Ended |
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Jun. 30, 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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Six months ended
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In millions
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June 30, 2013
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July 1, 2012
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June 30, 2013
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July 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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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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(17
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)
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$
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17
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$
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17
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$
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(17
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)
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$
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(28
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)
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$
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28
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$
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5
|
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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 classified as cash flow hedges |
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Three months ended
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Six months ended
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Location of
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Amount of Gain/(Loss)
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Amount of Gain/(Loss)
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Amount of Gain/(Loss)
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Amount of Gain/(Loss)
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Gain/(Loss)
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Recognized in
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Reclassified from
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Recognized in
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Reclassified from
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In millions
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Reclassified
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AOCL on Derivative
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AOCL into Income
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AOCL on Derivative
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AOCL into Income
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Derivatives in Cash
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into Income
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(Effective Portion)
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(Effective Portion)
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(Effective Portion)
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(Effective Portion)
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Flow Hedging
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(Effective
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June 30,
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July 1,
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June 30,
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July 1,
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June 30,
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July 1,
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June 30,
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July 1,
|
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Relationships
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Portion)
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2013
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2012
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2013
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2012
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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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1
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$
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(5
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)
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$
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(2
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)
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$
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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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3
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$
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(2
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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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(12
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)
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(10
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)
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1
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(2
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)
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(9
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)
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3
|
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3
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(5
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)
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Total
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$
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(11
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)
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$
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(15
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)
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$
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(1
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)
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$
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(2
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)
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$
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(17
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)
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$
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6
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$
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1
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$
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(7
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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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Six months ended
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Amount of Gain/(Loss) Recognized in
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Amount of Gain/(Loss) Recognized in
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In millions
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Location of Gain/(Loss)
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Income on Derivatives
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Income on Derivatives
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Derivatives Not Designated as
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Recognized in Income
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June 30,
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July 1,
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June 30,
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July 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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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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—
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$
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—
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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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5
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(9
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)
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(22
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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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—
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(6
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)
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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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(2
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)
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—
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(4
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)
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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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June 30,
|
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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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60
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$
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88
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Other 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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Commodity swap contracts
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—
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1
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Prepaid expenses and other current assets
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Total derivatives designated as hedging instruments
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60
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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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62
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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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June 30,
|
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December 31,
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In millions
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|
2013
|
|
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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|
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Commodity swap contracts
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$
|
11
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$
|
2
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Other accrued expenses
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Foreign currency forward contracts
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4
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—
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Other accrued expenses
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Total derivatives designated as hedging instruments
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15
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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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4
|
|
1
|
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Other accrued expenses
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Foreign currency forward contracts
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3
|
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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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7
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1
|
|
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Total derivative liabilities
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$
|
22
|
|
$
|
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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June 30,
|
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December 31,
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Currency denomination
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2013
|
|
2012
|
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United States Dollar (USD)
|
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109
|
|
110
|
|
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British Pound Sterling (GBP)
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207
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|
227
|
|
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Euro (EUR)
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18
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28
|
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Indian Rupee (INR)
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2,401
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1,943
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Japanese Yen (JPY)
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1,151
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384
|
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Canadian Dollar (CAD)
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59
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59
|
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South Korea Won (KRW)
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31,938
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35,266
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Chinese Renmimbi (CNY)
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|
66
|
|
45
|
|
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Singapore Dollar (SGD)
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|
—
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3
|
|
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Commodity swap contracts
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| Derivatives |
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| Summary of outstanding contracts |
|
Dollars in millions
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June 30, 2013
|
|
December 31, 2012
|
|
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Commodity
|
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Notional Amount
|
|
Quantity
|
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Notional Amount
|
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Quantity
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|
Copper
|
|
$
|
—
|
|
— metric tons
|
(1)
|
$
|
24
|
|
3,025 metric tons
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(1)
|
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Platinum
|
|
62
|
|
39,926 troy ounces
|
(2)
|
71
|
|
45,126 troy ounces
|
(2)
|
|
Palladium
|
|
15
|
|
20,153 troy ounces
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(2)
|
10
|
|
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 |
|
|
|
June 30, 2013
|
|
December 31, 2012
|
|
|
Commodity
|
|
Average Floor
or Cap
|
|
Quantity in
metric tons (1)
|
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Average Floor
or Cap
|
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Quantity in
metric tons (1)
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|
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Copper call options
|
|
$
|
8,063
|
|
6,074
|
|
$
|
8,196
|
|
4,100
|
|
|
Copper put options
|
|
7,144
|
|
6,074
|
|
7,005
|
|
4,100
|
|
|
|
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(1)A metric ton is a measurement of mass equal to 1,000 kilograms.
|