Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVES (Tables)

 v2.3.0.11
DERIVATIVES (Tables)
6 Months Ended
Jun. 26, 2011
DERIVATIVES  
Outstanding foreign currency forward contracts

 

 

 

 

Notional amount in millions

 

 

 

June 26,

 

December 31,

 

Currency denomination

 

2011

 

2010

 

United States Dollar (USD)

 

164

 

142

 

British Pound Sterling (GBP)

 

336

 

87

 

Euro (EUR)

 

62

 

46

 

Singapore Dollar (SGD)

 

22

 

17

 

Indian Rupee (INR)

 

1,852

 

1,275

 

Japanese Yen (JPY)

 

2,801

 

3,722

 

Canadian Dollar (CAD)

 

38

 

39

 

South Korea Won (KRW)

 

32,965

 

28,028

 

Chinese Renmimbi (CNY)

 

446

 

60

 

Outstanding commodity swap contracts entered to hedge certain raw material purchases

 

Dollars in millions

 

June 26, 2011

 

December 31, 2010

 

Commodity

 

Notional Amount

 

Quantity

 

Notional Amount

 

Quantity

 

Copper

 

$

72

 

8,396 metric tons

(1)

$

55

 

7,560 metric tons

(1)

Platinum

 

59

 

33,920 troy ounces

(2)

11

 

9,157 troy ounces

(2)

Palladium

 

5

 

6,345 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

 

 

 

 

Three months ended

 

Six months ended

 

In millions

 

June 26, 2011

 

June 27, 2010

 

June 26, 2011

 

June 27, 2010

 

Income Statement

Classification

 

Gain/(Loss) on
Swaps

 

Gain/(Loss) on Borrowings

 

Gain/(Loss) on Swaps

 

Gain/(Loss) on Borrowings

 

Gain/(Loss) on Swaps

 

Gain/(Loss) on Borrowings

 

Gain/(Loss) on Swaps

 

Gain/(Loss) on Borrowings

 

Interest expense

 

$

18

 

$

(18

)

$

22

 

$

(22

)

$

10

 

$

(10

)

$

22

 

$

(22

)

Location and amounts of gains and losses for derivative instruments classified as cash flow hedges

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

 

Location of

 

Amount of Gain/(Loss)

 

Amount of Gain/(Loss)

 

Amount of Gain/(Loss)

 

Amount of Gain/(Loss)

 

 

 

Gain/(Loss)

 

Recognized in

 

Reclassified from

 

Recognized in

 

Reclassified from

 

In millions

 

Reclassified

 

AOCL on Derivative

 

AOCL into Income

 

AOCL on Derivative

 

AOCL into Income

 

Derivatives in Cash

 

into Income

 

(Effective Portion)

 

(Effective Portion)

 

(Effective Portion)

 

(Effective Portion)

 

Flow Hedging
Relationships

 

(Effective
Portion)

 

June 26,
2011

 

June 27,
2010

 

June 26,
2011

 

June 27,
2010

 

June 26,
2011

 

June 27,
2010

 

June 26,
2011

 

June 27,
2010

 

Foreign currency forward contracts

 

Net sales

 

$

1

 

$

1

 

$

3

 

$

(3

)

$

5

 

$

(7

)

$

4

 

$

(4

)

Commodity swap contracts

 

Cost of sales

 

(7

)

(6

)

8

 

2

 

(5

)

(4

)

14

 

4

 

Total

 

 

 

$

(6

)

$

(5

)

$

11

 

$

(1

)

$

—

 

$

(11

)

$

18

 

$

—

 

Location and amounts of gains and losses for derivative instruments that are not classified as hedges

 

 

 

 

 

 

Three months ended

 

Six months ended

 

In millions

 

Location of Gain/(Loss)

 

Amount of Gain/(Loss) Recognized
in Income on Derivatives

 

Amount of Gain/(Loss) Recognized
in Income on Derivatives

 

Derivatives Not Designated as Hedging Instruments

 

Recognized in Income on Derivatives

 

June 26,
2011

 

June 27,
2010

 

June 26,
2011

 

June 27,
2010

 

Foreign currency forward contracts

 

Cost of sales

 

$

1

 

$

(2

)

$

(3

)

$

2

 

Foreign currency forward contracts

 

Other income (expense), net

 

(10

)

6

 

(5

)

(6

)

Location and fair value of derivative instruments

 

 

 

 

Derivative assets

 

 

 

Fair Value

 

 

 

 

 

June 26,

 

December 31,

 

 

 

In millions

 

2011

 

2010

 

Balance Sheet Location

 

Derivatives Designated as Hedging Instruments

 

 

 

 

 

 

 

Commodity swap contracts

 

$

3

 

$

20

 

Prepaid expenses and other current assets

 

Commodity swap contracts

 

—

 

1

 

Other assets

 

Interest rate contract

 

51

 

41

 

Other assets

 

Total Derivatives Designated as Hedging Instruments

 

54

 

62

 

 

 

 

 

 

 

 

 

 

 

Total derivative assets

 

$

54

 

$

62

 

 

 

 

 

 

Derivative liabilities

 

 

 

Fair Value

 

 

 

 

 

June 26,

 

December
31,

 

 

 

In millions

 

2011

 

2010

 

Balance Sheet Location

 

Derivatives Designated as Hedging Instruments

 

 

 

 

 

 

 

Commodity swap contracts

 

$

1

 

$

—

 

Other accrued expenses

 

Foreign currency forward contracts

 

—

 

1

 

Other accrued expenses

 

Total Derivatives Designated as Hedging Instruments

 

$

1

 

$

1

 

 

 

 

 

 

 

 

 

 

 

Derivatives Not Designated as Hedging Instruments

 

 

 

 

 

 

 

Foreign currency forward contracts

 

1

 

—

 

Other accrued expenses

 

Total Derivatives Not Designated as Hedging Instruments

 

1

 

—

 

 

 

 

 

 

 

 

 

 

 

Total derivative liabilities

 

$

2

 

$

1