DERIVATIVES (Tables)
|
9 Months Ended |
Sep. 25, 2011 |
|---|
| DERIVATIVES |
|
| Outstanding foreign currency forward contracts |
|
|
|
|
Notional amount in millions
|
|
|
|
|
September 25,
|
|
December 31,
|
|
|
Currency denomination
|
|
2011
|
|
2010
|
|
|
United States Dollar (USD)
|
|
162
|
|
142
|
|
|
British Pound Sterling (GBP)
|
|
365
|
|
87
|
|
|
Euro (EUR)
|
|
54
|
|
46
|
|
|
Singapore Dollar (SGD)
|
|
19
|
|
17
|
|
|
Indian Rupee (INR)
|
|
2,183
|
|
1,275
|
|
|
Japanese Yen (JPY)
|
|
3,696
|
|
3,722
|
|
|
Canadian Dollar (CAD)
|
|
41
|
|
39
|
|
|
South Korea Won (KRW)
|
|
36,112
|
|
28,028
|
|
|
Chinese Renmimbi (CNY)
|
|
39
|
|
60
|
|
|
|
|
| Outstanding commodity swap contracts entered to hedge certain raw material purchases |
|
|
Dollars in millions
|
|
September 25, 2011
|
|
December 31, 2010
|
|
|
Commodity
|
|
Notional Amount
|
|
Quantity
|
|
Notional Amount
|
|
Quantity
|
|
|
Copper
|
|
$
|
74
|
|
8,183 metric tons(1)
|
|
$
|
55
|
|
7,560 metric tons(1)
|
|
|
Platinum
|
|
61
|
|
34,058 troy ounces(2)
|
|
11
|
|
9,157 troy ounces(2)
|
|
|
Palladium
|
|
5
|
|
6,509 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
|
|
Nine months ended
|
|
|
In millions
|
|
September 25, 2011
|
|
September 26, 2010
|
|
September 25, 2011
|
|
September 26, 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
|
|
$
|
30
|
|
$
|
(30
|
)
|
$
|
14
|
|
$
|
(14
|
)
|
$
|
40
|
|
$
|
(40
|
)
|
$
|
36
|
|
$
|
(36
|
)
|
|
|
| Location and amounts of gains and losses for derivative instruments classified as cash flow hedges |
|
|
|
|
|
|
Three months ended
|
|
Nine months ended
|
|
|
In millions
Derivatives in Cash
|
|
Location of
Gain/(Loss)
Reclassified
into Income
|
|
Amount of Gain/(Loss)
Recognized in
AOCL on Derivative
(Effective Portion)
|
|
Amount of Gain/(Loss)
Reclassified from
AOCL into Income
(Effective Portion)
|
|
Amount of Gain/(Loss)
Recognized in
AOCL on Derivative
(Effective Portion)
|
|
Amount of Gain/(Loss)
Reclassified from
AOCL into Income
(Effective Portion)
|
|
|
Flow Hedging
Relationships
|
|
(Effective
Portion)
|
|
September 25,
2011
|
|
September 26,
2010
|
|
September 25,
2011
|
|
September26,
2010
|
|
September 25,
2011
|
|
September 26,
2010
|
|
September 25,
2011
|
|
September 26,
2010
|
|
|
Foreign currency forward contracts
|
|
Net sales
|
|
$
|
(8
|
)
|
$
|
2
|
|
$
|
1
|
|
$
|
(1
|
)
|
$
|
(3
|
)
|
$
|
(5
|
)
|
$
|
5
|
|
$
|
(5
|
)
|
|
Commodity swap contracts
|
|
Cost of sales
|
|
(13
|
)
|
8
|
|
4
|
|
1
|
|
(18
|
)
|
4
|
|
18
|
|
5
|
|
|
Total
|
|
|
|
$
|
(21
|
)
|
$
|
10
|
|
$
|
5
|
|
$
|
|
|
$
|
(21
|
)
|
$
|
(1
|
)
|
$
|
23
|
|
$
|
|
|
|
|
| Location and amounts of gains and losses for derivative instruments that are not classified as hedges |
|
|
|
|
|
|
Three months ended
|
|
Nine 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
|
|
Recognized in Income
|
|
September 25,
|
|
September 26,
|
|
September 25,
|
|
September 26,
|
|
|
Hedging Instruments
|
|
on Derivatives
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
Foreign currency forward contracts
|
|
Cost of sales
|
|
$
|
2
|
|
$
|
(6
|
)
|
$
|
(1
|
)
|
$
|
(4
|
)
|
|
Foreign currency forward contracts
|
|
Other income (expense), net
|
|
(15
|
)
|
12
|
|
(20
|
)
|
6
|
|
|
|
| Location and fair value of derivative instruments |
|
|
|
|
Derivative assets
|
|
|
|
|
Fair Value
|
|
|
|
|
|
|
September 25,
|
|
December 31,
|
|
|
|
|
In millions
|
|
2011
|
|
2010
|
|
Balance Sheet Location
|
|
|
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
Commodity swap contracts
|
|
$
|
|
|
$
|
20
|
|
Prepaid expenses and other current assets
|
|
|
Commodity swap contracts
|
|
|
|
1
|
|
Other assets
|
|
|
Interest rate contract
|
|
81
|
|
41
|
|
Other assets
|
|
|
Total derivatives designated as hedging instruments
|
|
81
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivative assets
|
|
$
|
81
|
|
$
|
62
|
|
|
|
|
|
Derivative liabilities
|
|
|
|
|
Fair Value
|
|
|
|
|
|
|
September 25,
|
|
December 31,
|
|
|
|
|
In millions
|
|
2011
|
|
2010
|
|
Balance Sheet Location
|
|
|
Derivatives designated as hedging instruments
|
|
|
|
|
|
|
|
|
Commodity swap contracts
|
|
$
|
16
|
|
$
|
|
|
Other accrued expenses
|
|
|
Commodity swap contracts
|
|
1
|
|
|
|
Other liabilities and deferred revenue
|
|
|
Foreign currency forward contracts
|
|
8
|
|
1
|
|
Other accrued expenses
|
|
|
Total derivatives designated as hedging instruments
|
|
25
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments
|
|
|
|
|
|
|
|
|
Foreign currency forward contracts
|
|
3
|
|
|
|
Other accrued expenses
|
|
|
Total derivatives not designated as hedging instruments
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total derivative liabilities
|
|
$
|
28
|
|
$
|
1
|
|
|
|
|
|