FINANCIAL INSTRUMENTS

Investments

The Corporation’s investments in marketable securities are classified as available-for-sale.



Investing Results	Six Months Ended
In millions	Jun 30, 2011		Jun 30, 2010
Proceeds from sales of available-for-sale securities	$	5	$	4

Portfolio managers regularly review all of the Corporation’s holdings to determine if any investments are other-than-temporarily impaired. The analysis includes reviewing the amount of temporary impairment, as well as the length of time it has been impaired. In addition, specific guidelines for each instrument type are followed to determine if an other-than-temporary impairment has occurred. At June 30, 2011 and December 31, 2010, there were no impairment indicators or circumstances that would result in a material adjustment of these investments.

The Corporation’s investments in debt securities had contractual maturities of less than 10 years at June 30, 2011.



Fair Value of Financial Instruments:
	At June 30, 2011											At December 31, 2010
In millions	Cost			Gain		Loss			Fair Value			Cost			Gain		Loss			Fair Value
Marketable securities (1):
Debt securities	$	7		$	—	$	—		$	7		$	5		$	—	$	—		$	5
Total marketable securities	$	7		$	—	$	—		$	7		$	5		$	—	$	—		$	5
Long-term debt including debt due within one year	$	(507	)	$	—	$	(59	)	$	(566	)	$	(571	)	$	—	$	(23	)	$	(594	)


(1)	Included in “Other investments” in the consolidated balance sheets.

Cost approximates fair value for all other financial instruments.

The Corporation enters into foreign exchange forward contracts to hedge various currency exposures, primarily related to assets and liabilities denominated in foreign currencies. The primary business objective of the activity is to optimize the U.S. dollar value of the Corporation’s assets and liabilities. Assets and liabilities denominated in the same foreign currency are netted, and only the net exposure is hedged. The Corporation had forward contracts to buy, sell or exchange foreign currencies that expired in the second quarter of 2011 and were immaterial. The Corporation did not designate any derivatives as hedges at June 30, 2011 or December 31, 2010.