Fair Value (Tables)

9 Months Ended

Sep. 30, 2013

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 (in millions):



	Fair Value Measurements at September 30, 2013
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1		Level 2		Level 3
Interest rate contracts	$	—	$	15	$	—
Foreign exchange forward contracts	—		2		—
Marketable securities - trading	19		—		—
Total assets	$	19	$	17	$	—

Commodity contracts	$	—	$	9	$	—
Interest rate contracts	—		18		—
Total liabilities	$	—	$	27	$	—

The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 (in millions):



	Fair Value Measurements at December 31, 2012
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Level 1		Level 2		Level 3
Commodity contracts	$	—	$	5	$	—
Interest rate contracts	—		35		—
Total assets	$	—	$	40	$	—

Commodity contracts	$	—	$	1	$	—
Interest rate contracts	—		3		—
Foreign exchange forward contracts	—		2		—
Total liabilities	$	—	$	6	$	—

Fair Value Measurements, Nonrecurring

The estimated fair values of long-term obligations as of September 30, 2013 and December 31, 2012, are as follows (in millions):



	September 30, 2013				December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt – 2013 Notes⁽¹⁾	$	—	$	—	$	250	$	255
Long-term debt – 2016 Notes	500		521		500		528
Long-term debt – 2018 Notes	724		868		724		919
Long-term debt – 2019 Notes⁽²⁾	249		254		253		256
Long-term debt – 2020 Notes⁽²⁾	243		237		247		245
Long-term debt – 2021 Notes⁽²⁾	244		245		254		253
Long-term debt – 2022 Notes⁽²⁾	249		232		249		250
Long-term debt – 2038 Notes⁽²⁾	256		321		271		366

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(1)	The repayment of the 2013 Notes occurred on May 1, 2013 at maturity.


(2)	The carrying amount includes the unamortized discounts on the issuance of debt and adjustments related to the change in the fair value of interest rate swaps designated as fair value hedges on the 2019, 2020, 2021 and 2038 Notes. Refer to Note 7 for additional information regarding derivatives.