Note 3: Liabilities Subject To Compromise

6 Months Ended

Jun. 30, 2012

Liabilities Subject to Compromise, Description

NOTE 3:LIABILITIES SUBJECT TO COMPROMISE

The following table reflects pre-petition liabilities that are subject to compromise.

(in millions)	As of June 30, 2012
Accounts payable	$	299
Debt		683
Pension and postretirement obligations		1,733
Other liabilities subject to compromise		253
Liabilities subject to compromise	$	2,968

The Bankruptcy Filing constituted an event of default with respect to certain of the Company’s debt instruments. Refer to Note 7, “Short-Term Borrowings and Long-Term Debt” for additional information.  Other liabilities subject to compromise include accrued liabilities for customer programs, deferred compensation, environmental, taxes, and contract and lease rejections. The amount of liabilities subject to compromise represents the Company’s estimate, where an estimate is determinable, of known or potential pre-petition claims to be addressed in connection with the bankruptcy proceedings.  Such liabilities are reported at the Company’s current estimate, where an estimate is determinable, of the allowed claim amount, even though they may settle for lesser amounts.  These claims remain subject to future adjustments, which may result from: negotiations; actions of the Bankruptcy Court; disputed claims; rejection of contracts and unexpired leases; the determination as to the value of any collateral securing claims; proofs of claims; or other events.  Refer to Note 2, "Chapter 11 Filing" for additional information.