Fair Value Of Financial Instruments

12 Months Ended

Dec. 31, 2011

Fair Value Of Financial Instruments [Abstract]

Fair Value Of Financial Instruments

D. FAIR VALUE OF FINANCIAL INSTRUMENTS

Our financial instruments include cash and equivalents, marketable securities and other investments; accounts receivable and accounts payable; short- and long-term debt; and derivative financial instruments. We did not have any significant non-financial assets or liabilities measured at fair value on December 31, 2010 or 2011.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between marketplace participants. Various valuation approaches can be used to determine fair value, each requiring different valuation inputs.

The following hierarchy classifies the inputs used to determine fair value into three levels:

• Level 1 – quoted prices in active markets for identical assets or liabilities;

• Level 2 – inputs, other than quoted prices, observable by a marketplace participant either directly or indirectly; and

• Level 3 – unobservable inputs significant to the fair value measurement.

The carrying values of cash and equivalents, accounts receivable and payable, and short-term debt (commercial paper) on the Consolidated Balance Sheet approximate their fair value. The following tables present the fair values of our other financial assets and liabilities on December 31, 2010 and 2011, and the basis for determining their fair values:

Financial assets (liabilities) (a)	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs   (Level 2) (b)
	December 31, 2010
Marketable securities:
Available-for-sale	$	47	$	47	$	47	$	–
Held-to-maturity		165		165		–		165
Other investments		113		113		55		58
Derivatives		130		130		–		130
Long-term debt, including current portion		(3,203)		(3,436)		–		(3,436)

	December 31, 2011
Marketable securities:
Available-for-sale	$	70	$	70	$	70	$	–
Held-to-maturity		178		175		–		175
Other investments		145		145		89		56
Derivatives		34		34		–		34
Long-term debt, including current portion		(3,930)		(4,199)		–		(4,199)

(a) We had no Level 3 financial instruments on December 31, 2010 or 2011.

(b) Determined under a market approach using valuation models that incorporate observable inputs such as interest rates, bond yields and quoted prices for similar assets and liabilities.