XML 71 R36.htm IDEA: XBRL DOCUMENT v2.4.0.8
DERIVATIVES AND HEDGING ACTIVITIES (Tables)
9 Months Ended
Sep. 30, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Financial Instruments [Table Text Block]
The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows:
In millions
September 30, 2014
 
December 31, 2013
 
Derivatives in Cash Flow Hedging Relationships:
 
 
 
 
Foreign exchange contracts (Sell / Buy; denominated in sell notional): (a)
 
 
 
 
Brazilian real / U.S. dollar - Forward
282

 
502

 
British pounds / Brazilian real – Forward
7

  
17

  
European euro / Brazilian real – Forward
13

  
27

  
European euro / Polish zloty – Forward
228

  
252

  
U.S. dollar / Brazilian real – Forward
127

  
290

  
U.S. dollar / Brazilian real – Zero-cost collar

  
18

  
Derivatives in Fair Value Hedging Relationships:
 
 
 
 
Interest rate contracts (in USD)
230

 
175

 
Derivatives Not Designated as Hedging Instruments:
 
 
 
 
Foreign exchange contracts (Sell / Buy; denominated in sell notional): (b)
 
 
 
 
Indian rupee / U.S. dollar - Forward

  
157

  
Mexican peso / U.S. dollar - Forward
187

  

  
U.S. dollar / Brazilian real - Forward
12



 

(a)
These contracts had maturities of three years or less as of September 30, 2014.
(b)
These contracts had maturities of one year or less as of September 30, 2014.

Gains Or Losses Recognized In Accumulated Other Comprehensive Income (AOCI), Net Of Tax, Related To Derivative Instruments [Table Text Block]
The following table shows gains or losses recognized in AOCI, net of tax, related to derivative instruments: 
 
Gain (Loss)
Recognized in
AOCI
on Derivatives
(Effective Portion)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
In millions
2014
 
2013
 
2014
 
2013
Foreign exchange contracts
$
1

 
$
7

 
$
17

 
$
(3
)
Total
$
1

 
$
7

 
$
17

 
$
(3
)
Gains And Losses Recognized In Consolidated Statement Of Operations On Qualifying And Non-Qualifying Financial Instruments [Table Text Block]
The amounts of gains and losses recognized in the consolidated statement of operations on qualifying and non-qualifying financial instruments used in hedging transactions were as follows:
 
Gain (Loss)
Reclassified from
AOCI
(Effective Portion)
Location of Gain (Loss)
Reclassified from AOCI
(Effective Portion)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
In millions
2014
 
2013
 
2014
 
2013
 
Derivatives in Cash Flow Hedging Relationships:
 
 
 
 
 
 
 
 
Foreign exchange contracts
$
7

 
$
(4
)
 
$
6

 
$
5

Cost of products sold
Total
$
7

 
$
(4
)
 
$
6

 
$
5

 
 
Gain (Loss) Recognized
 
Location of Gain (Loss)
In Consolidated
Statement
of Operations
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
In millions
2014
 
2013
 
2014
 
2013
 
 
Derivatives in Fair Value Hedging Relationships:
 
 
 
 
 
 
 
 
 
Interest rate contracts
$
(1
)
 
$

 
$

 
$

 
Interest expense, net
Debt
1

 

 

 

 
Interest expense, net
Total
$

 
$

 
$

 
$

 
 
Derivatives Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
Electricity contact
$
(2
)
 
$

 
$
1

 
$
2

 
Cost of products sold
Embedded derivatives

 

 

 
(1
)
 
Interest expense, net
Foreign exchange contracts
(1
)
 

 
(1
)
 
(5
)
 
Cost of products sold
Interest rate contracts
3

(a)
7

 
10

(b)
17

 
Interest expense, net
Total
$

 
$
7

 
$
10

 
$
13

 
 

 
(a)
Excluding gain of $1 million related to debt reduction recorded to Restructuring and other charges.
(b)
Excluding gain of $7 million, net related to debt issuance and debt reduction recorded to Restructuring and other charges.

Schedule of Interest Rate Derivative Activity [Table Text Block]
The following activity is related to fully effective interest rate swaps designated as fair value hedges:
  


2014

 



2013

 
In millions
Issued
 
Terminated
 
Undesignated

Issued

Terminated
 
Undesignated
First Quarter
$
55


$

  
$


$


$


$

Total
$
55

  
$

  
$

 
$

 
$

  
$

Impact Of Derivative Instruments In Consolidated Balance Sheet [Table Text Block]
The following table provides a summary of the impact of our derivative instruments in the consolidated balance sheet:

Fair Value Measurements
Level 2 – Significant Other Observable Inputs
 
 
Assets
 
Liabilities
 
In millions
September 30, 2014
 
December 31, 2013
 
September 30, 2014
 
December 31, 2013
 
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
Foreign exchange contracts – cash flow
$
23

(a) 
$
37

(b)
$
11

(d)
$
33

(f)
Interest rate contracts - fair value




1

(e)
1

(e)
Total derivatives designated as hedging instruments
23

  
37

 
12

  
34

  
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
Electricity contract


2

(c)




Foreign exchange contracts

  


1

(d)

  
Total derivatives not designated as hedging instruments

  
2

 
1

  

  
Total derivatives
$
23

  
$
39

 
$
13

  
$
34

  
 
(a)
Includes $18 million recorded in Other current assets and $5 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.
(b)
Includes $23 million recorded in Other current assets and $14 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.
(c)
Included in Other current assets in the accompanying consolidated balance sheet.
(d)
Included in Other accrued liabilities in the accompanying consolidated balance sheet.
(e)
Included in Other liabilities in the accompanying consolidated balance sheet.
(f)
Includes $24 million recorded in Other accrued liabilities and $9 million recorded in Other liabilities in the accompanying consolidated balance sheet.