DERIVATIVES AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Notional Amounts of Financial Instruments

The notional amounts of qualifying and non-qualifying financial instruments used in hedging transactions were as follows:

In millions	June 30, 2012			December 31, 2011
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts (Sell/Buy; denominated in sell notional): (a)
British pounds / Brazilian real – Forward		23			26
European euro / Brazilian real – Forward		21			16
European euro / Polish zloty – Forward		183			233
U.S. dollar / Brazilian real – Forward		338			344
U.S. dollar / Brazilian real – Zero-cost collar		18			0
U.S. dollar / European euro – Forward		1			13
Natural gas contracts (in MMBTUs)		0			3
Derivatives Not Designated as Hedging Instruments:
Embedded derivative (in USD)		150			150
Foreign exchange contracts (Sell / Buy; denominated in sell notional): (b)
Indian rupee / U.S. dollar		276			904
Thai baht / U.S. dollar		225			0
Interest rate contracts (in USD)		150	(c)		150	(c)

(a) These contracts had maturities of three years or less as of June 30, 2012.

(b) These contracts had maturities of one year or less as of June 30, 2012.

(c) Includes $150 million floating-to-fixed interest rate swap notional to offset the embedded derivative.

Gains Or Losses Recognized In Accumulated Other Comprehensive Income (AOCI), Net Of Tax, Related To Derivative Instruments

The following table shows gains or losses recognized in accumulated other comprehensive income (AOCI), net of tax, related to derivative instruments:

	Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
	Six Months Ended June 30,
In millions	2012			2011
Foreign exchange contracts	$	7		$	10
Fuel oil contracts		0			2
Natural gas contracts		(1	)		(2	)
Total	$	6		$	10

Gains And Losses Recognized In Consolidated Statement Of Operations On Qualifying And Non-Qualifying Financial Instruments

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 into Income (Effective Portion)												Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
	Three Months Ended June 30,						Six Months Ended June 30,
In millions	2012			2011			2012			2011
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	(7	)	$	5		$	(7	)	$	12			Cost of products sold
Fuel oil contracts		0			1			0			3			Cost of products sold
Natural gas contracts		(2	)		(4	)		(6	)		(10	)		Cost of products sold
Total	$	(9	)	$	2		$	(13	)	$	5

	Gain (Loss) Recognized in Income												Location of Gain  (Loss) In Consolidated Statement of Operations
	Three Months Ended June 30,						Six Months Ended June 30,
In millions	2012			2011			2012			2011
Derivatives in Fair Value Hedging Relationships:
Interest rate contracts	$	0		$	8		$	0		$	7			Interest expense, net
Debt		0			(8	)		0			(7	)		Interest expense, net
Total	$	0		$	0		$	0		$	0
Derivatives Not Designated as Hedging Instruments:
Electricity contact	$	0		$	0		$	(3	)	$	0			Cost of products sold
Embedded Derivatives		(1	)		0			(2	)		(1	)		Interest expense, net
Foreign exchange contracts		2			(5	)		(2	)		(7	)		Cost of products sold
Interest rate contracts		6			0			11			1			Interest expense, net
Total	$	7		$	(5	)	$	4		$	(7	)

Activity Related To Fully Effective Interest Rate Swaps Designated As Fair Value Hedges

The following activity is related to fully effective interest rate swaps designated as fair value hedges:

	2012						2011
In millions	Issued		Terminated		Undesignated		Issued			Terminated		Undesignated
Second Quarter	$	0	$	0	$	0	$	100	(a)	$	0	$	0
First Quarter		0		0		0		100	(a)		0		0
Total	$	0	$	0	$	0	$	200		$	0	$	0

(a) Fixed-to-floating interest rate swaps were effective when issued and were terminated in the third quarter of 2011.

Impact Of Derivative Instruments In Consolidated Balance Sheet

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	June 30, 2012			December 31, 2011			June 30, 2012			December 31, 2011
Derivatives designated as hedging instruments
Foreign exchange contracts – cash flow	$	3	(a)	$	0		$	42	(c)	$	53	(e)
Natural gas contracts – cash flow		0			0			0			10	(d)
Total derivatives designated as hedging instruments	$	3		$	0		$	42		$	63
Derivatives not designated as hedging instruments
Electricity contract	$	0		$	0		$	2	(d)	$	0
Embedded derivatives		3	(b)		5	(a)		0			0
Foreign exchange contracts		0			1	(b)		0			0
Interest rate contracts		0			0			3	(d)		5	(f)
Total derivatives not designated as hedging instruments	$	3		$	6		$	5		$	5
Total derivatives	$	6		$	6		$	47		$	68

(a) Included in Deferred charges and other assets in the accompanying consolidated balance sheet.

(b) Included in Other current assets in the accompanying consolidated balance sheet.

(c) Includes $31 million recorded in Other accrued liabilities and $11 million recorded in Other liabilities in the accompanying consolidated balance sheet.

(d) Included in Other accrued liabilities in the accompanying consolidated balance sheet.

(e) Includes $32 million recorded in Other accrued liabilities and $21 million recorded in Other liabilities in the accompanying consolidated balance sheet.

(f) Included in Other liabilities in the accompanying consolidated balance sheet.