Objectives And Strategies For Using Derivatives (Tables)

6 Months Ended

Jun. 30, 2012

Objectives and Strategies for Using Derivatives [Abstract]

Schedule Of Fair Value Of All Derivative Instruments

	Assets				Liabilities
	June 30 2012		December 31 2011		June 30 2012		December 31 2011
	(Millions of dollars)
Foreign currency exchange risk	$	46	$	45	$	23	$	33
Interest rate risk	9		16		41		75
Commodity price risk	1		—		10		12
Total	$	56	$	61	$	74	$	120

Schedule Of Effect Of Derivative Financial Instruments On Consolidated Statement Of Income

For the three months ended June 30 (Millions of dollars):

	Income Statement Classifications	(Gain) or Loss Recognized in Income
		2012			2011
Undesignated foreign exchange hedging instruments	Other (income) and expense, net(a)	$	41		$	(59	)
Fair Value Hedges
Interest rate swap contracts	Interest expense	$	(1	)	$	—
Hedged debt instruments	Interest expense	$	1		$	—

	Amount of (Gain) or Loss Recognized In AOCI					Income Statement Classification of (Gain) or Loss Reclassified from AOCI	(Gain) or Loss Reclassified from AOCI into Income
	2012			2011			2012			2011
Cash Flow Hedges
Interest rate contracts	$	16		$	9	Interest expense	$	1		$	(1	)
Foreign exchange contracts	(28		)	11		Cost of products sold	(1		)	15
Foreign exchange contracts	(5		)	—		Other (income) and expense, net	(5		)	(1		)
Commodity contracts	(1		)	1		Cost of products sold	6			3
Total	$	(18	)	$	21		$	1		$	16
Net Investment Hedges
Foreign exchange contracts	$	(2	)	$	2		$	—		$	—

For the six months ended June 30 (Millions of dollars):

	Income Statement Classifications	(Gain) or Loss Recognized in Income
		2012			2011
Undesignated foreign exchange hedging instruments	Other (income) and expense, net(a)	$	(1	)	$	(99	)
Fair Value Hedges
Interest rate swap contracts	Interest expense	$	5		$	(5	)
Hedged debt instruments	Interest expense	$	(5	)	$	5

	Amount of (Gain) or Loss Recognized In AOCI					Income Statement Classification of (Gain) or Loss Reclassified from AOCI	(Gain) or Loss Reclassified from AOCI into Income
	2012			2011			2012			2011
Cash Flow Hedges
Interest rate contracts	$	13		$	8	Interest expense	$	1		$	(2	)
Foreign exchange contracts	(15		)	45		Cost of products sold	(4		)	21
Foreign exchange contracts	(3		)	5		Other (income) and expense, net	(3		)	5
Commodity contracts	7			1		Cost of products sold	10			5
Total	$	2		$	59		$	4		$	29
Net Investment Hedges
Foreign exchange contracts	$	(3	)	$	3		$	—		$	—

^(a)  (Gains) and losses on these instruments primarily relate to derivatives entered into with third parties to manage foreign currency exchange exposure on the remeasurement of non-functional currency denominated monetary assets and liabilities. Consequently, the effect on earnings from the use of these undesignated derivatives is substantially neutralized by the recorded transactional gains and losses on the underlying assets and liabilities.