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Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2011
Fair Value Measurements 
Fair Value, Assets and Liabilities Measured on Recurring Basis

 

 

 

 

Fair Value

 

 

 

 

 

 

 

(Millions)

 

at
Sept. 30,

 

Fair Value Measurements
Using Inputs Considered as

 

Description

 

2011

 

Level 1

 

Level 2

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

Marketable securities:

 

 

 

 

 

 

 

 

 

U.S. government agency securities

 

$

389

 

$

 

$

389

 

$

 

Foreign government agency securities

 

3

 

 

3

 

 

Corporate debt securities

 

495

 

 

495

 

 

Certificates of deposit/time deposits

 

117

 

 

117

 

 

Commercial paper

 

138

 

 

138

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

Automobile loan related

 

469

 

 

469

 

 

Credit card related

 

200

 

 

200

 

 

Equipment lease related

 

58

 

 

58

 

 

Other

 

10

 

 

10

 

 

U.S. treasury securities

 

34

 

34

 

 

 

U.S. municipal securities

 

9

 

 

9

 

 

Auction rate securities

 

5

 

 

 

5

 

Other securities

 

2

 

 

2

 

 

Investments

 

5

 

5

 

 

 

Derivative instruments — assets:

 

 

 

 

 

 

 

 

 

Foreign currency forward/option contracts

 

83

 

76

 

7

 

 

Interest rate swap contracts

 

31

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Derivative instruments — liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency forward/option contracts

 

42

 

42

 

 

 

Commodity price swap contracts

 

4

 

4

 

 

 

 

 

 

Fair Value

 

 

 

 

 

 

 

(Millions)

 

at
Dec. 31,

 

Fair Value Measurements
Using Inputs Considered as

 

Description

 

2010

 

Level 1

 

Level 2

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

Available-for-sale:

 

 

 

 

 

 

 

 

 

Marketable securities:

 

 

 

 

 

 

 

 

 

U.S. government agency securities

 

$

309

 

$

 

$

309

 

$

 

Foreign government agency securities

 

55

 

 

55

 

 

Corporate debt securities

 

472

 

 

472

 

 

Certificates of deposit/time deposits

 

29

 

 

29

 

 

Commercial paper

 

55

 

 

55

 

 

Asset-backed securities:

 

 

 

 

 

 

 

 

 

Automobile loan related

 

397

 

 

397

 

 

Credit card related

 

149

 

 

149

 

 

Equipment lease related

 

38

 

 

38

 

 

Other

 

8

 

 

8

 

 

U.S. treasury securities

 

99

 

99

 

 

 

U.S. municipal securities

 

23

 

 

23

 

 

Auction rate securities

 

7

 

 

 

7

 

Investments

 

21

 

21

 

 

 

Derivative instruments — assets:

 

 

 

 

 

 

 

 

 

Foreign currency forward/option contracts

 

38

 

36

 

2

 

 

Interest rate swap contracts

 

39

 

 

39

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Derivative instruments — liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency forward/option contracts

 

82

 

82

 

 

 

Commodity price swap contracts

 

5

 

5

 

 

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

 

 

(Millions)

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

Marketable securities — auction rate securities only

 

2011

 

2010

 

2011

 

2010

 

Beginning balance

 

$

8

 

$

7

 

$

7

 

$

5

 

Total gains or losses:

 

 

 

 

 

 

 

 

 

Included in earnings

 

 

 

 

 

Included in other comprehensive income

 

(3

)

(1

)

(2

)

1

 

Purchases, issuances, and settlements

 

 

 

 

 

Transfers in and/or out of Level 3

 

 

 

 

 

Ending balance (September 30)

 

5

 

6

 

5

 

6

 

 

 

 

 

 

 

 

 

 

 

Additional losses included in earnings due to reclassifications from other comprehensive income for:

 

 

 

 

 

 

 

 

 

Securities sold during the period ended September 30

 

 

 

 

 

Securities still held at September 30

 

 

 

 

Fair Value of Financial Instruments by Balance Sheet Grouping

 

 

 

 

September 30, 2011

 

Dec. 31, 2010

 

(Millions)

 

Carrying
Amount

 

Fair
Value

 

Carrying
Amount

 

Fair
Value

 

Long-term debt, excluding current portion

 

$

4,955

 

$

5,305

 

$

4,183

 

$

4,466