Derivatives (Tables)

6 Months Ended

Jun. 30, 2012

Derivatives

Gain (loss) on derivative instruments designated as cash flow hedges

Three months ended June 30, 2012
(Millions)	Pretax Gain (Loss) Recognized in Other Comprehensive Income on Effective Portion of Derivative		Pretax Gain (Loss) Recognized in Income on Effective Portion of Derivative as a Result of Reclassification from Accumulated Other Comprehensive Income			Ineffective Portion of Gain (Loss) on Derivative and Amount Excluded from Effectiveness Testing Recognized in Income
Derivatives in Cash Flow Hedging Relationships	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	42	Cost of sales	$	9	Cost of sales	$	―
Foreign currency forward contracts		(13)	Interest expense		(13)	Interest expense		―
Commodity price swap contracts		―	Cost of sales		(4)	Cost of sales		―
Total	$	29		$	(8)		$	―
Six months ended June 30, 2012
(Millions)	Pretax Gain (Loss) Recognized in Other Comprehensive Income on Effective Portion of Derivative		Pretax Gain (Loss) Recognized in Income on Effective Portion of Derivative as a Result of Reclassification from Accumulated Other Comprehensive Income			Ineffective Portion of Gain (Loss) on Derivative and Amount Excluded from Effectiveness Testing Recognized in Income
Derivatives in Cash Flow Hedging Relationships	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	18	Cost of sales	$	9	Cost of sales	$	―
Foreign currency forward contracts		(12)	Interest expense		(13)	Interest expense		―
Commodity price swap contracts		(5)	Cost of sales		(8)	Cost of sales		―
Total	$	1		$	(12)		$	―
Three months ended June 30, 2011
(Millions)	Pretax Gain (Loss) Recognized in Other Comprehensive Income on Effective Portion of Derivative		Pretax Gain (Loss) Recognized in Income on Effective Portion of Derivative as a Result of Reclassification from Accumulated Other Comprehensive Income			Ineffective Portion of Gain (Loss) on Derivative and Amount Excluded from Effectiveness Testing Recognized in Income
Derivatives in Cash Flow Hedging Relationships	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	(27)	Cost of sales	$	(28)	Cost of sales	$	―
Foreign currency forward contracts		(7)	Interest expense		(8)	Interest expense		―
Commodity price swap contracts		(1)	Cost of sales		―	Cost of sales		―
Total	$	(35)		$	(36)		$	―
Six months ended June 30, 2011
(Millions)	Pretax Gain (Loss) Recognized in Other Comprehensive Income on Effective Portion of Derivative		Pretax Gain (Loss) Recognized in Income on Effective Portion of Derivative as a Result of Reclassification from Accumulated Other Comprehensive Income			Ineffective Portion of Gain (Loss) on Derivative and Amount Excluded from Effectiveness Testing Recognized in Income
Derivatives in Cash Flow Hedging Relationships	Amount		Location	Amount		Location	Amount
Foreign currency forward/option contracts	$	(61)	Cost of sales	$	(34)	Cost of sales	$	―
Foreign currency forward contracts		1	Interest expense		2	Interest expense		―
Commodity price swap contracts		(2)	Cost of sales		(4)	Cost of sales		―
Total	$	(62)		$	(36)		$	―

Gain (loss) on derivative instruments designated as fair value hedges

Three months ended June 30, 2012	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
(Millions)	Recognized in Income			Recognized in Income
Derivatives in Fair Value Hedging Relationships	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	(2)	Interest expense	$	2
Total		$	(2)		$	2
Six months ended June 30, 2012	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
(Millions)	Recognized in Income			Recognized in Income
Derivatives in Fair Value Hedging Relationships	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	(3)	Interest expense	$	3
Total		$	(3)		$	3
Three months ended June 30, 2011	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
(Millions)	Recognized in Income			Recognized in Income
Derivatives in Fair Value Hedging Relationships	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	2	Interest expense	$	(2)
Total		$	2		$	(2)
Six months ended June 30, 2011	Gain (Loss) on Derivative			Gain (Loss) on Hedged Item
(Millions)	Recognized in Income			Recognized in Income
Derivatives in Fair Value Hedging Relationships	Location	Amount		Location	Amount
Interest rate swap contracts	Interest expense	$	(8)	Interest expense	$	8
Total		$	(8)		$	8

Gain (loss) on derivative and non-derivative instruments designated as net investment hedges

Three months ended June 30, 2012
Derivative and Nonderivative Instruments in Net Investment Hedging Relationships	Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income on Effective Portion of Instrument		Ineffective Portion of Gain (Loss) on Instrument and Amount Excluded from Effectiveness Testing Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	90	N/A	$	―
Total	$	90		$	―
Six months ended June 30, 2012
Derivative and Nonderivative Instruments in Net Investment Hedging Relationships	Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income on Effective Portion of Instrument		Ineffective Portion of Gain (Loss) on Instrument and Amount Excluded from Effectiveness Testing Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	50	N/A	$	―
Total	$	50		$	―
Three months ended June 30, 2011
Derivative and Nonderivative Instruments in Net Investment Hedging Relationships	Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income on Effective Portion of Instrument		Ineffective Portion of Gain (Loss) on Instrument and Amount Excluded from Effectiveness Testing Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	(35)	N/A	$	―
Total	$	(35)		$	―
Six months ended June 30, 2011
Derivative and Nonderivative Instruments in Net Investment Hedging Relationships	Pretax Gain (Loss) Recognized as Cumulative Translation within Other Comprehensive Income on Effective Portion of Instrument		Ineffective Portion of Gain (Loss) on Instrument and Amount Excluded from Effectiveness Testing Recognized in Income
(Millions)	Amount		Location	Amount
Foreign currency denominated debt	$	(120)	N/A	$	―
Total	$	(120)		$	―

Gain (loss) on derivative instruments not designated as hedging instruments

Derivatives Not Designated as Hedging Instruments	Three months ended June 30, 2012			Six months ended June 30, 2012
	Gain (Loss) on Derivative Recognized in Income			Gain (Loss) on Derivative Recognized in Income
(Millions)	Location	Amount		Location	Amount
Foreign currency forward/option contracts	Cost of sales	$	20	Cost of sales	$	5
Foreign currency forward contracts	Interest expense		(15)	Interest expense		12
Commodity price swap contracts	Cost of sales		(1)	Cost of sales		―
Total		$	4		$	17
Derivatives Not Designated as Hedging Instruments	Three months ended June 30, 2011			Six months ended June 30, 2011
	Gain (Loss) on Derivative Recognized in Income			Gain (Loss) on Derivative Recognized in Income
(Millions)	Location	Amount		Location	Amount
Foreign currency forward/option contracts	Cost of sales	$	(16)	Cost of sales	$	(28)
Foreign currency forward contracts	Interest expense		(4)	Interest expense		12
Total		$	(20)		$	(16)

Location and Fair Value of Derivative Instruments

June 30, 2012
(Millions)		Assets			Liabilities
Fair Value of Derivative Instruments		Location	Amount		Location	Amount
Derivatives designated as hedging instruments
Foreign currency forward/option contracts		Other current assets	$	73	Other current liabilities	$	35
Commodity price swap contracts		Other current assets		―	Other current liabilities		4
Interest rate swap contracts		Other assets		25	Other liabilities		―
Total derivatives designated as
	hedging instruments		$	98		$	39
Derivatives not designated as hedging instruments
Foreign currency forward/option contracts		Other current assets	$	35	Other current liabilities	$	3
Total derivatives not designated as
	hedging instruments		$	35		$	3
Total derivative instruments			$	133		$	42
December 31, 2011
(Millions)		Assets			Liabilities
Fair Value of Derivative Instruments		Location	Amount		Location	Amount
Derivatives designated as hedging instruments
Foreign currency forward/option contracts		Other current assets	$	82	Other current liabilities	$	34
Commodity price swap contracts		Other current assets		―	Other current liabilities		7
Interest rate swap contracts		Other assets		28	Other liabilities		―
Total derivatives designated as
	hedging instruments		$	110		$	41
Derivatives not designated as hedging instruments
Foreign currency forward/option contracts		Other current assets	$	25	Other current liabilities	$	8
Total derivatives not designated as
	hedging instruments		$	25		$	8
Total derivative instruments			$	135		$	49