Derivatives (Tables)

3 Months Ended

Mar. 31, 2013

Derivatives

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

Three months ended March 31, 2013
(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	$	31	Cost of sales	$	(6)	Cost of sales	$	―
Foreign currency forward contracts		(103)	Interest expense		(101)	Interest expense		―
Commodity price swap contracts		2	Cost of sales		(1)	Cost of sales		―
Total	$	(70)		$	(108)		$	―
Three months ended March 31, 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	$	(24)	Cost of sales	$	―	Cost of sales	$	―
Foreign currency forward contracts		1	Interest expense		―	Interest expense		―
Commodity price swap contracts		(5)	Cost of sales		(4)	Cost of sales		―
Total	$	(28)		$	(4)		$	―

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

Three months ended March 31, 2013	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	$	(5)	Interest expense	$	5
Total		$	(5)		$	5
Three months ended March 31, 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	$	(1)	Interest expense	$	1
Total		$	(1)		$	1

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

Three months ended March 31, 2013
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	$	(41)	N/A	$	―
Total	$	(41)		$	―
Three months ended March 31, 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	$	(40)	N/A	$	―
Total	$	(40)		$	―

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

	Three months ended March 31, 2013
Derivatives Not Designated as Hedging Instruments	Gain (Loss) on Derivative Recognized in Income
(Millions)	Location	Amount
Foreign currency forward/option contracts	Cost of sales	$	10
Foreign currency forward contracts	Interest expense		21
Total		$	31
	Three months ended March 31, 2012
Derivatives Not Designated as Hedging Instruments	Gain (Loss) on Derivative Recognized in Income
(Millions)	Location	Amount
Foreign currency forward/option contracts	Cost of sales	$	(15)
Foreign currency forward contracts	Interest expense		27
Commodity price swap contracts	Cost of sales		1
Total		$	13

Location and Fair Value of Derivative Instruments

March 31, 2013
(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	$	58	Other current liabilities	$	61
Commodity price swap contracts		Other current assets		2	Other current liabilities		―
Interest rate swap contracts		Other assets		18	Other liabilities		―
Total derivatives designated as
	hedging instruments		$	78		$	61
Derivatives not designated as hedging instruments
Foreign currency forward/option contracts		Other current assets	$	15	Other current liabilities	$	25
Total derivatives not designated as
	hedging instruments		$	15		$	25
Total derivative instruments			$	93		$	86
December 31, 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	$	39	Other current liabilities	$	85
Commodity price swap contracts		Other current assets		―	Other current liabilities		1
Interest rate swap contracts		Other assets		23	Other liabilities		―
Total derivatives designated as
	hedging instruments		$	62		$	86
Derivatives not designated as hedging instruments
Foreign currency forward/option contracts		Other current assets	$	10	Other current liabilities	$	20
Total derivatives not designated as
	hedging instruments		$	10		$	20
Total derivative instruments			$	72		$	106

Offsetting Assets

Offsetting of Financial Assets/Liabilities under Master Netting Agreements with Derivative Counterparties
March 31, 2013
				Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
(Millions)		Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Liabilities		Cash Collateral Received		Net Amount of Derivative Assets
Derivatives subject to master netting agreements	$	91	$	26	$	―	$	65
Derivatives not subject to master netting agreements		2						2
Total	$	93					$	67

December 31, 2012
				Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
(Millions)		Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Liabilities		Cash Collateral Received		Net Amount of Derivative Assets
Derivatives subject to master netting agreements	$	67	$	25	$	―	$	42
Derivatives not subject to master netting agreements		5						5
Total	$	72					$	47

Offsetting Liabilities

March 31, 2013
				Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
(Millions)		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Assets		Cash Collateral Pledged		Net Amount of Derivative Liabilities
Derivatives subject to master netting agreements	$	80	$	26	$	―	$	54
Derivatives not subject to master netting agreements		6						6
Total	$	86					$	60

December 31, 2012
				Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements
(Millions)		Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet		Gross Amount of Eligible Offsetting Recognized Derivative Assets		Cash Collateral Pledged		Net Amount of Derivative Liabilities
Derivatives subject to master netting agreements	$	106	$	25	$	―	$	81
Derivatives not subject to master netting agreements		―						―
Total	$	106					$	81