Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2011

Supplemental Balance Sheet Information [Abstract]

Supplemental Balance Sheet Information

11. Supplemental Balance Sheet Information

INVENTORIES

Inventories as of December 31 consisted of the following:

(millions)	2011		2010
Finished goods and work in progress	$	239	$	227
Raw materials		66		63
Total	$	305	$	290

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment as of December 31 consisted of the following:

(millions)	2011			2010
Land and mineral deposits	$	119		$	115
Buildings and improvements		1,106			1,129
Machinery and equipment		2,529			2,568
		3,754			3,812
Reserves for depreciation and depletion		(1,637	)		(1,546	)
Total	$	2,117		$	2,266
Annual depreciation and depletion expense	$	144		$	160

ACCRUED EXPENSES

Accrued expenses as of December 31 consisted of the following:

(millions)	2011		2010
Self-insurance reserves	$	49	$	50
Employee compensation		41		39
Interest		52		49
Restructuring		13		35
Derivatives		8		19
Other		103		102
Total	$	266	$	294

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

AOCI as of December 31 consisted of the following:

(millions)	2011			2010
Unrecognized loss on pension and postretirement benefit plans, net of tax	$	(221	)	$	(106	)
Derivatives, net of tax		28			8
Foreign currency translation, net of tax		19			48
Total	$	(174	)	$	(50	)

Reclassifications of net after-tax gains or losses from AOCI to earnings during 2011, 2010 and 2009 consisted of the following:

(millions)	2011			2010			2009
Loss on derivatives, net of tax	$	(20	)	$	(20	)	$	(69	)
(Loss) gain on unrecognized pension and postretirement benefit costs, net of tax		(2	)		2			9
Total	$	(22	)	$	(18	)	$	(60	)

We estimate that we will reclassify a net $5 million after-tax loss on derivatives from AOCI to earnings within the next 12 months.

ASSET RETIREMENT OBLIGATIONS

Changes in our liability for asset retirement obligations during 2011 and 2010 consisted of the following:

(millions)	2011			2010
Balance as of January 1	$	103		$	101
Accretion expense		7			6
Liabilities incurred/adjusted		7			(2	)
Liabilities settled		(1	)		(1	)
Asset retirements		(1	)		(2	)
Foreign currency translation		(1	)		1
Balance as of December 31	$	114		$	103

Our asset retirement obligations include reclamation requirements as regulated by government authorities related principally to assets such as our mines, quarries, landfills, ponds and wells. The accounting for asset retirement obligations requires estimates by management about the timing of asset retirements, the cost of retirement obligations, discount and inflation rates used in determining fair values and the methods of remediation associated with our asset retirement obligations. We generally use assumptions and estimates that reflect the most likely remediation method on a site-by-site basis. Our estimated liability for asset retirement obligations is revised annually, or whenever events or changes in circumstances indicate that a revision to the estimate is necessary.

In instances where a decrease in the asset retirement obligation is in excess of the related remaining book value of the asset retirement costs, the excess is recorded to the consolidated statement of operations as a reduction in cost of products sold. Asset retirement obligations are included in other liabilities on the consolidated balance sheets.