Derivatives and Financial Instruments (Tables)

3 Months Ended

Mar. 30, 2013

Recorded Amounts and Estimated Fair Values of Long-term Debt and Derivative Financial Instruments

The recorded amounts and estimated fair values of total debt, excluding the effects of derivative financial instruments, were as follows:

	March 30, 2013				December 31, 2012
In millions	Recorded Amount		Fair Value		Recorded Amount		Fair Value
Variable rate debt	$	570	$	570	$	428	$	428
Fixed rate debt		2,028		2,067		2,029		2,081
Total debt	$	2,598	$	2,637	$	2,457	$	2,509

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis were as follows:

	March 30, 2013
In millions	Level 1		Level 2			Level 3		Total
Recurring fair value measurements
Foreign currency contract assets	$	—	$	3		$	—	$	3
Foreign currency contract liabilities		—		(1	)		—		(1	)
Deferred compensation plan (1)		28		—			—		28
Total recurring fair value measurements		28		2			—		30
	December 31, 2012
In millions	Level 1		Level 2			Level 3		Total
Recurring fair value measurements
Foreign currency contract assets	$	—	$	3		$	—	$	3
Foreign currency contract liabilities		—		(1	)		—		(1	)
Deferred compensation plan (1)		23		—			—		23
Total recurring fair value measurements	$	23	$	2		$	—	$	25
Nonrecurring fair value measurements
Trade name intangibles (2)	$	—	$	—		$	64	$	64
Total nonrecurring fair value measurement	$	—	$	—		$	64	$	64

(1) Deferred compensation plan assets include mutual funds and cash equivalents for payment of certain non-qualified benefits for retired, terminated and active employees. The fair value of these assets was based on quoted market prices in active markets.

(2) In the fourth quarter of 2012, we completed our annual intangible assets impairment review. As a result, we recorded a pre-tax non-cash impairment charge of $61 million for trade names intangibles. The fair value of trade names is measured using the relief-from-royalty method. This method assumes the trade name has value to the extent that the owner is relieved of the obligation to pay royalties for the benefits received from them. This method requires us to estimate the future revenue for the related brands, the appropriate royalty rate and the weighted average cost of capital.