FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2011



Investing Results
In millions	2011			2010			2009
Proceeds from sales of available-for-sale securities	$	764		$	981		$	593
Gross realized gains	$	44		$	69		$	32
Gross realized losses	$	(14	)	$	(26	)	$	(28	)

Contractual Maturities of Debt Securities



Contractual Maturities of Debt Securities at December 31, 2011
In millions	Amortized Cost		Fair Value
Within one year	$	23	$	24
One to five years	476		520
Six to ten years	480		524
After ten years	229		273
Total	$	1,208	$	1,341

Fair Value and Gross Unrealized Losses of Investments Temporarily Impaired



Temporarily Impaired Securities at December 31, 2011 (1)
	Less than 12 months
In millions	Fair Value		Unrealized Losses
Debt securities:
Corporate bonds	$	44	$	(2	)
Equity securities	190		(36		)
Total temporarily impaired securities	$	234	$	(38	)

(1) Unrealized losses of 12 months or more were less than $1 million.



Temporarily Impaired Securities at December 31, 2010 (1)
	Less than 12 months
In millions	Fair Value		Unrealized Losses
Debt securities:
Government debt (2)	$	62	$	(2	)
Corporate bonds	43		(1		)
Total debt securities	$	105	$	(3	)
Equity securities	52		(3		)
Total temporarily impaired securities	$	157	$	(6	)

(1) Unrealized losses of 12 months or more were less than $1 million.

(2) U.S. Treasury obligations, U.S. agency obligations, agency mortgage-

backed securities and other municipalities’ obligations.

Fair Value of Financial Instruments



Fair Value of Financial Instruments at December 31
	2011											2010
In millions	Cost			Gain		Loss			Fair Value			Cost			Gain		Loss			Fair Value
Marketable securities: (1)
Debt securities:
Government debt (2)	$	556		$	62	$	—		$	618		$	603		$	40	$	(2	)	$	641
Corporate bonds	652			73		(2		)	723			760			72		(1		)	831
Total debt securities	$	1,208		$	135	$	(2	)	$	1,341		$	1,363		$	112	$	(3	)	$	1,472
Equity securities	646			57		(36		)	667			501			94		(3		)	592
Total marketable securities	$	1,854		$	192	$	(38	)	$	2,008		$	1,864		$	206	$	(6	)	$	2,064
Long-term debt including debt due within one year (3)	$	(21,059	)	$	6	$	(2,736	)	$	(23,789	)	$	(22,360	)	$	175	$	(2,530	)	$	(24,715	)
Derivatives relating to:
Foreign currency	$	—		$	31	$	(17	)	$	14		$	—		$	40	$	(38	)	$	2
Commodities	$	—		$	16	$	(1	)	$	15		$	—		$	14	$	(4	)	$	10


(1)	Included in “Other investments” in the consolidated balance sheets.


(2)	U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations.


(3)	Cost includes reductions of $23 million at December 31, 2011 and $23 million at December 31, 2010 related to fair value adjustments.

Notional Amount of Commodity Forward Contracts



Commodity	Dec 31, 2011	Dec 31, 2010	Notional Volume Unit
Crude Oil	0.2	0.1	million barrels
Ethane	1.6	1.6	million barrels
Naphtha	90.0	—	kilotons
Natural Gas	7.4	2.7	million million British thermal units
Ethane / Propane Mix	0.2	—	million barrels

Notional Amount of Other Commodity Contracts



Commodity	Dec 31, 2011	Dec 31, 2010	Notional Volume Unit
Ethane	2.1	3.8	million barrels
Naphtha	82.5	—	kilotons
Natural Gas	4.6	12.0	million million British thermal units

Schedule Fair Values of Derivative Instruments



Fair Value of Derivative Instruments at December 31 In millions	Balance Sheet Classification	2011		2010
Asset Derivatives
Derivatives designated as hedges:
Foreign currency	Accounts and notes receivable – Other	$	9	$	9
Commodities	Other current assets (1)	5		7
Total derivatives designated as hedges		$	14	$	16
Derivatives not designated as hedges:
Foreign currency	Accounts and notes receivable – Other	$	66	$	77
Commodities	Other current assets (1)	19		23
Total derivatives not designated as hedges		$	85	$	100
Total asset derivatives		$	99	$	116
Liability Derivatives
Derivatives designated as hedges:
Foreign currency	Accounts payable – Other	$	8	$	20
Commodities	Accounts payable – Other	11		8
Total derivatives designated as hedges		$	19	$	28
Derivatives not designated as hedges:
Foreign currency	Accounts payable – Other	$	53	$	64
Commodities	Accounts payable – Other	9		16
Total derivatives not designated as hedges		$	62	$	80
Total liability derivatives		$	81	$	108


(1)	Included in "Accounts and notes receivable - Other" in the consolidated balance sheets at December 31, 2010.

Schedule of Gain Loss Effect of Derivative Instruments



Effect of Derivative Instruments for the year ended December 31, 2011 In millions	Change in Unrealized Gain (Loss) in AOCI (1,2)			Income Statement Classification	Gain (Loss) Reclassified from AOCI to Income (3)			Additional Gain (Loss) Recognized in Income (3,4)
Derivatives designated as hedges:
Fair value:
Interest rates	$	—		Interest expense (5)	$	(1	)	$	(1	)
Cash flow:
Commodities	7			Cost of sales	23			—
Foreign currency	(10		)	Cost of sales	(17		)	—
Net foreign investment:
Foreign currency	—			n/a	—			—
Total derivatives designated as hedges	$	(3	)		$	5		$	(1	)
Derivatives not designated as hedges:
Foreign currency (6)	$	—		Sundry income (expense) – net	$	—		$	1
Commodities	—			Cost of sales	—			20
Total derivatives not designated as hedges	$	—			$	—		$	21
Total derivatives	$	(3	)		$	5		$	20


Effect of Derivative Instruments for the year ended December 31, 2010 In millions	Change in Unrealized Gain (Loss) in AOCI (1,2)			Income Statement Classification	Gain (Loss) Reclassified from AOCI to Income (3)			Additional Gain (Loss) Recognized in Income (3,4)
Derivatives designated as hedges:
Fair value:
Interest rates	$	—		Interest expense (5)	$	(1	)	$	(2	)
Cash flow:
Commodities	(10		)	Cost of sales	(14		)	—
Foreign currency	1			Cost of sales	—			—
Net foreign investment:
Foreign currency	(16		)	n/a	—			—
Total derivatives designated as hedges	$	(25	)		$	(15	)	$	(2	)
Derivatives not designated as hedges:
Foreign currency (6)	$	—		Sundry income (expense) – net	$	—		$	155
Commodities	—			Cost of sales	—			5
Total derivatives not designated as hedges	$	—			$	—		$	160
Total derivatives	$	(25	)		$	(15	)	$	158

(1) Accumulated other comprehensive income (loss) (“AOCI”).

(2)

Net unrealized gains (losses) from hedges related to interest rates and commodities are included in “Accumulated Derivative Loss – Net hedging results” in the consolidated statements of equity; net unrealized gains (losses) from hedges related to foreign currency (net of tax) are included in “Cumulative Translation Adjustments – Translation adjustments” in the consolidated statements of equity.

(3) Pretax amounts.

(4) Amounts impacting income not related to AOCI reclassification; also includes immaterial amounts of hedge ineffectiveness.

(5) Interest expense and amortization of debt discount.


(6)	Foreign currency derivatives not designated as hedges are offset by foreign exchange gains/losses resulting from the underlying exposures of foreign currency denominated assets and liabilities.



Effect of Derivative Instruments for the year ended December 31, 2009 In millions	Change in Unrealized Loss in AOCI (1,2)			Income Statement Classification	Gain (Loss) Reclassified from AOCI to Income (3)			Additional Gain (Loss) Recognized in Income (3,4)
Derivatives designated as hedges:
Fair value:
Interest rates	$	—		Interest expense (5)	$	—		$	(1	)
Cash flow:
Interest rates	—			Cost of sales	(9		)	—
Interest rates	—			Interest expense (5)	(1		)	—
Commodities	(2		)	Cost of sales	(306		)	(1		)
Foreign currency	(10		)	Cost of sales	11			—
Total derivatives designated as hedges	$	(12	)		$	(305	)	$	(2	)
Derivatives not designated as hedges:
Foreign currency (6)	$	—		Sundry income (expense) – net	$	—		$	(32	)
Commodities	—			Cost of sales	—			3
Total derivatives not designated as hedges	$	—			$	—		$	(29	)
Total derivatives	$	(12	)		$	(305	)	$	(31	)


(1)	Accumulated other comprehensive income (loss) (“AOCI”).

(2)

(3) Pretax amounts.

(4) Amounts impacting income not related to AOCI reclassification; also includes immaterial amounts of hedge ineffectiveness.

(5) Interest expense and amortization of debt discount.


(6)	Foreign currency derivatives not designated as hedges are offset by foreign exchange gains/losses resulting from the underlying

exposures of foreign currency denominated assets and liabilities.

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 10

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 30

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13476-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13467-108611

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 45

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2), d, e, f

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-Subparagraph a, c(1), c(2), c(3), d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 19

-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details