Derivatives And Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2012

Derivative Instruments and Hedges, Assets [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The notional amounts of qualifying and non-qualifying instruments used in hedging transactions were as follows:

In millions	December 31, 2012		December 31, 2011
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts (Sell / Buy; denominated in sell notional): (a)
British pounds / Brazilian real - Forward	13		26
European euro / Brazilian real - Forward	13		16
European euro / Polish zloty - Forward	149		233
U.S. dollar / Brazilian real - Forward	238		344
U.S. dollar / Brazilian real - Zero-cost collar	18		—
U.S. dollar / European euro - Forward	—		13
Natural gas contracts (in MMBTUs)	—		3
Derivatives Not Designated as Hedging Instruments:
Embedded derivative (in USD)	150		150
Foreign exchange contracts (Sell / Buy; denominated in sell notional):
Indian rupee / U.S. dollar	140		904
Thai baht / U.S. dollar	261		—
U.S. dollar / Turkish lira	56		—
Interest rate contracts (in USD)	150	(b)	150	(b)

(a) These contracts had maturities of three years or less as of December 31, 2012.

(b) Includes $150 million floating-to-fixed interest rate swap notional to offset the embedded derivative.

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table shows gains or losses recognized in AOCI, net of tax, related to derivative instruments:

	Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)
In millions	2012			2011			2010
Foreign exchange contracts	$	16		$	(39	)	$	37
Fuel oil contracts	—			2			(1		)
Natural gas contracts	(1		)	(6		)	(13		)
Total	$	15		$	(43	)	$	23

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

	Gain (Loss) Reclassified from AOCI into Income (Effective Portion)									Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)
In millions	2012			2011			2010
Derivatives in Cash Flow Hedging Relationships:
Foreign exchange contracts	$	(15	)	$	8		$	42		Cost of products sold
Fuel oil contracts	—			4			4			Cost of products sold
Natural gas contracts	(7		)	(20		)	(15		)	Cost of products sold
Total	$	(22	)	$	(8	)	$	31

	Gain (Loss) Recognized in Income											Location of Gain (Loss) in Consolidated Statement of Operations
In millions	2012			2011				2010
Derivatives in Fair Value Hedging Relationships:
Interest rate contracts	$	—		$	(10	)		$	25			Interest expense, net
Debt	—			10				(25		)		Interest expense, net
Total	$	—		$	—			$	—
Derivatives Not Designated as Hedging Instruments:
Electricity Contracts	$	(4	)	$	—			$	—			Cost of products sold
Embedded derivatives	(4		)	(3		)		3				Interest expense, net
Foreign exchange contracts	—			(14		)	(a)	33				Cost of products sold
Interest rate contracts	22			3				20			(b)	Interest expense, net
Total	$	14		$	(14	)		$	56

(a) Premium costs of $5 million in connection with the acquisition of APPM are included in Restructuring and other charges in the accompanying consolidated statement of operations.

(b) Includes a gain of $22 million due to changes in the fair value of interest rate swap agreements of $1.0 billion floating-to-fixed notional and an offsetting $1.0 billion fixed-to-floating notional that did not qualify as hedges under the accounting guidance and matured in September 2010.

Activity Related To Fully Effective Interest Rate Swaps Designated As Fair Value Hedges

The following activity is related to fully effective interest rate swaps designated as fair value hedges:

	2012						2011
In millions	Issued		Terminated		Undesignated		Issued			Terminated			Undesignated
Fourth Quarter	$	—	$	—	$	—	$	—		$	—		$	—
Third Quarter	—		—		—		—			464		(b)	—
Second Quarter	—		—		—		100		(a)	—			—
First Quarter	—		—		—		100		(a)	—			—
Total	$	—	$	—	$	—	$	200		$	464		$	—

(a) Fixed-to-floating interest rate swaps were effective when issued and were terminated in the third quarter of 2011.

(b) Terminations of fixed-to-floating interest rate swaps were not in connection with early debt retirements. The resulting $27 million gain was deferred and recorded in Long-term debt and is being amortized as an adjustment of Interest expense over the life of the respective underlying debt through June 2014, March 2015 or March 2016.

Impact Of Derivative Instruments In Consolidated Balance Sheet

The following table provides a summary of the impact of our derivative instruments in the consolidated balance sheet:

Fair Value Measurements

Level 2 – Significant Other Observable Inputs

	Assets						Liabilities
In millions	December 31, 2012			December 31, 2011			December 31, 2012			December 31, 2011
Derivatives designated as hedging instruments
Foreign exchange contracts – cash flow	$	7	(a)	$	—		$	21	(d)	$	53	(f)
Natural gas contracts – cash flow	—			—			—			10		(e)
Total derivatives designated as hedging instruments	$	7		$	—		$	21		$	63
Derivatives not designated as hedging instruments
Electricity contract	$	—		$	—		$	1	(e)	$	—
Embedded derivatives	1		(b)	5		(c)	—			—
Foreign exchange contracts	1		(b)	1		(b)	—			—
Interest rate contracts	—			—			1		(e)	5		(g)
Total derivatives not designated as hedging instruments	$	2		$	6		$	2		$	5
Total derivatives	$	9		$	6		$	23		$	68

(a) Includes $3 million recorded in Other current assets and $4 million recorded in Deferred charges and other assets in the accompanying consolidated balance sheet.

(b) Included in Other current assets in the accompanying consolidated balance sheet.

(c) Included in Deferred charges and other assets in the accompanying consolidated balance sheet.

(d) Includes $20 million recorded in Other accrued liabilities and $1 million recorded in Other liabilities in the accompanying consolidated balance sheet.

(e) Included in Other accrued liabilities in the accompanying consolidated balance sheet.

(f) Includes $32 million recorded in Other accrued liabilities and $21 million recorded in Other liabilities in the accompanying consolidated balance sheet.

(g) Included in Other liabilities in the accompanying consolidated balance sheet.