Fair Value Measurement

9 Months Ended

Sep. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurement

The accounting guidance on fair value measurement establishes a hierarchy with three levels of inputs used to determine fair value. Level 1 inputs are quoted prices in active markets for identical assets and liabilities, considered to be the most reliable evidence of fair value, and should be used whenever available. Level 2 inputs are observable prices that are not quoted on active exchanges. Level 3 inputs are unobservable inputs used for measuring the fair value of assets or liabilities.

Assets and liabilities reported at fair value on a recurring basis:

(Millions)

	Level 1		Level 2		Level 3		Total
At September 30, 2012
Short-term investments:
Commercial paper and restricted cash	$	—	$	380	$	—	$	380
Marketable equity securities	4		—		—		4
Other current assets:
Foreign currency contracts(1)	—		3		—		3
Equity forward arrangement(2)	—		101		—		101
Investments:
Marketable equity securities	63		—		—		63
Accounts payable and accrued liabilities:
Foreign currency contracts(2)	—		5		—		5
Other liabilities:
Cross currency swaps(2)	—		66		—		66
At December 31, 2011
Short-term investments:
Commercial paper and restricted cash	$	—	$	21	$	—	$	21
Marketable equity securities	4		—		—		4
Other current assets:
Foreign currency contracts(2)	—		1		—		1
Interest rate swaps(2)	—		1		—		1
Equity forward arrangement(2)	—		56		—		56
Investments:
Marketable equity securities	56		—		—		56
Other assets:
Interest rate swaps(2)	—		25		—		25
Accounts payable and accrued liabilities:
Foreign currency contracts(2)	—		6		—		6
Forward starting swaps(2)	—		92		—		92
Natural gas swap contracts(2)	—		9		—		9
Other liabilities:
Cross currency swaps(2)	—		120		—		120
Foreign currency contracts(2)	—		1		—		1

(1) $2 million of this balance is designated as a hedging instrument under U.S. GAAP.

(2) This entire balance is designated as a hedging instrument under U.S. GAAP.

Assets and liabilities reported at fair value on a nonrecurring basis:

As a result of finalizing a restructuring plan, as discussed in Note 7, “Business Restructuring”, long-lived assets with a carrying amount of $10 million were written-down to their fair value of $7 million, resulting in a charge of $3 million, which was included in the business restructuring expense reported in the nine months ended September 30, 2012. These long-lived assets were valued using Level 3 inputs.