Fair Value Measurement

9 Months Ended

Sep. 30, 2013

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 (unadjusted) 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, 2013
Short-term investments:
Commercial paper and certificates of deposit	$	—	$	201	$	—	$	201
Other current assets:
Marketable equity securities	5		—		—		5
Foreign currency contracts(a)	—		15		—		15
Equity forward arrangement(a)	—		176		—		176
Other assets:
Foreign currency contracts(a)	—		1		—		1
Investments:
Marketable equity securities	67		—		—		67
Accounts payable and accrued liabilities:
Foreign currency contracts(a)	—		5		—		5
Other liabilities:
Cross currency swaps(a)	—		107		—		107
At December 31, 2012
Short-term investments:
Commercial paper and certificates of deposit	$	—	$	455	$	—	$	455
Other current assets:
Marketable equity securities	5		—		—		5
Foreign currency contracts(a)	—		3		—		3
Equity forward arrangement(a)	—		130		—		130
Investments:
Marketable equity securities	60		—		—		60
Accounts payable and accrued liabilities:
Foreign currency contracts(a)	—		1		—		1
Other liabilities:
Cross currency swaps(a)	—		95		—		95

 (a) This balance is designated as a hedging instrument under U.S. generally accepted accounting principles.

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

As a result of the 2013 restructuring plan, as discussed in Note 8, “Business Restructuring”, long-lived assets with a carrying amount of $3 million were written-down to fair value resulting in a charge of $3 million which was included in the business restructuring expense reported in the nine months ended September 30, 2013. These long-lived assets were valued using Level 3 inputs.

As a result of the 2012 restructuring plan, as discussed in Note 8, “Business Restructuring”, long-lived assets with a carrying amount of $10 million were written-down to 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.