Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2011

Derivative Instruments and Hedging Activities (Tables) [Abstract]

Fair values of derivative instruments recorded in Balance Sheet

The following table summarizes the fair values of derivative instruments recorded in our Condensed Consolidated Balance Sheet (in millions):

		September 30,		December 31,
Derivatives Designated as Hedging Instruments	Balance Sheet Location	2011		2010
Interest rate contracts	Current other assets	$	—	$	1
Electricity commodity contracts	Current other assets		1		—
Interest rate contracts	Long-term other assets		75		37
Foreign exchange contracts	Long-term other assets		8		—
Total derivative assets		$	84	$	38
Interest rate contracts	Current accrued liabilities	$	—	$	11
Electricity commodity contracts	Current accrued liabilities		1		1
Interest rate contracts	Long-term accrued liabilities		68		13
Foreign exchange contracts	Long-term accrued liabilities		—		3
Total derivative liabilities		$	69	$	28

Impact of changes in the fair value of interest rate swaps and the underlying hedged items on results of operations

Gains or losses on the derivatives as well as the offsetting losses or gains on the hedged items attributable to our interest rate swaps are recognized in current earnings. We include gains and losses on our interest rate swaps as adjustments to interest expense, which is the same financial statement line item where offsetting gains and losses on the related hedged items are recorded. The following table summarizes the fair value adjustments from interest rate swaps and the underlying hedged items on our results of operations (in millions):

Three Months		Statement of Operations	Gain (Loss) on		Gain (Loss) on
Ended September 30,		Classification	Swap		Fixed-Rate Debt
	2011	Interest expense	$	25	$	(25	)
	2010	Interest expense	$	10	$	(10	)

Nine Months		Statement of Operations	Gain (Loss) on		Gain (Loss) on
Ended September 30,		Classification	Swap		Fixed-Rate Debt
	2011	Interest expense	$	37	$	(37	)
	2010	Interest expense	$	24	$	(24	)

Impact of periodic settlements of active swap agreements and the impact of terminated swap agreements on results of operations

We also recognize the impacts of (i) net periodic settlements of current interest on our active interest rate swaps and (ii) the amortization of previously terminated interest rate swap agreements as adjustments to interest expense. The following table summarizes the impact of periodic settlements of active swap agreements and the impact of terminated swap agreements on our results of operations (in millions):

	Three Months				Nine Months
	Ended September 30,				Ended September 30,
Decrease to Interest Expense Due to Hedge Accounting for Interest Rate Swaps	2011		2010		2011		2010
Periodic settlements of active swap agreements(a)	$	7	$	6	$	18	$	24
Terminated swap agreements		2		4		8		15
	$	9	$	10	$	26	$	39

(a) These amounts represent the net of our periodic variable-rate interest obligations and the swap counterparties’ fixed-rate interest obligations. Our variable-rate obligations are based on a spread from the three-month LIBOR.

Pretax impacts of our foreign currency cash flow derivatives on our comprehensive income and results of operations

Gains or losses on the underlying hedged items attributable to foreign currency exchange risk are recognized in current earnings. The gains or losses on our foreign currency forward contracts that are reclassified out of accumulated other comprehensive income are recognized as adjustments to other income and expense, which is the same financial statement line item where offsetting gains or losses on the related hedged items are recorded. The following table summarizes the pre-tax impacts of our foreign currency cash flow derivatives on our comprehensive income and results of operations (in millions):

						Derivative Gain or
		Derivative Gain or				(Loss) Reclassified
		(Loss) Recognized				from AOCI into
Three Months		in OCI			Statement of Operations	Income
Ended September 30,		(Effective Portion)			Classification	(Effective Portion)
	2011	$	25		Other income (expense)	$	33
	2010	$	(12	)	Other income (expense)	$	(12	)

						Derivative Gain or
		Derivative Gain or				(Loss) Reclassified
		(Loss) Recognized				from AOCI into
Nine Months		in OCI			Statement of Operations	Income
Ended September 30,		(Effective Portion)			Classification	(Effective Portion)
	2011	$	11		Other income (expense)	$	21
	2010	$	(7	)	Other income (expense)	$	(7	)