Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2012

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):

Derivatives Designated as Hedging Instruments	Balance Sheet Location	September  30, 2012		December  31, 2011
Electricity commodity contracts	Current other assets	$	1	$	5
Interest rate contracts	Long-term other assets		—		73
Total derivative assets		$	1	$	78
Interest rate contracts	Current accrued liabilities	$	—	$	42
Electricity commodity contracts	Current accrued liabilities		4		—
Foreign exchange contracts	Long-term accrued liabilities		16		2
Interest rate contracts	Long-term accrued liabilities		42		32
Total derivative liabilities		$	62	$	76

Impact of Changes in Fair Value of Interest Rate Swaps and Underlying Hedged Items on Results of Operations

The following table summarizes the fair value adjustments from active interest rate swaps and the underlying hedged items on our results of operations (in millions):

Three Months Ended September 30,	Statement of Operations Classification	Gain (Loss) on Swap			Gain (Loss)  on Fixed-Rate Debt
2012	Interest expense	$	—		$	—
2011	Interest expense	$	25		$	(25	)
Nine Months Ended September 30,	Statement of Operations Classification	Gain (Loss) on Swap			Gain (Loss)  on Fixed-Rate Debt
2012	Interest expense	$	(1	)	$	1
2011	Interest expense	$	37		$	(37	)

Impact of Periodic Settlements of Active Swap Agreements and Impact of Terminated Swap Agreements on Results of Operations

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 Ended September 30,				Nine Months Ended September 30,
Decrease to Interest Expense Due to Hedge Accounting for Interest Rate Swaps	2012		2011		2012		2011
Periodic settlements of active swap agreements(a)(b)	$	—	$	7	$	7	$	18
Terminated swap agreements(b)		7		2		16		8
	$	7	$	9	$	23	$	26

(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 were based on a spread from the three-month LIBOR.

(b) Due to our election to terminate our interest rate swap portfolio with a notional amount of $1 billion in April 2012, periodic settlements of active swap agreements have decreased and amortization to interest expense of terminated swap agreements has increased.

Pre-Tax Impacts of Our Foreign Currency Cash Flow Derivatives on Our Comprehensive Income and Results of Operations

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):

Three Months Ended September 30,	Derivative Gain  or (Loss) Recognized in OCI (Effective Portion)			Statement of     Operations Classification	Derivative Gain  or (Loss) Reclassified from AOCI into Income (Effective Portion)
2012	$	(15	)	Other income (expense)	$	(14	)
2011	$	25		Other income (expense)	$	33

Nine Months Ended September 30,	Derivative Gain  or (Loss) Recognized in OCI (Effective Portion)			Statement of     Operations Classification	Derivative Gain  or (Loss) Reclassified from AOCI into Income (Effective Portion)
2012	$	(14	)	Other income (expense)	$	(17	)
2011	$	11		Other income (expense)	$	21