Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2012

Fair Values of Derivative Instruments Recorded in Balance Sheet

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

		December 31,
Derivatives Designated as Hedging Instruments	Balance Sheet Location	2012		2011
Electricity commodity derivatives	Current other assets	$	1	$	5
Interest rate derivatives	Long-term other assets		—		73
Total derivative assets		$	1	$	78
Interest rate derivatives	Current accrued liabilities	$	—	$	42
Electricity commodity derivatives	Current accrued liabilities		5		—
Foreign currency derivatives	Current accrued liabilities		11		—
Foreign currency derivatives	Long-term accrued liabilities		—		2
Interest rate derivatives	Long-term accrued liabilities		42		32
Total derivative liabilities		$	58	$	76

Accumulated Fair Value Adjustments from Interest Rate Swap Agreements

The following table summarizes the fair value adjustments from interest rate swap agreements at December 31 (in millions):

Increase in Carrying Value of Debt Due to Hedge Accounting for Interest Rate Swaps	December 31,
	2012		2011
Senior notes:
Active swap agreements	$	—	$	73
Terminated swap agreements		79		29
	$	79	$	102

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):

		Years Ended December 31
Derivatives Designated as Fair Value Hedges	Statement of Operations Classification	Gain (Loss) on Swap							Gain (Loss) on Fixed-Rate Debt
		2012			2011		2010		2012		2011			2010
Interest rate swaps	Interest expense	$	(1	)	$	35	$	6	$	1	$	(35	)	$	(6	)

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):

Decrease to Interest Expense Due to Hedge Accounting for Interest Rate Swaps	Years Ended December 31,
	2012		2011		2010
Periodic settlements of active swap agreements(a),(b)	$	8	$	23	$	29
Terminated swap agreements (b)		22		12		18
	$	30	$	35	$	47

(a) These amounts represent the net of our periodic variable-rate interest obligations and the swap counterparties’ fixed-rate interest obligations. Our swaps provided us to receive fixed interest rates ranging from 5.00% to 7.125% and pay floating interest rates based on spreads from three-month LIBOR ranging from (0.205)% to 5.53%.

(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.

Impact of Pretax Income on Cash Flow Derivatives on Comprehensive Income and Results of Operations

The following table summarizes the pre-tax impacts of our cash flow derivatives on our comprehensive income and results of operations (in millions):

	Amount of Derivative Gain (Loss) Recognized in OCI (Effective Portion)										Derivative Gain  (Loss) Reclassified from AOCI into Income (Effective Portion)
	Years Ended December 31,										Years Ended December 31,
Derivatives Designated as Cash Flow Hedges	2012			2011			2010			Statement of Operations Classification	2012			2011			2010
Forward-starting interest rate swaps	$	(27	)	$	(59	)	$	(33	)	Interest expense	$	(3	)	$	(1	)	$	—
Treasury rate locks		—			—			(11	)	Interest expense		(7	)		(7	)		(8	)
Foreign currency derivatives		(9	)		1			(22	)	Other income (expense)		(15	)		4			(18	)
Electricity commodity derivatives		—			8			(5	)	Operating revenues (expense)		10			2			(4	)
	$	(36	)	$	(50	)	$	(71	)		$	(15	)	$	(2	)	$	(30	)