Losses associated with the earthquake in Japan

6 Months Ended

Jun. 30, 2012

Losses Associated with the events in Japan [Abstract]

Losses associated with the earthquake in Japan

Losses associated with the earthquake in Japan

Through June 30, 2012, we incurred cumulative gross operating losses of $101 million (including none for the first six months of 2012 and about $80 million for the first six months of 2011) related to the March 11, 2011, earthquake and associated events in Japan. These losses related to property damage, the underutilization expense we incurred from having our manufacturing assets only partially loaded and costs associated with recovery teams assembled from across the world.

These losses have been offset by about $25 million in cumulative insurance proceeds related to property damage claims. Almost all of these costs and proceeds are included in COR in the Consolidated statements of income and are recorded in Other.

In addition, we recognized about $110 million in cumulative insurance proceeds through June 30, 2012 (about $75 million for the first six months of 2012), related to business interruption claims. These proceeds were recorded as revenue in Other.

We continue discussions with our insurers and their advisors, but at this time we cannot estimate the timing and amount of future proceeds we may ultimately receive from our policies.