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Losses associated with the earthquake in Japan
9 Months Ended
Sep. 30, 2012
Losses Associated with the events in Japan [Abstract]  
Losses associated with the earthquake in Japan
Losses associated with the earthquake in Japan
In 2011, we incurred cumulative gross operating losses of $101 million (including $98 million for the first nine 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. Gross operating losses do not comprehend any lost revenue.

These losses have been offset by $36 million in cumulative insurance proceeds related to property damage claims (including $10 million for the third quarter of 2012 and $13 million for the third quarter of 2011, with $13 million for the first nine months of 2012 and $20 million for the first nine months of 2011). Almost all of these costs and proceeds are included in COR in our Consolidated statements of income and are recorded in Other.

In addition, we recognized $172 million in cumulative insurance proceeds through September 30, 2012 (including $60 million for the third quarter of 2012 and $22 million for the third quarter of 2011, with $135 million for the first nine months of 2012 and $22 million for the first nine months of 2011), related to business interruption claims. These proceeds were recorded as revenue in our Consolidated statements of income and in Other.

In the third quarter of 2012, we completed discussions with our insurers and their advisors, settling all associated claims against our policies. All proceeds have been recognized and received as of the end of the third quarter of 2012.