2.2.0.25falsefalse00540 - Disclosure - Financial Instruments and Fair Value Measurestruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) $FROM_Jan01_2011_TO_Mar31_2011http://www.sec.gov/CIK0000773840duration2011-01-01T00:00:002011-03-31T00:00:00USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0hon_FinancialInstrumentsAndFairValueMeasuresAbstracthonfalsenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalseFinancial Instruments And Fair Value Measures [Abstract]3false0us-gaap_FairValueDisclosuresTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00Note 10. Financial Instruments and Fair Value Measures Credit and Market Risk—Financial instruments, including derivatives, expose us to counterparty credit risk for nonperformance and to market risk related to changes in interest and currency exchange rates and commodity prices. We manage our exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties, and procedures to monitor concentrations of credit risk. Our counterparties in derivative transactions are substantial investment and commercial banks with significant experience using such derivative instruments. We monitor the impact of market risk on the fair value and cash flows of our derivative and other financial instruments considering reasonably possible changes in interest rates, currency exchange rates and commodity prices and restrict the use of derivative financial instruments to hedging activities. We continually monitor the creditworthiness of our customers to which we grant credit terms in the normal course of business. The terms and conditions of our credit sales are designed to mitigate or eliminate concentrations of credit risk with any single customer. Our sales are not materially dependent on a single customer or a small group of customers. Foreign Currency Risk Management—We conduct our business on a multinational basis in a wide variety of foreign currencies. Our exposure to market risk for changes in foreign currency exchange rates arises from international financing activities between subsidiaries, foreign currency denominated monetary assets and liabilities and transactions arising from international trade. Our objective is to preserve the economic value of non-functional currency denominated cash flows. We attempt to hedge transaction exposures with natural offsets to the fullest extent possible and, once these opportunities have been exhausted, through foreign currency exchange forward and option contracts with third parties.  We hedge monetary assets and liabilities denominated in non-functional currencies. Prior to conversion into U.S. dollars, these assets and liabilities are remeasured at spot exchange rates in effect on the balance sheet date. The effects of changes in spot rates are recognized in earnings and included in Other (Income) Expense. We partially hedge forecasted sales and purchases, which predominantly occur in the next twelve months and are denominated in non-functional currencies, with currency forward contracts. Changes in the forecasted non-functional currency cash flows due to movements in exchange rates are substantially offset by changes in the fair value of the currency forward contracts designated as hedges. Market value gains and losses on these contracts are recognized in earnings when the hedged transaction is recognized. Open foreign currency exchange forward contracts mature predominantly in the next twelve months. At March 31, 2011 and December 31, 2010, we had contracts with notional amounts of $5,833 million and $5,733, million respectively, to exchange foreign currencies, principally the U.S. dollar, Euro, British pound, Canadian dollar, Hong Kong dollar, Mexican peso, Swiss franc, Czech koruna, Chinese renminbi, Indian rupee, Singapore dollar, Swedish krona and Korean won. Commodity Price Risk Management—Our exposure to market risk for commodity prices can result in changes in our cost of production. We primarily mitigate our exposure to commodity price risk through the use of long-term, fixed-price contracts with our suppliers and formula price agreements with suppliers and customers. We also enter into forward commodity contracts with third parties designated as hedges of anticipated purchases of several commodities. Forward commodity contracts are marked-to-market, with the resulting gains and losses recognized in earnings when the hedged transaction is recognized. At March 31, 2011 and December 31, 2010, we had contracts with notional amounts of $34 million and $23 million, respectively, related to forward commodity agreements, principally base metals and natural gas.  Interest Rate Risk Management— We use a combination of financial instruments, including long-term, medium-term and short-term financing, variable-rate commercial paper, and interest rate swaps to manage the interest rate mix of our total debt portfolio and related overall cost of borrowing. At March 31, 2011 and December 31, 2010, interest rate swap agreements designated as fair value hedges effectively changed $1,400 and $600 million, respectively, of fixed rate debt at an average rate of 4.09 and 3.88 percent, respectively, to LIBOR based floating rate debt. Our interest rate swaps mature at various dates through 2021. Fair Value of Financial Instruments— The FASB's accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB's guidance classifies the inputs used to measure fair value into the following hierarchy:<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 17px"><td style="width: 80px; text-align:left;border-color:#000000;min-width:80px;"> </td><td rowspan="2" style="width: 64px; text-align:left;border-color:#000000;min-width:64px;">Level 1</td><td rowspan="2" style="width: 36px; text-align:left;border-color:#000000;min-width:36px;"> </td><td style="width: 455px; text-align:left;border-color:#000000;min-width:455px;">Unadjusted quoted prices in active markets for identical assets or liabilities</td></tr><tr style="height: 17px"><td style="width: 80px; text-align:left;border-color:#000000;min-width:80px;"> </td><td style="width: 455px; text-align:left;border-color:#000000;min-width:455px;"> </td></tr><tr style="height: 17px"><td style="width: 80px; text-align:left;border-color:#000000;min-width:80px;"> </td><td rowspan="7" style="width: 64px; text-align:left;border-color:#000000;min-width:64px;">Level 2</td><td rowspan="7" style="width: 36px; text-align:left;border-color:#000000;min-width:36px;"> </td><td style="width: 455px; text-align:left;border-color:#000000;min-width:455px;">Unadjusted quoted prices in active markets for similar assets or liabilities, or</td></tr><tr style="height: 17px"><td style="width: 80px; text-align:left;border-color:#000000;min-width:80px;"> </td><td style="width: 455px; text-align:left;border-color:#000000;min-width:455px;"> </td></tr><tr style="height: 17px"><td style="width: 80px; text-align:left;border-color:#000000;min-width:80px;"> </td><td style="width: 455px; text-align:left;border-color:#000000;min-width:455px;">Unadjusted quoted prices for identical or similar assets or liabilities in</td></tr><tr style="height: 17px"><td style="width: 80px; text-align:left;border-color:#000000;min-width:80px;"> </td><td style="width: 455px; text-align:left;border-color:#000000;min-width:455px;">markets that are not active, or</td></tr><tr style="height: 17px"><td style="width: 80px; text-align:left;border-color:#000000;min-width:80px;"> </td><td style="width: 455px; text-align:left;border-color:#000000;min-width:455px;"> </td></tr><tr style="height: 17px"><td style="width: 80px; text-align:left;border-color:#000000;min-width:80px;"> </td><td style="width: 455px; text-align:left;border-color:#000000;min-width:455px;">Inputs other than quoted prices that are observable for the asset or liability</td></tr><tr style="height: 17px"><td style="width: 80px; text-align:left;border-color:#000000;min-width:80px;"> </td><td style="width: 455px; text-align:left;border-color:#000000;min-width:455px;"> </td></tr><tr style="height: 17px"><td style="width: 80px; text-align:left;border-color:#000000;min-width:80px;"> </td><td style="width: 64px; text-align:left;border-color:#000000;min-width:64px;">Level 3</td><td style="width: 36px; text-align:left;border-color:#000000;min-width:36px;"> </td><td style="width: 455px; text-align:left;border-color:#000000;min-width:455px;">Unobservable inputs for the asset or liability</td></tr></table></div>The Company endeavors to utilize the best available information in measuring fair value. Financial and nonfinancial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that our available for sale investments are level 1 and our remaining financial assets and liabilities are level 2 in the fair value hierarchy. The following table sets forth the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2011 and December 31, 2010:  <div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 320px; text-align:left;border-color:#000000;min-width:320px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:center;border-color:#000000;min-width:86px;">March 31,</td><td style="width: 24px; text-align:center;border-color:#000000;min-width:24px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:center;border-color:#000000;min-width:86px;">December 31,</td><td style="width: 56px; text-align:center;border-color:#000000;min-width:56px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 320px; text-align:left;border-color:#000000;min-width:320px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:86px;">2011</td><td style="width: 24px; text-align:center;border-color:#000000;min-width:24px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:86px;">2010</td><td style="width: 56px; text-align:center;border-color:#000000;min-width:56px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 320px; text-align:left;border-color:#000000;min-width:320px;">Assets:</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:86px;"> </td><td style="width: 24px; text-align:left;border-color:#000000;min-width:24px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:86px;"> </td><td style="width: 56px; text-align:left;border-color:#000000;min-width:56px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 320px; text-align:left;border-color:#000000;min-width:320px;"> Foreign currency exchange contracts</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 86px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:86px;"> 53</td><td style="width: 24px; text-align:right;border-color:#000000;min-width:24px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 86px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:86px;"> 16</td><td style="width: 56px; text-align:center;border-color:#000000;min-width:56px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 320px; text-align:left;border-color:#000000;min-width:320px;"> Available for sale investments</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:86px;"> 412</td><td style="width: 24px; text-align:right;border-color:#000000;min-width:24px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:86px;"> 322</td><td style="width: 56px; text-align:center;border-color:#000000;min-width:56px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 320px; text-align:left;border-color:#000000;min-width:320px;"> Interest rate swap agreements</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:86px;"> 31</td><td style="width: 24px; text-align:right;border-color:#000000;min-width:24px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:86px;"> 22</td><td style="width: 56px; text-align:center;border-color:#000000;min-width:56px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 320px; text-align:left;border-color:#000000;min-width:320px;"> Forward commodity contracts</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:86px;"> 4</td><td style="width: 24px; text-align:right;border-color:#000000;min-width:24px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:86px;"> 2</td><td style="width: 56px; text-align:center;border-color:#000000;min-width:56px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 320px; text-align:left;border-color:#000000;min-width:320px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:right;border-color:#000000;min-width:86px;"> </td><td style="width: 24px; text-align:right;border-color:#000000;min-width:24px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:right;border-color:#000000;min-width:86px;"> </td><td style="width: 56px; text-align:center;border-color:#000000;min-width:56px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 320px; text-align:left;border-color:#000000;min-width:320px;">Liabilities: </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:right;border-color:#000000;min-width:86px;"> </td><td style="width: 24px; text-align:right;border-color:#000000;min-width:24px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:right;border-color:#000000;min-width:86px;"> </td><td style="width: 56px; text-align:center;border-color:#000000;min-width:56px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 320px; text-align:left;border-color:#000000;min-width:320px;"> Foreign currency exchange contracts</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 86px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:86px;"> 50</td><td style="width: 24px; text-align:right;border-color:#000000;min-width:24px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 86px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:86px;"> 14</td><td style="width: 56px; text-align:center;border-color:#000000;min-width:56px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 320px; text-align:left;border-color:#000000;min-width:320px;"> Forward commodity contracts</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:86px;"> -</td><td style="width: 24px; text-align:right;border-color:#000000;min-width:24px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 86px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:86px;"> 2</td><td style="width: 56px; text-align:center;border-color:#000000;min-width:56px;"> </td></tr></table></div>The foreign currency exchange contracts, interest rate swap agreements, and forward commodity contracts are valued using broker quotations, or market transactions in either the listed or over-the-counter markets. As such, these derivative instruments are classified within level 2. The Company also holds investments in marketable equity securities, commercial paper, certificates of deposits, and time deposits that are designated as available for sale and are valued using market transactions in over-the-counter markets. As such, these investments are classified within level 2.  The carrying value of cash and cash equivalents, trade accounts and notes receivables, payables, commercial paper and short-term borrowings contained in the Consolidated Balance Sheet approximates fair value. The following table sets forth the Company's financial assets and liabilities that were not carried at fair value: <div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 16px"><td style="width: 296px; text-align:center;border-color:#000000;min-width:296px;"> </td><td colspan="5" style="width: 178px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:178px;">March 31, 2011</td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td colspan="5" style="width: 178px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:178px;">December 31, 2010</td></tr><tr style="height: 16px"><td rowspan="2" style="width: 296px; text-align:center;border-color:#000000;min-width:296px;"> </td><td colspan="2" style="width: 79px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:79px;">Carrying</td><td rowspan="2" style="width: 20px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:20px;"> </td><td colspan="2" style="width: 79px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:79px;">Fair</td><td rowspan="2" style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td colspan="2" style="width: 79px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:79px;">Carrying</td><td rowspan="2" style="width: 20px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:20px;"> </td><td colspan="2" style="width: 79px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:79px;">Fair</td></tr><tr style="height: 16px"><td colspan="2" style="width: 79px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:79px;">Value</td><td colspan="2" style="width: 79px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:79px;">Value</td><td colspan="2" style="width: 79px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:79px;">Value</td><td colspan="2" style="width: 79px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:79px;">Value</td></tr><tr style="height: 16px"><td style="width: 296px; text-align:left;border-color:#000000;min-width:296px;">Assets</td><td style="width: 15px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 64px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:64px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 15px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 64px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:64px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 15px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 64px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:64px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 15px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 64px; border-top-style:solid;border-top-width:1px;text-align:right;border-color:#000000;min-width:64px;"> </td></tr><tr style="height: 16px"><td style="width: 296px; text-align:left;border-color:#000000;min-width:296px;"> Long-term receivables</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;">139</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;">132</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;">203</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;">199</td></tr><tr style="height: 16px"><td style="width: 296px; text-align:left;border-color:#000000;min-width:296px;">Liabilities</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;"> </td></tr><tr style="height: 16px"><td style="width: 296px; text-align:left;border-color:#000000;min-width:296px;"> Long-term debt and related current maturities</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;">7,279</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;">7,773</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;">6,278</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 64px; text-align:right;border-color:#000000;min-width:64px;">6,835</td></tr></table></div>As of March 31, 2011, the Company had nonfinancial assets, specifically property, plant and equipment, with a net book value of $10 million which were accounted for at fair value on a nonrecurring basis. These assets were tested for impairment and based on the fair value of these assets the Company recognized losses of $10 million in the three months ended March 31, 2011, primarily in connection with our repositioning actions (see Note 3 Repositioning and Other Charges). The Company has determined that the fair value measurements of these nonfinancial assets are level 3 in the fair value hierarchy. As of March 31, 2010, the Company had nonfinancial assets, specifically property, plant and equipment, software and intangible assets, with a net book value of $14 million that were accounted for at fair value on a nonrecurring basis. Based on the fair value of these assets the Company recognized losses of $13 million in the three months ended March 31, 2010.  The derivatives utilized for risk management purposes as detailed above are included on the Consolidated Balance Sheet and impacted the Statement of Operations as follows: <div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 16px"><td colspan="3" style="width: 477px; text-align:left;border-color:#000000;min-width:477px;">Fair value of derivatives classified as assets consist of the following:</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:left;border-color:#000000;min-width:84px;"> </td><td style="width: 13px; text-align:left;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:left;border-color:#000000;min-width:88px;"> </td></tr><tr style="height: 16px"><td style="width: 225px; text-align:left;border-color:#000000;min-width:225px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; text-align:left;border-color:#000000;min-width:237px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:center;border-color:#000000;min-width:84px;">March 31,</td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:center;border-color:#000000;min-width:88px;">December 31,</td></tr><tr style="height: 16px"><td style="width: 225px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:225px;">Designated as a Hedge</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:237px;">Balance Sheet Classification</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:84px;">2011</td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:88px;">2010</td></tr><tr style="height: 5px"><td style="width: 225px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:225px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:237px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:84px;"> </td><td style="width: 13px; text-align:left;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:88px;"> </td></tr><tr style="height: 16px"><td style="width: 225px; text-align:left;border-color:#000000;min-width:225px;">Foreign currency exchange contracts</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; text-align:left;border-color:#000000;min-width:237px;">Accounts, notes, and other receivables</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 84px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:84px;"> 51</td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;">$</td><td style="width: 88px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:88px;"> 10</td></tr><tr style="height: 16px"><td style="width: 225px; text-align:left;border-color:#000000;min-width:225px;">Interest rate swap agreements</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; text-align:left;border-color:#000000;min-width:237px;">Other assets</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:84px;"> 31</td><td style="width: 13px; text-align:right;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:88px;"> 22</td></tr><tr style="height: 16px"><td style="width: 225px; text-align:left;border-color:#000000;min-width:225px;">Commodity contracts</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; text-align:left;border-color:#000000;min-width:237px;">Accounts, notes, and other receivables</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:84px;"> 4</td><td style="width: 13px; text-align:right;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:88px;"> 2</td></tr><tr style="height: 16px"><td style="width: 225px; text-align:left;border-color:#000000;min-width:225px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; text-align:left;border-color:#000000;min-width:237px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:center;border-color:#000000;min-width:84px;"> </td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:center;border-color:#000000;min-width:88px;"> </td></tr><tr style="height: 16px"><td style="width: 225px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:225px;">Not Designated as a Hedge</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:237px;">Balance Sheet Classification</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:center;border-color:#000000;min-width:84px;"> </td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:center;border-color:#000000;min-width:88px;"> </td></tr><tr style="height: 5px"><td style="width: 225px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:225px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:237px;"> </td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:center;border-color:#000000;min-width:84px;"> </td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:center;border-color:#000000;min-width:88px;"> </td></tr><tr style="height: 16px"><td style="width: 225px; text-align:left;border-color:#000000;min-width:225px;">Foreign currency exchange contracts</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; text-align:left;border-color:#000000;min-width:237px;">Accounts, notes, and other receivables</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;">$</td><td style="width: 84px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:84px;"> 2</td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;">$</td><td style="width: 88px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:88px;"> 6</td></tr><tr style="height: 16px"><td style="width: 225px; text-align:left;border-color:#000000;min-width:225px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; text-align:left;border-color:#000000;min-width:237px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:left;border-color:#000000;min-width:84px;"> </td><td style="width: 13px; text-align:left;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:left;border-color:#000000;min-width:88px;"> </td></tr><tr style="height: 16px"><td style="width: 225px; text-align:left;border-color:#000000;min-width:225px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; text-align:left;border-color:#000000;min-width:237px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:left;border-color:#000000;min-width:84px;"> </td><td style="width: 13px; text-align:left;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:left;border-color:#000000;min-width:88px;"> </td></tr><tr style="height: 16px"><td colspan="3" style="width: 477px; text-align:left;border-color:#000000;min-width:477px;">Fair value of derivatives classified as liabilities consist of the following:</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:left;border-color:#000000;min-width:84px;"> </td><td style="width: 13px; text-align:left;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:left;border-color:#000000;min-width:88px;"> </td></tr><tr style="height: 16px"><td style="width: 225px; text-align:left;border-color:#000000;min-width:225px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; text-align:left;border-color:#000000;min-width:237px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:center;border-color:#000000;min-width:84px;">March 31,</td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:center;border-color:#000000;min-width:88px;">December 31,</td></tr><tr style="height: 16px"><td style="width: 225px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:225px;">Designated as a Hedge</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:237px;">Balance Sheet Classification</td><td style="width: 15px; text-align:center;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:84px;">2011</td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:88px;">2010</td></tr><tr style="height: 5px"><td style="width: 225px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:225px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:237px;"> </td><td style="width: 15px; text-align:center;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:84px;"> </td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:88px;"> </td></tr><tr style="height: 16px"><td style="width: 225px; text-align:left;border-color:#000000;min-width:225px;">Foreign currency exchange contracts</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; text-align:left;border-color:#000000;min-width:237px;">Accrued liabilities</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;">$</td><td style="width: 84px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:84px;"> 46</td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;">$</td><td style="width: 88px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:88px;"> 9</td></tr><tr style="height: 16px"><td style="width: 225px; text-align:left;border-color:#000000;min-width:225px;">Commodity contracts</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; text-align:center;border-color:#000000;min-width:237px;">Accrued liabilities</td><td style="width: 15px; text-align:right;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:84px;"> -</td><td style="width: 13px; text-align:right;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:88px;"> 2</td></tr><tr style="height: 16px"><td style="width: 225px; text-align:left;border-color:#000000;min-width:225px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; text-align:center;border-color:#000000;min-width:237px;"> </td><td style="width: 15px; text-align:center;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:left;border-color:#000000;min-width:84px;"> </td><td style="width: 13px; text-align:left;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:left;border-color:#000000;min-width:88px;"> </td></tr><tr style="height: 16px"><td style="width: 225px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:225px;">Not Designated as a Hedge</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:237px;">Balance Sheet Classification</td><td style="width: 15px; text-align:center;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:center;border-color:#000000;min-width:84px;"> </td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:center;border-color:#000000;min-width:88px;"> </td></tr><tr style="height: 16px"><td style="width: 225px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:225px;"> </td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:237px;"> </td><td style="width: 15px; text-align:center;border-color:#000000;min-width:15px;"> </td><td style="width: 84px; text-align:center;border-color:#000000;min-width:84px;"> </td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;"> </td><td style="width: 88px; text-align:center;border-color:#000000;min-width:88px;"> </td></tr><tr style="height: 16px"><td style="width: 225px; text-align:left;border-color:#000000;min-width:225px;">Foreign currency exchange contracts</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;"> </td><td style="width: 237px; text-align:center;border-color:#000000;min-width:237px;">Accrued liabilities</td><td style="width: 15px; text-align:left;border-color:#000000;min-width:15px;">$</td><td style="width: 84px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:84px;"> 4</td><td style="width: 13px; text-align:center;border-color:#000000;min-width:13px;">$</td><td style="width: 88px; text-align:right;background-color:#00FFFF;border-color:#000000;min-width:88px;"> 5</td></tr></table></div><div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 16px"><td colspan="9" style="width: 672px; text-align:left;border-color:#000000;min-width:672px;">Gains (losses) recognized in OCI (effective portion) consist of the following:</td></tr><tr style="height: 16px"><td style="width: 76px; text-align:left;border-color:#000000;min-width:76px;"> </td><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 260px; text-align:center;border-color:#000000;min-width:260px;"> </td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; text-align:left;border-color:#000000;min-width:50px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; text-align:left;border-color:#000000;min-width:50px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 138px; text-align:center;border-color:#000000;min-width:138px;"> </td></tr><tr style="height: 16px"><td style="width: 76px; text-align:left;border-color:#000000;min-width:76px;"> </td><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 260px; text-align:center;border-color:#000000;min-width:260px;"> </td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td colspan="3" style="width: 120px; text-align:center;border-color:#000000;min-width:120px;">Three Months Ended</td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 138px; text-align:center;border-color:#000000;min-width:138px;"> </td></tr><tr style="height: 16px"><td style="width: 76px; text-align:left;border-color:#000000;min-width:76px;"> </td><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 260px; text-align:center;border-color:#000000;min-width:260px;"> </td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td colspan="3" style="width: 120px; text-align:center;border-color:#000000;min-width:120px;">March, 31</td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 138px; text-align:center;border-color:#000000;min-width:138px;"> </td></tr><tr style="height: 17px"><td style="width: 76px; text-align:left;border-color:#000000;min-width:76px;"> </td><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 260px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:260px;">Designated Cash Flow Hedge</td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:50px;">2011</td><td style="width: 20px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:50px;">2010</td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 138px; text-align:center;border-color:#000000;min-width:138px;"> </td></tr><tr style="height: 5px"><td style="width: 76px; text-align:left;border-color:#000000;min-width:76px;"> </td><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 260px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:260px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:50px;"> </td><td style="width: 20px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; border-top-style:solid;border-top-width:1px;text-align:left;border-color:#000000;min-width:50px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 138px; text-align:center;border-color:#000000;min-width:138px;"> </td></tr><tr style="height: 16px"><td style="width: 76px; text-align:left;border-color:#000000;min-width:76px;"> </td><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 260px; text-align:left;border-color:#000000;min-width:260px;">Foreign currency exchange contracts </td><td style="width: 20px; text-align:right;border-color:#000000;min-width:20px;">$</td><td style="width: 50px; text-align:right;border-color:#000000;min-width:50px;"> 8</td><td style="width: 20px; text-align:right;border-color:#000000;min-width:20px;">$</td><td style="width: 50px; text-align:right;border-color:#000000;min-width:50px;">20</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 138px; text-align:center;border-color:#000000;min-width:138px;"> </td></tr><tr style="height: 16px"><td style="width: 76px; text-align:left;border-color:#000000;min-width:76px;"> </td><td style="width: 38px; text-align:left;border-color:#000000;min-width:38px;"> </td><td style="width: 260px; text-align:left;border-color:#000000;min-width:260px;">Commodity contracts</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; text-align:right;border-color:#000000;min-width:50px;"> 3</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; text-align:right;border-color:#000000;min-width:50px;">(2)</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 138px; text-align:center;border-color:#000000;min-width:138px;"> </td></tr></table></div><div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 16px"><td colspan="9" style="width: 601px; text-align:left;border-color:#000000;min-width:601px;">Gains (losses) reclassified from AOCI to income consist of the following:</td><td style="width: 71px; text-align:left;border-color:#000000;min-width:71px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 134px; text-align:center;border-color:#000000;min-width:134px;"> </td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 218px; text-align:center;border-color:#000000;min-width:218px;"> </td><td style="width: 19px; text-align:center;border-color:#000000;min-width:19px;"> </td><td style="width: 50px; text-align:left;border-color:#000000;min-width:50px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; text-align:left;border-color:#000000;min-width:50px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 71px; text-align:left;border-color:#000000;min-width:71px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 134px; text-align:left;border-color:#000000;min-width:134px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 218px; text-align:center;border-color:#000000;min-width:218px;"> </td><td style="width: 19px; text-align:center;border-color:#000000;min-width:19px;"> </td><td colspan="3" style="width: 120px; text-align:center;border-color:#000000;min-width:120px;">Three Months Ended</td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 71px; text-align:center;border-color:#000000;min-width:71px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 134px; text-align:left;border-color:#000000;min-width:134px;">Designated</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 218px; text-align:center;border-color:#000000;min-width:218px;"> </td><td style="width: 19px; text-align:center;border-color:#000000;min-width:19px;"> </td><td colspan="3" style="width: 120px; text-align:center;border-color:#000000;min-width:120px;">March 31,</td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 71px; text-align:center;border-color:#000000;min-width:71px;"> </td></tr><tr style="height: 17px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 134px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:134px;">Cash Flow Hedge</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 218px; border-bottom-style:solid;border-bottom-width:1px;text-align:left;border-color:#000000;min-width:218px;">Income Statement Location</td><td style="width: 19px; text-align:center;border-color:#000000;min-width:19px;"> </td><td style="width: 50px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:50px;">2011</td><td style="width: 20px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:50px;">2010</td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 71px; text-align:center;border-color:#000000;min-width:71px;"> </td></tr><tr style="height: 5px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 134px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:134px;"> </td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 218px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:218px;"> </td><td style="width: 19px; text-align:center;border-color:#000000;min-width:19px;"> </td><td style="width: 50px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:50px;"> </td><td style="width: 20px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; border-top-style:solid;border-top-width:1px;text-align:center;border-color:#000000;min-width:50px;"> </td><td style="width: 20px; text-align:center;border-color:#000000;min-width:20px;"> </td><td style="width: 71px; text-align:center;border-color:#000000;min-width:71px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 134px; text-align:left;border-color:#000000;min-width:134px;">Foreign currency</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 218px; text-align:left;border-color:#000000;min-width:218px;">Product sales</td><td style="width: 19px; text-align:right;border-color:#000000;min-width:19px;">$</td><td style="width: 50px; text-align:right;border-color:#000000;min-width:50px;"> 6</td><td style="width: 20px; text-align:right;border-color:#000000;min-width:20px;">$</td><td style="width: 50px; text-align:right;border-color:#000000;min-width:50px;"> (3)</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 71px; text-align:left;border-color:#000000;min-width:71px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 134px; text-align:left;border-color:#000000;min-width:134px;">exchange contracts</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 218px; text-align:left;border-color:#000000;min-width:218px;">Cost of products sold</td><td style="width: 19px; text-align:right;border-color:#000000;min-width:19px;"> </td><td style="width: 50px; text-align:right;border-color:#000000;min-width:50px;"> (5)</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; text-align:right;border-color:#000000;min-width:50px;"> 2</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 71px; text-align:left;border-color:#000000;min-width:71px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 134px; text-align:left;border-color:#000000;min-width:134px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 218px; text-align:left;border-color:#000000;min-width:218px;">Sales & general administrative</td><td style="width: 19px; text-align:right;border-color:#000000;min-width:19px;"> </td><td style="width: 50px; text-align:right;border-color:#000000;min-width:50px;"> 2</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; text-align:right;border-color:#000000;min-width:50px;"> 1</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 71px; text-align:left;border-color:#000000;min-width:71px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 134px; text-align:left;border-color:#000000;min-width:134px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 218px; text-align:left;border-color:#000000;min-width:218px;"> </td><td style="width: 19px; text-align:right;border-color:#000000;min-width:19px;"> </td><td style="width: 50px; text-align:left;border-color:#000000;min-width:50px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 50px; text-align:left;border-color:#000000;min-width:50px;"> </td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 71px; text-align:left;border-color:#000000;min-width:71px;"> </td></tr><tr style="height: 16px"><td style="width: 70px; text-align:left;border-color:#000000;min-width:70px;"> </td><td style="width: 134px; text-align:left;border-color:#000000;min-width:134px;">Commodity contracts</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 218px; text-align:left;border-color:#000000;min-width:218px;">Cost of products sold</td><td style="width: 19px; text-align:right;border-color:#000000;min-width:19px;">$</td><td style="width: 50px; text-align:right;border-color:#000000;min-width:50px;"> (1)</td><td style="width: 20px; text-align:right;border-color:#000000;min-width:20px;">$</td><td style="width: 50px; text-align:right;border-color:#000000;min-width:50px;"> (1)</td><td style="width: 20px; text-align:left;border-color:#000000;min-width:20px;"> </td><td style="width: 71px; text-align:left;border-color:#000000;min-width:71px;"> </td></tr></table></div>Ineffective portions of commodity derivative instruments designated in cash flow hedge relationships were insigificant in the three months ended March 31, 2011 and 2010 and are located in cost of products sold. Foreign currency exchange contracts designated in cash flow hedge relationships qualify as critical matched terms hedge relationships and as a result have no ineffectiveness.  Interest rate swap agreements are designated as hedge relationships with gains or (losses) on the derivative recognized in Interest and other financial charges offsetting the gains and losses on the underlying debt being hedged. Gains on interest rate swap agreements recognized in earnings were $9 million in the three months ended March 31, 2011. These gains were fully off-set by losses on the underlying debt being hedged. Gains on interest rate swap agreements recognized in earnings were $4 million in the three months ended March 31, 2010. These gains were fully off-set by losses on the underlying debt being hedged. We also economically hedge our exposure to changes in foreign exchange rates principally with forward contracts. These contracts are marked-to-market with the resulting gains and losses recognized in earnings offsetting the gains and losses on the non-functional currency denominated monetary assets and liabilities being hedged. For the three months ended March 31, 2011 and 2010, we recognized $23 million and $22 million of expense, respectively in Other (Income) Expense. Note 10. Financial Instruments and Fair Value Measures Credit and Market Risk—Financial instruments, including derivatives, expose us tofalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringThis item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 14, 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 falsefalseFinancial Instruments and Fair Value Measures12Financial Instruments and Fair Value MeasuresUnKnownUnKnownUnKnownUnKnownfalsetrue