Registration of securities issued in business combination transactions

FAIR VALUE (Tables)

v2.4.0.6
FAIR VALUE (Tables)
 9 Months Ended 12 Months Ended
Sep. 30, 2012
Dec. 31, 2011
FAIR VALUE    
Fair values of financial instruments

 

 

 
  September 30, 2012   December 31, 2011  
 
  Carrying
Value 		  Estimated
Fair Value 		  Carrying
Value 		  Estimated
Fair Value 		 

Non-qualified employee benefit plan investments

   $ 14   $ 14   $ 12   $ 12  

Cross-currency interest rate contracts

     29     29     27     27  

Interest rate contracts

     (19 )   (19 )   (17 )   (17 )

Long-term debt (including current portion)

     (3,680 )   (3,941 )   (3,942 )   (4,061 )

 

 
  December 31,  
 
  2011   2010  
 
  Carrying
Value 		  Estimated
Fair Value 		  Carrying
Value 		  Estimated
Fair Value 		 

Non-qualified employee benefit plan investments

   $ 12   $ 12   $ 11   $ 11  

Cross-currency interest rate contacts

     27     27     19     19  

Interest rate contracts

     (17 )   (17 )   (9 )   (9 )

Long-term debt (including current portion)

     (3,942 )   (4,061 )   (4,146 )   (4,371 )
Assets and liabilities are measured at fair value on a recurring basis

 

 

 
   
  Fair Value Amounts Using  
Description
  September 30,
2012 		  Quoted prices in
active markets for
identical assets
(Level 1)(3) 		  Significant other
observable inputs
(Level 2)(3) 		  Significant
unobservable
inputs (Level 3) 		 

Assets:

                          

Available-for-sale equity securities:

                          

Equity mutual funds

   $ 14   $ 14   $ -   $ -  

Derivatives:

                          

Cross-currency interest rate contracts(1)

     29     -     29     -  
                   

Total assets

   $ 43   $ 14   $ 29   $ -  
                   

Liabilities:

                          

Derivatives:

                          

Interest rate contracts(2)

   $ (19 ) $ -   $ (19 ) $ -  
                   


 

 
   
  Fair Value Amounts Using  
Description
  December 31,
2011 		  Quoted prices in
active markets for
identical assets
(Level 1)(3) 		  Significant other
observable inputs
(Level 2)(3) 		  Significant
unobservable
inputs (Level 3) 		 

Assets:

                          

Available-for-sale equity securities:

                          

Equity mutual funds

   $ 12   $ 12   $ -   $ -  

Derivatives:

                          

Cross-currency interest rate contracts(1)

     27     -     -     27  
                   

Total assets

   $ 39   $ 12   $ -   $ 27  
                   

Liabilities:

                          

Derivatives:

                          

Interest rate contracts(2)

   $ (17 ) $ -   $ (17 ) $ -  
                   
(1)
The income approach is used to calculate the fair value of these instruments. Fair value represents the present value of estimated future cash flows, calculated using relevant interest rates, exchange rates, and yield curves at stated intervals. There were no material changes to the valuation methods or assumptions used to determine the fair value during the current period.

(2)
The income approach is used to calculate the fair value of these instruments. Fair value represents the present value of estimated future cash flows, calculated using relevant interest rates and yield curves at stated intervals. There were no material changes to the valuation methods or assumptions used to determine the fair value during the current period.
(3)
There were no transfers between Levels 1 and 2 within the fair value hierarchy for the nine months ended September 30, 2012 and the year ended December 31, 2011.

 

 

 
   
  Fair Value Amounts Using  
Description
  December 31,
2011 		  Quoted prices
in active
markets for
identical
assets
(Level 1) 		  Significant
other
observable
inputs
(Level 2) 		  Significant
unobservable
inputs
(Level 3) 		 

Assets:

                          

Available-for sale equity securities:

                          

Equity mutual funds

   $ 12   $ 12   $ -   $ -  

Derivatives:

                          

Cross-currency interest rate contract(1)

     27     -     -     27  
                   

Total assets

   $ 39   $ 12   $ -   $ 27  
                   

Liabilities:

                          

Derivatives:

                          

Interest rate contracts(2)

   $ (17 ) $ -   $ (17 ) $ -  
                   


 

 
   
  Fair Value Amounts Using  
Description
  December 31,
2010 		  Quoted prices
in active
markets for
identical
assets
(Level 1) 		  Significant
other
observable
inputs
(Level 2) 		  Significant
unobservable
inputs
(Level 3) 		 

Assets:

                          

Available-for sale equity securities:

                          

Equity mutual funds

   $ 11   $ 11   $ -   $ -  

Derivatives:

                          

Cross-currency interest rate contract(1)

     19     -     -     19  
                   

Total assets

   $ 30   $ 11   $ -   $ 19  
                   

Liabilities:

                          

Derivatives:

                          

Interest rate contracts(2)

   $ (9 ) $ -   $ (9 ) $ -  
                   
(1)
The income approach is used to calculate the fair value of these instruments. Fair value represents the present value of estimated future cash flows, calculated using relevant interest rates, exchange rates, and yield curves at stated intervals.

(2)
The income approach is used to calculate the fair value of these instruments. Fair value represents the present value of estimated future cash flows, calculated using relevant interest rates and yield curves at stated intervals.
Reconciliation of beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

 

 

 
  Three months
ended
September 30, 2012 		  Nine months
ended
September 30, 2012 		 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
  Cross-Currency Interest
Rate Contracts 		  Cross-Currency Interest
Rate Contracts 		 

Beginning balance

   $ -   $ 27  

Transfers into Level 3

     -     -  

Transfer out of Level 3(1)

     -     (27 )

Total gains (losses):

              

Included in earnings

     -     -  

Included in other comprehensive income (loss)

     -     -  

Purchases, sales, issuances and settlements

     -     -  
           

Ending balance, September 30, 2012

   $ -   $ -  
           

The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at September 30, 2012

   $ -   $ -  
           

 

 
  Three months
ended
September 30, 2011 		  Nine months
ended
September 30, 2011 		 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
  Cross-Currency Interest
Rate Contracts 		  Cross-Currency Interest
Rate Contracts 		 

Beginning balance

   $ (5 ) $ 19  

Transfers into or out of Level 3

     -     -  

Total (losses) gains:

              

Included in earnings

     -     -  

Included in other comprehensive income (loss)

     24     -  

Purchases, sales, issuances and settlements

     -     -  
           

Ending balance, September 30, 2011

   $ 19   $ 19  
           

The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at September 30, 2011

   $ -   $ -  
           
(1)
We are party to cross-currency interest rate contracts that are measured at fair value in our financial statements (unaudited). These instruments have historically been categorized by us as Level 3 within the fair value hierarchy due to an unobservable input associated with the credit valuation adjustment, which we deemed to be a significant input to the overall measurement of fair value at inception. During the nine months ended September 30, 2012, this credit valuation adjustment has ceased to be a significant input to the entire fair value measurement of these instruments. The remaining inputs which are significant to the fair value measurement of these instruments represent observable market inputs that are inputs other than quoted prices (Level 2 inputs).

 

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
  Cross-currency
interest
rate contracts 		  Total  

Beginning balance, January 1, 2011

   $ 19   $ 19  

Total gains (losses):

              

Included in earnings

     -     -  

Included in other comprehensive income (loss)

     8     8  

Purchases, issuances and settlements

     -     -  
           

Ending balance, December 31, 2011

   $ 27   $ 27  
           

The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at December 31, 2011

   $ -   $ -  
           

 

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
  Realized
interest in
securitized
receivables 		  Cross-currency
interest
rate contracts 		  Total  

Beginning balance, January 1, 2010

   $ 262   $ -   $ 262  

Total gains (losses):

                    

Included in earnings

     -     12     12  

Included in other comprehensive income (loss)

     -     7     7  

Purchases, issuances and settlements(1)

     (262 )   -     (262 )
               

Ending balance, December 31, 2010

   $ -   $ 19   $ 19  
               

The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at December 31, 2010

   $ -   $ 12   $ 12  
               
(1)
Upon adoption of ASU 2009-16, transfers of our accounts receivable under our A/R Programs no longer met the criteria for derecognition. Accordingly, beginning January 1, 2010, the amounts outstanding under the A/R Programs were accounted for as secured borrowings and the retained interest in securitized receivables was no longer relevant.
Schedule of gains and losses (realized and unrealized) included in earnings reported in interest expense and other comprehensive (loss) income

 

 

 
  Three months
ended
September 30, 2012 		  Nine months
ended
September 30, 2012 		 
 
  Interest
expense 		  Other
comprehensive
income (loss) 		  Interest
expense 		  Other
comprehensive
income (loss) 		 

Total net gains included in earnings

   $ -   $ -   $ -   $ -  

Changes in unrealized gains relating to assets still held at September 30, 2012

     -     -     -     -  

 

 
  Three months
ended
September 30, 2011 		  Nine months
ended
September 30, 2011 		 
 
  Interest
expense 		  Other
comprehensive
income (loss) 		  Interest
expense 		  Other
comprehensive
income (loss) 		 

Total net gains included in earnings

   $ -   $ -   $ -   $ -  

Changes in unrealized losses relating to assets still held at September 30, 2011

     -     24     -     -  

 

2011
  Interest
expense 		  Other
comprehensive
income (loss) 		 

Total net gains included in earnings

   $ -   $ -  

Changes in unrealized gains relating to assets still held at December 31, 2011

   $ -   $ 8  

 

2010
  Interest
expense 		  Other
comprehensive
income (loss) 		 

Total net gains included in earnings

   $ 12   $ -  

Changes in unrealized gains relating to assets still held at December 31, 2010

   $ 12   $ 7