Derivative Financial Instruments and Risk Management (Tables)

6 Months Ended

Jun. 30, 2012

Derivatives, Fair Value [Line Items]

Fair Value of Derivatives by Level of Inputs [Table Text Block]

The following tables summarize information regarding marketable securities (dollars in millions):



	June 30, 2012
			Unrealized				Fair Value		Fair Value Measurements on a Recurring Basis
	Cost		Gains		Losses		Fair Value		Level 1		Level 2		Level 3
Cash and cash equivalents
Available-for-sale securities
U.S. government and agencies	$	8,042	$	—	$	—	$	8,042	$	—	$	8,042	$	—
Sovereign debt	441		—		—		441		—		441		—
Certificates of deposit	350		—		—		350		—		350		—
Money market funds	1,309		—		—		1,309		1,309		—		—
Corporate debt	4,794		—		—		4,794		—		4,794		—
Total marketable securities classified as cash equivalents	$	14,936	$	—	$	—	14,936		$	1,309	$	13,627	$	—
Cash, time deposits, and other cash equivalents							7,248
Total cash and cash equivalents							$	22,184
Marketable securities - current
Available-for-sale securities
U.S. government and agencies	$	1,370	$	—	$	—	$	1,370	$	—	$	1,370	$	—
Sovereign debt	67		—		—		67		—		67		—
Certificates of deposit	40		—		—		40		—		40		—
Corporate debt	3,479		4		2		3,481		—		3,481		—
Total available-for-sale securities	$	4,956	$	4	$	2	4,958		—		4,958		—
Trading securities(a)
Sovereign debt							6,423		—		6,423		—
Total trading securities							6,423		—		6,423		—
Total marketable securities - current							11,381		—		11,381		—
Marketable securities - non-current
Available-for-sale securities
Equity(b)	$	404	$	—	$	160	244		244		—		—
Total marketable securities - non-current	$	404	$	—	$	160	244		244		—		—
Total marketable securities							$	11,625	$	244	$	11,381	$	—
Restricted cash and marketable securities
Available-for-sale securities
Money market funds	$	1,027	$	—	$	—	$	1,027	$	1,027	$	—	$	—
Sovereign debt	20		—		—		20		—		20		—
Other	169		—		—		169		—		169		—
Total marketable securities classified as restricted cash and marketable securities	$	1,216	$	—	$	—	1,216		$	1,027	$	189	$	—
Restricted cash, time deposits, and other restricted cash equivalents							564
Total restricted cash and marketable securities							$	1,780

________


(a)	Net unrealized losses on trading securities were $111 million and $61 million in the three and six months ended June 30, 2012. Net unrealized gains (losses) were insignificant in the three and six months ended June 30, 2011. Unrealized gains (losses) are primarily related to remeasurement of Canadian Dollar (CAD) denominated securities.


(b)	Represents our seven percent ownership in PSA acquired in connection with our agreement with PSA to create a long-term and strategic alliance. The investment is recorded in Other assets and deferred income taxes.



	December 31, 2011
			Unrealized				Fair Value		Fair Value Measurements on a Recurring Basis
	Cost		Gains		Losses		Fair Value		Level 1		Level 2		Level 3
Cash and cash equivalents
Available-for-sale securities
U.S. government and agencies	$	239	$	—	$	—	$	239	$	—	$	239	$	—
Sovereign debt	490		—		—		490		—		490		—
Certificates of deposit	2,028		—		—		2,028		—		2,028		—
Money market funds	1,794		—		—		1,794		1,794		—		—
Corporate debt	5,112		—		—		5,112		—		5,112		—
Total available-for-sale securities	$	9,663	$	—	$	—	9,663		1,794		7,869		—
Trading securities
Sovereign debt							497		—		497		—
Total trading securities							497		—		497		—
Total marketable securities classified as cash equivalents							10,160		$	1,794	$	8,366	$	—
Cash, time deposits, and other cash equivalents							5,911
Total cash and cash equivalents							$	16,071
Marketable securities - current
Available-for-sale securities
U.S. government and agencies	$	5,214	$	2	$	—	$	5,216	$	—	$	5,216	$	—
Sovereign debt	143		—		—		143		—		143		—
Certificates of deposit	178		—		—		178		—		178		—
Corporate debt	4,566		3		4		4,565		—		4,565		—
Total available-for-sale securities	$	10,101	$	5	$	4	10,102		—		10,102		—
Trading securities
Equity							34		34		—		—
Sovereign debt							5,936		—		5,936		—
Other debt							76		—		76		—
Total trading securities							6,046		34		6,012		—
Total marketable securities - current							$	16,148	$	34	$	16,114	$	—
Restricted cash and marketable securities
Available-for-sale securities
Money market funds	$	1,363	$	—	$	—	$	1,363	$	1,363	$	—	$	—
Sovereign debt	15		—		—		15		—		15		—
Other	161		3		—		164		—		164		—
Total marketable securities classified as restricted cash and marketable securities	$	1,539	$	3	$	—	1,542		$	1,363	$	179	$	—
Restricted cash, time deposits, and other restricted cash equivalents							691
Total restricted cash and marketable securities							$	2,233

Automotive [Member]

Derivatives, Fair Value [Line Items]

Fair Value of Derivatives in Statement of Financial Position [Table Text Block]

The following tables summarize fair value measurements of our derivative instruments measured on a recurring basis (dollars in millions):



	June 30, 2012
			Derivative Assets				Derivative Liabilities
	Notional		Current(a)		Non-Current(b)		Current(c)		Non-Current(d)
Foreign currency	$	6,860	$	88	$	—	$	38	$	—
Commodity	2,512		8		4		5		2
Embedded	1,336		16		35		2		4
Total	$	10,708	$	112	$	39	$	45	$	6

	December 31, 2011
			Derivative Assets				Derivative Liabilities
	Notional		Current(a)		Non-Current(b)		Current(c)		Non-Current(d)
Foreign currency	$	6,507	$	64	$	—	$	46	$	—
Commodity	2,566		9		—		10		5
Embedded	1,461		28		124		1		5
Total	$	10,534	$	101	$	124	$	57	$	10

__________


(a)	Recorded in Other current assets and deferred income taxes.


(b)	Recorded in Other assets and deferred income taxes.


(c)	Recorded in Accrued liabilities.


(d)	Recorded in Other liabilities and deferred income taxes.



	June 30, 2012								December 31, 2011
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Foreign currency	$	—	$	88	$	—	$	88	$	—	$	64	$	—	$	64
Commodity	—		4		8		12		—		9		—		9
Embedded	—		3		48		51		—		4		148		152
Total	$	—	$	95	$	56	$	151	$	—	$	77	$	148	$	225

Liabilities
Foreign currency	$	—	$	38	$	—	$	38	$	—	$	46	$	—	$	46
Commodity	—		7		—		7		—		5		10		15
Embedded	—		6		—		6		—		6		—		6
Total	$	—	$	51	$	—	$	51	$	—	$	57	$	10	$	67

Fair Value of Derivatives by Level of Inputs [Table Text Block]



	June 30, 2012								December 31, 2011
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Foreign currency	$	—	$	88	$	—	$	88	$	—	$	64	$	—	$	64
Commodity	—		4		8		12		—		9		—		9
Embedded	—		3		48		51		—		4		148		152
Total	$	—	$	95	$	56	$	151	$	—	$	77	$	148	$	225

Liabilities
Foreign currency	$	—	$	38	$	—	$	38	$	—	$	46	$	—	$	46
Commodity	—		7		—		7		—		5		10		15
Embedded	—		6		—		6		—		6		—		6
Total	$	—	$	51	$	—	$	51	$	—	$	57	$	10	$	67

Fair Value, Measurement Inputs, Disclosure [Table Text Block]

The following table summarizes the significant quantitative unobservable inputs and assumptions used in the fair value measurement of the derivatives at June 30, 2012:



	Valuation Technique	Significant Unobservable Input	Metric
Commodity	Discounted cash flow	Coal forward price per ton in Euro(a)	€110.44
		Heavy fuel oil forward price per ton in Euro(a)	€528.56
		Supplier nonperformance risk (average)	2.72%
Embedded	Discounted cash flow	Average Euro/TRY forward exchange rate(b)	€2.75
		Volume commitment and vehicle mix in Euro(c)	€1.0 billion

__________


(a)	Forward prices are estimated to be equivalents of the spot price as published by a governmental agency.


(b)	Calculated by adjusting market forward rates for the spread between current market and Turkish central bank spot prices.


(c)	Volume commitment is spread evenly on a monthly basis and vehicle mix is pursuant to management forecasts.

Level 3 Rollforward [Table Text Block]

The following table summarizes the activity for our derivative investments measured using Level 3 inputs (dollars in millions):



	Three Months Ended June 30, 2012									Three Months Ended June 30, 2011
	Embedded			Commodity			Total			Embedded		Commodity		Total
Balance at beginning of period	$	104		$	16		$	120		$	57	$	—	$	57
Total realized/unrealized gains (losses)(a)
Included in earnings	(43		)	(6		)	(49		)	87		—		87
Included in other comprehensive income	(6		)	(1		)	(7		)	1		—		1
Settlements	(7		)	(1		)	(8		)	—		—		—
Balance at end of period	$	48		$	8		$	56		$	145	$	—	$	145

Amount of total gains (losses) in the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at the reporting date	$	(44	)	$	(6	)	$	(50	)	$	87	$	—	$	87



	Six Months Ended June 30, 2012									Six Months Ended June 30, 2011
	Embedded			Commodity			Total			Embedded		Commodity		Total
Balance at beginning of period	$	148		$	(10	)	$	138		$	—	$	—	$	—
Total realized/unrealized gains (losses)(a)
Included in earnings	(86		)	(2		)	(88		)	140		—		140
Included in other comprehensive income	(2		)	(1		)	(3		)	5		—		5
Settlements	(12		)	(3		)	(15		)	—		—		—
Issuances	—			24			24			—		—		—
Balance at end of period	$	48		$	8		$	56		$	145	$	—	$	145

Amount of total gains (losses) in the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at the reporting date	$	(86	)	$	(2	)	$	(88	)	$	140	$	—	$	140

________


(a)	Realized and unrealized gains (losses) are recorded in Interest income and other non-operating income, net and foreign currency translation gains (losses) are recorded in Accumulated other comprehensive income.

Gain and Loss on Derivatives [Table Text Block]

Gains (Losses) on Derivatives

The following table summarizes derivative gains (losses) recorded in Interest income and other non-operating income, net (dollars in millions):



	Three Months Ended						Six Months Ended
	June 30, 2012			June 30, 2011			June 30, 2012			June 30, 2011
Foreign currency	$	24		$	35		$	8		$	25
Commodity	(20		)	(44		)	(26		)	(44		)
Embedded	(45		)	86			(88		)	145
Warrants	—			—			—			4
Total gains (losses) recorded in earnings	$	(41	)	$	77		$	(106	)	$	130

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income, and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods. Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 33

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 6

-Footnote 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19190-110258

+ Details

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details