FORM 10-Q

above. The amounts exchanged are calculated by reference to the notional amounts and by other terms of the derivatives, such as interest rates, foreign
currency exchange rates or other financial indices. The Company does not view the fair values of its derivatives in isolation, but rather in relation to the fair
values or cash flows of the underlying hedged transactions or other exposures. Virtually all of our derivatives are straightforward over-the-counter instruments
with liquid markets.
The following table presents the fair values of the Company's derivative instruments that were designated and qualified as part of a hedging relationship (in
millions):
Derivatives Designated as
Hedging Instruments
Fair Value 1,2
Balance Sheet Location1 March 29,
2013 December 31, 2012
Assets
Foreign currency contracts Prepaid expenses and other assets $ 248 $ 149
Foreign currency contracts Other assets 56 —
Commodity contracts Prepaid expenses and other assets 1 —
Interest rate contracts Prepaid expenses and other assets 10 7
Interest rate contracts Other assets 313 335
Total assets $ 628 $ 491
Liabilities
Foreign currency contracts Accounts payable and accrued expenses $ 33 $ 55
Foreign currency contracts Other liabilities 14 —
Commodity contracts Accounts payable and accrued expenses — 1
Interest rate contracts Other liabilities 7 6
Total liabilities $ 54 $ 62
1 All of the Company's derivative instruments are carried at fair value in our condensed consolidated balance sheets after considering the impact of legally enforceable master
netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be
disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 14 for the net presentation of the Company's derivative instruments.
2 Refer to Note 14 for additional information related to the estimated fair value.
The following table presents the fair values of the Company's derivative instruments that were not designated as hedging instruments (in millions):
Derivatives Not Designated as
Hedging Instruments
Fair Value 1,2
Balance Sheet Location1 March 29,
2013 December 31, 2012
Assets
Foreign currency contracts Prepaid expenses and other assets $ 36 $ 19
Foreign currency contracts Other assets 117 42
Commodity contracts Prepaid expenses and other assets 71 72
Other derivative instruments Prepaid expenses and other assets 10 6
Total assets $ 234 $ 139
Liabilities
Foreign currency contracts Accounts payable and accrued expenses $ 20 $ 24
Foreign currency contracts Other liabilities 20 1
Commodity contracts Accounts payable and accrued expenses 50 43
Commodity contracts Other liabilities 2 1
Other derivative instruments Accounts payable and accrued expenses — 2
Total liabilities $ 92 $ 71
1 All of the Company's derivative instruments are carried at fair value in our condensed consolidated balance sheets after considering the impact of legally enforceable master
netting agreements and cash collateral held or placed with the same counterparties, as applicable. Current disclosure requirements mandate that derivatives must also be
disclosed without reflecting the impact of master netting agreements and cash collateral. Refer to Note 14 for the net presentation of the Company's derivative instruments.
2 Refer to Note 14 for additional information related to the estimated fair value.
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