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Hedges and Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2013
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Schedule of Derivative Instruments
The following table summarizes our outstanding derivative contracts and their effects on our Consolidated Condensed Balance Sheets at March 31, 2013 and December 31, 2012:
 
 
 
 
Fair Value of
 
Type 
of
Hedge (1)
 
 
Millions of dollars
 
Notional Amount
 
Hedge Assets
 
Hedge Liabilities
 
Maximum Term (Months)
 
 
2013
 
2012
 
2013
 
2012
 
2013
 
2012
 
 
 
2013
 
2012
Derivatives accounted for as hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange
 
$
861

 
$
1,101

 
$
16

 
$
8

 
$
5

 
$
12

 
(CF/FV)
 
15
 
18
Commodity
 
343

 
354

 
3

 
11

 
16

 
9

 
(CF)
 
33
 
24
Total derivatives accounted for as hedges
 
 
 
 
 
$
19

 
$
19

 
$
21

 
$
21

 
 
 
 
 
 
Derivatives not accounted for as hedges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange
 
$
1,671

 
$
1,522

 
$
23

 
$
11

 
$
19

 
$
23

 
 
 
17
 
13
Commodity
 
9

 
6

 
—

 
—

 
—

 
—

 
 
 
9
 
12
Total derivatives not accounted for as hedges:
 
 
 
 
 
23

 
11

 
19

 
23

 
 
 
 
 
 
Total derivatives
 
 
 
 
 
$
42

 
$
30

 
$
40

 
$
44

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
$
40

 
$
26

 
$
37

 
$
43

 
 
 
 
 
 
Noncurrent
 
 
 
 
 
2

 
4

 
3

 
1

 
 
 
 
 
 
Total derivatives
 
 
 
 
 
$
42

 
$
30

 
$
40

 
$
44

 
 
 
 
 
 

(1) 
Foreign exchange derivatives accounted for as hedges are classified as cash flow (CF) hedges in 2013. During 2012, foreign exchanges derivatives accounted for as hedges were classified as either cash flow (CF) or fair value (FV) hedges.
Schedule of Effects of Derivative Instruments on Consolidated Statements of Income
The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income for the three months ended March 31 as follows:
Cash Flow Hedges - Millions of dollars
 
Gain (Loss)
Recognized in OCI
(Effective Portion)
 
Gain (Loss)
Reclassified from
OCI into Earnings
(Effective Portion) (1)
 
 
 
 
2013
 
2012
 
2013
 
2012
 
 
Foreign exchange
 
$
15

 
$
(7
)
 
$
—

 
$
(1
)
 
(a)
Commodity
 
(18
)
 
20

 
(2
)
 
(2
)
 
(a)
Interest rate derivatives
 
—

 
6

 
—

 
—

 
(b)
 
 
$
(3
)
 
$
19

 
$
(2
)
 
$
(3
)
 
 
Fair Value Hedges - Millions of dollars
 
Hedged Item
 
Gain (Loss)
Recognized
on Derivatives (2)
 
Gain (Loss) Recognized
on Related
Hedged Items (2)
 
 
 
 
 
2013
 
2012
 
2013
 
2012
 
Foreign exchange
 
Non-functional
currency assets and liabilities
 
$
—

 
$
(1
)
 
$
—

 
$
1

 
Derivatives not Accounted for as Hedges - Millions of dollars
 
Gain (Loss) Recognized on Derivatives not
Accounted for as Hedges (3)
 
 
 
2013
 
2012
 
Foreign exchange
 
$
3

 
$
12

 

(1)    Gains and losses reclassified from accumulated OCI and recognized in income are recorded in (a) cost of products sold; or (b) interest expense.
(2)    Gains and losses recognized in income are recorded in interest and sundry income (expense).
(3)    Mark to market gains and losses recognized in income are recorded in interest and sundry income (expense).