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Hedges and Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2014
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Schedule of Derivative Instruments
The following tables summarize our outstanding derivative contracts and their effects on our Consolidated Balance Sheets at December 31, 2014 and 2013:
 
 
 
 
Fair Value of
 
Type of
Hedge (1)
 
 
 
 
Notional Amount
 
Hedge Assets
 
Hedge Liabilities
 
Maximum Term (Months)
Millions of dollars
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
 
2014
 
2013
Derivatives accounted for as hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forwards/options
 
$
874

 
$
744

 
$
27

 
$
16

 
$
8

 
$
10

 
(CF)
 
17
 
14
Commodity swaps/options
 
375

 
363

 
4

 
8

 
29

 
13

 
(CF)
 
36
 
36
Total derivatives accounted for as hedges
 
 
 
 
 
$
31

 
$
24

 
$
37

 
$
23

 
 
 
 
 
 
Derivatives not accounted for as hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forwards/options
 
$
2,358

 
$
1,274

 
$
34

 
$
6

 
$
29

 
$
32

 
N/A
 
10
 
12
Commodity swaps/options
 
8

 
1

 
—

 
—

 
—

 
—

 
N/A
 
4
 
4
Total derivatives not accounted for as hedges
 
 
 
 
 
34

 
6

 
29

 
32

 
 
 
 
 
 
Total derivatives
 
 
 
 
 
$
65

 
$
30

 
$
66

 
$
55

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
$
64

 
$
28

 
$
59

 
$
54

 
 
 
 
 
 
Noncurrent
 
 
 
 
 
1

 
2

 
7

 
1

 
 
 
 
 
 
Total derivatives
 
 
 
 
 
$
65

 
$
30

 
$
66

 
$
55

 
 
 
 
 
 
(1)Derivatives accounted for as hedges are considered cash flow (CF) hedges
Schedule of Effects of Derivative Instruments on Consolidated Statements of Income
The pre-tax effects of derivative instruments on our Consolidated Statements of Income and Comprehensive Income for OCI in table for the years ended December 31, 2014 and 2013 are as follows:
 
 
Gain (Loss)
Recognized in OCI
(Effective Portion)
 
Gain (Loss)
Reclassified from
OCI into Income
(Effective Portion) (1)
 
 
Cash Flow Hedges - Millions of dollars
 
2014
 
2013
 
2014
 
2013
 
 
Foreign exchange forwards/options
 
$
40


$
20


$
22


$
9

 
(a)
Commodity swaps/options
 
(30
)

(29
)

(10
)

(19
)
 
(a)
Interest rate derivatives
 
—


—


(1
)

(1
)
 
(b)
 
 
$
10

 
$
(9
)
 
$
11

 
$
(11
)
 
 
 
 
Gain (Loss) Recognized on Derivatives not
Accounted for as Hedges (2)
Derivatives not Accounted for as Hedges - Millions of dollars
 
2014
 
2013
Foreign exchange forwards/options
 
$
26


$
(49
)
(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)    Mark to market gains and losses recognized in income are recorded in interest and sundry income (expense).