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Hedges and Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2016
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 September 30, 2016 and December 31, 2015:
 

 

Fair Value of

Type 
of
Hedge(1)

 


Notional Amount

Hedge Assets

Hedge Liabilities

Maximum Term (Months)
Millions of dollars

2016

2015

2016

2015

2016

2015

 

2016

2015
Derivatives accounted for as hedges



















Foreign exchange forwards/options

$
860


$
886


$
24


$
31


$
12


$
8


(CF)

15

12
Commodity swaps/options

283


322


18


1


17


66


(CF)

31

33
Total derivatives accounted for as hedges





$
42


$
32


$
29


$
74







Derivatives not accounted for as hedges


















Foreign exchange forwards/options

$
2,140


$
2,886


$
20


$
22


$
14


$
21


N/A

10

11
Commodity swaps/options

1


7


—


—


—


1


N/A

5

6
Total derivatives not accounted for as hedges





20


22


14


22







Total derivatives





$
62


$
54


$
43


$
96




























Current





$
55


$
54


$
40


$
79







Noncurrent





7


—


3


17







Total derivatives





$
62


$
54


$
43


$
96








(1) Derivatives accounted for as hedges are considered cash flow (CF) 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 and nine months ended as follows:
 
 
Three Months Ended September 30,
 
 
 
Gain (Loss)
Recognized in OCI
(Effective Portion)
 
Gain (Loss) Reclassified from
OCI into Earnings
(Effective Portion) (1)
 
Cash Flow Hedges - Millions of dollars
 
2016
 
2015
 
2016
 
2015
 
Foreign exchange
 
$
9

 
$
41

 
$
(1
)
 
$
18

(a)
Commodity swaps/options
 
(2
)
 
(49
)
 
(6
)
 
(16
)
(a)
 
 
$
7

 
$
(8
)
 
$
(7
)
 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
 
 
 
 
 
 
 
Gain Recognized on Derivatives not
Accounted for as Hedges (2)
 
Derivatives not Accounted for as Hedges - Millions of dollars
 
 
 
 
 
2016
 
2015
 
Foreign exchange forwards/options
 
 
 
 
 
$
(9
)
 
$
(13
)
 
 
 
Nine Months Ended September 30,
 
 
 
Gain (Loss)
Recognized in OCI
(Effective Portion)
 
Gain (Loss) Reclassified from
OCI into Earnings
(Effective Portion) (1)
 
Cash Flow Hedges - Millions of dollars
 
2016
 
2015
 
2016
 
2015
 
Foreign exchange
 
$
3

 
$
51

 
$
11

 
$
42

(a)
Commodity swaps/options
 
19

 
(81
)
 
(30
)
 
(37
)
(a)
Interest rate derivatives
 
—

 
—

 
—

 
(1
)
(b)
 
 
$
22

 
$
(30
)
 
$
(19
)
 
$
4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
 
 
 
 
 
 
Gain Recognized on Derivatives not
Accounted for as Hedges (2)
 
Derivatives not Accounted for as Hedges - Millions of dollars
 
 
 
 
 
2016
 
2015
 
Foreign exchange forwards/options
 
 
 
 
 
$
(43
)
 
$
19

 

(1) Gains and losses reclassified from accumulated other comprehensive income (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).