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Hedges and Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2016
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
At December 31, 2016, our foreign currency denominated debt designated as net investment hedge consisted of:
Instrument
 
Notional (local)
 
Notional (USD)
 
Maturity
Senior note - 0.625%
 
€
500

 
$
527

 
March 2020
The following tables summarize our outstanding derivative contracts and their effects on our Consolidated Balance Sheets at December 31, 2016 and 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
 
$
1,813

 
$
886

 
$
32

 
$
31

 
$
10

 
$
8

 
(CF)
 
58
 
12
Commodity swaps/options
 
299

 
322

 
7

 
1

 
11

 
66

 
(CF)
 
36
 
33
Total derivatives accounted for as hedges
 
 
 
 
 
$
39

 
$
32

 
$
21

 
$
74

 
 
 
 
 
 
Derivatives not accounted for as hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forwards/options
 
$
3,262

 
$
2,886

 
$
39

 
$
22

 
$
16

 
$
21

 
N/A
 
35
 
11
Commodity swaps/options
 
2

 
7

 
—

 
—

 
—

 
1

 
N/A
 
2
 
6
Total derivatives not accounted for as hedges
 
 
 
 
 
39

 
22

 
16

 
22

 
 
 
 
 
 
Total derivatives
 
 
 
 
 
$
78

 
$
54

 
$
37

 
$
96

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
$
54

 
$
54

 
$
35

 
$
79

 
 
 
 
 
 
Noncurrent
 
 
 
 
 
24

 
—

 
2

 
17

 
 
 
 
 
 
Total derivatives
 
 
 
 
 
$
78

 
$
54

 
$
37

 
$
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 effects of derivative instruments on our Consolidated Statements of Income and Comprehensive Income for OCI for the years ended December 31, 2016 and 2015 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
 
2016
 
2015
 
2016
 
2015
 
 
Foreign exchange forwards/options
 
$
27


$
77


$
66


$
56

 
(a)
Commodity swaps/options
 
53


(102
)

(30
)

(57
)
 
(a)
Interest rate derivatives
 
—


—


(1
)

(1
)
 
(b)
Net Investment Hedges
 
 
 
 
 
 
 
 
 
 
Foreign currency
 
28

 
—

 
—

 
—

 
 
 
 
$
108

 
$
(25
)
 
$
35

 
$
(2
)
 
 
 
 
Gain (Loss) Recognized on Derivatives not
Accounted for as Hedges (2)
Derivatives not Accounted for as Hedges - Millions of dollars
 
2016
 
2015
Foreign exchange forwards/options
 
$
26


$
29

(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).