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Hedges and Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2017
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, 2017 and December 31, 2016:
 

 

Fair Value of

Type 
of
Hedge(1)

 


Notional Amount

Hedge Assets

Hedge Liabilities

Maximum Term (Months)
Millions of dollars

2017

2016

2017

2016

2017

2016

 

2017

2016
Derivatives accounted for as hedges


















Foreign exchange forwards/options

$
2,089


$
1,813


$
29


$
32


$
19


$
10


(CF)

55

58
Commodity swaps/options

291


299


17


7


3


11


(CF)

45

36
Total derivatives accounted for as hedges





$
46


$
39


$
22


$
21







Derivatives not accounted for as hedges


















Foreign exchange forwards/options

$
2,771


$
3,262


$
13


$
39


$
41


$
16


N/A

32

35
Commodity swaps/options

1


2


—


—


—


—


N/A

10

2
Total derivatives not accounted for as hedges





13


39


41


16







Total derivatives





$
59


$
78


$
63


$
37






























Current





$
33


$
54


$
62


$
35







Noncurrent





26


24


1


2







Total derivatives





$
59


$
78


$
63


$
37








(1) Derivatives accounted for as hedges are considered cash flow (CF) hedges.
The following table summarizes our foreign currency denominated debt designated as net investment hedges at March 31, 2017 and December 31, 2016:
 
 
Notional (Local)
 
Notional (USD)
 
Maturity
 
 
2017
 
2016
 
2017
 
2016
 
 
Instrument
 
 
 
 
 
 
 
 
 
 
Senior note - 0.625%
 
€
500

 
€
500

 
$
534

 
$
527

 
March 2020
Commercial Paper
 
€
300

 
€
—

 
$
320

 
$
—

 
April 2017
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 as follows:
 
 
Three Months Ended March 31,
 
 
 
Gain (Loss)
Recognized in OCI
(Effective Portion)
 
Gain (Loss) Reclassified from
OCI into Earnings
(Effective Portion) (1)
 
Cash Flow Hedges - Millions of dollars
 
2017
 
2016
 
2017
 
2016
 
Foreign exchange forwards/options
 
$
(10
)
 
$
(16
)
 
$
(5
)
 
$
9

(a)
Commodity swaps/options
 
15

 
12

 
10

 
(16
)
(a)
 
 
$
5

 
$
(4
)
 
$
5

 
$
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
 
 
 
 
Gain Recognized on Derivatives not
Accounted for as Hedges (2)
 
Derivatives not Accounted for as Hedges - Millions of dollars
 
 
 
 
 
2017
 
2016
 
Foreign exchange forwards/options
 
 
 
 
 
$
(38
)
 
$
(43
)
 
 
 
 
 
 
 
 
 
 
 

(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.