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Hedges and Derivative Financial Instruments (Tables) | 6 Months Ended
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Jun. 30, 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 June 30, 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 |  | $ | 2,167 |  |  | $ | 1,813 |  |  | $ | 12 |  |  | $ | 32 |  |  | $ | 54 |  |  | $ | 10 |  |  | (CF) |  | 52 |  | 58
Commodity swaps/options |  | 290 |  |  | 299 |  |  | 12 |  |  | 7 |  |  | 3 |  |  | 11 |  |  | (CF) |  | 42 |  | 36
Total derivatives accounted for as hedges |  |  |  |  |  | $ | 24 |  |  | $ | 39 |  |  | $ | 57 |  |  | $ | 21 |  |  |  |  |  |  |
Derivatives not accounted for as hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forwards/options |  | $ | 2,818 |  |  | $ | 3,262 |  |  | $ | 15 |  |  | $ | 39 |  |  | $ | 38 |  |  | $ | 16 |  |  | N/A |  | 29 |  | 35
Commodity swaps/options |  | 1 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | N/A |  | 11 |  | 2
Total derivatives not accounted for as hedges |  |  |  |  |  | 15 |  |  | 39 |  |  | 38 |  |  | 16 |  |  |  |  |  |  |
Total derivatives |  |  |  |  |  | $ | 39 |  |  | $ | 78 |  |  | $ | 95 |  |  | $ | 37 |  |  |  |  |  |  |
Current |  |  |  |  |  | $ | 34 |  |  | $ | 54 |  |  | $ | 73 |  |  | $ | 35 |  |  |  |  |  |  |
Noncurrent |  |  |  |  |  | 5 |  |  | 24 |  |  | 22 |  |  | 2 |  |  |  |  |  |  |
Total derivatives |  |  |  |  |  | $ | 39 |  |  | $ | 78 |  |  | $ | 95 |  |  | $ | 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 June 30, 2017 and December 31, 2016:
|  | Notional (Local) |  | Notional (USD) |  | Maturity
|  | 2017 |  | 2016 |  | 2017 |  | 2016 |  |
Instrument |  |  |  |  |  |  |  |  |  |
Senior note - 0.625% |  | € | 500 |  |  | € | 500 |  |  | $ | 571 |  |  | $ | 527 |  |  | March 2020
Commercial Paper |  | € | 300 |  |  | € | — |  |  | $ | 343 |  |  | $ | — |  |  | July 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 and six months ended as follows:
|  | Three Months Ended June 30, |
|  | 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 |  | $ | (50 | ) |  | $ | 10 |  |  | $ | (37 | ) |  | $ | 3 |  | (a)
Commodity swaps/options |  | 2 |  |  | 9 |  |  | 8 |  |  | (8 | ) | (a)
Interest rate derivatives |  | — |  |  | — |  |  | — |  |  | — |  | (b)
Net Investment Hedges |  |  |  |  |  |  |  |  |
Foreign currency |  | (40 | ) |  | — |  |  | — |  |  | — |  |
|  | $ | (88 | ) |  | $ | 19 |  |  | $ | (29 | ) |  | $ | (5 | ) |
|  |  |  |  |  | Three Months Ended June 30, |
|  |  |  |  |  | Gain (Loss) Recognized on Derivatives not Accounted for as Hedges (2) |
Derivatives not Accounted for as Hedges - Millions of dollars |  |  |  |  |  | 2017 |  | 2016 |
Foreign exchange forwards/options |  |  |  |  |  | $ | (41 | ) |  | $ | 9 |  |
|  | Six Months Ended June 30, |
|  | 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 |  | $ | (60 | ) |  | $ | (6 | ) |  | $ | (42 | ) |  | $ | 12 |  | (a)
Commodity swaps/options |  | 17 |  |  | 21 |  |  | 18 |  |  | (24 | ) | (a)
Interest rate derivatives |  | — |  |  | — |  |  | — |  |  | — |  | (b)
Net Investment Hedges |  |  |  |  |  |  |  |  |
Foreign currency |  | (40 | ) |  | — |  |  | — |  |  | — |  |
|  | $ | (83 | ) |  | $ | 15 |  |  | $ | (24 | ) |  | $ | (12 | ) |
|  |  |  |  |  | Six Months Ended June 30, |
|  |  |  |  |  | Gain (Loss) Recognized on Derivatives not Accounted for as Hedges (2) |
Derivatives not Accounted for as Hedges - Millions of dollars |  |  |  |  |  | 2017 |  | 2016 |
Foreign exchange forwards/options |  |  |  |  |  | $ | (79 | ) |  | $ | (34 | ) |
(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.

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- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5618551-113959 + Details
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- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=84234895&loc=d3e41641-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5624163-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=84234895&loc=d3e41678-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=84234895&loc=d3e41638-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5580258-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5579245-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5624171-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84234895&loc=SL5579240-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84234895&loc=d3e41620-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)(2)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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