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Hedges and Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2017
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, 2017 and 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
 
$
3,113

 
$
1,813

 
$
55

 
$
32

 
$
157

 
$
10

 
(CF/NI)
 
56
 
58
Commodity swaps/options
 
269

 
299

 
29

 
7

 
1

 
11

 
(CF)
 
36
 
36
Total derivatives accounted for as hedges
 
 
 
 
 
$
84

 
$
39

 
$
158

 
$
21

 
 
 
 
 
 
Derivatives not accounted for as hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forwards/options
 
$
3,390

 
$
3,262

 
$
58

 
$
39

 
$
50

 
$
16

 
N/A
 
33
 
35
Commodity swaps/options
 
1

 
2

 
—

 
—

 
—

 
—

 
N/A
 
5
 
2
Total derivatives not accounted for as hedges
 
 
 
 
 
58

 
39

 
50

 
16

 
 
 
 
 
 
Total derivatives
 
 
 
 
 
$
142

 
$
78

 
$
208

 
$
37

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
$
89

 
$
54

 
$
81

 
$
35

 
 
 
 
 
 
Noncurrent
 
 
 
 
 
53

 
24

 
127

 
2

 
 
 
 
 
 
Total derivatives
 
 
 
 
 
$
142

 
$
78

 
$
208

 
$
37

 
 
 
 
 
 

(1) Derivatives accounted for as hedges are considered either cash flow (CF) or net investment (NI) hedges in 2017. During 2016, foreign exchange derivatives accounted for as hedges were classified as cash flow hedges.
 
 
Notional (local)
 
Notional (USD)
 
Maturity
Instrument
 
2017
2016
 
2017
2016
 
 
Senior note - 0.625%
 
€
500

€
500

 
$
600

$
527

 
March 2020
Commercial Paper
 
€
150

€
—

 
$
180

$
—

 
January 2018
Foreign exchange forwards/options
 
MXN 7,200

MXN 0

 
$
366

$
—

 
August 2022
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, 2017 and 2016 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
 
2017
 
2016
 
2017
 
2016
 
 
Foreign exchange forwards/options
 
$
(164
)

$
27


$
(122
)

$
66

 
(a)
Commodity swaps/options
 
59


53


43


(30
)
 
(a)
Interest rate derivatives
 
—


—


(1
)

(1
)
 
(b)
Net Investment Hedges
 
 
 
 
 
 
 
 
 
 
Foreign currency
 
(49
)
 
28

 
—

 
—

 
 
 
 
$
(154
)
 
$
108

 
$
(80
)
 
$
35

 
 
 
 
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
 
$
(40
)

$
26

(1)  
Gains and losses reclassified from accumulated OCI and recognized in income are recorded in (a) cost of products sold, (b) interest expense or (c) other (income) expense.
(2) Mark to market gains and losses recognized in income are recorded in interest and sundry income (expense).