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Hedges and Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2018
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, 2018 and December 31, 2017:
 

 

Fair Value of

Type 
of
Hedge(1)

 


Notional Amount

Hedge Assets

Hedge Liabilities

Maximum Term (Months)
Millions of dollars

2018

2017

2018

2017

2018

2017


2018

2017
Derivatives accounted for as hedges



















Foreign exchange forwards/options

$
3,179


$
3,113


$
13


$
55


$
145


$
157


(CF/NI)

53

56
Commodity swaps/options

271


269


14


29


4


1


(CF)

33

36
Total derivatives accounted for as hedges





$
27


$
84


$
149


$
158







Derivatives not accounted for as hedges


















Foreign exchange forwards/options

$
3,255


$
3,390


$
20


$
58


$
31


$
50


N/A

30

33
Commodity swaps/options

1


1


—


—


—


—


N/A

2

5
Total derivatives not accounted for as hedges





20


58


31


50







Total derivatives





$
47


$
142


$
180


$
208






























Current





$
41


$
89


$
55


$
81







Noncurrent





6


53


125


127







Total derivatives





$
47


$
142


$
180


$
208








(1) Derivatives accounted for as hedges are considered either cash flow (CF) or net investment (NI) hedges
The following table summarizes our foreign currency denominated debt and foreign exchange forwards/options designated as net investment hedges at March 31, 2018 and December 31, 2017:
 
 
Notional (Local)
 
Notional (USD)
 
Current Maturity
Instrument
 
2018
 
2017
 
2018
 
2017
 
Senior note - 0.625%
 
€
500

 
€
500

 
$
616

 
$
600

 
March 2020
Commercial Paper
 
€
150

 
€
150

 
$
185

 
$
180

 
April 2018
Foreign exchange forwards/options
 
MXN 7,200

 
MXN 7,200

 
$
394

 
$
366

 
August 2022
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
 
2018
 
2017
 
2018
 
2017
 
Foreign exchange forwards/options
 
$
—

 
$
(10
)
 
$
(2
)
 
$
(5
)
(a)
Commodity swaps/options
 
(10
)
 
15

 
13

 
10

(a)
Interest rate derivatives
 
—

 
—

 
—

 
—

(b)
 
 
 
 
 
 
 
 
 
 
Net Investment Hedges
 
 
 
 
 
 
 
 
 
Foreign currency
 
(52
)
 
—

 
—

 
—

 
 
 
$
(62
)

$
5

 
$
11

 
$
5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
 
 
 
Gain (Loss) Recognized on Derivatives not
Accounted for as Hedges (2)
 
Derivatives not Accounted for as Hedges - Millions of dollars
 
 
 
 
 
2018
 
2017
 
Foreign exchange forwards/options
 
 
 
 
 
$
(60
)
 
$
(38
)
 
 
 
 
 
 
 
 
 
 
 

(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.