XML 55 R31.htm IDEA: XBRL DOCUMENT v3.10.0.1
Hedges and Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [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, 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

$
3,135


$
3,113


$
57


$
55


$
83


$
157


(CF/NI)

50

56
Commodity swaps/options

274


269


12


29


9


1


(CF)

30

36
Total derivatives accounted for as hedges





$
69


$
84


$
92


$
158







Derivatives not accounted for as hedges


















Foreign exchange forwards/options

$
3,810


$
3,390


$
33


$
58


$
55


$
50


N/A

27

33
Commodity swaps/options

1


1


—


—


—


—


N/A

0

5
Total derivatives not accounted for as hedges





33


58


55


50







Total derivatives





$
102


$
142


$
147


$
208






























Current





$
72


$
89


$
66


$
81







Noncurrent





30


53


81


127







Total derivatives





$
102


$
142


$
147


$
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 June 30, 2018 and December 31, 2017:
 
 
Notional (Local)
 
Notional (USD)
 
Current Maturity
Instrument
 
2018
 
2017
 
2018
 
2017
 
Senior note - 0.625%
 
€
500

 
€
500

 
$
583

 
$
600

 
March 2020
Commercial Paper
 
€
150

 
€
150

 
$
175

 
$
180

 
July 2018
Foreign exchange forwards/options
 
MXN 7,200

 
MXN 7,200

 
$
366

 
$
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 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
 
2018
 
2017
 
2018
 
2017
 
Foreign exchange forwards/options
 
$
76

 
$
(50
)
 
$
44

 
$
(37
)
(a)
Commodity swaps/options
 
(5
)
 
2

 
10

 
8

(a)
Interest rate derivatives
 
—

 
—

 
(1
)
 
—

(b)
 
 
 
 
 
 
 
 
 
 
Net Investment Hedges
 
 
 
 
 
 
 
 
 
Foreign currency
 
57

 
(40
)
 
—

 
—

 
 
 
$
128


$
(88
)
 
$
53

 
$
(29
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
2018
 
2017
 
Foreign exchange forwards/options
 
 
 
 
 
$
123

 
$
(41
)
 
 
 
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
 
2018
 
2017
 
2018
 
2017
 
Foreign exchange
 
$
76

 
$
(60
)
 
$
42

 
$
(42
)
(a)
Commodity swaps/options
 
(15
)
 
17

 
23

 
18

(a)
Interest rate derivatives
 

 
—

 
(1
)
 
—

(b)
 
 
 
 
 
 
 
 
 
 
Net Investment Hedges
 
 
 
 
 
 
 
 
 
Foreign currency
 
5

 
(40
)
 
—

 
—

 
 
 
$
66

 
$
(83
)
 
$
64

 
$
(24
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
2018
 
2017
 
Foreign exchange forwards/options
 
 
 
 
 
$
63

 
$
(79
)
 

(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.