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Hedges and Derivative Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2018
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, 2018 and 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 |  | $ | 3,126 |  |  | $ | 3,113 |  |  | $ | 49 |  |  | $ | 55 |  |  | $ | 48 |  |  | $ | 157 |  |  | (CF/NI) |  | 44 |  | 56
Commodity swaps/options |  | 216 |  |  | 269 |  |  | 1 |  |  | 29 |  |  | 27 |  |  | 1 |  |  | (CF) |  | 30 |  | 36
Total derivatives accounted for as hedges |  |  |  |  |  | $ | 50 |  |  | $ | 84 |  |  | $ | 75 |  |  | $ | 158 |  |  |  |  |  |  |
Derivatives not accounted for as hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forwards/options |  | $ | 4,382 |  |  | $ | 3,390 |  |  | $ | 27 |  |  | $ | 58 |  |  | $ | 69 |  |  | $ | 50 |  |  | N/A |  | 21 |  | 33
Commodity swaps/options |  | 3 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | N/A |  | 0 |  | 5
Total derivatives not accounted for as hedges |  |  |  |  |  | 27 |  |  | 58 |  |  | 69 |  |  | 50 |  |  |  |  |  |  |
Total derivatives |  |  |  |  |  | $ | 77 |  |  | $ | 142 |  |  | $ | 144 |  |  | $ | 208 |  |  |  |  |  |  |
Current |  |  |  |  |  | $ | 60 |  |  | $ | 89 |  |  | $ | 95 |  |  | $ | 81 |  |  |  |  |  |  |
Noncurrent |  |  |  |  |  | 17 |  |  | 53 |  |  | 49 |  |  | 127 |  |  |  |  |  |  |
Total derivatives |  |  |  |  |  | $ | 77 |  |  | $ | 142 |  |  | $ | 144 |  |  | $ | 208 |  |  |  |  |  |  |
(1) Derivatives accounted for as hedges are considered either cash flow (CF) or net investment (NI) hedges.
|  | Notional (local) |  | Notional (USD) |  | Current Maturity
Instrument |  | 2018 | 2017 |  | 2018 | 2017 |  |
Senior note - 0.625% |  | € | 500 |  | € | 500 |  |  | $ | 573 |  | $ | 600 |  |  | March 2020
Commercial Paper |  | € | — |  | € | 150 |  |  | $ | — |  | $ | 180 |  |  |
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 effects of derivative instruments on our Consolidated Statements of Income (Loss) and Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2018 and 2017 are as follows:
|  | Gain (Loss) Recognized in OCI (Effective Portion) (1) |  | Gain (Loss) Reclassified from OCI into Income (Effective Portion) (2) |  |
Cash Flow Hedges - Millions of dollars |  | 2018 |  | 2017 |  | 2018 |  | 2017 |  |
Foreign exchange forwards/options |  | $ | 131 |  |  | $ | (178 | ) |  | $ | 86 |  |  | $ | (122 | ) |  | (a)
Commodity swaps/options |  | (51 | ) |  | 64 |  |  | 22 |  |  | 43 |  |  | (a)
Interest rate derivatives |  | (3 | ) |  | — |  |  | (1 | ) |  | (1 | ) |  | (b)
Net Investment Hedges |  |  |  |  |  |  |  |  |  |
Foreign currency |  | 23 |  |  | (82 | ) |  | — |  |  | — |  |  |
|  | $ | 100 |  |  | $ | (196 | ) |  | $ | 107 |  |  | $ | (80 | ) |  |
|  | Gain (Loss) Recognized on Derivatives not Accounted for as Hedges (3)
Derivatives not Accounted for as Hedges - Millions of dollars |  | 2018 |  | 2017
Foreign exchange forwards/options |  | $ | 99 |  |  | $ | (40 | )
(1) The tax impact of the cash flow hedges was $7 million and $9 million in 2018 and 2017, respectively. The tax impact of the net investment hedges was $15 million and $33 million in 2018 and 2017, respectively.
(2) | Gains and losses reclassified from accumulated OCI and recognized in income are recorded in (a) cost of products sold, (b) interest expense or (c) interest and sundry (income) expense.
(3) 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959 + 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5580258-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41620-113959 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41638-113959 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41678-113959 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41641-113959 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -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 Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959 + Details
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