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HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table summarizes our outstanding derivative contracts and their effects in our Consolidated Condensed Balance Sheets at September 30, 2023 and December 31, 2022. Hedge assets and liabilities of our European major domestic appliance business have been classified as held for sale and are excluded from the table below.

																		Fair Value of
						Notional Amount												Hedge Assets												Hedge Liabilities																		Maximum Term (Months)
Millions of dollars						2023						2022						2023						2022						2023						2022												2023						2022
Derivatives accounted for as hedges(1)
Commodity swaps/options						$	194					$	170					$	7					$	7					$	11					$	17					(CF)						21						24
Foreign exchange forwards/options						1,012						998						11						24						24						20						(CF/NI)						101						15
Cross-currency swaps						618						618						6						5						49						42						(CF)						65						74
Total derivatives accounted for as hedges																		$	24					$	36					$	84					$	79
Derivatives not accounted for as hedges
Commodity swaps/options						$	—					$	1					$	—					$	—					$	—					$	—					N/A						0						0
Foreign exchange forwards/options						399						439						1						5						4						6						N/A						5						5
Total derivatives not accounted for as hedges																		1						5						4						6
Total derivatives																		$	25					$	41					$	88					$	85
Current																		$	22					$	40					$	37					$	41
Noncurrent																		3						1						51						44
Total derivatives																		$	25					$	41					$	88					$	85

(1)Derivatives accounted for as hedges are considered cash flow (CF) hedges.

Schedule of Effects of Derivative Instruments on Consolidated Statements of Income (Loss)

The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income (Loss) for the periods presented:

																		Three Months Ended September 30,
																		Gain (Loss) Recognized in OCI (Effective Portion ) (2)
Millions of dollars																		2023						2022
Cash flow hedges
Commodity swaps/options																		$	17					$	(20)
Foreign exchange forwards/options																		25						109
Cross-currency swaps																		32						(61)
Interest rate derivatives																		—						4
Net Investment hedges
Foreign currency																		—						(8)
																		$	74					$	24
																		Three Months Ended September 30,
						Location of Gain (Loss) Reclassified from OCI into Earnings (Effective Portion)												Gain (Loss) Reclassified from OCI into Earnings (Effective Portion)(3)
Cash Flow Hedges - Millions of dollars																		2023						2022
Commodity swaps/options						Cost of products sold												$	(5)					$	5
Foreign exchange forwards/options						Net sales												(1)						(1)
Foreign exchange forwards/options						Cost of products sold												(15)						(3)
Foreign exchange forwards/options						Interest and sundry (income) expense												2						66
Cross-currency swaps						Interest and sundry (income) expense												41						(62)
Interest rate derivatives						Interest expense												—						—
																		$	22					$	5
																		Three Months Ended September 30,
						Location of Gain (Loss) Recognized on Derivatives not Accounted for as Hedges												Gain (Loss) Recognized on Derivatives not Accounted for as Hedges
Derivatives not Accounted for as Hedges - Millions of dollars																		2023						2022
Foreign exchange forwards/options						Interest and sundry (income) expense												$	(11)					$	6

(2)Change in gain (loss) recognized in OCI (effective portion) for the three months ended September 30, 2023 is primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. The tax impact of the cash flow hedges was $(12) million and $8 million for the three months ended September 30, 2023 and 2022, respectively. The tax impact of the net investment hedges was $0 million and $2 million for the three months ended September 30, 2023 and 2022, respectively.

(3)Change in gain (loss) reclassified from OCI into earnings (effective portion) for the three months ended September 30, 2023 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year.

																		Nine Months Ended September 30,
																		Gain (Loss) Recognized in OCI (Effective Portion ) (4)
Millions of dollars																		2023						2022
Cash flow hedges
Commodity swaps/options																		$	(5)					$	(18)
Foreign exchange forwards/options																		(38)						189
Cross-currency swaps																		12						37
Interest rate derivatives																		—						56
Net Investment hedges
Foreign currency																		—						(26)
																		$	(31)					$	238
																		Nine Months Ended September 30,
						Location of Gain (Loss) Reclassified from OCI into Earnings (Effective Portion)												Gain (Loss) Reclassified from OCI into Earnings (Effective Portion)(5)
Cash Flow Hedges - Millions of dollars																		2023						2022
Commodity swaps/options						Cost of products sold												$	(10)					$	39
Foreign exchange forwards/options						Net sales												(2)						—
Foreign exchange forwards/options						Cost of products sold												(30)						(19)
Foreign exchange forwards/options						Interest and sundry (income) expense												21						162
Cross-currency swaps						Interest and sundry (income) expense												29						53
Interest rate derivatives						Interest expense												—						—
																		$	8					$	235
																		Nine Months Ended September 30,
						Location of Gain (Loss) Recognized on Derivatives not Accounted for as Hedges												Gain (Loss) Recognized on Derivatives not Accounted for as Hedges
Derivatives not Accounted for as Hedges - Millions of dollars																		2023						2022
Foreign exchange forwards/options						Interest and sundry (income) expense												$	15					$	1

(4)Change in gain (loss) recognized in OCI (effective portion) for the nine months ended September 30, 2023 is primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. The tax impact of the cash flow hedges was $10 million and $9 million for the nine months ended September 30, 2023 and 2022, respectively. The tax impact of the net investment hedges was $0 million and $6 million for the nine months ended September 30, 2023 and 2022, respectively.

(5)Change in gain (loss) reclassified from OCI into earnings (effective portion) for the nine months ended September 30, 2023 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year.

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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.

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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.

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