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HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended
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Sep. 30, 2024
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, 2024 and December 31, 2023.
|  |  |  | Fair Value of |  |  |  |
|  | Notional Amount |  | Hedge Assets |  | Hedge Liabilities |  | Maximum Term (Months)
Millions of dollars |  | 2024 |  | 2023 |  | 2024 |  | 2023 |  | 2024 |  | 2023 |  |  | 2024 |  | 2023
Derivatives accounted for as hedges(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodity swaps/options |  | $ | 168 |  |  | $ | 193 |  |  | $ | 13 |  |  | $ | 4 |  |  | $ | 6 |  |  | $ | 9 |  |  | (CF) |  | 21 |  | 24
Foreign exchange forwards/options |  | 963 |  |  | 952 |  |  | 17 |  |  | 1 |  |  | 7 |  |  | 31 |  |  | (CF/NI) |  | 15 |  | 15
Cross-currency swaps |  | 618 |  |  | 618 |  |  | 5 |  |  | 5 |  |  | 82 |  |  | 79 |  |  | (CF) |  | 53 |  | 62
Total derivatives accounted for as hedges |  |  |  |  |  | $ | 35 |  |  | $ | 10 |  |  | $ | 95 |  |  | $ | 119 |  |  |  |  |  |  |
Derivatives not accounted for as hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange forwards/options (2) |  | 437 |  |  | 1,569 |  |  | — |  |  | 13 |  |  | 1 |  |  | 9 |  |  | N/A |  | 4 |  | 10
Total derivatives not accounted for as hedges |  |  |  |  |  | — |  |  | 13 |  |  | 1 |  |  | 9 |  |  |  |  |  |  |
Total derivatives |  |  |  |  |  | $ | 35 |  |  | $ | 23 |  |  | $ | 96 |  |  | $ | 128 |  |  |  |  |  |  |
Current |  |  |  |  |  | $ | 33 |  |  | $ | 22 |  |  | $ | 13 |  |  | $ | 46 |  |  |  |  |  |  |
Noncurrent |  |  |  |  |  | 2 |  |  | 1 |  |  | 83 |  |  | 82 |  |  |  |  |  |  |
Total derivatives |  |  |  |  |  | $ | 35 |  |  | $ | 23 |  |  | $ | 96 |  |  | $ | 128 |  |  |  |  |  |  |
(1)Derivatives accounted for as hedges are considered cash flow (CF) hedges. (2)Foreign exchange forwards/options have decreased due to intercompany loan movements related to the contribution of our European major domestic appliance business.
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 ) (3)
Millions of dollars |  |  | 2024 |  | 2023
Cash flow hedges |  |  |  |  |  |  |  |
Commodity swaps/options |  | $ | (4) |  |  | $ | 17 |
Foreign exchange forwards/options |  | (10) |  |  | 25 |
Cross-currency swaps |  | (23) |  |  | 32 |
|  | $ | (37) |  |  | $ | 74 |
|  |  |  |  |  | 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)(4)
Cash Flow Hedges - Millions of dollars |  |  | 2024 |  | 2023
Commodity swaps/options |  | Cost of products sold |  | $ | — |  |  | $ | (5) |
Foreign exchange forwards/options |  | Net sales |  | — |  |  | (1) |
Foreign exchange forwards/options |  | Cost of products sold |  | 4 |  |  | (15) |
Foreign exchange forwards/options |  | Interest and sundry (income) expense |  | 3 |  |  | 2 |
Cross-currency swaps |  | Interest and sundry (income) expense |  | (25) |  |  | 41 |
|  |  |  | $ | (18) |  |  | $ | 22 |
|  |  |  |  |  | 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 |  |  | 2024 |  | 2023
Foreign exchange forwards/options |  | Interest and sundry (income) expense |  | $ | — |  |  | $ | (11) |
(3)Change in gain (loss) recognized in OCI (effective portion) for the three months ended September 30, 2024 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 $6 million and $(13) million for the three months ended September 30, 2024 and 2023, respectively. (4)Change in gain (loss) reclassified from OCI into earnings (effective portion) for the three months ended September 30, 2024 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 ) (5)
Millions of dollars |  |  | 2024 |  | 2023
Cash flow hedges |  |  |  |  |  |  |  |
Commodity swaps/options |  | $ | 14 |  |  | $ | (5) |
Foreign exchange forwards/options |  | 34 |  |  | (38) |
Cross-currency swaps |  | (1) |  |  | 12 |
|  | $ | 47 |  |  | $ | (31) |
|  |  |  |  |  | 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)(6)
Cash Flow Hedges - Millions of dollars |  |  | 2024 |  | 2023
Commodity swaps/options |  | Cost of products sold |  | $ | — |  |  | $ | (10) |
Foreign exchange forwards/options |  | Net sales |  | 2 |  |  | (2) |
Foreign exchange forwards/options |  | Cost of products sold |  | (12) |  |  | (30) |
Foreign exchange forwards/options |  | Interest and sundry (income) expense |  | 6 |  |  | 21 |
Cross-currency swaps |  | Interest and sundry (income) expense |  | (3) |  |  | 29 |
Interest rate derivatives |  | Interest expense |  | — |  |  | — |
|  |  |  | $ | (7) |  |  | $ | 8 |
|  |  |  |  |  | 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 |  |  | 2024 |  | 2023
Foreign exchange forwards/options |  | Interest and sundry (income) expense |  | $ | 8 |  |  | $ | 15 |
(5)Change in gain (loss) recognized in OCI (effective portion) for the nine months ended September 30, 2024 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 $(17) million and $9 million for the nine months ended September 30, 2024 and 2023, respectively. (6)Change in gain (loss) reclassified from OCI into earnings (effective portion) for the nine months ended September 30, 2024 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year.

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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 -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4E -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4E Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4A + 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 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -SubTopic 10 -Topic 815 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1B Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4B Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4C + Details
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