Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of fair value of outstanding financial instruments [Table Text Block]

Financial Instruments Measured at Fair Value on a Recurring Basis—The following table summarizes financial instruments outstanding for the periods presented that are measured at fair value on a recurring basis:

	September 30, 2020				December 31, 2019
Millions of dollars	Notional Amount		Fair Value		Notional Amount		Fair Value		Balance Sheet Classification
Assets–
Derivatives designated as hedges:
Commodities	$	60	$	6	$	—	$	—	Prepaid expenses and other current assets
Foreign currency	358		44		—		27		Prepaid expenses and other current assets
Foreign currency	—		—		2,000		214		Other assets
Interest rates	—		2		—		22		Prepaid expenses and other current assets
Interest rates	263		3		1,940		41		Other assets
Derivatives not designated as hedges:
Commodities	69		30		3		—		Prepaid expenses and other current assets
Foreign currency	311		4		580		5		Prepaid expenses and other current assets
Non-derivatives:
Available-for-sale debt securities	359		361		162		162		Short-term investments
Equity securities	—		—		34		34		Short-term investments
Total	$	1,420	$	450	$	4,719	$	505
Liabilities–
Derivatives designated as hedges:
Foreign currency	$	—	$	33	$	—	$	16	Accrued liabilities
Foreign currency	2,655		225		950		53		Other liabilities
Interest rates	—		—		1,000		154		Accrued liabilities
Interest rates	1,500		655		700		77		Other liabilities
Derivatives not designated as hedges:
Commodities	125		16		224		34		Accrued liabilities
Foreign currency	400		2		200		1		Accrued liabilities
Total	$	4,680	$	931	$	3,074	$	335

All financial instruments in the table above are classified as Level 2. We present the gross assets and liabilities of our derivative financial instruments on the Consolidated Balance Sheets.

Schedule of the carrying value and estimated fair value of non-derivative financial instruments [Table Text Block]

Financial Instruments Not Measured at Fair Value on a Recurring Basis—The following table presents the carrying value and estimated fair value of our financial instruments that are not measured at fair value on a recurring basis for the periods presented. Due to the short maturity, the fair value of all non-derivative financial instruments included in Current assets and Current liabilities for which the carrying value approximates fair value are excluded from the table below. Short-term and long-term debt are recorded at amortized cost in the Consolidated Balance Sheets. The carrying and fair values of short-term and of long-term debt exclude commercial paper and other miscellaneous debt.

	September 30, 2020				December 31, 2019
Millions of dollars	Carrying Value		Fair Value		Carrying Value		Fair Value
Non-derivatives:
Liabilities:
Short-term debt	$	138	$	147	$	181	$	215
Long-term debt	13,755		15,132		11,609		12,561
Total	$	13,893	$	15,279	$	11,790	$	12,776

All financial instruments in the table above are classified as Level 2.

Summary of net investment hedges [Table Text Block]

Net Investment Hedges—The following table summarizes our net investment hedges outstanding for the periods presented:

	September 30, 2020				December 31, 2019
Millions of euro/dollars	Notional Value				Notional Value				Expiration Date
			Equivalent US$				Equivalent US$
Foreign currency	€	917	$	1,008	€	617	$	650	2021 to 2027
Foreign-currency denominated debt	750		878		750		842		2022

Summary of cash flow hedges [Table Text Block]

Cash Flow Hedges—The following table summarizes our cash flow hedges outstanding for the periods presented:

	September 30, 2020		December 31, 2019
Millions of dollars	Notional Value		Notional Value		Expiration Date
Foreign currency	$	2,005	$	2,300	2021 to 2027
Interest rates	1,500		1,500		2021 to 2024
Commodities	60		—		2021 to 2022

Summary of fair value hedges [Table Text Block]

Fair Value Hedges—The following table summarizes our fair value hedges outstanding for the periods presented:

	September 30, 2020		December 31, 2019
Millions of dollars	Notional Value		Notional Value		Expiration Date
Interest rates	$	263	$	2,140	2022 to 2026

Summary of the impact of financial instruments on earnings and other comprehensive income [Table Text Block]

Impact on Earnings and Other Comprehensive Income—The following tables summarize the pre-tax effect of derivative and non-derivative instruments recorded in Accumulated other comprehensive loss (“AOCI”), the gains (losses) reclassified from AOCI to earnings and additional gains (losses) recognized directly in earnings:

	Effects of Financial Instruments
	Three Months Ended September 30,
	Gain (Loss) Recognized in AOCI				Gain (Loss) Reclassified from AOCI to Income				Gain (Loss) Recognized in Income				Income Statement
Millions of dollars	2020		2019		2020		2019		2020		2019		Classification
Derivatives designated as hedges:
Commodities	$	—	$	7	$	—	$	(10)	$	—	$	—	Sales and other operating revenues
Commodities	8		(10)		—		8		—		—		Cost of sales
Foreign currency	(125)		141		89		(86)		8		18		Interest expense
Interest rates	102		(163)		1		(1)		1		23		Interest expense
Derivatives not designated as hedges:
Commodities	—		—		—		—		(1)		(1)		Sales and other operating revenues
Commodities	—		—		—		—		42		1		Cost of sales
Foreign currency	—		—		—		—		(1)		14		Other income, net
Non-derivatives designated as hedges:
Long-term debt	(38)		35		—		—		—		—		Other income, net
Total	$	(53)	$	10	$	90	$	(89)	$	49	$	55

	Effects of Financial Instruments
	Nine Months Ended September 30,
	Gain (Loss) Recognized in AOCI				Gain (Loss) Reclassified from AOCI to Income				Gain (Loss) Recognized in Income				Income Statement
Millions of dollars	2020		2019		2020		2019		2020		2019		Classification
Derivatives designated as hedges:
Commodities	$	—	$	(34)	$	—	$	(18)	$	—	$	—	Sales and other operating revenues
Commodities	6		28		—		12		—		—		Cost of sales
Foreign currency	(47)		192		81		(99)		38		50		Interest expense
Interest rates	(430)		(342)		3		(5)		91		96		Interest expense
Derivatives not designated as hedges:
Commodities	—		—		—		—		4		2		Sales and other operating revenues
Commodities	—		—		—		—		116		(18)		Cost of sales
Foreign currency	—		—		—		—		(11)		30		Other income, net
Non-derivatives designated as hedges:
Long-term debt	(36)		40		—		—		—		—		Other income, net
Total	$	(507)	$	(116)	$	84	$	(110)	$	238	$	160

Schedule of available-for-sale debt securities reconciliation [Table Text Block]

Investments in Available-for-Sale Debt Securities—The following table summarizes the amortized cost, gross unrealized gains and losses, and fair value of our outstanding available-for-sale debt securities:    

Millions of dollars	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt securities at September 30, 2020	$	359	$	2	$	—	$	361
Debt securities at December 31, 2019	162		—		—		162

Summary of proceeds from maturities and sales of available-for-sale debt securities [Table Text Block]

The proceeds from maturities and sales of our available-for-sale-debt securities during the three and nine months ended September 30, 2020 and 2019 are summarized in the following table:

	Three Months Ended September 30,				Nine Months Ended September 30,
Millions of dollars	2020		2019		2020		2019
Proceeds from maturities of available-for-sale debt securities	$	—	$	—	$	—	$	331
Proceeds from sales of available-for-sale debt securities	90		—		90		180

Summary of the portion of unrealized gains and losses for equity securities outstanding [Table Text Block]

The following table summarizes the portion of unrealized gains and losses for the equity securities that are outstanding for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
Millions of dollars	2020		2019		2020		2019
Net gains recognized during the period	$	—	$	—	$	—	$	6
Less: Net gains recognized during the period on securities sold	—		—		—		9
Unrealized losses recognized during the period	$	—	$	—	$	—	$	(3)