Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table is a summary of the notional amount and fair value of derivatives outstanding at September 30, 2021 and December 31, 2020 for consolidated subsidiaries:

					Fair Value
	Notional Amounts				Assets (a)				Liabilities (a)
(Millions of dollars)	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Derivatives Not Designated as Hedging Instruments:
Currency contracts:
Balance sheet items	$	4,136	$	6,470	$	19	$	72	$	29	$	48
Forecasted transactions	520		823		7		16		8		12
Cross-currency swaps	165		260		21		24		4		7
Commodity contracts	N/A		N/A		6		1		—		—
Total	$	4,821	$	7,553	$	53	$	113	$	41	$	67
Derivatives Designated as Hedging Instruments:
Currency contracts:
Forecasted transactions	322		355		7		20		2		14
Commodity contracts	N/A		N/A		56		3		—		—
Interest rate swaps	1,273		1,923		31		64		—		—
Total Hedges	$	1,595	$	2,278	$	94	$	87	$	2	$	14
Total Derivatives	$	6,416	$	9,831	$	147	$	200	$	43	$	81

(a)September 30, 2021 and December 31, 2020 included current assets of $76 million and $110 million which are recorded in prepaid and other current assets; long-term assets of $71 million and $90 million which are recorded in other long-term assets; current liabilities of $37 million and $70 million which are recorded in other current liabilities; and long-term liabilities of $6 million and $11 million which are recorded in other long-term liabilities.

Schedule of Derivative Instruments Not Designated as Hedging Instruments Table

The following table summarizes the impact of the company’s derivatives on the consolidated statements of income:

	Amount of Pre-Tax Gain (Loss) Recognized in Earnings *
	Quarter Ended September 30,				Nine Months Ended September 30,
(Millions of dollars)	2021		2020		2021		2020
Derivatives Not Designated as Hedging Instruments
Currency contracts:
Balance sheet items
Debt-related	$	(13)	$	(74)	$	16	$	(213)
Other balance sheet items	2		3		9		(48)
Total	$	(11)	$	(71)	$	25	$	(261)

* The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities. Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt items are recorded in the consolidated statements of income as interest expense-net. Other balance sheet items and anticipated net income gains (losses) are generally recorded in the consolidated statements of income as other income (expenses)-net.