Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022 and December 31, 2021 for consolidated subsidiaries:

					Fair Value
	Notional Amounts				Assets (a)				Liabilities (a)
(Millions of dollars)	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
Derivatives Not Designated as Hedging Instruments:
Currency contracts:
Balance sheet items	$	4,460	$	4,427	$	25	$	22	$	19	$	17
Forecasted transactions	415		537		7		6		11		11
Cross-currency swaps	140		148		18		21		5		4
Total	$	5,015	$	5,112	$	50	$	49	$	35	$	32
Derivatives Designated as Hedging Instruments:
Currency contracts:
Forecasted transactions	693		758		14		14		32		3
Commodity contracts	N/A		N/A		56		49		—		—
Interest rate swaps	885		1,251		7		24		19		—
Total Hedges	$	1,578	$	2,009	$	77	$	87	$	51	$	3
Total Derivatives	$	6,593	$	7,121	$	127	$	136	$	86	$	35

(a)March 31, 2022 and December 31, 2021 included current assets of $109 million and $101 million which are recorded in prepaid and other current assets; long-term assets of $18 million and $35 million which are recorded in other long-term assets; current liabilities of $40 million and $27 million which are recorded in other current liabilities; and long-term liabilities of $46 million and $8 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 March 31,
(Millions of dollars)	2022		2021
Derivatives Not Designated as Hedging Instruments
Currency contracts:
Balance sheet items
Debt-related	$	51	$	19
Other balance sheet items	(12)		4
Total	$	39	$	23

* 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.