Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Changes in Accumulated other comprehensive income (loss), net of tax

Changes in Accumulated other comprehensive income (loss), net of tax, included in the Consolidated Statement of Changes in Shareholders’ Equity, consisted of the following:

(Millions of dollars)	Foreign currency translation		Pension and other postretirement benefits		Derivative financial instruments		Available-for-sale securities		Total
Three Months Ended September 30, 2020
Balance at June 30, 2020	$	(1,672)	$	(15)	$	(169)	$	41	$	(1,815)
Other comprehensive income (loss) before reclassifications	291		(1)		3		8		301
Amounts reclassified from accumulated other comprehensive (income) loss	—		(7)		73		—		66
Other comprehensive income (loss)	291		(8)		76		8		367
Balance at September 30, 2020	$	(1,381)	$	(23)	$	(93)	$	49	$	(1,448)
Three Months Ended September 30, 2019
Balance at June 30, 2019	$	(1,426)	$	17	$	(105)	$	15	$	(1,499)
Other comprehensive income (loss) before reclassifications	(263)		—		59		4		(200)
Amounts reclassified from accumulated other comprehensive (income) loss	—		(8)		(76)		—		(84)
Other comprehensive income (loss)	(263)		(8)		(17)		4		(284)
Balance at September 30, 2019	$	(1,689)	$	9	$	(122)	$	19	$	(1,783)

(Millions of dollars)	Foreign currency translation		Pension and other postretirement benefits		Derivative financial instruments		Available-for-sale securities		Total
Nine Months Ended September 30, 2020
Balance at December 31, 2019	$	(1,487)	$	(3)	$	(97)	$	20	$	(1,567)
Other comprehensive income (loss) before reclassifications	84		1		(72)		29		42
Amounts reclassified from accumulated other comprehensive (income) loss	22		(21)		76		—		77
Other comprehensive income (loss)	106		(20)		4		29		119
Balance at September 30, 2020	$	(1,381)	$	(23)	$	(93)	$	49	$	(1,448)
Nine Months Ended September 30, 2019
Balance at December 31, 2018	$	(1,601)	$	12	$	(80)	$	(15)	$	(1,684)
Adjustment to adopt new accounting guidance related to reclassification of certain tax effects from accumulated other comprehensive income	98		19		(9)		—		108
Balance at January 1, 2019	(1,503)		31		(89)		(15)		(1,576)
Other comprehensive income (loss) before reclassifications	(186)		—		53		34		(99)
Amounts reclassified from accumulated other comprehensive (income) loss	—		(22)		(86)		—		(108)
Other comprehensive income (loss)	(186)		(22)		(33)		34		(207)
Balance at September 30, 2019	$	(1,689)	$	9	$	(122)	$	19	$	(1,783)

Reclassifications out of Accumulated other comprehensive income (loss)

The effect of the reclassifications out of Accumulated other comprehensive income (loss) on the Consolidated Statement of Results of Operations was as follows:

		Three Months Ended September 30
(Millions of dollars)	Classification of income (expense)	2020		2019
Pension and other postretirement benefits:
Amortization of prior service credit (cost)	Other income (expense)	$	9	$	10
Tax (provision) benefit		(2)		(2)
Reclassifications net of tax		$	7	$	8
Derivative financial instruments:
Foreign exchange contracts	Sales of Machinery, Energy & Transportation	$	(6)	$	3
Foreign exchange contracts	Cost of goods sold	(15)		—
Foreign exchange contracts	Other income (expense)	(63)		89
Foreign exchange contracts	Interest expense of Financial Products	8		9
Interest rate contracts	Interest expense excluding Financial Products	(1)		(2)
Interest rate contracts	Interest expense of Financial Products	(16)		(3)
Reclassifications before tax		(93)		96
Tax (provision) benefit		20		(20)
Reclassifications net of tax		$	(73)	$	76
Total reclassifications from Accumulated other comprehensive income (loss)		$	(66)	$	84

		Nine Months Ended September 30
(Millions of dollars)	Classification of income (expense)	2020		2019
Foreign currency translation
Gain (loss) on foreign currency translation	Other income (expense)	$	(22)	$	—
Reclassifications net of tax		$	(22)	$	—
Pension and other postretirement benefits:
Amortization of prior service credit (cost)	Other income (expense)	$	28	$	30
Tax (provision) benefit		(7)		(8)
Reclassifications net of tax		$	21	$	22
Derivative financial instruments:
Foreign exchange contracts	Sales of Machinery, Energy & Transportation	$	10	$	4
Foreign exchange contracts	Cost of goods sold	(58)		(4)
Foreign exchange contracts	Other income (expense)	(35)		91
Foreign exchange contracts	Interest expense of Financial Products	28		23
Interest rate contracts	Interest expense excluding Financial Products	(3)		(3)
Interest rate contracts	Interest expense of Financial Products	(40)		(2)
Reclassifications before tax		(98)		109
Tax (provision) benefit		22		(23)
Reclassifications net of tax		$	(76)	$	86
Total reclassifications from Accumulated other comprehensive income (loss)		$	(77)	$	108