FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2019

Investments, All Other Investments [Abstract]

The following table summarizes the fair value of financial instruments at December 31, 2019 and 2018:



Fair Value of Financial Instruments at Dec 31 ¹	2019											2018
In millions	Cost			Gain		Loss			Fair Value			Cost			Gain		Loss			Fair Value
Cash equivalents:
Held to maturity securities ²	$	220		$	—	$	—		$	220		$	410		$	—	$	—		$	410
Money market funds	408			—		—			408			156			—		—			156
Total cash equivalents	$	628		$	—	$	—		$	628		$	566		$	—	$	—		$	566
Marketable securities	$	21		$	—	$	—		$	21		$	100		$	—	$	—		$	100
Other investments:
Debt securities:
Government debt ³	$	533		$	33	$	(11	)	$	555		$	714		$	9	$	(23	)	$	700
Corporate bonds	944			80		(10		)	1,014			1,026			20		(63		)	983
Total debt securities	$	1,477		$	113	$	(21	)	$	1,569		$	1,740		$	29	$	(86	)	$	1,683
Equity securities⁴	10			6		(1		)	15			16			1		(1		)	16
Total other investments	$	1,487		$	119	$	(22	)	$	1,584		$	1,756		$	30	$	(87	)	$	1,699
Total cash equivalents, marketable securities and other investments	$	2,136		$	119	$	(22	)	$	2,233		$	2,422		$	30	$	(87	)	$	2,365
Long-term debt including debt due within one year ⁵	$	(16,410	)	$	7	$	(2,258	)	$	(18,661	)	$	(19,591	)	$	351	$	(972	)	$	(20,212	)
Derivatives relating to:
Interest rates ⁶	$	—		$	8	$	(283	)	$	(275	)	$	—		$	—	$	(64	)	$	(64	)
Foreign currency	—			101		(21		)	80			—			120		(43		)	77
Commodities ⁶	—			59		(115		)	(56		)	—			91		(178		)	(87		)
Total derivatives	$	—		$	168	$	(419	)	$	(251	)	$	—		$	211	$	(285	)	$	(74	)


1.	Prior period amounts were updated to conform with the current year presentation.


2.	The Company had held-to-maturity securities (primarily treasury bills and time deposits) classified as cash equivalents.


3.	U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities’ obligations.


4.	Equity securities with a readily determinable fair value.


5.	Cost includes fair value hedge adjustment gains of $1 million at December 31, 2019 and losses of $18 million at December 31, 2018 on $3,490 million of debt at December 31, 2019 and $2,290 million of debt at December 31, 2018.

Presented net of cash collateral

Investing Results

The following table provides the investing results from available-for-sale securities for the years ended December 31, 2019, 2018 and 2017.



Investing Results
In millions	2019		2018		2017
Proceeds from sales of available-for-sale securities	$	1,138	$	1,053	$	245
Gross realized gains	$	51	$	21	$	5
Gross realized losses	$	18	$	30	$	—

Contractual Maturities of Debt Securities

The following table summarizes the contractual maturities of the Company’s investments in debt securities:



Contractual Maturities of Debt Securities at Dec 31, 2019 ¹	Amortized Cost		Fair Value
In millions	Amortized Cost		Fair Value
Within one year	$	36	$	39
One to five years	391		406
Six to ten years	534		554
After ten years	516		570
Total	$	1,477	$	1,569

1. Includes marketable securities with maturities of less than one year.

Fair Value and Gross Unrealized Losses of Investments Temporarily Impaired

The following table provides the fair value and gross unrealized losses of the Company’s investments in debt securities that were deemed to be temporarily impaired at December 31, 2019 and 2018, aggregated by investment category:



Temporarily Impaired Debt Securities at Dec 31	Less than 12 months					12 months or more					Total
Temporarily Impaired Debt Securities at Dec 31	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
In millions	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
2019
Government debt ¹	$	55	$	(3	)	$	23	$	(8	)	$	78	$	(11	)
Corporate bonds	79		(3		)	52		(7		)	131		(10		)
Total temporarily impaired debt securities	$	134	$	(6	)	$	75	$	(15	)	$	209	$	(21	)
2018
Government debt ¹	$	287	$	(17	)	$	187	$	(6	)	$	474	$	(23	)
Corporate bonds	724		(58		)	64		(5		)	788		(63		)
Total temporarily impaired debt securities	$	1,011	$	(75	)	$	251	$	(11	)	$	1,262	$	(86	)

U.S. Treasury obligations, U.S. agency obligations, agency mortgage-backed securities and other municipalities' obligations.

Schedule of Notional Amounts of Outstanding Derivative Positions

The notional amounts of the Company's derivative instruments presented on a net basis at December 31, 2019 and 2018, were as follows:



Notional Amounts - Net	Dec 31, 2019		Dec 31, 2018
In millions	Dec 31, 2019		Dec 31, 2018
Derivatives designated as hedging instruments:
Interest rate contracts	$	922	$	2,049
Foreign currency contracts	$	6,253	$	4,457
Derivatives not designated as hedging instruments:
Interest rate contracts	$	145	$	5
Foreign currency contracts	$	5,567	$	19,285

The notional amounts of the Company's commodity derivatives at December 31, 2019 and 2018, were as follows:



Commodity Notionals - Net	Dec 31, 2019	Dec 31, 2018	Notional Volume Unit
	Dec 31, 2019	Dec 31, 2018	Notional Volume Unit
Derivatives designated as hedging instruments:
Hydrocarbon derivatives	6.1	39.9	million barrels of oil equivalent
Derivatives not designated as hedging instruments:
Hydrocarbon derivatives	0.1	1.2	million barrels of oil equivalent
Power derivatives	87.5	73.9	thousands of megawatt hours

Schedule Fair Values of Derivative Instruments

The following tables provide the fair value and gross balance sheet classification of derivative instruments at December 31, 2019 and 2018:



Fair Value of Derivative Instruments		Dec 31, 2019
In millions	Balance Sheet Classification	Gross		Counterparty and Cash Collateral Netting ¹			Net Amounts Included in the Consolidated Balance Sheets
Asset derivatives:
Derivatives designated as hedging instruments:
Interest rate contracts	Other current assets	$	21	$	(13	)	$	8
Foreign currency contracts	Other current assets	105		(36		)	69
Commodity contracts	Other current assets	44		(25		)	19
Commodity contracts	Deferred charges and other assets	28		(3		)	25
Total		$	198	$	(77	)	$	121
Derivatives not designated as hedging instruments:
Interest rate contracts	Other current assets	$	14	$	(14	)	$	—
Interest rate contracts	Deferred charges and other assets	—		—			—
Foreign currency contracts	Other current assets	44		(12		)	32
Commodity contracts	Other current assets	18		(3		)	15
Commodity contracts	Deferred charges and other assets	—		—			—
Total		$	76	$	(29	)	$	47
Total asset derivatives		$	274	$	(106	)	$	168

Liability derivatives:
Derivatives designated as hedging instruments:
Interest rate contracts	Accrued and other current liabilities	$	23	$	(13	)	$	10
Interest rate contracts	Other noncurrent obligations	1		—			1
Foreign currency contracts	Accrued and other current liabilities	46		(36		)	10
Commodity contracts	Accrued and other current liabilities	95		(29		)	66
Commodity contracts	Other noncurrent obligations	38		(4		)	34
Total		$	203	$	(82	)	$	121
Derivatives not designated as hedging instruments:
Interest rate contracts	Accrued and other current liabilities	$	136	$	(14	)	$	122
Interest rate contracts	Other noncurrent obligations	150		—			150
Foreign currency contracts	Accrued and other current liabilities	23		(12		)	11
Commodity contracts	Accrued and other current liabilities	17		(3		)	14
Commodity contracts	Other noncurrent obligations	1		—			1
Total		$	327	$	(29	)	$	298
Total liability derivatives		$	530	$	(111	)	$	419


1.	Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between the Company and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty.



Fair Value of Derivative Instruments		Dec 31, 2018
In millions	Balance Sheet Classification	Gross		Counterparty and Cash Collateral Netting ¹			Net Amounts Included in the Consolidated Balance Sheets
Asset derivatives:
Derivatives designated as hedging instruments:
Foreign currency contracts	Other current assets	$	98	$	(42	)	$	56
Commodity contracts	Other current assets	47		(13		)	34
Commodity contracts	Deferred charges and other assets	18		(3		)	15
Total		$	163	$	(58	)	$	105
Derivatives not designated as hedging instruments:
Foreign currency contracts	Other current assets	$	128	$	(64	)	$	64
Commodity contracts	Other current assets	41		(1		)	40
Commodity contracts	Deferred charges and other assets	4		(2		)	2
Total		$	173	$	(67	)	$	106
Total asset derivatives		$	336	$	(125	)	$	211

Liability derivatives:
Derivatives designated as hedging instruments:
Interest rate contracts	Other noncurrent obligations	$	64	$	—		$	64
Foreign currency contracts	Accrued and other current liabilities	46		(42		)	4
Commodity contracts	Accrued and other current liabilities	111		(18		)	93
Commodity contracts	Other noncurrent obligations	86		(9		)	77
Total		$	307	$	(69	)	$	238
Derivatives not designated as hedging instruments:
Foreign currency contracts	Accrued and other current liabilities	$	103	$	(64	)	$	39
Commodity contracts	Accrued and other current liabilities	7		(4		)	3
Commodity contracts	Other noncurrent obligations	8		(3		)	5
Total		$	118	$	(71	)	$	47
Total liability derivatives		$	425	$	(140	)	$	285


1.	Counterparty and cash collateral amounts represent the estimated net settlement amount when applying netting and set-off rights included in master netting arrangements between the Company and its counterparties and the payable or receivable for cash collateral held or placed with the same counterparty.

Derivative Instruments, Gain (Loss)



Effect of Derivative Instruments	Amount of gain (loss) recognized in OCI ¹									Amount of gain (loss) recognized in income ²
In millions	2019			2018			2017			2019			2018			2017			Income Statement Classification
Derivatives designated as hedging instruments:
Fair value hedges:
Interest rate contracts	$	—		$	—		$	—		$	17		$	—		$	(2	)	Interest expense and amortization of debt discount ³
Excluded components ⁴	(3		)	—			—			—			—			—
Cash flow hedges:
Interest rate contracts	(316		)	26			2			1			(3		)	4			Interest expense and amortization of debt discount
Foreign currency contracts	16			19			(30		)	28			(18		)	7			Cost of sales
Foreign currency contracts	10			(3		)	(5		)	8			—			(17		)	Sundry income (expense) - net
Commodity contracts	(6		)	(46		)	37			(81		)	(69		)	10			Cost of sales
Net investment hedges:
Foreign currency contracts	(52		)	116			(73		)	—			—			—
Excluded components ⁴	162			—			—			99			—			—			Sundry income (expense) - net
Total derivatives designated as hedging instruments	$	(189	)	$	112		$	(69	)	$	72		$	(90	)	$	2
Derivatives not designated as hedging instruments:
Interest rate contracts	$	—		$	—		$	—		$	(4	)	$	—		$	—		Interest expense and amortization of debt discount
Foreign currency contracts	—			—			—			45			101			(289		)	Sundry income (expense) - net
Commodity contracts	—			—			—			(28		)	(12		)	(9		)	Cost of sales
Total derivatives not designated as hedging instruments	$	—		$	—		$	—		$	13		$	89		$	(298	)
Total derivatives	$	(189	)	$	112		$	(69	)	$	85		$	(1	)	$	(296	)


1.	OCI is defined as other comprehensive income (loss).


2.	Pretax amounts.


3.	Gain (loss) recognized in income of derivatives is offset by gain (loss) recognized in income of the hedged item.

The excluded components are related to the time value of the derivatives designated as hedges.

Schedule of Hedging Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized Over Next Fiscal Year [Table Text Block]

The following table provides the net after-tax amounts to be reclassified from AOCL to income within the next 12 months:



Expected Reclassifications from AOCL within the next 12 months	Dec 31, 2019
	Dec 31, 2019
Cash flow hedges
Interest rate contracts	$	2
Commodity contracts	$	(23	)
Foreign currency contracts	$	5
Net investment hedges
Excluded components	$	26