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Financial Instruments (Notes)
 3 Months Ended
Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Financial Instruments FINANCIAL INSTRUMENTS
A summary of the Company's financial instruments, risk management policies, derivative instruments and hedging activities can be found in Note 22 to the Consolidated Financial Statements included in the 2020 10-K.

The following table summarizes the fair value of financial instruments at March 31, 2021 and December 31, 2020:

Fair Value of Financial InstrumentsMar 31, 2021Dec 31, 2020
In millionsCostGainLossFair ValueCostGainLossFair Value
Cash equivalents:
Held-to-maturity securities 1
$405 $— $— $405 $980 $— $— $980 
Money market funds648 — — 648 484 — — 484 
Total cash equivalents$1,053 $— $— $1,053 $1,464 $— $— $1,464 
Marketable securities 2
$72 $— $— $72 $45 $— $— $45 
Other investments:
Debt securities:
Government debt 3
$570 $17 $(29)$558 $673 $35 $(10)$698 
Corporate bonds852 92 (7)937 822 119 (5)936 
Total debt securities$1,422 $109 $(36)$1,495 $1,495 $154 $(15)$1,634 
Equity securities 4
8 26 — 34 6 34 — 40 
Total other investments
$1,430 $135 $(36)$1,529 $1,501 $188 $(15)$1,674 
Total cash equivalents, marketable securities and other investments
$2,555 $135 $(36)$2,654 $3,010 $188 $(15)$3,183 
Long-term debt including debt due within one year 5
$(16,692)$58 $(2,685)$(19,319)$(16,951)$6 $(3,659)$(20,604)
Derivatives relating to:
Interest rates 6
$— $— $(141)$(141)$— $41 $(182)$(141)
Foreign currency— 23 (94)(71)— 69 (84)(15)
Commodities 6
— 75 (67)8 — 63 (84)(21)
Total derivatives$— $98 $(302)$(204)$— $173 $(350)$(177)
1.The Company's held-to-maturity securities primarily included treasury bills and time deposits.
2.The Company’s investments in marketable securities are included in “Other current assets” in the consolidated balance sheets.
3.U.S. Treasury obligations, U.S. agency obligations, U.S. 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 $43 million at March 31, 2021 and $69 million at December 31, 2020 on $3,314 million of debt at March 31, 2021 and December 31, 2020.
6.Presented net of cash collateral where master netting arrangements allow.

Cost approximates fair value for all other financial instruments.

Debt Securities
The Company's investments in debt securities are primarily classified as available-for-sale. The following table provides the investing results from available-for-sale securities for the three months ended March 31, 2021 and 2020:

Investing ResultsThree Months Ended
In millionsMar 31, 2021Mar 31, 2020
Proceeds from sales of available-for-sale securities$187 $248 
Gross realized gains$13 $16 
Gross realized losses $(5)$(7)
The following table summarizes the contractual maturities of the Company's investments in debt securities:

Contractual Maturities of Debt Securities at Mar 31, 2021 1
 CostFair Value
In millions
Within one year$31 $31 
One to five years372 413 
Six to ten years597 609 
After ten years422 442 
Total$1,422 $1,495 
1.Includes marketable securities with maturities of less than one year.

Equity Securities
There were no material adjustments to the carrying value of the not readily determinable investments for impairment or observable price changes for the three months ended March 31, 2021. There was no net unrealized gain or loss recognized in earnings on equity securities for the three months ended March 31, 2021 ($1 million net unrealized loss for the three months ended March 31, 2020).

Investments in Equity SecuritiesMar 31, 2021Dec 31, 2020
In millions
Readily determinable fair value$34 $40 
Not readily determinable fair value$214 $215 

Derivative Instruments
The notional amounts of the Company's derivative instruments presented on a net basis at March 31, 2021 and December 31, 2020 were as follows:

Notional Amounts - NetMar 31, 2021Dec 31, 2020
In millions
Derivatives designated as hedging instruments:
Interest rate contracts$261 $612 
Foreign currency contracts$2,222 $3,784 
Derivatives not designated as hedging instruments:
Interest rate contracts$89 $94 
Foreign currency contracts$11,784 $9,187 

The notional amounts of the Company's commodity derivatives presented on a net basis at March 31, 2021 and December 31, 2020 were as follows:

Commodity Notionals - NetMar 31, 2021Dec 31, 2020Notional Volume Unit
Derivatives designated as hedging instruments:
Hydrocarbon derivatives4.9 10.9 million barrels of oil equivalent
Derivatives not designated as hedging instruments:
Hydrocarbon derivatives7.9 — million barrels of oil equivalent

Maturity Dates of Derivatives Designated as Hedging InstrumentsYear
Interest rate contracts2022
Foreign currency contracts2022
Commodity contracts2023
The following tables provide the fair value and balance sheet classification of derivative instruments at March 31, 2021 and December 31, 2020:

Fair Value of Derivative InstrumentsMar 31, 2021
In millionsBalance Sheet ClassificationGross
Counterparty and Cash Collateral Netting 1
Net Amounts Included in the Consolidated Balance Sheets
Asset derivatives
Derivatives designated as hedging instruments:
Interest rate contractsDeferred charges and other assets$22 $(22)$— 
Foreign currency contractsOther current assets54 (36)18 
Commodity contractsOther current assets218 (172)46 
Commodity contractsDeferred charges and other assets68 (43)25 
Total $362 $(273)$89 
Derivatives not designated as hedging instruments:
Foreign currency contracts Other current assets$17 $(12)$5 
Commodity contractsOther current assets7 (3)4 
Total $24 $(15)$9 
Total asset derivatives  $386 $(288)$98 
Liability derivatives
Derivatives designated as hedging instruments:
Interest rate contractsOther noncurrent obligations$22 $(22)$— 
Foreign currency contractsAccrued and other current liabilities44 (36)8 
Commodity contractsAccrued and other current liabilities214 (178)36 
Commodity contractsOther noncurrent obligations61 (45)16 
Total $341 $(281)$60 
Derivatives not designated as hedging instruments:
Interest rate contractsOther noncurrent obligations$141 $— $141 
Foreign currency contractsAccrued and other current liabilities98 (12)86 
Commodity contractsAccrued and other current liabilities22 (7)15 
Total $261 $(19)$242 
Total liability derivatives  $602 $(300)$302 
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 InstrumentsDec 31, 2020
In millionsBalance Sheet ClassificationGross
Counterparty and Cash Collateral Netting 1
Net Amounts Included in the Consolidated Balance Sheets
Asset derivatives
Derivatives designated as hedging instruments:
Interest rate contractsOther current assets$3 $(3)$— 
Foreign currency contractsOther current assets39 (19)20 
Commodity contractsOther current assets146 (109)37 
Commodity contractsDeferred charges and other assets31 (8)23 
Total $219 $(139)$80 
Derivatives not designated as hedging instruments:
Interest rate contractsDeferred charges and other assets$41 $— $41 
Foreign currency contracts Other current assets74 (25)49 
Commodity contractsOther current assets4 (1)3 
Total $119 $(26)$93 
Total asset derivatives  $338 $(165)$173 
Liability derivatives
Derivatives designated as hedging instruments:
Interest rate contractsAccrued and other current liabilities$7 $(3)$4 
Foreign currency contractsAccrued and other current liabilities93 (19)74 
Commodity contractsAccrued and other current liabilities151 (112)39 
Commodity contractsOther noncurrent obligations48 (9)39 
Total $299 $(143)$156 
Derivatives not designated as hedging instruments:
Interest rate contractsOther noncurrent obligations$178 $— $178 
Foreign currency contractsAccrued and other current liabilities35 (25)10 
Commodity contractsAccrued and other current liabilities9 (3)6 
Total $222 $(28)$194 
Total liability derivatives  $521 $(171)$350 
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.

Assets and liabilities related to forward contracts, interest rate swaps, currency swaps, options and other conditional or exchange contracts executed with the same counterparty under a master netting arrangement are netted. Collateral accounts are netted with corresponding assets or liabilities, when applicable. The Company posted cash collateral of $24 million at March 31, 2021 ($7 million at December 31, 2020). No cash collateral was posted by counterparties with the Company at March 31, 2021 and December 31, 2020.
The following table summarizes the gain (loss) of derivative instruments in the consolidated statements of income and comprehensive income for the three months ended March 31, 2021 and 2020:

Effect of Derivative Instruments
Amount of gain (loss) recognized in OCI 1
Amount of gain (loss) recognized in income 2
Income Statement Classification
Three months endedThree months ended
In millionsMar 31, 2021Mar 31, 2020Mar 31, 2021Mar 31, 2020
Derivatives designated as hedging
  instruments:
Fair value hedges:
Interest rate contracts$— $— $(25)$24 
Interest expense and amortization of debt discount 3
Excluded components 4
2 3 — — Interest expense and amortization of debt discount
Cash flow hedges:
Interest rate contracts— — (3)— Interest expense and amortization of debt discount
Foreign currency contracts5 8 (8)4 Cost of sales
Commodity contracts65 (87)13 (11)Cost of sales
Net foreign investment hedges:
Foreign currency contracts10 22 — — 
Excluded components 4
5 22 1 14 Sundry income (expense) - net
Total derivatives designated as hedging instruments$87 $(32)$(22)$31 
Derivatives not designated as hedging instruments:
Interest rate contracts$— $— $(2)$(6)Interest expense and amortization of debt discount
Foreign currency contracts— — (113)(19)Sundry income (expense) - net
Commodity contracts— — (30)11 Cost of sales
Total derivatives not designated as
  hedging instruments		$— $— $(145)$(14)
Total derivatives$87 $(32)$(167)$17 
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 hedged item.
4.The excluded components are related to the time value of the derivatives designated as hedges.

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

Expected Reclassifications from AOCL within the next 12 monthsMar 31, 2021
In millions
Cash flow hedges:
Interest rate contracts$(8)
Commodity contracts$23 
Foreign currency contracts$(6)
Net foreign investment hedges:
Excluded components$4