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Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

The following table summarizes the fair value of financial instruments at June 30, 2021 and December 31, 2020:


Fair Value of Financial Instruments	Jun 30, 2021								Dec 31, 2020
In millions	Cost		Gain		Loss		Fair Value		Cost		Gain		Loss		Fair Value
Cash equivalents:
Held-to-maturity securities 1	$	644	$	—	$	—	$	644	$	980	$	—	$	—	$	980
Money market funds	728		—		—		728		484		—		—		484
Total cash equivalents	$	1,372	$	—	$	—	$	1,372	$	1,464	$	—	$	—	$	1,464
Marketable securities 2	$	106	$	—	$	(1)	$	105	$	45	$	—	$	—	$	45
Other investments:
Debt securities:
Government debt 3	$	592	$	23	$	(21)	$	594	$	673	$	35	$	(10)	$	698
Corporate bonds	934		100		(5)		1,029		822		119		(5)		936
Total debt securities	$	1,526	$	123	$	(26)	$	1,623	$	1,495	$	154	$	(15)	$	1,634
Equity securities 4	7		25		—		32		6		34		—		40
Total other investments	$	1,533	$	148	$	(26)	$	1,655	$	1,501	$	188	$	(15)	$	1,674
Total cash equivalents, marketable securities and other investments	$	3,011	$	148	$	(27)	$	3,132	$	3,010	$	188	$	(15)	$	3,183
Long-term debt including debt due within one year 5	$	(15,538)	$	16	$	(3,160)	$	(18,682)	$	(16,951)	$	6	$	(3,659)	$	(20,604)
Derivatives relating to:
Interest rates 6	$	—	$	—	$	(186)	$	(186)	$	—	$	41	$	(182)	$	(141)
Foreign currency	—		17		(64)		(47)		—		69		(84)		(15)
Commodities 6	—		191		(122)		69		—		63		(84)		(21)
Total derivatives	$	—	$	208	$	(372)	$	(164)	$	—	$	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 $45 million at June 30, 2021 and $69 million at December 31, 2020 on $2,500 million of debt at June 30, 2021 and $3,314 million at December 31, 2020.

6.Presented net of cash collateral where master netting arrangements allow.

Investing Results

The following table provides the investing results from available-for-sale securities for the six months ended June 30, 2021 and 2020:


Investing Results	Six Months Ended
In millions	Jun 30, 2021		Jun 30, 2020
Proceeds from sales of available-for-sale securities	$	260	$	542
Gross realized gains	$	31	$	51
Gross realized losses	$	(6)	$	(17)

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 Jun 30, 2021 1	Cost		Fair Value
In millions
Within one year	$	28	$	29
One to five years	465		505
Six to ten years	585		602
After ten years	448		487
Total	$	1,526	$	1,623

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

Equity Securities with and without Readily Determinable Fair Value


Investments in Equity Securities	Jun 30, 2021		Dec 31, 2020
In millions	Jun 30, 2021		Dec 31, 2020
Readily determinable fair value	$	32	$	40
Not readily determinable fair value	$	224	$	215

Schedule of Notional Amounts of Outstanding Derivative Positions

The notional amounts of the Company's derivative instruments presented on a net basis at June 30, 2021 and December 31, 2020 were as follows:


Notional Amounts - Net	Jun 30, 2021		Dec 31, 2020
In millions	Jun 30, 2021		Dec 31, 2020
Derivatives designated as hedging instruments:
Interest rate contracts	$	2,855	$	612
Foreign currency contracts	$	1,785	$	3,784
Derivatives not designated as hedging instruments:
Interest rate contracts	$	63	$	94
Foreign currency contracts	$	11,615	$	9,187

The notional amounts of the Company's commodity derivatives presented on a net basis at June 30, 2021 and December 31, 2020 were as follows:


Commodity Notionals - Net	Jun 30, 2021	Dec 31, 2020	Notional Volume Unit
Derivatives designated as hedging instruments:
Hydrocarbon derivatives	7.5	10.9	million barrels of oil equivalent
Derivatives not designated as hedging instruments:
Hydrocarbon derivatives	1.9	—	million barrels of oil equivalent

Schedule of Fair Values of Derivative Instruments

The following tables provide the fair value and balance sheet classification of derivative instruments at June 30, 2021 and December 31, 2020:


Fair Value of Derivative Instruments		Jun 30, 2021
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	Deferred charges and other assets	$	177	$	(177)	$	—
Foreign currency contracts	Other current assets	39		(25)		14
Commodity contracts	Other current assets	409		(274)		135
Commodity contracts	Deferred charges and other assets	84		(42)		42
Total		$	709	$	(518)	$	191
Derivatives not designated as hedging instruments:

Interest rate contracts	Deferred charges and other assets	$	1	$	(1)	$	—
Foreign currency contracts	Other current assets	19		(16)		3
Commodity contracts	Other current assets	18		(4)		14

Total		$	38	$	(21)	$	17
Total asset derivatives		$	747	$	(539)	$	208

Liability derivatives
Derivatives designated as hedging instruments:

Interest rate contracts	Other noncurrent obligations	$	235	$	(177)	$	58
Foreign currency contracts	Accrued and other current liabilities	28		(25)		3
Commodity contracts	Accrued and other current liabilities	376		(296)		80
Commodity contracts	Other noncurrent obligations	61		(46)		15
Total		$	700	$	(544)	$	156
Derivatives not designated as hedging instruments:

Interest rate contracts	Other noncurrent obligations	$	129	$	(1)	$	128
Foreign currency contracts	Accrued and other current liabilities	77		(16)		61
Commodity contracts	Accrued and other current liabilities	31		(4)		27

Total		$	237	$	(21)	$	216
Total liability derivatives		$	937	$	(565)	$	372

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, 2020
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	$	3	$	(3)	$	—
Foreign currency contracts	Other current assets	39		(19)		20
Commodity contracts	Other current assets	146		(109)		37
Commodity contracts	Deferred charges and other assets	31		(8)		23
Total		$	219	$	(139)	$	80
Derivatives not designated as hedging instruments:

Interest rate contracts	Deferred charges and other assets	$	41	$	—	$	41
Foreign currency contracts	Other current assets	74		(25)		49
Commodity contracts	Other current assets	4		(1)		3

Total		$	119	$	(26)	$	93
Total asset derivatives		$	338	$	(165)	$	173

Liability derivatives
Derivatives designated as hedging instruments:
Interest rate contracts	Accrued and other current liabilities	$	7	$	(3)	$	4

Foreign currency contracts	Accrued and other current liabilities	93		(19)		74
Commodity contracts	Accrued and other current liabilities	151		(112)		39
Commodity contracts	Other noncurrent obligations	48		(9)		39
Total		$	299	$	(143)	$	156
Derivatives not designated as hedging instruments:

Interest rate contracts	Other noncurrent obligations	$	178	$	—	$	178
Foreign currency contracts	Accrued and other current liabilities	35		(25)		10
Commodity contracts	Accrued and other current liabilities	9		(3)		6

Total		$	222	$	(28)	$	194
Total liability derivatives		$	521	$	(171)	$	350

Derivative Instruments, Gain (Loss)

The following tables summarize the gain (loss) of derivative instruments in the consolidated statements of income and comprehensive income for the three and six months ended June 30, 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 Ended				Three Months Ended
In millions	Jun 30, 2021		Jun 30, 2020		Jun 30, 2021		Jun 30, 2020
Derivatives designated as hedging instruments:
Fair value hedges:

Excluded components 3	$	—	$	4	$	—	$	—	Interest expense and amortization of debt discount
Cash flow hedges:
Interest rate contracts	(44)		—		(2)		—		Interest expense and amortization of debt discount
Foreign currency contracts	1		(5)		(4)		5		Cost of sales

Commodity contracts	41		22		(2)		(17)		Cost of sales
Net foreign investment hedges:
Foreign currency contracts	3		(6)		—		—
Excluded components 3	3		5		3		2		Sundry income (expense) - net
Total derivatives designated as hedging instruments	$	4	$	20	$	(5)	$	(10)
Derivatives not designated as hedging instruments:
Interest rate contracts	$	—	$	—	$	(1)	$	(1)	Interest expense and amortization of debt discount
Foreign currency contracts	—		—		(5)		9		Sundry income (expense) - net
Commodity contracts	—		—		(5)		6		Cost of sales
Total derivatives not designated as hedging instruments	$	—	$	—	$	(11)	$	14
Total derivatives	$	4	$	20	$	(16)	$	4

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

2.Pretax amounts.

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


Effect of Derivative Instruments	Amount of gain (loss) recognized in OCI 1				Amount of gain (loss) recognized in income 2				Income Statement Classification
	Six Months Ended				Six Months Ended
In millions	Jun 30, 2021		Jun 30, 2020		Jun 30, 2021		Jun 30, 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		7		—		—		Interest expense and amortization of debt discount
Cash flow hedges:
Interest rate contracts	(44)		—		(5)		—		Interest expense and amortization of debt discount
Foreign currency contracts	6		3		(12)		9		Cost of sales

Commodity contracts	106		(65)		11		(28)		Cost of sales
Net foreign investment hedges:
Foreign currency contracts	13		16		—		—
Excluded components 4	8		27		4		16		Sundry income (expense) - net
Total derivatives designated as hedging instruments	$	91	$	(12)	$	(27)	$	21
Derivatives not designated as hedging instruments:
Interest rate contracts	$	—	$	—	$	(3)	$	(7)	Interest expense and amortization of debt discount
Foreign currency contracts	—		—		(118)		(10)		Sundry income (expense) - net
Commodity contracts	—		—		(35)		17		Cost of sales
Total derivatives not designated as hedging instruments	$	—	$	—	$	(156)	$	—
Total derivatives	$	91	$	(12)	$	(183)	$	21

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.

4.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

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 months	Jun 30, 2021
In millions
Cash flow hedges:
Interest rate contracts	$	(8)
Commodity contracts	$	51
Foreign currency contracts	$	(2)
Net foreign investment hedges:
Excluded components	$	4