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Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

The following table summarizes the fair value of financial instruments at September 30, 2022 and December 31, 2021:


Fair Value of Financial Instruments	Sep 30, 2022								Dec 31, 2021
In millions	Cost		Gain		Loss		Fair Value		Cost		Gain		Loss		Fair Value
Cash equivalents:
Held-to-maturity securities 1	$	327	$	—	$	—	$	327	$	317	$	—	$	—	$	317
Money market funds	735		—		—		735		489		—		—		489
Total cash equivalents	$	1,062	$	—	$	—	$	1,062	$	806	$	—	$	—	$	806
Marketable securities 2	$	136	$	12	$	—	$	148	$	237	$	8	$	—	$	245
Other investments:
Debt securities:
Government debt 3	$	744	$	1	$	(155)	$	590	$	746	$	17	$	(28)	$	735
Corporate bonds	1,268		5		(188)		1,085		1,251		93		(20)		1,324
Total debt securities	$	2,012	$	6	$	(343)	$	1,675	$	1,997	$	110	$	(48)	$	2,059
Equity securities 4	4		6		—		10		7		13		—		20
Total other investments	$	2,016	$	12	$	(343)	$	1,685	$	2,004	$	123	$	(48)	$	2,079
Total cash equivalents, marketable securities and other investments	$	3,214	$	24	$	(343)	$	2,895	$	3,047	$	131	$	(48)	$	3,130
Long-term debt including debt due within one year 5	$	(13,285)	$	1,996	$	(333)	$	(11,622)	$	(14,511)	$	27	$	(2,641)	$	(17,125)
Derivatives relating to:
Interest rates 6	$	—	$	198	$	—	$	198	$	—	$	1	$	(140)	$	(139)
Foreign currency	—		189		(158)		31		—		46		(18)		28
Commodities 6	—		274		(100)		174		—		142		(92)		50
Total derivatives	$	—	$	661	$	(258)	$	403	$	—	$	189	$	(250)	$	(61)

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 $47 million at September 30, 2022 and December 31, 2021 on $2,279 million of debt at September 30, 2022 and December 31, 2021.

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

Investing Results

The following table provides investing results from available-for-sale securities for the nine months ended September 30, 2022 and 2021:


Investing Results	Nine Months Ended
In millions	Sep 30, 2022		Sep 30, 2021
Proceeds from sales of available-for-sale securities	$	449	$	339
Gross realized gains	$	40	$	41
Gross realized losses	$	(42)	$	(8)

Contractual Maturities of Debt Securities

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


Contractual Maturities of Debt Securities at Sep 30, 2022 1	Cost		Fair Value
In millions
Within one year	$	71	$	66
One to five years	706		627
Six to ten years	710		581
After ten years	525		401
Total	$	2,012	$	1,675

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

Equity Securities with and without Readily Determinable Fair Value


Investments in Equity Securities	Sep 30, 2022		Dec 31, 2021
In millions	Sep 30, 2022		Dec 31, 2021
Readily determinable fair value	$	10	$	20
Not readily determinable fair value	$	191	$	209

Schedule of Notional Amounts of Outstanding Derivative Positions

The notional amounts of the Company's derivative instruments presented on a net basis at September 30, 2022 and December 31, 2021 were as follows:


Notional Amounts - Net	Sep 30, 2022		Dec 31, 2021
In millions	Sep 30, 2022		Dec 31, 2021
Derivatives designated as hedging instruments:
Interest rate contracts	$	3,000	$	3,000
Foreign currency contracts	$	13,131	$	5,300
Derivatives not designated as hedging instruments:
Interest rate contracts	$	10	$	36
Foreign currency contracts	$	15,743	$	8,234

The notional amounts of the Company's commodity derivatives presented on a net basis at September 30, 2022 and December 31, 2021 were as follows:


Commodity Notionals - Net	Sep 30, 2022	Dec 31, 2021	Notional Volume Unit
Derivatives designated as hedging instruments:
Hydrocarbon derivatives	13.5	9.7	million barrels of oil equivalent
Derivatives not designated as hedging instruments:
Hydrocarbon derivatives	—	0.1	million barrels of oil equivalent
Power derivatives	—	3.3	thousands of megawatt hours

Schedule of Derivative Instruments


Maturity Dates of Derivatives Designated as Hedging Instruments			Year
Interest rate contracts			2023
Foreign currency contracts			2023
Commodity contracts			2026

Schedule of Fair Values of Derivative Instruments

The following tables provide the fair value and balance sheet classification of derivative instruments at September 30, 2022 and December 31, 2021:


Fair Value of Derivative Instruments		Sep 30, 2022
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	$	657	$	(459)	$	198

Foreign currency contracts	Other current assets	862		(700)		162

Commodity contracts	Other current assets	478		(225)		253
Commodity contracts	Deferred charges and other assets	7		—		7
Total		$	2,004	$	(1,384)	$	620
Derivatives not designated as hedging instruments:


Foreign currency contracts	Other current assets	$	110	$	(83)	$	27

Commodity contracts	Other current assets	34		(20)		14

Total		$	144	$	(103)	$	41
Total asset derivatives		$	2,148	$	(1,487)	$	661

Liability derivatives
Derivatives designated as hedging instruments:
Interest rate contracts	Accrued and other current liabilities	$	459	$	(459)	$	—

Foreign currency contracts	Accrued and other current liabilities	723		(700)		23

Commodity contracts	Accrued and other current liabilities	335		(245)		90
Commodity contracts	Other noncurrent obligations	1		(1)		—
Total		$	1,518	$	(1,405)	$	113
Derivatives not designated as hedging instruments:


Foreign currency contracts	Accrued and other current liabilities	$	218	$	(83)	$	135

Commodity contracts	Accrued and other current liabilities	31		(21)		10

Total		$	249	$	(104)	$	145
Total liability derivatives		$	1,767	$	(1,509)	$	258

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, 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	Other current assets	$	14	$	(14)	$	—
Interest rate contracts	Deferred charges and other assets	130		(130)		—
Foreign currency contracts	Other current assets	24		(13)		11
Foreign currency contracts	Deferred charges and other assets	117		(89)		28
Commodity contracts	Other current assets	305		(173)		132
Commodity contracts	Deferred charges and other assets	9		(2)		7
Total		$	599	$	(421)	$	178
Derivatives not designated as hedging instruments:
Interest rate contracts	Other current assets	$	1	$	—	$	1
Foreign currency contracts	Other current assets	23		(16)		7
Foreign currency contracts	Deferred charges and other assets	1		(1)		—
Commodity contracts	Other current assets	8		(5)		3

Total		$	33	$	(22)	$	11
Total asset derivatives		$	632	$	(443)	$	189

Liability derivatives
Derivatives designated as hedging instruments:
Interest rate contracts	Accrued and other current liabilities	$	33	$	(14)	$	19
Interest rate contracts	Other noncurrent obligations	192		(130)		62
Foreign currency contracts	Accrued and other current liabilities	15		(13)		2
Foreign currency contracts	Other noncurrent obligations	90		(89)		1
Commodity contracts	Accrued and other current liabilities	267		(192)		75
Commodity contracts	Other noncurrent obligations	2		(2)		—
Total		$	599	$	(440)	$	159
Derivatives not designated as hedging instruments:
Interest rate contracts	Accrued and other current liabilities	$	59	$	—	$	59

Foreign currency contracts	Accrued and other current liabilities	31		(16)		15
Foreign currency contracts	Other noncurrent obligations	1		(1)		—
Commodity contracts	Accrued and other current liabilities	25		(8)		17
Total		$	116	$	(25)	$	91
Total liability derivatives		$	715	$	(465)	$	250

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 nine months ended September 30, 2022 and 2021:


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	Sep 30, 2022		Sep 30, 2021		Sep 30, 2022		Sep 30, 2021
Derivatives designated as hedging instruments:



Cash flow hedges:
Interest rate contracts	$	24	$	5	$	(3)	$	(2)	Interest expense and amortization of debt discount
Foreign currency contracts	2		4		4		(3)		Cost of sales

Commodity contracts	23		37		79		21		Cost of sales
Net foreign investment hedges:
Foreign currency contracts	88		20		—		—
Excluded components 3	25		12		15		1		Sundry income (expense) - net
Total derivatives designated as hedging instruments	$	162	$	78	$	95	$	17
Derivatives not designated as hedging instruments:
Interest rate contracts	$	—	$	—	$	—	$	(2)	Interest expense and amortization of debt discount
Foreign currency contracts	—		—		(255)		(84)		Sundry income (expense) - net
Commodity contracts	—		—		10		(12)		Cost of sales
Total derivatives not designated as hedging instruments	$	—	$	—	$	(245)	$	(98)
Total derivatives	$	162	$	78	$	(150)	$	(81)

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
	Nine Months Ended				Nine Months Ended
In millions	Sep 30, 2022		Sep 30, 2021		Sep 30, 2022		Sep 30, 2021
Derivatives designated as hedging instruments:
Fair value hedges:
Interest rate contracts	$	—	$	—	$	—	$	(25)	Interest expense and amortization of debt discount 3
Excluded components 4	—		2		—		—		Interest expense and amortization of debt discount
Cash flow hedges:
Interest rate contracts	231		(39)		(8)		(7)		Interest expense and amortization of debt discount
Foreign currency contracts	8		10		10		(15)		Cost of sales

Commodity contracts	310		143		220		32		Cost of sales
Net foreign investment hedges:
Foreign currency contracts	135		33		—		—
Excluded components 4	59		20		38		5		Sundry income (expense) - net
Total derivatives designated as hedging instruments	$	743	$	169	$	260	$	(10)
Derivatives not designated as hedging instruments:
Interest rate contracts	$	—	$	—	$	(1)	$	(5)	Interest expense and amortization of debt discount
Foreign currency contracts	—		—		(531)		(202)		Sundry income (expense) - net
Commodity contracts	—		—		39		(47)		Cost of sales
Total derivatives not designated as hedging instruments	$	—	$	—	$	(493)	$	(254)
Total derivatives	$	743	$	169	$	(233)	$	(264)

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 gain (loss) expected to be reclassified from AOCL to income within the next 12 months:


Expected Reclassifications from AOCL within the next 12 months	Sep 30, 2022
In millions
Cash flow hedges:
Interest rate contracts	$	(8)
Commodity contracts	$	170
Foreign currency contracts	$	9
Net foreign investment hedges:
Excluded components	$	18