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Financial Instruments (Notes)
 3 Months Ended
Mar. 31, 2023
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 21 to the Consolidated Financial Statements included in the 2022 10-K.

The following table summarizes the fair value of financial instruments at March 31, 2023 and December 31, 2022:

Fair Value of Financial InstrumentsMar 31, 2023Dec 31, 2022
In millionsCostGainLossFair ValueCostGainLossFair Value
Cash equivalents:
Held-to-maturity securities 1
$714 $— $— $714 $872 $— $— $872 
Money market funds1,273 — — 1,273 355 — — 355 
Total cash equivalents$1,987 $— $— $1,987 $1,227 $— $— $1,227 
Marketable securities 2
$610 $9 $— $619 $927 $12 $— $939 
Other investments:
Debt securities:
Government debt 3
$762 $1 $(122)$641 $754 $1 $(133)$622 
Corporate bonds1,272 9 (134)1,147 1,274 10 (159)1,125 
Total debt securities$2,034 $10 $(256)$1,788 $2,028 $11 $(292)$1,747 
Equity securities 4
5 13 — 18 5 5 — 10 
Total other investments$2,039 $23 $(256)$1,806 $2,033 $16 $(292)$1,757 
Total cash equivalents, marketable securities and other investments$4,636 $32 $(256)$4,412 $4,187 $28 $(292)$3,923 
Long-term debt including debt due within one year 5
$(14,986)$1,389 $(642)$(14,239)$(15,060)$1,683 $(498)$(13,875)
Derivatives relating to:
Interest rates 6
$— $2 $— $2 $— $105 $— $105 
Foreign currency— 66 (17)49 — 115 (30)85 
Commodities 6
— 24 (30)(6)— 72 (61)11 
Total derivatives$— $92 $(47)$45 $— $292 $(91)$201 
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 $49 million at March 31, 2023 and $46 million at December 31, 2022 on $2,729 million of debt at March 31, 2023 and $2,279 million of debt at December 31, 2022.
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 investing results from available-for-sale securities for the three months ended March 31, 2023 and 2022:

Investing ResultsThree Months Ended
In millionsMar 31, 2023Mar 31, 2022
Proceeds from sales of available-for-sale securities$146 $113 
Gross realized gains$8 $12 
Gross realized losses $(9)$(13)
The following table summarizes contractual maturities of the Company's investments in debt securities:

Contractual Maturities of Debt Securities at Mar 31, 2023
 CostFair Value
In millions
Within one year$78 $76 
One to five years894 814 
Six to ten years550 479 
After ten years512 419 
Total$2,034 $1,788 

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, 2023. There was $8 million of net unrealized gains recognized in earnings on equity securities for the three months ended March 31, 2023 ($3 million net unrealized loss for the three months ended March 31, 2022).

Investments in Equity SecuritiesMar 31, 2023Dec 31, 2022
In millions
Readily determinable fair value$18 $10 
Not readily determinable fair value$178 $186 

Derivative Instruments
The notional amounts of the Company's derivative instruments at March 31, 2023 and December 31, 2022 were as follows:

Notional Amounts 1
Mar 31, 2023Dec 31, 2022
In millions
Derivatives designated as hedging instruments:
Interest rate contracts$450 $1,500 
Foreign currency contracts$2,141 $2,408 
Derivatives not designated as hedging instruments:
Interest rate contracts$46 $3 
Foreign currency contracts$12,150 $8,837 
1.Notional amounts represent the absolute value of open derivative positions at the end of the period. Multi-leg option positions are reflected at the maximum notional position at expiration.

The notional amounts of the Company's commodity derivatives at March 31, 2023 and December 31, 2022 were as follows:

Commodity Notionals 1
Mar 31, 2023Dec 31, 2022Notional Volume Unit
Derivatives designated as hedging instruments:
Hydrocarbon derivatives8.5 19.2 million barrels of oil equivalent
Derivatives not designated as hedging instruments:
Hydrocarbon derivatives1.0 — million barrels of oil equivalent
Power derivatives21.3 — thousands of megawatt hours
1.Notional amounts represent the net volume of open derivative positions outstanding at the end of the period.

Maturity Dates of Derivatives Designated as Hedging InstrumentsYear
Interest rate contracts2024
Foreign currency contracts2024
Commodity contracts2026
The following tables provide the fair value and balance sheet classification of derivative instruments at March 31, 2023 and December 31, 2022:

Fair Value of Derivative InstrumentsMar 31, 2023
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$37 $(35)$2 
Foreign currency contractsOther current assets32 (32)— 
Commodity contractsOther current assets87 (65)22 
Total $156 $(132)$24 
Derivatives not designated as hedging instruments:
Interest rate contractsOther current assets$2 $(2)$— 
Foreign currency contracts Other current assets90 (24)66 
Commodity contractsOther current assets2 — 2 
Total $94 $(26)$68 
Total asset derivatives  $250 $(158)$92 
Liability derivatives
Derivatives designated as hedging instruments:
Interest rate contractsOther noncurrent obligations$35 $(35)$— 
Foreign currency contractsAccrued and other current liabilities41 (32)9 
Commodity contractsAccrued and other current liabilities147 (119)28 
Total $223 $(186)$37 
Derivatives not designated as hedging instruments:
Interest rate contractsAccrued and other current liabilities$2 $(2)$— 
Foreign currency contractsAccrued and other current liabilities32 (24)8 
Commodity contractsAccrued and other current liabilities2 — 2 
Total $36 $(26)$10 
Total liability derivatives  $259 $(212)$47 
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, 2022
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$351 $(246)$105 
Foreign currency contractsOther current assets58 (39)19 
Commodity contractsOther current assets199 (148)51 
Total $608 $(433)$175 
Derivatives not designated as hedging instruments:
Foreign currency contractsOther current assets$146 $(50)$96 
Commodity contractsOther current assets22 (1)21 
Total $168 $(51)$117 
Total asset derivatives  $776 $(484)$292 
Liability derivatives
Derivatives designated as hedging instruments:
Interest rate contractsAccrued and other current liabilities$246 $(246)$— 
Foreign currency contractsAccrued and other current liabilities58 (39)19 
Commodity contractsAccrued and other current liabilities258 (198)60 
Total $562 $(483)$79 
Derivatives not designated as hedging instruments:
Foreign currency contractsAccrued and other current liabilities$61 $(50)$11 
Commodity contractsAccrued and other current liabilities12 (11)1 
Total $73 $(61)$12 
Total liability derivatives  $635 $(544)$91 
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 $77 million at March 31, 2023 ($80 million at December 31, 2022). No cash collateral was posted by counterparties with the Company at March 31, 2023 ($2 million at December 31, 2022).
The following tables summarize the gain (loss) of derivative instruments in the consolidated statements of income and comprehensive income for the three months ended March 31, 2023 and 2022:

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, 2023Mar 31, 2022Mar 31, 2023Mar 31, 2022
Derivatives designated as hedging instruments:
Fair value hedges:
Excluded components 3
$(1)$— $— $— Interest expense and amortization of debt discount
Cash flow hedges:
Interest rate contracts5 99 (2)(3)Interest expense and amortization of debt discount
Foreign currency contracts— 2 2 3 Cost of sales
Commodity contracts(143)207 (109)34 Cost of sales
Net foreign investment hedges:
Foreign currency contracts(9)(2)— — 
Excluded components 3
3 29 — 12 Sundry income (expense) - net
Total derivatives designated as hedging instruments$(145)$335 $(109)$46 
Derivatives not designated as hedging instruments:
Interest rate contracts$— $— $— $(1)Interest expense and amortization of debt discount
Foreign currency contracts— — 35 (85)Sundry income (expense) - net
Commodity contracts— — — 22 Cost of sales
Total return swap— — (7)— Cost of sales
Total derivatives not designated as hedging instruments$— $— $28 $(64)
Total derivatives$(145)$335 $(81)$(18)
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.

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 monthsMar 31, 2023
In millions
Cash flow hedges:
Interest rate contracts$(7)
Commodity contracts$(101)
Foreign currency contracts$— 
Net foreign investment hedges:
Excluded components$3