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Derivative Financial Instruments and Risk Management (Tables)
 9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position
The location and fair value of derivative instruments reported in the Consolidated Statements of Financial Position were as follows:
(Millions of dollars)
 
 
 
 
 
 
 
 
Asset (Liability) Fair Value
 
Consolidated Statements of
Financial Position Location
 
September 30,
2016
 
December 31,
2015
Designated derivatives
 
 
 
 
 
Interest rate contracts
Other assets
 
$
5

 
$
51

Interest rate contracts
Accrued expenses
 
(2
)
 
(4
)
Cross currency contracts
Other assets
 
4

 
1

Cross currency contracts
Accrued expenses
 
(15
)
 
—

 
 
 
$
(8
)
 
$
48

Undesignated derivatives
 
 
 

 
 
Foreign exchange contracts
Other assets
 
$
2

 
$
3

Foreign exchange contracts
Accrued expenses
 
(5
)
 
(6
)
Cross currency contracts
Other assets
 
28

 
36

 
 
 
$
25

 
$
33

 
 
 
 
 
 
Schedule of effect of derivatives designated as fair value hedging instruments in the Consolidated Statements of Profit
The effect of derivatives designated as hedging instruments on the Consolidated Statements of Profit was as follows:
Fair Value Hedges
(Millions of dollars)
 
 
Three Months Ended
September 30, 2016
 
Three Months Ended
September 30, 2015
 
Classification
 
Gains
(Losses)
on
Derivatives
 
Gains
(Losses)
on
Borrowings 
 
Gains
(Losses)
on
Derivatives
 
Gains 
(Losses)
on
Borrowings
Interest rate contracts
Other income (expense)
 
$
(11
)
 
$
11

 
$
3

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
September 30, 2016
 
Nine Months Ended
September 30, 2015
 
Classification
 
Gains
(Losses)
on
Derivatives
 
Gains
(Losses)
on
Borrowings 
 
Gains
(Losses)
on
Derivatives
 
Gains 
(Losses)
on
Borrowings
Interest rate contracts
Other income (expense)
 
$
(11
)
 
$
10

 
$
(11
)
 
$
10

 
 
 
 
 
 
 
 
 
 
Schedule of effect of derivatives designated as cash flow hedging instruments in the Consolidated Statements of Profit
Cash Flow Hedges
(Millions of dollars)
Three Months Ended September 30, 2016
 
 
Recognized in Earnings
 
Amounts of Gains
(Losses) Recognized in
AOCI (Effective Portion)
Classification
 
Reclassified from
AOCI to Earnings
(Effective Portion)
 
Recognized in
Earnings
(Ineffective Portion)
Interest rate contracts
$
2

Interest expense
 
$
—

 
$
—

Cross currency contracts
(17
)
Other income (expense)
 
(10
)
 
—

 
$
(15
)
 
 
$
(10
)
 
$
—

 
 
 
 
 
 
 
 
Three Months Ended September 30, 2015
 
 
Recognized in Earnings
 
Amounts of Gains
(Losses) Recognized in
AOCI (Effective Portion)
Classification
 
Reclassified from
AOCI to Earnings
(Effective Portion)
 
Recognized in
Earnings
(Ineffective Portion)
Interest rate contracts
$
(1
)
Interest expense
 
$
(1
)
 
$
—

 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016
 
 
Recognized in Earnings
 
Amounts of Gains
(Losses) Recognized in
AOCI (Effective Portion)
Classification
 
Reclassified from
AOCI to Earnings
(Effective Portion)
 
Recognized in
Earnings
(Ineffective Portion)
Interest rate contracts
$
—

Interest expense
 
$
(3
)
 
$
—

Cross currency contracts
(23
)
Other income (expense)
 
(16
)
 
—

 
$
(23
)
 
 
$
(19
)
 
$
—

 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2015
 
 
Recognized in Earnings
 
Amounts of Gains
(Losses) Recognized in
AOCI (Effective Portion)
Classification
 
Reclassified from
AOCI to Earnings
(Effective Portion)
 
Recognized in
Earnings
(Ineffective Portion)
Interest rate contracts
$
1

Interest expense
 
$
(4
)
 
$
—

 
 
 
 
 
 
 
Schedule of effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit
The effect of derivatives not designated as hedging instruments on the Consolidated Statements of Profit was as follows:
(Millions of dollars)
 
 
Three Months Ended September 30,
 
Classification
 
2016
 
2015
Foreign exchange contracts
Other income (expense)
 
$
(5
)
 
$
(2
)
Cross currency contracts
Other income (expense)
 
—

 
8

 
 
 
$
(5
)
 
$
6

 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
Classification
 
2016
 
2015
Foreign exchange contracts
Other income (expense)
 
$
(21
)
 
$
(34
)
Cross currency contracts
Other income (expense)
 
(12
)
 
16

 
 
 
$
(33
)
 
$
(18
)
 
 
 
 
 
 
Schedule of offsetting of derivative assets and liabilities
The effect of net settlement provisions of the master netting agreements on our derivative balances upon an event of default or a termination event was as follows:
Offsetting of Derivative Assets and Liabilities
 
 
 
 
(Millions of dollars)
 
 
 
 
 
 
September 30,
2016
 
December 31,
2015
Derivative Assets
 
 
 
 
Gross Amount of Recognized Assets
 
$
39

 
$
91

Gross Amounts Offset
 
—

 
—

Net Amount of Assets(1)
 
39

 
91

Gross Amounts Not Offset
 
(3
)
 
(5
)
Net Amount
 
$
36

 
$
86

 
 
 
 
 
Derivative Liabilities
 
 
 
 
Gross Amount of Recognized Liabilities
 
$
(22
)
 
$
(10
)
Gross Amounts Offset
 
—

 
—

Net Amount of Liabilities(1)
 
(22
)
 
(10
)
Gross Amounts Not Offset
 
3

 
5

Net Amount
 
$
(19
)
 
$
(5
)
 
 
 
 
 
(1) As presented in the Consolidated Statements of Financial Position.