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Derivative Financial Instruments and Risk Management (Tables)
 12 Months Ended
Dec. 31, 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
 
 
 
 
December 31,
 
 
Consolidated Statements of
Financial Position Location
 
2016
 
2015
Designated derivatives
 
 
 
 
 
 
Interest rate contracts
 
Other assets
 
$
4

 
$
51

Interest rate contracts
 
Accrued expenses
 
(1
)
 
(4
)
Cross currency contracts
 
Other assets
 
29

 
1

Cross currency contracts
 
Accrued expenses
 
(3
)
 
—

 
 
 
 
$
29

 
$
48

Undesignated derivatives
 
 
 
 

 
 

Foreign exchange contracts
 
Other assets
 
$
12

 
$
3

Foreign exchange contracts
 
Accrued expenses
 
(4
)
 
(6
)
Cross currency contracts
 
Other assets
 
27

 
36

 
 
 
 
$
35

 
$
33

 
 
 
 
 
 
 
Schedule of effect of derivatives designated as fair value hedging instruments on 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)
 
 
 
 
Year Ended December 31, 2016
 
 
Classification
 
Gains (Losses)
on Derivatives
 
Gains (Losses)
on Borrowings
Interest rate contracts
 
Other income (expense)
 
$
(12
)
 
$
11

 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
Classification
 
Gains (Losses)
on Derivatives
 
Gains (Losses)
on Borrowings
Interest rate contracts
 
Other income (expense)
 
$
(27
)
 
$
26

 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
Classification
 
Gains (Losses)
on Derivatives
 
Gains (Losses)
on Borrowings
Interest rate contracts
 
Other income (expense)
 
$
(41
)
 
$
40

 
 
 
 
 
 
 
Schedule of effect of derivatives designated as cash flow hedging instruments on the Consolidated Statements of Profit
Cash Flow Hedges
(Millions of dollars)
 
Year Ended December 31, 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
$
8

Interest expense
 
$
(3
)
 
$
—

Cross currency contracts
15

Other income (expense)
 
28

 
—

 
$
23

 
 
$
25

 
$
—

 
 
 
 
 
 
 
 
Year Ended December 31, 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
$
2

Interest expense
 
$
(6
)
 
$
—

Cross currency contracts
1

Other income (expense)
 
1

 
—

 
$
3

 
 
$
(5
)
 
$
—

 
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
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
$
(6
)
Interest expense
 
$
(6
)
 
$
—

 
 
 
 
 
 
 
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 for the years ended December 31: 
(Millions of dollars)
 
 
 
 
 
 
 
 
 
 
Classification
 
2016
 
2015
 
2014
Foreign exchange contracts
 
Other income (expense)
 
$
(10
)
 
$
(50
)
 
$
(49
)
Cross currency contracts
 
Other income (expense)
 
(14
)
 
16

 
2

 
 
 
 
$
(24
)
 
$
(34
)
 
$
(47
)
 
 
 
 
 
 
 
 
 
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 as of December 31, was as follows:
Offsetting of Derivative Assets and Liabilities
 
 
 
 
(Millions of dollars)
 
 
 
 
 
 
2016
 
2015
Derivative Assets
 
 
 
 
Gross Amount of Recognized Assets
 
$
72

 
$
91

Gross Amounts Offset
 
—

 
—

Net Amount of Assets(1)
 
72

 
91

Gross Amounts Not Offset
 
(7
)
 
(5
)
Net Amount
 
$
65

 
$
86

 
 
 
 
 
Derivative Liabilities
 
 
 
 
Gross Amount of Recognized Liabilities
 
$
(8
)
 
$
(10
)
Gross Amounts Offset
 
—

 
—

Net Amount of Liabilities(1)
 
(8
)
 
(10
)
Gross Amounts Not Offset
 
7

 
5

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