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Derivative Financial Instruments and Risk Management (Tables)
 3 Months Ended
Mar. 31, 2019
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
 
March 31,
2019
 
December 31,
2018
Designated derivatives
 
 
 
 
 
Interest rate contracts
Other assets
 
$
3

 
$
4

Interest rate contracts
Accrued expenses
 
(58
)
 
(40
)
Cross currency contracts
Other assets
 
88

 
88

Cross currency contracts
Accrued expenses
 
(5
)
 
(9
)
 
 
 
$
28

 
$
43

Undesignated derivatives
 
 
 

 
 
Foreign exchange contracts
Other assets
 
$
9

 
$
15

Foreign exchange contracts
Accrued expenses
 
(12
)
 
(12
)
Cross currency contracts
Other assets
 
6

 
5

Cross currency contracts
Accrued expenses
 
(1
)
 
(2
)
 
 
 
$
2

 
$
6

 
 
 
 
 
 
Schedule of effect of derivatives designated as cash flow 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:
Cash Flow Hedges
(Millions of dollars)
Three Months Ended March 31, 2019
 
 
Recognized in Earnings
 
Amounts of Gains
(Losses) Recognized
in AOCI
Classification
 
Reclassified from
AOCI to Earnings
 
Amount of the line
items in the Consolidated
Statements of Profit
Interest rate contracts
$
(26
)
Interest expense
 
$
1

 
$
(201
)
Cross currency contracts
22

Other income (expense)
 
6

 
(4
)
 
 
Interest expense
 
7

 
(201
)
 
$
(4
)
 
 
$
14

 


 
 
 
 
 
 
 
 
Three Months Ended March 31, 2018
 
 
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
 
$
1

 
$
—

Cross currency contracts
(33
)
Other income (expense)
 
(29
)
 
—

 
 
Interest expense
 
3

 
—

 
$
(33
)
 
 
$
(25
)
 
$
—

 
 
 
 
 
 
 
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 March 31,
 
Classification
 
2019
 
2018
Foreign exchange contracts
Other income (expense)
 
$
(29
)
 
$
(7
)
Cross currency contracts
Other income (expense)
 
—

 
—

 
 
 
$
(29
)
 
$
(7
)
 
 
 
 
 
 
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)
 
March 31,
2019
 
December 31,
2018
Derivative Assets
 
 
 
 
Gross Amount of Recognized Assets
 
$
106

 
$
112

Gross Amounts Offset
 
—

 
—

Net Amount of Assets(1)
 
106

 
112

Gross Amounts Not Offset
 
(22
)
 
(34
)
Net Amount
 
$
84

 
$
78

 
 
 
 
 
Derivative Liabilities
 
 
 
 
Gross Amount of Recognized Liabilities
 
$
(76
)
 
$
(63
)
Gross Amounts Offset
 
—

 
—

Net Amount of Liabilities(1)
 
(76
)
 
(63
)
Gross Amounts Not Offset
 
22

 
34

Net Amount
 
$
(54
)
 
$
(29
)
 
 
 
 
 
(1) As presented in the Consolidated Statements of Financial Position.