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Derivative Financial Instruments and Risk Management (Tables)
 3 Months Ended
Mar. 31, 2020
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,
2020
 
December 31,
2019
Designated derivatives
 
 
 
 
 
Interest rate contracts
Other assets
 
$
61

 
$
5

Interest rate contracts
Accrued expenses
 
(31
)
 
(25
)
Cross currency contracts
Other assets
 
152

 
67

Cross currency contracts
Accrued expenses
 
(1
)
 
(3
)
 
 
 
$
181

 
$
44

Undesignated derivatives
 
 
 

 
 
Foreign exchange contracts
Other assets
 
$
75

 
$
7

Foreign exchange contracts
Accrued expenses
 
(28
)
 
(21
)
Cross currency contracts
Other assets
 
13

 
5

Cross currency contracts
Accrued expenses
 
—

 
(1
)
 
 
 
$
60

 
$
(10
)
 
 
 
 
 
 
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, 2020
 
 
Recognized in Earnings
 
Amount of
Gains (Losses)
Recognized
in AOCI
Classification
 
Amount of
Gains (Losses)
Reclassified
from AOCI
 
Amount of the line
items in the
Consolidated
Statements of Profit
Interest rate contracts
$
(15
)
Interest expense
 
$
(5
)
 
$
175

Cross currency contracts
101

Other income (expense)
 
71

 
(10
)
 
 
Interest expense
 
11

 
175

 
$
86

 
 
$
77

 


 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 
Recognized in Earnings
 
Amount of
Gains (Losses)
Recognized
in AOCI
Classification
 
Amount of
Gains (Losses)
Reclassified
from AOCI
 
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

 


 
 
 
 
 
 
 
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
 
2020
 
2019
Foreign exchange contracts
Other income (expense)
 
$
99

 
$
(29
)
Cross currency contracts
Other income (expense)
 
9

 
—

 
 
 
$
108

 
$
(29
)
 
 
 
 
 
 
Schedule of effect of net settlement provisions of the master netting agreements on our derivative balances
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:
(Millions of dollars)
 
March 31,
2020
 
December 31,
2019
Derivative Assets
 
 
 
 
Gross Amount of Recognized Assets
 
$
301

 
$
84

Gross Amounts Offset
 
—

 
—

Net Amount of Assets(1)
 
301

 
84

Gross Amounts Not Offset
 
(47
)
 
(21
)
Net Amount
 
$
254

 
$
63

 
 
 
 
 
Derivative Liabilities
 
 
 
 
Gross Amount of Recognized Liabilities
 
$
(60
)
 
$
(50
)
Gross Amounts Offset
 
—

 
—

Net Amount of Liabilities(1)
 
(60
)
 
(50
)
Gross Amounts Not Offset
 
47

 
21

Net Amount
 
$
(13
)
 
$
(29
)
 
 
 
 
 
(1) As presented in the Consolidated Statements of Financial Position.