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Derivative Financial Instruments and Risk Management (Tables)
 6 Months Ended
Jun. 30, 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
 
June 30,
2020
 
December 31,
2019
Designated derivatives
 
 
 
 
 
Interest rate contracts
Other assets
 
$
69

 
$
5

Interest rate contracts
Accrued expenses
 
(26
)
 
(25
)
Cross currency contracts
Other assets
 
57

 
67

Cross currency contracts
Accrued expenses
 
(3
)
 
(3
)
 
 
 
$
97

 
$
44

Undesignated derivatives
 
 
 

 
 
Foreign exchange contracts
Other assets
 
$
49

 
$
7

Foreign exchange contracts
Accrued expenses
 
(12
)
 
(21
)
Cross currency contracts
Other assets
 
12

 
5

Cross currency contracts
Accrued expenses
 
—

 
(1
)
 
 
 
$
49

 
$
(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 June 30, 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
$
(9
)
Interest expense
 
$
(19
)
 
$
150

Cross currency contracts
(35
)
Other income (expense)
 
(43
)
 
(6
)
 
 
Interest expense
 
9

 
150

 
$
(44
)
 
 
$
(53
)
 


 
 
 
 
 
 
 
 
Three Months Ended June 30, 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
$
(34
)
Interest expense
 
$
—

 
$
200

Cross currency contracts
10

Other income (expense)
 
(4
)
 
(6
)
 
 
Interest expense
 
7

 
200

 
$
(24
)
 
 
$
3

 


 
 
 
 
 
 
 
 
Six Months Ended June 30, 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
$
(24
)
Interest expense
 
$
(24
)
 
$
325

Cross currency contracts
66

Other income (expense)
 
28

 
(16
)
 
 
Interest expense
 
20

 
325

 
$
42

 
 
$
24

 


 
 
 
 
 
 
 
 
Six Months Ended June 30, 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
$
(60
)
Interest expense
 
$
1

 
$
401

Cross currency contracts
32

Other income (expense)
 
2

 
(10
)
 
 
Interest expense
 
14

 
401

 
$
(28
)
 
 
$
17

 


 
 
 
 
 
 
 
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 June 30,
 
Classification
 
2020
 
2019
Foreign exchange contracts
Other income (expense)
 
$
(24
)
 
$
(9
)
Cross currency contracts
Other income (expense)
 
1

 
(1
)
 
 
 
$
(23
)
 
$
(10
)
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
Classification
 
2020
 
2019
Foreign exchange contracts
Other income (expense)
 
$
75

 
$
(38
)
Cross currency contracts
Other income (expense)
 
10

 
(1
)
 
 
 
$
85

 
$
(39
)
 
 
 
 
 
 
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)
 
June 30,
2020
 
December 31,
2019
Derivative Assets
 
 
 
 
Gross Amount of Recognized Assets
 
$
187

 
$
84

Gross Amounts Offset
 
—

 
—

Net Amount of Assets(1)
 
187

 
84

Gross Amounts Not Offset
 
(33
)
 
(21
)
Net Amount
 
$
154

 
$
63

 
 
 
 
 
Derivative Liabilities
 
 
 
 
Gross Amount of Recognized Liabilities
 
$
(41
)
 
$
(50
)
Gross Amounts Offset
 
—

 
—

Net Amount of Liabilities(1)
 
(41
)
 
(50
)
Gross Amounts Not Offset
 
33

 
21

Net Amount
 
$
(8
)
 
$
(29
)
 
 
 
 
 
(1) As presented in the Consolidated Statements of Financial Position.