Derivative Financial Instruments and Risk Management (Tables)

9 Months Ended

Sep. 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	September 30, 2020		December 31, 2019
Designated derivatives
Interest rate contracts	Other assets	$	63	$	5
Interest rate contracts	Accrued expenses	(12)		(25)
Cross currency contracts	Other assets	16		67
Cross currency contracts	Accrued expenses	(39)		(3)
		$	28	$	44
Undesignated derivatives
Foreign exchange contracts	Other assets	$	57	$	7
Foreign exchange contracts	Accrued expenses	(18)		(21)
Cross currency contracts	Other assets	12		5
Cross currency contracts	Accrued expenses	—		(1)
		$	51	$	(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 September 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	$	1	Interest expense	$	(16)	$	137
Cross currency contracts	(64)		Other income (expense)	(63)		(10)
			Interest expense	8		137
	$	(63)		$	(71)
	Three Months Ended September 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	$	(12)	Interest expense	$	(3)	$	198
Cross currency contracts	100		Other income (expense)	89		(4)
			Interest expense	9		198
	$	88		$	95
	Nine Months Ended September 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	$	(23)	Interest expense	$	(40)	$	462
Cross currency contracts	2		Other income (expense)	(35)		(26)
			Interest expense	28		462
	$	(21)		$	(47)
	Nine Months Ended September 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	$	(72)	Interest expense	$	(2)	$	599
Cross currency contracts	132		Other income (expense)	91		(14)
			Interest expense	23		599
	$	60		$	112

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	2020		2019
Foreign exchange contracts	Other income (expense)	$	(74)	$	12
Cross currency contracts	Other income (expense)	1		3
		$	(73)	$	15
		Nine Months Ended September 30,
	Classification	2020		2019
Foreign exchange contracts	Other income (expense)	$	1	$	(26)
Cross currency contracts	Other income (expense)	11		2
		$	12	$	(24)

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)	September 30, 2020		December 31, 2019
Derivative Assets
Gross Amount of Recognized Assets	$	148	$	84
Gross Amounts Offset	—		—
Net Amount of Assets(1)	148		84
Gross Amounts Not Offset	(37)		(21)
Net Amount	$	111	$	63
Derivative Liabilities
Gross Amount of Recognized Liabilities	$	(69)	$	(50)
Gross Amounts Offset	—		—
Net Amount of Liabilities(1)	(69)		(50)
Gross Amounts Not Offset	37		21
Net Amount	$	(32)	$	(29)

(1) As presented in the Consolidated Statements of Financial Position.