Derivative Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2022

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)
	December 31, 2022				December 31, 2021
	Assets1		Liabilities2		Assets1		Liabilities2
Designated derivatives
Foreign exchange contracts	$	305	$	(44)	$	142	$	(32)
Interest rate contracts	87		(113)		38		(15)
	$	392	$	(157)	$	180	$	(47)
Undesignated derivatives
Foreign exchange contracts	$	25	$	(42)	$	28	$	(36)
	$	25	$	(42)	$	28	$	(36)

(1) Assets are classified on the Consolidated Statements of Financial Position as Other assets.

(2) Liabilities are classified on the Consolidated Statements of Financial Position as Accrued expenses.

Schedule of effect of derivatives designated as cash flow hedging instruments on the Consolidated Statements of Profit

Gains (Losses) on derivative instruments are categorized as follows:

(Millions of dollars)
	Fair Value / Undesignated Hedges						Cash Flow Hedges
	Gains (Losses) Recognized1						Gains (Losses) Recognized in AOCI						Gains (Losses) Reclassified from AOCI2
	Year Ended December 31,
	2022		2021		2020		2022		2021		2020		2022		2021		2020
Foreign exchange contracts	$	(111)	$	89	$	(112)	$	310	$	190	$	(130)	$	370	$	194	$	(132)
Interest rate contracts	(7)		24		15		111		19		(23)		14		(28)		(52)
	$	(118)	$	113	$	(97)	$	421	$	209	$	(153)	$	384	$	166	$	(184)

(1) Foreign exchange contract gains (losses) are primarily from undesignated forward contracts and are included in Other income (expense). Interest rate contract gains (losses) are from designated fair value hedges and are included in Interest expense.

(2) Foreign exchange contract gains (losses) are primarily included in Other income (expense). Interest rate contract gains (losses) are included in Interest expense.

Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The following amounts were recorded in the Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges:

(Millions of dollars)
	Carry Value of the Hedged Liabilities				Cumulative Amount of Fair Value  Hedging Adjustment Included in the Carrying Value of the Hedged  Liabilities
	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Current maturities of long-term debt	$	—	$	755	$	—	$	5
Long-term debt	2,091		1,304		(112)		(2)
Total	$	2,091	$	2,059	$	(112)	$	3

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)
	December 31, 2022				December 31, 2021
	Assets		Liabilities		Assets		Liabilities
Gross amounts recognized	$	417	$	(199)	$	208	$	(83)
Financial instruments not offset	(108)		108		(67)		67
Net amount	$	309	$	(91)	$	141	$	(16)