Derivative Financial Instruments and Risk Management (Tables)

3 Months Ended

Mar. 31, 2023

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)
	March 31, 2023				December 31, 2022
	Assets1		Liabilities2		Assets1		Liabilities2
Designated derivatives
Foreign exchange contracts	$	244	$	(53)	$	305	$	(44)
Interest rate contracts	73		(94)		87		(113)
	$	317	$	(147)	$	392	$	(157)
Undesignated derivatives
Foreign exchange contracts	$	10	$	(62)	$	25	$	(42)
	$	10	$	(62)	$	25	$	(42)

(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 Gains (Losses) on derivatives instruments

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
	Three Months Ended March 31,
	2023		2022		2023		2022		2023		2022
Foreign exchange contracts	$	(34)	$	(79)	$	(33)	$	(27)	$	(50)	$	16
Interest rate contracts	(15)		6		(2)		56		14		(6)
	$	(49)	$	(73)	$	(35)	$	29	$	(36)	$	10

(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 amounts recorded in the Consolidated Statements of Financial Position related to cumulative basis adjustments for fair value hedges

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

(Millions of dollars)
	Carrying Value of the Hedged Liabilities				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Value of the Hedged Liabilities
	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Current maturities of long-term debt	$	194	$	—	$	(6)	$	—
Long-term debt	1,977		2,091		(77)		(112)
Total	$	2,171	$	2,091	$	(83)	$	(112)

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, 2023				December 31, 2022
	Assets		Liabilities		Assets		Liabilities
Gross amounts recognized	$	327	$	(209)	$	417	$	(199)
Financial instruments not offset	(91)		91		(108)		108
Net amount	$	236	$	(118)	$	309	$	(91)