Derivative Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 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 as of December 31, were as follows:

(Millions of dollars)	2023				2022
	Assets1		Liabilities2		Assets1		Liabilities2
Designated derivatives
Foreign exchange contracts	$	207	$	(73)	$	305	$	(44)
Interest rate contracts	50		(68)		87		(113)
	$	257	$	(141)	$	392	$	(157)
Undesignated derivatives
Foreign exchange contracts	$	28	$	(79)	$	25	$	(42)
	$	28	$	(79)	$	25	$	(42)

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

(2) Liabilities are classified in 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 for the years ended December 31, 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
	2023		2022		2021		2023		2022		2021		2023		2022		2021
Foreign exchange contracts	$	(39)	$	(111)	$	89	$	(22)	$	310	$	190	$	(68)	$	370	$	194
Interest rate contracts	(75)		(7)		24		9		111		19		58		14		(28)
	$	(114)	$	(118)	$	113	$	(13)	$	421	$	209	$	(10)	$	384	$	166

(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 as of December 31:

(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
	2023		2022		2023		2022
Current maturities of long-term debt	$	982	$	—	$	(23)	$	—
Long-term debt	2,128		2,091		(23)		(112)
Total	$	3,110	$	2,091	$	(46)	$	(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 as of December 31, was as follows:

(Millions of dollars)	2023				2022
	Assets		Liabilities		Assets		Liabilities
Gross amounts recognized	$	285	$	(220)	$	417	$	(199)
Financial instruments not offset	(106)		106		(108)		108
Net amount	$	179	$	(114)	$	309	$	(91)