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Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2012
Financial Instruments (Tables) [Abstract]  
Derivative Instruments Fair Value and Notional Amounts Table

The following table is a summary of the notional amount and fair value of derivatives outstanding at March 31, 2012 and December 31, 2011:

      Fair Value
(Millions of dollars)Notional Amounts Assets Liabilities
  March 31, 2012 December 31, 2011 March 31, 2012 December 31, 2011 March 31, 2012 December 31, 2011
Derivatives Not Designated as Hedging Instruments:           
Currency contracts:           
 Balance sheet items (a)$ 1,873 $ 1,541 $ 1 $ 2 $ 1 $ 2
Derivatives Designated as Hedging Instruments:           
Currency contracts:           
 Forecasted purchases (a)$ 35 $ 59 $ - $ - $ - $ 2
Interest rate contracts:           
 Interest rate swaps (b) 400  400  31  35  - -
 Total$ 435 $ 459 $ 31 $ 35 $ - $ 2
             
 Total Derivatives$ 2,308 $ 2,000 $ 32 $ 37 $ 1 $ 4
             
(a) Assets are recorded in prepaid and other current assets, and liabilities are recorded in other current liabilities.
(b) Assets are recorded in long term assets.
Schedule of Terminated Interest Rate Swaps

The following table summarizes information related to terminated interest rate swap contracts:

 

       Amount of Gain Recognized in Earnings (a) Unrecognized Gain (a)
   Year Original March 31, March 31, March 31, December 31,
(Millions of Dollars)Terminated Gain 2012 2011 2012 2011
              
Interest Rate Swaps           
Underlying debt instrument (b):           
 $500 million 2.125% fixed-rate notes that mature in 20132011 $ 18 $ 2 $ - $ 11 $ 13
 $400 million 1.75% fixed-rate notes that mature in 20122010  13  2  1  3  5
 $500 million 6.375% fixed-rate notes that mature in 20122002  47  1  1  -  1
 Total  $ 78 $ 5 $ 2 $ 14 $ 19
 
 
(a) The unrecognized gain for terminated interest rate swaps is shown as an increase to long-term debt and will be recognized on a straight line basis to interest expense - net over the term of the underlying debt agreements. Upon settlement of the underlying interest rate contract, the cash received is reflected within the Noncontrolling interest transactions and other in the financing section of the consolidated statement of cash flows.
              
(b) The notional amounts of the interest rate contracts are equal to the underlying debt instruments.
Schedule OfTreasury Rate Lock Contracts Table Text Block
Terminated Treasury Rate Locks       
          
The following table summarizes the unrecognized gains (losses) related to terminated treasury rate lock contracts:
          
       Unrecognized Gain / (Loss) (a)
   Year Original March 31, December 31,
(Millions of Dollars)Terminated Gain / (Loss) 2012 2011
Treasury Rate Locks       
Underlying debt instrument:       
 $500 million 3.000% fixed-rate notes that mature in 2021 (b)2011 $ (11) $ (11) $ (11)
 $600 million 4.50% fixed-rate notes that mature in 2019 (b)2009 16 12 12
 $500 million 4.625% fixed-rate notes that mature in 2015 (b)2008  (7)  (3)  (3)
 Total - pre-tax    $ (2) $ (2)
  Less: income taxes     1  1
 After- tax amounts    $ (1) $ (1)
          
(a) The unrecognized gains / (losses) for the treasury rate locks are shown in accumulated other comprehensive income ("AOCI") and will be recognized on a straight line basis to interest expense – net over the term of the underlying debt agreements. Upon settlement of the treasury rate lock contracts, the cash received or paid is reflected within the noncontrolling interest transactions and other in the financing section of the consolidated statement of cash flows. Refer to the table below summarizing the impact of the company's consolidated statements of income and AOCI for current period gain (loss) recognition.
(b) The notional amount of the treasury rate lock contracts are equal to the underlying debt instrument with the exception of the treasury rate lock contract entered into to hedge the $600 million 4.50% fixed-rate notes that mature in 2019. The notional amount of this contract was $500 million.
Schedule of Derivative Instruments Not Designated as Hedging Instruments Table
The following table summarizes the impacts of the company's derivatives on the condensed consolidated statements of income and AOCI:
    Amount of Pre-Tax Gain (Loss) Recognized in Earnings (a)
(Millions of dollars)Quarter Ended March 31,
    2012 2011
Derivatives Not Designated as Hedging Instruments   
Currency contracts:   
 Balance sheet items   
  Debt-related$ 37 $ (6)
  Other balance sheet items (2)  3
 Anticipated net income (4)  (4)
  Total $ 31 $ (7)

(a) The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities. The gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt items are recorded in the consolidated statements of income as interest expense-net. Other balance sheet items and anticipated net income gains (losses) are recorded in the consolidated statements of income as other income (expenses)-net.

 
Schedule of Derivative Instruments Designated As Hedging Instruments Table
(millions of dollars)Amount of Gain (Loss) Recognized in AOCI (b) Amount of Gain (Loss) Reclassified from AOCI to the Consolidated Statement of Income (c) Net Change in AOCI
  March 31, March 31, March 31, March 31, March 31, March 31,
 2012 2011 2012 2011 2012 2011
Derivatives Designated as Hedging Instruments           
Currency contracts:           
 Forecasted purchases (b)$ 2 $ - $ - $ - $ 2 $ -
  Less: income taxes (1)  -  -  -  (1)  -
 Total - Net of Taxes$ 1 $ - $ - $ - $ 1 $ -

(b) The gains (losses) on forecasted purchase and treasury rate locks are recorded as a component of AOCI within derivative instruments in the consolidated statements of equity. There was no ineffectiveness for these instruments during 2012 or 2011.

 

(c) The gains (losses) on forecasted purchases are reclassified to the depreciation and amortization expense on a straight-line basis consistent with the useful life of the underlying asset. The gains (losses) for interest rate contracts are reclassified to earnings as interest expense –net on a straight-line basis over the remaining maturity of the underlying debt. Net gains (losses) of $1 million are expected to be reclassified to earning during the next twelve months.