XML 36 R24.htm IDEA: XBRL DOCUMENT v3.5.0.2
Hedges and Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2016
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Schedule of derivative instruments
The following table summarizes our outstanding derivative contracts and their effects on our Consolidated Condensed Balance Sheets at June 30, 2016 and December 31, 2015:
 
 
 
 
Fair Value of
 
Type 
of
Hedge(1)
 
 
 
 
Notional Amount
 
Hedge Assets
 
Hedge Liabilities
 
Maximum Term (Months)
Millions of dollars
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
 
 
2016
 
2015
Derivatives accounted for as hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forwards/options
 
$
955

 
$
886

 
$
26

 
$
31

 
$
21

 
$
8

 
(CF)
 
13
 
12
Commodity swaps/options
 
306

 
322

 
14

 
1

 
26

 
66

 
(CF)
 
33
 
33
Total derivatives accounted for as hedges
 
 
 
 
 
$
40

 
$
32

 
$
47

 
$
74

 
 
 
 
 
 
Derivatives not accounted for as hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forwards/options
 
$
2,028

 
$
2,886

 
$
19

 
$
22

 
$
33

 
$
21

 
N/A
 
11
 
11
Commodity swaps/options
 
1

 
7

 
—

 
—

 
—

 
1

 
N/A
 
8
 
6
Total derivatives not accounted for as hedges
 
 
 
 
 
19

 
22

 
33

 
22

 
 
 
 
 
 
Total derivatives
 
 
 
 
 
$
59

 
$
54

 
$
80

 
$
96

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
$
53

 
$
54

 
$
75

 
$
79

 
 
 
 
 
 
Noncurrent
 
 
 
 
 
6

 
—

 
5

 
17

 
 
 
 
 
 
Total derivatives
 
 
 
 
 
$
59

 
$
54

 
$
80

 
$
96

 
 
 
 
 
 

(1) Derivatives accounted for as hedges are considered cash flow (CF) hedges.
Schedule of effects of derivative instruments on consolidated statements of income
The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income for the three and six months ended as follows:
 
 
Three Months Ended June 30,
 
 
 
Gain (Loss)
Recognized in OCI
(Effective Portion)
 
Gain (Loss) Reclassified from
OCI into Earnings
(Effective Portion) (1)
 
Cash Flow Hedges - Millions of dollars
 
2016
 
2015
 
2016
 
2015
 
Foreign exchange
 
$
10

 
$
(20
)
 
$
3

 
$
13

(a)
Commodity swaps/options
 
9

 
(17
)
 
(8
)
 
(10
)
(a)
Interest rate derivatives
 
—

 
—

 
—

 
—

(b)
 
 
$
19

 
$
(37
)
 
$
(5
)
 
$
3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
 
 
 
 
 
 
Gain Recognized on Derivatives not
Accounted for as Hedges (2)
 
Derivatives not Accounted for as Hedges - Millions of dollars
 
 
 
 
 
2016
 
2015
 
Foreign exchange forwards/options
 
 
 
 
 
$
9

 
$
18

 
 
 
Six Months Ended June 30,
 
 
 
Gain (Loss)
Recognized in OCI
(Effective Portion)
 
Gain (Loss) Reclassified from
OCI into Earnings
(Effective Portion) (1)
 
Cash Flow Hedges - Millions of dollars
 
2016
 
2015
 
2016
 
2015
 
Foreign exchange
 
$
(6
)
 
$
10

 
$
12

 
$
24

(a)
Commodity swaps/options
 
21

 
(32
)
 
(24
)
 
(21
)
(a)
Interest rate derivatives
 
—

 
—

 
—

 
(1
)
(b)
 
 
$
15

 
$
(22
)
 
$
(12
)
 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
 
 
 
 
 
 
Gain Recognized on Derivatives not
Accounted for as Hedges (2)
 
Derivatives not Accounted for as Hedges - Millions of dollars
 
 
 
 
 
2016
 
2015
 
Foreign exchange forwards/options
 
 
 
 
 
$
(34
)
 
$
32

 

(1) Gains and losses reclassified from accumulated other comprehensive income (OCI) and recognized in income are recorded in (a) cost of products sold or (b) interest expense.
(2) Mark to market gains and losses recognized in income are recorded in interest and sundry income (expense).