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Hedges and Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2018
General Discussion of Derivative Instruments and Hedging Activities [Abstract]  
Schedule of Derivative Instruments
The following tables summarize our outstanding derivative contracts and their effects on our Consolidated Balance Sheets at December 31, 2018 and 2017:
 
 
 
 
Fair Value of
 
Type of
Hedge (1)
 
 
 
 
Notional Amount
 
Hedge Assets
 
Hedge Liabilities
 
Maximum Term (Months)
Millions of dollars
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
 
2018
 
2017
Derivatives accounted for as hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forwards/options
 
$
3,126

 
$
3,113

 
$
49

 
$
55

 
$
48

 
$
157

 
(CF/NI)
 
44
 
56
Commodity swaps/options
 
216

 
269

 
1

 
29

 
27

 
1

 
(CF)
 
30
 
36
Total derivatives accounted for as hedges
 
 
 
 
 
$
50

 
$
84

 
$
75

 
$
158

 
 
 
 
 
 
Derivatives not accounted for as hedges
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forwards/options
 
$
4,382

 
$
3,390

 
$
27

 
$
58

 
$
69

 
$
50

 
N/A
 
21
 
33
Commodity swaps/options
 
3

 
1

 
—

 
—

 
—

 
—

 
N/A
 
0
 
5
Total derivatives not accounted for as hedges
 
 
 
 
 
27

 
58

 
69

 
50

 
 
 
 
 
 
Total derivatives
 
 
 
 
 
$
77

 
$
142

 
$
144

 
$
208

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
$
60

 
$
89

 
$
95

 
$
81

 
 
 
 
 
 
Noncurrent
 
 
 
 
 
17

 
53

 
49

 
127

 
 
 
 
 
 
Total derivatives
 
 
 
 
 
$
77

 
$
142

 
$
144

 
$
208

 
 
 
 
 
 

(1) Derivatives accounted for as hedges are considered either cash flow (CF) or net investment (NI) hedges.
 
 
Notional (local)
 
Notional (USD)
 
Current Maturity
Instrument
 
2018
2017
 
2018
2017
 
 
Senior note - 0.625%
 
€
500

€
500

 
$
573

$
600

 
March 2020
Commercial Paper
 
€
—

€
150

 
$
—

$
180

 

Foreign exchange forwards/options
 
MXN 7,200

MXN 7,200

 
$
366

$
366

 
August 2022
Schedule of Effects of Derivative Instruments on Consolidated Statements of Income
The effects of derivative instruments on our Consolidated Statements of Income (Loss) and Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2018 and 2017 are as follows:
 
 
Gain (Loss)
Recognized in OCI
(Effective Portion) (1)
 
Gain (Loss)
Reclassified from
OCI into Income
(Effective Portion) (2)
 
 
Cash Flow Hedges - Millions of dollars
 
2018
 
2017
 
2018
 
2017
 
 
Foreign exchange forwards/options
 
$
131


$
(178
)

$
86


$
(122
)
 
(a)
Commodity swaps/options
 
(51
)

64


22


43

 
(a)
Interest rate derivatives
 
(3
)

—


(1
)

(1
)
 
(b)
Net Investment Hedges
 
 
 
 
 
 
 
 
 
 
Foreign currency
 
23

 
(82
)
 
—

 
—

 
 
 
 
$
100

 
$
(196
)
 
$
107

 
$
(80
)
 
 
 
 
Gain (Loss) Recognized on Derivatives not
Accounted for as Hedges (3)
Derivatives not Accounted for as Hedges - Millions of dollars
 
2018
 
2017
Foreign exchange forwards/options
 
$
99


$
(40
)
(1) The tax impact of the cash flow hedges was $7 million and $9 million in 2018 and 2017, respectively. The tax impact of the net investment hedges was $15 million and $33 million in 2018 and 2017, respectively.
(2)  
Gains and losses reclassified from accumulated OCI and recognized in income are recorded in (a) cost of products sold, (b) interest expense or (c) interest and sundry (income) expense.
(3) Mark to market gains and losses recognized in income are recorded in interest and sundry (income) expense.