HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table summarizes our foreign currency denominated debt and foreign exchange forwards/options designated as net investment hedges at June 30, 2022 and December 31, 2021:

	Notional (Local)				Notional (USD)				Current Maturity
Instrument	2022		2021		2022		2021
Foreign exchange forwards/options	MXN	7,200	MXN	7,200	$	358	$	352	August 2022

The following table summarizes our outstanding derivative contracts and their effects in our Consolidated Condensed Balance Sheets at June 30, 2022 and December 31, 2021:

					Fair Value of
	Notional Amount				Hedge Assets				Hedge Liabilities					Maximum Term (Months)
Millions of dollars	2022		2021		2022		2021		2022		2021			2022	2021
Derivatives accounted for as hedges(1)
Commodity swaps/options	$	319	$	297	$	27	$	40	$	30	$	13	(CF)	29	21
Foreign exchange forwards/options	2,843		2,872		170		91		91		64		(CF/NI)	116	122
Cross-currency swaps	1,275		1,275		113		31		—		7		(CF)	80	86
Interest rate derivatives	175		300		26		—		—		14		(CF)	35	41
Total derivatives accounted for as hedges					$	336	$	162	$	121	$	98
Derivatives not accounted for as hedges
Commodity swaps/options	$	1	$	2	$	—	$	—	$	—	$	—	N/A	8	14
Foreign exchange forwards/options	2,763		2,240		47		20		18		18		N/A	6	12
Total derivatives not accounted for as hedges					47		20		18		18
Total derivatives					$	383	$	182	$	139	$	116
Current					$	245	$	170	$	130	$	93
Noncurrent					138		12		9		23
Total derivatives					$	383	$	182	$	139	$	116

(1)Derivatives accounted for as hedges are considered either cash flow (CF) or net investment (NI) hedges.

Schedule of Effects of Derivative Instruments on Consolidated Statements of Income (Loss)

The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income (Loss) for the periods presented:

		Three Months Ended June 30,
		Gain (Loss) Recognized in OCI (Effective Portion ) (2)
Millions of dollars		2022		2021
Cash flow hedges
Commodity swaps/options		$	(37)	$	28
Foreign exchange forwards/options		123		(41)
Cross-currency swaps		89		12
Interest rate derivatives		29		(26)
Net Investment hedges
Foreign currency		(2)		(10)
		202		(37)
		Three Months Ended June 30,
	Location of Gain (Loss) Reclassified from OCI into Earnings (Effective Portion)	Gain (Loss) Reclassified from OCI into Earnings (Effective Portion)(3)
Cash Flow Hedges - Millions of dollars		2022		2021
Commodity swaps/options	Cost of products sold	$	16	$	18
Foreign exchange forwards/options	Net sales	1		(1)
Foreign exchange forwards/options	Cost of products sold	(11)		(3)
Foreign exchange forwards/options	Interest and sundry (income) expense	67		(15)
Cross-currency swaps	Interest and sundry (income) expense	75		(8)
Interest rate derivatives	Interest expense	—		—
		148		(9)
		Three Months Ended June 30,
	Location of Gain (Loss) Recognized on Derivatives not Accounted for as Hedges	Gain (Loss) Recognized on Derivatives not Accounted for as Hedges
Derivatives not Accounted for as Hedges - Millions of dollars		2022		2021
Foreign exchange forwards/options	Interest and sundry (income) expense	$	11	$	(47)

(2)Change in gain (loss) recognized in OCI (effective portion) for the three months ended June 30, 2022 is primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. The tax impact of the cash flow hedges was $(18) million and $6 million for the three months ended June 30, 2022 and 2021, respectively. The tax impact of the net investment hedges was $1 million and $5 million for the three months ended June 30, 2022 and 2021, respectively.

(3)Change in gain (loss) reclassified from OCI into earnings (effective portion) for the three months ended June 30, 2022 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year.

		Six Months Ended June 30,
		Gain (Loss) Recognized in OCI (Effective Portion)(2)
Millions of dollars		2022		2021
Cash flow hedges
Commodity swaps/options		$	2	$	54
Foreign exchange		80		7
Cross-currency swaps		98		44
Interest rate derivatives		52		20
Net investment hedges
Foreign currency		(18)		(3)
		$	214	$	122
		Six Months Ended June 30,
	Location of Gain (Loss) Reclassified from OCI into Earnings (Effective Portion)	Gain (Loss) Reclassified from OCI into Earnings (Effective Portion)(3)
Cash Flow Hedges - Millions of dollars		2022		2021
Commodity swaps/options	Cost of products sold	$	34	$	29
Foreign exchange forwards/options	Net sales	1		2
Foreign exchange forwards/options	Cost of products sold	(16)		6
Foreign exchange forwards/options	Interest and sundry (income) expense	96		29
Cross-currency swaps	Interest and sundry (income) expense	116		51
		$	231	$	117
		Six Months Ended June 30,
	Location of Gain (Loss) Recognized on Derivatives not Accounted for as Hedges	Gain (Loss) Recognized on Derivatives not Accounted for as Hedges
Derivatives not Accounted for as Hedges - Millions of dollars		2022		2021
Foreign exchange forwards/options	Interest and sundry (income) expense	$	(5)	$	32

(4)Change in gain (loss) recognized in OCI (effective portion) for the six months ended June 30, 2022 is primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year. The tax impact of the cash flow hedges was $1 million and $(6) million for the six months ended June 30, 2022 and 2021, respectively. The tax impact of the net investment hedges was $4 million and $(1) million for the six months ended June 30, 2022 and 2021, respectively.

(5)Change in gain (loss) reclassified from OCI into earnings (effective portion) for the six months ended June 30, 2022 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year.