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HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 9 Months Ended
Sep. 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 September 30, 2022 and December 31, 2021:
Notional (Local)Notional (USD)Current Maturity
Instrument2022202120222021
Foreign exchange forwards/optionsMXN — MXN 7,200 $— $352 N/A
The following table summarizes our outstanding derivative contracts and their effects in our Consolidated Condensed Balance Sheets at September 30, 2022 and December 31, 2021:
  Fair Value of 
Notional AmountHedge AssetsHedge LiabilitiesMaximum Term (Months)
Millions of dollars20222021202220212022202120222021
Derivatives accounted for as hedges(1)
Commodity swaps/options$230 $297 $14 $40 $39 $13 (CF)2621
Foreign exchange forwards/options(2)
2,045 2,872 112 91 16 64 (CF/NI)113122
Cross-currency swaps1,193 1,275 13 31 2 7 (CF)7786
Interest rate derivatives— 300 — — — 14 (CF)041
Total derivatives accounted for as hedges$139 $162 $57 $98 
Derivatives not accounted for as hedges
Commodity swaps/options$1 $2 $— $— $— $— N/A514
Foreign exchange forwards/options3,362 2,240 52 20 28 18 N/A1112
Total derivatives not accounted for as hedges52 20 28 18 
Total derivatives$191 $182 $85 $116 
Current$180 $170 $74 $93 
Noncurrent11 12 11 23 
Total derivatives$191 $182 $85 $116 
(1)Derivatives accounted for as hedges are considered either cash flow (CF) or net investment (NI) hedges.
(2)Foreign exchange forwards/options have decreased due to repayment of intercompany loans.
Schedule of Effects of Derivative Instruments on Consolidated Statements of Income (Loss)
The following tables summarize the effects of derivative instruments on our Consolidated Condensed Statements of Comprehensive Income (Loss) for the periods presented:
Three Months Ended September 30,
Gain (Loss)
Recognized in OCI
(Effective Portion ) (2)
Millions of dollars20222021
Cash flow hedges
     Commodity swaps/options$(20)$9 
     Foreign exchange forwards/options109 62 
     Cross-currency swaps(61)40 
     Interest rate derivatives4 1 
Net Investment hedges
     Foreign currency(8)7 
24 119 
Three Months Ended September 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 dollars20222021
Commodity swaps/options Cost of products sold$5 $21 
Foreign exchange forwards/optionsNet sales(1)(2)
Foreign exchange forwards/optionsCost of products sold(3)(9)
Foreign exchange forwards/optionsInterest and sundry (income) expense66 14 
Cross-currency swapsInterest and sundry (income) expense(62)37 
Interest rate derivativesInterest expense— — 
5 61 
Three Months Ended September 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 dollars20222021
Foreign exchange forwards/optionsInterest and sundry (income) expense$6 $38 
(3)Change in gain (loss) recognized in OCI (effective portion) for the three months ended September 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 $8 million and $(14) million for the three months ended September 30, 2022 and 2021, respectively. The tax impact of the net investment hedges was $2 million and $(2) million for the three months ended September 30, 2022 and 2021, respectively.
(4)Change in gain (loss) reclassified from OCI into earnings (effective portion) for the three months ended September 30, 2022 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year.
Nine Months Ended September 30,
Gain (Loss)
Recognized in OCI
(Effective Portion)(2)
 Millions of dollars20222021
Cash flow hedges
     Commodity swaps/options$(18)$63 
     Foreign exchange189 69 
     Cross-currency swaps37 84 
     Interest rate derivatives56 21 
Net investment hedges
     Foreign currency(26)4 
$238 $241 
Nine Months Ended September 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 dollars20222021
Commodity swaps/optionsCost of products sold$39 $50 
Foreign exchange forwards/optionsNet sales— — 
Foreign exchange forwards/optionsCost of products sold(19)(3)
Foreign exchange forwards/optionsInterest and sundry (income) expense162 43 
Cross-currency swapsInterest and sundry (income) expense53 88 
$235 $178 
Nine Months Ended September 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 dollars20222021
Foreign exchange forwards/optionsInterest and sundry (income) expense$1 $70 
(5)Change in gain (loss) recognized in OCI (effective portion) for the nine months ended September 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 $9 million and $(20) million for the nine months ended September 30, 2022 and 2021, respectively. The tax impact of the net investment hedges was $6 million and $(1) million for the nine months ended September 30, 2022 and 2021, respectively.
(6)Change in gain (loss) reclassified from OCI into earnings (effective portion) for the nine months ended September 30, 2022 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year.