HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following table summarizes our outstanding derivative contracts and their effects in our Consolidated Condensed Balance Sheets at June 30, 2023 and December 31, 2022. Hedge assets and liabilities of our European major domestic appliance business have been classified as held for sale and are excluded from the table below.

					Fair Value of
	Notional Amount				Hedge Assets				Hedge Liabilities					Maximum Term (Months)
Millions of dollars	2023		2022		2023		2022		2023		2022			2023	2022
Derivatives accounted for as hedges(1)
Commodity swaps/options	$	225	$	170	$	1	$	7	$	27	$	17	(CF)	22	24
Foreign exchange forwards/options	1,131		998		4		24		49		20		(CF/NI)	15	15
Cross-currency swaps	618		618		4		5		62		42		(CF)	68	74
Total derivatives accounted for as hedges					$	9	$	36	$	138	$	79
Derivatives not accounted for as hedges
Commodity swaps/options	$	—	$	1	$	—	$	—	$	—	$	—	N/A	0	0
Foreign exchange forwards/options	394		439		1		5		1		6		N/A	5	5
Total derivatives not accounted for as hedges					1		5		1		6
Total derivatives					$	10	$	41	$	139	$	85
Current					$	10	$	40	$	71	$	41
Noncurrent					—		1		68		44
Total derivatives					$	10	$	41	$	139	$	85

(1)Derivatives accounted for as hedges are considered cash flow (CF) 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		2023		2022
Cash flow hedges
Commodity swaps/options		$	(22)	$	(37)
Foreign exchange forwards/options		(43)		123
Cross-currency swaps		(19)		89
Interest rate derivatives		1		29
Net Investment hedges
Foreign currency		—		(2)
		$	(83)	$	202
		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		2023		2022
Commodity swaps/options	Cost of products sold	$	(5)	$	16
Foreign exchange forwards/options	Net sales	(1)		1
Foreign exchange forwards/options	Cost of products sold	(7)		(11)
Foreign exchange forwards/options	Interest and sundry (income) expense	9		67
Cross-currency swaps	Interest and sundry (income) expense	(5)		75
Interest rate derivatives	Interest expense	1		—
		$	(8)	$	148
		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		2023		2022
Foreign exchange forwards/options	Interest and sundry (income) expense	$	14	$	11

(2)Change in gain (loss) recognized in OCI (effective portion) for the three months ended June 30, 2023 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 $(18) million for the three months ended June 30, 2023 and 2022, respectively. The tax impact of the net investment hedges was $0 million and $1 million for the three months ended June 30, 2023 and 2022, respectively.

(3)Change in gain (loss) reclassified from OCI into earnings (effective portion) for the three months ended June 30, 2023 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 ) (4)
Millions of dollars		2023		2022
Cash flow hedges
Commodity swaps/options		$	(22)	$	2
Foreign exchange forwards/options		(63)		80
Cross-currency swaps		(20)		98
Interest rate derivatives		—		52
Net Investment hedges
Foreign currency		—		(18)
		$	(105)	$	214
		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)(5)
Cash Flow Hedges - Millions of dollars		2023		2022
Commodity swaps/options	Cost of products sold	$	(5)	$	34
Foreign exchange forwards/options	Net sales	(1)		1
Foreign exchange forwards/options	Cost of products sold	(15)		(16)
Foreign exchange forwards/options	Interest and sundry (income) expense	18		96
Cross-currency swaps	Interest and sundry (income) expense	(12)		116
Interest rate derivatives	Interest expense	1		—
		$	(14)	$	231
		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		2023		2022
Foreign exchange forwards/options	Interest and sundry (income) expense	$	27	$	(5)

(4)Change in gain (loss) recognized in OCI (effective portion) for the six months ended June 30, 2023 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 $23 million and $1 million for the six months ended June 30, 2023 and 2022, respectively. The tax impact of the net investment hedges was $0 million and $4 million for the six months ended June 30, 2023 and 2022, respectively.

(5)Change in gain (loss) reclassified from OCI into earnings (effective portion) for the six months ended June 30, 2023 was primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year.