Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Summary of basis swaps and cross-currency swaps [Table Text Block]

The following table summarizes our basis swaps outstanding:


			September 30, 2015
Millions of dollars, except		Expiration	Average		Notional		Fair
	expiration date and rates	Date	Interest Rate		Value		Value
Pay Euro		2016	(.22)%	$	500	$	5
Receive U.S. dollars			.33%

Pay Euro		2017	(.26)%		305		3
Receive U.S. dollars			.33%

Pay Euro		2018	(.27)%		139		2
Receive U.S. dollars			.33%

The following table summarizes our cross-currency swaps outstanding:

				September 30, 2015				December 31, 2014
Millions of dollars, except		Expiration	Average		Notional		Fair		Notional		Fair
	expiration date and rates	Date	Interest Rate		Value		Value		Value		Value
Pay Euro		2021	4.55%	$	1,000	$	133	$	1,000	$	19
Receive U.S. dollars			6.00%

Pay Euro		2024	4.37%		1,000		136		1,000		16
Receive U.S. dollars			5.75%

Pay Euro		2027	3.69%		300		7		- -		- -
Receive U.S. dollars			5.49%

Summary of available-for-sale securities [Table Text Block]

Available-for-Sale Securities―The following table summarizes the amortized cost, gross unrealized gains and losses, and fair value of available-for-sale securities measured on a recurring basis that are outstanding as of September 30, 2015 and December 31, 2014. Refer to Note 8 for additional information regarding the fair value of available-for-sale securities.

		September 30, 2015
				Gross		Gross
				Unrealized		Unrealized		Fair
Millions of dollars		Cost		Gains		Losses		Value
Commercial paper		$	1,039	$	1	$	- -	$	1,040
Bonds			213		- -		- -		213
Certificates of deposit			150		- -		(1)		149
Time deposit			200		- -		- -		200
	Total available-for-sale securities	$	1,602	$	1	$	(1)	$	1,602


		December 31, 2014
				Gross		Gross
				Unrealized		Unrealized		Fair
Millions of dollars		Cost		Gains		Losses		Value
Commercial paper		$	1,029	$	1	$	- -	$	1,030
Bonds			414		- -		(1)		413
Certificates of deposit			150		- -		- -		150
	Total available-for-sale securities	$	1,593	$	1	$	(1)	$	1,593

The proceeds from maturities and sales of our available-for-sale securities during the three and nine months ended September 30, 2015 and 2014 are summarized in the following table.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Millions of dollars	2015		2014		2015		2014
Proceeds from maturities of securities	$	622	$	652	$	1,437	$	924
Proceeds from sales of securities		19		- -		201		- -

The following table summarizes the fair value and unrealized losses related to available-for-sale securities that were in a continuous unrealized loss position for less than and greater than twelve months as of September 30, 2015 and December 31, 2014.

		September 30, 2015
		Less than 12 months				Greater than 12 months
		Fair		Unrealized		Fair		Unrealized
Millions of dollars		Value		Loss		Value		Loss
Commercial paper		$	95	$	- -	$	- -	$	- -
Bonds			123		- -		27		- -
Certificates of deposit			149		(1)		- -		- -
Time deposit			200		- -		- -		- -
	Total	$	567	$	(1)	$	27	$	- -


		December 31, 2014
		Less than 12 months				Greater than 12 months
		Fair		Unrealized		Fair		Unrealized
Millions of dollars		Value		Loss		Value		Loss
Commercial paper		$	45	$	- -	$	- -	$	- -
Bonds			294		(1)		- -		- -
Certificates of deposit			150		- -		- -		- -
	Total	$	489	$	(1)	$	- -	$	- -

Summary of fair value of outstanding financial instruments [Table Text Block]

Financial Instruments―The following table summarizes financial instruments outstanding as of September 30, 2015 and December 31, 2014 that are measured at fair value on a recurring basis. Refer to Note 8 for additional information regarding the fair value of financial instruments.


					September 30, 2015				December 31, 2014
				Balance Sheet	Notional		Fair		Notional		Fair
Millions of dollars				Classification	Amount		Value		Amount		Value
Assets–
	Derivatives designated as cash flow hedges:
		Cross-currency swaps		Other assets	$	2,300	$	258	$	2,000	$	30
		Cross-currency swaps		Prepaid expenses
				and other
				current assets		- -		18		- -		5
		Forward-starting		Other assets		600		5		- -		- -
			interest rate swaps

	Derivatives designated as fair value hedges:
		Fixed-for-floating		Other assets
			interest rate swaps			2,000		44		2,000		10
		Fixed-for-floating		Prepaid expenses
			interest rate swaps	and other
				current assets		- -		13		- -		6

	Derivatives not designated as hedges:
		Commodities		Prepaid expenses
				and other
				current assets		11		4		- -		2
		Embedded derivatives		Prepaid expenses
				and other
				current assets		76		11		77		3
		Foreign currency		Prepaid expenses
				and other
				current assets		48		- -		107		- -

	Non-derivatives:
		Available-for-sale		Short-term
			securities	investments		1,612		1,602		1,587		1,593
					$	6,647	$	1,955	$	5,771	$	1,649


					September 30, 2015				December 31, 2014
				Balance Sheet	Notional		Fair		Notional		Fair
Millions of dollars				Classification	Amount		Value		Amount		Value
Liabilities–
	Derivatives designated as net investment hedges:
		Basis swaps		Accrued liabilities	$	500	$	5	$	- -	$	- -
				Other liabilities		444		5		- -		- -

	Derivatives designated as cash flow hedges:
		Forward-starting		Other liabilities		400		8		- -		- -
			interest rate swaps

	Derivatives not designated as hedges:
		Commodities		Accrued liabilities		15		1		28		1
		Foreign currency		Accrued liabilities		372		7		680		13

	Non-derivatives:
		Performance share		Accrued liabilities
			awards			21		21		22		22
		Performance share		Other liabilities
			awards			14		14		14		14
					$	1,766	$	61	$	744	$	50

Summary of the pretax effect of derivative instruments charged directly to income [Table Text Block]

The following table summarizes the pretax effect of derivative instruments charged directly to income.

			Effect of Financial Instruments
			Three Months Ended September 30, 2015
					Gain (Loss)		Additional
			Gain (Loss)		Reclassified		Gain (Loss)
			Recognized		from AOCI		Recognized		Income Statement
Millions of dollars			in AOCI		to Income		in Income		Classification
Derivatives designated as net investment
	hedges:
		Basis swaps	$	(10)	$	- -	$	- -	Other income, net

Derivatives designated as cash-flow hedges:
		Cross-currency swaps		32		5		- -	Other income, net
		Forward-starting interest rate swaps		(68)		- -		(1)	Interest expense

Derivatives designated as fair value hedges:
		Fixed-for-floating interest rate swaps		- -		- -		31	Interest expense

Derivatives not designated as hedges:
		Commodities		- -		- -		(12)	Sales and other
									operating revenues
		Commodities		- -		- -		11	Cost of sales
		Embedded derivatives		- -		- -		3	Cost of sales
		Foreign currency		- -		- -		(4)	Other income, net
			$	(46)	$	5	$	28


			Three Months Ended September 30, 2014
					Gain (Loss)		Additional
			Gain (Loss)		Reclassified		Gain (Loss)
			Recognized		from AOCI		Recognized		Income Statement
Millions of dollars			in AOCI		to Income		in Income		Classification
Derivatives designated as fair value hedges:
		Fixed-for-floating interest rate swaps	$	- -	$	- -	$	(3)	Interest expense
Derivatives not designated as hedges:
		Commodities		- -		- -		(3)	Cost of sales
		Embedded derivatives		- -		- -		6	Cost of sales
		Foreign currency		- -		- -		(42)	Other income, net
			$	- -	$	- -	$	(42)

			Effect of Financial Instruments
			Nine Months Ended September 30, 2015
					Gain (Loss)		Additional
			Gain (Loss)		Reclassified		Gain (Loss)
			Recognized		from AOCI		Recognized		Income Statement
Millions of dollars			in AOCI		to Income		in Income		Classification
Derivatives designated as net investment
	hedges:
		Basis swaps	$	(10)	$	- -	$	- -	Other income, net

Derivatives designated as cash-flow hedges:
		Cross-currency swaps		229		(148)		- -	Other income, net
		Forward-starting interest rate swaps		12		- -		- -	Interest expense

Derivatives designated as fair value hedges:
		Fixed-for-floating interest rate swaps		- -		- -		56	Interest expense

Derivatives not designated as hedges:
		Commodities		- -		- -		(3)	Sales and other
									operating revenues
		Commodities		- -		- -		20	Cost of sales
		Embedded derivatives		- -		- -		10	Cost of sales
		Foreign currency		- -		- -		(63)	Other income, net
			$	231	$	(148)	$	20


			Nine Months Ended September 30, 2014
					Gain (Loss)		Additional
			Gain (Loss)		Reclassified		Gain (Loss)
			Recognized		from AOCI		Recognized		Income Statement
Millions of dollars			in AOCI		to Income		in Income		Classification
Derivatives designated as cash-flow hedges:
		Forward-starting interest rate swaps	$	(17)	$	- -	$	(1)	Interest expense

Derivatives designated as fair value hedges:
		Fixed-for-floating interest rate swaps		- -		- -		(3)	Interest expense

Derivatives not designated as hedges:
		Commodities		- -		- -		4	Cost of sales
		Embedded derivatives		- -		- -		1	Cost of sales
		Foreign currency		- -		- -		(37)	Other income, net
			$	(17)	$	- -	$	(36)

The pretax effect of additional gain (loss) recognized in income for the fixed-for-floating interest rate swaps includes the net value for accrued interest of $7 million and $22 million for the three and nine months ended September 30, 2015, respectively, and $4 million for each of the three and nine months ended September 30, 2014.

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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+ Details