Financial Instruments (Tables)
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9 Months Ended |
Sep. 30, 2020 |
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| Financial Instruments [Abstract] |
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| Schedule of Long-term Debt Instruments |
The components of our long-term debt are as follows: | | | | | | | | | | | | | | | | | September 30, | | December 31, | | (MILLIONS OF DOLLARS) | | 2020 | | 2019 | 3.450% 2015 senior notes due 2020 | | $ | 500 | | | $ | 500 | | 2018 floating rate (three-month USD LIBOR plus 0.44%) senior notes due 2021 | | 300 | | | 300 | | 3.250% 2018 senior notes due 2021 | | 300 | | | 300 | | 3.250% 2013 senior notes due 2023 | | 1,350 | | | 1,350 | | 4.500% 2015 senior notes due 2025 | | 750 | | | 750 | | 3.000% 2017 senior notes due 2027 | | 750 | | | 750 | | 3.900% 2018 senior notes due 2028 | | 500 | | | 500 | | 2.000% 2020 senior notes due 2030 | | 750 | | | — | | 4.700% 2013 senior notes due 2043 | | 1,150 | | | 1,150 | | 3.950% 2017 senior notes due 2047 | | 500 | | | 500 | | 4.450% 2018 senior notes due 2048 | | 400 | | | 400 | | 3.000% 2020 senior notes due 2050 | | 500 | | | — | | | | 7,750 | | | 6,500 | | | Unamortized debt discount / debt issuance costs | | (68) | | | (51) | | | Less current portion of long-term debt | | 1,100 | | | 500 | | | Cumulative fair value adjustment for interest rate swap contracts | | 13 | | | (2) | | | Long-term debt, net of discount and issuance costs | | $ | 6,595 | | | $ | 5,947 | |
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| Schedule of Maturities of Long-term Debt |
The principal amount of long-term debt outstanding, as of September 30, 2020, matures in the following years: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | After | | | | (MILLIONS OF DOLLARS) | | 2020 | | 2021 | | 2022 | | 2023 | | 2024 | | 2024 | | Total | | Maturities | | $ | 500 | | | $ | 600 | | | $ | — | | | $ | 1,350 | | | $ | — | | | $ | 5,300 | | | $ | 7,750 | |
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| Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
The classification and fair values of derivative instruments are as follows: | | | | | | | | | | | | | | | | | Fair Value of Derivatives | | | September 30, | | December 31, | | (MILLIONS OF DOLLARS) | Balance Sheet Location | 2020 | | 2019 | | Derivatives Not Designated as Hedging Instruments | | | | | | Foreign currency forward-exchange contracts | Other current assets | $ | 8 | | | $ | 7 | | | Foreign currency forward-exchange contracts | Other current liabilities | (14) | | | (5) | | | Total derivatives not designated as hedging instruments | | $ | (6) | | | $ | 2 | | | | | | | | Derivatives Designated as Hedging Instruments: | | | | | | Forward-starting interest rate swap contracts | Other noncurrent assets | $ | 2 | | | $ | 5 | | | Forward-starting interest rate swap contracts | Other noncurrent liabilities | (28) | | | (1) | | | Cross-currency interest rate swap contracts | Other current assets | 8 | | | 4 | | | Cross-currency interest rate swap contracts | Other noncurrent assets | 15 | | | 20 | | | Cross-currency interest rate swap contracts | Other current liabilities | (11) | | | (3) | | | Fixed-to-floating interest rate swap contracts | Other noncurrent assets | 13 | | | — | | | Fixed-to-floating interest rate swap contracts | Other noncurrent liabilities | — | | | (2) | | | Total derivatives designated as hedging instruments | | (1) | | | 23 | | | Total derivatives | | $ | (7) | | | $ | 25 | |
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| Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location |
The amounts of net gains on derivative instruments not designated as hedging instruments, recorded in Other (income)/deductions—net, are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | (MILLIONS OF DOLLARS) | | 2020 | | 2019 | | 2020 | | 2019 | | Foreign currency forward-exchange contracts | | $ | — | | | $ | 1 | | | $ | 10 | | | $ | 5 | |
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| Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) |
The amounts of unrecognized net gains/(losses) on interest rate swap contracts, recorded, net of tax, in Accumulated other comprehensive income/(loss), are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | (MILLIONS OF DOLLARS) | | 2020 | | 2019 | | 2020 | | 2019 | | Forward-starting interest rate swap contracts | | $ | 5 | | | $ | (4) | | | $ | (22) | | | $ | (4) | | | Cross-currency interest rate swap contracts | | $ | (30) | | | $ | 23 | | | $ | (27) | | | $ | 28 | |
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| Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, Location |
Gains on cross-currency interest rate swap contracts, recognized within Interest expense, net of capitalized interest, are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | (MILLIONS OF DOLLARS) | | 2020 | | 2019 | | 2020 | | 2019 | | Cross-currency interest rate swap contracts | | $ | 4 | | | $ | 5 | | | $ | 14 | | | $ | 13 | | | | | | | | | | | | | | | | | | | |
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| Schedule of Derivative Instruments |
The aggregate notional amounts of derivative instruments are as follows: | | | | | | | | | | | | | | | | | Notional | | | September 30, | | December 31, | | (MILLIONS) | | 2020 | | 2019 | | Foreign currency forward-exchange contracts | | $ | 1,706 | | | $ | 1,364 | | | | | | | | Cross-currency interest rate swap contracts (in foreign currency): | | | | | | euro | | 650 | | | 650 | | | Swiss franc | | 25 | | | 25 | | | Danish krone | | 600 | | | 600 | | | | | | | | Forward-starting interest rate swaps | | $ | 550 | | | $ | 250 | | | | | | | | Fixed-to-floating interest rate swap contracts | | $ | 150 | | | $ | 150 | | | | | | |
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