Derivatives and Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2020

Derivatives and Fair Value of Financial Instruments

Schedule of assets and liabilities measured at fair value on a recurring basis

	December 31,
(Millions of dollars)	2020		Level 1		Level 2		Level 3
Assets:
Trading securities – short-term investments:
Domestic equity securities	$	702	$	702	$	—	$	—
Domestic debt securities		496		196		300		—
Foreign equity securities		133		133		—		—
Foreign debt securities		68		—		68		—
Money market funds held in trading accounts		47		47		—		—
Other trading securities		20		3		17		—
Trading securities – other current assets:
Domestic equity securities		14		14		—		—
Money market funds held in trading accounts		6		6		—		—
Foreign equity securities		3		3		—		—
Fixed income mutual funds		3		2		1		—
Long-term investment		31		—		—		31
Derivatives:
Commodities		28		28		—		—
Interest rate swaps		1		—		1		—
Total assets	$	1,552	$	1,134	$	387	$	31
Liabilities:
Trading securities – short-term investments:
Other trading securities	$	1	$	—	$	1	$	—
Contingent consideration		16		—		—		16
Derivatives:
Commodities		19		19		—		—
Foreign currencies		9		—		9		—
Total liabilities	$	45	$	19	$	10	$	16

	December 31,
(Millions of dollars)	2019		Level 1		Level 2		Level 3
Assets:
Trading securities – short-term investments:
Domestic equity securities	$	706	$	706	$	—	$	—
Domestic debt securities		460		127		333		—
Foreign equity securities		189		189		—		—
Foreign debt securities		48		—		48		—
Money market funds held in trading accounts		12		12		—		—
Other trading securities		19		4		15		—
Trading securities – other current assets:
Domestic equity securities		40		40		—		—
Money market funds held in trading accounts		6		6		—		—
Foreign equity securities		3		3		—		—
Fixed income securities		2		2		—		—
Derivatives:
Commodities		6		6		—		—
Total assets	$	1,491	$	1,095	$	396	$	—
Liabilities:
Contingent consideration	$	13	$	—	$	—	$	13
Derivatives:
Commodities		4		4		—		—
Foreign currencies		3		—		3		—
Total liabilities	$	20	$	4	$	3	$	13

Schedule of gain or (loss) recognized for each type of derivative and its location in the consolidated statements of comprehensive income

(Millions of dollars)		2020		2019
Commodities	Cost of sales	$	55	$	(52)
Foreign currencies	Cost of sales		11		1
Foreign currencies	Foreign currency gains (losses), net		(5)		(1)
Equity	Other investment income (loss), net		—		(4)
Interest rate swaps	Interest expense		—		—

Schedule of fair value of each type of derivative and its location in the consolidated balance sheets

		Asset Derivatives					Liability Derivatives
		December 31,		December 31,			December 31,		December 31,
(Millions of dollars)		2020		2019			2020		2019
Commodities	Other current assets	$	28	$	6	Other current liabilities	$	19	$	4
Foreign currencies	Other current assets		—		—	Other current liabilities		9		3
Interest rate swaps	Other current assets		1		—	Other current liabilities		—		—
Equity	Short-term investments		—		—	Short-term investments		—		—