| Financial Instruments [Text Block] | 7. Financial Instruments Cash Concentration ― Our cash equivalents are placed in high-quality commercial paper, money market funds and time deposits with major international banks and financial institutio ns. Market Risks —We are exposed to market risks, such as changes in commodity pricing, currency exchange rates and interest rates. To manage the volatility related to these exposures, we selectively enter into derivative transactions pursuant to our risk management policies. Derivative instruments are recorded at fair value on the balance sheet. Gains and losses related to changes in the fair value of derivative instruments not designated as hedges are recorded in earnings. For derivatives that have been d esignated as fair value hedges, the gains and losses of the derivatives and hedged instruments are recorded in earnings. For derivatives designated as cash flow and net investment hedges, the effective portion of the gains and losses is recorded through O t her comprehensive income (loss). The ineffective portion of cash flow and net investment hedges is recorded in earnings. Marketable Securities ―We invest cash in investment-grade securities for periods generally not exceeding two years. Investments in secu rities with original maturities of three months or less are classified as Cash and cash equivalents. At September 30, 2015 and December 31, 2014 , we had marketable securities classified as Cash and cash equivalents of $ 613 million and $ 431 million, res pectively. We also have investments in marketable securities classified as available-for-sale. These securities, which are included in Short-term investments on the Consolidated Balance Sheets, are carried at estimated fair value with unrealized gains and losses recorded as a component of Accumulated other comprehensive income (“AOCI”). We periodically review our available-for-sale securities for other-than-temporary declines in fair value below the cost basis, and when events or changes in circumstances in dicate the carrying value of an asset may not be recoverable, the investment is written down to fair value, establishing a new cost basis. Repurchase Agreements ― W e invest in tri-party repurchase agreements . Under these agreements, we make cash purchases of securities according to a pre-agreed profile from our counterparties . The counterparties have an obligation to repurchase, and we have an obligation to sell, the same or substantially the same securities at a pre-defined date for a price equal to the purchase price plus interest . These securities, which pursuant to our policy are held by a third-party custodian and must generally have a minimum collateral value of 102%, secure the counterparty’s obligation to repurchase the securities . Depending upon maturity, these tri-party repurchase agreements are treated as short-term loans receivable s reflected in Prepaid expenses and other current assets or as long-term loans receivables reflected in Other investments and long-term receivables on our Consolidated Balance Sheets . The balance of our investment at September 30, 2015 and December 31, 2014 was $ 448 million and $ 350 million, respectively Commodity Prices ―We are exposed to commodity price volatility related to anticipated purchases of natural gas liquids, crude oil and other raw materials and sales of our products. We selectively use over-the counter commodity swaps, options and exchange traded futures contracts with various terms to manage the volatility related to these risks. In addition, we are exposed to volatility on the prices of precious metals to the extent that we have obligations, classified as embedded derivatives, tied to the price of precious metals associated with secured borrowings. All aforementioned contracts are generally limited to d urations of one year or less. Foreign Currency Rates ―We have significant worldwide operations. The functional currencies of our consolidated subsidiaries through which we operate are primarily the U.S. dollar and the euro. We enter into transactions denominated in currencies other than our designated functional currencies. As a result, we are exposed to foreign currency risk on receivables and payables. We maintain risk management control policies intended to monitor foreign currency risk attributable to our outstanding foreign currency balances . These control policies involve the centralization of foreign currency exposure management, the offsetting of exposures and the estimating of expected impacts of changes in foreign currency rates on our earnings. We enter into foreign currency forward contracts to reduce the effects of our net currency exchange exposures. At September 30, 2015 , foreign currency forward contracts in the notional amount of $ 4 20 million, maturing in October 2015 through December 2015 , were outstanding. For forward contracts that economically hedge recognized monetary assets and liabilities in foreign currencies, no hedge accounting is applied. Changes in the fair value of foreign currency forward contracts, which are reported in the Consolidated Statements of Income, are offset in part by the currency translation results recognized on the assets and liabilities. Foreign Currency Gain (Loss) ―Other income, net, in the Consolidated Statements of Income reflected gains of $ 3 million and $ 7 million for the three and nine months ended September 30, 2015 and losses of $1 million and less than $1 million for the three and nine months ended September 30, 2014 , respectively. Basis Swaps— During the third quarter of 2015, we entered into cross-currency floating-to-floating interest rate swaps (“basis swaps”) to reduce the volatility in stockholders ’ equity resulting from changes in currency exchange rates of our foreign subsidiaries with respect to the U.S. dollar . Under the terms of these contracts, which have been designated as net investment hedges, we will make interest payments in euros at 3 Month EURIBOR plus basis and will receive interest in U.S. dollars at 3 Mont h LIBOR. Upon the maturities of these contracts, we will pay the principal amount in euros and receive U.S. dollars from our counterparties. We use the long-haul method to assess hedge effectiveness using a regression analysis approach under the hypothetic al derivative method. We perform the regression analysis of our basis swap contracts at least on a quarterly basis over an observation period of three years, utilizing data that is relevant to the hedge duration. We use the forward method to measure ineffe ctiveness. The effective portion of the unrealized gains and losses on these basis swap contracts is reported in Accumulated other comprehensive loss and reclassified to earnings only when realized upon the sale or upon complete or substantially complete l iquidation of the investment in the foreign entity. Cash flow s from basis swaps are reported in Cash flows from investing activities in the Consolidated Statement of Cash Flows. There was no ineffectiveness recorded during the three and nine months ended September 30, 2015 . 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% Cross - Currency Swaps — We have cross-currency swap contracts that reduce our exposure to the foreign currency exchange risk associated with certain intercompany loans. Under the terms of these contracts, which have been designated as cash flow hedges, we will make interest payments in euros and receive interest in U.S. dollars. Upon the maturities of these contracts, we will pay the principal amount of the loans in euros and receive U.S. dollars from our counterparties. We use the long-haul method to assess hedge effectiveness using a regression analysis approach under the hypothetical derivative method. We perform the regression analysis over an observation period of three years, utilizing data that is relevant to the hedge duration. We use the dollar offset method under the hypothetical derivative method to measure ineffectiveness. The effective portion of the unrealized gains and losses on these cross-currency swap contracts is reported in Accumulated other comprehensive loss and reclassified to earnings over the period that the hedged intercompany loans affect earnings based on changes in spot rates. The ineffective portion of the unrealized gains and losses is recorded directly to Other income, net in the Consolidated Statements of Income. In addition, the swaps are marked-to-market each reporting period with the euro notional values measured based on the current foreign exchange spot rate. There was no ineffectiveness recorded during th e three and nine months ended September 30, 2015 . 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% Forward-Starting Interest Rate Swaps— In March 2015, we entered into forward-starting interest rate swaps to mitigate the risk of adverse changes in the benchmark interest rates on the anticipated refinancing of our senior notes due 2019 . These interest rate swaps will be terminated upon debt issuance. The total notional amount of these forward-starting interest rate swaps was $ 1,000 million at September 30, 2015 . The ineffectiveness recorded for this hedging relationship was less than $1 million during the three and nine months ended September 30, 2015 . In January 2015, we entered into forward-starting interest rate swaps with a total notional value of $ 750 million to mitigate the risk of adverse changes in the benchmark interest rates on the Company’s planned issuance of fixed-rate debt in 2015. These forward-starting interest rate swaps were terminated upon issuance of the $ 1,000 million senior notes due 2055 in March 2015. The ineffectiveness recorded for this hedging relationship was less than $1 million during the nine months ended September 30, 2015 . In February 2014, we entered into forward-starting interest rate swaps with a total notional value of $ 500 million to hedge the risk of adverse changes in the benchmark interest rate s for anticipated fixed-rate debt issuances in 2014 . The swap was terminated upon issuance of the $ 1,000 million of guaranteed notes due 2044 . W e have elected to designate these forward-starting interest rate swaps as cash flow hedges. The effective portion of the gain or loss is recorded in Accumulated other comprehensive loss. In periods where the hedging relationship is deemed ineffective, changes in the fair value will be recorded as Interest expense in the Consolidated Statements of Income. We use a regression analysis approach under the hypothetical derivative method to assess both prospective and retrospective hedge effectiveness. We use the dollar-offset method under the hypothetical derivative method to measure hedge ineffectiveness. In 2015 and 2014, we recognized a gain of $ 15 million and a loss of $ 17 million, respectively, in AOCI related to the settlement of these swap agreements. The related deferred gains and losses recognized in AOCI are amortized to interest expense over the original term of the related swaps using the effective interest method. As of September 30, 2015 , $ 1 million (on a pretax basis) is scheduled to be reclassified as an increase to interest expense over the next twelve months . Fixed-for-Floating Interest Rate Swap s — In 2014, we entered into U.S. dollar fixed-for-floating interest rate swaps with third party financial institution s to mitigate changes in the fair value of our $ 2,000 million 5 % senior notes due 2019 associated with the risk of variability in the 3 Month U SD LIBOR rate (the benchmark interest rate) . T hese interest rate swaps are used as part of our current interest rate risk management strategy to achieve a desired proportion of variable versus fixed rate debt . Under these arrangements, we exchange fixed for floating rate interest payments to effectively convert our fixed - rate debt to floating rate - debt . The fixed and variable cash payments related to the interest rate swaps are net settled semi-annually and classified as Other, net, in the Cash flows from operating activities section of the Consolidated Statements of Cash Flows . W e have elected to designate these fixed-for-floating interest rate swaps as fair value hedges . We use the long-haul method to assess hedge effectiveness using a regression analysis approach. We perform the regression analysis over an observation period of three years, utilizing data that is relevant to the hedge duration. We use the dollar offset method to measure ineffectiveness. C hanges in the fair value of the derivatives and changes in the value of the hedged items based on changes in the benchmark interest rate are recorded as Interest expense in our Consolidated Statements of Income . We evaluate the effectiveness of the hedging relationship periodically and calculate the change s in the fair value of the derivatives and the underlying hedged item s separately . W e recognized net gain s of $ 1 0 million and $ 3 2 million for the three and nine months ended September 30, 2015 , respectively and a net gain of $ 6 million for each of the three and nine months ended September 30, 2014 , related to the ineffectiveness of our hedging relationships . At September 30, 2015 , we had outstanding interest rate swap agreements with notional amounts of $ 2,000 million, maturing in April 15, 2019 . 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 N o losses related to other-than-temporary impairments of our available-for-sale investments have been recorded in Accumulated other comprehensive loss during the nine months ended September 30, 2015 and the year ended December 31, 2014 . As of September 30, 2015 , the commercial paper securities held by the Company had maturities between less than one and ten months, bonds had maturities between less than one and twenty- four months , certificates of deposit mature within seventeen months and time deposits mature within two months. 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 - - W e recognized realized gains of less than $1 million in connection with the sale of securities during both the three and nine months ended September 30, 2015 . The specific identification method was used to identify the cost of the securities sold and the amounts reclassified out of Accumulated other comprehensive income into earnings. The following table summarizes the fair value and unrealized losses related to available-for-sale securities that were in a continuous unre alized 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) $ - - $ - - 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 The following table summarizes the pretax effect of derivative instruments char ged 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) T he 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 f or the three and nine months ended September 30, 2015 , respectively , and $ 4 million f or each of the three and nine months ended September 30, 2014 . |
