v3.26.3
HEDGES AND DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 9 Months Ended
Sep. 30, 2026
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 September 30, 2026 and December 31, 2025.
Fair Value of
Notional AmountHedge AssetsHedge LiabilitiesMaximum Term (Months)
Millions of dollars20262025202620252026202520262025
Derivatives accounted for as hedges(1)
Commodity swaps/options$238 $247 $54 $27 $3 $6 (CF)2424
Foreign exchange forwards/options588 675 11 3 14 25 (CF/NI)1515
Cross-currency swaps618 618 3 4 85 107 (CF)2938
Total derivatives accounted for as hedges$68 $34 $102 $138 
Derivatives not accounted for as hedges
Foreign exchange forwards/options(2)
1,392 1,266 21 2 3 8 N/A47
Total derivatives not accounted for as hedges21 2 3 8 
Total derivatives$89 $36 $105 $146 
Current$84 $28 $18 $38 
Noncurrent6 8 87 108 
Total derivatives$90 $36 $105 $146 
(1)Derivatives accounted for as hedges are considered cash flow (CF) hedges.
(2)Change in foreign exchange forwards/options is primarily driven by proactive actions taken to manage our short-term currency risk.
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 September 30,
Gain (Loss)
Recognized in OCI
(Effective Portion ) (3)(5)
Millions of dollars20262025
Cash flow hedges
     Commodity swaps/options$30 $8 
     Foreign exchange forwards/options(5)(3)
     Cross-currency swaps7 7 
$32 $12 
Three Months Ended September 30,
Location of Gain (Loss) Reclassified from
OCI into Earnings
(Effective Portion)
Gain (Loss) Reclassified from
OCI into Earnings
(Effective Portion)(4)(5)
Cash Flow Hedges - Millions of dollars20262025
Commodity swaps/options Cost of products sold$19 $2 
Foreign exchange forwards/optionsNet sales2 — 
Foreign exchange forwards/optionsCost of products sold(14)(5)
Foreign exchange forwards/optionsInterest and sundry (income) expense4 — 
Cross-currency swapsInterest and sundry (income) expense7 4 
$18 $1 
Three Months Ended September 30,
Location of Gain (Loss) Recognized on Derivatives not
Accounted for as Hedges		Gain (Loss) Recognized on Derivatives not
Accounted for as Hedges
Derivatives not Accounted for as Hedges - Millions of dollars20262025
Foreign exchange forwards/optionsInterest and sundry (income) expense$(2)$(2)
(3)Change in gain (loss) recognized in OCI (effective portion) for the three months ended September 30, 2026 is primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year.
(4)Change in gain (loss) reclassified from OCI into earnings (effective portion) for the three months ended September 30, 2026 was primarily driven by fluctuations in currency, commodity prices and interest rates.
(5)The tax impact of the cash flow hedges was $(4) million and $(1) million for the three months ended September 30, 2026 and 2025, respectively.
Nine Months Ended September 30,
Gain (Loss)
Recognized in OCI
(Effective Portion) (6)(8)
Millions of dollars20262025
Cash flow hedges
     Commodity swaps/options$80 $12 
     Foreign exchange forwards/options(9)
(17)(75)
     Cross-currency swaps(9)
22 (70)
$85 $(133)
Nine Months Ended September 30,
Location of Gain (Loss) Reclassified from
OCI into Earnings
(Effective Portion)
Gain (Loss) Reclassified from
OCI into Earnings
(Effective Portion)(7)(8)
Cash Flow Hedges - Millions of dollars20262025
Commodity swaps/options Cost of products sold$45 $— 
Foreign exchange forwards/optionsNet sales8 — 
Foreign exchange forwards/optionsCost of products sold(48)3 
Foreign exchange forwards/optionsInterest and sundry (income) expense1 13 
Cross-currency swaps(9)
Interest and sundry (income) expense28 (83)
Interest rate derivatives(10)
Interest and sundry (income) expense1 30 
$35 $(37)
Nine Months Ended September 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 dollars20262025
Foreign exchange forwards/optionsInterest and sundry (income) expense$17 $(38)
(6)Change in gain (loss) recognized in OCI (effective portion) for the nine months ended September 30, 2026 is primarily driven by fluctuations in currency and commodity prices and interest rates compared to prior year.
(7)Change in gain (loss) reclassified from OCI into earnings (effective portion) for the nine months ended September 30, 2026 was primarily driven by fluctuations in currency, commodity prices and interest rates.
(8)The tax impact of the cash flow hedges was $(11) million and $30 million for the nine months ended September 30, 2026 and 2025, respectively.
(9)Change in foreign exchange forwards/options and cross-currency swaps is primarily driven by the currency change in the Euro year-over-year.
(10)In 2025, the OCI release on the interest rate derivative was driven by an assessment in the period which determined that the forecasted debt transaction was determined to be not probable of occurring.