þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Praxair, Inc. | ||
10 Riverview Drive | State of incorporation: Delaware | |
Danbury, Connecticut 06810-5113 | IRS identification number: 06-124 9050 | |
Tel. (203) 837-2000 |
Title of each class: | Registered on: | |
Common Stock ($0.01 par value) | New York Stock Exchange | |
1.50% Euro notes due 2020 | New York Stock Exchange | |
1.20% Euro notes due 2024 | New York Stock Exchange | |
1.625% Euro notes due 2025 | New York Stock Exchange |
Page | ||
Part I | ||
Item 1: | ||
Item 1A: | ||
Item 1B: | ||
Item 2: | ||
Item 3: | ||
Item 4: | ||
Part II | ||
Item 5: | ||
Item 6: | ||
Item 7: | ||
Item 7A: | ||
Item 8: | ||
Item 9: | ||
Item 9A: | ||
Item 9B: | ||
Part III | ||
Item 10: | ||
Item 11: | ||
Item 12: | ||
Item 13: | ||
Item 14: | ||
Part IV | ||
Item 15: | ||
• | Environmental protection including climate change; |
• | Domestic and international tax laws and currency controls; |
• | Safety; |
• | Securities laws (e.g., SEC and generally accepted accounting principles in the United States); |
• | Trade and import/ export restrictions; |
• | Antitrust matters; |
• | Global anti-bribery laws, including the U.S. Foreign Corrupt Practices Act; |
• | Healthcare regulations |
• | The need to implement or remediate controls, procedures and policies appropriate for a larger public company at companies that prior to the acquisition lacked these controls, procedures and policies; |
• | Diversion of management time and focus from operating existing business to acquisition integration challenges; |
• | Cultural challenges associated with integrating employees from the acquired company into the existing organization; |
• | The need to integrate each company’s accounting, management information, human resource and other administrative systems to permit effective management; |
• | Difficulty with the assimilation of acquired operations and products; |
• | Failure to achieve targeted synergies; and |
• | Inability to retain key employees and business relationships of acquired companies. |
• | the expected timing and likelihood of the entry into or the completion of the proposed business combination, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the proposed business combination that could reduce anticipated benefits or cause the parties not to enter into, or to abandon the transaction; |
• | if and when the parties enter into the proposed business combination agreement, the occurrence of any event, change or other circumstances that could give rise to the termination of the proposed business combination agreement; |
• | the ability to successfully complete the proposed business combination and the exchange offer, including regulatory or other limitations imposed as a result of the proposed business combination; |
• | the success of the combined company’s business following the proposed business combination, including the ability to successfully integrate the Praxair and Linde businesses; |
• | the possibility that Praxair stockholders may not approve the proposed business combination agreement or that the requisite number of Linde shares may not be tendered in the public offer; |
• | the risk that the parties may not be able to satisfy the conditions to closing of the proposed business combination in a timely manner or at all; |
• | the risk that the announcement or consummation of the proposed business combination could have adverse effects on the market price of Linde’s or Praxair’s common stock or the ability of Linde and Praxair to retain customers, retain or hire key personnel, maintain relationships with their respective suppliers and customers, and on their operating results and businesses generally; |
• | the risk that the combined company may be unable to achieve expected synergies or that it may take longer or be more costly than expected to achieve those synergies. |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Market Price | Trading High | Trading Low | Close | Dividend Per Share | |||||||||||
2016 | |||||||||||||||
First Quarter | $ | 115.32 | $ | 95.60 | $ | 114.45 | $ | 0.75 | |||||||
Second Quarter | $ | 120.04 | $ | 106.31 | $ | 112.39 | $ | 0.75 | |||||||
Third Quarter | $ | 125.00 | $ | 110.12 | $ | 120.83 | $ | 0.75 | |||||||
Fourth Quarter | $ | 124.48 | $ | 114.43 | $ | 117.19 | $ | 0.75 | |||||||
2015 | |||||||||||||||
First Quarter | $ | 130.38 | $ | 119.69 | $ | 120.74 | $ | 0.715 | |||||||
Second Quarter | $ | 124.99 | $ | 117.19 | $ | 119.55 | $ | 0.715 | |||||||
Third Quarter | $ | 120.51 | $ | 98.55 | $ | 101.86 | $ | 0.715 | |||||||
Fourth Quarter | $ | 118.58 | $ | 99.59 | $ | 102.40 | $ | 0.715 |
Period | Total Number of Shares Purchased (Thousands) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program (1) (Thousands) | Approximate Dollar Value of Shares that May Yet be Purchased Under the Program (2) (Millions) | |||||||||
October 2016 | 25 | $ | 117.44 | 25 | $ | 1,683 | |||||||
November 2016 | 369 | $ | 116.23 | 369 | $ | 1,640 | |||||||
December 2016 | 506 | $ | 117.36 | 506 | $ | 1,581 | |||||||
Fourth Quarter 2016 | 900 | $ | 116.90 | 900 | $ | 1,581 |
(1) | On January 28, 2014, the Company’s board of directors approved the repurchase of $1.5 billion of its common stock ("2014 program") which could take place from time to time on the open market (which could include the use of 10b5-1 trading plans) or through negotiated transactions, subject to market and business conditions. |
(2) | As of December 31, 2016, the Company had purchased $1,419 million of its common stock pursuant to the 2014 program, leaving an additional $81 million remaining authorized under the 2014 program. The 2014 program does not have any stated expiration date. In addition, on July 28, 2015, the Company's board of directors approved the repurchase of $1.5 billion of its common stock ("2015 program") which could take place from time to time on the open market (which could include the use of 10b5-1 trade plans) or through negotiated transactions, subject to market and business conditions. The 2015 program does not have any stated expiration date. The 2015 program is in addition to the 2014 program. |
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
PX | $100 | $105 | $127 | $130 | $105 | $124 |
SPX | $100 | $116 | $153 | $175 | $176 | $197 |
S5MATR | $100 | $115 | $145 | $155 | $143 | $167 |
Year Ended December 31, | 2016(a) | 2015(a) | 2014(a) | 2013(a) | 2012(a) | ||||||||||||||
From the Consolidated Statements of Income | |||||||||||||||||||
Sales | $ | 10,534 | $ | 10,776 | $ | 12,273 | $ | 11,925 | $ | 11,224 | |||||||||
Cost of sales, exclusive of depreciation and amortization | 5,860 | 5,960 | 6,962 | 6,744 | 6,396 | ||||||||||||||
Selling, general and administrative | 1,145 | 1,152 | 1,308 | 1,349 | 1,270 | ||||||||||||||
Depreciation and amortization | 1,122 | 1,106 | 1,170 | 1,109 | 1,001 | ||||||||||||||
Research and development | 92 | 93 | 96 | 98 | 98 | ||||||||||||||
Cost reduction program and other charges – net | 100 | 172 | 138 | 32 | 65 | ||||||||||||||
Other income (expenses) – net | 23 | 28 | 9 | 32 | 43 | ||||||||||||||
Operating profit | 2,238 | 2,321 | 2,608 | 2,625 | 2,437 | ||||||||||||||
Interest expense – net | 190 | 161 | 213 | 178 | 141 | ||||||||||||||
Income before income taxes and equity investments | 2,048 | 2,160 | 2,395 | 2,447 | 2,296 | ||||||||||||||
Income taxes | 551 | 612 | 691 | 649 | 586 | ||||||||||||||
Income before equity investments | 1,497 | 1,548 | 1,704 | 1,798 | 1,710 | ||||||||||||||
Income from equity investments | 41 | 43 | 42 | 38 | 34 | ||||||||||||||
Net income (including noncontrolling interests) | 1,538 | 1,591 | 1,746 | 1,836 | 1,744 | ||||||||||||||
Noncontrolling interests | (38 | ) | (44 | ) | (52 | ) | (81 | ) | (52 | ) | |||||||||
Net income – Praxair, Inc. | $ | 1,500 | $ | 1,547 | $ | 1,694 | $ | 1,755 | $ | 1,692 | |||||||||
Per Share Data – Praxair, Inc. Shareholders | |||||||||||||||||||
Basic earnings per share | $ | 5.25 | $ | 5.39 | $ | 5.79 | $ | 5.94 | $ | 5.67 | |||||||||
Diluted earnings per share | $ | 5.21 | $ | 5.35 | $ | 5.73 | $ | 5.87 | $ | 5.61 | |||||||||
Cash dividends per share | $ | 3.00 | $ | 2.86 | $ | 2.60 | $ | 2.40 | $ | 2.20 | |||||||||
Weighted Average Shares Outstanding (000’s) | |||||||||||||||||||
Basic shares outstanding | 285,677 | 287,005 | 292,494 | 295,523 | 298,316 | ||||||||||||||
Diluted shares outstanding | 287,757 | 289,055 | 295,608 | 298,965 | 301,845 | ||||||||||||||
Other Information and Ratios | |||||||||||||||||||
Total assets | $ | 19,332 | $ | 18,319 | $ | 19,769 | $ | 20,223 | $ | 18,062 | |||||||||
Total debt | $ | 9,515 | $ | 9,231 | $ | 9,225 | $ | 8,779 | $ | 7,334 | |||||||||
Net debt (b) | $ | 8,991 | $ | 9,084 | $ | 9,099 | $ | 8,641 | $ | 7,177 | |||||||||
Cash flow from operations (c) | $ | 2,773 | $ | 2,695 | $ | 2,887 | $ | 2,936 | $ | 2,774 | |||||||||
Net cash used for investing activities | $ | (1,770 | ) | $ | (1,303 | ) | $ | (1,803 | ) | $ | (3,237 | ) | $ | (2,378 | ) | ||||
Net cash used for financing activities (c) | $ | (643 | ) | $ | (1,310 | ) | $ | (1,027 | ) | $ | 309 | $ | (325 | ) | |||||
Adjusted EBITDA (b) | $ | 3,501 | $ | 3,642 | $ | 3,958 | $ | 3,804 | $ | 3,537 | |||||||||
Capital expenditures | $ | 1,465 | $ | 1,541 | $ | 1,689 | $ | 2,020 | $ | 2,180 | |||||||||
Acquisitions, net of cash acquired | $ | 363 | $ | 82 | $ | 206 | $ | 1,323 | $ | 280 | |||||||||
After-tax return on capital (b) | 12.0 | % | 12.6 | % | 12.7 | % | 12.8 | % | 13.9 | % | |||||||||
Return on equity (b) | 31.9 | % | 34.6 | % | 28.7 | % | 28.6 | % | 28.9 | % | |||||||||
Debt-to-capital ratio (b) | 62.3 | % | 64.9 | % | 59.5 | % | 54.2 | % | 51.8 | % | |||||||||
Debt-to-adjusted EBITDA (b) | 2.6 | 2.5 | 2.3 | 2.2 | 1.9 | ||||||||||||||
Shares outstanding (000’s) | 284,901 | 284,879 | 289,262 | 294,134 | 296,229 | ||||||||||||||
Number of employees | 26,498 | 26,657 | 27,780 | 27,560 | 26,539 |
(a) | Amounts for 2016 include: (i) a $16 million charge to interest expense ($10 million after–tax, or $0.04 per diluted share) related to the redemption of the $325 million 5.20% notes due 2017, (ii) a pre–tax pension settlement charge of $4 million ($3 million after–tax, or $0.01 per diluted share) related to lump sum benefit payments made from the U.S. supplemental pension plan, and (iii) pre–tax charges of $96 million ($63 million after–tax and non–controlling interests, or $0.22 per diluted share) primarily related to cost reduction actions. |
(c) | During 2016, Praxair adopted the FASB's standard for Improvements to Employee Share-Based Payment Accounting. As a result of the standard, withholding tax payments related to stock compensation are required to be presented as financing versus operating cash flows on a retrospective basis (see Note 1 to the consolidated financial statements). |
Page | |
Business Overview | |
Executive Summary – Financial Results & Outlook | |
Consolidated Results and Other Information | |
Segment Discussion | |
Liquidity, Capital Resources and Other Financial Data | |
Contractual Obligations | |
Off-Balance Sheet Arrangements | |
Critical Accounting Policies | |
New Accounting Standards | |
Fair Value Measurements | |
Non-GAAP Financial Measures | |
Forward-Looking Statements |
North America | South America | Europe | Asia | |||
United States | Brazil | Spain | China | |||
Canada | Italy | India | ||||
Mexico | Germany/Benelux | Korea | ||||
Scandinavia | Thailand |
• | Sales of $10,534 million were 2% below 2015 sales of $10,776 million. Excluding negative currency impacts which reduced sales by 3%, and lower cost pass-through, sales were 2% above the prior year due to growth from positive price, new project start-ups and acquisitions. These increases were partially offset by lower base volumes primarily in North America due to weaker upstream energy and manufacturing end-markets. |
• | Reported operating profit of $2,238 million was 4% below 2015. Adjusted operating profit of $2,338 million was 6% below adjusted operating profit in 2015, and 3% below the prior year excluding negative currency translation. Benefits from project start-ups, acquisitions net of divestitures, higher price, and cost reduction programs were more than offset by the impact of lower base volumes.* |
• | Reported net income – Praxair, Inc. of $1,500 million and diluted earnings per share of $5.21 decreased from $1,547 million and $5.35, respectively, in 2015. Adjusted net income – Praxair, Inc. of $1,576 million and adjusted diluted earnings per share of $5.48 were both 6% below 2015 adjusted amounts.* |
• | Cash flow from operations was a strong $2,773 million, 26% of sales. Capital expenditures were $1,465 million and acquisitions, net of cash acquired were $363 million primarily for investments in growth and density; dividends paid were $856 million; and net common stock purchases were $89 million. |
• | We announced a non-binding agreement in principle to merge with Linde AG. |
• | Diluted earnings per share are forecasted to be in the range of $5.45 to $5.80. 2017 EPS guidance does not include transaction costs related to the potential Linde merger. |
• | Effective tax rate of approximately 28%. |
• | Capital expenditures of approximately $1.4 billion. |
• | The company’s core business is to build, own, and operate industrial gas plants in order to supply atmospheric and process gases to customers. As such, Praxair believes that its project backlog is one indicator of future sales growth. At December 31, 2016, Praxair’s backlog of 16 large projects under construction was $1.5 billion. This represents the total estimated capital cost of large plants under construction. North America represents about 80 percent of the backlog, with the majority located in the U.S. Gulf Coast. The remaining backlog resides in Asia, Europe, and South America. These plants will supply customers in the energy, chemical, manufacturing, electronics and metals markets. |
Variance | |||||||||||||||||
(Dollar amounts in millions, except per share data) Year Ended December 31, | 2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | ||||||||||||
Reported Amounts: | |||||||||||||||||
Sales | $ | 10,534 | $ | 10,776 | $ | 12,273 | (2 | )% | (12 | )% | |||||||
Cost of sales, exclusive of depreciation and amortization | $ | 5,860 | $ | 5,960 | $ | 6,962 | (2 | )% | (14 | )% | |||||||
Gross margin (a) | $ | 4,674 | $ | 4,816 | $ | 5,311 | (3 | )% | (9 | )% | |||||||
As a percent of sales | 44.4 | % | 44.7 | % | 43.3 | % | |||||||||||
Selling, general and administrative | $ | 1,145 | $ | 1,152 | $ | 1,308 | (1 | )% | (12 | )% | |||||||
As a percent of sales | 10.9 | % | 10.7 | % | 10.7 | % | |||||||||||
Depreciation and amortization | $ | 1,122 | $ | 1,106 | $ | 1,170 | 1 | % | (5 | )% | |||||||
Cost reduction program and other charges (b) | $ | 100 | $ | 172 | $ | 138 | |||||||||||
Other income (expense) – net | $ | 23 | $ | 28 | $ | 9 | |||||||||||
Operating profit | $ | 2,238 | $ | 2,321 | $ | 2,608 | (4 | )% | (11 | )% | |||||||
Operating margin | 21.2 | % | 21.5 | % | 21.2 | % | |||||||||||
Interest expense – net | $ | 190 | $ | 161 | $ | 213 | 18 | % | (24 | )% | |||||||
Effective tax rate | 26.9 | % | 28.3 | % | 28.9 | % | |||||||||||
Income from equity investments | $ | 41 | $ | 43 | $ | 42 | (5 | )% | 2 | % | |||||||
Noncontrolling interests | $ | (38 | ) | $ | (44 | ) | $ | (52 | ) | (14 | )% | (15 | )% | ||||
Net income – Praxair, Inc. | $ | 1,500 | $ | 1,547 | $ | 1,694 | (3 | )% | (9 | )% | |||||||
Diluted earnings per share | $ | 5.21 | $ | 5.35 | $ | 5.73 | (3 | )% | (7 | )% | |||||||
Diluted shares outstanding | 287,757 | 289,055 | 295,608 | — | % | (2 | )% | ||||||||||
Number of employees | 26,498 | 26,657 | 27,780 | ||||||||||||||
Adjusted Amounts (c): | |||||||||||||||||
Operating profit | $ | 2,338 | $ | 2,493 | $ | 2,746 | (6 | )% | (9 | )% | |||||||
Operating margin | 22.2 | % | 23.1 | % | 22.4 | % | |||||||||||
Interest expense – net | $ | 174 | $ | 161 | $ | 177 | 8 | % | (9 | )% | |||||||
Effective tax rate | 27.1 | % | 28.0 | % | 27.5 | % | |||||||||||
Noncontrolling interests | $ | (43 | ) | $ | (45 | ) | $ | (52 | ) | (4 | )% | (13 | )% | ||||
Net income – Praxair, Inc. | $ | 1,576 | $ | 1,677 | $ | 1,852 | (6 | )% | (9 | )% | |||||||
Diluted earnings per share | $ | 5.48 | $ | 5.80 | $ | 6.27 | (6 | )% | (7 | )% |
(a) | Gross margin excludes depreciation and amortization expense. |
(b) | See Note 2 to the consolidated financial statements. |
(c) | Adjusted amounts are non-GAAP measures. A reconciliation of reported amounts to adjusted amounts can be found in the “Non-GAAP Financial Measures” section of this MD&A. See Notes 2, 5, 11 and 16 to the consolidated financial statements. |
2016 vs. 2015 | 2015 vs. 2014 | |||||||||||
% Change | % Change | |||||||||||
Sales | Operating Profit | Sales | Operating Profit | |||||||||
Factors Contributing to Changes | ||||||||||||
Volume | — | % | (5 | )% | (2 | )% | (5 | )% | ||||
Price/Mix | 1 | % | 3 | % | 1 | % | 6 | % | ||||
Cost pass-through | (1 | )% | — | % | (2 | )% | — | % | ||||
Currency | (3 | )% | (3 | )% | (10 | )% | (10 | )% | ||||
Acquisitions/Divestitures | 1 | % | — | % | 1 | % | — | % | ||||
Other | — | % | 1 | % | — | % | (2 | )% | ||||
Reported | (2 | )% | (4 | )% | (12 | )% | (11 | )% | ||||
Add: Cost reduction program and other charges and pension settlement | — | % | (2 | )% | — | % | 2 | % | ||||
Adjusted | (2 | )% | (6 | )% | (12 | )% | (9 | )% |
% of Sales | % Change* | ||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||
Sales by End-Markets | |||||||||||||||
Manufacturing | 23 | % | 24 | % | 24 | % | (5 | )% | (4 | )% | |||||
Metals | 17 | % | 17 | % | 17 | % | 4 | % | (2 | )% | |||||
Energy | 12 | % | 13 | % | 14 | % | (6 | )% | (2 | )% | |||||
Chemicals | 10 | % | 10 | % | 10 | % | — | % | (3 | )% | |||||
Electronics | 8 | % | 8 | % | 7 | % | 2 | % | 5 | % | |||||
Healthcare | 8 | % | 8 | % | 8 | % | 6 | % | 4 | % | |||||
Food & Beverage | 9 | % | 9 | % | 8 | % | 7 | % | 7 | % | |||||
Aerospace | 3 | % | 3 | % | 3 | % | 2 | % | 3 | % | |||||
Other | 10 | % | 8 | % | 9 | % | 1 | % | (8 | )% | |||||
100 | % | 100 | % | 100 | % |
% of Sales | |||||||||
2016 | 2015 | 2014 | |||||||
Sales by Distribution Method | |||||||||
On-Site | 29 | % | 29 | % | 29 | % | |||
Merchant | 35 | % | 34 | % | 34 | % | |||
Packaged Gas | 28 | % | 28 | % | 28 | % | |||
Other | 8 | % | 9 | % | 9 | % | |||
100 | % | 100 | % | 100 | % |
(Dollar amounts in millions) Year Ended December 31, | Variance* | ||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||
Sales | |||||||||||||||||
North America | $ | 5,592 | $ | 5,865 | $ | 6,436 | (5 | )% | (9 | )% | |||||||
Europe | 1,392 | 1,320 | 1,546 | 5 | % | (15 | )% | ||||||||||
South America | 1,399 | 1,431 | 1,993 | (2 | )% | (28 | )% | ||||||||||
Asia | 1,555 | 1,551 | 1,619 | — | % | (4 | )% | ||||||||||
Surface Technologies | 596 | 609 | 679 | (2 | )% | (10 | )% | ||||||||||
$ | 10,534 | $ | 10,776 | $ | 12,273 | (2 | )% | (12 | )% | ||||||||
Operating Profit | |||||||||||||||||
North America | $ | 1,430 | $ | 1,558 | $ | 1,580 | (8 | )% | (1 | )% | |||||||
Europe | 273 | 250 | 291 | 9 | % | (14 | )% | ||||||||||
South America | 257 | 291 | 449 | (12 | )% | (35 | )% | ||||||||||
Asia | 276 | 289 | 303 | (4 | )% | (5 | )% | ||||||||||
Surface Technologies | 102 | 105 | 123 | (3 | )% | (15 | )% | ||||||||||
Segment operating profit | 2,338 | 2,493 | 2,746 | (6 | )% | (9 | )% | ||||||||||
Cost reduction program and other charges | (100 | ) | (172 | ) | (138 | ) | |||||||||||
Consolidated operating profit | $ | 2,238 | $ | 2,321 | $ | 2,608 |
(Dollar amounts in millions) Year Ended December 31, | Variance | ||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||
Sales | $ | 5,592 | $ | 5,865 | $ | 6,436 | (5 | )% | (9 | )% | |||||||
Cost of sales, exclusive of depreciation and amortization | 2,872 | 3,028 | 3,514 | ||||||||||||||
Gross margin | 2,720 | 2,837 | 2,922 | ||||||||||||||
Operating expenses | 676 | 670 | 731 | ||||||||||||||
Depreciation and amortization | 614 | 609 | 611 | ||||||||||||||
Operating profit | $ | 1,430 | $ | 1,558 | $ | 1,580 | (8 | )% | (1 | )% | |||||||
Operating margin | 25.6 | % | 26.6 | % | 24.5 | % |
2016 vs. 2015 | 2015 vs. 2014 | |||||||||||
% Change | % Change | |||||||||||
Sales | Operating Profit | Sales | Operating Profit | |||||||||
Factors Contributing to Changes | ||||||||||||
Volume | (3 | )% | (6 | )% | (3 | )% | (4 | )% | ||||
Price/Mix | 1 | % | 3 | % | 1 | % | 3 | % | ||||
Cost pass-through | (1 | )% | — | % | (4 | )% | — | % | ||||
Currency | (2 | )% | (2 | )% | (3 | )% | (4 | )% | ||||
Acquisitions/Divestitures | — | % | — | % | — | % | — | % | ||||
Other | — | % | (3 | )% | — | % | 4 | % | ||||
(5 | )% | (8 | )% | (9 | )% | (1 | )% |
% of Sales | % Change* | ||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||
Sales by End-Markets | |||||||||||||||
Manufacturing | 29 | % | 30 | % | 30 | % | (5 | )% | (4 | )% | |||||
Metals | 12 | % | 11 | % | 12 | % | (1 | )% | (11 | )% | |||||
Energy | 17 | % | 18 | % | 20 | % | (6 | )% | — | % | |||||
Chemicals | 9 | % | 10 | % | 10 | % | (8 | )% | (6 | )% | |||||
Electronics | 5 | % | 5 | % | 4 | % | (4 | )% | 15 | % | |||||
Healthcare | 7 | % | 7 | % | 7 | % | 2 | % | 4 | % | |||||
Food & Beverage | 10 | % | 9 | % | 8 | % | 6 | % | 6 | % | |||||
Aerospace | 2 | % | 2 | % | 1 | % | (1 | )% | 3 | % | |||||
Other | 9 | % | 8 | % | 8 | % | 5 | % | (4 | )% | |||||
100 | % | 100 | % | 100 | % |
% of Sales | |||||||||
2016 | 2015 | 2014 | |||||||
Sales by Distribution Method | |||||||||
On-Site | 28 | % | 28 | % | 30 | % | |||
Merchant | 38 | % | 38 | % | 36 | % | |||
Packaged Gas | 31 | % | 32 | % | 32 | % | |||
Other | 3 | % | 2 | % | 2 | % | |||
100 | % | 100 | % | 100 | % |
(Dollar amounts in millions) Year Ended December 31, | Variance | ||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||
Sales | $ | 1,392 | $ | 1,320 | $ | 1,546 | 5 | % | (15 | )% | |||||||
Cost of sales, exclusive of depreciation and amortization | 775 | 749 | 868 | ||||||||||||||
Gross margin | 617 | 571 | 678 | ||||||||||||||
Operating expenses | 189 | 176 | 219 | ||||||||||||||
Depreciation and amortization | 155 | 145 | 168 | ||||||||||||||
Operating profit | $ | 273 | $ | 250 | $ | 291 | 9 | % | (14 | )% | |||||||
Operating margin | 19.6 | % | 18.9 | % | 18.8 | % |
2016 vs. 2015 | 2015 vs. 2014 | |||||||||||
% Change | % Change | |||||||||||
Sales | Operating Profit | Sales | Operating Profit | |||||||||
Factors Contributing to Changes | ||||||||||||
Volume | 1 | % | — | % | 1 | % | 1 | % | ||||
Price/Mix | — | % | 1 | % | 1 | % | 3 | % | ||||
Cost pass-through | — | % | — | % | — | % | — | % | ||||
Currency | (1 | )% | (1 | )% | (17 | )% | (17 | )% | ||||
Acquisitions/Divestitures | 5 | % | 3 | % | — | % | — | % | ||||
Other | — | % | 6 | % | — | % | (1 | )% | ||||
5 | % | 9 | % | (15 | )% | (14 | )% |
% of Sales | % Change* | ||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||
Sales by End-Markets | |||||||||||||||
Manufacturing | 21 | % | 22 | % | 22 | % | (2 | )% | 4 | % | |||||
Metals | 16 | % | 17 | % | 16 | % | — | % | 9 | % | |||||
Energy | 5 | % | 6 | % | 7 | % | (9 | )% | (17 | )% | |||||
Chemicals | 14 | % | 14 | % | 15 | % | 1 | % | (2 | )% | |||||
Electronics | 7 | % | 7 | % | 7 | % | 6 | % | 4 | % | |||||
Healthcare | 11 | % | 11 | % | 11 | % | 4 | % | — | % | |||||
Food & Beverage | 12 | % | 10 | % | 9 | % | 5 | % | 8 | % | |||||
Aerospace | 1 | % | 1 | % | — | % | 5 | % | 35 | % | |||||
Other | 13 | % | 12 | % | 13 | % | 6 | % | (1 | )% | |||||
100 | % | 100 | % | 100 | % |
% of Sales | |||||||||
2016 | 2015 | 2014 | |||||||
Sales by Distribution Method | |||||||||
On-Site | 19 | % | 20 | % | 19 | % | |||
Merchant | 35 | % | 34 | % | 35 | % | |||
Packaged Gas | 42 | % | 42 | % | 43 | % | |||
Other | 4 | % | 4 | % | 3 | % | |||
100 | % | 100 | % | 100 | % |
(Dollar amounts in millions) Year Ended December 31, | Variance | ||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||
Sales | $ | 1,399 | $ | 1,431 | $ | 1,993 | (2 | )% | (28 | )% | |||||||
Cost of sales, exclusive of depreciation and amortization | 828 | 809 | 1,101 | ||||||||||||||
Gross margin | 571 | 622 | 892 | ||||||||||||||
Operating expenses | 181 | 196 | 266 | ||||||||||||||
Depreciation and amortization | 133 | 135 | 177 | ||||||||||||||
Operating profit | $ | 257 | $ | 291 | $ | 449 | (12 | )% | (35 | )% | |||||||
Operating margin | 18.4 | % | 20.3 | % | 22.5 | % |
2016 vs. 2015 | 2015 vs. 2014 | |||||||||||
% Change | % Change | |||||||||||
Sales | Operating Profit | Sales | Operating Profit | |||||||||
Factors Contributing to Changes | ||||||||||||
Volume | 2 | % | (2 | )% | (4 | )% | (10 | )% | ||||
Price/Mix | 4 | % | 17 | % | 5 | % | 22 | % | ||||
Cost pass-through | — | % | — | % | 1 | % | — | % | ||||
Currency | (8 | )% | (9 | )% | (30 | )% | (31 | )% | ||||
Acquisitions/Divestitures | — | % | — | % | — | % | — | % | ||||
Other | — | % | (18 | )% | — | % | (16 | )% | ||||
(2 | )% | (12 | )% | (28 | )% | (35 | )% |
% of Sales | % Change* | ||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||
Sales by End-Markets | |||||||||||||||
Manufacturing | 18 | % | 21 | % | 21 | % | (10 | )% | (3 | )% | |||||
Metals | 31 | % | 28 | % | 27 | % | 14 | % | 2 | % | |||||
Energy | 2 | % | 2 | % | 2 | % | 16 | % | 6 | % | |||||
Chemicals | 9 | % | 9 | % | 9 | % | 1 | % | 1 | % | |||||
Electronics | — | % | — | % | — | % | — | % | — | % | |||||
Healthcare | 19 | % | 18 | % | 18 | % | 13 | % | 7 | % | |||||
Food & Beverage | 13 | % | 13 | % | 13 | % | 12 | % | 6 | % | |||||
Aerospace | — | % | — | % | — | % | — | % | — | % | |||||
Other | 8 | % | 9 | % | 10 | % | (5 | )% | (8 | )% | |||||
100 | % | 100 | % | 100 | % |
% of Sales | |||||||||
2016 | 2015 | 2014 | |||||||
Sales by Distribution Method | |||||||||
On-Site | 31 | % | 28 | % | 26 | % | |||
Merchant | 40 | % | 41 | % | 43 | % | |||
Packaged Gas | 27 | % | 29 | % | 29 | % | |||
Other | 2 | % | 2 | % | 2 | % | |||
100 | % | 100 | % | 100 | % |
(Dollar amounts in millions) Year Ended December 31, | Variance | ||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||
Sales | $ | 1,555 | $ | 1,551 | $ | 1,619 | — | % | (4 | )% | |||||||
Cost of sales, exclusive of depreciation and amortization | 998 | 977 | 1,041 | ||||||||||||||
Gross margin | 557 | 574 | 578 | ||||||||||||||
Operating expenses | 102 | 109 | 105 | ||||||||||||||
Depreciation and amortization | 179 | 176 | 170 | ||||||||||||||
Operating profit | $ | 276 | $ | 289 | $ | 303 | (4 | )% | (5 | )% | |||||||
Operating margin | 17.7 | % | 18.6 | % | 18.7 | % |
2016 vs. 2015 | 2015 vs. 2014 | |||||||||||
% Change | % Change | |||||||||||
Sales | Operating Profit | Sales | Operating Profit | |||||||||
Factors Contributing to Changes | ||||||||||||
Volume / Equipment | 5 | % | 2 | % | (1 | )% | (4 | )% | ||||
Price/Mix | (1 | )% | (6 | )% | — | % | 1 | % | ||||
Cost pass-through | 1 | % | — | % | (2 | )% | — | % | ||||
Currency | (4 | )% | (4 | )% | (3 | )% | (4 | )% | ||||
Acquisitions / Divestitures | (1 | )% | — | % | 2 | % | 1 | % | ||||
Other | — | % | 4 | % | — | % | 1 | % | ||||
— | % | (4 | )% | (4 | )% | (5 | )% |
% of Sales | % Change* | ||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||
Sales by End-Markets | |||||||||||||||
Manufacturing | 9 | % | 9 | % | 10 | % | (8 | )% | (10 | )% | |||||
Metals | 28 | % | 29 | % | 28 | % | 5 | % | 3 | % | |||||
Energy | 3 | % | 3 | % | 3 | % | (3 | )% | 9 | % | |||||
Chemicals | 14 | % | 13 | % | 12 | % | 19 | % | 5 | % | |||||
Electronics | 33 | % | 32 | % | 31 | % | 4 | % | 1 | % | |||||
Healthcare | 1 | % | 1 | % | 1 | % | 8 | % | (9 | )% | |||||
Food & Beverage | 2 | % | 2 | % | 2 | % | 6 | % | 6 | % | |||||
Aerospace | — | % | — | % | — | % | — | % | — | % | |||||
Other | 10 | % | 11 | % | 13 | % | (2 | )% | (21 | )% | |||||
100 | % | 100 | % | 100 | % |
% of Sales | |||||||||
2016 | 2015 | 2014 | |||||||
Sales by Distribution Method | |||||||||
On-Site | 50 | % | 50 | % | 51 | % | |||
Merchant | 29 | % | 30 | % | 29 | % | |||
Packaged Gas | 14 | % | 13 | % | 12 | % | |||
Other | 7 | % | 7 | % | 8 | % | |||
100 | % | 100 | % | 100 | % |
(Dollar amounts in millions) Year Ended December 31, | Variance | ||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||
Sales | $ | 596 | $ | 609 | $ | 679 | (2 | )% | (10 | )% | |||||||
Cost of sales, exclusive of depreciation and amortization | 388 | 397 | 438 | ||||||||||||||
Gross margin | 208 | 212 | 241 | ||||||||||||||
Operating expenses | 66 | 66 | 75 | ||||||||||||||
Depreciation and amortization | 40 | 41 | 43 | ||||||||||||||
Operating profit | $ | 102 | $ | 105 | $ | 123 | (3 | )% | (15 | )% | |||||||
Operating margin | 17.1 | % | 17.2 | % | 18.1 | % |
2016 vs. 2015 | 2015 vs. 2014 | |||||||||||
% Change | % Change | |||||||||||
Sales | Operating Profit | Sales | Operating Profit | |||||||||
Factors Contributing to Changes | ||||||||||||
Volume/Price | (2 | )% | (8 | )% | (3 | )% | (13 | )% | ||||
Cost pass-through | — | % | — | % | — | % | — | % | ||||
Currency | (1 | )% | (1 | )% | (7 | )% | (6 | )% | ||||
Acquisitions/Divestitures | 1 | % | — | % | — | % | — | % | ||||
Other | — | % | 6 | % | — | % | 4 | % | ||||
(2 | )% | (3 | )% | (10 | )% | (15 | )% |
% of Sales | % Change* | ||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||
Sales by End-Markets | |||||||||||||||
Manufacturing | 11 | % | 12 | % | 13 | % | (5 | )% | (13 | )% | |||||
Metals | 9 | % | 8 | % | 8 | % | 11 | % | (3 | )% | |||||
Energy | 23 | % | 25 | % | 28 | % | (10 | )% | (12 | )% | |||||
Chemicals | 2 | % | 2 | % | 2 | % | (4 | )% | 6 | % | |||||
Electronics | 1 | % | 1 | % | 1 | % | 17 | % | 13 | % | |||||
Healthcare | — | % | — | % | — | % | — | % | — | % | |||||
Food & Beverage | 4 | % | 4 | % | 3 | % | 2 | % | 48 | % | |||||
Aerospace | 40 | % | 37 | % | 34 | % | 3 | % | 3 | % | |||||
Other | 10 | % | 11 | % | 11 | % | (12 | )% | (8 | )% | |||||
100 | % | 100 | % | 100 | % |
Percent of 2016 Consolidated Sales | Statements of Income | Balance Sheets | |||||||||||||||
Average Year Ended December 31, | December 31, | ||||||||||||||||
Currency | 2016 | 2015 | 2014 | 2016 | 2015 | ||||||||||||
Brazilian real | 11 | % | 3.47 | 3.28 | 2.35 | 3.26 | 3.90 | ||||||||||
Euro | 10 | % | 0.90 | 0.90 | 0.75 | 0.95 | 0.92 | ||||||||||
Canadian dollar | 7 | % | 1.32 | 1.28 | 1.10 | 1.34 | 1.38 | ||||||||||
Chinese yuan | 6 | % | 6.64 | 6.28 | 6.16 | 6.95 | 6.49 | ||||||||||
Mexican peso | 5 | % | 18.65 | 15.83 | 13.30 | 20.73 | 17.21 | ||||||||||
Korean won | 4 | % | 1,160 | 1,130 | 1,053 | 1,206 | 1,175 | ||||||||||
Indian rupee | 3 | % | 67.18 | 64.11 | 61.03 | 67.92 | 66.15 | ||||||||||
Argentine peso | 1 | % | 14.74 | 9.22 | 8.10 | 15.89 | 13.04 | ||||||||||
British pound | 1 | % | 0.74 | 0.65 | 0.61 | 0.81 | 0.68 | ||||||||||
Norwegian krone | 1 | % | 8.39 | 8.05 | 6.28 | 8.64 | 8.84 |
(Millions of dollars) Year Ended December 31, | 2016 | 2015 | 2014 | ||||||||
Net Cash Provided by (Used for) | |||||||||||
Operating Activities | |||||||||||
Net Income (including noncontrolling interests) | $ | 1,538 | $ | 1,591 | $ | 1,746 | |||||
Non-cash charges (credits): | |||||||||||
Add: Cost reduction program and other charges, net of payments (a) | 83 | 121 | 138 | ||||||||
Add: Depreciation and amortization | 1,122 | 1,106 | 1,170 | ||||||||
Add (Less): Deferred income taxes | (13 | ) | 99 | 55 | |||||||
Less: Other non-cash charges | (4 | ) | (49 | ) | (65 | ) | |||||
Net Income adjusted for non-cash charges | 2,726 | 2,868 | 3,044 | ||||||||
Less: Pension contributions | (11 | ) | (15 | ) | (18 | ) | |||||
Add (Less): Working capital | 52 | (84 | ) | (129 | ) | ||||||
Add (Less): Other (c) | 6 | (74 | ) | (10 | ) | ||||||
Net cash provided from operating activities (c) | $ | 2,773 | $ | 2,695 | $ | 2,887 | |||||
Investing Activities | |||||||||||
Capital expenditures | $ | (1,465 | ) | $ | (1,541 | ) | $ | (1,689 | ) | ||
Acquisitions, net of cash acquired | (363 | ) | (82 | ) | (206 | ) | |||||
Divestitures and asset sales | 58 | 320 | 92 | ||||||||
Total used for investing | $ | (1,770 | ) | $ | (1,303 | ) | $ | (1,803 | ) | ||
Financing Activities | |||||||||||
Debt increases – net | $ | 357 | $ | 168 | $ | 589 | |||||
Purchases of common stock – net | (89 | ) | (637 | ) | (759 | ) | |||||
Cash dividends – Praxair, Inc. shareholders | (856 | ) | (819 | ) | (759 | ) | |||||
Excess tax benefit on stock based compensation | — | 19 | 31 | ||||||||
Noncontrolling interest transactions and other (c) | (55 | ) | (41 | ) | (129 | ) | |||||
Total provided (used) for financing (c) | $ | (643 | ) | $ | (1,310 | ) | $ | (1,027 | ) | ||
Effect of exchange rate changes on cash | $ | 17 | $ | (61 | ) | $ | (69 | ) | |||
Cash and cash equivalents | $ | 524 | $ | 147 | $ | 126 | |||||
Other Financial Data (b) | |||||||||||
Debt-to-capital ratio | 62.3 | % | 64.9 | % | 59.5 | % | |||||
After-tax return on capital ("ROC") | 12.0 | % | 12.6 | % | 12.7 | % | |||||
Return on Praxair, Inc. shareholder's equity ("ROE") | 31.9 | % | 34.6 | % | 28.7 | % | |||||
Adjusted EBITDA | $ | 3,501 | $ | 3,642 | $ | 3,958 | |||||
Adjusted EBITDA Margin | 33.2 | % | 33.8 | % | 32.2 | % | |||||
Debt-to-Adjusted EBITDA | 2.6 | 2.5 | 2.3 |
(a) | See Note 2 to the consolidated financial statements. |
(b) | Non-GAAP measures. See the “Non-GAAP Financial Measures” section for definitions and reconciliations to reported amounts. |
(c) | During 2016, Praxair adopted the FASB's Improvements to Employee Share-Based Payment Accounting standard. As a result of the standard, withholding tax payments related to stock compensation are required to be presented as financing versus operating cash flows on a retrospective basis (see Note 1 to the consolidated financial statements). |
(Millions of dollars) | Due or expiring by December 31, | ||||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | |||||||||||||||||||||
Long-term debt obligations: | |||||||||||||||||||||||||||
Debt and capitalized lease maturities (Note 11)* | $ | 164 | $ | 985 | $ | 1,503 | $ | 938 | $ | 1,006 | $ | 4,485 | $ | 9,081 | |||||||||||||
Contractual interest | 220 | 210 | 185 | 156 | 128 | 701 | 1,600 | ||||||||||||||||||||
Operating leases (Note 4)* | 117 | 97 | 79 | 65 | 54 | 117 | 529 | ||||||||||||||||||||
Retirement obligations | 38 | 31 | 35 | 32 | 31 | 140 | 307 | ||||||||||||||||||||
Unconditional purchase obligations (Note 17)* | 585 | 534 | 476 | 422 | 434 | 2,645 | 5,096 | ||||||||||||||||||||
Construction commitments (Note 17)* | 836 | 271 | 125 | — | — | — | 1,232 | ||||||||||||||||||||
Total Contractual Obligations | $ | 1,960 | $ | 2,128 | $ | 2,403 | $ | 1,613 | $ | 1,653 | $ | 8,088 | $ | 17,845 |
(Dollar amounts in millions, except for per share data) Year ended December 31, | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Performance Measures: | |||||||||||||||||||
After-tax return on capital ("ROC") | 12.0 | % | 12.6 | % | 12.7 | % | 12.8 | % | 13.9 | % | |||||||||
Return on equity ("ROE") | 31.9 | % | 34.6 | % | 28.7 | % | 28.6 | % | 28.9 | % | |||||||||
Debt-to-capital | 62.3 | % | 64.9 | % | 59.5 | % | 54.2 | % | 51.8 | % | |||||||||
Debt-to-adjusted EBITDA | 2.6 | 2.5 | 2.3 | 2.2 | 1.9 | ||||||||||||||
Adjusted Amounts: | |||||||||||||||||||
Operating profit | $ | 2,338 | $ | 2,493 | $ | 2,746 | $ | 2,657 | $ | 2,502 | |||||||||
Operating margin | 22.2 | % | 23.1 | % | 22.4 | % | 22.3 | % | 22.3 | % | |||||||||
EBITDA | $ | 3,501 | $ | 3,642 | $ | 3,958 | $ | 3,804 | $ | 3,537 | |||||||||
EBITDA margin | 33.2 | % | 33.8 | % | 32.2 | % | 31.9 | % | 31.5 | % | |||||||||
Interest expense - net | $ | 174 | $ | 161 | $ | 177 | $ | 160 | $ | 141 | |||||||||
Effective tax rate | 27.1 | % | 28.0 | % | 27.5 | % | 28.0 | % | 28.0 | % | |||||||||
Noncontrolling interests | $ | (43 | ) | $ | (45 | ) | $ | (52 | ) | $ | (65 | ) | $ | (54 | ) | ||||
Net income – Praxair, Inc. | $ | 1,576 | $ | 1,677 | $ | 1,852 | $ | 1,772 | $ | 1,681 | |||||||||
Diluted earnings per share | $ | 5.48 | $ | 5.80 | $ | 6.27 | $ | 5.93 | $ | 5.57 |
(Dollar amounts in millions) Year Ended December 31, | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Adjusted operating profit (see below) | $ | 2,338 | $ | 2,493 | $ | 2,746 | $ | 2,657 | $ | 2,502 | |||||||||
Less: adjusted income taxes (see below) | (586 | ) | (653 | ) | (707 | ) | (698 | ) | (660 | ) | |||||||||
Less: tax benefit on adjusted interest expense (a) | (48 | ) | (45 | ) | (50 | ) | (44 | ) | (39 | ) | |||||||||
Add: income from equity investments | 41 | 43 | 42 | 38 | 34 | ||||||||||||||
Net operating profit after-tax ("NOPAT") | $ | 1,745 | $ | 1,838 | $ | 2,031 | $ | 1,953 | $ | 1,837 | |||||||||
Beginning capital | $ | 13,990 | $ | 15,285 | $ | 15,951 | $ | 13,850 | $ | 12,466 | |||||||||
First quarter ending capital | $ | 14,607 | $ | 14,806 | $ | 16,285 | $ | 15,312 | $ | 13,223 | |||||||||
Second quarter ending capital | $ | 14,948 | $ | 14,696 | $ | 16,459 | $ | 15,514 | $ | 12,994 | |||||||||
Third quarter ending capital | $ | 14,864 | $ | 14,157 | $ | 16,052 | $ | 15,725 | $ | 13,592 | |||||||||
Year-end ending capital | $ | 14,443 | $ | 13,990 | $ | 15,285 | $ | 15,951 | $ | 13,850 | |||||||||
Five-quarter average capital | $ | 14,570 | $ | 14,587 | $ | 16,007 | $ | 15,270 | $ | 13,225 | |||||||||
After-tax return on capital | 12.0 | % | 12.6 | % | 12.7 | % | 12.8 | % | 13.9 | % |
(a) | Tax benefit on adjusted interest expense is computed using the effective rate adjusted for non-recurring income tax benefits and charges. The effective tax rates used for all periods was approximately 28%. |
(Dollar amounts in millions) Year Ended December 31, | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Adjusted net income – Praxair, Inc. (see below) | $ | 1,576 | $ | 1,677 | $ | 1,852 | $ | 1,772 | $ | 1,681 | |||||||||
Beginning Praxair, Inc. shareholders’ equity | $ | 4,389 | $ | 5,623 | $ | 6,609 | $ | 6,064 | $ | 5,488 | |||||||||
First quarter ending Praxair, Inc. shareholders’ equity | $ | 4,888 | $ | 5,018 | $ | 6,600 | $ | 6,169 | $ | 5,940 | |||||||||
Second quarter ending Praxair, Inc. shareholders’ equity | $ | 5,140 | $ | 4,964 | $ | 6,911 | $ | 5,928 | $ | 5,615 | |||||||||
Third quarter ending Praxair, Inc. shareholders’ equity | $ | 5,245 | $ | 4,264 | $ | 6,552 | $ | 6,210 | $ | 6,015 | |||||||||
Year-End ending Praxair, Inc. shareholders’ equity | $ | 5,021 | $ | 4,389 | $ | 5,623 | $ | 6,609 | $ | 6,064 | |||||||||
Five-quarter average Praxair, Inc. shareholders’ equity | $ | 4,937 | $ | 4,852 | $ | 6,459 | $ | 6,196 | $ | 5,824 | |||||||||
Return on Praxair, Inc. Shareholders’ Equity | 31.9 | % | 34.6 | % | 28.7 | % | 28.6 | % | 28.9 | % |
(Dollar amounts in millions) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Year Ended December 31, | |||||||||||||||||||
Total debt | $ | 9,515 | $ | 9,231 | $ | 9,225 | $ | 8,779 | $ | 7,334 | |||||||||
Less: cash and cash equivalents | (524 | ) | (147 | ) | (126 | ) | (138 | ) | (157 | ) | |||||||||
Net debt | 8,991 | 9,084 | 9,099 | 8,641 | 7,177 | ||||||||||||||
Equity and redeemable noncontrolling interests | |||||||||||||||||||
Redeemable noncontrolling interests | 11 | 113 | 176 | 307 | 252 | ||||||||||||||
Praxair, Inc. shareholders’ equity | 5,021 | 4,389 | 5,623 | 6,609 | 6,064 | ||||||||||||||
Noncontrolling interests | 420 | 404 | 387 | 394 | 357 | ||||||||||||||
Total equity and redeemable noncontrolling interests | 5,452 | 4,906 | 6,186 | 7,310 | 6,673 | ||||||||||||||
Total capital | $ | 14,443 | $ | 13,990 | $ | 15,285 | $ | 15,951 | $ | 13,850 | |||||||||
Debt-to-capital ratio | 62.3 | % | 64.9 | % | 59.5 | % | 54.2 | % | 51.8 | % |
(Dollar amounts in millions) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Year Ended December 31, | |||||||||||||||||||
Adjusted net income - Praxair, Inc. (see below) | $ | 1,576 | $ | 1,677 | $ | 1,852 | $ | 1,772 | $ | 1,681 | |||||||||
Add: adjusted noncontrolling interests (see below) | 43 | 45 | 52 | 65 | 54 | ||||||||||||||
Add: adjusted interest expense - net (see below) | 174 | 161 | 177 | 160 | 141 | ||||||||||||||
Add: adjusted income taxes (see below) | 586 | 653 | 707 | 698 | 660 | ||||||||||||||
Add: depreciation and amortization | 1,122 | 1,106 | 1,170 | 1,109 | 1,001 | ||||||||||||||
Adjusted EBITDA | $ | 3,501 | $ | 3,642 | $ | 3,958 | $ | 3,804 | $ | 3,537 | |||||||||
Reported Sales | $ | 10,534 | $ | 10,776 | $ | 12,273 | $ | 11,925 | $ | 11,224 | |||||||||
Adjusted EBITDA Margin | 33.2 | % | 33.8 | % | 32.2 | % | 31.9 | % | 31.5 | % | |||||||||
Beginning Praxair, Inc. net debt | $ | 9,084 | $ | 9,099 | $ | 8,641 | $ | 7,177 | $ | 6,449 | |||||||||
First quarter ending Praxair, Inc. net debt | $ | 9,183 | $ | 9,243 | $ | 9,092 | $ | 8,531 | $ | 6,724 | |||||||||
Second quarter ending Praxair, Inc. net debt | $ | 9,389 | $ | 9,177 | $ | 8,959 | $ | 8,970 | $ | 6,868 | |||||||||
Third quarter ending Praxair, Inc. net debt | $ | 9,215 | $ | 9,344 | $ | 8,922 | $ | 8,860 | $ | 7,003 | |||||||||
Year-End ending Praxair, Inc. net debt | $ | 8,991 | $ | 9,084 | $ | 9,099 | $ | 8,641 | $ | 7,177 | |||||||||
Five-quarter average Praxair, Inc. net debt | $ | 9,172 | $ | 9,189 | $ | 8,943 | $ | 8,436 | $ | 6,844 | |||||||||
Debt-to- adjusted EBITDA ratio | 2.6 | 2.5 | 2.3 | 2.2 | 1.9 |
(Dollar amounts in millions, except per share data) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Year Ended December 31, | |||||||||||||||||||
Adjusted Operating Profit and Margin | |||||||||||||||||||
Reported operating profit | $ | 2,238 | $ | 2,321 | $ | 2,608 | $ | 2,625 | $ | 2,437 | |||||||||
Add: Pension settlement charge | 4 | 7 | 7 | 9 | 9 | ||||||||||||||
Add: Venezuela currency devaluation | — | — | 131 | 23 | — | ||||||||||||||
Add: Cost reduction program | 96 | 165 | — | — | 56 | ||||||||||||||
Total adjustments | 100 | 172 | 138 | 32 | 65 | ||||||||||||||
Adjusted operating profit | $ | 2,338 | $ | 2,493 | $ | 2,746 | $ | 2,657 | $ | 2,502 | |||||||||
Reported percent change | (4 | )% | (11 | )% | (1 | )% | 8 | % | (1 | )% | |||||||||
Adjusted percent change | (6 | )% | (9 | )% | 3 | % | 6 | % | 1 | % | |||||||||
Reported sales | $ | 10,534 | $ | 10,776 | $ | 12,273 | $ | 11,925 | $ | 11,224 | |||||||||
Reported operating margin | 21.2 | % | 21.5 | % | 21.2 | % | 22.0 | % | 21.7 | % | |||||||||
Adjusted operating margin | 22.2 | % | 23.1 | % | 22.4 | % | 22.3 | % | 22.3 | % | |||||||||
Adjusted Interest Expense - Net | |||||||||||||||||||
Reported interest expense | 190 | 161 | 213 | 178 | 141 | ||||||||||||||
Less: Bond redemption | (16 | ) | — | (36 | ) | (18 | ) | — | |||||||||||
Adjusted interest expense - net | $ | 174 | $ | 161 | $ | 177 | $ | 160 | $ | 141 | |||||||||
Adjusted Income Taxes and Effective Tax Rate | |||||||||||||||||||
Reported income taxes | $ | 551 | $ | 612 | $ | 691 | $ | 649 | $ | 586 | |||||||||
Add: Bond redemption | 6 | — | 14 | 6 | — | ||||||||||||||
Add: Income tax benefits | — | — | — | 40 | 55 | ||||||||||||||
Add: Pension settlement charge | 1 | 2 | 2 | 3 | 3 | ||||||||||||||
Add: Cost reduction program | 28 | 39 | — | — | 16 | ||||||||||||||
Total adjustments | 35 | 41 | 16 | 49 | 74 | ||||||||||||||
Adjusted income taxes | $ | 586 | $ | 653 | $ | 707 | $ | 698 | $ | 660 | |||||||||
Reported income before income taxes and equity investments | $ | 2,048 | $ | 2,160 | $ | 2,395 | $ | 2,447 | $ | 2,296 | |||||||||
Add: Bond redemption | 16 | — | 36 | 18 | — | ||||||||||||||
Add: Pension settlement charge | 4 | 7 | 7 | 9 | 9 | ||||||||||||||
Add: Venezuela currency devaluation | — | — | 131 | 23 | — | ||||||||||||||
Add: Cost reduction program | 96 | 165 | — | — | 56 | ||||||||||||||
Total adjustments | 116 | 172 | 174 | 50 | 65 | ||||||||||||||
Adjusted income before income taxes and equity investments | $ | 2,164 | $ | 2,332 | $ | 2,569 | $ | 2,497 | $ | 2,361 | |||||||||
Reported effective tax rate | 26.9 | % | 28.3 | % | 28.9 | % | 26.5 | % | 25.5 | % | |||||||||
Adjusted effective tax rate | 27.1 | % | 28.0 | % | 27.5 | % | 28.0 | % | 28.0 | % | |||||||||
Adjusted Noncontrolling Interests | |||||||||||||||||||
Reported noncontrolling interests | $ | 38 | $ | 44 | $ | 52 | $ | 81 | $ | 52 | |||||||||
Less: Income tax benefits | — | — | — | (16 | ) | — | |||||||||||||
Add: Cost reduction program | 5 | 1 | — | — | 2 | ||||||||||||||
Total adjustments | 5 | 1 | — | (16 | ) | 2 | |||||||||||||
Adjusted noncontrolling interests | $ | 43 | $ | 45 | $ | 52 | $ | 65 | $ | 54 | |||||||||
(Dollar amounts in millions, except per share data) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Year Ended December 31, | |||||||||||||||||||
Adjusted Net Income – Praxair, Inc. | |||||||||||||||||||
Reported net income – Praxair, Inc. | $ | 1,500 | $ | 1,547 | $ | 1,694 | $ | 1,755 | $ | 1,692 | |||||||||
Add: Bond redemption | 10 | — | 22 | 12 | — | ||||||||||||||
Less: Income tax benefits | — | — | — | (24 | ) | (55 | ) | ||||||||||||
Add: Pension settlement charge | 3 | 5 | 5 | 6 | 6 | ||||||||||||||
Add: Venezuela currency devaluation | — | — | 131 | 23 | — | ||||||||||||||
Add: Cost reduction program | 63 | 125 | — | — | 38 | ||||||||||||||
Total adjustments | 76 | 130 | 158 | 17 | (11 | ) | |||||||||||||
Adjusted net income – Praxair, Inc. | $ | 1,576 | $ | 1,677 | $ | 1,852 | $ | 1,772 | $ | 1,681 | |||||||||
Reported percent change | (3 | )% | (9 | )% | (3 | )% | 4 | % | 1 | % | |||||||||
Adjusted percent change | (6 | )% | (9 | )% | 5 | % | 5 | % | 1 | % |
(Dollar amounts in millions, except per share data) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Year Ended December 31, | |||||||||||||||||||
Adjusted Diluted Earnings Per Share | |||||||||||||||||||
Reported diluted earnings per share | $ | 5.21 | $ | 5.35 | $ | 5.73 | $ | 5.87 | $ | 5.61 | |||||||||
Add: Bond redemption | 0.04 | — | 0.07 | 0.04 | — | ||||||||||||||
Less: Income tax benefits | — | — | — | (0.08 | ) | (0.18 | ) | ||||||||||||
Add: Pension settlement charge | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | ||||||||||||||
Add: Venezuela currency devaluation | — | — | 0.45 | 0.08 | — | ||||||||||||||
Add: Cost reduction program | 0.22 | 0.43 | — | — | 0.12 | ||||||||||||||
Total adjustments | 0.27 | 0.45 | 0.54 | 0.06 | (0.04 | ) | |||||||||||||
Adjusted diluted earnings per share | $ | 5.48 | $ | 5.80 | $ | 6.27 | $ | 5.93 | $ | 5.57 | |||||||||
Reported percent change | (3 | )% | (7 | )% | (2 | )% | 5 | % | 3 | % | |||||||||
Adjusted percent change | (6 | )% | (7 | )% | 6 | % | 6 | % | 3 | % | |||||||||
2017 Diluted Earnings Per Share Guidance | |||||||||||||||||||
Low End | High End | ||||||||||||||||||
2017 diluted EPS guidance | $5.45 | $5.80 | |||||||||||||||||
2016 adjusted diluted EPS (see above) | $5.48 | $5.48 | |||||||||||||||||
Adjusted percentage change | (1 | )% | 6 | % |
Page | |
Audited Consolidated Financial Statements | |
Notes to Consolidated Financial Statements | |
Note 2. Cost Reduction Program and Other Charges | |
/s/ STEPHEN F. ANGEL | /s/ KELCEY E. HOYT | |
Stephen F. Angel Chairman, President and Chief Executive Officer | Kelcey E. Hoyt Vice President and Controller | |
/s/ MATTHEW J. WHITE | ||
Matthew J. White Senior Vice President and Chief Financial Officer | Danbury, Connecticut March 1, 2017 |
Year Ended December 31, | 2016 | 2015 | 2014 | ||||||||
Sales | $ | 10,534 | $ | 10,776 | $ | 12,273 | |||||
Cost of sales, exclusive of depreciation and amortization | 5,860 | 5,960 | 6,962 | ||||||||
Selling, general and administrative | 1,145 | 1,152 | 1,308 | ||||||||
Depreciation and amortization | 1,122 | 1,106 | 1,170 | ||||||||
Research and development | 92 | 93 | 96 | ||||||||
Cost reduction program and other charges | 100 | 172 | 138 | ||||||||
Other income (expenses) – net | 23 | 28 | 9 | ||||||||
Operating Profit | 2,238 | 2,321 | 2,608 | ||||||||
Interest expense – net | 190 | 161 | 213 | ||||||||
Income Before Income Taxes and Equity Investments | 2,048 | 2,160 | 2,395 | ||||||||
Income taxes | 551 | 612 | 691 | ||||||||
Income Before Equity Investments | 1,497 | 1,548 | 1,704 | ||||||||
Income from equity investments | 41 | 43 | 42 | ||||||||
Net Income (Including Noncontrolling Interests) | 1,538 | 1,591 | 1,746 | ||||||||
Less: noncontrolling interests | (38 | ) | (44 | ) | (52 | ) | |||||
Net Income – Praxair, Inc. | $ | 1,500 | $ | 1,547 | $ | 1,694 | |||||
Per Share Data – Praxair, Inc. Shareholders | |||||||||||
Basic earnings per share | $ | 5.25 | $ | 5.39 | $ | 5.79 | |||||
Diluted earnings per share | $ | 5.21 | $ | 5.35 | $ | 5.73 | |||||
Weighted Average Shares Outstanding (000’s): | |||||||||||
Basic shares outstanding | 285,677 | 287,005 | 292,494 | ||||||||
Diluted shares outstanding | 287,757 | 289,055 | 295,608 |
Year Ended December 31, | 2016 | 2015 | 2014 | ||||||||
NET INCOME (INCLUDING NONCONTROLLING INTERESTS) | $ | 1,538 | $ | 1,591 | $ | 1,746 | |||||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||
Translation adjustments: | |||||||||||
Foreign currency translation adjustments | 116 | (1,517 | ) | (1,087 | ) | ||||||
Reclassifications to net income | — | — | (5 | ) | |||||||
Income taxes | (48 | ) | 3 | (4 | ) | ||||||
Translation adjustments | 68 | (1,514 | ) | (1,096 | ) | ||||||
Funded status - retirement obligations (Note 16): | |||||||||||
Retirement program remeasurements | (163 | ) | (11 | ) | (318 | ) | |||||
Reclassifications to net income | 60 | 84 | 59 | ||||||||
Income taxes | 27 | (17 | ) | 95 | |||||||
Funded status - retirement obligations | (76 | ) | 56 | (164 | ) | ||||||
Derivative instruments (Note 12): | |||||||||||
Current year unrealized gain (loss) | 1 | 1 | 4 | ||||||||
Reclassifications to net income | (1 | ) | (1 | ) | — | ||||||
Income taxes | — | — | (1 | ) | |||||||
Derivative instruments | — | — | 3 | ||||||||
TOTAL OTHER COMPREHENSIVE LOSS | (8 | ) | (1,458 | ) | (1,257 | ) | |||||
COMPREHENSIVE INCOME (INCLUDING NONCONTROLLING INTERESTS) | 1,530 | 133 | 489 | ||||||||
Less: noncontrolling interests | (34 | ) | 3 | 1 | |||||||
COMPREHENSIVE INCOME - PRAXAIR, INC. | $ | 1,496 | $ | 136 | $ | 490 |
December 31, | 2016 | 2015 | |||||
Assets | |||||||
Cash and cash equivalents | $ | 524 | $ | 147 | |||
Accounts receivable – net | 1,641 | 1,601 | |||||
Inventories | 550 | 531 | |||||
Prepaid and other current assets | 165 | 347 | |||||
Total Current Assets | 2,880 | 2,626 | |||||
Property, plant and equipment – net | 11,477 | 10,998 | |||||
Equity investments | 717 | 665 | |||||
Goodwill | 3,117 | 2,986 | |||||
Other intangible assets – net | 583 | 568 | |||||
Other long-term assets | 558 | 476 | |||||
Total Assets | $ | 19,332 | $ | 18,319 | |||
Liabilities and Equity | |||||||
Accounts payable | $ | 906 | $ | 791 | |||
Short-term debt | 434 | 250 | |||||
Current portion of long-term debt | 164 | 6 | |||||
Accrued taxes | 133 | 144 | |||||
Other current liabilities | 841 | 702 | |||||
Total Current Liabilities | 2,478 | 1,893 | |||||
Long-term debt | 8,917 | 8,975 | |||||
Other long-term liabilities | 1,213 | 1,155 | |||||
Deferred credits | 1,272 | 1,390 | |||||
Total Liabilities | 13,880 | 13,413 | |||||
Commitments and contingencies (Note 17) | |||||||
Redeemable noncontrolling interests | 11 | 113 | |||||
Praxair, Inc. Shareholders’ Equity: | |||||||
Common stock $0.01 par value, authorized – 800,000,000 shares, issued 2016 and 2015 – 383,230,625 shares | 4 | 4 | |||||
Additional paid-in capital | 4,074 | 4,005 | |||||
Retained earnings | 12,879 | 12,229 | |||||
Accumulated other comprehensive income (loss) | (4,600 | ) | (4,596 | ) | |||
Less: Treasury stock, at cost (2016 – 98,329,849 shares and 2015 – 98,351,546 shares) | (7,336 | ) | (7,253 | ) | |||
Total Praxair, Inc. Shareholders’ Equity | 5,021 | 4,389 | |||||
Noncontrolling interests | 420 | 404 | |||||
Total Equity | 5,441 | 4,793 | |||||
Total Liabilities and Equity | $ | 19,332 | $ | 18,319 |
Year Ended December 31, | 2016 | 2015 | 2014 | ||||||||
Increase (Decrease) in Cash and Cash Equivalents | |||||||||||
Operations | |||||||||||
Net income – Praxair, Inc. | $ | 1,500 | $ | 1,547 | $ | 1,694 | |||||
Noncontrolling interests | 38 | 44 | 52 | ||||||||
Net income (including noncontrolling interests) | $ | 1,538 | $ | 1,591 | $ | 1,746 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Cost reduction program and other charges, net of payments | 83 | 121 | 138 | ||||||||
Depreciation and amortization | 1,122 | 1,106 | 1,170 | ||||||||
Deferred income taxes | (13 | ) | 99 | 55 | |||||||
Share-based compensation | 39 | 30 | 51 | ||||||||
Non-cash charges and other | (43 | ) | (79 | ) | (116 | ) | |||||
Working capital | |||||||||||
Accounts receivable | (33 | ) | 1 | (80 | ) | ||||||
Inventory | (13 | ) | (23 | ) | (42 | ) | |||||
Prepaid and other current assets | 6 | (22 | ) | (20 | ) | ||||||
Payables and accruals | 92 | (40 | ) | 13 | |||||||
Pension contributions | (11 | ) | (15 | ) | (18 | ) | |||||
Long-term assets, liabilities and other | 6 | (74 | ) | (10 | ) | ||||||
Net cash provided by operating activities | 2,773 | 2,695 | 2,887 | ||||||||
Investing | |||||||||||
Capital expenditures | (1,465 | ) | (1,541 | ) | (1,689 | ) | |||||
Acquisitions, net of cash acquired | (363 | ) | (82 | ) | (206 | ) | |||||
Divestitures and asset sales | 58 | 320 | 92 | ||||||||
Net cash used for investing activities | (1,770 | ) | (1,303 | ) | (1,803 | ) | |||||
Financing | |||||||||||
Short-term debt borrowings (repayments) – net | 191 | (329 | ) | (193 | ) | ||||||
Long-term debt borrowings | 936 | 1,497 | 1,546 | ||||||||
Long-term debt repayments | (770 | ) | (1,000 | ) | (764 | ) | |||||
Issuances of common stock | 139 | 88 | 103 | ||||||||
Purchases of common stock | (228 | ) | (725 | ) | (862 | ) | |||||
Cash dividends – Praxair, Inc. shareholders | (856 | ) | (819 | ) | (759 | ) | |||||
Excess tax benefit on stock based compensation | — | 19 | 31 | ||||||||
Noncontrolling interest transactions and other | (55 | ) | (41 | ) | (129 | ) | |||||
Net cash provided (used ) for financing activities | (643 | ) | (1,310 | ) | (1,027 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 17 | (61 | ) | (69 | ) | ||||||
Change in cash and cash equivalents | 377 | 21 | (12 | ) | |||||||
Cash and cash equivalents, beginning-of-period | 147 | 126 | 138 | ||||||||
Cash and cash equivalents, end-of-period | $ | 524 | $ | 147 | $ | 126 | |||||
Supplemental Data | |||||||||||
Income taxes paid | $ | 585 | $ | 420 | $ | 606 | |||||
Interest paid, net of capitalized interest (Note 7) | $ | 189 | $ | 174 | $ | 210 |
Praxair, Inc. Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) (Note 7) | Treasury Stock | Praxair, Inc. Shareholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||
Activity | Shares | Amounts | Shares | Amounts | |||||||||||||||||||||||||||||||||
Balance, December 31, 2013 | 383,231 | $ | 4 | $ | 3,970 | $ | 10,528 | $ | (1,981 | ) | 89,097 | $ | (5,912 | ) | $ | 6,609 | $ | 394 | $ | 7,003 | |||||||||||||||||
Net Income | 1,694 | 1,694 | 40 | 1,734 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (1,204 | ) | (1,204 | ) | (29 | ) | (1,233 | ) | |||||||||||||||||||||||||||||
Noncontrolling interests: | |||||||||||||||||||||||||||||||||||||
Dividends and other capital reductions | (28 | ) | (28 | ) | |||||||||||||||||||||||||||||||||
Purchases of noncontrolling interests | (24 | ) | (24 | ) | 2 | (22 | ) | ||||||||||||||||||||||||||||||
Additions (Reductions) | 8 | 8 | |||||||||||||||||||||||||||||||||||
Redemption value adjustments (Note 14) | (2 | ) | (2 | ) | (2 | ) | |||||||||||||||||||||||||||||||
Dividends to Praxair, Inc. common stock ($2.60 per share) | (759 | ) | (759 | ) | (759 | ) | |||||||||||||||||||||||||||||||
Issuances of common stock: | |||||||||||||||||||||||||||||||||||||
For the dividend reinvestment and stock purchase plan | (56 | ) | 7 | 7 | 7 | ||||||||||||||||||||||||||||||||
For employee savings and incentive plans | (36 | ) | (1,830 | ) | 122 | 86 | 86 | ||||||||||||||||||||||||||||||
Purchases of common stock | 6,758 | (868 | ) | (868 | ) | (868 | ) | ||||||||||||||||||||||||||||||
Tax benefit from stock options | 33 | 33 | 33 | ||||||||||||||||||||||||||||||||||
Share-based compensation | 51 | 51 | 51 | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2014 | 383,231 | $ | 4 | $ | 3,994 | $ | 11,461 | $ | (3,185 | ) | 93,969 | $ | (6,651 | ) | $ | 5,623 | $ | 387 | $ | 6,010 | |||||||||||||||||
Net Income | 1,547 | 1,547 | 34 | 1,581 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (1,411 | ) | (1,411 | ) | (30 | ) | (1,441 | ) | |||||||||||||||||||||||||||||
Noncontrolling interests: | |||||||||||||||||||||||||||||||||||||
Dividends and other capital reductions | (16 | ) | (16 | ) | |||||||||||||||||||||||||||||||||
Additions (Reductions) | 29 | 29 | |||||||||||||||||||||||||||||||||||
Redemption value adjustments (Note 14) | 40 | 40 | 40 | ||||||||||||||||||||||||||||||||||
Dividends to Praxair, Inc. common stock ($2.86 per share) | (819 | ) | (819 | ) | (819 | ) |
Praxair, Inc. Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) (Note 7) | Treasury Stock | Praxair, Inc. Shareholders’ Equity | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||||||||
Activity | Shares | Amounts | Shares | Amounts | |||||||||||||||||||||||||||||||||
Issuances of common stock: | |||||||||||||||||||||||||||||||||||||
For the dividend reinvestment and stock purchase plan | (64 | ) | 7 | 7 | 7 | ||||||||||||||||||||||||||||||||
For employee savings and incentive plans | (38 | ) | (1,562 | ) | 110 | 72 | 72 | ||||||||||||||||||||||||||||||
Purchases of common stock | 6,009 | (719 | ) | (719 | ) | (719 | ) | ||||||||||||||||||||||||||||||
Tax benefit from stock options | 19 | 19 | 19 | ||||||||||||||||||||||||||||||||||
Share-based compensation | 30 | 30 | 30 | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2015 | 383,231 | $ | 4 | $ | 4,005 | $ | 12,229 | $ | (4,596 | ) | 98,352 | $ | (7,253 | ) | $ | 4,389 | $ | 404 | $ | 4,793 | |||||||||||||||||
Net Income | 1,500 | 1,500 | 35 | 1,535 | |||||||||||||||||||||||||||||||||
Other comprehensive loss | (4 | ) | (4 | ) | (11 | ) | (15 | ) | |||||||||||||||||||||||||||||
Noncontrolling interests: | |||||||||||||||||||||||||||||||||||||
Dividends and other capital reductions | (28 | ) | (28 | ) | |||||||||||||||||||||||||||||||||
Additions (Reductions) - (Note 14) | 50 | 50 | 20 | 70 | |||||||||||||||||||||||||||||||||
Redemption value adjustments (Note 14) | 6 | 6 | 6 | ||||||||||||||||||||||||||||||||||
Dividends to Praxair, Inc. common stock ($3.00 per share) | (856 | ) | (856 | ) | (856 | ) | |||||||||||||||||||||||||||||||
Issuances of common stock: | |||||||||||||||||||||||||||||||||||||
For the dividend reinvestment and stock purchase plan | (60 | ) | 7 | 7 | 7 | ||||||||||||||||||||||||||||||||
For employee savings and incentive plans | (20 | ) | (2,044 | ) | 143 | 123 | 123 | ||||||||||||||||||||||||||||||
Other | 5 | 5 | 5 | ||||||||||||||||||||||||||||||||||
Purchases of common stock | 2,082 | (238 | ) | (238 | ) | (238 | ) | ||||||||||||||||||||||||||||||
Share-based compensation | 39 | 39 | 39 | ||||||||||||||||||||||||||||||||||
Balance, December 31, 2016 | 383,231 | $ | 4 | $ | 4,074 | $ | 12,879 | $ | (4,600 | ) | 98,330 | $ | (7,336 | ) | $ | 5,021 | $ | 420 | $ | 5,441 |
• | Accounting for Share-based Compensation - In June 2014, the FASB issued updated guidance on the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The adoption of this guidance did not have a significant impact on the condensed consolidated financial statements. |
• | Improvements to Employee Share-Based Payment Accounting - In March 2016, the FASB issued updated guidance on the accounting for employee share-based payments. The new guidance, among other changes, requires that all excess tax benefits and deficiencies associated with share-based payment awards be recorded in Income taxes in the statement of income in the period in which they occur, and within operating cash flows. Previously, such excess tax benefits were recorded as direct credits to equity (not via the statement of income), and as financing cash flows. |
• | Balance Sheet Classification of Deferred Taxes - In November 2015, the FASB issued updated guidance on the balance sheet classification of deferred taxes. Prior to the adoption of this guidance, deferred income tax liabilities and assets were required to be separated and classified as current or non-current in a classified balance sheet. The amendments in this update require that deferred tax liabilities and assets be classified as non-current in a classified balance sheet. Praxair has elected to early adopt this guidance beginning in the fourth quarter 2016 on a prospective basis, prior periods were not retrospectively adjusted (see Note 7). |
• | Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) - In May 2015, the FASB issued updated guidance removing the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The adoption of this guidance resulted in the removal of certain pensions assets from within the fair value hierarchy (see Note 16). |
• | Revenue Recognition – In May 2014, the FASB issued updated guidance on the reporting and disclosure of revenue. The new guidance requires the evaluation of contracts with customers to determine the recognition of revenue when or as the entity satisfies a performance obligation, and requires expanded disclosures. Subsequently, the FASB has issued amendments to certain aspects of the guidance including the effective date. This guidance is required to be effective beginning in the first quarter 2018 (with early adoption beginning in 2017 optional) and includes several transition options. |
• | Simplifying the Measurement of Inventory – In July 2015, the FASB issued updated guidance on the measurement of inventory. The new guidance requires that inventory be measured at the lower of cost or net realizable value. Currently inventory is measured at the lower of cost or market. This new guidance will be effective for Praxair beginning in the first quarter 2017 on a prospective basis, with early adoption optional. Praxair does not expect this requirement to have a material impact. |
• | Leases – In February 2016, the FASB issued updated guidance on the accounting and financial statement presentation of leases. The new guidance requires lessees to recognize a right-of-use asset and lease liability for all leases, except those that meet certain scope exceptions, and would require expanded quantitative and qualitative disclosures. This guidance will be effective for Praxair beginning in the first quarter 2019, with early adoption optional, and requires companies to transition using a modified retrospective approach. Praxair is in the early stages of reviewing the new guidance and will provide updates on the expected impact to Praxair in future filings, as determined. |
• | Credit Losses on Financial Instruments – In June 2016, the FASB issued an update on the measurement of credit losses. The guidance introduces a new accounting model for expected credit losses on financial instruments, including trade receivables, based on estimates of current expected credit losses. This guidance will be effective for Praxair beginning in the first quarter 2020, with early adoption permitted beginning in the first quarter 2019 and requires companies to apply the change in accounting on a prospective basis. We are currently evaluating the impact this update will have on our consolidated financial statements. |
• | Classification of Certain Cash Receipts and Cash Payments – In August 2016, the FASB issued updated guidance on the classification of certain cash receipts and cash payments within the statement of cash flows. The update provides accounting guidance for specific cash flow issues with the objective of reducing diversity in practice. This new guidance will be effective for Praxair beginning in the first quarter 2018 on a retrospective basis, with early adoption optional. Praxair does not expect this requirement to have a material impact. |
• | Intra-Entity Asset Transfers – In October 2016, the FASB issued updated guidance for income tax accounting of intra-entity transfers of assets other than inventory. The update requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory in the period when the transfer occurs. This new guidance will be effective for Praxair beginning in the first quarter 2018, with early adoption permitted, and should be applied on a modified retrospective basis. We are currently evaluating the impact this update will have on our consolidated financial statements. |
• | Simplifying the Test for Goodwill Impairment – In January 2017, the FASB issued updated guidance on the measurement of goodwill. The new guidance eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The guidance will be effective for Praxair beginning in the first quarter 2020 with early adoption permitted. Praxair does not expect this guidance to have a material impact. |
(millions of dollars) | Severance costs | Other Charges | Total | ||||||||
North America | $ | 14 | $ | 29 | $ | 43 | |||||
Europe | 12 | 3 | 15 | ||||||||
South America | 5 | 7 | 12 | ||||||||
Asia | 6 | 13 | 19 | ||||||||
Surface Technologies | 3 | 4 | 7 | ||||||||
Total | $ | 40 | $ | 56 | $ | 96 |
(millions of dollars) | Severance costs | Other Charges | Total | ||||||||
North America | $ | 14 | $ | 20 | $ | 34 | |||||
Europe | 11 | 9 | 20 | ||||||||
South America | 18 | 49 | 67 | ||||||||
Asia | 11 | 14 | 25 | ||||||||
Surface Technologies | 9 | 10 | 19 | ||||||||
Total | $ | 63 | $ | 102 | $ | 165 |
i. | The North America charges of $20 million relate primarily to the decision to consolidate certain manufacturing and distribution locations for efficiencies and cost reduction. |
ii. | The Europe charges of $9 million are primarily for the restructuring of operations in Russia and energy-related businesses in Northern Europe. |
iii. | The South America charges of $49 million include costs primarily associated with a decision to exit a non-core business and other operations in South America. |
iv. | The Asia charges of $14 million include costs primarily related to an asset disposal in China. |
v. | The Surface Technologies charges of $10 million relate to the realignment of sales and manufacturing operations in Europe and the United States for efficiencies and cost reduction. |
(millions of dollars) | Severance costs | Other Charges | Total | ||||||||
Q2/Q3 2015 Cost Reduction Program and Other Charges | $ | 63 | $ | 102 | $ | 165 | |||||
Less: Cash payments | (31 | ) | (13 | ) | (44 | ) | |||||
Less: Non-cash asset write-offs | — | (68 | ) | (68 | ) | ||||||
Foreign currency translation and other | (2 | ) | (1 | ) | (3 | ) | |||||
Balance, December 31, 2015 | $ | 30 | $ | 20 | $ | 50 | |||||
2016 Cost Reduction Program and Other Charges | 40 | 56 | 96 | ||||||||
Less: Cash payments | (33 | ) | (9 | ) | (42 | ) | |||||
Less: Non-cash asset write-offs | — | (39 | ) | (39 | ) | ||||||
Foreign currency translation and other | 1 | (1 | ) | — | |||||||
Balance, December 31, 2016 | $ | 38 | $ | 27 | $ | 65 |
(Millions of dollars) | |||
2017 | $ | 117 | |
2018 | 97 | ||
2019 | 79 | ||
2020 | 65 | ||
2021 | 54 | ||
Thereafter | 117 | ||
$ | 529 |
(Millions of dollars) Year Ended December 31, | 2016 | 2015 | 2014 | ||||||||
United States | $ | 954 | $ | 980 | $ | 1,004 | |||||
Foreign | 1,094 | 1,180 | 1,391 | ||||||||
Total income before income taxes | $ | 2,048 | $ | 2,160 | $ | 2,395 |
(Millions of dollars) Year Ended December 31, | 2016 | 2015 | 2014 | ||||||||
Current tax expense | |||||||||||
U.S. federal | $ | 266 | $ | 205 | $ | 291 | |||||
State and local | 32 | 33 | 35 | ||||||||
Foreign | 266 | 275 | 310 | ||||||||
564 | 513 | 636 | |||||||||
Deferred tax expense | |||||||||||
U.S. federal | 3 | 71 | 14 | ||||||||
State and local | 7 | 10 | 12 | ||||||||
Foreign | (23 | ) | 18 | 29 | |||||||
(13 | ) | 99 | 55 | ||||||||
Total income taxes | $ | 551 | $ | 612 | $ | 691 |
(Dollar amounts in millions) Year Ended December 31, | 2016 | 2015 | 2014 | |||||||||||||||||
U.S. statutory income tax rate | $ | 717 | 35.0 | % | $ | 756 | 35.0 | % | $ | 838 | 35.0 | % | ||||||||
State and local taxes – net of federal benefit | 28 | 1.4 | % | 28 | 1.3 | % | 31 | 1.3 | % | |||||||||||
U.S. tax credits and deductions (a) | (32 | ) | (1.6 | )% | (40 | ) | (1.9 | )% | (37 | ) | (1.5 | )% | ||||||||
Foreign tax differentials (b) | (140 | ) | (6.8 | )% | (121 | ) | (5.6 | )% | (186 | ) | (7.8 | )% | ||||||||
Venezuela currency devaluation (c) | — | — | % | — | — | % | 46 | 1.9 | % | |||||||||||
Share Based Compensation (d) | (20 | ) | (1.0 | )% | — | — | % | — | — | % | ||||||||||
Other – net | (2 | ) | (0.1 | )% | (11 | ) | (0.5 | )% | (1 | ) | — | % | ||||||||
Provision for income taxes | $ | 551 | 26.9 | % | $ | 612 | 28.3 | % | $ | 691 | 28.9 | % |
(a) | U.S. tax credits and deductions relate to manufacturing deductions and to the research and experimentation tax credit. |
(b) | Primarily related to differences between the U.S. tax rate of 35% and the statutory tax rate in the countries where Praxair operates. 2014 includes $56 million of tax benefits related to a reduction of uncertain tax positions as a result of a lapse of statute of limitations. Other permanent items and tax rate changes were not significant. |
(c) | Impact related to non-deductible Venezuela currency devaluations in 2014 (see Note 2). |
(d) | See Note 1 related to adoption of the FASB's standard for Improvements to Employee Share-Based Payment Accounting in 2016. |
(Millions of dollars) December 31, | 2016 | 2015 | |||||
Deferred tax liabilities | |||||||
Fixed assets | $ | 1,522 | $ | 1,413 | |||
Exchange gains | 139 | 110 | |||||
Goodwill | 178 | 147 | |||||
Other intangible assets | 115 | 117 | |||||
Other | 62 | 155 | |||||
$ | 2,016 | $ | 1,942 | ||||
Deferred tax assets | |||||||
Carryforwards | $ | 284 | $ | 287 | |||
Benefit plans and related (a) | 404 | 365 | |||||
Inventory | 26 | 20 | |||||
Exchange Losses | 6 | 16 | |||||
Accruals and other (b) | 404 | 351 | |||||
$ | 1,124 | $ | 1,039 | ||||
Less: Valuation allowances (c) | (132 | ) | (123 | ) | |||
$ | 992 | $ | 916 | ||||
Net deferred tax liabilities | $ | 1,024 | $ | 1,026 | |||
Recorded in the consolidated balance sheets as (See Note 7): | |||||||
Prepaid and other current assets (d) | $ | — | $ | 184 | |||
Other long-term assets (d) | 185 | 118 | |||||
Deferred credits (d) | 1,209 | 1,328 | |||||
$ | 1,024 | $ | 1,026 |
(a) | Includes deferred taxes of $352 million and $325 million in 2016 and 2015, respectively, related to pension / OPEB funded status (see Notes 7 and 16). |
(b) | Includes $233 million and $194 million in 2016 and 2015, respectively, related to research and development costs and $45 million and $45 million in 2016 and 2015, respectively, related to goodwill. |
(c) | Summary of valuation allowances relating to deferred tax assets follows (millions of dollars): |
2016 | 2015 | 2014 | ||||||||||
Balance, January 1, | $ | (123 | ) | $ | (106 | ) | $ | (85 | ) | |||
Income tax (charge) benefit | (13 | ) | (20 | ) | (20 | ) | ||||||
Translation adjustments | (2 | ) | 4 | 6 | ||||||||
Other, including write-offs | 6 | (1 | ) | (7 | ) | |||||||
Balance, December 31, | $ | (132 | ) | $ | (123 | ) | $ | (106 | ) |
(d) | 2016 amounts reflect the adoption of the FASB's standard regarding the Balance Sheet Classification of Deferred Taxes which requires all current deferred income tax assets and liabilities to be classified as non-current on the balance sheet (see Note 1). |
(Millions of dollars) | 2016 | 2015 | 2014 | ||||||||
Unrecognized income tax benefits, January 1 | $ | 68 | $ | 71 | $ | 121 | |||||
Additions for tax positions of prior years | 6 | 21 | 13 | ||||||||
Reductions for tax positions of prior years | (15 | ) | (13 | ) | (2 | ) | |||||
Additions for current year tax positions | — | — | 3 | ||||||||
Reductions for settlements with taxing authorities (a) | (2 | ) | (3 | ) | (3 | ) | |||||
Reductions as a result of a lapse of an applicable statute of limitations (b) | — | — | (56 | ) | |||||||
Foreign currency translation and other | (1 | ) | (8 | ) | (5 | ) | |||||
Unrecognized income tax benefits, December 31 | $ | 56 | $ | 68 | $ | 71 |
(a) | Settlements are uncertain tax positions that were effectively settled with the taxing authorities, including positions where the company has agreed to amend its tax returns to eliminate the uncertainty. |
(b) | See note (b) to the effective tax rate reconciliation. |
Major tax jurisdictions | Open Years |
North America | |
United States | 2011 through 2016 |
Canada | 2009 through 2016 |
Mexico | 2011 through 2016 |
Europe | |
Germany | 2011 through 2016 |
Italy | 2012 through 2016 |
Spain | 2004 through 2016 |
South America | |
Brazil | 2005 through 2016 |
Asia | |
China | 2011 through 2016 |
India | 2006 through 2016 |
Korea | 2012 through 2016 |
Thailand | 2010 through 2016 |
2016 | 2015 | 2014 | |||||||||
Numerator (Millions of dollars) | |||||||||||
Net income – Praxair, Inc. | $ | 1,500 | $ | 1,547 | $ | 1,694 | |||||
Denominator (Thousands of shares) | |||||||||||
Weighted average shares outstanding | 285,289 | 286,606 | 291,987 | ||||||||
Shares earned and issuable under compensation plans | 388 | 399 | 507 | ||||||||
Weighted average shares used in basic earnings per share | 285,677 | 287,005 | 292,494 | ||||||||
Effect of dilutive securities | |||||||||||
Stock options and awards | 2,080 | 2,050 | 3,114 | ||||||||
Weighted average shares used in diluted earnings per share | 287,757 | 289,055 | 295,608 | ||||||||
Basic Earnings Per Common Share | $ | 5.25 | $ | 5.39 | $ | 5.79 | |||||
Diluted Earnings Per Common Share | $ | 5.21 | $ | 5.35 | $ | 5.73 |
(Millions of dollars) Year Ended December 31, | 2016 | 2015 | 2014 | ||||||||
Selling, General and Administrative | |||||||||||
Selling | $ | 493 | $ | 507 | $ | 572 | |||||
General and administrative | 652 | 645 | 736 | ||||||||
$ | 1,145 | $ | 1,152 | $ | 1,308 |
Year Ended December 31, | 2016 | 2015 | 2014 | ||||||||
Depreciation and Amortization | |||||||||||
Depreciation | $ | 1,071 | $ | 1,059 | $ | 1,123 | |||||
Amortization of other intangibles (Note 10) | 51 | 47 | 47 | ||||||||
$ | 1,122 | $ | 1,106 | $ | 1,170 |
Year Ended December 31, | 2016 | 2015 | 2014 | ||||||||
Other Income (Expenses) – Net | |||||||||||
Currency related net gains (losses) | $ | 1 | $ | (2 | ) | $ | 1 | ||||
Partnership income | 5 | 4 | 16 | ||||||||
Severance expense | (7 | ) | (5 | ) | (22 | ) | |||||
Business divestitures and asset gains (losses) – net | 16 | 34 | 36 | ||||||||
Other – net | 8 | (3 | ) | (22 | ) | ||||||
$ | 23 | $ | 28 | $ | 9 |
Year Ended December 31, | 2016 | 2015 | 2014 | ||||||||
Interest Expense – Net | |||||||||||
Interest incurred on debt | $ | 208 | $ | 194 | $ | 215 | |||||
Interest capitalized | (34 | ) | (33 | ) | (38 | ) | |||||
Bond redemption (a) | 16 | — | 36 | ||||||||
$ | 190 | $ | 161 | $ | 213 |
Year Ended December 31, | 2016 | 2015 | 2014 | ||||||||
Income Attributable to Noncontrolling Interests | |||||||||||
Noncontrolling interests' operations | $ | 35 | $ | 34 | $ | 40 | |||||
Redeemable noncontrolling interests' operations (Note 14) | 3 | 10 | 12 | ||||||||
$ | 38 | $ | 44 | $ | 52 |
(Millions of dollars) December 31, | 2016 | 2015 | |||||
Accounts Receivable | |||||||
Trade | $ | 1,640 | $ | 1,601 | |||
Other | 122 | 101 | |||||
1,762 | 1,702 | ||||||
Less: allowance for doubtful accounts (b) | (121 | ) | (101 | ) | |||
$ | 1,641 | $ | 1,601 |
December 31, | 2016 | 2015 | |||||
Inventories | |||||||
Raw materials and supplies | $ | 197 | $ | 202 | |||
Work in process | 45 | 48 | |||||
Finished goods | 308 | 281 | |||||
$ | 550 | $ | 531 |
December 31, | 2016 | 2015 | |||||
Prepaid and Other Current Assets | |||||||
Deferred income taxes (Note 5) (c) | $ | — | $ | 184 | |||
Prepaid (d) | 108 | 110 | |||||
Other | 57 | 53 | |||||
$ | 165 | $ | 347 |
December 31, | 2016 | 2015 | |||||
Other Long-term Assets | |||||||
Pension assets (Note 16) | $ | 13 | $ | 41 | |||
Insurance contracts (e) | 74 | 74 | |||||
Long-term receivables, net (f) | 46 | 33 | |||||
Deposits | 56 | 48 | |||||
Investments carried at cost | 14 | 12 | |||||
Deferred charges | 51 | 50 | |||||
Deferred income taxes (Note 5) (c) | 185 | 118 | |||||
Other | 119 | 100 | |||||
$ | 558 | $ | 476 |
December 31, | 2016 | 2015 | |||||
Other Current Liabilities | |||||||
Accrued expenses | $ | 285 | $ | 247 | |||
Payroll | 141 | 114 | |||||
Cost reduction program (Note 2) | 59 | 44 | |||||
Pension and postretirement (Note 16) | 24 | 29 | |||||
Interest payable | 78 | 71 | |||||
Employee benefit accrual | 23 | 22 | |||||
Insurance reserves | 8 | 8 | |||||
Other | 223 | 167 | |||||
$ | 841 | $ | 702 |
December 31, | 2016 | 2015 | |||||
Other Long-term Liabilities | |||||||
Pension and postretirement (Note 16) | $ | 863 | $ | 760 | |||
Tax liabilities for uncertain tax positions | 44 | 56 | |||||
Cost reduction program (Note 2) | 6 | 6 | |||||
Interest and penalties for uncertain tax positions (Note 5) | 6 | 8 | |||||
Insurance reserves | 25 | 24 | |||||
Other | 269 | 301 | |||||
$ | 1,213 | $ | 1,155 |
December 31, | 2016 | 2015 | |||||
Deferred Credits | |||||||
Deferred income taxes (Note 5) (c) | $ | 1,209 | $ | 1,328 | |||
Other | 63 | 62 | |||||
$ | 1,272 | $ | 1,390 |
December 31, | 2016 | 2015 | |||||
Accumulated Other Comprehensive Income (Loss) | |||||||
Cumulative translation adjustment - net of taxes: | |||||||
North America (g) | $ | (1,038 | ) | $ | (899 | ) | |
South America (g) | (1,969 | ) | (2,272 | ) | |||
Europe (g) | (504 | ) | (526 | ) | |||
Asia (g) | (383 | ) | (285 | ) | |||
Surface Technologies | (52 | ) | (36 | ) | |||
(3,946 | ) | (4,018 | ) | ||||
Derivatives – net of taxes | (1 | ) | (1 | ) | |||
Pension/OPEB funded status obligation (net of $352 million and $325 million tax benefit in 2016 and 2015, respectively) (Note 16) | (653 | ) | (577 | ) | |||
$ | (4,600 | ) | $ | (4,596 | ) |
(a) | In February 2016, Praxair redeemed $325 million of 5.20% notes due March 2017 resulting in a $16 million interest charge ($10 million after-tax, or $0.04 per diluted share). In December 2014, Praxair redeemed $400 |
(b) | Provisions to the allowance for doubtful accounts were $41 million, $35 million, and $39 million in 2016, 2015, and 2014, respectively. The allowance activity in each period related primarily to write-offs of uncollectible amounts, net of recoveries and currency movements. |
(c) | 2016 amounts reflect the adoption of the FASB's standard regarding Balance Sheet Classification of Deferred Taxes which requires all current deferred income tax assets and liabilities to be classified as non-current on the balance sheet (see Note 1). |
(d) | Includes estimated income tax payments of $39 million and $42 million in 2016 and 2015, respectively. |
(e) | Consists primarily of insurance contracts and other investments to be utilized for non-qualified pension and OPEB obligations. |
(f) | Long-term receivables are not material and are largely reserved. The balances at December 31, 2016 and 2015 are net of reserves of $50 million and $35 million, respectively. The amounts in both periods relate primarily to government receivables in Brazil and other long-term notes receivable from customers. Collectability is reviewed regularly and uncollectible amounts are written-off as appropriate. The account balance changes during 2016 were primarily due to additional government receivables in Brazil and foreign exchange rate movements. |
(g) | North America consists of currency translation adjustments in Canada and Mexico. South America relates primarily to Brazil and Argentina. Europe relates primarily to Spain, Italy and Germany. Asia relates primarily to Korea and India. |
(Millions of dollars) December 31, | Depreciable Lives (Yrs) | 2016 | 2015 | |||||||
Production plants (primarily 15-year life) (a) | 10-20 | $ | 14,588 | $ | 13,778 | |||||
Storage tanks | 15-20 | 2,360 | 2,196 | |||||||
Transportation equipment and other | 3-15 | 2,038 | 1,925 | |||||||
Cylinders (primarily 30-year life) | 10-30 | 1,722 | 1,654 | |||||||
Buildings | 25-40 | 1,096 | 1,085 | |||||||
Land and improvements (b) | 0-20 | 559 | 517 | |||||||
Construction in progress | 1,558 | 1,539 | ||||||||
23,921 | 22,694 | |||||||||
Less: accumulated depreciation | (12,444 | ) | (11,696 | ) | ||||||
$ | 11,477 | $ | 10,998 |
(Millions of dollars) | North America | South America | Europe | Asia | Surface Technologies | Total | |||||||||||||||||
Balance, December 31, 2014 | $ | 2,139 | $ | 147 | $ | 654 | $ | 38 | $ | 143 | $ | 3,121 | |||||||||||
Acquisitions (Note 3) | 21 | 9 | — | 23 | 3 | 56 | |||||||||||||||||
Purchase adjustments & other * | (12 | ) | — | — | — | — | (12 | ) | |||||||||||||||
Foreign currency translation | (37 | ) | (58 | ) | (72 | ) | (2 | ) | (10 | ) | (179 | ) | |||||||||||
Balance, December 31, 2015 | $ | 2,111 | $ | 98 | $ | 582 | $ | 59 | $ | 136 | $ | 2,986 | |||||||||||
Acquisitions (Note 3) | 61 | 9 | 71 | — | — | 141 | |||||||||||||||||
Purchase adjustments & other | 6 | — | — | — | 2 | 8 | |||||||||||||||||
Foreign currency translation | (13 | ) | 25 | (24 | ) | (1 | ) | (5 | ) | (18 | ) | ||||||||||||
Balance, December 31, 2016 | $ | 2,165 | $ | 132 | $ | 629 | $ | 58 | $ | 133 | $ | 3,117 |
(Millions of dollars) For the year ended December 31, 2016 | Customer & License/Use Agreements | Non-compete Agreements | Patents & Other | Total | |||||||||||
Cost: | |||||||||||||||
Balance, December 31, 2015 | $ | 698 | $ | 38 | $ | 47 | $ | 783 | |||||||
Additions (primarily acquisitions) | 72 | 4 | 6 | 82 | |||||||||||
Foreign currency translation | (16 | ) | (1 | ) | (2 | ) | (19 | ) | |||||||
Other * | (3 | ) | (7 | ) | — | (10 | ) | ||||||||
Balance, December 31, 2016 | 751 | 34 | 51 | 836 | |||||||||||
Less: accumulated amortization: | |||||||||||||||
Balance, December 31, 2015 | (179 | ) | (23 | ) | (13 | ) | (215 | ) | |||||||
Amortization expense | (41 | ) | (6 | ) | (4 | ) | (51 | ) | |||||||
Foreign currency translation | 6 | — | — | 6 | |||||||||||
Other * | — | 7 | — | 7 | |||||||||||
Balance, December 31, 2016 | (214 | ) | (22 | ) | (17 | ) | (253 | ) | |||||||
Net balance at December 31, 2016 | $ | 537 | $ | 12 | $ | 34 | $ | 583 | |||||||
(Millions of dollars) For the year ended December 31, 2015 | Customer & License/Use Agreements | Non-compete Agreements | Patents & Other | Total | |||||||||||
Cost: | |||||||||||||||
Balance, December 31, 2014 | $ | 693 | $ | 37 | $ | 47 | $ | 777 | |||||||
Additions (primarily acquisitions) | 23 | 2 | 1 | 26 | |||||||||||
Foreign currency translation | (21 | ) | (1 | ) | (1 | ) | (23 | ) | |||||||
Other * | 3 | — | — | 3 | |||||||||||
Balance, December 31, 2015 | 698 | 38 | 47 | 783 | |||||||||||
Less: accumulated amortization: | |||||||||||||||
Balance, December 31, 2014 | (147 | ) | (18 | ) | (9 | ) | (174 | ) | |||||||
Amortization expense | (37 | ) | (6 | ) | (4 | ) | (47 | ) | |||||||
Foreign currency translation | 7 | 1 | — | 8 | |||||||||||
Other * | (2 | ) | — | — | (2 | ) | |||||||||
Balance, December 31, 2015 | (179 | ) | (23 | ) | (13 | ) | (215 | ) | |||||||
Net balance at December 31, 2015 | $ | 519 | $ | 15 | $ | 34 | $ | 568 |
* | Other primarily relates to the write-off of fully amortized assets, purchase accounting adjustments and reclassifications. |
(Millions of dollars) | |||
2017 | $ | 45 | |
2018 | 42 | ||
2019 | 40 | ||
2020 | 38 | ||
2021 | 36 | ||
Thereafter | 382 | ||
$ | 583 |
(Millions of dollars) | 2016 | 2015 | |||||
Short-term | |||||||
Commercial paper and U.S. bank borrowings | $ | 333 | $ | 87 | |||
Other bank borrowings (primarily international) | 101 | 163 | |||||
Total short-term debt | 434 | 250 | |||||
Long-term (a) | |||||||
U.S. borrowings | |||||||
0.75% Notes due 2016 (b) | — | 400 | |||||
Floating Rate Notes due 2017 | 150 | 150 | |||||
5.20% Notes due 2017 (b) | — | 325 | |||||
1.05% Notes due 2017 (c) | 400 | 399 | |||||
1.20% Notes due 2018 | 499 | 499 | |||||
1.25% Notes due 2018 (d) | 478 | 480 | |||||
4.50% Notes due 2019 | 598 | 597 | |||||
1.90% Notes due 2019 | 499 | 499 | |||||
1.50% Euro denominated notes due 2020 | 627 | 646 | |||||
2.25% Notes due 2020 | 299 | 298 | |||||
4.05% Notes due 2021 | 497 | 497 | |||||
3.00% Notes due 2021 | 496 | 496 | |||||
2.45% Notes due 2022 | 597 | 596 | |||||
2.20% Notes due 2022 | 498 | 497 | |||||
2.70% Notes due 2023 | 497 | 497 | |||||
1.20% Euro denominated notes due 2024 (e) | 575 | — | |||||
2.65% Notes due 2025 | 397 | 396 | |||||
1.625% Euro denominated notes due 2025 | 519 | 535 | |||||
3.20% Notes due 2026 (e) | 725 | 446 | |||||
3.55% Notes due 2042 | 662 | 661 | |||||
Other | 12 | 3 | |||||
International bank borrowings | 49 | 57 | |||||
Obligations under capital lease | 7 | 7 | |||||
9,081 | 8,981 | ||||||
Less: current portion of long-term debt | (164 | ) | (6 | ) | |||
Total long-term debt | 8,917 | 8,975 | |||||
Total debt | $ | 9,515 | $ | 9,231 |
(a) | Amounts are net of unamortized discounts, premiums and/or debt issuance cost as applicable. |
(b) | In February 2016, Praxair repaid $400 million of 0.75% notes that became due. Also in February 2016, Praxair redeemed $325 million of 5.20% notes due March 2017 resulting in a $16 million interest charge ($10 million after-tax, or $0.04 per diluted share). |
(c) | Classified as long-term because of the Company’s intent to refinance this debt on a long-term basis and the availability of such financing under the terms of an existing $2.5 billion long-term credit facility. |
(d) | December 31, 2016 and 2015 include a $4 million and $6 million fair value increase, respectively, related to hedge accounting. See Note 12 for additional information. |
(e) | In February 2016, Praxair issued €550 million of 1.20% Euro-denominated notes due 2024. In addition, Praxair issued $275 million of 3.20% notes due 2026. The proceeds of these debt issuances were used for general corporate purposes. |
Millions of dollars | Total Facility | Borrowings Outstanding | Available for Borrowing | Expires | |||||||||
Senior Unsecured | $ | 2,500 | $ | — | $ | 2,500 | December 2019 |
(Millions of dollars) | ||||
2017 | $ | 164 | * | |
2018 | 985 | |||
2019 | 1,503 | * | ||
2020 | 938 | |||
2021 | 1,006 | |||
Thereafter | 4,485 | |||
$ | 9,081 |
Fair Value | |||||||||||||||||||||||
(Millions of dollars) | Notional Amounts | Assets | Liabilities | ||||||||||||||||||||
December 31, | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||||||||||||
Currency contracts: | |||||||||||||||||||||||
Balance sheet items (a) | $ | 2,104 | $ | 2,548 | $ | 11 | $ | 15 | $ | 18 | $ | 11 | |||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||||||||||||
Currency contracts: | |||||||||||||||||||||||
Balance sheet items (a) | $ | 38 | $ | 38 | $ | 3 | $ | 1 | $ | — | $ | — | |||||||||||
Interest rate contracts: | |||||||||||||||||||||||
Interest rate swaps (b) | 475 | 475 | 4 | 6 | — | — | |||||||||||||||||
Total Hedges | $ | 513 | $ | 513 | $ | 7 | $ | 7 | $ | — | $ | — | |||||||||||
Total Derivatives | $ | 2,617 | $ | 3,061 | $ | 18 | $ | 22 | $ | 18 | $ | 11 |
(a) | Assets are recorded in prepaid and other current assets, and liabilities are recorded in other current liabilities. |
(b) | Assets are recorded in other long term assets. |
Unrecognized Gain / (Loss) (a) | |||||||||||||
(Millions of dollars) | Year Terminated | Original Gain / (Loss) | December 31, 2016 | December 31, 2015 | |||||||||
Treasury Rate Locks | |||||||||||||
Underlying debt instrument: | |||||||||||||
$500 million 2.20% fixed-rate notes that mature in 2022 (b) | 2012 | $ | (2 | ) | $ | (1 | ) | $ | (1 | ) | |||
$500 million 3.00% fixed-rate notes that mature in 2021 (b) | 2011 | (11 | ) | (5 | ) | (6 | ) | ||||||
$600 million 4.50% fixed-rate notes that mature in 2019 (b) | 2009 | 16 | 4 | 6 | |||||||||
Total – pre-tax | $ | (2 | ) | $ | (1 | ) | |||||||
Less: income taxes | 1 | — | |||||||||||
After- tax amounts | $ | (1 | ) | $ | (1 | ) |
(a) | The unrecognized gains / (losses) for the treasury rate locks are shown in accumulated other comprehensive income ("AOCI") and are being recognized on a straight line basis to interest expense – net over the term of the underlying debt agreements. Refer to the table below summarizing the impact of the company’s consolidated statements of income and AOCI for current period gain (loss) recognition. |
(b) | The notional amount of the treasury rate lock contracts are equal to the underlying debt instrument with the exception of the treasury rate lock contract entered into to hedge the $600 million 4.50% fixed-rate notes that mature in 2019. The notional amount of this contract was $500 million. |
(Millions of dollars) | Amount of Pre-Tax Gain (Loss) Recognized in Earnings * | ||||||||||
December 31, | 2016 | 2015 | 2014 | ||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||
Currency contracts: | |||||||||||
Balance sheet items: | |||||||||||
Debt-related | $ | 21 | $ | (162 | ) | $ | (69 | ) | |||
Other balance sheet items | 4 | (8 | ) | (2 | ) | ||||||
Total | $ | 25 | $ | (170 | ) | $ | (71 | ) |
(Millions of dollars) | Amount of Gain (Loss) Recognized in AOCI | Amount of Gain (Loss) Reclassified from AOCI to the Consolidated Statement of Income | |||||||||||||||||||
December 31, | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||
Derivatives Designated as Hedging Instruments** | |||||||||||||||||||||
Currency contracts: | |||||||||||||||||||||
Net Investment hedge | $ | (4 | ) | $ | — | $ | (6 | ) | $ | — | $ | — | $ | — | |||||||
Forecasted purchases | — | — | 1 | — | — | — | |||||||||||||||
Balance sheet items | 1 | 1 | — | — | (1 | ) | — | ||||||||||||||
Interest rate contracts: | |||||||||||||||||||||
Treasury rate locks | — | — | — | (1 | ) | — | — | ||||||||||||||
Total – Pre tax | $ | (3 | ) | $ | 1 | $ | (5 | ) | $ | (1 | ) | $ | (1 | ) | $ | — | |||||
Less: income taxes | — | — | 2 | 1 | — | — | |||||||||||||||
Total - Net of Taxes | $ | (3 | ) | $ | 1 | $ | (3 | ) | $ | — | $ | (1 | ) | $ | — |
Fair Value Measurements Using | |||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Assets | |||||||||||||||||||||||
Derivative assets | $ | — | $ | — | $ | 18 | $ | 22 | $ | — | $ | — | |||||||||||
Liabilities | |||||||||||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | 18 | $ | 11 | $ | — | $ | — |
(Millions of dollars) | 2016 | 2015 | 2014 | ||||||||
Beginning Balance | $ | 113 | $ | 176 | $ | 307 | |||||
Net income | 3 | 10 | 12 | ||||||||
Distributions to noncontrolling interest | (2 | ) | (7 | ) | (9 | ) | |||||
Redemption value adjustment/accretion * | (6 | ) | (40 | ) | 2 | ||||||
Foreign currency translation and other | 7 | (17 | ) | (24 | ) | ||||||
Purchase/divestiture of noncontrolling interest ** | (104 | ) | (9 | ) | (112 | ) | |||||
Ending Balance | $ | 11 | $ | 113 | $ | 176 |
Year Ended December 31, | 2016 | 2015 | 2014 | |||||
Dividend yield | 2.9 | % | 2.2 | % | 2.0 | % | ||
Volatility | 14.4 | % | 13.5 | % | 15.2 | % | ||
Risk-free interest rate | 1.41 | % | 1.51 | % | 1.57 | % | ||
Expected term years | 6 | 5 | 5 |
Activity | Number of Options (000’s) | Average Exercise Price | Average Remaining Life | Aggregate Intrinsic Value | ||||||||
Outstanding at January 1, 2016 | 11,273 | $ | 96.58 | |||||||||
Granted | 2,473 | 102.23 | ||||||||||
Exercised | (1,821 | ) | 70.17 | |||||||||
Cancelled or expired | (217 | ) | 111.25 | |||||||||
Outstanding at December 31, 2016 | 11,708 | $ | 101.58 | 5.6 | $ | 212 | ||||||
Exercisable at December 31, 2016 | 8,018 | $ | 96.90 | 4.2 | $ | 177 |
Performance-Based | Restricted Stock | ||||||||||||
Number of Shares (000’s) | Average Grant Date Fair Value | Number of Shares (000’s) | Average Grant Date Fair Value | ||||||||||
Non-vested at January 1, 2016 | 802 | $ | 114.41 | 286 | $ | 112.48 | |||||||
Granted | 241 | 105.34 | 98 | 98.18 | |||||||||
Vested | (109 | ) | 103.79 | (93 | ) | 105.92 | |||||||
Cancelled and Forfeited | (220 | ) | 105.63 | (17 | ) | 113.91 | |||||||
Non-vested at December 31, 2016 | 714 | $ | 115.72 | 274 | $ | 109.49 |
(Millions of dollars) Year Ended December 31, | Pensions | OPEB | |||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | 45 | $ | 54 | $ | 49 | $ | 2 | $ | 3 | $ | 4 | |||||||||||
Interest cost | 100 | 112 | 121 | 6 | 7 | 11 | |||||||||||||||||
Expected return on plan assets | (157 | ) | (154 | ) | (155 | ) | — | — | — | ||||||||||||||
Net amortization and deferral | 59 | 79 | 60 | (3 | ) | (2 | ) | (8 | ) | ||||||||||||||
Net periodic benefit cost before pension settlement charges | $ | 47 | $ | 91 | $ | 75 | $ | 5 | $ | 8 | $ | 7 | |||||||||||
Pension settlement charges * | 4 | 7 | 7 | — | — | — | |||||||||||||||||
Net periodic benefit cost | $ | 51 | $ | 98 | $ | 82 | $ | 5 | $ | 8 | $ | 7 |
(Millions of dollars) Year Ended December 31, | Pensions | ||||||||||||||||||||||
2016 | 2015 | OPEB | |||||||||||||||||||||
U.S. | International | U.S. | International | 2016 | 2015 | ||||||||||||||||||
Change in Benefit Obligation ("PBO") | |||||||||||||||||||||||
Benefit obligation January 1 | $ | 1,992 | $ | 580 | $ | 2,050 | $ | 719 | $ | 160 | $ | 180 | |||||||||||
Service cost | 31 | 14 | 36 | 18 | 2 | 3 | |||||||||||||||||
Interest cost | 70 | 30 | 80 | 32 | 6 | 7 | |||||||||||||||||
Participant contributions | — | — | — | — | 10 | 10 | |||||||||||||||||
Plan amendment | — | (2 | ) | — | 2 | (7 | ) | — | |||||||||||||||
Actuarial loss (gain) | 104 | 76 | (68 | ) | (41 | ) | 4 | (9 | ) | ||||||||||||||
Benefits paid | (131 | ) | (33 | ) | (106 | ) | (32 | ) | (20 | ) | (24 | ) | |||||||||||
Foreign currency translation | — | 1 | — | (118 | ) | 1 | (7 | ) | |||||||||||||||
Benefit obligation, December 31 | $ | 2,066 | $ | 666 | $ | 1,992 | $ | 580 | $ | 156 | $ | 160 | |||||||||||
Accumulated benefit obligation ("ABO") | $ | 1,970 | $ | 639 | $ | 1,900 | $ | 551 | |||||||||||||||
Change in Plan Assets | |||||||||||||||||||||||
Fair value of plan assets, January 1 | $ | 1,509 | $ | 475 | $ | 1,607 | $ | 561 | $ | — | $ | — | |||||||||||
Actual return on plan assets | 117 | 47 | (11 | ) | 18 | — | — | ||||||||||||||||
Company contributions | — | 11 | — | 15 | — | — | |||||||||||||||||
Benefits paid from plan assets | (119 | ) | (26 | ) | (87 | ) | (28 | ) | — | — | |||||||||||||
Foreign currency translation | — | — | — | (91 | ) | — | — | ||||||||||||||||
Fair value of plan assets, December 31 | $ | 1,507 | $ | 507 | $ | 1,509 | $ | 475 | $ | — | $ | — | |||||||||||
Funded Status, End of Year | $ | (559 | ) | $ | (159 | ) | $ | (483 | ) | $ | (105 | ) | $ | (156 | ) | $ | (160 | ) | |||||
Recorded in the Balance Sheet | |||||||||||||||||||||||
Other long-term assets | $ | — | $ | 13 | $ | — | $ | 41 | $ | — | $ | — | |||||||||||
Other current liabilities | (7 | ) | (5 | ) | (12 | ) | (4 | ) | (12 | ) | (13 | ) | |||||||||||
Other long-term liabilities | (552 | ) | (167 | ) | (471 | ) | (142 | ) | (144 | ) | (147 | ) | |||||||||||
Net amount recognized, December 31 | $ | (559 | ) | $ | (159 | ) | $ | (483 | ) | $ | (105 | ) | $ | (156 | ) | $ | (160 | ) | |||||
Amounts recognized in accumulated other comprehensive income (loss) consist of: | |||||||||||||||||||||||
Net actuarial loss (gain) | $ | 832 | $ | 189 | $ | 782 | $ | 135 | $ | (20 | ) | $ | (25 | ) | |||||||||
Prior service cost (credit) | — | 12 | — | 11 | (8 | ) | (1 | ) | |||||||||||||||
Deferred tax benefit (Note 5) | (318 | ) | (46 | ) | (299 | ) | (37 | ) | 12 | 11 | |||||||||||||
Amount recognized in accumulated other comprehensive income (loss) (Note 7) | $ | 514 | $ | 155 | $ | 483 | $ | 109 | $ | (16 | ) | $ | (15 | ) |
Pensions | OPEB | ||||||||||||||
(Millions of dollars) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Current year net actuarial losses (gains)* | $ | 172 | $ | 38 | $ | 4 | $ | (9 | ) | ||||||
Amortization of net actuarial gains (losses) | (60 | ) | (78 | ) | 3 | 2 | |||||||||
Plan amendment | (2 | ) | — | (7 | ) | — | |||||||||
Amortization of prior service credits (costs) | 1 | (1 | ) | — | — | ||||||||||
Pension settlements (Note 2) | (4 | ) | (7 | ) | — | — | |||||||||
Foreign currency translation and other | (2 | ) | (24 | ) | (2 | ) | 6 | ||||||||
Total recognized in other comprehensive income | $ | 105 | $ | (72 | ) | $ | (2 | ) | $ | (1 | ) |
* | Pension net actuarial losses in 2016 are primarily driven by liability experience as well as lower U.S. discount rates. Pension net actuarial losses in 2015 relate primarily to lower actual returns on plan assets when compared with 2014 offset by higher U.S. discount rates. OPEB net actuarial losses in 2016 are largely due to unfavorable plan experience whereas gains in 2015 relate primarily to higher discount rates and favorable plan experience. |
(Millions of dollars) | Pension | OPEB | |||||
Net actuarial loss (gain) | $ | 65 | $ | 2 | |||
Prior service cost (credit) | 2 | 1 | |||||
$ | 67 | $ | 3 |
(Millions of dollars) Year Ended December 31, | Pensions | ||||||||||||||
2016 | 2015 | ||||||||||||||
U.S. | International | U.S. | International | ||||||||||||
Projected benefit obligation ("PBO") | $ | 2,066 | $ | 372 | $ | 1,992 | $ | 336 | |||||||
Accumulated benefit obligation ("ABO") | $ | 1,970 | $ | 365 | $ | 1,900 | $ | 324 | |||||||
Fair value of plan assets | $ | 1,507 | $ | 199 | $ | 1,509 | $ | 188 |
Pensions | |||||||||||||||||
U.S. | International | OPEB | |||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Weighted average assumptions used to determine benefit obligations at December 31, | |||||||||||||||||
Discount rate | 4.05 | % | 4.32 | % | 5.09 | % | 5.32 | % | 4.21 | % | 4.24 | % | |||||
Rate of increase in compensation levels | 3.25 | % | 3.25 | % | 3.73 | % | 3.57 | % | N/A | N/A | |||||||
Weighted average assumptions used to determine net periodic benefit cost for years ended December 31, | |||||||||||||||||
Discount rate (1) | 4.32 | % | 3.95 | % | 5.32 | % | 5.36 | % | 4.24 | % | 4.48 | % | |||||
Rate of increase in compensation levels | 3.25 | % | 3.25 | % | 3.57 | % | 3.72 | % | N/A | N/A | |||||||
Expected long-term rate of return on plan assets (2) | 8.00 | % | 8.00 | % | 7.92 | % | 7.71 | % | N/A | N/A |
(1) | At the end of 2015, the Company changed the approach used to measure service and interest costs for significant pension and OPEB plans. Through 2015, Praxair measured service and interest costs utilizing a single weighted-average discount rate for each plan derived from the yield curve used to measure the respective plan obligations. Effective in 2016, the Company elected to measure service and interest costs for significant plans by applying the specific spot rates along that yield curve to the plan's expected cash flows ("spot rate approach"). The Company believes the new spot rate approach provides a more precise measurement of service and interest costs by aligning the timing of the plans' expected cash flows to the corresponding spot rates on the yield curve. This change does not affect the measurement of plan obligations nor the funded status of the plans. The Company has accounted for this change as a change in accounting estimate and, accordingly has accounted for it on a prospective basis. |
(2) | The expected long term rate of return on the U.S. and international plan assets is estimated based on the plans' investment strategy and asset allocation, historical capital market performance and, to a lesser extent, historical plan performance. For the U.S. plans, the expected rate of return of 8.00% was derived based on the target asset allocation of 50%-70% equity securities (approximately 9.5% expected return), 20%-40% fixed income securities (approximately 5.5% expected return) and 2% - 10% real estate funds (approximately 7% expected return). For the international plans, the expected rate of return was derived based on the weighted average target asset allocation of 30%-50% equity securities (approximately 10% expected return), 40%-60% fixed income securities (approximately 7.5% expected return), and 0%-10% alternative investments (approximately 7.5% expected return). For the U.S. plan assets, the actual annualized total returns for the most recent 10-year and 20-year periods ended December 31, 2016 were approximately 4.9% and 6.7%, respectively. For the international plan assets, the actual annualized total returns for the same two periods were approximately 6.9% and 8.6%, respectively. Changes to plan asset allocations and investment strategy over this time period limit the value of historical plan performance as factor in estimating the expected long term rate of return. For 2017, the expected long-term rate of return on plan assets will be 8.00% for the U.S. plans. Expected weighted average returns for international plans will vary. |
OPEB | |||||
Assumed healthcare cost trend rates | 2016 | 2015 | |||
Healthcare cost trend assumed | 7.00 | % | 7.00 | % | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5.00 | % | 5.00 | % | |
Year that the rate reaches the ultimate trend rate | 2020 | 2020 |
One-Percentage Point | |||||||
(Millions of dollars) | Increase | Decrease | |||||
Effect on the total of service and interest cost components of net OPEB benefit cost | $ | — | $ | — | |||
Effect on OPEB benefit obligation | $ | 4 | $ | (3 | ) |
U.S. | International | ||||||||||||||
Asset Category | Target | 2016 | 2015 | Target | 2016 | 2015 | |||||||||
Equity securities | 50%-70% | 59 | % | 62 | % | 30%-50% | 35 | % | 50 | % | |||||
Fixed income securities | 20%-40% | 32 | % | 30 | % | 40%-60% | 56 | % | 41 | % | |||||
Other | 2% - 10% | 9 | % | 8 | % | 0%-10% | 9 | % | 9 | % |
Fair Value Measurements Using | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 ** | Total | ||||||||||||||||||||||||||||
(Millions of dollars) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||
Cash and cash equivalents | $ | 3 | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | 3 | $ | 1 | |||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||
U.S. equities | 344 | 302 | — | — | — | — | 344 | 302 | |||||||||||||||||||||||
International equities | 37 | 62 | — | — | — | — | 37 | 62 | |||||||||||||||||||||||
Mutual funds | 2 | 236 | — | — | — | — | 2 | 236 | |||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||
U.S. government bonds | — | — | 51 | 50 | — | — | 51 | 50 | |||||||||||||||||||||||
International government bonds | — | — | 159 | 89 | — | — | 159 | 89 | |||||||||||||||||||||||
Mutual funds | 104 | 91 | — | — | — | — | 104 | 91 | |||||||||||||||||||||||
Corporate bonds | — | — | 194 | 163 | — | — | 194 | 163 | |||||||||||||||||||||||
Other: | |||||||||||||||||||||||||||||||
Insurance contracts | — | — | — | — | 45 | 43 | 45 | 43 | |||||||||||||||||||||||
Real Estate Funds | — | — | — | — | 135 | 123 | 135 | 123 | |||||||||||||||||||||||
Total plan assets at fair value, December 31, | $ | 490 | $ | 692 | $ | 404 | $ | 302 | $ | 180 | $ | 166 | $ | 1,074 | $ | 1,160 | |||||||||||||||
Pooled funds * | 940 | 824 | |||||||||||||||||||||||||||||
Total fair value plan assets December 31, | $ | 2,014 | $ | 1,984 |
(Millions of dollars) | Insurance Contracts | Real Estate Funds | Total | ||||||||
Balance, December 31, 2014 | $ | 53 | $ | 110 | $ | 163 | |||||
Gain/(Loss) for the period | (4 | ) | 13 | 9 | |||||||
Acquisitions | — | — | — | ||||||||
Foreign currency translation | (6 | ) | — | (6 | ) | ||||||
Balance, December 31, 2015 | 43 | 123 | 166 | ||||||||
Gain/(Loss) for the period | 3 | 12 | 15 | ||||||||
Acquisitions | — | — | — | ||||||||
Foreign currency translation | (1 | ) | — | (1 | ) | ||||||
Balance, December 31, 2016 | $ | 45 | $ | 135 | $ | 180 |
(Millions of dollars) | Pensions | ||||||||||
Year Ended December 31, | U.S. | International | OPEB | ||||||||
2017 | $ | 105 | $ | 32 | $ | 13 | |||||
2018 | 115 | 32 | 12 | ||||||||
2019 | 122 | 35 | 12 | ||||||||
2020 | 123 | 37 | 11 | ||||||||
2021 | 126 | 38 | 11 | ||||||||
2022-2026 | 661 | 210 | 47 |
• | During May 2009, the Brazilian government published Law 11941/2009 instituting a new voluntary amnesty program (“Refis Program”) which allowed Brazilian companies to settle certain federal tax disputes at reduced amounts. During the 2009 third quarter, Praxair decided that it was economically beneficial to settle many of its outstanding federal tax disputes and such disputes were enrolled in the Refis Program, subject to final calculation and review by the Brazilian federal government. The Company recorded estimated liabilities based on the terms of the Refis Program. Since 2009, Praxair has been unable to reach final agreement on the calculations and recently initiated litigation against the government in an attempt to resolve certain items. Open issues relate to the following matters: (i) application of cash deposits and net operating loss carryforwards to satisfy obligations and (ii) the amount of tax reductions available under the Refis Program. It is difficult to estimate the timing of resolution of legal matters in Brazil. |
• | At December 31, 2016 the most significant non-income and income tax claims in Brazil, after enrollment in the Refis Program, relate to state VAT tax matters and a federal income tax matter where the taxing authorities are challenging the tax rate that should be applied to income generated by a subsidiary company. The total estimated exposure relating to such claims, including interest and penalties, as appropriate, is approximately $225 million. Praxair has not recorded any liabilities related to such claims based on management judgments, after considering judgments and opinions of outside counsel. Because litigation in Brazil historically takes many years to resolve, it is very difficult to estimate the timing of resolution of these matters; however, it is possible that certain of these matters may be resolved within the near term. The company is vigorously defending against the proceedings. |
• | On September 1, 2010, CADE ("Brazilian Administrative Council for Economic Defense") announced alleged anticompetitive activity on the part of five industrial gas companies in Brazil and imposed fines on all five companies. Originally, CADE imposed a civil fine of R$2.2 billion Brazilian reais (US$675 million) against White Martins, the Brazil-based subsidiary of Praxair, Inc. In response to a motion for clarification, the fine was reduced to R$1.7 billion Brazilian reais (US$522 million) due to a calculation error made by CADE. The amount of the fine is subject to indexation using SELIC. On September 2, 2010, Praxair issued a press release and filed a report on Form 8-K rejecting all claims and stating that the fine represents a gross and arbitrary disregard of Brazilian law. |
(Millions of dollars) Expiring through December 31, | Unconditional Purchase Obligations | Construction Commitments | |||||
2017 | $ | 585 | $ | 836 | |||
2018 | 534 | 271 | |||||
2019 | 476 | 125 | |||||
2020 | 422 | — | |||||
2021 | 434 | — | |||||
Thereafter | 2,645 | — | |||||
$ | 5,096 | $ | 1,232 |
(Millions of dollars) | 2016 | 2015 | 2014 | ||||||||
Sales (a) | |||||||||||
North America | $ | 5,592 | $ | 5,865 | $ | 6,436 | |||||
Europe | 1,392 | 1,320 | 1,546 | ||||||||
South America | 1,399 | 1,431 | 1,993 | ||||||||
Asia | 1,555 | 1,551 | 1,619 | ||||||||
Surface Technologies | 596 | 609 | 679 | ||||||||
$ | 10,534 | $ | 10,776 | $ | 12,273 |
2016 | 2015 | 2014 | |||||||||
Operating Profit | |||||||||||
North America | $ | 1,430 | $ | 1,558 | $ | 1,580 | |||||
Europe | 273 | 250 | 291 | ||||||||
South America | 257 | 291 | 449 | ||||||||
Asia | 276 | 289 | 303 | ||||||||
Surface Technologies | 102 | 105 | 123 | ||||||||
Segment operating profit | 2,338 | 2,493 | 2,746 | ||||||||
Cost reduction program and other charges (Note 2) | (100 | ) | (172 | ) | (138 | ) | |||||
Total operating profit | $ | 2,238 | $ | 2,321 | $ | 2,608 |
2016 | 2015 | 2014 | |||||||||
Total Assets (b) | |||||||||||
North America | $ | 10,019 | $ | 9,748 | $ | 10,187 | |||||
Europe | 2,928 | 2,704 | 2,996 | ||||||||
South America | 2,748 | 2,124 | 2,718 | ||||||||
Asia | 2,984 | 3,113 | 3,194 | ||||||||
Surface Technologies | 653 | 630 | 674 | ||||||||
$ | 19,332 | $ | 18,319 | $ | 19,769 |
2016 | 2015 | 2014 | |||||||||
Depreciation and Amortization | |||||||||||
North America | $ | 614 | $ | 609 | $ | 611 | |||||
Europe | 155 | 145 | 168 | ||||||||
South America | 133 | 135 | 177 | ||||||||
Asia | 179 | 176 | 170 | ||||||||
Surface Technologies | 41 | 41 | 44 | ||||||||
$ | 1,122 | $ | 1,106 | $ | 1,170 |
2016 | 2015 | 2014 | |||||||||
Capital Expenditures and Acquisitions | |||||||||||
North America | $ | 989 | $ | 869 | $ | 837 | |||||
Europe | 402 | 227 | 319 | ||||||||
South America | 232 | 285 | 373 | ||||||||
Asia | 165 | 208 | 310 | ||||||||
Surface Technologies | 40 | 34 | 56 | ||||||||
$ | 1,828 | $ | 1,623 | $ | 1,895 |
2016 | 2015 | 2014 | |||||||||
Sales by Product Group | |||||||||||
Atmospheric gases and related | $ | 7,329 | $ | 7,595 | $ | 8,623 | |||||
Process gases and other | 2,609 | 2,572 | 2,971 | ||||||||
Surface technologies | 596 | 609 | 679 | ||||||||
$ | 10,534 | $ | 10,776 | $ | 12,273 |
2016 | 2015 | 2014 | |||||||||
Sales by Major Country | |||||||||||
United States | $ | 4,623 | $ | 4,771 | $ | 5,171 | |||||
Brazil | 1,091 | 1,107 | 1,511 | ||||||||
Other – foreign | 4,820 | 4,898 | 5,591 | ||||||||
$ | 10,534 | $ | 10,776 | $ | 12,273 |
2016 | 2015 | 2014 | |||||||||
Long-lived Assets by Major Country (c) | |||||||||||
United States | $ | 4,922 | $ | 4,825 | $ | 4,817 | |||||
Brazil | 1,262 | 986 | 1,344 | ||||||||
Other – foreign | 5,293 | 5,187 | 5,836 | ||||||||
$ | 11,477 | $ | 10,998 | $ | 11,997 |
(a) | Sales reflect external sales only. Intersegment sales, primarily from North America to other segments, were not material. |
(b) | Includes equity investments as of December 31, as follows: |
(Millions of dollars) | 2016 | 2015 | 2014 | ||||||||
North America | $ | 121 | $ | 127 | $ | 132 | |||||
Europe | 243 | 195 | 207 | ||||||||
Asia | 353 | 343 | 354 | ||||||||
$ | 717 | $ | 665 | $ | 693 |
(c) | Long-lived assets include property, plant and equipment – net. |
2016 | 1Q (a) | 2Q | 3Q (a) | 4Q | YEAR (a) | ||||||||||||||
Sales | $ | 2,509 | $ | 2,665 | $ | 2,716 | $ | 2,644 | $ | 10,534 | |||||||||
Cost of sales, exclusive of depreciation and amortization | $ | 1,381 | $ | 1,468 | $ | 1,533 | $ | 1,478 | $ | 5,860 | |||||||||
Depreciation and amortization | $ | 272 | $ | 281 | $ | 284 | $ | 285 | $ | 1,122 | |||||||||
Operating profit | $ | 554 | $ | 588 | $ | 497 | $ | 599 | $ | 2,238 | |||||||||
Net income – Praxair, Inc. | $ | 356 | $ | 399 | $ | 339 | $ | 406 | $ | 1,500 | |||||||||
Basic Per Share Data | |||||||||||||||||||
Net income | $ | 1.25 | $ | 1.40 | $ | 1.19 | $ | 1.42 | $ | 5.25 | |||||||||
Weighted average shares (000’s) | 285,429 | 285,702 | 285,858 | 285,720 | 285,677 | ||||||||||||||
Diluted Per Share Data | |||||||||||||||||||
Net income | $ | 1.24 | $ | 1.39 | $ | 1.18 | $ | 1.41 | $ | 5.21 | |||||||||
Weighted average shares (000’s) | 286,665 | 287,727 | 288,195 | 287,956 | 287,757 |
2015 | 1Q | 2Q (a) | 3Q (a) | 4Q | YEAR (a) | ||||||||||||||
Sales | $ | 2,757 | $ | 2,738 | $ | 2,686 | $ | 2,595 | $ | 10,776 | |||||||||
Cost of sales, exclusive of depreciation and amortization | $ | 1,530 | $ | 1,516 | $ | 1,488 | $ | 1,426 | $ | 5,960 | |||||||||
Depreciation and amortization | $ | 277 | $ | 278 | $ | 276 | $ | 275 | $ | 1,106 | |||||||||
Operating profit | $ | 623 | $ | 480 | $ | 594 | $ | 624 | $ | 2,321 | |||||||||
Net income – Praxair, Inc. | $ | 416 | $ | 308 | $ | 401 | $ | 422 | $ | 1,547 | |||||||||
Basic Per Share Data | |||||||||||||||||||
Net income | $ | 1.44 | $ | 1.07 | $ | 1.40 | $ | 1.48 | $ | 5.39 | |||||||||
Weighted average shares (000’s) | 289,143 | 287,939 | 285,651 | 285,288 | 287,005 | ||||||||||||||
Diluted Per Share Data | |||||||||||||||||||
Net income | $ | 1.43 | $ | 1.06 | $ | 1.40 | $ | 1.47 | $ | 5.35 | |||||||||
Weighted average shares (000’s) | 291,652 | 290,102 | 287,311 | 286,856 | 289,055 |
(a) | 2016 and 2015 include the impact of the following charges (see Notes 2, 11 & 16): |
(Millions of dollars) | Operating Profit/ (Loss) | Net Income/ (Loss) | Diluted Earnings Per Share | ||||||||
Bond Redemption -Q1 | $ | — | $ | (10 | ) | $ | (0.04 | ) | |||
Cost reduction program and other charges - Q3 | (96 | ) | (63 | ) | (0.22 | ) | |||||
Pension settlement charge - Q3 | (4 | ) | (3 | ) | (0.01 | ) | |||||
Year 2016 | $ | (100 | ) | $ | (76 | ) | $ | (0.27 | ) | ||
Cost reduction program and other charges - Q2 | $ | (146 | ) | $ | (112 | ) | $ | (0.39 | ) | ||
Cost reduction program and other charges - Q3 | (19 | ) | (13 | ) | (0.04 | ) | |||||
Pension settlement charge - Q3 | (7 | ) | (5 | ) | (0.02 | ) | |||||
Year 2015 | $ | (172 | ) | $ | (130 | ) | $ | (0.45 | ) |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | ||||||
Equity compensation plans approved by shareholders | 12,695,921 | (1) | $ | 93.67 | 3,993,818 | ||||
Equity compensation plans not approved by shareholders | — | — | — | ||||||
Total | 12,695,921 | $ | 93.67 | 3,993,818 |
(1) | This amount includes 274,422 restricted shares and 713,620 performance shares. Up to an additional 713,620 performance shares could be issued if performance goals are achieved at the maximum specified targets. See Note 15 to the consolidated financial statements. |
(a) | The following documents are filed as part of this report: |
(1) | The company’s 2016 Consolidated Financial Statements and the Report of the Independent Registered Public Accounting Firm are included in Part II, Item 8. Financial Statements and Supplementary Data. |
(2) | Financial Statement Schedules – All financial statement schedules have been omitted because they are not applicable or the required information is shown in the financial statements or notes thereto. |
(3) | Exhibits – The exhibits filed as part of this Annual Report on Form 10-K are listed in the accompanying index. |
PRAXAIR, INC. | ||||||
(Registrant) | ||||||
Date: March 1, 2017 | By: | /s/ KELCEY E. HOYT | ||||
Kelcey E. Hoyt Vice President and Controller (On behalf of the Registrant and as Chief Accounting Officer) |
/s/ STEPHEN F. ANGEL | /s/ MATTHEW J. WHITE | /s/ OSCAR DE PAULA BERNARDES | ||
Stephen F. Angel Chairman, President, Chief Executive Officer and Director | Matthew J. White Senior Vice President and Chief Financial Officer | Oscar de Paula Bernardes Director | ||
/s/ NANCE K. DICCIANI | /s/ EDWARD G. GALANTE | /s/ IRA D. HALL | ||
Nance K. Dicciani Director | Edward G. Galante Director | Ira D. Hall Director | ||
/s/ RAYMOND W. LEBOEUF | /s/ LARRY D. MCVAY | /s/ MARTIN H. RICHENHAGEN | ||
Raymond W. LeBoeuf Director | Larry D. McVay Director | Martin H. Richenhagen Director | ||
/s/ WAYNE T. SMITH | /s/ ROBERT L. WOOD | |||
Wayne T. Smith Director | Robert L. Wood Director |
Exhibit No. | Description | |
3.01 | Restated Certificate of Incorporation of Praxair, Inc. as filed with the Secretary of State of the State of Delaware on April 27, 2012 (Filed as Exhibit 3.01 to the Company’s Current Report on Form 8-K dated April 30, 2012, Filing No. 1-11037, and incorporated herein by reference). | |
3.02 | Amended and Restated By-Laws of Praxair, Inc. (Filed as Exhibit 3.02 to the Company’s Current Report on Form 8-K dated January 29, 2016, Filing No. 1-11037, and incorporated herein by reference). | |
3.03 | Certificate of Designations for the 7.48% Cumulative Preferred Stock, Series A (Filed on February 13, 1997 as Exhibit 3.3 to Amendment #1 to the Company’s Registration Statement on Form S-3, Registration No. 333-18141). | |
3.04 | Certificate of Designations for the 6.75% Cumulative Preferred Stock, Series B (Filed on February 13, 1997 as Exhibit 3.4 to Amendment #1 to the Company’s Registration Statement on Form S-3, Registration No. 333-18141). | |
4.01 | Common Stock Certificate (Filed as Exhibit 4.01 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
4.02a | Indenture, dated as of July 15, 1992, between Praxair, Inc. and U.S. Bank National Association, as the ultimate successor trustee to Bank of America, Illinois, formerly Continental Bank, National Association (Filed as Exhibit 4 to the Company’s Current Report on Form 8-K dated March 19, 2007, Filing No. 1-11037, and incorporated herein by reference). | |
4.02b | Form of Subordinated Indenture was filed as Exhibit 4.3 to the Company’s Form S-3 filed on May 12, 2015, and is incorporated herein by reference. | |
4.03 | Copies of the agreements relating to long-term debt which are not required to be filed as exhibits to this Annual Report on Form 10-K will be furnished to the Securities and Exchange Commission upon request. | |
4.04 | Series A Preferred Stock Certificate (Filed on February 7, 1997 as Exhibit 4.3 to Amendment #1 to the Company’s Registration Statement on Form S-3, Registration No. 333-18141). | |
4.05 | Series B Preferred Stock Certificate (Filed on February 7, 1997 as Exhibit 4.4 to Amendment #1 to the Company’s Registration Statement on Form S-3, Registration No. 333-18141). | |
*10.01 | Restated 2002 Praxair, Inc. Long Term Incentive Plan (Filed as Exhibit 10.01 to the Company’s 2003 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.01a | Amendment, dated as of October 24, 2006, to the Amended and Restated 2002 Praxair, Inc. Long Term Incentive Plan (Filed as Exhibit 10.01a to the Company’s 2006 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.01b | Amendment, dated as of January 23, 2007, to the Amended and Restated 2002 Praxair, Inc. Long Term Incentive Plan (Filed as Exhibit 10.01b to the Company’s 2006 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.01c | Form of Standard Option Award under the 2002 Praxair, Inc. Long Term Incentive Plan (Filed as Exhibit 10.01c to the Company’s 2007 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.01d | Form of Transferable Option Award under the 2002 Praxair, Inc. Long Term Incentive Plan (Filed as Exhibit 10.01d to the Company’s 2007 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). |
Exhibit No. | Description | |
*10.02 | Form of Executive Severance Compensation Agreement effective January 1, 2009 (Filed as Exhibit 10.02 to the Company’s 2008 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.02a | Form of Amendment, effective December 31, 2012, to Executive Severance Compensation Agreements that were effective January 1, 2009 (Filed as Exhibit 10.1 to the Company's Current Report on Form 8-K dated December 14, 2012, Filing No. 1-11037, and incorporated herein by reference. | |
*10.02b | Form of Executive Severance Compensation Agreement effective January 1, 2010 (Filed as Exhibit 10.02 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010, Filing No. 1-11037, and incorporated herein by reference). | |
*10.02c | Form of Amendment, effective December 31, 2012, to Executive Severance Compensation Agreements that were effective January 1, 2010 (Filed as Exhibit 10.02c to the Company’s 2012 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.02d | Form of Executive Severance Compensation Agreement effective January 1, 2013 (Filed as Exhibit 10.02d to the Company’s 2012 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.03 | Praxair, Inc. Variable Compensation Plan amended and restated effective April 24, 2012 (Filed as Exhibit 10.01 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, Filing No. 1-11037, and incorporated herein by reference). | |
*10.04 | Amended and Restated 1995 Stock Option Plan for Non-Employee Directors (Filed as Exhibit 10.04 to the Company’s 2003 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.04a | First Amendment, dated as of October 24, 2006, to the Amended and Restated 1995 Stock Option Plan for Non-Employee Directors (Filed as Exhibit 10.04a to the Company’s 2006 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.04b | 2005 Equity Compensation Plan for Non-Employee Directors of Praxair, Inc. amended and restated effective January 26, 2010 (Filed as Exhibit 10.04b to the Company’s 2009 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.04c | Form of Option Award under the 2005 Equity Compensation Plan for Non-Employee Directors of Praxair, Inc (Filed as Exhibit 10.04a to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, Filing No. 1-11037, and incorporated herein by reference). | |
*10.05a | Praxair, Inc. Supplemental Retirement Income Plan A effective January 1, 2008 (Filed as Exhibit 10.05a to the Company’s 2008 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.05b | First amendment to the Praxair, Inc. Supplemental Retirement Income Plan A effective January 1, 2010 (Filed as Exhibit 10.05b to the Company’s 2009 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.05c | Second Amendment to Praxair, Inc. Supplemental Retirement Income Plan A effective February 28, 2017 is filed herewith. | |
*10.05d | Praxair, Inc. Supplemental Retirement Income Plan B amended and restated effective December 31, 2007 (Filed as Exhibit 10.05b to the Company’s 2008 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.05e | First amendment to the Praxair, Inc. Supplemental Retirement Income Plan B effective January 1, 2010 (Filed as Exhibit 10.05d to the Company’s 2009 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.05f | Second Amendment to Praxair, Inc. Supplemental Retirement Income Plan B effective July 1, 2012 (Filed as Exhibit 10.05e to the Company’s 2012 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.05g | Third Amendment to Praxair, Inc. Supplemental Retirement Income Plan B effective February 28, 2017 is filed herewith. | |
Exhibit No. | Description | |
*10.05h | Praxair, Inc. Equalization Benefit Plan amended and restated effective December 31, 2007 (Filed as Exhibit 10.05c to the Company’s 2008 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.05i | First amendment to the Praxair, Inc. Equalization Benefit Plan effective January 1, 2010 (Filed as Exhibit 10.05f to the Company’s 2009 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.05j | Second Amendment to the Praxair, Inc. Equalization Benefit Plan effective February 28, 2017 is filed herewith. | |
*10.06 | Praxair, Inc. Director’s Fees Deferral Plan amended and restated effective January 26, 2010 (Filed as Exhibit 10.06 to the Company’s 2009 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.07 | Praxair, Inc. Compensation Deferral Program Amended and Restated as of July 15, 2014 (Filed as Exhibit 10.01 to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, Filing No. 1-11037, and incorporated herein by reference). | |
*10.07a | First Amendment to the Praxair Compensation Deferral Program effective February 28, 2017 is filed herewith. | |
10.08 | Transfer Agreement dated January 1, 1989, between Union Carbide Corporation and the registrant (Filed as Exhibit 10.06 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.08a | Amendment No. 1 dated as of December 31, 1989, to the Transfer Agreement (Filed as Exhibit 10.07 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.08b | Amendment No. 2 dated as of July 2, 1990, to the Transfer Agreement (Filed as Exhibit 10.08 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.08c | Amendment No. 3 dated as of January 2, 1991, to the Transfer Agreement (Filed as Exhibit 10.09 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.09 | Transfer Agreement dated January 1, 1989, between Union Carbide Corporation and Union Carbide Coatings Service Corporation (Filed as Exhibit 10.14 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.09a | Amendment No. 1 dated as of December 31, 1989, to the Transfer Agreement (Filed as Exhibit 10.15 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.09b | Amendment No. 2 dated as of July 2, 1990, to the Transfer Agreement (Filed as Exhibit 10.16 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.10 | Additional Provisions Agreement dated as of June 4, 1992 (Filed as Exhibit 10.21 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.11 | Amended and Restated Realignment Indemnification Agreement dated as of June 4, 1992 (Filed as Exhibit 10.23 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.12 | Environmental Management, Services and Liabilities Allocation Agreement dated as of January 1, 1990 (Filed as Exhibit 10.13 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.12a | Amendment No. 1 to the Environmental Management, Services and Liabilities Allocation Agreement dated as of June 4, 1992 (Filed as Exhibit 10.22 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
Exhibit No. | Description | |
10.13 | Danbury Lease-Related Services Agreement dated as of June 4, 1992 (Filed as Exhibit 10.24 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.13a | First Amendment to Danbury Lease-Related Services Agreement (Filed as Exhibit 10.13a to the Company’s 1994 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
10.14 | Danbury Lease Agreements, as amended (Filed as Exhibit 10.26 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.14a | Second Amendment to Linde Data Center Lease (Danbury) (Filed as Exhibit 10.14a to the Company’s 1993 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
10.14b | Fourth Amendment to Carbide Center Lease (Filed as Exhibit 10.14b to the Company’s 1993 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
10.14c | Third Amendment to Linde Data Center Lease (Filed as Exhibit 10.14c to the Company’s 1994 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
10.14d | Fifth Amendment to Carbide Center Lease (Filed as Exhibit 10.14d to the Company’s 1994 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
10.14e | Sixth Amendment to Carbide Center Lease (Filed as Exhibit 10.14e to the Company’s 2004 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
10.15 | Employee Benefits Agreement dated as of June 4, 1992 (Filed as Exhibit 10.25 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.15a | First Amendatory Agreement to the Employee Benefits Agreement (Filed as Exhibit 10.15a to the Company’s 1994 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
10.16 | Tax Disaffiliation Agreement dated as of June 4, 1992 (Filed as Exhibit 10.20 to the Company’s Registration Statement on Form 10, Filing No. 1-11037, and incorporated herein by reference). | |
10.17 | Credit Agreement dated as of December 19, 2014 among Praxair, Inc. and the Eligible Subsidiaries Referred to therein, the Lenders listed therein, and Bank of America, N.A., as Administrative Agent, Citibank N.A., Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc., as Syndication Agents was filed as Exhibit 10.1 to the Company’s current report on Form 8-K, dated December 22, 2014, Filing No. 1-11037, and is incorporated herein by reference. | |
*10.18 | Praxair, Inc. Plan for Determining Performance-Based Awards Under Section 162(m) (Filed as Exhibit 10.01 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, Filing No. 1-11037, and incorporated herein by reference). | |
*10.19 | Service Credit Arrangement for Stephen F. Angel dated May 23, 2007 was filed as Exhibit 10.20 to the Company’s Form 8-K filed on May 24, 2007 and is incorporated herein by reference. | |
*10.20 | 2009 Praxair, Inc. Long Term Incentive Plan as amended on April 27, 2010, January 25, 2011 and October 23, 2012 was filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K dated December 14, 2012 Filing No. 1-11037, and incorporated herein by reference. | |
*10.21 | Form of Standard Option Award under the 2009 Praxair, Inc. Long Term Incentive Plan (Filed as Exhibit 10.22 to the Company’s 2009 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.22 | Form of Transferable Option Award under the 2009 Praxair, Inc. Long Term Incentive Plan (Filed as Exhibit 10.23 to the Company’s 2009 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
Exhibit No. | Description | |
*10.23 | Form of Restricted Stock Unit Award under the 2009 Praxair, Inc. Long Term Incentive Plan (Filed as Exhibit 10.24 to the Company’s 2009 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.24a | Form of Performance Share Unit Award under the 2009 Praxair, Inc. Long Term Incentive Plan for grants made from 2010-2013 (Filed as Exhibit 10.25 to the Company’s 2009 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.24b | Form of Performance Share Unit Award under the 2009 Praxair, Inc. Long Term Incentive Plan for grants made in 2013-2014 with Earnings Per Share performance metrics (Filed as Exhibit 10.24b to the Company’s 2012 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.24c | Form of Performance Share Unit Award under the 2009 Praxair, Inc. Long Term Incentive Plan for grants made in 2013-2014 with Return on Capital performance metrics (Filed as Exhibit 10.24c to the Company’s 2012 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.25 | Amended and Restated 2009 Praxair, Inc. Long Term Incentive Plan (Filed as Exhibit 10.01 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, Filing No. 1-11037, and incorporated herein by reference). | |
*10.26 | Form of Transferable Option Award under the Amended and Restated 2009 Praxair, Inc. Long Term Incentive Plan for grants made in 2015 and thereafter (Filed as Exhibit 10.26 to the Company’s 2014 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.27 | Form of Restricted Stock Unit Award under the Amended and Restated 2009 Praxair, Inc. Long Term Incentive Plan for grants made in 2015 and thereafter (Filed as Exhibit 10.27 to the Company’s 2014 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.28a | Form of Performance Share Unit Award under the Amended and Restated 2009 Praxair, Inc. Long Term Incentive Plan for grants made in 2015 and thereafter with Earnings Per Share performance metrics (Filed as Exhibit 10.28A to the Company’s 2014 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.28b | Form of Performance Share Unit Award under the Amended and Restated 2009 Praxair, Inc. Long Term Incentive Plan for grants made in 2015 and thereafter with Return on Capital performance metrics (Filed as Exhibit 10.28B to the Company’s 2014 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.28c | Form of Performance Share Unit Award under the Amended and Restated 2009 Praxair, Inc. Long Term Incentive Plan for grants made in 2016 and thereafter with Total Shareholder Return performance metrics (Filed as Exhibit 10.28C to the Company’s 2015 Annual Report on Form 10-K, Filing No. 1-11037, and incorporated herein by reference). | |
*10.28d | Form of Non-Employee Director Restricted Stock Unit Award under the Amended and Restated 2009 Praxair, Inc. Long Term Incentive Plan (Filed as Exhibit 10.01 to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, Filing No. 1-11037, and incorporated herein by reference. | |
10.29 | Form of Standard Underwriting Provisions was filed as Exhibit 1.1 to the Company’s Registration Statement on Form S-3 filed on May 12, 2015, and is incorporated herein by reference. | |
10.30 | Terms Agreement dated March 4, 2014 among the Company and Credit Suisse Securities (Europe) Limited, Deutsche Bank AG, London Branch and HSBC Bank plc, acting on behalf of the several underwriters for the issuance and sale of €600,000,000 1.500% Notes due 2020, was filed as Exhibit 1 to the Company’s current report on Form 8-K dated March 5, 2014, Filing No. 1-11037, and incorporated herein by reference. | |
Exhibit No. | Description | |
10.31 | Terms Agreement dated November 21, 2014 among the Company and Citigroup Global Markets Limited, Deutsche Bank AG, London Branch, HSBC Bank plc and Merrill Lynch International, acting on behalf of the several underwriters for the issuance and sale of €500,000,000 1.625% Notes due 2025, was filed as Exhibit 1 to the Company’s current report on Form 8-K dated November 24, 2014, Filing No. 1-11037, and incorporated herein by reference. | |
10.32 | Terms Agreement dated September 21, 2015 among the Company and Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and Mitsubishi UFJ Securities (USA), acting on behalf of the several underwriters for the issuance and sale of $300,000,000 2.250% Notes due 2020 and $450,000,000 3.200% Notes due 2026, was filed as Exhibit 1 to the Company’s current report on Form 8-K dated September 24, 2015, Filing No. 1-11037, and incorporated herein by reference. | |
10.33 | Terms Agreement dated February 4, 2016 among the Company and Credit Suisse Securities (Europe) Limited, Deutsche Bank AG, London Branch and Merrill Lynch International, acting on behalf of the several underwriters for the issuance and sale of €550,000,000 1.200% Notes due 2024, was filed as Exhibit 1.1 to the Company’s current report on Form 8-K dated February 8, 2016, Filing No. 1-11037, and incorporated herein by reference. | |
10.34 | Terms Agreement dated February 4, 2016 among the Company and J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and Wells Fargo Securities, LLC, acting on behalf of the several underwriters for the issuance and sale of $275,000,000 3.200% Notes due 2026, was filed as Exhibit 1.2 to the Company’s current report on Form 8-K dated February 8, 2016, Filing No. 1-11037, and incorporated herein by reference. | |
12.01 | Computation of Ratio of Earnings to Fixed Charges. | |
21.01 | Subsidiaries of Praxair, Inc. | |
23.01 | Consent of Independent Registered Public Accounting Firm. | |
31.01 | Rule 13a-14(a) Certification | |
31.02 | Rule 13a-14(a) Certification | |
32.01 | Section 1350 Certification (such certifications are furnished for the information of the Commission and shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act). | |
32.02 | Section 1350 Certification (such certifications are furnished for the information of the Commission and shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act). | |
101.INS | XBRL Instance Document | |
101.SCH | XBRL Taxonomy Extension Schema | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |
101.LAB | XBRL Taxonomy Extension Label Linkbase | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase |
RATIO OF EARNINGS TO FIXED CHARGES | |||||||||||||||||||
Praxair, Inc. and Subsidiaries | |||||||||||||||||||
Exhibit 12.01 | |||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||
(Dollar amounts in millions, except ratios) | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||
Pre-tax income from continuing operations before adjustment for | |||||||||||||||||||
noncontrolling interests in consolidated subsidiaries or income or | |||||||||||||||||||
loss from equity investees | $ | 2,048 | $ | 2,160 | $ | 2,395 | $ | 2,447 | $ | 2,296 | |||||||||
Capitalized interest | (34 | ) | (33 | ) | (38 | ) | (69 | ) | (70 | ) | |||||||||
Depreciation of capitalized interest | 19 | 22 | 27 | 20 | 20 | ||||||||||||||
Dividends from less than 50%-owned companies carried at equity | 8 | 11 | 6 | 10 | 7 | ||||||||||||||
Adjusted pre-tax income from continuing operations before adjustment | |||||||||||||||||||
for noncontrolling interests in consolidated subsidiaries or income | |||||||||||||||||||
or loss from equity investees | $ | 2,041 | $ | 2,160 | $ | 2,390 | $ | 2,408 | $ | 2,253 | |||||||||
Fixed charges | |||||||||||||||||||
Interest on long-term and short-term debt | $ | 190 | $ | 161 | $ | 213 | $ | 178 | $ | 141 | |||||||||
Capitalized interest | 34 | 33 | 38 | 69 | 70 | ||||||||||||||
Rental expenses representative of an interest factor | 47 | 47 | 52 | 43 | 39 | ||||||||||||||
Total fixed charges | $ | 271 | $ | 241 | $ | 303 | $ | 290 | $ | 250 | |||||||||
Adjusted pre-tax income from continuing operations before adjustment | |||||||||||||||||||
for noncontrolling interests in consolidated subsidiaries or income or | |||||||||||||||||||
loss from equity investees plus total fixed charges | $ | 2,312 | $ | 2,401 | $ | 2,693 | $ | 2,698 | $ | 2,503 | |||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 8.5 | 10.0 | 8.9 | 9.3 | 10.0 |
Place of Incorporation | |
10 Riverview Drive LLC | Delaware |
Acetylene Oxygen Company | Texas |
Almacenes Geneva S.A. | Panama |
Almacenes Geneva-David, S.A. | Panama |
Antwerpse Chemische Bedrijven (LCB) N. V. | Belgium |
Argon (Isotank) Limited | Scotland |
Beijing Praxair Huashi Carbon Dioxide Co., Ltd. | China |
Beijing Praxair, Inc. | China |
Coatec Gesellschaft für Oberflächenveredelung mbH | Germany |
Consultora Rynuter S.A. | Uruguay |
Dablioeme Participacoes Ltda | Brazil |
Distribuciones Invegas SCA | Venezuela |
Dominion Gas Asia Pacific Pte Limited | Singapore |
Dominion Gas Asia Pte Limited | Singapore |
Dominion Oilfield Services Limited | Scotland |
Dominion Oilfield Services Limited | Ghana |
Dominion Technology Gases Holdings Limited | Scotland |
Dominion Technology Gases Investment Limited | Scotland |
Dominion Technology Gases Limited | Scotland |
Domolife S.r.l. | Italy |
Dryce S.r.l. | Italy |
Empresas Geneva, S.A. | Panama |
Famex Comercio Atacadista de Gas Carbonico Ltda. | Brazil |
Famex Rio Comercio de Gas Carbonico e Equipamentos de Combate a Incendio Ltda. | Brazil |
Gama Gases Especials Ltda. | Brazil |
Garland Welding Supply Company | Texas |
Gases de Ensenada S.A. | Argentina |
Gases Industriales, S.A. | Panama |
Gases Tachira S.A. | Venezuela |
GemGas S.r.l. | Italy |
Global Gas Supplies (Aberdeen) Limited | Scotland |
Global Gas Supplies Limited | Scotland |
GNC Matco Compressco de Gus Natural Ltda. | Brazil |
GNL Gemini Comercializacao e Logistica de Gas Ltda. | Brazil |
Grenslandgas G.m.b.H. | Germany |
Great Lakes Street, Inc. | Delaware |
Helium Centre Pte. Ltd. | Singapore |
Industria Paraguaya de Gases S.r l | Paraguay |
Industria Venezoelana de Gas INVEGAS, S.C.A. | Venezuela |
Inmobiliaria Radial, S.A. | Panama |
Inversionista Metropolitana, S.A. | Panama |
Joint Stock Company “Volgograd Oxygen Plant” | Russia |
Kelvin Finance Company Limited | Ireland |
Kosmoid Finance UC | Ireland |
Kunshan Praxair Co., Ltd. | China |
Limited Liability Company Praxair Azot Togliatti | Russia |
Limited Liability Company Praxair Titanium Valley | Russia |
Limited Liability Company Praxair Rus | Russia |
Limited Liability Company Praxair Volgograd | Russia |
Liquid Carbonic Corporation | Delaware |
Liquid Carbonic del Paraguay S.A. | Paraguay |
Liquid Carbonic of Oklahoma, Inc. | Oklahoma |
Liquido Carbonico Colombiana S.A. | Colombia |
Madison Gas LLC | Delaware |
Malaysian Industrial Gas Company Sdn. Bhd. | Malaysia |
Medical Gases S.r.l. | Argentina |
Nanjing Praxair Nanlian Industrial Gases Co., Ltd. | China |
Nitropet, S.A. de C.V. | Mexico |
NOxBOX Ltd. | United Kingdom |
NuCO2 Inc. | Delaware |
NuCO2 Management LLC | Delaware |
NuCO2 LLC | Delaware |
NuCO2 Supply LLC | Delaware |
Nuova Pescarito S.r.l. | Italy |
Old Danford S.A. | Uruguay |
Oxigenos de Colombia Ltda. | Colombia |
Oximesa S.L. | Spain |
PG Technologies, LLC | Delaware |
PG Technologies Pte. Ltd. | Singapore |
Praxair & M.I. Services, S.r.l. | Italy |
Praxair (Anhui) Industrial Gases Co., Ltd. | China |
Praxair (Beijing) Industrial Gases Co., Ltd. | China |
Praxair (Beijing) Semiconductor Gases Co., Ltd. | China |
Praxair (China) Investment Co., Ltd. | China |
Praxair (Guangzhou) Industrial Gases Co., Ltd. | China |
Praxair (Hainan) Indusrial Gases Co., Ltd. | China |
Praxair (Hefei) Industrial Gases Co., Ltd. | China |
Praxair (Huizhou) Industrial Gases Limited | China |
Praxair (Jiaxing) Industrial Gases Co., Ltd. | China |
Praxair (Jining) Industrial Gases Co., Ltd. | China |
Praxair (Nanjing) Carbon Dioxide Co., Ltd. | China |
Praxair (Shanghai) Co., Ltd. | China |
Praxair (Shanghai) Industrial Gases Co., Ltd. | China |
Praxair (Shanghai) Semiconductor Gases Co., Ltd. | China |
Praxair (Thailand) Company Limited | Thailand |
Praxair (Wuhan), Inc. | China |
Praxair (Yangzhou) Application Technology Co., Ltd. | China |
Praxair (Yangzhou) Industrial Gases Co., Ltd. | China |
Praxair (Zhengjing) Industrial Gas Co. Ltd. | China |
Praxair Alberta Ltd. | Alberta |
Praxair Argentina S.R.L. | Argentina |
Praxair Asia, Inc. | Delaware |
Praxair Bahrain B.S.C. | Kingdom of Bahrain |
Praxair B.V. | Netherlands |
Praxair Bolivia Srl | Luxembourg |
Praxair Canada Inc. | Canada |
Praxair Chemax Semiconductor Materials Co. Ltd. | Taiwan |
Praxair Chile Ltda. | Chile |
Praxair Colonia Limitada | Uruguay |
Praxair Consultoria y Administracion S de RL de CV | Mexico |
Praxair Costa Rica, S.A. | Costa Rica |
Praxair Danmark A/S | Denmark |
Praxair Deutschland GmbH | Germany |
Praxair Deutschland Holding GmbH & Co. KG | Germany |
Praxair Distribution, Inc. | Delaware |
Praxair do Brasil Ltda. | Brazil |
Praxair Espana, S.L. | Spain |
Praxair Euroholding, S.L. | Spain |
Praxair Fray Bentos S.C.A. | Uruguay |
Praxair Gas B.V. | Netherlands |
Praxair Gases Industriales Ltda | Columbia |
Praxair Gases France SAS | France |
Praxair Gases Ireland Limited | Ireland |
Praxair Gases UK Ltd. | United Kingdom |
Praxair Gulf Industrial Gases LLC | Abu Dhabi |
Praxair Holding Latinoamerica (Sarl) | Luxembourg |
Praxair Holdings International, Inc. | Delaware |
Praxair Huayi (Chongqing) Industrial Gases Co. Ltd. | China |
Praxair Hydrogen Supply, Inc. | Delaware |
Praxair India Private Limited | India |
Praxair International Finance UC | Ireland |
Praxair Inversiones SRL | Peru |
Praxair Investments B.V. | Netherlands |
Praxair Italia S.R.L. | Italy |
Praxair K.K. | Japan |
Praxair Korea Company, Limited | Korea |
Praxair Latin America Holdings LLC | Delaware |
Praxair Luxembourg S.a.r.L. | Luxembourg |
Praxair Meishan (Nanjin) Industrial Gases Co., Ltd. | China |
Praxair Mexico, S. de R.L. de C.V. | Mexico |
Praxair MRC S.A.S. | France |
Praxair Norge AS | Norway |
Praxair N.V. | Belgium |
Praxair Offshore Services Ltd. | United Kingdom |
Praxair Pacific Ltd. | Mauritius |
Praxair Panama, S.A. | Panama |
Praxair Partnership | Delaware |
Praxair PC Partnership | Canada |
Praxair Peru S.R.L. | Peru |
Praxair PHP S.A.S. | France |
Praxair Plainfield, Inc. | Delaware |
Praxair Portugal Gases S.A. | Portugal |
Praxair Puerto Rico B. V. | Netherlands |
Praxair Puerto Rico LLC | Delaware |
Praxair Qingdao Industrial Gases Co., Ltd. | China |
Praxair Republica Dominicana, SRL | Dominican Republic |
Praxair Samara LLC | Russia |
Praxair Scandinavia Holding AS | Norway |
Praxair Ship AS | Norway |
Praxair S.r.l. | Italy |
Praxair S.T. Technology, Inc. | Delaware |
Praxair Services Canada Inc. | Ontario |
Praxair Services, Inc. | Texas |
Praxair Shanghai Meishan Inc. | China |
Praxair Shaogang Co., Ltd. | China |
Praxair Sp. Zo. o. | Poland |
Praxair Surface Technologies (Changzhou) Co. Ltd. | China |
Praxair Surface Technologies (Europe) S.A. | Switzerland |
Praxair Surface Technologies Co., Ltd. | Korea |
Praxair Surface Technologies do Brasil Ltda. | Brazil |
Praxair Surface Technologies G.m.b.H. | Germany |
Praxair Surface Technologies K.K. | Japan |
Praxair Surface Technologies Limited | United Kingdom |
Praxair Surface Technologies Montreal L.P. | New Brunswick |
Praxair Surface Technologies Pte. Ltd. | Singapore |
Praxair Surface Technologies S.A.S. | France |
Praxair Surface Technologies, Inc. | Delaware |
Praxair Sverige AB | Sweden |
Praxair Switzerland GmbH | Switzerland |
Praxair Taiwan Co., Ltd. | Taiwan |
Praxair Technology, Inc. | Delaware |
Praxair Uruguay Ltda. | Uruguay |
Praxair Vertwaltungs GmbH | Germany |
Production Praxair Canada Inc. | Canada |
Remtechgaz t.o.v. | Ukraine |
Rivoira Gas S.r.l. | Italy |
Rivoira Operations S.r.l. | Italy |
Rivoira Pharma S.r.l. | Italy |
Rivoira Refrigerants S.r.l. | Italy |
Rivoira S.p.A. | Italy |
Rivoira Siad Servizi S. Con S.A.R.L. | Italy |
Rivoira SUD S.R.L. | Italy |
Sermatech International Canada Corp. | Delaware |
Sermatech International Canada GP LLC | Delaware |
Sermatech Korea Ltd. | Korea |
Shanghai Praxair Baoshan Inc. | China |
Shanghai Praxair-Yidian Inc. | China |
Sierra Gas Metal Arc, Inc. | Delaware |
Technical Gas S.A. | Venezuela |
Tecnogas S/A | Peru |
Technogas sp. Z o.o. | Poland |
Thai Carbonic Company, Ltd. | Thailand |
The Welding Center, Inc. | Illinois |
Tianjin Praxair, Inc. | China |
Tongling Praxair Co., Ltd. | China |
Topaz Consultora S.A. | Uruguay |
TWC Cryogenics, Inc. | Illinois |
Vision Energy Group LLC | Oklahoma |
Welder Services of Fort Wayne, Inc. | Indiana |
Westair Cryogenics Company | Delaware |
Westair Gas and Equipment, L.P. | Texas |
White Martins e White Martins Comercio e Servicos SARL | Luxembourg |
White Martins Gases Industriais do Nordeste S.A. | Brazil |
White Martins Gases Industriais do Norte S.A. | Brazil |
White Martins Gases Industriais Ltda. | Brazil |
White Martins Pecem Gases Inudstriais Ltda | Brazil |
White Martins Steel Gases Industrials Ltda. | Brazil |
WM Steel Gases Industriais Ltda. | Brazil |
WM Transporte de Gases Ltda | Brazil |
Wyandotte Welding Supply, Inc. | Michigan |
Yateem Oxygen W.L.L. | Bahrain |
1. | I have reviewed this Annual Report on Form 10-K of Praxair, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent function): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
March 1, 2017 | By: /s/ Stephen F. Angel | ||
Stephen F. Angel | |||
Chairman, President | |||
Chief Executive Officer | |||
(principal executive officer) |
1. | I have reviewed this Annual Report on Form 10-K of Praxair, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent function): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
March 1, 2017 | By: /s/ Matthew J. White | ||
Matthew J. White | |||
Senior Vice President and | |||
Chief Financial Officer | |||
(principal financial officer) |
March 1, 2017 | By: /s/ Stephen F. Angel | ||
Stephen F. Angel | |||
Chairman, President | |||
Chief Executive Officer | |||
(principal executive officer) |
March 1, 2017 | By: /s/ Matthew J. White | ||
Matthew J. White | |||
Senior Vice President and | |||
Chief Financial Officer | |||
(principal financial officer) |
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Document and Entity Information - USD ($) $ in Billions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 31, 2017 |
Jun. 30, 2016 |
|
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PX | ||
Entity Registrant Name | PRAXAIR INC | ||
Entity Central Index Key | 0000884905 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 285,071,181 | ||
Entity Public Float | $ 32 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, issued (in shares) | 383,230,625 | 383,230,625 |
Treasury stock, shares (in shares) | 98,329,849 | 98,351,546 |
Consolidated Statements of Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Dividends to Praxair, Inc common stock, per share | $ 3.00 | $ 2.86 | $ 2.60 |
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policies | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Operations – Praxair, Inc. and its subsidiaries ("Praxair" or "the company") comprise one of the largest industrial gases companies worldwide. Praxair produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings to a diverse group of industries including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, and metals. Principles of Consolidation – The consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States of America (" U.S. GAAP") and include the accounts of all significant subsidiaries where control exists and, in limited situations, variable-interest entities where the company is the primary beneficiary. Intercompany transactions and balances are eliminated in consolidation and any significant related-party transactions have been disclosed. Equity investments generally consist of 20% to 50% owned operations where the company exercises significant influence, but does not have control. Equity income from equity investments in corporations is reported on an after-tax basis. Pre-tax income from equity investments that are partnerships or limited-liability corporations ("LLC") is included in other income (expenses) – net with related taxes included in Income taxes. Equity investments are reviewed for impairment whenever events or circumstances reflect that an impairment loss may have incurred. Operations less than 20% owned, where the company does not exercise significant influence, are generally carried at cost. Changes in ownership interest that result either in consolidation or deconsolidation of an investment are recorded at fair value through earnings, including the retained ownership interest, while changes that do not result in either consolidation or deconsolidation of a subsidiary are treated as equity transactions. Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While actual results could differ, management believes such estimates to be reasonable. Revenue Recognition – Product sales represent approximately 87% of consolidated sales. Revenue is recognized when a firm sales agreement exists, collectability of a fixed or determinable sales price is reasonably assured, and when title and risks of ownership transfer to the customer for product sales or, in the case of other revenues when obligations are satisfied or services are performed. Sales returns and allowances are not a normal practice in the industry and are not significant. A small portion of the company’s revenues relate to long-term construction contracts and are generally recognized using the percentage-of-completion method. Under this method, revenues from sales of major equipment, such as large air-separation facilities, are recognized based primarily on cost incurred to date compared with total estimated cost. Changes to total estimated cost and anticipated losses, if any, are recognized in the period determined. For contracts that contain multiple products and/or services, amounts assigned to each component are based on its objectively determined fair value, such as the sales price for the component when it is sold separately or competitor prices for similar components. Certain of the company’s facilities that are built to provide product to a specific customer are required to be accounted for as leases. The associated revenue streams are classified as rental revenue and are not significant. Amounts billed for shipping and handling fees are recorded as sales, generally on FOB destination terms, and costs incurred for shipping and handling are recorded as cost of sales. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue producing transactions are presented on a net basis and are not included in sales in the consolidated statement of income. Cash Equivalents – Cash equivalents are considered to be highly liquid securities with original maturities of three months or less. Inventories – Inventories are stated at the lower of cost or market. Cost is determined using the average-cost method. Property, Plant and Equipment – Net – Property, plant and equipment are carried at cost, net of accumulated depreciation. The company capitalizes interest as part of the cost of constructing major facilities (see Note 7). Depreciation is calculated on the straight-line method based on the estimated useful lives of the assets, which range from 3 years to 40 years (see Note 8). Praxair uses accelerated depreciation methods for tax purposes where appropriate. Maintenance of property, plant and equipment is generally expensed as incurred. The company performs a test for impairment whenever events or changes in circumstances indicate that the carrying amount of an individual asset or asset group may not be recoverable. Should projected undiscounted future cash flows be less than the carrying amount of the asset or asset group, an impairment charge reducing the carrying amount to fair value is required. Fair value is determined based on the most appropriate valuation technique, including discounted cash flows. Asset-Retirement Obligations – An asset-retirement obligation is recognized in the period in which sufficient information exists to determine the fair value of the liability with a corresponding increase to the carrying amount of the related property, plant and equipment which is then depreciated over its useful life. The liability is initially measured at discounted fair value and then accretion expense is recorded in each subsequent period. The company’s asset-retirement obligations are primarily associated with its on-site long-term supply arrangements where the company has built a facility on land leased from the customer and is obligated to remove the facility at the end of the contract term. The company’s asset-retirement obligations are not material to its consolidated financial statements. Foreign Currency Translation – For most foreign operations, the local currency is the functional currency and translation gains and losses are reported as part of the accumulated other comprehensive income (loss) component of equity as a cumulative translation adjustment (see Note 7). Financial Instruments – Praxair enters into various derivative financial instruments to manage its exposure to fluctuating interest and currency exchange rates and energy costs. Such instruments primarily include interest-rate swap and treasury rate lock agreements; currency-swap agreements; forward contracts; currency options; and commodity-swap agreements. These instruments are not entered into for trading purposes. Praxair only uses commonly traded and non-leveraged instruments. There are three types of derivatives the company enters into: (i) those relating to fair-value exposures, (ii) those relating to cash-flow exposures, and (iii) those relating to foreign currency net investment exposures. Fair-value exposures relate to recognized assets or liabilities, and firm commitments; cash-flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities, or forecasted transactions; and net investment exposures relate to the impact of foreign currency exchange rate changes on the carrying value of net assets denominated in foreign currencies. When a derivative is executed and hedge accounting is appropriate, it is designated as either a fair-value hedge, cash-flow hedge, or a net investment hedge. Currently, Praxair designates all interest-rate and treasury rate locks as hedges for accounting purposes; however, currency contracts are generally not designated as hedges for accounting purposes unless they are related to forecasted transactions. Whether designated as hedges for accounting purposes or not, all derivatives are linked to an appropriate underlying exposure. On an ongoing basis, the company assesses the hedge effectiveness of all derivatives designated as hedges for accounting purposes to determine if they continue to be highly effective in offsetting changes in fair values or cash flows of the underlying hedged items. If it is determined that the hedge is not highly effective, then hedge accounting will be discontinued prospectively. Changes in the fair value of derivatives designated as fair-value hedges are recognized in earnings as an offset to the change in the fair values of the underlying exposures being hedged. The changes in fair value of derivatives that are designated as cash-flow hedges are deferred in accumulated other comprehensive income (loss) and are reclassified to earnings as the underlying hedged transaction affects earnings. Any ineffectiveness is recognized in earnings immediately. Hedges of net investments in foreign subsidiaries are recognized in the cumulative translation adjustment component of accumulated other comprehensive income (loss) on the consolidated balance sheets to offset translation gains and losses associated with the hedged net investment. Derivatives that are entered into for risk-management purposes and are not designated as hedges (primarily related to anticipated net income and currency derivatives other than for firm commitments) are recorded at their fair market values and recognized in current earnings. See Note 12 for additional information relating to financial instruments. Goodwill – Acquisitions are accounted for using the acquisition method which requires allocation of the purchase price to assets acquired and liabilities assumed based on estimated fair values. Any excess of the purchase price over the fair value of the assets and liabilities acquired is recorded as goodwill. Allocations of the purchase price are based on preliminary estimates and assumptions at the date of acquisition and are subject to revision based on final information received, including appraisals and other analyses which support underlying estimates. The company performs a goodwill impairment test annually in the second quarter or more frequently if events or circumstances indicate that an impairment loss may have been incurred. The applicable guidance allows an entity to first assess qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than carrying value. If it is determined that it is more likely than not that the fair value of a reporting unit is less than carrying value then the company will estimate and compare the fair value of its reporting units to their carrying value, including goodwill. Reporting units are determined based on one level below the operating segment level. As applicable, fair value is determined through the use of projected future cash flows, multiples of earnings and sales and other factors. Such analysis requires the use of certain market assumptions and discount factors, which are subjective in nature. See Note 9 for additional information relating to goodwill. Other Intangible Assets – Customer and license/use agreements, non-compete agreements and patents and other intangibles are amortized over the estimated period of benefit. The determination of the estimated period of benefit will be dependent upon the use and underlying characteristics of the intangible asset. Praxair evaluates the recoverability of its intangible assets subject to amortization when facts and circumstances indicate that the carrying value of the asset may not be recoverable. If the carrying value is not recoverable, impairment is measured as the amount by which the carrying value exceeds its estimated fair value. Fair value is generally estimated based on either appraised value or other valuation techniques. See Note 10 for additional information relating to other intangible assets. Income Taxes – Deferred income taxes are recorded for the temporary differences between the financial statement and tax bases of assets and liabilities using currently enacted tax rates. Valuation allowances are established against deferred tax assets whenever circumstances indicate that it is more likely than not that such assets will not be realized in future periods. Under the guidance for accounting for uncertainty in income taxes, the company can recognize the benefit of an income tax position only if it is more likely than not (greater than 50%) that the tax position will be sustained upon tax examination, based solely on the technical merits of the tax position. Otherwise, no benefit can be recognized. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Additionally, the company accrues interest and related penalties, if applicable, on all tax exposures for which reserves have been established consistent with jurisdictional tax laws. Interest and penalties are classified as income tax expense in the financial statements. See Note 5 for additional information relating to income taxes. Retirement Benefits – Most Praxair employees participate in a form of defined benefit or contribution retirement plan, and additionally certain employees are eligible to participate in various post-employment health care and life insurance benefit plans. The cost of contribution plans is recognized in the year earned while the cost of other plans is recognized over the employees’ expected service period to the company, all in accordance with the applicable accounting standards. The funded status of the plans is recorded as an asset or liability in the consolidated balance sheets. Funding of retirement benefits varies and is in accordance with local laws and practices. See Note 16 for additional information relating to retirement programs. Share-based Compensation– The company has granted share-based awards which consist of stock options, restricted stock and performance-based stock. Share-based compensation expense is generally recognized on a straight-line basis over the stated vesting period. For stock awards granted to full-retirement-eligible employees, compensation expense is recognized over the period from the grant date to the date retirement eligibility is achieved. For performance-based awards, compensation expense is recognized only if it is probable that the performance condition will be achieved. See Note 15 for additional disclosures relating to share-based compensation. Recently Issued Accounting Standards Accounting Standards Implemented in 2016 The following standards were effective for Praxair in 2016 and their adoption did not have a significant impact on the consolidated financial statements:
Effective in the second quarter 2016, Praxair elected to adopt the requirements of this new accounting standard. Accordingly, income tax expense and operating cash flows for 2016 include $20 million of excess tax benefits. The Company elected not to adjust prior-year cash flow presentations. The new standard also amends the consolidated statement of cash flows by requiring that cash paid to taxing authorities at settlement arising from the withholding of shares from employees be classified in cash flows from financing activities (such amounts were previously included in cash flows from operating activities). This portion of the standard was required to be adopted on a retrospective basis. In addition, $13 million and $19 million were similarly reclassified for the years ended December 31, 2015 and 2014, respectively.
Accounting Standards to be Implemented
The Company is currently in the process of evaluating and implementing this new guidance, as required, and at this time expects to use the modified retrospective basis starting in 2018. Praxair will provide additional updates in future filings, when appropriate.
Reclassifications – Certain prior years’ amounts have been reclassified to conform to the current year’s presentation, including reclassifications to the condensed consolidated statement of cash flows due to the adoption of the new share-based payment accounting standard. |
Cost Reduction Program and Other Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost Reduction Program and Other Charges | NOTE 2. COST REDUCTION PROGRAM AND OTHER CHARGES 2016 Charges Cost Reduction Program and Other Charges In the third quarter of 2016, Praxair recorded pre-tax charges totaling $96 million ($63 million after-tax and noncontrolling interests of $0.22 per diluted share). Following is a summary of the pre-tax charge by reportable segment:
The severance costs of $40 million are for the elimination of 730 positions. The other charges of $56 million are primarily related to (i) the consolidation of operations for efficiencies and cost reduction primarily in North America and Surface Technologies, (ii) integration costs for recent acquisitions in Europe and North America, and (iii) asset write-downs and other charges related to the impacts of weaker underlying industrial activity, primarily in the Americas and Asia. Amounts related to asset write-downs are net of expected sale proceeds, which are not significant. The total cash requirement of the cost reduction program and other charges are estimated to be approximately $57 million, of which $13 million was paid through December 31, 2016. Pension Settlement Charge In 2015 a number of senior managers retired. These retirees are covered by the U.S. supplemental pension plan which provides for a lump sum benefit payment option. Under certain circumstances, such lump sum payments must be accounted for as a settlement of the related pension obligation, but only when paid. Accordingly, in the third quarter of 2016, Praxair recorded a pension settlement charge related to net unrecognized actuarial losses of $4 million ($3 million after-tax or $0.01 per diluted share). 2015 Charges Cost Reduction Program and other Charges In the second quarter of 2015, Praxair recorded pre-tax charges totaling $146 million ($112 million after-tax and noncontrolling interests or $0.39 per diluted share) and in the third quarter recorded pre-tax charges totaling $19 million ($13 million after-tax or $0.04 per diluted share). The charges related primarily to severance and other costs associated with a cost reduction program, which was initiated in response to lower volumes resulting from economic slowdown in emerging markets and energy related end-markets. Following is a summary of the pre-tax charges by reportable segment:
The severance costs of $63 million are for the elimination of 1,544 positions. A majority of the actions were completed in 2015. The other charges of $102 million are primarily related to the consolidation of operations and the exit of other operations due to current economic conditions, primarily in Brazil. Amounts related to asset write-downs are net of expected sale proceeds, which are not significant. Following is a summary:
Additionally, for the year ended December 31, 2015 income taxes include a $10 million increase in valuation allowances relating to U.S. foreign tax credit carryforwards, reflecting the impact of current economic conditions. The total cash requirements of the cost reduction program and other charges are estimated to be approximately $94 million. Pension Settlement Charge In 2014 a number of senior managers retired. These retirees are covered by the U.S. supplemental pension plan which provides for a lump sum benefit payment option. Under certain circumstances, such lump sum payments must be accounted for as a settlement of the related pension obligation, but only when paid. Accordingly, when the cash payments were made in the third quarter of 2015, Praxair recorded a pension settlement charge related to net unrecognized actuarial losses of $7 million ($5 million after-tax or $0.02 per diluted share). Reconciliation of the 2016 and 2015 Cost Reduction Programs The following table summarizes the activities related to the company's cost reduction and other charges for the years ended December 31, 2016 and 2015:
2014 Charges Venezuela Currency Devaluation In recent years, exchange control and other regulations in Venezuela have restricted the Company's operations in Venezuela. During 2014, the Venezuelan government introduced a new exchange control market-based mechanism (referred to as "SICAD II") which allowed companies to apply for the conversion of VEF to the U.S. dollar. At December 31, 2014 the SICAD II rate was 50 VEF per U.S. Dollar versus the official rate of 6.3 (a devaluation of about 88%). After considerable analysis, Praxair concluded at that time that the SICAD II rate more accurately reflects the economic reality of its business in Venezuela versus the official exchange rate. There continues to be a lack of exchangeability between the Venezuelan bolivar fuerte ("VEF") and the U.S. dollar. As a result, effective December 31, 2014 Praxair changed the exchange rate used to translate the monetary assets and liabilities of its Venezuelan subsidiary to the SICAD II rate of 50 VEF per U.S. Dollar. Also, the Company evaluated the carrying value of its non-monetary assets for impairment and lower of cost or market adjustments considering the new SICAD II rate. As a result, Praxair recorded a pre-tax charge of $131 million ($131 million after-tax, or $0.45 per diluted share) in the Company's consolidated statement of income for the year ended December 31, 2014. This charge includes $68 million related to translation of monetary assets and liabilities to the SICAD II rate and $63 million related primarily to long-lived asset impairments. As a result, Praxair's net asset position in Venezuela at December 31, 2014 was immaterial. Pension Settlement Charge During the fourth quarter of 2014, Praxair offered certain former employees who participate in either of the two U.S. qualified defined benefit pension plans, the option to receive a one-time lump sum benefit payment of their vested pension benefits under the plans rather than receiving lifetime annuity payments of these benefits. As a result, a pension settlement of the related pension obligation was triggered for one of the U.S. qualified defined benefit pension plans due to the acceptance rate of the lump sum payment option. Accordingly, Praxair recorded a pension settlement charge of $7 million ($5 million after-tax, or $0.02 per diluted share) in the fourth quarter of 2014 (refer to Note 16). Classification in the consolidated financial statements The pre-tax charges for each year are shown within operating profit in a separate line item on the consolidated statements of income. In the consolidated balance sheets, reductions in assets are recorded against the carrying value of the related assets and unpaid amounts are recorded primarily as short-term liabilities. On the consolidated statement of cash flows, the pre-tax impact of these charges, net of cash payments, is shown as an adjustment to reconcile net income to net cash provided by operating activities. In Note 18 - Segment Information, Praxair excluded these charges from its management definition of segment operating profit; a reconciliation of segment operating profit to consolidated operating profit is shown within the segment operating profit table. |
Acquisitions |
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Acquistions [Abstract] | |
Acquisitions | NOTE 3. ACQUISITIONS The results of operations of these businesses have been included in Praxair’s consolidated statements of income since their respective dates of acquisition. Proforma financial statements for the following acquisitions have not been provided as the acquisitions are not material individually or in the aggregate. 2016 Acquisitions During the year ended December 31, 2016, Praxair had acquisitions totaling $363 million, primarily the acquisition of Yara International ASA's European carbon dioxide business ("European CO2 business") and packaged gases businesses in North America and Europe. These transactions resulted in goodwill and other intangible assets of $141 million and $82 million, respectively (see Notes 9 and 10). In addition, Praxair purchased a remaining 34% share in a Scandinavian joint venture for $104 million (see Note 14). European CO2 Acquisition On June 1, 2016 Praxair, Inc. completed an acquisition of a European CO2 business, which is a leading supplier of liquid CO2 and dry ice primarily to the European food and beverage industries. The business operates CO2 liquefaction plants and dry ice production facilities across the UK, Ireland, Norway, Denmark, Germany, Netherlands, Belgium, France and Italy. This acquisition was accounted for as a business combination; accordingly, the results of operations were consolidated from June 1, 2016 in the European business segment. The purchase price for the acquisition was approximately $230 million (€206 million) and resulted in $121 million of intangible assets. The intangible assets primarily consist of $69 million of goodwill and $51 million of customer relationships that will be amortized over their estimated life of 20 years. The allocation of the purchase price is final except for pension liabilities. Any potential adjustments are not expected to be material. 2015 Acquisitions During the year-ended December 31, 2015 Praxair had acquisitions totaling $82 million, primarily acquisitions of packaged gases businesses in North and South America and an acquisition of a controlling interest of an equity investment in Asia. These transactions resulted in goodwill and other intangible assets of $56 million and $26 million, respectively (see Note 9 and Note 10). 2014 Acquisitions During the year-ended December 31, 2014 Praxair had acquisitions totaling $206 million. These acquisitions consisted primarily of an industrial gases business in Italy, packaged gas businesses in North and South America and an acquisition of a controlling interest of an equity investment in Asia. These transactions resulted in goodwill and other intangible assets of $86 million and $66 million, respectively (see Note 9 and Note 10). |
Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Leases | NOTE 4. LEASES In the normal course of its business, Praxair enters into various leases as the lessee, primarily involving manufacturing and distribution equipment and office space. Total lease and rental expenses under operating leases were $141 million in 2016, $141 million in 2015 and $148 million in 2014. Capital leases are not significant and are included in property, plant and equipment – net. Related obligations are included in debt. At December 31, 2016, minimum payments due under operating leases are as follows:
The present value of these future lease payments under operating leases is approximately $490 million. Praxair’s leases where it is the lessor are not material. |
Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | NOTE 5. INCOME TAXES Pre-tax income applicable to U.S. and foreign operations is as follows:
The following is an analysis of the provision for income taxes:
An analysis of the difference between the provision for income taxes and the amount computed by applying the U.S. statutory income tax rate to pre-tax income follows:
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Net deferred tax liabilities included in the consolidated balance sheet are comprised of the following:
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Praxair evaluates deferred tax assets quarterly to ensure that estimated future taxable income will be sufficient in character (e.g., capital gain versus ordinary income treatment), amount and timing to result in their recovery. After considering the positive and negative evidence, a valuation allowance is established to reduce the assets to their realizable value when management determines that it is more likely than not (i.e., greater than 50% likelihood) that a deferred tax asset will not be realized. Considerable judgment is required in establishing deferred tax valuation allowances. At December 31, 2016, Praxair had $284 million of deferred tax assets relating to net operating losses (“NOLs”) and tax credits and $132 million of valuation allowances. These deferred tax assets include $106 million relating to NOLs of which $45 million are in the United States and $61 million are in Brazil. The U.S. NOLs expire through 2032 and the Brazil NOLs have no expiration. These NOLs have no valuation allowances. The deferred tax assets as of December 31, 2016 also include $62 million relating to U.S. foreign tax credits which expire in 2021 and have a full valuation allowance. The utilization of the U.S. foreign tax credits is dependent on many factors including U.S. interest expense, future U.S. investment, foreign sales and earnings growth, foreign currency exchange rates, and acquisitions and dispositions. Management’s assessment and judgment are highly dependent on these variables and any significant changes to any one of them can substantially impact the amount of foreign tax credit utilization over the ten-year carryforward period. The remaining deferred tax assets of $116 million relate to U.S. state ($55 million) and other foreign ($61 million) NOLs and credit carryforwards, which expire through 2033, have valuation allowances totaling $70 million. These valuation allowances relate to certain foreign and U.S. state NOLs and are required because management has determined, based on financial projections and available tax strategies, that it is unlikely that the NOLs will be utilized before they expire. If events or circumstances change, valuation allowances are adjusted at that time resulting in an income tax benefit or charge. A provision has not been made for additional U.S. federal or foreign taxes at December 31, 2016 of approximately $12 billion of undistributed earnings of foreign subsidiaries because Praxair intends to reinvest these funds indefinitely to support foreign growth opportunities. It is not practicable to estimate the unrecognized deferred tax liability on these undistributed earnings. These earnings could become subject to additional tax if they are remitted as dividends, loaned to Praxair in the U.S., or upon sale of the subsidiary’s stock. Uncertain Tax Positions Unrecognized income tax benefits represent income tax positions taken on income tax returns but not yet recognized in the consolidated financial statements. The company has unrecognized income tax benefits totaling $56 million, $68 million and $71 million as of December 31, 2016, 2015 and 2014, respectively. If recognized, essentially all of the unrecognized tax benefits and related interest and penalties would be recorded as a benefit to income tax expense on the consolidated statement of income. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
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Praxair classifies interest income and expense related to income taxes as tax expense in the consolidated statement of income. Praxair recognized net interest income of $10 million in 2016, none in 2015 and $3 million in 2014. Praxair had $6 million and $8 million of accrued interest and penalties as of December 31, 2016 and December 31, 2015, respectively which were recorded in other long-term liabilities in the consolidated balance sheets (see Note 7). As of December 31, 2016, the company remained subject to examination in the following major tax jurisdictions for the tax years as indicated below:
The company is currently under audit in a number of tax jurisdictions. As a result, it is reasonably possible that some of these audits will conclude or reach the stage where a change in unrecognized income tax benefits may occur within the next twelve months. At that time, the company will record any adjustment to income tax expense as required. In 2016, settlements were not material to the consolidated financial statements. The company is also subject to income taxes in many hundreds of state and local taxing jurisdictions that are open to tax examinations. |
Earnings Per Share - Praxair, Inc. Shareholders |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share - Praxair, Inc. Shareholders | NOTE 6. EARNINGS PER SHARE – PRAXAIR, INC. SHAREHOLDERS Basic earnings per share is computed by dividing Net income – Praxair, Inc. for the period by the weighted average number of Praxair common shares outstanding. Diluted earnings per share is computed by dividing Net income – Praxair, Inc. for the period by the weighted average number of Praxair common shares outstanding and dilutive common stock equivalents, as follows:
Stock options of 2,602,770 for the year ended December 31, 2016 and 2,696,785 for the year ended December 31, 2015 were antidilutive and therefore excluded in the computation of diluted earnings per share. There were no antidilutive shares for the year ended December 31, 2014. |
Supplemental Information |
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Supplemental Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Information | NOTE 7. SUPPLEMENTAL INFORMATION Income Statement
Balance Sheet
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Property, Plant & Equipment - Net |
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Property, Plant & Equipment - Net | NOTE 8. PROPERTY, PLANT AND EQUIPMENT – NET Significant classes of property, plant and equipment are as follows:
(a) - Depreciable lives of production plants related to long-term customer supply contracts are consistent with the contract lives. (b) - Land is not depreciated. |
Goodwill |
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Goodwill | NOTE 9. GOODWILL Changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 were as follows:
* Primarily relates to the elimination of goodwill with a divestiture. Praxair has performed its goodwill impairment tests annually during the second quarter of each year, and historically has determined that the fair value of each of its reporting units was substantially in excess of its carrying value. For the 2016 test, Praxair applied the FASB's accounting guidance which allows the company to first assess qualitative factors to determine the extent of additional quantitative analysis, if any, that may be required to test goodwill for impairment. Based on the qualitative assessments performed, Praxair concluded that it was more likely than not that the fair value of each reporting unit substantially exceeded its carrying value and therefore, further quantitative analysis was not required. As a result, no impairment was recorded. There were no indicators of impairment through December 31, 2016. |
Other Intangible Assets |
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Other Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Intangible Assets | NOTE 10. OTHER INTANGIBLE ASSETS The following is a summary of Praxair’s other intangible assets at December 31, 2016 and 2015:
________________________
There are no expected residual values related to these intangible assets. Amortization expense for the years ended December 31, 2016, 2015 and 2014 was $51 million, $47 million and $47 million, respectively. The remaining weighted-average amortization period for intangible assets is approximately 17 years. Total estimated annual amortization expense is as follows:
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Debt |
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Debt | NOTE 11. DEBT The following is a summary of Praxair’s outstanding debt at December 31, 2016 and 2015:
________________________
Credit Facilities At December 31, 2016, the company has the following major credit facility available for future borrowing:
The credit facility is non-cancellable by the issuing financial institutions until its maturity in December 2019. No borrowings were outstanding under the credit agreement at December 31, 2016. Covenants Praxair’s $2.5 billion senior unsecured credit facility and long-term debt agreements contain various covenants which may, among other things, restrict certain types of mergers and changes in beneficial ownership of the company, and the ability of the company to incur or guarantee debt, sell or transfer certain assets, create liens against assets, enter into sale and leaseback agreements, or pay dividends and make other distributions beyond certain limits. These agreements also require Praxair to not exceed a maximum 70% leverage ratio defined in the agreements as the ratio of consolidated total debt to the sum of consolidated total debt plus consolidated shareholders’ equity of the company. For purposes of the leverage ratio calculation, consolidated shareholders’ equity excludes changes in the cumulative foreign currency translation adjustments after June 30, 2011. At December 31, 2016, the actual leverage ratio, as calculated according to the agreement, was 52% and the company is in compliance with all financial covenants. Also, there are no material adverse change clauses or other subjective conditions that would restrict the company’s ability to borrow under the agreement. Other Debt Information As of December 31, 2016 and 2015, the weighted-average interest rate of short-term borrowings outstanding was 1.2% and 3.4%, respectively. The decrease reflects the higher mix of international borrowings in prior year. Expected maturities of long-term debt are as follows:
________________________ * $400 million of debt due in 2017 has been reflected in 2019 maturities due to the company’s intent to refinance this debt on a long-term basis and the ability to do so under the $2.5 billion senior unsecured credit facility with a syndicate of banks which expires in 2019. As of December 31, 2016, $5 million of Praxair’s assets (principally international fixed assets) were pledged as collateral for $5 million of long-term debt, including the current portion of long-term debt. See Note 13 for the fair value information related to debt. |
Financial Instruments |
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Derivative Instruments and Hedges, Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | NOTE 12. FINANCIAL INSTRUMENTS In its normal operations, Praxair is exposed to market risks relating to fluctuations in interest rates, foreign currency exchange rates, energy costs and to a lesser extent precious metal prices. The objective of financial risk management at Praxair is to minimize the negative impact of such fluctuations on the company’s earnings and cash flows. To manage these risks, among other strategies, Praxair routinely enters into various derivative financial instruments (“derivatives”) including interest-rate swap and treasury rate lock agreements, currency-swap agreements, forward contracts, currency options, and commodity-swap agreements. These instruments are not entered into for trading purposes and Praxair only uses commonly traded and non-leveraged instruments. There are three types of derivatives that the company enters into: (i) those relating to fair-value exposures, (ii) those relating to cash-flow exposures, and (iii) those relating to foreign currency net investment exposures. Fair-value exposures relate to recognized assets or liabilities, and firm commitments; cash-flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities, or forecasted transactions; and net investment exposures relate to the impact of foreign currency exchange rate changes on the carrying value of net assets denominated in foreign currencies. When a derivative is executed and hedge accounting is appropriate, it is designated as either a fair-value hedge, cash-flow hedge, or a net investment hedge. Currently, Praxair designates all interest-rate and treasury-rate locks as hedges for accounting purposes; however, currency contracts are generally not designated as hedges for accounting purposes unless they are related to forecasted transactions. Whether designated as hedges for accounting purposes or not, all derivatives are linked to an appropriate underlying exposure. On an ongoing basis, the company assesses the hedge effectiveness of all derivatives designated as hedges for accounting purposes to determine if they continue to be highly effective in offsetting changes in fair values or cash flows of the underlying hedged items. If it is determined that the hedge is not highly effective, then hedge accounting will be discontinued prospectively. Counterparties to Praxair’s derivatives are major banking institutions with credit ratings of investment grade or better and no collateral is required, and there are no significant risk concentrations. Management believes the risk of incurring losses on derivative contracts related to credit risk is remote and any losses would be immaterial. The following table is a summary of the notional amount and fair value of derivatives outstanding at December 31, 2016 and 2015 for consolidated subsidiaries:
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Currency Contracts Balance Sheet Items Foreign currency contracts related to balance sheet items consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on recorded balance sheet assets and liabilities denominated in currencies other than the functional currency of the related operating unit. Certain forward currency contracts are entered into to protect underlying monetary assets and liabilities denominated in foreign currencies from foreign exchange risk and are not designated as hedging instruments. The fair value adjustments on these contracts are offset by the fair value adjustments recorded on the underlying monetary assets and liabilities. Praxair also enters into forward currency contracts, which are designated as hedging instruments, to limit the cash flow exposure on certain foreign-currency denominated intercompany loans. The fair value adjustments on these contracts are recorded to AOCI, with the effective portion immediately reclassified to earnings to offset the fair value adjustments on the underlying debt instrument. Forecasted Purchases Foreign currency contracts related to forecasted purchases consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on forecasted purchases of capital-related equipment and services denominated in currencies other than the functional currency of the related operating units. These forward contracts were designated and accounted for as cash flow hedges. Net Investment Hedges In 2014, Praxair designated the €600 million ($627 million as of December 31, 2016) 1.50% Euro-denominated notes due 2020 and the €500 million ($519 million as of December 31, 2016) 1.625% Euro-denominated notes due 2025, as a hedge of the net investment position in its European operations. In 2016 Praxair designated an incremental €550 million ($575 million as of December 31, 2016) 1.20% Euro-denominated notes due 2024 as an additional hedge of the net investment position in its European operations. These Euro-denominated debt instruments reduce the company's exposure to changes in the currency exchange rate on investments in foreign subsidiaries with Euro functional currencies. Since hedge inception, exchange rate movements have reduced long-term debt by $339 million ($78 million of which was during the year ended December 31, 2016), with the offsetting gain shown within the cumulative translation component of AOCI in the consolidated balance sheets and the consolidated statements of comprehensive income. Interest Rate Contracts Outstanding Interest Rate Swaps At December 31, 2016, Praxair had one outstanding interest rate swap agreement with a $475 million notional amount related to the $475 million 1.25% notes that mature in 2018. The interest rate swap effectively converts fixed-rate interest to variable-rate interest and is designated as a fair value hedge. Fair value adjustments are recognized in earnings along with an equally offsetting charge / benefit to earnings for the changes in the fair value of the underlying debt instrument. At December 31, 2016, $4 million was recognized as an increase in the fair value of this note ($6 million at December 31, 2015). Terminated Treasury Rate Locks The following table summarizes the unrecognized gains (losses) related to terminated treasury rate lock contracts:
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The following table summarizes the impact of the company's derivatives not designated as hedging instruments on the consolidated statements of income:
* The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities. Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt items are recorded in the consolidated statements of income as interest expense-net. Other balance sheet items and anticipated net income gains (losses) are recorded in the consolidated statements of income as other income (expenses)-net. The following table summarizes the impact of the company's derivatives designated as hedging instruments that impact AOCI:
** The gains (losses) on net investment hedges are recorded as a component of AOCI within foreign currency translation adjustments in the consolidated balance sheets and consolidated statements of comprehensive income. The gains (losses) on forecasted purchases, balance sheet items, and treasury rate locks are recorded as a component of AOCI within derivative instruments in the consolidated balance sheets and the consolidated statements of comprehensive income. There was no ineffectiveness for these instruments during 2016 or 2015. The gains (losses) on net investment hedges are reclassified to earnings only when the related currency translation adjustments are required to be reclassified, usually upon sale or liquidation of the investment. The gains (losses) for interest rate contracts are reclassified to earnings as interest expense –net on a straight-line basis over the remaining maturity of the underlying debt. Net losses of approximately $1 million are expected to be reclassified to earnings during 2017. |
Fair Value Disclosures |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures | NOTE 13. FAIR VALUE DISCLOSURES The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 – quoted prices in active markets for identical assets or liabilities Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions) Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes assets and liabilities measured at fair value on a recurring basis at December 31, 2016 and 2015:
The fair values of the derivative assets and liabilities are based on market prices obtained from independent brokers or determined using quantitative models that use as their basis readily observable market parameters that are actively quoted and can be validated through external sources, including third-party pricing services, brokers and market transactions. Investments are marketable securities traded on an exchange. The fair value of cash and cash equivalents, short-term debt, accounts receivables-net, and accounts payable approximate carrying value because of the short-term maturities of these instruments. The fair value of long-term debt is estimated based on the quoted market prices for the same or similar issues, which is deemed a Level 2 measurement. At December 31, 2016, the estimated fair value of Praxair’s long-term debt portfolio was $9,218 million versus a carrying value of $9,081 million. At December 31, 2015, the estimated fair value of Praxair’s long-term debt portfolio was $9,069 million versus a carrying value of $8,981 million. These differences are attributable to interest-rate changes subsequent to when the debt was issued. |
Equity and Redeemable Noncontrolling Interests |
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Equity And Noncontrolling Interests Disclosure [Text Block] | NOTE 14. EQUITY AND NONCONTROLLING INTERESTS Praxair, Inc. Shareholders’ Equity At December 31, 2016 and 2015, there were 800,000,000 shares of common stock authorized (par value $0.01 per share) of which 383,230,625 shares were issued and 284,900,776 were outstanding at December 31, 2016 (284,879,079 were outstanding at December 31, 2015). At December 31, 2016 and 2015, there were 25,000,000 shares of preferred stock (par value $0.01 per share) authorized, of which no shares were issued and outstanding. Praxair’s Board of Directors may from time to time authorize the issuance of one or more series of preferred stock and, in connection with the creation of such series, determine the characteristics of each such series including, without limitation, the preference and relative, participating, optional or other special rights, and the qualifications, limitations or restrictions of the series. Noncontrolling Interests Noncontrolling interest ownership changes are presented within the "Additions (Reductions)" line item of the consolidated statements of equity. The $20 million increase during 2016 relates to the sale of an ownership interest in a majority-owned joint venture in India during the third quarter offset by the formation of PG Technologies, LLC ("PGT"), a majority-owned joint venture with GE Aviation, during the fourth quarter. The "Additions (Reductions)" line item of the consolidated statements of equity also includes an increase to Additional Paid-In Capital resulting from the sale of the noncontrolling interest to the PGT joint venture partner. Redeemable Noncontrolling Interests Noncontrolling interests with redemption features, such as put/sell options, that are not solely within the company’s control (“redeemable noncontrolling interests”) are reported separately in the consolidated balance sheets at the greater of carrying value or redemption value. For redeemable noncontrolling interests that are not yet exercisable, Praxair calculates the redemption value by accreting the carrying value to the redemption value over the period until exercisable. If the redemption value is greater than the carrying value, any increase is adjusted directly to retained earnings and does not impact net income. At December 31, 2016, the redeemable noncontrolling interest balance includes one packaged gas distributor in the United States where the noncontrolling shareholder has a put option. The following is a summary of redeemable noncontrolling interests for the years ended December 31, 2016, 2015 and 2014 :
* In December 2015, Praxair sold its controlling interest in Praxair Distribution Southeast, LLC and, accordingly, removed the related redeemable noncontrolling interests. ** In June 2016, Praxair acquired the remaining 34% stake in a Scandinavian joint venture for $104 million. In January 2014, Praxair acquired the remaining noncontrolling interests in a joint venture in the United States. The cash payments related to these acquisitions are shown in the financing section of the consolidated statements of cash flows under the caption "Noncontrolling interest transactions and other" as there was no change in control. |
Share-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | NOTE 15. SHARE-BASED COMPENSATION Share-based compensation expense was $39 million in 2016 ($30 million and $51 million in 2015 and 2014, respectively). The income tax benefit recognized was $32 million in 2016 ($8 million and $14 million in 2015 and 2014, respectively). 2016 includes $20 million of excess tax benefits related to the new accounting standard implemented (see Note 1 and Note 5). Expense amounts reflect current estimates of achieving performance targets relating to performance-based compensation. The expense was primarily recorded in selling, general and administrative expenses and no share-based compensation expense was capitalized. Summary of Plans The 2009 Praxair, Inc. Long-Term Incentive Plan was initially adopted by the board of directors and shareholders of the company on April 28, 2009 and was amended and restated in its entirety by the board and shareholders on April 22, 2014 ("the 2009 Plan"). Prior to April 28, 2009, equity awards were granted under the 2002 Praxair, Inc. Long-Term Incentive Plan and the company’s ability to make further equity awards under that plan ended with its adoption of the 2009 Plan. The 2009 Plan permits awards of stock options, stock appreciation rights, restricted stock and restricted stock units, performance-based stock units and other equity awards to eligible officer and non-officer employees and non-employee directors of the company and its affiliates. Under the 2009 Plan, as amended and restated in 2014, the aggregate number of shares available for option and other equity grants is 8,000,000 shares, of which up to 2,600,000 shares may be granted as awards other than options or stock appreciation rights. The 2009 Plan also provides calendar year per-participant limits on grants of stock options and stock appreciation rights and on other types of awards intended to qualify as Performance-Based Compensation under Section 162(m) of the Internal Revenue Code. As of December 31, 2016, 3,993,818 shares remained available for equity grants under the 2009 Plan. In 2005, the board of directors and shareholders of the company adopted the 2005 Equity Compensation Plan for Non-Employee Directors of Praxair, Inc. ("the 2005 Plan"). Under the 2005 Plan, the aggregate number of shares available for option and other equity grants was limited to a total of 500,000 shares. The 2005 Plan expired on April 30, 2010, by its own terms, and no shares were available for grant thereafter. Exercise prices for options granted under the 2009 Plan may not be less than the closing market price of the company’s common stock on the date of grant and granted options may not be re-priced or exchanged without shareholder approval. Options granted under the 2009 Plan subject only to time vesting requirements may become partially exercisable after a minimum of one year after the date of grant but may not become fully exercisable until at least three years have elapsed from the date of grant, and all options have a maximum duration of ten years. Options granted under predecessor plans had similar terms. In order to satisfy option exercises and other equity grants, the Company may issue authorized but previously unissued shares or it may issue treasury shares. Stock Option Fair Value The company utilizes the Black-Scholes Options-Pricing Model to determine the fair value of stock options consistent with that used in prior years. Management is required to make certain assumptions with respect to selected model inputs, including anticipated changes in the underlying stock price (i.e., expected volatility) and option exercise activity (i.e., expected life). Expected volatility is based on the historical volatility of the company’s stock over the most recent period commensurate with the estimated expected life of the company’s stock options and other factors. The expected life of options granted, which represents the period of time that the options are expected to be outstanding, is based primarily on historical exercise experience. The expected dividend yield is based on the company’s most recent history and expectation of dividend payouts. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period commensurate with the estimated expected life. If factors change and result in different assumptions in future periods, the stock option expense that the company records for future grants may differ significantly from what the company has recorded in the current period. The weighted-average fair value of options granted during 2016 was $8.91 ($11.99 in 2015 and $14.62 in 2014) based on the Black-Scholes Options-Pricing model. The decrease in grant date fair value year-over-year is primarily attributable to a decrease in the company's stock price as of the grant date. The following weighted-average assumptions were used to value the grants in 2016, 2015 and 2014:
The following table summarizes option activity under the plans as of December 31, 2016 and changes during the period then ended (averages are calculated on a weighted basis; life in years; intrinsic value expressed in millions):
The aggregate intrinsic value represents the difference between the company’s closing stock price of $117.19 as of December 31, 2016 and the exercise price multiplied by the number of in the money options outstanding as of that date. The total intrinsic value of stock options exercised during 2016 was $82 million ($65 million and $93 million in 2015 and 2014, respectively). Cash received from option exercises under all share-based payment arrangements for 2016 was $128 million ($72 million and $88 million in 2015 and 2014, respectively). The cash tax benefit realized from share-based compensation totaled $32 million for 2016 ($33 million and $48 million cash tax benefit in 2015 and 2014, respectively). As of December 31, 2016, $17 million of unrecognized compensation cost related to non-vested stock options is expected to be recognized over a weighted-average period of approximately 1 year. Performance-Based and Restricted Stock Awards In 2016, the company granted performance-based stock awards under the 2009 Plan to senior level executives of 240,505 shares that vest, subject to the attainment of pre-established minimum performance criteria, principally on the third anniversary of their date of grant. These awards are tied to either return on capital ("ROC") performance or relative total shareholder return ("TSR") performance versus that of the S&P 500. The actual number of shares issued in settlement of a vested award can range from zero to 200 percent of the target number of shares granted based upon the company’s attainment of specified performance targets at the end of a three-year period. Compensation expense related to these awards is recognized over the three-year performance period based on the fair value of the closing market price of the company’s common stock on the date of the grant and the estimated performance that will be achieved. Compensation expense for ROC awards will be adjusted during the three-year performance period based upon the estimated performance levels that will be achieved. TSR awards are measured at their grant date fair value and not subsequently re-measured. There were 97,924 restricted stock units granted to employees during 2016. In addition, the company had previously granted restricted stock to certain key employees that vest after a designated service period ranging from 2 to 10 years although the majority of the restricted stock units vest at the end of a three-year service period. Generally, restricted stock does not earn quarterly dividends while vesting. Compensation expense related to the restricted stock units is recognized on a straight-line basis over the vesting period. The weighted-average fair value of ROC performance-based stock awards and restricted stock units granted during 2016 was $93.46 and $98.18, respectively ($120.04 and $120.24 in 2015 and $121.16 and $122.55 in 2014). These fair values are based on the closing market price of Praxair's common stock on the grant date adjusted for dividends that will not be paid during the vesting period. The weighted-average fair value of performance-based stock tied to relative TSR performance granted during 2016 was $124.18 per unit (none in 2015 and 2014), and was estimated using a Monte Carlo simulation performed as of the grant date. The following table summarizes non-vested performance-based and restricted stock award activity as of December 31, 2016 and changes during the period then ended (shares based on target amounts, averages are calculated on a weighted basis):
There are approximately 11 thousand performance-based shares and 11 thousand restricted stock shares that are non-vested at December 31, 2016 which will be settled in cash due to foreign regulatory limitations. The liability related to these grants reflects the current estimate of performance that will be achieved and the current common stock price. As of December 31, 2016, based on current estimates of future performance, $19 million of unrecognized compensation cost related to performance-based awards and $11 million of unrecognized compensation cost related to the restricted stock awards is expected to be recognized primarily through the first quarter of 2019. |
Retirement Programs |
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General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Programs | NOTE 16. RETIREMENT PROGRAMS Defined Benefit Pension Plans Praxair has two main U.S. retirement programs which are non-contributory defined benefit plans: the Praxair Pension Plan and the CBI Pension Plan. The latter program benefits primarily former employees of CBI Industries, Inc. which Praxair acquired in 1996. Effective July 1, 2002, the Praxair Pension Plan was amended to give participating employees a one-time choice to remain covered by the old formula or to elect coverage under a new formula. The old formula is based predominantly on years of service, age and compensation levels prior to retirement, while the new formula provides for an annual contribution to an individual account which grows with interest each year at a predetermined rate. Also, this new formula applies to all new employees hired after April 30, 2002 into businesses adopting this plan. The U.S. and international pension plan assets are comprised of a diversified mix of investments, including domestic and international corporate equities, government securities and corporate debt securities. Praxair has several plans that provide supplementary retirement benefits primarily to higher level employees that are unfunded and are nonqualified for federal tax purposes. Pension coverage for employees of certain of Praxair’s international subsidiaries generally is provided by those companies through separate plans. Obligations under such plans are primarily provided for through diversified investment portfolios, with some smaller plans provided for under insurance policies or by book reserves. Multi-employer Pension Plans In the United States Praxair participates in seven multi-employer defined benefit pension plans ("MEPs"), pursuant to the terms of collective bargaining agreements, covering approximately 200 union-represented employees. The collective bargaining agreements expire on different dates through 2021. In connection with such agreements, the Company is required to make periodic contributions to the MEPs in accordance with the terms of the respective collective bargaining agreements. Praxair’s participation in these plans is not material either at the plan level or in the aggregate. Praxair’s contributions to these plans were $2 million in 2016, 2015, and 2014 (these costs are not included in the tables that follow). For all MEPs, Praxair’s contributions were significantly less than 1% of the total contributions to each plan for 2015 and 2014. Total 2016 contributions were not yet available from the MEPs. Praxair has obtained the most recently available Pension Protection Act ("PPA") zone status letters from the Trustees of the MEPs. The PPA classifies MEPs as either Red, Yellow or Green zone plans. Among other factors, plans in the Red zone are generally less than 65 percent funded; plans in the Yellow zone are generally 65 to 80 percent funded; and plans in the Green zone are generally at least 80 percent funded. According to the most current data available, four of the MEPs that the Company participates in are in a Red zone status; one is in a Yellow zone status; and two are in a Green zone status. As of December 31, 2016, the five Red and Yellow Zone plans have pending or have implemented financial improvement or rehabilitation plans. Praxair does not currently anticipate significant future obligations due to the funding status of these plans. If Praxair determined it was probable that it would withdraw from an MEP, the Company would record a liability for its portion of the MEP’s unfunded pension obligations, as calculated at that time. Historically, such withdrawal payments have not been significant. Defined Contribution Plans Praxair’s U.S. business employees are eligible to participate in the Praxair defined contribution savings plan. Employees may contribute up to 40% of their compensation, subject to the maximum allowable by IRS regulations. For the U.S. packaged gases business, company contributions to this plan are calculated as a percentage of salary based on age plus service. U.S. employees other than those in the packaged gases business have company contributions to this plan calculated on a graduated scale based on employee contributions to the plan. The cost for these defined contribution plans was $28 million in 2016, $28 million in 2015 and $26 million in 2014 (these costs are not included in the tables that follow). The defined contribution plans include a non-leveraged employee stock ownership plan ("ESOP") which covers all employees participating in this plan. The collective number of shares of Praxair common stock in the ESOP totaled 2,703,391 at December 31, 2016. Certain international subsidiaries of the company also sponsor defined contribution plans where contributions are determined under various formulas. The expense for these plans was $18 million in 2016 and $17 million in 2015 and 2014 (these expenses are not included in the tables that follow). Postretirement Benefits Other Than Pensions (OPEB) Praxair provides health care and life insurance benefits to certain eligible retired employees. These benefits are provided through various insurance companies and healthcare providers. Praxair is also obligated to make payments for a portion of postretirement benefits related to retirees of Praxair’s former parent. Additionally, as part of the CBI acquisition in 1996, Praxair assumed responsibility for healthcare and life insurance benefit obligations for CBI’s retired employees. All postretirement healthcare programs have cost caps that limit the company’s exposure to future cost increases. In addition, as part of the retirement elections made for July 1, 2002, eligible employees were given the choice of maintaining coverage in the current retiree medical design (as may be amended from time to time), or to move to a design whereby coverage would be provided, but with no Praxair subsidy whatsoever. Also, all new employees hired after April 30, 2002 into a business adopting these plans will not receive a company subsidy. Praxair does not currently fund its postretirement benefits obligations. Praxair’s retiree plans may be changed or terminated by Praxair at any time for any reason with no liability to current or future retirees. Praxair uses a measurement date of December 31 for its pension and other post-retirement benefit plans. Pension and Postretirement Benefit Costs The components of net pension and OPEB costs for 2016, 2015 and 2014 are shown below:
* 2016 includes a $4 million pension settlement charge related to lump sum benefits paid to retired senior managers in the third quarter. The third quarter of 2015 and the fourth quarter of 2014 both include charges of $7 million, related primarily to the retirement of senior managers in the United States (see Note 2). Funded Status The changes in benefit obligation and plan assets for Praxair’s pension and OPEB programs, including reconciliation of the funded status of the plans to amounts recorded in the consolidated balance sheet, as of December 31, 2016 and 2015 are shown below:
The changes in plan assets and benefit obligations recognized in other comprehensive income in 2016 and 2015 are as follows:
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The amounts in accumulated other comprehensive income (loss) that are expected to be recognized as components of net periodic benefit cost during 2017 are as follows:
The following table provides information for pension plans where the accumulated benefit obligation exceeds the fair value of the plan assets:
Assumptions The assumptions used to determine benefit obligations are as of the respective balance sheet dates and the assumptions used to determine net benefit cost are as of the previous year-end, as shown below:
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These healthcare-cost trend rate assumptions have an impact on the amounts reported. However, cost caps limit the impact on the net OPEB benefit cost in the U.S. To illustrate the effect, a one-percentage point change in assumed healthcare cost trend rates would have the following effects:
Pension Plan Assets The investments of the U.S. pension plan are managed to meet the future expected benefit liabilities of the plan over the long term by investing in diversified portfolios consistent with prudent diversification and historical and expected capital market returns. When Praxair became an independent, publicly traded company in 1992, its former parent retained all liabilities for its term-vested and retired employees. Praxair’s plan received assets and retained pension liabilities for its own active employee base. Therefore, the liabilities under the Praxair U.S. pension plan mature at a later date compared to pension funds of other similar companies. Investment strategies are reviewed by the Finance and Pension Committee of the company’s Board of Directors and investment performance is tracked against appropriate benchmarks. There are no concentrations of risk as it relates to the assets within the plans. The international pension plans are managed individually based on diversified investment portfolios, with different target asset allocations that vary for each plan. Praxair’s U.S. and international pension plans’ weighted-average asset allocations at December 31, 2016 and 2015, and the target asset allocation range for 2016, by major asset category, are as follows:
The following table summarizes pension assets measured at fair value by asset category at December 31, 2016 and 2015. During the years presented, there has been no transfer of assets between Levels 1, 2 and 3 (see Note 13 for definition of the levels):
* Pooled funds are measured using the net asset value ("NAV") as a practical expedient for fair value as permissible under the accounting standard for fair value measurements and have not been categorized in the fair value hierarchy in accordance with recently issued accounting standards updates related to Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share. Pooled fund NAVs are provided by the trustee and are determined by reference to the fair value of the underlying securities of the trust, less its liabilities, which are valued primarily through the use of directly or indirectly observable inputs. Depending on the pooled fund, underlying securities may include marketable equity securities or fixed income securities. ** The following table summarizes changes in fair value of the pension plan assets classified as level 3 for the periods ended December 31, 2016 and 2015:
The descriptions and fair value methodologies for the U.S. and international pension plan assets are as follows: Cash and Cash Equivalents – This category includes cash and short-term interest bearing investments with maturities of three months or less. Investments are valued at cost plus accrued interest. Cash and cash equivalents are classified within level 1 of the valuation hierarchy. Equity Securities – This category is comprised of shares of common stock in U.S. and international companies from a diverse set of industries and size. Common stock is valued at the closing market price reported on a U.S. or international exchange where the security is actively traded. Equity securities are classified within level 1 of the valuation hierarchy. Mutual Funds – These categories consist of publicly and privately managed funds that invest primarily in marketable equity and fixed income securities. The fair value of these investments is determined by reference to the net asset value of the underlying securities of the fund. Shares of publicly traded mutual funds are valued at the net asset value quoted on the exchange where the fund is traded and are classified as level 1 within the valuation hierarchy. U.S. and International Government Bonds – This category includes U.S. treasuries, U.S. federal agency obligations and international government debt. The majority of these investments do not have quoted market prices available for a specific government security and so the fair value is determined using quoted prices of similar securities in active markets and is classified as level 2 within the valuation hierarchy. Corporate Bonds – This category is comprised of corporate bonds of U.S. and international companies from a diverse set of industries and size. The fair values for U.S. and international corporate bonds are determined using quoted prices of similar securities in active markets and observable data or broker or dealer quotations. The fair values for these investments are classified as level 2 within the valuation hierarchy. Insurance Contracts – The fair value of insurance contracts is determined based on the cash surrender value of the insurance contract, which is determined based on such factors as the fair value of the underlying assets and discounted cash flows. These contracts are with highly rated insurance companies. Insurance contracts are classified within level 3 of the valuation hierarchy. Real Estate Funds – This category includes real estate properties, partnership equities and investments in operating companies. The fair value of the assets is determined using discounted cash flows by estimating an income stream for the property plus a reversion into a present value at a risk adjusted rate. Yield rates and growth assumptions utilized are derived from market transactions as well as other financial and industry data. The fair value for these investments are classified within level 3 of the valuation hierarchy. Contributions At a minimum, Praxair contributes to its pension plans to comply with local regulatory requirements (e.g., ERISA in the United States). Discretionary contributions in excess of the local minimum requirements are made based on many factors, including long-term projections of the plans' funded status, the economic environment, potential risk of overfunding, pension insurance costs and alternative uses of the cash. Changes to these factors can impact the timing of discretionary contributions from year to year. Pension contributions were $11 million in 2016, $15 million in 2015 and $18 million in 2014. Estimated required contributions for 2017 are currently expected to be in the area of $10 million to $15 million. Estimated Future Benefit Payments The following table presents estimated future benefit payments, net of participants contributions:
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments And Contingencies | NOTE 17. COMMITMENTS AND CONTINGENCIES The company accrues non income-tax liabilities for contingencies when management believes that a loss is probable and the amounts can be reasonably estimated, while contingent gains are recognized only when realized. In the event any losses are sustained in excess of accruals, they will be charged against income at that time. Attorney fees are recorded as incurred. Commitments represent obligations, such as those for future purchases of goods or services, that are not yet recorded on the company’s balance sheet as liabilities. The company records liabilities for commitments when incurred (i.e., when the goods or services are received). Contingent Liabilities Praxair is subject to various lawsuits and government investigations that arise from time to time in the ordinary course of business. These actions are based upon alleged environmental, tax, antitrust and personal injury claims, among others. Praxair has strong defenses in these cases and intends to defend itself vigorously. It is possible that the company may incur losses in connection with some of these actions in excess of accrued liabilities. Management does not anticipate that in the aggregate such losses would have a material adverse effect on the company’s consolidated financial position or liquidity; however, it is possible that the final outcomes could have a significant impact on the company’s reported results of operations in any given period. Significant matters are:
On October 19, 2010, White Martins filed an annulment petition (“appeal”) with the Federal Court in Brasilia seeking to have the fine against White Martins entirely overturned. In order to suspend payment of the fine pending the completion of the appeal process, Brazilian law required that the company tender a form of guarantee in the amount of the fine as security. Initially, 50% of the guarantee was satisfied by letters of credit with a financial institution and 50% by equity of a Brazilian subsidiary. On April 15, 2016, the Ninth Federal Court in Brasilia allowed White Martins to withdraw and cancel the letters of credit. Accordingly, the guarantee is currently satisfied solely by equity of a Brazilian subsidiary. On September 14, 2015, the Ninth Federal Court of Brasilia overturned the fine against White Martins and declared the original CADE administrative proceeding to be null and void. On June 30, 2016, CADE filed an appeal against this decision with the Federal Circuit Court in Brasilia. Praxair strongly believes that the allegations are without merit and that the fine will be entirely overturned during the appeal process. The company further believes that it has strong defenses and will vigorously defend against the allegations and related fine up to such levels of the Federal Courts in Brazil as may be necessary. Because appeals in Brazil historically take many years to resolve, it is very difficult to estimate when the appeal will be finally decided. Based on management judgments, after considering judgments and opinions of outside counsel, no reserve has been recorded for this proceeding as management does not believe that a loss is probable. Commitments and Contractual Obligations The following table sets forth Praxair’s material commitments and contractual obligations as of December 31, 2016, excluding leases, tax liabilities for uncertain tax positions, long-term debt, other post retirement and pension obligations which are summarized elsewhere in the financial statements (see Notes 4, 5, 11, and 16):
Unconditional purchase obligations of $5,096 million represent contractual commitments under various long and short-term take-or-pay arrangements with suppliers and are not included on Praxair's balance sheet. These obligations are primarily minimum-purchase commitments for helium, electricity, natural gas and feedstock used to produce atmospheric and process gases. A significant portion of these obligations is passed on to customers through similar take-or-pay or other contractual arrangements. Purchase obligations that are not passed along to customers through such contractual arrangements are subject to market conditions, but do not represent a material risk to Praxair. During 2016, payments related to Praxair's unconditional purchase obligations totaled $887 million, including $444 million for electricity and $150 million for natural gas. Approximately $2,770 million of the purchase obligations relates to power and is intended to secure the uninterrupted supply of electricity and feedstock to Praxair's plants to reliably satisfy customer product supply obligations, and extend through 2030. Certain of the power contracts contain various cancellation provisions requiring supplier agreement, and many are subject to annual escalations based on local inflation factors. The purchase obligations also include a multi-year contract for silane, with a total purchase obligation of $86 million as of December 31, 2016. At December 31, 2016, Praxair's current selling prices and estimated future demand for silane are in excess of its contractual purchase obligations under the contract. Construction commitments of $1,232 million represent outstanding commitments to complete authorized construction projects as of December 31, 2016. A significant portion of Praxair’s capital spending is related to the construction of new production facilities to satisfy customer commitments which may take a year or more to complete. Unconsolidated equity investees had total debt of approximately $305 million at December 31, 2016, which was non-recourse to Praxair. Additionally, Praxair pledged its interest in an unconsolidated equity investment as collateral for $22 million of debt held by that same equity investee. Praxair has no significant financing arrangements with closely-held related parties. At December 31, 2016, Praxair had undrawn outstanding letters of credit, bank guarantees and surety bonds valued at approximately $415 million from financial institutions. These relate primarily to customer contract performance guarantees (including plant construction in connection with certain on-site contracts), self-insurance claims and other commercial and governmental requirements, including foreign litigation matters. |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | NOTE 18. SEGMENT INFORMATION The company’s operations are organized into five reportable segments, four of which have been determined on a geographic basis of segmentation: North America, Europe, South America and Asia. In addition, Praxair operates its worldwide surface technologies business through its wholly-owned subsidiary, Praxair Surface Technologies, Inc., which represents the fifth reportable segment. Praxair’s operations consist of two major product lines: industrial gases and surface technologies. The industrial gases product line centers on the manufacturing and distribution of atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty gases, acetylene). Many of these products are co-products of the same manufacturing process. Praxair manufactures and distributes nearly all of its products and manages its customer relationships on a regional basis. Praxair’s industrial gases are distributed to various end-markets within a regional segment through one of three basic distribution methods: on-site or tonnage; merchant or bulk; and packaged or cylinder gases. The distribution methods are generally integrated in order to best meet the customer’s needs and very few of its products can be economically transported outside of a region. Therefore, the distribution economics are specific to the various geographies in which the company operates and are consistent with how management assesses performance. Praxair evaluates the performance of its reportable segments based primarily on operating profit, excluding inter-company royalties and items not indicative of ongoing business trends. Corporate and globally managed expenses, and research and development costs relating to Praxair’s global industrial gases business, are allocated to operating segments based on sales. The table below presents information about reportable segments for the years ended December 31, 2016, 2015 and 2014.
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Changes primarily relate to equity investment earnings, dividends and currency impacts.
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Quarterly Data |
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Quarterly Data (Unaudited) | NOTE 19. QUARTERLY DATA (UNAUDITED) (Dollar amounts in millions, except per share data)
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Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation – The consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States of America (" U.S. GAAP") and include the accounts of all significant subsidiaries where control exists and, in limited situations, variable-interest entities where the company is the primary beneficiary. Intercompany transactions and balances are eliminated in consolidation and any significant related-party transactions have been disclosed. Changes in ownership interest that result either in consolidation or deconsolidation of an investment are recorded at fair value through earnings, including the retained ownership interest, while changes that do not result in either consolidation or deconsolidation of a subsidiary are treated as equity transactions. |
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Equity Method Investments and Joint Ventures Disclosure | Equity investments generally consist of 20% to 50% owned operations where the company exercises significant influence, but does not have control. Equity income from equity investments in corporations is reported on an after-tax basis. Pre-tax income from equity investments that are partnerships or limited-liability corporations ("LLC") is included in other income (expenses) – net with related taxes included in Income taxes. Equity investments are reviewed for impairment whenever events or circumstances reflect that an impairment loss may have incurred. |
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Cost Method Investments, Policy | Operations less than 20% owned, where the company does not exercise significant influence, are generally carried at cost. |
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Use of Estimates | Use of Estimates – The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. While actual results could differ, management believes such estimates to be reasonable. |
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Revenue Recognition | Revenue Recognition – Product sales represent approximately 87% of consolidated sales. Revenue is recognized when a firm sales agreement exists, collectability of a fixed or determinable sales price is reasonably assured, and when title and risks of ownership transfer to the customer for product sales or, in the case of other revenues when obligations are satisfied or services are performed. Sales returns and allowances are not a normal practice in the industry and are not significant. A small portion of the company’s revenues relate to long-term construction contracts and are generally recognized using the percentage-of-completion method. Under this method, revenues from sales of major equipment, such as large air-separation facilities, are recognized based primarily on cost incurred to date compared with total estimated cost. Changes to total estimated cost and anticipated losses, if any, are recognized in the period determined. For contracts that contain multiple products and/or services, amounts assigned to each component are based on its objectively determined fair value, such as the sales price for the component when it is sold separately or competitor prices for similar components. Certain of the company’s facilities that are built to provide product to a specific customer are required to be accounted for as leases. The associated revenue streams are classified as rental revenue and are not significant. Amounts billed for shipping and handling fees are recorded as sales, generally on FOB destination terms, and costs incurred for shipping and handling are recorded as cost of sales. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue producing transactions are presented on a net basis and are not included in sales in the consolidated statement of income. |
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Cost of Sales | costs incurred for shipping and handling are recorded as cost of sales. |
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Cash Equivalents | Cash Equivalents – Cash equivalents are considered to be highly liquid securities with original maturities of three months or less. |
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Inventories | Inventories – Inventories are stated at the lower of cost or market. Cost is determined using the average-cost method. |
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Property, Plant and Equipment | Property, Plant and Equipment – Net – Property, plant and equipment are carried at cost, net of accumulated depreciation. The company capitalizes interest as part of the cost of constructing major facilities (see Note 7). Depreciation is calculated on the straight-line method based on the estimated useful lives of the assets, which range from 3 years to 40 years (see Note 8). Praxair uses accelerated depreciation methods for tax purposes where appropriate. Maintenance of property, plant and equipment is generally expensed as incurred. The company performs a test for impairment whenever events or changes in circumstances indicate that the carrying amount of an individual asset or asset group may not be recoverable. Should projected undiscounted future cash flows be less than the carrying amount of the asset or asset group, an impairment charge reducing the carrying amount to fair value is required. Fair value is determined based on the most appropriate valuation technique, including discounted cash flows. |
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Asset - Retirement Obligations | Asset-Retirement Obligations – An asset-retirement obligation is recognized in the period in which sufficient information exists to determine the fair value of the liability with a corresponding increase to the carrying amount of the related property, plant and equipment which is then depreciated over its useful life. The liability is initially measured at discounted fair value and then accretion expense is recorded in each subsequent period. The company’s asset-retirement obligations are primarily associated with its on-site long-term supply arrangements where the company has built a facility on land leased from the customer and is obligated to remove the facility at the end of the contract term. The company’s asset-retirement obligations are not material to its consolidated financial statements. |
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Foreign Currency Translation | Foreign Currency Translation – For most foreign operations, the local currency is the functional currency and translation gains and losses are reported as part of the accumulated other comprehensive income (loss) component of equity as a cumulative translation adjustment (see Note 7). |
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Financial Instruments | Financial Instruments – Praxair enters into various derivative financial instruments to manage its exposure to fluctuating interest and currency exchange rates and energy costs. Such instruments primarily include interest-rate swap and treasury rate lock agreements; currency-swap agreements; forward contracts; currency options; and commodity-swap agreements. These instruments are not entered into for trading purposes. Praxair only uses commonly traded and non-leveraged instruments. There are three types of derivatives the company enters into: (i) those relating to fair-value exposures, (ii) those relating to cash-flow exposures, and (iii) those relating to foreign currency net investment exposures. Fair-value exposures relate to recognized assets or liabilities, and firm commitments; cash-flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities, or forecasted transactions; and net investment exposures relate to the impact of foreign currency exchange rate changes on the carrying value of net assets denominated in foreign currencies. When a derivative is executed and hedge accounting is appropriate, it is designated as either a fair-value hedge, cash-flow hedge, or a net investment hedge. Currently, Praxair designates all interest-rate and treasury rate locks as hedges for accounting purposes; however, currency contracts are generally not designated as hedges for accounting purposes unless they are related to forecasted transactions. Whether designated as hedges for accounting purposes or not, all derivatives are linked to an appropriate underlying exposure. On an ongoing basis, the company assesses the hedge effectiveness of all derivatives designated as hedges for accounting purposes to determine if they continue to be highly effective in offsetting changes in fair values or cash flows of the underlying hedged items. If it is determined that the hedge is not highly effective, then hedge accounting will be discontinued prospectively. Changes in the fair value of derivatives designated as fair-value hedges are recognized in earnings as an offset to the change in the fair values of the underlying exposures being hedged. The changes in fair value of derivatives that are designated as cash-flow hedges are deferred in accumulated other comprehensive income (loss) and are reclassified to earnings as the underlying hedged transaction affects earnings. Any ineffectiveness is recognized in earnings immediately. Hedges of net investments in foreign subsidiaries are recognized in the cumulative translation adjustment component of accumulated other comprehensive income (loss) on the consolidated balance sheets to offset translation gains and losses associated with the hedged net investment. Derivatives that are entered into for risk-management purposes and are not designated as hedges (primarily related to anticipated net income and currency derivatives other than for firm commitments) are recorded at their fair market values and recognized in current earnings. See Note 12 for additional information relating to financial instruments. |
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Goodwill | Goodwill – Acquisitions are accounted for using the acquisition method which requires allocation of the purchase price to assets acquired and liabilities assumed based on estimated fair values. Any excess of the purchase price over the fair value of the assets and liabilities acquired is recorded as goodwill. Allocations of the purchase price are based on preliminary estimates and assumptions at the date of acquisition and are subject to revision based on final information received, including appraisals and other analyses which support underlying estimates. The company performs a goodwill impairment test annually in the second quarter or more frequently if events or circumstances indicate that an impairment loss may have been incurred. The applicable guidance allows an entity to first assess qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than carrying value. If it is determined that it is more likely than not that the fair value of a reporting unit is less than carrying value then the company will estimate and compare the fair value of its reporting units to their carrying value, including goodwill. Reporting units are determined based on one level below the operating segment level. As applicable, fair value is determined through the use of projected future cash flows, multiples of earnings and sales and other factors. Such analysis requires the use of certain market assumptions and discount factors, which are subjective in nature. See Note 9 for additional information relating to goodwill. |
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Other Intangible Assets | Other Intangible Assets – Customer and license/use agreements, non-compete agreements and patents and other intangibles are amortized over the estimated period of benefit. The determination of the estimated period of benefit will be dependent upon the use and underlying characteristics of the intangible asset. Praxair evaluates the recoverability of its intangible assets subject to amortization when facts and circumstances indicate that the carrying value of the asset may not be recoverable. If the carrying value is not recoverable, impairment is measured as the amount by which the carrying value exceeds its estimated fair value. Fair value is generally estimated based on either appraised value or other valuation techniques. See Note 10 for additional information relating to other intangible assets. |
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Income Taxes | Income Taxes – Deferred income taxes are recorded for the temporary differences between the financial statement and tax bases of assets and liabilities using currently enacted tax rates. Valuation allowances are established against deferred tax assets whenever circumstances indicate that it is more likely than not that such assets will not be realized in future periods. Under the guidance for accounting for uncertainty in income taxes, the company can recognize the benefit of an income tax position only if it is more likely than not (greater than 50%) that the tax position will be sustained upon tax examination, based solely on the technical merits of the tax position. Otherwise, no benefit can be recognized. The tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Additionally, the company accrues interest and related penalties, if applicable, on all tax exposures for which reserves have been established consistent with jurisdictional tax laws. Interest and penalties are classified as income tax expense in the financial statements. See Note 5 for additional information relating to income taxes. |
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Retirement Benefits | Retirement Benefits – Most Praxair employees participate in a form of defined benefit or contribution retirement plan, and additionally certain employees are eligible to participate in various post-employment health care and life insurance benefit plans. The cost of contribution plans is recognized in the year earned while the cost of other plans is recognized over the employees’ expected service period to the company, all in accordance with the applicable accounting standards. The funded status of the plans is recorded as an asset or liability in the consolidated balance sheets. Funding of retirement benefits varies and is in accordance with local laws and practices. See Note 16 for additional information relating to retirement programs. |
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Share-based Compensation | Share-based Compensation– The company has granted share-based awards which consist of stock options, restricted stock and performance-based stock. Share-based compensation expense is generally recognized on a straight-line basis over the stated vesting period. For stock awards granted to full-retirement-eligible employees, compensation expense is recognized over the period from the grant date to the date retirement eligibility is achieved. For performance-based awards, compensation expense is recognized only if it is probable that the performance condition will be achieved. See Note 15 for additional disclosures relating to share-based compensation. |
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New Accounting Pronouncements, Policy | Accounting Standards Implemented in 2016 The following standards were effective for Praxair in 2016 and their adoption did not have a significant impact on the consolidated financial statements:
Effective in the second quarter 2016, Praxair elected to adopt the requirements of this new accounting standard. Accordingly, income tax expense and operating cash flows for 2016 include $20 million of excess tax benefits. The Company elected not to adjust prior-year cash flow presentations. The new standard also amends the consolidated statement of cash flows by requiring that cash paid to taxing authorities at settlement arising from the withholding of shares from employees be classified in cash flows from financing activities (such amounts were previously included in cash flows from operating activities). This portion of the standard was required to be adopted on a retrospective basis. In addition, $13 million and $19 million were similarly reclassified for the years ended December 31, 2015 and 2014, respectively.
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New Accounting Pronouncements Not Yet Adopted | Accounting Standards to be Implemented
The Company is currently in the process of evaluating and implementing this new guidance, as required, and at this time expects to use the modified retrospective basis starting in 2018. Praxair will provide additional updates in future filings, when appropriate.
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Reclassifications | Reclassifications – Certain prior years’ amounts have been reclassified to conform to the current year’s presentation, including reclassifications to the condensed consolidated statement of cash flows due to the adoption of the new share-based payment accounting standard. |
Cost Reduction Program and Other Charges (Tables) |
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Cost Reduction Program And Other Charges (Table) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Cost Reduction By Segment [Table Text Block] | In the third quarter of 2016, Praxair recorded pre-tax charges totaling $96 million ($63 million after-tax and noncontrolling interests of $0.22 per diluted share). Following is a summary of the pre-tax charge by reportable segment:
In the second quarter of 2015, Praxair recorded pre-tax charges totaling $146 million ($112 million after-tax and noncontrolling interests or $0.39 per diluted share) and in the third quarter recorded pre-tax charges totaling $19 million ($13 million after-tax or $0.04 per diluted share). The charges related primarily to severance and other costs associated with a cost reduction program, which was initiated in response to lower volumes resulting from economic slowdown in emerging markets and energy related end-markets. Following is a summary of the pre-tax charges by reportable segment:
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Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the activities related to the company's cost reduction and other charges for the years ended December 31, 2016 and 2015:
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Leases (Tables) |
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Leases, Operating [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Leases Table | At December 31, 2016, minimum payments due under operating leases are as follows:
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Income Taxes (Tables) |
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Income Tax Disclosure (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of U.S. and Foreign Pre-tax Income Table | Pre-tax income applicable to U.S. and foreign operations is as follows:
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Schedule of the Provision for Income Taxes Table | The following is an analysis of the provision for income taxes:
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Schedule of the Difference Between the Actual Income Tax Provision and the Amount Computed By Applying the US Statutory Income Tax Rate Table | An analysis of the difference between the provision for income taxes and the amount computed by applying the U.S. statutory income tax rate to pre-tax income follows:
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Schedule of the Composition of the Net Deferred Tax Liabilities in the Consolidated Balance Sheets Table | Net deferred tax liabilities included in the consolidated balance sheet are comprised of the following:
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Schedule of Valuation Allowances Relating To Deferred Tax Assets Table |
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Schedule of Reconciliation of Unrecognized Tax Benefits Table | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
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Schedule of Open Tax Years Subject to Examination by Major Jurisdiction Table | As of December 31, 2016, the company remained subject to examination in the following major tax jurisdictions for the tax years as indicated below:
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Earnings Per Share - Praxair, Inc. Shareholders (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share Table - Praxair, Inc. Shareholders - Table | Basic earnings per share is computed by dividing Net income – Praxair, Inc. for the period by the weighted average number of Praxair common shares outstanding. Diluted earnings per share is computed by dividing Net income – Praxair, Inc. for the period by the weighted average number of Praxair common shares outstanding and dilutive common stock equivalents, as follows:
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Supplemental Information (Tables) |
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Supplemental Information (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Selling General And Administrative Table |
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Schedule Of Depreciation And Amortization Table |
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Schedule Of Other Income (Expense) - Net Table |
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Schedule Of Interest Expense - Net Table |
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Schedule Of Noncontrolling Interests Income [Table Text Block] |
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Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] |
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Schedule Of Inventories Table |
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Schedule Of Prepaid And Other Current Assets Table |
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Schedule Of Other Long-term Assets Table |
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Schedule Of Other Current Liabilities Table |
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Schedule Of Other Long-term Liabilities Table |
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Schedule Of Deferred Credits Table |
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Schedule Of Accumulated Other Comprehensive Income (Loss) Table |
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Property, Plant & Equipment - Net (Tables) |
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Property, Plant & Equipment - Net | Significant classes of property, plant and equipment are as follows:
(a) - Depreciable lives of production plants related to long-term customer supply contracts are consistent with the contract lives. (b) - Land is not depreciated. |
Goodwill (Tables) |
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Schedule of Goodwill [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill Table | Changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 were as follows:
* Primarily relates to the elimination of goodwill with a divestiture. |
Other Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Intangible Assets Table | The following is a summary of Praxair’s other intangible assets at December 31, 2016 and 2015:
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Schedule of Estimated Future Amortization Expense Table | Total estimated annual amortization expense is as follows:
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term And Short-term Debt Table | The following is a summary of Praxair’s outstanding debt at December 31, 2016 and 2015:
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Credit Facilities Table | At December 31, 2016, the company has the following major credit facility available for future borrowing:
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Expected Maturities On Long-term Debt Table | Expected maturities of long-term debt are as follows:
________________________ * $400 million of debt due in 2017 has been reflected in 2019 maturities due to the company’s intent to refinance this debt on a long-term basis and the ability to do so under the $2.5 billion senior unsecured credit facility with a syndicate of banks which expires in 2019 |
Financial Instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments Fair Value and Notional Amounts Table | The following table is a summary of the notional amount and fair value of derivatives outstanding at December 31, 2016 and 2015 for consolidated subsidiaries:
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Schedule Of Treasury Rate Lock Contracts Table Text Block | The following table summarizes the unrecognized gains (losses) related to terminated treasury rate lock contracts:
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Schedule of Derivative Instruments Not Designated as Hedging Instruments Table | The following table summarizes the impact of the company's derivatives not designated as hedging instruments on the consolidated statements of income:
* The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities. Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt items are recorded in the consolidated statements of income as interest expense-net. Other balance sheet items and anticipated net income gains (losses) are recorded in the consolidated statements of income as other income (expenses)-net. |
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Schedule of Derivative Instruments Designated As Hedging Instruments Table | The following table summarizes the impact of the company's derivatives designated as hedging instruments that impact AOCI:
** The gains (losses) on net investment hedges are recorded as a component of AOCI within foreign currency translation adjustments in the consolidated balance sheets and consolidated statements of comprehensive income. The gains (losses) on forecasted purchases, balance sheet items, and treasury rate locks are recorded as a component of AOCI within derivative instruments in the consolidated balance sheets and the consolidated statements of comprehensive income. There was no ineffectiveness for these instruments during 2016 or 2015. The gains (losses) on net investment hedges are reclassified to earnings only when the related currency translation adjustments are required to be reclassified, usually upon sale or liquidation of the investment. The gains (losses) for interest rate contracts are reclassified to earnings as interest expense –net on a straight-line basis over the remaining maturity of the underlying debt. Net losses of approximately $1 million are expected to be reclassified to earnings during 2017. |
Fair Value Disclosures (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Table | The following table summarizes assets and liabilities measured at fair value on a recurring basis at December 31, 2016 and 2015:
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Equity and Redeemable Noncontrolling Interests (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity and Redeemable Noncontrolling Interests Table Abstract | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | The following is a summary of redeemable noncontrolling interests for the years ended December 31, 2016, 2015 and 2014 :
* In December 2015, Praxair sold its controlling interest in Praxair Distribution Southeast, LLC and, accordingly, removed the related redeemable noncontrolling interests. ** In June 2016, Praxair acquired the remaining 34% stake in a Scandinavian joint venture for $104 million. In January 2014, Praxair acquired the remaining noncontrolling interests in a joint venture in the United States. The cash payments related to these acquisitions are shown in the financing section of the consolidated statements of cash flows under the caption "Noncontrolling interest transactions and other" as there was no change in control. |
Share-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following weighted-average assumptions were used to value the grants in 2016, 2015 and 2014:
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Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes option activity under the plans as of December 31, 2016 and changes during the period then ended (averages are calculated on a weighted basis; life in years; intrinsic value expressed in millions):
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Performance Based and Restricted Stock Activity | The following table summarizes non-vested performance-based and restricted stock award activity as of December 31, 2016 and changes during the period then ended (shares based on target amounts, averages are calculated on a weighted basis):
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Retirement Programs (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Pension And Other Postretirement Benefits (Tables) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Pension and OPEB Net Periodic Benefit Costs Table | The components of net pension and OPEB costs for 2016, 2015 and 2014 are shown below:
* 2016 includes a $4 million pension settlement charge related to lump sum benefits paid to retired senior managers in the third quarter. The third quarter of 2015 and the fourth quarter of 2014 both include charges of $7 million, related primarily to the retirement of senior managers in the United States (see Note 2) |
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Schedule of Pension and OPEB Funded Status Table | The changes in benefit obligation and plan assets for Praxair’s pension and OPEB programs, including reconciliation of the funded status of the plans to amounts recorded in the consolidated balance sheet, as of December 31, 2016 and 2015 are shown below:
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Schedule of Pension and OPEB Changes in Plan Assets and Benefit Obligations Recognized in AOCI Table | The changes in plan assets and benefit obligations recognized in other comprehensive income in 2016 and 2015 are as follows:
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Schedule of Pension and OPEB Amounts in AOCI to be Recognized in 2017 Table | The amounts in accumulated other comprehensive income (loss) that are expected to be recognized as components of net periodic benefit cost during 2017 are as follows:
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Schedule of Pension Plans Where the Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets Table | The following table provides information for pension plans where the accumulated benefit obligation exceeds the fair value of the plan assets:
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Schedule of Pension and OPEB Plans Assumptions Used to Determine Benefit Obligations and the Net Benefit Cost Table | The assumptions used to determine benefit obligations are as of the respective balance sheet dates and the assumptions used to determine net benefit cost are as of the previous year-end, as shown below:
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Schedule of OPEB Plans Assumed Healthcare Cost Trend Rates Table |
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Schedule of Effect of One-Percentage Point Change in Assumed Healthcare Cost Trend Rates Table | These healthcare-cost trend rate assumptions have an impact on the amounts reported. However, cost caps limit the impact on the net OPEB benefit cost in the U.S. To illustrate the effect, a one-percentage point change in assumed healthcare cost trend rates would have the following effects:
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Schedule of Pension Plans Targeted Asset Allocation Range and Weighted-Average Asset Allocations Table | The international pension plans are managed individually based on diversified investment portfolios, with different target asset allocations that vary for each plan. Praxair’s U.S. and international pension plans’ weighted-average asset allocations at December 31, 2016 and 2015, and the target asset allocation range for 2016, by major asset category, are as follows:
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Schedule of Pension Plans Assets Measured at Fair Value by Asset Category Table | The following table summarizes pension assets measured at fair value by asset category at December 31, 2016 and 2015. During the years presented, there has been no transfer of assets between Levels 1, 2 and 3 (see Note 13 for definition of the levels):
* Pooled funds are measured using the net asset value ("NAV") as a practical expedient for fair value as permissible under the accounting standard for fair value measurements and have not been categorized in the fair value hierarchy in accordance with recently issued accounting standards updates related to Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share. Pooled fund NAVs are provided by the trustee and are determined by reference to the fair value of the underlying securities of the trust, less its liabilities, which are valued primarily through the use of directly or indirectly observable inputs. Depending on the pooled fund, underlying securities may include marketable equity securities or fixed income securities. ** The following table summarizes changes in fair value of the pension plan assets classified as level 3 for the periods ended December 31, 2016 and 2015:
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Schedule of Pension Plans Changes in Fair Value of Assets Classified as Level 3 Table | ** The following table summarizes changes in fair value of the pension plan assets classified as level 3 for the periods ended December 31, 2016 and 2015:
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Schedule of Pension and OPEB Estimated Future Benefit Payments, Net of Participant Contributions Table | The following table presents estimated future benefit payments, net of participants contributions:
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unconditional Purchase Obligations (Excluding Capital Stock Redemptions) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Material Commitments and Contractual Obligations | The following table sets forth Praxair’s material commitments and contractual obligations as of December 31, 2016, excluding leases, tax liabilities for uncertain tax positions, long-term debt, other post retirement and pension obligations which are summarized elsewhere in the financial statements (see Notes 4, 5, 11, and 16):
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Segments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting (Tables) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, Sales Table |
The table below presents information about reportable segments for the years ended December 31, 2016, 2015 and 2014.
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Schedule Of Segment Reporting Information, Operating Profit |
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[1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, Total Assets Table |
Changes primarily relate to equity investment earnings, dividends and currency impacts. |
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Schedule of Segment Reporting Information, Depreciation and Amortization Table |
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Schedule of Segment Reporting Information, Capital Expenditures and Acquisitions Table |
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Revenue from External Customers by Products and Services |
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Schedule of Segment Information, Sales by Major Country Table |
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Schedule of Segment Information, Long-lived Assets by Major Country Table |
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[1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Information, Equity Investments Table |
Changes primarily relate to equity investment earnings, dividends and currency impacts. |
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Quarterly Data (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Data (Unaudited) Table | (Dollar amounts in millions, except per share data)
________________________
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Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Accounting Policy | |||
Excess Tax Benefits | $ 20 | $ 13 | $ 19 |
Minimum ownership percentage generally utilized for an equity investment | 20.00% | ||
Maximum ownership percentage generally utilized for an equity investment | 50.00% | ||
Maximum ownership percentage generally utilized for a cost investment | 20.00% | ||
Minimum likelihood that a position will be sustained upon tax examination needed to recognize a benefit | 50.00% | ||
Tax benefits recognized are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement | 50.00% | ||
Product Revenues | |||
Accounting Policy | |||
Percentage of Consolidated Sales | 87.00% | ||
Minimum | |||
Accounting Policy | |||
Useful life | 3 years | ||
Maximum | |||
Accounting Policy | |||
Useful life | 40 years |
Cost Reduction Program and Other Charges (Restructuring and Related Information) (Details) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
$ / shares
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
$ / shares
|
Jun. 30, 2015
USD ($)
$ / shares
|
Mar. 31, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
employee
$ / shares
|
Dec. 31, 2015
USD ($)
employee
$ / shares
|
Dec. 31, 2014
USD ($)
$ / shares
|
Feb. 13, 2013 |
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Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Net income – Praxair, Inc. | $ 406 | $ 339 | [1] | $ 399 | $ 356 | [1] | $ 422 | $ 401 | [1] | $ 308 | [1] | $ 416 | $ 1,500 | $ 1,547 | $ 1,694 | |||
Operating Profit (Loss) | 599 | 497 | [1] | $ 588 | 554 | [1] | 624 | 594 | [1] | 480 | [1] | $ 623 | 2,238 | 2,321 | 2,608 | |||
Income Tax Expense (Benefit) | 551 | 612 | 691 | |||||||||||||||
Noncontrolling Interests | 38 | 44 | 52 | |||||||||||||||
Severance Costs | 7 | 5 | 22 | |||||||||||||||
Valuation Allowances and Reserves, Adjustments | 6 | (1) | (7) | |||||||||||||||
Total cash requirements for cost reduction program | 57 | 94 | $ 57 | $ 94 | ||||||||||||||
Restructuring and Related Cost, Number of Positions Eliminated | employee | 730 | 1,544 | ||||||||||||||||
Restructuring Reserve [Abstract] | ||||||||||||||||||
Less: Cash payments | $ (13) | |||||||||||||||||
Total Cost Reduction Program | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Net income – Praxair, Inc. | $ (63) | $ (13) | $ (112) | |||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ / shares | $ (0.22) | $ (0.04) | $ (0.39) | |||||||||||||||
Valuation Allowances and Reserves, Adjustments | $ 10 | |||||||||||||||||
Pension Settlement Charge [Member] | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Net income – Praxair, Inc. | $ (3) | $ (5) | $ (5) | |||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ / shares | $ (0.01) | $ (0.02) | $ (0.02) | |||||||||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $ (4) | $ (7) | $ (7) | |||||||||||||||
North America Segment [Member] | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | 1,430 | 1,558 | 1,580 | |||||||||||||||
North America Segment [Member] | Other Restructuring [Member] | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Other Restructuring Costs | 29 | 20 | ||||||||||||||||
North America Segment [Member] | Severance Costs | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Severance Costs | 14 | 14 | ||||||||||||||||
North America Segment [Member] | Total Cost Reduction Program | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Total Cost Reduction Program | 43 | 34 | ||||||||||||||||
South America Segment Member | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | 257 | 291 | 449 | |||||||||||||||
South America Segment Member | Other Restructuring [Member] | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Other Restructuring Costs | 7 | 49 | ||||||||||||||||
South America Segment Member | Severance Costs | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Severance Costs | 5 | 18 | ||||||||||||||||
South America Segment Member | Total Cost Reduction Program | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Total Cost Reduction Program | 12 | 67 | ||||||||||||||||
Surface Technologies Segment [Member] | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | 102 | 105 | 123 | |||||||||||||||
Surface Technologies Segment [Member] | Other Restructuring [Member] | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Other Restructuring Costs | 4 | 10 | ||||||||||||||||
Surface Technologies Segment [Member] | Severance Costs | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Severance Costs | 3 | 9 | ||||||||||||||||
Surface Technologies Segment [Member] | Total Cost Reduction Program | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Total Cost Reduction Program | 7 | 19 | ||||||||||||||||
Europe Segment Member | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | 273 | 250 | 291 | |||||||||||||||
Europe Segment Member | Other Restructuring [Member] | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Other Restructuring Costs | 3 | 9 | ||||||||||||||||
Europe Segment Member | Severance Costs | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Severance Costs | 12 | 11 | ||||||||||||||||
Europe Segment Member | Total Cost Reduction Program | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Total Cost Reduction Program | 15 | 20 | ||||||||||||||||
Asia Segment Member | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | 276 | 289 | 303 | |||||||||||||||
Asia Segment Member | Other Restructuring [Member] | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Other Restructuring Costs | 13 | 14 | ||||||||||||||||
Asia Segment Member | Severance Costs | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Severance Costs | 6 | 11 | ||||||||||||||||
Asia Segment Member | Total Cost Reduction Program | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Total Cost Reduction Program | 19 | 25 | ||||||||||||||||
Total Segments | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | 2,338 | 2,493 | 2,746 | |||||||||||||||
Total Segments | Other Restructuring [Member] | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Other Restructuring Costs | 56 | 102 | ||||||||||||||||
Restructuring Reserve [Abstract] | ||||||||||||||||||
Cost reduction program - Period Start | 20 | 20 | ||||||||||||||||
Less: Cash payments | (9) | (13) | ||||||||||||||||
Less: Non-cash asset write-offs | (39) | (68) | ||||||||||||||||
Restructuring Reserve, Translation Adjustment | (1) | (1) | ||||||||||||||||
Cost reduction program - Period End | 27 | 20 | 27 | 20 | ||||||||||||||
Total Segments | Severance Costs | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Severance Costs | 40 | 63 | ||||||||||||||||
Restructuring Reserve [Abstract] | ||||||||||||||||||
Cost reduction program - Period Start | 30 | 30 | ||||||||||||||||
Less: Cash payments | (33) | (31) | ||||||||||||||||
Restructuring Reserve, Translation Adjustment | 1 | (2) | ||||||||||||||||
Cost reduction program - Period End | 38 | 30 | 38 | 30 | ||||||||||||||
Total Segments | Total Cost Reduction Program | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Total Cost Reduction Program | $ 19 | $ 146 | 96 | 165 | ||||||||||||||
Restructuring Reserve [Abstract] | ||||||||||||||||||
Cost reduction program - Period Start | $ 50 | 50 | ||||||||||||||||
Less: Cash payments | (42) | (44) | ||||||||||||||||
Less: Non-cash asset write-offs | (39) | (68) | ||||||||||||||||
Restructuring Reserve, Translation Adjustment | 0 | (3) | ||||||||||||||||
Cost reduction program - Period End | $ 65 | $ 50 | $ 65 | $ 50 | ||||||||||||||
Venezuela Currency Devaluation [Member] | ||||||||||||||||||
Restructuring And Related Cost [Line Items] | ||||||||||||||||||
Asset Impairment Charges | 63 | |||||||||||||||||
Monetary Asset and Liability Translation Loss | $ 68 | |||||||||||||||||
Venezuela Exchange Rate | 50 | 6.3 | ||||||||||||||||
Net income – Praxair, Inc. | $ (131) | |||||||||||||||||
Venezuela Implied Devaluation On Remaining Sectors Rate | 88.00% | |||||||||||||||||
Operating Profit (Loss) | $ (131) | |||||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ / shares | $ (0.45) | |||||||||||||||||
|
Acquisitions (Details) € in Millions, $ in Millions |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
EUR (€)
Rate
|
Dec. 31, 2016
USD ($)
Rate
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|||||
Business Acquisition Line Items | ||||||||
Goodwill, Acquired During Period | $ 141 | $ 56 | $ 86 | |||||
Purchase Price of Acquisitions | 363 | 82 | 206 | |||||
Goodwill | 3,117 | 2,986 | 3,121 | |||||
Finite-lived Intangible Assets Acquired | $ 82 | 26 | 66 | |||||
Purchase of redeemable noncontrolling interest - percent acquired | Rate | 34.00% | 34.00% | ||||||
Payments for Repurchase of Redeemable Noncontrolling Interest | $ 104 | [1] | $ 9 | $ 112 | [1] | |||
European CO2 Business [Member] | ||||||||
Business Acquisition Line Items | ||||||||
Goodwill, Acquired During Period | 69 | |||||||
Purchase Price of Acquisitions | € 206 | 230 | ||||||
Intangible assets | $ 121 | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | 20 years | ||||||
Finite-lived Intangible Assets Acquired | $ 51 | |||||||
|
Leases (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Operating Leases, Rent Expense, Net [Abstract] | |||
Lease and Rental Expense | $ 141 | $ 141 | $ 148 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2017 | 117 | ||
2018 | 97 | ||
2019 | 79 | ||
2020 | 65 | ||
2021 | 54 | ||
Thereafter | 117 | ||
Total Minimum Payments Under Operating Leases | 529 | ||
Present Value of Future Lease Payments Under Operating Leases | $ 490 |
Income Taxes (Pre-tax Income and Income Tax Provision) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current tax expense - U.S. federal | $ 266 | $ 205 | $ 291 |
Current tax expense - State and local | 32 | 33 | 35 |
Current Foreign Tax Expense (Benefit) | 266 | 275 | 310 |
Total current tax expense | 564 | 513 | 636 |
Deferred tax expense (benefit) - U.S. federal | 3 | 71 | 14 |
Deferred tax expense (benefit) - State and local | 7 | 10 | 12 |
Deferred Foreign Income Tax Expense (Benefit) | (23) | 18 | 29 |
Total deferred income taxes | (13) | 99 | 55 |
Income Tax Expense (Benefit) | 551 | 612 | 691 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Pre-tax income - United States | 954 | 980 | 1,004 |
Pre-tax income - Foreign | 1,094 | 1,180 | 1,391 |
Income Before Income Taxes and Equity Investments | $ 2,048 | $ 2,160 | $ 2,395 |
Income Taxes (Tax Rate Analysis) (Details) - USD ($) $ in Millions |
12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
U.S. statutory income tax rate | $ 717 | $ 756 | $ 838 | |||||||||
U.S. statutory income tax rate percentage | 35.00% | 35.00% | 35.00% | |||||||||
State and local taxes - net of federal benefit | $ 28 | $ 28 | $ 31 | |||||||||
State and local taxes - net of federal benefit percentage | 1.40% | 1.30% | 1.30% | |||||||||
U.S. tax credits and deductions | [1] | $ (32) | $ (40) | $ (37) | ||||||||
U.S. tax credits and deductions percentage | [1] | (1.60%) | (1.90%) | (1.50%) | ||||||||
Foreign tax rate differentials | [2] | $ (140) | $ (121) | $ (186) | ||||||||
Foreign tax rate differentials percentage | [2] | (6.80%) | (5.60%) | (7.80%) | ||||||||
Income Tax Reconciliation Devaluation | [3] | $ 46 | ||||||||||
Income Tax Reconciliation Devaluation, percent | [3] | 1.90% | ||||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount | [4] | $ (20) | ||||||||||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | [4] | (1.00%) | ||||||||||
Other - net | $ (2) | $ (11) | $ (1) | |||||||||
Other - net percentage | (0.10%) | (0.50%) | ||||||||||
Income Tax Expense (Benefit) | $ 551 | $ 612 | $ 691 | |||||||||
Provision for income taxes percentage | 26.90% | 28.30% | 28.90% | |||||||||
Current Foreign Tax Expense (Benefit) | $ 266 | $ 275 | $ 310 | |||||||||
statute of limitations lapse [Member] | ||||||||||||
Unusual or Infrequent Item [Line Items] | ||||||||||||
Current Foreign Tax Expense (Benefit) | $ (56) | |||||||||||
|
Income Taxes (Net Deferred Tax Liabilities and Valuation Allowances) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||||||||||
Valuation Allowance [Line Items] | |||||||||||||||||
Charges to expense (income) | $ (13) | $ (20) | $ (20) | ||||||||||||||
Other, including write-offs | 6 | (1) | (7) | ||||||||||||||
Valuation allowances | (132) | [1] | (123) | [1] | (106) | $ (85) | |||||||||||
Valuation Allowances And Reserves Translation Adjustments | (2) | 4 | $ 6 | ||||||||||||||
Deferred Tax Assets | |||||||||||||||||
Other Long-term Assets, Deferred Taxes | 185 | [2],[3] | 118 | ||||||||||||||
Prepaid and Other Current Assets, Deferred Taxes | 184 | ||||||||||||||||
Carryforwards | 284 | 287 | |||||||||||||||
Total net deferred tax assets | 992 | 916 | |||||||||||||||
Accruals and other | [4] | 404 | 351 | ||||||||||||||
Deferred Tax Assets, Goodwill and Intangible Assets | 45 | 45 | |||||||||||||||
Deferred Tax Assets, in Process Research and Development | 233 | 194 | |||||||||||||||
Deferred tax asset - Pension,OPEB | 352 | 325 | |||||||||||||||
Total gross deferred tax assets | 1,124 | 1,039 | |||||||||||||||
Deferred Tax Assets, Unrealized Currency Losses | 6 | 16 | |||||||||||||||
Inventory | 26 | 20 | |||||||||||||||
Benefit plans and related | [5] | 404 | 365 | ||||||||||||||
Deferred Tax Liabilities | |||||||||||||||||
Deferred Credits, Deferred Taxes | 1,209 | [2],[3] | 1,328 | ||||||||||||||
Goodwill | 178 | 147 | |||||||||||||||
Total deferred tax liabilities | 1,024 | 1,026 | |||||||||||||||
Other | 62 | 155 | |||||||||||||||
Exchange gains | 139 | 110 | |||||||||||||||
Intangible Assets | 115 | 117 | |||||||||||||||
Deferred Tax Liabilities, Gross | 2,016 | 1,942 | |||||||||||||||
Fixed assets | $ 1,522 | $ 1,413 | |||||||||||||||
|
Income Taxes (Valuation Allowances Narrative) (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Valuation Allowance [Abstract] | ||
Undistributed earnings of foreign subsidiaries | $ 12,000,000,000 | |
Minimum likelihood that a position will be sustained upon tax examination needed to recognize a benefit | 50.00% | |
Other Tax Carryforward [Line Items] | ||
Operating Loss Carryforwards | $ 106,000,000 | |
Carryforwards | 284,000,000 | $ 287,000,000 |
Brazil Member | ||
Other Tax Carryforward [Line Items] | ||
Brazil net operating loss carryforward | 61,000,000 | |
United States Member | ||
Other Tax Carryforward [Line Items] | ||
Operating Loss Carryforwards, U.S. | 45,000,000 | |
US foreign tax credit carryforwards | 62,000,000 | |
Tax Credit Carryforward, Valuation Allowance | 62,000,000 | |
Foreign Country Member | ||
Other Tax Carryforward [Line Items] | ||
Carryforwards | 61,000,000 | |
Total Company Less US Federal and Brazil NOL And US Foreign Tax Credits Member | ||
Other Tax Carryforward [Line Items] | ||
Tax Credit Carryforward, Valuation Allowance | 70,000,000 | |
Carryforwards | 116,000,000 | |
U.S. State Member | ||
Other Tax Carryforward [Line Items] | ||
Carryforwards | $ 55,000,000 |
Income Taxes (Unrecognized Tax Positions) (Details) - USD ($) $ in Millions |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||
Income Tax Uncertainties [Abstract] | ||||||||
Expenses (Income) for interest and penalties on tax reserves | $ (10) | $ (3) | ||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 6 | $ 8 | ||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||||
Unrecognized income tax benefits, January 1 | 68 | 71 | 121 | |||||
Additions for tax positions of prior years | 6 | 21 | 13 | |||||
Reductions for tax positions of prior years | (15) | (13) | (2) | |||||
Additions for current year tax positions | 3 | |||||||
Reductions for settlements with taxing authorities | [1] | (2) | (3) | (3) | ||||
Reductions as a result of a lapse of an applicable statute of limitations | [2] | (56) | ||||||
Foreign currency translation and other | (1) | (8) | (5) | |||||
Unrecognized income tax benefits, December 31 | $ 56 | $ 68 | $ 71 | |||||
|
Income Taxes (Open Years by Major Tax Jurisdictions) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Domestic Country Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2011 |
Domestic Country Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2016 |
Foreign Country Canada Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2009 |
Foreign Country Canada Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2016 |
Foreign Country Mexico Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2011 |
Foreign Country Mexico Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2016 |
Foreign Country Germany Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2011 |
Foreign Country Germany Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2016 |
Foreign Country Italy Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2012 |
Foreign Country Italy Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2016 |
Foreign Country Spain Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2004 |
Foreign Country Spain Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2016 |
Foreign Country Brazil Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2005 |
Foreign Country Brazil Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2016 |
Foreign Country China Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2011 |
Foreign Country China Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2016 |
Foreign Country India Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2006 |
Foreign Country India Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2016 |
Foreign Country Korea Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2012 |
Foreign Country Korea Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2016 |
Foreign Country Thailand Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2010 |
Foreign Country Thailand Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2016 |
Earnings Per Share - Praxair, Inc. Shareholders (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Net income – Praxair, Inc. | $ 406 | $ 339 | [1] | $ 399 | $ 356 | [1] | $ 422 | $ 401 | [1] | $ 308 | [1] | $ 416 | $ 1,500 | $ 1,547 | $ 1,694 | ||
Weighted average shares outstanding | 285,289,000 | 286,606,000 | 291,987,000 | ||||||||||||||
Shares earned and issuable under compensation plans | 388,000 | 399,000 | 507,000 | ||||||||||||||
Weighted average shares used in basic earnings per share | 285,720,000 | 285,858,000 | 285,702,000 | 285,429,000 | 285,288,000 | 285,651,000 | 287,939,000 | 289,143,000 | 285,677,000 | 287,005,000 | 292,494,000 | ||||||
Stock options and awards | 2,080,000 | 2,050,000 | 3,114,000 | ||||||||||||||
Weighted average shares used in diluted earnings per share | 287,956,000 | 288,195,000 | 287,727,000 | 286,665,000 | 286,856,000 | 287,311,000 | 290,102,000 | 291,652,000 | 287,757,000 | 289,055,000 | 295,608,000 | ||||||
Basic Earnings Per Common Share | $ 1.42 | $ 1.19 | $ 1.40 | $ 1.25 | $ 1.48 | $ 1.40 | $ 1.07 | $ 1.44 | $ 5.25 | $ 5.39 | $ 5.79 | ||||||
Diluted Earnings Per Common Share | $ 1.41 | $ 1.18 | [1] | $ 1.39 | $ 1.24 | [1] | $ 1.47 | $ 1.40 | [1] | $ 1.06 | [1] | $ 1.43 | $ 5.21 | $ 5.35 | $ 5.73 | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||||||||||||||
Antidilutive excluded from the computation of Earnings Per Share | 2,602,770 | 2,696,785 | |||||||||||||||
|
Supplemental Information (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2016 |
||||||||||||||||||
Other Current Liabilities [Abstract] | ||||||||||||||||||||||||||||||
Accrued expenses | $ 285 | $ 247 | $ 285 | $ 247 | ||||||||||||||||||||||||||
Payrolls | 141 | 114 | 141 | 114 | ||||||||||||||||||||||||||
Cost reduction program and other charges (Note 2) | 59 | 44 | 59 | 44 | ||||||||||||||||||||||||||
Pension and postretirement (Note 16) | 24 | 29 | 24 | 29 | ||||||||||||||||||||||||||
Interest payable | 78 | 71 | 78 | 71 | ||||||||||||||||||||||||||
Employee benefit accrual | 23 | 22 | 23 | 22 | ||||||||||||||||||||||||||
Other | 223 | 167 | 223 | 167 | ||||||||||||||||||||||||||
Other current liabilities | 841 | 702 | 841 | 702 | ||||||||||||||||||||||||||
Insurance reserves | 8 | 8 | 8 | 8 | ||||||||||||||||||||||||||
Selling, General and Administrative Expense [Abstract] | ||||||||||||||||||||||||||||||
Selling, general and administrative | 1,145 | 1,152 | $ 1,308 | |||||||||||||||||||||||||||
Selling | 493 | 507 | 572 | |||||||||||||||||||||||||||
General and administrative | 652 | 645 | 736 | |||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 38 | 44 | 52 | |||||||||||||||||||||||||||
Noncontrolling Interests Income From Operations | 35 | 34 | 40 | |||||||||||||||||||||||||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 3 | 10 | 12 | |||||||||||||||||||||||||||
Other Long Term Liabilities [Abstract] | ||||||||||||||||||||||||||||||
Other long-term liabilities | 1,213 | 1,155 | 1,213 | 1,155 | ||||||||||||||||||||||||||
Pension and postretirement (Note 16) | 863 | 760 | 863 | 760 | ||||||||||||||||||||||||||
Long-term liability related to cost reduction program | 6 | 6 | 6 | 6 | ||||||||||||||||||||||||||
Other | 269 | 301 | 269 | 301 | ||||||||||||||||||||||||||
Interest and penalties for uncertain tax positions (Note 5) | 6 | 8 | 6 | 8 | ||||||||||||||||||||||||||
Insurance reserves | 25 | 24 | 25 | 24 | ||||||||||||||||||||||||||
Tax liabilities for uncertain tax positions | 44 | 56 | 44 | 56 | ||||||||||||||||||||||||||
Prepaid Expense and Other Assets, Noncurrent [Abstract] | ||||||||||||||||||||||||||||||
Deferred charges | 51 | 50 | 51 | 50 | ||||||||||||||||||||||||||
Long-term receivables reserve | 50 | 35 | 50 | 35 | ||||||||||||||||||||||||||
Pension assets (Note 16) | 13 | 41 | 13 | 41 | ||||||||||||||||||||||||||
Insurance Contracts | [1] | 74 | 74 | 74 | 74 | |||||||||||||||||||||||||
Deferred income taxes (Note 5) | 185 | [2],[3] | 118 | 185 | [2],[3] | 118 | ||||||||||||||||||||||||
Other | 119 | 100 | 119 | 100 | ||||||||||||||||||||||||||
Other long-term assets | 558 | 476 | 558 | 476 | ||||||||||||||||||||||||||
Investments carried at cost | 14 | 12 | 14 | 12 | ||||||||||||||||||||||||||
Long-term receivables, net | [4] | 46 | 33 | 46 | 33 | |||||||||||||||||||||||||
Deposits | 56 | 48 | 56 | 48 | ||||||||||||||||||||||||||
Other Income Expense Net [Abstract] | ||||||||||||||||||||||||||||||
Business divestitures and asset gains (losses) – net | 16 | 34 | 36 | |||||||||||||||||||||||||||
Other income (expenses) – net | 23 | 28 | 9 | |||||||||||||||||||||||||||
Other - net | 8 | (3) | (22) | |||||||||||||||||||||||||||
Currency related net gains (losses) | 1 | (2) | 1 | |||||||||||||||||||||||||||
Severance expense | (7) | (5) | (22) | |||||||||||||||||||||||||||
Partnership income | 5 | 4 | 16 | |||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Repayments of Long-term Debt | 770 | 1,000 | 764 | |||||||||||||||||||||||||||
Interest incurred on debt | 208 | 194 | 215 | |||||||||||||||||||||||||||
Interest Capitalized | (34) | (33) | (38) | |||||||||||||||||||||||||||
Bond redemption | [5] | 16 | 36 | |||||||||||||||||||||||||||
Interest expense – net | 190 | 161 | 213 | |||||||||||||||||||||||||||
Inventory, Finished Goods and Work in Process, Gross [Abstract] | ||||||||||||||||||||||||||||||
Work in process | 45 | 48 | 45 | 48 | ||||||||||||||||||||||||||
Raw materials and supplies | 197 | 202 | 197 | 202 | ||||||||||||||||||||||||||
Inventories | 550 | 531 | 550 | 531 | ||||||||||||||||||||||||||
Finished goods | 308 | 281 | 308 | 281 | ||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable, Net, Current [Abstract] | ||||||||||||||||||||||||||||||
Total Accounts Receivable - Gross | 1,762 | 1,702 | 1,762 | 1,702 | ||||||||||||||||||||||||||
Less: allowance for doubtful accounts | [6] | (121) | (101) | (121) | (101) | |||||||||||||||||||||||||
Other Accounts Receivable | 122 | 101 | 122 | 101 | ||||||||||||||||||||||||||
Provisions to the allowance for doubtful accounts | 41 | 35 | 39 | |||||||||||||||||||||||||||
Accounts receivable – net | 1,641 | 1,601 | 1,641 | 1,601 | ||||||||||||||||||||||||||
Trade | 1,640 | 1,601 | 1,640 | 1,601 | ||||||||||||||||||||||||||
Depreciation, Depletion and Amortization [Abstract] | ||||||||||||||||||||||||||||||
Depreciation | 1,071 | 1,059 | 1,123 | |||||||||||||||||||||||||||
Depreciation and amortization | 285 | $ 284 | $ 281 | $ 272 | 275 | $ 276 | $ 278 | $ 277 | 1,122 | 1,106 | 1,170 | |||||||||||||||||||
Amortization of other intangibles (Note 10) | 51 | 47 | 47 | |||||||||||||||||||||||||||
Prepaid Expense and Other Assets, Current [Abstract] | ||||||||||||||||||||||||||||||
Prepaid and other current assets | 165 | 347 | 165 | 347 | ||||||||||||||||||||||||||
Prepaid | [7] | 108 | 110 | 108 | 110 | |||||||||||||||||||||||||
Deferred income taxes (Note 5) | 184 | 184 | ||||||||||||||||||||||||||||
Estimated Income Tax Payments | 39 | 42 | 39 | 42 | ||||||||||||||||||||||||||
Other | 57 | 53 | 57 | 53 | ||||||||||||||||||||||||||
Deferred Revenue and Credits, Noncurrent [Abstract] | ||||||||||||||||||||||||||||||
Other | 63 | 62 | 63 | 62 | ||||||||||||||||||||||||||
Deferred Income Tax Liabilities (Note 5) | 1,209 | [2],[3] | 1,328 | 1,209 | [2],[3] | 1,328 | ||||||||||||||||||||||||
Deferred credits | $ 1,272 | $ 1,390 | $ 1,272 | $ 1,390 | ||||||||||||||||||||||||||
US Long-term 5.20% Notes due 2017 | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.04 | |||||||||||||||||||||||||||||
Extinguishment of Debt, Gain (Loss), Net of Tax | $ 10 | |||||||||||||||||||||||||||||
Repayments of Long-term Debt | 325 | |||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.20% | 5.20% | 5.20% | |||||||||||||||||||||||||||
Bond redemption | $ 16 | |||||||||||||||||||||||||||||
US Long-term 5.375% Notes due 2016 [Member] | ||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Extinguishment of Debt, Amount | $ 434 | |||||||||||||||||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.07 | |||||||||||||||||||||||||||||
Extinguishment of Debt, Gain (Loss), Net of Tax | $ 22 | |||||||||||||||||||||||||||||
Repayments of Long-term Debt | $ 400 | |||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | |||||||||||||||||||||||||||||
Bond redemption | $ 36 | |||||||||||||||||||||||||||||
|
Supplemental Information (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||
Derivatives - net of taxes | $ (1) | $ (1) | |||
Pension and OPEB funded status obligation | (653) | (577) | |||
Accumulated other comprehensive income (loss) | (4,600) | (4,596) | |||
Funded Status Obligations, Taxes | (352) | (325) | |||
North America Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cumulative Translation Adjustment | [1] | (1,038) | (899) | ||
South America Segment Member | |||||
Segment Reporting Information [Line Items] | |||||
Cumulative Translation Adjustment | [1] | (1,969) | (2,272) | ||
Europe Segment Member | |||||
Segment Reporting Information [Line Items] | |||||
Cumulative Translation Adjustment | [1] | (504) | (526) | ||
Asia Segment Member | |||||
Segment Reporting Information [Line Items] | |||||
Cumulative Translation Adjustment | [1] | (383) | (285) | ||
Surface Technologies Segment [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Cumulative Translation Adjustment | (52) | (36) | |||
Total Segments | |||||
Segment Reporting Information [Line Items] | |||||
Cumulative Translation Adjustment | $ (3,946) | $ (4,018) | |||
|
Property, Plant & Equipment - Net (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
||||||
Property, Plant and Equipment | |||||||
Gross Balance | $ 23,921 | $ 22,694 | |||||
Less: accumulated depreciation | (12,444) | (11,696) | |||||
Property, plant and equipment – net | 11,477 | 10,998 | |||||
Production plants (primarily 15-year life) (a) | |||||||
Property, Plant and Equipment | |||||||
Gross Balance | [1] | 14,588 | 13,778 | ||||
Storage tanks | |||||||
Property, Plant and Equipment | |||||||
Gross Balance | 2,360 | 2,196 | |||||
Transportation equipment and other | |||||||
Property, Plant and Equipment | |||||||
Gross Balance | 2,038 | 1,925 | |||||
Cylinders (primarily 30-year life) | |||||||
Property, Plant and Equipment | |||||||
Gross Balance | 1,722 | 1,654 | |||||
Buildings | |||||||
Property, Plant and Equipment | |||||||
Gross Balance | 1,096 | 1,085 | |||||
Land and improvements (b) | |||||||
Property, Plant and Equipment | |||||||
Gross Balance | [2] | 559 | 517 | ||||
Construction in progress | |||||||
Property, Plant and Equipment | |||||||
Gross Balance | $ 1,558 | $ 1,539 | |||||
Minimum | |||||||
Property, Plant and Equipment | |||||||
Useful life | 3 years | ||||||
Minimum | Production plants (primarily 15-year life) (a) | |||||||
Property, Plant and Equipment | |||||||
Useful life | [1] | 10 years | |||||
Minimum | Storage tanks | |||||||
Property, Plant and Equipment | |||||||
Useful life | 15 years | ||||||
Minimum | Transportation equipment and other | |||||||
Property, Plant and Equipment | |||||||
Useful life | 3 years | ||||||
Minimum | Cylinders (primarily 30-year life) | |||||||
Property, Plant and Equipment | |||||||
Useful life | 10 years | ||||||
Minimum | Buildings | |||||||
Property, Plant and Equipment | |||||||
Useful life | 25 years | ||||||
Minimum | Land Improvements [Member] | |||||||
Property, Plant and Equipment | |||||||
Useful life | [2] | 0 years | |||||
Maximum | |||||||
Property, Plant and Equipment | |||||||
Useful life | 40 years | ||||||
Maximum | Production plants (primarily 15-year life) (a) | |||||||
Property, Plant and Equipment | |||||||
Useful life | [1] | 20 years | |||||
Maximum | Storage tanks | |||||||
Property, Plant and Equipment | |||||||
Useful life | 20 years | ||||||
Maximum | Transportation equipment and other | |||||||
Property, Plant and Equipment | |||||||
Useful life | 15 years | ||||||
Maximum | Cylinders (primarily 30-year life) | |||||||
Property, Plant and Equipment | |||||||
Useful life | 30 years | ||||||
Maximum | Buildings | |||||||
Property, Plant and Equipment | |||||||
Useful life | 40 years | ||||||
Maximum | Land Improvements [Member] | |||||||
Property, Plant and Equipment | |||||||
Useful life | [2] | 20 years | |||||
|
Goodwill (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||
Goodwill [Line Items] | ||||||
Goodwill, Beginning Balance | $ 2,986 | $ 3,121 | ||||
Goodwill, Acquired During Period | 141 | 56 | $ 86 | |||
Purchase adjustments & other | 8 | (12) | [1] | |||
Foreign currency translation | (18) | (179) | ||||
Goodwill, Ending Balance | 3,117 | 2,986 | 3,121 | |||
North America Segment [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Beginning Balance | 2,111 | 2,139 | ||||
Goodwill, Acquired During Period | 61 | 21 | ||||
Purchase adjustments & other | 6 | (12) | [1] | |||
Foreign currency translation | (13) | (37) | ||||
Goodwill, Ending Balance | 2,165 | 2,111 | 2,139 | |||
South America Segment Member | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Beginning Balance | 98 | 147 | ||||
Goodwill, Acquired During Period | 9 | 9 | ||||
Foreign currency translation | 25 | (58) | ||||
Goodwill, Ending Balance | 132 | 98 | 147 | |||
Europe Segment Member | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Beginning Balance | 582 | 654 | ||||
Goodwill, Acquired During Period | 71 | |||||
Foreign currency translation | (24) | (72) | ||||
Goodwill, Ending Balance | 629 | 582 | 654 | |||
Asia Segment Member | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Beginning Balance | 59 | 38 | ||||
Goodwill, Acquired During Period | 23 | |||||
Foreign currency translation | (1) | (2) | ||||
Goodwill, Ending Balance | 58 | 59 | 38 | |||
Surface Technologies Segment [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, Beginning Balance | 136 | 143 | ||||
Goodwill, Acquired During Period | 3 | |||||
Purchase adjustments & other | 2 | |||||
Foreign currency translation | (5) | (10) | ||||
Goodwill, Ending Balance | $ 133 | $ 136 | $ 143 | |||
|
Other Intangible Assets (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||
Finite Lived Intangible Assets [Line Items] | ||||||
Beginning Period Cost | $ 783 | $ 777 | ||||
Additions (primarily acquisitions) | 82 | 26 | $ 66 | |||
Foreign currency translation | (19) | (23) | ||||
Other | [1] | (10) | 3 | |||
Ending Period Cost | 836 | 783 | 777 | |||
Beginning Accumulated Amortization | (215) | (174) | ||||
Amortization expense | (51) | (47) | (47) | |||
Foreign currency translation | 6 | 8 | ||||
Other | [1] | 7 | (2) | |||
Ending Accumulated Amortization | (253) | (215) | (174) | |||
Net balance finite lived intangibles | $ 583 | 568 | ||||
Additional Finite Lived Intangible Asset Information (Details) [Abstract] | ||||||
Remaining weighted-average amortization period for intangible asset | 17 years | |||||
2017 | $ 45 | |||||
2018 | 42 | |||||
2019 | 40 | |||||
2020 | 38 | |||||
2021 | 36 | |||||
Thereafter | 382 | |||||
Customer & License/Use Agreements | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Beginning Period Cost | 698 | 693 | ||||
Additions (primarily acquisitions) | 72 | 23 | ||||
Foreign currency translation | (16) | (21) | ||||
Other | [1] | (3) | 3 | |||
Ending Period Cost | 751 | 698 | 693 | |||
Beginning Accumulated Amortization | (179) | (147) | ||||
Amortization expense | (41) | (37) | ||||
Foreign currency translation | 6 | 7 | ||||
Other | [1] | (2) | ||||
Ending Accumulated Amortization | (214) | (179) | (147) | |||
Net balance finite lived intangibles | 537 | 519 | ||||
Non-compete Agreements | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Beginning Period Cost | 38 | 37 | ||||
Additions (primarily acquisitions) | 4 | 2 | ||||
Foreign currency translation | (1) | (1) | ||||
Other | [1] | (7) | ||||
Ending Period Cost | 34 | 38 | 37 | |||
Beginning Accumulated Amortization | (23) | (18) | ||||
Amortization expense | (6) | (6) | ||||
Foreign currency translation | 1 | |||||
Other | [1] | 7 | ||||
Ending Accumulated Amortization | (22) | (23) | (18) | |||
Net balance finite lived intangibles | 12 | 15 | ||||
Patents & Other | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Beginning Period Cost | 47 | 47 | ||||
Additions (primarily acquisitions) | 6 | 1 | ||||
Foreign currency translation | (2) | (1) | ||||
Ending Period Cost | 51 | 47 | 47 | |||
Beginning Accumulated Amortization | (13) | (9) | ||||
Amortization expense | (4) | (4) | ||||
Ending Accumulated Amortization | (17) | (13) | $ (9) | |||
Net balance finite lived intangibles | $ 34 | $ 34 | ||||
|
Debt (ST and LT Debt) (Details) $ / shares in Units, € in Millions |
12 Months Ended | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
$ / shares
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2016
EUR (€)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2016 |
Dec. 31, 2016
Rate
|
Feb. 12, 2016
Rate
|
Feb. 11, 2016
USD ($)
Rate
|
||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Current portion of long-term debt | $ (6,000,000) | $ (164,000,000) | ||||||||||||||||||||||
Fair value increase | 6,000,000 | 4,000,000 | ||||||||||||||||||||||
Total short-term debt | 250,000,000 | 434,000,000 | ||||||||||||||||||||||
Carrying value of long-term debt including current portion | 8,981,000,000 | 9,081,000,000 | ||||||||||||||||||||||
Long-term debt | 8,975,000,000 | 8,917,000,000 | ||||||||||||||||||||||
Obligations under capital lease | 7,000,000 | 7,000,000 | ||||||||||||||||||||||
Other bank borrowings (Primarily International) | 163,000,000 | 101,000,000 | ||||||||||||||||||||||
Repayments of Long-term Debt | $ 770,000,000 | 1,000,000,000 | $ 764,000,000 | |||||||||||||||||||||
Commercial Paper | 87,000,000 | 333,000,000 | ||||||||||||||||||||||
Loss on Bond Redemption | [1] | 16,000,000 | $ 36,000,000 | |||||||||||||||||||||
Debt And Capital Lease Obligations | 9,231,000,000 | 9,515,000,000 | ||||||||||||||||||||||
US Long-term 0.75% Notes due 2016 | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Repayments of Long-term Debt | 400,000,000 | |||||||||||||||||||||||
Senior Notes - Carrying Amount | [2],[3] | $ 400,000,000 | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.75% | 0.75% | ||||||||||||||||||||||
US Long-term 5.20% Notes due 2017 | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Repayments of Long-term Debt | 325,000,000 | |||||||||||||||||||||||
Loss on Bond Redemption | $ 16,000,000 | |||||||||||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $ / shares | $ 0.04 | |||||||||||||||||||||||
Bond Redemption, Loss, Net of Tax | $ 10,000,000 | |||||||||||||||||||||||
Senior Notes - Carrying Amount | [2],[3] | $ 325,000,000 | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.20% | 5.20% | ||||||||||||||||||||||
US Long-term1.05% Notes due 2017 | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2],[4] | $ 399,000,000 | 400,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.05% | 1.05% | ||||||||||||||||||||||
US Long-term 1.20% Notes Due 2018 [Member] | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 499,000,000 | 499,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.20% | 1.20% | ||||||||||||||||||||||
US Long-term 1.25% Notes due 2018 [Member] | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2],[5] | $ 480,000,000 | 478,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | 1.25% | ||||||||||||||||||||||
US Long-term 4.50% Notes due 2019 | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 597,000,000 | 598,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | ||||||||||||||||||||||
US Long-term 1.90% Notes Due 2019 [Member] | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 499,000,000 | 499,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.90% | 1.90% | ||||||||||||||||||||||
Euro Denominated Long-term 1.50% Notes Due 2020 [Member] | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 646,000,000 | 627,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | ||||||||||||||||||||||
Debt Instrument, Face Value | € | € 600 | |||||||||||||||||||||||
US Long-term 2.25% notes due 2020 [Member] | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 298,000,000 | 299,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | ||||||||||||||||||||||
US Long-term 4.05% Notes due 2021 | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 497,000,000 | 497,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.05% | 4.05% | ||||||||||||||||||||||
US Long-term 3.00% Notes due 2021 | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 496,000,000 | 496,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | 3.00% | ||||||||||||||||||||||
US Long-term 2.45% Notes due 2022 | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 596,000,000 | 597,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.45% | 2.45% | ||||||||||||||||||||||
US Long-term 2.20% Notes due 2022 | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 497,000,000 | 498,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.20% | 2.20% | ||||||||||||||||||||||
US Long-term 2.70% Notes due 2023 | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 497,000,000 | 497,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.70% | 2.70% | ||||||||||||||||||||||
Euro Denominated 1.20% Due 2024 [Member] | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2],[6] | 575,000,000 | ||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.20% | 1.20% | ||||||||||||||||||||||
Debt Instrument, Face Value | € | 550 | |||||||||||||||||||||||
US Long-term 2.65% Notes due 2025 [Member] | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 396,000,000 | 397,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.65% | 2.65% | ||||||||||||||||||||||
Euro Denominated Long-term 1.625% Notes Due 2025 [Member] [Member] | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 535,000,000 | 519,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.625% | 1.625% | ||||||||||||||||||||||
Debt Instrument, Face Value | € | € 500 | |||||||||||||||||||||||
US Long-term 3.20% notes due 2026 [Member] | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | $ 446,000,000 | [2] | 725,000,000 | [2],[6] | $ 275,000,000 | |||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | 3.20% | 3.20% | |||||||||||||||||||||
US Long-term 3.55% Notes due 2042 | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 661,000,000 | 662,000,000 | |||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.55% | 3.55% | ||||||||||||||||||||||
US Long-term other | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Other Debt - Carrying Amount | $ 3,000,000 | 12,000,000 | ||||||||||||||||||||||
Other International Bank Borrowings | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Other Debt - Carrying Amount | 57,000,000 | 49,000,000 | ||||||||||||||||||||||
US Long-term floating plus 0.33% Notes Due 2017 [Member] | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Senior Notes - Carrying Amount | [2] | $ 150,000,000 | 150,000,000 | |||||||||||||||||||||
$2.5 Billion Senior Unsecured Credit Facilty, expires in 2019 | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500,000,000 | |||||||||||||||||||||||
Net Investment Hedging [Member] | ||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||
Derivatives used in Net Investment Hedge, Increase (Decrease), Gross of Tax | $ 78,000,000 | |||||||||||||||||||||||
|
Debt (Credit Facilities) (Details) - $2.5 Billion Senior Unsecured Credit Facilty, expires in 2019 |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Line Of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500,000,000 |
Available for Borrowing | $ 2,500,000,000 |
Expires | Dec. 18, 2019 |
Debt Covenant Limit | 0.7 |
Debt Covenant Actual Compliance | 0.52 |
Debt (Other Debt Information) (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Long-term Debt, Other Disclosures [Abstract] | |||||
Short Term Debt Weighted Average Interest Rate | 1.20% | 3.40% | |||
Pledged Assets | $ 5 | ||||
Secured Long Term Debt | 5 | ||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||
2017 | [1] | 164 | |||
2018 | 985 | ||||
2019 | [1] | 1,503 | |||
2020 | 938 | ||||
2021 | 1,006 | ||||
Thereafter | 4,485 | ||||
Carrying value of long-term debt including current portion | 9,081 | $ 8,981 | |||
Debt Instruments That Retain Long Term Classification Due to Ability And Intent To Refinance Member | |||||
Debt Instrument Line Items | |||||
Senior Notes | $ 400 | ||||
|
Financial Instruments (Details) € in Millions, $ in Millions |
12 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2011
USD ($)
|
Dec. 31, 2009
USD ($)
|
Dec. 31, 2016
EUR (€)
|
Dec. 31, 2016
USD ($)
|
Feb. 12, 2016
Rate
|
Jun. 30, 2012
USD ($)
|
Aug. 31, 2011
USD ($)
|
Dec. 31, 2008
USD ($)
|
||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Notional Amount of Derivatives | $ 3,061 | $ 2,617 | |||||||||||||||||||||||||||
Derivative Liabilities | 11 | 18 | |||||||||||||||||||||||||||
Derivatives Assets | 22 | 18 | |||||||||||||||||||||||||||
Gain (Loss) Recognized in AOCI, Before Tax | $ 1 | 1 | $ 4 | ||||||||||||||||||||||||||
Gain (Loss) Reclassified from AOCI to Earnings, Before Tax | (1) | (1) | |||||||||||||||||||||||||||
Derivative Instruments, Tax Impact of Reclassification From AOCI | [1] | 1 | |||||||||||||||||||||||||||
Net Change in AOCI | 3 | ||||||||||||||||||||||||||||
Net Investment Hedging [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Derivatives used in Net Investment Hedge, Increase (Decrease), Gross of Tax | 78 | ||||||||||||||||||||||||||||
Derivatives used in Net Investment Hedge Increase (Decrease) since inception, Gross of Tax | 339 | ||||||||||||||||||||||||||||
Aug 2011 Treasury Lock [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Debt Instrument Face Amount | [2] | $ 500 | |||||||||||||||||||||||||||
Debt Instrument Interest Rate Stated Percentage | 3.00% | ||||||||||||||||||||||||||||
Jul 2012 Treasury Lock [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Debt Instrument Face Amount | [2] | $ 500 | |||||||||||||||||||||||||||
Debt Instrument Interest Rate Stated Percentage | 2.20% | ||||||||||||||||||||||||||||
December 2008 Treasury Lock [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Notional Amount of Derivatives | $ 500 | ||||||||||||||||||||||||||||
Debt Instrument Face Amount | [2] | $ 600 | |||||||||||||||||||||||||||
Debt Instrument Interest Rate Stated Percentage | 4.50% | ||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Amount of Pre-Tax Gain (Loss) Recognized in Earnings | [3] | 25 | (170) | (71) | |||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contract | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Notional Amount of Derivatives | 2,548 | 2,104 | |||||||||||||||||||||||||||
Derivative Liabilities | [4] | 11 | 18 | ||||||||||||||||||||||||||
Derivatives Assets | [4] | 15 | 11 | ||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Other Balance Sheet Items [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Amount of Pre-Tax Gain (Loss) Recognized in Earnings | [3] | 4 | (8) | (2) | |||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Debt-Related [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Amount of Pre-Tax Gain (Loss) Recognized in Earnings | [3] | 21 | (162) | (69) | |||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments - Cash Flow | Foreign Exchange Contract | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Notional Amount of Derivatives | 38 | 38 | |||||||||||||||||||||||||||
Derivatives Assets | [4] | 1 | 3 | ||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments - Cash Flow | Treasury Rate Locks Member | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Deferred Gain (Loss) on Hedge, Gross | [5] | (1) | (2) | ||||||||||||||||||||||||||
Original Deferred Gain on Settlement of Derivative Instruments - Gross | $ 16 | ||||||||||||||||||||||||||||
Payments for Hedge, Financing Activities | $ (2) | $ (11) | |||||||||||||||||||||||||||
Derivative Instruments, Tax Impact of Net Change in AOCI | [5] | 1 | |||||||||||||||||||||||||||
Derivative Instruments Gain (Loss) Recognized In Other Comprehensive Income Effective Portion Net Of Tax | [5] | (1) | (1) | ||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments - Cash Flow | Aug 2011 Treasury Lock [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Deferred Gain (Loss) on Hedge, Gross | [5] | (6) | (5) | ||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments - Cash Flow | Jul 2012 Treasury Lock [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Deferred Gain (Loss) on Hedge, Gross | [5] | (1) | (1) | ||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments - Cash Flow | December 2008 Treasury Lock [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Deferred Gain (Loss) on Hedge, Gross | [5] | 6 | 4 | ||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments - Fair Value | Interest Rate Swap [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Notional Amount of Derivatives | 475 | 475 | |||||||||||||||||||||||||||
Derivatives Assets | [6] | 6 | 4 | ||||||||||||||||||||||||||
Debt Instrument Face Amount | $ 475 | ||||||||||||||||||||||||||||
Debt Instrument Interest Rate Stated Percentage | 1.25% | 1.25% | |||||||||||||||||||||||||||
Designated as Hedging Instrument [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ 1 | ||||||||||||||||||||||||||||
Notional Amount of Derivatives | 513 | 513 | |||||||||||||||||||||||||||
Derivatives Assets | 7 | 7 | |||||||||||||||||||||||||||
Gain (Loss) Recognized in AOCI, Before Tax | [1] | (3) | 1 | (5) | |||||||||||||||||||||||||
Gain (Loss) Reclassified from AOCI to Earnings, Before Tax | [1] | (1) | (1) | ||||||||||||||||||||||||||
Derivative Instruments, Tax Impact of Net Change in AOCI | [1] | 2 | |||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) Recognized in AOCI Net of Tax | [1] | (3) | 1 | (3) | |||||||||||||||||||||||||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI on Derivatives, Net of Tax | [1] | (1) | |||||||||||||||||||||||||||
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Gain (Loss) Recognized in AOCI, Before Tax | [1] | (4) | (6) | ||||||||||||||||||||||||||
Designated as Hedging Instrument [Member] | Balance Sheet Items [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Gain (Loss) Recognized in AOCI, Before Tax | [1] | 1 | 1 | ||||||||||||||||||||||||||
Gain (Loss) Reclassified from AOCI to Earnings, Before Tax | [1] | (1) | |||||||||||||||||||||||||||
Designated as Hedging Instrument [Member] | Forecasted Purchases [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Gain (Loss) Recognized in AOCI, Before Tax | [1] | $ 1 | |||||||||||||||||||||||||||
Designated as Hedging Instrument [Member] | Total Treasury Locks [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Gain (Loss) Reclassified from AOCI to Earnings, Before Tax | [1] | $ (1) | |||||||||||||||||||||||||||
Euro Denominated Long-term 1.50% Notes Due 2020 [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Senior Notes | [7] | $ 646 | $ 627 | ||||||||||||||||||||||||||
Debt Instrument Face Amount | € | € 600 | ||||||||||||||||||||||||||||
Debt Instrument Interest Rate Stated Percentage | 1.50% | 1.50% | 1.50% | ||||||||||||||||||||||||||
Euro Denominated Long-term 1.625% Notes Due 2025 [Member] [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Senior Notes | [7] | $ 535 | $ 519 | ||||||||||||||||||||||||||
Debt Instrument Face Amount | € | € 500 | ||||||||||||||||||||||||||||
Debt Instrument Interest Rate Stated Percentage | 1.625% | 1.625% | 1.625% | ||||||||||||||||||||||||||
Euro Denominated 1.20% Due 2024 [Member] | |||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||
Senior Notes | [7],[8] | $ 575 | |||||||||||||||||||||||||||
Debt Instrument Face Amount | € | € 550 | ||||||||||||||||||||||||||||
Debt Instrument Interest Rate Stated Percentage | 1.20% | 1.20% | 1.20% | ||||||||||||||||||||||||||
|
Fair Value Disclosures (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Assets and Liabilities Measured on a Recurring Basis | ||
Derivative assets | $ 18 | $ 22 |
Derivative liabilities | 18 | 11 |
Fair Value Additional Information [Abstract] | ||
Carrying value of long-term debt including current portion | 9,081 | 8,981 |
Level 2 Member | ||
Fair Value Additional Information [Abstract] | ||
Fair value of long-term debt | 9,218 | $ 9,069 |
Level 2 Member | Fair Value, Measurements, Recurring [Member] | ||
Assets and Liabilities Measured on a Recurring Basis | ||
Derivative assets | 18 | |
Derivative liabilities | $ 18 |
Equity and Redeemable Noncontrolling Interests (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||
Class of Stock [Line Items] | ||||||||||
Common Stock Shares Authorized | 800,000,000 | 800,000,000 | ||||||||
Common Stock Shares Issued | 383,230,625 | 383,230,625 | ||||||||
Common Stock Shares Outstanding | 284,900,776 | 284,879,079 | ||||||||
Preferred Stock Authorized | 25,000,000 | 25,000,000 | ||||||||
Preferred Stock Par Value | $ 0.01 | $ 0.01 | ||||||||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 | ||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||
Purchase of redeemable noncontrolling interest - percent acquired | 34.00% | |||||||||
Redeemable Noncontrolling Interests, Beginning Balance | $ 113 | $ 176 | $ 307 | |||||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 3 | 10 | 12 | |||||||
Dividends Paid to Redeemable Noncontrolling Interests | (2) | (7) | (9) | |||||||
Redemption value adjustment/accretion | (6) | (40) | [1] | 2 | ||||||
Foreign currency translation and other | 7 | (17) | (24) | |||||||
Payments for Repurchase of Redeemable Noncontrolling Interest | (104) | [2] | (9) | (112) | [2] | |||||
Redeemable Noncontrolling Interests, Ending Balance | 11 | 113 | 176 | |||||||
Additions (reductions) to noncontrolling interests | 70 | 29 | 8 | |||||||
Noncontrolling Interest [Member] | ||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||
Additions (reductions) to noncontrolling interests | 20 | $ 29 | $ 8 | |||||||
Additional Paid-in Capital [Member] | ||||||||||
Redeemable Noncontrolling Interest [Line Items] | ||||||||||
Additions (reductions) to noncontrolling interests | $ 50 | |||||||||
|
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Praxair, Inc. Closing Stock Price | $ 117.19 | ||
Additional Company Information [Abstract] | |||
Share-based compensation expense | $ 39 | $ 30 | $ 51 |
Share-based compensation expense related income tax benefit | 32 | 8 | 14 |
Excess Tax Benefits | $ 20 | $ 13 | $ 19 |
Equity Plan 2009 Praxair, Inc. Long-term Incentive Plan For Employees Member | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares authorized for grant | 8,000,000 | ||
Authorized for issuance as RS, RSU or PSU | 2,600,000 | ||
Shares remaining available for equity grants | 3,993,818 | ||
Equity Plan 2005 Equity Compensation Plan For Non-employee Directors Of Praxair, Inc. Member | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of shares authorized for grant | 500,000 | ||
Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 17 | ||
Performance Period (years) | 1 year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Outstanding at beginning of period - average exercise price | $ 96.58 | ||
Granted - average exercise price | 102.23 | ||
Exercised - average exercise price | 70.17 | ||
Cancelled or Expired - average exercise price | 111.25 | ||
Outstanding at end of period - average exercise price | 101.58 | $ 96.58 | |
Exercisable at December 31, 2016 - average exercise price | $ 96.90 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Stock Options Outstanding at Beginning of Period | 11,273,000 | ||
Stock Options Granted | 2,473,000 | ||
Stock Options Exercised | (1,821,000) | ||
Stock Options Cancelled or Expired | (217,000) | ||
Stock Options Outstanding at End of Period | 11,708,000 | 11,273,000 | |
Stock Options Exercisable at December 31, 2016 | 8,018,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Dividend yield | 2.90% | 2.20% | 2.00% |
Volatility | 14.40% | 13.50% | 15.20% |
Risk-free interest rate | 1.41% | 1.51% | 1.57% |
Expected term years | 6 years | 5 years | 5 years |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Weighted-average fair values of options granted | $ 8.91 | $ 11.99 | $ 14.62 |
Total intrinsic value of stock options exercised | $ 82 | $ 65 | $ 93 |
Cash received from option exercises | 128 | 72 | 88 |
Total cash tax benefit | $ 32 | $ 33 | $ 48 |
Average Remaining Life (years) [Abstract] | |||
Outstanding at December 31, 2016 - average remaining life | 5 years 7 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 2 months | ||
Aggregate Intrinsic Value [Abstract] | |||
Outstanding at December 31, 2016 - intrinsic value | $ 212 | ||
Exercisable at December 31, 2016 - intrinsic value | $ 177 |
Share-Based Compensation (PSU and RSU) (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Additional Company Information [Abstract] | |||
Performance based awards vesting, as a percentage of the target, low end of range | 0.00% | ||
Performance based awards vesting, as a percentage of the target, high end of range | 200.00% | ||
PX Performance Based Awards Member | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Awards to be settled in cash | 11,000 | ||
Unrecognized compensation expense | $ 19 | ||
Performance Period (years) | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested at beginning of period | 802,000 | ||
Granted | 240,505 | ||
Vested | (109,000) | ||
Cancelled | (220,000) | ||
Non-vested at end of period | 714,000 | 802,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Non-vested at beginning of period, grant date fair value | $ 114.41 | ||
Granted - average grant date fair value | 105.34 | ||
Vested - average grant date fair value | 103.79 | ||
Cancelled - average grant date fair value | 105.63 | ||
Non-vested at end of period, grant date fair value | $ 115.72 | $ 114.41 | |
Additional Company Information [Abstract] | |||
Remaining Service Period | 2 years 3 months | ||
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Awards to be settled in cash | 11,000 | ||
Unrecognized compensation expense | $ 11 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested at beginning of period | 286,000 | ||
Granted | 97,924 | ||
Vested | (93,000) | ||
Cancelled | (17,000) | ||
Non-vested at end of period | 274,000 | 286,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Non-vested at beginning of period, grant date fair value | $ 112.48 | ||
Granted - average grant date fair value | 98.18 | $ 120.24 | $ 122.55 |
Vested - average grant date fair value | 105.92 | ||
Cancelled - average grant date fair value | 113.91 | ||
Non-vested at end of period, grant date fair value | $ 109.49 | 112.48 | |
Additional Company Information [Abstract] | |||
Remaining Service Period | 2 years 3 months | ||
Restricted Stock [Member] | Minimum | |||
Additional Company Information [Abstract] | |||
Remaining Service Period | 2 years | ||
Restricted Stock [Member] | Maximum | |||
Additional Company Information [Abstract] | |||
Remaining Service Period | 10 years | ||
Performance Shares TSR [Member] [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted - average grant date fair value | $ 124.18 | ||
Performance Shares ROC [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted - average grant date fair value | $ 93.46 | $ 120.04 | $ 121.16 |
Retirement Programs (Additional Information) (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016
USD ($)
shares
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Multiemployer Plans [Abstract] | |||
Number of Multiemployer Plans Participated In | 7 | ||
Multiemployer Plan Contributions | $ 2 | $ 2 | $ 2 |
Multiemployer Plans, General Nature | According to the most current data available, four of the MEPs that the Company participates in are in a Red zone status; one is in a Yellow zone status; and two are in a Green zone status. As of December 31, 2016, the five Red and Yellow Zone plans have pending or have implemented financial improvement or rehabilitation plans. | ||
Number of Multiemployer Plans With Pending or Implemented Rehabilitation Plans | 5 | ||
Estimated number of union employees in multiemployer plans | 200 | ||
Praxair U.S. Defined Contribution Savings Plans | |||
Retirement Programs - Defined Contribution Plans [Line Items] | |||
Defined Contribution Plan Contributions | $ 28 | 28 | 26 |
Maximum amount employees may contribute to the respective plan subject to IRS limitations | 40.00% | ||
Shares of Common Stock in ESOPs | shares | 2,703,391 | ||
Praxair International Defined Contribution Savings Plans | |||
Retirement Programs - Defined Contribution Plans [Line Items] | |||
Defined Contribution Plan Contributions | $ 18 | $ 17 | $ 17 |
Retirement Programs (Net Pension and OPEB costs) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
[1] | Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
[1] | Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Operating Income (Loss) | $ 599 | $ 497 | [1] | $ 588 | $ 554 | $ 624 | $ 594 | [1] | $ 480 | $ 623 | $ 2,238 | $ 2,321 | $ 2,608 | |||||||
U.S. Pension Plans [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Service cost | 31 | 36 | ||||||||||||||||||
Interest cost | 70 | 80 | ||||||||||||||||||
Pension settlements | [2] | 4 | 7 | 7 | ||||||||||||||||
Pension Plans Defined Benefit Member | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Service cost | 45 | 54 | 49 | |||||||||||||||||
Interest cost | 100 | 112 | 121 | |||||||||||||||||
Expected return on plan assets | (157) | (154) | (155) | |||||||||||||||||
Net amortization and deferral | 59 | 79 | 60 | |||||||||||||||||
Net periodic benefit cost before pension settlement charge | 47 | 91 | 75 | |||||||||||||||||
Pension settlements | [2] | 4 | 7 | 7 | ||||||||||||||||
Net periodic benefit cost | 51 | 98 | 82 | |||||||||||||||||
Other Postretirement Benefit Plans Defined Benefit | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Service cost | 2 | 3 | 4 | |||||||||||||||||
Interest cost | 6 | 7 | 11 | |||||||||||||||||
Net amortization and deferral | (3) | (2) | (8) | |||||||||||||||||
Net periodic benefit cost before pension settlement charge | 5 | 8 | 7 | |||||||||||||||||
Net periodic benefit cost | 5 | $ 8 | $ 7 | |||||||||||||||||
Pension Settlement Charge [Member] | ||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||||||||||
Operating Income (Loss) | $ (4) | $ (7) | $ (4) | |||||||||||||||||
|
Retirement Programs (Funded Status) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Other Long-Term Assets | $ 13 | $ 41 | |
Other Current Liabilities | (24) | (29) | |
Other Long-Term Liabilities | (863) | (760) | |
Deferred Tax Benefit | (352) | (325) | |
U.S. Pension Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit Obligation January 1 | 1,992 | 2,050 | |
Service cost | 31 | 36 | |
Interest cost | 70 | 80 | |
Actuarial Loss (Gain) | 104 | (68) | |
Benefits Paid | (131) | (106) | |
Benefit Obligation December 31 | 2,066 | 1,992 | $ 2,050 |
Accumulated Benefit Obligation | 1,970 | 1,900 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan Fair Value of Plan Assets Balance, Beginning of Year | 1,509 | 1,607 | |
Gains or (losses) for the period | 117 | (11) | |
Benefits Paid From Plan Assets | (119) | (87) | |
Defined Benefit Plan Fair Value of Plan Assets Balance, End of Year | 1,507 | 1,509 | 1,607 |
Other Current Liabilities | (7) | (12) | |
Other Long-Term Liabilities | (552) | (471) | |
Fund status - net amount recognized, December 31 | (559) | (483) | |
Net Actuarial Loss (Gain) | 832 | 782 | |
Deferred Tax Benefit | (318) | (299) | |
Amount recognized in accumulated other comprehensive income (loss) | 514 | 483 | |
International Pension Plans Defined Benefit | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit Obligation January 1 | 580 | 719 | |
Service cost | 14 | 18 | |
Interest cost | 30 | 32 | |
Plan amendment | (2) | 2 | |
Actuarial Loss (Gain) | 76 | (41) | |
Benefits Paid | (33) | (32) | |
Foreign Currency Translation | 1 | (118) | |
Benefit Obligation December 31 | 666 | 580 | 719 |
Accumulated Benefit Obligation | 639 | 551 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan Fair Value of Plan Assets Balance, Beginning of Year | 475 | 561 | |
Gains or (losses) for the period | 47 | 18 | |
Company Contributions | 11 | 15 | |
Benefits Paid From Plan Assets | (26) | (28) | |
Foreign Currency Translation | (91) | ||
Defined Benefit Plan Fair Value of Plan Assets Balance, End of Year | 507 | 475 | 561 |
Other Long-Term Assets | 13 | 41 | |
Other Current Liabilities | (5) | (4) | |
Other Long-Term Liabilities | (167) | (142) | |
Fund status - net amount recognized, December 31 | (159) | (105) | |
Net Actuarial Loss (Gain) | 189 | 135 | |
Prior Service Cost (Credit) | 12 | 11 | |
Deferred Tax Benefit | (46) | (37) | |
Amount recognized in accumulated other comprehensive income (loss) | 155 | 109 | |
Other Postretirement Benefit Plans Defined Benefit | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit Obligation January 1 | 160 | 180 | |
Service cost | 2 | 3 | 4 |
Interest cost | 6 | 7 | 11 |
Participant Contribution | 10 | 10 | |
Plan amendment | (7) | ||
Actuarial Loss (Gain) | 4 | (9) | |
Benefits Paid | (20) | (24) | |
Foreign Currency Translation | 1 | (7) | |
Benefit Obligation December 31 | 156 | 160 | $ 180 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Other Current Liabilities | (12) | (13) | |
Other Long-Term Liabilities | (144) | (147) | |
Fund status - net amount recognized, December 31 | (156) | (160) | |
Net Actuarial Loss (Gain) | (20) | (25) | |
Prior Service Cost (Credit) | (8) | (1) | |
Deferred Tax Benefit | 12 | 11 | |
Amount recognized in accumulated other comprehensive income (loss) | $ (16) | $ (15) |
Retirement Programs (Changes In Plan Assets and Benefit Obligations Recognized in OCI) (Details) - USD ($) $ in Millions |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||
Pension Plans Defined Benefit Member | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Current Year Net Actuarial Loss (Gain) | [1] | $ 172 | $ 38 | |||||
Amortization of Net Actuarial Gains (Losses) | (60) | (78) | ||||||
Plan Amendment | (2) | |||||||
Amortization of Prior Service Credits (Costs) | 1 | (1) | ||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | [2] | 4 | 7 | $ 7 | ||||
Foreign Currency Translation and Other | (2) | (24) | ||||||
Total Recognized in Other Comprehensive Income | 105 | (72) | ||||||
Other Postretirement Benefit Plans Defined Benefit | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Current Year Net Actuarial Loss (Gain) | [1] | 4 | (9) | |||||
Amortization of Net Actuarial Gains (Losses) | 3 | 2 | ||||||
Plan Amendment | (7) | |||||||
Foreign Currency Translation and Other | (2) | 6 | ||||||
Total Recognized in Other Comprehensive Income | $ (2) | $ (1) | ||||||
|
Retirement Programs (AOCI Expected to be Recognized as Components of Net Periodic Benefit Costs in 2017) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Pension Plans Defined Benefit Member | |
Defined Benefit Plan Disclosure [Line Items] | |
Net Actuarial Loss (Gain) | $ 65 |
Prior Service Cost (Credit) | 2 |
Total AOCI Expected to be Recognized as Components of Net Periodic Benefit Cost During Upcoming Year | 67 |
Other Postretirement Benefit Plans Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
Net Actuarial Loss (Gain) | 2 |
Prior Service Cost (Credit) | 1 |
Total AOCI Expected to be Recognized as Components of Net Periodic Benefit Cost During Upcoming Year | $ 3 |
Retirement Programs (Plans Where the ABO Exceeds Plan Assets Fair Value) (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
U.S. Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation | $ 2,066 | $ 1,992 |
Accumulated Benefit Obligation | 1,970 | 1,900 |
Fair Value of Plan Assets | 1,507 | 1,509 |
International Pension Plans Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected Benefit Obligation | 372 | 336 |
Accumulated Benefit Obligation | 365 | 324 |
Fair Value of Plan Assets | $ 199 | $ 188 |
Retirement Programs (Assumptions Used in Determining Benefit Obligations and Net Benefit Costs) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
[1] | Jun. 30, 2016 |
Mar. 31, 2016 |
[1] | Dec. 31, 2015 |
Sep. 30, 2015 |
[1] | Jun. 30, 2015 |
[1] | Mar. 31, 2015 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||||||||||||||||||||||
One Percent Decrease in Healthcare Cost Trend Rates | $ (3) | ||||||||||||||||||||||
One Percent Increase in Healthcare Cost Trend Rates | 4 | ||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Operating Income (Loss) | $ 599 | $ 497 | $ 588 | $ 554 | $ 624 | $ 594 | $ 480 | $ 623 | $ 2,238 | $ 2,321 | $ 2,608 | ||||||||||||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||||||||||||||||||||||
Year in Which the Rate Reaches the Ultimate Trend Rate | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||||
Healthcare Cost Trend Assumed | 7.00% | 7.00% | |||||||||||||||||||||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% | |||||||||||||||||||||
U.S. Pension Plans [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Discount Rate - Utilized for Obligation | 4.05% | 4.32% | 4.05% | 4.32% | |||||||||||||||||||
Rate of Increase in Compensation Levels - Utilized for Obligation | 3.25% | 3.25% | 3.25% | 3.25% | |||||||||||||||||||
Discount Rate - Utilized for Expense | [2] | 4.32% | 3.95% | ||||||||||||||||||||
Rate of Increase in Compensation Levels - Utilized for Expense | 3.25% | 3.25% | |||||||||||||||||||||
Expected Long-Term Rate of Return on Plan Assets - Utilized for Expense | [3] | 8.00% | 8.00% | ||||||||||||||||||||
International Pension Plans Defined Benefit | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Discount Rate - Utilized for Obligation | 5.09% | 5.32% | 5.09% | 5.32% | |||||||||||||||||||
Rate of Increase in Compensation Levels - Utilized for Obligation | 3.73% | 3.57% | 3.73% | 3.57% | |||||||||||||||||||
Discount Rate - Utilized for Expense | [2] | 5.32% | 5.36% | ||||||||||||||||||||
Rate of Increase in Compensation Levels - Utilized for Expense | 3.57% | 3.72% | |||||||||||||||||||||
Expected Long-Term Rate of Return on Plan Assets - Utilized for Expense | [3] | 7.92% | 7.71% | ||||||||||||||||||||
Other Postretirement Benefit Plans Defined Benefit | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Discount Rate - Utilized for Obligation | 4.21% | 4.24% | 4.21% | 4.24% | |||||||||||||||||||
Discount Rate - Utilized for Expense | [2] | 4.24% | 4.48% | ||||||||||||||||||||
Equity Securities [Member] | U.S. Pension Plans [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Defined Benefit Plan, Expected Rate of Return on Plan Assets | 9.50% | ||||||||||||||||||||||
Equity Securities [Member] | International Pension Plans Defined Benefit | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Defined Benefit Plan, Expected Rate of Return on Plan Assets | 10.00% | ||||||||||||||||||||||
Fixed Income Investments [Member] | U.S. Pension Plans [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Defined Benefit Plan, Expected Rate of Return on Plan Assets | 5.50% | ||||||||||||||||||||||
Fixed Income Investments [Member] | International Pension Plans Defined Benefit | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Defined Benefit Plan, Expected Rate of Return on Plan Assets | 7.50% | ||||||||||||||||||||||
Other Investment [Member] | U.S. Pension Plans [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Defined Benefit Plan, Expected Rate of Return on Plan Assets | 7.00% | ||||||||||||||||||||||
Other Investment [Member] | International Pension Plans Defined Benefit | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Defined Benefit Plan, Expected Rate of Return on Plan Assets | 7.50% | ||||||||||||||||||||||
Scenario, Forecast [Member] | U.S. Pension Plans [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Expected Long-Term Rate of Return on Plan Assets - Utilized for Expense | 8.00% | ||||||||||||||||||||||
Return Experienced Over Last 10 years [Member] | U.S. Pension Plans [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Defined Benefit Plan, Actual Rate of Return on Plan Assets | 4.90% | ||||||||||||||||||||||
Return Experienced Over Last 10 years [Member] | International Pension Plans Defined Benefit | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Defined Benefit Plan, Actual Rate of Return on Plan Assets | 6.90% | ||||||||||||||||||||||
Return Experienced Over Last 20 years [Member] | U.S. Pension Plans [Member] | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Defined Benefit Plan, Actual Rate of Return on Plan Assets | 6.70% | ||||||||||||||||||||||
Return Experienced Over Last 20 years [Member] | International Pension Plans Defined Benefit | |||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||
Defined Benefit Plan, Actual Rate of Return on Plan Assets | 8.60% | ||||||||||||||||||||||
|
Retirement Programs (Pension Plan Asset Allocations) (Details) |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
U.S. Pension Plans [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Asset Allocation Range - Minimum | 50.00% | |
Target Asset Allocation Range - Maximum | 70.00% | |
Weighted Average Asset Allocation | 59.00% | 62.00% |
U.S. Pension Plans [Member] | Fixed Income Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Asset Allocation Range - Minimum | 20.00% | |
Target Asset Allocation Range - Maximum | 40.00% | |
Weighted Average Asset Allocation | 32.00% | 30.00% |
U.S. Pension Plans [Member] | Other Investment [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Asset Allocation Range - Minimum | 2.00% | |
Target Asset Allocation Range - Maximum | 10.00% | |
Weighted Average Asset Allocation | 9.00% | 8.00% |
International Pension Plans Defined Benefit | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Asset Allocation Range - Minimum | 30.00% | |
Target Asset Allocation Range - Maximum | 50.00% | |
Weighted Average Asset Allocation | 35.00% | 50.00% |
International Pension Plans Defined Benefit | Fixed Income Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Asset Allocation Range - Minimum | 40.00% | |
Target Asset Allocation Range - Maximum | 60.00% | |
Weighted Average Asset Allocation | 56.00% | 41.00% |
International Pension Plans Defined Benefit | Other Investment [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Asset Allocation Range - Minimum | 0.00% | |
Target Asset Allocation Range - Maximum | 10.00% | |
Weighted Average Asset Allocation | 9.00% | 9.00% |
Retirement Programs (Pension Plan Asset Fair Value By Category And Level 3 Rollforward) (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||||
Cash And Cash Equivalents | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | $ 3 | $ 1 | |||||||
U S Equity Securities | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 344 | 302 | |||||||
International Equity Securities | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 37 | 62 | |||||||
Equity Mutual Funds | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 2 | 236 | |||||||
U.S. Government Bonds | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 51 | 50 | |||||||
International Government Bonds | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 159 | 89 | |||||||
Fixed Income Mutual Funds | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 104 | 91 | |||||||
Corporate Bonds | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 194 | 163 | |||||||
Insurance Contract | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 45 | 43 | |||||||
Real Estate Funds [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 135 | 123 | |||||||
Total pension assets for all levels [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 1,074 | 1,160 | |||||||
Pooled Funds [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | [1] | 940 | 824 | ||||||
Total Fair Value of Plan Assets [Domain] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 2,014 | 1,984 | |||||||
Level 1 Member | Cash And Cash Equivalents | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 3 | 1 | |||||||
Level 1 Member | U S Equity Securities | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 344 | 302 | |||||||
Level 1 Member | International Equity Securities | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 37 | 62 | |||||||
Level 1 Member | Equity Mutual Funds | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 2 | 236 | |||||||
Level 1 Member | Fixed Income Mutual Funds | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 104 | 91 | |||||||
Level 1 Member | Total pension assets, by level | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 490 | 692 | |||||||
Level 2 Member | U.S. Government Bonds | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 51 | 50 | |||||||
Level 2 Member | International Government Bonds | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 159 | 89 | |||||||
Level 2 Member | Corporate Bonds | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 194 | 163 | |||||||
Level 2 Member | Total pension assets, by level | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 404 | 302 | |||||||
Level 3 Member | Insurance Contract | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 45 | [2] | 43 | [2] | $ 53 | ||||
Acquisition | |||||||||
Gains or (losses) for the period | 3 | (4) | |||||||
Foreign Currency Translation | (1) | (6) | |||||||
Level 3 Member | Real Estate Funds [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 135 | [2] | 123 | [2] | 110 | ||||
Gains or (losses) for the period | 12 | 13 | |||||||
Level 3 Member | Total pension assets, by level | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 180 | [2] | 166 | [2] | 163 | ||||
Gains or (losses) for the period | 15 | 9 | |||||||
Foreign Currency Translation | (1) | (6) | |||||||
Other Postretirement Benefit Plans Defined Benefit | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Benefits Paid | 20 | 24 | |||||||
U.S. Pension Plans [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 1,507 | 1,509 | 1,607 | ||||||
Gains or (losses) for the period | 117 | (11) | |||||||
Defined Benefit Plan, Benefits Paid | 131 | 106 | |||||||
Foreign Pension Plans, Defined Benefit [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Fair Value of Plan Assets | 507 | 475 | $ 561 | ||||||
Gains or (losses) for the period | 47 | 18 | |||||||
Foreign Currency Translation | (91) | ||||||||
Defined Benefit Plan, Benefits Paid | $ 33 | $ 32 | |||||||
|
Retirement Programs (Contributions and Future Estimated Payments) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
[1] | Jun. 30, 2016 |
Mar. 31, 2016 |
[1] | Dec. 31, 2015 |
Sep. 30, 2015 |
[1] | Jun. 30, 2015 |
[1] | Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||
Operating Income (Loss) | $ 599 | $ 497 | $ 588 | $ 554 | $ 624 | $ 594 | $ 480 | $ 623 | $ 2,238 | $ 2,321 | $ 2,608 | ||||||
Pension and Other Postretirement Benefit Contributions [Abstract] | |||||||||||||||||
Pension Contributions | 11 | $ 15 | $ 18 | ||||||||||||||
U.S. Pension Plans [Member] | |||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2017 | 105 | 105 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2018 | 115 | 115 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2019 | 122 | 122 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2020 | 123 | 123 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2021 | 126 | 126 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2022-2026 | 661 | 661 | |||||||||||||||
International Pension Plans Defined Benefit | |||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2017 | 32 | 32 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2018 | 32 | 32 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2019 | 35 | 35 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2020 | 37 | 37 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2021 | 38 | 38 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2022-2026 | 210 | 210 | |||||||||||||||
Other Postretirement Benefit Plans Defined Benefit | |||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2017 | 13 | 13 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2018 | 12 | 12 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2019 | 12 | 12 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2020 | 11 | 11 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2021 | 11 | 11 | |||||||||||||||
Defined Benefit Plan, Estimated Future Benefit Payments in 2022-2026 | $ 47 | 47 | |||||||||||||||
Minimum | |||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||
Estimated Pension plan contributions during next fiscal year | 10 | ||||||||||||||||
Maximum | |||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||
Estimated Pension plan contributions during next fiscal year | $ 15 | ||||||||||||||||
|
Commitments and Contingencies (Lawsuits and Government Investigations) (Details) - 12 months ended Dec. 31, 2016 $ in Millions, BRL in Billions |
USD ($) |
BRL |
---|---|---|
Gain And Loss Contingencies [Line Items] | ||
Brazil tax matters estimated exposure | $ 225 | |
Initial CADE civil fine imposed | 675 | BRL 2.2 |
Revised CADE civil fine | $ 522 | BRL 1.7 |
Percentage Of Guarantees To Brazilian Court Satisfied By Letters Of Credit | 50.00% | |
Percentage Of Guarantees To Brazilian Court Satisfied By Equity | 50.00% | |
Outstanding letters of credit, bank guarantees and surety bonds | $ 415 | |
Material Commitments and Contractual Obligations [Line Items] | ||
Pledge against portion of debt held by an unconsolidated equity investee | 22 | |
Total Debt Of Unconsolidated Equity Investees | 305 | |
Unconditional Purchase Obligations | ||
Material Commitments and Contractual Obligations [Line Items] | ||
2017 | 585 | |
2018 | 534 | |
2019 | 476 | |
2020 | 422 | |
2021 | 434 | |
Thereafter | 2,645 | |
Total | 5,096 | |
Unconditional Purchase Obligation Payments | 887 | |
Unconditional Purchase Obligation Payments, Electricty | 444 | |
Unconditional Purchase Obligations Payments, Natural Gas | 150 | |
Unrecognized Unconditional Future Purchase Obligation Electricity | 2,770 | |
Unrecognized Unconditional Purchase Obligation, Silane | 86 | |
Construction Commitments | ||
Material Commitments and Contractual Obligations [Line Items] | ||
2017 | 836 | |
2018 | 271 | |
2019 | 125 | |
Total | $ 1,232 |
Segments (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Operating Profit (Loss) | $ 599 | $ 497 | [1] | $ 588 | $ 554 | [1] | $ 624 | $ 594 | [1] | $ 480 | [1] | $ 623 | $ 2,238 | $ 2,321 | $ 2,608 | |||||||
Cost reduction program and other charges (Note 2) | (100) | (172) | (138) | |||||||||||||||||||
Sales | 2,644 | 2,716 | 2,665 | 2,509 | 2,595 | 2,686 | 2,738 | 2,757 | 10,534 | 10,776 | 12,273 | |||||||||||
Segment Assets | 19,332 | 18,319 | 19,332 | 18,319 | ||||||||||||||||||
Segment Depreciation and Amortization | 285 | $ 284 | $ 281 | $ 272 | 275 | $ 276 | $ 278 | $ 277 | 1,122 | 1,106 | 1,170 | |||||||||||
Segment Capital Expenditures and Acquisitions | 1,828 | 1,623 | 1,895 | |||||||||||||||||||
Equity investments | 717 | 665 | 717 | 665 | ||||||||||||||||||
Atmospheric gases and related [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 7,329 | 7,595 | 8,623 | |||||||||||||||||||
Process gases and other [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 2,609 | 2,572 | 2,971 | |||||||||||||||||||
Surface Technologies Segment [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Sales | 596 | 609 | 679 | |||||||||||||||||||
North America Segment [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Operating Profit (Loss) | 1,430 | 1,558 | 1,580 | |||||||||||||||||||
Sales | [2] | 5,592 | 5,865 | 6,436 | ||||||||||||||||||
Segment Assets | [3] | 10,019 | 9,748 | 10,019 | 9,748 | 10,187 | ||||||||||||||||
Segment Depreciation and Amortization | 614 | 609 | 611 | |||||||||||||||||||
Segment Capital Expenditures and Acquisitions | 989 | 869 | 837 | |||||||||||||||||||
Equity investments | 121 | 127 | 121 | 127 | 132 | |||||||||||||||||
South America Segment Member | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Operating Profit (Loss) | 257 | 291 | 449 | |||||||||||||||||||
Sales | [2] | 1,399 | 1,431 | 1,993 | ||||||||||||||||||
Segment Assets | [3] | 2,748 | 2,124 | 2,748 | 2,124 | 2,718 | ||||||||||||||||
Segment Depreciation and Amortization | 133 | 135 | 177 | |||||||||||||||||||
Segment Capital Expenditures and Acquisitions | 232 | 285 | 373 | |||||||||||||||||||
Europe Segment Member | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Operating Profit (Loss) | 273 | 250 | 291 | |||||||||||||||||||
Sales | [2] | 1,392 | 1,320 | 1,546 | ||||||||||||||||||
Segment Assets | [3] | 2,928 | 2,704 | 2,928 | 2,704 | 2,996 | ||||||||||||||||
Segment Depreciation and Amortization | 155 | 145 | 168 | |||||||||||||||||||
Segment Capital Expenditures and Acquisitions | 402 | 227 | 319 | |||||||||||||||||||
Equity investments | 243 | 195 | 243 | 195 | 207 | |||||||||||||||||
Asia Segment Member | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Operating Profit (Loss) | 276 | 289 | 303 | |||||||||||||||||||
Sales | [2] | 1,555 | 1,551 | 1,619 | ||||||||||||||||||
Segment Assets | [3] | 2,984 | 3,113 | 2,984 | 3,113 | 3,194 | ||||||||||||||||
Segment Depreciation and Amortization | 179 | 176 | 170 | |||||||||||||||||||
Segment Capital Expenditures and Acquisitions | 165 | 208 | 310 | |||||||||||||||||||
Equity investments | 353 | 343 | 353 | 343 | 354 | |||||||||||||||||
Surface Technologies Segment [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Operating Profit (Loss) | 102 | 105 | 123 | |||||||||||||||||||
Sales | [2] | 596 | 609 | 679 | ||||||||||||||||||
Segment Assets | [3] | 653 | 630 | 653 | 630 | 674 | ||||||||||||||||
Segment Depreciation and Amortization | 41 | 41 | 44 | |||||||||||||||||||
Segment Capital Expenditures and Acquisitions | 40 | 34 | 56 | |||||||||||||||||||
Total Segments | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Operating Profit (Loss) | 2,338 | 2,493 | 2,746 | |||||||||||||||||||
Cost reduction program and other charges (Note 2) | (100) | (172) | (138) | |||||||||||||||||||
Sales | [2] | 10,534 | 10,776 | 12,273 | ||||||||||||||||||
Segment Assets | [3] | 19,332 | 18,319 | 19,332 | 18,319 | 19,769 | ||||||||||||||||
Equity investments | $ 717 | $ 665 | 717 | 665 | $ 693 | |||||||||||||||||
Total Impact Of Items [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Operating Profit (Loss) | $ (100) | $ (172) | ||||||||||||||||||||
|
Segments (Sales and Assets by Major Country) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||
Sales by Major Country [Line Items] | ||||||||||||||
Sales | $ 2,644 | $ 2,716 | $ 2,665 | $ 2,509 | $ 2,595 | $ 2,686 | $ 2,738 | $ 2,757 | $ 10,534 | $ 10,776 | $ 12,273 | |||
Long-Lived Assets by Major Country | 11,477 | 10,998 | 11,477 | 10,998 | ||||||||||
United States Member | ||||||||||||||
Sales by Major Country [Line Items] | ||||||||||||||
Sales | 4,623 | 4,771 | 5,171 | |||||||||||
Long-Lived Assets by Major Country | [1] | 4,922 | 4,825 | 4,922 | 4,825 | 4,817 | ||||||||
Brazil Member | ||||||||||||||
Sales by Major Country [Line Items] | ||||||||||||||
Sales | 1,091 | 1,107 | 1,511 | |||||||||||
Long-Lived Assets by Major Country | [1] | 1,262 | 986 | 1,262 | 986 | 1,344 | ||||||||
Other International Member | ||||||||||||||
Sales by Major Country [Line Items] | ||||||||||||||
Sales | 4,820 | 4,898 | 5,591 | |||||||||||
Long-Lived Assets by Major Country | [1] | 5,293 | 5,187 | 5,293 | 5,187 | 5,836 | ||||||||
Long-lived Assets, Total [Member] | ||||||||||||||
Sales by Major Country [Line Items] | ||||||||||||||
Long-Lived Assets by Major Country | [1] | $ 11,477 | $ 10,998 | $ 11,477 | $ 10,998 | $ 11,997 | ||||||||
|
Quarterly Data (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||||
Selected Quarterly Financial Information [Line Items] | |||||||||||||||||
Diluted Earnings Per Common Share | $ 1.41 | $ 1.18 | [1] | $ 1.39 | $ 1.24 | [1] | $ 1.47 | $ 1.40 | [1] | $ 1.06 | [1] | $ 1.43 | $ 5.21 | $ 5.35 | $ 5.73 | ||
Net Income (Loss) – Praxair, Inc. | $ 406 | $ 339 | [1] | $ 399 | $ 356 | [1] | $ 422 | $ 401 | [1] | $ 308 | [1] | $ 416 | $ 1,500 | $ 1,547 | $ 1,694 | ||
Operating Profit (Loss) | 599 | 497 | [1] | 588 | 554 | [1] | 624 | 594 | [1] | 480 | [1] | 623 | 2,238 | 2,321 | 2,608 | ||
Sales | 2,644 | 2,716 | 2,665 | 2,509 | 2,595 | 2,686 | 2,738 | 2,757 | 10,534 | 10,776 | 12,273 | ||||||
Depreciation and amortization | $ 285 | $ 284 | $ 281 | $ 272 | $ 275 | $ 276 | $ 278 | $ 277 | $ 1,122 | $ 1,106 | $ 1,170 | ||||||
Basic Earnings Per Common Share | $ 1.42 | $ 1.19 | $ 1.40 | $ 1.25 | $ 1.48 | $ 1.40 | $ 1.07 | $ 1.44 | $ 5.25 | $ 5.39 | $ 5.79 | ||||||
Cost of sales, exclusive of depreciation and amortization | $ 1,478 | $ 1,533 | $ 1,468 | $ 1,381 | $ 1,426 | $ 1,488 | $ 1,516 | $ 1,530 | $ 5,860 | $ 5,960 | $ 6,962 | ||||||
Diluted weighted average shares outstanding (in thousands) | 287,956 | 288,195 | 287,727 | 286,665 | 286,856 | 287,311 | 290,102 | 291,652 | 287,757 | 289,055 | 295,608 | ||||||
Basic weighted average shares outstanding (in thousands) | 285,720 | 285,858 | 285,702 | 285,429 | 285,288 | 285,651 | 287,939 | 289,143 | 285,677 | 287,005 | 292,494 | ||||||
Cost Reduction Program [Member] | |||||||||||||||||
Selected Quarterly Financial Information [Line Items] | |||||||||||||||||
Diluted Earnings Per Common Share | $ (0.22) | $ (0.04) | $ (0.39) | ||||||||||||||
Net Income (Loss) – Praxair, Inc. | $ (63) | $ (13) | $ (112) | ||||||||||||||
Operating Profit (Loss) | $ (96) | $ (19) | $ (146) | ||||||||||||||
Pension Settlement Charge [Member] | |||||||||||||||||
Selected Quarterly Financial Information [Line Items] | |||||||||||||||||
Diluted Earnings Per Common Share | $ (0.01) | $ (0.02) | |||||||||||||||
Net Income (Loss) – Praxair, Inc. | $ (3) | $ (5) | |||||||||||||||
Operating Profit (Loss) | $ (4) | $ (7) | $ (4) | ||||||||||||||
Total Impact Of Items [Member] | |||||||||||||||||
Selected Quarterly Financial Information [Line Items] | |||||||||||||||||
Diluted Earnings Per Common Share | $ (0.27) | $ (0.45) | |||||||||||||||
Net Income (Loss) – Praxair, Inc. | $ (76) | $ (130) | |||||||||||||||
Operating Profit (Loss) | $ (100) | $ (172) | |||||||||||||||
Bond Redemption [Member] | |||||||||||||||||
Selected Quarterly Financial Information [Line Items] | |||||||||||||||||
Diluted Earnings Per Common Share | $ (0.04) | ||||||||||||||||
Net Income (Loss) – Praxair, Inc. | $ (10) | ||||||||||||||||
|
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