Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | TRUE | ||
Amendment Description | We are filing this Amendment to our Form 10-K for the fiscal year ended December 31, 2014, filed with the Securities and Exchange Commission on February 25, 2015, solely to correct a typographical error on page 53 in the Report of Independent Registered Public Accounting Firm signed by PricewaterhouseCoopers LLP. This report inadvertently referred to the Company’s internal control over financial reporting as of December 31, 2013, but should have referred to the Company’s internal control over financial reporting as of December 31, 2014. Except for this correction, there have been no changes in any of the financial or other information contained in the report. For convenience, the entire Form 10-K, as amended, is being re-filed. | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PX | ||
Entity Registrant Name | PRAXAIR INC | ||
Entity Central Index Key | 884905 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 288,789,175 | ||
Entity Public Float | $39 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Income Statement [Abstract] | ||||||
Sales | $12,273 | [1] | $11,925 | [1] | $11,224 | [1] |
Cost of sales, exclusive of depreciation and amortization | 6,962 | 6,744 | 6,396 | |||
Selling, general and administrative | 1,308 | 1,349 | 1,270 | |||
Depreciation and amortization | 1,170 | 1,109 | 1,001 | |||
Research and development | 96 | 98 | 98 | |||
Venezuela currency devaluation and other charges – net | 138 | 32 | 65 | |||
Other income (expenses) – net | 9 | 32 | 43 | |||
Operating Profit | 2,608 | [2] | 2,625 | [2] | 2,437 | |
Interest expense – net | 213 | 178 | 141 | |||
Income Before Income Taxes and Equity Investments | 2,395 | 2,447 | 2,296 | |||
Income taxes | 691 | 649 | 586 | |||
Income Before Equity Investments | 1,704 | 1,798 | 1,710 | |||
Income from equity investments | 42 | 38 | 34 | |||
Net Income (Including Noncontrolling Interests) | 1,746 | 1,836 | 1,744 | |||
Less: noncontrolling interests | -52 | -81 | -52 | |||
Net Income (Loss) – Praxair, Inc. | $1,694 | [2] | $1,755 | [2] | $1,692 | |
Per Share Data – Praxair, Inc. Shareholders | ||||||
Basic earnings per share (usd per share) | $5.79 | $5.94 | $5.67 | |||
Diluted Earnings Per Common Share | $5.73 | $5.87 | $5.61 | |||
Weighted Average Shares Outstanding (000’s): | ||||||
Basic shares outstanding (in shares) | 292,494 | 295,523 | 298,316 | |||
Diluted shares outstanding (in shares) | 295,608 | 298,965 | 301,845 | |||
[1] | Sales reflect external sales only. Intersegment Sales, primarily from North America to other segments, were not material. | |||||
[2] | 2014 and 2013 include the impact of the following benefits/(charges) (see Notes 2, 5 & 7):(Millions of dollars)OperatingProfit/(Loss) NetIncome/(Loss) Diluted Earnings Per ShareVenezuela currency devaluation - Q4$(131) $(131) $(0.45)Pension settlement charge - Q4(7) (5) (0.02)Bond redemption -Q4— (22) (0.07)Year 2014$(138) $(158) $(0.54) Venezuela currency devaluation – Q1$(23) $(23) $(0.08)Pension settlement charge – Q3(9) (6) (0.02)Income tax benefit - Q4— 24 0.08Bond redemption - Q4— (12) (0.04)Year 2013$(32) $(17) $(0.06) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
NET INCOME (INCLUDING NONCONTROLLING INTERESTS) | $1,746 | $1,836 | $1,744 |
Translation adjustments: | |||
Foreign currency translation adjustments | -1,087 | -474 | -13 |
Reclassifications to Net Income | -5 | ||
Income Taxes | -4 | 27 | 17 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | -1,096 | -447 | 4 |
Funded status - retirement obligations (Note 16): | |||
Retirement program remeasurements | -318 | 408 | -228 |
Reclassifications to net income | 59 | 95 | 71 |
Income taxes | 95 | -180 | 49 |
Funded status - retirement obligations | -164 | 323 | -108 |
Derivative instruments (Note 12): | |||
Current year unrealized gain (loss) | 4 | 1 | -1 |
Income taxes | -1 | 1 | |
Derivative instruments | 3 | 1 | |
Other Comprehensive Income (Loss) Including Portion Attributable to Redeemable Non-Controlling Interest, Net of Tax | -1,257 | -123 | -104 |
COMPREHENSIVE INCOME (INCLUDING NONCONTROLLING INTERESTS) | 489 | 1,713 | 1,640 |
Less: noncontrolling interests | 1 | -76 | -54 |
COMPREHENSIVE INCOME - PRAXAIR, INC. | $490 | $1,637 | $1,586 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $126 | $138 | ||
Accounts receivable – net | 1,796 | 1,892 | ||
Inventories | 551 | [1] | 506 | [1] |
Prepaid and other current assets | 366 | 380 | ||
Total Current Assets | 2,839 | 2,916 | ||
Property, plant and equipment – net | 11,997 | [2] | 12,278 | [2] |
Equity investments | 693 | 702 | ||
Goodwill | 3,121 | 3,194 | ||
Other intangible assets – net | 603 | 596 | ||
Other long-term assets | 549 | 569 | ||
Total Assets | 19,802 | [3] | 20,255 | [3] |
Liabilities and Equity | ||||
Accounts payable | 864 | 921 | ||
Short-term debt | 587 | 782 | ||
Current portion of long-term debt | 2 | 3 | ||
Accrued taxes | 119 | 168 | ||
Other current liabilities | 918 | 790 | ||
Total Current Liabilities | 2,490 | 2,664 | ||
Long-term debt | 8,669 | 8,026 | ||
Other long-term liabilities | 1,176 | 859 | ||
Deferred credits | 1,281 | 1,396 | ||
Total Liabilities | 13,616 | 12,945 | ||
Commitments and contingencies (Note 17) | ||||
Redeemable noncontrolling interests | 176 | 307 | ||
Praxair, Inc. Shareholders’ Equity: | ||||
Common stock $0.01 par value, authorized – 800,000,000 shares, issued 2014 and 2013 – 383,230,625 shares | 4 | 4 | ||
Additional paid-in capital | 3,994 | 3,970 | ||
Retained earnings | 11,461 | 10,528 | ||
Accumulated other comprehensive income (loss) | -3,185 | -1,981 | ||
Less: Treasury stock, at cost (2014 – 93,969,017 shares and 2013 – 89,096,761 shares) | -6,651 | -5,912 | ||
Total Praxair, Inc. Shareholders’ Equity | 5,623 | 6,609 | ||
Noncontrolling interests | 387 | 394 | ||
Total Equity | 6,010 | 7,003 | ||
Total Liabilities and Equity | $19,802 | $20,255 | ||
[1] | Effective July 1, 2014, Praxair changed its method of accounting for all remaining U.S. operations that were using the last-in, first-out ("LIFO") method to the average-cost method, primarily raw materials. Prior to this change, approximately 6% of consolidated inventories were accounted for under the LIFO method. Praxair applied this change as a cumulative effect adjustment in the third quarter 2014 and did not restate prior periods because the impact was not material. The accounting change increased inventories by $9 million at July 1, 2014. The Company believes the change is preferable because it will better reflect the impact of current costs in both the consolidated balance sheets and consolidated statements of income. Had the Company not changed its accounting method, reported inventory amounts at December 31, 2014 would not have been significantly different than the amount disclosed above at July 1, 2014.At December 31, 2013, approximately 6% of total inventories were valued using the LIFO method, all in the United States. If inventories had been valued at current costs, they would have been approximately $9 million higher than reported at December 31, 2013. | |||
[2] | (c)Long-lived assets include property, plant and equipment – net. | |||
[3] | (b)Includes equity investments as of December 31, as follows:(Millions of dollars)2014 2013 2012North America$132 $128 $135Europe 207 218 199Asia 354 356 320 $693 $702 $654Changes primarily relate to equity investment earnings, dividends and currency impacts. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
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) | 93,969,017 | 89,096,761 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Operations | |||||
Net income – Praxair, Inc. | $1,694 | [1] | $1,755 | [1] | $1,692 |
Income (Loss) Attributable to Noncontrolling Interest | -52 | -81 | -52 | ||
Net Income (Including Noncontrolling Interests) | 1,746 | 1,836 | 1,744 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Venezuela currency devaluation and other charges-net, net of payments | 138 | 23 | 43 | ||
Depreciation and amortization | 1,170 | 1,109 | 1,001 | ||
Deferred income taxes | 55 | 101 | 258 | ||
Share-based compensation | 51 | 70 | 70 | ||
Non-cash charges and other | -116 | -88 | -127 | ||
Working capital | |||||
Accounts receivable | -80 | -84 | -36 | ||
Inventory | -42 | -54 | -18 | ||
Prepaid and other current assets | -20 | -69 | -17 | ||
Payables and accruals | 13 | 107 | -34 | ||
Pension contributions | -18 | -52 | -184 | ||
Long-term assets, liabilities and other | -29 | 18 | 52 | ||
Net cash provided by operating activities | 2,868 | 2,917 | 2,752 | ||
Investing | |||||
Capital expenditures | -1,689 | -2,020 | -2,180 | ||
Acquisitions, net of cash acquired | -206 | -1,323 | -280 | ||
Divestitures and asset sales | 92 | 106 | 82 | ||
Net cash used for investing activities | -1,803 | -3,237 | -2,378 | ||
Net Cash Provided by (Used in) Financing Activities [Abstract] | |||||
Short-term debt borrowings (repayments) – net | -193 | 149 | 293 | ||
Long-term debt borrowings | 1,546 | 2,659 | 2,036 | ||
Long-term debt repayments | -764 | -1,347 | -1,522 | ||
Issuances of common stock | 103 | 154 | 164 | ||
Purchases of common stock | -862 | -590 | -623 | ||
Cash dividends – Praxair, Inc. shareholders | -759 | -708 | -655 | ||
Excess tax benefit on stock based compensation | 31 | 46 | 60 | ||
Noncontrolling interest transactions and other | -110 | -35 | -56 | ||
Net cash used for financing activities | -1,008 | 328 | -303 | ||
Effect of exchange rate changes on cash and cash equivalents | -69 | -27 | -4 | ||
Change in cash and cash equivalents | -12 | -19 | 67 | ||
Cash and cash equivalents, beginning-of-period | 138 | 157 | 90 | ||
Cash and cash equivalents, end-of-period | 126 | 138 | 157 | ||
Supplemental Data | |||||
Income taxes paid | 606 | 532 | 277 | ||
Interest paid, net of capitalized interest (Note 7) | $210 | $184 | $153 | ||
[1] | 2014 and 2013 include the impact of the following benefits/(charges) (see Notes 2, 5 & 7):(Millions of dollars)OperatingProfit/(Loss) NetIncome/(Loss) Diluted Earnings Per ShareVenezuela currency devaluation - Q4$(131) $(131) $(0.45)Pension settlement charge - Q4(7) (5) (0.02)Bond redemption -Q4— (22) (0.07)Year 2014$(138) $(158) $(0.54) Venezuela currency devaluation – Q1$(23) $(23) $(0.08)Pension settlement charge – Q3(9) (6) (0.02)Income tax benefit - Q4— 24 0.08Bond redemption - Q4— (12) (0.04)Year 2013$(32) $(17) $(0.06) |
Consolidated_Statements_of_Equ
Consolidated Statements of Equity (USD $) | Total | 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 |
In Millions, except Share data, unless otherwise specified | |||||||||
Beginning Balance at Dec. 31, 2011 | $5,797 | $4 | $3,809 | $8,510 | ($1,746) | ($5,089) | $5,488 | $309 | |
Treasury stock, shares (in shares) at Dec. 31, 2011 | 84,324,000 | ||||||||
Beginning Balance (in shares) at Dec. 31, 2011 | 382,854,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 1,744 | 1,692 | 1,692 | 34 | 1,726 | ||||
Other Comprehensive Income (Loss), Net of Tax | -104 | -106 | -106 | 2 | |||||
Dividends and other capital reductions | -48 | -48 | |||||||
Additions (Reductions) | 44 | 44 | |||||||
Reclassification to redeemable noncontrolling interests (Note 14) | 16 | 16 | |||||||
Redemption value adjustments (Note 14) | -13 | -13 | -13 | ||||||
Dividends to Praxair, Inc common stock | -655 | -655 | -655 | ||||||
Issuances of common stock: | |||||||||
Stock issued during period dividend reinvestment and employee stock purchase plan (in shares) | 66,000 | ||||||||
Stock issued during period dividend reinvestment and employee stock purchase plan | 7 | 7 | 7 | ||||||
Stock issued during period employee savings and incentive plans (in shares) | 153,000 | -3,298,000 | |||||||
Stock issued during period employee savings and incentive plans | 148 | -60 | 208 | 148 | |||||
Purchases of common stock (in shares) | 5,818,000 | ||||||||
Purchases of common stock | -630 | -630 | -630 | ||||||
Tax benefit from stock options | 63 | 63 | 63 | ||||||
Share-based compensation | 70 | 70 | 70 | ||||||
Ending Balance at Dec. 31, 2012 | 6,421 | 4 | 3,889 | 9,534 | -1,852 | -5,511 | 6,064 | 357 | |
Treasury stock, shares (in shares) at Dec. 31, 2012 | 86,844,000 | ||||||||
Ending Balance (in shares) at Dec. 31, 2012 | 383,073,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 1,836 | 1,755 | 1,755 | 57 | 1,812 | ||||
Other Comprehensive Income (Loss), Net of Tax | -123 | -129 | -129 | 6 | |||||
Dividends and other capital reductions | -41 | -41 | |||||||
Additions (Reductions) | 15 | 15 | |||||||
Redemption value adjustments (Note 14) | -53 | -53 | -53 | ||||||
Dividends to Praxair, Inc common stock | -708 | -708 | -708 | ||||||
Issuances of common stock: | |||||||||
Stock issued during period dividend reinvestment and employee stock purchase plan (in shares) | 47,000 | -14,000 | |||||||
Stock issued during period dividend reinvestment and employee stock purchase plan | 7 | 5 | 2 | 7 | |||||
Stock issued during period employee savings and incentive plans (in shares) | 111,000 | -2,767,000 | |||||||
Stock issued during period employee savings and incentive plans | 139 | -41 | 180 | 139 | |||||
Purchases of common stock (in shares) | 5,034,000 | ||||||||
Purchases of common stock | -583 | -583 | -583 | ||||||
Tax benefit from stock options | 47 | 47 | 47 | ||||||
Share-based compensation | 70 | 70 | 70 | ||||||
Ending Balance at Dec. 31, 2013 | 7,003 | 4 | 3,970 | 10,528 | -1,981 | -5,912 | 6,609 | 394 | |
Treasury stock, shares (in shares) at Dec. 31, 2013 | 89,096,761 | 89,097,000 | |||||||
Ending Balance (in shares) at Dec. 31, 2013 | 383,231,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net Income | 1,746 | 1,694 | 1,694 | 40 | 1,734 | ||||
Other Comprehensive Income (Loss), Net of Tax | -1,233 | -1,204 | -1,204 | -29 | |||||
Dividends and other capital reductions | -28 | -28 | |||||||
Purchases of noncontrolling interests | -22 | -24 | -24 | 2 | |||||
Additions (Reductions) | 8 | 8 | |||||||
Redemption value adjustments (Note 14) | -2 | -2 | -2 | ||||||
Dividends to Praxair, Inc common stock | -759 | -759 | -759 | ||||||
Issuances of common stock: | |||||||||
Stock issued during period dividend reinvestment and employee stock purchase plan (in shares) | -56,000 | ||||||||
Stock issued during period dividend reinvestment and employee stock purchase plan | 7 | 7 | 7 | ||||||
Stock issued during period employee savings and incentive plans (in shares) | -1,830,000 | ||||||||
Stock issued during period employee savings and incentive plans | 86 | -36 | 122 | 86 | |||||
Purchases of common stock (in shares) | 6,758,000 | ||||||||
Purchases of common stock | -868 | -868 | -868 | ||||||
Tax benefit from stock options | 33 | 33 | 33 | ||||||
Share-based compensation | 51 | 51 | 51 | ||||||
Ending Balance at Dec. 31, 2014 | $6,010 | $4 | $3,994 | $11,461 | ($3,185) | ($6,651) | $5,623 | $387 | |
Treasury stock, shares (in shares) at Dec. 31, 2014 | 93,969,017 | 93,969,000 | |||||||
Ending Balance (in shares) at Dec. 31, 2014 | 383,231,000 |
Consolidated_Statements_of_Equ1
Consolidated Statements of Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Dividends to Praxair, Inc common stock, per share | $2.60 | $2.40 | $2.20 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
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, and the largest in North and South America. 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 89% of consolidated sales while all other sources of revenue are approximately 11% in the aggregate. 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. Effective July 1, 2014, the Company changed its method of accounting for all remaining U.S. operations that were using the last-in, first-out (“LIFO”) method to the average-cost method. See Note 7. | ||
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). For Venezuelan operations, the U.S. dollar is the functional currency and translation gains and losses are included in other income (expenses) – net. | ||
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 2014 | ||
The following standards were effective for Praxair in 2014 and their adoption did not have a significant impact on the condensed consolidated financial statements: | ||
• | Accounting for Cumulative Translation Adjustment - In March 2013, the Financial Accounting Standards Board ("FASB") issued updated guidance on the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity, or as a result of acquisitions achieved in stages. The adoption of this guidance did not have a significant impact on the condensed consolidated financial statements. | |
• | Presentation of Unrecognized Tax Benefits - In July 2013, the FASB issued updated guidance on the presentation of unrecognized tax benefits. The new guidance requires an entity to present certain unrecognized tax benefits, or a portion thereof, as a reduction to the related deferred tax asset, primarily for loss and tax credit carryforwards. The adoption of this guidance did not have a significant impact on the condensed consolidated financial statements. | |
Accounting Standards to Be Implemented | ||
• | Reporting Discontinued Operations – In April 2014, the FASB issued updated guidance on the reporting and disclosures of discontinued operations. The new guidance requires that the disposal of a component of an entity be reported as discontinued operations only if the action represents a strategic shift that will have a major effect on an entity’s operations and financial results, and would require expanded disclosures. Praxair does not expect this requirement to have a significant impact on the consolidated financial statements. This guidance will be effective for Praxair beginning in the first quarter of 2015. | |
• | 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 would require expanded disclosures. This guidance will be effective for Praxair beginning in the first quarter 2017 and can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. Praxair is currently evaluating the new guidance and the transition options and will provide updates on the expected impact to Praxair in future filings, as determined. | |
• | 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. Praxair does not expect this requirement to have a significant impact on the consolidated financial statements. This guidance will be effective for Praxair beginning in the first quarter 2016, with early adoption optional. | |
Reclassifications – Certain prior years’ amounts have been reclassified to conform to the current year’s presentation. |
Venezuela_Currency_Devaluation
Venezuela Currency Devaluation and Other Charges - Net | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Extraordinary and Unusual Items [Abstract] | |||||||||||||
Cost Reduction Program and Other Charges - Net | NOTE 2. VENEZUELA CURRENCY DEVALUATION AND OTHER CHARGES – NET | ||||||||||||
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 allows 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 that the SICAD II rate more accurately reflects the economic reality of its business in Venezuela versus the official exchange rate. Currently, there is 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). | |||||||||||||
2013 Charges | |||||||||||||
Venezuela Currency Devaluation | |||||||||||||
On February 8, 2013, Venezuela announced a devaluation of the Venezuelan Bolivar from 4.30 to 6.30 (a 32% devaluation), effective on February 13, 2013. In the first quarter 2013 Praxair recorded a $23 million pre-tax charge ($23 million after-tax or $0.08 per diluted share) due primarily to the remeasurement of the local Venezuelan balance sheet to reflect the new official 6.30 exchange rate. | |||||||||||||
Pension Settlement Charge | |||||||||||||
In 2012, 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, Praxair recorded a settlement charge related to net unrecognized actuarial losses of $9 million ($6 million after-tax or $0.02 per diluted share) in the third quarter of 2013, when the cash payments were made to the retirees (refer to Note 16). | |||||||||||||
2012 Charges | |||||||||||||
Cost Reduction Program | |||||||||||||
In the third quarter of 2012, Praxair recorded pre-tax charges totaling $56 million ($38 million after taxes of $16 million and noncontrolling interests of $2 million or $0.12 per diluted share), relating to severance and business restructuring actions primarily in Europe within the industrial gases and surface technologies businesses. The cost reduction program was initiated primarily in response to the continuing economic downturn in Europe. | |||||||||||||
The following is a summary of the charges by reportable segment: | |||||||||||||
(Millions of dollars) | Severance | Costs Associated | Total Cost | ||||||||||
Costs | with Exit or | Reduction | |||||||||||
Disposal | Program | ||||||||||||
Activities | |||||||||||||
North America | $ | 1 | $ | — | $ | 1 | |||||||
Europe | 28 | 8 | 36 | ||||||||||
South America | 1 | — | 1 | ||||||||||
Asia | 2 | — | 2 | ||||||||||
Surface Technologies | 11 | 5 | 16 | ||||||||||
Total | $ | 43 | $ | 13 | $ | 56 | |||||||
The severance costs of $43 million are for the termination of approximately 410 employees, primarily in Europe (industrial gases and surface technologies). These actions reflected the continued business slow-down in Europe and resulted from a decision to eliminate and/or restructure operations and product lines. The actions are completed as of December 31, 2014 and the remaining liability associated with those actions is expected to be paid during the next twelve months. | |||||||||||||
The costs associated with exit or disposal activities of $13 million include asset write-downs and other costs associated with a decision to eliminate and/or restructure operations and product lines. In Europe the costs primarily relate to the elimination and consolidation of operations in Spain. In Surface Technologies, the costs relate to the consolidation/rationalization of operations and product lines, primarily in Germany and Italy. | |||||||||||||
The following table summarizes the activities related to the company's cost reduction program through December 31, 2014: | |||||||||||||
(Millions of dollars) | Severance | Costs Associated | Total Cost | ||||||||||
Costs | with Exit or | Reduction | |||||||||||
Disposal | Program | ||||||||||||
Activities | |||||||||||||
Cost reduction program charges in the third quarter of 2012 | $ | 43 | $ | 13 | $ | 56 | |||||||
Less: Cash payments | (13 | ) | — | (13 | ) | ||||||||
Less: Non-cash asset write-offs | — | (9 | ) | (9 | ) | ||||||||
Balance December 31, 2012 | $ | 30 | $ | 4 | $ | 34 | |||||||
Less: Cash payments | (16 | ) | (4 | ) | (20 | ) | |||||||
Foreign currency translation | 1 | — | 1 | ||||||||||
Balance, December 31, 2013 | $ | 15 | $ | — | $ | 15 | |||||||
Less: Cash payments | (4 | ) | — | (4 | ) | ||||||||
Foreign currency translation and other | (4 | ) | — | (4 | ) | ||||||||
Balance, December 31, 2014 | $ | 7 | $ | — | $ | 7 | |||||||
Pension Settlement Charge | |||||||||||||
During 2011, 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, Praxair recorded a settlement charge related to net unrecognized actuarial losses of $9 million ($6 million after-tax or $0.02 per diluted share) in the third quarter of 2012 when the cash payments were made (refer to Note 16). | |||||||||||||
Classification in the consolidated financial statements | |||||||||||||
The pre-tax net charges or benefits for each year are shown in operating profit in a separate line item on the consolidated statement of income. In the balance sheets, asset write-offs are recorded as a reduction to the carrying value of the related assets and unpaid amounts are recorded as short-term liabilities (See Note 7). On the consolidated statement of cash flows, the pre-tax impact of the net charges or benefits, 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 items in its management definition of segment operating profit; a reconciliation of segment operating profit to consolidated operating profit is shown within the operating profit table. |
Acquisitions
Acquisitions | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
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. | |||||
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). In each case, the allocation of the purchase price is based on preliminary estimates and assumptions, and are subject to revision based on final information received, including appraisals and other analyses that support the underlying estimates. Adjustments, if any, are not expected to be material. | |||||
2013 Acquisitions | |||||
NuCO2 | |||||
On March 1, 2013 Praxair acquired 100% of NuCO2 Inc. ("NuCO2") for $1,095 million. NuCO2 is the leading national provider of beverage carbonation solutions in the United States to the restaurant and hospitality industries with 162,000 customer locations and 900 employees, and with 2012 sales of approximately $230 million. The NuCO2 micro-bulk beverage carbonation solution is the service model of choice for quick service restaurants and convenience stores offering fountain beverages and represents an extension of Praxair's core industrial gas business. | |||||
The acquisition of NuCO2 was accounted for as a business combination. Following the acquisition date, 100% of NuCO2's results were consolidated in the North America business segment. Praxair's 2013 consolidated income statement includes sales of $208 million related to NuCO2. Pro forma results for 2013 and 2012 have not been included as the impact of the acquisition is not material to the consolidated statements of income. | |||||
The following table summarizes the fair value of identifiable assets acquired and liabilities assumed in the acquisition of NuCO2 as of the acquisition date. Purchase accounting has been finalized and adjustments made subsequent to the acquisition date were not material. | |||||
(Millions of dollars) | 1-Mar-13 | ||||
Trade receivables, net | $ | 17 | |||
Property, plant and equipment | 199 | ||||
Intangible assets | 374 | ||||
Deferred income taxes | (85 | ) | |||
Other assets and (liabilities) | (28 | ) | |||
Goodwill | 618 | ||||
Purchase price | $ | 1,095 | |||
The identifiable intangible assets primarily consist of customer relationships that will be amortized over their estimated useful life of 25 years. The deferred income taxes relate primarily to property, plant and equipment, intangibles and operating loss carryforwards. The goodwill resulting from the acquisition is attributable to (i) expected growth from market penetration into the quick service restaurants, convenience stores and themed restaurant chains in the United States and select international markets as we leverage Praxair's customer and distribution networks worldwide, and (ii) cost synergies related to the procurement of raw materials, distribution-related expenses and administrative costs as Praxair integrates and rationalizes administration tasks and leverages its purchasing scale. The goodwill is not expected to be deductible for income tax purposes. | |||||
Other Acquisitions | |||||
On May 29, 2013 Praxair acquired Dominion Technology Gases Investment Limited (“Dominion”), a leading global supplier of diving, welding, industrial, laboratory and calibration gases and associated equipment to the offshore oil and gas industry based in Aberdeen, Scotland. Dominion provides products and services to the expanding global offshore oil and gas market. | |||||
On June 3, 2013 Praxair acquired Volgograd Oxygen Factory (“VOF”), the largest independent industrial gas business in southern Russia, expanding Praxair's production and distribution capabilities in the Volgograd region. Additionally, during 2013, Praxair acquired several smaller independent packaged gas distributors in the United States, an industrial gas business in Italy and a customer contract with operating assets in China. | |||||
The aggregate purchase price for these acquisitions was $228 million and resulted in the recognition of $194 million of intangible assets, including $101 million of goodwill and $93 million of other intangible assets, which will be amortized over their estimated useful life. | |||||
2012 Acquisitions | |||||
In November 2012, Praxair acquired Acetylene Oxygen Company ("AOC"), one of the top ten independent gas and welding products distributors in the U.S, which operates throughout central and southern Texas. The acquisition of AOC allows Praxair to further expand its packaged gases presence in this region. Also, during the twelve months ended December 31, 2012, Praxair completed a number of other smaller acquisitions, primarily North American packaged gas distributors, including PortaGas, located in Houston, Texas. The aggregate purchase price for all seventeen acquisitions was $280 million, and resulted in recognition of $122 million of goodwill. |
Leases
Leases | 12 Months Ended | |||
Dec. 31, 2014 | ||||
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 $148 million in 2014, $140 million in 2013 and $120 million in 2012. Capital leases are not significant and are included in property, plant and equipment – net. Related obligations are included in debt. | ||||
At December 31, 2014, minimum payments due under operating leases are as follows: | ||||
(Millions of dollars) | ||||
2015 | $ | 122 | ||
2016 | 109 | |||
2017 | 91 | |||
2018 | 75 | |||
2019 | 60 | |||
Thereafter | 60 | |||
$ | 517 | |||
The present value of these future lease payments under operating leases is approximately $439 million. | ||||
Praxair’s leases where it is the lessor are not material. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Income Taxes | NOTE 5. INCOME TAXES | ||||||||||||||||||||
Pre-tax income applicable to U.S. and foreign operations is as follows: | |||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
United States | $ | 1,004 | $ | 890 | $ | 880 | |||||||||||||||
Foreign | 1,391 | 1,557 | 1,416 | ||||||||||||||||||
Total income before income taxes | $ | 2,395 | $ | 2,447 | $ | 2,296 | |||||||||||||||
The following is an analysis of the provision for income taxes: | |||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
Current tax expense | |||||||||||||||||||||
U.S. federal | $ | 291 | $ | 94 | $ | 14 | |||||||||||||||
State and local | 35 | 27 | 20 | ||||||||||||||||||
Foreign | 310 | 427 | 294 | ||||||||||||||||||
636 | 548 | 328 | |||||||||||||||||||
Deferred tax expense | |||||||||||||||||||||
U.S. federal | 14 | 164 | 198 | ||||||||||||||||||
State and local | 12 | 8 | 17 | ||||||||||||||||||
Foreign | 29 | (71 | ) | 43 | |||||||||||||||||
55 | 101 | 258 | |||||||||||||||||||
Total income taxes | $ | 691 | $ | 649 | $ | 586 | |||||||||||||||
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: | |||||||||||||||||||||
(Dollar amounts in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
U.S. statutory income tax rate | $ | 838 | 35 | % | $ | 856 | 35 | % | $ | 804 | 35 | % | |||||||||
State and local taxes – net of federal benefit | 31 | 1.3 | % | 23 | 1 | % | 24 | 1 | % | ||||||||||||
U.S. tax credits and deductions (a) | (37 | ) | (1.5 | )% | (23 | ) | (1.0 | )% | (22 | ) | (1.0 | )% | |||||||||
Foreign tax differentials (b) | (186 | ) | (7.8 | )% | (158 | ) | (6.4 | )% | (159 | ) | (6.9 | )% | |||||||||
Venezuela currency devaluation (c) | 46 | 1.9 | % | 8 | 0.3 | % | — | — | % | ||||||||||||
Income tax benefit from realignment of Italian legal structure (d) | — | — | % | (40 | ) | (1.6 | )% | — | — | % | |||||||||||
Income tax benefit from liquidation of subsidiary (e) | — | — | % | — | — | % | (55 | ) | (2.4 | )% | |||||||||||
Other – net | (1 | ) | — | % | (17 | ) | (0.8 | )% | (6 | ) | (0.2 | )% | |||||||||
Provision for income taxes | $ | 691 | 28.9 | % | $ | 649 | 26.5 | % | $ | 586 | 25.5 | % | |||||||||
________________________ | |||||||||||||||||||||
(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 and 2013 (see Note 2). | ||||||||||||||||||||
(d) | In December of 2013, Praxair's Italian legal structure was realigned. As a result of the new structure, an income tax benefit of $40 million ($24 million net of noncontrolling interests) was recorded. The benefit is recorded as $56 million in foreign current tax expense and $(96) million included in federal deferred tax expense. | ||||||||||||||||||||
(e) | In 2011 Praxair requested a pre-filing agreement (“PFA”) with the U.S. Internal Revenue Service (“IRS”) related to a loss on a liquidated subsidiary resulting from the divestiture of the U.S. Homecare Business. During the third quarter of 2012, the IRS approved the PFA resulting in a net income tax benefit of $(55) million. The benefit is recorded in U.S. current federal tax expense. | ||||||||||||||||||||
Net deferred tax liabilities included in the consolidated balance sheet are comprised of the following: | |||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | |||||||||||||||||||
December 31, | |||||||||||||||||||||
Deferred tax liabilities | |||||||||||||||||||||
Fixed assets | $ | 1,402 | $ | 1,374 | |||||||||||||||||
Exchange gains | 85 | 61 | |||||||||||||||||||
Goodwill | 144 | 127 | |||||||||||||||||||
Other intangible assets | 125 | 112 | |||||||||||||||||||
Other | 146 | 133 | |||||||||||||||||||
$ | 1,902 | $ | 1,807 | ||||||||||||||||||
Deferred tax assets | |||||||||||||||||||||
Carryforwards | $ | 333 | $ | 323 | |||||||||||||||||
Benefit plans and related (a) | 389 | 285 | |||||||||||||||||||
Inventory | 18 | 20 | |||||||||||||||||||
Accruals and other (b) | 357 | 312 | |||||||||||||||||||
$ | 1,097 | $ | 940 | ||||||||||||||||||
Less: Valuation allowances (c) | (106 | ) | (85 | ) | |||||||||||||||||
$ | 991 | $ | 855 | ||||||||||||||||||
Net deferred tax liabilities | $ | 911 | $ | 952 | |||||||||||||||||
Recorded in the consolidated balance sheets as (See Note 7): | |||||||||||||||||||||
Prepaid and other current assets | $ | 189 | $ | 181 | |||||||||||||||||
Other long-term assets | 98 | 72 | |||||||||||||||||||
Deferred credits | 1,198 | 1,205 | |||||||||||||||||||
$ | 911 | $ | 952 | ||||||||||||||||||
________________________ | |||||||||||||||||||||
(a) | Includes deferred taxes of $342 million and $247 million in 2014 and 2013, respectively, related to pension / OPEB funded status (see Notes 7 and 16). | ||||||||||||||||||||
(b) | Includes $179 million and $112 million in 2014 and 2013, respectively, related to research and development costs and $67 million and $70 million in 2014 and 2013, respectively, related to goodwill. | ||||||||||||||||||||
(c) | Summary of valuation allowances relating to deferred tax assets follows (millions of dollars): | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Balance, January 1, | $ | (85 | ) | $ | (86 | ) | $ | (107 | ) | ||||||||||||
Income tax (charge) benefit | (20 | ) | 1 | 9 | |||||||||||||||||
Translation adjustments | 6 | — | — | ||||||||||||||||||
Other, including write-offs | (7 | ) | — | 12 | |||||||||||||||||
Balance, December 31, | $ | (106 | ) | $ | (85 | ) | $ | (86 | ) | ||||||||||||
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, 2014, Praxair had $333 million of deferred tax assets relating to net operating losses (“NOLs”) and tax credits and $106 million of valuation allowances. These deferred tax assets include $157 million relating to NOLs of which $56 million are in the United States primarily related to Praxair's NuCo2 acquisition in 2013, and $101 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, 2014 also include $73 million relating to U.S. foreign tax credits which expire in 2021 and have a $56 million 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 $103 million relate to U.S. state ($67 million) and other foreign ($36 million) NOLs and credit carryforwards, which expire through 2033, have valuation allowances totaling $50 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, 2014 on $10.4 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 $71 million, $121 million and $142 million as of December 31, 2014, 2013 and 2012, 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: | |||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||
Unrecognized income tax benefits, January 1 | $ | 121 | $ | 142 | $ | 163 | |||||||||||||||
Additions for tax positions of prior years | 13 | 8 | 12 | ||||||||||||||||||
Reductions for tax positions of prior years | (2 | ) | (24 | ) | (17 | ) | |||||||||||||||
Additions for current year tax positions | 3 | 10 | — | ||||||||||||||||||
Reductions for settlements with taxing authorities (a) | (3 | ) | (2 | ) | (1 | ) | |||||||||||||||
Reductions as a result of a lapse of an applicable statute of limitations (b) | (56 | ) | (1 | ) | (9 | ) | |||||||||||||||
Foreign currency translation and other | (5 | ) | (12 | ) | (6 | ) | |||||||||||||||
Unrecognized income tax benefits, December 31 | $ | 71 | $ | 121 | $ | 142 | |||||||||||||||
________________________ | |||||||||||||||||||||
(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. | ||||||||||||||||||||
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 $3 million in 2014 related to the reversal of uncertain tax positions; net interest income of $11 million in 2013 primarily related to refunds received from taxing authorities; and net interest expense of $1 million in 2012. Praxair had $8 million and $12 million of accrued interest and penalties as of December 31, 2014 and December 31, 2013, respectively which were recorded in other long-term liabilities in the consolidated balance sheets (see Note 7). | |||||||||||||||||||||
As of December 31, 2014, the company remained subject to examination in the following major tax jurisdictions for the tax years as indicated below: | |||||||||||||||||||||
Major tax jurisdictions | Open Years | ||||||||||||||||||||
North America | |||||||||||||||||||||
United States | 2011 through 2014 | ||||||||||||||||||||
Canada | 2007 through 2014 | ||||||||||||||||||||
Mexico | 2009 through 2014 | ||||||||||||||||||||
Europe | |||||||||||||||||||||
Germany | 2008 through 2014 | ||||||||||||||||||||
Italy | 2010 through 2014 | ||||||||||||||||||||
Spain | 2004 through 2014 | ||||||||||||||||||||
South America | |||||||||||||||||||||
Brazil | 2003 through 2014 | ||||||||||||||||||||
Asia | |||||||||||||||||||||
China | 2009 through 2014 | ||||||||||||||||||||
India | 2006 through 2014 | ||||||||||||||||||||
Korea | 2008 through 2014 | ||||||||||||||||||||
Thailand | 2008 through 2014 | ||||||||||||||||||||
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 2014, 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
Earnings Per Share - Praxair, Inc. Shareholders | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator (Millions of dollars) | ||||||||||||
Net income – Praxair, Inc. | $ | 1,694 | $ | 1,755 | $ | 1,692 | ||||||
Denominator (Thousands of shares) | ||||||||||||
Weighted average shares outstanding | 291,987 | 294,994 | 297,746 | |||||||||
Shares earned and issuable under compensation plans | 507 | 529 | 570 | |||||||||
Weighted average shares used in basic earnings per share | 292,494 | 295,523 | 298,316 | |||||||||
Effect of dilutive securities | ||||||||||||
Stock options and awards | 3,114 | 3,442 | 3,529 | |||||||||
Weighted average shares used in diluted earnings per share | 295,608 | 298,965 | 301,845 | |||||||||
Basic Earnings Per Common Share | $ | 5.79 | $ | 5.94 | $ | 5.67 | ||||||
Diluted Earnings Per Common Share | $ | 5.73 | $ | 5.87 | $ | 5.61 | ||||||
There were no antidilutive shares for the years ended December 31, 2014 and 2013. There were 1,589,235 antidilutive shares for the year ended December 31, 2012. |
Supplemental_Information
Supplemental Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Information [Abstract] | ||||||||||||
Supplemental Information | NOTE 7. SUPPLEMENTAL INFORMATION | |||||||||||
Income Statement | ||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | |||||||||
Year Ended December 31, | ||||||||||||
Selling, General and Administrative | ||||||||||||
Selling | $ | 572 | $ | 567 | $ | 547 | ||||||
General and administrative | 736 | 782 | 723 | |||||||||
$ | 1,308 | $ | 1,349 | $ | 1,270 | |||||||
Year Ended December 31, | 2014 | 2013 | 2012 | |||||||||
Depreciation and Amortization | ||||||||||||
Depreciation | $ | 1,123 | $ | 1,068 | $ | 980 | ||||||
Amortization of other intangibles (Note 10) | 47 | 41 | 21 | |||||||||
$ | 1,170 | $ | 1,109 | $ | 1,001 | |||||||
Year Ended December 31, | 2014 | 2013 | 2012 | |||||||||
Other Income (Expenses) – Net | ||||||||||||
Currency related net gains (losses) | $ | 1 | $ | 3 | $ | (9 | ) | |||||
Partnership income | 16 | 7 | 10 | |||||||||
Net legal settlements | — | 10 | 24 | |||||||||
Severance expense | (22 | ) | (14 | ) | (17 | ) | ||||||
Business divestitures and asset gains (losses) – net | 36 | 43 | 49 | |||||||||
Other – net | (22 | ) | (17 | ) | (14 | ) | ||||||
$ | 9 | $ | 32 | $ | 43 | |||||||
Year Ended December 31, | 2014 | 2013 | 2012 | |||||||||
Interest Expense – Net | ||||||||||||
Interest incurred on debt | $ | 215 | $ | 233 | $ | 226 | ||||||
Interest capitalized | (38 | ) | (69 | ) | (70 | ) | ||||||
Amortization of swap termination costs (Note 12) | — | (4 | ) | (15 | ) | |||||||
Bond redemption (a) | 36 | 18 | — | |||||||||
$ | 213 | $ | 178 | $ | 141 | |||||||
Year Ended December 31, | 2014 | 2013 | 2012 | |||||||||
Income Attributable to Noncontrolling Interests | ||||||||||||
Noncontrolling interests' operations | $ | 40 | $ | 41 | $ | 34 | ||||||
Income tax benefit in Italy (Note 5) | — | 16 | — | |||||||||
Redeemable noncontrolling interests' operations (Note 14) | 12 | 24 | 18 | |||||||||
$ | 52 | $ | 81 | $ | 52 | |||||||
Balance Sheet | ||||||||||||
(Millions of dollars) | 2014 | 2013 | ||||||||||
December 31, | ||||||||||||
Accounts Receivable | ||||||||||||
Trade | $ | 1,746 | $ | 1,815 | ||||||||
Other | 152 | 175 | ||||||||||
1,898 | 1,990 | |||||||||||
Less: allowance for doubtful accounts (b) | (102 | ) | (98 | ) | ||||||||
$ | 1,796 | $ | 1,892 | |||||||||
December 31, | 2014 | 2013 | ||||||||||
Inventories (c) | ||||||||||||
Raw materials and supplies | $ | 200 | $ | 167 | ||||||||
Work in process | 52 | 58 | ||||||||||
Finished goods | 299 | 281 | ||||||||||
$ | 551 | $ | 506 | |||||||||
December 31, | 2014 | 2013 | ||||||||||
Prepaid and Other Current Assets | ||||||||||||
Deferred income taxes (Note 5) | $ | 189 | $ | 181 | ||||||||
Prepaid (d) | 116 | 145 | ||||||||||
Other | 61 | 54 | ||||||||||
$ | 366 | $ | 380 | |||||||||
December 31, | 2014 | 2013 | ||||||||||
Other Long-term Assets | ||||||||||||
Pension assets (Note 16) | $ | 35 | $ | 42 | ||||||||
Insurance contracts (e) | 73 | 73 | ||||||||||
Long-term receivables, net (f) | 43 | 36 | ||||||||||
Deposits | 64 | 62 | ||||||||||
Investments carried at cost | 8 | 7 | ||||||||||
Deferred charges | 114 | 133 | ||||||||||
Deferred income taxes (Note 5) | 98 | 72 | ||||||||||
Other | 114 | 144 | ||||||||||
$ | 549 | $ | 569 | |||||||||
December 31, | 2014 | 2013 | ||||||||||
Other Current Liabilities | ||||||||||||
Accrued expenses | $ | 296 | $ | 291 | ||||||||
Payroll | 177 | 184 | ||||||||||
Cost reduction program (Note 2) | 7 | 15 | ||||||||||
Pension and postretirement (Note 16) | 39 | 33 | ||||||||||
Interest payable | 69 | 62 | ||||||||||
Employee benefit accrual | 22 | 20 | ||||||||||
Severance | 14 | 13 | ||||||||||
Insurance reserves | 9 | 11 | ||||||||||
Other | 285 | 161 | ||||||||||
$ | 918 | $ | 790 | |||||||||
December 31, | 2014 | 2013 | ||||||||||
Other Long-term Liabilities | ||||||||||||
Pension and postretirement (Note 16) | $ | 777 | $ | 498 | ||||||||
Tax liabilities for uncertain tax positions | 57 | 55 | ||||||||||
Interest and penalties for uncertain tax positions (Note 5) | 8 | 12 | ||||||||||
Insurance reserves | 23 | 22 | ||||||||||
Other | 311 | 272 | ||||||||||
$ | 1,176 | $ | 859 | |||||||||
December 31, | 2014 | 2013 | ||||||||||
Deferred Credits | ||||||||||||
Deferred income taxes (Note 5) | $ | 1,198 | $ | 1,205 | ||||||||
Other | 83 | 191 | ||||||||||
$ | 1,281 | $ | 1,396 | |||||||||
December 31, | 2014 | 2013 | ||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Cumulative translation adjustment (includes $64 million and $60 million tax charges in 2014 and 2013, respectively) | ||||||||||||
North America (g) | $ | (553 | ) | $ | (315 | ) | ||||||
South America (g) | (1,510 | ) | (1,179 | ) | ||||||||
Europe (g) | (432 | ) | (63 | ) | ||||||||
Asia | (49 | ) | 21 | |||||||||
Surface Technologies | (7 | ) | 28 | |||||||||
(2,551 | ) | (1,508 | ) | |||||||||
Derivatives – net of taxes | (1 | ) | (4 | ) | ||||||||
Pension/OPEB funded status obligation (net of $342 million and $247 million tax benefits in 2014 and 2013, respectively) (Note 16) | (633 | ) | (469 | ) | ||||||||
$ | (3,185 | ) | $ | (1,981 | ) | |||||||
________________________ | ||||||||||||
(a) | In December 2014, Praxair redeemed $400 million of 5.375% notes due November 2016 for $434 million resulting in a $36 million charge ($22 million after-tax, or $0.07 per diluted share). In December 2013, Praxair redeemed $400 million of 5.25% notes due November 2014 for $418 million resulting in an $18 million charge ($12 million after-tax, or $0.04 per diluted share). | |||||||||||
(b) | Provisions to the allowance for doubtful accounts were $39 million, $38 million, and $29 million in 2014, 2013, and 2012, respectively. The allowance activity in each period related primarily to write-offs of uncollectible amounts, net of recoveries and currency movements. | |||||||||||
(c) | Effective July 1, 2014, Praxair changed its method of accounting for all remaining U.S. operations that were using the last-in, first-out ("LIFO") method to the average-cost method, primarily raw materials. Prior to this change, approximately 6% of consolidated inventories were accounted for under the LIFO method. Praxair applied this change as a cumulative effect adjustment in the third quarter 2014 and did not restate prior periods because the impact was not material. The accounting change increased inventories by $9 million at July 1, 2014. The Company believes the change is preferable because it will better reflect the impact of current costs in both the consolidated balance sheets and consolidated statements of income. Had the Company not changed its accounting method, reported inventory amounts at December 31, 2014 would not have been significantly different than the amount disclosed above at July 1, 2014. | |||||||||||
At December 31, 2013, approximately 6% of total inventories were valued using the LIFO method, all in the United States. If inventories had been valued at current costs, they would have been approximately $9 million higher than reported at December 31, 2013. | ||||||||||||
(d) | Includes estimated income tax payments of $36 million in 2014 and $75 million in 2013. | |||||||||||
(e) | Consists primarily of insurance contracts and other investments to be utilized for non-qualified pension and OPEB obligations. | |||||||||||
(f) | Financing receivables is not normal practice for the company. The balances at December 31, 2014 and 2013 are net of reserves of $48 million and $51 million, respectively. The amounts in both periods relate primarily to government receivables in Brazil and other long-term notes receivable from customers, the majority of which are fully reserved. Collectibility is reviewed regularly and uncollectible amounts are written-off as appropriate. The account balance change during 2014 was primarily the result of additional receivables, net of reserves. | |||||||||||
(g) | North America consists primarily of currency translation adjustments in Canada and Mexico, South America relates primarily to Brazil and Argentina, and Europe relates primarily to Spain and Germany. |
Property_Plant_Equipment_Net
Property, Plant & Equipment - Net | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Property, Plant & Equipment - Net | NOTE 8. PROPERTY, PLANT AND EQUIPMENT – NET | ||||||||||
Significant classes of property, plant and equipment are as follows: | |||||||||||
(Millions of dollars) | Depreciable Lives (Yrs) | 2014 | 2013 | ||||||||
December 31, | |||||||||||
Production plants (primarily 15-year life) (a) | 20-Oct | $ | 14,400 | $ | 14,378 | ||||||
Storage tanks | 15-20 | 2,267 | 2,330 | ||||||||
Transportation equipment and other | 15-Mar | 1,895 | 1,866 | ||||||||
Cylinders (primarily 30-year life) | 30-Oct | 1,724 | 1,740 | ||||||||
Buildings | 25-40 | 1,089 | 1,108 | ||||||||
Land and improvements (b) | 0-20 | 499 | 493 | ||||||||
Construction in progress | 1,980 | 2,116 | |||||||||
23,854 | 24,031 | ||||||||||
Less: accumulated depreciation | (11,857 | ) | (11,753 | ) | |||||||
$ | 11,997 | $ | 12,278 | ||||||||
(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
Goodwill | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Goodwill [Abstract] | ||||||||||||||||||||||||
Goodwill | NOTE 9. GOODWILL | |||||||||||||||||||||||
Changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||
(Millions of dollars) | North | South | Europe | Asia | Surface | Total | ||||||||||||||||||
America | America | Technologies | ||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,499 | $ | 195 | $ | 645 | $ | 25 | $ | 143 | $ | 2,507 | ||||||||||||
Acquisitions (Note 3) | 625 | — | 94 | — | — | 719 | ||||||||||||||||||
Purchase adjustments & other | 3 | — | — | — | — | 3 | ||||||||||||||||||
Foreign currency translation | (10 | ) | (29 | ) | 4 | (1 | ) | 1 | (35 | ) | ||||||||||||||
Balance, December 31, 2013 | $ | 2,117 | $ | 166 | $ | 743 | $ | 24 | $ | 144 | $ | 3,194 | ||||||||||||
Acquisitions (Note 3) | 47 | 4 | 17 | 14 | 4 | 86 | ||||||||||||||||||
Purchase adjustments & other | 1 | — | (6 | ) | — | 5 | — | |||||||||||||||||
Foreign currency translation | (26 | ) | (23 | ) | (100 | ) | — | (10 | ) | (159 | ) | |||||||||||||
Balance, December 31, 2014 | $ | 2,139 | $ | 147 | $ | 654 | $ | 38 | $ | 143 | $ | 3,121 | ||||||||||||
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 2014 test Praxair applied the FASB's updated 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, 2014. |
Other_Intangible_Assets
Other Intangible Assets | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
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, 2014 and 2013: | ||||||||||||||||
(Millions of dollars) | Customer & | Non-compete | Patents | Total | ||||||||||||
For the year ended December 31, 2014 | License/Use | Agreements | & | |||||||||||||
Agreements | Other | |||||||||||||||
Cost: | ||||||||||||||||
Balance, December 31, 2013 | $ | 661 | $ | 31 | $ | 43 | $ | 735 | ||||||||
Additions (primarily acquisitions) | 54 | 12 | — | 66 | ||||||||||||
Foreign currency translation | (22 | ) | (1 | ) | (1 | ) | (24 | ) | ||||||||
Other * | — | (5 | ) | 5 | — | |||||||||||
Balance, December 31, 2014 | 693 | 37 | 47 | 777 | ||||||||||||
Less: accumulated amortization: | ||||||||||||||||
Balance, December 31, 2013 | (118 | ) | (16 | ) | (5 | ) | (139 | ) | ||||||||
Amortization expense | (36 | ) | (7 | ) | (4 | ) | (47 | ) | ||||||||
Foreign currency translation | 7 | — | — | 7 | ||||||||||||
Other * | — | 5 | — | 5 | ||||||||||||
Balance, December 31, 2014 | (147 | ) | (18 | ) | (9 | ) | (174 | ) | ||||||||
Net balance at December 31, 2014 | $ | 546 | $ | 19 | $ | 38 | $ | 603 | ||||||||
(Millions of dollars) | Customer & | Non-compete | Patents | Total | ||||||||||||
For the year ended December 31, 2013 | License/Use | Agreements | & | |||||||||||||
Agreements | Other | |||||||||||||||
Cost: | ||||||||||||||||
Balance, December 31, 2012 | $ | 232 | $ | 37 | $ | 20 | $ | 289 | ||||||||
Additions (primarily acquisitions) | 433 | 4 | 30 | 467 | ||||||||||||
Foreign currency translation | 3 | — | — | 3 | ||||||||||||
Other * | (7 | ) | (10 | ) | (7 | ) | (24 | ) | ||||||||
Balance, December 31, 2013 | 661 | 31 | 43 | 735 | ||||||||||||
Less: accumulated amortization: | ||||||||||||||||
Balance, December 31, 2012 | (89 | ) | (20 | ) | (7 | ) | (116 | ) | ||||||||
Amortization expense | (32 | ) | (6 | ) | (3 | ) | (41 | ) | ||||||||
Foreign currency translation | (1 | ) | — | — | (1 | ) | ||||||||||
Other * | 4 | 10 | 5 | 19 | ||||||||||||
Balance, December 31, 2013 | (118 | ) | (16 | ) | (5 | ) | (139 | ) | ||||||||
Net balance at December 31, 2013 | $ | 543 | $ | 15 | $ | 38 | $ | 596 | ||||||||
________________________ | ||||||||||||||||
* | Other primarily relates to the write-off of fully amortized assets, purchase accounting adjustments and reclassifications. | |||||||||||||||
There are no expected residual values related to these intangible assets. Amortization expense for the years ended December 31, 2014, 2013 and 2012 was $47 million, $41 million and $21 million, respectively. The remaining weighted-average amortization period for intangible assets is approximately 18 years. | ||||||||||||||||
Total estimated annual amortization expense is as follows: | ||||||||||||||||
(Millions of dollars) | ||||||||||||||||
2015 | $ | 49 | ||||||||||||||
2016 | 48 | |||||||||||||||
2017 | 42 | |||||||||||||||
2018 | 37 | |||||||||||||||
2019 | 37 | |||||||||||||||
Thereafter | 390 | |||||||||||||||
$ | 603 | |||||||||||||||
Debt
Debt | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
Debt | NOTE 11. DEBT | |||||||||||||
The following is a summary of Praxair’s outstanding debt at December 31, 2014 and 2013: | ||||||||||||||
(Millions of dollars) | 2014 | 2013 | ||||||||||||
Short-term | ||||||||||||||
Commercial paper and U.S. bank borrowings | $ | 514 | $ | 712 | ||||||||||
Other bank borrowings (primarily international) | 73 | 70 | ||||||||||||
Total short-term debt | 587 | 782 | ||||||||||||
Long-term | ||||||||||||||
U.S. borrowings | ||||||||||||||
4.375% Notes due 2014 (a) | — | 300 | ||||||||||||
4.625% Notes due 2015 (b) | 500 | 500 | ||||||||||||
3.25% Notes due 2015 (b, d) | 408 | 418 | ||||||||||||
0.75% Notes due 2016 | 400 | 400 | ||||||||||||
5.375% Notes due 2016 (a) | — | 400 | ||||||||||||
5.20% Notes due 2017 | 325 | 325 | ||||||||||||
1.05% Notes due 2017 | 400 | 400 | ||||||||||||
1.20% Notes due 2018 | 500 | 500 | ||||||||||||
1.25% Notes due 2018 (c, d) | 481 | 478 | ||||||||||||
4.50% Notes due 2019 (c) | 599 | 598 | ||||||||||||
1.90% Notes due 2019 | 500 | 500 | ||||||||||||
1.50% Euro denominated notes due 2020 (c, e) | 722 | — | ||||||||||||
4.05% Notes due 2021 (c) | 499 | 498 | ||||||||||||
3.00% Notes due 2021 (c) | 497 | 497 | ||||||||||||
2.45% Notes due 2022 (c) | 598 | 598 | ||||||||||||
2.20% Notes due 2022 (c) | 499 | 499 | ||||||||||||
2.70% Notes due 2023 (c) | 499 | 498 | ||||||||||||
1.625% Euro denominated notes due 2025 (c, e) | 599 | — | ||||||||||||
3.55% Notes due 2042 (c) | 466 | 466 | ||||||||||||
Other | 4 | 5 | ||||||||||||
International bank borrowings | 167 | 140 | ||||||||||||
Obligations under capital lease | 8 | 9 | ||||||||||||
8,671 | 8,029 | |||||||||||||
Less: current portion of long-term debt | (2 | ) | (3 | ) | ||||||||||
Total long-term debt | 8,669 | 8,026 | ||||||||||||
Total debt | $ | 9,258 | $ | 8,811 | ||||||||||
________________________ | ||||||||||||||
(a) | In March 2014, Praxair repaid $300 million of 4.375% notes that became due. In December of 2014, Praxair redeemed $400 million of 5.375% notes due November 2016 for $434 million resulting in an $36 million bond redemption charge (see Note 7). | |||||||||||||
(b) | 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. | |||||||||||||
(c) | Amounts are net of unamortized discounts. | |||||||||||||
(d) | December 31, 2014 and 2013 include a $14 million and $22 million fair value increase, respectively, related to hedge accounting. See Note 12 for additional information. | |||||||||||||
(e) | During 2014, Praxair issued the following Euro-denominated notes totaling €1.1 billion: €600 million of 1.50% Euro-denominated notes due 2020 and €500 million of 1.625% Euro-denominated notes due 2025. These debt issuances have been designated as a hedges of the net investment position in European operations where the Euro is the functional currency (see Note 12). The proceeds of this debt issuance were used for general corporate purposes, including acquisitions, repayment of debt and share repurchases under the company's share repurchase program. Since the time the Euro-denominated notes were first issued in March 2014 through December 31, 2014, exchange rate movements have reduced long-term debt by $125 million. | |||||||||||||
On February 5, 2015, Praxair issued $150 million of floating rate notes that bear interest at the Federal funds effective rate plus 0.33% due 2017, $400 million of 2.65% fixed rate notes due 2025 and $200 million of 3.550% fixed rates notes due in 2042. The proceeds will be used for general corporate purposes, including the repayment of outstanding indebtedness. | ||||||||||||||
Credit Facilities | ||||||||||||||
At December 31, 2014, the company has the following major credit facility available for future borrowing: | ||||||||||||||
Millions of dollars | Total | Borrowings | Available for | Expires | ||||||||||
Facility | Outstanding | Borrowing | ||||||||||||
Senior Unsecured | $ | 2,500 | $ | — | $ | 2,500 | Dec-19 | |||||||
In December 2014, the company entered into a $2.5 billion senior unsecured credit facility with a syndicate of major financial institutions. This facility replaced the company's $2.0 billion senior unsecured credit facility which was set to expire in 2016. 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, 2014. | ||||||||||||||
Covenants | ||||||||||||||
Praxair’s $2.5 billion senior unsecured credit facility and long-term debt agreements contain various covenants which may, among other things, restrict the ability of Praxair to merge with another entity, 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, 2014, the actual leverage ratio, as calculated according to the agreement, was 54% 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, 2014 and 2013, the weighted-average interest rate of short-term borrowings outstanding was 0.6% and 0.4%, respectively. | ||||||||||||||
Expected maturities on long-term debt are as follows: | ||||||||||||||
(Millions of dollars) | ||||||||||||||
2015 | $ | 2 | * | |||||||||||
2016 | 407 | |||||||||||||
2017 | 775 | |||||||||||||
2018 | 1,083 | |||||||||||||
2019 | 2,008 | * | ||||||||||||
Thereafter | 4,396 | |||||||||||||
$ | 8,671 | |||||||||||||
________________________ | ||||||||||||||
* $908 million of debt due in 2015 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, 2014, $9 million of Praxair’s assets (principally international fixed assets) were pledged as collateral for $8 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
Financial Instruments | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
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, 2014 and 2013 for consolidated subsidiaries: | ||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
(Millions of dollars) | Notional Amounts | Assets | Liabilities | |||||||||||||||||||||
December 31, | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||
Currency contracts: | ||||||||||||||||||||||||
Balance sheet items (a) | $ | 2,427 | $ | 2,197 | $ | 5 | $ | 4 | $ | 13 | $ | 14 | ||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||
Currency contracts: | ||||||||||||||||||||||||
Forecasted purchases (a) | $ | — | $ | 5 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Interest rate swaps (b) | 875 | 875 | 14 | 22 | — | — | ||||||||||||||||||
Total Hedges | $ | 875 | $ | 880 | $ | 14 | $ | 22 | $ | — | $ | — | ||||||||||||
Total Derivatives | $ | 3,302 | $ | 3,077 | $ | 19 | $ | 26 | $ | 13 | $ | 14 | ||||||||||||
________________________ | ||||||||||||||||||||||||
(a) | Assets are recorded in prepaid and other current assets, and liabilities are recorded in other current liabilities. | |||||||||||||||||||||||
(b) | Assets are recorded in other current and other long term assets. | |||||||||||||||||||||||
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. The fair value adjustments on these contracts are offset by the fair value adjustments recorded on the hedged assets and liabilities. | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Praxair has designated the €600 million ($722 million million as of December 31, 2014)1.50% Euro-denominated notes due 2020 and the €500 million ($599 million as of December 31, 2014) 1.625% Euro-denominated notes due 2025 as hedges 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 the time the Euro-denominated notes were first issued in March 2014 through December 31, 2014, exchange rate movements have reduced long-term debt by $125 million, with the offsetting gain shown within the cumulative translation component of AOCI in the consolidated balance sheets and the consolidated statements of comprehensive income (loss). | ||||||||||||||||||||||||
Interest Rate Contracts | ||||||||||||||||||||||||
Outstanding Interest Rate Swaps | ||||||||||||||||||||||||
At December 31, 2014, Praxair had $875 million notional amount of interest-rate swap agreements outstanding related to the $400 million 3.25% fixed-rate notes that mature in 2015 and the $475 million 1.25% notes that mature 2018, which effectively convert fixed-rate interest to variable-rate interest. These swap agreements were designated as fair value hedges with the resulting fair value adjustments recognized in earnings along with an equally offsetting charge / benefit to earnings for the changes in the fair value of the underlying debt instruments. At December 31, 2014, $14 million was recognized as an increase in the fair value of this note ($22 million at December 31, 2013). | ||||||||||||||||||||||||
Terminated Interest Rate Swaps | ||||||||||||||||||||||||
During 2010, 2011 and 2012 Praxair terminated three interest rate swap agreements which were previously designated as fair value hedges related to fixed-rate notes due in 2012 and 2013. The unrecognized gain existing upon termination of the swaps was received in cash and shown as an increase to the respective long-term notes. This deferred gain was then recognized on a straight-line basis to interest expense – net over the term of the underlying debt agreements. During 2013 and 2012, $4 million and $15 million, respectively, was recognized as a reduction to interest expense – net. | ||||||||||||||||||||||||
Terminated Treasury Rate Locks | ||||||||||||||||||||||||
The following table summarizes the unrecognized gains (losses) related to terminated treasury rate lock contracts: | ||||||||||||||||||||||||
Unrecognized Gain / (Loss) (a) | ||||||||||||||||||||||||
(Millions of dollars) | Year | Original | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Terminated | Gain / (Loss) | |||||||||||||||||||||||
Treasury Rate Locks | ||||||||||||||||||||||||
Underlying debt instrument: | ||||||||||||||||||||||||
$500 million 2.20% fixed-rate notes that mature in 2022 (b) | 2012 | $ | (2 | ) | $ | (1 | ) | $ | (2 | ) | ||||||||||||||
$500 million 3.00% fixed-rate notes that mature in 2021 (b) | 2011 | (11 | ) | (8 | ) | (9 | ) | |||||||||||||||||
$600 million 4.50% fixed-rate notes that mature in 2019 (b) | 2009 | 16 | 8 | 10 | ||||||||||||||||||||
$500 million 4.625% fixed-rate notes that mature in 2015 (b) | 2008 | (7 | ) | — | (1 | ) | ||||||||||||||||||
Total – pre-tax | $ | (1 | ) | $ | (2 | ) | ||||||||||||||||||
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. | |||||||||||||||||||||||
The following table summarizes the impact of the company's derivatives not designated as hedging instruments on the consolidated statements of income: | ||||||||||||||||||||||||
(Millions of dollars) | Amount of Pre-Tax Gain (Loss) | |||||||||||||||||||||||
Recognized in Earnings * | ||||||||||||||||||||||||
December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||
Currency contracts: | ||||||||||||||||||||||||
Balance sheet items: | ||||||||||||||||||||||||
Debt-related | $ | (69 | ) | $ | (46 | ) | $ | 33 | ||||||||||||||||
Other balance sheet items | (2 | ) | (9 | ) | (1 | ) | ||||||||||||||||||
Anticipated net income | — | — | (4 | ) | ||||||||||||||||||||
Total | $ | (71 | ) | $ | (55 | ) | $ | 28 | ||||||||||||||||
* 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: | ||||||||||||||||||||||||
(Millions of dollars) | Amount of Gain (Loss) | |||||||||||||||||||||||
Recognized in AOCI | ||||||||||||||||||||||||
December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||||
Derivatives Designated as Hedging Instruments** | ||||||||||||||||||||||||
Currency contracts: | ||||||||||||||||||||||||
Net Investment hedge | $ | (6 | ) | $ | — | $ | — | |||||||||||||||||
Forecasted purchases | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Treasury rate locks | — | — | (2 | ) | ||||||||||||||||||||
Total – Pre tax | $ | (5 | ) | $ | 1 | $ | (1 | ) | ||||||||||||||||
Less: income taxes | 2 | — | 1 | |||||||||||||||||||||
Total - Net of Taxes | $ | (3 | ) | $ | 1 | $ | — | |||||||||||||||||
** The gains (losses) on net investment hedges are recorded as a component of AOCI within foreign currency translation adjustments in the condensed consolidated balance sheets and condensed consolidated statements of comprehensive income. The gains (losses) on forecasted purchases and treasury rate locks are recorded as a component of AOCI within derivative instruments in the condensed consolidated balance sheets and the condensed consolidated statements of comprehensive income. There was no ineffectiveness for these instruments during 2014 or 2013. 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 less than $1 million are expected to be reclassified to earnings during 2015. |
Fair_Value_Disclosures
Fair Value Disclosures | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
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, 2014 and 2013: | ||||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Derivative assets | $ | — | $ | — | $ | 19 | $ | 26 | $ | — | $ | — | ||||||||||||
Liabilities | ||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | 13 | $ | 14 | $ | — | $ | — | ||||||||||||
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, 2014, the estimated fair value of Praxair’s long-term debt portfolio was $8,753 million versus a carrying value of $8,671 million. At December 31, 2013, the estimated fair value of Praxair’s long-term debt portfolio was $7,976 million versus a carrying value of $8,029 million. These differences are attributable to interest-rate changes subsequent to when the debt was issued. | ||||||||||||||||||||||||
Assets Measured at Fair Value on a Non-Recurring Basis | ||||||||||||||||||||||||
At December 31, 2014 in connection with the adoption of the SICAD II currency exchange system in Venezuela, Praxair reduced the value of certain assets in Venezuela, primarily long-lived assets, to estimated fair value which resulted in a $63 million pre-tax charge to income (see Note 2). | ||||||||||||||||||||||||
During the first quarter 2012, the company reduced the value of certain assets in Brazil, Colombia and Chile to estimated fair value which resulted in a $21 million pre-tax charge to other income (expense) – net. | ||||||||||||||||||||||||
The above fair value measurements were based on internal assessments of the best information available about the local business conditions and political environment, including the impact of foreign currency exchange restrictions that would be indicative of what the assets could be sold for and are considered to be Level 3 measurements. |
Equity_and_Redeemable_Noncontr
Equity and Redeemable Noncontrolling Interests | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity And Noncontrolling Interests Disclosure [Abstract] | ||||||||||||
Equity And Noncontrolling Interests Disclosure [Text Block] | NOTE 14. EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS | |||||||||||
Praxair, Inc. Shareholders’ Equity | ||||||||||||
At December 31, 2014 and 2013, 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 289,261,608 were outstanding at December 31, 2014 (294,133,864 were outstanding at December 31, 2013). | ||||||||||||
At December 31, 2014 and 2013, 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. | ||||||||||||
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. | ||||||||||||
During 2011, Praxair acquired a controlling interest in Yara Praxair, a joint venture in Scandinavia that was previously accounted for as an equity investment (see Note 3). As part of the transaction, the noncontrolling shareholder obtained the right to sell its shares to Praxair starting in the first quarter 2015 for a period of 4 years at a formula price. Praxair also obtained the right to purchase the shares held by the noncontrolling shareholder starting in 2017 for a period of 2 years, also at a formula price. Accordingly, the noncontrolling interests related to Yara Praxair have been recorded in the consolidated balance sheets as redeemable noncontrolling interests. Other redeemable noncontrolling interests relate to three packaged gas distributors in the United States where the noncontrolling shareholders have put options. | ||||||||||||
The following is a summary of redeemable noncontrolling interests for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | |||||||||
Beginning Balance | $ | 307 | $ | 252 | $ | 220 | ||||||
Net income | 12 | 24 | 18 | |||||||||
Distributions to noncontrolling interest | (9 | ) | (11 | ) | (9 | ) | ||||||
Redemption value adjustment/accretion | 2 | 53 | 13 | |||||||||
Foreign currency translation and other | (24 | ) | (11 | ) | 10 | |||||||
Purchase of noncontrolling interest * | (112 | ) | — | — | ||||||||
Ending Balance | $ | 176 | $ | 307 | $ | 252 | ||||||
* In January 2014, Praxair acquired the noncontrolling interests related to Praxair Distribution Mid-Atlantic, LLC. The cash payment is shown in the financing section of the condensed consolidated statements of cash flows under the caption "Noncontrolling interest transactions and other". |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Share-Based Compensation | NOTE 15. SHARE-BASED COMPENSATION | |||||||||||||
Share-based compensation expense was $51 million in 2014, and $70 million in each of 2013 and 2012. The related income tax benefit recognized was $14 million in 2014, and $21 million in each of 2013 and 2012. The share-based compensation 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, 2014, 7,982,085 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. | ||||||||||||||
The company has the ability to repurchase shares on the open market to satisfy share option exercises and issues shares from treasury stock upon the exercise of certain stock options. | ||||||||||||||
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 for pro forma disclosures 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 2014 was $14.62 per option ($16.31 in 2013 and $17.43 in 2012) based on the Black-Scholes Options-Pricing model. The following weighted-average assumptions were used for grants in 2014, 2013 and 2012: | ||||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | |||||||||||
Dividend yield | 2 | % | 2.2 | % | 2 | % | ||||||||
Volatility | 15.2 | % | 21.7 | % | 22.5 | % | ||||||||
Risk-free interest rate | 1.57 | % | 0.76 | % | 0.86 | % | ||||||||
Expected term years | 5 | 5 | 5 | |||||||||||
The following table summarizes option activity under the plans for 2014 (averages are calculated on a weighted basis; life in years; intrinsic value expressed in millions): | ||||||||||||||
Activity | Number of | Average | Average | Aggregate | ||||||||||
Options | Exercise | Remaining | Intrinsic | |||||||||||
(000’s) | Price | Life | Value | |||||||||||
Outstanding at January 1, 2014 | 11,161 | $ | 81.42 | |||||||||||
Granted | 1,293 | 128.8 | ||||||||||||
Exercised | (1,380 | ) | 63.39 | |||||||||||
Cancelled or expired | (93 | ) | 110.68 | |||||||||||
Outstanding at December 31, 2014 | 10,981 | $ | 89.02 | 5.3 | $ | 445 | ||||||||
Exercisable at December 31, 2014 | 8,400 | $ | 79.74 | 4.3 | $ | 418 | ||||||||
The aggregate intrinsic value represents the difference between the company’s closing stock price of $129.56 as of December 31, 2014 and the exercise price multiplied by the number of options outstanding as of that date. The total intrinsic value of stock options exercised during 2014 was $93 million ($143 million and $165 million for 2013 and 2012, respectively). | ||||||||||||||
Cash received from option exercises under all share-based payment arrangements for 2014 was $88 million . The cash tax benefit realized from all share-based compensation totaled $48 million for 2014, of which $31 million in excess tax benefits was classified as financing cash flows. | ||||||||||||||
As of December 31, 2014, $18 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 2014, the company granted performance-based stock awards under the 2009 Plans to senior level executives of 328,082 shares that vest, subject to the attainment of pre-established minimum performance criteria, principally on the third anniversary of their date of grant. 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 will be adjusted during the three-year performance period based upon the estimated performance levels that will be achieved. | ||||||||||||||
There were 94,988 restricted stock units granted to employees during 2014. 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. Generally, restricted stock does not earn quarterly dividends while vesting. Compensation expense related to the restricted stock units and restricted stock is recognized on a straight-line basis over the vesting period. | ||||||||||||||
The weighted-average fair value of performance-based stock units granted during 2014 was $121.16 per unit ($103.46 in 2013 and $103.13 in 2012). The weighted-average fair value of restricted stock units granted during 2014 was $122.55 per unit ($105.79 in 2013 and $104.71 in 2012). This is based on the closing market price of the company’s common stock on the grant date adjusted for dividends that will not be paid during the vesting period. | ||||||||||||||
The following table summarizes non-vested performance-based and restricted stock award activity as of December 31, 2014 and changes during the period then ended (shares based on target amounts, averages are calculated on a weighted basis): | ||||||||||||||
Performance-Based | Restricted Stock | |||||||||||||
Performance-Based and Restricted Stock Activity | Number of | Average | Number of | Average | ||||||||||
Shares | Grant Date | Shares | Grant Date | |||||||||||
(000’s) | Fair Value | (000’s) | Fair Value | |||||||||||
Non-vested at January 1, 2014 | 867 | $ | 99.55 | 337 | $ | 100.41 | ||||||||
Granted (a) | 328 | 121.16 | 95 | 122.55 | ||||||||||
Vested | (338 | ) | 92.06 | (109 | ) | 96.02 | ||||||||
Cancelled | (24 | ) | 110.27 | (16 | ) | 104.61 | ||||||||
Non-vested at December 31, 2014 | 833 | $ | 109.09 | 307 | $ | 106.63 | ||||||||
(a) | Performance-based stock unit ("PSU") grants during 2014 include 49 thousand shares relating to the actual payout of the 2011 PSU grants in 2014. | |||||||||||||
As of December 31, 2014, based on current estimates of future performance, $32 million of unrecognized compensation cost related to performance-based awards and $14 million of unrecognized compensation cost related to the restricted stock awards is expected to be recognized on a straight-line basis primarily through the first quarter of 2017. |
Retirement_Programs
Retirement Programs | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
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 ("MEP") pursuant to the terms of collective bargaining agreements covering approximately 200 union-represented employees. The collective bargaining agreements expire on different dates through 2019. 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 2014 and 2013, and $1 million in 2012 (the cost is 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 2013 and 2012. Total 2014 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 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, 2014, 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 US 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 $26 million in 2014, $25 million in 2013 and $24 million in 2012 (the cost is not included in the tables that follow). | ||||||||||||||||||||||||||||||||
The defined contribution plans includes 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 two ESOPs totaled 3,053,710 at December 31, 2014. | ||||||||||||||||||||||||||||||||
Certain international subsidiaries of the company also sponsor defined contribution plans where contributions are determined under various formulas. The expense for these plans was $17 million in 2014 and 2013, and $12 million in 2012 (the expense is 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 2014, 2013 and 2012 are shown below: | ||||||||||||||||||||||||||||||||
(Millions of dollars) | Pensions | OPEB | ||||||||||||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Service cost | $ | 49 | $ | 56 | $ | 49 | $ | 4 | $ | 5 | $ | 4 | ||||||||||||||||||||
Interest cost | 121 | 112 | 119 | 11 | 11 | 12 | ||||||||||||||||||||||||||
Expected return on plan assets | (155 | ) | (149 | ) | (153 | ) | — | — | — | |||||||||||||||||||||||
Net amortization and deferral | 60 | 91 | 68 | (8 | ) | (5 | ) | (7 | ) | |||||||||||||||||||||||
Net periodic benefit cost before pension settlement charges | $ | 75 | $ | 110 | $ | 83 | $ | 7 | $ | 11 | $ | 9 | ||||||||||||||||||||
Pension settlement charges * | 7 | 9 | 10 | — | — | — | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | 82 | $ | 119 | $ | 93 | $ | 7 | $ | 11 | $ | 9 | ||||||||||||||||||||
* 2014 includes a $7 millions charge in the fourth quarter related to one-time lump sum benefit payment of vested pension benefits to certain former employees. 2012 and 2013 includes a $9 million charge in the third quarter primarily related 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, 2014 and 2013 are shown below: | ||||||||||||||||||||||||||||||||
(Millions of dollars) | Pensions | |||||||||||||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | OPEB | |||||||||||||||||||||||||||||
U.S. | International | U.S. | International | 2014 | 2013 | |||||||||||||||||||||||||||
Change in Benefit Obligation ("PBO") | ||||||||||||||||||||||||||||||||
Benefit obligation January 1 | $ | 1,791 | $ | 661 | $ | 1,926 | $ | 727 | $ | 208 | $ | 251 | ||||||||||||||||||||
Service cost | 34 | 15 | 38 | 18 | 4 | 5 | ||||||||||||||||||||||||||
Interest cost | 85 | 36 | 74 | 38 | 11 | 11 | ||||||||||||||||||||||||||
Participant contributions | — | — | — | — | 10 | 11 | ||||||||||||||||||||||||||
Actuarial loss (gain) | 276 | 109 | (148 | ) | (43 | ) | (21 | ) | (39 | ) | ||||||||||||||||||||||
Benefits paid | (136 | ) | (35 | ) | (99 | ) | (38 | ) | (25 | ) | (23 | ) | ||||||||||||||||||||
Divestiture | — | (1 | ) | — | — | — | — | |||||||||||||||||||||||||
Foreign currency translation | — | (66 | ) | — | (41 | ) | (7 | ) | (8 | ) | ||||||||||||||||||||||
Benefit obligation, December 31 | $ | 2,050 | $ | 719 | $ | 1,791 | $ | 661 | $ | 180 | $ | 208 | ||||||||||||||||||||
Accumulated benefit obligation ("ABO") | $ | 1,944 | $ | 681 | $ | 1,712 | $ | 629 | ||||||||||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||||||||||
Fair value of plan assets, January 1 | $ | 1,620 | $ | 551 | $ | 1,391 | $ | 558 | $ | — | $ | — | ||||||||||||||||||||
Actual return on plan assets | 108 | 76 | 271 | 43 | — | — | ||||||||||||||||||||||||||
Company contributions | 2 | 16 | 35 | 17 | — | — | ||||||||||||||||||||||||||
Benefits paid from plan assets | (123 | ) | (30 | ) | (77 | ) | (33 | ) | — | — | ||||||||||||||||||||||
Foreign currency translation | — | (52 | ) | — | (34 | ) | — | — | ||||||||||||||||||||||||
Fair value of plan assets, December 31 | $ | 1,607 | $ | 561 | $ | 1,620 | $ | 551 | $ | — | $ | — | ||||||||||||||||||||
Funded Status, End of Year | $ | (443 | ) | $ | (158 | ) | $ | (171 | ) | $ | (110 | ) | $ | (180 | ) | $ | (208 | ) | ||||||||||||||
Recorded in the Balance Sheet | ||||||||||||||||||||||||||||||||
Other long-term assets | $ | — | $ | 35 | $ | — | $ | 42 | $ | — | $ | — | ||||||||||||||||||||
Other current liabilities | (18 | ) | (5 | ) | (10 | ) | (6 | ) | (16 | ) | (17 | ) | ||||||||||||||||||||
Other long-term liabilities | (425 | ) | (188 | ) | (161 | ) | (146 | ) | (164 | ) | (191 | ) | ||||||||||||||||||||
Net amount recognized, December 31 | $ | (443 | ) | $ | (158 | ) | $ | (171 | ) | $ | (110 | ) | $ | (180 | ) | $ | (208 | ) | ||||||||||||||
Amounts recognized in accumulated other comprehensive income (loss) consist of: | ||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 792 | $ | 193 | $ | 563 | $ | 145 | $ | (24 | ) | $ | (7 | ) | ||||||||||||||||||
Prior service cost (credit) | — | 15 | 1 | 18 | (1 | ) | (4 | ) | ||||||||||||||||||||||||
Deferred tax benefit (Note 5) | (303 | ) | (50 | ) | (215 | ) | (38 | ) | 11 | 6 | ||||||||||||||||||||||
Amount recognized in accumulated other comprehensive income (loss) (Note 7) | $ | 489 | $ | 158 | $ | 349 | $ | 125 | $ | (14 | ) | $ | (5 | ) | ||||||||||||||||||
The changes in plan assets and benefit obligations recognized in other comprehensive income in 2014 and 2013 are as follows: | ||||||||||||||||||||||||||||||||
Pensions | OPEB | |||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Current year net actuarial losses (gains)* | $ | 356 | $ | (356 | ) | $ | (21 | ) | $ | (39 | ) | |||||||||||||||||||||
Amortization of net actuarial gains (losses) | (59 | ) | (90 | ) | 2 | (1 | ) | |||||||||||||||||||||||||
Amortization of prior service credits (costs) | (1 | ) | (1 | ) | 6 | 6 | ||||||||||||||||||||||||||
Pension settlements (Note 2) | (7 | ) | (9 | ) | — | — | ||||||||||||||||||||||||||
Foreign currency translation and other | (16 | ) | (12 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||
Total recognized in other comprehensive income | $ | 273 | $ | (468 | ) | $ | (14 | ) | $ | (35 | ) | |||||||||||||||||||||
________________________ | ||||||||||||||||||||||||||||||||
* | The pension net actuarial losses in 2014 relates primarily to the decrease in discount rates, when compared to 2013 and updated mortality assumptions. The pension net actuarial gain in 2013 relates primarily to the increase in discount rates, when compared to 2012. The OPEB net actuarial gains in 2014 relates primarily to favorable plan experience, and the 2013 net actuarial gain relates primarily to higher discount rates. | |||||||||||||||||||||||||||||||
The amounts in accumulated other comprehensive income (loss) that are expected to be recognized as components of net periodic benefit cost during 2015 are as follows: | ||||||||||||||||||||||||||||||||
(Millions of dollars) | Pension | OPEB | ||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 82 | $ | (3 | ) | |||||||||||||||||||||||||||
Prior service cost (credit) | 1 | — | ||||||||||||||||||||||||||||||
$ | 83 | $ | (3 | ) | ||||||||||||||||||||||||||||
The following table provides information for pension plans where the accumulated benefit obligation exceeds the fair value of the plan assets: | ||||||||||||||||||||||||||||||||
(Millions of dollars) | Pensions | |||||||||||||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | ||||||||||||||||||||||||||||||
U.S. | International | U.S.* | International | |||||||||||||||||||||||||||||
Projected benefit obligation ("PBO") | $ | 2,050 | $ | 428 | $ | 244 | $ | 360 | ||||||||||||||||||||||||
Accumulated benefit obligation ("ABO") | $ | 1,944 | $ | 412 | $ | 241 | $ | 352 | ||||||||||||||||||||||||
Fair value of plan assets | $ | 1,607 | $ | 234 | $ | 127 | $ | 207 | ||||||||||||||||||||||||
* In 2013, plan assets related to the main U.S. retirement program exceeded the ABO by $23 million and was therefore excluded from the table above. | ||||||||||||||||||||||||||||||||
Assumptions | ||||||||||||||||||||||||||||||||
The assumptions used to determine the benefit obligations are as of the respective balance sheet date and the assumptions used to determine the net benefit cost are at the previous year-end, as shown below: | ||||||||||||||||||||||||||||||||
Pensions | ||||||||||||||||||||||||||||||||
U.S. | International | OPEB | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||
Weighted average assumptions used to determine benefit obligations at December 31, | ||||||||||||||||||||||||||||||||
Discount rate | 3.95 | % | 4.8 | % | 5.36 | % | 6.3 | % | 4.48 | % | 5.87 | % | ||||||||||||||||||||
Rate of increase in compensation levels | 3.25 | % | 3.25 | % | 3.72 | % | 4 | % | N/A | N/A | ||||||||||||||||||||||
Weighted average assumptions used to determine net periodic benefit cost for years ended December 31, | ||||||||||||||||||||||||||||||||
Discount rate | 4.8 | % | 3.9 | % | 6.3 | % | 5.8 | % | 5.87 | % | 5 | % | ||||||||||||||||||||
Rate of increase in compensation levels | 3.25 | % | 3.25 | % | 4 | % | 4 | % | N/A | N/A | ||||||||||||||||||||||
Expected long-term rate of return on plan assets * | 8 | % | 8 | % | 8.1 | % | 7.5 | % | N/A | N/A | ||||||||||||||||||||||
________________________ | ||||||||||||||||||||||||||||||||
* | 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, 2014 were approximately 6.2% and 8.2%, respectively. For the international plan assets, the actual annualized total returns for the same two periods were approximately 8.3% and 9.7%, 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 2015, 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 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Healthcare cost trend assumed | 7.5 | % | 8 | % | ||||||||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | ||||||||||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2020 | 2020 | ||||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||||||
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 | $ | 3 | $ | (2 | ) | |||||||||||||||||||||||||||
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, 2014 and 2013, and the target asset allocation range for 2014, by major asset category are as follows: | ||||||||||||||||||||||||||||||||
U.S. | International | |||||||||||||||||||||||||||||||
Asset Category | Target | 2014 | 2013 | Target | 2014 | 2013 | ||||||||||||||||||||||||||
Equity securities | 50%-70% | 65 | % | 70 | % | 30%-50% | 49 | % | 48 | % | ||||||||||||||||||||||
Fixed income securities | 20%-40% | 28 | % | 30 | % | 40%-60% | 42 | % | 43 | % | ||||||||||||||||||||||
Other | 2% - 10% | 7 | % | — | 0%-10% | 9 | % | 9 | % | |||||||||||||||||||||||
The following table summarizes pension assets measured at fair value by asset category at December 31, 2014 and 2013. During the years presented, there has been no transfer of assets between Levels 1, 2 & 3 (see Note 13 for definition of the levels): | ||||||||||||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 * | Total | |||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | 2 | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | 2 | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
U.S. equities | 340 | 285 | — | — | — | — | 340 | 285 | ||||||||||||||||||||||||
International equities | 82 | 82 | — | — | — | — | 82 | 82 | ||||||||||||||||||||||||
Mutual funds | 330 | 393 | — | — | — | — | 330 | 393 | ||||||||||||||||||||||||
Pooled funds | — | — | 565 | 630 | — | — | 565 | 630 | ||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||
U.S. government bonds | — | — | 44 | 39 | — | — | 44 | 39 | ||||||||||||||||||||||||
International government bonds | — | — | 125 | 128 | — | — | 125 | 128 | ||||||||||||||||||||||||
Mutual funds | 253 | 308 | — | — | — | — | 253 | 308 | ||||||||||||||||||||||||
Corporate bonds | — | — | 175 | 176 | — | — | 175 | 176 | ||||||||||||||||||||||||
Pooled funds | — | — | 90 | 80 | — | — | 90 | 80 | ||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||
Insurance contracts | — | — | — | — | 53 | 48 | 53 | 48 | ||||||||||||||||||||||||
Real Estate Funds | — | — | — | — | 110 | — | 110 | — | ||||||||||||||||||||||||
Fair value of plan assets, December 31, | $ | 1,006 | $ | 1,070 | $ | 999 | $ | 1,053 | $ | 163 | $ | 48 | $ | 2,168 | $ | 2,171 | ||||||||||||||||
________________________ | ||||||||||||||||||||||||||||||||
* | The following table summarizes changes in fair value of the pension plan assets classified as level 3 for the periods ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||
(Millions of dollars) | Insurance | Real Estate Funds | Total | |||||||||||||||||||||||||||||
Contracts | ||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 48 | $ | — | $ | 48 | ||||||||||||||||||||||||||
Gain or losses for the period | — | — | — | |||||||||||||||||||||||||||||
Balance, December 31, 2013 | 48 | — | 48 | |||||||||||||||||||||||||||||
Gain for the period | 12 | 10 | 22 | |||||||||||||||||||||||||||||
Acquisitions | — | 100 | 100 | |||||||||||||||||||||||||||||
Foreign currency translation | (7 | ) | — | (7 | ) | |||||||||||||||||||||||||||
Balance, December 31, 2014 | $ | 53 | $ | 110 | $ | 163 | ||||||||||||||||||||||||||
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 and Pooled Funds – This category consists 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. Units of pooled funds are valued at the per unit net asset value determined by the fund manager and are classified as level 2 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 flow. 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 $18 million in 2014, $52 million in 2013 and $184 million in 2012. Estimated required contributions for 2015 are currently expected to be in the area of $15 million. | ||||||||||||||||||||||||||||||||
Estimated Future Benefit Payments | ||||||||||||||||||||||||||||||||
The following table presents estimated future benefit payments, net of participants contributions: | ||||||||||||||||||||||||||||||||
(Millions of dollars) | Pensions | |||||||||||||||||||||||||||||||
Year Ended December 31, | U.S. | International | OPEB | |||||||||||||||||||||||||||||
2015 | $ | 105 | $ | 36 | $ | 17 | ||||||||||||||||||||||||||
2016 | 101 | 36 | 16 | |||||||||||||||||||||||||||||
2017 | 106 | 37 | 16 | |||||||||||||||||||||||||||||
2018 | 111 | 38 | 15 | |||||||||||||||||||||||||||||
2019 | 117 | 39 | 15 | |||||||||||||||||||||||||||||
2020-2024 | 625 | 211 | 68 | |||||||||||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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. However, 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: | ||||||||||||
• | 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. Although it is difficult to estimate the timing of resolution of legal matters in Brazil, it is possible that individual disputed matters may be resolved during the next year. | |||||||||||
• | At December 31, 2014 the most significant non-income and income tax claims in Brazil, after enrollment in the Refis Program, relate to state VAT tax matters associated with procedural issues 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 $180 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$828 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$640 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. | |||||||||||
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. Currently, 50% of the guarantee is satisfied by letters of credit with a financial institution and 50% of the guarantee is satisfied by equity of a Brazilian subsidiary. | ||||||||||||
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. | ||||||||||||
Contingent Asset - Resolution | ||||||||||||
Praxair's Brazilian-based subsidiary, White Martins, had a long-standing claim against a Brazilian power company, Bandeirante Energia SA, which had been successfully litigated, and in 2011 the courts released a cash deposit to White Martins, subject to completion of an appeal process. During the first quarter of 2012, White Martins was notified that the appeal process was favorably concluded, and accordingly, recognized a $24 million gain to other income (expense), net of legal fees and another litigation matter. | ||||||||||||
Commitments and Contractual Obligations | ||||||||||||
The following table sets forth Praxair’s material commitments and contractual obligations as of December 31, 2014, 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, 7, 11, and 16): | ||||||||||||
(Millions of dollars) | Unconditional | Construction | Guarantees | |||||||||
Expiring through December 31, | Purchase | Commitments | and Other | |||||||||
Obligations | ||||||||||||
2015 | $ | 543 | $ | 954 | $ | 12 | ||||||
2016 | 491 | 404 | 59 | |||||||||
2017 | 460 | 27 | — | |||||||||
2018 | 445 | — | — | |||||||||
2019 | 393 | — | — | |||||||||
Thereafter | 3,021 | — | — | |||||||||
$ | 5,353 | $ | 1,385 | $ | 71 | |||||||
Unconditional purchase obligations of $5,353 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 2014, payments related to Praxair's unconditional purchase obligations totaled $1,021 million, including $481 million for electricity and $225 million for natural gas. Approximately $3,550 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 which the company believes could reduce the reported obligation significantly, if desired, 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 $142 million as of December 31, 2014. Since this contract was signed, the market for silane has not developed as expected and prices have decreased due to lower demand from the photovoltaics markets, primarily in Asia. At December 31, 2014, Praxair's current selling prices and estimated future demand for silane are in excess of its contractual purchase obligations under the contract. The company is continually monitoring market developments. | ||||||||||||
Construction commitments of $1,385 million represent outstanding commitments to complete authorized construction projects as of December 31, 2014. 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. | ||||||||||||
Guarantees and other of $71 million include $70 million related to Praxair’s contingent obligations under guarantees of certain debt of unconsolidated affiliates and $1 million of various guarantees relating to outstanding receivables and repurchase agreements. Unconsolidated equity investees had total debt of approximately $245 million at December 31, 2014, which was non-recourse to Praxair with the exception of the guaranteed portions described above. Praxair has no significant financing arrangements with closely-held related parties. | ||||||||||||
At December 31, 2014, Praxair had undrawn outstanding letters of credit, bank guarantees and surety bonds valued at approximately $1,240 million from financial institutions, including $524 million relating to the CADE anti-trust litigation in Brazil. 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. |
Segments
Segments | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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, 2014, 2013 and 2012. | ||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | |||||||||
Sales (a) | ||||||||||||
North America | $ | 6,436 | $ | 6,164 | $ | 5,598 | ||||||
Europe | 1,546 | 1,542 | 1,474 | |||||||||
South America | 1,993 | 2,042 | 2,082 | |||||||||
Asia | 1,619 | 1,525 | 1,414 | |||||||||
Surface Technologies | 679 | 652 | 656 | |||||||||
$ | 12,273 | $ | 11,925 | $ | 11,224 | |||||||
2014 | 2013 | 2012 | ||||||||||
Operating Profit | ||||||||||||
North America | $ | 1,580 | $ | 1,538 | $ | 1,465 | ||||||
Europe | 291 | 270 | 256 | |||||||||
South America | 449 | 467 | 429 | |||||||||
Asia | 303 | 271 | 246 | |||||||||
Surface Technologies | 123 | 111 | 106 | |||||||||
Segment operating profit | 2,746 | 2,657 | 2,502 | |||||||||
Venezuela currency devaluation and other charges (Note 2) | (138 | ) | (32 | ) | (65 | ) | ||||||
Total operating profit | $ | 2,608 | $ | 2,625 | $ | 2,437 | ||||||
2014 | 2013 | 2012 | ||||||||||
Total Assets (b) | ||||||||||||
North America | $ | 10,205 | $ | 10,133 | $ | 8,491 | ||||||
Europe | 3,000 | 3,408 | 2,957 | |||||||||
South America | 2,723 | 2,934 | 3,205 | |||||||||
Asia | 3,198 | 3,098 | 2,757 | |||||||||
Surface Technologies | 676 | 682 | 680 | |||||||||
$ | 19,802 | $ | 20,255 | $ | 18,090 | |||||||
(Millions of dollars) | 2014 | 2013 | 2012 | |||||||||
Depreciation and Amortization | ||||||||||||
North America | $ | 611 | $ | 567 | $ | 498 | ||||||
Europe | 168 | 169 | 149 | |||||||||
South America | 177 | 181 | 184 | |||||||||
Asia | 170 | 150 | 127 | |||||||||
Surface Technologies | 44 | 42 | 43 | |||||||||
$ | 1,170 | $ | 1,109 | $ | 1,001 | |||||||
2014 | 2013 | 2012 | ||||||||||
Capital Expenditures and Acquisitions | ||||||||||||
North America | $ | 837 | $ | 2,106 | $ | 1,303 | ||||||
Europe | 319 | 451 | 322 | |||||||||
South America | 373 | 284 | 351 | |||||||||
Asia | 310 | 459 | 431 | |||||||||
Surface Technologies | 56 | 43 | 53 | |||||||||
$ | 1,895 | $ | 3,343 | $ | 2,460 | |||||||
2014 | 2013 | 2012 | ||||||||||
Sales by Product Group | ||||||||||||
Atmospheric gases and related | $ | 8,623 | $ | 8,451 | $ | 8,104 | ||||||
Process gases and other | 2,971 | 2,822 | 2,464 | |||||||||
Surface technologies | 679 | 652 | 656 | |||||||||
$ | 12,273 | $ | 11,925 | $ | 11,224 | |||||||
2014 | 2013 | 2012 | ||||||||||
Sales by Major Country | ||||||||||||
United States | $ | 5,171 | $ | 4,764 | $ | 4,305 | ||||||
Brazil | 1,511 | 1,603 | 1,668 | |||||||||
Other – foreign | 5,591 | 5,558 | 5,251 | |||||||||
$ | 12,273 | $ | 11,925 | $ | 11,224 | |||||||
2014 | 2013 | 2012 | ||||||||||
Long-lived Assets by Major Country (c) | ||||||||||||
United States | $ | 4,817 | $ | 4,723 | $ | 4,255 | ||||||
Brazil | 1,344 | 1,376 | 1,535 | |||||||||
Other – foreign | 5,836 | 6,179 | 5,663 | |||||||||
$ | 11,997 | $ | 12,278 | $ | 11,453 | |||||||
________________________ | ||||||||||||
(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) | 2014 | 2013 | 2012 | |||||||||
North America | $ | 132 | $ | 128 | $ | 135 | ||||||
Europe | 207 | 218 | 199 | |||||||||
Asia | 354 | 356 | 320 | |||||||||
$ | 693 | $ | 702 | $ | 654 | |||||||
Changes primarily relate to equity investment earnings, dividends and currency impacts. | ||||||||||||
(c) | Long-lived assets include property, plant and equipment – net. |
Quarterly_Data
Quarterly Data | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Quarterly Data (Unaudited) | NOTE 19. QUARTERLY DATA (UNAUDITED) | |||||||||||||||||||
(Dollar amounts in millions, except per share data) | ||||||||||||||||||||
2014 | 1Q | 2Q | 3Q | 4Q (a) | YEAR (a) | |||||||||||||||
Sales | $ | 3,026 | $ | 3,113 | $ | 3,144 | $ | 2,990 | $ | 12,273 | ||||||||||
Cost of sales, exclusive of depreciation and amortization | $ | 1,726 | $ | 1,767 | $ | 1,780 | $ | 1,689 | $ | 6,962 | ||||||||||
Depreciation and amortization | $ | 285 | $ | 293 | $ | 301 | $ | 291 | $ | 1,170 | ||||||||||
Operating profit | $ | 675 | $ | 697 | $ | 711 | $ | 525 | 2,608 | |||||||||||
Net income – Praxair, Inc. | $ | 448 | $ | 467 | $ | 477 | $ | 302 | $ | 1,694 | ||||||||||
Basic Per Share Data | ||||||||||||||||||||
Net income | $ | 1.52 | $ | 1.59 | $ | 1.63 | $ | 1.04 | $ | 5.79 | ||||||||||
Weighted average shares (000’s) | 294,195 | 292,945 | 292,170 | 290,667 | 292,494 | |||||||||||||||
Diluted Per Share Data | ||||||||||||||||||||
Net income | $ | 1.51 | $ | 1.58 | $ | 1.62 | $ | 1.03 | $ | 5.73 | ||||||||||
Weighted average shares (000’s) | 297,253 | 295,976 | 295,239 | 293,555 | 295,608 | |||||||||||||||
2013 | 1Q (a) | 2Q | 3Q (a) | 4Q (a) | YEAR (a) | |||||||||||||||
Sales | $ | 2,888 | $ | 3,014 | $ | 3,013 | $ | 3,010 | $ | 11,925 | ||||||||||
Cost of sales, exclusive of depreciation and amortization | $ | 1,638 | $ | 1,710 | $ | 1,697 | $ | 1,699 | $ | 6,744 | ||||||||||
Depreciation and amortization | $ | 266 | $ | 275 | $ | 281 | $ | 287 | $ | 1,109 | ||||||||||
Operating profit | $ | 600 | $ | 665 | $ | 670 | $ | 690 | $ | 2,625 | ||||||||||
Net income – Praxair, Inc. | $ | 391 | $ | 445 | $ | 445 | $ | 474 | $ | 1,755 | ||||||||||
Basic Per Share Data | ||||||||||||||||||||
Net income | $ | 1.32 | $ | 1.5 | $ | 1.51 | $ | 1.61 | $ | 5.94 | ||||||||||
Weighted average shares (000’s) | 296,604 | 295,668 | 295,124 | 294,697 | 295,523 | |||||||||||||||
Diluted Per Share Data | ||||||||||||||||||||
Net income | $ | 1.3 | $ | 1.49 | $ | 1.49 | $ | 1.59 | $ | 5.87 | ||||||||||
Weighted average shares (000’s) | 299,700 | 298,654 | 298,357 | 298,225 | 298,965 | |||||||||||||||
________________________ | ||||||||||||||||||||
(a) | 2014 and 2013 include the impact of the following benefits/(charges) (see Notes 2, 5 & 7): | |||||||||||||||||||
(Millions of dollars) | Operating | Net | Diluted Earnings Per Share | |||||||||||||||||
Profit/ | Income/ | |||||||||||||||||||
(Loss) | (Loss) | |||||||||||||||||||
Venezuela currency devaluation - Q4 | $ | (131 | ) | $ | (131 | ) | $ | (0.45 | ) | |||||||||||
Pension settlement charge - Q4 | (7 | ) | (5 | ) | (0.02 | ) | ||||||||||||||
Bond redemption -Q4 | — | (22 | ) | (0.07 | ) | |||||||||||||||
Year 2014 | $ | (138 | ) | $ | (158 | ) | $ | (0.54 | ) | |||||||||||
Venezuela currency devaluation – Q1 | $ | (23 | ) | $ | (23 | ) | $ | (0.08 | ) | |||||||||||
Pension settlement charge – Q3 | (9 | ) | (6 | ) | (0.02 | ) | ||||||||||||||
Income tax benefit - Q4 | — | 24 | 0.08 | |||||||||||||||||
Bond redemption - Q4 | — | (12 | ) | (0.04 | ) | |||||||||||||||
Year 2013 | $ | (32 | ) | $ | (17 | ) | $ | (0.06 | ) |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
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. | |
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. Operations less than 20% owned, where the company does not exercise significant influence, are generally carried at cost. | |
Cost Method Investments, Policy | 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 | 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 | Revenue Recognition – Product sales represent approximately 89% of consolidated sales while all other sources of revenue are approximately 11% in the aggregate. 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. | ||
Cost of Sales | costs incurred for shipping and handling are recorded as cost of sales. | |
Cash Equivalents | Cash Equivalents – Cash equivalents are considered to be highly liquid securities with original maturities of three months or less. | |
Inventories | Inventories – Inventories are stated at the lower of cost or market. Cost is determined using the average-cost method. Effective July 1, 2014, the Company changed its method of accounting for all remaining U.S. operations that were using the last-in, first-out (“LIFO”) method to the average-cost method. See Note 7. | |
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. | ||
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. | |
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). For Venezuelan operations, the U.S. dollar is the functional currency and translation gains and losses are included in other income (expenses) – net. | |
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. | ||
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. | ||
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. | ||
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. | ||
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. | ||
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. | ||
New Accounting Pronouncements, Policy | Accounting Standards Implemented in 2014 | |
The following standards were effective for Praxair in 2014 and their adoption did not have a significant impact on the condensed consolidated financial statements: | ||
• | Accounting for Cumulative Translation Adjustment - In March 2013, the Financial Accounting Standards Board ("FASB") issued updated guidance on the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity, or as a result of acquisitions achieved in stages. The adoption of this guidance did not have a significant impact on the condensed consolidated financial statements. | |
• | Presentation of Unrecognized Tax Benefits - In July 2013, the FASB issued updated guidance on the presentation of unrecognized tax benefits. The new guidance requires an entity to present certain unrecognized tax benefits, or a portion thereof, as a reduction to the related deferred tax asset, primarily for loss and tax credit carryforwards. The adoption of this guidance did not have a significant impact on the condensed consolidated financial statements. | |
New Accounting Pronouncements Not Yet Adopted | Accounting Standards to Be Implemented | |
• | Reporting Discontinued Operations – In April 2014, the FASB issued updated guidance on the reporting and disclosures of discontinued operations. The new guidance requires that the disposal of a component of an entity be reported as discontinued operations only if the action represents a strategic shift that will have a major effect on an entity’s operations and financial results, and would require expanded disclosures. Praxair does not expect this requirement to have a significant impact on the consolidated financial statements. This guidance will be effective for Praxair beginning in the first quarter of 2015. | |
• | 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 would require expanded disclosures. This guidance will be effective for Praxair beginning in the first quarter 2017 and can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. Praxair is currently evaluating the new guidance and the transition options and will provide updates on the expected impact to Praxair in future filings, as determined. | |
• | 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. Praxair does not expect this requirement to have a significant impact on the consolidated financial statements. This guidance will be effective for Praxair beginning in the first quarter 2016, with early adoption optional. | |
Reclassifications | Reclassifications – Certain prior years’ amounts have been reclassified to conform to the current year’s presentation. |
Venezuela_Currency_Devaluation1
Venezuela Currency Devaluation and Other Charges - Net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Venezuela Currency Devaluation And Other Charges (Table) [Abstract] | |||||||||||||
2012 Schedule Of Cost Reduction By Segment | The following is a summary of the charges by reportable segment: | ||||||||||||
(Millions of dollars) | Severance | Costs Associated | Total Cost | ||||||||||
Costs | with Exit or | Reduction | |||||||||||
Disposal | Program | ||||||||||||
Activities | |||||||||||||
North America | $ | 1 | $ | — | $ | 1 | |||||||
Europe | 28 | 8 | 36 | ||||||||||
South America | 1 | — | 1 | ||||||||||
Asia | 2 | — | 2 | ||||||||||
Surface Technologies | 11 | 5 | 16 | ||||||||||
Total | $ | 43 | $ | 13 | $ | 56 | |||||||
2012 Cost Reduction Program Activity Table | The following table summarizes the activities related to the company's cost reduction program through December 31, 2014: | ||||||||||||
(Millions of dollars) | Severance | Costs Associated | Total Cost | ||||||||||
Costs | with Exit or | Reduction | |||||||||||
Disposal | Program | ||||||||||||
Activities | |||||||||||||
Cost reduction program charges in the third quarter of 2012 | $ | 43 | $ | 13 | $ | 56 | |||||||
Less: Cash payments | (13 | ) | — | (13 | ) | ||||||||
Less: Non-cash asset write-offs | — | (9 | ) | (9 | ) | ||||||||
Balance December 31, 2012 | $ | 30 | $ | 4 | $ | 34 | |||||||
Less: Cash payments | (16 | ) | (4 | ) | (20 | ) | |||||||
Foreign currency translation | 1 | — | 1 | ||||||||||
Balance, December 31, 2013 | $ | 15 | $ | — | $ | 15 | |||||||
Less: Cash payments | (4 | ) | — | (4 | ) | ||||||||
Foreign currency translation and other | (4 | ) | — | (4 | ) | ||||||||
Balance, December 31, 2014 | $ | 7 | $ | — | $ | 7 | |||||||
Acquisitions_Business_Acquisit
Acquisitions Business Acquisitions (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
Schedule of Purchase Price Allocation | The following table summarizes the fair value of identifiable assets acquired and liabilities assumed in the acquisition of NuCO2 as of the acquisition date. Purchase accounting has been finalized and adjustments made subsequent to the acquisition date were not material. | ||||
(Millions of dollars) | 1-Mar-13 | ||||
Trade receivables, net | $ | 17 | |||
Property, plant and equipment | 199 | ||||
Intangible assets | 374 | ||||
Deferred income taxes | (85 | ) | |||
Other assets and (liabilities) | (28 | ) | |||
Goodwill | 618 | ||||
Purchase price | $ | 1,095 | |||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Leases, Operating [Abstract] | ||||
Leases Table | At December 31, 2014, minimum payments due under operating leases are as follows: | |||
(Millions of dollars) | ||||
2015 | $ | 122 | ||
2016 | 109 | |||
2017 | 91 | |||
2018 | 75 | |||
2019 | 60 | |||
Thereafter | 60 | |||
$ | 517 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
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: | ||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
United States | $ | 1,004 | $ | 890 | $ | 880 | |||||||||||||||
Foreign | 1,391 | 1,557 | 1,416 | ||||||||||||||||||
Total income before income taxes | $ | 2,395 | $ | 2,447 | $ | 2,296 | |||||||||||||||
Schedule of the Provision for Income Taxes Table | The following is an analysis of the provision for income taxes: | ||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
Current tax expense | |||||||||||||||||||||
U.S. federal | $ | 291 | $ | 94 | $ | 14 | |||||||||||||||
State and local | 35 | 27 | 20 | ||||||||||||||||||
Foreign | 310 | 427 | 294 | ||||||||||||||||||
636 | 548 | 328 | |||||||||||||||||||
Deferred tax expense | |||||||||||||||||||||
U.S. federal | 14 | 164 | 198 | ||||||||||||||||||
State and local | 12 | 8 | 17 | ||||||||||||||||||
Foreign | 29 | (71 | ) | 43 | |||||||||||||||||
55 | 101 | 258 | |||||||||||||||||||
Total income taxes | $ | 691 | $ | 649 | $ | 586 | |||||||||||||||
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: | ||||||||||||||||||||
(Dollar amounts in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
U.S. statutory income tax rate | $ | 838 | 35 | % | $ | 856 | 35 | % | $ | 804 | 35 | % | |||||||||
State and local taxes – net of federal benefit | 31 | 1.3 | % | 23 | 1 | % | 24 | 1 | % | ||||||||||||
U.S. tax credits and deductions (a) | (37 | ) | (1.5 | )% | (23 | ) | (1.0 | )% | (22 | ) | (1.0 | )% | |||||||||
Foreign tax differentials (b) | (186 | ) | (7.8 | )% | (158 | ) | (6.4 | )% | (159 | ) | (6.9 | )% | |||||||||
Venezuela currency devaluation (c) | 46 | 1.9 | % | 8 | 0.3 | % | — | — | % | ||||||||||||
Income tax benefit from realignment of Italian legal structure (d) | — | — | % | (40 | ) | (1.6 | )% | — | — | % | |||||||||||
Income tax benefit from liquidation of subsidiary (e) | — | — | % | — | — | % | (55 | ) | (2.4 | )% | |||||||||||
Other – net | (1 | ) | — | % | (17 | ) | (0.8 | )% | (6 | ) | (0.2 | )% | |||||||||
Provision for income taxes | $ | 691 | 28.9 | % | $ | 649 | 26.5 | % | $ | 586 | 25.5 | % | |||||||||
________________________ | |||||||||||||||||||||
(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 and 2013 (see Note 2). | ||||||||||||||||||||
(d) | In December of 2013, Praxair's Italian legal structure was realigned. As a result of the new structure, an income tax benefit of $40 million ($24 million net of noncontrolling interests) was recorded. The benefit is recorded as $56 million in foreign current tax expense and $(96) million included in federal deferred tax expense. | ||||||||||||||||||||
(e) | In 2011 Praxair requested a pre-filing agreement (“PFA”) with the U.S. Internal Revenue Service (“IRS”) related to a loss on a liquidated subsidiary resulting from the divestiture of the U.S. Homecare Business. During the third quarter of 2012, the IRS approved the PFA resulting in a net income tax benefit of $(55) million. The benefit is recorded in U.S. current federal tax expense. | ||||||||||||||||||||
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: | ||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | |||||||||||||||||||
December 31, | |||||||||||||||||||||
Deferred tax liabilities | |||||||||||||||||||||
Fixed assets | $ | 1,402 | $ | 1,374 | |||||||||||||||||
Exchange gains | 85 | 61 | |||||||||||||||||||
Goodwill | 144 | 127 | |||||||||||||||||||
Other intangible assets | 125 | 112 | |||||||||||||||||||
Other | 146 | 133 | |||||||||||||||||||
$ | 1,902 | $ | 1,807 | ||||||||||||||||||
Deferred tax assets | |||||||||||||||||||||
Carryforwards | $ | 333 | $ | 323 | |||||||||||||||||
Benefit plans and related (a) | 389 | 285 | |||||||||||||||||||
Inventory | 18 | 20 | |||||||||||||||||||
Accruals and other (b) | 357 | 312 | |||||||||||||||||||
$ | 1,097 | $ | 940 | ||||||||||||||||||
Less: Valuation allowances (c) | (106 | ) | (85 | ) | |||||||||||||||||
$ | 991 | $ | 855 | ||||||||||||||||||
Net deferred tax liabilities | $ | 911 | $ | 952 | |||||||||||||||||
Recorded in the consolidated balance sheets as (See Note 7): | |||||||||||||||||||||
Prepaid and other current assets | $ | 189 | $ | 181 | |||||||||||||||||
Other long-term assets | 98 | 72 | |||||||||||||||||||
Deferred credits | 1,198 | 1,205 | |||||||||||||||||||
$ | 911 | $ | 952 | ||||||||||||||||||
________________________ | |||||||||||||||||||||
(a) | Includes deferred taxes of $342 million and $247 million in 2014 and 2013, respectively, related to pension / OPEB funded status (see Notes 7 and 16). | ||||||||||||||||||||
(b) | Includes $179 million and $112 million in 2014 and 2013, respectively, related to research and development costs and $67 million and $70 million in 2014 and 2013, respectively, related to goodwill. | ||||||||||||||||||||
(c) | Summary of valuation allowances relating to deferred tax assets follows (millions of dollars): | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Balance, January 1, | $ | (85 | ) | $ | (86 | ) | $ | (107 | ) | ||||||||||||
Income tax (charge) benefit | (20 | ) | 1 | 9 | |||||||||||||||||
Translation adjustments | 6 | — | — | ||||||||||||||||||
Other, including write-offs | (7 | ) | — | 12 | |||||||||||||||||
Balance, December 31, | $ | (106 | ) | $ | (85 | ) | $ | (86 | ) | ||||||||||||
Schedule of Valuation Allowances Relating To Deferred Tax Assets Table | |||||||||||||||||||||
(c) | Summary of valuation allowances relating to deferred tax assets follows (millions of dollars): | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Balance, January 1, | $ | (85 | ) | $ | (86 | ) | $ | (107 | ) | ||||||||||||
Income tax (charge) benefit | (20 | ) | 1 | 9 | |||||||||||||||||
Translation adjustments | 6 | — | — | ||||||||||||||||||
Other, including write-offs | (7 | ) | — | 12 | |||||||||||||||||
Balance, December 31, | $ | (106 | ) | $ | (85 | ) | $ | (86 | ) | ||||||||||||
Schedule of Reconciliation of Unrecognized Tax Benefits Table | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||
Unrecognized income tax benefits, January 1 | $ | 121 | $ | 142 | $ | 163 | |||||||||||||||
Additions for tax positions of prior years | 13 | 8 | 12 | ||||||||||||||||||
Reductions for tax positions of prior years | (2 | ) | (24 | ) | (17 | ) | |||||||||||||||
Additions for current year tax positions | 3 | 10 | — | ||||||||||||||||||
Reductions for settlements with taxing authorities (a) | (3 | ) | (2 | ) | (1 | ) | |||||||||||||||
Reductions as a result of a lapse of an applicable statute of limitations (b) | (56 | ) | (1 | ) | (9 | ) | |||||||||||||||
Foreign currency translation and other | (5 | ) | (12 | ) | (6 | ) | |||||||||||||||
Unrecognized income tax benefits, December 31 | $ | 71 | $ | 121 | $ | 142 | |||||||||||||||
________________________ | |||||||||||||||||||||
(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. | ||||||||||||||||||||
Schedule of Open Tax Years Subject to Examination by Major Jurisdiction Table | As of December 31, 2014, the company remained subject to examination in the following major tax jurisdictions for the tax years as indicated below: | ||||||||||||||||||||
Major tax jurisdictions | Open Years | ||||||||||||||||||||
North America | |||||||||||||||||||||
United States | 2011 through 2014 | ||||||||||||||||||||
Canada | 2007 through 2014 | ||||||||||||||||||||
Mexico | 2009 through 2014 | ||||||||||||||||||||
Europe | |||||||||||||||||||||
Germany | 2008 through 2014 | ||||||||||||||||||||
Italy | 2010 through 2014 | ||||||||||||||||||||
Spain | 2004 through 2014 | ||||||||||||||||||||
South America | |||||||||||||||||||||
Brazil | 2003 through 2014 | ||||||||||||||||||||
Asia | |||||||||||||||||||||
China | 2009 through 2014 | ||||||||||||||||||||
India | 2006 through 2014 | ||||||||||||||||||||
Korea | 2008 through 2014 | ||||||||||||||||||||
Thailand | 2008 through 2014 |
Earnings_Per_Share_Praxair_Inc1
Earnings Per Share - Praxair, Inc. Shareholders (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator (Millions of dollars) | ||||||||||||
Net income – Praxair, Inc. | $ | 1,694 | $ | 1,755 | $ | 1,692 | ||||||
Denominator (Thousands of shares) | ||||||||||||
Weighted average shares outstanding | 291,987 | 294,994 | 297,746 | |||||||||
Shares earned and issuable under compensation plans | 507 | 529 | 570 | |||||||||
Weighted average shares used in basic earnings per share | 292,494 | 295,523 | 298,316 | |||||||||
Effect of dilutive securities | ||||||||||||
Stock options and awards | 3,114 | 3,442 | 3,529 | |||||||||
Weighted average shares used in diluted earnings per share | 295,608 | 298,965 | 301,845 | |||||||||
Basic Earnings Per Common Share | $ | 5.79 | $ | 5.94 | $ | 5.67 | ||||||
Diluted Earnings Per Common Share | $ | 5.73 | $ | 5.87 | $ | 5.61 | ||||||
Supplemental_Information_Table
Supplemental Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Information (Tables) [Abstract] | |||||||||||||
Schedule Of Selling General And Administrative Table | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Year Ended December 31, | |||||||||||||
Selling, General and Administrative | |||||||||||||
Selling | $ | 572 | $ | 567 | $ | 547 | |||||||
General and administrative | 736 | 782 | 723 | ||||||||||
$ | 1,308 | $ | 1,349 | $ | 1,270 | ||||||||
Schedule Of Depreciation And Amortization Table | |||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Depreciation and Amortization | |||||||||||||
Depreciation | $ | 1,123 | $ | 1,068 | $ | 980 | |||||||
Amortization of other intangibles (Note 10) | 47 | 41 | 21 | ||||||||||
$ | 1,170 | $ | 1,109 | $ | 1,001 | ||||||||
Schedule Of Other Income (Expense) - Net Table | |||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Other Income (Expenses) – Net | |||||||||||||
Currency related net gains (losses) | $ | 1 | $ | 3 | $ | (9 | ) | ||||||
Partnership income | 16 | 7 | 10 | ||||||||||
Net legal settlements | — | 10 | 24 | ||||||||||
Severance expense | (22 | ) | (14 | ) | (17 | ) | |||||||
Business divestitures and asset gains (losses) – net | 36 | 43 | 49 | ||||||||||
Other – net | (22 | ) | (17 | ) | (14 | ) | |||||||
$ | 9 | $ | 32 | $ | 43 | ||||||||
Schedule Of Interest Expense - Net Table | |||||||||||||
(a) | In December 2014, Praxair redeemed $400 million of 5.375% notes due November 2016 for $434 million resulting in a $36 million charge ($22 million after-tax, or $0.07 per diluted share). In December 2013, Praxair redeemed $400 million of 5.25% notes due November 2014 for $418 million resulting in an $18 million charge ($12 million after-tax, or $0.04 per diluted share). | ||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Interest Expense – Net | |||||||||||||
Interest incurred on debt | $ | 215 | $ | 233 | $ | 226 | |||||||
Interest capitalized | (38 | ) | (69 | ) | (70 | ) | |||||||
Amortization of swap termination costs (Note 12) | — | (4 | ) | (15 | ) | ||||||||
Bond redemption (a) | 36 | 18 | — | ||||||||||
$ | 213 | $ | 178 | $ | 141 | ||||||||
Schedule Of Noncontrolling Interests Income [Table Text Block] | |||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | ||||||||||
Income Attributable to Noncontrolling Interests | |||||||||||||
Noncontrolling interests' operations | $ | 40 | $ | 41 | $ | 34 | |||||||
Income tax benefit in Italy (Note 5) | — | 16 | — | ||||||||||
Redeemable noncontrolling interests' operations (Note 14) | 12 | 24 | 18 | ||||||||||
$ | 52 | $ | 81 | $ | 52 | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | [1] | ||||||||||||
(Millions of dollars) | 2014 | 2013 | |||||||||||
December 31, | |||||||||||||
Accounts Receivable | |||||||||||||
Trade | $ | 1,746 | $ | 1,815 | |||||||||
Other | 152 | 175 | |||||||||||
1,898 | 1,990 | ||||||||||||
Less: allowance for doubtful accounts (b) | (102 | ) | (98 | ) | |||||||||
$ | 1,796 | $ | 1,892 | ||||||||||
(b) | Provisions to the allowance for doubtful accounts were $39 million, $38 million, and $29 million in 2014, 2013, and 2012, respectively. The allowance activity in each period related primarily to write-offs of uncollectible amounts, net of recoveries and currency movements. | ||||||||||||
Schedule Of Inventories Table | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Inventories (c) | |||||||||||||
Raw materials and supplies | $ | 200 | $ | 167 | |||||||||
Work in process | 52 | 58 | |||||||||||
Finished goods | 299 | 281 | |||||||||||
$ | 551 | $ | 506 | ||||||||||
(c) | Effective July 1, 2014, Praxair changed its method of accounting for all remaining U.S. operations that were using the last-in, first-out ("LIFO") method to the average-cost method, primarily raw materials. Prior to this change, approximately 6% of consolidated inventories were accounted for under the LIFO method. Praxair applied this change as a cumulative effect adjustment in the third quarter 2014 and did not restate prior periods because the impact was not material. The accounting change increased inventories by $9 million at July 1, 2014. The Company believes the change is preferable because it will better reflect the impact of current costs in both the consolidated balance sheets and consolidated statements of income. Had the Company not changed its accounting method, reported inventory amounts at December 31, 2014 would not have been significantly different than the amount disclosed above at July 1, 2014. | ||||||||||||
At December 31, 2013, approximately 6% of total inventories were valued using the LIFO method, all in the United States. If inventories had been valued at current costs, they would have been approximately $9 million higher than reported at December 31, 2013. | |||||||||||||
Schedule Of Prepaid And Other Current Assets Table | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Prepaid and Other Current Assets | |||||||||||||
Deferred income taxes (Note 5) | $ | 189 | $ | 181 | |||||||||
Prepaid (d) | 116 | 145 | |||||||||||
Other | 61 | 54 | |||||||||||
$ | 366 | $ | 380 | ||||||||||
(d) | Includes estimated income tax payments of $36 million in 2014 and $75 million in 2013. | ||||||||||||
Schedule Of Other Long-term Assets Table | |||||||||||||
(e) | Consists primarily of insurance contracts and other investments to be utilized for non-qualified pension and OPEB obligations. | ||||||||||||
(f) | Financing receivables is not normal practice for the company. The balances at December 31, 2014 and 2013 are net of reserves of $48 million and $51 million, respectively. The amounts in both periods relate primarily to government receivables in Brazil and other long-term notes receivable from customers, the majority of which are fully reserved. Collectibility is reviewed regularly and uncollectible amounts are written-off as appropriate. The account balance change during 2014 was primarily the result of additional receivables, net of reserves. | ||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Other Long-term Assets | |||||||||||||
Pension assets (Note 16) | $ | 35 | $ | 42 | |||||||||
Insurance contracts (e) | 73 | 73 | |||||||||||
Long-term receivables, net (f) | 43 | 36 | |||||||||||
Deposits | 64 | 62 | |||||||||||
Investments carried at cost | 8 | 7 | |||||||||||
Deferred charges | 114 | 133 | |||||||||||
Deferred income taxes (Note 5) | 98 | 72 | |||||||||||
Other | 114 | 144 | |||||||||||
$ | 549 | $ | 569 | ||||||||||
Schedule Of Other Current Liabilities Table | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Other Current Liabilities | |||||||||||||
Accrued expenses | $ | 296 | $ | 291 | |||||||||
Payroll | 177 | 184 | |||||||||||
Cost reduction program (Note 2) | 7 | 15 | |||||||||||
Pension and postretirement (Note 16) | 39 | 33 | |||||||||||
Interest payable | 69 | 62 | |||||||||||
Employee benefit accrual | 22 | 20 | |||||||||||
Severance | 14 | 13 | |||||||||||
Insurance reserves | 9 | 11 | |||||||||||
Other | 285 | 161 | |||||||||||
$ | 918 | $ | 790 | ||||||||||
Schedule Of Other Long-term Liabilities Table | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Other Long-term Liabilities | |||||||||||||
Pension and postretirement (Note 16) | $ | 777 | $ | 498 | |||||||||
Tax liabilities for uncertain tax positions | 57 | 55 | |||||||||||
Interest and penalties for uncertain tax positions (Note 5) | 8 | 12 | |||||||||||
Insurance reserves | 23 | 22 | |||||||||||
Other | 311 | 272 | |||||||||||
$ | 1,176 | $ | 859 | ||||||||||
Schedule Of Deferred Credits Table | |||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Deferred Credits | |||||||||||||
Deferred income taxes (Note 5) | $ | 1,198 | $ | 1,205 | |||||||||
Other | 83 | 191 | |||||||||||
$ | 1,281 | $ | 1,396 | ||||||||||
Schedule Of Accumulated Other Comprehensive Income (Loss) Table | |||||||||||||
(g) | North America consists primarily of currency translation adjustments in Canada and Mexico, South America relates primarily to Brazil and Argentina, and Europe relates primarily to Spain and Germany. | ||||||||||||
December 31, | 2014 | 2013 | |||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Cumulative translation adjustment (includes $64 million and $60 million tax charges in 2014 and 2013, respectively) | |||||||||||||
North America (g) | $ | (553 | ) | $ | (315 | ) | |||||||
South America (g) | (1,510 | ) | (1,179 | ) | |||||||||
Europe (g) | (432 | ) | (63 | ) | |||||||||
Asia | (49 | ) | 21 | ||||||||||
Surface Technologies | (7 | ) | 28 | ||||||||||
(2,551 | ) | (1,508 | ) | ||||||||||
Derivatives – net of taxes | (1 | ) | (4 | ) | |||||||||
Pension/OPEB funded status obligation (net of $342 million and $247 million tax benefits in 2014 and 2013, respectively) (Note 16) | (633 | ) | (469 | ) | |||||||||
$ | (3,185 | ) | $ | (1,981 | ) | ||||||||
[1] | North America consists primarily of currency translation adjustments in Canada and Mexico, South America relates primarily to Brazil and Argentina, and Europe relates primarily to Spain and Germany. |
Property_Plant_Equipment_Net_T
Property, Plant & Equipment - Net (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Property, Plant & Equipment - Net | Significant classes of property, plant and equipment are as follows: | ||||||||||
(Millions of dollars) | Depreciable Lives (Yrs) | 2014 | 2013 | ||||||||
December 31, | |||||||||||
Production plants (primarily 15-year life) (a) | 20-Oct | $ | 14,400 | $ | 14,378 | ||||||
Storage tanks | 15-20 | 2,267 | 2,330 | ||||||||
Transportation equipment and other | 15-Mar | 1,895 | 1,866 | ||||||||
Cylinders (primarily 30-year life) | 30-Oct | 1,724 | 1,740 | ||||||||
Buildings | 25-40 | 1,089 | 1,108 | ||||||||
Land and improvements (b) | 0-20 | 499 | 493 | ||||||||
Construction in progress | 1,980 | 2,116 | |||||||||
23,854 | 24,031 | ||||||||||
Less: accumulated depreciation | (11,857 | ) | (11,753 | ) | |||||||
$ | 11,997 | $ | 12,278 | ||||||||
(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
Goodwill (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Schedule of Goodwill [Abstract] | ||||||||||||||||||||||||
Schedule of Goodwill Table | Changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||
(Millions of dollars) | North | South | Europe | Asia | Surface | Total | ||||||||||||||||||
America | America | Technologies | ||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,499 | $ | 195 | $ | 645 | $ | 25 | $ | 143 | $ | 2,507 | ||||||||||||
Acquisitions (Note 3) | 625 | — | 94 | — | — | 719 | ||||||||||||||||||
Purchase adjustments & other | 3 | — | — | — | — | 3 | ||||||||||||||||||
Foreign currency translation | (10 | ) | (29 | ) | 4 | (1 | ) | 1 | (35 | ) | ||||||||||||||
Balance, December 31, 2013 | $ | 2,117 | $ | 166 | $ | 743 | $ | 24 | $ | 144 | $ | 3,194 | ||||||||||||
Acquisitions (Note 3) | 47 | 4 | 17 | 14 | 4 | 86 | ||||||||||||||||||
Purchase adjustments & other | 1 | — | (6 | ) | — | 5 | — | |||||||||||||||||
Foreign currency translation | (26 | ) | (23 | ) | (100 | ) | — | (10 | ) | (159 | ) | |||||||||||||
Balance, December 31, 2014 | $ | 2,139 | $ | 147 | $ | 654 | $ | 38 | $ | 143 | $ | 3,121 | ||||||||||||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Other Intangible Assets [Abstract] | ||||||||||||||||
Schedule of Other Intangible Assets Table | The following is a summary of Praxair’s other intangible assets at December 31, 2014 and 2013: | |||||||||||||||
(Millions of dollars) | Customer & | Non-compete | Patents | Total | ||||||||||||
For the year ended December 31, 2014 | License/Use | Agreements | & | |||||||||||||
Agreements | Other | |||||||||||||||
Cost: | ||||||||||||||||
Balance, December 31, 2013 | $ | 661 | $ | 31 | $ | 43 | $ | 735 | ||||||||
Additions (primarily acquisitions) | 54 | 12 | — | 66 | ||||||||||||
Foreign currency translation | (22 | ) | (1 | ) | (1 | ) | (24 | ) | ||||||||
Other * | — | (5 | ) | 5 | — | |||||||||||
Balance, December 31, 2014 | 693 | 37 | 47 | 777 | ||||||||||||
Less: accumulated amortization: | ||||||||||||||||
Balance, December 31, 2013 | (118 | ) | (16 | ) | (5 | ) | (139 | ) | ||||||||
Amortization expense | (36 | ) | (7 | ) | (4 | ) | (47 | ) | ||||||||
Foreign currency translation | 7 | — | — | 7 | ||||||||||||
Other * | — | 5 | — | 5 | ||||||||||||
Balance, December 31, 2014 | (147 | ) | (18 | ) | (9 | ) | (174 | ) | ||||||||
Net balance at December 31, 2014 | $ | 546 | $ | 19 | $ | 38 | $ | 603 | ||||||||
(Millions of dollars) | Customer & | Non-compete | Patents | Total | ||||||||||||
For the year ended December 31, 2013 | License/Use | Agreements | & | |||||||||||||
Agreements | Other | |||||||||||||||
Cost: | ||||||||||||||||
Balance, December 31, 2012 | $ | 232 | $ | 37 | $ | 20 | $ | 289 | ||||||||
Additions (primarily acquisitions) | 433 | 4 | 30 | 467 | ||||||||||||
Foreign currency translation | 3 | — | — | 3 | ||||||||||||
Other * | (7 | ) | (10 | ) | (7 | ) | (24 | ) | ||||||||
Balance, December 31, 2013 | 661 | 31 | 43 | 735 | ||||||||||||
Less: accumulated amortization: | ||||||||||||||||
Balance, December 31, 2012 | (89 | ) | (20 | ) | (7 | ) | (116 | ) | ||||||||
Amortization expense | (32 | ) | (6 | ) | (3 | ) | (41 | ) | ||||||||
Foreign currency translation | (1 | ) | — | — | (1 | ) | ||||||||||
Other * | 4 | 10 | 5 | 19 | ||||||||||||
Balance, December 31, 2013 | (118 | ) | (16 | ) | (5 | ) | (139 | ) | ||||||||
Net balance at December 31, 2013 | $ | 543 | $ | 15 | $ | 38 | $ | 596 | ||||||||
________________________ | ||||||||||||||||
* | Other primarily relates to the write-off of fully amortized assets, purchase accounting adjustments and reclassifications. | |||||||||||||||
Schedule of Estimated Future Amortization Expense Table | Total estimated annual amortization expense is as follows: | |||||||||||||||
(Millions of dollars) | ||||||||||||||||
2015 | $ | 49 | ||||||||||||||
2016 | 48 | |||||||||||||||
2017 | 42 | |||||||||||||||
2018 | 37 | |||||||||||||||
2019 | 37 | |||||||||||||||
Thereafter | 390 | |||||||||||||||
$ | 603 | |||||||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Debt (Tables) [Abstract] | ||||||||||||||
Long-term And Short-term Debt Table | The following is a summary of Praxair’s outstanding debt at December 31, 2014 and 2013: | |||||||||||||
(Millions of dollars) | 2014 | 2013 | ||||||||||||
Short-term | ||||||||||||||
Commercial paper and U.S. bank borrowings | $ | 514 | $ | 712 | ||||||||||
Other bank borrowings (primarily international) | 73 | 70 | ||||||||||||
Total short-term debt | 587 | 782 | ||||||||||||
Long-term | ||||||||||||||
U.S. borrowings | ||||||||||||||
4.375% Notes due 2014 (a) | — | 300 | ||||||||||||
4.625% Notes due 2015 (b) | 500 | 500 | ||||||||||||
3.25% Notes due 2015 (b, d) | 408 | 418 | ||||||||||||
0.75% Notes due 2016 | 400 | 400 | ||||||||||||
5.375% Notes due 2016 (a) | — | 400 | ||||||||||||
5.20% Notes due 2017 | 325 | 325 | ||||||||||||
1.05% Notes due 2017 | 400 | 400 | ||||||||||||
1.20% Notes due 2018 | 500 | 500 | ||||||||||||
1.25% Notes due 2018 (c, d) | 481 | 478 | ||||||||||||
4.50% Notes due 2019 (c) | 599 | 598 | ||||||||||||
1.90% Notes due 2019 | 500 | 500 | ||||||||||||
1.50% Euro denominated notes due 2020 (c, e) | 722 | — | ||||||||||||
4.05% Notes due 2021 (c) | 499 | 498 | ||||||||||||
3.00% Notes due 2021 (c) | 497 | 497 | ||||||||||||
2.45% Notes due 2022 (c) | 598 | 598 | ||||||||||||
2.20% Notes due 2022 (c) | 499 | 499 | ||||||||||||
2.70% Notes due 2023 (c) | 499 | 498 | ||||||||||||
1.625% Euro denominated notes due 2025 (c, e) | 599 | — | ||||||||||||
3.55% Notes due 2042 (c) | 466 | 466 | ||||||||||||
Other | 4 | 5 | ||||||||||||
International bank borrowings | 167 | 140 | ||||||||||||
Obligations under capital lease | 8 | 9 | ||||||||||||
8,671 | 8,029 | |||||||||||||
Less: current portion of long-term debt | (2 | ) | (3 | ) | ||||||||||
Total long-term debt | 8,669 | 8,026 | ||||||||||||
Total debt | $ | 9,258 | $ | 8,811 | ||||||||||
________________________ | ||||||||||||||
(a) | In March 2014, Praxair repaid $300 million of 4.375% notes that became due. In December of 2014, Praxair redeemed $400 million of 5.375% notes due November 2016 for $434 million resulting in an $36 million bond redemption charge (see Note 7). | |||||||||||||
(b) | 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. | |||||||||||||
(c) | Amounts are net of unamortized discounts. | |||||||||||||
(d) | December 31, 2014 and 2013 include a $14 million and $22 million fair value increase, respectively, related to hedge accounting. See Note 12 for additional information. | |||||||||||||
(e) | During 2014, Praxair issued the following Euro-denominated notes totaling €1.1 billion: €600 million of 1.50% Euro-denominated notes due 2020 and €500 million of 1.625% Euro-denominated notes due 2025. These debt issuances have been designated as a hedges of the net investment position in European operations where the Euro is the functional currency (see Note 12). The proceeds of this debt issuance were used for general corporate purposes, including acquisitions, repayment of debt and share repurchases under the company's share repurchase program. Since the time the Euro-denominated notes were first issued in March 2014 through December 31, 2014, exchange rate movements have reduced long-term debt by $125 million. | |||||||||||||
Credit Facilities Table | At December 31, 2014, the company has the following major credit facility available for future borrowing: | |||||||||||||
Millions of dollars | Total | Borrowings | Available for | Expires | ||||||||||
Facility | Outstanding | Borrowing | ||||||||||||
Senior Unsecured | $ | 2,500 | $ | — | $ | 2,500 | Dec-19 | |||||||
Expected Maturities On Long-term Debt Table | Expected maturities on long-term debt are as follows: | |||||||||||||
(Millions of dollars) | ||||||||||||||
2015 | $ | 2 | * | |||||||||||
2016 | 407 | |||||||||||||
2017 | 775 | |||||||||||||
2018 | 1,083 | |||||||||||||
2019 | 2,008 | * | ||||||||||||
Thereafter | 4,396 | |||||||||||||
$ | 8,671 | |||||||||||||
________________________ | ||||||||||||||
* $908 million of debt due in 2015 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
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
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, 2014 and 2013 for consolidated subsidiaries: | |||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
(Millions of dollars) | Notional Amounts | Assets | Liabilities | |||||||||||||||||||||
December 31, | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||
Currency contracts: | ||||||||||||||||||||||||
Balance sheet items (a) | $ | 2,427 | $ | 2,197 | $ | 5 | $ | 4 | $ | 13 | $ | 14 | ||||||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||||||||||||
Currency contracts: | ||||||||||||||||||||||||
Forecasted purchases (a) | $ | — | $ | 5 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Interest rate swaps (b) | 875 | 875 | 14 | 22 | — | — | ||||||||||||||||||
Total Hedges | $ | 875 | $ | 880 | $ | 14 | $ | 22 | $ | — | $ | — | ||||||||||||
Total Derivatives | $ | 3,302 | $ | 3,077 | $ | 19 | $ | 26 | $ | 13 | $ | 14 | ||||||||||||
________________________ | ||||||||||||||||||||||||
(a) | Assets are recorded in prepaid and other current assets, and liabilities are recorded in other current liabilities. | |||||||||||||||||||||||
(b) | Assets are recorded in other current and other long term assets. | |||||||||||||||||||||||
Schedule Of Treasury Rate Lock Contracts Table Text Block | The following table summarizes the unrecognized gains (losses) related to terminated treasury rate lock contracts: | |||||||||||||||||||||||
Unrecognized Gain / (Loss) (a) | ||||||||||||||||||||||||
(Millions of dollars) | Year | Original | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Terminated | Gain / (Loss) | |||||||||||||||||||||||
Treasury Rate Locks | ||||||||||||||||||||||||
Underlying debt instrument: | ||||||||||||||||||||||||
$500 million 2.20% fixed-rate notes that mature in 2022 (b) | 2012 | $ | (2 | ) | $ | (1 | ) | $ | (2 | ) | ||||||||||||||
$500 million 3.00% fixed-rate notes that mature in 2021 (b) | 2011 | (11 | ) | (8 | ) | (9 | ) | |||||||||||||||||
$600 million 4.50% fixed-rate notes that mature in 2019 (b) | 2009 | 16 | 8 | 10 | ||||||||||||||||||||
$500 million 4.625% fixed-rate notes that mature in 2015 (b) | 2008 | (7 | ) | — | (1 | ) | ||||||||||||||||||
Total – pre-tax | $ | (1 | ) | $ | (2 | ) | ||||||||||||||||||
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. | |||||||||||||||||||||||
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: | |||||||||||||||||||||||
(Millions of dollars) | Amount of Pre-Tax Gain (Loss) | |||||||||||||||||||||||
Recognized in Earnings * | ||||||||||||||||||||||||
December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||||||||||||
Currency contracts: | ||||||||||||||||||||||||
Balance sheet items: | ||||||||||||||||||||||||
Debt-related | $ | (69 | ) | $ | (46 | ) | $ | 33 | ||||||||||||||||
Other balance sheet items | (2 | ) | (9 | ) | (1 | ) | ||||||||||||||||||
Anticipated net income | — | — | (4 | ) | ||||||||||||||||||||
Total | $ | (71 | ) | $ | (55 | ) | $ | 28 | ||||||||||||||||
* 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. | ||||||||||||||||||||||||
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: | |||||||||||||||||||||||
(Millions of dollars) | Amount of Gain (Loss) | |||||||||||||||||||||||
Recognized in AOCI | ||||||||||||||||||||||||
December 31, | 2014 | 2013 | 2012 | |||||||||||||||||||||
Derivatives Designated as Hedging Instruments** | ||||||||||||||||||||||||
Currency contracts: | ||||||||||||||||||||||||
Net Investment hedge | $ | (6 | ) | $ | — | $ | — | |||||||||||||||||
Forecasted purchases | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||
Treasury rate locks | — | — | (2 | ) | ||||||||||||||||||||
Total – Pre tax | $ | (5 | ) | $ | 1 | $ | (1 | ) | ||||||||||||||||
Less: income taxes | 2 | — | 1 | |||||||||||||||||||||
Total - Net of Taxes | $ | (3 | ) | $ | 1 | $ | — | |||||||||||||||||
** The gains (losses) on net investment hedges are recorded as a component of AOCI within foreign currency translation adjustments in the condensed consolidated balance sheets and condensed consolidated statements of comprehensive income. The gains (losses) on forecasted purchases and treasury rate locks are recorded as a component of AOCI within derivative instruments in the condensed consolidated balance sheets and the condensed consolidated statements of comprehensive income. There was no ineffectiveness for these instruments during 2014 or 2013. 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 less than $1 million are expected to be reclassified to earnings during 2015. |
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
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, 2014 and 2013: | |||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||
(Millions of dollars) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Derivative assets | $ | — | $ | — | $ | 19 | $ | 26 | $ | — | $ | — | ||||||||||||
Liabilities | ||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | 13 | $ | 14 | $ | — | $ | — | ||||||||||||
Equity_and_Redeemable_Noncontr1
Equity and Redeemable Noncontrolling Interests (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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, 2014, 2013 and 2012: | |||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | |||||||||
Beginning Balance | $ | 307 | $ | 252 | $ | 220 | ||||||
Net income | 12 | 24 | 18 | |||||||||
Distributions to noncontrolling interest | (9 | ) | (11 | ) | (9 | ) | ||||||
Redemption value adjustment/accretion | 2 | 53 | 13 | |||||||||
Foreign currency translation and other | (24 | ) | (11 | ) | 10 | |||||||
Purchase of noncontrolling interest * | (112 | ) | — | — | ||||||||
Ending Balance | $ | 176 | $ | 307 | $ | 252 | ||||||
* In January 2014, Praxair acquired the noncontrolling interests related to Praxair Distribution Mid-Atlantic, LLC. The cash payment is shown in the financing section of the condensed consolidated statements of cash flows under the caption "Noncontrolling interest transactions and other". |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The weighted-average fair value of options granted during 2014 was $14.62 per option ($16.31 in 2013 and $17.43 in 2012) based on the Black-Scholes Options-Pricing model. The following weighted-average assumptions were used for grants in 2014, 2013 and 2012: | |||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | |||||||||||
Dividend yield | 2 | % | 2.2 | % | 2 | % | ||||||||
Volatility | 15.2 | % | 21.7 | % | 22.5 | % | ||||||||
Risk-free interest rate | 1.57 | % | 0.76 | % | 0.86 | % | ||||||||
Expected term years | 5 | 5 | 5 | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes option activity under the plans for 2014 (averages are calculated on a weighted basis; life in years; intrinsic value expressed in millions): | |||||||||||||
Activity | Number of | Average | Average | Aggregate | ||||||||||
Options | Exercise | Remaining | Intrinsic | |||||||||||
(000’s) | Price | Life | Value | |||||||||||
Outstanding at January 1, 2014 | 11,161 | $ | 81.42 | |||||||||||
Granted | 1,293 | 128.8 | ||||||||||||
Exercised | (1,380 | ) | 63.39 | |||||||||||
Cancelled or expired | (93 | ) | 110.68 | |||||||||||
Outstanding at December 31, 2014 | 10,981 | $ | 89.02 | 5.3 | $ | 445 | ||||||||
Exercisable at December 31, 2014 | 8,400 | $ | 79.74 | 4.3 | $ | 418 | ||||||||
Performance Based and Restricted Stock Activity | The following table summarizes non-vested performance-based and restricted stock award activity as of December 31, 2014 and changes during the period then ended (shares based on target amounts, averages are calculated on a weighted basis): | |||||||||||||
Performance-Based | Restricted Stock | |||||||||||||
Performance-Based and Restricted Stock Activity | Number of | Average | Number of | Average | ||||||||||
Shares | Grant Date | Shares | Grant Date | |||||||||||
(000’s) | Fair Value | (000’s) | Fair Value | |||||||||||
Non-vested at January 1, 2014 | 867 | $ | 99.55 | 337 | $ | 100.41 | ||||||||
Granted (a) | 328 | 121.16 | 95 | 122.55 | ||||||||||
Vested | (338 | ) | 92.06 | (109 | ) | 96.02 | ||||||||
Cancelled | (24 | ) | 110.27 | (16 | ) | 104.61 | ||||||||
Non-vested at December 31, 2014 | 833 | $ | 109.09 | 307 | $ | 106.63 | ||||||||
(a) | Performance-based stock unit ("PSU") grants during 2014 include 49 thousand shares relating to the actual payout of the 2011 PSU grants in 2014. |
Retirement_Programs_Tables
Retirement Programs (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
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 2014, 2013 and 2012 are shown below: | |||||||||||||||||||||||||||||||
(Millions of dollars) | Pensions | OPEB | ||||||||||||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Service cost | $ | 49 | $ | 56 | $ | 49 | $ | 4 | $ | 5 | $ | 4 | ||||||||||||||||||||
Interest cost | 121 | 112 | 119 | 11 | 11 | 12 | ||||||||||||||||||||||||||
Expected return on plan assets | (155 | ) | (149 | ) | (153 | ) | — | — | — | |||||||||||||||||||||||
Net amortization and deferral | 60 | 91 | 68 | (8 | ) | (5 | ) | (7 | ) | |||||||||||||||||||||||
Net periodic benefit cost before pension settlement charges | $ | 75 | $ | 110 | $ | 83 | $ | 7 | $ | 11 | $ | 9 | ||||||||||||||||||||
Pension settlement charges * | 7 | 9 | 10 | — | — | — | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | 82 | $ | 119 | $ | 93 | $ | 7 | $ | 11 | $ | 9 | ||||||||||||||||||||
* 2014 includes a $7 millions charge in the fourth quarter related to one-time lump sum benefit payment of vested pension benefits to certain former employees. 2012 and 2013 includes a $9 million charge in the third quarter primarily related to the retirement of senior managers in the United States (see Note 2) | ||||||||||||||||||||||||||||||||
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, 2014 and 2013 are shown below: | |||||||||||||||||||||||||||||||
(Millions of dollars) | Pensions | |||||||||||||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | OPEB | |||||||||||||||||||||||||||||
U.S. | International | U.S. | International | 2014 | 2013 | |||||||||||||||||||||||||||
Change in Benefit Obligation ("PBO") | ||||||||||||||||||||||||||||||||
Benefit obligation January 1 | $ | 1,791 | $ | 661 | $ | 1,926 | $ | 727 | $ | 208 | $ | 251 | ||||||||||||||||||||
Service cost | 34 | 15 | 38 | 18 | 4 | 5 | ||||||||||||||||||||||||||
Interest cost | 85 | 36 | 74 | 38 | 11 | 11 | ||||||||||||||||||||||||||
Participant contributions | — | — | — | — | 10 | 11 | ||||||||||||||||||||||||||
Actuarial loss (gain) | 276 | 109 | (148 | ) | (43 | ) | (21 | ) | (39 | ) | ||||||||||||||||||||||
Benefits paid | (136 | ) | (35 | ) | (99 | ) | (38 | ) | (25 | ) | (23 | ) | ||||||||||||||||||||
Divestiture | — | (1 | ) | — | — | — | — | |||||||||||||||||||||||||
Foreign currency translation | — | (66 | ) | — | (41 | ) | (7 | ) | (8 | ) | ||||||||||||||||||||||
Benefit obligation, December 31 | $ | 2,050 | $ | 719 | $ | 1,791 | $ | 661 | $ | 180 | $ | 208 | ||||||||||||||||||||
Accumulated benefit obligation ("ABO") | $ | 1,944 | $ | 681 | $ | 1,712 | $ | 629 | ||||||||||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||||||||||
Fair value of plan assets, January 1 | $ | 1,620 | $ | 551 | $ | 1,391 | $ | 558 | $ | — | $ | — | ||||||||||||||||||||
Actual return on plan assets | 108 | 76 | 271 | 43 | — | — | ||||||||||||||||||||||||||
Company contributions | 2 | 16 | 35 | 17 | — | — | ||||||||||||||||||||||||||
Benefits paid from plan assets | (123 | ) | (30 | ) | (77 | ) | (33 | ) | — | — | ||||||||||||||||||||||
Foreign currency translation | — | (52 | ) | — | (34 | ) | — | — | ||||||||||||||||||||||||
Fair value of plan assets, December 31 | $ | 1,607 | $ | 561 | $ | 1,620 | $ | 551 | $ | — | $ | — | ||||||||||||||||||||
Funded Status, End of Year | $ | (443 | ) | $ | (158 | ) | $ | (171 | ) | $ | (110 | ) | $ | (180 | ) | $ | (208 | ) | ||||||||||||||
Recorded in the Balance Sheet | ||||||||||||||||||||||||||||||||
Other long-term assets | $ | — | $ | 35 | $ | — | $ | 42 | $ | — | $ | — | ||||||||||||||||||||
Other current liabilities | (18 | ) | (5 | ) | (10 | ) | (6 | ) | (16 | ) | (17 | ) | ||||||||||||||||||||
Other long-term liabilities | (425 | ) | (188 | ) | (161 | ) | (146 | ) | (164 | ) | (191 | ) | ||||||||||||||||||||
Net amount recognized, December 31 | $ | (443 | ) | $ | (158 | ) | $ | (171 | ) | $ | (110 | ) | $ | (180 | ) | $ | (208 | ) | ||||||||||||||
Amounts recognized in accumulated other comprehensive income (loss) consist of: | ||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 792 | $ | 193 | $ | 563 | $ | 145 | $ | (24 | ) | $ | (7 | ) | ||||||||||||||||||
Prior service cost (credit) | — | 15 | 1 | 18 | (1 | ) | (4 | ) | ||||||||||||||||||||||||
Deferred tax benefit (Note 5) | (303 | ) | (50 | ) | (215 | ) | (38 | ) | 11 | 6 | ||||||||||||||||||||||
Amount recognized in accumulated other comprehensive income (loss) (Note 7) | $ | 489 | $ | 158 | $ | 349 | $ | 125 | $ | (14 | ) | $ | (5 | ) | ||||||||||||||||||
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 2014 and 2013 are as follows: | |||||||||||||||||||||||||||||||
Pensions | OPEB | |||||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Current year net actuarial losses (gains)* | $ | 356 | $ | (356 | ) | $ | (21 | ) | $ | (39 | ) | |||||||||||||||||||||
Amortization of net actuarial gains (losses) | (59 | ) | (90 | ) | 2 | (1 | ) | |||||||||||||||||||||||||
Amortization of prior service credits (costs) | (1 | ) | (1 | ) | 6 | 6 | ||||||||||||||||||||||||||
Pension settlements (Note 2) | (7 | ) | (9 | ) | — | — | ||||||||||||||||||||||||||
Foreign currency translation and other | (16 | ) | (12 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||
Total recognized in other comprehensive income | $ | 273 | $ | (468 | ) | $ | (14 | ) | $ | (35 | ) | |||||||||||||||||||||
________________________ | ||||||||||||||||||||||||||||||||
* | The pension net actuarial losses in 2014 relates primarily to the decrease in discount rates, when compared to 2013 and updated mortality assumptions. The pension net actuarial gain in 2013 relates primarily to the increase in discount rates, when compared to 2012. The OPEB net actuarial gains in 2014 relates primarily to favorable plan experience, and the 2013 net actuarial gain relates primarily to higher discount rates. | |||||||||||||||||||||||||||||||
Schedule of Pension and OPEB Amounts in AOCI to be Recognized in 2015 Table | The amounts in accumulated other comprehensive income (loss) that are expected to be recognized as components of net periodic benefit cost during 2015 are as follows: | |||||||||||||||||||||||||||||||
(Millions of dollars) | Pension | OPEB | ||||||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 82 | $ | (3 | ) | |||||||||||||||||||||||||||
Prior service cost (credit) | 1 | — | ||||||||||||||||||||||||||||||
$ | 83 | $ | (3 | ) | ||||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||
(Millions of dollars) | Pensions | |||||||||||||||||||||||||||||||
Year Ended December 31, | 2014 | 2013 | ||||||||||||||||||||||||||||||
U.S. | International | U.S.* | International | |||||||||||||||||||||||||||||
Projected benefit obligation ("PBO") | $ | 2,050 | $ | 428 | $ | 244 | $ | 360 | ||||||||||||||||||||||||
Accumulated benefit obligation ("ABO") | $ | 1,944 | $ | 412 | $ | 241 | $ | 352 | ||||||||||||||||||||||||
Fair value of plan assets | $ | 1,607 | $ | 234 | $ | 127 | $ | 207 | ||||||||||||||||||||||||
* In 2013, plan assets related to the main U.S. retirement program exceeded the ABO by $23 million and was therefore excluded from the table above. | ||||||||||||||||||||||||||||||||
Schedule of Pension and OPEB Plans Assumptions Used to Determine Benefit Obligations and the Net Benefit Cost Table | The assumptions used to determine the benefit obligations are as of the respective balance sheet date and the assumptions used to determine the net benefit cost are at the previous year-end, as shown below: | |||||||||||||||||||||||||||||||
Pensions | ||||||||||||||||||||||||||||||||
U.S. | International | OPEB | ||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||
Weighted average assumptions used to determine benefit obligations at December 31, | ||||||||||||||||||||||||||||||||
Discount rate | 3.95 | % | 4.8 | % | 5.36 | % | 6.3 | % | 4.48 | % | 5.87 | % | ||||||||||||||||||||
Rate of increase in compensation levels | 3.25 | % | 3.25 | % | 3.72 | % | 4 | % | N/A | N/A | ||||||||||||||||||||||
Weighted average assumptions used to determine net periodic benefit cost for years ended December 31, | ||||||||||||||||||||||||||||||||
Discount rate | 4.8 | % | 3.9 | % | 6.3 | % | 5.8 | % | 5.87 | % | 5 | % | ||||||||||||||||||||
Rate of increase in compensation levels | 3.25 | % | 3.25 | % | 4 | % | 4 | % | N/A | N/A | ||||||||||||||||||||||
Expected long-term rate of return on plan assets * | 8 | % | 8 | % | 8.1 | % | 7.5 | % | N/A | N/A | ||||||||||||||||||||||
________________________ | ||||||||||||||||||||||||||||||||
* | 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, 2014 were approximately 6.2% and 8.2%, respectively. For the international plan assets, the actual annualized total returns for the same two periods were approximately 8.3% and 9.7%, 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 2015, 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. | |||||||||||||||||||||||||||||||
Schedule of OPEB Plans Assumed Healthcare Cost Trend Rates Table | ||||||||||||||||||||||||||||||||
OPEB | ||||||||||||||||||||||||||||||||
Assumed healthcare cost trend rates | 2014 | 2013 | ||||||||||||||||||||||||||||||
Healthcare cost trend assumed | 7.5 | % | 8 | % | ||||||||||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 5 | % | 5 | % | ||||||||||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2020 | 2020 | ||||||||||||||||||||||||||||||
Schedule OPEB Plans Impact 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: | |||||||||||||||||||||||||||||||
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 | $ | 3 | $ | (2 | ) | |||||||||||||||||||||||||||
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, 2014 and 2013, and the target asset allocation range for 2014, by major asset category are as follows: | |||||||||||||||||||||||||||||||
U.S. | International | |||||||||||||||||||||||||||||||
Asset Category | Target | 2014 | 2013 | Target | 2014 | 2013 | ||||||||||||||||||||||||||
Equity securities | 50%-70% | 65 | % | 70 | % | 30%-50% | 49 | % | 48 | % | ||||||||||||||||||||||
Fixed income securities | 20%-40% | 28 | % | 30 | % | 40%-60% | 42 | % | 43 | % | ||||||||||||||||||||||
Other | 2% - 10% | 7 | % | — | 0%-10% | 9 | % | 9 | % | |||||||||||||||||||||||
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, 2014 and 2013. During the years presented, there has been no transfer of assets between Levels 1, 2 & 3 (see Note 13 for definition of the levels): | |||||||||||||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 * | Total | |||||||||||||||||||||||||||||
(Millions of dollars) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 1 | $ | 2 | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | 2 | ||||||||||||||||
Equity securities: | ||||||||||||||||||||||||||||||||
U.S. equities | 340 | 285 | — | — | — | — | 340 | 285 | ||||||||||||||||||||||||
International equities | 82 | 82 | — | — | — | — | 82 | 82 | ||||||||||||||||||||||||
Mutual funds | 330 | 393 | — | — | — | — | 330 | 393 | ||||||||||||||||||||||||
Pooled funds | — | — | 565 | 630 | — | — | 565 | 630 | ||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||
U.S. government bonds | — | — | 44 | 39 | — | — | 44 | 39 | ||||||||||||||||||||||||
International government bonds | — | — | 125 | 128 | — | — | 125 | 128 | ||||||||||||||||||||||||
Mutual funds | 253 | 308 | — | — | — | — | 253 | 308 | ||||||||||||||||||||||||
Corporate bonds | — | — | 175 | 176 | — | — | 175 | 176 | ||||||||||||||||||||||||
Pooled funds | — | — | 90 | 80 | — | — | 90 | 80 | ||||||||||||||||||||||||
Other: | ||||||||||||||||||||||||||||||||
Insurance contracts | — | — | — | — | 53 | 48 | 53 | 48 | ||||||||||||||||||||||||
Real Estate Funds | — | — | — | — | 110 | — | 110 | — | ||||||||||||||||||||||||
Fair value of plan assets, December 31, | $ | 1,006 | $ | 1,070 | $ | 999 | $ | 1,053 | $ | 163 | $ | 48 | $ | 2,168 | $ | 2,171 | ||||||||||||||||
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, 2014 and 2013: | |||||||||||||||||||||||||||||||
(Millions of dollars) | Insurance | Real Estate Funds | Total | |||||||||||||||||||||||||||||
Contracts | ||||||||||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 48 | $ | — | $ | 48 | ||||||||||||||||||||||||||
Gain or losses for the period | — | — | — | |||||||||||||||||||||||||||||
Balance, December 31, 2013 | 48 | — | 48 | |||||||||||||||||||||||||||||
Gain for the period | 12 | 10 | 22 | |||||||||||||||||||||||||||||
Acquisitions | — | 100 | 100 | |||||||||||||||||||||||||||||
Foreign currency translation | (7 | ) | — | (7 | ) | |||||||||||||||||||||||||||
Balance, December 31, 2014 | $ | 53 | $ | 110 | $ | 163 | ||||||||||||||||||||||||||
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: | |||||||||||||||||||||||||||||||
(Millions of dollars) | Pensions | |||||||||||||||||||||||||||||||
Year Ended December 31, | U.S. | International | OPEB | |||||||||||||||||||||||||||||
2015 | $ | 105 | $ | 36 | $ | 17 | ||||||||||||||||||||||||||
2016 | 101 | 36 | 16 | |||||||||||||||||||||||||||||
2017 | 106 | 37 | 16 | |||||||||||||||||||||||||||||
2018 | 111 | 38 | 15 | |||||||||||||||||||||||||||||
2019 | 117 | 39 | 15 | |||||||||||||||||||||||||||||
2020-2024 | 625 | 211 | 68 | |||||||||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
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, 2014, 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, 7, 11, and 16): | |||||||||||
(Millions of dollars) | Unconditional | Construction | Guarantees | |||||||||
Expiring through December 31, | Purchase | Commitments | and Other | |||||||||
Obligations | ||||||||||||
2015 | $ | 543 | $ | 954 | $ | 12 | ||||||
2016 | 491 | 404 | 59 | |||||||||
2017 | 460 | 27 | — | |||||||||
2018 | 445 | — | — | |||||||||
2019 | 393 | — | — | |||||||||
Thereafter | 3,021 | — | — | |||||||||
$ | 5,353 | $ | 1,385 | $ | 71 | |||||||
Segments_Tables
Segments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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, 2014, 2013 and 2012. | ||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Sales (a) | |||||||||||||
North America | $ | 6,436 | $ | 6,164 | $ | 5,598 | |||||||
Europe | 1,546 | 1,542 | 1,474 | ||||||||||
South America | 1,993 | 2,042 | 2,082 | ||||||||||
Asia | 1,619 | 1,525 | 1,414 | ||||||||||
Surface Technologies | 679 | 652 | 656 | ||||||||||
$ | 12,273 | $ | 11,925 | $ | 11,224 | ||||||||
(a) | Sales reflect external sales only. Intersegment Sales, primarily from North America to other segments, were not material. | ||||||||||||
Schedule Of Segment Reporting Information, Operating Profit | [1] | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Operating Profit | |||||||||||||
North America | $ | 1,580 | $ | 1,538 | $ | 1,465 | |||||||
Europe | 291 | 270 | 256 | ||||||||||
South America | 449 | 467 | 429 | ||||||||||
Asia | 303 | 271 | 246 | ||||||||||
Surface Technologies | 123 | 111 | 106 | ||||||||||
Segment operating profit | 2,746 | 2,657 | 2,502 | ||||||||||
Venezuela currency devaluation and other charges (Note 2) | (138 | ) | (32 | ) | (65 | ) | |||||||
Total operating profit | $ | 2,608 | $ | 2,625 | $ | 2,437 | |||||||
Schedule of Segment Reporting Information, Total Assets Table | [1] | ||||||||||||
(b) | Includes equity investments as of December 31, as follows: | ||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
North America | $ | 132 | $ | 128 | $ | 135 | |||||||
Europe | 207 | 218 | 199 | ||||||||||
Asia | 354 | 356 | 320 | ||||||||||
$ | 693 | $ | 702 | $ | 654 | ||||||||
Changes primarily relate to equity investment earnings, dividends and currency impacts. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Total Assets (b) | |||||||||||||
North America | $ | 10,205 | $ | 10,133 | $ | 8,491 | |||||||
Europe | 3,000 | 3,408 | 2,957 | ||||||||||
South America | 2,723 | 2,934 | 3,205 | ||||||||||
Asia | 3,198 | 3,098 | 2,757 | ||||||||||
Surface Technologies | 676 | 682 | 680 | ||||||||||
$ | 19,802 | $ | 20,255 | $ | 18,090 | ||||||||
Schedule of Segment Reporting Information, Depreciation and Amortization Table | |||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
Depreciation and Amortization | |||||||||||||
North America | $ | 611 | $ | 567 | $ | 498 | |||||||
Europe | 168 | 169 | 149 | ||||||||||
South America | 177 | 181 | 184 | ||||||||||
Asia | 170 | 150 | 127 | ||||||||||
Surface Technologies | 44 | 42 | 43 | ||||||||||
$ | 1,170 | $ | 1,109 | $ | 1,001 | ||||||||
Schedule of Segment Reporting Information, Capital Expenditures and Acquisitions Table | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Capital Expenditures and Acquisitions | |||||||||||||
North America | $ | 837 | $ | 2,106 | $ | 1,303 | |||||||
Europe | 319 | 451 | 322 | ||||||||||
South America | 373 | 284 | 351 | ||||||||||
Asia | 310 | 459 | 431 | ||||||||||
Surface Technologies | 56 | 43 | 53 | ||||||||||
$ | 1,895 | $ | 3,343 | $ | 2,460 | ||||||||
Revenue from External Customers by Products and Services | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Sales by Product Group | |||||||||||||
Atmospheric gases and related | $ | 8,623 | $ | 8,451 | $ | 8,104 | |||||||
Process gases and other | 2,971 | 2,822 | 2,464 | ||||||||||
Surface technologies | 679 | 652 | 656 | ||||||||||
$ | 12,273 | $ | 11,925 | $ | 11,224 | ||||||||
Schedule of Segment Information, Sales by Major Country Table | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Sales by Major Country | |||||||||||||
United States | $ | 5,171 | $ | 4,764 | $ | 4,305 | |||||||
Brazil | 1,511 | 1,603 | 1,668 | ||||||||||
Other – foreign | 5,591 | 5,558 | 5,251 | ||||||||||
$ | 12,273 | $ | 11,925 | $ | 11,224 | ||||||||
Schedule of Segment Information, Long-lived Assets by Major Country Table | [1] | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Long-lived Assets by Major Country (c) | |||||||||||||
United States | $ | 4,817 | $ | 4,723 | $ | 4,255 | |||||||
Brazil | 1,344 | 1,376 | 1,535 | ||||||||||
Other – foreign | 5,836 | 6,179 | 5,663 | ||||||||||
$ | 11,997 | $ | 12,278 | $ | 11,453 | ||||||||
(c) | Long-lived assets include property, plant and equipment – net. | ||||||||||||
Schedule of Segment Information, Equity Investments Table | |||||||||||||
(b) | Includes equity investments as of December 31, as follows: | ||||||||||||
(Millions of dollars) | 2014 | 2013 | 2012 | ||||||||||
North America | $ | 132 | $ | 128 | $ | 135 | |||||||
Europe | 207 | 218 | 199 | ||||||||||
Asia | 354 | 356 | 320 | ||||||||||
$ | 693 | $ | 702 | $ | 654 | ||||||||
Changes primarily relate to equity investment earnings, dividends and currency impacts. | |||||||||||||
[1] | (c)Long-lived assets include property, plant and equipment – net. |
Quarterly_Data_Tables
Quarterly Data (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||
Schedule of Quarterly Data (Unaudited) Table | (Dollar amounts in millions, except per share data) | |||||||||||||||||||
2014 | 1Q | 2Q | 3Q | 4Q (a) | YEAR (a) | |||||||||||||||
Sales | $ | 3,026 | $ | 3,113 | $ | 3,144 | $ | 2,990 | $ | 12,273 | ||||||||||
Cost of sales, exclusive of depreciation and amortization | $ | 1,726 | $ | 1,767 | $ | 1,780 | $ | 1,689 | $ | 6,962 | ||||||||||
Depreciation and amortization | $ | 285 | $ | 293 | $ | 301 | $ | 291 | $ | 1,170 | ||||||||||
Operating profit | $ | 675 | $ | 697 | $ | 711 | $ | 525 | 2,608 | |||||||||||
Net income – Praxair, Inc. | $ | 448 | $ | 467 | $ | 477 | $ | 302 | $ | 1,694 | ||||||||||
Basic Per Share Data | ||||||||||||||||||||
Net income | $ | 1.52 | $ | 1.59 | $ | 1.63 | $ | 1.04 | $ | 5.79 | ||||||||||
Weighted average shares (000’s) | 294,195 | 292,945 | 292,170 | 290,667 | 292,494 | |||||||||||||||
Diluted Per Share Data | ||||||||||||||||||||
Net income | $ | 1.51 | $ | 1.58 | $ | 1.62 | $ | 1.03 | $ | 5.73 | ||||||||||
Weighted average shares (000’s) | 297,253 | 295,976 | 295,239 | 293,555 | 295,608 | |||||||||||||||
2013 | 1Q (a) | 2Q | 3Q (a) | 4Q (a) | YEAR (a) | |||||||||||||||
Sales | $ | 2,888 | $ | 3,014 | $ | 3,013 | $ | 3,010 | $ | 11,925 | ||||||||||
Cost of sales, exclusive of depreciation and amortization | $ | 1,638 | $ | 1,710 | $ | 1,697 | $ | 1,699 | $ | 6,744 | ||||||||||
Depreciation and amortization | $ | 266 | $ | 275 | $ | 281 | $ | 287 | $ | 1,109 | ||||||||||
Operating profit | $ | 600 | $ | 665 | $ | 670 | $ | 690 | $ | 2,625 | ||||||||||
Net income – Praxair, Inc. | $ | 391 | $ | 445 | $ | 445 | $ | 474 | $ | 1,755 | ||||||||||
Basic Per Share Data | ||||||||||||||||||||
Net income | $ | 1.32 | $ | 1.5 | $ | 1.51 | $ | 1.61 | $ | 5.94 | ||||||||||
Weighted average shares (000’s) | 296,604 | 295,668 | 295,124 | 294,697 | 295,523 | |||||||||||||||
Diluted Per Share Data | ||||||||||||||||||||
Net income | $ | 1.3 | $ | 1.49 | $ | 1.49 | $ | 1.59 | $ | 5.87 | ||||||||||
Weighted average shares (000’s) | 299,700 | 298,654 | 298,357 | 298,225 | 298,965 | |||||||||||||||
________________________ | ||||||||||||||||||||
(a) | 2014 and 2013 include the impact of the following benefits/(charges) (see Notes 2, 5 & 7): | |||||||||||||||||||
(Millions of dollars) | Operating | Net | Diluted Earnings Per Share | |||||||||||||||||
Profit/ | Income/ | |||||||||||||||||||
(Loss) | (Loss) | |||||||||||||||||||
Venezuela currency devaluation - Q4 | $ | (131 | ) | $ | (131 | ) | $ | (0.45 | ) | |||||||||||
Pension settlement charge - Q4 | (7 | ) | (5 | ) | (0.02 | ) | ||||||||||||||
Bond redemption -Q4 | — | (22 | ) | (0.07 | ) | |||||||||||||||
Year 2014 | $ | (138 | ) | $ | (158 | ) | $ | (0.54 | ) | |||||||||||
Venezuela currency devaluation – Q1 | $ | (23 | ) | $ | (23 | ) | $ | (0.08 | ) | |||||||||||
Pension settlement charge – Q3 | (9 | ) | (6 | ) | (0.02 | ) | ||||||||||||||
Income tax benefit - Q4 | — | 24 | 0.08 | |||||||||||||||||
Bond redemption - Q4 | — | (12 | ) | (0.04 | ) | |||||||||||||||
Year 2013 | $ | (32 | ) | $ | (17 | ) | $ | (0.06 | ) |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policy | |
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% |
Other Sources of Revenue | |
Accounting Policy | |
Percentage of Consolidated Sales | 11.00% |
Product Revenues | |
Accounting Policy | |
Percentage of Consolidated Sales | 89.00% |
Minimum | |
Accounting Policy | |
Useful life | 3 years |
Maximum | |
Accounting Policy | |
Useful life | 40 years |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies Inventory (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Percentage of LIFO Inventory | 6.00% | 6.00% |
Venezuela_Currency_Devaluation2
Venezuela Currency Devaluation and Other Charges - Net 2014, 2013, and 2012 Items) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 13, 2013 | ||||||
Additional Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | $525 | [1] | $711 | $697 | $675 | $690 | $670 | [1] | $665 | $600 | [1] | $2,608 | [1] | $2,625 | [1] | $2,437 | ||
Interest expense – net | 213 | 178 | 141 | |||||||||||||||
Income Tax Expense (Benefit) | 691 | 649 | 586 | |||||||||||||||
Noncontrolling Interests | 52 | 81 | 52 | |||||||||||||||
Net Income (Loss) – Praxair, Inc. | 302 | [1] | 477 | 467 | 448 | 474 | [1] | 445 | [1] | 445 | 391 | [1] | 1,694 | [1] | 1,755 | [1] | 1,692 | |
Venezuela currency devaluation and other charges – net | 138 | 32 | 65 | |||||||||||||||
Cost Reduction Program [Member] | ||||||||||||||||||
Additional Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | -56 | |||||||||||||||||
Income Tax Expense (Benefit) | -16 | |||||||||||||||||
Noncontrolling Interests | -2 | |||||||||||||||||
Net Income (Loss) – Praxair, Inc. | -38 | |||||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $0.12 | |||||||||||||||||
Total Impact Of Items [Member] | ||||||||||||||||||
Additional Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | -138 | -32 | ||||||||||||||||
Net Income (Loss) – Praxair, Inc. | -158 | -17 | ||||||||||||||||
Pension Settlement Charge [Member] | ||||||||||||||||||
Additional Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | -7 | -9 | -7 | -9 | -9 | |||||||||||||
Net Income (Loss) – Praxair, Inc. | -5 | -6 | -5 | -6 | -6 | |||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $0.02 | $0.02 | $0.02 | |||||||||||||||
Venezuela Currency Devaluation [Member] | ||||||||||||||||||
Additional Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | -131 | -23 | -131 | -23 | ||||||||||||||
Net Income (Loss) – Praxair, Inc. | -131 | -23 | -131 | -23 | ||||||||||||||
Venezuela Exchange Rate | 50 | 50 | 4.3 | 6.3 | ||||||||||||||
Venezuela Implied Devaluation On Remaining Sectors Rate | 88.00% | 88.00% | 32.00% | |||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $0.45 | $0.08 | ||||||||||||||||
Monetary Asset and Liability Translation Loss | 68 | |||||||||||||||||
Asset Impairment Charges | $63 | |||||||||||||||||
[1] | 2014 and 2013 include the impact of the following benefits/(charges) (see Notes 2, 5 & 7):(Millions of dollars)OperatingProfit/(Loss) NetIncome/(Loss) Diluted Earnings Per ShareVenezuela currency devaluation - Q4$(131) $(131) $(0.45)Pension settlement charge - Q4(7) (5) (0.02)Bond redemption -Q4— (22) (0.07)Year 2014$(138) $(158) $(0.54) Venezuela currency devaluation – Q1$(23) $(23) $(0.08)Pension settlement charge – Q3(9) (6) (0.02)Income tax benefit - Q4— 24 0.08Bond redemption - Q4— (12) (0.04)Year 2013$(32) $(17) $(0.06) |
Venezuela_Currency_Devaluation3
Venezuela Currency Devaluation and Other Charges - Net (Restructuring and Related Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Feb. 13, 2013 | ||||||
employee | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Net income – Praxair, Inc. | $302 | [1] | $477 | $467 | $448 | $474 | [1] | $445 | [1] | $445 | $391 | [1] | $1,694 | [1] | $1,755 | [1] | $1,692 | ||
Operating Profit (Loss) | 525 | [1] | 711 | 697 | 675 | 690 | 670 | [1] | 665 | 600 | [1] | 2,608 | [1] | 2,625 | [1] | 2,437 | |||
Severance Costs | 22 | 14 | 17 | ||||||||||||||||
Restructuring Reserve [Abstract] | |||||||||||||||||||
Restructuring and Related Cost, Number of Positions Eliminated | 410 | ||||||||||||||||||
Income Tax Expense (Benefit) | 691 | 649 | 586 | ||||||||||||||||
Noncontrolling Interests | 52 | 81 | 52 | ||||||||||||||||
Severance Costs | |||||||||||||||||||
Restructuring Reserve [Abstract] | |||||||||||||||||||
Cost reduction program - Period Start | 15 | 30 | 15 | 30 | 43 | ||||||||||||||
Less: Cash payments | -4 | -16 | -13 | ||||||||||||||||
Restructuring Reserve, Translation Adjustment | -4 | 1 | |||||||||||||||||
Cost reduction program - Period End | 7 | 15 | 7 | 15 | 30 | 30 | |||||||||||||
Costs Associated with Exit or Disposal Activities | |||||||||||||||||||
Restructuring Reserve [Abstract] | |||||||||||||||||||
Cost reduction program - Period Start | 4 | 4 | 13 | ||||||||||||||||
Less: Cash payments | -4 | ||||||||||||||||||
Less: Non-cash asset write-offs | -9 | ||||||||||||||||||
Cost reduction program - Period End | 4 | 4 | |||||||||||||||||
Total Cost Reduction Program | |||||||||||||||||||
Restructuring Reserve [Abstract] | |||||||||||||||||||
Cost reduction program - Period Start | 15 | 34 | 15 | 34 | 56 | ||||||||||||||
Less: Cash payments | -4 | -20 | -13 | ||||||||||||||||
Less: Non-cash asset write-offs | -9 | ||||||||||||||||||
Restructuring Reserve, Translation Adjustment | -4 | 1 | |||||||||||||||||
Cost reduction program - Period End | 7 | 15 | 7 | 15 | 34 | 34 | |||||||||||||
North America Segment Member | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Operating Profit (Loss) | 1,580 | 1,538 | 1,465 | ||||||||||||||||
North America Segment Member | Severance Costs | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Severance Costs | 1 | ||||||||||||||||||
North America Segment Member | Total Cost Reduction Program | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Total Cost Reduction Program | 1 | ||||||||||||||||||
South America Segment Member | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Operating Profit (Loss) | 449 | 467 | 429 | ||||||||||||||||
South America Segment Member | Severance Costs | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Severance Costs | 1 | ||||||||||||||||||
South America Segment Member | Total Cost Reduction Program | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Total Cost Reduction Program | 1 | ||||||||||||||||||
Europe Segment Member | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Operating Profit (Loss) | 291 | 270 | 256 | ||||||||||||||||
Europe Segment Member | Severance Costs | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Severance Costs | 28 | ||||||||||||||||||
Europe Segment Member | Costs Associated with Exit or Disposal Activities | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Costs Associated with Exit or Disposal Activities | 8 | ||||||||||||||||||
Europe Segment Member | Total Cost Reduction Program | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Total Cost Reduction Program | 36 | ||||||||||||||||||
Asia Segment Member | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Operating Profit (Loss) | 303 | 271 | 246 | ||||||||||||||||
Asia Segment Member | Severance Costs | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Severance Costs | 2 | ||||||||||||||||||
Asia Segment Member | Total Cost Reduction Program | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Total Cost Reduction Program | 2 | ||||||||||||||||||
Surface Technologies Segment [Member] | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Operating Profit (Loss) | 123 | 111 | 106 | ||||||||||||||||
Surface Technologies Segment [Member] | Severance Costs | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Severance Costs | 11 | ||||||||||||||||||
Surface Technologies Segment [Member] | Costs Associated with Exit or Disposal Activities | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Costs Associated with Exit or Disposal Activities | 5 | ||||||||||||||||||
Surface Technologies Segment [Member] | Total Cost Reduction Program | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Total Cost Reduction Program | 16 | ||||||||||||||||||
Total Segments | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Operating Profit (Loss) | 2,746 | 2,657 | 2,502 | ||||||||||||||||
Total Segments | Severance Costs | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Severance Costs | 43 | ||||||||||||||||||
Total Segments | Costs Associated with Exit or Disposal Activities | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Costs Associated with Exit or Disposal Activities | 13 | ||||||||||||||||||
Total Segments | Total Cost Reduction Program | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Total Cost Reduction Program | 56 | ||||||||||||||||||
Venezuela Currency Devaluation [Member] | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Venezuela Exchange Rate | 50 | 50 | 4.3 | 4.3 | 6.3 | ||||||||||||||
Net income – Praxair, Inc. | -131 | -23 | -131 | -23 | |||||||||||||||
Operating Profit (Loss) | -131 | -23 | -131 | -23 | |||||||||||||||
Restructuring Reserve [Abstract] | |||||||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $0.45 | $0.08 | |||||||||||||||||
Cost Reduction Program [Member] | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Net income – Praxair, Inc. | -38 | ||||||||||||||||||
Operating Profit (Loss) | -56 | ||||||||||||||||||
Restructuring Reserve [Abstract] | |||||||||||||||||||
Income Tax Expense (Benefit) | -16 | ||||||||||||||||||
Noncontrolling Interests | -2 | ||||||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $0.12 | ||||||||||||||||||
Income tax benefit [Member] | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Net income – Praxair, Inc. | 24 | ||||||||||||||||||
Total Impact Of Items [Member] | |||||||||||||||||||
Restructuring And Related Cost [Line Items] | |||||||||||||||||||
Net income – Praxair, Inc. | -158 | -17 | |||||||||||||||||
Operating Profit (Loss) | ($138) | ($32) | |||||||||||||||||
[1] | 2014 and 2013 include the impact of the following benefits/(charges) (see Notes 2, 5 & 7):(Millions of dollars)OperatingProfit/(Loss) NetIncome/(Loss) Diluted Earnings Per ShareVenezuela currency devaluation - Q4$(131) $(131) $(0.45)Pension settlement charge - Q4(7) (5) (0.02)Bond redemption -Q4— (22) (0.07)Year 2014$(138) $(158) $(0.54) Venezuela currency devaluation – Q1$(23) $(23) $(0.08)Pension settlement charge – Q3(9) (6) (0.02)Income tax benefit - Q4— 24 0.08Bond redemption - Q4— (12) (0.04)Year 2013$(32) $(17) $(0.06) |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Mar. 01, 2013 |
location | |||||
employee | |||||
Business Acquisition Line Items | |||||
Goodwill, Acquired During Period | $86 | $719 | |||
Number of Businesses Acquired | 17 | ||||
Purchase Price of Acquisitions | 206 | 1,323 | 280 | ||
Goodwill | 3,121 | 3,194 | 2,507 | ||
Finite-lived Intangible Assets Acquired | 66 | 467 | |||
NuCO2 [Member] | |||||
Business Acquisition Line Items | |||||
Percentage Interest of NuCO2 to be Acquired | 100.00% | ||||
Number Of NuCO2 Customer Locations | 162,000 | ||||
Approximate number of employees in NuCO2 | 900 | ||||
Purchase Price of Acquisitions | 1,095 | ||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 230 | ||||
Sales Since Acquisition Date, First Year of Consolidation | 208 | ||||
Trade receivables, net | 17 | ||||
Property, plant and equipment | 199 | ||||
Intangible assets | 374 | ||||
Deferred income taxes | -85 | ||||
Other assets and (liabilities) | -28 | ||||
Goodwill | 618 | ||||
Purchase price | 1,095 | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 25 years | ||||
All acquisitions other than NuCO2 [Member] | |||||
Business Acquisition Line Items | |||||
Goodwill, Acquired During Period | 101 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 93 | ||||
Purchase Price of Acquisitions | 228 | ||||
Finite-lived Intangible Assets Acquired | 194 | ||||
All Acquisitions During the Period [Member] | |||||
Business Acquisition Line Items | |||||
Purchase Price of Acquisitions | 280 | ||||
Goodwill | $122 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2015 | $122 | ||
2016 | 109 | ||
2017 | 91 | ||
2018 | 75 | ||
2019 | 60 | ||
Thereafter | 60 | ||
Total Minimum Payments Under Operating Leases | 517 | ||
Present Value of Future Lease Payments Under Operating Leases | 439 | ||
Operating Leases, Rent Expense, Net [Abstract] | |||
Lease And Rental Expense | $148 | $140 | $120 |
Income_Taxes_Pretax_Income_and
Income Taxes (Pre-tax Income and Income Tax Provision) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Current tax expense - U.S. federal | $291 | $94 | $14 |
Current tax expense - State and local | 35 | 27 | 20 |
Current Foreign Tax Expense (Benefit) | 310 | 427 | 294 |
Total current tax expense | 636 | 548 | 328 |
Deferred tax expense (benefit) - U.S. federal | 14 | 164 | 198 |
Deferred tax expense (benefit) - State and local | 12 | 8 | 17 |
Deferred Foreign Income Tax Expense (Benefit) | 29 | -71 | 43 |
Total deferred income taxes | 55 | 101 | 258 |
Income Tax Expense (Benefit) | 691 | 649 | 586 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
Pre-tax income - United States | 1,004 | 890 | 880 |
Pre-tax income - Foreign | 1,391 | 1,557 | 1,416 |
Income Before Income Taxes and Equity Investments | $2,395 | $2,447 | $2,296 |
Income_Taxes_Tax_Rate_Analysis
Income Taxes (Tax Rate Analysis) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Unusual or Infrequent Item [Line Items] | ||||||
U.S. statutory income tax rate | $838 | $856 | $804 | |||
U.S. statutory income tax rate percentage | 35.00% | 35.00% | 35.00% | |||
State and local taxes - net of federal benefit | 31 | 23 | 24 | |||
State and local taxes - net of federal benefit percentage | 1.30% | 1.00% | 1.00% | |||
U.S. tax credits and deductions | -37 | [1] | -23 | [1] | -22 | [1] |
U.S. tax credits and deductions percentage | -1.50% | [1] | -1.00% | [1] | -1.00% | [1] |
Foreign tax rate differentials | -186 | [2] | -158 | [2] | -159 | [2] |
Foreign tax rate differentials percentage | -7.80% | [2] | -6.40% | [2] | -6.90% | [2] |
Income Tax Benefit from Realignment of Italian legal structure | -40 | [3] | ||||
Current Foreign Tax Expense (Benefit) | 310 | 427 | 294 | |||
Income Tax Benefit from Realignment of Italian legal structure, Percent | -1.60% | [3] | ||||
Income Tax Benefit from Liquidated Subsidiary | -55 | [4] | ||||
Effective Income Tax Rate Reconciliation, Disposition of Business | -2.40% | [4] | ||||
Other - net | -1 | -17 | -6 | |||
Other - net percentage | -0.80% | -0.20% | ||||
Income Tax Expense (Benefit) | 691 | 649 | 586 | |||
Provision for income taxes percentage | 28.90% | 26.50% | 25.50% | |||
Deferred Foreign Income Tax Expense (Benefit) | 29 | -71 | 43 | |||
Income Tax Reconciliation Devaluation | 46 | [5] | 8 | [5] | ||
Income Tax Reconciliation Devaluation, percent | 1.90% | [5] | 0.30% | [5] | ||
statute of limitations lapse [Member] | ||||||
Unusual or Infrequent Item [Line Items] | ||||||
Current Foreign Tax Expense (Benefit) | 56 | |||||
Italian Legal Realignment [Member] | ||||||
Unusual or Infrequent Item [Line Items] | ||||||
Income Tax Benefit from Realignment of Italian legal structure | 40 | [3] | ||||
Income Tax Reconciliation Realignment Noncontrolling Interests | 24 | |||||
Current Foreign Tax Expense (Benefit) | 56 | |||||
Deferred Foreign Income Tax Expense (Benefit) | ($96) | |||||
[1] | U.S. tax credits and deductions relate to manufacturing deductions and to the research and experimentation tax credit. | |||||
[2] | 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. | |||||
[3] | In December of 2013, Praxair's Italian legal structure was realigned. As a result of the new structure, an income tax benefit of $40 million ($24 million net of noncontrolling interests) was recorded. The benefit is recorded as $56 million in foreign current tax expense and $(96) million included in federal deferred tax expense. | |||||
[4] | In 2011 Praxair requested a pre-filing agreement (“PFAâ€) with the U.S. Internal Revenue Service (“IRSâ€) related to a loss on a liquidated subsidiary resulting from the divestiture of the U.S. Homecare Business. During the third quarter of 2012, the IRS approved the PFA resulting in a net income tax benefit of $(55) million. The benefit is recorded in U.S. current federal tax expense. | |||||
[5] | Impact related to non-deductible Venezuela currency devaluations in 2014 and 2013 (see Note 2). |
Income_Taxes_Net_Deferred_Tax_
Income Taxes (Net Deferred Tax Liabilities and Valuation Allowances) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Components of Deferred Tax Assets and Liabilities [Abstract] | ||||||
Fixed assets | $1,402 | $1,374 | ||||
Exchange gains | 85 | 61 | ||||
Goodwill | 144 | 127 | ||||
Intangible Assets | 125 | 112 | ||||
Other | 146 | 133 | ||||
Deferred Tax Liabilities, Gross | 1,902 | 1,807 | ||||
Carryforwards | 333 | 323 | ||||
Benefit plans and related | 389 | [1] | 285 | [1] | ||
Inventory | 18 | 20 | ||||
Accruals and other | 357 | [2] | 312 | [2] | ||
Total gross deferred tax assets | 1,097 | 940 | ||||
Valuation allowances | -106 | [3] | -85 | [3] | -86 | -107 |
Total net deferred tax assets | 991 | 855 | ||||
Total deferred tax liabilities | 911 | 952 | ||||
Prepaid and Other Current Assets, Deferred Taxes | 189 | 181 | ||||
Other Long-term Assets, Deferred Taxes | 98 | 72 | ||||
Deferred Credits, Deferred Taxes | 1,198 | 1,205 | ||||
Deferred tax asset - Pension,OPEB | 342 | 247 | ||||
Deferred Tax Assets, in Process Research and Development | 179 | 112 | ||||
Deferred Tax Assets, Goodwill and Intangible Assets | 67 | 70 | ||||
Valuation Allowance [Abstract] | ||||||
Charges to expense (income) | -20 | 1 | 9 | |||
Valuation Allowances And Reserves Translation Adjustments | 6 | |||||
Other, including write-offs | ($7) | $12 | ||||
[1] | Includes deferred taxes of $342 million and $247 million in 2014 and 2013, respectively, related to pension / OPEB funded status (see Notes 7 and 16). | |||||
[2] | Includes $179 million and $112 million in 2014 and 2013, respectively, related to research and development costs and $67 million and $70 million in 2014 and 2013, respectively, related to goodwill. | |||||
[3] | Summary of valuation allowances relating to deferred tax assets follows (millions of dollars): 2014 2013 2012 Balance, January 1,$(85) $(86) $(107) Income tax (charge) benefit(20) 1 9 Translation adjustments6 — — Other, including write-offs(7) — 12 Balance, December 31,$(106) $(85) $(86) |
Income_Taxes_Valuation_Allowan
Income Taxes (Valuation Allowances Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Other Tax Carryforward [Line Items] | ||
Operating Loss Carryforwards | $157,000,000 | |
Carryforwards | 333,000,000 | 323,000,000 |
Valuation Allowance [Abstract] | ||
Minimum likelihood that a position will be sustained upon tax examination needed to recognize a benefit | 50.00% | |
Undistributed earnings of foreign subsidiaries | 10,400,000,000 | |
Brazil Member | ||
Other Tax Carryforward [Line Items] | ||
Brazil net operating loss carryforward | 101,000,000 | |
United States Member | ||
Other Tax Carryforward [Line Items] | ||
Operating Loss Carryforwards, U.S. | 56,000,000 | |
US foreign tax credit carryforwards | 73,000,000 | |
US tax credit valuation allowance | 56,000,000 | |
Foreign Country Member | ||
Other Tax Carryforward [Line Items] | ||
Carryforwards | 36,000,000 | |
Total Company Less US Federal and Brazil NOL And US Foreign Tax Credits Member | ||
Other Tax Carryforward [Line Items] | ||
US tax credit valuation allowance | 50,000,000 | |
Carryforwards | 103,000,000 | |
U.S. State Member | ||
Other Tax Carryforward [Line Items] | ||
Carryforwards | $67,000,000 |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Positions) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Extraordinary and Unusual Items [Abstract] | ||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $8 | $12 | ||||
Expenses (Income) for interest and penalties on tax reserves | -3 | -11 | 1 | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||
Unrecognized income tax benefits, January 1 | 121 | 142 | 163 | |||
Additions for tax positions of prior years | 13 | 8 | 12 | |||
Reductions for tax positions of prior years | -2 | -24 | -17 | |||
Additions for current year tax positions | 3 | 10 | ||||
Reductions for settlements with taxing authorities | -3 | [1] | -2 | [1] | -1 | [1] |
Reductions as a result of a lapse of an applicable statute of limitations | -56 | [2] | -1 | [2] | -9 | [2] |
Foreign currency translation and other | -5 | -12 | -6 | |||
Unrecognized income tax benefits, December 31 | $71 | $121 | $142 | |||
[1] | (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. | |||||
[2] | U.S. tax credits and deductions relate to manufacturing deductions and to the research and experimentation tax credit. |
Income_Taxes_Open_Years_by_Maj
Income Taxes (Open Years by Major Tax Jurisdictions) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Domestic Country Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2011 |
Domestic Country Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2014 |
Foreign Country Canada Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2007 |
Foreign Country Canada Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2014 |
Foreign Country Mexico Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2009 |
Foreign Country Mexico Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2014 |
Foreign Country Germany Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2008 |
Foreign Country Germany Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2014 |
Foreign Country Italy Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2010 |
Foreign Country Italy Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2014 |
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 | 2014 |
Foreign Country Brazil Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2003 |
Foreign Country Brazil Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2014 |
Foreign Country China Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2009 |
Foreign Country China Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2014 |
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 | 2014 |
Foreign Country Korea Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2008 |
Foreign Country Korea Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2014 |
Foreign Country Thailand Member | Minimum | |
Income Tax Examination Line Items | |
Open Years | 2008 |
Foreign Country Thailand Member | Maximum | |
Income Tax Examination Line Items | |
Open Years | 2014 |
Earnings_Per_Share_Praxair_Inc2
Earnings Per Share - Praxair, Inc. Shareholders (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||
Denominator (Details) [Abstract] | |||||||||||||||||
Weighted average shares outstanding | 291,987,000 | 294,994,000 | 297,746,000 | ||||||||||||||
Shares earned and issuable under compensation plans | 507,000 | 529,000 | 570,000 | ||||||||||||||
Weighted average shares used in basic earnings per share | 290,667,000 | 292,170,000 | 292,945,000 | 294,195,000 | 294,697,000 | 295,124,000 | 295,668,000 | 296,604,000 | 292,494,000 | 295,523,000 | 298,316,000 | ||||||
Stock options and awards | 3,114,000 | 3,442,000 | 3,529,000 | ||||||||||||||
Weighted average shares used in diluted earnings per share | 293,555,000 | 295,239,000 | 295,976,000 | 297,253,000 | 298,225,000 | 298,357,000 | 298,654,000 | 299,700,000 | 295,608,000 | 298,965,000 | 301,845,000 | ||||||
Basic Earnings Per Common Share | $1.04 | $1.63 | $1.59 | $1.52 | $1.61 | $1.51 | $1.50 | $1.32 | $5.79 | $5.94 | $5.67 | ||||||
Diluted Earnings Per Common Share | $1.03 | $1.62 | $1.58 | $1.51 | $1.59 | $1.49 | $1.49 | $1.30 | $5.73 | $5.87 | $5.61 | ||||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||||||||||||||
Antidilutive excluded from the computation of Earnings Per Share | 1,589,235 | ||||||||||||||||
Net Income (Loss) Attributable to Parent [Abstract] | |||||||||||||||||
Net income – Praxair, Inc. | $302 | [1] | $477 | $467 | $448 | $474 | [1] | $445 | [1] | $445 | $391 | [1] | $1,694 | [1] | $1,755 | [1] | $1,692 |
[1] | 2014 and 2013 include the impact of the following benefits/(charges) (see Notes 2, 5 & 7):(Millions of dollars)OperatingProfit/(Loss) NetIncome/(Loss) Diluted Earnings Per ShareVenezuela currency devaluation - Q4$(131) $(131) $(0.45)Pension settlement charge - Q4(7) (5) (0.02)Bond redemption -Q4— (22) (0.07)Year 2014$(138) $(158) $(0.54) Venezuela currency devaluation – Q1$(23) $(23) $(0.08)Pension settlement charge – Q3(9) (6) (0.02)Income tax benefit - Q4— 24 0.08Bond redemption - Q4— (12) (0.04)Year 2013$(32) $(17) $(0.06) |
Supplemental_Information_Detai
Supplemental Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | ||||
Accounts, Notes, Loans and Financing Receivable, Net, Current [Abstract] | ||||||||||||||||
Trade | $1,746 | $1,815 | $1,746 | $1,815 | ||||||||||||
Other Accounts Receivable | 152 | 175 | 152 | 175 | ||||||||||||
Accounts Receivable Gross Current Total | 1,898 | 1,990 | 1,898 | 1,990 | ||||||||||||
Less: allowance for doubtful accounts (a) | -102 | [1] | -98 | [1] | -102 | [1] | -98 | [1] | ||||||||
Accounts receivable – net | 1,796 | 1,892 | 1,796 | 1,892 | ||||||||||||
Provisions to the allowance for doubtful accounts | 39 | 38 | 29 | |||||||||||||
Deferred Revenue and Credits, Noncurrent [Abstract] | ||||||||||||||||
Deferred Income Tax Liabilities (Note 5) | 1,198 | 1,205 | 1,198 | 1,205 | ||||||||||||
Other | 83 | 191 | 83 | 191 | ||||||||||||
Deferred credits | 1,281 | 1,396 | 1,281 | 1,396 | ||||||||||||
Depreciation, Depletion and Amortization [Abstract] | ||||||||||||||||
Depreciation | 1,123 | 1,068 | 980 | |||||||||||||
Amortization of other intangibles (Note 10) | 47 | 41 | 21 | |||||||||||||
Depreciation and amortization | 291 | 301 | 293 | 285 | 287 | 281 | 275 | 266 | 1,170 | 1,109 | 1,001 | |||||
Interest and Debt Expense [Abstract] | ||||||||||||||||
Interest incurred on debt | 215 | 233 | 226 | |||||||||||||
Interest Capitalized | -38 | -69 | -70 | |||||||||||||
Amortization of swap termination costs (Note 12) | -4 | -15 | ||||||||||||||
Bond redemption (a) | 36 | [2] | 18 | [2] | ||||||||||||
Interest expense – net | 213 | 178 | 141 | |||||||||||||
Inventory, Finished Goods and Work in Process, Gross [Abstract] | ||||||||||||||||
Raw materials and supplies | 200 | [3] | 167 | [3] | 200 | [3] | 167 | [3] | ||||||||
Work in process | 52 | [3] | 58 | [3] | 52 | [3] | 58 | [3] | ||||||||
Finished goods | 299 | [3] | 281 | [3] | 299 | [3] | 281 | [3] | ||||||||
Inventories | 551 | [3] | 506 | [3] | 551 | [3] | 506 | [3] | ||||||||
Percentage of LIFO Inventory | 6.00% | 6.00% | 6.00% | 6.00% | ||||||||||||
Operating Income (Loss) | 9 | |||||||||||||||
Inventory LIFO Reserve | 9 | 9 | ||||||||||||||
Noncontrolling Interest [Abstract] | ||||||||||||||||
NoncontrollingInterestsIncomeFromOperations | 40 | 41 | 34 | |||||||||||||
Income tax benefit attributable to noncontrolling interest | 16 | |||||||||||||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 12 | 24 | 18 | |||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 52 | 81 | 52 | |||||||||||||
Other Current Liabilities [Abstract] | ||||||||||||||||
Accrued expenses | 296 | 291 | 296 | 291 | ||||||||||||
Payrolls | 177 | 184 | 177 | 184 | ||||||||||||
Cost reduction program and other charges (Note 2) | 7 | 15 | 7 | 15 | ||||||||||||
Pension and postretirement (Note 16) | 39 | 33 | 39 | 33 | ||||||||||||
Interest payable | 69 | 62 | 69 | 62 | ||||||||||||
Employee benefit accrual | 22 | 20 | 22 | 20 | ||||||||||||
Severance | 14 | 13 | 14 | 13 | ||||||||||||
Insurance reserves | 9 | 11 | 9 | 11 | ||||||||||||
Other | 285 | 161 | 285 | 161 | ||||||||||||
Other current liabilities | 918 | 790 | 918 | 790 | ||||||||||||
Other Income Expense Net [Abstract] | ||||||||||||||||
Currency related net gains (losses) | 1 | 3 | -9 | |||||||||||||
Partnership income | 16 | 7 | 10 | |||||||||||||
Legal Settlement Gain | 10 | 24 | ||||||||||||||
Net legal settlements | 24 | |||||||||||||||
Severance expense | -22 | -14 | -17 | |||||||||||||
Business divestitures and asset gains (losses) – net | 36 | 43 | 49 | |||||||||||||
Other - net | -22 | -17 | -14 | |||||||||||||
Other income (expenses) – net | 9 | 32 | 43 | |||||||||||||
Other Long Term Liabilities [Abstract] | ||||||||||||||||
Pension and postretirement (Note 16) | 777 | 498 | 777 | 498 | ||||||||||||
Tax liabilities for uncertain tax positions | 57 | 55 | 57 | 55 | ||||||||||||
Interest and penalties for uncertain tax positions (Note 5) | 8 | 12 | 8 | 12 | ||||||||||||
Insurance reserves | 23 | 22 | 23 | 22 | ||||||||||||
Other Long Term Liabilites Other | 311 | 272 | 311 | 272 | ||||||||||||
Other long-term liabilities | 1,176 | 859 | 1,176 | 859 | ||||||||||||
Prepaid Expense and Other Assets, Current [Abstract] | ||||||||||||||||
Deferred income taxes (Note 5) | 189 | 181 | 189 | 181 | ||||||||||||
Prepaid | 116 | [4] | 145 | [4] | 116 | [4] | 145 | [4] | ||||||||
Other | 61 | 54 | 61 | 54 | ||||||||||||
Prepaid and other current assets | 366 | 380 | 366 | 380 | ||||||||||||
Estimated Income Tax Payments | 36 | 75 | 36 | 75 | ||||||||||||
Prepaid Expense and Other Assets, Noncurrent [Abstract] | ||||||||||||||||
Pension assets (Note 16) | 35 | 42 | 35 | 42 | ||||||||||||
Insurance contracts (c) | 73 | [5] | 73 | [5] | 73 | [5] | 73 | [5] | ||||||||
Long-term receivables, net (d) | 43 | [6] | 36 | [6] | 43 | [6] | 36 | [6] | ||||||||
Deposits | 64 | 62 | 64 | 62 | ||||||||||||
Investments carried at cost | 8 | 7 | 8 | 7 | ||||||||||||
Deferred charges | 114 | 133 | 114 | 133 | ||||||||||||
Deferred income taxes (Note 5) | 98 | 72 | 98 | 72 | ||||||||||||
Other | 114 | 144 | 114 | 144 | ||||||||||||
Other long-term assets | 549 | 569 | 549 | 569 | ||||||||||||
Long-term receivables reserve | 48 | 51 | 48 | 51 | ||||||||||||
Selling, General and Administrative Expense [Abstract] | ||||||||||||||||
Selling | 572 | 567 | 547 | |||||||||||||
General and administrative | 736 | 782 | 723 | |||||||||||||
Selling, general and administrative | 1,308 | 1,349 | 1,270 | |||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Repayments of Long-term Debt | 764 | 1,347 | 1,522 | |||||||||||||
Accrued taxes | 119 | 168 | 119 | 168 | ||||||||||||
US Long-term 5.375% Notes due 2016 [Member] | ||||||||||||||||
Interest and Debt Expense [Abstract] | ||||||||||||||||
Bond redemption (a) | 36 | |||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Extinguishment of Debt, Amount | 400 | |||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $0.07 | |||||||||||||||
Extinguishment of Debt, Gain (Loss), Net of Tax | 22 | |||||||||||||||
Repayments of Long-term Debt | 434 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.38% | 5.38% | 5.38% | 5.38% | ||||||||||||
US Long-term 5.25% Notes due 2014 [Member] | ||||||||||||||||
Interest and Debt Expense [Abstract] | ||||||||||||||||
Bond redemption (a) | 18 | |||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Extinguishment of Debt, Amount | 400 | |||||||||||||||
Income (Loss) from Continuing Operations, Per Diluted Share | $0.04 | |||||||||||||||
Extinguishment of Debt, Gain (Loss), Net of Tax | 12 | |||||||||||||||
Repayments of Long-term Debt | $418 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | 5.25% | ||||||||||||||
[1] | Provisions to the allowance for doubtful accounts were $39 million, $38 million, and $29 million in 2014, 2013, and 2012, respectively. The allowance activity in each period related primarily to write-offs of uncollectible amounts, net of recoveries and currency movements. | |||||||||||||||
[2] | In December 2014, Praxair redeemed $400 million of 5.375% notes due November 2016 for $434 million resulting in a $36 million charge ($22 million after-tax, or $0.07 per diluted share). In December 2013, Praxair redeemed $400 million of 5.25% notes due November 2014 for $418 million resulting in an $18 million charge ($12 million after-tax, or $0.04 per diluted share). | |||||||||||||||
[3] | Effective July 1, 2014, Praxair changed its method of accounting for all remaining U.S. operations that were using the last-in, first-out ("LIFO") method to the average-cost method, primarily raw materials. Prior to this change, approximately 6% of consolidated inventories were accounted for under the LIFO method. Praxair applied this change as a cumulative effect adjustment in the third quarter 2014 and did not restate prior periods because the impact was not material. The accounting change increased inventories by $9 million at July 1, 2014. The Company believes the change is preferable because it will better reflect the impact of current costs in both the consolidated balance sheets and consolidated statements of income. Had the Company not changed its accounting method, reported inventory amounts at December 31, 2014 would not have been significantly different than the amount disclosed above at July 1, 2014.At December 31, 2013, approximately 6% of total inventories were valued using the LIFO method, all in the United States. If inventories had been valued at current costs, they would have been approximately $9 million higher than reported at December 31, 2013. | |||||||||||||||
[4] | Includes estimated income tax payments of $36 million in 2014 and $75 million in 2013. | |||||||||||||||
[5] | Consists primarily of insurance contracts and other investments to be utilized for non-qualified pension and OPEB obligations. | |||||||||||||||
[6] | Financing receivables is not normal practice for the company. The balances at December 31, 2014 and 2013 are net of reserves of $48 million and $51 million, respectively. The amounts in both periods relate primarily to government receivables in Brazil and other long-term notes receivable from customers, the majority of which are fully reserved. Collectibility is reviewed regularly and uncollectible amounts are written-off as appropriate. The account balance change during 2014 was primarily the result of additional receivables, net of reserves. |
Supplemental_Information_Accum
Supplemental Information (Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Derivatives - net of taxes | ($1) | ($4) | ||
Pension and OPEB funded status obligation | -633 | -469 | ||
Funded Status Obligations, Taxes | -342 | -247 | ||
Accumulated other comprehensive income (loss) | -3,185 | -1,981 | ||
Segment Reporting Information [Line Items] | ||||
Foreign Currency Translation, Taxes | -64 | -60 | ||
North America Segment Member | ||||
Segment Reporting Information [Line Items] | ||||
Cumulative Translation Adjustment | -553 | [1] | -315 | [1] |
South America Segment Member | ||||
Segment Reporting Information [Line Items] | ||||
Cumulative Translation Adjustment | -1,510 | [1] | -1,179 | [1] |
Europe Segment Member | ||||
Segment Reporting Information [Line Items] | ||||
Cumulative Translation Adjustment | -432 | [1] | -63 | [1] |
Asia Segment Member | ||||
Segment Reporting Information [Line Items] | ||||
Cumulative Translation Adjustment | -49 | 21 | ||
Surface Technologies Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Cumulative Translation Adjustment | -7 | 28 | ||
Total Segments | ||||
Segment Reporting Information [Line Items] | ||||
Cumulative Translation Adjustment | ($2,551) | ($1,508) | ||
[1] | North America consists primarily of currency translation adjustments in Canada and Mexico, South America relates primarily to Brazil and Argentina, and Europe relates primarily to Spain and Germany. |
Property_Plant_Equipment_Net_D
Property, Plant & Equipment - Net (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Property, Plant and Equipment | ||||||
Gross Balance | 23,854 | $24,031 | ||||
Less: accumulated depreciation | -11,857 | -11,753 | ||||
Property, plant and equipment – net | 11,997 | [1] | 12,278 | [1] | 11,453 | [1] |
Production plants (primarily 15-year life) (a) | ||||||
Property, Plant and Equipment | ||||||
Gross Balance | 14,400 | [2] | 14,378 | [2] | ||
Storage tanks | ||||||
Property, Plant and Equipment | ||||||
Gross Balance | 2,267 | 2,330 | ||||
Transportation equipment and other | ||||||
Property, Plant and Equipment | ||||||
Gross Balance | 1,895 | 1,866 | ||||
Cylinders (primarily 30-year life) | ||||||
Property, Plant and Equipment | ||||||
Gross Balance | 1,724 | 1,740 | ||||
Buildings | ||||||
Property, Plant and Equipment | ||||||
Gross Balance | 1,089 | 1,108 | ||||
Land and improvements (b) | ||||||
Property, Plant and Equipment | ||||||
Gross Balance | 499 | [3] | 493 | [3] | ||
Construction in progress | ||||||
Property, Plant and Equipment | ||||||
Gross Balance | 1,980 | $2,116 | ||||
Minimum | ||||||
Property, Plant and Equipment | ||||||
Useful life | 3 years | |||||
Minimum | Production plants (primarily 15-year life) (a) | ||||||
Property, Plant and Equipment | ||||||
Useful life | 10 years | [2] | ||||
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 | 0 years | [3] | ||||
Maximum | ||||||
Property, Plant and Equipment | ||||||
Useful life | 40 years | |||||
Maximum | Production plants (primarily 15-year life) (a) | ||||||
Property, Plant and Equipment | ||||||
Useful life | 20 years | [2] | ||||
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 | 20 years | [3] | ||||
[1] | (c)Long-lived assets include property, plant and equipment – net. | |||||
[2] | (a) - Depreciable lives of production plants related to long-term customer supply contracts are consistent with the contract lives. | |||||
[3] | (b) - Land is not depreciated. |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $3,194 | $2,507 |
Goodwill, Acquired During Period | 86 | 719 |
Purchase adjustments & other | 3 | |
Foreign currency translation | -159 | -35 |
Goodwill, Ending Balance | 3,121 | 3,194 |
North America Segment Member | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 2,117 | 1,499 |
Goodwill, Acquired During Period | 47 | 625 |
Purchase adjustments & other | 1 | 3 |
Foreign currency translation | -26 | -10 |
Goodwill, Ending Balance | 2,139 | 2,117 |
South America Segment Member | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 166 | 195 |
Goodwill, Acquired During Period | 4 | |
Foreign currency translation | -23 | -29 |
Goodwill, Ending Balance | 147 | 166 |
Europe Segment Member | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 743 | 645 |
Goodwill, Acquired During Period | 17 | 94 |
Purchase adjustments & other | -6 | |
Foreign currency translation | -100 | 4 |
Goodwill, Ending Balance | 654 | 743 |
Asia Segment Member | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 24 | 25 |
Goodwill, Acquired During Period | 14 | |
Foreign currency translation | -1 | |
Goodwill, Ending Balance | 38 | 24 |
Surface Technologies Segment [Member] | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 144 | 143 |
Goodwill, Acquired During Period | 4 | |
Purchase adjustments & other | 5 | |
Foreign currency translation | -10 | 1 |
Goodwill, Ending Balance | $143 | $144 |
Other_Intangible_Assets_Detail
Other Intangible Assets (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Finite Lived Intangible Assets [Line Items] | |||||
Beginning Period Cost | $735 | $289 | |||
Additions (primarily acquisitions) | 66 | 467 | |||
Foreign currency translation | -24 | 3 | |||
Other | -24 | [1] | |||
Ending Period Cost | 777 | 735 | 289 | ||
Beginning Accumulated Amortization | -139 | -116 | |||
Amortization expense | -47 | -41 | -21 | ||
Foreign currency translation | 7 | -1 | |||
Other | 5 | [1] | 19 | [1] | |
Ending Accumulated Amortization | -174 | -139 | -116 | ||
Net balance finite lived intangibles | 603 | 596 | |||
Additional Finite Lived Intangible Asset Information (Details) [Abstract] | |||||
Remaining weighted-average amortization period for intangible asset | 18 years 0 months | ||||
2015 | 49 | ||||
2016 | 48 | ||||
2017 | 42 | ||||
2018 | 37 | ||||
2019 | 37 | ||||
Thereafter | 390 | ||||
Customer & License/Use Agreements | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Beginning Period Cost | 661 | 232 | |||
Additions (primarily acquisitions) | 54 | 433 | |||
Foreign currency translation | -22 | 3 | |||
Other | -7 | [1] | |||
Ending Period Cost | 693 | 661 | |||
Beginning Accumulated Amortization | -118 | -89 | |||
Amortization expense | -36 | -32 | |||
Foreign currency translation | 7 | -1 | |||
Other | 4 | [1] | |||
Ending Accumulated Amortization | -147 | -118 | |||
Net balance finite lived intangibles | 546 | 543 | |||
Non-compete Agreements | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Beginning Period Cost | 31 | 37 | |||
Additions (primarily acquisitions) | 12 | 4 | |||
Foreign currency translation | -1 | ||||
Other | -5 | [1] | -10 | [1] | |
Ending Period Cost | 37 | 31 | |||
Beginning Accumulated Amortization | -16 | -20 | |||
Amortization expense | -7 | -6 | |||
Other | 5 | [1] | 10 | [1] | |
Ending Accumulated Amortization | -18 | -16 | |||
Net balance finite lived intangibles | 19 | 15 | |||
Patents & Other | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Beginning Period Cost | 43 | 20 | |||
Additions (primarily acquisitions) | 30 | ||||
Foreign currency translation | -1 | ||||
Other | 5 | [1] | -7 | [1] | |
Ending Period Cost | 47 | 43 | |||
Beginning Accumulated Amortization | -5 | -7 | |||
Amortization expense | -4 | -3 | |||
Other | 5 | [1] | |||
Ending Accumulated Amortization | -9 | -5 | |||
Net balance finite lived intangibles | $38 | $38 | |||
[1] | Other primarily relates to the write-off of fully amortized assets, purchase accounting adjustments and reclassifications. |
Debt_ST_and_LT_Debt_Details
Debt (ST and LT Debt) (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Feb. 05, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Mar. 31, 2015 | Feb. 05, 2015 | Feb. 05, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | |||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | US Long-term 4.375% Notes due 2014 | US Long-term 4.375% Notes due 2014 | US Long-term 5.25% Notes due 2014 | US Long-term 4.625% Notes due 2015 | US Long-term 4.625% Notes due 2015 | US Long-term 3.25% Notes due 2015 | US Long-term 3.25% Notes due 2015 | US Long-term 0.75% Notes due 2016 | US Long-term 0.75% Notes due 2016 | US Long-term 5.375% Notes due 2016 | US Long-term 5.375% Notes due 2016 | US Long-term 5.20% Notes due 2017 | US Long-term 5.20% Notes due 2017 | US Long-term1.05% Notes due 2017 | US Long-term1.05% Notes due 2017 | US Long-term 1.20% Notes Due 2018 [Member] | US Long-term 1.20% Notes Due 2018 [Member] | US Long-term 1.25% Notes due 2018 [Member] | US Long-term 1.25% Notes due 2018 [Member] | US Long-term 4.50% Notes due 2019 | US Long-term 4.50% Notes due 2019 | px_UsLongTerm190NotesDue2019Member [Member] | px_UsLongTerm190NotesDue2019Member [Member] | Euro Denominated Long-term 1.50% Notes Due 2020 [Member] | Euro Denominated Long-term 1.50% Notes Due 2020 [Member] | US Long-term 4.05% Notes due 2021 | US Long-term 4.05% Notes due 2021 | US Long-term 3.00% Notes due 2021 | US Long-term 3.00% Notes due 2021 | US Long-term 2.45% Notes due 2022 | US Long-term 2.45% Notes due 2022 | US Long-term 2.20% Notes due 2022 | US Long-term 2.20% Notes due 2022 | US Long-term 2.70% Notes due 2023 | US Long-term 2.70% Notes due 2023 | Euro Denominated Long-term 1.625% Notes Due 2025 [Member] [Member] | Euro Denominated Long-term 1.625% Notes Due 2025 [Member] [Member] | US Long-term 3.55% Notes due 2042 | US Long-term 3.55% Notes due 2042 | US Long-term 3.55% Notes due 2042 | US Long-term other | US Long-term other | Other International Bank Borrowings | Other International Bank Borrowings | Total Debt Issued During Fiscal Year | US Long-term floating plus 0.33% Notes Due 2017 [Member] | US Long-term floating plus 0.33% Notes Due 2017 [Member] | US Long-term 2.65% Notes due 2025 [Member] | Line of Credit [Member] | $2.0 Billion senior unsecured credit facility replaced December 2014 | Net Investment Hedging [Member] | |||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | Rate | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||
Debt Instrument Line Items | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value increase | $14,000,000 | $22,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of Long-term Debt | 764,000,000 | 1,347,000,000 | 1,522,000,000 | 300,000,000 | 418,000,000 | 434,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal Amount of Bond Redemption | 400,000,000 | 400,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on Bond Redemption | 36,000,000 | [1] | 18,000,000 | [1] | 18,000,000 | 36,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bond Redemption, Loss, Net of Tax | 12,000,000 | 22,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes - Carrying Amount | 300,000,000 | [2] | 500,000,000 | [3] | 500,000,000 | [3] | 408,000,000 | [3],[4] | 418,000,000 | [3],[4] | 400,000,000 | 400,000,000 | 400,000,000 | [2] | 325,000,000 | 325,000,000 | 400,000,000 | 400,000,000 | 500,000,000 | 500,000,000 | 481,000,000 | [4],[5] | 478,000,000 | [4],[5] | 599,000,000 | [5] | 598,000,000 | [5] | 500,000,000 | 500,000,000 | 722,000,000 | [5],[6] | 499,000,000 | [5] | 498,000,000 | [5] | 497,000,000 | [5] | 497,000,000 | [5] | 598,000,000 | [5] | 598,000,000 | [5] | 499,000,000 | [5] | 499,000,000 | [5] | 499,000,000 | [5] | 498,000,000 | [5] | 599,000,000 | [5],[6] | 200,000,000 | 466,000,000 | [5] | 466,000,000 | [5] | 150,000,000 | 400,000,000 | |||||||||||||||||||
Other Debt - Carrying Amount | 4,000,000 | 5,000,000 | 167,000,000 | 140,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.38% | 4.00% | 5.25% | 4.63% | 4.63% | 3.25% | 3.25% | 0.75% | 0.75% | 5.38% | 5.38% | 5.20% | 5.20% | 1.05% | 1.05% | 1.20% | 1.20% | 1.25% | 1.25% | 4.50% | 4.50% | 1.90% | 1.90% | 1.50% | 1.50% | 4.05% | 4.05% | 3.00% | 3.00% | 2.45% | 2.45% | 2.20% | 2.20% | 2.70% | 2.70% | 1.63% | 1.63% | 3.55% | 3.55% | 3.55% | 2.65% | |||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 2,500,000,000 | 2,000,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Face Value | 600,000,000 | 500,000,000 | 1,100,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives used in Net Investment Hedge, Increase (Decrease), Gross of Tax | 125,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.33% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt, by Current and Noncurrent [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying value of long-term debt including current portion | 8,671,000,000 | 8,029,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current portion of long-term debt | -2,000,000 | -3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations under capital lease | 8,000,000 | 9,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | 8,669,000,000 | 8,026,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt And Capital Lease Obligations | 9,258,000,000 | 8,811,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Paper | 514,000,000 | 712,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other bank borrowings (Primarily International) | 73,000,000 | 70,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total short-term debt | $587,000,000 | $782,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | In December 2014, Praxair redeemed $400 million of 5.375% notes due November 2016 for $434 million resulting in a $36 million charge ($22 million after-tax, or $0.07 per diluted share). In December 2013, Praxair redeemed $400 million of 5.25% notes due November 2014 for $418 million resulting in an $18 million charge ($12 million after-tax, or $0.04 per diluted share). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | (a)In March 2014, Praxair repaid $300 million of 4.375% notes that became due. In December of 2014, Praxair redeemed $400 million of 5.375% notes due November 2016 for $434 million resulting in an $36 million bond redemption charge (see Note 7). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | (b)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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | (d)December 31, 2014 and 2013 include a $14 million and $22 million fair value increase, respectively, related to hedge accounting. See Note 12 for additional information. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | (c)Amounts are net of unamortized discounts. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | (e)During 2014, Praxair issued the following Euro-denominated notes totaling €1.1 billion: €600 million of 1.50% Euro-denominated notes due 2020 and €500 million of 1.625% Euro-denominated notes due 2025. These debt issuances have been designated as a hedges of the net investment position in European operations where the Euro is the functional currency (see Note 12). The proceeds of this debt issuance were used for general corporate purposes, including acquisitions, repayment of debt and share repurchases under the company's share repurchase program. Since the time the Euro-denominated notes were first issued in March 2014 through December 31, 2014, exchange rate movements have reduced long-term debt by $125 million. |
Debt_Credit_Facilities_Details
Debt (Credit Facilities) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
$2.5 Billion Senior Unsecured Credit Facilty, expires in 2019 | |
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 | 18-Dec-19 |
Debt Covenant Limit | 0.7 |
Debt Covenant Actual Compliance | 0.54 |
$2.0 Billion senior unsecured credit facility replaced December 2014 | |
Line Of Credit Facility [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $2,000,000,000 |
Debt_Other_Debt_Information_De
Debt (Other Debt Information) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Debt Instrument Line Items | |||
2015 | $2 | [1] | |
2016 | 407 | ||
2017 | 775 | ||
2018 | 1,083 | ||
2019 | 2,008 | [1] | |
Thereafter | 4,396 | ||
Carrying value of long-term debt including current portion | 8,671 | 8,029 | |
Long-term Debt, Other Disclosures [Abstract] | |||
Short Term Debt Weighted Average Interest Rate | 0.60% | 0.40% | |
Pledged Assets | 9 | ||
Secured Long Term Debt | 8 | ||
Debt Instruments That Retain Long Term Classification Due to Ability And Intent To Refinance Member | |||
Debt Instrument Line Items | |||
Senior Notes | $908 | ||
[1] | $908 million of debt due in 2015 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 $2.5 billion senior unsecured credit facility with a syndicate of banks which expires in 2019. |
Financial_Instruments_Details
Financial Instruments (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Jun. 30, 2012 | Aug. 31, 2011 | Dec. 31, 2008 | Feb. 29, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | Net Investment Hedging [Member] | Jul 2012 Treasury Lock [Member] | Aug 2011Treasury Lock Member | December 2008 Treasury Lock Member | February 2008 Treasury Lock Member | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Not Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Cash Flow | Derivatives Designated as Hedging Instruments - Fair Value | Derivatives Designated as Hedging Instruments - Fair Value | Derivatives Designated as Hedging Instruments - Fair Value | Derivatives Designated as Hedging Instruments - Fair Value | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Euro Denominated Long-term 1.50% Notes Due 2020 [Member] | Euro Denominated Long-term 1.50% Notes Due 2020 [Member] | Euro Denominated Long-term 1.625% Notes Due 2025 [Member] [Member] | Euro Denominated Long-term 1.625% Notes Due 2025 [Member] [Member] | ||||||||||||||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Anticipated Net Income | Other Balance Sheet Items Member | Other Balance Sheet Items Member | Other Balance Sheet Items Member | Debt-Related Member | Debt-Related Member | Debt-Related Member | Foreign Exchange Contract | Foreign Exchange Contract | Foreign Exchange Contract | Treasury Rate Locks Member | Treasury Rate Locks Member | Treasury Rate Locks Member | Treasury Rate Locks Member | Treasury Rate Locks Member | Treasury Rate Locks Member | Treasury Rate Locks Member | Treasury Rate Locks Member | Treasury Rate Locks Member | Treasury Rate Locks Member | Treasury Rate Locks Member | Treasury Rate Locks Member | Treasury Rate Locks Member | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | USD ($) | USD ($) | USD ($) | Net Investment Hedging [Member] | Forecasted Purchases | Forecasted Purchases | Forecasted Purchases | Total Treasury Locks Member | USD ($) | EUR (€) | USD ($) | EUR (€) | |||||||||||||||||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Balance Sheet Items | Balance Sheet Items | Forecasted Purchases | Jul 2012 Treasury Lock [Member] | Jul 2012 Treasury Lock [Member] | Jul 2012 Treasury Lock [Member] | Aug 2011Treasury Lock Member | Aug 2011Treasury Lock Member | Aug 2011Treasury Lock Member | December 2008 Treasury Lock Member | December 2008 Treasury Lock Member | December 2008 Treasury Lock Member | February 2008 Treasury Lock Member | February 2008 Treasury Lock Member | Total Treasury Locks Member | Total Treasury Locks Member | USD ($) | USD ($) | September 2009 400 Million Dollar Swap | July 2013 475 Million Dollar Swap [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Notes | $722,000,000 | [1],[2] | $599,000,000 | [1],[2] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives used in Net Investment Hedge, Increase (Decrease), Gross of Tax | 125,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amount of Derivatives | 3,302,000,000 | 3,077,000,000 | 500,000,000 | 2,427,000,000 | 2,197,000,000 | 5,000,000 | 875,000,000 | 875,000,000 | 875,000,000 | 880,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Liabilities | 13,000,000 | 14,000,000 | 13,000,000 | [3] | 14,000,000 | [3] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives Assets | 19,000,000 | 26,000,000 | 5,000,000 | [3] | 4,000,000 | [3] | 14,000,000 | [4] | 22,000,000 | [4] | 14,000,000 | 22,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Face Amount | 500,000,000 | [5] | 500,000,000 | [5] | 600,000,000 | [5] | 500,000,000 | [5] | 875,000,000 | 400,000,000 | 475,000,000 | 600,000,000 | 500,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Interest Rate Stated Percentage | 2.20% | 3.00% | 4.50% | 4.63% | 3.25% | 1.25% | 1.50% | 1.50% | 1.63% | 1.63% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Gain (Loss) on Hedge, Gross | -1,000,000 | [6] | -2,000,000 | [6] | -8,000,000 | [6] | -9,000,000 | [6] | 8,000,000 | [6] | 10,000,000 | [6] | -1,000,000 | [6] | -1,000,000 | [6] | -2,000,000 | [6] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payments for Hedge, Financing Activities | -2,000,000 | -11,000,000 | -7,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of Pre-Tax Gain (Loss) Recognized in Earnings | -71,000,000 | [7] | -55,000,000 | [7] | 28,000,000 | [7] | -4,000,000 | [7] | -2,000,000 | [7] | -9,000,000 | [7] | -1,000,000 | [7] | -69,000,000 | [7] | -46,000,000 | [7] | 33,000,000 | [7] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in AOCI, Before Tax | 4,000,000 | 1,000,000 | -1,000,000 | -5,000,000 | [8] | 1,000,000 | [8] | -1,000,000 | [8] | -6,000,000 | [8] | 1,000,000 | [8] | 1,000,000 | [8] | 1,000,000 | [8] | -2,000,000 | [8] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Tax Impact of Net Change in AOCI | 1,000,000 | [6] | 2,000,000 | [8] | 1,000,000 | [8] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) Recognized in AOCI Net of Tax | -3,000,000 | [8] | 1,000,000 | [8] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Change in AOCI | 3,000,000 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original Deferred Gain on Settlement of Derivative Instruments - Gross | 16,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments Gain Loss Recognized In Other Comprehensive Income Effective Portion Net Of Tax | -1,000,000 | [6] | -1,000,000 | [6] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of Deferred Hedge Gains | $4,000,000 | $15,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | (e)During 2014, Praxair issued the following Euro-denominated notes totaling €1.1 billion: €600 million of 1.50% Euro-denominated notes due 2020 and €500 million of 1.625% Euro-denominated notes due 2025. These debt issuances have been designated as a hedges of the net investment position in European operations where the Euro is the functional currency (see Note 12). The proceeds of this debt issuance were used for general corporate purposes, including acquisitions, repayment of debt and share repurchases under the company's share repurchase program. Since the time the Euro-denominated notes were first issued in March 2014 through December 31, 2014, exchange rate movements have reduced long-term debt by $125 million. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | (c)Amounts are net of unamortized discounts. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Assets are recorded in prepaid and other current assets, and liabilities are recorded in other current liabilities. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Assets are recorded in other current and other long term assets. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[8] | The gains (losses) on net investment hedges are recorded as a component of AOCI within foreign currency translation adjustments in the condensed consolidated balance sheets and condensed consolidated statements of comprehensive income. The gains (losses) on forecasted purchases and treasury rate locks are recorded as a component of AOCI within derivative instruments in the condensed consolidated balance sheets and the condensed consolidated statements of comprehensive income. There was no ineffectiveness for these instruments during 2014 or 2013. 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 less than $1 million are expected to be reclassified to earnings during 2015. |
Fair_Value_Disclosures_Details
Fair Value Disclosures (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets and Liabilities Measured on a Recurring Basis | |||
Derivative assets | $19 | $26 | |
Derivative liabilities | 13 | 14 | |
Fair Value Additional Information [Abstract] | |||
Carrying value of long-term debt including current portion | 8,671 | 8,029 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Additional Information [Abstract] | |||
Asset Impairment Charge | 21 | 63 | |
Level 2 Member | |||
Fair Value Additional Information [Abstract] | |||
Fair value of long-term debt | 8,753 | 7,976 | |
Level 2 Member | Fair Value, Measurements, Recurring [Member] | |||
Assets and Liabilities Measured on a Recurring Basis | |||
Derivative assets | 19 | 26 | |
Derivative liabilities | $13 | $14 |
Equity_and_Redeemable_Noncontr2
Equity and Redeemable Noncontrolling Interests (Details) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Class of Stock Disclosures [Abstract] | ||||
Noncontrolling Interest, Description | During 2011, Praxair acquired a controlling interest in Yara Praxair, a joint venture in Scandinavia that was previously accounted for as an equity investment (see Note 3). As part of the transaction, the noncontrolling shareholder obtained the right to sell its shares to Praxair starting in the first quarter 2015 for a period of 4 years at a formula price. Praxair also obtained the right to purchase the shares held by the noncontrolling shareholder starting in 2017 for a period of 2 years, also at a formula price. Accordingly, the noncontrolling interests related to Yara Praxair have been recorded in the consolidated balance sheets as redeemable noncontrolling interests. Other redeemable noncontrolling interests relate to three packaged gas distributors in the United States where the noncontrolling shareholders have put options. | |||
Common Stock Shares Authorized | 800,000,000 | 800,000,000 | ||
Common stock, par value (usd per share) | $0.01 | $0.01 | ||
Common Stock Shares Issued | 383,230,625 | 383,230,625 | ||
Common Stock Shares Outstanding | 289,261,608 | 294,133,864 | ||
Preferred Stock Authorized | 25,000,000 | 25,000,000 | ||
Preferred Stock Par Value | $0.01 | $0.01 | ||
Redeemable Noncontrolling Interest [Line Items] | ||||
Redeemable Noncontrolling Interests, Beginning Balance | $307 | $252 | $220 | |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 12 | 24 | 18 | |
Dividends Paid to Redeemable Noncontrolling Interests | -9 | -11 | -9 | |
Redemption value adjustments (Note 14) | 2 | 53 | 13 | |
Foreign currency translation and other | -24 | -11 | 10 | |
Payments for Repurchase of Redeemable Noncontrolling Interest | -112 | [1] | ||
Noncontrolling Interest, Increase from Business Combination | -22 | |||
Redeemable Noncontrolling Interests, Ending Balance | 176 | 307 | 252 | |
Additional Paid-in Capital [Member] | ||||
Redeemable Noncontrolling Interest [Line Items] | ||||
Noncontrolling Interest, Increase from Business Combination | ($24) | |||
[1] | * In January 2014, Praxair acquired the noncontrolling interests related to Praxair Distribution Mid-Atlantic, LLC. The cash payment is shown in the financing section of the condensed consolidated statements of cash flows under the caption "Noncontrolling interest transactions and other". |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Praxair, Inc. Closing Stock Price | $129.56 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Outstanding at beginning of period - average exercise price | $81.42 | ||
Granted - average exercise price | $128.80 | ||
Exercised - average exercise price | $63.39 | ||
Cancelled or Expired - average exercise price | $110.68 | ||
Outstanding at end of period - average exercise price | $89.02 | $81.42 | |
Exercisable at December 31, 2014 - average exercise price | $79.74 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Stock Options Outstanding at Beginning of Period | 11,161,000 | ||
Stock Options Granted | 1,293,000 | ||
Stock Options Exercised | -1,380,000 | ||
Stock Options Cancelled or Expired | -93,000 | ||
Stock Options Outstanding at End of Period | 10,981,000 | 11,161,000 | |
Stock Options Exercisable at December 31, 2014 | 8,400,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Dividend yield | 2.00% | 2.20% | 2.00% |
Volatility | 15.20% | 21.70% | 22.50% |
Risk-free interest rate | 1.57% | 0.76% | 0.86% |
Expected term years | 5 years | 5 years | 5 years |
Additional Company Information [Abstract] | |||
Share-based compensation expense | $51 | $70 | $70 |
Share-based compensation expense related income tax benefit | 14 | 21 | 21 |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract] | |||
Weighted-average fair values of options granted | $14.62 | $16.31 | $17.43 |
Total intrinsic value of stock options exercised | 93 | 143 | 165 |
Cash received from option exercises | 88 | ||
Total Cash Tax Benefit | 48 | ||
Excess tax benefit on stock based compensation | 31 | 46 | 60 |
Average Remaining Life (years) [Abstract] | |||
Outstanding at December 31, 2014 - average remaining life | 5 years 4 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 4 months | ||
Aggregate Intrinsic Value [Abstract] | |||
Outstanding at December 31, 2014 - intrinsic value | 445 | ||
Exercisable at December 31, 2014 - intrinsic value | 418 | ||
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 | 7,982,085 | ||
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 | $18 | ||
Performance Period (years) | 1 year 0 months |
ShareBased_Compensation_PSU_an
Share-Based Compensation (PSU and RSU) (Details) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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] | ||||
Additional Shares Granted due to Actual Payout of PSUs | 49,000 | |||
Unrecognized compensation expense | $32 | |||
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 | 867,000 | |||
Granted | 328,082 | [1] | ||
Vested | -338,000 | |||
Cancelled | -24,000 | |||
Non-vested at end of period | 833,000 | 867,000 | ||
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 | $99.55 | |||
Granted - average grant date fair value | $121.16 | $103.46 | $103.13 | |
Vested - average grant date fair value | $92.06 | |||
Cancelled - average grant date fair value | $110.27 | |||
Non-vested at end of period, grant date fair value | $109.09 | $99.55 | ||
Additional Company Information [Abstract] | ||||
Service Period For Restricted Stock | 3 years 0 months | |||
Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $14 | |||
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 | 337,000 | |||
Granted | 94,988 | |||
Vested | -109,000 | |||
Cancelled | -16,000 | |||
Non-vested at end of period | 307,000 | 337,000 | ||
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 | $100.41 | |||
Granted - average grant date fair value | $122.55 | $105.79 | $104.71 | |
Vested - average grant date fair value | $96.02 | |||
Cancelled - average grant date fair value | $104.61 | |||
Non-vested at end of period, grant date fair value | $106.63 | $100.41 | ||
Additional Company Information [Abstract] | ||||
Service Period For Restricted Stock | 3 years 0 months | |||
Restricted Stock [Member] | Minimum | ||||
Additional Company Information [Abstract] | ||||
Service Period For Restricted Stock | 2 years | |||
Restricted Stock [Member] | Maximum | ||||
Additional Company Information [Abstract] | ||||
Service Period For Restricted Stock | 10 years | |||
[1] | Performance-based stock unit ("PSU") grants during 2014 include 49 thousand shares relating to the actual payout of the 2011 PSU grants in 2014. |
Retirement_Programs_Additional
Retirement Programs (Additional Information) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Multiemployer Plans [Abstract] | |||
Multiemployer Plan Contributions | $2 | $2 | $1 |
Estimated number of union employees in multiemployer plans | 200 | ||
Number of Multiemployer Plans Participated In | 7 | ||
Number of Multiemployer Plans With Pending or Implemented Rehabilitation Plans | 5 | ||
Multiemployer Plans, General Nature | According to the most current data available, four of the MEPs that the Company participates 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, 2014, the five Red and Yellow Zone plans have pending or have implemented financial improvement or rehabilitation plans. | ||
Praxair U.S. Defined Contribution Savings Plans | |||
Retirement Programs - Defined Contribution Plans [Line Items] | |||
Defined Contribution Plan Contributions | 26 | 25 | 24 |
Maximum amount employees may contribute to the respective plan subject to IRS limitations | 40.00% | ||
Shares of Common Stock in ESOPs | 3,053,710 | ||
Praxair International Defined Contribution Savings Plans | |||
Retirement Programs - Defined Contribution Plans [Line Items] | |||
Defined Contribution Plan Contributions | $17 | $17 | $12 |
Retirement_Programs_Net_Pensio
Retirement Programs (Net Pension and OPEB costs) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
U.S. Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | $34 | $38 | ||||
Interest cost | 85 | 74 | ||||
Pension settlements | 7 | [1] | 9 | [1] | 9 | [1] |
Pension Plans Defined Benefit Member | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 49 | 56 | 49 | |||
Interest cost | 121 | 112 | 119 | |||
Expected return on plan assets | -155 | -149 | -153 | |||
Net amortization and deferral | 60 | 91 | 68 | |||
Net periodic benefit cost before pension settlement charge | 75 | 110 | 83 | |||
Pension settlements | 7 | [1] | 9 | [1] | 10 | [1] |
Net periodic benefit cost | 82 | 119 | 93 | |||
Other Postretirement Benefit Plans Defined Benefit | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 4 | 5 | 4 | |||
Interest cost | 11 | 11 | 12 | |||
Net amortization and deferral | -8 | -5 | -7 | |||
Net periodic benefit cost before pension settlement charge | 7 | 11 | 9 | |||
Net periodic benefit cost | $7 | $11 | $9 | |||
[1] | * 2014 includes a $7 millions charge in the fourth quarter related to one-time lump sum benefit payment of vested pension benefits to certain former employees. 2012 and 2013 includes a $9 million charge in the third quarter primarily related to the retirement of senior managers in the United States (see Note 2) |
Retirement_Programs_Funded_Sta
Retirement Programs (Funded Status) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Other Long-Term Assets | $35 | $42 | |
Other Current Liabilities | -39 | -33 | |
Other Long-Term Liabilities | -777 | -498 | |
Deferred Tax Benefit | -342 | -247 | |
U.S. Pension Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit Obligation January 1 | 1,791 | 1,926 | |
Service cost | 34 | 38 | |
Interest cost | 85 | 74 | |
Actuarial Loss (Gain) | 276 | -148 | |
Benefits Paid | -136 | -99 | |
Benefit Obligation December 31 | 2,050 | 1,791 | |
Accumulated Benefit Obligation | 1,944 | 1,712 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan Fair Value of Plan Assets Balance, Beginning of Year | 1,620 | 1,391 | |
Gains or losses for the period | 108 | 271 | |
Company Contributions | 2 | 35 | |
Benefits Paid From Plan Assets | -123 | -77 | |
Defined Benefit Plan Fair Value of Plan Assets Balance, End of Year | 1,607 | 1,620 | |
Other Current Liabilities | -18 | -10 | |
Other Long-Term Liabilities | -425 | -161 | |
Fund status - net amount recognized, December 31 | -443 | -171 | |
Net Actuarial Loss (Gain) | 792 | 563 | |
Prior Service Cost (Credit) | 1 | ||
Deferred Tax Benefit | -303 | -215 | |
Amount recognized in accumulated other comprehensive income (loss) | 489 | 349 | |
International Pension Plans Defined Benefit | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit Obligation January 1 | 661 | 727 | |
Service cost | 15 | 18 | |
Interest cost | 36 | 38 | |
Actuarial Loss (Gain) | 109 | -43 | |
Benefits Paid | -35 | -38 | |
Defined Benefit Plan, Divestitures, Benefit Obligation | -1 | ||
Foreign Currency Translation | -66 | -41 | |
Benefit Obligation December 31 | 719 | 661 | |
Accumulated Benefit Obligation | 681 | 629 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Defined Benefit Plan Fair Value of Plan Assets Balance, Beginning of Year | 551 | 558 | |
Gains or losses for the period | 76 | 43 | |
Company Contributions | 16 | 17 | |
Benefits Paid From Plan Assets | -30 | -33 | |
Foreign Currency Translation | -52 | -34 | |
Defined Benefit Plan Fair Value of Plan Assets Balance, End of Year | 561 | 551 | |
Other Long-Term Assets | 35 | 42 | |
Other Current Liabilities | -5 | -6 | |
Other Long-Term Liabilities | -188 | -146 | |
Fund status - net amount recognized, December 31 | -158 | -110 | |
Net Actuarial Loss (Gain) | 193 | 145 | |
Prior Service Cost (Credit) | 15 | 18 | |
Deferred Tax Benefit | -50 | -38 | |
Amount recognized in accumulated other comprehensive income (loss) | 158 | 125 | |
Other Postretirement Benefit Plans Defined Benefit | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit Obligation January 1 | 208 | 251 | |
Service cost | 4 | 5 | 4 |
Interest cost | 11 | 11 | 12 |
Participant Contribution | 10 | 11 | |
Actuarial Loss (Gain) | -21 | -39 | |
Benefits Paid | -25 | -23 | |
Foreign Currency Translation | -7 | -8 | |
Benefit Obligation December 31 | 180 | 208 | 251 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Other Current Liabilities | -16 | -17 | |
Other Long-Term Liabilities | -164 | -191 | |
Fund status - net amount recognized, December 31 | -180 | -208 | |
Net Actuarial Loss (Gain) | -24 | -7 | |
Prior Service Cost (Credit) | -1 | -4 | |
Deferred Tax Benefit | 11 | 6 | |
Amount recognized in accumulated other comprehensive income (loss) | ($14) | ($5) |
Retirement_Programs_Changes_In
Retirement Programs (Changes In Plan Assets and Benefit Obligations Recognized in OCI) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Pension Plans Defined Benefit Member | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Current Year Net Actuarial Loss (Gain) | $356 | [1] | ($356) | [1] | ||
Amortization of Net Actuarial Gains (Losses) | -59 | -90 | ||||
Amortization of Prior Service Credits (Costs) | -1 | -1 | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | -7 | [2] | -9 | [2] | -10 | [2] |
Foreign Currency Translation and Other | -16 | -12 | ||||
Total Recognized in Other Comprehensive Income | 273 | -468 | ||||
Other Postretirement Benefit Plans Defined Benefit | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Current Year Net Actuarial Loss (Gain) | -21 | [1] | -39 | [1] | ||
Amortization of Net Actuarial Gains (Losses) | 2 | -1 | ||||
Amortization of Prior Service Credits (Costs) | 6 | 6 | ||||
Foreign Currency Translation and Other | -1 | -1 | ||||
Total Recognized in Other Comprehensive Income | ($14) | ($35) | ||||
[1] | The pension net actuarial losses in 2014 relates primarily to the decrease in discount rates, when compared to 2013 and updated mortality assumptions. The pension net actuarial gain in 2013 relates primarily to the increase in discount rates, when compared to 2012. The OPEB net actuarial gains in 2014 relates primarily to favorable plan experience, and the 2013 net actuarial gain relates primarily to higher discount rates. | |||||
[2] | * 2014 includes a $7 millions charge in the fourth quarter related to one-time lump sum benefit payment of vested pension benefits to certain former employees. 2012 and 2013 includes a $9 million charge in the third quarter primarily related to the retirement of senior managers in the United States (see Note 2) |
Retirement_Programs_AOCI_Expec
Retirement Programs (AOCI Expected to be Recognized as Components of Net Periodic Benefit Costs in 2011) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Pension Plans Defined Benefit Member | |
Defined Benefit Plan Disclosure [Line Items] | |
Net Actuarial Loss (Gain) | $82 |
Prior Service Cost (Credit) | 1 |
Total AOCI Expected to be Recognized as Components of Net Periodic Benefit Cost During Upcoming Year | 83 |
Other Postretirement Benefit Plans Defined Benefit | |
Defined Benefit Plan Disclosure [Line Items] | |
Net Actuarial Loss (Gain) | -3 |
Total AOCI Expected to be Recognized as Components of Net Periodic Benefit Cost During Upcoming Year | ($3) |
Retirement_Programs_Plans_Wher
Retirement Programs (Plans Where the ABO Exceeds Plan Assets Fair Value) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets Related To U.S. Pension Plan Exceeds Accumulated Benefit Obligations | $23 | ||
U.S. Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected Benefit Obligation | 2,050 | 244 | [1] |
Accumulated Benefit Obligation | 1,944 | 241 | [1] |
Fair Value of Plan Assets | 1,607 | 127 | [1] |
International Pension Plans Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected Benefit Obligation | 428 | 360 | |
Accumulated Benefit Obligation | 412 | 352 | |
Fair Value of Plan Assets | $234 | $207 | |
[1] | In 2013, plan assets related to the main U.S. retirement program exceeded the ABO by $23 million and was therefore excluded from the table above. |
Retirement_Programs_Assumption
Retirement Programs (Assumptions Used in Determining Benefit Obligations and Net Benefit Costs) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | ||||
Healthcare Cost Trend Assumed | 7.50% | 8.00% | ||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% | ||
Year in Which the Rate Reaches the Ultimate Trend Rate | 2020 | 2020 | ||
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | ||||
One Percent Increase Of OPEB Benefit Obligation | 3 | |||
One Percent Decrease Of OPEB Benefit Obligation | -2 | |||
U.S. Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount Rate - Utilized for Obligation | 3.95% | 4.80% | ||
Rate of Increase in Compensation Levels - Utilized for Obligation | 3.25% | 3.25% | ||
Discount Rate - Utilized for Expense | 4.80% | 3.90% | ||
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 | 8.00% | 8.00% | [1] | 8.00% |
U.S. Pension Plans [Member] | Return Experienced Over Last 10 years [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Actual Rate of Return on Plan Assets | 6.20% | |||
U.S. Pension Plans [Member] | Return Experienced Over Last 20 years [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Actual Rate of Return on Plan Assets | 8.20% | |||
International Pension Plans Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount Rate - Utilized for Obligation | 5.36% | 6.30% | ||
Rate of Increase in Compensation Levels - Utilized for Obligation | 3.72% | 4.00% | ||
Discount Rate - Utilized for Expense | 6.30% | 5.80% | ||
Rate of Increase in Compensation Levels - Utilized for Expense | 4.00% | 4.00% | ||
Expected Long-Term Rate of Return on Plan Assets - Utilized for Expense | 8.10% | [1] | 7.50% | |
International Pension Plans Defined Benefit | Return Experienced Over Last 10 years [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Actual Rate of Return on Plan Assets | 8.30% | |||
International Pension Plans Defined Benefit | Return Experienced Over Last 20 years [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Actual Rate of Return on Plan Assets | 9.70% | |||
Other Postretirement Benefit Plans Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount Rate - Utilized for Obligation | 4.48% | 5.87% | ||
Discount Rate - Utilized for Expense | 5.87% | 5.00% | ||
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 Pooled Funds | 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 Pooled Funds | 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% | |||
[1] | 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, 2014 were approximately 6.2% and 8.2%, respectively. For the international plan assets, the actual annualized total returns for the same two periods were approximately 8.3% and 9.7%, 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 2015, 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. OPEBAssumed healthcare cost trend rates2014Â 2013Healthcare cost trend assumed7.50%Â 8.00%Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)5.00%Â 5.00%Year that the rate reaches the ultimate trend rate2020Â 2020 |
Retirement_Programs_Pension_Pl
Retirement Programs (Pension Plan Asset Allocations) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 65.00% | 70.00% |
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 | 28.00% | 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 | 7.00% | |
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 | 49.00% | 48.00% |
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 | 42.00% | 43.00% |
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_Pl1
Retirement Programs (Pension Plan Asset Fair Value By Category And Level 3 Rollforward) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Level 1 Member | Cash And Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $1 | $2 | |
Level 1 Member | U S Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 340 | 285 | |
Level 1 Member | International Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 82 | 82 | |
Level 1 Member | Equity Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 330 | 393 | |
Level 1 Member | Fixed Income Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 253 | 308 | |
Level 1 Member | Total pension assets, by level | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1,006 | 1,070 | |
Level 2 Member | Pooled Funds in Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 565 | 630 | |
Level 2 Member | U.S. Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 44 | 39 | |
Level 2 Member | International Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 125 | 128 | |
Level 2 Member | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 175 | 176 | |
Level 2 Member | Fixed Income Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 90 | 80 | |
Level 2 Member | Total pension assets, by level | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 999 | 1,053 | |
Level 3 Member | Insurance Contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 53 | 48 | 48 |
Gains or losses for the period | 12 | ||
Foreign Currency Translation | -7 | ||
Level 3 Member | Real Estate Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 110 | ||
Gains or losses for the period | 10 | ||
Defined Benefit Plan, Assets Transferred to (from) Plan | 100 | ||
Level 3 Member | Total pension assets, by level | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 163 | 48 | 48 |
Gains or losses for the period | 22 | ||
Defined Benefit Plan, Assets Transferred to (from) Plan | 100 | ||
Foreign Currency Translation | -7 | ||
Total pension assets for all levels | Cash And Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1 | 2 | |
Total pension assets for all levels | U S Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 340 | 285 | |
Total pension assets for all levels | International Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 82 | 82 | |
Total pension assets for all levels | Equity Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 330 | 393 | |
Total pension assets for all levels | Pooled Funds in Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 565 | 630 | |
Total pension assets for all levels | U.S. Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 44 | 39 | |
Total pension assets for all levels | International Government Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 125 | 128 | |
Total pension assets for all levels | Fixed Income Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 253 | 308 | |
Total pension assets for all levels | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 175 | 176 | |
Total pension assets for all levels | Fixed Income Pooled Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 90 | 80 | |
Total pension assets for all levels | Insurance Contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 53 | 48 | |
Total pension assets for all levels | Real Estate Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 110 | ||
Total pension assets for all levels | Total pension assets, by level | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2,168 | 2,171 | |
Other Postretirement Benefit Plans Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net Settlements | -25 | -23 | |
U.S. Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 1,607 | 1,620 | 1,391 |
Gains or losses for the period | 108 | 271 | |
Net Settlements | -136 | -99 | |
Foreign Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 561 | 551 | 558 |
Gains or losses for the period | 76 | 43 | |
Net Settlements | -35 | -38 | |
Foreign Currency Translation | ($52) | ($34) |
Retirement_Programs_Contributi
Retirement Programs (Contributions and Future Estimated Payments) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $15 | ||
Pension and Other Postretirement Benefit Contributions [Abstract] | |||
Pension Contributions | 18 | 52 | 184 |
U.S. Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Estimated Future Benefit Payments in 2015 | 105 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2016 | 101 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2017 | 106 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2018 | 111 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2019 | 117 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2020-2024 | 625 | ||
International Pension Plans Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Estimated Future Benefit Payments in 2015 | 36 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2016 | 36 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2017 | 37 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2018 | 38 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2019 | 39 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2020-2024 | 211 | ||
Other Postretirement Benefit Plans Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Estimated Future Benefit Payments in 2015 | 17 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2016 | 16 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2017 | 16 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2018 | 15 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2019 | 15 | ||
Defined Benefit Plan, Estimated Future Benefit Payments in 2020-2024 | $68 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Lawsuits and Goverment Investigations) (Details) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | BRL | USD ($) | Unconditional Purchase Obligations | Construction Commitments | Guarantees And Other | |
USD ($) | USD ($) | USD ($) | ||||
Gain And Loss Contingencies [Abstract] | ||||||
Brazil tax matters estimated exposure | $180 | |||||
Initial CADE civil fine imposed | 828 | 2,200 | ||||
Revised CADE civil fine | 640 | 1,700 | ||||
Percentage Of Guarantees To Brazilian Court Satisfied By Letters Of Credit | 50.00% | 50.00% | ||||
Percentage Of Guarantees To Brazilian Court Satisfied By Equity | 50.00% | 50.00% | ||||
Outstanding letters of credit, bank guarantees and surety bonds | 1,240 | |||||
Letters of credit provided as guaranteed for Brazilian Court | 524 | |||||
Material Commitments and Contracual Obligations [Line Items] | ||||||
2015 | 954 | 12 | ||||
2016 | 404 | 59 | ||||
2017 | 27 | |||||
Total | 1,385 | 71 | ||||
2015 | 543 | |||||
2016 | 491 | |||||
2017 | 460 | |||||
2018 | 445 | |||||
2019 | 393 | |||||
Thereafter | 3,021 | |||||
Total | 5,353 | |||||
Unconditional Purchase Obligation Payments | 1,021 | |||||
Unconditional Purchase Obligation Payments, Electricty | 481 | |||||
Unconditional Purchase Obligations Payments, Natural Gas | 225 | |||||
Unrecognized Unconditional Future Purchase Obligation Electricity | 3,550 | |||||
Unrecognized Unconditional Purchase Obligation, Silane | 142 | |||||
Contingent Obligations Under Guarantees Of Certain Debt Of Unconsolidated Affiliates | 70 | |||||
Guarantees And Other - Oustanding Receivables And Repurchase Agreements | 1 | |||||
Total Debt Of Unconsolidated Equity Investees | 245 | |||||
Former Gain Contingency, Recognized in Current Period | $24 |
Segments_Details
Segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | $525 | [1] | $711 | $697 | $675 | $690 | $670 | [1] | $665 | $600 | [1] | $2,608 | [1] | $2,625 | [1] | $2,437 | ||
Venezuela currency devaluation and other charges (Note 2) | -138 | -32 | -65 | |||||||||||||||
Sales | 2,990 | 3,144 | 3,113 | 3,026 | 3,010 | 3,013 | 3,014 | 2,888 | 12,273 | [2] | 11,925 | [2] | 11,224 | [2] | ||||
Segment Assets | 19,802 | [3] | 20,255 | [3] | 19,802 | [3] | 20,255 | [3] | 18,090 | [3] | ||||||||
Segment Depreciation and Amortization | 291 | 301 | 293 | 285 | 287 | 281 | 275 | 266 | 1,170 | 1,109 | 1,001 | |||||||
Segment Capital Expenditures and Acquisitions | 1,895 | 3,343 | 2,460 | |||||||||||||||
Equity investments | 693 | 702 | 693 | 702 | 654 | |||||||||||||
Atmospheric gases and related [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Sales | 8,623 | 8,451 | 8,104 | |||||||||||||||
Process gases and other [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Sales | 2,971 | 2,822 | 2,464 | |||||||||||||||
Surface Technologies Segment [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Sales | 679 | 652 | 656 | |||||||||||||||
North America Segment Member | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | 1,580 | 1,538 | 1,465 | |||||||||||||||
Sales | 6,436 | [2] | 6,164 | [2] | 5,598 | [2] | ||||||||||||
Segment Assets | 10,205 | [3] | 10,133 | [3] | 10,205 | [3] | 10,133 | [3] | 8,491 | [3] | ||||||||
Segment Depreciation and Amortization | 611 | 567 | 498 | |||||||||||||||
Segment Capital Expenditures and Acquisitions | 837 | 2,106 | 1,303 | |||||||||||||||
Equity investments | 132 | 128 | 132 | 128 | 135 | |||||||||||||
South America Segment Member | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | 449 | 467 | 429 | |||||||||||||||
Sales | 1,993 | [2] | 2,042 | [2] | 2,082 | [2] | ||||||||||||
Segment Assets | 2,723 | [3] | 2,934 | [3] | 2,723 | [3] | 2,934 | [3] | 3,205 | [3] | ||||||||
Segment Depreciation and Amortization | 177 | 181 | 184 | |||||||||||||||
Segment Capital Expenditures and Acquisitions | 373 | 284 | 351 | |||||||||||||||
Europe Segment Member | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | 291 | 270 | 256 | |||||||||||||||
Sales | 1,546 | [2] | 1,542 | [2] | 1,474 | [2] | ||||||||||||
Segment Assets | 3,000 | [3] | 3,408 | [3] | 3,000 | [3] | 3,408 | [3] | 2,957 | [3] | ||||||||
Segment Depreciation and Amortization | 168 | 169 | 149 | |||||||||||||||
Segment Capital Expenditures and Acquisitions | 319 | 451 | 322 | |||||||||||||||
Equity investments | 207 | 218 | 207 | 218 | 199 | |||||||||||||
Asia Segment Member | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | 303 | 271 | 246 | |||||||||||||||
Sales | 1,619 | [2] | 1,525 | [2] | 1,414 | [2] | ||||||||||||
Segment Assets | 3,198 | [3] | 3,098 | [3] | 3,198 | [3] | 3,098 | [3] | 2,757 | [3] | ||||||||
Segment Depreciation and Amortization | 170 | 150 | 127 | |||||||||||||||
Segment Capital Expenditures and Acquisitions | 310 | 459 | 431 | |||||||||||||||
Equity investments | 354 | 356 | 354 | 356 | 320 | |||||||||||||
Surface Technologies Segment [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | 123 | 111 | 106 | |||||||||||||||
Sales | 679 | [2] | 652 | [2] | 656 | [2] | ||||||||||||
Segment Assets | 676 | [3] | 682 | [3] | 676 | [3] | 682 | [3] | 680 | [3] | ||||||||
Segment Depreciation and Amortization | 44 | 42 | 43 | |||||||||||||||
Segment Capital Expenditures and Acquisitions | 56 | 43 | 53 | |||||||||||||||
Total Segments | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | 2,746 | 2,657 | 2,502 | |||||||||||||||
Venezuela currency devaluation and other charges (Note 2) | -138 | -32 | -65 | |||||||||||||||
Total Impact Of Items [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | ($138) | ($32) | ||||||||||||||||
[1] | 2014 and 2013 include the impact of the following benefits/(charges) (see Notes 2, 5 & 7):(Millions of dollars)OperatingProfit/(Loss) NetIncome/(Loss) Diluted Earnings Per ShareVenezuela currency devaluation - Q4$(131) $(131) $(0.45)Pension settlement charge - Q4(7) (5) (0.02)Bond redemption -Q4— (22) (0.07)Year 2014$(138) $(158) $(0.54) Venezuela currency devaluation – Q1$(23) $(23) $(0.08)Pension settlement charge – Q3(9) (6) (0.02)Income tax benefit - Q4— 24 0.08Bond redemption - Q4— (12) (0.04)Year 2013$(32) $(17) $(0.06) | |||||||||||||||||
[2] | Sales reflect external sales only. Intersegment Sales, primarily from North America to other segments, were not material. | |||||||||||||||||
[3] | (b)Includes equity investments as of December 31, as follows:(Millions of dollars)2014 2013 2012North America$132 $128 $135Europe 207 218 199Asia 354 356 320 $693 $702 $654Changes primarily relate to equity investment earnings, dividends and currency impacts. |
Segments_Sales_and_Assets_by_M
Segments (Sales and Assets by Major Country) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||
Sales by Major Country [Line Items] | ||||||||||||||||
Sales | $2,990 | $3,144 | $3,113 | $3,026 | $3,010 | $3,013 | $3,014 | $2,888 | $12,273 | [1] | $11,925 | [1] | $11,224 | [1] | ||
Long-Lived Assets by Major Country | 11,997 | [2] | 12,278 | [2] | 11,997 | [2] | 12,278 | [2] | 11,453 | [2] | ||||||
United States Member | ||||||||||||||||
Sales by Major Country [Line Items] | ||||||||||||||||
Sales | 5,171 | 4,764 | 4,305 | |||||||||||||
Long-Lived Assets by Major Country | 4,817 | [2] | 4,723 | [2] | 4,817 | [2] | 4,723 | [2] | 4,255 | [2] | ||||||
Brazil Member | ||||||||||||||||
Sales by Major Country [Line Items] | ||||||||||||||||
Sales | 1,511 | 1,603 | 1,668 | |||||||||||||
Long-Lived Assets by Major Country | 1,344 | [2] | 1,376 | [2] | 1,344 | [2] | 1,376 | [2] | 1,535 | [2] | ||||||
Other International Member | ||||||||||||||||
Sales by Major Country [Line Items] | ||||||||||||||||
Sales | 5,591 | 5,558 | 5,251 | |||||||||||||
Long-Lived Assets by Major Country | $5,836 | [2] | $6,179 | [2] | $5,836 | [2] | $6,179 | [2] | $5,663 | [2] | ||||||
[1] | Sales reflect external sales only. Intersegment Sales, primarily from North America to other segments, were not material. | |||||||||||||||
[2] | (c)Long-lived assets include property, plant and equipment – net. |
Quarterly_Data_Details
Quarterly Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||
Additional Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | $525 | [1] | $711 | $697 | $675 | $690 | $670 | [1] | $665 | $600 | [1] | $2,608 | [1] | $2,625 | [1] | $2,437 | ||
Net Income (Loss) – Praxair, Inc. | 302 | [1] | 477 | 467 | 448 | 474 | [1] | 445 | [1] | 445 | 391 | [1] | 1,694 | [1] | 1,755 | [1] | 1,692 | |
Diluted Earnings Per Common Share | $1.03 | $1.62 | $1.58 | $1.51 | $1.59 | $1.49 | $1.49 | $1.30 | $5.73 | $5.87 | $5.61 | |||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||
Sales | 2,990 | 3,144 | 3,113 | 3,026 | 3,010 | 3,013 | 3,014 | 2,888 | 12,273 | [2] | 11,925 | [2] | 11,224 | [2] | ||||
Cost of sales, exclusive of depreciation and amortization | 1,689 | 1,780 | 1,767 | 1,726 | 1,699 | 1,697 | 1,710 | 1,638 | 6,962 | 6,744 | 6,396 | |||||||
Depreciation and amortization | 291 | 301 | 293 | 285 | 287 | 281 | 275 | 266 | 1,170 | 1,109 | 1,001 | |||||||
Operating Profit (Loss) | 525 | [1] | 711 | 697 | 675 | 690 | 670 | [1] | 665 | 600 | [1] | 2,608 | [1] | 2,625 | [1] | 2,437 | ||
Net Income (Loss) – Praxair, Inc. | 302 | [1] | 477 | 467 | 448 | 474 | [1] | 445 | [1] | 445 | 391 | [1] | 1,694 | [1] | 1,755 | [1] | 1,692 | |
Basic Earnings Per Common Share | $1.04 | $1.63 | $1.59 | $1.52 | $1.61 | $1.51 | $1.50 | $1.32 | $5.79 | $5.94 | $5.67 | |||||||
Basic weighted average shares outstanding (in thousands) | 290,667 | 292,170 | 292,945 | 294,195 | 294,697 | 295,124 | 295,668 | 296,604 | 292,494 | 295,523 | 298,316 | |||||||
Diluted Earnings Per Common Share | $1.03 | $1.62 | $1.58 | $1.51 | $1.59 | $1.49 | $1.49 | $1.30 | $5.73 | $5.87 | $5.61 | |||||||
Diluted weighted average shares outstanding (in thousands) | 293,555 | 295,239 | 295,976 | 297,253 | 298,225 | 298,357 | 298,654 | 299,700 | 295,608 | 298,965 | 301,845 | |||||||
Venezuela Currency Devaluation [Member] | ||||||||||||||||||
Additional Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | -131 | -23 | -131 | -23 | ||||||||||||||
Net Income (Loss) – Praxair, Inc. | -131 | -23 | -131 | -23 | ||||||||||||||
Diluted Earnings Per Common Share | ($0.45) | ($0.08) | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||
Operating Profit (Loss) | -131 | -23 | -131 | -23 | ||||||||||||||
Net Income (Loss) – Praxair, Inc. | -131 | -23 | -131 | -23 | ||||||||||||||
Diluted Earnings Per Common Share | ($0.45) | ($0.08) | ||||||||||||||||
Cost Reduction Program [Member] | ||||||||||||||||||
Additional Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | -56 | |||||||||||||||||
Net Income (Loss) – Praxair, Inc. | -38 | |||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||
Operating Profit (Loss) | -56 | |||||||||||||||||
Net Income (Loss) – Praxair, Inc. | -38 | |||||||||||||||||
Pension Settlement Charge [Member] | ||||||||||||||||||
Additional Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | -7 | -9 | -7 | -9 | -9 | |||||||||||||
Net Income (Loss) – Praxair, Inc. | -5 | -6 | -5 | -6 | -6 | |||||||||||||
Diluted Earnings Per Common Share | ($0.02) | ($0.02) | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||
Operating Profit (Loss) | -7 | -9 | -7 | -9 | -9 | |||||||||||||
Net Income (Loss) – Praxair, Inc. | -5 | -6 | -5 | -6 | -6 | |||||||||||||
Diluted Earnings Per Common Share | ($0.02) | ($0.02) | ||||||||||||||||
Income tax benefit [Member] | ||||||||||||||||||
Additional Information [Line Items] | ||||||||||||||||||
Net Income (Loss) – Praxair, Inc. | 24 | |||||||||||||||||
Diluted Earnings Per Common Share | $0.08 | |||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||
Net Income (Loss) – Praxair, Inc. | 24 | |||||||||||||||||
Diluted Earnings Per Common Share | $0.08 | |||||||||||||||||
Total Impact Of Items [Member] | ||||||||||||||||||
Additional Information [Line Items] | ||||||||||||||||||
Operating Profit (Loss) | -138 | -32 | ||||||||||||||||
Net Income (Loss) – Praxair, Inc. | -158 | -17 | ||||||||||||||||
Diluted Earnings Per Common Share | ($0.54) | ($0.06) | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||
Operating Profit (Loss) | -138 | -32 | ||||||||||||||||
Net Income (Loss) – Praxair, Inc. | -158 | -17 | ||||||||||||||||
Diluted Earnings Per Common Share | ($0.54) | ($0.06) | ||||||||||||||||
Bond Redemption [Member] | ||||||||||||||||||
Additional Information [Line Items] | ||||||||||||||||||
Net Income (Loss) – Praxair, Inc. | -22 | -12 | ||||||||||||||||
Diluted Earnings Per Common Share | ($0.07) | ($0.04) | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||||
Net Income (Loss) – Praxair, Inc. | ($22) | ($12) | ||||||||||||||||
Diluted Earnings Per Common Share | ($0.07) | ($0.04) | ||||||||||||||||
[1] | 2014 and 2013 include the impact of the following benefits/(charges) (see Notes 2, 5 & 7):(Millions of dollars)OperatingProfit/(Loss) NetIncome/(Loss) Diluted Earnings Per ShareVenezuela currency devaluation - Q4$(131) $(131) $(0.45)Pension settlement charge - Q4(7) (5) (0.02)Bond redemption -Q4— (22) (0.07)Year 2014$(138) $(158) $(0.54) Venezuela currency devaluation – Q1$(23) $(23) $(0.08)Pension settlement charge – Q3(9) (6) (0.02)Income tax benefit - Q4— 24 0.08Bond redemption - Q4— (12) (0.04)Year 2013$(32) $(17) $(0.06) | |||||||||||||||||
[2] | Sales reflect external sales only. Intersegment Sales, primarily from North America to other segments, were not material. |