Retirement Programs

3 Months Ended

Mar. 31, 2012

Retirement Programs [Abstract]

Retirement Programs

9. Retirement Programs

The components of net pension and postretirement benefits other than pensions ("OPEB") costs for the quarters ended March 31, 2012 and 2011 are shown below:
	Quarter Ended March 31,
	Pensions		OPEB
(Millions of dollars)	2012	2011	2012	2011
Service cost	$ 13	$ 11	$ 1	$ 1
Interest cost	31	31	3	4
Expected return on plan assets	(39)	(38)	-	-
Net amortization and deferral	17	11	(1)	(2)
Net periodic benefit cost	$ 22	$ 15	$ 3	$ 3

Praxair estimates that 2012 contributions to its pension plans will be in the areaof $120 million, of which$106 million have been made through March 31, 2012.

In 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. As a result, Praxair anticipates that it will record a pension settlement expense of approximately $7 million in the third quarter 2012 when the payments are made to the retirees.