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Equity and Redeemable Noncontrolling Interests
 3 Months Ended
Mar. 31, 2012
Equity And Noncontrolling Interests Disclosure [Abstract]  
Equity And Noncontrolling Interests Disclosure [Text Block]

12. Equity and Redeemable Noncontrolling Interests

 

Equity

 

A summary of the changes in total equity for the quarters ended March 31, 2012 and 2011 is provided below:

 

(Millions of dollars)       
 Quarter Ended March 31,
 2012 2011
        
 Praxair, Inc.   Praxair, Inc.  
 Shareholders'Noncontrolling  Shareholders'Noncontrolling 
ActivityEquityInterestsTotal Equity EquityInterestsTotal Equity
        
Balance, beginning of period$5,488$309$5,797 $5,792$353$6,145
Net Income (b) 419 8 427  39811 409
Translation Adjustments 266 6 272 22010 230
Derivative Instruments, net of $1 million taxes in 2012 and net of less than $1 million 2011 1 - 1 1 - 1
Funded Status - retirement obligations, net of $4 million in 2012 and $1 million taxes in 2011 7 - 7  3 - 3
Comprehensive income (loss) 693 14 707  622 21 643
Dividends and other capital reductions to noncontrolling interests - 4 4  - (3) (3)
Additions (Reductions) to noncontrolling interests (a) - - -  - 1 1
Redemption value adjustment to redeemable noncontrolling interests (4) - (4)  - - -
Dividends to Praxair, Inc. common stock holders ($0.55 per share in 2012 and $0.50 per share in 2011) (164) - (164)  (152) - (152)
Issuances of common stock:       
For the dividend reinvestment and stock purchase plan 3 - 3  2 - 2
For employee savings and incentive plans 58 - 58  77 - 77
Purchases of common stock (182) - (182)  (210) - (210)
Tax benefit from share-based compensation 31 - 31  20 - 20
Share-based compensation 17 - 17  14 - 14
Balance, end of period$5,940$327$6,267 $6,165$372$6,537
        
 

  • Praxair increased (decreased) its ownership in certain consolidated subsidiaries. The difference between the purchase price and the related noncontrolling interests was recorded as a decrease in Praxair's additional paid-in-capital.

     

  • In 2012, Net income for noncontrolling interests excludes Net income related to redeemable noncontrolling interests of $5 million, which is not part of total equity (see below).There were no redeemable noncontrolling interests recorded at March 31, 2011.

 

 

The components of AOCI are as follows:
     
  March 31, December 31,
(Millions of dollars) 2012 2011
     
Cumulative translation adjustments (CTA) $(785) $(1,057)
Derivative instruments (4) (5)
Funded status - retirement obligations (677) (684)
  (1,466) (1,746)
Less: noncontrolling interests (CTA)  6  -
AOCI - Praxair, Inc. $(1,472) $(1,746)
     

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.

 

 

The following is a summary of redeemable noncontrolling interests for the quarter ended March 31, 2012: 
    
(Millions of dollars)   
Balance, December 31, 2011 $ 220 
Net income  5 
Distributions to noncontrolling interest  (2) 
Redemption value adjustment/accretion  4 
Foreign currency translation and other  5 
Balance, March 31, 2012 $ 232