Retirement Programs

9 Months Ended

Sep. 30, 2018

Retirement Benefits, Description [Abstract]

The components of net pension and postretirement benefits other than pensions (“OPEB”) costs for the quarter and nine months ended September 30, 2018 and 2017 are shown below:



	Quarter Ended September 30,										Nine Months Ended September 30,
	Pensions						OPEB				Pensions						OPEB
(Millions of dollars)	2018			2017			2018		2017		2018			2017			2018			2017
Amount recognized in Operating Profit
Service cost	$	12		$	12		$	—	$	—	$	36		$	35		$	1		$	2
Amount recognized in Net pension and OPEB cost (benefit), excluding service cost
Interest cost	25			25			1		2		76			76			3			4
Expected return on plan assets	(42		)	(40		)	—		—		(125		)	(120		)	—			—
Net amortization and deferral	18			17			—		—		54			51			(2		)	(2		)
Curtailment gain (a)	—			—			—		—		—			—			—			(18		)
Settlement charge	4			2			$	—	$	—	4			2			$	—		$	—
	$	5		$	4		$	1	$	2	$	9		$	9		$	1		$	(16	)
Net periodic benefit cost (benefit)	$	17		$	16		$	1	$	2	$	45		$	44		$	2		$	(14	)

(a) The curtailment gain recorded in the first quarter of 2017 resulted from the termination of an OPEB plan in South America.

In the third quarters of 2018 and 2017, a series of lump sum benefit payments made from the U.S. supplemental pension plan and an international pension plan, respectively, triggered settlements of the related pension obligations. Accordingly, Praxair recorded pension settlement charges of $4 million ($3 million after-tax or $0.01 per diluted share) and $2 million ($1 million after-tax or less than $0.01 per diluted share) in 2018 and 2017, respectively.

Praxair estimates that 2018 required contributions to its pension plans will be in the range of $20 million to $25 million, of which $17 million have been made through September 30, 2018.

PRAXAIR INC 10-Q