Note 10 Supplementary Balance Sheet Information

 

(Millions of dollars)
December 31, 2000 1999
Accounts Receivable
Trade $873 $846
Other 39 36
. 912 882
Less: allowance for doubtful accounts(a) 36 34
$876 $848
.
Inventories(b)
Raw materials and supplies $98 $104
Work in process 38 50
Finished goods 161 156
$297 $310
.
Property, Plant and Equipment-Net
Land and improvements $199 $190
Buildings 566 562
Machinery and equipment 7,589 7,209
Construction in progress and other 539 620
Less: accumulated depreciation 4,122 3,861
$4,771 $4,720
.
Other Long-Term Assets
Patents, trademarks and goodwill(c) $1,097 $1,113
Deposits(d) 35 34
Other 256 286
$1,388 $1,433
.
Other Current Liabilities
Accrued accounts payable $136 $132
Payrolls 93 102
Employee benefits and related 25 41
Special charges(e) 59 5
Accrued interest payable 39 37
Other 107 88
$459 $405
.
Other Long-Term Liabilities
Employee benefits and related $441 $462
Special charges(e) 19 7
Other(d) 88 93
$548 $562
.
Deferred Credits
Income taxes(f) $461 $434
Deferred gain on sale leaseback (Note 12) 152 152
Other 6 14
$619 $600
.
Accumulated Other Comprehensive Income (Loss)
(cumulative translation adjustment)
North America $(177) ($167)
South America(g) (593) (494)
Europe (174) (123)
Surface Technologies (17) (8)
All Other (50) (36)
($1,011) ($828)


(a) Provisions to the allowance for doubtful accounts were $19 million, $22 million and $13 million in 2000, 1999, and 1998, respectively.

(b) Approximately 33% of total inventories were valued using the LIFO method at December 31, 2000 (31% in 1999). If inventories had been valued at current costs, they would have been approximately $28 million and $26 million higher than reported at December 31, 2000 and 1999, respectively.

(c) Net of accumulated amortization of $180 million in 2000 and $161 million in 1999.

(d) $35 million and $24 million of other long-term assets and other long-term liabilities in Brazil have been offset in 2000 and 1999, respectively.

(e) The table below summarizes the activity (primarily new charges, cash payments and asset write-offs) in the accrual for special charges. The accrual includes special programs in 1996 and 1997 as described in the table below, and other programs in 1998 and 2000 as described in Note 2. The remaining other charges at December 31, 2000 are related to the 2000 repositioning program and future lease payments from earlier programs.

 
(Millions of dollars)
Accrual-Special Charges Severance Other Charges Total Accrual
Balance, January 1, 1996 $ - $ - $ -
CBI integration* 50 35 85
1996 activity (29) (10) (39)
.
Balance, December 31, 1996 21 25 46
North American packaged gases* - 10 10
1997 activity (21) (9) (30)
.
Balance, December 31, 1997 - 26 26
1998 activity - (8) (8)
.
Balance, December 31, 1998 - 18 18
1999 activity - (6) (6)
.
Balance, December 31, 1999 - 12 12
Surface Technologies repositioning program 4 1 5
Repositioning and special charges 48 111 159
2000 activity (7) (91) (98)
.
Balance, December 31, 2000 $45 $33 $78

 

* In 1996, Praxair recorded a charge of $85 million for the integration of the Liquid Carbonic business of CBI and Praxair, and in 1997 recorded a $10 million charge related primarily to profit improvement initiatives in its North American packaged gases business.

(f) Deferred income taxes related to current items are included in prepaid and other current assets in the amount of $71 million in 2000 and $31 million in 1999. The increase in 2000 is a result of the repositioning program (see Note 2).

(g) Consists primarily of currency translation adjustments in Brazil and is net of a $60 million gain related to Brazilian net investment hedges (see Note 5).