StockSelector.com
  Research, Select, & Monitor Thursday, December 13, 2018 2:20:48 AM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Praxair, Inc.$164.50($.99)(.60%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Praxair Reports Full-Year and Fourth-Quarter 2017 Results
   Thursday, January 25, 2018 6:01:01 AM ET

--Sales of $11.4 billion, 9% above prior year

--Record $3.0 billion of operating cash flow, 10% above prior year

--Record free cash flow of $1.7 billion, 32% above prior year

--EPS of $4.32; adjusted EPS of $5.85

--Fourth-Quarter 2017 Highlights

--Sales of $3.0 billion, 12% above prior-year quarter

--Record $0.5 billion of free cash flow, 57% above prior-year quarter

--Backlog $1.5 billion; includes project wins in the U.S. and Asia

--EPS of $0.11; adjusted EPS of $1.52

--Continued Progress on Merger with Linde AG

--Regulatory filings progressing

--Tax Reform Impact

--Fourth-quarter tax charge of $394 million

--Estimated future tax rate 23% - 25%

Praxair, Inc. (PX ) today reported fourth-quarter net income of $33 million and diluted earnings per share of $0.11. These results include transaction costs of $14 million after-tax related to the proposed merger with Linde AG and a net income tax charge of $394 million related to the U.S. Tax Cuts and Jobs Act of 2017 ("Tax Reform"). The net tax charge reflects the company’s best estimate of Tax Reform and may be adjusted in future periods as required. The impact of these charges was $1.41 of diluted earnings per share. Excluding these two items, adjusted net income was $441 million and diluted earnings per share was $1.52, up 9% and 8%, respectively versus prior year.



Praxair’s sales in the fourth quarter were $2,953 million, 12% above the prior-year quarter. After adjusting for positive currency translation and cost pass-through, sales grew 8%, driven by price attainment and higher volumes across all geographic segments and end-markets.

Reported operating profit in the fourth quarter was $636 million, 6% above the prior-year quarter. Excluding transaction costs, adjusted operating profit was $653 million, 9% above prior-year quarter. Reported and adjusted operating profit margins were 21.5% and 22.1%, respectively. EBITDA margin was 32.3% and adjusted EBITDA margin was 32.9%.

The company generated strong fourth-quarter operating cash flow of $836 million, 28% of sales. After capital expenditures of $339 million, free cash flow was $497 million, up 57% over the prior-year quarter. The company paid $226 million in dividends and decreased net debt by $247 million, sequentially.

For full-year 2017, sales of $11,437 million were up 9% above prior year. Diluted earnings per share were $4.32 and on an adjusted basis, diluted earnings per share were $5.85, up 7% versus prior year.

Full-year operating cash flow was $3,041 million, or 27% of sales. Free cash flow, defined as operating cash flow less capital expenditures, was $1,730 million. The company paid dividends of $901 million and reduced net debt by $608 million.

Commenting on the financial results, Chairman and Chief Executive Officer Steve Angel said, "We had a strong finish to 2017 with 8% EPS growth and record free cash flow in the fourth quarter. The Praxair team delivered on our strategy by successfully executing the project backlog, winning several new onsite projects, and operating safely and efficiently. We have enhanced our business portfolio by increasing exposure to more resilient end-markets while remaining well positioned for the industrial recovery. All of this was accomplished while making significant progress toward our merger with Linde.

"Looking ahead to 2018, we will maintain our focus and leverage the cyclical recovery occurring across several core geographies and end-markets," continued Angel. "I remain confident in our ability to grow our project backlog with new contract wins, especially in Asia and the U.S. Gulf Coast. And recent tax reform should help stimulate new capital investment in the United States and thus provide additional growth opportunities in our largest market.

"In the second half of 2018, I look forward to the completion of the merger between Praxair and Linde, which will bring together our complementary strengths and highly talented people."

For first-quarter 2018, Praxair expects diluted earnings per share in the range of $1.53 to $1.58, excluding transaction costs related to the proposed merger. The company’s effective tax rate is estimated to be in the range of 23% to 25%.

Following is additional detail on fourth-quarter 2017 results by segment.

In North America, fourth-quarter sales were $1,542 million, 9% above the prior-year quarter, excluding currency translation. Sales growth was driven primarily by stronger volumes to the downstream energy, manufacturing and electronics end-markets and higher price. Operating profit was $396 million, 10% above the prior-year quarter.

In Europe, fourth-quarter sales were $412 million, 17% above the prior-year quarter. Excluding currency and cost pass-through, sales grew 5% from the prior year due to higher volumes, mainly led by the metals, manufacturing and chemicals end-markets. Operating profit was $80 million, 13% above the prior-year quarter.

In South America, fourth-quarter sales were $370 million, 4% above the prior-year quarter, excluding currency translation. Sales growth was driven mainly by higher volumes to metals and chemicals end-markets and price attainment. Operating profit was $60 million.

Sales in Asia were $470 million in the quarter, up 19% from the prior year. Excluding currency and cost pass-through, sales grew 14% from the prior year, driven by higher volumes in China, Korea and India, project start-ups and 3% price attainment. Operating profit was $90 million, 15% above prior-year quarter.

Praxair Surface Technologies had fourth-quarter sales of $159 million, up 7% above prior-year quarter. Sales growth was driven primarily by aerospace coatings. Operating profit was $27 million.

Praxair, Inc. is a leading industrial gas company in North and South America and one of the largest worldwide. With market capitalization of approximately $40 billion and 2017 sales of $11 billion, the company employs over 26,000 people globally and has been named to the Dow Jones(R) World Sustainability Index for 15 consecutive years. Praxair produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Our products, services and technologies are making our planet more productive by bringing efficiency and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, primary metals and many others. For more information about the company, please visit our website at www.praxair.com.

Adjusted amounts, EBITDA, free cash flow and after-tax return on capital are non-GAAP measures. See the attachments for a summary of non-GAAP reconciliations and calculations of non-GAAP measures.

Attachments: Summary Non-GAAP Reconciliations, Statements of Income, Balance Sheets, Statements of Cash Flows, Segment Information, Quarterly Financial Summary and Appendix: Non-GAAP Measures.

A teleconference about Praxair’s fourth-quarter results is being held this morning, January 25, 2018 at 11:00 am Eastern Time. The number is (631) 485-4849 - Conference ID: 4575769. The call is also available as a webcast live and on-demand at www.praxair.com/investors. Materials to be used in the teleconference are also available on the website.

Forward-looking Statements

This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s reasonable expectations and assumptions as of the date the statements are made but involve risks and uncertainties. These risks and uncertainties include, without limitation: the expected timing and likelihood of the completion of the contemplated business combination with Linde AG, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals that could reduce anticipated benefits or cause the parties to abandon the transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the business combination agreement; the ability to successfully complete the proposed business combination and the exchange offer, regulatory or other limitations imposed as a result of the proposed business combination; the success of the business following the proposed business combination; the ability to successfully integrate the Praxair and Linde businesses; the risk that the combined company may be unable to achieve expected synergies or that it may take longer or be more costly than expected to achieve those synergies; the performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances; changes in foreign currencies and in interest rates; the cost and availability of electric power, natural gas and other raw materials; the ability to achieve price increases to offset cost increases; catastrophic events including natural disasters, epidemics and acts of war and terrorism; the ability to attract, hire, and retain qualified personnel; the impact of changes in financial accounting standards; the impact of changes in pension plan liabilities; the impact of tax, environmental, healthcare and other legislation and government regulation in jurisdictions in which the company operates, including the impact of the U.S. Tax Cuts and Jobs Act of 2017; the cost and outcomes of investigations, litigation and regulatory proceedings; the impact of potential unusual or non-recurring items; continued timely development and market acceptance of new products and applications; the impact of competitive products and pricing; future financial and operating performance of major customers and industries served; the impact of information technology system failures, network disruptions and breaches in data security; and the effectiveness and speed of integrating new acquisitions into the business. These risks and uncertainties may cause actual future results or circumstances to differ materially from the GAAP or adjusted projections or estimates contained in the forward-looking statements.

The company assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances. The above listed risks and uncertainties are further described in Item 1A (Risk Factors) in the company’s latest Annual Report on Form 10-K filed with the SEC and in the proxy statement/prospectus included in the Registration Statement on Form S-4 (which Registration Statement was declared effective on August 14, 2017) filed by Linde plc with the SEC which should be reviewed carefully. Please consider the company’s forward-looking statements in light of those risks.

PRAXAIR, INC. AND SUBSIDIARIES SUMMARY NON-GAAP RECONCILIATIONS (UNAUDITED)

The following adjusted amounts are Non-GAAP measures and are intended to supplement investors’ understanding of the company’s financial statements by providing measures which investors, financial analysts and management use to help evaluate the company’s operating performance. Items which the company does not believe to be indicative of on-going business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. See the Non-GAAP reconciliations starting on page 10 for additional details relating to the Non-GAAP adjustments.

(Millions of dollars, except per share amounts)
                                                                                                                                                                                                                                      
                                                                                                Sales                                                                                    Operating Profit                                                                          Net Income - Praxair, Inc.                                                                             Diluted EPS
                                                                       ---------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------
                                                                                       2017                                  2016                                                     2017                                  2016                                                     2017                                  2016                                                     2017                                  2016
                                                                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------                       ----------------------------------
Quarter Ended December 31
-------------------------------------------------
Reported GAAP Amounts                                                                     $          2,953                                         $          2,644                                         $            636                                         $            599                                         $             33                                         $            406                                         $           0.11                                         $           1.41
Transaction costs (a)                                                                       --                                           --                                                       17                                           --                                                       14                                           --                                                     0.05                                           --
Tax reform (b)                                                                              --                                           --                                           --                                           --                                                      394                                           --                                                     1.36                                           --
Pension settlement charges (c)                                                              --                                           --                                           --                                           --                                           --                                           --                                           --                                           --
Cost reduction program and other charges, net (d)                                           --                                           --                                           --                                           --                                           --                                           --                                           --                                           --
Bond redemption (e)                                                      --     --     --     --     --     --     --     --
                                                                       -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------
    Total adjustments                                                    --     --                 17     --                408     --               1.41     --
                                                                       -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------
Adjusted amounts                                                                          $          2,953                      $          2,644                      $            653                      $            599                      $            441                      $            406                      $           1.52                      $           1.41
                                                                       ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ==============
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Year To Date December 31
-------------------------------------------------
Reported GAAP Amounts                                                                     $         11,437                                         $         10,534                                         $          2,448                                         $          2,238                                         $          1,247                                         $          1,500                                         $           4.32                                         $           5.21
Transaction costs (a)                                                                       --                                           --                                                       52                                           --                                                       48                                           --                                                     0.17                                           --
Tax reform (b)                                                                              --                                           --                                           --                                           --                                                      394                                           --                                                     1.36                                           --
Pension settlement charges (c)                                                              --                                           --                                                        2                                                        4                                                        1                                                        3                                           --                                                     0.01
Cost reduction program and other charges, net (d)                                           --                                           --                                           --                                                       96                                           --                                                       63                                           --                                                     0.22
Bond redemption (e)                                                      --     --     --     --     --                 10     --               0.04
                                                                       -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------
    Total adjustments                                                    --     --                 54                100                443                 76               1.53               0.27
                                                                       -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------
Adjusted amounts                                                                          $         11,437                      $         10,534                      $          2,502                      $          2,338                      $          1,690                      $          1,576                      $           5.85                      $           5.48
                                                                       ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ============== ==================== ==================== ==============
(a) Charges in 2017 for transaction costs primarily related to the
potential Linde merger.
(b) On December 22, 2017 the U.S. government enacted the Tax Cuts
and Jobs Act (Tax Reform). This comprehensive tax legislation
significantly revises the U.S. corporate income tax by, among other
things, lowering corporate income tax rates, implementing a
territorial tax system and imposing a repatriation tax on deemed
repatriated earnings of foreign subsidiaries. As a result, Praxair’s
fourth-quarter net income includes a net income tax charge of $394
million comprised of the following: $467 million charge for deemed
repatriation of accumulated foreign earnings, $260 million charge
for foreign withholding taxes related to anticipated repatriation of
foreign earnings and $333 million benefit for the revaluation of
deferred tax liabilities from 35 percent to the 21 percent tax rate.
This represents the Company’s current best estimate of the tax
reform. As new information becomes available, the Company may update
this estimate.
(c) Pension settlement charges were recorded in the third quarter of
2017 related to lump sum benefit payments made from an international
pension plan and in the third quarter of 2016 related to lump sum
benefit payments made from the U.S. supplemental pension plan.
(d) Charges in the 2016 third quarter related to the cost reduction
program and other charges.
(e) Charge to interest expense in the 2016 first quarter related to
a bond redemption.
 
                                                                                                                                                           PRAXAIR, INC. AND SUBSIDIARIES
                                                                                                                                                          CONSOLIDATED STATEMENTS OF INCOME
                                                                                                                                                    (Millions of dollars, except per share data)
                                                                                                                                                                     (UNAUDITED)
 
                                                                                                              Quarter Ended                                                                                                                 Year to Date
                                                                                                                                 December 31,                                                                                                                                     December 31,
                                                                       --------------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------
                                                                                              2017                                                   2016                                                                       2017                                                2016
                                                                       --------------------------------------------------                     ---------------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------
                                                                                                                                                                                                                                                                                                    
SALES                                                                                     $   2,953                                                              $          2,644                                                              $  11,437                                                              $  10,534
Cost of sales                                                                                 1,660                                                                         1,478                                                                  6,455                                                                  5,860
Selling, general and administrative                                                             316                                                                           272                                                                  1,207                                                                  1,145
Depreciation and amortization                                                                   307                                                                           285                                                                  1,184                                                                  1,122
Research and development                                                                         24                                                                            23                                                                     93                                                                     92
Transaction costs and other charges                                                              17                                                                --                                                                     54                                                                    100
Other income (expense) - net                                                   7                                      13                                4                               23  
                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
OPERATING PROFIT                                                                                636                                                                           599                                                                  2,448                                                                  2,238
Interest expense - net                                                        41                                      38                              161                              190  
                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS                                               595                                                                           561                                                                  2,287                                                                  2,048
Income taxes                                                                 558                                     152                            1,026                              551  
                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
INCOME BEFORE EQUITY INVESTMENTS                                                                 37                                                                           409                                                                  1,261                                                                  1,497
Income from equity investments                                                12                                      10                               47                               41  
                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)                                                  49                                                                           419                                                                  1,308                                                                  1,538
Less: noncontrolling interests                                               (16 )                                                      (13 )                                               (61 )                                               (38 )
                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
NET INCOME - PRAXAIR, INC.                                                                $      33                                           $            406                                           $   1,247                                           $   1,500  
                                                                       ==================== ======= ====================                      ==================== ============== ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                    
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
                                                                                                                                                                                                                                                                                                    
Basic earnings per share                                                                  $    0.11                                                              $           1.42                                                              $    4.36                                                              $    5.25
                                                                                                                                                                                                                                                                                                    
Diluted earnings per share                                                                $    0.11                                                              $           1.41                                                              $    4.32                                                              $    5.21
                                                                                                                                                                                                                                                                                                    
Cash dividends                                                                            $  0.7875                                                              $           0.75                                                              $    3.15                                                              $    3.00
                                                                                                                                                                                                                                                                                                    
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic shares outstanding (000’s)                                                            286,976                                                                       285,720                                                                286,261                                                                285,677
Diluted shares outstanding (000’s)                                                          290,456                                                                       287,956                                                                289,114                                                                287,757
                                                                                                                                                                                                                                                                                                    
Note: See page 4 for a reconciliation to 2017 adjusted amounts which
are Non-GAAP.
 
                                                                    PRAXAIR, INC. AND SUBSIDIARIES
                                                                 CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                         (Millions of dollars)
                                                                              (UNAUDITED)
 
                                                                 December 31,                                       December 31,
                                                                     2017                                                                  2016
                                               -------------------------------------------------                     -------------------------------------------------
ASSETS
Cash and cash equivalents                                         $    617                                                              $    524
Accounts receivable - net                                            1,804                                                                 1,641
Inventories                                                            614                                                                   550
Prepaid and other current assets                    250                             165  
                                               -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL CURRENT ASSETS                                                 3,285                                                                 2,880
Property, plant and equipment - net                                 12,057                                                                11,477
Goodwill                                                             3,233                                                                 3,117
Other intangibles - net                                                553                                                                   583
Other long-term assets                            1,308                           1,275  
                                               -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL ASSETS                                                      $ 20,436                                           $ 19,332  
                                               ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                      
LIABILITIES AND EQUITY
Accounts payable                                                  $    972                                                              $    906
Short-term debt                                                        238                                                                   434
Current portion of long-term debt                                      979                                                                   164
Other current liabilities                         1,118                             974  
                                               -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL CURRENT LIABILITIES                                            3,307                                                                 2,478
Long-term debt                                                       7,783                                                                 8,917
Other long-term liabilities                       2,824                           2,485  
                                               -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL LIABILITIES                                                   13,914                                                                13,880
                                                                                                                      
REDEEMABLE NONCONTROLLING INTERESTS                                     11                                                                    11
                                                                                                                      
PRAXAIR, INC. SHAREHOLDERS’ EQUITY:
Common stock                                                             4                                                                     4
Additional paid-in capital                                           4,084                                                                 4,074
Retained earnings                                                   13,224                                                                12,879
Accumulated other comprehensive income (loss)                       (4,098 )                                                              (4,600 )
Less: Treasury stock, at cost                    (7,196 )                                           (7,336 )
                                               -------------------- ------ --------------------                      -------------------- ------ --------------------
    Total Praxair, Inc. Shareholders’ Equity                         6,018                                                                 5,021
Noncontrolling interests                            493                             420  
                                               -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL EQUITY                                      6,511                           5,441  
                                               -------------------- ------ --------------------                      -------------------- ------ --------------------
TOTAL LIABILITIES AND EQUITY                                      $ 20,436                                           $ 19,332  
                                               ==================== ====== ====================                      ==================== ====== ====================
 
                                                                                                                                                                    PRAXAIR, INC. AND SUBSIDIARIES
                                                                                                                                                            CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                                                                         (Millions of dollars)
                                                                                                                                                                              (UNAUDITED)
 
                                                                                                                          Quarter Ended                                                                                                                   Year to Date
                                                                                                                                             December 31,                                                                                                                                       December 31,
                                                                                     -----------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------------
                                                                                                          2017                                                  2016                                                                      2017                                                   2016
                                                                                     -----------------------------------------------                     ---------------------------------------------------------                     -------------------------------------------------                     ---------------------------------------------------------
OPERATIONS
    Net income - Praxair, Inc.                                                                          $   33                                                              $            406                                                              $  1,247                                                              $          1,500
    Noncontrolling interests                                                             16                                      13                              61                                      38  
                                                                                     -------------------- ---- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
    Net income (including noncontrolling interests)                                                         49                                                                           419                                                                 1,308                                                                         1,538
                                                                                                                                                                                                                                                                                                              
    Adjustments to reconcile net income to net cash provided by
    operating activities:
        Transaction costs and other charges, net of payments                                                (1 )                                                                         (10 )                                                                  26                                                                            83
        Tax reform income tax charge, net                                                                  394                                                                --                                                                   394                                                                --
        Depreciation and amortization                                                                      307                                                                           285                                                                 1,184                                                                         1,122
        Accounts Receivable                                                                                 (9 )                                                                          11                                                                   (92 )                                                                         (33 )
        Inventory                                                                                          (11 )                                                                         (24 )                                                                 (22 )                                                                         (13 )
        Payables and accruals                                                                               11                                                                            86                                                                    22                                                                            92
        Pension contributions                                                                               (5 )                                                                          (3 )                                                                 (19 )                                                                         (11 )
        Deferred income taxes and other, excluding tax reform                           101                                     (38 )                                              240                                      (5 )
                                                                                     -------------------- ---- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
            Net cash provided by operating activities                                   836                                     726                           3,041                                   2,773  
                                                                                     -------------------- ---- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                              
INVESTING
    Capital expenditures                                                                                  (339 )                                                                        (409 )                                                              (1,311 )                                                                      (1,465 )
    Acquisitions, net of cash acquired                                                                     (15 )                                                                         (18 )                                                                 (33 )                                                                        (363 )
    Divestitures and asset sales                                                          8                                      17                              30                                      58  
                                                                                     -------------------- ---- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
        Net cash used for investing activities                                         (346 )                                                     (410 )                                           (1,314 )                                                   (1,770 )
                                                                                     -------------------- ---- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                              
FINANCING
    Debt increase (decrease) - net                                                                        (268 )                                                                        (199 )                                                                (771 )                                                                         357
    Issuances of common stock                                                                               29                                                                            30                                                                   120                                                                           139
    Purchases of common stock                                                                               (1 )                                                                         (95 )                                                                 (12 )                                                                        (228 )
    Cash dividends - Praxair, Inc. shareholders                                                           (226 )                                                                        (214 )                                                                (901 )                                                                        (856 )
    Noncontrolling interest transactions and other                                       (7 )                                                       67                             (92 )                                                      (55 )
                                                                                     -------------------- ---- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
        Net cash provided by (used for) financing activities                                              (473 )                                                                        (411 )                                                              (1,656 )                                                                        (643 )
                                                                                                                                                                                                                                                                                                              
Effect of exchange rate changes on cash and cash equivalents                             (7 )                                                       (8 )                                               22                                      17  
                                                                                     -------------------- ---- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                              
Change in cash and cash equivalents                                                                         10                                                                          (103 )                                                                  93                                                                           377
Cash and cash equivalents, beginning-of-period                                          607                                     627                             524                                     147  
                                                                                     -------------------- ---- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                              
Cash and cash equivalents, end-of-period                                                                $  617                                           $            524                                           $    617                                           $            524  
                                                                                     ==================== ==== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ============== ====================
 
                                                                                                                                                    PRAXAIR, INC. AND SUBSIDIARIES
                                                                                                                                                          SEGMENT INFORMATION
                                                                                                                                                         (Millions of dollars)
                                                                                                                                                              (UNAUDITED)
 
                                                                                                   Quarter Ended                                                                                                               Year to Date
                                                                                                                      December 31,                                                                                                                                   December 31,
                                                             ------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------
                                                                                   2017                                                  2016                                                   2017                                               2016
                                                             ---------------------------------------------                        ------------------------------------------------------                        ----------------------------------------------                        ----------------------------------------------
SALES
    North America                                                               $ 1,542                                                              $          1,397                                           $  6,023                                                              $  5,592
    Europe                                                                          412                                                                           351                                                                 1,558                                                                 1,392
    South America                                                                   370                                                                           352                                                                 1,501                                                                 1,399
    Asia                                                                            470                                                                           395                                                                 1,738                                                                 1,555
    Surface Technologies                                         159                                     149                             617                             596  
                                                             -------------------- ----- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------
        Consolidated sales                                                      $ 2,953                                           $          2,644                                           $ 11,437                                           $ 10,534  
                                                             ==================== ===== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                       
OPERATING PROFIT
    North America                                                               $   396                                                              $            359                                                              $  1,517                                                              $  1,430
    Europe                                                                           80                                                                            71                                                                   297                                                                   273
    South America                                                                    60                                                                            64                                                                   250                                                                   257
    Asia                                                                             90                                                                            78                                                                   333                                                                   276
    Surface Technologies                                          27                                      27                             105                             102  
                                                             -------------------- ----- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------
        Segment operating profit                                                $   653                                                              $            599                                                              $  2,502                                                              $  2,338
    Transaction costs and other charges                          (17 )                                           --                             (54 )                                             (100 )
                                                             -------------------- ----- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------
        Total operating profit                                                  $   636                                           $            599                                           $  2,448                                           $  2,238  
                                                             ==================== ===== ====================                      ==================== ============== ====================                      ==================== ====== ====================                      ==================== ====== ====================
 
                                                                                                                                                                                                                                     PRAXAIR, INC. AND SUBSIDIARIES
                                                                                                                                                                                                                                     QUARTERLY FINANCIAL SUMMARY
                                                                                                                                                                                                                                     (Millions of dollars, except per share data)
                                                                                                                                                                                                                                     (UNAUDITED)
 
                                                                                                                                                                                       2017 (b)                                                                                                                                                                                                                                                                            2016 (c)
                                                                           ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Q4                                                  Q3                                                  Q2                                                  Q1                                                                        Q4                                                      Q3                                                     Q2                                                         Q1
FROM THE INCOME STATEMENT
Sales                                                                                         $   2,953                                                              $   2,922                                                              $   2,834                                                              $   2,728                                                              $          2,644                                                              $   2,716                                                              $          2,665                                                              $          2,509
Cost of sales                                                                                     1,660                                                                  1,652                                                                  1,598                                                                  1,545                                                                         1,478                                                                  1,533                                                                         1,468                                                                         1,381
Selling, general and administrative                                                                 316                                                                    304                                                                    308                                                                    279                                                                           272                                                                    291                                                                           308                                                                           274
Depreciation and amortization                                                                       307                                                                    298                                                                    292                                                                    287                                                                           285                                                                    284                                                                           281                                                                           272
Research and development                                                                             24                                                                     23                                                                     23                                                                     23                                                                            23                                                                     22                                                                            24                                                                            23
Transaction costs and other charges                                                                  17                                                                     16                                                                     15                                                                      6                                                                --                                                                    100                                                                --                                                                --
Other income (expense) - net                                                       7            (3 )                              6            (6 )                                                       13            11                    4                   (5 )
                                                                           -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Operating profit                                                                                    636                                                                    626                                                                    604                                                                    582                                                                           599                                                                    497                                                                           588                                                                           554
Interest expense - net                                                                               41                                                                     41                                                                     38                                                                     41                                                                            38                                                                     43                                                                            44                                                                            65
Income taxes                                                                                        558                                                                    162                                                                    157                                                                    149                                                                           152                                                                    120                                                                           146                                                                           133
Income from equity investments                                                    12            12            11            12                                      10            10                   11                   10  
                                                                           -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Net income (including noncontrolling interests)                                                      49                                                                    435                                                                    420                                                                    404                                                                           419                                                                    344                                                                           409                                                                           366
Less: noncontrolling interests                                                   (16 )                            (16 )                            (14 )                            (15 )                                                      (13 )                             (5 )                                   (10 )                                   (10 )
                                                                           -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Net income - Praxair, Inc.                                                                    $      33                        $     419                        $     406                        $     389                                           $            406                        $     339                        $            399                        $            356  
                                                                           ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ====================                      ==================== ============== ==================== ==================== ==================== ======= ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
Diluted earnings per share                                                                    $    0.11                                                              $    1.45                                                              $    1.41                                                              $    1.35                                                              $           1.41                                                              $    1.18                                                              $           1.39                                                              $           1.24
Cash dividends per share                                                                      $  0.7875                                                              $  0.7875                                                              $  0.7875                                                              $  0.7875                                                              $           0.75                                                              $    0.75                                                              $           0.75                                                              $           0.75
Diluted weighted average shares outstanding (000’s)                                             290,456                                                                289,216                                                                288,535                                                                287,384                                                                       287,956                                                                288,195                                                                       287,727                                                                       286,665
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
ADJUSTED AMOUNTS (a)
Operating profit                                                                              $     653                                                              $     642                                                              $     619                                                              $     588                                                              $            599                                                              $     597                                                              $            588                                                              $            554
Operating margin                                                                                   22.1 %                                                                 22.0 %                                                                 21.8 %                                                                 21.6 %                                                                        22.7 %                                                                 22.0 %                                                                        22.1 %                                                                        22.1 %
Net Income                                                                                    $     441                                                              $     433                                                              $     421                                                              $     395                                                              $            406                                                              $     405                                                              $            399                                                              $            366
Diluted earnings per share                                                                    $    1.52                                                              $    1.50                                                              $    1.46                                                              $    1.37                                                              $           1.41                                                              $    1.41                                                              $           1.39                                                              $           1.28
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
FROM THE BALANCE SHEET
Net debt (a)                                                                                  $   8,383                                                              $   8,630                                                              $   8,832                                                              $   8,849                                                              $          8,991                                                              $   9,215                                                              $          9,389                                                              $          9,183
Capital (a)                                                                                   $  14,905                                                              $  15,372                                                              $  15,102                                                              $  14,824                                                              $         14,443                                                              $  14,864                                                              $         14,948                                                              $         14,607
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
FROM THE STATEMENT OF CASH FLOWS
Cash flow from operations                                                                     $     836                                                              $     794                                                              $     701                                                              $     710                                                              $            726                                                              $     788                                                              $            706                                                              $            553
Cash flow provided by (used for) investing activities                                              (346 )                                                                 (331 )                                                                 (313 )                                                                 (324 )                                                                        (410 )                                                                 (363 )                                                                        (613 )                                                                        (384 )
Cash flow provided by (used for) financing activities                                              (473 )                                                                 (403 )                                                                 (384 )                                                                 (396 )                                                                        (411 )                                                                 (362 )                                                                         249                                                                          (119 )
Capital expenditures                                                                                339                                                                    320                                                                    325                                                                    327                                                                           409                                                                    376                                                                           357                                                                           323
Acquisitions                                                                                         15                                                                     16                                                                      1                                                                      1                                                                            18                                                                     20                                                                           262                                                                            63
Cash dividends                                                                                      226                                                                    225                                                                    225                                                                    225                                                                           214                                                                    214                                                                           214                                                                           214
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
OTHER INFORMATION
After-tax return on capital (ROC) (a)                                                               9.5 %                                                                 12.0 %                                                                 11.5 %                                                                 11.5 %                                                                        11.5 %                                                                 11.6 %                                                                        12.1 %                                                                        11.5 %
Adjusted after-tax ROC (a)                                                                         12.5 %                                                                 12.3 %                                                                 12.1 %                                                                 12.0 %                                                                        12.0 %                                                                 12.1 %                                                                        12.2 %                                                                        12.4 %
EBITDA (a)                                                                                    $     955                                                              $     936                                                              $     907                                                              $     881                                                              $            894                                                              $     791                                                              $            880                                                              $            836
EBITDA margin (a)                                                                                  32.3 %                                                                 32.0 %                                                                 32.0 %                                                                 32.3 %                                                                        33.8 %                                                                 29.1 %                                                                        33.0 %                                                                        33.3 %
Adjusted EBITDA (a)                                                                           $     972                                                              $     952                                                              $     922                                                              $     887                                                              $            894                                                              $     891                                                              $            880                                                              $            836
Adjusted EBITDA margin (a)                                                                         32.9 %                                                                 32.6 %                                                                 32.5 %                                                                 32.5 %                                                                        33.8 %                                                                 32.8 %                                                                        33.0 %                                                                        33.3 %
Number of employees                                                                              26,461                                                                 26,531                                                                 26,487                                                                 26,420                                                                        26,498                                                                 26,680                                                                        26,896                                                                        26,558
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
SEGMENT DATA
SALES
North America                                                                                 $   1,542                                                              $   1,518                                                              $   1,505                                                              $   1,458                                                              $          1,397                                                              $   1,431                                                              $          1,411                                                              $          1,353
Europe                                                                                              412                                                                    407                                                                    383                                                                    356                                                                           351                                                                    366                                                                           355                                                                           320
South America                                                                                       370                                                                    389                                                                    373                                                                    369                                                                           352                                                                    378                                                                           358                                                                           311
Asia                                                                                                470                                                                    451                                                                    422                                                                    395                                                                           395                                                                    391                                                                           393                                                                           376
Surface Technologies                                                             159           157           151           150                                     149           150                  148                  149  
                                                                           -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Total sales                                                                                   $   2,953                        $   2,922                        $   2,834                        $   2,728                                           $          2,644                        $   2,716                        $          2,665                        $          2,509  
                                                                           ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ====================                      ==================== ============== ==================== ==================== ==================== ======= ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ====================
OPERATING PROFIT
North America                                                                                 $     396                                                              $     386                                                              $     378                                                              $     357                                                              $            359                                                              $     363                                                              $            359                                                              $            349
Europe                                                                                               80                                                                     78                                                                     73                                                                     66                                                                            71                                                                     72                                                                            68                                                                            62
South America                                                                                        60                                                                     63                                                                     63                                                                     64                                                                            64                                                                     68                                                                            70                                                                            55
Asia                                                                                                 90                                                                     88                                                                     80                                                                     75                                                                            78                                                                     68                                                                            67                                                                            63
Surface Technologies                                                              27            27            25            26                                      27            26                   24                   25  
                                                                           -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
    Segment operating profit                                                                        653                                                                    642                                                                    619                                                                    588                                                                           599                                                                    597                                                                           588                                                                           554
Transaction costs and other charges                                              (17 )                            (16 )                            (15 )                             (6 )                                           --          (100 )                        --       --  
                                                                           -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- ------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- ------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
    Total operating profit                                                                    $     636                        $     626                        $     604                        $     582                                           $            599                        $     497                        $            588                        $            554  
                                                                           ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ==================== ==================== ==================== ======= ====================                      ==================== ============== ==================== ==================== ==================== ======= ==================== ==================== ==================== ============== ==================== ==================== ==================== ============== ====================
(a) Non-GAAP measure, see Appendix.
(b) 2017 includes (i) after-tax charges of $6 million ($0.02 per
diluted share), $15 million ($0.05 per diluted share), $13 million
($0.05 per diluted share), and $14 million ($0.05 per diluted share)
in the first, second, third, and fourth quarters, respectively for
transaction costs related to the potential Linde merger, (ii) a
pension settlement charge of $2 million ($1 million after-tax) in
the third quarter related to lump sum benefit payments made from an
international pension plan, and (iii) income tax charges, net of
$394 million ($1.36 per diluted share) in the fourth quarter due to
U.S. tax reform.
(c) 2016 includes (i) a $16 million charge to interest expense ($10
million after-tax, or $0.04 per diluted share) in the first quarter
related to the redemption of the $325 million 5.20% notes due 2017,
(ii) a pre-tax pension settlement charge of $4 million ($3 million
after-tax, or $0.01 per diluted share) in the third quarter related
to lump sum benefit payments made from the U.S. supplemental pension
plan, and (iii) pre-tax charges of $96 million ($63 million
after-tax and non-controlling interests, or $0.22 per diluted share)
in the third quarter, primarily related to cost reduction actions.
 

PRAXAIR, INC. AND SUBSIDIARIES APPENDIX NON-GAAP MEASURES (Millions of dollars, except per share data) (UNAUDITED)

The following Non-GAAP measures are intended to supplement investors’ understanding of the company’s financial information by providing measures which investors, financial analysts and management use to help evaluate the company’s financial leverage, return on capital and operating performance. Items which the company does not believe to be indicative of on-going business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. Adjusted amounts exclude the impacts of the 2017 transaction costs, 2017 third quarter pension settlement, 2017 fourth quarter U.S. tax reform, 2016 third quarter cost reduction program and pension settlement, 2016 first quarter bond redemption, 2015 third quarter cost reduction program and pension settlement, and 2015 second quarter cost reduction program and other charges.

Adjusted Amounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                       Fourth                                                                         Third                                                                        Second                                                                         First                                                                                                                                                       Third                                                                         First                                                                                                                                                       Third                                                                        Second
                                                                                                          Year                                                                         Quarter                                                                       Quarter                                                                       Quarter                                                                       Quarter                                                                        Year                                                                         Quarter                                                                       Quarter                                                                        Year                                                                         Quarter                                                                       Quarter
                                                                                ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------
                                                                                                          2017                                                                          2017                                                                          2017                                                                          2017                                                                          2017                                                                          2016                                                                          2016                                                                          2016                                                                          2015                                                                          2015                                                                          2015
                                                                                ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Adjusted Operating Profit and Operating Profit Margin
Reported operating profit                                                                          $          2,448                                                              $            636                                                              $            626                                                              $            604                                                              $            582                                                              $          2,238                                                              $            497                                                              $            554                                                              $          2,321                                                              $            594                                                              $            480
Add: Cost reduction program and other charges, net                                                   --                                                                --                                                                --                                                                --                                                                --                                                                            96                                                                            96                                                                --                                                                           165                                                                            19                                                                           146
Add: Pension settlement charge                                                                                    2                                                                --                                                                             2                                                                --                                                                --                                                                             4                                                                             4                                                                --                                                                             7                                                                             7                                                                --
Add: Transaction costs                                                                        52                                      17                                      14                                      15                                       6                          --                          --                          --                          --                          --                          --  
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total adjustments                                                                             54                                      17                                      16                                      15                                       6                                     100                                     100                          --                                     172                                      26                                     146  
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Adjusted operating profit                                                                          $          2,502                                           $            653                                           $            642                                           $            619                                           $            588                                           $          2,338                                           $            597                                           $            554                                           $          2,493                                           $            620                                           $            626  
                                                                                ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Reported percentage change                                                                                        9 %                                                                           6 %
Adjusted percentage change                                                                                        7 %                                                                           9 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Reported sales                                                                                     $         11,437                                                              $          2,953                                                              $          2,922                                                              $          2,834                                                              $          2,728                                                              $         10,534                                                              $          2,716                                                              $          2,509                                                              $         10,776                                                              $          2,686                                                              $          2,738
Adjusted operating profit margin                                                                               21.9 %                                                                        22.1 %                                                                        22.0 %                                                                        21.8 %                                                                        21.6 %                                                                        22.2 %                                                                        22.0 %                                                                        22.1 %                                                                        23.1 %                                                                        23.1 %                                                                        22.9 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Adjusted Interest Expense - net
Reported interest expense - net                                                                    $            161                                                              $             41                                                              $             41                                                              $             38                                                              $             41                                                              $            190                                                              $             43                                                              $             65                                                              $            161                                                              $             35                                                              $             40
Less: Bond redemption                                                             --                          --                          --                          --                          --                                     (16 )                                           --                                     (16 )                                           --                          --                          --  
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Adjusted interest expense - net                                                                    $            161                                           $             41                                           $             41                                           $             38                                           $             41                                           $            174                                           $             43                                           $             49                                           $            161                                           $             35                                           $             40  
                                                                                ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Adjusted Income Taxes
Reported income taxes                                                                              $          1,026                                                              $            558                                                              $            162                                                              $            157                                                              $            149                                                              $            551                                                              $            120                                                              $            133                                                              $            612                                                              $            156                                                              $            131
Add: Cost reduction program and other charges, net                                                   --                                                                --                                                                --                                                                --                                                                --                                                                            28                                                                            28                                                                --                                                                            39                                                                             6                                                                            33
Add: Bond redemption                                                                                 --                                                                --                                                                --                                                                --                                                                --                                                                             6                                                                --                                                                             6                                                                --                                                                --                                                                --
Add: Pension settlement charge                                                                                    1                                                                --                                                                             1                                                                --                                                                --                                                                             1                                                                             1                                                                --                                                                             2                                                                             2                                                                --
Add: Tax reform                                                                                                (394 )                                                                        (394 )                                                              --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --
Add: Transaction costs                                                                         4                                       3                                       1                          --                          --                          --                          --                          --                          --                          --                          --  
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total adjustments                                                                           (389 )                                                     (391 )                                                        2                          --                          --                                      35                                      29                                       6                                      41                                       8                                      33  
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Adjusted income taxes                                                                              $            637                                           $            167                                           $            164                                           $            157                                           $            149                                           $            586                                           $            149                                           $            139                                           $            653                                           $            164                                           $            164  
                                                                                ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Adjusted Effective Tax Rate
Reported income before income taxes and equity investments                                         $          2,287                                                              $            595                                                              $            585                                                              $            566                                                              $            541                                                              $          2,048                                                              $            454                                                              $            489                                                              $          2,160                                                              $            559                                                              $            440
Add: Cost reduction program and other charges, net                                                   --                                                                --                                                                --                                                                --                                                                --                                                                            96                                                                            96                                                                --                                                                           165                                                                            19                                                                           146
Add: Bond redemption                                                                                 --                                                                --                                                                --                                                                --                                                                --                                                                            16                                                                --                                                                            16                                                                --                                                                --                                                                --
Add: Pension settlement charge                                                                                    2                                                                --                                                                             2                                                                --                                                                --                                                                             4                                                                             4                                                                --                                                                             7                                                                             7                                                                --
Add: Transaction costs                                                                        52                                      17                                      14                                      15                                       6                          --                          --                          --                          --                          --                          --  
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total adjustments                                                                             54                                      17                                      16                                      15                                       6                                     116                                     100                                      16                                     172                                      26                                     146  
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Adjusted income before income taxes and equity investments                                         $          2,341                                           $            612                                           $            601                                           $            581                                           $            547                                           $          2,164                                           $            554                                           $            505                                           $          2,332                                           $            585                                           $            586  
                                                                                ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Reported effective tax rate                                                                                    44.9 %                                                                        93.8 %                                                                        27.7 %                                                                        27.7 %                                                                        27.5 %                                                                        26.9 %                                                                        26.4 %                                                                        27.2 %                                                                        28.3 %                                                                        27.9 %                                                                        29.8 %
Adjusted effective tax rate                                                                                    27.2 %                                                                        27.3 %                                                                        27.3 %                                                                        27.0 %                                                                        27.2 %                                                                        27.1 %                                                                        26.9 %                                                                        27.5 %                                                                        28.0 %                                                                        28.0 %                                                                        28.0 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Adjusted Noncontrolling Interests
Reported noncontrolling interests                                                                  $             61                                                              $             16                                                              $             16                                                              $             14                                                              $             15                                                              $             38                                                              $              5                                                              $             10                                                              $             44                                                              $             12                                                              $             11
Add: Cost reduction program and other charges, net                                --                          --                          --                          --                          --                                       5                                       5                          --                                       1                          --                                       1  
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total adjustments                                                                 --                          --                          --                          --                          --                                       5                                       5                          --                                       1                          --                                       1  
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Adjusted noncontrolling interests                                                                  $             61                                           $             16                                           $             16                                           $             14                                           $             15                                           $             43                                           $             10                                           $             10                                           $             45                                           $             12                                           $             12  
                                                                                ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Adjusted Net Income - Praxair, Inc.
Reported net income - Praxair, Inc.                                                                $          1,247                                                              $             33                                                              $            419                                                              $            406                                                              $            389                                                              $          1,500                                                              $            339                                                              $            356                                                              $          1,547                                                              $            401                                                              $            308
Add: Cost reduction program and other charges, net                                                   --                                                                --                                                                --                                                                --                                                                --                                                                            63                                                                            63                                                                --                                                                           125                                                                            13                                                                           112
Add: Bond redemption                                                                                 --                                                                --                                                                --                                                                --                                                                --                                                                            10                                                                --                                                                            10                                                                --                                                                --                                                                --
Add: Pension settlement charge                                                                                    1                                                                --                                                                             1                                                                --                                                                --                                                                             3                                                                             3                                                                --                                                                             5                                                                             5                                                                --
Add: Tax reform                                                                                                 394                                                                           394                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --
Add: Transaction costs                                                                        48                                      14                                      13                                      15                                       6                          --                          --                          --                          --                          --                          --  
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total adjustments                                                                            443                                     408                                      14                                      15                                       6                                      76                                      66                                      10                                     130                                      18                                     112  
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Adjusted net income - Praxair, Inc.                                                                $          1,690                                           $            441                                           $            433                                           $            421                                           $            395                                           $          1,576                                           $            405                                           $            366                                           $          1,677                                           $            419                                           $            420  
                                                                                ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Reported percentage change                                                                                      (17 )%                                                                        (92 )%
Adjusted percentage change                                                                                        7 %                                                                           9 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Adjusted Diluted EPS
Reported diluted EPS                                                                               $           4.32                                                              $           0.11                                                              $           1.45                                                              $           1.41                                                              $           1.35                                                              $           5.21                                                              $           1.18                                                              $           1.24                                                              $           5.35                                                              $           1.40                                                              $           1.06
Add: Cost reduction program and other charges, net                                                   --                                                                --                                                                --                                                                --                                                                --                                                                          0.22                                                                          0.22                                                                --                                                                          0.43                                                                          0.04                                                                          0.39
Add: Bond redemption                                                                                 --                                                                --                                                                --                                                                --                                                                --                                                                          0.04                                                                --                                                                          0.04                                                                --                                                                --                                                                --
Add: Pension settlement charge                                                                       --                                                                --                                                                --                                                                --                                                                --                                                                          0.01                                                                          0.01                                                                --                                                                          0.02                                                                          0.02                                                                --
Add: Tax reform                                                                                                1.36                                                                          1.36                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --
Add: Transaction costs                                                                      0.17                                    0.05                                    0.05                                    0.05                                    0.02                          --                          --                          --                          --                          --                          --  
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total adjustments                                                                           1.53                                    1.41                                    0.05                                    0.05                                    0.02                                    0.27                                    0.23                                    0.04                                    0.45                                    0.06                                    0.39  
                                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Adjusted diluted EPS                                                                               $           5.85                                           $           1.52                                           $           1.50                                           $           1.46                                           $           1.37                                           $           5.48                                           $           1.41                                           $           1.28                                           $           5.80                                           $           1.46                                           $           1.45  
                                                                                ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Reported percentage change                                                                                      (17 )%                                                                        (92 )%
Adjusted percentage change                                                                                        7 %                                                                           8 %
 
                                                                                                                                                                                                                  2017                                                                                                                                                                                                                                                                                                 2016                                                                                                                                                                                                                                                                                                 2015
                                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Q4                                                         Q3                                                         Q2                                                         Q1                                                                            Q4                                                         Q3                                                         Q2                                                         Q1                                                                            Q4                                                         Q3                                                         Q2                                                         Q1
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Free Cash Flow (FCF) -
Free cash flow is a measure used by investors, financial analysts
and management to evaluate the ability of a company to pursue
opportunities that enhance shareholder value. FCF equals cash flow
from operations less capital expenditures.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
    Operating cash flow                                                                                  $            836                                                              $            794                                                              $            701                                                              $            710                                                              $            726                                                              $            788                                                              $            706                                                              $            553                                                              $            791                                                              $            676                                                              $            710                                                              $            518
    Less: capital expenditures                                                                    (339 )                                  (320 )                                  (325 )                                  (327 )                                                     (409 )                                  (376 )                                  (357 )                                  (323 )                                                     (387 )                                  (405 )                                  (352 )                                  (397 )
                                                                                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
        Free Cash Flow                                                                                   $            497                                                              $            474                                                              $            376                                                              $            383                                                              $            317                                                              $            412                                                              $            349                                                              $            230                                                              $            404                                                              $            271                                                              $            358                                                              $            121
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
Net Debt, Capital and Debt-to-Capital
Ratio - The debt-to-capital ratio is a measure used by
investors, financial analysts and management to provide a measure
of financial leverage and insights into how the company is
financing its operations.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
    Debt                                                                                                 $          9,000                                                              $          9,237                                                              $          9,367                                                              $          9,368                                                              $          9,515                                                              $          9,842                                                              $          9,956                                                              $          9,404                                                              $          9,231                                                              $          9,480                                                              $          9,313                                                              $          9,360
    Less: cash and cash equivalents                                                               (617 )                                  (607 )                                  (535 )                                  (519 )                                                     (524 )                                  (627 )                                  (567 )                                  (221 )                                                     (147 )                                  (136 )                                  (136 )                                  (117 )
                                                                                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
        Net debt                                                                                                    8,383                                                                         8,630                                                                         8,832                                                                         8,849                                                                         8,991                                                                         9,215                                                                         9,389                                                                         9,183                                                                         9,084                                                                         9,344                                                                         9,177                                                                         9,243
    Equity and redeemable noncontrolling interests:
        Redeemable noncontrolling interests                                                                            11                                                                            11                                                                            10                                                                            10                                                                            11                                                                            11                                                                            12                                                                           119                                                                           113                                                                           169                                                                           175                                                                           170
        Praxair, Inc. shareholders’ equity                                                                          6,018                                                                         6,256                                                                         5,807                                                                         5,529                                                                         5,021                                                                         5,245                                                                         5,140                                                                         4,888                                                                         4,389                                                                         4,264                                                                         4,964                                                                         5,018
        Noncontrolling interests                                                                   493                  475                  453                  436                                     420                  393                  407                  417                                     404                  380                  380                  375  
                                                                                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
            Total equity and redeemable noncontrolling interests                                 6,522                6,742                6,270                5,975                                   5,452                5,649                5,559                5,424                                   4,906                4,813                5,519                5,563  
                                                                                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
        Capital                                                                                          $         14,905                                                              $         15,372                                                              $         15,102                                                              $         14,824                                                              $         14,443                                                              $         14,864                                                              $         14,948                                                              $         14,607                                                              $         13,990                                                              $         14,157                                                              $         14,696                                                              $         14,806
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
        Debt-to-capital                                                                           56.2 %                                  56.1 %                                  58.5 %                                  59.7 %                                                     62.3 %                                  62.0 %                                  62.8 %                                  62.9 %                                                     64.9 %                                  66.0 %                                  62.4 %                                  62.4 %
                                                                                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
After-tax Return on Capital and Adjusted
After-tax Return on Capital (ROC) -
After-tax return on capital is a measure used by investors,
financial analysts and management to evaluate the return on net
assets employed in the business. ROC measures the after-tax
operating profit that the company was able to generate with the
investments made by all parties in the business (debt,
noncontrolling interests and Praxair, Inc. shareholders’ equity).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
    Reported net income - Praxair, Inc.                                                                  $             33                                                              $            419                                                              $            406                                                              $            389                                                              $            406                                                              $            339                                                              $            399                                                              $            356                                                              $            422                                                              $            401                                                              $            308                                                              $            416
    Add: noncontrolling interests                                                                                      16                                                                            16                                                                            14                                                                            15                                                                            13                                                                             5                                                                            10                                                                            10                                                                             9                                                                            12                                                                            11                                                                            12
    Add: interest expense - net                                                                                        41                                                                            41                                                                            38                                                                            41                                                                            38                                                                            43                                                                            44                                                                            65                                                                            42                                                                            35                                                                            40                                                                            44
    Less: tax benefit on interest expense - net *                                                  (11 )                                   (11 )                                   (11 )                                   (12 )                                                      (10 )                                   (12 )                                   (12 )                                   (20 )                                                      (12 )                                   (10 )                                   (11 )                                   (12 )
                                                                                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
    Net operating profit after-tax (NOPAT)                                                               $             79                                                              $            465                                                              $            447                                                              $            433                                                              $            447                                                              $            375                                                              $            441                                                              $            411                                                              $            461                                                              $            438                                                              $            348                                                              $            460
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
    Pre-tax Adjustments:
        Add: Cost reduction program and other charges, net                                                 --                                                                --                                                                --                                                                --                                                                --                                                                            96                                                                --                                                                --                                                                --                                                                            19                                                                           146                                                                --
        Add: Pension settlement charge                                                                     --                                                                             2                                                                --                                                                --                                                                --                                                                             4                                                                --                                                                --                                                                --                                                                             7                                                                --                                                                --
        Add: Transaction costs                                                                                         17                                                                            14                                                                            15                                                                             6                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --                                                                --
    Less: income taxes on pre-tax adjustments                                                                          (3 )                                                              --                                                                --                                                                --                                                                --                                                                           (29 )                                                              --                                                                --                                                                --                                                                            (8 )                                                                         (33 )                                                              --
    Add: Tax reform net income tax charge                                                          394       --       --       --                          --       --       --       --                          --       --       --       --  
                                                                                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
    Adjusted NOPAT                                                                                       $            487                                                              $            481                                                              $            462                                                              $            439                                                              $            447                                                              $            446                                                              $            441                                                              $            411                                                              $            461                                                              $            456                                                              $            461                                                              $            460
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
    4-quarter trailing NOPAT                                                                             $          1,424                                                              $          1,792                                                              $          1,702                                                              $          1,696                                                              $          1,674                                                              $          1,688                                                              $          1,751                                                              $          1,658                                                              $          1,707                                                              $          1,616                                                              $          1,700                                                              $          1,864
    4-quarter trailing adjusted NOPAT                                                                    $          1,869                                                              $          1,829                                                              $          1,794                                                              $          1,773                                                              $          1,745                                                              $          1,759                                                              $          1,769                                                              $          1,789                                                              $          1,838                                                              $          1,879                                                              $          1,945                                                              $          1,996
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
    Ending capital (see above)                                                                           $         14,905                                                              $         15,372                                                              $         15,102                                                              $         14,824                                                              $         14,443                                                              $         14,864                                                              $         14,948                                                              $         14,607                                                              $         13,990                                                              $         14,157                                                              $         14,696                                                              $         14,806
    5-quarter average ending capital                                                                     $         14,929                                                              $         14,921                                                              $         14,836                                                              $         14,737                                                              $         14,570                                                              $         14,513                                                              $         14,480                                                              $         14,451                                                              $         14,587                                                              $         14,999                                                              $         15,460                                                              $         15,777
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
    After-tax ROC (4-quarter trailing NOPAT / 5-quarter average                                                       9.5 %                                                                        12.0 %                                                                        11.5 %                                                                        11.5 %                                                                        11.5 %                                                                        11.6 %                                                                        12.1 %                                                                        11.5 %                                                                        11.7 %                                                                        10.8 %                                                                        11.0 %                                                                        11.8 %
    capital)
    Adjusted after-tax ROC (4-quarter trailing adjusted NOPAT /                                   12.5 %                                  12.3 %                                  12.1 %                                  12.0 %                                                     12.0 %                                  12.1 %                                  12.2 %                                  12.4 %                                                     12.6 %                                  12.5 %                                  12.6 %                                  12.7 %
    5-quarter average capital)
                                                                                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
    *Tax benefit on interest expense - net is generally presented using
    the reported effective rate.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
EBITDA, Adjusted EBITDA, EBITDA Margin
and Adjusted EBITDA Margin - These measures are used by
investors, financial analysts and management to assess a company’s
profitability.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
    Reported net income - Praxair, Inc.                                                                  $             33                                                              $            419                                                              $            406                                                              $            389                                                              $            406                                                              $            339                                                              $            399                                                              $            356                                                              $            422                                                              $            401                                                              $            308                                                              $            416
    Add: noncontrolling interests                                                                                      16                                                                            16                                                                            14                                                                            15                                                                            13                                                                             5                                                                            10                                                                            10                                                                             9                                                                            12                                                                            11                                                                            12
    Add: interest expense - net                                                                                        41                                                                            41                                                                            38                                                                            41                                                                            38                                                                            43                                                                            44                                                                            65                                                                            42                                                                            35                                                                            40                                                                            44
    Add: income taxes                                                                                                 558                                                                           162                                                                           157                                                                           149                                                                           152                                                                           120                                                                           146                                                                           133                                                                           163                                                                           156                                                                           131                                                                           162
    Add: depreciation and amortization                                                             307                  298                  292                  287                                     285                  284                  281                  272                                     275                  276                  278                  277  
                                                                                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
    EBITDA                                                                                               $            955                                                              $            936                                                              $            907                                                              $            881                                                              $            894                                                              $            791                                                              $            880                                                              $            836                                                              $            911                                                              $            880                                                              $            768                                                              $            911
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
    Adjustments:
        Add: Cost reduction program and other charges, net                                                 --                                                                --                                                                --                                                                --                                                                --                                                                            96                                                                --                                                                --                                                                --                                                                            19                                                                           146                                                                --
        Add: Pension settlement charge                                                                     --                                                                             2                                                                --                                                                --                                                                --                                                                             4                                                                --                                                                --                                                                --                                                                             7                                                                --                                                                --
        Add: Transaction costs                                                                      17                   14                   15                    6                          --       --       --       --                          --       --       --       --  
                                                                                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
    Adjusted EBITDA                                                                                      $            972                                                              $            952                                                              $            922                                                              $            887                                                              $            894                                                              $            891                                                              $            880                                                              $            836                                                              $            911                                                              $            906                                                              $            914                                                              $            911
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
    Reported sales                                                                                                  2,953                                                                         2,922                                                                         2,834                                                                         2,728                                                                         2,644                                                                         2,716                                                                         2,665                                                                         2,509                                                                         2,595                                                                         2,686                                                                         2,738                                                                         2,757
    EBITDA margin                                                                                                    32.3 %                                                                        32.0 %                                                                        32.0 %                                                                        32.3 %                                                                        33.8 %                                                                        29.1 %                                                                        33.0 %                                                                        33.3 %                                                                        35.1 %                                                                        32.8 %                                                                        28.0 %                                                                        33.0 %
    Adjusted EBITDA margin                                                                                           32.9 %                                                                        32.6 %                                                                        32.5 %                                                                        32.5 %                                                                        33.8 %                                                                        32.8 %                                                                        33.0 %                                                                        33.3 %                                                                        35.1 %                                                                        33.7 %                                                                        33.4 %                                                                        33.0 %

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180125005295r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180125005295/en/

SOURCE: Praxair, Inc.

Praxair Media 
Lisa Esneault, 203-837-2448 
lisa_esneault@praxair.com 
or 
Praxair Investors 
Juan Pelaez, 203-837-2213 
juan_pelaez@praxair.com


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2018 StockSelector.com. All rights reserved.