10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to

PRAXAIR, INC.

(Exact name of registrant as specified in its charter)

DELAWARE

(State or other jurisdiction of incorporation)

1-11037	06-1249050
(Commission File Number)	(IRS Employer Identification No.)
10 Riverview Drive, DANBURY, CT	06810-6268
(Address of principal executive offices)	(Zip Code)

(203) 837-2000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class: Registered on:

Common Stock ($0.01 par value) New York Stock Exchange

1.50% Euro notes due 2020 New York Stock Exchange

1.20% Euro notes due 2024 New York Stock Exchange

1.625% Euro notes due 2025 New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YesýNo¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YesýNo¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	ý	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨
		Emerging growth company	¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes¨Noý

At September 30, 2018, 287,856,237 shares of common stock ($0.01 par value) of the Registrant were outstanding.

INTRODUCTORY NOTE

On October 31, 2018, Praxair, Inc. (“Praxair” or the “Company”) and Linde Aktiengesellschaft, a stock corporation incorporated under the laws of Germany (“Linde AG”), combined under Linde plc, a public limited company incorporated under the laws of Ireland (“Linde plc”), as contemplated by the business combination agreement, dated June 1, 2017, as amended on August 10, 2017 (the “Business Combination Agreement”), by and among the Company, Linde AG, Linde plc, Zamalight Holdco LLC and Zamalight Subco, Inc. Pursuant to the Business Combination Agreement, (i) Praxair became an indirect wholly-owned subsidiary of Linde plc through the merger of Zamalight Subco, Inc., an indirect wholly-owned Delaware subsidiary of Linde plc with and into Praxair, and (ii) Linde AG became an indirect subsidiary of Linde plc through an exchange offer by Linde plc for each issued and outstanding bearer share of Linde AG. On October 31, 2018, Linde plc filed a Current Report on Form 8-K with the Securities and Exchange Commission (“SEC”) that established Linde plc as the successor issuer to Praxair under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

This Quarterly Report on Form 10-Q relates to the Company's quarter ended September 30, 2018, which was prior to the completion of the Business Combination.

INDEX
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Income - Praxair, Inc. and Subsidiaries Quarters Ended September 30, 2018 and 2017 (Unaudited)	3
	Consolidated Statements of Income - Praxair, Inc. and Subsidiaries Nine Months Ended September 30, 2018 and 2017 (Unaudited)	4
	Consolidated Statements of Comprehensive Income - Praxair, Inc. and Subsidiaries Quarters Ended September 30, 2018 and 2017 (Unaudited)	5
	Consolidated Statements of Comprehensive Income - Praxair, Inc. and Subsidiaries Nine Months Ended September 30, 2018 and 2017 (Unaudited)	6
	Condensed Consolidated Balance Sheets - Praxair, Inc. and Subsidiaries September 30, 2018 and December 31, 2017 (Unaudited)	7
	Condensed Consolidated Statements of Cash Flows - Praxair, Inc. and Subsidiaries Nine Months Ended September 30, 2018 and 2017 (Unaudited)	8
	Notes to Condensed Consolidated Financial Statements - Praxair, Inc. and Subsidiaries (Unaudited)	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	52
Item 4.	Controls and Procedures	52
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	53
Item 1A.	Risk Factors	53
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 3.	Defaults Upon Senior Securities	53
Item 4.	Mine Safety Disclosures	53
Item 5.	Other Information	53
Item 6.	Exhibits	54
Signature		55

PRAXAIR, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Millions of dollars, except per share data)

(UNAUDITED)

	Quarter Ended September 30,
	2018			2017
SALES	$	3,024		$	2,922
Cost of sales, exclusive of depreciation and amortization	1,714			1,652
Selling, general and administrative	294			300
Depreciation and amortization	306			298
Research and development	23			23
Transaction costs and other charges	31			14
Other income (expense) - net	13			(3		)
OPERATING PROFIT	669			632
Interest expense - net	40			41
Net pension and OPEB cost (benefit), excluding service cost	6			6
INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS	623			585
Income taxes	156			162
INCOME BEFORE EQUITY INVESTMENTS	467			423
Income from equity investments	13			12
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)	480			435
Less: noncontrolling interests	(19		)	(16		)
NET INCOME - PRAXAIR, INC.	$	461		$	419
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
Basic earnings per share	$	1.60		$	1.46
Diluted earnings per share	$	1.58		$	1.45
WEIGHTED AVERAGE SHARES OUTSTANDING (000’s):
Basic shares outstanding	288,093			286,467
Diluted shares outstanding	291,513			289,216

The accompanying notes are an integral part of these financial statements.

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PRAXAIR, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Millions of dollars, except per share data)

(UNAUDITED)

	Nine months ended September 30,
	2018			2017
SALES	$	9,084		$	8,484
Cost of sales, exclusive of depreciation and amortization	5,114			4,800
Selling, general and administrative	911			895
Depreciation and amortization	928			877
Research and development	71			69
Transaction costs and other charges	74			35
Other income (expense) - net	25			(3		)
OPERATING PROFIT	2,011			1,805
Interest expense - net	130			120
Net pension and OPEB cost (benefit), excluding service cost	10			(7		)
INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS	1,871			1,692
Income taxes	462			468
INCOME BEFORE EQUITY INVESTMENTS	1,409			1,224
Income from equity investments	42			35
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)	1,451			1,259
Less: noncontrolling interests	(48		)	(45		)
NET INCOME - PRAXAIR, INC.	$	1,403		$	1,214
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
Basic earnings per share	$	4.87		$	4.24
Diluted earnings per share	$	4.82		$	4.21
WEIGHTED AVERAGE SHARES OUTSTANDING (000’s):
Basic shares outstanding	287,800			286,022
Diluted shares outstanding	291,275			288,524

The accompanying notes are an integral part of these financial statements.

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PRAXAIR, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Millions of dollars)

(UNAUDITED)

	Quarter Ended September 30,
	2018			2017
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)	$	480		$	435
OTHER COMPREHENSIVE INCOME (LOSS)
Translation adjustments:
Foreign currency translation adjustments	(89		)	204
Income taxes	2			19
Translation adjustments	(87		)	223
Funded status - retirement obligations (Note 11):
Retirement program remeasurements	3			(9		)
Reclassifications to net income	22			19
Income taxes	(5		)	(4		)
Funded status - retirement obligations	20			6
Derivative instruments (Note 6):
Current quarter unrealized gain (loss)	—			—
Reclassifications to net income	—			—
Income taxes	—			—
Derivative instruments	—			—
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	(67		)	229
COMPREHENSIVE INCOME (LOSS) (INCLUDING NONCONTROLLING INTERESTS)	413			664
Less: noncontrolling interests	(12		)	(26		)
COMPREHENSIVE INCOME (LOSS) - PRAXAIR, INC.	$	401		$	638

The accompanying notes are an integral part of these financial statements.

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PRAXAIR, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Millions of dollars)

(UNAUDITED)

	Nine months ended September 30,
	2018			2017
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)	$	1,451		$	1,259
OTHER COMPREHENSIVE INCOME (LOSS)
Translation adjustments:
Foreign currency translation adjustments	(623		)	520
Income taxes	8			77
Translation adjustments	(615		)	597
Funded status - retirement obligations (Note 11):
Retirement program remeasurements	(5		)	(29		)
Reclassifications to net income	56			39
Income taxes	(11		)	(4		)
Funded status - retirement obligations	40			6
Derivative instruments (Note 6):
Current period unrealized gain (loss)	—			—
Reclassifications to net income	—			—
Income taxes	—			—
Derivative instruments	—			—
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	(575		)	603
COMPREHENSIVE INCOME (LOSS) (INCLUDING NONCONTROLLING INTERESTS)	876			1,862
Less: noncontrolling interests	(31		)	(73		)
COMPREHENSIVE INCOME (LOSS) - PRAXAIR, INC.	$	845		$	1,789

The accompanying notes are an integral part of these financial statements.

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PRAXAIR, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Millions of dollars)

(UNAUDITED)

	September 30, 2018			December 31, 2017
ASSETS
Cash and cash equivalents	$	600		$	617
Accounts receivable - net	1,852			1,804
Inventories	622			614
Prepaid and other current assets	231			250
TOTAL CURRENT ASSETS	3,305			3,285
Property, plant and equipment (less accumulated depreciation of $13,987 in 2018 and $13,819 in 2017)	11,725			12,057
Goodwill	3,201			3,233
Other intangible assets - net	513			553
Other long-term assets	1,235			1,308
TOTAL ASSETS	$	19,979		$	20,436
LIABILITIES AND EQUITY
Accounts payable	$	978		$	972
Short-term debt	115			238
Current portion of long-term debt	1,582			979
Other current liabilities	1,185			1,118
TOTAL CURRENT LIABILITIES	3,860			3,307
Long-term debt	6,615			7,783
Other long-term liabilities	2,754			2,824
TOTAL LIABILITIES	13,229			13,914
Commitments and contingencies (Note 12)
Redeemable noncontrolling interests (Note 14)	15			11
Praxair, Inc. Shareholders’ Equity:
Common stock $0.01 par value, authorized - 800,000,000 shares, issued 2018 and 2017 - 383,230,625 shares	4			4
Additional paid-in capital	4,088			4,084
Retained earnings	13,913			13,224
Accumulated other comprehensive income (loss) (Note 14)	(4,656		)	(4,098		)
Less: Treasury stock, at cost (2018 - 95,374,388 shares and 2017 - 96,453,634 shares)	(7,117		)	(7,196		)
Total Praxair, Inc. Shareholders’ Equity	6,232			6,018
Noncontrolling interests	503			493
TOTAL EQUITY	6,735			6,511
TOTAL LIABILITIES AND EQUITY	$	19,979		$	20,436

The accompanying notes are an integral part of these financial statements.

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PRAXAIR, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Millions of dollars)

(UNAUDITED)

	Nine months ended September 30,
	2018			2017
OPERATIONS
Net income - Praxair, Inc.	$	1,403		$	1,214
Noncontrolling interests	48			45
Net income (including noncontrolling interests)	1,451			1,259
Adjustments to reconcile net income to net cash provided by operating activities:
Transaction costs and other charges, net of payments	35			27
Depreciation and amortization	928			877
Deferred income taxes	(6		)	22
Share-based compensation	40			44
Working capital:
Accounts receivable	(121		)	(83		)
Inventory	(29		)	(11		)
Prepaid and other current assets	3			(64		)
Payables and accruals	101			11
Pension contributions	(17		)	(14		)
Long-term assets, liabilities and other	(36		)	137
Net cash provided by operating activities	2,349			2,205
INVESTING
Capital expenditures	(1,056		)	(972		)
Acquisitions, net of cash acquired	(6		)	(18		)
Divestitures and asset sales	77			22
Net cash used for investing activities	(985		)	(968		)
FINANCING
Short-term debt borrowings (repayments) - net	(122		)	(353		)
Long-term debt borrowings	2			11
Long-term debt repayments	(505		)	(160		)
Issuances of common stock	70			90
Purchases of common stock	(2		)	(11		)
Cash dividends - Praxair, Inc. shareholders	(712		)	(675		)
Noncontrolling interest transactions and other	(33		)	(85		)
Net cash provided by (used for) financing activities	(1,302		)	(1,183		)
Effect of exchange rate changes on cash and cash equivalents	(79		)	29
Change in cash and cash equivalents	(17		)	83
Cash and cash equivalents, beginning-of-period	617			524
Cash and cash equivalents, end-of-period	$	600		$	607

The accompanying notes are an integral part of these financial statements.

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INDEX TO NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Notes to Condensed Consolidated Financial Statements - Praxair, Inc. and Subsidiaries (Unaudited)

Note 1. Summary of Significant Accounting Policies	10
Note 2. Transaction Costs and Other Charges	11
Note 3. Acquisitions	11
Note 4. Supplemental Information	12
Note 5. Debt	13
Note 6. Financial Instruments	13
Note 7. Fair Value Disclosures	17
Note 8. Earnings Per Share – Praxair, Inc. Shareholders	17
Note 9. Goodwill and Other Intangible Assets	18
Note 10. Share-Based Compensation	20
Note 11. Retirement Programs	22
Note 12. Commitments and Contingencies	23
Note 13. Segments	24
Note 14. Equity and Noncontrolling Interests	25
Note 15. Revenue Recognition	27
Note 16. Income Taxes	29
Note 17. Business Combination with Linde AG	30

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PRAXAIR, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. Summary of Significant Accounting Policies

Presentation of Condensed Consolidated Financial Statements- In the opinion of Praxair, Inc. (Praxair) management, the accompanying condensed consolidated financial statements include all adjustments necessary for a fair presentation of the results for the interim periods presented and such adjustments are of a normal recurring nature. The accompanying condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements of Praxair, Inc. and subsidiaries in Praxair’s 2017 Annual Report on Form 10-K. There have been no material changes to the company’s significant accounting policies during 2018.

Accounting Standards Implemented in 2018

• Revenue Recognition – In May 2014, the FASB issued updated guidance on the reporting and disclosure of revenue. Effective January 1, 2018, Praxair has adopted this guidance using the modified retrospective transition method. No material differences in revenue recognition accounting were identified under the new guidance compared with the Company's historic revenue recognition accounting (see Note 15).

• Classification of Certain Cash Receipts and Cash Payments – In August 2016, the FASB issued updated guidance on the classification of certain cash receipts and cash payments within the statement of cash flows. The update provides accounting guidance for specific cash flow issues with the objective of reducing diversity in practice. The adoption of this guidance did not have a material impact on the financial statements.

• Intra-Entity Asset Transfers – In October 2016, the FASB issued updated guidance for income tax accounting of intra-entity transfers of assets other than inventory. The update requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory in the period when the transfer occurs. The adoption of this guidance did not have a material impact on the financial statements.

• Pension Costs - In March 2017, the FASB issued updated guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires the service cost component be reported in the same line item or items as other compensation costs arising from services rendered by employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and not included within operating profit. This guidance was adopted in the first quarter 2018. Accordingly, non-service related components of net periodic pension and postretirement benefit costs were reclassified out of "Operating Profit" to "Net pension and OPEB cost (benefit), excluding service cost" using the practical expedient to use the amounts disclosed in the retirement benefits note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements (see Note 11).

Accounting Standards to be Implemented

• Leases – In February 2016, the FASB issued updated guidance on the accounting and financial statement presentation of leases. The new guidance requires lessees to recognize a right-of-use asset and lease liability for all leases, except those that meet certain scope exceptions, and would require expanded quantitative and qualitative disclosures. This guidance will be effective for Praxair beginning in the first quarter 2019 and requires companies to transition using a modified retrospective approach. Praxair is in the process of implementing the new guidance and will provide updates on the expected impact to Praxair in future filings, as appropriate.

• Credit Losses on Financial Instruments –In June 2016, the FASB issued an update on the measurement of credit losses. The guidance introduces a new accounting model for expected credit losses on financial instruments, including trade receivables, based on estimates of current expected credit losses. This guidance will be effective for Praxair beginning in the first quarter 2020, with early adoption permitted beginning in the first quarter 2019 and requires companies to apply the change in accounting on a prospective basis. We are currently evaluating the impact this update will have on our consolidated financial statements.

• Simplifying the Test for Goodwill Impairment – In January 2017, the FASB issued updated guidance on the measurement of goodwill. The new guidance eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The guidance will be effective for Praxair beginning in the first quarter 2020. Praxair does not expect this guidance to have a material impact.

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• Derivatives and Hedging - In August 2017, the FASB issued updated guidance on accounting for hedging activities. The new guidance changes both the designation and measurement for qualifying hedging relationships and the presentation of hedge results. This guidance will be effective for Praxair beginning in the first quarter 2019, with early adoption optional. Praxair is currently evaluating the impact this update will have on our consolidated financial statements.

• Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income – In February 2018, the FASB issued updated guidance which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This new guidance will be effective for Praxair beginning in the first quarter 2019 on a retrospective basis, with early adoption optional. Praxair is currently assessing the impact and timing of adoption.

Reclassifications – Certain prior years’ amounts have been reclassified to conform to the current year’s presentation including reclassifications on the consolidated statements of income and segment operating profit relating to the adoption of accounting guidance on the presentation of net periodic pension and postretirement benefit costs.

2. Transaction Costs and Other Charges

Transaction costs and other charges were $31 million and $74 million ($29 million and $67 million after-tax and noncontrolling interest, or $0.10 and $0.23 per diluted share) for the quarter and nine months ended September 30, 2018, respectively. Transaction costs and other charges were $14 million and $35 million ($13 million and $34 million after-tax or $0.05 and $0.12 per diluted share) for the quarter and nine months ended September 30, 2017.

On October 31, 2018, Praxair and Linde AG combined under Linde plc, as contemplated by the Business Combination Agreement (see Note 17).Praxair incurred transaction costs and other charges primarily in connection with the intended business combination totaling $21 million and $64 million for the quarter and nine months ended September 30, 2018 ($19 million and $57 million after-tax and noncontrolling interests, or $0.07 and $0.20 per diluted share), respectively. Praxair incurred transaction costs which totaled $14 million and $35 million for the quarter and nine months ended September 30, 2017 ($13 million and $34 million after-tax, or $0.05 and $0.12 per diluted share), respectively.

Effective July 1, 2018, Argentina was deemed a highly inflationary economy. As a result, the third quarter of 2018 includes a $10 million charge ($10 million after-tax, or $0.03 per diluted share) associated with the transition to hyper-inflationary accounting in Argentina.

Classification in the condensed consolidated financial statements

The costs are shown within operating profit in a separate line item on the consolidated statements of income. On the condensed consolidated statement of cash flows, the impact of these costs, net of cash payments, is shown as an adjustment to reconcile net income to net cash provided by operating activities. In Note 13 - Segments, Praxair excluded these costs from its management definition of segment operating profit; a reconciliation of segments operating profit to consolidated operating profit is shown within the segment operating profit table.

3. Acquisitions

During the nine months ended September 30, 2018 and 2017, Praxair had acquisitions totaling $6 million and $18 million, respectively, related primarily to acquisitions of packaged gas businesses in North America.

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4. Supplemental Information

Inventories

The following is a summary of Praxair’s consolidated inventories:

(Millions of dollars)	September 30, 2018		December 31, 2017
Inventories
Raw materials and supplies	$	218	$	224
Work in process	54		57
Finished goods	350		333
Total inventories	$	622	$	614

Long-term receivables

Long-term receivables are not material and are largely reserved. Such long-term receivables are included within other long-term assets in the condensed consolidated balance sheets and totaled $31 million and $54 million at September 30, 2018 and December 31, 2017, respectively. These amounts are net of reserves of $45 million and $51 million, respectively. The amounts in both periods relate primarily to government receivables in Brazil and other long-term notes receivable from customers. Collectability is reviewed regularly and uncollectible amounts are written off as appropriate.

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5. Debt

The following is a summary of Praxair’s outstanding debt at September 30, 2018 and December 31, 2017:

(Millions of dollars)	September 30, 2018			December 31, 2017
SHORT-TERM
Commercial paper and U.S. bank borrowings	$	83		$	202
Other bank borrowings (primarily international)	32			36
Total short-term debt	115			238
LONG-TERM (a)
U.S. borrowings (U.S. dollar denominated unless otherwise noted)
1.20% Notes due 2018 (b)	—			498
1.25% Notes due 2018 (b, c)	475			475
1.90% Notes due 2019	500			500
4.50% Notes due 2019	599			599
1.50% Euro-denominated notes due 2020	694			717
2.25% Notes due 2020	299			299
4.05% Notes due 2021	499			498
3.00% Notes due 2021	498			497
2.45% Notes due 2022	598			598
2.20% Notes due 2022	498			498
2.70% Notes due 2023	498			498
1.20% Euro-denominated notes due 2024	636			658
2.65% Notes due 2025	398			397
1.625% Euro-denominated notes due 2025	574			594
3.20% Notes due 2026	725			725
3.55% Notes due 2042	662			662
Other	10			12
International bank borrowings	31			33
Obligations under capital leases	3			4
	8,197			8,762
Less: current portion of long-term debt	(1,582		)	(979		)
Total long-term debt	6,615			7,783
Total debt	$	8,312		$	9,000

(a) Amounts are net of unamortized discounts, premiums and/or debt issuance costs as applicable.

(b) In March 2018, Praxair repaid $500 million of 1.20% notes that became due. On November 7, 2018, Praxair repaid $475 million of 1.25% notes that became due.

(c) September 30, 2018 and December 31, 2017 include a less than $1 million fair value decrease and a less than $1 million increase, respectively, related to hedge accounting. See Note 6 for additional information.

In June 2018, the company's $500 million 364-day revolving credit facility with a syndicate of banks expired and was not renewed.

6. Financial Instruments

In its normal operations, Praxair is exposed to market risks relating to fluctuations in interest rates, foreign currency exchange rates, energy costs and to a lesser extent precious metal prices. The objective of financial risk management at Praxair is to minimize the negative impact of such fluctuations on the company’s earnings and cash flows. To manage these risks, among other strategies, Praxair routinely enters into various derivative financial instruments (“derivatives”) including interest-rate swap and treasury rate lock agreements, currency-swap agreements, forward contracts, currency options, and commodity-swap agreements. These instruments are not entered into for trading purposes and Praxair only uses commonly traded and non-leveraged instruments.

There are three types of derivatives that the company enters into: (i) those relating to fair-value exposures, (ii) those relating to cash-flow exposures, and (iii) those relating to foreign currency net investment exposures. Fair-value exposures relate to

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recognized assets or liabilities, and firm commitments; cash-flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities, or forecasted transactions; and net investment exposures relate to the impact of foreign currency exchange rate changes on the carrying value of net assets denominated in foreign currencies.

When a derivative is executed and hedge accounting is appropriate, it is designated as either a fair-value hedge, cash-flow hedge, or a net investment hedge. Currently, Praxair designates all interest-rate and treasury-rate locks as hedges for accounting purposes; however, currency contracts are generally not designated as hedges for accounting purposes unless they are related to forecasted transactions. Whether designated as hedges for accounting purposes or not, all derivatives are linked to an appropriate underlying exposure. On an ongoing basis, the company assesses the hedge effectiveness of all derivatives designated as hedges for accounting purposes to determine if they continue to be highly effective in offsetting changes in fair values or cash flows of the underlying hedged items. If it is determined that the hedge is not highly effective, then hedge accounting will be discontinued prospectively.

Counterparties to Praxair’s derivatives are major banking institutions with credit ratings of investment grade or better and no collateral is required, and there are no significant risk concentrations. Management believes the risk of incurring losses on derivative contracts related to credit risk is remote and any losses would be immaterial.

The following table is a summary of the notional amount and fair value of derivatives outstanding at September 30, 2018 and December 31, 2017 for consolidated subsidiaries:

					Fair Value
	Notional Amounts				Assets				Liabilities
(Millions of dollars)	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
Derivatives Not Designated as Hedging Instruments:
Currency contracts:
Balance sheet items (a)	$	2,099	$	2,693	$	16	$	16	$	6	$	16
Derivatives Designated as Hedging Instruments:
Currency contracts:
Balance sheet items (a)	$	—	$	38	$	—	$	—	$	—	$	2
Forecasted purchases (a)	6		4		—		1		—		—
Interest rate contracts:
Interest rate swaps (a, b)	475		475		—		—		—		—
Total Hedges	$	481	$	517	$	—	$	1	$	—	$	2
Total Derivatives	$	2,580	$	3,210	$	16	$	17	$	6	$	18

(a) Assets are recorded in prepaid and other current assets, and liabilities are recorded in other current liabilities.

(b) On November 7, 2018, Praxair repaid $475 million of 1.25% notes that became due and the associated interest rate swap was settled.

Currency Contracts

Balance Sheet Items

Foreign currency contracts related to balance sheet items consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on recorded balance sheet assets and liabilities denominated in currencies other than the functional currency of the related operating unit. Certain forward currency contracts are entered into to protect underlying monetary assets and liabilities denominated in foreign currencies from foreign exchange risk and are not designated as hedging instruments. The fair value adjustments on these contracts are offset by the fair value adjustments recorded on the underlying monetary assets and liabilities. Praxair also enters into forward currency contracts, which are designated as hedging instruments, to limit the cash flow exposure on certain foreign-currency denominated intercompany loans. The fair value adjustments on these contracts are recorded to AOCI, with the effective portion immediately reclassified to earnings to offset the fair value adjustments on the underlying debt instrument.

Forecasted Purchases

Foreign currency contracts related to forecasted purchases consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on forecasted purchases of capital-related equipment and services denominated

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in currencies other than the functional currency of the related operating units. These forward contracts were designated and accounted for as cash flow hedges.

Net Investment Hedge

As of September 30, 2018, the Company has €1.65 billion ($1.92 billion) of Euro-denominated notes, of which €1.63 billion ($1.89 billion) is designated as a hedge of the net investment position in its European operations.These Euro-denominated debt instruments reduce the company's exposure to changes in the currency exchange rate on investments in foreign subsidiaries with Euro functional currencies. Since hedge inception, exchange rate movements have reduced long-term debt by $162 million (long-term debt decreased by $65 million during the first nine months of 2018), with the offsetting gain shown within the cumulative translation component of AOCI in the condensed consolidated balance sheets and the consolidated statements of comprehensive income.

Interest Rate Contracts

Outstanding Interest Rate Swaps

At September 30, 2018, Praxair had one outstanding interest rate swap agreement with a $475 million notional amount related to the $475 million1.25% notes that matured on November 7, 2018. The interest rate swap effectively converts fixed-rate interest to variable-rate interest and is designated as a fair value hedge. Fair value adjustments are recognized in earnings along with an equally offsetting charge / benefit to earnings for the changes in the fair value of the underlying debt instrument. At September 30, 2018, less than $1 million was recognized as a decrease in the fair value of these notes (increase in the fair value of less than $1 million at December 31, 2017).

Terminated Treasury Rate Locks

The following table summarizes the unrecognized gains (losses) related to terminated treasury rate lock contracts:

	Year Terminated	Original Gain / (Loss)			Unrecognized Gain / (Loss) (a)
(Millions of dollars)					September 30, 2018			December 31, 2017
Treasury Rate Locks
Underlying debt instrument:
$500 million 2.20% fixed-rate notes that mature in 2022 (b)	2012	$	(2	)	$	—		$	(1	)
$500 million 3.00% fixed-rate notes that mature in 2021 (b)	2011	(11		)	(3		)	(4		)
$600 million 4.50% fixed-rate notes that mature in 2019 (b)	2009	16			1			3
Total - pre-tax					$	(2	)	$	(2	)
Less: income taxes					1			1
After- tax amounts					$	(1	)	$	(1	)

(a) The unrecognized gains / (losses) for the treasury rate locks are shown in accumulated other comprehensive income (“AOCI”) and are being recognized on a straight line basis to interest expense – net over the term of the underlying debt agreements. Refer to the table below summarizing the impact on the company’s consolidated statements of income and AOCI for current period gain (loss) recognition.

(b) The notional amount of the treasury rate lock contracts are equal to the underlying debt instrument with the exception of the treasury rate lock contract entered into to hedge the $600 million4.50% fixed-rate notes that mature in 2019. The notional amount of this contract was $500 million.

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The following table summarizes the impact of the company’s derivatives on the consolidated statements of income:

	Amount of Pre-Tax Gain (Loss) Recognized in Earnings *
	Quarter Ended September 30,					Nine Months Ended September 30,
(Millions of dollars)	2018		2017			2018			2017
Derivatives Not Designated as Hedging Instruments
Currency contracts:
Balance sheet items
Debt-related	$	17	$	19		$	(15	)	$	128
Other balance sheet items	3		(1		)	4			1
Total	$	20	$	18		$	(11	)	$	129

* The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities. Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt items are recorded in the consolidated statements of income as interest expense-net. Other balance sheet items and anticipated net income gains (losses) are recorded in the consolidated statements of income as other income (expenses)-net.

The following table summarizes the impacts of the company's derivatives designated as hedging instruments that impact AOCI:

Derivatives Designated as Hedging Instruments **

	Quarter Ended
	Amount of Gain  (Loss) Recognized in AOCI					Amount of Gain  (Loss) Reclassified from AOCI to the Consolidated Statement of Income
(Millions of dollars)	September 30, 2018		September 30, 2017			September 30, 2018		September 30, 2017
Currency contracts:
Balance sheet items	$	—	$	(1	)	$	—	$	—
Forecasted purchases	—		1			—		—
Interest rate contracts:
Treasury rate lock contracts	—		—			—		—
Total - pre tax	$	—	$	—		$	—	$	—
Less: income taxes	—		—			—		—
Total - Net of Taxes	$	—	$	—		$	—	$	—

	Nine Months Ended
	Amount of Gain  (Loss) Recognized in AOCI					Amount of Gain  (Loss) Reclassified from AOCI to the Consolidated Statement of Income
(Millions of dollars)	September 30, 2018		September 30, 2017			September 30, 2018		September 30, 2017
Currency contracts:
Balance sheet items	$	—	$	(1	)	$	—	$	—
Forecasted purchases	—		1			—		—
Interest rate contracts:
Treasury rate lock contracts	—		—			—		—
Total - pre tax	$	—	$	—		$	—	$	—
Less: income taxes	—		—			—		—
Total - Net of Taxes	$	—	$	—		$	—	$	—

**The gains (losses) on net investment hedges are recorded as a component of AOCI within foreign currency translation adjustments in the condensed consolidated balance sheets and the condensed consolidated statements of comprehensive income. The gains (losses) on treasury rate locks are recorded as a

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component of AOCI within derivative instruments in the condensed consolidated balance sheets and the condensed consolidated statements of comprehensive income. There was no ineffectiveness for these instruments during 2018 or 2017. The gains (losses) on net investment hedges are reclassified to earnings only when the related currency translation adjustments are required to be reclassified, usually upon sale or liquidation of the investment. The gains (losses) for interest rate contracts are reclassified to earnings as interest expense –net on a straight-line basis over the remaining maturity of the underlying debt. Net losses of $1 million are expected to be reclassified to earnings during the next twelve months.

7. Fair Value Disclosures

The fair value hierarchy prioritizes the input to valuation techniques used to measure fair value into three broad levels as follows:

Level 1 – quoted prices in active markets for identical assets or liabilities

Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes assets and liabilities measured at fair value on a recurring basis:

	Fair Value Measurements Using
	Level 1		Level 2				Level 3
(Millions of dollars)	September 30, 2018	December 31, 2017	September 30, 2018		December 31, 2017		September 30, 2018	December 31, 2017
Assets
Derivatives	—	—	$	16	$	17	—	—
Liabilities
Derivatives	—	—	$	6	$	18	—	—

The fair values of the derivative assets and liabilities are based on market prices obtained from independent brokers or determined using quantitative models that use as their basis readily observable market parameters that are actively quoted and can be validated through external sources, including third-party pricing services, brokers and market transactions. Investments are marketable securities traded on an exchange.

The fair values of cash and cash equivalents, short-term debt, accounts receivable-net, and accounts payable approximate carrying amounts because of the short maturities of these instruments. The fair value of long-term debt is estimated based on the quoted market prices for similar issues, which is deemed a level 2 measurement. At September 30, 2018, the estimated fair value of Praxair’s long-term debt portfolio was $8,164 million versus a carrying value of $8,197 million. At December 31, 2017, the estimated fair value of Praxair’s long-term debt portfolio was $8,969 million versus a carrying value of $8,762 million. Differences from carrying amounts are attributable to interest-rate changes subsequent to when the debt was issued.

8. Earnings Per Share – Praxair, Inc. Shareholders

Basic earnings per share is computed by dividing Net income – Praxair, Inc. for the period by the weighted average number of Praxair common shares outstanding. Diluted earnings per share is computed by dividing Net income – Praxair, Inc. for the period by the weighted average number of Praxair common shares outstanding and dilutive common stock equivalents, as follows:

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	Quarter Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Numerator (Millions of dollars)
Net income - Praxair, Inc.	$	461	$	419	$	1,403	$	1,214
Denominator (Thousands of shares)
Weighted average shares outstanding	287,752		286,103		287,465		285,654
Shares earned and issuable under compensation plans	341		364		335		368
Weighted average shares used in basic earnings per share	288,093		286,467		287,800		286,022
Effect of dilutive securities
Stock options and awards	3,420		2,749		3,475		2,502
Weighted average shares used in diluted earnings per share	291,513		289,216		291,275		288,524
Basic Earnings Per Share	$	1.60	$	1.46	$	4.87	$	4.24
Diluted Earnings Per Share	$	1.58	$	1.45	$	4.82	$	4.21

There were no antidilutive shares for the quarter and nine months ended September 30, 2018. There were no antidilutive shares for the quarter ended September 30, 2017. Stock options of 2,439,499 for nine months ended September 30, 2017 were antidilutive and therefore excluded in the computation of diluted earnings per share.

9. Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill for the nine months ended September 30, 2018 were as follows:

(Millions of dollars)	North America		South America			Europe			Asia			Surface Technologies			Total
Balance, December 31, 2017	$	2,202	$	129		$	698		$	61		$	143		$	3,233
Acquisitions	3		—			—			—			—			3
Purchase adjustments & other	12		—			—			—			—			12
Foreign currency translation	—		(27		)	(16		)	(1		)	(3		)	(47		)
Balance, September 30, 2018	$	2,217	$	102		$	682		$	60		$	140		$	3,201

Praxair has performed its goodwill impairment tests annually during the second quarter of each year, and historically has determined that the fair value of each of its reporting units was substantially in excess of its carrying value. For the 2018 test completed last quarter, Praxair applied the FASB's accounting guidance which allows the Company to first assess qualitative factors to determine the extent of additional quantitative analysis, if any, that may be required to test goodwill for impairment (refer to Note 1 to the consolidated financial statements of Praxair's 2017 Annual Report on Form 10-K). Based on the qualitative assessments performed in the second quarter of 2018, Praxair concluded that it was more likely than not that the fair value of each reporting unit substantially exceeded its carrying value and therefore, further quantitative analysis was not required. As a result, no impairment was recorded. There were no indicators of impairment through September 30, 2018.

Changes in the carrying amounts of other intangibles for the nine months ended September 30, 2018 were as follows:

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(Millions of dollars)	Customer & License/Use Agreements			Non-compete Agreements			Patents & Other			Total
Cost:
Balance, December 31, 2017	$	772		$	28		$	52		$	852
Additions	1			1			—			2
Foreign currency translation	(9		)	—			(1		)	(10		)
Other*	(20		)	(5		)	—			(25		)
Balance, September 30, 2018	$	744		$	24		$	51		$	819
Less: Accumulated amortization
Balance, December 31, 2017	$	(260	)	$	(18	)	$	(21	)	$	(299	)
Amortization expense	(28		)	(3		)	(3		)	(34		)
Foreign currency translation	3			—			—			3
Other*	19			5			—			24
Balance, September 30, 2018	$	(266	)	$	(16	)	$	(24	)	$	(306	)
Net balance at September 30, 2018	$	478		$	8		$	27		$	513

* Other primarily relates to the write-off of fully amortized assets.

There are no expected residual values related to these intangible assets. The remaining weighted-average amortization period for intangible assets is approximately 16 years.

Total estimated annual amortization expense is as follows:

(Millions of dollars)
Remaining 2018	$	11
2019	43
2020	41
2021	39
2022	38
Thereafter	341
	$	513

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10. Share-Based Compensation

Share-based compensation expense of $19 million and $16 million was recognized during the quarters ended September 30, 2018 and 2017, respectively. Share-based compensation of $40 million and $44 million was recognized during the nine months ended September 30, 2018 and 2017, respectively. The expense was recorded primarily in selling, general and administrative expenses. There was no share-based compensation cost that was capitalized. For further details regarding Praxair’s share-based compensation arrangements and prior-year grants, refer to Note 15 to the consolidated financial statements of Praxair’s 2017 Annual Report on Form 10-K.

Stock Options

The weighted-average fair value of options granted during the nine months ended September 30, 2018 was $19.29 ($12.40 in 2017) based on the Black-Scholes Options-Pricing model. The increase in grant date fair value year-over-year was primarily attributable to an increase in the company's stock price.

The following weighted-average assumptions were used to value the grants in 2018 and 2017:

	Nine months ended September 30,
	2018		2017
Dividend yield	2.1	%	2.7	%
Volatility	14.4	%	14.0	%
Risk-free interest rate	2.67	%	2.13	%
Expected term years	5		6

The following table summarizes option activity under the plans as of September 30, 2018 and changes during the nine-month period then ended (averages are calculated on a weighted basis; life in years; intrinsic value expressed in millions):

	Number of Options  (000’s)		Average Exercise Price		Average Remaining Life	Aggregate Intrinsic Value
Outstanding at January 1, 2018	10,787		$	108.70
Granted	1,625		154.00
Exercised	(1,502	)	94.50
Cancelled or Expired	(63	)	128.91
Outstanding at September 30, 2018	10,847		117.34		6.2	$	471
Exercisable at September 30, 2018	7,143		$	110.46	5.0	$	359

The aggregate intrinsic value represents the difference between the company’s closing stock price of $160.73 as of September 30, 2018 and the exercise price multiplied by the number of in the money options outstanding as of that date. The total intrinsic value of stock options exercised during the quarter and nine months ended September 30, 2018 was $19 million and $96 million, respectively ($17 million and $80 million during the same periods in 2017, respectively).

Cash received from option exercises under all share-based payment arrangements for the quarter and nine months ended September 30, 2018 was $21 million and $59 million, respectively ($18 million and $81 million for the same periods in 2017). The cash tax benefit realized from share-based compensation totaled $9 million and $28 million for the quarter and nine months ended September 30, 2018, respectively ($5 million and $31 million for the same periods in 2017, respectively).

As of September 30, 2018, $26 million of unrecognized compensation cost related to non-vested stock options is expected to be recognized over a weighted-average period of approximately 1 year.

Performance-Based and Restricted Stock Awards

During the nine months endedSeptember 30, 2018, the company granted restricted stock units to employees of 269,433 shares. There were no performance-based stock awards granted to employees during the nine months endedSeptember 30, 2018 as restricted stock units were granted in place of performance-based stock awards. Compensation expense related to the restricted stock units is recognized over the vesting period, which is up to three years, based on the grant date fair value.

As of September 30, 2018 the company had performance-based stock awards outstanding, tied to either return on capital ("ROC") performance or relative total shareholder return ("TSR") performance versus that of the S&P 500. The actual number of shares issued in settlement of a vested award can range from zero to 200 percent of the target number of shares granted based upon the company’s attainment of specified performance targets at the end of a three-year period. Compensation expense

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related to these awards is recognized over the three-year performance period based on the fair value of the closing market price of the company’s common stock on the date of the grant and the estimated performance that will be achieved. Compensation expense for ROC awards will be adjusted during the three-year performance period based upon the estimated performance levels that will be achieved. TSR awards are measured at their grant date fair value and not subsequently re-measured.

The weighted-average fair value of restricted stock units granted during the nine months endedSeptember 30, 2018 was $144.79 ($111.70 for the same period in 2017). These fair values are based on the closing market price of Praxair’s common stock on the grant date adjusted for dividends that will not be paid during the vesting period. The weighted-average fair value of ROC performance-based stock awards granted during the nine months endedSeptember 30, 2017 was $109.68.

The weighted-average fair value of performance-based stock tied to relative TSR performance granted during nine months endedSeptember 30, 2017 was $124.12 and was estimated using a Monte Carlo simulation performed as of the grant date.

The following table summarizes non-vested performance-based and restricted stock award activity as of September 30, 2018 and changes during the nine months then ended (shares based on target amounts, averages are calculated on a weighted basis):

	Performance-Based				Restricted Stock
	Number  of Shares (000’s)		Average Grant  Date Fair Value		Number  of Shares (000’s)		Average Grant  Date Fair Value
Non-vested at January 1, 2018	665		$	113.40	264		$	107.56
Granted	—		—		269		144.79
Vested	(78	)	119.98		(89	)	116.22
Cancelled and Forfeited	(151	)	110.32		(17	)	100.23
Non-vested at September 30, 2018	436		$	110.02	427		$	129.52

There are approximately 6 thousand performance-based shares and 3 thousand restricted stock shares that are non-vested at September 30, 2018 which will be settled in cash due to foreign regulatory limitations. The liability related to these grants reflects the current estimate of performance that will be achieved and the current common stock price.

As of September 30, 2018, based on current estimates of future performance, $9 million of unrecognized compensation cost related to performance-based awards is expected to be recognized through the first quarter of 2020 and $30 million of unrecognized compensation cost related to the restricted stock awards is expected to be recognized primarily through the first quarter of 2021.

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11. Retirement Programs

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

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

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

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

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

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12. Commitments and Contingencies

Contingent Liabilities

Praxair is subject to various lawsuits and government investigations that arise from time to time in the ordinary course of business. These actions are based upon alleged environmental, tax, antitrust and personal injury claims, among others. Praxair has strong defenses in these cases and intends to defend itself vigorously. It is possible that the company may incur losses in connection with some of these actions in excess of accrued liabilities. Management does not anticipate that in the aggregate such losses would have a material adverse effect on the company’s consolidated financial position or liquidity; however, it is possible that the final outcomes could have a significant impact on the company’s reported results of operations in any given period (see Note 17 to the consolidated financial statements of Praxair’s 2017 Annual Report on Form 10-K).

Significant matters are:

• During May 2009, the Brazilian government published Law 11941/2009 instituting a new voluntary amnesty program (“Refis Program”) which allowed Brazilian companies to settle certain federal tax disputes at reduced amounts. During the 2009 third quarter, Praxair decided that it was economically beneficial to settle many of its outstanding federal tax disputes and such disputes were enrolled in the Refis Program, subject to final calculation and review by the Brazilian federal government. The Company recorded estimated liabilities based on the terms of the Refis Program. Since 2009, Praxair has been unable to reach final agreement on the calculations and initiated litigation against the government in an attempt to resolve certain items. Open issues relate to the following matters: (i) application of cash deposits and net operating loss carryforwards to satisfy obligations, and (ii) the amount of tax reductions available under the Refis Program. It is difficult to estimate the timing of resolution of legal matters in Brazil.

• At September 30, 2018 the most significant non-income and income tax claims in Brazil, after enrollment in the Refis Program, relate to state VAT tax matters and a federal income tax matter where the taxing authorities are challenging the tax rate that should be applied to income generated by a subsidiary company. The total estimated exposure relating to such claims, including interest and penalties, as appropriate, is approximately $205 million. Praxair has not recorded any liabilities related to such claims based on management judgments, after considering judgments and opinions of outside counsel. Because litigation in Brazil historically takes many years to resolve, it is very difficult to estimate the timing of resolution of these matters; however, it is possible that certain of these matters may be resolved within the near term. The company is vigorously defending against the proceedings.

• On September 1, 2010, CADE (Brazilian Administrative Council for Economic Defense) announced alleged anticompetitive activity on the part of five industrial gas companies in Brazil and imposed fines on all five companies. Originally, CADE imposed a civil fine of R$2.2 billion Brazilian reais (US$550 million) against White Martins, the Brazil-based subsidiary of Praxair, Inc. In response to a motion for clarification, the fine was reduced to R$1.7 billion Brazilian reais (US$425 million) due to a calculation error made by CADE. The amount of the fine is subject to indexation using SELIC. On September 2, 2010, Praxair issued a press release and filed a report on Form 8-K rejecting all claims and stating that the fine represents a gross and arbitrary disregard of Brazilian law.

On October 19, 2010, White Martins filed an annulment petition (“appeal”) with the Federal Court in Brasilia seeking to have the fine against White Martins entirely overturned. In order to suspend payment of the fine pending the completion of the appeal process, Brazilian law required that the company tender a form of guarantee in the amount of the fine as security. Initially, 50% of the guarantee was satisfied by letters of credit with a financial institution and 50% by equity of a Brazilian subsidiary. On April 15, 2016, the Ninth Federal Court in Brasilia allowed White Martins to withdraw and cancel the letters of credit. Accordingly, the guarantee is currently satisfied solely by equity of a Brazilian subsidiary.

On September 14, 2015, the Ninth Federal Court of Brasilia overturned the fine against White Martins and declared the original CADE administrative proceeding to be null and void. On June 30, 2016, CADE filed an appeal against this decision with the Federal Circuit Court in Brasilia.

Praxair strongly believes that the allegations are without merit and that the fine will be entirely overturned during the appeal process. The company further believes that it has strong defenses and will vigorously defend against the allegations and related fine up to such levels of the Federal Courts in Brazil as may be necessary. Because appeals in Brazil historically take many years to resolve, it is very difficult to estimate when the appeal will be finally decided. Based on management judgments, after considering judgments and opinions of outside counsel, no reserve has been recorded for this proceeding as management does not believe that a loss is probable.

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13. Segments

For a description of Praxair’s operating segments, refer to Note 18 to the consolidated financial statements of Praxair’s 2017 Annual Report on Form 10-K.

Sales and operating profit by segment for the quarters and nine months ended September 30, 2018 and 2017 are shown below. 2017 segment operating profit has been reclassified to conform with current year presentation as a result of the adoption of new accounting guidance on the presentation of net periodic pension and postretirement benefit costs (see Note 1).

	Quarter Ended September 30,				Nine Months Ended September 30,
(Millions of dollars)	2018		2017		2018		2017
SALES(a)
North America	$	1,613	$	1,518	$	4,770	$	4,481
Europe	425		407		1,297		1,146
South America	329		389		1,043		1,131
Asia	487		451		1,465		1,268
Surface Technologies	170		157		509		458
Total sales	$	3,024	$	2,922	$	9,084	$	8,484

	Quarter Ended September 30,						Nine Months Ended September 30,
(Millions of dollars)	2018			2017			2018			2017
OPERATING PROFIT
North America	$	420		$	386		$	1,258		$	1,121
Europe	81			79			248			220
South America	57			66			167			178
Asia	110			88			321			243
Surface Technologies	32			27			91			78
Segment operating profit	700			646			2,085			1,840
Transaction costs and other charges (Note 2)	(31		)	(14		)	(74		)	(35		)
Total operating profit	$	669		$	632		$	2,011		$	1,805

(a) Sales reflect external sales only. Intersegment sales, primarily from North America to other segments, were not material.

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14. Equity and Redeemable Noncontrolling Interests

Equity

A summary of the changes in total equity for the quarters and nine months ended September 30, 2018 and 2017 is provided below:

	Quarter Ended September 30,
(Millions of dollars)	2018									2017
Activity	Praxair, Inc. Shareholders’ Equity			Noncontrolling Interests			Total Equity			Praxair, Inc. Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, beginning of period	$	6,027		$	501		$	6,528		$	5,807		$	453		$	6,260
Net income (a)	461			19			480			419			16			435
Other comprehensive income (loss)	(60		)	(7		)	(67		)	219			10			229
Noncontrolling interests:
Additions (reductions)	—			—			—			—			2			2
Dividends and other capital changes	—			(10		)	(10		)	—			(6		)	(6		)
Redemption value adjustments	(1		)	—			(1		)	—			—			—
Dividends to Praxair, Inc. common stock holders ($0.825 per share in 2018 and $0.7875 per share in 2017)	(238		)	—			(238		)	(225		)	—			(225		)
Issuances of common stock:
For the dividend reinvestment and stock purchase plan	2			—			2			2			—			2
For employee savings and incentive plans	23			—			23			18			—			18
Purchases of common stock	(1		)	—			(1		)	—			—			—
Share-based compensation	19			—			19			16			—			16
Balance, end of period	$	6,232		$	503		$	6,735		$	6,256		$	475		$	6,731

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	Nine Months Ended September 30,
(Millions of dollars)	2018									2017
Activity	Praxair, Inc. Shareholders’ Equity			Noncontrolling Interests			Total Equity			Praxair, Inc. Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, beginning of period	$	6,018		$	493		$	6,511		$	5,021		$	420		$	5,441
Net income (a)	1,403			46			1,449			1,214			44			1,258
Other comprehensive income (loss)	(558		)	(17		)	(575		)	575			28			603
Noncontrolling interests:
Additions (reductions)	—			7			7			—			9			9
Dividends and other capital changes	—			(26		)	(26		)	—			(26		)	(26		)
Redemption value adjustments	(3		)	—			(3		)	—			—			—
Dividends to Praxair, Inc. common stock holders ($2.475 per share in 2018 and $2.36 per share in 2017)	(712		)	—			(712		)	(675		)	—			(675		)
Issuances of common stock:
For the dividend reinvestment and stock purchase plan	5			—			5			5			—			5
For employee savings and incentive plans	41			—			41			72			—			72
Other	—			—			—			—			—			—
Purchases of common stock	(2		)	—			(2		)	—			—			—
Share-based compensation	40			—			40			44			—			44
Balance, end of period	$	6,232		$	503		$	6,735		$	6,256		$	475		$	6,731

(a) Net income for noncontrolling interests excludes Net income related to redeemable noncontrolling interests of $2 million for the nine months ended September 30, 2018 ($1 million for the same time period in 2017) which is not part of total equity (see redeemable noncontrolling interests section below).

The components of AOCI are as follows:

	September 30,			December 31,
(Millions of dollars)	2018			2017
Cumulative translation adjustment - net of taxes:
North America	$	(891	)	$	(885	)
South America	(2,391		)	(2,004		)
Europe	(427		)	(398		)
Asia	(314		)	(151		)
Surface Technologies	(30		)	(17		)
	(4,053		)	(3,455		)
Derivatives - net of taxes	(1		)	(1		)
Pension / OPEB funded status obligation (net of $336 million and $347 million tax benefit in September 30, 2018 and December 31, 2017, respectively)	(602		)	(642		)
	$	(4,656	)	$	(4,098	)

Redeemable Noncontrolling Interests

Noncontrolling interests with redemption features, such as put/sell options, that are not solely within the Company’s control (“redeemable noncontrolling interests”) are reported separately in the consolidated balance sheets at the greater of carrying value or redemption value. For redeemable noncontrolling interests that are not yet exercisable, Praxair calculates the redemption value by accreting the carrying value to the redemption value over the period until exercisable. If the redemption value is greater than the carrying value, any increase is adjusted directly to equity and does not impact net income.

At September 30, 2018 and 2017, redeemable noncontrolling interests includes one packaged gas distributor in the United States where the noncontrolling shareholder has a put option.

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Following is a summary of the changes in redeemable noncontrolling interests for the nine months ended September 30, 2018 and 2017:

(Millions of dollars)	2018			2017
Balance, January 1	$	11		$	11
Net income	2			1
Distributions to noncontrolling interest and other	(1		)	(1		)
Redemption value adjustments/accretion	3			—
Balance, September 30	$	15		$	11

15. Revenue Recognition

Effective January 1, 2018, Praxair adopted the FASB's Accounting Standards Update No. 2014-09 ("ASC 606") relating to Revenue Recognition using the modified retrospective transition method. The new accounting standard requires revenue to be recognized as control of goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled to receive in exchange for the goods or services. No material differences in revenue recognition were identified as compared to the Company's historical revenue recognition accounting; accordingly, there is no adjustment to opening retained earnings at January 1, 2018 and therefore no need to present comparable revenue in accordance with the prior accounting policy. The following sections include updated accounting policies and disclosures required by ASC 606. Praxair's significant accounting policies for periods through December 31, 2017 are summarized in Note 1 to its 2017 Annual Report on Form 10-K.

Contracts with Customers

Approximately 94% of Praxair’s consolidated sales are generated from industrial gases and related products in four geographic segments (North America, Europe, South America and Asia) and the remaining 6% is related to the global surface technologies segment. Praxair serves a diverse group of industries including healthcare, petroleum refining, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals and water treatment.

Industrial Gases

Within each of the Company’s geographic segments for industrial gases, there are three basic distribution methods: (i) on-site or tonnage; (ii) merchant or bulk liquid; and (iii) packaged or cylinder gases. The distribution method used by Praxair to supply a customer is determined by many factors, including the customer’s volume requirements and location. The distribution method generally determines the contract terms with the customer and, accordingly, the revenue recognition accounting practices. Praxair’s primary products in its industrial gases business are atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty gases, acetylene). These products are generally sold through one of the three distribution methods.

Following is a description of each of the three industrial gases distribution methods and the respective revenue recognition policies:

On-site. Customers that require the largest volumes of product and that have a relatively constant demand pattern are supplied by cryogenic and process gas on-site plants. Praxair constructs plants on or adjacent to these customers’ sites and supplies the product directly to customers by pipeline. Where there are large concentrations of customers, a single pipeline may be connected to several plants and customers. On-site product supply contracts generally are total requirement contracts with terms typically ranging from 10-20 years and contain minimum purchase requirements and price escalation provisions. Many of the cryogenic on-site plants also produce liquid products for the merchant market. Therefore, plants are typically not dedicated to a single customer. Additionally, Praxair is responsible for the design, construction, operations and maintenance of the plants and our customers typically have no involvement in these activities. Advanced air separation processes also allow on-site delivery to customers with smaller volume requirements.

The Company’s performance obligations related to on-site customers are satisfied over time as customers receive and obtain control of the product. Praxair has elected to apply the practical expedient for measuring progress towards the completion of a performance obligation and recognizes revenue as the company has the right to invoice each customer, which generally corresponds with product delivery. Accordingly, revenue is recognized when product is delivered to the customer and the Company has the right to invoice the customer in accordance with the contract terms. Consideration in these contracts is generally based on pricing which fluctuates with various price indices. Variable components of consideration exist within on-site contracts but are considered constrained.

Merchant. Merchant deliveries generally are made from Praxair’s plants by tanker trucks to storage containers at the customer's

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site. Due to the relatively high distribution cost, merchant oxygen and nitrogen generally have a relatively small distribution radius from the plants at which they are produced. Merchant argon, hydrogen and helium can be shipped much longer distances. The customer agreements used in the merchant business are usually three-to seven-year supply agreements based on the requirements of the customer. These contracts generally do not contain minimum purchase requirements or volume commitments.

The Company’s performance obligations related to merchant customers are generally satisfied at a point in time as the customers receive and obtain control of the product. Revenue is recognized when product is delivered to the customer and the Company has the right to invoice the customer in accordance with the contract terms. Any variable components of consideration within merchant contracts are constrained however this consideration is not significant.

Packaged Gases. Customers requiring small volumes are supplied products in containers called cylinders, under medium to high pressure. Praxair distributes merchant gases from its production plants to Company-owned cylinder filling plants where cylinders are then filled for distribution to customers. Cylinders may be delivered to the customer’s site or picked up by the customer at a packaging facility or retail store. Praxair invoices the customer for the industrial gases and the use of the cylinder container(s). The Company also sells hardgoods and welding equipment purchased from independent manufacturers. Packaged gases are generally sold under one to three-year supply contracts and purchase orders and do not contain minimum purchase requirements or volume commitments.

The Company’s performance obligations related to packaged gases are satisfied at a point in time. Accordingly, revenue is recognized when product is delivered to the customer or when the customer picks up product from a packaged gas facility or retail store, and the Company has the right to payment from the customer in accordance with the contract terms. Any variable consideration is constrained and will be recognized when the uncertainty related to the consideration is resolved.

Surface Technologies

The company’s surface technologies segment, operated through Praxair Surface Technologies, Inc., supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders. Praxair Surface Technologies is a leading global supplier of coatings services and thermal spray consumables to customers in the aircraft, energy, printing, primary metals, petrochemical, textile, and other industries. Its coatings are used to provide wear resistance, corrosion protection, thermal insulation, and many other surface-enhancing functions which serve to extend component life, enable optimal performance, and reduce operating costs. It also manufactures a complete line of electric arc, plasma and wire spray, and high-velocity oxy-fuel ("HVOF") equipment.

The Company’s performance obligation related to surface technologies customers are generally satisfied at a point in time when the customer receives and takes control of product. Accordingly, revenue is recognized when product is delivered to the customer or when the customer picks up the product from the Company’s facility, and the Company has the right to invoice the customer in accordance with the contract terms.

Payment Terms and Other

Praxair generally receives payment after performance obligations are satisfied, and customer prepayments are not typical. Payment terms vary based on the country where sales originate and local customary payment practices. Praxair does not offer extended financing outside of customary payment terms. Contract asset and liability balances and the changes in these balances are not material. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue producing transactions are presented on a net basis and are not included in sales within the consolidated statement of income. Additionally, sales returns and allowances are not a normal practice in the industry and are not significant.

Disaggregated Revenue Information

As described above and in Note 18 of the 2017 10-K, the Company manages its industrial gases business on a geographic basis, while the surface technologies business is managed on a global basis. Further, the Company believes that reporting sales by distribution method by reportable geographic segment best illustrates the nature, timing, type of customer, and contract terms for its revenues, including terms and pricing.

The following table shows sales by distribution method for each reportable segment and at the consolidated level for the quarter and nine months ended September 30, 2018.

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Quarter Ended September 30,
(Dollars in Millions)			Industrial Gases
Sales	North America			Europe		South America		Asia		Surface Technologies		Total		%
Merchant	$	604		$	146	$	125	$	163	$	—	$	1,038	34	%
On-Site	474			78		112		241		—		905		30	%
Packaged Gas	495			184		86		55		—		820		27	%
Other	40			17		6		28		170		261		9	%
	$	1,613		$	425	$	329	$	487	$	170	$	3,024	100	%

Nine Months Ended September 30,
(Dollars in Millions)			Industrial Gases
Sales	North America			Europe		South America		Asia		Surface Technologies		Total		%
Merchant	$	1,768		$	446	$	399	$	474	$	—	$	3,087	34	%
On-Site	1,392			235		343		737		—		2,707		30	%
Packaged Gas	1,496			564		277		166		—		2,503		28	%
Other	114			52		24		88		509		787		8	%
	$	4,770		$	1,297	$	1,043	$	1,465	$	509	$	9,084	100	%

Remaining Performance Obligations

As described above, Praxair’s contracts with on-site customers are under long-term supply arrangements which generally require the customer to purchase their requirements from Praxair and also have minimum purchase requirements. The Company estimates the consideration related to minimum purchase requirements is approximately $19 billion. This amount excludes all sales above minimum purchase requirements, which can be significant depending on customer needs. In the future, actual amounts will be different due to impacts from several factors, many of which are beyond the Company’s control including, but not limited to, timing of newly signed, terminated and renewed contracts, inflationary price escalations, currency exchange rates, and pass-through costs related to natural gas and electricity. The actual duration of long-term supply contracts ranges up to twenty years. The Company estimates that approximately half of the revenue related to minimum purchase requirements are estimated to be earned in the next six years and the remaining thereafter.

Note 16. Income Taxes

U.S. Tax Cuts and Jobs Act (Tax Act)

On December 22, 2017 the U.S. government enacted the Tax Cuts and Jobs Act (Tax Act). This comprehensive tax legislation significantly revises the U.S. corporate income tax rules by, among other things, lowering the corporate income tax rate from 35% to 21%, implementing a territorial tax system and imposing a one-time tax on accumulated earnings of foreign subsidiaries. Given the substantial uncertainties surrounding the Tax Act and the short period of time between December 22, 2017 and December 31, 2017 to calculate the U.S. Federal, U.S. state, and non-U.S. tax impacts of the Tax Act, the Company is accounting for its income tax charge on a provisional (estimated) basis as allowed by SEC Staff Accounting Bulletin No. 118. In 2017, the Company recorded a net provisional income tax charge of $394 million with three main components: (i) an estimated $467 million U.S. federal and state tax charge for deemed repatriation of accumulated foreign earnings; (ii) an estimated $260 million charge for foreign withholding taxes related to anticipated future repatriation of foreign earnings; and (iii) an estimated $333 million deferred tax benefit for the revaluation of net deferred tax liabilities from 35% to the new 21% tax rate. Refer to Note 5 to the consolidated financial statements of Praxair's 2017 Annual Report on Form 10-K.

The Company continues to evaluate the Tax Act, additional guidance from the Internal Revenue Service, its historical foreign earnings and taxes and other items that could impact its net provisional tax charge. As of September 30, 2018, there have been no adjustments to the net provisional income tax charge recognized in 2017. In October 2018, the Company completed and filed its U.S. federal income tax return including the tax on deemed repatriation.  During the fourth quarter, the Company will

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continue to evaluate the tax impacts related to the Tax Act and will complete its accounting as required under SEC Staff Accounting Bulletin 118.  Any changes to the net provisional estimate will be recorded to income tax expense at that time.

17. Business Combination with Linde AG

Completion of the Business Combination

On October 31, 2018, Praxair and Linde AG combined under Linde plc., as contemplated by the business combination agreement, dated June 1, 2017, as amended on August 10, 2017 (the “Business Combination Agreement”), by and among Praxair, Linde AG, Linde plc, Zamalight Holdco LLC and Zamalight Subco, Inc. (the “Business Combination”). Pursuant to the Business Combination Agreement, (i) Praxair became an indirect wholly-owned subsidiary of Linde plc through the merger of Zamalight Subco, Inc., an indirect wholly-owned Delaware subsidiary of Linde plc with and into Praxair (the “Merger”), and (ii) Linde AG became an indirect subsidiary of Linde plc through an exchange offer by Linde plc for each issued and outstanding bearer share of Linde AG (the “Exchange Offer”).

In the Merger, each issued and outstanding share of common stock of Praxair, par value $0.01 per share (the “Praxair Shares”), was converted into the right to receive one ordinary share, nominal value€0.001 per share, of Linde plc (the “Linde plc Shares”). Each issued and outstanding ordinary bearer share, without par value, of Linde AG (the “Linde AG Shares”) that was validly tendered in the Exchange Offer was exchanged for 1.540 Linde plc Shares.

The issuance of Linde plc Shares in connection with the Business Combination, as described above, was registered under the Securities Act of 1933, as amended, pursuant to a registration statement on Form S-4 (the “Registration Statement”) (File No. 333-218485), which was declared effective by the Securities and Exchange Commission (the “SEC”) on August 14, 2017.

Pursuant to Rule 12g-3(a) under the Exchange Act, as of October 31, 2018, Linde plc is the successor issuer to Praxair, the Linde plc Shares are deemed to be registered under Section 12(b) of the Exchange Act, and Linde plc is subject to the informational requirements of the Exchange Act and the rules and regulations promulgated thereunder. The Linde plc Shares trade on the New York Stock Exchange (“NYSE”) and the Frankfurt Stock Exchange under the ticker symbol “LIN”. Prior to the Business Combination, the Praxair Shares were registered pursuant to Section 12(b) of the Exchange Act and listed on the NYSE. In connection with the completion of the Business Combination, the Praxair Shares were suspended from trading on the NYSE as of close of business (New York Time) on October 30, 2018. On November 1, 2018, Praxair filed a Form 25 to delist and deregister its three series of Euro-denominated notes (the “Euro Notes”), including its 1.50% Notes due 2020, 1.20% Notes due 2024 and 1.625% Notes due 2025, that are currently listed on the NYSE. Trading in the Euro Notes on the NYSE is expected to be suspended as of close of business (New York Time) on November 9, 2018. Praxair expects to file a Form 15 with the SEC to terminate the registration under the Exchange Act of the Praxair Shares and its Euro Notes and to suspend the Company’s reporting obligations under Section 15(d) of the Exchange Act on November 12, 2018. Linde plc, as the new holding company of the combined group, will file reports under the Exchange Act.

Divestitures

On July 5, 2018, Praxair entered into a sale and purchase agreement to sell the majority of its businesses in Europe to Taiyo Nippon Sanso Corporation, an affiliate of Mitsubishi Chemical Holdings Corporation (the “Praxair Europe SPA”). The Praxair Europe SPA was entered into as part of the commitments in connection with the merger control review of the Business Combination by the European Commission. The assets to be sold include Praxair’s industrial gases businesses in Belgium, Denmark, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden and the United Kingdom with approximately 2,500 employees. The businesses generated annual sales of approximately €1.3 billion in 2017. The purchase price for this transaction is €5.0 billion in cash consideration and is subject to customary adjustments at closing. Under the Praxair Europe SPA, Linde plc has given an independent guarantee as of the completion of the Business Combination for the full, due and timely performance and observance of all obligations of Praxair and its local subsidiaries holding shares in the companies operating the businesses to be sold. The Praxair Europe SPA contains representations, warranties and covenants that are customary for a transaction of this nature.

Following the closing of the Praxair Europe SPA and the closing of another agreement dated December 5, 2017 (the “SIAD SPA”) under which Praxair, inter alia, agreed to sell its participation in its Italian joint venture Società Italiana Acetilene e Derivati S.p.A. (“SIAD”) to its joint venture partner Flow Fin S.p.A. (“Flow Fin”) in exchange for Flow Fin’s participation in another Italian joint venture, Rivoira S.p.A., and a net purchase price of approximately €90 million payable by Praxair to Flow Fin, Praxair will have minor remaining operations in Europe which will be outside of the industrial gases business and mainly

30

related to coatings.

In the course of the merger control proceedings in the United States, Linde plc, Praxair and Linde AG entered into an agreement with the U.S. Federal Trade Commission dated October 1, 2018 which provides for the divestitures under the Americas SPA and provides for certain additional divestiture commitments in the United States. Under the agreement, Linde plc, Praxair and Linde AG will (i) continue to operate The Linde Group and Praxair as independent, ongoing, economically viable, competitive businesses held separate, distinct, and apart from each other’s operations; (ii) not coordinate any aspect of the operations of The Linde Group and Praxair, including the marketing or sale of any products; and (iii) maintain separate financial ledgers, books, and records that report on a periodic basis, consistent with past practices, the assets, liabilities, expenses, revenues, and income of each, until certain divestitures have been completed.

In addition, in connection with the merger control proceedings in China, India and South Korea, Praxair and Linde AG have made certain divestiture commitments to the relevant antitrust authorities to divest certain assets in the those jurisdictions.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following table provides summary data for the quarter and nine months ended September 30, 2018 and 2017:

	Quarter Ended September 30,								Nine Months Ended September 30,
(Dollar amounts in millions, except per share data)	2018			2017 (c)			Variance		2018			2017 (c)			Variance
Reported Amounts
Sales	$	3,024		$	2,922		3	%	$	9,084		$	8,484		7	%
Cost of sales, exclusive of depreciation and amortization	$	1,714		$	1,652		4	%	$	5,114		$	4,800		7	%
Gross margin (a)	$	1,310		$	1,270		3	%	$	3,970		$	3,684		8	%
As a percent of sales	43.3		%	43.5		%			43.7		%	43.4		%
Selling, general and administrative	$	294		$	300		(2	)%	$	911		$	895		2	%
As a percent of sales	9.7		%	10.3		%			10.0		%	10.5		%
Depreciation and amortization	$	306		$	298		3	%	$	928		$	877		6	%
Transaction costs and other charges (b)	$	31		$	14				$	74		$	35
Other income (expense) - net	$	13		$	(3	)			$	25		$	(3	)
Operating profit	$	669		$	632		6	%	$	2,011		$	1,805		11	%
Operating margin	22.1		%	21.6		%			22.1		%	21.3		%
Interest expense - net	$	40		$	41		(2	)%	$	130		$	120		8	%
Net pension and OPEB cost (benefit), excluding service cost	$	6		$	6				$	10		$	(7	)
Effective tax rate	25.0		%	27.7		%			24.7		%	27.7		%
Income from equity investments	$	13		$	12		8	%	$	42		$	35		20	%
Noncontrolling interests	$	(19	)	$	(16	)	19	%	$	(48	)	$	(45	)	7	%
Net income - Praxair, Inc.	$	461		$	419		10	%	$	1,403		$	1,214		16	%
Diluted earnings per share	$	1.58		$	1.45		9	%	$	4.82		$	4.21		14	%
Diluted shares outstanding	291,513			289,216			1	%	291,275			288,524			1	%
Number of employees	26,714			26,531					26,714			26,531
Adjusted Amounts (b)
Operating profit	$	700		$	646		8	%	$	2,085		$	1,840		13	%
Operating margin	23.1		%	22.1		%			23.0		%	21.7		%
Net pension and OPEB cost (benefit), excluding service cost	$	2		$	4				$	6		$	(9	)
Effective tax rate	24.2		%	27.3		%			24.1		%	27.2		%
Noncontrolling interests	$	(19	)	$	(16	)	19	%	$	(47	)	$	(45	)	4	%
Net income - Praxair, Inc.	$	493		$	433		14	%	$	1,474		$	1,249		18	%
Diluted earnings per share	$	1.69		$	1.50		13	%	$	5.06		$	4.33		17	%
Other Financial Data (b)
EBITDA	$	988		$	942				$	2,981		$	2,717
EBITDA Margin	32.7		%	32.2		%			32.8		%	32.0		%
Adjusted EBITDA	$	1,019		$	956				$	3,055		$	2,752
Adjusted EBITDA Margin	33.7		%	32.7		%			33.6		%	32.4		%

(a) Gross margin excludes depreciation and amortization expense.

(b) Adjusted amounts and other financial data are non-GAAP performance measures. A reconciliation of reported amounts to adjusted amounts and other financial data can be found in the "Non-GAAP Financial Measures" section of this MD&A. See Note 2 to the condensed consolidated financial statements.

(c) Prior period information has been reclassified to conform with current year presentation as a result of the adoption of new accounting guidance on the presentation of net periodic pension and postretirement benefit costs. See Note 1 to the condensed consolidation financial statements.

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Consolidated Results

In the third quarter of 2018, Praxair’s sales were $3,024 million, 3% above the prior–year quarter. Excluding higher cost pass-through which increased sales by 1% with minimal impact on operating profit and unfavorable currency translation impact which decreased sales by 4%, underlying sales growth was 6% driven by higher volumes, including new project start-ups, and price attainment, across most segments. Reported operating profit for the third quarter of 2018 of $669 million, 22.1% of sales, was 6% above the prior-year quarter. Operating profit included transaction costs and other charges of $31 million primarily related to the potential Linde merger and the impact of transitioning to hyper-inflationary accounting in Argentina. Excluding these costs, adjusted operating profit was $700 million, 23.1% of sales and 8% above the 2017 adjusted third quarter driven by higher volumes and price. The company's EBITDA margin was 32.7% and adjusted EBITDA margin was 33.7%. The reported effective tax rate ("ETR") was 25.0% versus 27.7% in the third quarter of 2017, reflecting the impact of U.S. tax reform. The adjusted ETR was 24.2% versus 27.3% in the third quarter of 2017. Diluted earnings per share ("EPS") was $1.58, 9% above reported EPS of $1.45 in the third quarter of 2017. On an adjusted basis, EPS was $1.69, 13% above the 2017 EPS of $1.50, driven by higher adjusted net income and a lower adjusted ETR.

Outlook

The company’s core business is to build, own, and operate industrial gas plants in order to supply atmospheric and process gases to customers. As such, Praxair believes that its backlog is one indicator of future sales growth. At September 30, 2018, Praxair’s backlog of 23 large projects under construction was $2.2 billion. This represents the total estimated capital cost of large plants under construction. These plants will supply customers in the energy, chemical, manufacturing, and electronics end-markets.

Praxair provides quarterly updates on operating results, material trends that may affect financial performance, and financial earnings guidance via quarterly earnings releases and investor teleconferences. These updates are available on the company’s website, www.praxair.com, but are not incorporated herein.

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Results of Operations

The changes in consolidated sales and operating profit compared to the prior year are attributable to the following:

	Quarter Ended September 30, 2018 vs. 2017				Nine Months Ended September 30, 2018 vs. 2017
	% Change				% Change
	Sales		Operating Profit		Sales		Operating Profit
Factors Contributing to Changes
Volume	4	%	4	%	4	%	7	%
Price/Mix	2	%	10	%	2	%	9	%
Cost pass-through	1	%	—	%	1	%	—	%
Currency	(4	)%	(4	)%	—	%	—	%
Acquisitions/divestitures	—	%	—	%	—	%	—	%
Other	—	%	(4	)%	—	%	(5	)%
Reported	3	%	6	%	7	%	11	%
Add: Transaction costs and other charges	—	%	2	%	—	%	2	%
Adjusted	3	%	8	%	7	%	13	%

The following tables provide sales by end-market and distribution method:

	Quarter Ended September 30,						Nine Months Ended September 30,
	% of Sales				% Change*		% of Sales				% Change*
	2018		2017				2018		2017
Sales by End Markets
Manufacturing	22	%	22	%	6	%	22	%	22	%	7	%
Metals	16	%	17	%	4	%	17	%	17	%	8	%
Energy	12	%	11	%	8	%	11	%	12	%	4	%
Chemicals	11	%	10	%	18	%	11	%	10	%	15	%
Electronics	9	%	9	%	6	%	9	%	9	%	7	%
Healthcare	8	%	8	%	6	%	8	%	8	%	6	%
Food & Beverage	10	%	10	%	7	%	9	%	9	%	6	%
Aerospace	4	%	3	%	15	%	4	%	3	%	13	%
Other	8	%	10	%	(1	)%	9	%	10	%	1	%
	100	%	100	%			100	%	100	%

 * Excludes impact of currency, natural gas/precious metals cost pass-through and acquisitions/divestitures.

	Quarter Ended September 30,				Nine Months Ended September 30,
	% of Sales				% of Sales
	2018		2017		2018		2017
Sales by Distribution Method
On-Site	30	%	30	%	30	%	30	%
Merchant	34	%	34	%	34	%	34	%
Packaged Gas	27	%	27	%	28	%	28	%
Other	9	%	9	%	8	%	8	%
	100	%	100	%	100	%	100	%

Sales increased $102 million, or 3%, for the third quarter and increased $600 million, or 7% for the nine months ended September 30, 2018 versus the respective 2017 periods. Volume growth contributed 4% to sales in both the quarter and nine-month periods primarily driven by higher volumes in North America and Asia, including new project start-ups. Higher overall pricing across all segments contributed 2% to sales in both the quarter and nine-month periods. Currency translation impact decreased sales by 4% in the quarter and had no impact for the nine-month period. Higher cost pass-through increased sales by 1% in the quarter and the nine-month period with minimal impact on operating profit.

34

Gross margin increased $40 million, or 3%, for the third quarter of 2018 and increased $286 million or 8% for the nine months ended September 30, 2018 versus the respective 2017 periods, primarily due to higher volumes and price. Gross margin as a percentage of sales decreased to 43.3% from 43.5% for the third quarter of 2018 and increased to 43.7% from 43.4% for the nine months ended September 30, 2018 versus the respective 2017 periods.

Selling, general and administrative expense ("SG&A") decreased $6 million, or 2%, for the third quarter of 2018 and increased $16 million for the nine months ended September 30, 2018 versus the respective 2017 periods. Currency impacts decreased SG&A by $11 million in the quarter and $2 million for the nine-month period. Excluding currency effects in the quarter and nine-month periods, SG&A was higher driven by cost inflation partially offset by cost reduction actions.

Depreciation and amortization expense increased $8 million, or 3%, for the third quarter and increased $51 million, or 6%, for the nine months ended September 30, 2018 versus the respective 2017 periods. Currency impacts decreased depreciation and amortization by $10 million in the quarter and increased depreciation and amortization by $1 million for the nine-month period. Excluding currency effects, depreciation and amortization expense increased $18 million for the quarter and $50 million for the nine-month period primarily driven by large project start-ups.

Praxair recorded transaction costs and other charges of $31 million and $14 million in the third quarters of 2018 and 2017, respectively, primarily related to the potential merger and charges related to the transition to hyper-inflationary accounting in Argentina during the 2018 quarter (refer to Note 2 to the condensed consolidated financial statements). Transaction costs and other charges were $74 million and $35 million, respectively, for the nine-month periods ended September 30, 2018 and 2017.

Other income (expense) – net was $13 million income for the 2018 third quarter compared to $3 million expense for the 2017 third quarter and was $25 million income for the nine months ended September 30, 2018 compared to $3 million expense for the respective 2017 period. In North America, the nine-month period of 2018 included a $30 million asset impairment charge which was more than offset by $43 million of gains on asset disposals. In Asia, the nine-month period of 2018 included a first quarter $22 million asset impairment charge, offset by a litigation settlement gain.

Reported operating profit increased$37 million, or 6%, for the third quarter of 2018 and increased $206 million, or 11%, for the nine months ended September 30, 2018 versus the respective 2017 periods. The third quarter and nine-month period of 2018 included $31 million and $74 million, respectively, of transaction costs and other charges primarily related to the potential merger and the transition to hyper-inflationary accounting in Argentina in the third quarter 2018 ($14 million and $35 million for the respective 2017 periods). Excluding these charges, adjusted operating profit increased $54 million, or 8%, for the third quarter of 2018 and increased $245 million, or 13%, for the nine months ended September 30, 2018 versus the respective 2017 periods driven by higher volumes and price.

Interest expense-net decreased$1 million, or 2%, for the third quarter of 2018 and increased $10 million, or 8%, for the nine months ended September 30, 2018 versus the respective 2017 periods. The increase for the nine month period was primarily attributable to lower capitalized interest.

The reported effective tax rate ("ETR") for the third quarter of 2018 and 2017 was 25.0% and 27.7%, respectively. The reported ETR for the third quarters of 2018 and 2017 include transaction costs and other charges of $21 million ($19 million after-tax), and $14 million ($13 million after-tax), respectively, related to the potential merger. The 2018 third quarter also includes charges of $14 million ($13 million after-tax) related to the transition to hyper-inflationary accounting in Argentina and a pension settlement charge. The 2017 third quarter also includes a pension settlement charge of $2 million ($1 million after-tax). Excluding these impacts, on an adjusted basis the ETR for the third quarters of 2018 and 2017 was 24.2% and 27.3%, respectively. The reported ETR for the nine months ended September 30, 2018 and 2017 was 24.7% and 27.7%, respectively. The reported ETR for the nine-month periods of 2018 and 2017 include transaction costs and other charges of $78 million ($71 million after-tax) and $37 million ($35 million after-tax), respectively. Excluding these impacts, on an adjusted basis the ETR for the nine months ended September 30, 2018 and 2017 was 24.1% and 27.2%, respectively. The decrease in both the quarter and nine-month periods was driven primarily by the impact of the U.S. Tax Cuts and Jobs Act enacted in the fourth quarter of 2017 (see Note 16 to the condensed consolidated financial statements).

Income from equity investments for the third quarters of 2018 and 2017 was $13 million and $12 million, respectively, largely in China and Italy. Income from equity investments for the nine months ended September 30, 2018 and 2017 was $42 million and $35 million, respectively.

At September 30, 2018, non-controlling interests consisted primarily of non-controlling shareholders' investments in Asia (primarily China), Europe (primarily Italy) and surface technologies. Reported non-controlling interests increased $3 million for the third quarter and nine months ended September 30, 2018 versus the respective 2017 periods. The increase in the third

35

quarter and nine-month period was driven by higher earnings. In the nine-month period, higher earnings were largely offset by the impact of an asset impairment charge in the first quarter.

Reported Net income-Praxair, Inc. increased$42 million, or 10%, for the third quarter of 2018 and increased $189 million, or 16%, for the nine months ended September 30, 2018 versus the respective 2017 periods. Included within the third quarter and nine-month periods of 2018 were transaction costs and other charges of $32 million and $71 million, respectively, after-tax and noncontrolling interests. Included within the third quarter and nine-month periods of 2017 were transaction costs and other charges of $14 million and $35 million, respectively, after-tax (see Note 2 to the condensed consolidated financial statements). Excluding these charges, adjusted Net income-Praxair, Inc increased $60 million, or 14%, for the third quarter of 2018 and increased $225 million, or 18%, for the nine months ended September 30, 2018 due to higher adjusted operating profit and a lower effective tax rate.

Reported Earnings per share of $1.58increased$0.13, or 9%, for the third quarter of 2018 and reported earnings per share of $4.82 increased $0.61, or 14%, for the nine months ended September 30, 2018 versus the respective 2017 periods. Included within the 2018 third quarter and nine-month period were charges of $0.11 and $0.24, respectively, for transaction costs and other charges related primarily to the potential merger ($0.05 and $0.12 for the respective 2017 periods, see Note 2 to the condensed consolidated financial statements). Excluding these charges, adjusted EPS increased $0.19, or 13% for the third quarter of 2018 and increased $0.73, or 17%, for the nine months ended September 30, 2018 versus the respective 2017 periods primarily due to higher adjusted net income.

The number of employees at September 30, 2018 was 26,714, an increase of 183 employees from September 30, 2017.

Other Financial Data

EBITDA increased $46 million to $988 million for the third quarter 2018 from $942 million for the third quarter of 2017 and increased $264 million to $2,981 million for the nine-month period of 2018 from $2,717 million for the nine-month period of 2017. Included within the 2018 third quarter and nine-month period were charges of $31 million and $74 million, respectively, for transaction costs and other charges ($14 million and $35 million for the respective 2017 periods, see Note 2 to the condensed consolidated financial statements). Adjusted EBITDA increased $63 million to $1,019 million for the third quarter 2018 from $956 million for the third quarter 2017 and increased $303 million to $3,055 million for the nine-month period of 2018 from $2,752 million for the nine-month period of 2017. The increase in EBITDA and adjusted EBITDA in the third quarter and nine-month periods is primarily due to higher net income plus depreciation and amortization on both a reported and adjusted basis versus the prior year periods.

See the "Non-GAAP Financial Measures" section below for definitions and reconciliations of these non-GAAP measures to reported GAAP amounts.

Other Comprehensive Income (Loss)

Other comprehensive losses for the third quarter and nine months ended September 30, 2018 of $67 million and $575 million resulted primarily from adverse currency translation adjustments of $87 million and $615 million. The adverse translation adjustments reflect the impact of translating local currency foreign subsidiary financial statements to U.S. dollars, and are largely driven by the strengthening of the U.S. dollar against major currencies including the Euro, Brazilian Real, and Canadian dollar. See the "Currency" section of the MD&A for exchange rates used for translation purposes and Note 14 to the condensed consolidated financial statements for a summary of the currency translation adjustment component of accumulated other comprehensive income by segment.

Retirement Benefits

The net periodic benefit cost for pension and OPEB plans was $18 million in the quarters ended September 30, 2018 and September 30, 2017 and $47 million and $30 million for the nine months ended September 30, 2018 and September 30, 2017, respectively. The increase in expense versus the prior year for the nine months ended September 30, 2018 is related to a curtailment gain recorded in the first quarter of 2017 on a South American OPEB plan for $18 million (see Note 11 to the condensed consolidated financial statements).

36

Segment Discussion

The following summary of sales and operating profit by segment provides a basis for the discussion that follows.

	Quarter Ended September 30,								Nine Months Ended September 30,
(Dollar amounts in millions)	2018			2017*			Variance		2018			2017*			Variance
SALES
North America	$	1,613		$	1,518		6	%	$	4,770		$	4,481		6	%
Europe	425			407			4	%	1,297			1,146			13	%
South America	329			389			(15	)%	1,043			1,131			(8	)%
Asia	487			451			8	%	1,465			1,268			16	%
Surface Technologies	170			157			8	%	509			458			11	%
	$	3,024		$	2,922		3	%	$	9,084		$	8,484		7	%
OPERATING PROFIT
North America	$	420		$	386		9	%	$	1,258		$	1,121		12	%
Europe	81			79			3	%	248			220			13	%
South America	57			66			(14	)%	167			178			(6	)%
Asia	110			88			25	%	321			243			32	%
Surface Technologies	32			27			19	%	91			78			17	%
Segment operating profit	700			646			8	%	2,085			1,840			13	%
Transaction costs and other charges (Note 2)	(31		)	(14		)			(74		)	(35		)
Total operating profit	$	669		$	632		6	%	$	2,011		$	1,805		11	%

* Prior period segment operating profit has been reclassified to conform with current year presentation as a result of the adoption of new accounting guidance on the presentation of net periodic pension and postretirement benefit costs. See Note 1 to the condensed consolidation financial statements.

37

North America

	Quarter Ended September 30,								Nine Months Ended September 30,
	2018			2017			Variance		2018			2017			Variance
Sales	$	1,613		$	1,518		6	%	$	4,770		$	4,481		6	%
Cost of sales, exclusive of depreciation and amortization	857			796					2,493			2,363
Gross margin	756			722					2,277			2,118
Operating expenses	171			180					525			530
Depreciation and amortization	165			156					494			467
Operating profit	$	420		$	386		9	%	$	1,258		$	1,121		12	%
Margin %	26.0		%	25.4		%			26.4		%	25.0		%

	Quarter Ended September 30, 2018 vs. 2017				Nine Months Ended September 30, 2018 vs. 2017
	% Change				% Change
	Sales		Operating Profit		Sales		Operating Profit
Factors Contributing to Changes
Volume	5	%	5	%	4	%	8	%
Price/Mix	2	%	8	%	2	%	7	%
Cost pass-through	—	%	—	%	—	%	—	%
Currency	(1	)%	(1	)%	—	%	—	%
Acquisitions/divestitures	—	%	—	%	—	%	—	%
Other	—	%	(3	)%	—	%	(3	)%
	6	%	9	%	6	%	12	%

The following tables provide sales by end-market and distribution method:

	Quarter Ended September 30,						Nine Months Ended September 30,
	% of Sales				% Change*		% of Sales				% Change*
	2018		2017				2018		2017
Sales by End Markets
Manufacturing	28	%	28	%	6	%	29	%	29	%	6	%
Metals	11	%	12	%	3	%	12	%	12	%	5	%
Energy	17	%	17	%	4	%	17	%	18	%	—	%
Chemicals	11	%	9	%	31	%	10	%	9	%	24	%
Electronics	5	%	6	%	—	%	5	%	5	%	6	%
Healthcare	7	%	7	%	8	%	7	%	7	%	8	%
Food & Beverage	11	%	10	%	9	%	10	%	10	%	8	%
Aerospace	2	%	2	%	23	%	2	%	2	%	21	%
Other	8	%	9	%	(1	)%	8	%	8	%	(2	)%
	100	%	100	%			100	%	100	%

* Excludes impact of currency, natural gas/precious metals cost pass-through and acquisitions/divestitures.

	Quarter Ended September 30,				Nine Months Ended September 30,
	% of Sales				% of Sales
	2018		2017		2018		2017
Sales by Distribution Method
On- Site	29	%	29	%	29	%	30	%
Merchant	37	%	37	%	37	%	37	%
Packaged Gas	31	%	31	%	31	%	31	%
Other	3	%	3	%	3	%	2	%
	100	%	100	%	100	%	100	%

38

North America segment sales increased $6% for both the third quarter and the nine months ended September 30, 2018 as compared to prior year. Currency translation impact decreased sales by 1% in the quarter and had no impact for the nine-month period. Excluding currency, sales were 7% above the prior-year quarter and 6% above the prior year nine-month period primarily due to higher volumes to most end-markets and higher pricing.

North America segment operating profit increased $34 million, or 9% in the third quarter of 2018 and increased $137 million, or 12% for the nine months ended September 30, 2018 as compared to prior year driven by higher volumes and pricing. Currency translation impact decreased operating profit by 1% in the quarter with minimal impact for the nine-month period. Operating profit for the nine-month period also included a $30 million asset impairment charge which was more than offset by $43 million of gains on asset disposals.

Europe

	Quarter Ended September 30,								Nine Months Ended September 30,
	2018			2017			Variance %		2018			2017			Variance %
Sales	$	425		$	407		4	%	$	1,297		$	1,146		13	%
Cost of sales, exclusive of depreciation and amortization	252			235					761			655
Gross margin	173			172					536			491
Operating expenses	48			49					154			146
Depreciation and amortization	44			44					134			125
Operating profit	$	81		$	79		3	%	$	248		$	220		13	%
Margin %	19.1		%	19.4		%			19.1		%	19.2		%

	Quarter Ended September 30, 2018 vs. 2017				Nine Months Ended September 30, 2018 vs. 2017
	% Change		% Change		% Change		% Change
	Sales		Operating Profit		Sales		Operating Profit
Factors Contributing to Changes
Volume	1	%	(2	)%	1	%	1	%
Price/Mix	3	%	14	%	2	%	12	%
Cost pass-through	2	%	—	%	3	%	—	%
Currency	(2	)%	(2	)%	7	%	8	%
Acquisitions/divestitures	—	%	—	%	—	%	—	%
Other	—	%	(7	)%	—	%	(8	)%
	4	%	3	%	13	%	13	%

The following tables provide sales by end-market and distribution method:

	Quarter Ended September 30,						Nine Months Ended September 30,
	% of Sales				% Change*		% of Sales				% Change*
	2018		2017				2018		2017
Sales by End Markets
Manufacturing	20	%	20	%	7	%	21	%	20	%	9	%
Metals	16	%	16	%	9	%	16	%	16	%	11	%
Energy	5	%	5	%	(2	)%	4	%	5	%	(3	)%
Chemicals	12	%	12	%	10	%	12	%	12	%	8	%
Electronics	7	%	7	%	10	%	7	%	7	%	3	%
Healthcare	12	%	12	%	5	%	12	%	12	%	8	%
Food & Beverage	16	%	15	%	8	%	14	%	14	%	5	%
Aerospace	—	%	1	%	(19	)%	1	%	1	%	(12	)%
Other	12	%	12	%	(3	)%	13	%	13	%	1	%
	100	%	100	%			100	%	100	%

* Excludes impact of currency, natural gas/precious metals cost pass-through and acquisitions/divestitures

39

	Quarter Ended September 30,				Nine Months Ended September 30,
	% of Sales				% of Sales
	2018		2017		2018		2017
Sales by Distribution Method
On- Site	19	%	18	%	18	%	18	%
Merchant	34	%	36	%	34	%	35	%
Packaged Gas	43	%	43	%	43	%	42	%
Other	4	%	3	%	5	%	5	%
	100	%	100	%	100	%	100	%

Europe segment sales increased by $18 million, or 4% in the third quarter of 2018 and increased by $151 million, or 13%, for the nine months ended September 30, 2018 as compared to the prior year. Currency translation impacts decreased sales by 2% in the quarter and increased sales by 7% in the nine-month period. Cost pass-through increased sales by 2% in the quarter and 3% in the nine-month period with minimal impact on operating profit.

Europe segment operating profit increased by $2 million, or 3% in the third quarter of 2018 and increased by $28 million, or 13%, for the nine months ended September 30, 2018 as compared to the prior year. Currency translation impact decreased operating profit by 2% in the quarter and increased operating profit by 8% in the nine-month period. Excluding currency translation, operating profit increased 5% in the quarter and nine-month period driven by higher volumes and price partially offset by cost inflation.

South America

	Quarter Ended September 30,								Nine Months Ended September 30,
	2018			2017			Variance		2018			2017			Variance
Sales	$	329		$	389		(15	)%	$	1,043		$	1,131		(8	)%
Cost of sales, exclusive of depreciation and amortization	195			231					623			675
Gross margin	134			158					420			456
Operating expenses	42			51					140			160
Depreciation and amortization	35			41					113			118
Operating profit	$	57		$	66		(14	)%	$	167		$	178		(6	)%
Margin %	17.3		%	17.0		%			16.0		%	15.7		%

	Quarter Ended September 30, 2018 vs. 2017				Nine Months Ended September 30, 2018 vs. 2017
	% Change		% Change		% Change		% Change
	Sales		Operating Profit		Sales		Operating Profit
Factors Contributing to Changes
Volume	(1	)%	(14	)%	1	%	(3	)%
Price/Mix	3	%	19	%	2	%	10	%
Cost pass-through	1	%	—	%	—	%	—	%
Currency	(18	)%	(24	)%	(11	)%	(16	)%
Acquisitions/divestitures	—	%	—	%	—	%	—	%
Other	—	%	5	%	—	%	3	%
	(15	)%	(14	)%	(8	)%	(6	)%

40

The following tables provide sales by end-market and distribution method:

	Quarter Ended September 30,						Nine Months Ended September 30,
	% of Sales				% Change*		% of Sales				% Change*
	2018		2017				2018		2017
Sales by End Markets
Manufacturing	16	%	17	%	(6	)%	16	%	17	%	(4	)%
Metals	32	%	33	%	—	%	32	%	31	%	6	%
Energy	2	%	2	%	10	%	2	%	2	%	2	%
Chemicals	10	%	9	%	14	%	10	%	10	%	5	%
Electronics	—	%	—	%	—	%	—	%	—	%	—	%
Healthcare	19	%	18	%	3	%	19	%	19	%	2	%
Food & Beverage	12	%	12	%	6	%	12	%	13	%	2	%
Aerospace	—	%	—	%	—	%	—	%	—	%	—	%
Other	9	%	9	%	9	%	9	%	8	%	10	%
	100	%	100	%			100	%	100	%

* - Excludes impact of currency, natural gas/precious metals cost pass-through and acquisitions/divestitures.

	Quarter Ended September 30,				Nine Months Ended September 30,
	% of Sales				% of Sales
	2018		2017		2018		2017
Sales by Distribution Method
On- Site	34	%	35	%	33	%	33	%
Merchant	38	%	37	%	38	%	38	%
Packaged Gas	26	%	26	%	27	%	27	%
Other	2	%	2	%	2	%	2	%
	100	%	100	%	100	%	100	%

South America segment sales decreased$60 million, or 15% in the third quarter of 2018 and decreased $88 million, or 8%, for the nine months ended September 30, 2018 as compared to the prior year. Cost pass-through increased sales by 1% in the quarter and had no impact in the nine-month period. Unfavorable currency impacts decreased sales by 18% in the quarter and 11% in the nine-month period driven by the weakening of the Brazilian real and Argentine peso against the U.S. dollar. Excluding currency in the quarter and nine-month period, sales increased 3% driven by higher pricing.

South America segment operating profit decreased $9 million, or 14% in the third quarter of 2018 and decreased $11 million, or 6%, for the nine months ended September 30, 2018 versus the prior year. Excluding unfavorable currency impacts in the quarter and nine-month periods, operating profit increased 10% driven by higher price and lower costs partially offset by unfavorable sales mix.

Effective July 1, 2018, Argentina was deemed a highly inflationary economy (see Note 2 to the condensed consolidated financial statements).

Asia

	Quarter Ended September 30,								Nine Months Ended September 30,
	2018			2017			Variance		2018			2017			Variance
Sales	$	487		$	451		8	%	$	1,465		$	1,268		16	%
Cost of sales, exclusive of depreciation and amortization	299			287					905			804
Gross margin	188			164					560			464
Operating expenses	27			29					84			84
Depreciation and amortization	51			47					155			137
Operating profit	$	110		$	88		25	%	$	321		$	243		32	%
Margin %	22.6		%	19.5		%			21.9		%	19.2		%

41

	Quarter Ended September 30, 2018 vs. 2017				Nine Months Ended September 30, 2018 vs. 2017
	% Change		% Change		% Change		% Change
	Sales		Operating Profit		Sales		Operating Profit
Factors Contributing to Changes
Volume	7	%	14	%	9	%	15	%
Price/Mix	2	%	13	%	3	%	15	%
Cost pass-through	1	%	—	%	1	%	—	%
Currency	(2	)%	(2	)%	3	%	3	%
Acquisitions/divestitures	—	%	—	%	—	%	—	%
Other	—	%	—	%	—	%	(1	)%
	8	%	25	%	16	%	32	%

The following tables provide sales by end-market and distribution method:

	Quarter Ended September 30,						Nine Months Ended September 30,
	% of Sales				% Change*		% of Sales				% Change*
	2018		2017				2018		2017
Sales by End Markets
Manufacturing	10	%	9	%	19	%	9	%	9	%	20	%
Metals	26	%	27	%	9	%	27	%	27	%	15	%
Energy	5	%	2	%	117	%	5	%	3	%	—	%
Chemicals	14	%	15	%	1	%	15	%	15	%	7	%
Electronics	34	%	33	%	7	%	33	%	34	%	8	%
Healthcare	1	%	1	%	28	%	1	%	1	%	10	%
Food & Beverage	2	%	2	%	(11	)%	2	%	2	%	(10	)%
Aerospace	—	%	—	%	—	%	—	%	—	%	—	%
Other	8	%	11	%	(5	)%	8	%	9	%	2	%
	100	%	100	%			100	%	100	%

* Excludes impact of currency, natural gas/precious metals cost pass-through and acquisitions/divestitures

	Quarter Ended September 30,				Nine Months Ended September 30,
	% of Sales				% of Sales
	2018		2017		2018		2017
Sales by Distribution Method
On- Site	50	%	50	%	50	%	50	%
Merchant	33	%	31	%	32	%	30	%
Packaged Gas	11	%	13	%	11	%	13	%
Other	6	%	6	%	7	%	7	%
	100	%	100	%	100	%	100	%

Asia segment sales increased$36 million, or 8% in the third quarter of 2018 and increased $197 million, or 16%, for the nine months ended September 30, 2018 as compared to the prior year. Cost pass-through, primarily energy, increased sales by 1% in both the quarter and nine-month periods with minimal impact on operating profit. Currency translation impacts decreased sales by 2% in the quarter and increased sales by 3% in the nine-month period. Volume growth of 7% in the quarter and 9% in the nine-month period was primarily attributable to base volume growth in China, Korea and India and new project start-ups in China. Higher price increased sales by 2% in the quarter and 3% in the nine-month period primarily driven by China. Sales growth was strongest in the metals, energy and electronics end-markets.

Asia segment operating profit increased$22 million, or 25% in the third quarter of 2018 and increased $78 million, or 32% for the nine months ended September 30, 2018 as compared to the prior year driven primarily by higher volumes and price. Currency translation impacts decreased operating profit by 2% in the quarter and increased operating profit by 3% in the nine-month period. Operating profit for the nine-month period included a $22 million asset impairment charge, offset by a litigation settlement gain.

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Surface Technologies

	Quarter Ended September 30,								Nine Months Ended September 30,
	2018			2017			Variance		2018			2017			Variance
Sales	$	170		$	157		8	%	$	509		$	458		11	%
Cost of sales, exclusive of depreciation and amortization	111			103					331			298
Gross margin	59			54					178			160
Operating expenses	16			17					55			52
Depreciation and amortization	11			10					32			30
Operating profit	$	32		$	27		19	%	$	91		$	78		17	%
Margin %	18.8		%	17.2		%			17.9		%	17.0		%

	Quarter Ended September 30, 2018 vs. 2017				Nine Months Ended September 30, 2018 vs. 2017
	% Change		% Change		% Change		% Change
	Sales		Operating Profit		Sales		Operating Profit
Factors Contributing to Changes
Volume/Price	8	%	20	%	8	%	19	%
Cost pass-through	1	%	—	%	1	%	—	%
Currency	(1	)%	—	%	2	%	2	%
Acquisitions/divestitures	—	%	—	%	—	%	—	%
Other	—	%	(1	)%	—	%	(4	)%
	8	%	19	%	11	%	17	%

The following table provides sales by end-market:

	Quarter Ended September 30,						Nine Months Ended September 30,
	% of Sales				% Change*		% of Sales				% Change*
	2018		2017				2018		2017
Sales by End Markets
Manufacturing	13	%	11	%	31	%	12	%	11	%	23	%
Metals	8	%	8	%	1	%	8	%	9	%	(2	)%
Energy	18	%	19	%	4	%	19	%	19	%	5	%
Chemicals	2	%	2	%	(18	)%	2	%	2	%	(2	)%
Electronics	1	%	1	%	66	%	1	%	1	%	51	%
Healthcare	—	%	—	%	—	%	—	%	—	%	—	%
Food & Beverage	3	%	3	%	(11	)%	3	%	3	%	(1	)%
Aerospace	45	%	44	%	13	%	44	%	44	%	10	%
Other	10	%	12	%	(2	)%	11	%	11	%	3	%
	100	%	100	%			100	%	100	%

* Excludes impact of currency, natural gas/precious metals cost pass-through and acquisitions/divestitures

Surface Technologies segment sales increased $13 million, or 8% in the third quarter of 2018 and increased $51 million, or 11%, for the nine months ended September 30, 2018 as compared to the prior year. Currency translation decreased sales by 1% for the quarter and increased sales by 2% for the nine-month period. Cost pass-through increased sales by 1% in both the quarter and nine-month periods with minimal impact on operating profit. Excluding currency and cost pass-through, sales increased 8% in the quarter and nine-month periods due to higher volumes to the aerospace and manufacturing end-markets and higher price.

Surface Technologies segment operating profit increased $5 million, or 19% in the third quarter of 2018 and increased $13 million, or 17%, for the nine months ended September 30, 2018 as compared to the prior year. Currency translation had no

43

impact on operating profit for the quarter and increased operating profit by 2% for the nine-month period. Excluding currency, operating profit increased 19% for the quarter and 15% for the nine-month period due to increased volumes and price.

44

Currency

The results of Praxair’s non-U.S. operations are translated to the company’s reporting currency, the U.S. dollar, from the functional currencies. For most foreign operations, Praxair uses the local currency as its functional currency. There is inherent variability and unpredictability in the relationship of these functional currencies to the U.S. dollar and such currency movements may materially impact Praxair’s results of operations in any given period.

To help understand the reported results, the following is a summary of the significant currencies underlying Praxair’s consolidated results and the exchange rates used to translate the financial statements (rates of exchange expressed in units of local currency per U.S. dollar):

	Percentage of YTD 2018 Consolidated Sales		Exchange Rate for Income Statement		Exchange Rate for Balance Sheet
			Year-To-Date Average		September 30,	December 31,
Currency			2018	2017	2018	2017
Euro	14	%	0.84	0.90	0.86	0.83
Brazilian real	9	%	3.58	3.17	4.00	3.31
Canadian dollar	7	%	1.29	1.31	1.29	1.26
Chinese yuan	7	%	6.51	6.81	6.87	6.51
Mexican peso	5	%	19.00	18.82	18.72	19.66
Korean won	4	%	1,091	1,139	1,109	1,067
India rupee	3	%	67.07	65.22	72.49	63.87
Argentine peso (a)	1	%	23.86	16.19	41.25	18.65
British pound	1	%	0.74	0.78	0.77	0.74
Norwegian krone	1	%	8.03	8.29	8.15	8.20

(a) Effective July 1, 2018 Argentina was deemed a highly inflationary economy (see Note 2 to the condensed consolidated financial statements).

45

Liquidity, Capital Resources and Other Financial Data

The following selected cash flow information provides a basis for the discussion that follows:

(Millions of dollars)	Nine months ended September 30,
	2018			2017
NET CASH PROVIDED BY (USED FOR):
OPERATING ACTIVITIES
Net income (including noncontrolling interests)	$	1,451		$	1,259
Non-cash charges (credits):
Add: Depreciation and amortization	928			877
Add: Deferred income taxes	(6		)	22
Add: Share-based compensation	40			44
Add: Transaction costs and other charges, net of payments (a)	35			27
Net income adjusted for non-cash charges	2,448			2,229
Less: Working capital	(46		)	(147		)
Less: Pension contributions	(17		)	(14		)
Other	(36		)	137
Net cash provided by operating activities	$	2,349		$	2,205
INVESTING ACTIVITIES
Capital expenditures	(1,056		)	(972		)
Acquisitions, net of cash acquired	(6		)	(18		)
Divestitures and asset sales	77			22
Net cash used for investing activities	$	(985	)	$	(968	)
FINANCING ACTIVITIES
Debt increase (decrease) - net	(625		)	(502		)
Issuances (purchases) of common stock - net	68			79
Cash dividends - Praxair, Inc. shareholders	(712		)	(675		)
Noncontrolling interest transactions and other	(33		)	(85		)
Net cash provided by (used for) financing activities	$	(1,302	)	$	(1,183	)
Effect of exchange rate changes on cash and cash equivalents	$	(79	)	$	29
Cash and cash equivalents, end-of-period	$	600		$	607

(a) See Note 2 to the consolidated financial statements.

Cash Flow from Operations

Cash provided by operations of $2,349 million for the nine months ended September 30, 2018increased$144 million, or 7%, versus 2017. The increase was driven by higher net income adjusted for non-cash charges and lower working capital requirements, partially offset by timing of dividends from equity investments, primarily in China.

Praxair estimates that total 2018 required contributions to its pension plans will be in the range of $20 million to $25 million, of which $17 million has been made through September 30, 2018. At a minimum, Praxair contributes to its pension plans to comply with local regulatory requirements (e.g., ERISA in the United States). Discretionary contributions in excess of the local minimum requirements are made based on many factors, including long-term projections of the plans' funded status, the economic environment, potential risk of overfunding, pension insurance costs and alternative uses of the cash. Changes to these factors can impact the amount and timing of discretionary contributions from year to year.

46

Investing

Net cash used for investing of $985 million for the nine months ended September 30, 2018 increased $17 million versus 2017.

Capital expenditures for the nine months ended September 30, 2018 were $1,056 million, $84 million higher than the prior year. Capital expenditures related primarily to investments in new plant and production equipment for growth and density. Approximately 62% of the capital expenditures were in North America.

Acquisitions for the nine months ended September 30, 2018 and 2017 were $6 million and $18 million, respectively, and related to acquisitions of packaged gases business in North America.

Divestitures and asset sales for the nine months ended September 30, 2018 and 2017 were $77 million and $22 million, respectively. The 2018 period includes proceeds related to asset disposals primarily in North America.

Financing

Cash used by financing activities was $1,302 million for the nine months ended September 30, 2018. Cash dividends of $712 million were higher than the prior year due to a 5% increase in quarterly dividends per share from 78.75 cents per share to 82.5 cents per share. Net issuances of common stock decreased $11 million. Noncontrolling interest transactions and other for the nine months ended September 30, 2018 and 2017 were $33 million and $85 million, respectively. Amounts paid in 2017 include dividends paid to noncontrolling interests and repayment of project advances.

In March 2018, Praxair repaid $500 million of 1.20% rate notes that became due.

In June 2018, the company's $500 million 364-day revolving credit facility with a syndicate of banks expired and was not renewed.

On November 7, 2018, Praxair repaid $475 million of 1.25% rate notes that became due.

Praxair's debt-to-capital ratio was 53.3% at September 30, 2018 versus 56.1% at September 30, 2017. This decrease was primarily attributable to a reduction in net debt of $918 million and an increase in equity due to earnings net of dividends declared. See the "Non-GAAP Financial Measures" section below for definitions and reconciliations of these non-GAAP measures to reported GAAP amounts.

Debt Covenants

Praxair’s $2.5 billion senior unsecured credit facility and long-term debt agreements contain various covenants (refer to Note 5 to the condensed consolidated financial statements and Note 11 to the consolidated financial statements of Praxair’s 2017 Annual Report on Form 10-K). The only financial covenant requires Praxair not to exceed a maximum 70% leverage ratio, as defined in the agreements. For purposes of the leverage ratio calculation, consolidated shareholders' equity excludes changes in the cumulative foreign currency translation adjustments after June 30, 2011. At September 30, 2018 and December 31, 2017, the actual leverage ratio calculated in accordance with the agreements was 45% and 49%, respectively.

Legal Proceedings

See Note 12 to the condensed consolidated financial statements.

Non-GAAP Financial Measures

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 and operating performance. Special items which the company does not believe to be indicative of on-going business performance 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.

The non-GAAP measures in the following reconciliations are presented in the MD&A.

47

Adjusted Amounts

	Quarter Ended September 30,						Nine Months Ended September 30,
(Dollar amounts in millions, except per share data)	2018			2017			2018			2017
Adjusted Operating Profit
Reported operating profit	$	669		$	632		$	2,011		$	1,805
Add: Argentina currency devaluation	10			—			10			—
Add: Transaction costs and other charges	21			14			64			35
Total adjustments	31			14			74			35
Adjusted operating profit	$	700		$	646		$	2,085		$	1,840
Reported percent change	6		%				11		%
Adjusted percent change	8		%				13		%
Adjusted Net Pension and OPEB cost (benefit), excluding service cost
Reported net pension and OPEB cost (benefit), excluding service cost	$	6		$	6		$	10		$	(7	)
Less: Pension settlement charge	(4		)	(2		)	(4		)	(2		)
Adjusted net Pension and OPEB cost (benefit), excluding service cost	2			4			6			(9		)
Adjusted Income Taxes
Reported income taxes	$	156		$	162		$	462		$	468
Add: Cost reduction program	—			—			—			—
Add: Pension settlement charge	1			1			1			1
Add: Tax reform	—			—			—			—
Add: Transaction costs	2			1			7			1
Total adjustments	3			2			8			2
Adjusted income taxes	$	159		$	164		$	470		$	470

48

Adjusted Effective Tax Rate
Reported income before income taxes and equity investments	$	623		$	585		$	1,871		$	1,692
Add: Pension settlement charge	4			2			4			2
Add: Argentina currency devaluation	10			—			10			—
Add: Transaction costs	21			14			64			35
Total adjustments	35			16			78			37
Adjusted income before income taxes and equity investments	$	658		$	601		$	1,949		$	1,729
Reported effective tax rate	25.0		%	27.7		%	24.7		%	27.7		%
Adjusted effective tax rate	24.2		%	27.3		%	24.1		%	27.2		%
Adjusted Noncontrolling Interests
Reported noncontrolling interests	$	19		$	16		$	48		$	45
Add: Cost reduction program	—			—			(1		)	—
Adjusted Noncontrolling Interests	$	19		$	16		$	47		$	45
Adjusted Net Income - Praxair, Inc.
Reported net income - Praxair, Inc.	$	461		$	419		$	1,403		$	1,214
Add: Cost reduction program	—			—			1			—
Add: Pension settlement charge	3			1			3			1
Add: Argentina currency devaluation	10			—			10			—
Add: Transaction costs	19			13			57			34
Total adjustments	32			14			71			35
Adjusted net income - Praxair, Inc.	$	493		$	433		$	1,474		$	1,249
Reported percent change	10		%				16		%
Adjusted percent change	14		%				18		%

Adjusted Diluted Earnings Per Share
Reported diluted EPS	$	1.58		$	1.45	$	4.82		$	4.21
Add: Cost reduction program	—			—		—			—
Add: Pension settlement charge	0.01			—		0.01			—
Add: Tax reform	—			—		—			—
Add: Argentina currency devaluation	0.03			—		0.03			—
Add: Transaction costs	0.07			0.05		0.20			0.12
Total adjustments	$	0.11		$	0.05	$	0.24		$	0.12
Adjusted diluted EPS	$	1.69		$	1.50	$	5.06		$	4.33
Reported percent change	9		%			14		%
Adjusted percent change	13		%			17		%

49

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.

	Quarter Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
(Dollar amounts in millions)
Reported net income - Praxair, Inc.	$	461		$	419		$	1,403		$	1,214
Add: noncontrolling interest	19			16			48			45
Add: interest expense - net	40			41			130			120
Add: net pension and OPEB cost (benefit), excluding service cost	6			6			10			(7		)
Add: income taxes	156			162			462			468
Add: depreciation and amortization	306			298			928			877
EBITDA	$	988		$	942		$	2,981		$	2,717
Adjustments:
Add: Argentina currency devaluation	$	10		$	—		$	10		$	—
Add: Transaction costs	21			14			64			35
ADJUSTED EBITDA	$	1,019		$	956		$	3,055		$	2,752
Reported Sales	$	3,024		$	2,922		$	9,084		$	8,484
EBITDA Margin	32.7		%	32.2		%	32.8		%	32.0		%
Adjusted EBITDA Margin	33.7		%	32.7		%	33.6		%	32.4		%

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.

	Nine Months Ended September 30,
	2018			2017
(Dollar amounts in millions)
Debt	$	8,312		$	9,237
Less: cash and cash equivalents	(600		)	(607		)
Net debt	7,712			8,630
Equity and redeemable noncontrolling interests
Redeemable noncontrolling interests	15			11
Praxair, Inc. shareholders’ equity	6,232			6,256
Noncontrolling interests	503			475
Total equity and redeemable noncontrolling interests	6,750			6,742
Capital	$	14,462		$	15,372
DEBT-TO-CAPITAL RATIO	53.3		%	56.1		%

50

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: regulatory or other limitations imposed as a result of the business combination that could reduce anticipated benefits of the transaction; 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 which should be reviewed carefully. Please consider the company’s forward-looking statements in light of those risks.

51

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Refer to Item 7A. to Part II of Praxair’s 2017 Annual Report on Form 10-K for discussion.

Item 4. Controls and Procedures

(a) Based on an evaluation of the effectiveness of Praxair’s disclosure controls and procedures, which was made under the supervision and with the participation of management, including Praxair’s principal executive officer and principal financial officer, the principal executive officer and principal financial officer have each concluded that, as of the end of the quarterly period covered by this report, such disclosure controls and procedures are effective in ensuring that information required to be disclosed by Praxair in reports that it files under the Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and accumulated and communicated to management including Praxair’s principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.

(b) There were no changes in Praxair’s internal control over financial reporting that occurred during the quarterly period covered by this report that have materially affected, or are reasonably likely to materially affect, Praxair’s internal control over financial reporting.

52

PART II - OTHER INFORMATION

Praxair, Inc. and Subsidiaries

Item 1. Legal Proceedings

See Note 12 to the condensed consolidated financial statements for a description of current legal proceedings.

Item 1A. Risk Factors

There have been no material changes to the risk factors disclosed in Item 1a to Part I of Praxair’s 2017 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Equity Securities- Certain information regarding purchases made by or on behalf of the company or any affiliated purchaser (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934, as amended) of its common stock during the quarter ended September 30, 2018 is provided below:

Period	Total Number of Shares Purchased (Thousands)	Average Price Paid Per Share		Total Numbers of Shares Purchased as Part of Publicly Announced Program (1) (Thousands)	Approximate Dollar Value of Shares that May Yet be Purchased Under the Program (2) (Millions)
July 2018	—	$	—	—	$	1,579
August 2018	2	$	151.89	2	$	1,579
September 2018	—	$	—	—	$	1,579
Third Quarter 2018	2	$	151.89	2	$	1,579

(1) On January 28, 2014, the Company's board of directors approved the repurchase of $1.5 billion of its common stock ("2014 program") which could take place from time to time on the open market (which could include the use of 10b5-1 trading plans) or through negotiated transactions, subject to market and business conditions.

(2) As of June 30, 2018, the Company purchased $1,421 million of its common stock pursuant to the 2014 program, leaving an additional $79 million remaining authorized under the 2014 program. The 2014 program does not have any stated expiration date. In addition, on July 28, 2015, the Company’s board of directors approved the repurchase of $1.5 billion of its common stock (“2015 program”) which could take place from time to time on the open market (which could include the use of 10b5-1 trade plans) or through negotiated transactions, subject to market and business conditions. The 2015 program does not have any stated expiration date. The 2015 program is in addition to the 2014 program.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

53

Item 6. Exhibits

(a)	Exhibits
	**2.1	Sale and Purchase Agreement, dated July 5, 2018, by and among Praxair, Inc., Taiyo Nippon Sanso Corporation (“Taiyo”), and Linde plc, a public limited company incorporated under the laws of Ireland with respect to the sale of a majority of Praxair’s businesses in Europe to Taiyo in connection with the Business Combination Agreement dated as of June 1, 2017, as amended, to effect a combination of the businesses of Linde AG and Praxair, Inc., is filed herewith.
	31.01	Rule 13a-14(a) Certification
	31.02	Rule 13a-14(a) Certification
	32.01	Section 1350 Certification (such certifications are furnished for the information of the Commission and shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act).
	32.02	Section 1350 Certification (such certifications are furnished for the information of the Commission and shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act).
	101.INS	XBRL Instance Document
	101.SCH	XBRL Taxonomy Extension Schema
	101.CAL	XBRL Taxonomy Extension Calculation Linkbase
	101.LAB	XBRL Taxonomy Extension Label Linkbase
	101.PRE	XBRL Taxonomy Extension Presentation Linkbase
	101.DEF	XBRL Taxonomy Extension Definition Linkbase

*    Indicates a management contract or compensatory plan or arrangement.

** Certain schedules or similar attachments have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Registrant agrees to furnish supplemental copies of any of the omitted schedules or attachments upon request by the SEC.

54

SIGNATURE

Praxair, Inc. and Subsidiaries

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PRAXAIR, INC.
	(Registrant)
Date: November 9, 2018	By: /s/ Matthew J. White
	Matthew J. White
	Chief Financial Officer
	(On behalf of the Registrant
	and as principal financial officer)

55

EX-2.1

EXECUTION VERSION

EUROPE

SALE AND PURCHASE AGREEMENT

5 JULY, 2018

Table of Contents

1. Definitions, Interpretation6

2. Sale and Purchase21

3. Intentionally Left Blank22

4. Purchase Price, Payments22

5. Settlement of Inter-Company Relations24

6. Closing Statement, Estimated Closing Statement and Adjustment Payments26

7. Replacement of Third Party Assurances29

8. Closing Conditions30

9. Changes to Perimeter35

10. Closing, Closing Actions37

11. Seller's Warranties39

12. Seller's Indemnities40

13. Taxes42

14. Purchaser's Warranties56

15. Intellectual Property, Branding58

16. Pre-Closing Covenants63

17. Post-Closing Covenants68

18. PLC Guarantee69

19. Conflict with other Agreements70

20. Responsibility after Closing71

21. Announcements, Confidentiality71

22. Non-Solicit74

23. Notices, Agent for Service of Process75

24. Whole Agreement, Remedies78

25. Miscellaneous80

26. Invalidity81

27. Governing Law, Jurisdiction82

Schedules and Annexes

Schedule 1	Target Companies and Ownership Structure
Schedule 2	Financial Line Items
Schedule 3	Apportioning between DivestCo Shares
Schedule 4	Principles of Closing Statement
Schedule 5	Form of (Estimated) Closing Statement
Schedule 6	Closing Actions
Schedule 7	Seller's Warranties
Schedule 8	Remedies and Limitations
Schedule 9	Third Party Assurances Seller's Group
Schedule 10	Target Company Third Party Assurances
Schedule 11	Seller Pre-Closing Steps
Annex A to Schedule 11	ISO Helium Containers

Sale and Purchase Agreement

between

1. Praxair, Inc., a corporation organised under the laws of Delaware, USA, having its registered address at 10 Riverview Drive, Danbury, Connecticut, CT06810, United States of America,

- herein "Praxair" or "Seller" -

2. Taiyo Nippon Sanso Corporation, a corporation organised under the laws of Japan, having its registered address at 1-3-26 Koyama, Shinagawa-ku, Tokyo, 142-8558 Japan,

- herein "Purchaser" -

and

3. Linde Public Limited Company, a public limited company organised under the laws of Ireland, having its business address at The Priestley Centre, 10 Priestley Road, The Surrey Research Park, Guildford, Surrey GU2 7XY, United Kingdom,

- herein "PLC" -

- each of Praxair, Purchaser and PLC herein also referred to individually as a "Party" and collectively as "Parties" -

RECITALS

(A) Whereas, inter alia, Linde, Praxair and PLC have entered into a business combination agreement as of 1 June 2017, as amended, to effect a strategic combination of the businesses of Linde and Praxair ("BCA" and the transactions contemplated by the BCA the "Business Combination").

(B) WHEREAS, in connection with the Business Combination,Praxair wishes to procure the sale and transfer of the DivestCos from Local Sellers to Purchaser and Purchaser wishes to acquire the DivestCos from the Local Sellers in each case in accordance with the terms and conditions of this

sale and purchase agreement ("Agreement"). The transactions contemplated by this Agreement and the Transaction Documents are referred to as the "Transaction".

(C) WHEREAS, PLC is willing to guarantee as of the completion of the Business Combination the performance of any obligations which Praxair has under this Agreement.

NOW, THEREFORE, the Parties agree as follows:

1. Definitions, Interpretation

1. Definitions

In this Agreement, the following terms shall have the meaning ascribed to them in this clause 1.1. Where there is any inconsistency between the definitions set out in this clause 1.1 and the definitions set out in any other clause or Schedule, then, for the purposes of construing such other clause or Schedule, the definitions set out in such other clause shall prevail.

Accounting Firm has the meaning given in Schedule 4;

Accounts Relief means a Relief which has been taken into account in calculating Working Capital in the Closing Statement;

Acquisition Proposal means any inquiry, offer, proposal or indication of interest (other than this Agreement or any other inquiry, offer, proposal or indication of interest by Purchaser or any of its Affiliates) contemplating, relating to or otherwise involving any acquisition, sale, assignment or transfer of the DivestCo Shares and/or the Business;

Actual Tax Liability has the meaning given in the definition of Tax Liability under clause 1.1;

Adjustment Payment(s) has the meaning given in clause 6.3;

Affiliate means, in respect of any person, any other person directly or indirectly having Control over, or being under the Control of, or being under common Control with the first person;

Agreed Form means, in relation to a document, the form of that document as initialled on or prior to the date of this Agreement for the purpose of identification by or on behalf of Seller and Purchaser (in each case with such amendments as may be agreed in writing by or on behalf of Seller and Purchaser);

Agreement has the meaning given in Recital (B);

Anti-Corruption Laws means applicable laws which prohibit the corrupt making of any offer, any payment or gift, any promise to pay or give, or any authorisation of the payment of any money or giving of anything of value to any official of any Governmental Entity made for the purposes of (i) influencing any act or decision of such official in his official capacity, (ii) inducing such official to do or omit to do any act in violation of the lawful duty of such official, or (iii) securing any improper advantage, in each case, to assist Target Companies or Controlled JVCos in obtaining or retaining business for or with, or directing business to, any person;

Appointment Date has the meaning given in Schedule 4;

Auditors means the auditors for the time being of the relevant Target Company;

BCA has the meaning given in Recital (A);

BCA Clearance Condition has the meaning given in clause 8.1(b);

BCA Commitments has the meaning given in clause 8.2(a);

Business Combination has the meaning given in Recital (A);

Business Day means a day, other than a Saturday or Sunday or public holiday in Tokyo, Japan, New York, NY, USA, Munich, Germany, or London, United Kingdom, on which banks are open in Tokyo, New York, NY, Munich and London for general commercial business;

Business has the meaning given in Schedule 1;

Business Intellectual Property has the meaning given in Schedule 7;

Cash means, in relation to each Target Company, the aggregate of its cash position all as identified by the line items so named in Schedule 2;

Claim means any claim by Purchaser under or in connection with this Agreement or any other Transaction Document (other than the Product Supply Agreements and the Transitional Services Agreements), excluding a Tax Claim;

Closing means closing of the sale and purchase of the DivestCo Shares in accordance with the provisions of this Agreement;

Closing Actions means the obligations of Seller and Purchaser pursuant to clause 10.3;

Closing Conditions has the meaning given in clause 8.1;

Closing Date has the meaning given in clause 10.1;

Closing Statement has the meaning given in clause 6.1;

Combined Carve Out Financial Statements means the carve out combined financial statements (balance sheet, p&l, comprehensive income, cash flow statement and notes) of the Business as of 31 December 2016 and 31 December 2017 and for the years-ended 31 December 2015, 31 December 2016 and 31 December 2017, which have been prepared under US-GAAP in force at the date of such financial statements and audited by PricewaterhouseCoopers, and as of and for the quarters ended 31 March 2017 and 31 March 2018 which have been reviewed byPricewaterhouseCoopers;

Confidentiality Agreement has the meaning given in clause 21.2(a);

Control means, in respect of another person, if a controlling person (a) owns, directly or indirectly, more than 50% of the share capital of the person, or (b) has the power to cast or control more than 50% of the maximum number of votes that may be cast at a general meeting of the person, or (c) otherwise possesses, directly or indirectly, the power to determine the composition of the majority of, or the outcome of decisions on financial or operating policies by, the board of directors or any other governing authority of the controlled person, and the terms "Controlling" and "Controlled" shall be construed accordingly;

Controlled JVCo means any JVCo Controlled by Seller or any other member of Seller's Group;

Costs means charges, costs (including reasonable legal costs) and expenses, in each case of any nature whatsoever;

Damages Payment has the meaning given in Schedule 8;

Data Protection Legislation means all international, European Union, national, state, federal, regional or local laws (including common law, statute law, civil and criminal law) which are in force and binding on the date of this Agreement, to the extent that they relate to personal data, personal information, data protection and privacy in any jurisdiction, including Regulation (EU) 2016/679 (General Data Protection Regulation) and its predecessor legislation;

Data Room means the Planet VDR online data room hosted by the provider Merrill Corporation as at July 2, 2018, 4:19 pm British Summer Time, comprising the documents made available by Seller

to Purchaser, the content of which is recorded on two identical and change-resistant USB flash drives prepared by Merrill Corporation and is listed in the data room index attached to the Disclosure Letter;

Deferred Taxes has the meaning ascribed to such term in ASC 740 "Income Taxes";

Designated Purchaser has the meaning given in clause 10.5;

Disclosed has the meaning given in Schedule 8;

Disclosure Letter means the letter from Seller to Purchaser executed and delivered immediately before the execution of this Agreement;

DivestCo Shares has the meaning given in clause 2.1;

DivestCo Subsidiaries has the meaning given in Schedule 1;

DivestCos has the meaning given in Schedule 1;

Employees means persons employed by the relevant Target Companies under a contract of employment on the date hereof together with those that join the Target Companies after the date hereof but prior to the Financial Closing Date, but excluding those that have ceased to be employed by any Target Company prior to the Financial Closing Date;

Enterprise Purchase Price has the meaning given in clause 4.1;

Environment means all or any of the following: air, water, soil, soil gas, land, biota, buildings and installations;

Environmental Laws means all applicable international, European Union, national, state, federal, regional or local laws (including common law, statute law, civil and criminal law) which are in force and binding as of the date hereof and relating to Environmental Matters;

Environmental Licence means any permit, licence, authorisation, consent, exemption, registration, certificate, notification or other approval required in relation to the occupation or use of any of the Properties or to the operations of any of the Target Companies by any Environmental Law;

Environmental Matters means any of the following:

(a)pollution, contamination or protection of the Environment;

(b) the production, generation, manufacture, processing, handling, presence, use (including as a building material), treatment, supply, sale, purchase, transport, disposal, release, spillage, discharge, leak, emission, leaching or migration of Hazardous Materials or waste;

(c) exposure of any human or any other living organism to Hazardous Materials or waste or other matters relating to human health and safety;

Environmental Warranties means the Warranties contained in paragraph 1.14 of Schedule 7;

Environmental Warranty Claim means any Warranty Claim of Purchaser for breach of the Environmental Warranties;

Estimated Closing Statement has the meaning given in clause 6.2;

Exchange Rate means, with respect to a particular currency for a particular day, the rate of exchange for that currency into EUR on such date as published by Reutersin respect of that currency for such date;

Excess Recovery has the meaning given in Schedule 8;

Final Inter-Company Payment Amount has the meaning given in clause 5.4;

Final Purchase Price has the meaning given in clause 4.1;

Financial Closing Date has the meaning given in clause 10.1 provided that references to the Financial Closing Date shall be references to a moment in time not taking into account the economic effects of any Closing Actions;

Financial Debt means in relation to each Target Company the aggregate of its borrowings and non-trading indebtedness position, all as identified by the line items so named in Schedule 2;

Fundamental Warranty Claim means any Warranty Claim of Purchaser for breach of any of the Fundamental Warranties;

Fundamental Warranties means the Warranties contained in paragraphs 1.1(a), 1.1(b), 1.1(f), 1.1(g), 1.1(i), 1.1(j) (Corporate Authorisations) and 1.11(a) and 1.11(b) (Insolvency) of Schedule 7;

Further Divestment has the meaning given in clause 9.1 and Further Divestments shall be construed accordingly;

Governmental Entity means any supra-national, national, state, municipal or local government (including any subdivision, court, administrative agency or commission or other authority thereof) or any quasi-governmental or private body exercising any regulatory, taxing, importing or other governmental or quasi-governmental authority, including the European Union;

Hazardous Material means any wastes, pollutants, contaminants, chemicals, or substances or preparations, or any other natural or artificial substances (whether solid, liquid or gaseous) that are defined, listed or otherwise regulated by any Governmental Entity or by an Environmental Law (whether specifically or generally) as hazardous, toxic, pollutant or contaminant, or are otherwise capable of causing harm to the Environment;

Income, Profits or Gains means any income, profits, gains and any other consideration, value, receipt or measure by reference to which Tax is chargeable or assessed;

Initial Inter-Company Payment Amount has the meaning given in clause 5.5;

Initial Purchase Price has the meaning given in clause 4.2;

Intellectual Property Rights means patents, trademarks, service marks, business names, company names, trade names, logos, get-up, URLs, domain names, rights in designs, copyrights (including rights in computer software), ancillary copyrights, and use rights in copyrighted works;

Inter-Company Payables means in relation to each Target Company the aggregate of its financial indebtedness payables to any member of Seller's Group including any accrued and unpaid interest thereon identified by the line items so named in Schedule 2, but excluding Trade Payables;

Inter-Company Receivables means, in relation to each Target Company, the aggregate of its financial indebtedness receivables from any member of Seller's Group including any accrued and unpaid interest thereon identified by the line items so named in Schedule 2, but excluding Trade Receivables;

Inventory means the aggregate amount of inventory of each Target Company identified by the line items so named in Schedule 2 in each case net of reserves for excess and obsolescence and in accordance with US-GAAP as in effect at the Financial Closing Date;

IP Agreement means the executed or Agreed Form (as the case may be) intellectual property agreement with Praxair;

IT Systems means the computer and telecommunication hardware systems, networks, servers, PCs or other peripheral equipment used by the Target Companies;

JVCos has the meaning given in Schedule 1;

Key Employees means an Employee who was grade 13 or above as at Closing;

Known has the meaning given in Schedule 8;

Linde means Linde Aktiengesellschaft, a stock corporation (Aktiengesellschaft) organised under the laws of the Federal Republic of Germany, registered with the commercial register (Handelsregister) of the local court (Amtsgericht) of Munich, Germany under registration number HRB 169850, having its registered address (Geschäftsanschrift) at Klosterhofstraße 1, 80331 Munich, Germany;

Local Transfer Agreements means the sale and purchase agreements to be entered into by the relevant Local Seller and Purchaser and/or Designated Purchaser, in the Agreed Form;

Local Sellers has the meaning given in Schedule 1;

Long-Stop Date has the meaning given in clause 8.2(a);

Material Agreement means:

(a) any agreement between any Target Company on the one hand and a customer or supplier on the other hand for the provision of products or services by or to any of the Target Companies with annual expenditures or annual revenues in excess of two million (2,000,000) EUR;

(b) any agreement under which any Target Company has sold or disposed of any company or business where it remains subject to any liability (whether contingent or otherwise) which exceeds, or is likely to exceed, two million (2,000,000) EUR; and

(c) any agreement which is a partnership or profit (or loss) sharing agreement to which a Target Company or Controlled JVCo is a party, which relates to the Business;

(d) any agreement to which any Target Company is a party which is not in the ordinary course of business or is not on arm's length terms and which, in each case, has a contractual volume (revenue, expenditure, consideration etc.) in excess of five million (5,000,000) EUR in the aggregate or per year; or

(e) any agreement to which a Target Company or Controlled JVCo is a party which restricts or is likely to restrict any Target Company or Controlled JVCo's freedom to carry on the whole, or any part, of the Business in a country in which the Business is not currently conducted.

Material Litigation has the meaning given in Schedule 7;

Names has the meaning given in the definition of Seller's Trademarks under clause 1.1;

NoxBox Agreement means the agreement documenting the NoxBox Heads of Terms;

NoxBox Heads of Terms means the heads of terms in respect of a non-exclusive transitional supply agreement with Purchaser in relation to NOxBOX Ltd. medical devices, in the Agreed Form;

Objection Notice has the meaning given in Schedule 4;

Overprovision means the amount by which any liability or provision for a Tax which was taken into account in calculating Working Capital in the Closing Statement turns out to be overstated (except to the extent that any overstatement results (a) from the utilisation of a Purchaser's Relief or (b) from any of the acts, transactions or events, or arises in any of the circumstances, referred to in sub-paragraphs (iii), (iv), (v), (x), (xi), (xii), (xiii) or (xv) of clause 13.2(a) (deeming any reference in such sub-paragraphs to a Tax Liability to be replaced for the purposes of this definition with a reference to an overstatement)), applying the accounting principles set out in Schedule 4;

Party and Parties has the meaning given at the beginning of this Agreement;

Permitted Actions has the meaning given in clause 16.1(a);

Permitted Encumbrances means any and all encumbrances which are (i) for tax, assessments, or governmental charges or levies not yet due and delinquent, (ii) statutory encumbrances of carriers, warehousemen, mechanics and the like arising in the ordinary course of business, (iii) easements, encroachments and other minor imperfections of title of a Property arising in the ordinary course of business, (iv) retention of title provisions, or (v) licences to use Intellectual Property Rights, to the extent arising in the ordinary course of business, in any such case of (i) to (v), to the extent that such encumbrances do not have a material adverse effect on the conduct of the Business;

PLC has the meaning given at the beginning of this Agreement;

PLC Guarantee has the meaning given in clause 18;

Praxair has the meaning given at the beginning of this Agreement;

Post-Closing Relief means any Relief that arises to a Target Company as a result of or in connection with any:

(a) event that occurred after the Financial Closing Date if and to the extent the underlying Tax is a Tax which is specifically assessed as a result and in respect of such taxable event and not on an on-going basis in respect of a Tax assessment period (e.g., transfer Taxes); or

(b) period of time ending after the Financial Closing Date (in the case of any Tax based on income, profit, gain, turnover, sales, gross receipts, wage, capital expenditure, expense or any similar Tax base);

Pre-Financial Closing Date Tax Period means any tax assessment period ending on or before the Financial Closing Date;

Primary Person has the meaning given in clause 13.1(b);

Product Supply Agreements means the executed or Agreed Form (as the case may be) product supply agreements relating to the Business;

Properties means land and buildings owned or leased by any Target Company which are material to the Business;

Provider has the meaning given in Schedule 8;

Purchaser has the meaning given at the beginning of this Agreement;

Purchaser Group means Purchaser and its Affiliates from time to time, including the Target Companies and the JVCos from Closing;

Purchaser's Relief means any:

(a) Accounts Relief;

(b) Post-Closing Relief; or

(c) Relief arising to any member of Purchaser's Tax Group (other than the Target Companies) at any time if and to the extent such Relief does not relate to any Tax Liability of Seller's Group;

Purchaser's Representatives has the meaning given in clause 11.3;

Purchaser's Tax Group means Purchaser and any company in the same Tax Group from time to time;

Purchaser's Warranties has the meaning given in clause 14;

Put Option has the meaning given in clause 9.2 and Put Options shall be construed accordingly;

Put Option Exercise Notice has the meaning given in clause 9.3;

Put Option Effective Date has the meaning given in clause 9.4;

Recipient has the meaning given in Schedule 8;

Records has the meaning given in clause 17.1(a);

Regulatory Permit has the meaning given in clause 16.2;

Relevant Tax Return has the meaning given in clause 13.8(c);

Relevant Tax Matter has the meaning given in clause 13.8(a);

Relevant Tax Proceeding has the meaning given in clause 13.8(e);

Relevant Territory means the territories of Germany, Spain, Italy, Belgium, Denmark, France, the Netherlands, Norway, Poland, Portugal, Republic of Ireland, Singapore (but only with respect to DivestCo 3 Subsidiary 4), Sweden and the United Kingdom;

Relief means any relief, loss, allowance, credit, deduction, exemption or set-off in respect of any Tax or relevant to the computation of any Income, Profits or Gains for the purposes of any Tax, or any right to a repayment of or saving of Tax (including any repayment supplement or interest paid by any Tax Authority), and:

(a) any reference to the use or set-off of a Relief shall be construed accordingly and shall include use or set-off in part; and

(b) any reference to the loss of a Relief (including the loss of any Accounts Relief, Post-Closing Relief and any other defined Relief) shall include the absence, failure to obtain, non-existence, non-availability, disallowance, withdrawal, claw-back or cancellation of any Relief, or its utilisation or set-off by any person other than a member of Purchaser's Tax Group and shall

also include this Relief being available only in a reduced amount and "lost" as it relates to a Relief shall be construed accordingly;

Repeated Warranties means the Fundamental Warranties and the Warranties contained in paragraph 1.2(b)(iii)-(vi) (Financial Matters), 1.5(a) and 1.5(b) (Compliance with Law) and 1.6 (Special Regulatory Matters) of Schedule 7;

Rivoira Indemnity has the meaning given to that term in clause 12.3;

Rivoira Share Swap means the agreement dated 5 December, 2017 and made between Rivoira S.p.A., Siad S.p.A., Rivoira Pharma S.r.l., Praxair Italia S.r.l., Flow Fin S.p.A. and Samac S.r.l.;

Seller has the meaning given at the beginning of this Agreement;

Seller's Images means the images owned or used by any member of Seller's Group;

Seller's Indemnities has the meaning given to that term in clause 12.3;

Seller's Group means Praxair and entities under its Control from time to time, but excluding Target Companies and JVCos;

Seller's Knowledge means the actual knowledge, as at the date of this Agreement of the directors (or members of corporate bodies similar to a board of directors, if any) of the Local Sellers after having made due and careful inquiry with the members of the executive or management board of the relevant Target Company directly held by such Local Seller, and no other knowledge of members of Seller's Group or Seller's Representatives (whether actual or constructive) shall be imputed to Seller for the purposes of the statement concerned;

Seller's Records has the meaning given in clause 17.2(a);

Seller's Representatives has the meaning given in clause 11.3;

Seller's Trademarks means any trademarks, service marks, business names, company names, trade names, logos, get-up, URLs or domain names ("Names") owned or registered by any member of Seller's Group, including any such Names which comprise or include (in whole or in part) any of (or any combination of) the designation "Praxair" or any other designation of any member of Seller's Group, any similar reference to any Names incorporating, relating to, or combining the designation

"Praxair" or any other designation of any member of Seller's Group, any abbreviations thereof and any word or logo which in the reasonable opinion of Seller is similar thereto;

Shared Seller's Images means the Seller's Images used in the Business by any Target Company as of the Closing Date;

Shared Seller's Trademarks means the Seller's Trademarks used in the Business by any Target Company as of the Closing Date;

SPA Clearance Condition has the meaning given in clause 8.1(c);

Spanish Contractor Indemnity has the meaning given to the term in clause 12.1;

Storage Agreements means the agreements documenting the Storage Heads of Terms;

Storage Heads of Terms means the heads of terms in respect of the agreements between Praxair Gas UK Limited and a member of Seller's Group providing for access to Praxair Gas UK Limited's terminal and storage facilities at the Port of Tilbury, Essex, England, Tees Offshore Base Middlesbrough and, when constructed, Warrenpoint Harbour Estate, Warrenpoint, Northern Ireland and any ancillary assets, in the Agreed Form;

Straddle Period has the meaning given in clause 13.6;

Surviving Provisions means clauses 1 (Definitions and Interpretation), 21 (Announcements, Confidentiality), 23 (Notices, Agent for Service of Process), 24 (Whole Agreement), 25 (Miscellaneous), 26 (Invalidity) and 27 (GoverningLaw, Jurisdiction);

Target Companies has the meaning given in Schedule 1;

Target Working Capital has the meaning given in clause 4.1;

Tax means any form of taxation, levy, duty, charge, tariff, impost, fee, deduction or withholding (including in all cases advance payments of the same) imposed by any Governmental Entity (the "Tax Authority") in any jurisdiction by reference to income, gains, profits, value added, exchange, loans, excise, customs, stamp, transfer, property, capital, use, real estate, sales, payroll, employment, ad valorem, franchise, license, freight, conveyance (including transfer conveyance of real property), documentary, capital gains, gross income, gross receipts or otherwise, in each case together with any related fine, penalty, surcharge or interest imposed by any Tax Authority, in each case (but excluding

the reductions of loss carry-forwards, interest carry-forwards and/or Deferred Taxes and deferred Tax assets defined as such under the accounting principles and methodology set out in Schedule 4, except where sub-paragraph (b) or (c) of the definition of Tax Liability applies);

Tax Authority has the meaning given in the definition of Tax under clause 1.1;

Tax Claim means a claim by Purchaser for a payment to be made by Seller to Purchaser pursuant to the covenant at clause 13.1;

Tax Claim Notice has the meaning given in clause 13.2(b);

Tax Fact Book means the document named "Project Planet Tax Fact Book" provided in the Data Room under folder "Transaction Documents", reference 9.1;

Tax Group means those companies treated for the purposes of determining the amount of or liability for or relief from any Tax as being members of the same group of companies or fiscal unity;

Tax Liability means:

(a) a liability to make an actual payment or increased payment of, or in respect of, or on account of, Tax (including making a payment in settlement of a Tax liability) ("Actual Tax Liability"), in which case the amount of the Tax Liability shall be the amount of the actual payment or increased payment;

(b) the loss (otherwise than, for the avoidance of doubt, by utilisation or set off) of an Accounts Relief, in which case the amount of the Tax Liability shall be the amount of Tax that would have been saved but for such loss (assuming that each Target Company had used the Relief in full and that, to the extent that there is an Actual Tax Liability as a result of the loss, the Tax would have been charged at the Tax rates applying to that period and, where there is no Actual Tax Liability, the Tax that would have been saved would have been charged at the Tax rates current at Closing) or, where the Relief is a right to repayment of Tax, the amount of the repayment;

(c) the use or setting off of any Purchaser's Relief in circumstances where, but for such use or setting off, a Target Company would have had an Actual Tax Liability in respect of which Seller would have been liable under clause 13, in which case the amount of the Tax Liability shall be the amount for which Seller would have been liable under clause 13 but for such set-off or utilisation;

Tax Refund means any repayment or reimbursement of any Tax and any supplement or interest thereon paid by any Tax Authority;

Tax Return means any return, declaration, report, claim for refund, notice, form or information relating to any Tax, including any schedule or attachment thereto;

Tax Saving has the meaning given in clause 13.2(a)(ii);

Tax Warranty Claim means any Warranty Claim of Purchaser for breach of the Tax Warranties;

Tax Warranties means the Warranties contained in paragraph 1.17 of Schedule 7;

Third Party Assurances means all guarantees, bonds, sureties, indemnities, counter-indemnities, letters of comfort, letters of credit or any similar assurance given (i) to a third party by a Target Company or JVCo in respect of any obligation of a member of Seller's Group; or (ii) to a third party by a member of Seller's Group in respect of any obligation of a Target Company or JVCo;

Third Party Claim has the meaning given in Schedule 8;

Third Party Indemnity Claim has the meaning given in clause 12.4;

Third Party Right means any right to acquire, option, mortgage, charge, pledge, lien or encumbrance and any agreement or obligation to create any of the foregoing, in each case, other than Permitted Encumbrances;

Third Party Sum has the meaning given in Schedule 8;

Trade Payables means amounts payable in respect of trade creditors by a Target Company all as identified in the line items named as Working Capital or NWC in Schedule 2;

Trade Receivables means amounts receivable in respect of trade debtors of a Target Company all as identified in the line items named as Working Capital or NWC in Schedule 2;

Transaction has the meaning given in Recital (B);

Transaction Documents means this Agreement, the Local Transfer Agreements, the Disclosure Letter, the Transitional Services Agreements, the IP Agreement, the Product Supply Agreements and any other documents required under this Agreement whether executed, in Agreed Form or yet to be finalised;

Transitional Services Agreements means the executed or Agreed Form (as the case may be) transitional services agreements in respect of the provision of certain transitional services (i) by members of Seller's Group for the benefit of Target Companies and JVCos in relation to the Business and / or (ii) by the Target Companies for the benefit of members of Seller's Group in relation to the business of members of Seller's Group;

Uerdingen Indemnity has the meaning given to that term in clause 12.2;

Unconditional Date has the meaning given in clause 8.4;

US-GAAP means generally accepted accounting principles and practices in the United States of America as in effect from time to time;

VAT means value added Tax as provided for in Council Directive 2006/112/EC or any national legislation implementing the same and any similar sales or turnover Tax;

Venator means Huntsman P&A UK Ltd;

Warranties has the meaning given in clause 11.1(a);

Warranty Claim means any claim of Purchaser for breach of a Warranty (excluding, for the avoidance of doubt, any Tax Claims);

Working Capital or NWC means, in relation to each Target Company, the aggregate amount of Inventory plus Trade Receivables minus Trade Payables plus Tax assets minus Tax liabilities, all as identified by the line items so named in Schedule 2; and

Working Hours means (i) 9.30 a.m. to 5.30 p.m. London time on a Business Day when the term refers to delivery or receipt of any notices and (ii) 9.30 a.m. to 5.30 p.m. in the relevant location on a Business Day in any other case such term is used herein.

2. Interpretation

In this Agreement, unless the context otherwise requires:

(a) references to a person include any individual, firm, body corporate (wherever incorporated), government, state or agency of a state or any joint venture, association, partnership, works council or employee representative body (whether or not having separate legal personality);

(b) headings do not affect the interpretation of this Agreement; the singular shall include the plural and vice versa; and references to one gender include all genders;

(c) references to any English legal term or concept shall, in respect of any jurisdiction other than England, be construed as references to the term or concept which most nearly corresponds to it in that jurisdiction;

(d) references to "EUR" are references to the single currency of the member states of the European Union that have a single currency as their lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union;

(e) references to a time of day shall be construed as references to London time unless set out otherwise explicitly herein;

(f) references to a document shall be construed as references to that document as amended, varied or novated from time to time;

(g) references to the words "herein", "hereof", "hereto" and "hereunder" and words of similar meaning when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement;

(h) references to any statute or statutory provision shall, unless stated otherwise herein, be construed as a reference to the same as it may have been, or may from time to time be, amended, modified or re-enacted; and

(i) any phrase introduced by the terms "including", "include", "in particular" or any similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms.

3. Schedules

The Schedules form an integral part of this Agreement and shall be construed and shall have the same force and effect as if expressly set out in the body of this Agreement.

2. Sale and Purchase

1. Sales Procurement

Praxair will procure, subject to the terms and conditions of this Agreement, the sale and transfer with effect as from Closing from the relevant Local Sellers to Purchaser and/or Designated Purchasers in the proportions (if any) as set out in Schedule 1, of all the issued shares in the capital of the DivestCos held by the Local Sellers (the "DivestCo Shares").

2. Purchaser's Purchase Undertaking

Purchaser undertakes, subject to the terms and conditions of this Agreement, to purchase and acquire, directly itself or indirectly through Designated Purchasers the DivestCo Shares, with effect as from Closing.

3. Scope of Sale and Transfer

The DivestCo Shares, shall be sold and transferred with full title guarantee free from any Third Party Rights and together with all rights attaching to them at Closing including the right to receive all distributions and dividends declared, paid or made in respect of the relevant DivestCo Shares, after Closing.

3. Intentionally Left Blank

4. Purchase Price, Payments

1. Final Purchase Price

The consideration for the purchase of the DivestCo Shares ("Final Purchase Price") shall be the amount in EUR which results from taking five billion (5,000,000,000) EUR ("Enterprise Purchase Price") and:

(a) subtracting the aggregate of the Financial Debt as at the Financial Closing Date; and

(b) adding the aggregate of the Cash as at the Financial Closing Date; and

(c) subtracting the amount, if any, by which the aggregate of the Working Capital as at the Financial Closing Date falls short of the Target Working Capital; or

(d) adding the amount, if any, by which the aggregate of the Working Capital as at the Financial Closing Date exceeds the Target Working Capital.

The target of the working capital is equal to sixty one million thirty five thousand (61,035,000) EUR ("Target Working Capital").

The Final Purchase Price shall be calculated after Closing by adjusting the Initial Purchase Price in accordance with clause 6.

2. Initial Purchase Price

At Closing, Purchaser shall pay to Seller the amount in EUR ("Initial Purchase Price") which is equal to the Enterprise Purchase Price adjusted as set out in clause 4.1 by using the estimated amounts set out in the Estimated Closing Statement prepared in accordance with clause 6.

The Initial Purchase Price shall be apportioned between the DivestCo Shares pursuant to clause 4.4.

3. Adjustment Payments to the Initial Purchase Price

The Initial Purchase Price shall be adjusted following Closing pursuant to clause 6 and on the following basis:

(a) If a payment is specifically referable to any particular DivestCo Shares (or to any DivestCo or DivestCo Subsidiary), it shall so far as possible adjust the price paid for the relevant DivestCo Shares; or

(b) otherwise, it shall adjust the price for the DivestCo Shares on a basis pro rata to the allocation thereof in the calculation of the Initial Purchase Price unless Seller and Purchaser agree otherwise both acting reasonably.

4. Allocation of Purchase Price and Negative Components

The Enterprise Purchase Price and the Target Working Capital shall be apportioned to the DivestCo Shares as set out in Schedule 3.

The adjustments pursuant to clauses 4.1 through 4.3 and 6 shall be allocated to the individual DivestCos as they apply, unless agreed otherwise between the Parties.

If any payment made in satisfaction of a liability under this Agreement, in particular Adjustment Payments, would reduce the price of particular DivestCo Shares to less than one (1) EUR, then such payment or adjustment shall be made on the following basis:

(a) the price of those particular DivestCo Shares shall be reduced to one (1) EUR; and

(b) the balance shall adjust the price for the other DivestCo Shares on a pro rata basis unless Seller and Purchaser agree otherwise both acting reasonably.

5. Settlement of Inter-Company Relations

1. Efforts to Reduce Inter-Company Payables and Inter-Company Receivables

Prior to Closing and subject to the Permitted Actions, Seller shall use reasonable endeavours to reduce the Inter-Company Payables and Inter-Company Receivables by concentrating and setting off the

Inter-Company Payables and Inter-Company Receivables between members of Seller's Group and the Target Companies, in each case as permitted by applicable law. Seller's Group may also choose to repay or otherwise settle any Inter-Company Receivables.

2. Termination of Cash Pooling Agreements

Seller shall procure for Seller's Group that no later than one (1) Business Day prior to the Closing Date all cash pooling or inter-company netting arrangements between the Target Companies on the one hand and members of Seller's Group on the other hand are terminated with immediate effect (i) netting and converting any currency applicable to amounts owed under any such agreements other than EUR into EUR by using the Exchange Rate as published on the Business Day preceding the termination of the cash pooling or inter-company netting arrangements and (ii) converting the principal amount of both the remaining Inter-Company Payables and Inter-Company Receivables into a term loan maturing on the Closing Date and carrying fixed interest at a rate prevailing at Seller's Group for such term loans. Seller shall confirm for Seller's Group in writing the fulfilment of this obligation to Purchaser without undue delay following such termination. The balances arising from such termination shall be handled in accordance with clause 5.4 through 5.7.

3. Termination of Foreign Exchange and Commodity Hedges

All foreign exchange and commodity hedges regarding the Business and concluded by Seller's Group with the Target Companies shall be terminated at market value no later than five (5) Business Days prior to the Closing Date. Such termination shall be effected by first off-setting the prospective consideration to the extent possible and second settling the remaining balance via the respective cash pool prior to its freezing pursuant to clause 5.2.

4. Final Inter-Company Payment Amount

Seller shall pay to Purchaser on behalf of the relevant members of Seller's Group an amount equal to the Inter-Company Receivables and Purchaser shall pay to Seller on behalf of the Target Companies an amount equal to the Inter-Company Payables, all as at the Financial Closing Date and as shown in the Closing Statement pursuant to clause 6.

Settlement of the aforementioned payments shall occur by way of a net payment equal to the Inter-Company Payables as at Closing minus the Inter-Company Receivables as at Closing ("FinalInter-Company Payment Amount"). If the Final Inter-Company Payment Amount is positive, it shall be added to the Final Purchase Price; and, if it is negative, it shall be deducted from the Final Purchase Price.

5. Initial Inter-Company Payment Amount

At Closing, the Inter-Company Payables and the Inter-Company Receivables shall be settled in an amount equal to a good faith estimate of the Final Inter-Company Payment Amount established on the basis of the Estimated Closing Statement pursuant to clause 6 ("Initial Inter-Company Payment Amount"). Such settlement shall occur in the same way as set out in clause 5.4, by adding to or deducting from the Initial Purchase Price and making a corresponding payment by Purchaser to Seller at Closing.

6. Adjustment Payments to the Initial Inter-Company Payment Amount

The Initial Inter-Company Payment Amount shall be adjusted following Closing pursuant to clause 6.

7. Acknowledgement and Novation

(a) Seller and Purchaser agree that the settlement of the Inter-Company Payables and Inter-Company Receivables in accordance with the provisions of clauses 5.4 through 5.6 shall:

(i) constitute a settlement and discharge on behalf of the members of Seller's Group of the Inter-Company Receivables with effect from Closing, which will be acknowledged by the Target Companies at Closing; and

(ii) constitute a settlement and discharge of the Inter-Company Payables on behalf of the Target Companies with effect from Closing, which will be acknowledged by the relevant members of Seller's Group at Closing.

(b) With effect from Closing, as a consequence of the settlement on behalf of the respective debtor, by way of novation:

(i) the respective Target Companies that held the Inter-Company Receivables shall hold against Purchaser a receivable on the same economic terms and conditions as were applicable to the settled Inter-Company Receivable; and

(ii) the respective Target Companies that owed the Inter-Company Payables shall owe to Purchaser a payable on the same economic terms and conditions as were applicable to the settled Inter-Company Payable.

6. Closing Statement, Estimated Closing Statement and Adjustment Payments

1. Closing Statement

Purchaser shall, or shall procure that its accountants shall, after Closing prepare a draft statement showing, as at the Financial Closing Date, the Financial Debt, Cash, Working Capital, Inter-Company

Payables and Inter-Company Receivables of the Target Companies as a whole ("Closing Statement"). The Closing Statement shall set out the calculation of the Final Purchase Price and the Final Inter-Company Payment Amount and be in the form set out in Schedule 5.

Purchaser shall deliver the draft Closing Statement to Seller within sixty (60) Business Days following Closing. The Closing Statement shall be prepared in accordance with the accounting principles and methodology set out in Schedule 4.

2. Estimated Closing Statement

Following good faith consultation with Purchaser and at least five (5) Business Days prior to Closing, Seller will deliver to Purchaser a summary prepared in good faith estimating the amounts of Financial Debt, Cash and Working Capital as at the Financial Closing Date, as well as the Initial Inter-Company Payment Amount as at the Financial Closing Date pursuant to clause 5.5 ("Estimated Closing Statement"). The Estimated Closing Statement shall be prepared on the same basis as the Closing Statement.

3. Adjustment Payments

When the Closing Statement has been finalised in accordance with Schedules 4 and 5, Purchaser shall pay to Seller any amount by which the sum of the Final Purchase Price and the Final Inter-Company Payment Amount exceed the sum of the Initial Purchase Price and the Initial Inter-Company Payment Amount or Seller shall pay to Purchaser any amount by which the sum of such final amounts falls short of the sum of such initial amounts, as the case may be (each an "Adjustment Payment", together the "Adjustment Payments").

The relevant due date for any Adjustment Payments shall be twenty (20) Business Days following the date upon which the Closing Statement is finalised in accordance with Schedule 4.

4. VAT

The Final Purchase Price and the Final Inter-Company Payment Amount are net amounts that do not yet include the amount of any VAT. The Parties assume that the sale and transfer of the DivestCo Shares as well as the settlement measures regarding the Inter-Company Payables and Inter-Company Receivables are either not subject to VAT or exempt from VAT, and no Party shall with respect to any of such transactions waive (or permit any of its Affiliates to waive) any exemption from VAT, and each Party hereby warrants and represents to the other Party that it has not (and none of its Affiliates

has) waived any such exemption with respect thereto. To the extent that VAT becomes chargeable on the transfer of the DivestCo Shares Purchaser shall pay to Seller after having received an invoice issued in accordance with applicable VAT laws in cash an amount equal to such VAT in addition to the Final Purchase Price. To the extent that VAT becomes chargeable on the settlement of Inter-Company Payables and Inter-Company Receivables pursuant to clauses 5.4 through 5.7, Purchaser shall pay to Seller after having received an invoice issued in accordance with applicable VAT laws in cash an amount equal to such VAT in addition to the Final Inter-Company Payment Amount, but only if and to the extent Purchaser or any member of Purchaser Group shall be entitled to claim input tax.

5. Payments under this Agreement

The payments pursuant to this Agreement shall be made in full and without any deduction or withholding of or in respect of any Tax except to the extent required by law. Except as otherwise provided in this Agreement or any other Transaction Document, if such a deduction or withholding of or in respect of any Tax is required by law the payor shall be obliged to gross-up the relevant amount so that the payee receives the amount which (after making any deduction or withholding of or in respect of any Tax) leaves an amount equal to the full payment which would have been due if no such deduction or withholding had been required. If the recipient of any payment (or any person on whose behalf the payment is received) made pursuant to this Agreement (other than the Initial Purchase Price, the Final Purchase Price, any payment made pursuant to clause 5 or any part of any of them) is or will be subject to Tax in respect of the receipt of (or the right to receive) such payment, the payor shall be obliged to gross-up the relevant amount so that the payee (or the person on whose behalf the payment is received) receives and retains the amount which (after taking account of such Tax) will leave it with the full amount which it would have received and retained if it had not been subject to such Tax.

Each Party shall cooperate reasonably and in good faith with the other Party in taking (or procuring that any of its Affiliates takes) any procedural steps (including the completion and filing of treaty claims and supporting documentation) reasonably requested by any other party for the purpose of reducing or avoiding any deduction or withholding referred to in this clause 6.5. No payor shall be obliged under this clause 6.5 to gross-up any payment if and to the extent that the amount of the relevant deduction, withholding or Tax is greater than would have been the case if (a) the payee had complied at all times with its obligations under this clause 6.5 and (b) the payee (and any person on whose behalf the payment is received) had been resident for Tax purposes at all times in (and only in) the jurisdiction stated in the relevant parties clause to this Agreement as being the jurisdiction

under whose laws the payee is organised and had not at any time had any permanent establishment or other Taxable presence in any other jurisdiction.

Any payments to be made under this Agreement shall be made in EUR by irrevocable wire transfer of immediately available funds to a bank account in the United States, the United Kingdom or in a member state of the European Union specified in writing by the relevant Party or Parties to the other Party or Parties, provided that such specification has been made at least five (5) Business Days prior to the relevant due date. Any such payment shall be deemed to have been duly made only upon the irrevocable and unconditional crediting of the amount payable (without deduction of any Costs) to the relevant bank account. Any payment made by a Party to the relevant bank account of the other Party or Parties shall have debt-discharging effect (in the amount credited to such bank account).

Any payments to be made by Seller or Purchaser under this Agreement shall be deemed to be made on behalf of, and shall have a discharging effect for, the relevant member of Seller's Group or Purchaser Group, respectively. Any payments made under this Agreement to Seller or Purchaser shall be deemed to be made to, and shall have discharging effect in respect of, the relevant member of Seller's Group or Purchaser Group, respectively.

If a Party defaults in making any payment when due of any sum payable under this Agreement, it shall pay interest on that sum from and including the date on which payment is due until (but excluding) the date of actual payment (after as well as before judgment) at an annual rate of 4.00% above the base rate from time to time of the European Central Bank, which interest shall accrue from day to day and be compounded monthly.

Otherwise than expressly provided in this Agreement, no amount due and payable by one Party to any other Party pursuant to this Agreement shall be set-off against any other amount due and payable or alleged to be due and payable by that other Party to the first Party whether pursuant to this Agreement or otherwise.

7. Replacement of Third Party Assurances

1. Release of Seller's Group from Third Party Assurances

Purchaser shall use reasonable endeavours to ensure that at Closing, each member of Seller's Group is released in full from all Third Party Assurances listed in Schedule 9 given by any such member of Seller's Group in respect of obligations of any Target Company or JVCo and that replacements satisfactory to Seller acting reasonably, are put in place. In addition, Purchaser shall use its reasonable

endeavours to ensure that, as soon as reasonably practicable after becoming aware of any other Third Party Assurance given by any such member of Seller's Group in respect of any obligations of any Target Company or JVCo, each member of Seller's Group is released in full from such Third Party Assurance.

Pending release of any Third Party Assurance referred to in this clause 7.1, Purchaser shall indemnify and hold harmless Seller and each member of Seller's Group from and against any and all claims, actions, proceedings, losses and Costs arising after Closing under or by reason of that Third Party Assurance.

2. Release of Target Companies and JVCos from Third Party Assurances

Seller shall use reasonable endeavours to ensure that at Closing, each Target Company or JVCo is released in full from all Third Party Assurances listed in Schedule 10 given by any such Target Company or JVCo in respect of obligations of any member of Seller's Group and that replacements satisfactory to Purchaser acting reasonably, are put in place. In addition, Seller shall use its reasonable endeavours to ensure that, as soon as reasonably practicable after becoming aware of any other Third Party Assurance given by any such Target Company or JVCo in respect of any obligations of any member of Seller's Group, each Target Company or JVCo is released in full from such Third Party Assurance.

Pending release of any Third Party Assurance referred to in this clause 7.2, Seller shall indemnify and hold harmless Purchaser and its Affiliates from and against any and all claims, actions, proceedings, losses and Costs arising after Closing under or by reason of that Third Party Assurance.

3. Assistance for Releases

Each of Seller and Purchaser shall provide such assistance as the other may reasonably request in order to comply with this clause 7.

8. Closing Conditions

1. Closing Conditions

Closing shall be conditional on the following conditions ("Closing Conditions") having been fulfilled or waived in accordance with this Agreement:

(a) Completion of the Business Combination having occurred;

(b) Seller having received confirmation from the European Commission in writing that the European Commission (i) approves Purchaser as a suitable purchaser of the Business or does not object to the identity of Purchaser and (ii) approves the sale of the Target Companies pursuant to this SPA as an adequate remedy to concerns that the Business Combination could impede competition in the EEA (together "BCA Clearance Condition"); and

(c) The Transaction having received competition approvals or expiry of the statutory waiting periods in the following jurisdictions: EU (EU Commission) and Brazil("SPA Clearance Condition").

2. Commitments and Processes regarding Closing Conditions

(a) Commitments and Process regarding BCA Clearance Condition

While Seller shall have the primary responsibility for obtaining the BCA Clearance Condition, Purchaser shall, and shall procure that, each member of Purchaser Group shall, upon Seller's request, use its best endeavours to cooperate with Seller to satisfy the BCA Clearance Condition to the extent it relates to the Business or Purchaser's acquisition of the Business and the DivestCo Shares as soon as reasonably practicable and in any event no later than 24 October 2018 ("Long-Stop Date").

Such endeavours shall include, if Seller notifies Purchaser, or it becomes reasonably apparent, that according to the European Commission the BCA Clearance Condition can only be met subject to further conditions, obligations or undertakings to the extent they relate to the Business or Purchaser's acquisition of the Business and the DivestCo Shares (the "BCA Commitments"), Purchaser shall promptly offer (and not withdraw) such BCA Commitments to the European Commission as Seller considers reasonably necessary to satisfy by no later than the Long-Stop Date the BCA Clearance Condition. Such BCA Commitments may include, without limitation, any condition, obligation, undertaking or modification or any divestment in any manner whatsoever relating to (i) any undertaking or business, activities or assets that is directly or indirectly controlled (for the purposes of Articles 3(2) and 3(3) of the EU Merger Regulation) by Purchaser; or (ii) any DivestCo Subsidiaries, activities or assets.

Purchaser shall cooperate in good faith with Seller in relation to the satisfaction of the BCA Clearance Condition to the extent it relates to the Business or Purchaser's acquisition of the Business and the DivestCo Shares. Such cooperation shall include (subject to appropriate protection in respect of confidential information) the provision of information, the communication of documents and the submission of arguments in good time for the purpose

of making any submissions, notifications, filings to or other communication with any competent Governmental Entity, to the extent that such information and documents are available to Purchaser acting reasonably. If requested by Seller, Purchaser shall assist in any preparatory steps in advance of Seller initiating any discussions with or responding to any requests from any competent Governmental Entity. Purchaser shall also keep Seller fully informed of any material written or oral contact which Purchaser may have with any competent Governmental Entity in relation to the merger clearance process relating to the BCA or the process of obtaining the BCA Clearance Condition (whether instigated by Purchaser or any competent Governmental Entity) unless prohibited from doing so by such Governmental Entities. In this context, Purchaser shall, to the extent legally permitted and reasonably practicable, promptly notify Seller sufficiently in advance of any submission, response or other communication which it proposes to make or submit to any competent Governmental Entity and, to the extent legally permitted and reasonably practicable, at the same time provide Seller with copies of such communication and any supporting documentation or information. For the avoidance of doubt, Purchaser shall also comply with any requirement or request by any monitoring trustee (or similar) appointed in connection with obtaining the BCA Clearance Condition or the SPA Clearance Condition (as set out in clause 8.2(b), below), and shall, to the extent legally permitted and reasonably practicable, keep Seller fully informed of any material written or oral contact Purchaser has with the monitoring trustee (or similar).

(b) Commitments and Process regarding SPA Clearance Condition

Purchaser shall have the primary responsibility for obtaining the SPA Clearance Condition and shall ensure that the necessary notifications (or a draft thereof, for jurisdictions where submission of a draft prior to formal notification is appropriate) in respect of the SPA Clearance Condition shall be made to the relevant Governmental Entity no later than fifteen (15) Business Days after the date hereof and shall not be withdrawn subsequently unless agreed otherwise by Seller and Purchaser.

Purchaser shall and shall procure that each member of Purchaser Group shall, at Purchaser's Cost, use best endeavours to ensure that the SPA Clearance Condition is fulfilled as soon as reasonably practicable and in any event no later than at the Long-Stop Date.

Such endeavours shall include proposing, negotiating, offering to commit, not withdrawing any offer to commit (unless agreed otherwise by Seller and Purchaser) and agreeing, as soon as possible, in each case where necessary to ensure that the SPA Clearance Condition is satisfied

prior to the Long-Stop Date, with a Governmental Entity to effect (and if any proposal or offer is accepted, commit to effect) by agreement, order or otherwise, the sale, divestiture, licence or disposition of any assets or businesses of the Target Companies, Purchaser or any member of Purchaser Group as soon as reasonably practicable.

Purchaser shall, to the extent legally permitted, promptly notify Seller sufficiently in advance of any notification, submission, response or other communication (excluding communications of an administrative nature) which it proposes to make or submit to any competent Governmental Entity and prior to such notification, submission, response or other communication provide, to the extent legally permitted, Seller with copies of such communication and any supporting documentation or information requested by Seller. However, Purchaser shall not be required to provide Seller with any information to the extent that in Purchaser's reasonable assessment such information constitutes or contains confidential information or business secrets of Purchaser Group, and such information shall be provided to Seller's counsel on a counsel-to-counsel basis only. Purchaser undertakes to take into account and reflect any comments which Seller may have in relation to any such notification, submission, communication or response to a request for further information prior to making the relevant notification, submission, communication or response. Purchaser further agrees to keep Seller fully informed as to the material progress of any notification and shall permit Seller or its advisers to attend all meetings and telephone calls with any competent Governmental Entity or other persons or bodies (unless prohibited by the competent Governmental Entity or other person) and to make, to the extent legally permitted, oral submissions at such meetings and in such telephone calls.

Seller shall cooperate in good faith with Purchaser in relation to the satisfaction of the SPA Closing Condition. Such cooperation shall include, (subject to appropriate protection in respect of confidential information) the provision of information, the communication of documents and the submission of arguments in good time for the purpose of making any submissions, notifications, filings to or other communication with any competent Governmental Entity, to the extent that such information and documents are available to Seller acting reasonably. However, to the extent that in Seller's reasonable assessment any information requested by or on behalf of Purchaser constitutes or contains confidential information or business secrets of Seller's Group, such information shall be provided to Purchaser's counsel on a counsel-to-counsel basis, only. If requested by Purchaser, Seller shall assist in any preparatory steps in

advance of initiating any discussions with or responding to any requests from any competent Governmental Entity. Seller shall also keep Purchaser fully informed of any material written or oral contact which Seller may have with any competent Governmental Entity in relation to the merger control process to satisfy the SPA Closing Condition (whether instigated by Seller or any competent Governmental Entity). In this context, Seller shall, to the extent legally permitted and reasonably practicable, promptly notify Purchaser sufficiently in advance of any submission, response or other communication which it proposes to make or submit to any competent Governmental Entity and, to the extent legally permitted and reasonably practicable, at the same time provide Purchaser with copies of such communication and any supporting documentation or information. However, Seller shall under no circumstances be required to provide Purchaser, or its counsel, with any information which in Seller's reasonable assessment constitutes or contains confidential information or business secrets of Seller's Group or pertains to any proceedings in relation to the BCA or in relation to any transactions other than the Transaction.

3. Waiver of Closing Conditions

The Closing Condition set out in clause 8.1(a) may be waived by Seller by giving written notice to Purchaser.

4. Unconditional Date

Seller and Purchaser shall each notify the other promptly upon becoming aware that (i) any of the Closing Conditions have been fulfilled, or (ii) the satisfaction of any of the Closing Conditions is or has become impossible. The first Business Day by which all Closing Conditions have been fulfilled (or waived in accordance with clause 8.3) is the "Unconditional Date".

5. Termination

If (i) the Closing Condition in clause 8.1(a) or 8.1(b) has not occurred on or before the Long-Stop Date (or, in case of the Closing Condition in clause 8.1(a), waived) or, (ii) the satisfaction of any of the Closing Conditions has become impossible (such Closing Condition(s) not having been waived), this Agreement may be terminated by Seller and PLC acting jointly. If Closing of this Agreement has not occurred by 1 May, 2019, each of (i) Seller and PLC acting jointly and (ii) Purchaser may terminate this Agreement.

6. No Solicitation

(a) Subject to clause 8.6(b) below, Seller shall, and shall procure that Seller's Representatives and Affiliates shall, (i) promptly cease and cause to be terminated any and all existing discussions or negotiations with any persons conducted prior to or on the date of this Agreement in respect of an Acquisition Proposal by such person (ii) not directly or indirectly encourage, solicit, initiate, facilitate, engage in, accept, or continue or conduct discussions or negotiations regarding an Acquisition Proposal or provide any additional information to any person (other than Purchaser and its Affiliates) concerning a possible Acquisition Proposal from such person and (iii) not propose to the European Commission any prospective purchaser for the DivestCo Shares and/or the Business other than Purchaser.

(b) The obligations of Seller contained in 8.6(a) above shall cease to apply if Purchaser fails to perform any of its material obligations under this Agreement.

7. No Right of Termination or Rescission

(a) The Parties agree that, following the date of this Agreement, no Party will have a right (including any right under common law, tort, statute (including under the Misrepresentation Act 1967), equity, or otherwise) to terminate or rescind this Agreement, except (i) in respect of fraud or fraudulent misrepresentation committed by the other Party (provided that Seller and PLC shall be considered to be one party for purposes of this clause 8.6), or (ii) the contractual termination right provided in clause 8.5.

(b) If this Agreement is terminated by Seller and PLC acting jointly in accordance with clause 8.5 or by any Party in respect of fraud or fraudulent misrepresentation committed by the other Party, (i) any such termination shall have effect for all Parties and (ii) no Party (nor any of their respective Affiliates) shall have any claim under this Agreement of any nature whatsoever against any other Party (or any of their respective Affiliates) except in respect of any rights, liabilities or obligations which have accrued before termination or under any of the Surviving Provisions.

9. Changes to Perimeter

1. The parties acknowledge and agree that the European Commission may determine that it is necessary for further divestments of assets or shares directly or indirectly controlled by Seller to be transferred to Purchaser for the BCA Clearance Condition to be satisfied (each a "Further Divestment", together the "Further Divestments").

2. Purchaser hereby irrevocably grants to Seller an option to require Purchaser (or a Designated Purchaser) to acquire each Further Divestment on the terms and subject to the conditions of this Agreement (each a "Put Option", together the "Put Options"). The consideration for the grant of the

Put Options shall be the payment in cash by Seller to Purchaser of an amount equal to EUR 1, receipt of which is hereby acknowledged by Purchaser.

3. A Put Option may be exercised by Seller by way of notice in writing to Purchaser sent as soon as reasonably practicable after the date on which the European Commission informs Seller that a Further Divestment is required (a "Put Option Exercise Notice").

4. A Put Option Exercise Notice shall set out reasonable details of the assets and/or shares comprising the Further Divestment and a date which is no less than five (5) and no more than ten (10) Business Days after the date of the Put Option Exercise Notice on which the Put Option shall become effective ("Put Option Effective Date").

5. From the Put Option Effective Date, the provisions of this Agreement shall apply to the Further Divestment with such Further Divestment being included in the scope of interests to be transferred from Seller to Purchaser, provided that:

(a) rights, liabilities, obligations and undertakings under the Agreement shall apply from the Put Option Effective Date in respect of such Further Divestment (not from the date of this Agreement), such that the Warranties shall be given in respect of such Further Divestment on the Put Option Effective Date and disclosures against such Warranties shall be included in a disclosure letter of the same date; and

(b) the mechanisms contained in the Agreement in relation to purchase price and adjustments to the purchase price, shall not apply to the Further Divestment (the price payable for the Further Divestments being calculated as set out in clause 9.6 below).

6. At Closing:

(a) in addition to the payment of the Initial Purchase Price, Purchaser shall pay to Seller an amount equal to the fair market value of the Further Divestments, where:

(i) the Further Divestment is priced on the basis of turnover, the fair market value shall be calculated by applying the same valuation methodology as Purchaser applied in the final bid submitted by Purchaser on 11 June 2018; and

(ii) the Further Divestment is not priced on the basis of turnover, the fair market value shall be calculated by reference to an asset valuation report prepared by an independent third party,

provided always, in each case, that the aggregate amount payable by Purchaser for all Further Divestments shall not exceed thirty million (30,000,000) EUR;

(b) if, thirty (30) Business Days prior to Closing, Purchaser and Seller fail to reach agreement on the fair market value of the Further Divestment, the Parties shall refer the matter in dispute to an independent third party expert for determination; and

(c) Seller shall procure that the interests comprised in the Further Divestments shall be transferred to Purchaser or a Designated Purchaser, in accordance with the terms of this Agreement.

10. Closing, Closing Actions

1. Closing Date and Place

Subject to clause 8 and clause 10.2, Closing shall take place at the offices of McDermott Will & Emery UK LLP, 110 Bishopsgate, London, EC2N 4AY, or such other place as Seller and Purchaser may agree in writing:

(a) on the first Business Day of the calendar month immediately following the Unconditional Date;

(b) if the Unconditional Date falls less than five (5) Business Days before the first day of such immediately following calendar month, on the first Business Day of the next calendar month; or

(c) such other day as may be mutually agreed by Seller and Purchaser in writing;

(such day the "Closing Date") provided that in each case the Parties hereby agree that Closing shall be deemed to be effective from 00:00 hours local time in the respective jurisdiction of the respective DivestCo of the first calendar day of the month in which the Closing Date falls (the "Financial Closing Date").

2. Closing Date and Conditions

Notwithstanding clause 10.1, if a Governmental Entity requires that Closing (or closing of the sale of any of the DivestCo Shares) must be completed on or by a certain date after the Unconditional Date then Closing shall take place on the Business Day immediately prior to such date and such date 00:00 hours local time in the respective jurisdiction shall be the Financial Closing Date.

3. Closing Actions

At Closing:

(a) Seller shall perform the actions assigned to it in Schedule 6; and

(b) Purchaser shall perform the actions assigned to it in Schedule 6,

(the "Closing Actions").

4. Closing Preparation and Support

Seller and Purchaser shall negotiate in good faith with a view to agreeing before the Closing Date the final form of any Transaction Document which has not been finalised at the date of this Agreement, such agreement not to be unreasonably withheld or delayed.

5. Designated Purchasers

(a) Purchaser shall be entitled to designate in writing within 20 (twenty) Business Days of the date hereof one or more of its (directly or indirectly) wholly owned Affiliates as designees which shall, instead of Purchaser, acquire the DivestCo Shares (each such entity a "Designated Purchaser"). Purchaser shall procure that it is entitled to make any payment of a portion of the Initial Purchase Price and the Final Purchase Price owed to Seller on behalf of the Designated Purchasers as paying agent. Purchaser shall, furthermore, procure that it is entitled and/or authorised to receive any Adjustment Payment and any other payment owed to any of the Designated Purchasers under or in connection with this Agreement on behalf of such Designated Purchaser. Each Designated Purchaser shall be deemed to be included in the term "Purchaser" hereunder.

(b) Any designation of a Designated Purchaser in accordance with this clause 10.5 shall not release Purchaser from its obligations under this Agreement.

(c) Any Designated Purchaser shall be notified to the respective Governmental Entity for clearance in the course of obtaining the BCA Clearance Condition and the SPA Clearance Condition and shall not be changed or exchanged by Purchaser once approved by the Governmental Entity.

11. Seller's Warranties

1. Warranties

Seller warrants to Purchaser itself and on behalf of each Designated Purchaser that, except as Disclosed:

(a) as at the date of this Agreement, the warranties set out in Schedule 7 ("Warranties") are true and accurate in all respects by reference to the matters, events and circumstances existing at the date hereof; and

(b) immediately before Closing, the Repeated Warranties will be true and accurate in all respects by reference to the existing matters, events and circumstances at the Closing Date.

The Warranties and all Warranty Claims are subject to the limitations set out in this Agreement, in particular, in Schedule 8.

2. Basis of Claim

Purchaser acknowledges and agrees that other than paragraphs 1.2 (Financial Matters), 1.5 (Compliance with Law), 1.6 (Special Regulatory Matters), 1.8 (Insurances) and 1.9 (Contractual Matters) of Schedule 7 the only Warranties given in relation to:

(a) Intellectual Property Rights and information technology or any related claims or liabilities are set out in paragraph 1.12 (IP/IT/Data Protection) of Schedule 7, and no other Warranty in this regard is given;

(b) real estate and planning and zoning matters or any related claims, liabilities or other matters are those set out in paragraph 1.13 (Real Estate) of Schedule 7 and no other Warranty in this regard is given;

(c) Environmental Matters are those set out in paragraph 1.14 (Environmental Matters) of Schedule 7, and no other Warranty in this regard is given; and

(d) the employment of any past or present employee of any Target Company or any member of Seller's Group or any related claims, liabilities or other matters are set out in paragraph 1.15 (Employment) of Schedule 7 and no other Warranty in this regard is given.

3. No Further Warranties

Purchaser agrees that the only warranties given are the Warranties, without relying upon any express or implied representations or warranties, guarantees, declarations or statements of any nature by any members of Seller's Group, or any officer, director, employee, advisor, agent or other representative of any members of Seller's Group ("Seller's Representatives").

Purchaser acknowledges that, except as expressly set out in the Warranties, members of Seller's Group and Seller's Representatives make no representations, warranties or guarantees and assume no disclosure or similar obligations in connection with this Agreement and the Transaction, and further assume no obligation regarding the completeness and accuracy of any information provided by any members of Seller's Group, or any Seller's Representatives, to any Purchaser, members of Purchaser Group, or any officer, director, employee, advisor, agent or other representative of Purchaser or any other members of Purchaser Group or any other person retained by Purchaser regarding the Transaction, this Agreement or the Transaction Documents ("Purchaser's Representatives").

12. Seller's Indemnities

1. Spanish Contractor Indemnity

Seller shall indemnify and hold harmless Purchaser and each member of Purchaser Group, from and against any and all claims, actions, proceedings, losses, fines, social security payments, severance

payments and any other Costs arising or incurred by, or on behalf of, any and all members of Purchaser Group in relation to any contractors, sub-contractors or temporary workers working for or commissioned by DivestCo 4 and/or DivestCo 4 Subsidiary 1 and such contractors, sub-contractors or temporary workers being deemed (i) illegally or fraudulently assigned or (ii) actual employees of DivestCo 4 and/or DivestCo 4 Subsidiary 1, including the total of losses and Costs made, suffered or incurred as a result of any member of Purchaser Group defending or settling a claim alleging any liability in connection therewith (the "Spanish Contractor Indemnity").

2. Uerdingen Indemnity

(a) Subject to paragraph (b), Seller shall indemnify and hold harmless Purchaser and each member of Purchaser Group, from and against any and all claims, actions, proceedings, losses and any other Costs arising or incurred by any and all members of Purchaser Group in relation to the explosion of a nitrogen tank operated by Venator on 5 August 2015 in Krefeld-Uerdingen, Germany and the dispute between Venator and DivestCo 2 Subsidiary 8 in respect of the same (the "Uerdingen Indemnity");

(b) The liability of the Seller under the Uerdingen Indemnity shall not exceed 35,000,000 EUR.

3. Rivoira Share Swap

Seller shall indemnify and hold harmless Purchaser and each member of Purchaser Group, from and against any and all claims, actions, proceedings, losses, fines and any other Costs arising or incurred by, or on behalf of, any and all members of Purchaser Group in relation to any breach by any member of the Seller's Group of their obligations under sections 10.1(ii), 10.1(iii)(a), 10.1(iii)(b), 10.1(iv), 10.4, 10.5, 10.6 (the second sentence of this section only), 10.7 and 11 of the Rivoira Share Swap, or incurred as a result of any member of Purchaser Group defending or settling a claim alleging any liability in connection with such breach (the "Rivoira Indemnity", together with the Uerdingen Indemnity and the Spanish Contractor Indemnity, the "Seller's Indemnities").

4. Third Party Indemnity Claim

Notwithstanding anything to the contrary in this Agreement, if a claim is brought against Purchaser or any member of Purchaser Group arising from, or in connection with the Seller's Indemnities (a "Third Party Indemnity Claim"):

(a) Purchaser shall and shall procure that each member of Purchaser Group takes such action to assess, contest, dispute, defend, appeal or compromise the Third Party Indemnity Claim as Seller may reasonably request and does not make any admission of liability, agreement,

settlement or compromise in relation to the Third Party Indemnity Claim without the prior written approval of Seller;

(b) Seller may, at any time before final compromise, agreement, expert determination or non-appealable decision of a court or tribunal of competent jurisdiction is made in respect of the Third Party Indemnity Claim or the Third Party Indemnity Claim is otherwise disposed of, give notice to Purchaser that it elects to assume the conduct of any dispute, compromise, defence or appeal of the Third Party Indemnity Claim;

(c) In the case of 12.4(a) and, subject to the requirement to maintain privilege, Purchaser shall keep Seller reasonably informed of the progress of the Third Party Indemnity Claim and provide Seller with copies of all relevant documents and such other information in its possession as may be requested by Seller (acting reasonably).

(d) Subject to the requirement to maintain privilege, Purchaser shall and shall procure that each member of Purchaser Group makes available to Seller such persons during Working Hours and all such information as Seller may reasonably request for assessing, contesting, disputing, defending, appealing or compromising any Third Party Indemnity Claim.

(e) Seller shall indemnify Purchaser and each relevant member of Purchaser Group against all liabilities, charges, Costs and expenses which they may incur in taking any such action as Seller may request pursuant to paragraphs (a) and (d), above; and

(f) In the case of 12.4(b), Seller shall keep Purchaser reasonably informed of the progress of the Third Party Indemnity Claim and provide Purchaser with copies of all relevant documents and such other information in its possession as may be requested by Purchaser (acting reasonably).

Neither Purchaser nor any other member of Purchaser Group shall be required to take any action (or cease to take any action) under this clause 12.3 where Purchaser reasonably considers that taking such action (or ceasing to take such action) may have a material adverse effect on the business of Purchaser or any other member of Purchaser Group.

13. Taxes

1. Tax Covenant

Under a covenant on the terms set out in this clause 13.1 and subject to clause 13.2, and subject to Closing, Seller shall be liable to pay to Purchaser an amount equal to:

(a) any Tax Liability of the Target Companies:

(i) that arises in respect of or by reference to an event that occurred on or before the Financial Closing Date if and to the extent the underlying Tax is a Tax which is specifically assessed as a result and in respect of such taxable event and not on an on-going basis in respect of a Tax assessment period (e.g., transfer Taxes); for the purposes of this clause 13.1(a)(i) any stamp duty or transfer or registration tax that would be payable on any document, provided such document is either necessary to establish the title of a Target Company to any asset or is a document in the enforcement or production of which a Target Company is interested, will be deemed to be a Tax Liability of a Target Company arising in consequence of an event occurring on the date of execution of such document and any interest, fine or penalty relating to any such duty or tax, will be deemed to be an Actual Tax Liability of a Target Company arising in consequence of an event occurring on the last date it would have been necessary to pay such duty or tax to avoid any liability to interest or penalties on paying it; or

(ii) in respect of any Tax based upon or related to income, profit, gains, turnovers, sales, gross receipts, wages, capital expenditures, expenses or any similar Tax, if and to the extent that such Tax Liability relates to any period of time ending on or before the Financial Closing Date; or

(b) any Tax Liability that is the liability of another person (other than a member of Purchaser Group) ("Primary Person") and for which any of the Target Companies is liable in consequence of:

(i) the Primary Person failing to discharge such Tax Liability; or

(ii) a Target Company at any time before the Financial Closing Date being a member of the same Tax Group as, or otherwise connected for any Tax purpose with, the Primary Person.

2. Exclusions

(a) Seller shall not be liable under clause 13.1 if and to the extent that:

(i) the aggregate amount of all Tax Claims (after having taken into account all exclusions and limitations applicable to such Tax Claims under this Agreement) does not exceed the aggregate amount of all liabilities, provisions or reserves for Taxes which have been taken into account in calculating Working Capital in the Closing Statement, meaning that Seller's liability is limited to the excess of the aggregate amount of all Tax Claims over the aggregate amount of all

liabilities, provisions or reserves for Taxes plus, for the avoidance of doubt, any amounts repaid to Seller in accordance with clause 13.4;

(ii) a saving (being a reduction of cash Tax otherwise payable or a cash refund of Tax, and excluding in each case any Purchaser's Relief and any saving which results from the use of a Purchaser's Relief) arises to or for the benefit of any member of Purchaser Group or Purchaser's Tax Group within a period of seven (7) years as a consequence of the Tax Liability (other than a Tax Liability associated with any carve-out and any and all restructurings by or within Seller or Seller's Group or any Target Company on or before the Closing Date) (for example, due to the lengthening of any amortization or depreciation periods or higher depreciation allowances, a credit or allowance, a shift of any item relevant for Tax purposes to another period, or the deductibility of certain Taxes or non-recoverable input VAT for income Tax purposes, however, for the avoidance of doubt, not including any step-up in the Tax basis which does not allow for a higher Tax depreciation and in any case reduced by any Tax charges resulting therefrom) (the "Tax Saving"). The Tax Saving shall be taken into account in this context: (i) in the full nominal amount if and to the extent the Tax Saving arises in any period prior to and including the date on which the Tax Claim pursuant to clause 13.1 becomes due and payable (or would have become due and payable save for this clause 13.2(a)(ii)) and/or (ii) in the amount of the net present value of the Tax Saving if and to the extent the Tax Saving will arise in any period after such date; the net present value within the meaning of the preceding (ii) shall be calculated on a lump-sum basis (x) by applying the Tax rate applicable at the time the respective Tax Claim pursuant to clause 13.1 becomes due and payable and (y) by applying a discount factor of three per cent (3 %) p.a. and (z) discounted over the shorter of the anticipated period of time during which the Tax Saving is estimated to arise or seven (7) years;

(iii) the Tax Liability results from any increase in rates of Tax that comes into force after the Financial Closing Date, or of any change in law, administrative guidelines or regulations that comes into force after the Financial Closing Date;

(iv) the Tax Liability arises or is increased by an act, omission or transaction (including the change in the exercise of any Tax election right, the approval or implementation of any reorganization measure or the sale of any asset) of any

member of Purchaser Group or Purchaser's Tax Group after Closing except where such act, omission or transaction was: (x) carried out or effected under a legally binding obligation entered into on or before Closing, (y) required by mandatory law, administrative guidelines or in final case law, or (z) carried out with the written consent or at the request of Seller;

(v) the Tax Liability arises or is increased by a change after Closing in the accounting reference date of any Target Company or in the taxation or accounting principles of the Target Company (other than a change made in order to comply with mandatory law, administrative guidelines or final case law);

(vi) payment or discharge of the Tax Liability has been made prior to or on the Financial Closing Date;

(vii) the Tax Liability arises or is increased as a consequence of a failure of Purchaser to comply with or procure the compliance of the Target Companies with any of their obligations under this clause 13;

(viii) except to the extent taken into account under sub-paragraph (ii) above, a Relief (other than an Accounts Relief or Purchaser's Relief) is available (or is made available by Seller at no Cost to Purchaser and the members of Purchaser Group) to offset the Tax Liability;

(ix) the Tax Liability has been recovered or can be recovered in cash or by way of set-off from a third party;

(x) the Tax Liability arises or is increased by reason of a failure by Purchaser to make an election which has been taken into account in the Closing Statement, unless such failure occurs with the consent or at the request or direction of Seller;

(xi) the Tax Liability arises or is increased by the making of any election or claim by a Target Company or Purchaser after the Closing Date, the effect of which was not taken into account in the Closing Statement, other than with Seller's consent or at Seller's request or direction;

(xii) the Tax Liability arises or is increased by the disclaimer after the Closing Date of any election, claim or relief validly claimed by the Target Company before the Closing Date in respect of any period ending on or before the Financial Closing Date, where such election, claim or relief was taken into account in the Closing Statement;

(xiii) the Tax Liability arises or is increased by the cessation of, or any major change in, the trade or business carried on by a Target Company, in each case occurring after the Closing Date;

(xiv) recovery in respect of the Tax Liability has been or can be made under any other provision of the Agreement or any other Transaction Document;

(xv) the Tax Liability results from an election under (x) section 336 or section 338 of the U.S. Internal Revenue Code (or any comparable applicable provision of state, local or non-US law) with respect to the acquisition of a Target Company or (y) section 301.7701-3 of the U.S. Treasury Regulations with respect to any Target Company filed by any member of Purchaser Group (other than at the request or direction of Seller) on or after Closing; or

(xvi) the Tax Liability is expressly required to be borne by Purchaser pursuant to any other provision of this Agreement (e.g. clause 6.4 or clause 25.1).

(b) Purchaser may raise a Tax Claim pursuant to clause 13.1 by delivering to Seller a written claim notice ("Tax Claim Notice"). In the Tax Claim Notice Purchaser shall specify the amount of the Tax Claim and describe the underlying facts and circumstances in reasonable detail. The Tax Claim Notice shall include a copy of the relevant Tax assessment (if any) and related documents to the extent necessary to understand and evaluate the claim.

(c) The Tax Claim pursuant to clause 13.1 becomes due and payable within ten (10) Business Days after Seller has received the Tax Claim Notice, provided, however, that Seller shall not be obliged to make any payment earlier than five (5) Business Days before the respective Tax becomes due and payable to the competent Tax Authority. In case of an appeal and/or lawsuit being filed against the relevant Tax assessment, the Tax Claim does not become due and payable by Seller before the assessment of the relevant Tax has become unappealable, provided that the Tax Authority or Tax court has granted a preliminary relief from the assessed Tax payment obligation by way of suspension of payment until the final assessment. Unless explicitly requested by Seller Purchaser is under no obligation to apply for any preliminary relief (e.g. a suspension of payment) and in case of an application upon the request of Seller, any collateral potentially requested by the Tax Authorities shall be provided by Seller.

3. Tax Refunds

(a) Subject to Closing, Purchaser shall pay to Seller an amount equal to any Tax Refund plus any interest thereon which is received by any Target Company after the Financial Closing Date for amounts paid in respect of any Tax or Taxes paid or otherwise settled by such Target Company prior to or on the Financial Closing Date (including by way of a prepayment),

provided that Purchaser shall not be liable for any amount of any Tax Refunds if and to the extent that such Tax Refund (a) results from the use of a Purchaser's Relief or (b) results from any of the acts, transactions or events, or arises in any of the circumstances, referred to in sub-paragraphs (iii), (iv), (v), (x), (xi), (xii), (xiii) or (xv) of clause 13.2(a) (deeming any reference to a Tax Liability in such sub-paragraphs to be instead a reference to a Tax Refund for the purpose of this clause 13.3(a) or 13.3(b)) to the extent that the aggregate amount of such Tax Refunds does not exceed the aggregate amount of assets for Taxes or receivables for Taxes which have been taken into account in calculating Working Capital in the Closing Statement, meaning that Purchaser's liability is limited to the excess of the aggregate amount of Tax Refunds over the aggregate amount of all such Tax assets and Tax receivables.

(b) Subject to the Closing, Purchaser shall pay to Seller an amount equal to any Tax Saving to the extent such Tax Saving has not excluded or reduced a Tax Claim pursuant to clause 13.2(a)(ii).

(c) Purchaser shall use, and shall procure that the Target Companies will use, reasonable endeavours to comply with any formal requirements to be met after the Closing Date for the recovery of any Tax Refund (but, for the avoidance of doubt, Purchaser shall not be required to take or procure that any Target Company takes any action which would involve the use of a Purchaser's Relief). Purchaser shall promptly notify Seller in writing of the receipt of the Tax Refund. Any amount payable to Seller pursuant to this clause 13.3 shall be due and payable within ten (10) Business Days after the Tax Refund has been received by the relevant Target Company. Purchaser shall deliver, for the next ten (10) calendar years following the Financial Closing Date, to Seller within six (6) months following the end of a calendar year a written statement stating whether and to what extent payment obligations of Purchaser pursuant to this clause 13.3 have arisen during the previous calendar year. Seller shall be entitled to review such statement and Purchaser shall, and shall procure that the Target Companies will, provide to Seller upon Seller's request all information and documentation reasonably requested by Seller for such review.

4. Overprovisions

(a) If any member of Purchaser Group becomes aware that any liability, provision or reserve for Taxes which have been taken into account in calculating Working Capital in the Closing Statement is likely to be an Overprovision (other than to the extent the Overprovision would arise or be increased as a result of any retrospective change in the law after the Financial Closing Date or any Purchaser's Relief) Purchaser shall promptly give details of such Overprovision by written notice to Seller.

(b) Seller may at any time (but not more than twice in any calendar year) instruct the relevant Target Company's Auditors to determine in writing the extent of any Overprovision referred to in clause 13.4(a). Half of the professional fees and expenses charged by the Auditors in consideration for making such determination shall be paid promptly by Seller and the other half of such fees and expenses shall be paid promptly by Purchaser (or, if Purchaser so designates, by the relevant Target Company). If such Auditors determine that an Overprovision has arisen such amount shall be:

(i) set off against any payment then due from Seller to Purchaser under this clause 13; and

(ii) (to the extent there is any excess) promptly paid by Purchaser to Seller.

5. Tax Covenants of Purchaser; Reverse Tax Indemnification

(a) Purchaser shall - without Seller's prior written approval - not take, and shall procure that no member of Purchaser Group will take, after the Closing Date, any action, including the making of any Tax elections, the effect of which could give rise to any Tax Liability (including any Tax Claim pursuant to clause 13.1) of any member of Seller's Group, or result in any increase thereof, or in the reduction of any Tax Saving, including any action

(i) performed after the Closing Date which has retroactive effect to a period prior to the Financial Closing Date; and

(ii) is not consistent with Seller's Group's Tax accounting methods practiced prior to the Closing Date;

unless such action is required by mandatory law, administrative guidelines or in final case law or such action is taken with the consent or at the request or direction of Seller, or it was assumed for the purpose of preparing the Closing Statement that such action would be taken. Purchaser shall not, and shall procure that after Closing none of the Target Companies will make any election under (x) section 336 or section 338 of the U.S. Internal Revenue Code (or any comparable applicable provision of state, local or non-US Law) with respect to the acquisition of a Target Company or (y) section 301.7701-3 of the U.S. Treasury Regulations with respect to any Target Company that is effective on or before the day after Closing.

(b) Purchaser shall indemnify Seller from any Tax in respect of any of the Target Companies with respect to any periods after the Financial Closing Date that constitutes a Tax Liability for which any member of Seller's Group are held liable secondarily by the Tax Authority.

(c) If and to the extent Purchaser fails to comply with any of its obligations under this clause 13, and such failure has the effect that a Tax Liability arises or is increased or that the position of

any member of Seller's Group is impaired to defend against any claim brought against any Target Company so as to result in a payment pursuant to the covenant at clause 13.1:

(i) any and all claims of Purchaser under this clause 13 in respect of the specific Tax item shall be expressly excluded, if and to the extent Seller provides evidence that such claims are caused or increased by such failure, and

(ii) Purchaser shall indemnify Seller for all and any direct damages of any member of Seller's Group and their reasonable Costs incurred in connection with such Tax Liability, if and to the extent Seller can demonstrate that any such damages results from such failure. Any amount payable to Seller pursuant to this clause 13.5(c)(ii) shall be due and payable within ten (10) Business Days after Purchaser has received Seller's notice, provided that Purchaser shall not be required to make any payment earlier than five (5) Business Days before the relevant Tax becomes due. Clause 13.2(a) shall apply mutatis mutandis.

6. As-if Assessment

Any Tax assessment period starting prior to the Financial Closing Date and ending thereafter ("Straddle Period") shall be deemed to be split into one Tax assessment period ending on the Financial Closing Date and another Tax assessment period starting after the Financial Closing Date for the purpose of allocating Taxes which are assessed in respect of a Tax assessment period under this clause 13. The Taxes which are deemed for the purpose of this clause 13 to relate to the Tax assessment period ending on the Financial Closing Date and for which Seller shall indemnify Purchaser shall be determined as follows:

(a) In case of any Taxes based upon or related to income, gains, sales, gross receipts, wages, capital expenditures, expenses or any similar Tax base, the amount of such Taxes shall be deemed to be the amount that would be assessed under the applicable Tax laws of the relevant jurisdiction if the relevant Tax assessment period and the relevant fiscal year of the Target Company ended on the Financial Closing Date (including the amount of Income, Profits or Gains that under such laws is deemed to be earned, accrued or received in such a notional Tax assessment period). Facts and circumstances reducing or increasing the amount of Tax payable that can be exclusively allocated to the time period before or after the Financial Closing Date, under the applicable Tax laws, shall be attributed accordingly, while other amounts which cannot be exclusively attributed to the time period before or after the Financial Closing Date, e.g., periodic Tax allowances like ordinary depreciations, shall be split up on the basis of an appropriate allocation key, being generally understood,

unless Seller and Purchaser agree on a more suitable allocation key, as the pro rata portion of the time of the taxable period or fiscal year elapsed on Closing. If a Target Company is a subsidiary of a Tax Group, its income shall be apportioned in accordance with the foregoing principles and an amount equal to the amount that would be assessed if the relevant Tax period ended on the Financial Closing Date shall be deemed to be attributed to the Tax Group parent and be taken into account when calculating the Tax Group parent's obligations prior to the Financial Closing Date.

(b) In case of any other Taxes, the amount of such Taxes shall be deemed to be the amount that would be assessed under the applicable Tax laws of the relevant jurisdiction for the entire Tax assessment period multiplied by a fraction, the denominator of which is the number of days of the entire Tax assessment period and the numerator of which is the number of days of the portion of such Tax assessment period ending on the Financial Closing Date.

(c) Notwithstanding clauses 13.6(a) and 13.6(b) above, any Taxes based upon or related to any and all actions initiated by Seller or any member of Seller's Group prior to or on the Closing Date with regard to the BCA or the actions pursuant to clause 5 or changes of the legal form of Seller or any other member of Seller's Group or any Target Company shall be allocated and attributed to the period ending on the Financial Closing Date, irrespective of when the respective measure becomes effective and/or the Tax arises.

The same methodology, mutatis mutandis, shall be used to determine for the purposes of this Agreement (including the definition of "Post-Closing Relief") whether and the extent to which any Relief relates to a period falling before or after the Financial Closing Date.

7. Time Limitations

Any claims under clause 6.4, clause 13 and clause 25.1 shall be time-barred upon expiration of a limitation period of six (6) months after the relevant assessment has become un-appealable and finally binding according to applicable laws, provided that claims of Seller under clause 13 shall not be time-barred earlier than six (6) months after Purchaser's notification to be delivered pursuant to clause 13.3(c).

8. Cooperation on Tax Matters

(a) The Parties shall fully cooperate, and shall cause their representatives to fully cooperate, with each other in connection with all Tax matters relating to any Pre-Financial Closing Date Tax Period, the Straddle Period and/or which could reasonably be expected to give rise to a Tax Liability of any member of Seller's Group or Purchaser Group, including the preparation and

filing of any Tax Return ("Relevant Tax Matter"). Cooperation between Purchaser and Seller shall also include (but shall not be limited to) (i) the providing and making available by one Party to the other Party of all books, records and information, and (ii) the full assistance of all officers and employees of any member of Seller's Group or Purchaser Group, to the extent reasonably requested by the other Party in connection with any Relevant Tax Matter.

(b) Seller undertakes to pay the amount of Tax becoming due with regard to the transformation of Praxair Deutschland Holding GmbH & Co. KG into a limited liability company (and the subsequent sale of the shares in DivestCo 2 under this Agreement) when becoming due (if and to the extent that clause 13.1 applies or would, but for such payment, apply to such Tax) and to provide Purchaser with evidence of such payment.

(c) After Closing, Purchaser shall prepare and file, or cause to be prepared and filed, when due all Tax Returns required to be filed on an individual or consolidated basis by any of the Target Companies for any Pre-Financial Closing Date Tax Period or the Straddle Period, provided, however, that any Tax Returns relating to any Relevant Tax Matter ("Relevant Tax Return") shall be subject to the review and instructions of Seller. Relevant Tax Returns shall be consistent with the policies, procedures, practices and election rights adopted in the financial statements of the relevant Tax period as well as the Tax Returns for previous Tax periods of the relevant Target Company submitting such Relevant Tax Return, unless in the reasonable and good faith opinion of Purchaser there is a significant risk that the adopted policies, procedures, practices and election rights are not in compliance with mandatory law or involve or will give rise to an incorrect or misleading statement or presentation of the relevant facts (in which case Purchaser shall notify Seller reasonably promptly that it has reached such opinion together with reasonable details of such opinion, which notification may therefore be required to be given, for the avoidance of doubt, before the date on which the applicable Relevant Tax Returns are furnished to Seller pursuant to the next sentence of this sub-clause). Purchaser shall ensure that any Relevant Tax Returns to be reviewed by Seller will be furnished to Seller, in case of Tax Returns to be filed on a monthly basis not later than five (5) Business Days, and all other Tax Returns not later than thirty (30) Business Days prior to the due date of the Relevant Tax Return, that any changes and amendments to such Relevant Tax Returns requested by Seller, unless they are not in line with the requirements of the preceding sentence or are not provided to Purchaser at least three (3) Business Days prior to the due date for Tax Returns to be filed on a monthly basis and all other Tax Returns no later than fifteen (15) Business Days prior to the due date of the Relevant Tax Return, are made prior to filing and that all Taxes payable under such Relevant Tax Returns shall be timely paid. If Seller and Purchaser fail to reach

agreement on the contents of the Relevant Tax Returns, the Relevant Tax Returns shall be filed according to the instructions of Seller, except if and to the extent that in the reasonable and good faith opinion of Purchaser there is a significant risk that those instructions are not in compliance with mandatory law or involve or will give rise to an incorrect or misleading statement or presentation of the relevant facts. This clause 13.8(c) applies accordingly to the amendment of any Relevant Tax Return (irrespective of whether the Relevant Tax Return was initially filed prior to or after the Financial Closing Date).

(d) Notwithstanding any to the contrary in clause 13.8(c), Seller shall be entitled to (i) file (or cause to be filed) the initial consolidated, combined, and unitary U.S. Federal, state, or local income Tax Returns which are due following Closing but which reflect any Target Company's operations for a Relevant Tax Matter, (ii) file (or cause to be filed) any amended consolidated, combined, or unitary U.S. Federal, state, or local income Tax Returns for any Relevant Tax Matter, and (iii) control any audits of U.S. Federal, state or local income Tax Returns for any Relevant Tax Matter, including extending the applicable statute of limitations and settling or litigating claims.

(e) If, after the Closing, any Tax Authority informs any member of Purchaser Group in written form of a proposed audit, assessment, dispute or other material circumstance relating to any Relevant Tax Matter ("Relevant Tax Proceeding"), Purchaser shall notify Seller of such Relevant Tax Proceeding in reasonable detail and make available to Seller copies of the received documents and upon written request other relevant documents of the Target Companies reasonably pertaining thereto. Purchaser shall, or shall procure that the relevant Target Company shall give such notice and deliver such documents without undue delay, at the latest within five (5) Business Days in the case of Tax issues which a statutory limitation period is connected to, and within ten (10) Business Days if no statutory limitation period is connected therewith, after any member of Purchaser Group has received knowledge of such information.

(f) Purchaser shall not, and shall cause any member of Purchaser Group not to, apply for or initiate any audits, disputes, administrative, judicial or other proceedings related to any Relevant Tax Proceeding without the prior written consent of Seller (not to be unreasonably withheld or delayed), unless any such action is required to be taken by law. Purchaser agrees, and shall cause any member of Purchaser Group:

(i) to give Seller the opportunity to participate in any audits, disputes, administrative, judicial or other proceedings related to any Relevant Tax Proceeding;

(ii) to comply with any reasonable instructions given by Seller in relation to the conducting of such proceedings;

(iii) not to settle any Relevant Tax Proceeding without Seller's written consent (not to be unreasonably withheld or delayed);

(iv) to challenge and litigate in cooperation with Seller any Tax assessment or other decision of any Tax Authority related to such Relevant Tax Proceeding if reasonably requested and as instructed by Seller.

Any external Costs reasonably incurred in such proceedings shall be borne by Seller.

9. No additional rights or remedies

(a) Unless explicitly provided otherwise in this Agreement, Taxes shall be exclusively governed by clause 13.

(b) If any Target Company has any claim for or in respect of Taxes against any member of Seller's Group other than by virtue of this Agreement (for instance, based on the Transitional Services Agreements, the IP Agreement or the Product Supply Agreements) and such claims go beyond Purchaser's claims under this Agreement, Purchaser shall put Seller economically in the same position as if the relevant Target Company had only the same claims and rights Purchaser has under this Agreement. Conversely, if any member of Seller's Group has any claim for or in respect of Taxes against any Target Company other than by virtue of this Agreement (for instance, based on the Transitional Services Agreements, the IP Agreement or the Product Supply Agreements) and such claims go beyond the claims of any member of Seller's Group under this Agreement, Seller shall put Purchaser economically in the same position as if the members of Seller's Group had only the same claims and rights the members of Seller's Group have under this Agreement. Without prejudice to the rights and obligations under this clause 13.9, any claims for the consideration to be paid under the Transitional Services Agreements, the IP Agreement or the Product Supply Agreements shall remain unaffected by this clause 13.9. For the avoidance of doubt, this clause 13.9(a) shall not limit or prejudice the Tax Warranties or clauses 6.4, 6.5 or 25.1.

10. Miscellaneous

(a) The determination and calculation of any claims under clause 13 is to be made in a manner which avoids any economic double-counting effect that could lead to an overcompensation or undercompensation for Taxes, Tax Savings, Tax Refunds, Overprovisions or any other points of reference for such payment claims (which may, for instance, result from the interaction with the calculation of the Final Purchase Price and/or Final Inter-Company

Payment Amount). Further, if and to the extent that the same Tax Saving, Tax Refund, Overprovision or Relief would otherwise be paid or repaid to, or set off, applied or otherwise taken into account for the benefit of Seller more than once pursuant to clause 13.3 (Tax Refunds), clause 13.4 (Overprovisions), clause 13.5 (Tax Covenant of Purchaser: Reverse Tax Indemnification) or paragraph 18 of Schedule 8 (Recovery from Third Parties), it shall not be so paid, repaid, set off, applied or otherwise taken into account if and to the extent that it has already been so paid, repaid, set off, applied or otherwise taken into account, so as to ensure that it is so paid, repaid, set off, applied or otherwise taken into account only once.

(b) Any claims under clause 13 shall be calculated on a pro rata-basis which reflects, as the case may be on a look through basis, the percentage of the direct or indirect ownership in the respective Target Company as it is acquired by Purchaser under this Agreement.

(c) Nothing in this Agreement constitutes an express or implied guarantee or creates any liability of Seller of or for any future Tax treatment of a Target Company or the existence of any Tax attribute available to any Target Company, for instance, the application of a preferential Tax rate, the availability or amount of any Tax loss carry forwards, the Tax basis of any asset, the volume of depreciation (but without liability to Seller's payment obligations under this Agreement including this clause 13).

(d) If, after any Party has made a payment to the other Party on account of any claim under clause 13, it turns out that such payment was an overpayment (e.g., on the basis of a subsequent reassessment of the relevant Tax or a Tax Refund underlying such claim), the payee shall pay to the payer an amount equal to the overpayment (plus an amount equal to any interest received) promptly after receipt of the corresponding refund (except to the extent taken into account under clause 13.2(a)(ii) or 13.3).

14. Purchaser's Warranties

Purchaser warrants to Seller that as at the date of this Agreement, the warranties set out in clauses 14.1 through 14.6 are true and accurate in all material respects ("Purchaser's Warranties"). Purchaser's Warranties shall be deemed to be repeated immediately before Closing by reference to the then existing facts and circumstances.

1. Incorporation

Purchaser is validly incorporated, in existence and duly registered under the laws of its jurisdiction and has the power to conduct its business as conducted at the date of this Agreement.

2. Corporate Authorisations

(a) Purchaser has obtained all corporate authorisations and (other than to the extent relevant to the Closing Conditions) all other governmental, statutory, regulatory or other consents, licences and authorisations required to empower it to enter into and perform its obligations under this Agreement where failure to obtain them would adversely affect to material extent its ability to enter into and perform its obligations under this Agreement.

(b) This Agreement and each of the Transaction Documents to which Purchaser is or will be a party will, when executed, constitute legal, valid and binding obligations of Purchaser in accordance with their terms.

3. No Breach

Entry into and performance by Purchaser of this Agreement and/or any Transaction Document to which it is party will not (i) breach any provision of its memorandum and articles of association, by-laws or equivalent constitutional documents or (ii) (subject, where applicable, to fulfilment of the Closing Conditions) result in a breach of any laws or regulations in its respective jurisdiction of incorporation or of any order, decree or judgment of any court or any Governmental Entity or regulatory authority, where (in either case) failure to obtain them would adversely affect to material extent its ability to enter into and perform its obligations under this Agreement and/or any Transaction Document to which it is a party.

4. Insolvency

Purchaser is neither insolvent nor bankrupt under the laws of its jurisdiction of incorporation, unable to pay its debts as they fall due nor has entered into any arrangement (whether by court process or otherwise) with its creditors or any class of its creditors. Purchaser has not received any written notice concerning or is otherwise aware of the appointment of an administrator or a receiver (including any administrative receiver or the equivalent to a receiver or administrative receiver in the relevant jurisdiction) in respect of the whole or any material part of the property, assets and/or undertaking of the business of Purchaser as carried on as at the date of this Agreement. No order has been made or resolution has been passed for the winding up of Purchaser and no petition presented for that purpose.

5. No Delay regarding Closing Conditions

Purchaser is not subject to any order, judgment, direction, investigation or other proceedings by any Governmental Entity which will, or are likely to, prevent or delay the fulfilment of any of the Closing Conditions.

6. Available Funds

Purchaser has available cash or available loan facilities which will at Closing provide in immediately available funds the necessary cash resources to pay the Initial Purchase Price and the Initial Inter-Company Payment Amount and meet its other obligations under this Agreement and, in the case of loan facilities, they involve no pre-conditions (other than the fulfilment of the Closing Conditions) and Purchaser will be able to satisfy all conditions of drawdown to such loan facilities at or prior to Closing.

15. Intellectual Property, Branding

1. No Rights in Seller's Trademarks

Save as provided for in clause 15.2 or in the Transitional Services Agreements, nothing in this Agreement shall give to any member of Purchaser Group any rights (including with respect to Intellectual Property Rights) in any Seller's Trademarks or Seller's Images. All such rights owned by any member of Seller's Group shall continue to vest in the relevant member of Seller's Group unless agreed otherwise under the Transaction Documents.

2. Restrictions on Use of Seller's Trademarks and Seller's Images by Purchaser

(a) From the Closing Date, Purchaser shall, and shall procure that each member of Purchaser Group will,

(i) subject to the remaining provisions of this clause 15.2, in any form and manner refrain from

1. using and displaying and, if used prior to the Closing Date, cease to use and display, and remove, (i) any Names which include (in whole or in part) any of Seller's Trademarks, including as corporate mark, business name or as name affix, and (ii) any Seller's Images;

2. using the custom fonts used by Seller at Closing other than in the context of informational, promotional or marketing materials of the Business existing on the Closing Date (for which clause 15.2(a)(ii) shall apply); or

3. holding itself out as having any current affiliation with any member of Seller's Group; and

(ii) take, at its own Cost, all actions reasonably necessary to ensure the discontinuation of the use of the Names including (in whole or in part) any of Seller's Trademarks, as well as any Seller's Images, for, or in relation to, the operations of the Business without undue delay, including any actions necessary to eliminate the use of such

Names and such Seller's Images within twelve (12) months of the Closing Date from

1. stationery (including letterhead, business cards, schedules, inventories, agreements, customer agreements, publicity releases and forms), informational, promotional or marketing materials, websites, e-mails and any other communication or documents (print or electronic) of, used in connection with, or related to, the Business;

2. buildings, interior décor items, fixtures and furnishings, displays, signs and signage on or at buildings and on street signs providing directions to the sites of the Business; and

3. tools and products relating to the Business and any materials (print or electronic) used in connection with, or related to, any products or services of the Business, provided that any Names including (in whole or in part) any of Seller's Trademarks, if any, on

(A) any cylinders being part of the Business, but on the Closing Date not located at a site of the Business, shall as soon as reasonably practicable following the Closing Date, be removed or permanently concealed by, or on behalf of, any member of Purchaser Group; and

(B) any freezers, tanks or other installations being part of the Business, but not located at a site of the Business on the Closing Date, shall have to be removed by any member of Purchaser Group within eighteen (18) months of the Closing Date.

(b) Subject to Purchaser's compliance with clause 15.2(f), Seller acknowledges and agrees that:

(i) Purchaser is permitted to continue making use of Shared Seller's Trademarks (excluding any logos, designs or stylised versions of Seller's Trademarks) and Shared Seller's Images:

1. with respect to such Shared Seller's Trademarks and Shared Seller's Images, when accurately describing any products or services as having been originated by any member of Seller's Group in its operation of the Business prior to Closing;

2. with respect to such Shared Seller's Trademarks and Shared Seller's Images, in the framework of Purchaser Group being allowed to sell out or otherwise dispose of any branded inventory of Seller's private label hard goods (in line

with the exclusion of any representations and warranties), during a reasonable period of time (which shall in no case exceed eighteen (18) months) from the Closing Date; and

3. with respect to such Shared Seller's Trademarks and Shared Seller's Images contained in URLs, to the extent Purchaser is not in a position to procure, by the Closing Date, the availability of an alternative URL that does not include (in whole or in part) any of Shared Seller's Trademarks and Shared Seller's Images, during a reasonable period of time (which shall in no case exceed twelve (12) months) from the Closing Date; and

(ii) no member of Purchaser Group shall be obliged to remove or obliterate any Shared Seller's Trademarks:

1. from any executed agreements or copies thereof, in existence prior to the Closing Date; or

2. from any internal documents, not customer-facing, in existence prior to the Closing Date that are used for internal purposes only.

(c) Purchaser shall, and shall procure that each member of Purchaser Group will, to the extent not effected before the Closing Date, transfer with effect as of the Closing Date to Seller for no consideration any rights the Business might have acquired by its use of a Name or otherwise in any of Seller's Trademarks.

(d) Purchaser shall, in exercising any of its rights under this clause 15.2 always act in accordance with fair market practices and considering to the fullest extent the good name, reputation and goodwill of any member of Seller's Group, their products and services.

(e) Purchaser recognises the value of the publicity and goodwill associated with Seller's Trademarks, acknowledges that Seller's Trademarks have acquired secondary meaning, and that all related rights and goodwill belong exclusively to the relevant member of Seller's Group.

(f) Purchaser shall, and shall procure that each member of Purchaser Group will, only use Shared Seller's Trademarks in accordance with the trademark policies established by the relevant member of Seller's Group, which policies may be amended from time to time and about which Seller will inform Purchaser promptly following Closing and thereafter following any amendment thereof. Purchaser shall not use, display, advertise or promote any other mark, brand name, trade name, label, seal or symbol in any manner that, in the opinion of the relevant member of Seller's Group, may be confusingly similar to or an imitation of Seller's Trademarks.

(g) Upon reasonable notice, Seller may make inspections during Working Hours of all Purchaser Group's records regarding use of Seller's Trademarks and may inspect all operations and

practices related to the use of Seller's Trademarks, including the selling or disposing of branded inventory under clause 15.2(b)(i)2.

3. Ownership; No Further Obligations

Purchaser acknowledges that:

(a) as between Seller and its Affiliates on the one hand, and Purchaser and its Affiliates on the other hand, Seller (or any member of Seller's Group) owns Seller's Trademarks and Seller's Images, and neither Purchaser nor any of its Affiliates shall contest such ownership allocation as between Seller and Purchaser (and their respective Affiliates);

(b) Seller and its Affiliates have no obligation to maintain or enforce any of Seller's Trademarks; and

(c) Seller and its Affiliates have no obligation to provide to Purchaser:

(i) any assistance, training, advice, maintenance or services of any kind with respect to Seller's Trademarks or Seller's Images; or

(ii) any physical or tangible materials in any form or media containing any of Seller's Trademarks or Seller's Images.

4. Specific Indemnification

Purchaser agrees and undertakes to indemnify Seller for any and all documented Costs reasonably incurred by any member of Seller's Group to the extent arising from, or in connection with, any unauthorised use of Seller's Trademarks and/or Seller's Images by any member of Purchaser Group after the Closing Date which is not permitted under this Agreement or any other executed Transaction Document.

5. Joint Notice

On or as soon as possible after the Closing Date, Purchaser and Seller shall send out a joint notice in a form and to a list agreed between Seller and Purchaser, such agreement not to be unreasonably withheld or delayed, of the suppliers, customers and clients of the Business advising them of the transfer of the Business.

6. No Use of Shared Seller's Trademarks by Seller

Seller shall, and shall procure that all members of Seller's Group will, refrain from using, in the Relevant Territory, Shared Seller's Trademarks to market and sell products competing with the Business as conducted by the Target Companies as of the Closing Date for a period of five (5) years

from the Closing Date; except that this clause 15.6 will not prohibit, restrict, or limit any Seller's Group member's use of Shared Seller's Trademarks in connection with any product or service, or any marketing or sales, (a) directed generally, or generally available, to the public and not targeted to the Relevant Territory, (b) directed to one or more customers with a substantial presence outside of the Relevant Territory, or (c) relating to the surface coatings, electronic materials or medical devices businesses.

16. Pre-Closing Covenants

1. Conduct of Business

(a) From the date of this Agreement until Closing, Seller shall procure that the Business is carried on, in all material respects, in the ordinary and usual course, except (i) for the actions, agreements, commitments, payments, transactions or other measures foreseen, permitted or reflected under this Agreement, the Transaction Documents or the Rivoira Share Swap (ii) any measures, actions or omissions to act aimed at, in connection with or relating to the separation of the Target Companies or JVCos from Seller's Group in the context of the Transaction, including, but not limited to, the carve in/carve out steps described in Schedule 11 or the re-allocation or transfer of certain employees between Seller's Group and Target Companies or JVCos (described in the document entitled "Transfer of European Employees" and identified with number 4.5 of the Global/Corporate folder in the Data Room, the "Pre-Closing Steps") (which shall be completed in such a way as to create no residual liabilities for Target Companies or JVCos, provided that Purchaser’s sole remedy in respect of any residual Tax liabilities created shall be under clause 13 of this Agreement), or (iii) any action or measure pursuant to requirements or requests of a Governmental Entity in connection with obtaining the BCA Clearance Condition or the SPA Clearance Condition (iv) any action, measure, omission to act, requirement or request by any monitoring trustee (or similar) appointed in connection with obtaining the BCA Clearance Condition or the SPA Clearance Condition, or (v) for decisions outside the ordinary business course, with the prior consent in writing by Purchaser, such consent not to be unreasonably withheld, conditioned or delayed, and deemed to be granted if Purchaser has not responded to a request from Seller for consent within ten (10) Business Days following the receipt of such request ((i) through (v) the "Permitted Actions"), it being understood that Seller shall keep Purchaser reasonably informed in relation to the completion of the Pre-Closing Steps.

(b) From the date of this Agreement until Closing, Seller shall further procure that except for Permitted Actions:

(i) the Business shall be run in the ordinary course and in accordance with prudent business practice in the manner a prudent business operator with sufficient resources would do so;

(ii) except for any dividends or distributions provided for in the Combined Carve Out Financial Statements, no Target Company declares, pays or makes any dividend or other distribution;

(iii) no Target Company repays, repurchases or reduces any of its issued share capital;

(iv) no share or loan capital is being issued or agreed to be issued by a Target Company;

(v) there is no change of the articles of association of a Target Company;

(vi) there is no merger, spin-off, change of legal form or similar measures involving or otherwise directly affecting any Target Company;

(vii) no Target Company creates any Third Party Rights over share capital held by it (other than for the benefit of another Target Company);

(viii) no Target Company sells or purchases or disposes of (other than to another Target Company) any interest in any share or loan capital or other security or interest in a company or business with a value in excess of two million (2,000,000) EUR;

(ix) all agreements between a Target Company or Controlled JVCo and members of Seller's Group take place on arm's length terms;

(x) other than in relation to an onsite plant or participation in a tender in relation to an onsite plant, no Target Company enters into or terminates any contract or incurs any commitment (either as a result of a single transaction or of a series of connected transactions), including without limitation any borrowing or indebtedness in the nature of borrowing, which has a value or is likely to involve expenditure in excess of ten million (10,000,000) EUR per annum (excluding VAT) which cannot be terminated or performed within its terms within one (1) year after the date on which it is entered into;

(xi) no Target Company enters into a contract in respect of a new on-site plant where such contract is likely to involve capital expenditures in excess of ten million (10,000,000) EUR;

(xii) no Target Company participates in a tender for an onsite plant which is likely to involve capital expenditure in excess of thirty million (30,000,000) EUR

except where Purchaser has been allowed to review and provide comments on such tender in advance of its submission;

(xiii) no Target Company enters into any guarantee, indemnity or other agreement to secure any obligation of a third party, including any member of Seller's Group (other than another Target Company);

(xiv) no Target Company (i) institutes or settles any litigation where that action is likely to result in a payment to or by a Target Company of two million (2,000,000) EUR or more (except for collection in the ordinary course of trading debts) (ii) settles an insurance claim in excess of two million (2,000,000) EUR materially below the amount claimed;

(xv) in connection with the Properties, no Target Company (i) terminates or serves any notice to terminate, surrenders or accepts any surrender of any lease, tenancy or licence; or (ii) enters into or prolongs the term of any lease, tenancy or licence by more than twelve (12) months, in each case which is material for the Business;

(xvi) no Target Company enters into or modifies materially any agreement with any Key Employee, including any off-cycle increase or amendment of salaries, benefits, bonus payment or other remuneration and on-cycle increases of more than 3% per annum as well as the termination of employment by termination notice or termination agreement;

(xvii) no Target Company: (x) assigns or otherwise transfers any Business Intellectual Property; or (y) except as required by applicable law or in accordance with the ordinary course of business, grants, modifies, agrees to terminate or permit the lapse of, or enters into any licence, agreement or arrangement concerning any Business Intellectual Property;

(xviii) no Target Company other than in the ordinary course of business makes any change to its accounting practices or policies, except as required by applicable law or applicable generally accepted accounting principles; and

(xix) no Target Company or Controlled JVCo changes its place of Tax residence.

(c) For the purposes of applying a reference to a monetary threshold expressed in EUR with respect to clause 16.1, an amount in a different currency shall be deemed to be an amount in EUR translated at the Exchange Rate at the relevant date on which the respective action is taken.

2. Regulatory Permits

Seller shall, and shall procure that the relevant Local Seller and the relevant Target Company will, between the date of this Agreement and the Closing Date (i) apply, upon Purchaser's reasonable request and at Purchaser's Cost, for any regulatory permit, licence or authorisation ("Regulatory Permit") for the relevant Target Company (or any amendment of existing Regulatory Permits) which it does not already have and is required for the Target Company to carry on the Business in a manner consistent with past practice and use reasonable endeavours to obtain such Regulatory Permit prior to Closing and, (ii) in case (i) cannot be completed by Closing, agree with Purchaser upon appropriate transitional arrangements to be entered into by the relevant member of Seller's Group and the relevant Target Company for a transition period between Closing and the date the required Regulatory Permit will have been obtained, such agreement not to be unreasonably withheld or delayed.

3. Insurance

From the date of this Agreement until (and including) the Closing Date, members of Seller's Group shall and shall procure that the Target Companies ensure that all material policies of insurance maintained by them in respect of the Business continue in full force and effect and Seller shall procure (i) that all insurance premiums under such policies are paid when due, (ii) that the terms or coverage of any such insurance policies are not altered and (iii) that no actions are taken or omitted that would entitle any of the insurers under any such insurance policies to refuse indemnity in relation to particular claims in whole or in part.

Upon Closing, all insurance cover arranged in relation to the Business by Seller's Group, other than insurance cover held by the Target Companies with a third party and being unrelated to group insurance policies arranged by Seller's Group, shall cease and no member of Purchaser Group shall make any claim under any such policies in relation to insured events arising after Closing. Seller and any members of Seller's Group shall be entitled to make arrangements with its insurers to reflect this clause.

4. Finalising Transaction Documents

(a) The Parties acknowledge and agree that whilst the main body of each of the Transitional Services Agreement, Product Supply Agreement and IP Covenant Agreement are in Agreed Form, as at the date of this Agreement certain schedules and riders to these documents are not in Agreed Form.

(b) Seller and Purchaser agree to use their reasonable endeavours to (i) negotiate, agree and finalise the NoxBox Agreement and the Storage Agreements; (ii) agree the final form of the schedules referred to in paragraph (a) above and Schedule 3; and (iii) reach agreement in respect of any

other Agreed Form document that the Parties have not finally concluded as at the date of this Agreement, in each case prior to Closing.

5. Clean-ups regarding Conversion of DivestCo 2

Without undue delay after the date hereof and in any event prior to the Closing Date, Seller shall use reasonable endeavours to procure that (i) article 2.5.2 of the notarial deed no. 1407/2018 of notary Brücker in Düsseldorf regarding the change of legal form of DivestCo 2 is corrected by the notary to reflect that Praxair Seller 2 subscribed to 4,999,999 shares in DivestCo 2 and (ii) article 3 of the articles of association of DivestCo 2 currently filed with the German commercial register is amended to reflect the identity of both original shareholders of DivestCo 2 as well as the number of shares originally subscribed to by each shareholder. Seller shall further use reasonable endeavours to procure that the corrected notarial deed pursuant to sub-clause (i) and a duly notarised copy of the articles of association pursuant to sub-clause (ii) are promptly filed with the commercial register kept at the local court of Düsseldorf.

6. Rivoira Share Swap

Seller shall use reasonable endeavours to obtain a written waiver as soon as practicable from each of the shareholders of each of (i) IGAT - Industria Gas Tecnici S.p.A. and (ii) Chemgas S.r.l., pursuant to which such shareholders irrevocably waive their respective pre-emptive rights in connection with the Rivoira Share Swap. Seller shall provide Purchaser with a copy of each such waiver as soon as practicable after it has been obtained. Each Party shall cooperate reasonably and in good faith with the other Party to obtain such waivers. Seller shall also use reasonable endeavours to take all necessary steps to obtain all relevant merger clearance approvals.

17. Post-Closing Covenants

1. Access to Information of Target Companies

For the longer of (i) the retention period under applicable laws and (ii) the period of seven (7) years following the Closing Date, Purchaser shall procure that:

(a) The Target Companies shall provide, subject to applicable laws, Seller and Local Sellers (at Seller's or Local Sellers' Cost) with reasonable access during Working Hours to (and the right to take copies of) the books and accounts and all other data held by them after Closing to the extent that they relate to the Business, or Seller's Group business (if any), in the period up to

Closing and are required for formal third party investigations and reviews such as tax or regulatory investigations or for preparation of accounts or in connection with third party proceedings or in connection with any Claim or Tax Claim ("Records").

(b) The members of Purchaser Group shall (at Seller's Cost) also give such assistance to any member of Seller's Group as Seller may reasonably request in relation to any third party proceedings by or against any member of Seller's Group so far as they relate to the Business, including proceedings relating to employees' claims or Taxes. No member of Purchaser Group shall be under the obligation to become a party to such proceedings.

In the event of any conflict or inconsistency between this clause 17.1 and clause 13.8 (Co-operation on Tax Matters), the provisions of clause 13.8 shall prevail.

2. Access to Information of Seller

For the longer of (i) the retention period under applicable laws and (ii) the period of seven (7) years following the Closing Date, Seller shall procure that:

(a) The members of Seller's Group shall provide, subject to applicable laws, Purchaser with reasonable access during Working Hours to (and the right to take copies of) the books and accounts and all other data held by them after Closing to the extent that they relate to the Business in the period up to Closing and are required for formal third party investigations and reviews such as Tax or regulatory investigations or for preparation of accounts or Tax Returns or in connection with third party proceedings ("Seller's Records").

(b) The members of Seller's Group shall (at Purchaser's Cost) also give such assistance to any Target Company as Purchaser may reasonably request in relation to any third party proceedings by or against any Target Company so far as they relate to the Business in the period up to Closing, including proceedings relating to employees' claims or Taxes. No member of Seller's Group shall be under the obligation to become a party to such proceedings.

3. Cooperation

Each of the Parties shall for no additional consideration or payment execute (or procure the execution of) such further documents and take such further action as may be required by law or be necessary to implement and give effect to this Agreement.

18. PLC Guarantee

PLC hereby unconditionally and irrevocably guarantees as of the completion of the Business Combination to Purchaser by means of an independent guarantee promise the full, due and timely performance and observance of any and all obligations of Seller and Local Sellers under this Agreement or the Transaction Documents (each, a "Guaranteed Obligation" and together, the "Guaranteed Obligations") ("PLC Guarantee").

The PLC Guarantee shall not be affected by any act, omission, matter or thing which, but for this clause 18, would reduce, release or prejudice any of the Guaranteed Obligations under this clause 18 (without limitation and whether or not known to it or Purchaser).

If any payment by Seller or any discharge given by Purchaser is avoided or reduced as a result of insolvency or any similar event, the liability of Seller and PLC shall continue as if the payment, discharge, avoidance or reduction had not occurred and Purchaser shall be entitled to recover the value or amount of that security or payment.

Provided that the liability of PLC shall under no circumstances exceed that of Seller under the terms of this Agreement or the other Transaction Documents, whenever Seller does not pay any amount when due under or in connection with the Guaranteed Obligations, if the due date for Seller's obligation has passed for more than fifteen (15) Business Days and Purchaser's claim has not been settled by Seller, PLC shall, within five (5) Business Days of receipt of a written request from Purchaser pay that amount, provided that the only remedy of Purchaser under the PLC Guarantee shall be the payment of sums due under the Agreement or damages for breach of contract.

The consideration for the Guaranteed Obligations shall be the payment in cash by Purchaser to PLC of an amount equal to EUR 1.00, receipt of which is hereby acknowledged by PLC.

19. Conflict with other Agreements

1. Conflict

If there is any conflict between the terms of this Agreement and any other Transaction Document, this Agreement shall prevail (as between the Parties to this Agreement and as between any members of Seller's Group and any members of Purchaser Group) unless (i) such other Transaction Document expressly states that it overrides this Agreement in the relevant respect and (ii) Seller and Purchaser are either also parties to that other Transaction Document or otherwise expressly agree in writing that such other agreement shall override this Agreement in that respect.

2. No Conflicting Claims

Without prejudice to clause 19.1, Purchaser undertakes that no claim shall be made by any member of Purchaser Group or by any Target Company or JVCo against any member of Seller's Group under any of the Local Transfer Agreements for breach of any warranty, representation, undertaking, covenant or indemnity relating to the sale of any of the Target Companies or JVCos other than those which are required to implement the transfer of those DivestCo Shares which are to be transferred on the basis of the relevant Local Transfer Agreement. Should, nevertheless, such claims be made, Purchaser shall indemnify and hold harmless the relevant member of Seller's Group in respect of any claims, actions, proceedings, losses and Costs arising in respect of the same.

20. Responsibility after Closing

1. Assumption of Responsibility

Except for claims of Purchaser or any other member of Purchaser Group against Seller or PLC arising under this Agreement or the Transaction Documents, Purchaser shall and shall procure that each member of Purchaser Group, including from the Closing Date the Target Companies: (i) to the extent permitted under applicable law, waives (with effect from Closing or thereafter as soon as permitted under applicable law), and (ii) abstains from pursuing (in each case) any claim against any member of Seller's Group and Seller's Representatives in connection with the Business before Closing, unless such claim is based on fraud. Nothing in this clause 20 shall limit Purchaser's right to assert any claims or obligations against Seller expressly provided for under another provision of this Agreement in which case this clause 20 shall not apply.

2. Indemnification of Members of Seller's Group and Seller's Representatives

If, after Closing has taken place, any member of Seller's Group or any Seller's Representative is held liable for any claims, actions, proceedings, losses and Costs:

(a) of any Target Company;

(b) as a result of Seller's or other members of Seller's Group's shareholding or ownership interest in any Target Company; or

(c) any claims relating to Inter-Company Payables and Inter-Company Receivables,

then Purchaser shall indemnify and hold harmless each member of Seller's Group and any Seller's Representative in respect of any claims, actions, proceedings, losses and Costs arising in respect of the same. Nothing in this clause 20.2 shall limit Purchaser's right to assert any claims or obligations

against Seller, including Warranty Claims, expressly provided for under another provision of this Agreement.

21. Announcements, Confidentiality

1. Announcements

No Party (nor any of their respective Affiliates) shall make any external public announcement or issue any external circular in connection with the occurrence of the Transaction or the existence or subject matter of this Agreement (or any other Transaction Document) without the prior written approval of Purchaser or Seller, as the case may be (such approval not to be unreasonably withheld or delayed). The Parties will cooperate and act in good faith to align their communications to employees, customers and suppliers of the Business in relation to the Transaction.

The restriction in this clause 21.1 shall not apply to the extent that the announcement or circular is required by law, by any stock exchange or any regulatory or supervisory body or authority of competent jurisdiction, whether or not the requirement has the force of law. If this exception applies, the Party making the announcement or issuing the circular shall use its reasonable endeavours to consult with the other Parties in advance as to its form, content and timing.

2. Confidentiality

(a) The confidentiality agreement concluded between Seller, Linde and Purchaser as of 6 March 2018 (the "Confidentiality Agreement") shall remain in full force and effect in accordance with its terms. If there is a conflict between the terms of the Confidentiality Agreement and the terms of this Agreement, the provisions of this Agreement shall prevail.

(b) Subject to clauses 21.2(d) and 21.2(e), Seller shall (and shall procure that each member of Seller's Group, and, in respect of the period up to the Closing, each Target Company, and each such person's advisers and connected persons, shall) and Purchaser shall (and shall procure that each member of Purchaser Group, including, in respect of the period from the Closing, each Target Company, and each such person's advisers and connected persons, shall) keep confidential the provisions and subject matter of, and the negotiations relating to, each Transaction Document.

(c) Purchaser:

(i) shall, and shall procure that each other member of Purchaser Group for the time being shall, keep confidential all information provided to it by or on behalf of Seller or otherwise obtained by it in connection with this Agreement which relates to Seller or any other member of Seller's Group; and

(ii) shall procure that, if after Closing any Target Company holds confidential information relating to Seller or any other member of Seller's Group, that Target Company shall after Closing keep that information confidential and, shall upon request return that information to Seller or destroy it without retaining copies to the extent technically feasible.

(d) Nothing in clauses 21.2(b) or 21.2(c) prevents any confidential information being disclosed:

(i) where such confidential information disclosed comprises only information set out in an announcement in the Agreed Form;

(ii) with the written approval of the other Parties; or

(iii) to the extent required by law, by any stock exchange or any regulatory or supervisory body or authority of competent jurisdiction, whether or not the requirement has the force of law, but if a person is so required to disclose any confidential information, the relevant party shall promptly notify the other Parties, where practicable and lawful to do so, before the disclosure occurs (as the case may be) and shall co-operate with the other Parties regarding the timing and content of such disclosure (as the case may be) or any action which the other parties may reasonably elect to take to challenge the validity of such requirement.

(e) Nothing in clauses 21.2(b) or 21.2(c) prevents any confidential information being disclosed to the extent:

(i) required to enable any person to enforce its rights under any Transaction Document or for the purpose of any judicial proceedings;

(ii) that the information is disclosed on a strictly confidential basis by a person to its professional advisers, auditors or bankers;

(iii) that the information is disclosed by Seller on a strictly confidential and need to know basis to another member of Seller's Group or by Purchaser on a strictly confidential and need to know basis to another member of Purchaser Group; or

(iv) that the information is in or comes into the public domain except through breach of the provisions of this Agreement or through breach of any other duty of confidentiality relating to that information.

(f) Seller shall implement, or shall procure the implementation by each member of Seller's Group of, all necessary measures to ensure that, after the Closing Date, neither Seller nor any member of Seller's Group obtains any customer information used in the Business and that any such

customer information obtained by Seller or any member of Seller's Group before the Closing Date is, as soon as reasonably practicable but, in any event, within ninety (90) calendar days of the Closing Date destroyed (to the extent technically feasible) by Seller and members of Seller's Group without retaining copies, provided that Seller and members of Seller's Group shall be entitled to retain such customer information which is required to be kept by law or regulation.

(g) Seller undertakes to procure that the customer information referred to in paragraph (f) above will not, from Closing, be accessible to employees of Seller or members of Seller's Group working in sales, marketing, products, customer relations, research and development or pricing.

22. Non-Solicit

1. Seller's Non-Solicit Undertaking

Seller agrees and undertakes that between the date of this Agreement and Closing and, further, for a subsequent period of two (2) years from the Closing Date it will not, and will procure that no member of Seller's Group will (for as long as it is a member of Seller's Group) offer employment to, enter into a contract for the services of, or attempt to entice away any Key Employee.

2. Purchaser Non-Solicit Undertaking

Purchaser agrees and undertakes that between the date of this Agreement and Closing and, further, for a subsequent period of two (2) years from the Closing Date it will not, and will procure that no member of Purchaser Group will (for as long as it is a member of Purchaser Group) offer employment to, enter into a contract for the services of, or attempt to entice away any persons who are then employees of Seller or any member of Seller's Group and with whom Purchaser or Purchaser's Representatives have come in contact in the course of analysing or negotiating the Transaction.

3. Exemptions

Nothing in this clause 22 shall prevent any member of Seller's Group or Purchaser Group, respectively, from offering to employ, entering into a contract for the services or attempting to entice any person away where such employee has not been approached by or on behalf of any member of Seller's Group or Purchaser Group, as applicable, but has responded to a public advertisement open to employees' generally which has not been drawn to that employee's attention by or on behalf of Seller's Group or Purchaser Group, as applicable.

23. Notices, Agent for Service of Process

1. Notices

Any notice in connection with this Agreement shall be in writing in English and delivered by hand, fax, registered post or courier using an internationally recognised courier company. A notice shall be effective upon receipt and shall be deemed to have been received (i) at the time of delivery, if delivered by hand, registered post or courier or (ii) at the time of transmission if delivered by fax provided that in either case, where delivery occurs outside Working Hours, notice shall be deemed to have been received at the start of Working Hours on the next following Business Day.

From the date of this Agreement until Closing, notices delivered in accordance with clause 16.1(a) (and only for the purposes of clause 16.1(a)) may be delivered by Email, the applicable Email addresses (for those purposes only) are set out below.

The addresses and fax numbers of the Parties for the purpose of clause 23 are:

(a) If to Praxair, to:

Praxair, Inc.

10 Riverview Dr.

Danbury, CT 06810

United States of America

Attention: General Counsel

Fax: +1 (203) 837 2515

Email: guillermo_bichara@praxair.com

with a copy (which shall not constitute notice) to:

Linde AG

Klosterhofstraße 1

80331 Munich

Germany

Attention: Head of M&A

Fax: + 49 89 35757-1255

Email: christian.ortenburg@linde.com

Attention: Head of Group Legal and Compliance

Fax: +49 89 35757-1475

Email: christoph.hammerl@linde.com

(b) If to PLC, to:

Linde Public Limited Company

The Priestley Centre

10 Priestley Road, The Surrey Research Park

Guildford, Surrey GU2 7XY

United Kingdom

Attention: Company Secretary

Fax: +44 1483 505211

Email: andrew.brackfield@boc.com

Rick_Steinseifer@praxair.com

with a copy (which shall not constitute notice) to:

Linde AG

Klosterhofstraße 1

80331 Munich

Germany

Attention: Head of M&A

Fax: + 49 89 35757-1255

Email: christian.ortenburg@linde.com

Attention: Head of Group Legal and Compliance

Fax: +49 89 35757-1475

Email: christoph.hammerl@linde.com

and to Praxair (as per clauses 23.1 (a)).

(c) If to Purchaser, to:

Taiyo Nippon Sanso Corporation

Attention: Tsutomu Moroishi

Corporate Officer/Executive GM - Global Operations

1-3-26 Koyama

Shinagawa-ku, Tokyo 142-8558 Japan

Fax: +81 3 6866 1878

Email: tsutomu.moroishi@tn-sanso.co.jp

with a copy (which shall not constitute notice) to:

Matheson Tri-Gas, Inc.

Attention: Stephen Stroud

150 Allen Road

Basking Ridge NJ 07920

United States of America

Fax: +1 908 604 1470

Email: sstroud@mathesongas.com

2. Service of Process Agent for Purchaser

Purchaser shall at all times maintain an agent for service of process and any other documents in proceedings in England or any other proceedings in connection with this Agreement and any other Transaction Document. Such agent shall initially be Law Debenture Corporate Services Limited, Fifth Floor, 100 Wood Street, London EC2V 7EX, England. Any claim form, judgment or other notice of legal process shall be sufficiently served on Purchaser if delivered to such agent at its address for the time being. Purchaser undertakes not to revoke the authority without giving at least ten (10) Business Days' notice in writing to Seller of such proposed revocation and to appoint another such agent with an address in England upon such revocation. If, for any reason, Seller reasonably requests Purchaser to do so, it shall promptly appoint another such agent with an address in England and advise Seller. If, following such a request, Purchaser fails to appoint another agent; Seller shall be entitled to appoint one on behalf of Purchaser at the expense of Purchaser.

3. Service of Process Agent for Seller

Seller shall at all times maintain an agent for service of process and any other documents in proceedings in England or any other proceedings in connection with this Agreement and any other Transaction Document. Such agent shall initially be Linde Public Limited Company at The Priestley Centre, 10 Priestley Road, Surrey Research Park, Guildford, Surrey, GU2 7XY, England. Any claim form, judgment or other notice of legal process shall be sufficiently served on Seller if delivered to such

agent at its address for the time being. Seller undertakes not to revoke the authority without giving at least ten (10) Business Days' notice in writing to Purchaser of such proposed revocation and to appoint another such agent with an address in England upon such revocation. If, for any reason, Purchaser reasonably requests Seller to do so, it shall promptly appoint another such agent with an address in England and advise Purchaser. If, following such a request, Seller fails to appoint another agent, Purchaser shall be entitled to appoint one on behalf of Seller at the expense of Seller.

24. Whole Agreement, Remedies

1. Whole Agreement

This Agreement and the other Transaction Documents contain the whole agreement between the Parties relating to the transactions contemplated by this Agreement and the other Transaction Documents and supersede all previous agreements (whether oral or written) between the Parties relating to these transactions, other than the Confidentiality Agreement.

2. Remedies

It is agreed between the Parties that:

(a) no Party shall have any claim or remedy in respect of any statement, representation, warranty or undertaking made by or on behalf of any other Party or Parties (or any of the members of Seller's Group or Seller's Representatives or members of Purchaser Group or Purchaser's Representatives (as the case may be)) in relation to the Transaction which is not expressly set out in this Agreement or any other Transaction Document;

(b) in entering into this Agreement and the Transaction Documents, Purchaser has not relied and is not relying upon any express or implied representation, statement, assurance, or warranty whether oral or written of any person (whether Party to this Agreement or not) other than the Warranties or as expressly set out in the Transaction Documents and neither the members of Seller's Group, nor Seller's Representatives have given or made any express or implied representation, warranty, statement, assurance or undertaking in relation to the Target Companies, JVCos, or Target Companies' or JVCos' businesses, assets, liabilities, operations, prospects, or condition (financial or otherwise), including with respect to merchantability or fitness for any particular purpose of any assets, the nature or extent of any liabilities, the prospects of its business, the effectiveness or the success of any operations, other than as expressly set out in the Warranties;

(c) any terms or conditions implied by law in any jurisdiction in relation to the Transaction (including any right under common law, tort, statute (including under the Misrepresentation Act 1967), equity, or otherwise) are excluded to the fullest extent permitted by law or, if incapable of exclusion, any right, or remedies in relation to them are irrevocably waived;

(d) except for any liability in respect of a breach of this Agreement or any other Transaction Document, no Party (or any of the members of Seller's Group or Seller's Representatives or members of Purchaser Group or Purchaser's Representatives (as the case may be)) shall owe any duty of care or have any liability in tort or otherwise to any other Party or Parties (or any of the members of Seller's Group or Seller's Representatives or members of Purchaser Group or Purchaser's Representatives (as the case may be)) in relation to the Transaction;

(e) the only right or remedy of a relevant Party in relation to the Transaction, any provision of this Agreement or any other Transaction Document shall be, unless specifically stated otherwise herein, be for breach of this Agreement or the relevant Transaction Document;

(f) no member of Seller's Group, nor Seller's Representatives (having only a right but not an obligation to make certain disclosures hereunder) have given or made any representation or warranty as to the accuracy or completeness of the Disclosure Letter, the contents of the Data Room, any management presentations, any management accounts or financial statements (other than the Combined Carve Out Financial Statements), any financial fact book, tax fact book, legal fact book, environmental fact book, information memorandum and any other information, or of the forecasts, estimates, projections, statements of intent or statements of opinion provided to Purchaser or Purchaser's Representatives on or prior to the date of this Agreement, including anything contained in or derived from any of the foregoing;

provided that nothing in this clause shall exclude any liability for (or remedy in respect of) fraud or fraudulent misrepresentation by a Party.

Each Party agrees to the terms of this clause 24.2 on its own behalf and as agent for each of the members of Seller's Group and Seller's Representatives or members of Purchaser Group and Purchaser's Representatives (as the case may be).

25. Miscellaneous

1. Costs

(a) Except as otherwise provided in this Agreement or any other Transaction Document, each Party shall be responsible for its own Costs (including those of its Affiliates) incurred in connection with the Transaction.

(b) Seller shall bear all fees of Governmental Entities in relation to obtaining the BCA Clearance Condition, and Purchaser shall bear all fees of Governmental Entities in relation to obtaining the SPA Clearance Condition, whereas each Party shall bear its own Costs incurred with these proceedings.

(c) Except as otherwise provided for in this Agreement or any other Transaction Document, Purchaser shall bear all notarisation fees, stamp duties and similar transfer Taxes and any fees of courts or Governmental Entities or regulatory authorities with respect to notifications, filings or regulatory proceedings arising in respect of the purchase of the DivestCo Shares pursuant to this Agreement.

2. Assignment

Unless Seller and Purchaser agree in writing, no party shall assign, transfer or charge all or any of its rights under this Agreement or under any Transaction Document nor grant, declare, create or dispose of any right or interest in it.

Purchaser shall be permitted to assign, transfer or charge all but not less than all of its rights under this Agreement to a bank or financing institution as required solely for the purposes of debt financing the Transaction.

Any purported assignment in contravention of this clause 25.2 shall be void.

3. Contract (Rights of Third Parties) Act 1999

Except as otherwise expressly stated in this Agreement, a person who is not a Party to this Agreement may not enforce any of its terms under the Contract (Rights of Third Parties) Act 1999.

4. Waivers, Rights and Remedies

Except as expressly provided in this Agreement, no failure or delay by any party in exercising any right or remedy relating to this Agreement or any of the Transaction Documents shall affect or operate as a waiver or variation of that right or remedy or preclude its exercise at any subsequent time. No single or partial exercise of any such right or remedy shall preclude any further exercise of it or the exercise of any other remedy.

5. Counterparts

This Agreement may be executed in any number of counterparts, and by each Party on separate counterparts. Each counterpart is an original, but all counterparts shall together constitute one and the same instrument.

6. Variations

No amendment of this Agreement (or of any other Transaction Document) shall be valid unless it is in writing and duly executed by or on behalf of all of the Parties to it.

26. Invalidity

Each of the provisions of this Agreement and the Transaction Documents is severable. If any provision is held to be or becomes invalid or unenforceable in any respect under the law of any jurisdiction, it shall have no effect in that respect and the Parties shall use all reasonable endeavours to replace it in that respect with a valid and enforceable substitute provision the effect of which is as close to its intended effect as possible.

27. Governing Law, Jurisdiction

1. Governing Law

This Agreement and any non-contractual obligations arising out of or in connection with this Agreement shall be governed by English law.

2. Arbitration

Subject to the expert determination provisions set out in this Agreement, any dispute (including claims for set-off and counterclaims) arising out of or in connection with this Agreement, including disputes arising out of or in connection with: (i) the creation, validity, effect, interpretation, performance or non-performance of, or the legal relationships established by, this Agreement and (ii) any non-contractual obligations arising out of or in connection with this Agreement, which cannot be amicably resolved between the Parties within thirty (30) Business Days, or such further period as the Parties agree in writing, shall be finally settled under the Rules of Arbitration of the International Chamber of Commerce by one arbitrator agreed upon by the Parties or, in case such agreement cannot be achieved within ten (10) Business Days, by three arbitrators whereby the claimant or claimants

together, and respondent or respondents together, shall each be entitled to nominate one arbitrator, the third arbitrator being appointed by the two-party-nominated arbitrators. The seat of the arbitration proceedings shall be London, United Kingdom. The language of the arbitration shall be English. The decision of the arbitrator (or of the tribunal, as the case may be) shall be final and binding upon the Parties. No Party shall be required to give general discovery of documents, but may be required only to produce specific, identified documents which are relevant to the dispute.

3. Interim Relief

Clause 27.2 shall be without prejudice to the right of any Party to apply to the English courts to seek interim relief, at any time before and after the arbitrator (or of the tribunal as the case may be) has been appointed, up until when the arbitrator (or of the tribunal as the case may be) has made its final award, to prevent the continuation of an actual breach or a threatened breach of this Agreement and the Parties hereby submit to the non-exclusive jurisdiction of such courts for such purposes.

DM_EU 14217623-23.048691.0020

schedule 7 - seller'S warranties

1. Corporate Authorisations, No-Breach, Incorporation, Seller's Group and Shares

(a) Seller has obtained and as of the Closing Date each Local Seller will have obtained all corporate authorisations (other than to the extent relevant to the Closing Conditions) required to empower it to enter into and perform its obligations under this Agreement and any other Transaction Document, where failure to obtain them would adversely affect its ability to enter into or perform its obligations thereunder.

(b) As of the Closing Date, Seller will have obtained all governmental, statutory and regulatory authorisations required to empower it to perform its obligations under this Agreement and any other Transaction Document, where failure to obtain them would adversely affect its ability to perform its obligations thereunder.

(c) Entry into and performance by each member of Seller's Group of this Agreement and/or any Transaction Document to which it is a party will not breach any provision of its memorandum and articles of association, by-laws or equivalent constitutional documents.

(d) Subject to fulfilment of the Closing Conditions, entry into and performance by each member of Seller's Group of this Agreement and/or any Transaction Document to which it is a party will not result in a breach of any laws or regulations or of any order, decree or judgment of any court or any Governmental Entity or regulatory authority, where (in either case) the

breach would adversely affect its ability to enter into or perform its obligations under this Agreement and any other Transaction Document.

(e) This Agreement and each of the other Transaction Documents to which Seller is or will be party will, when executed, constitute legal, valid and binding obligations of Seller in accordance with their terms.

(f) The particulars relating to all Target Companies and JVCos in Schedule 1 will as of the Closing Date be true and accurate in all respects.

(g) Seller, each Local Seller, each Target Company and each JVCo is validly incorporated, in existence and duly registered under the laws of its jurisdiction of incorporation and has full power to conduct its business as conducted at the date of this Agreement.

(h) Seller has made available in the Data Room copies of the constitutional documents of each of the Target Companies and JVCos, and no action has been taken to amend any of them.

(i) Seller will at Closing be entitled to transfer (or procure the transfer of) the DivestCo Shares on the terms of this Agreement.

(j) The DivestCo Shares constitute the whole of the paid-up share capital of the DivestCos, and the shares in the DivestCo Subsidiaries held by the DivestCos constitute the whole of the paid-up share capital of the DivestCo Subsidiaries. All the DivestCo Shares and the shares in the DivestCo Subsidiaries are fully paid and free of additional payment obligations, and each Local Seller will at Closing be the sole legal and beneficial owner of the number of shares in the capital of the relevant Target Company and the relevant JVCo set out for it in Schedule 1 free from any Third Party Rights.

(k) No member of Seller's Group nor any of the Target Companies or Controlled JVCos has entered into any agreement whereby any person (other than a Target Company or a Controlled JVCo) has the right to call for the issue of any share or loan capital in any Target Company or Controlled JVCo.

(l) Other than as set out in Schedule 1, no Target Company or Controlled JVCo holds any ownership interests in any other legal entity.

2. Financial Matters

(a) The Combined Carve Out Financial Statements were prepared in accordance with the requirements of all relevant laws and US-GAAP then in force and applied on a consistent basis throughout the period involved save as disclosed therein and, subject to the basis of preparation and the assumptions made therein to reflect the separation of the respective business, present fairly, in all material respects, the combined carve-out financial position of the respective Target Companies as of the date to which they relate, and the respective

Target Companies' combined carve-out financial performance and such companies' combined carve-out cash flows for the periods to which they relate.

(b) From 31 March 2018 until the date of this Agreement and except for Permitted Actions:

(i) each Target Company has carried on business in the ordinary course;

(ii) there has been no material adverse change in the financial or trading position of any Target Company;

(iii) except for any dividends or distributions provided for in the Combined Carve Out Financial Statements, no Target Company has declared, paid or made any dividend or other distribution;

(iv) no Target Company has repaid, repurchased or reduced any of its issued share capital;

(v) no share or loan capital has been issued or agreed to be issued by a Target Company; and

(vi) other than in the ordinary course of business: (A) no capital commitment has been entered or agreed to be entered into by a Target Company to spend monies in excess of five million (5,000,000) EUR (in respect of each individual commitment) and (B) no Target Company has acquired or disposed of or agreed to acquire or dispose of any fixed asset with a value in excess of five million (5,000,000) EUR.

(c) The statutory books of each Target Company as well as other material books and records relating to the Business have been maintained in all material respects in accordance with laws of the relevant jurisdiction.

3. Financial Debt

No Target Company owes any Financial Debt to any person outside Seller's Group or has any loan agreements and other loan commitments including bonds (with the exception of customary extensions of the due date of trade receivables or payables agreed in the ordinary course of business and of inter-company agreements to be terminated prior to or at Closing) exceeding five million (5,000,000) EUR, in each case, other than (i) Financial Debt owing pursuant to agreements or instruments, details of which are set out in the Data Room, (ii) Financial Debt which will be repaid on or before the Financial Closing Date or (iii) Financial Debt reflected in the Closing Statement and reducing the Final Purchase Price.

4. Licences and Permits

Each Target Company currently holds all public licences and permits which are material for its business and required for carrying on its business in the places and in the manner in which it is carried on at

the date of this Agreement. To Seller's Knowledge, there are no circumstances which indicate that any public licence or permit, which is material to the Business, will or is likely to be revoked or not renewed, in the ordinary course of events (other than as a result of the Transaction or any of the Transaction Documents or otherwise).

5. Compliance with Law

(a) Each Target Company and each Controlled JVCo has, in the last three (3) years prior to the date of this Agreement conducted and is continuing to conduct its respective business in material compliance with all applicable laws and regulations, including Data Protection Legislation and, to Seller's Knowledge, no matter, event or circumstance exists which might lead to a Target Company or Controlled JVCo failing to materially comply with all applicable laws and regulations, including Data Protection Legislation.

(b) There has in the last three (3) years prior to the date of this Agreement been no material default by any Target Company or Controlled JVCo under any order, decree or judgment of any court or any Governmental Entity or regulatory authority in the jurisdiction in which it is incorporated which applies to the Business.

(c) Each Target Company or Controlled JVCo has conducted its business and corporate affairs in all material respects in accordance with its memorandum and articles of association, by-laws or other equivalent constitutional documents.

6. Special Regulatory Matters

(a) No Controlled JVCo has engaged in any activity or conduct that has resulted or will result in a material breach of:

(i) any applicable laws relating to money laundering and the combat of terrorism financing;

(ii) any Anti-Corruption Laws; or

(iii) any applicable laws relating to economic or trade sanctions.

(b) No Target Company nor, to Seller's Knowledge any of their respective directors, officers, employees or other persons for whom they could be liable nor any other person acting on a Target Company's behalf has engaged in any activity or conduct that has resulted or will result in a material breach of:

(i) any applicable laws relating to money laundering and the combat of terrorism financing;

(ii) any Anti-Corruption Laws; or

(iii) any applicable laws relating to economic or trade sanctions.

(c) Target Companies have in place a monitoring and compliance system to ensure compliance with the relevant laws and regulations set out in paragraph 1.6(b)(i) through (b)(iii).

7. Material Assets

(a) Target Companies own or are entitled, or will at Closing own or be entitled, except for Permitted Encumbrances, to use all the respective material assets reflected in the Combined Carve Out Financial Statements prepared as of 31 March 2018 other than those disposed of or replaced in the ordinary course of business, and such material assets are all of the material assets required to carry on the Business as currently conducted.

(b) The material assets of the Business are, except for Permitted Encumbrances, in the possession or under the control of the respective Target Companies (save where in the possession or under the control of a third party in the normal course of business).

(c) All material plant, machinery and equipment used by a Target Company for the Business are in a good state of repair (subject to normal wear and tear) and can be efficiently and properly used for the purposes for which they were acquired or retained other than where the foregoing was not the case, it would not have a material adverse impact on the Business as a whole.

(d) The material assets of the Target Companies, together with the services and assets to be provided under the Transitional Services Agreement comprise all the material assets and services that are sufficient to operate the Business substantially in the manner in which it was operated in the twelve (12) months prior to the Closing Date.

8. Insurances

The Data Room contains a summary of the insurance agreements in place on the date hereof maintained by or covering each Target Company. All corresponding premiums have been duly paid when due, to the extent required to maintain the insurance coverage under said insurance agreements and said insurance agreements are in full force and effect and, to Seller's Knowledge, no circumstances exist which can be reasonably expected to lead to the insurers avoiding any liability under them. No individual or related claims under the insurance agreements for amounts in excess of one million (1,000,000) EUR are outstanding and to Seller's Knowledge, no circumstances exist which can be reasonably expected to give rise to a claim under any of the insurance agreements.

9. Contractual Matters

(a) There are no material unremedied breaches by Target Companies of Material Agreements or, to Seller's Knowledge, by the counterparties to the Material Agreements and, to Seller's Knowledge, all Material Agreements are in full force and effect.

(b) No Material Agreement contains terms, whereby as a direct result of the entry into and performance of this Agreement or any other Transaction Documents, (x) any other party will be entitled to be relieved of any material obligation or become entitled to exercise any material right (including any termination or pre-emption right or other option) or (y) any Target Company will be in material default.

(c) During the 12 (twelve) months preceding the date of this Agreement, no major customer or supplier to any Target Company and/or to the Business has given written notice to any Target Company of its intention to take any action that would adversely impact its ongoing commercial relationship with the Target Company which written notice shall not include termination of agreements in the ordinary course of business or at the end of a term of an agreement.

10. Litigation and Investigations

(a) No Target Company is involved, as a party in any civil, criminal or administrative litigation, arbitration or administrative proceedings or any other dispute resolution process and to Seller's Knowledge, no such proceedings have been threatened in writing by or against a Target Company, where the proceedings (if successful) are likely to result in a Cost, benefit or value to the Business of ten million (10,000,000) EUR or more ("Material Litigation"). To Seller's Knowledge, there is no matter, event or circumstance which can reasonably be expected to give rise to any Material Litigation.

(b) No Target Company has received written notice in the two (2) years prior to the date of this Agreement or is to, Seller's Knowledge, otherwise aware of any current or pending material investigation by a Governmental Entity concerning any Target Company or any person for whom it would be liable.

11. Insolvency

(a) Neither Seller, nor Local Seller or any Target Company or Controlled JVCo is insolvent or bankrupt under the laws of its respective jurisdiction of incorporation, unable to pay its debts as they fall due or has proposed or entered into any arrangement (whether by court process or otherwise) with their creditors or any class of its creditors.

(b) Neither Seller, nor Local Seller or any Target Company or Controlled JVCo has received any written notice concerning or is otherwise aware of the appointment of an administrator or a receiver (including any administrative receiver or the equivalent to a receiver or administrative receiver in the relevant jurisdiction) in respect of the whole or any material part of the property, assets and/or undertakings of the Business.

(c) No order has been made and no resolution has been passed for the winding-up of Seller, any Local Seller or any Target Company or Controlled JVCo and, to Seller's Knowledge, no petition has been presented for that purpose.

12. IP/IT/Data Protection

(a) The Target Companies own or have licensed to them or may legally use all material Intellectual Property Rights necessary to carry on the Business as currently carried on ("Business Intellectual Property"). The licences of Intellectual Property Rights granted to, or by, any Target Company are (other than licenses to rights in computer software which are not material to the Business) Disclosed in the Data Room. To Seller's Knowledge, the Business Intellectual Property has not been and is not being violated by any third party.

(b) To Seller's Knowledge, there is no actual, pending or threatened action or proceeding or other dispute resolution process regarding the validity, subsistence or enforceability of the Business Intellectual Property that is material to the Business.

(c) To Seller's Knowledge, in the two (2) years prior to the date of this Agreement, Target Companies have not violated and do not violate third parties' Intellectual Property Rights by the production, marketing, sale or distribution of their current products or by any other actions in the conduct of the Business as currently carried on.

(d) All licences (other than off-the-shelf licenses) and leases relating to the material IT Systems being available to the Business after Closing have been Disclosed in the Data Room, unless such IT Systems are only licensed or leased after the date of this Agreement.

13. Real Estate

(a) Details in respect of the Properties are contained in the Data Room.

(b) A Target Company has valid legal title or a right to use each of the Properties and there is no Third Party Right in or over or affecting any of the owned Properties.

(c) Each Target Company in which title to a Property is vested has performed, observed and/or complied with (as the case may be) all covenants (whether in relation to freehold or leasehold land), conditions, agreements, statutory requirements, planning consents, by-laws, orders and regulations affecting such Property where failure to do so would be material to the Target Company and no written notice of any breach of any of these matters has been received.

14. Environmental Matters

(a) (i) No Target Company or Controlled JVCo is in material breach of any Environmental Laws relating to the operations carried on at any Property owned or used by any Target Company in relation to the Business, nor is there any pollution or contamination of the

Environment on, in or migrating from any Property, which is reasonably likely to give rise to material liability of any Target Company, and (ii) there are no material claims or proceedings pending or threatened in writing against any Target Company with respect to any breach of Environmental Laws relating to the Business and/or the Properties.

(b) Each Target Company has all requisite Environmental Licences necessary to carry on its business as currently carried on (all of which are valid and subsisting) and no Target Company has received written notice that it is materially in default under any Environmental Licence. To Seller's Knowledge, no events have occurred as a result of which any Environmental Licence may be revoked or suspended (in whole or in part) or any material conditions may be imposed on any Target Company.

(c) No Target Company is engaged in any material litigation, arbitration or administrative proceedings concerning any Environmental Law or Environmental Matter.

15. Employment

(a) The Disclosure Letter contains an anonymised, true and accurate list of the Employees employed by each Target Company. Such list provides information in respect of material remuneration entitlements such as salary, bonus, profit participation or other variable remuneration elements, and stock options, stock appreciation rights or similar rights, as well as pensions and the country or territory in which they usually work. Except as set out in such list, no obligations of the Target Companies exist to increase and/or amend any Employee's salary, benefits, bonus payment or other remuneration by more than 5% per annum.

(b) The Disclosure Letter contains copies of the contracts of employment as well as any material amendment agreements or side letters to those contracts of employment, if any for all Key Employees.

(c) Neither the Target Companies nor, to Seller's Knowledge, the Key Employees are in material breach of the contracts referred to in paragraph 1.15(b) of this Schedule 7 and all Target Companies have, in all material respects, on the due date and in compliance with applicable law, paid any sums which have become due and payable in respect of Employees, including in relation to their pension and benefit arrangements.

(d) The Data Room contains template copies of the standard terms and conditions of employment typically applicable to Employees of the relevant Target Companies. The principal terms and conditions of the contracts of employment of the Employees do not materially deviate from said standard terms and conditions contained in the Data Room.

(e) No Key Employee has given or received notice of termination of his/her employment or has entered into a termination agreement with any of the Target Companies.

(f) No offer of employment has been made by a relevant Target Company to an individual who would be entitled to a fixed salary of greater than one hundred and fifty thousand (150,000) EUR if such offer were accepted, which has not yet been accepted or which has been accepted but where the employment has not yet started.

(g) No Key Employee is entitled to any bonus payments by any of the Target Companies as a result of the consummation of this Agreement, and no Key Employee has received an offer of employment or offer to otherwise enter into a contract for their services from any member of Seller's Group, Seller's Representatives or Representatives of any member of Seller's Group (for as long as it is a member of Seller's Group).

(h) The Data Room contains a complete list of all deferred and variable remuneration schemes in which the Employees participate as at the date of this Agreement.

(i) The Data Room contains complete copies of all material collective agreements (other than those entered into by the relevant employer's association or binding on any Target Company by operation of law) with trade unions, worker's councils or similar organisations or bodies of employee representatives to which any relevant Target Company is bound, which provide for material payment obligations of a Target Company or impose any restriction as to the future closure of plants or other restructurings affecting the workforce, in particular, there are no reconciliation of interest agreements or social plans beyond what is in the Data Room.

(j) No Target Company is experiencing (i) any strike or lockout of its employees or (ii) any dispute with any union, workers' council or other body of employee representatives pending before any court, Governmental Entity or arbitrator which relates to an alleged material breach of any of the agreements described in paragraph 1.15(i) or to any labour relations or employment matters of a general and significant nature (including mass lay-offs or unfair labour practices).

(k) No Target Company is bound by any pension or retirement plan or commitment which obligates it to pay any pension or retirement (including early retirement) benefit to any of its current or former employees (other than any defined contribution plans and employer's contributions to statutory pension schemes), except for the pension or retirement plans or commitments copies of which are contained in the Data Room. All such applicable pension plans currently materially comply with their governing documents and have been duly funded as far as necessary under applicable law.

16. Finders' Fee

No Target Company has any obligation or liability to pay any fee or commission to any broker, finder or agent with respect to this Agreement and the consummation of the transactions contemplated hereby.

17. Tax Warranties

(a) The information provided in the Tax Fact Book is true and accurate in all material respects and is not misleading in any material respect and, with regard to contingency reserves, audits and examinations, is still true and accurate as of the Financial Closing Date.

(b) All Tax Returns required to have been filed by each Target Company have been filed on time. Such Tax Returns are true and accurate in all material respects.

(c) All Taxes which are or have been due and owing by each Target Company (whether or not shown on any Tax Return) have been paid on time.

(d) The Combined Carve Out Financial Statements contain any provision, reserve or allowance in respect of Tax required by all relevant laws and US-GAAP to have been contained therein and present fairly, in all material respects, the Tax position of the Target Companies as of the date to which they relate. If all relevant facts now known to Seller, Target Companies and/or their auditors had been known by Target Companies and their auditors when the Combined Carve Out Financial Statements were prepared, any provision, reserve or allowance in respect of Tax that would have been shown in the Combined Carve Out Financial Statements in those circumstances would have been the same as the provision, reserve or allowance which was in fact shown therein.

(a) Each Target Company is and has at all times been resident for Tax purposes in its place of incorporation and is not and has not at any time been treated as resident in any other jurisdiction for any Tax purposes. No Target Company is subject to Tax in any jurisdiction other than its place of incorporation other than Disclosed by Seller in the Tax Fact Book.

(b) No Target Company is involved in any current dispute or action with a Tax Authority or is or has in the last five years been the subject of any investigation, enquiry, audit or non-routine visit by any Tax Authority other than Disclosed by Seller in the Tax Fact Book. Seller is not aware that in relation to any of the Target Companies an investigation, enquiry, audit or non-routine visit by any Tax Authority is planned.

(c) No Tax Authority has operated or agreed to operate any special arrangements (being an arrangement which is not based on relevant legislation or any published practice) in relation to any Target Company's Tax affairs.

(d) There are no encumbrances for Taxes upon the assets of any Target Company.

(e) No Target Company is a party to, or bound by, any Tax indemnity, Tax sharing or Tax allocation agreement other than as described in the Tax Fact Book.

(f) No Target Company is a party to any joint venture, partnership or other arrangement or contract that could be treated as a partnership for federal income Tax purposes other than as described in the Tax Fact Book.

DM_EU 14217623-23.048691.0020

schedule 8 - remedies and limitations

1. General Remedy

(a) Subject to paragraph (b) below, the only remedy of Purchaser in respect of a Claim shall be damages for breach of contract and in respect of a Warranty Claim shall be damages for breach of the Warranties.

(b) Purchaser shall not be prohibited from seeking specific performance or other similar equitable relief in respect of the obligations contained in clause 2.1 of this Agreement if: (i) the Business Combination has completed; and (ii) Purchaser is ready and able to perform its obligations pursuant to clause 10 of this Agreement.

2. SpecificLimitations

Neither Purchaser nor any other member of Purchaser Group shall be entitled to claim for any:

(a) punitive, special, exemplary, incidental, indirect or consequential losses or damages;

(b) loss of goodwill or possible business after Closing, whether actual or prospective;

(c) pure economic loss;

(d) penalties, charges or interest arising directly or indirectly from any act, transaction or omission of Purchaser or any other member of Purchaser Group after Closing; and

(e) legal or other professional fees, costs and expenses unless reasonably and properly incurred and evidenced, provided that this paragraph (e) shall not apply in respect of any claim made by Purchaser pursuant to clause 12 (Seller's Indemnities) or clause 13.1 (Taxes) of this Agreement.

Any Claims shall be calculated on a pro rata-basis which reflects, as the case may be on a look through basis, the percentage of the direct or indirect ownership in the respective Target Company or JVCo as it is acquired by Purchaser under this Agreement.

3. Knowledge

Seller shall not be liable in respect of any Warranty Claim if and to the extent that the fact, matter, event or circumstance giving rise to such Warranty Claim:

(a) has been fairly disclosed to Purchaser or any of Purchaser's Representatives in the Disclosure Letter or any document or other information in the Data Room on or before the date of this Agreement in sufficient detail to enable a reasonable purchaser to identify and make a reasonably informed assessment of the nature of the fact, matter or circumstance so disclosed ("Disclosed"); or

(b) is within the actual knowledge of the following specified Purchaser's Representatives at the date hereof ("Known"): Scott Kallman, Steve Foster, Stephen Stroud, John Molnar and Ron Wettig.

4. Reserves in Accounts

Seller shall not be liable for any Claim to the extent that the fact, matter, event or circumstance giving rise to the Claim is reflected in, provided for, reserved for or accrued in the Combined Carve Out Financial Statements or is provided for, reserved for, accrued for or otherwise property taken into account in the Closing Statement or any Adjustment Payments.

5. Recovery

Seller shall not be liable in respect of any Claim to the extent that the amount of such Claim is recoverable, directly or indirectly, by Purchaser under a policy of insurance in force for the benefit of Purchaser, other members of Purchaser Group or any Target Company or JVCo, provided that for the purposes of enabling Purchaser to establish whether a relevant Claim is recoverable, the time limitations in paragraph 14 of this Schedule 8, will be suspended for a period not to exceed eighteen (18) months in respect of the relevant Claim in order to determine the recoverability of the relevant Claim.

6. Legislative Changes

Seller shall not be liable in respect of any Claim if and to the extent such Claim arises or is increased as a result of a change in law or any change in interpretation of law on the basis of case law, regulation, directive, requirement or any change or changes to any published administrative practice of any government, governmental department, agency or regulatory body (whether relating to rates or imposition of Tax or otherwise) made after the date hereof irrespective of whether any of the aforementioned changes were formally announced prior to or at the date hereof or not.

7. No Double Recovery

If and whenever a specific loss gives rise to more than one Claim (or to a Claim and a Tax Claim), Purchaser shall not be entitled to recover damages or obtain payment, reimbursement, restitution or indemnity in respect of the same specific loss to the extent already recovered or received by Purchaser.

8. Accounting, and Business Changes

Seller shall not be liable in respect of any Claim if and to the extent such Claim arises or is increased as a result of:

(a) any change after Closing of the date to which any Target Company or JVCo prepares its accounts or in the bases, methods, principles or policies or accounting of any Target Company or JVCo other than a change which is required because such bases, methods, principles or policies of accounting as at the date of Closing are materially not in accordance with applicable law or any published accounting practice or principle then current; or

(b) a cessation, or any change in the nature or conduct, of any trade carried on by any Target Company or JVCo at Closing, being a cessation or change occurring on or after Closing.

9. Contingent Liabilities

If any Warranty Claim is based upon a liability which is contingent only, Seller shall not be liable to make any payment unless such contingent liability ceases to be contingent and becomes an actual obligation to make a payment within six (6) months of the relevant time periods set out in paragraph 14 of this Schedule 8 and Purchaser, within those six (6) months, notifies Seller that such Warranty Claim has ceased to be contingent. If legal proceedings have not been validly served upon the respective defendant within six (6) months of the date on which Purchaser notified Seller that the Warranty Claim ceased to be contingent, the Warranty Claim shall be deemed withdrawn and shall become fully barred and unenforceable.

10. Cure of Breach

If a breach of a Warranty is capable of remedy by Seller, Purchaser shall only be entitled to monetary compensation in respect of such breach if it gives Seller written notice of the breach and the breach is not remedied by Seller within ten (10) Business Days after the date on which such notice is served on Seller. Without prejudice to its duty to mitigate any loss, Purchaser shall (or shall procure that any relevant member of Purchaser Group shall) provide all reasonable assistance to Seller at Seller's Cost to remedy any such breach.

11. Mitigation

Seller shall not be liable for any Claim to the extent that it would not have arisen but for, or has been increased as a result of any voluntary act, omission or transaction carried out by Purchaser on or before Closing or by any member of Seller's Group or any Target Company or JVCo at the direction, with the consent of, or at the request of Purchaser or any other member of Purchaser Group, or any act, omission or transaction of Purchaser of any other member of Purchaser Group after Closing, in each case, where Purchaser was aware or ought reasonably to have been aware that such direction or request may cause Seller to be liable.

Nothing in this Agreement shall be deemed to relieve Purchaser from any common law duty to mitigate any loss or damage incurred by it as a result of any Warranty being untrue or inaccurate.

12. Thresholds

Seller shall not be liable for any Warranty Claim and/or Tax Claim (as applicable):

(a) unless the amount of the liability pursuant to that Warranty Claim exceeds an amount of one million (1,000,000) EUR (provided that all Warranty Claims arising from a series of connected acts, transactions or events or arising from or relating to any extent to the same or similar facts or circumstances shall be deemed to be aggregated and taken together and, so aggregated and taken together, shall be treated as a single Warranty Claim, solely for the purposes of this sub-paragraph 12(a));

(b) unless the amount of the liability pursuant to that Tax Claim exceeds an amount of fifty thousand (50,000) EUR (provided that all Tax Claims arising from a series of connected acts, transactions or events or arising from or relating to any extent to the same or similar facts or circumstances shall be deemed to be aggregated and taken together and, so

aggregated and taken together, shall be treated as a single Tax Claim, solely for the purposes of this sub-paragraph 12(b)); and

(c) unless and to the extent the aggregate amount of the liability of Seller for all Warranty Claims not excluded by sub-paragraphs (a) and (b) exceeds thirty million (30,000,000) EUR (in which case Purchaser shall be entitled to claim only the amount in excess of ten million (10,000,000) EUR).

This paragraph 12 of this Schedule 8 shall not apply to any Fundamental Warranty Claims.

13. Maximum Liability

(a) The aggregate amount of the liability of Seller for all Warranty Claims (other than Fundamental Warranty Claims) shall not exceed an amount equal to 20% of the Final Purchase Price.

(b) Without prejudice to sub-paragraph 13(a) above, the aggregate amount of the liability of Seller for all Claims and Tax Claims (other than Tax Claims pursuant to clause 13.1(b)) under or in connection with this Agreement (including Fundamental Warranty Claims shall not exceed the Final Purchase Price (including any amounts paid by Seller to Purchaser for any other Claims or Tax Claims other than Tax Claims pursuant to clause 13.1(b) under this Agreement).

(c) Any amounts paid by Seller pursuant to a Claim or Tax Claim and subsequently paid or repaid to, or set off or otherwise applied or taken into account for the benefit of, Seller pursuant to clause 13.3 (Tax Refunds), clause 13.4 (Overprovisions), clause 13.5 (Tax Covenant of Purchaser: Reverse Tax Indemnification) or paragraph 18 of this Schedule (Recovery from Third Parties) shall be disregarded to the extent of such payment, repayment, set-off, application or benefit for the purposes of paragraph 13(b).

14. Time Limitations

Seller shall not be liable for any Warranty Claim unless Seller receives from Purchaser written notice as soon as reasonably practicable after Purchaser (or any member of Purchaser Group) becomes aware of any matter which gives rise to a Warranty Claim, such notice providing details known at the time of the relevant facts of the Warranty Claim and Purchaser's estimate (on a without prejudice basis) of the amount of the Warranty Claim, within:

(a) two (2) years of the Closing Date, in respect of Warranty Claims (other than Fundamental Warranty Claims, Environmental Warranty Claims and Tax Warranty Claims); and

(b) three (3) years of the Closing Date, in respect of Fundamental Warranty Claims;

(c) five (5) years of the Closing Date, in respect of Environmental Warranty Claims; and

(d) seven (7) years of the Closing Date, in respect of Tax Warranty Claims.

Any Claim shall (if it has not been previously satisfied, settled or withdrawn) be deemed to have been withdrawn and shall become fully barred and unenforceable unless legal proceedings have been validly served upon the respective defendant within six (6) months of the date on which notice of the Claim has been given by Purchaser to Seller in accordance with this paragraph 14.

15. Exchange Rate

For the purposes of applying a reference to a monetary threshold expressed in EUR with respect to a Claim or claim of Seller under clause 13 an amount in a different currency shall be deemed to be an amount in EUR translated at the date before the day of receipt of the relevant notice by Seller or Purchaser (as the case may be).

16. Adjustment of Purchase Price

Any payments to be made by Seller under this Agreement with respect to Warranty Claims or Tax Claims shall be considered, to the extent possible, an adjustment to the Final Purchase Price and shall be made on the basis set out in clause 6. For the avoidance of doubt, nothing in this paragraph 16 shall be treated as limiting the amount of any Claim or Tax Claim.

17. Third Party Claims

1. If a Warranty Claim arises as a result of, or in connection with, a liability or alleged liability of a Target Company to a third party (a "Third Party Claim"), then Seller may, at any time before any final compromise, agreement, expert determination or non-appealable decision of a court or tribunal of competent jurisdiction is made in respect of the Third Party Claim or the Third Party Claim is otherwise disposed of, give notice to Purchaser that Seller elects to assume the conduct of any dispute, compromise, defence or appeal or the Third Party Claim and of any incidental negotiations on the following terms:

(a) Seller shall indemnify Purchaser and all Designated Purchasers and each relevant Target Company against all Costs and liabilities which they may incur in taking any such action as Seller may request pursuant to sub-paragraphs (b) and (c) below;

(b) subject to the requirement to maintain privilege, Purchaser shall procure that each relevant Target Company makes available to Seller such persons during Working Hours

and all such information as Seller may reasonably request for assessing, contesting, disputing, defending, appealing or compromising the Third Party Claim;

(c) Purchaser shall procure that each relevant Target Company takes such action to assess, contest, dispute, defend, appeal or compromise the Third Party Claim as Seller may request and does not make any admission of liability, agreement, settlement or compromise in relation to the Third Party Claim without the prior written approval of Seller, such approval not to be unreasonably withheld or delayed; and

(d) Seller shall keep Purchaser informed of the progress of the Third Party Claim and provide Purchaser with copies of all relevant documents and such other information in its possession as may be requested by Purchaser (acting reasonably).

Neither Purchaser nor any member of Purchaser Group shall be required to take any action (or cease to take any action) under this clause 17.1 where Purchaser reasonably considers that taking any such action (or ceasing to take any such action) may directly have a material adverse effect on the business of Purchaser or other members of Purchaser Group.

2. If a Warranty Claim arises as a result of, or in connection with a Third Party Claim, Purchaser shall, until the earlier of such time as Seller shall give any notice as contemplated by paragraph 17.1 and such time as any final compromise, agreement, expert determination or non-appealable decision of a court or tribunal of competent jurisdiction is made in respect of the Third Party Claim or the Third Party Claim is otherwise finally disposed of:

(a) procure that each relevant Target Company consults with Seller, and takes account of the requirements of Seller, in relation to the conduct of any dispute, defence, compromise or appeal or the Third Party Claim;

(b) subject to the requirement to maintain privilege, keep, or procure that each relevant Target Company keeps, Seller promptly informed of the progress of the Third Party Claim and provide, or procure that each relevant Target Company provides Seller with copies of all relevant documents and such other information in Purchaser's or Target Company’s possession as may be requested by Seller (acting reasonably); and

(c) procure that no relevant Target Company shall cease to defend the Third Party Claim or make any admission of liability, agreement or compromise in relation to the Third Party Claim without the prior written consent of Seller not to be unreasonably withheld or delayed.

3. Nothing in this paragraph 17 shall require the provision by any person of any information to the extent such provision would contravene any applicable law or regulation or would breach any duty of

confidentiality owed to any third party. If any information is provided by any person (the "Provider") to any other person (the "Recipient") pursuant to this paragraph 17:

(a) that information shall only be used by the Recipient in connection with the Third Party Claim and clause 21.2 shall in all other respects apply to that information; and

(b) to the extent that information is privileged:

(i) no privilege shall be waived by reason of or as a result of its being provided to the Recipient; and

(ii) if a third party requests disclosure by the Recipient in relation to that information, if the Recipient is Seller or Purchaser, the Recipient shall or, if the Recipient is a Target Company, Purchaser shall procure that the Recipient shall promptly notify the Provider and, to the extent it can do so, itself assert privilege in opposition to that disclosure request.

18. Recovery from third parties

If:

(a) Seller makes a payment in respect of a Claim or a Tax Claim (the"Damages Payment");

(b) at any time after the making of such payment any Target Company or Purchaser received any sum other than from Seller or any Tax Authority which would not have been received but for the matter or circumstances giving rise to that Claim or Tax Claim (the "Third Party Sum");

(c) the receipt of the Third Party Sum was not taken into account in calculating the Damages Payment; and

(d) the aggregate of the Third Party Sum and the Damages Payment (in both cases, less any Costs reasonably incurred by any member of Purchaser Group in recovering the same, to the extent not reimbursed by Seller, and any Tax suffered by any member of Purchaser Group in respect of the recovery of the same) exceeds the amount required to compensate Purchaser in full for the loss or liability which gave rise to the Claim or Tax Claim in question (such excess being the "Excess Recovery")

Purchaser shall, promptly following receipt of the Third Party Sum by it or the relevant Target Company, repay to Seller an amount equal to the lower of (i) the Excess Recovery and (ii) the Damages Payment.

Signed for and on behalf of)

PRAXAIR, INC.)/s/ Stephen F. Angel

) ……………………………………………

By:Stephen F. Angel Authorised Signatory

Title:Chairman, CEO & President

Signed for and on behalf of)

TAIYO NIPPON)

SANSO CORPORATION)/s/ Yujiro Ichihara

) ……………………………………………

By:Yujiro Ichihara Authorised Signatory

Title:President CEO

Signed for and on behalf of)

LINDE PLC)/s/ C.J. Cossins

) ……………………………………………

By:C.J. Cossins Authorised Signatory

Title:Director

EX-31.01

RULE 13a-14(a) CERTIFICATIONS

Praxair, Inc. and Subsidiaries

EXHIBIT 31.01

I, Stephen F. Angel, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Praxair, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent function):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 9, 2018	By: /s/ Stephen F. Angel
	Stephen F. Angel
	Chairman, President
	Chief Executive Officer
	(principal executive officer)

EX-31.02

RULE 13a-14(a) CERTIFICATIONS

Praxair, Inc. and Subsidiaries

EXHIBIT 31.02

I, Matthew J. White, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Praxair, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent function):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 9, 2018	By: /s/ Matthew J. White
	Matthew J. White
	Senior Vice President and
	Chief Financial Officer
	(principal financial officer)

EX-32.01

SECTION 1350 CERTIFICATION

Praxair, Inc. and Subsidiaries

EXHIBIT 32.01

Pursuant to 18 U.S.C. § 1350, the undersigned officer of Praxair, Inc. (the “Company”), hereby certifies that the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 9, 2018	By: /s/ Stephen F. Angel
	Stephen F. Angel
	Chairman, President
	Chief Executive Officer
	(principal executive officer)

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required by 18 U.S.C. § 1350 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.02

SECTION 1350 CERTIFICATION

Praxair, Inc. and Subsidiaries

EXHIBIT 32.02

Pursuant to 18 U.S.C. § 1350, the undersigned officer of Praxair, Inc. (the “Company”), hereby certifies that the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 9, 2018	By: /s/ Matthew J. White
	Matthew J. White
	Senior Vice President and
	Chief Financial Officer
	(principal financial officer)

The foregoing certification is being furnished solely pursuant to 18 U.S.C. § 1350 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required by 18 U.S.C. § 1350 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information	9 Months Ended
	Sep. 30, 2018 shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Trading Symbol	PX
Entity Registrant Name	PRAXAIR INC
Entity Central Index Key	0000884905
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	287,856,237

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Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions		3 Months Ended			9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017		Sep. 30, 2018		Sep. 30, 2017
SALES	[1]	$ 3,024	$ 2,922		$ 9,084		$ 8,484
Cost of sales, exclusive of depreciation and amortization		1,714	1,652		5,114		4,800
Selling, general and administrative		294	300		911		895
Depreciation and amortization		306	298		928		877
Research and development		23	23		71		69
Transaction costs and other charges		31	14		74		35
Other income (expense) - net		13	(3)		25		(3)
OPERATING PROFIT		669	632		2,011		1,805
Interest expense - net		40	41		130		120
Net pension and OPEB cost (benefit), excluding service cost		6	6		10		(7)
INCOME BEFORE INCOME TAXES AND EQUITY INVESTMENTS		623	585		1,871		1,692
Income taxes		156	162		462		468
INCOME BEFORE EQUITY INVESTMENTS		467	423		1,409		1,224
Income from equity investments		13	12		42		35
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)		480	435		1,451		1,259
Less: noncontrolling interests		$ (19)	$ (16)		(48)		(45)
NET INCOME - PRAXAIR, INC.					$ 1,403		$ 1,214
PER SHARE DATA - PRAXAIR, INC. SHAREHOLDERS
Basic earnings per share (usd per share)		$ 1.60	$ 1.46		$ 4.87		$ 4.24
Diluted earnings per share (usd per share)		$ 1.58	$ 1.45		$ 4.82		$ 4.21
WEIGHTED AVERAGE SHARES OUTSTANDING (000’s):
Basic shares outstanding (in shares)		288,093	286,467		287,800		286,022
Diluted shares outstanding (in shares)		291,513	289,216		291,275		288,524
Parent [Member]
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest		$ 461	$ 419	[2]	$ 1,403	[2]	$ 1,214	[2]
NET INCOME - PRAXAIR, INC.			$ 419

[1] Sales reflect external sales only. Intersegment sales, primarily from North America to other segments, were not material

[2] Net income for noncontrolling interests excludes Net income related to redeemable noncontrolling interests of $2 million for the nine months ended September 30, 2018 ($1 million for the same time period in 2017) which is not part of total equity (see redeemable noncontrolling interests section below).

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)	$ 480	$ 435	$ 1,451	$ 1,259
Translation adjustments:
Foreign currency translation adjustments	(89)	204	(623)	520
Income taxes	2	19	8	77
Translation adjustments	(87)	223	(615)	597
Funded status - retirement obligations (Note 11):
Retirement program remeasurements	3	(9)	(5)	(29)
Reclassifications to net income	22	19	56	39
Income taxes	(5)	(4)	(11)	(4)
Funded status - retirement obligations	20	6	40	6
Derivative instruments (Note 6):
Current quarter unrealized gain (loss)	0	0
Reclassifications to net income	0	0
Income taxes	0	0
Derivative instruments	0	0
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	(67)	229	(575)	603
COMPREHENSIVE INCOME (LOSS) (INCLUDING NONCONTROLLING INTERESTS)	413	664	876	1,862
Less: noncontrolling interests	(12)	(26)	(31)	(73)
COMPREHENSIVE INCOME (LOSS) - PRAXAIR, INC.	$ 401	$ 638	$ 845	$ 1,789

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Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Cash and cash equivalents	$ 600	$ 617
Accounts receivable - net	1,852	1,804
Inventories	622	614
Prepaid and other current assets	231	250
TOTAL CURRENT ASSETS	3,305	3,285
Property, plant and equipment (less accumulated depreciation of $13,987 in 2018 and $13,819 in 2017)	11,725	12,057
Goodwill	3,201	3,233
Other intangible assets - net	513	553
Other long-term assets	1,235	1,308
TOTAL ASSETS	19,979	20,436
LIABILITIES AND EQUITY
Accounts payable	978	972
Short-term debt	115	238
Current portion of long-term debt	1,582	979
Other current liabilities	1,185	1,118
TOTAL CURRENT LIABILITIES	3,860	3,307
Long-term debt	6,615	7,783
Other long-term liabilities	2,754	2,824
TOTAL LIABILITIES	13,229	13,914
Commitments and contingencies (Note 12)
Redeemable noncontrolling interests (Note 14)	15	11
Praxair, Inc. Shareholders’ Equity:
Common stock $0.01 par value, authorized - 800,000,000 shares, issued 2018 and 2017 - 383,230,625 shares	4	4
Additional paid-in capital	4,088	4,084
Retained earnings	13,913	13,224
Accumulated other comprehensive income (loss) (Note 14)	(4,656)	(4,098)
Less: Treasury stock, at cost (2018 - 94,374,388 shares and 2017 - 96,453,634 shares)	(7,117)	(7,196)
Total Praxair, Inc. Shareholders’ Equity	6,232	6,018
Noncontrolling interests	503	493
TOTAL EQUITY	6,735	6,511
TOTAL LIABILITIES AND EQUITY	$ 19,979	$ 20,436

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Property, plant and equipment, accumulated depreciation	$ 13,987	$ 13,819
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	800,000,000	800,000,000
Common stock, issued (in shares)	383,230,625	383,230,625
Treasury stock, shares (in shares)	95,374,388	96,453,634

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
OPERATIONS
Net income - Praxair, Inc.	$ 1,403	$ 1,214
Income (Loss) Attributable to Noncontrolling Interest, before Tax	(48)	(45)
Net income (including noncontrolling interests)	1,451	1,259
Adjustments to reconcile net income to net cash provided by operating activities:
Transaction costs and other charges, net of payments	35	27
Depreciation and amortization	928	877
Deferred income taxes	(6)	22
Share-based compensation	40	44
Accounts receivable	(121)	(83)
Inventory	(29)	(11)
Prepaid and other current assets	3	(64)
Payables and accruals	101	11
Pension contributions	(17)	(14)
Long-term assets, liabilities and other	(36)	137
Net Cash Provided by (Used in) Operating Activities, Continuing Operations	2,349	2,205
INVESTING
Capital expenditures	(1,056)	(972)
Acquisitions, net of cash acquired	(6)	(18)
Divestitures and Asset Sales	77	22
Net Cash Provided by (Used in) Investing Activities, Continuing Operations	(985)	(968)
FINANCING
Short-term debt borrowings (repayments) - net	(122)	(353)
Long-term debt borrowings	2	11
Long-term debt repayments	(505)	(160)
Issuances of common stock	70	90
Purchases of common stock	(2)	(11)
Cash dividends - Praxair, Inc. shareholders	(712)	(675)
Noncontrolling interest transactions and other	(33)	(85)
Net Cash Provided by (Used in) Financing Activities, Continuing Operations	(1,302)	(1,183)
Effect of exchange rate changes on cash and cash equivalents	(79)	29
Change in cash and cash equivalents	(17)	83
Cash and cash equivalents, beginning-of-period	617	524
Cash and cash equivalents, end-of-period	$ 600	$ 607

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Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

Summary of Significant Accounting Policies

Presentation of Condensed Consolidated Financial Statements- In the opinion of Praxair, Inc. (Praxair) management, the accompanying condensed consolidated financial statements include all adjustments necessary for a fair presentation of the results for the interim periods presented and such adjustments are of a normal recurring nature. The accompanying condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements of Praxair, Inc. and subsidiaries in Praxair’s 2017 Annual Report on Form 10-K. There have been no material changes to the company’s significant accounting policies during 2018.

Accounting Standards Implemented in 2018

• Revenue Recognition – In May 2014, the FASB issued updated guidance on the reporting and disclosure of revenue. Effective January 1, 2018, Praxair has adopted this guidance using the modified retrospective transition method. No material differences in revenue recognition accounting were identified under the new guidance compared with the Company's historic revenue recognition accounting (see Note 15).

• Classification of Certain Cash Receipts and Cash Payments – In August 2016, the FASB issued updated guidance on the classification of certain cash receipts and cash payments within the statement of cash flows. The update provides accounting guidance for specific cash flow issues with the objective of reducing diversity in practice. The adoption of this guidance did not have a material impact on the financial statements.

• Intra-Entity Asset Transfers – In October 2016, the FASB issued updated guidance for income tax accounting of intra-entity transfers of assets other than inventory. The update requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory in the period when the transfer occurs. The adoption of this guidance did not have a material impact on the financial statements.

• Pension Costs - In March 2017, the FASB issued updated guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires the service cost component be reported in the same line item or items as other compensation costs arising from services rendered by employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and not included within operating profit. This guidance was adopted in the first quarter 2018. Accordingly, non-service related components of net periodic pension and postretirement benefit costs were reclassified out of "Operating Profit" to "Net pension and OPEB cost (benefit), excluding service cost" using the practical expedient to use the amounts disclosed in the retirement benefits note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements (see Note 11).

Accounting Standards to be Implemented

• Leases – In February 2016, the FASB issued updated guidance on the accounting and financial statement presentation of leases. The new guidance requires lessees to recognize a right-of-use asset and lease liability for all leases, except those that meet certain scope exceptions, and would require expanded quantitative and qualitative disclosures. This guidance will be effective for Praxair beginning in the first quarter 2019 and requires companies to transition using a modified retrospective approach. Praxair is in the process of implementing the new guidance and will provide updates on the expected impact to Praxair in future filings, as appropriate.

• Credit Losses on Financial Instruments –In June 2016, the FASB issued an update on the measurement of credit losses. The guidance introduces a new accounting model for expected credit losses on financial instruments, including trade receivables, based on estimates of current expected credit losses. This guidance will be effective for Praxair beginning in the first quarter 2020, with early adoption permitted beginning in the first quarter 2019 and requires companies to apply the change in accounting on a prospective basis. We are currently evaluating the impact this update will have on our consolidated financial statements.

• Simplifying the Test for Goodwill Impairment – In January 2017, the FASB issued updated guidance on the measurement of goodwill. The new guidance eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The guidance will be effective for Praxair beginning in the first quarter 2020. Praxair does not expect this guidance to have a material impact.

• Derivatives and Hedging - In August 2017, the FASB issued updated guidance on accounting for hedging activities. The new guidance changes both the designation and measurement for qualifying hedging relationships and the presentation of hedge results. This guidance will be effective for Praxair beginning in the first quarter 2019, with early adoption optional. Praxair is currently evaluating the impact this update will have on our consolidated financial statements.

• Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income – In February 2018, the FASB issued updated guidance which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This new guidance will be effective for Praxair beginning in the first quarter 2019 on a retrospective basis, with early adoption optional. Praxair is currently assessing the impact and timing of adoption.

Reclassifications – Certain prior years’ amounts have been reclassified to conform to the current year’s presentation including reclassifications on the consolidated statements of income and segment operating profit relating to the adoption of accounting guidance on the presentation of net periodic pension and postretirement benefit costs.

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Transaction Costs and Other Charges

9 Months Ended

Sep. 30, 2018

Unusual or Infrequent Items, or Both [Abstract]

Transaction Costs and Other Charges

Transaction Costs and Other Charges

Transaction costs and other charges were $31 million and $74 million ($29 million and $67 million after-tax and noncontrolling interest, or $0.10 and $0.23 per diluted share) for the quarter and nine months ended September 30, 2018, respectively. Transaction costs and other charges were $14 million and $35 million ($13 million and $34 million after-tax or $0.05 and $0.12 per diluted share) for the quarter and nine months ended September 30, 2017.

On October 31, 2018, Praxair and Linde AG combined under Linde plc, as contemplated by the Business Combination Agreement (see Note 17).Praxair incurred transaction costs and other charges primarily in connection with the intended business combination totaling $21 million and $64 million for the quarter and nine months ended September 30, 2018 ($19 million and $57 million after-tax and noncontrolling interests, or $0.07 and $0.20 per diluted share), respectively. Praxair incurred transaction costs which totaled $14 million and $35 million for the quarter and nine months ended September 30, 2017 ($13 million and $34 million after-tax, or $0.05 and $0.12 per diluted share), respectively.

Effective July 1, 2018, Argentina was deemed a highly inflationary economy. As a result, the third quarter of 2018 includes a $10 million charge ($10 million after-tax, or $0.03 per diluted share) associated with the transition to hyper-inflationary accounting in Argentina.

Classification in the condensed consolidated financial statements

The costs are shown within operating profit in a separate line item on the consolidated statements of income. On the condensed consolidated statement of cash flows, the impact of these costs, net of cash payments, is shown as an adjustment to reconcile net income to net cash provided by operating activities. In Note 13 - Segments, Praxair excluded these costs from its management definition of segment operating profit; a reconciliation of segments operating profit to consolidated operating profit is shown within the segment operating profit table.

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Acquisitions

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Acquisitions

Acquisitions

During the nine months ended September 30, 2018 and 2017, Praxair had acquisitions totaling $6 million and $18 million, respectively, related primarily to acquisitions of packaged gas businesses in North America.

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Supplemental Information

9 Months Ended

Sep. 30, 2018

Supplemental Information [Abstract]

Supplemental Information

Supplemental Information

Inventories

The following is a summary of Praxair’s consolidated inventories:

(Millions of dollars)	September 30, 2018		December 31, 2017
Inventories
Raw materials and supplies	$	218	$	224
Work in process	54		57
Finished goods	350		333
Total inventories	$	622	$	614

Long-term receivables

Long-term receivables are not material and are largely reserved. Such long-term receivables are included within other long-term assets in the condensed consolidated balance sheets and totaled $31 million and $54 million at September 30, 2018 and December 31, 2017, respectively. These amounts are net of reserves of $45 million and $51 million, respectively. The amounts in both periods relate primarily to government receivables in Brazil and other long-term notes receivable from customers. Collectability is reviewed regularly and uncollectible amounts are written off as appropriate.

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Debt

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Debt

Debt

The following is a summary of Praxair’s outstanding debt at September 30, 2018 and December 31, 2017:

(Millions of dollars)	September 30, 2018			December 31, 2017
SHORT-TERM
Commercial paper and U.S. bank borrowings	$	83		$	202
Other bank borrowings (primarily international)	32			36
Total short-term debt	115			238
LONG-TERM (a)
U.S. borrowings (U.S. dollar denominated unless otherwise noted)
1.20% Notes due 2018 (b)	—			498
1.25% Notes due 2018 (b, c)	475			475
1.90% Notes due 2019	500			500
4.50% Notes due 2019	599			599
1.50% Euro-denominated notes due 2020	694			717
2.25% Notes due 2020	299			299
4.05% Notes due 2021	499			498
3.00% Notes due 2021	498			497
2.45% Notes due 2022	598			598
2.20% Notes due 2022	498			498
2.70% Notes due 2023	498			498
1.20% Euro-denominated notes due 2024	636			658
2.65% Notes due 2025	398			397
1.625% Euro-denominated notes due 2025	574			594
3.20% Notes due 2026	725			725
3.55% Notes due 2042	662			662
Other	10			12
International bank borrowings	31			33
Obligations under capital leases	3			4
	8,197			8,762
Less: current portion of long-term debt	(1,582		)	(979		)
Total long-term debt	6,615			7,783
Total debt	$	8,312		$	9,000

(a) Amounts are net of unamortized discounts, premiums and/or debt issuance costs as applicable.

(b) In March 2018, Praxair repaid $500 million of 1.20% notes that became due. On November 7, 2018, Praxair repaid $475 million of 1.25% notes that became due.

(c) September 30, 2018 and December 31, 2017 include a less than $1 million fair value decrease and a less than $1 million increase, respectively, related to hedge accounting. See Note 6 for additional information.

In June 2018, the company's $500 million 364-day revolving credit facility with a syndicate of banks expired and was not renewed.

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Financial Instruments

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Instruments

Financial Instruments

In its normal operations, Praxair is exposed to market risks relating to fluctuations in interest rates, foreign currency exchange rates, energy costs and to a lesser extent precious metal prices. The objective of financial risk management at Praxair is to minimize the negative impact of such fluctuations on the company’s earnings and cash flows. To manage these risks, among other strategies, Praxair routinely enters into various derivative financial instruments (“derivatives”) including interest-rate swap and treasury rate lock agreements, currency-swap agreements, forward contracts, currency options, and commodity-swap agreements. These instruments are not entered into for trading purposes and Praxair only uses commonly traded and non-leveraged instruments.

There are three types of derivatives that the company enters into: (i) those relating to fair-value exposures, (ii) those relating to cash-flow exposures, and (iii) those relating to foreign currency net investment exposures. Fair-value exposures relate to recognized assets or liabilities, and firm commitments; cash-flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities, or forecasted transactions; and net investment exposures relate to the impact of foreign currency exchange rate changes on the carrying value of net assets denominated in foreign currencies.

When a derivative is executed and hedge accounting is appropriate, it is designated as either a fair-value hedge, cash-flow hedge, or a net investment hedge. Currently, Praxair designates all interest-rate and treasury-rate locks as hedges for accounting purposes; however, currency contracts are generally not designated as hedges for accounting purposes unless they are related to forecasted transactions. Whether designated as hedges for accounting purposes or not, all derivatives are linked to an appropriate underlying exposure. On an ongoing basis, the company assesses the hedge effectiveness of all derivatives designated as hedges for accounting purposes to determine if they continue to be highly effective in offsetting changes in fair values or cash flows of the underlying hedged items. If it is determined that the hedge is not highly effective, then hedge accounting will be discontinued prospectively.

Counterparties to Praxair’s derivatives are major banking institutions with credit ratings of investment grade or better and no collateral is required, and there are no significant risk concentrations. Management believes the risk of incurring losses on derivative contracts related to credit risk is remote and any losses would be immaterial.

The following table is a summary of the notional amount and fair value of derivatives outstanding at September 30, 2018 and December 31, 2017 for consolidated subsidiaries:

					Fair Value
	Notional Amounts				Assets				Liabilities
(Millions of dollars)	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
Derivatives Not Designated as Hedging Instruments:
Currency contracts:
Balance sheet items (a)	$	2,099	$	2,693	$	16	$	16	$	6	$	16
Derivatives Designated as Hedging Instruments:
Currency contracts:
Balance sheet items (a)	$	—	$	38	$	—	$	—	$	—	$	2
Forecasted purchases (a)	6		4		—		1		—		—
Interest rate contracts:
Interest rate swaps (a, b)	475		475		—		—		—		—
Total Hedges	$	481	$	517	$	—	$	1	$	—	$	2
Total Derivatives	$	2,580	$	3,210	$	16	$	17	$	6	$	18

(a) Assets are recorded in prepaid and other current assets, and liabilities are recorded in other current liabilities.

(b) On November 7, 2018, Praxair repaid $475 million of 1.25% notes that became due and the associated interest rate swap was settled.

Currency Contracts

Balance Sheet Items

Foreign currency contracts related to balance sheet items consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on recorded balance sheet assets and liabilities denominated in currencies other than the functional currency of the related operating unit. Certain forward currency contracts are entered into to protect underlying monetary assets and liabilities denominated in foreign currencies from foreign exchange risk and are not designated as hedging instruments. The fair value adjustments on these contracts are offset by the fair value adjustments recorded on the underlying monetary assets and liabilities. Praxair also enters into forward currency contracts, which are designated as hedging instruments, to limit the cash flow exposure on certain foreign-currency denominated intercompany loans. The fair value adjustments on these contracts are recorded to AOCI, with the effective portion immediately reclassified to earnings to offset the fair value adjustments on the underlying debt instrument.

Forecasted Purchases

Foreign currency contracts related to forecasted purchases consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on forecasted purchases of capital-related equipment and services denominated in currencies other than the functional currency of the related operating units. These forward contracts were designated and accounted for as cash flow hedges.

Net Investment Hedge

As of September 30, 2018, the Company has €1.65 billion ($1.92 billion) of Euro-denominated notes, of which €1.63 billion ($1.89 billion) is designated as a hedge of the net investment position in its European operations.These Euro-denominated debt instruments reduce the company's exposure to changes in the currency exchange rate on investments in foreign subsidiaries with Euro functional currencies. Since hedge inception, exchange rate movements have reduced long-term debt by $162 million (long-term debt decreased by $65 million during the first nine months of 2018), with the offsetting gain shown within the cumulative translation component of AOCI in the condensed consolidated balance sheets and the consolidated statements of comprehensive income.

Interest Rate Contracts

Outstanding Interest Rate Swaps

At September 30, 2018, Praxair had one outstanding interest rate swap agreement with a $475 million notional amount related to the $475 million1.25% notes that matured on November 7, 2018. The interest rate swap effectively converts fixed-rate interest to variable-rate interest and is designated as a fair value hedge. Fair value adjustments are recognized in earnings along with an equally offsetting charge / benefit to earnings for the changes in the fair value of the underlying debt instrument. At September 30, 2018, less than $1 million was recognized as a decrease in the fair value of these notes (increase in the fair value of less than $1 million at December 31, 2017).

Terminated Treasury Rate Locks

The following table summarizes the unrecognized gains (losses) related to terminated treasury rate lock contracts:

	Year Terminated	Original Gain / (Loss)			Unrecognized Gain / (Loss) (a)
(Millions of dollars)					September 30, 2018			December 31, 2017
Treasury Rate Locks
Underlying debt instrument:
$500 million 2.20% fixed-rate notes that mature in 2022 (b)	2012	$	(2	)	$	—		$	(1	)
$500 million 3.00% fixed-rate notes that mature in 2021 (b)	2011	(11		)	(3		)	(4		)
$600 million 4.50% fixed-rate notes that mature in 2019 (b)	2009	16			1			3
Total - pre-tax					$	(2	)	$	(2	)
Less: income taxes					1			1
After- tax amounts					$	(1	)	$	(1	)

(a) The unrecognized gains / (losses) for the treasury rate locks are shown in accumulated other comprehensive income (“AOCI”) and are being recognized on a straight line basis to interest expense – net over the term of the underlying debt agreements. Refer to the table below summarizing the impact on the company’s consolidated statements of income and AOCI for current period gain (loss) recognition.

(b) The notional amount of the treasury rate lock contracts are equal to the underlying debt instrument with the exception of the treasury rate lock contract entered into to hedge the $600 million4.50% fixed-rate notes that mature in 2019. The notional amount of this contract was $500 million.

The following table summarizes the impact of the company’s derivatives on the consolidated statements of income:

	Amount of Pre-Tax Gain (Loss) Recognized in Earnings *
	Quarter Ended September 30,					Nine Months Ended September 30,
(Millions of dollars)	2018		2017			2018			2017
Derivatives Not Designated as Hedging Instruments
Currency contracts:
Balance sheet items
Debt-related	$	17	$	19		$	(15	)	$	128
Other balance sheet items	3		(1		)	4			1
Total	$	20	$	18		$	(11	)	$	129

* The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities. Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt items are recorded in the consolidated statements of income as interest expense-net. Other balance sheet items and anticipated net income gains (losses) are recorded in the consolidated statements of income as other income (expenses)-net.

The following table summarizes the impacts of the company's derivatives designated as hedging instruments that impact AOCI:

Derivatives Designated as Hedging Instruments **

	Quarter Ended
	Amount of Gain  (Loss) Recognized in AOCI					Amount of Gain  (Loss) Reclassified from AOCI to the Consolidated Statement of Income
(Millions of dollars)	September 30, 2018		September 30, 2017			September 30, 2018		September 30, 2017
Currency contracts:
Balance sheet items	$	—	$	(1	)	$	—	$	—
Forecasted purchases	—		1			—		—
Interest rate contracts:
Treasury rate lock contracts	—		—			—		—
Total - pre tax	$	—	$	—		$	—	$	—
Less: income taxes	—		—			—		—
Total - Net of Taxes	$	—	$	—		$	—	$	—

	Nine Months Ended
	Amount of Gain  (Loss) Recognized in AOCI					Amount of Gain  (Loss) Reclassified from AOCI to the Consolidated Statement of Income
(Millions of dollars)	September 30, 2018		September 30, 2017			September 30, 2018		September 30, 2017
Currency contracts:
Balance sheet items	$	—	$	(1	)	$	—	$	—
Forecasted purchases	—		1			—		—
Interest rate contracts:
Treasury rate lock contracts	—		—			—		—
Total - pre tax	$	—	$	—		$	—	$	—
Less: income taxes	—		—			—		—
Total - Net of Taxes	$	—	$	—		$	—	$	—

**The gains (losses) on net investment hedges are recorded as a component of AOCI within foreign currency translation adjustments in the condensed consolidated balance sheets and the condensed consolidated statements of comprehensive income. The gains (losses) on treasury rate locks are recorded as a component of AOCI within derivative instruments in the condensed consolidated balance sheets and the condensed consolidated statements of comprehensive income. There was no ineffectiveness for these instruments during 2018 or 2017. The gains (losses) on net investment hedges are reclassified to earnings only when the related currency translation adjustments are required to be reclassified, usually upon sale or liquidation of the investment. The gains (losses) for interest rate contracts are reclassified to earnings as interest expense –net on a straight-line basis over the remaining maturity of the underlying debt. Net losses of $1 million are expected to be reclassified to earnings during the next twelve months.

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Fair Value Disclosures

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Fair Value Disclosures

The fair value hierarchy prioritizes the input to valuation techniques used to measure fair value into three broad levels as follows:

Level 1 – quoted prices in active markets for identical assets or liabilities

Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions)

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes assets and liabilities measured at fair value on a recurring basis:

	Fair Value Measurements Using
	Level 1		Level 2				Level 3
(Millions of dollars)	September 30, 2018	December 31, 2017	September 30, 2018		December 31, 2017		September 30, 2018	December 31, 2017
Assets
Derivatives	—	—	$	16	$	17	—	—
Liabilities
Derivatives	—	—	$	6	$	18	—	—

The fair values of the derivative assets and liabilities are based on market prices obtained from independent brokers or determined using quantitative models that use as their basis readily observable market parameters that are actively quoted and can be validated through external sources, including third-party pricing services, brokers and market transactions. Investments are marketable securities traded on an exchange.

The fair values of cash and cash equivalents, short-term debt, accounts receivable-net, and accounts payable approximate carrying amounts because of the short maturities of these instruments. The fair value of long-term debt is estimated based on the quoted market prices for similar issues, which is deemed a level 2 measurement. At September 30, 2018, the estimated fair value of Praxair’s long-term debt portfolio was $8,164 million versus a carrying value of $8,197 million. At December 31, 2017, the estimated fair value of Praxair’s long-term debt portfolio was $8,969 million versus a carrying value of $8,762 million. Differences from carrying amounts are attributable to interest-rate changes subsequent to when the debt was issued.

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Earnings Per Share - Praxair, Inc. Shareholders

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share - Praxair, Inc. Shareholders

Earnings Per Share – Praxair, Inc. Shareholders

Basic earnings per share is computed by dividing Net income – Praxair, Inc. for the period by the weighted average number of Praxair common shares outstanding. Diluted earnings per share is computed by dividing Net income – Praxair, Inc. for the period by the weighted average number of Praxair common shares outstanding and dilutive common stock equivalents, as follows:

	Quarter Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Numerator (Millions of dollars)
Net income - Praxair, Inc.	$	461	$	419	$	1,403	$	1,214
Denominator (Thousands of shares)
Weighted average shares outstanding	287,752		286,103		287,465		285,654
Shares earned and issuable under compensation plans	341		364		335		368
Weighted average shares used in basic earnings per share	288,093		286,467		287,800		286,022
Effect of dilutive securities
Stock options and awards	3,420		2,749		3,475		2,502
Weighted average shares used in diluted earnings per share	291,513		289,216		291,275		288,524
Basic Earnings Per Share	$	1.60	$	1.46	$	4.87	$	4.24
Diluted Earnings Per Share	$	1.58	$	1.45	$	4.82	$	4.21

There were no antidilutive shares for the quarter and nine months ended September 30, 2018. There were no antidilutive shares for the quarter ended September 30, 2017. Stock options of 2,439,499 for nine months ended September 30, 2017 were antidilutive and therefore excluded in the computation of diluted earnings per share.

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Goodwill and Other Intangible Assets (Notes)

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Changes in the carrying amount of goodwill for the nine months ended September 30, 2018 were as follows:

(Millions of dollars)	North America		South America			Europe			Asia			Surface Technologies			Total
Balance, December 31, 2017	$	2,202	$	129		$	698		$	61		$	143		$	3,233
Acquisitions	3		—			—			—			—			3
Purchase adjustments & other	12		—			—			—			—			12
Foreign currency translation	—		(27		)	(16		)	(1		)	(3		)	(47		)
Balance, September 30, 2018	$	2,217	$	102		$	682		$	60		$	140		$	3,201

Praxair has performed its goodwill impairment tests annually during the second quarter of each year, and historically has determined that the fair value of each of its reporting units was substantially in excess of its carrying value. For the 2018 test completed last quarter, Praxair applied the FASB's accounting guidance which allows the Company to first assess qualitative factors to determine the extent of additional quantitative analysis, if any, that may be required to test goodwill for impairment (refer to Note 1 to the consolidated financial statements of Praxair's 2017 Annual Report on Form 10-K). Based on the qualitative assessments performed in the second quarter of 2018, Praxair concluded that it was more likely than not that the fair value of each reporting unit substantially exceeded its carrying value and therefore, further quantitative analysis was not required. As a result, no impairment was recorded. There were no indicators of impairment through September 30, 2018.

Changes in the carrying amounts of other intangibles for the nine months ended September 30, 2018 were as follows:

(Millions of dollars)	Customer & License/Use Agreements			Non-compete Agreements			Patents & Other			Total
Cost:
Balance, December 31, 2017	$	772		$	28		$	52		$	852
Additions	1			1			—			2
Foreign currency translation	(9		)	—			(1		)	(10		)
Other*	(20		)	(5		)	—			(25		)
Balance, September 30, 2018	$	744		$	24		$	51		$	819
Less: Accumulated amortization
Balance, December 31, 2017	$	(260	)	$	(18	)	$	(21	)	$	(299	)
Amortization expense	(28		)	(3		)	(3		)	(34		)
Foreign currency translation	3			—			—			3
Other*	19			5			—			24
Balance, September 30, 2018	$	(266	)	$	(16	)	$	(24	)	$	(306	)
Net balance at September 30, 2018	$	478		$	8		$	27		$	513

* Other primarily relates to the write-off of fully amortized assets.

There are no expected residual values related to these intangible assets. The remaining weighted-average amortization period for intangible assets is approximately 16 years.

Total estimated annual amortization expense is as follows:

(Millions of dollars)
Remaining 2018	$	11
2019	43
2020	41
2021	39
2022	38
Thereafter	341
	$	513

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Share-Based Compensation

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-Based Compensation

Share-based compensation expense of $19 million and $16 million was recognized during the quarters ended September 30, 2018 and 2017, respectively. Share-based compensation of $40 million and $44 million was recognized during the nine months ended September 30, 2018 and 2017, respectively. The expense was recorded primarily in selling, general and administrative expenses. There was no share-based compensation cost that was capitalized. For further details regarding Praxair’s share-based compensation arrangements and prior-year grants, refer to Note 15 to the consolidated financial statements of Praxair’s 2017 Annual Report on Form 10-K.

Stock Options

The weighted-average fair value of options granted during the nine months ended September 30, 2018 was $19.29 ($12.40 in 2017) based on the Black-Scholes Options-Pricing model. The increase in grant date fair value year-over-year was primarily attributable to an increase in the company's stock price.

The following weighted-average assumptions were used to value the grants in 2018 and 2017:

	Nine months ended September 30,
	2018		2017
Dividend yield	2.1	%	2.7	%
Volatility	14.4	%	14.0	%
Risk-free interest rate	2.67	%	2.13	%
Expected term years	5		6

The following table summarizes option activity under the plans as of September 30, 2018 and changes during the nine-month period then ended (averages are calculated on a weighted basis; life in years; intrinsic value expressed in millions):

	Number of Options  (000’s)		Average Exercise Price		Average Remaining Life	Aggregate Intrinsic Value
Outstanding at January 1, 2018	10,787		$	108.70
Granted	1,625		154.00
Exercised	(1,502	)	94.50
Cancelled or Expired	(63	)	128.91
Outstanding at September 30, 2018	10,847		117.34		6.2	$	471
Exercisable at September 30, 2018	7,143		$	110.46	5.0	$	359

The aggregate intrinsic value represents the difference between the company’s closing stock price of $160.73 as of September 30, 2018 and the exercise price multiplied by the number of in the money options outstanding as of that date. The total intrinsic value of stock options exercised during the quarter and nine months ended September 30, 2018 was $19 million and $96 million, respectively ($17 million and $80 million during the same periods in 2017, respectively).

Cash received from option exercises under all share-based payment arrangements for the quarter and nine months ended September 30, 2018 was $21 million and $59 million, respectively ($18 million and $81 million for the same periods in 2017). The cash tax benefit realized from share-based compensation totaled $9 million and $28 million for the quarter and nine months ended September 30, 2018, respectively ($5 million and $31 million for the same periods in 2017, respectively).

As of September 30, 2018, $26 million of unrecognized compensation cost related to non-vested stock options is expected to be recognized over a weighted-average period of approximately 1 year.

Performance-Based and Restricted Stock Awards

During the nine months endedSeptember 30, 2018, the company granted restricted stock units to employees of 269,433 shares. There were no performance-based stock awards granted to employees during the nine months endedSeptember 30, 2018 as restricted stock units were granted in place of performance-based stock awards. Compensation expense related to the restricted stock units is recognized over the vesting period, which is up to three years, based on the grant date fair value.

As of September 30, 2018 the company had performance-based stock awards outstanding, tied to either return on capital ("ROC") performance or relative total shareholder return ("TSR") performance versus that of the S&P 500. The actual number of shares issued in settlement of a vested award can range from zero to 200 percent of the target number of shares granted based upon the company’s attainment of specified performance targets at the end of a three-year period. Compensation expense related to these awards is recognized over the three-year performance period based on the fair value of the closing market price of the company’s common stock on the date of the grant and the estimated performance that will be achieved. Compensation expense for ROC awards will be adjusted during the three-year performance period based upon the estimated performance levels that will be achieved. TSR awards are measured at their grant date fair value and not subsequently re-measured.

The weighted-average fair value of restricted stock units granted during the nine months endedSeptember 30, 2018 was $144.79 ($111.70 for the same period in 2017). These fair values are based on the closing market price of Praxair’s common stock on the grant date adjusted for dividends that will not be paid during the vesting period. The weighted-average fair value of ROC performance-based stock awards granted during the nine months endedSeptember 30, 2017 was $109.68.

The weighted-average fair value of performance-based stock tied to relative TSR performance granted during nine months endedSeptember 30, 2017 was $124.12 and was estimated using a Monte Carlo simulation performed as of the grant date.

The following table summarizes non-vested performance-based and restricted stock award activity as of September 30, 2018 and changes during the nine months then ended (shares based on target amounts, averages are calculated on a weighted basis):

	Performance-Based				Restricted Stock
	Number  of Shares (000’s)		Average Grant  Date Fair Value		Number  of Shares (000’s)		Average Grant  Date Fair Value
Non-vested at January 1, 2018	665		$	113.40	264		$	107.56
Granted	—		—		269		144.79
Vested	(78	)	119.98		(89	)	116.22
Cancelled and Forfeited	(151	)	110.32		(17	)	100.23
Non-vested at September 30, 2018	436		$	110.02	427		$	129.52

There are approximately 6 thousand performance-based shares and 3 thousand restricted stock shares that are non-vested at September 30, 2018 which will be settled in cash due to foreign regulatory limitations. The liability related to these grants reflects the current estimate of performance that will be achieved and the current common stock price.

As of September 30, 2018, based on current estimates of future performance, $9 million of unrecognized compensation cost related to performance-based awards is expected to be recognized through the first quarter of 2020 and $30 million of unrecognized compensation cost related to the restricted stock awards is expected to be recognized primarily through the first quarter of 2021.

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Retirement Programs

9 Months Ended

Sep. 30, 2018

Retirement Benefits, Description [Abstract]

Retirement Programs

Retirement Programs

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

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

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

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

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

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

Commitments and Contingencies

Contingent Liabilities

Praxair is subject to various lawsuits and government investigations that arise from time to time in the ordinary course of business. These actions are based upon alleged environmental, tax, antitrust and personal injury claims, among others. Praxair has strong defenses in these cases and intends to defend itself vigorously. It is possible that the company may incur losses in connection with some of these actions in excess of accrued liabilities. Management does not anticipate that in the aggregate such losses would have a material adverse effect on the company’s consolidated financial position or liquidity; however, it is possible that the final outcomes could have a significant impact on the company’s reported results of operations in any given period (see Note 17 to the consolidated financial statements of Praxair’s 2017 Annual Report on Form 10-K).

Significant matters are:

• During May 2009, the Brazilian government published Law 11941/2009 instituting a new voluntary amnesty program (“Refis Program”) which allowed Brazilian companies to settle certain federal tax disputes at reduced amounts. During the 2009 third quarter, Praxair decided that it was economically beneficial to settle many of its outstanding federal tax disputes and such disputes were enrolled in the Refis Program, subject to final calculation and review by the Brazilian federal government. The Company recorded estimated liabilities based on the terms of the Refis Program. Since 2009, Praxair has been unable to reach final agreement on the calculations and initiated litigation against the government in an attempt to resolve certain items. Open issues relate to the following matters: (i) application of cash deposits and net operating loss carryforwards to satisfy obligations, and (ii) the amount of tax reductions available under the Refis Program. It is difficult to estimate the timing of resolution of legal matters in Brazil.

• At September 30, 2018 the most significant non-income and income tax claims in Brazil, after enrollment in the Refis Program, relate to state VAT tax matters and a federal income tax matter where the taxing authorities are challenging the tax rate that should be applied to income generated by a subsidiary company. The total estimated exposure relating to such claims, including interest and penalties, as appropriate, is approximately $205 million. Praxair has not recorded any liabilities related to such claims based on management judgments, after considering judgments and opinions of outside counsel. Because litigation in Brazil historically takes many years to resolve, it is very difficult to estimate the timing of resolution of these matters; however, it is possible that certain of these matters may be resolved within the near term. The company is vigorously defending against the proceedings.

• On September 1, 2010, CADE (Brazilian Administrative Council for Economic Defense) announced alleged anticompetitive activity on the part of five industrial gas companies in Brazil and imposed fines on all five companies. Originally, CADE imposed a civil fine of R$2.2 billion Brazilian reais (US$550 million) against White Martins, the Brazil-based subsidiary of Praxair, Inc. In response to a motion for clarification, the fine was reduced to R$1.7 billion Brazilian reais (US$425 million) due to a calculation error made by CADE. The amount of the fine is subject to indexation using SELIC. On September 2, 2010, Praxair issued a press release and filed a report on Form 8-K rejecting all claims and stating that the fine represents a gross and arbitrary disregard of Brazilian law.

On October 19, 2010, White Martins filed an annulment petition (“appeal”) with the Federal Court in Brasilia seeking to have the fine against White Martins entirely overturned. In order to suspend payment of the fine pending the completion of the appeal process, Brazilian law required that the company tender a form of guarantee in the amount of the fine as security. Initially, 50% of the guarantee was satisfied by letters of credit with a financial institution and 50% by equity of a Brazilian subsidiary. On April 15, 2016, the Ninth Federal Court in Brasilia allowed White Martins to withdraw and cancel the letters of credit. Accordingly, the guarantee is currently satisfied solely by equity of a Brazilian subsidiary.

On September 14, 2015, the Ninth Federal Court of Brasilia overturned the fine against White Martins and declared the original CADE administrative proceeding to be null and void. On June 30, 2016, CADE filed an appeal against this decision with the Federal Circuit Court in Brasilia.

Praxair strongly believes that the allegations are without merit and that the fine will be entirely overturned during the appeal process. The company further believes that it has strong defenses and will vigorously defend against the allegations and related fine up to such levels of the Federal Courts in Brazil as may be necessary. Because appeals in Brazil historically take many years to resolve, it is very difficult to estimate when the appeal will be finally decided. Based on management judgments, after considering judgments and opinions of outside counsel, no reserve has been recorded for this proceeding as management does not believe that a loss is probable.

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Segments

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Segments

Segments

For a description of Praxair’s operating segments, refer to Note 18 to the consolidated financial statements of Praxair’s 2017 Annual Report on Form 10-K.

Sales and operating profit by segment for the quarters and nine months ended September 30, 2018 and 2017 are shown below. 2017 segment operating profit has been reclassified to conform with current year presentation as a result of the adoption of new accounting guidance on the presentation of net periodic pension and postretirement benefit costs (see Note 1).

	Quarter Ended September 30,				Nine Months Ended September 30,
(Millions of dollars)	2018		2017		2018		2017
SALES(a)
North America	$	1,613	$	1,518	$	4,770	$	4,481
Europe	425		407		1,297		1,146
South America	329		389		1,043		1,131
Asia	487		451		1,465		1,268
Surface Technologies	170		157		509		458
Total sales	$	3,024	$	2,922	$	9,084	$	8,484

	Quarter Ended September 30,						Nine Months Ended September 30,
(Millions of dollars)	2018			2017			2018			2017
OPERATING PROFIT
North America	$	420		$	386		$	1,258		$	1,121
Europe	81			79			248			220
South America	57			66			167			178
Asia	110			88			321			243
Surface Technologies	32			27			91			78
Segment operating profit	700			646			2,085			1,840
Transaction costs and other charges (Note 2)	(31		)	(14		)	(74		)	(35		)
Total operating profit	$	669		$	632		$	2,011		$	1,805

(a) Sales reflect external sales only. Intersegment sales, primarily from North America to other segments, were not material.

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Equity and Redeemable Noncontrolling Interests

9 Months Ended

Sep. 30, 2018

Equity And Noncontrolling Interests Disclosure [Abstract]

Equity and Redeemable Noncontrolling Interests

Equity and Redeemable Noncontrolling Interests

Equity

A summary of the changes in total equity for the quarters and nine months ended September 30, 2018 and 2017 is provided below:

	Quarter Ended September 30,
(Millions of dollars)	2018									2017
Activity	Praxair, Inc. Shareholders’ Equity			Noncontrolling Interests			Total Equity			Praxair, Inc. Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, beginning of period	$	6,027		$	501		$	6,528		$	5,807		$	453		$	6,260
Net income (a)	461			19			480			419			16			435
Other comprehensive income (loss)	(60		)	(7		)	(67		)	219			10			229
Noncontrolling interests:
Additions (reductions)	—			—			—			—			2			2
Dividends and other capital changes	—			(10		)	(10		)	—			(6		)	(6		)
Redemption value adjustments	(1		)	—			(1		)	—			—			—
Dividends to Praxair, Inc. common stock holders ($0.825 per share in 2018 and $0.7875 per share in 2017)	(238		)	—			(238		)	(225		)	—			(225		)
Issuances of common stock:
For the dividend reinvestment and stock purchase plan	2			—			2			2			—			2
For employee savings and incentive plans	23			—			23			18			—			18
Purchases of common stock	(1		)	—			(1		)	—			—			—
Share-based compensation	19			—			19			16			—			16
Balance, end of period	$	6,232		$	503		$	6,735		$	6,256		$	475		$	6,731

	Nine Months Ended September 30,
(Millions of dollars)	2018									2017
Activity	Praxair, Inc. Shareholders’ Equity			Noncontrolling Interests			Total Equity			Praxair, Inc. Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, beginning of period	$	6,018		$	493		$	6,511		$	5,021		$	420		$	5,441
Net income (a)	1,403			46			1,449			1,214			44			1,258
Other comprehensive income (loss)	(558		)	(17		)	(575		)	575			28			603
Noncontrolling interests:
Additions (reductions)	—			7			7			—			9			9
Dividends and other capital changes	—			(26		)	(26		)	—			(26		)	(26		)
Redemption value adjustments	(3		)	—			(3		)	—			—			—
Dividends to Praxair, Inc. common stock holders ($2.475 per share in 2018 and $2.36 per share in 2017)	(712		)	—			(712		)	(675		)	—			(675		)
Issuances of common stock:
For the dividend reinvestment and stock purchase plan	5			—			5			5			—			5
For employee savings and incentive plans	41			—			41			72			—			72
Other	—			—			—			—			—			—
Purchases of common stock	(2		)	—			(2		)	—			—			—
Share-based compensation	40			—			40			44			—			44
Balance, end of period	$	6,232		$	503		$	6,735		$	6,256		$	475		$	6,731

(a) Net income for noncontrolling interests excludes Net income related to redeemable noncontrolling interests of $2 million for the nine months ended September 30, 2018 ($1 million for the same time period in 2017) which is not part of total equity (see redeemable noncontrolling interests section below).

The components of AOCI are as follows:

	September 30,			December 31,
(Millions of dollars)	2018			2017
Cumulative translation adjustment - net of taxes:
North America	$	(891	)	$	(885	)
South America	(2,391		)	(2,004		)
Europe	(427		)	(398		)
Asia	(314		)	(151		)
Surface Technologies	(30		)	(17		)
	(4,053		)	(3,455		)
Derivatives - net of taxes	(1		)	(1		)
Pension / OPEB funded status obligation (net of $336 million and $347 million tax benefit in September 30, 2018 and December 31, 2017, respectively)	(602		)	(642		)
	$	(4,656	)	$	(4,098	)

Redeemable Noncontrolling Interests

Noncontrolling interests with redemption features, such as put/sell options, that are not solely within the Company’s control (“redeemable noncontrolling interests”) are reported separately in the consolidated balance sheets at the greater of carrying value or redemption value. For redeemable noncontrolling interests that are not yet exercisable, Praxair calculates the redemption value by accreting the carrying value to the redemption value over the period until exercisable. If the redemption value is greater than the carrying value, any increase is adjusted directly to equity and does not impact net income.

At September 30, 2018 and 2017, redeemable noncontrolling interests includes one packaged gas distributor in the United States where the noncontrolling shareholder has a put option.

Following is a summary of the changes in redeemable noncontrolling interests for the nine months ended September 30, 2018 and 2017:

(Millions of dollars)	2018			2017
Balance, January 1	$	11		$	11
Net income	2			1
Distributions to noncontrolling interest and other	(1		)	(1		)
Redemption value adjustments/accretion	3			—
Balance, September 30	$	15		$	11

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Revenue Recognition (Notes)

9 Months Ended

Sep. 30, 2018

Revenue Recognition [Abstract]

Revenue Recognition

15. Revenue Recognition

Effective January 1, 2018, Praxair adopted the FASB's Accounting Standards Update No. 2014-09 ("ASC 606") relating to Revenue Recognition using the modified retrospective transition method. The new accounting standard requires revenue to be recognized as control of goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled to receive in exchange for the goods or services. No material differences in revenue recognition were identified as compared to the Company's historical revenue recognition accounting; accordingly, there is no adjustment to opening retained earnings at January 1, 2018 and therefore no need to present comparable revenue in accordance with the prior accounting policy. The following sections include updated accounting policies and disclosures required by ASC 606. Praxair's significant accounting policies for periods through December 31, 2017 are summarized in Note 1 to its 2017 Annual Report on Form 10-K.

Contracts with Customers

Approximately 94% of Praxair’s consolidated sales are generated from industrial gases and related products in four geographic segments (North America, Europe, South America and Asia) and the remaining 6% is related to the global surface technologies segment. Praxair serves a diverse group of industries including healthcare, petroleum refining, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals and water treatment.

Industrial Gases

Within each of the Company’s geographic segments for industrial gases, there are three basic distribution methods: (i) on-site or tonnage; (ii) merchant or bulk liquid; and (iii) packaged or cylinder gases. The distribution method used by Praxair to supply a customer is determined by many factors, including the customer’s volume requirements and location. The distribution method generally determines the contract terms with the customer and, accordingly, the revenue recognition accounting practices. Praxair’s primary products in its industrial gases business are atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty gases, acetylene). These products are generally sold through one of the three distribution methods.

Following is a description of each of the three industrial gases distribution methods and the respective revenue recognition policies:

On-site. Customers that require the largest volumes of product and that have a relatively constant demand pattern are supplied by cryogenic and process gas on-site plants. Praxair constructs plants on or adjacent to these customers’ sites and supplies the product directly to customers by pipeline. Where there are large concentrations of customers, a single pipeline may be connected to several plants and customers. On-site product supply contracts generally are total requirement contracts with terms typically ranging from 10-20 years and contain minimum purchase requirements and price escalation provisions. Many of the cryogenic on-site plants also produce liquid products for the merchant market. Therefore, plants are typically not dedicated to a single customer. Additionally, Praxair is responsible for the design, construction, operations and maintenance of the plants and our customers typically have no involvement in these activities. Advanced air separation processes also allow on-site delivery to customers with smaller volume requirements.

The Company’s performance obligations related to on-site customers are satisfied over time as customers receive and obtain control of the product. Praxair has elected to apply the practical expedient for measuring progress towards the completion of a performance obligation and recognizes revenue as the company has the right to invoice each customer, which generally corresponds with product delivery. Accordingly, revenue is recognized when product is delivered to the customer and the Company has the right to invoice the customer in accordance with the contract terms. Consideration in these contracts is generally based on pricing which fluctuates with various price indices. Variable components of consideration exist within on-site contracts but are considered constrained.

Merchant. Merchant deliveries generally are made from Praxair’s plants by tanker trucks to storage containers at the customer's site. Due to the relatively high distribution cost, merchant oxygen and nitrogen generally have a relatively small distribution radius from the plants at which they are produced. Merchant argon, hydrogen and helium can be shipped much longer distances. The customer agreements used in the merchant business are usually three-to seven-year supply agreements based on the requirements of the customer. These contracts generally do not contain minimum purchase requirements or volume commitments.

The Company’s performance obligations related to merchant customers are generally satisfied at a point in time as the customers receive and obtain control of the product. Revenue is recognized when product is delivered to the customer and the Company has the right to invoice the customer in accordance with the contract terms. Any variable components of consideration within merchant contracts are constrained however this consideration is not significant.

Packaged Gases. Customers requiring small volumes are supplied products in containers called cylinders, under medium to high pressure. Praxair distributes merchant gases from its production plants to Company-owned cylinder filling plants where cylinders are then filled for distribution to customers. Cylinders may be delivered to the customer’s site or picked up by the customer at a packaging facility or retail store. Praxair invoices the customer for the industrial gases and the use of the cylinder container(s). The Company also sells hardgoods and welding equipment purchased from independent manufacturers. Packaged gases are generally sold under one to three-year supply contracts and purchase orders and do not contain minimum purchase requirements or volume commitments.

The Company’s performance obligations related to packaged gases are satisfied at a point in time. Accordingly, revenue is recognized when product is delivered to the customer or when the customer picks up product from a packaged gas facility or retail store, and the Company has the right to payment from the customer in accordance with the contract terms. Any variable consideration is constrained and will be recognized when the uncertainty related to the consideration is resolved.

Surface Technologies

The company’s surface technologies segment, operated through Praxair Surface Technologies, Inc., supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders. Praxair Surface Technologies is a leading global supplier of coatings services and thermal spray consumables to customers in the aircraft, energy, printing, primary metals, petrochemical, textile, and other industries. Its coatings are used to provide wear resistance, corrosion protection, thermal insulation, and many other surface-enhancing functions which serve to extend component life, enable optimal performance, and reduce operating costs. It also manufactures a complete line of electric arc, plasma and wire spray, and high-velocity oxy-fuel ("HVOF") equipment.

The Company’s performance obligation related to surface technologies customers are generally satisfied at a point in time when the customer receives and takes control of product. Accordingly, revenue is recognized when product is delivered to the customer or when the customer picks up the product from the Company’s facility, and the Company has the right to invoice the customer in accordance with the contract terms.

Payment Terms and Other

Praxair generally receives payment after performance obligations are satisfied, and customer prepayments are not typical. Payment terms vary based on the country where sales originate and local customary payment practices. Praxair does not offer extended financing outside of customary payment terms. Contract asset and liability balances and the changes in these balances are not material. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue producing transactions are presented on a net basis and are not included in sales within the consolidated statement of income. Additionally, sales returns and allowances are not a normal practice in the industry and are not significant.

Disaggregated Revenue Information

As described above and in Note 18 of the 2017 10-K, the Company manages its industrial gases business on a geographic basis, while the surface technologies business is managed on a global basis. Further, the Company believes that reporting sales by distribution method by reportable geographic segment best illustrates the nature, timing, type of customer, and contract terms for its revenues, including terms and pricing.

The following table shows sales by distribution method for each reportable segment and at the consolidated level for the quarter and nine months ended September 30, 2018.

Quarter Ended September 30,
(Dollars in Millions)			Industrial Gases
Sales	North America			Europe		South America		Asia		Surface Technologies		Total		%
Merchant	$	604		$	146	$	125	$	163	$	—	$	1,038	34	%
On-Site	474			78		112		241		—		905		30	%
Packaged Gas	495			184		86		55		—		820		27	%
Other	40			17		6		28		170		261		9	%
	$	1,613		$	425	$	329	$	487	$	170	$	3,024	100	%

Nine Months Ended September 30,
(Dollars in Millions)			Industrial Gases
Sales	North America			Europe		South America		Asia		Surface Technologies		Total		%
Merchant	$	1,768		$	446	$	399	$	474	$	—	$	3,087	34	%
On-Site	1,392			235		343		737		—		2,707		30	%
Packaged Gas	1,496			564		277		166		—		2,503		28	%
Other	114			52		24		88		509		787		8	%
	$	4,770		$	1,297	$	1,043	$	1,465	$	509	$	9,084	100	%

Remaining Performance Obligations

As described above, Praxair’s contracts with on-site customers are under long-term supply arrangements which generally require the customer to purchase their requirements from Praxair and also have minimum purchase requirements. The Company estimates the consideration related to minimum purchase requirements is approximately $19 billion. This amount excludes all sales above minimum purchase requirements, which can be significant depending on customer needs. In the future, actual amounts will be different due to impacts from several factors, many of which are beyond the Company’s control including, but not limited to, timing of newly signed, terminated and renewed contracts, inflationary price escalations, currency exchange rates, and pass-through costs related to natural gas and electricity. The actual duration of long-term supply contracts ranges up to twenty years. The Company estimates that approximately half of the revenue related to minimum purchase requirements are estimated to be earned in the next six years and the remaining thereafter.

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Income Tax Disclosure (Notes)

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Note 16. Income Taxes

U.S. Tax Cuts and Jobs Act (Tax Act)

On December 22, 2017 the U.S. government enacted the Tax Cuts and Jobs Act (Tax Act). This comprehensive tax legislation significantly revises the U.S. corporate income tax rules by, among other things, lowering the corporate income tax rate from 35% to 21%, implementing a territorial tax system and imposing a one-time tax on accumulated earnings of foreign subsidiaries. Given the substantial uncertainties surrounding the Tax Act and the short period of time between December 22, 2017 and December 31, 2017 to calculate the U.S. Federal, U.S. state, and non-U.S. tax impacts of the Tax Act, the Company is accounting for its income tax charge on a provisional (estimated) basis as allowed by SEC Staff Accounting Bulletin No. 118. In 2017, the Company recorded a net provisional income tax charge of $394 million with three main components: (i) an estimated $467 million U.S. federal and state tax charge for deemed repatriation of accumulated foreign earnings; (ii) an estimated $260 million charge for foreign withholding taxes related to anticipated future repatriation of foreign earnings; and (iii) an estimated $333 million deferred tax benefit for the revaluation of net deferred tax liabilities from 35% to the new 21% tax rate. Refer to Note 5 to the consolidated financial statements of Praxair's 2017 Annual Report on Form 10-K.

The Company continues to evaluate the Tax Act, additional guidance from the Internal Revenue Service, its historical foreign earnings and taxes and other items that could impact its net provisional tax charge. As of September 30, 2018, there have been no adjustments to the net provisional income tax charge recognized in 2017. In October 2018, the Company completed and filed its U.S. federal income tax return including the tax on deemed repatriation.  During the fourth quarter, the Company will continue to evaluate the tax impacts related to the Tax Act and will complete its accounting as required under SEC Staff Accounting Bulletin 118.  Any changes to the net provisional estimate will be recorded to income tax expense at that time.

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Business Combination with Linde AG (Notes)

9 Months Ended

Sep. 30, 2018

Business Combination with Linde AG [Abstract]

Business Combination with Linde AG [Text Block]

Business Combination with Linde AG

Completion of the Business Combination

On October 31, 2018, Praxair and Linde AG combined under Linde plc., as contemplated by the business combination agreement, dated June 1, 2017, as amended on August 10, 2017 (the “Business Combination Agreement”), by and among Praxair, Linde AG, Linde plc, Zamalight Holdco LLC and Zamalight Subco, Inc. (the “Business Combination”). Pursuant to the Business Combination Agreement, (i) Praxair became an indirect wholly-owned subsidiary of Linde plc through the merger of Zamalight Subco, Inc., an indirect wholly-owned Delaware subsidiary of Linde plc with and into Praxair (the “Merger”), and (ii) Linde AG became an indirect subsidiary of Linde plc through an exchange offer by Linde plc for each issued and outstanding bearer share of Linde AG (the “Exchange Offer”).

In the Merger, each issued and outstanding share of common stock of Praxair, par value $0.01 per share (the “Praxair Shares”), was converted into the right to receive one ordinary share, nominal value€0.001 per share, of Linde plc (the “Linde plc Shares”). Each issued and outstanding ordinary bearer share, without par value, of Linde AG (the “Linde AG Shares”) that was validly tendered in the Exchange Offer was exchanged for 1.540 Linde plc Shares.

The issuance of Linde plc Shares in connection with the Business Combination, as described above, was registered under the Securities Act of 1933, as amended, pursuant to a registration statement on Form S-4 (the “Registration Statement”) (File No. 333-218485), which was declared effective by the Securities and Exchange Commission (the “SEC”) on August 14, 2017.

Pursuant to Rule 12g-3(a) under the Exchange Act, as of October 31, 2018, Linde plc is the successor issuer to Praxair, the Linde plc Shares are deemed to be registered under Section 12(b) of the Exchange Act, and Linde plc is subject to the informational requirements of the Exchange Act and the rules and regulations promulgated thereunder. The Linde plc Shares trade on the New York Stock Exchange (“NYSE”) and the Frankfurt Stock Exchange under the ticker symbol “LIN”. Prior to the Business Combination, the Praxair Shares were registered pursuant to Section 12(b) of the Exchange Act and listed on the NYSE. In connection with the completion of the Business Combination, the Praxair Shares were suspended from trading on the NYSE as of close of business (New York Time) on October 30, 2018. On November 1, 2018, Praxair filed a Form 25 to delist and deregister its three series of Euro-denominated notes (the “Euro Notes”), including its 1.50% Notes due 2020, 1.20% Notes due 2024 and 1.625% Notes due 2025, that are currently listed on the NYSE. Trading in the Euro Notes on the NYSE is expected to be suspended as of close of business (New York Time) on November 9, 2018. Praxair expects to file a Form 15 with the SEC to terminate the registration under the Exchange Act of the Praxair Shares and its Euro Notes and to suspend the Company’s reporting obligations under Section 15(d) of the Exchange Act on November 12, 2018. Linde plc, as the new holding company of the combined group, will file reports under the Exchange Act.

Divestitures

On July 5, 2018, Praxair entered into a sale and purchase agreement to sell the majority of its businesses in Europe to Taiyo Nippon Sanso Corporation, an affiliate of Mitsubishi Chemical Holdings Corporation (the “Praxair Europe SPA”). The Praxair Europe SPA was entered into as part of the commitments in connection with the merger control review of the Business Combination by the European Commission. The assets to be sold include Praxair’s industrial gases businesses in Belgium, Denmark, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden and the United Kingdom with approximately 2,500 employees. The businesses generated annual sales of approximately €1.3 billion in 2017. The purchase price for this transaction is €5.0 billion in cash consideration and is subject to customary adjustments at closing. Under the Praxair Europe SPA, Linde plc has given an independent guarantee as of the completion of the Business Combination for the full, due and timely performance and observance of all obligations of Praxair and its local subsidiaries holding shares in the companies operating the businesses to be sold. The Praxair Europe SPA contains representations, warranties and covenants that are customary for a transaction of this nature.

Following the closing of the Praxair Europe SPA and the closing of another agreement dated December 5, 2017 (the “SIAD SPA”) under which Praxair, inter alia, agreed to sell its participation in its Italian joint venture Società Italiana Acetilene e Derivati S.p.A. (“SIAD”) to its joint venture partner Flow Fin S.p.A. (“Flow Fin”) in exchange for Flow Fin’s participation in another Italian joint venture, Rivoira S.p.A., and a net purchase price of approximately €90 million payable by Praxair to Flow Fin, Praxair will have minor remaining operations in Europe which will be outside of the industrial gases business and mainly related to coatings.

In the course of the merger control proceedings in the United States, Linde plc, Praxair and Linde AG entered into an agreement with the U.S. Federal Trade Commission dated October 1, 2018 which provides for the divestitures under the Americas SPA and provides for certain additional divestiture commitments in the United States. Under the agreement, Linde plc, Praxair and Linde AG will (i) continue to operate The Linde Group and Praxair as independent, ongoing, economically viable, competitive businesses held separate, distinct, and apart from each other’s operations; (ii) not coordinate any aspect of the operations of The Linde Group and Praxair, including the marketing or sale of any products; and (iii) maintain separate financial ledgers, books, and records that report on a periodic basis, consistent with past practices, the assets, liabilities, expenses, revenues, and income of each, until certain divestitures have been completed.

In addition, in connection with the merger control proceedings in China, India and South Korea, Praxair and Linde AG have made certain divestiture commitments to the relevant antitrust authorities to divest certain assets in the those jurisdictions.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Accounting Standards Implemented in 2017

Accounting Standards Implemented in 2018

• Revenue Recognition – In May 2014, the FASB issued updated guidance on the reporting and disclosure of revenue. Effective January 1, 2018, Praxair has adopted this guidance using the modified retrospective transition method. No material differences in revenue recognition accounting were identified under the new guidance compared with the Company's historic revenue recognition accounting (see Note 15).

• Classification of Certain Cash Receipts and Cash Payments – In August 2016, the FASB issued updated guidance on the classification of certain cash receipts and cash payments within the statement of cash flows. The update provides accounting guidance for specific cash flow issues with the objective of reducing diversity in practice. The adoption of this guidance did not have a material impact on the financial statements.

• Intra-Entity Asset Transfers – In October 2016, the FASB issued updated guidance for income tax accounting of intra-entity transfers of assets other than inventory. The update requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory in the period when the transfer occurs. The adoption of this guidance did not have a material impact on the financial statements.

• Pension Costs - In March 2017, the FASB issued updated guidance on the presentation of net periodic pension cost and net periodic postretirement benefit cost. The new guidance requires the service cost component be reported in the same line item or items as other compensation costs arising from services rendered by employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and not included within operating profit. This guidance was adopted in the first quarter 2018. Accordingly, non-service related components of net periodic pension and postretirement benefit costs were reclassified out of "Operating Profit" to "Net pension and OPEB cost (benefit), excluding service cost" using the practical expedient to use the amounts disclosed in the retirement benefits note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements (see Note 11).

Accounting Standards to be Implemented

Accounting Standards to be Implemented

• Leases – In February 2016, the FASB issued updated guidance on the accounting and financial statement presentation of leases. The new guidance requires lessees to recognize a right-of-use asset and lease liability for all leases, except those that meet certain scope exceptions, and would require expanded quantitative and qualitative disclosures. This guidance will be effective for Praxair beginning in the first quarter 2019 and requires companies to transition using a modified retrospective approach. Praxair is in the process of implementing the new guidance and will provide updates on the expected impact to Praxair in future filings, as appropriate.

• Credit Losses on Financial Instruments –In June 2016, the FASB issued an update on the measurement of credit losses. The guidance introduces a new accounting model for expected credit losses on financial instruments, including trade receivables, based on estimates of current expected credit losses. This guidance will be effective for Praxair beginning in the first quarter 2020, with early adoption permitted beginning in the first quarter 2019 and requires companies to apply the change in accounting on a prospective basis. We are currently evaluating the impact this update will have on our consolidated financial statements.

• Simplifying the Test for Goodwill Impairment – In January 2017, the FASB issued updated guidance on the measurement of goodwill. The new guidance eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The guidance will be effective for Praxair beginning in the first quarter 2020. Praxair does not expect this guidance to have a material impact.

• Derivatives and Hedging - In August 2017, the FASB issued updated guidance on accounting for hedging activities. The new guidance changes both the designation and measurement for qualifying hedging relationships and the presentation of hedge results. This guidance will be effective for Praxair beginning in the first quarter 2019, with early adoption optional. Praxair is currently evaluating the impact this update will have on our consolidated financial statements.

• Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income – In February 2018, the FASB issued updated guidance which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This new guidance will be effective for Praxair beginning in the first quarter 2019 on a retrospective basis, with early adoption optional. Praxair is currently assessing the impact and timing of adoption.

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Supplemental Information (Tables)

9 Months Ended

Sep. 30, 2018

Supplemental Information [Abstract]

Schedule Of Inventories Table

The following is a summary of Praxair’s consolidated inventories:

(Millions of dollars)	September 30, 2018		December 31, 2017
Inventories
Raw materials and supplies	$	218	$	224
Work in process	54		57
Finished goods	350		333
Total inventories	$	622	$	614

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Debt (Tables)

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Long-term And Short-term Debt Table

The following is a summary of Praxair’s outstanding debt at September 30, 2018 and December 31, 2017:

(Millions of dollars)	September 30, 2018			December 31, 2017
SHORT-TERM
Commercial paper and U.S. bank borrowings	$	83		$	202
Other bank borrowings (primarily international)	32			36
Total short-term debt	115			238
LONG-TERM (a)
U.S. borrowings (U.S. dollar denominated unless otherwise noted)
1.20% Notes due 2018 (b)	—			498
1.25% Notes due 2018 (b, c)	475			475
1.90% Notes due 2019	500			500
4.50% Notes due 2019	599			599
1.50% Euro-denominated notes due 2020	694			717
2.25% Notes due 2020	299			299
4.05% Notes due 2021	499			498
3.00% Notes due 2021	498			497
2.45% Notes due 2022	598			598
2.20% Notes due 2022	498			498
2.70% Notes due 2023	498			498
1.20% Euro-denominated notes due 2024	636			658
2.65% Notes due 2025	398			397
1.625% Euro-denominated notes due 2025	574			594
3.20% Notes due 2026	725			725
3.55% Notes due 2042	662			662
Other	10			12
International bank borrowings	31			33
Obligations under capital leases	3			4
	8,197			8,762
Less: current portion of long-term debt	(1,582		)	(979		)
Total long-term debt	6,615			7,783
Total debt	$	8,312		$	9,000

(a) Amounts are net of unamortized discounts, premiums and/or debt issuance costs as applicable.

(b) In March 2018, Praxair repaid $500 million of 1.20% notes that became due. On November 7, 2018, Praxair repaid $475 million of 1.25% notes that became due.

(c) September 30, 2018 and December 31, 2017 include a less than $1 million fair value decrease and a less than $1 million increase, respectively, related to hedge accounting. See Note 6 for additional information.

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Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments Fair Value and Notional Amounts Table

The following table is a summary of the notional amount and fair value of derivatives outstanding at September 30, 2018 and December 31, 2017 for consolidated subsidiaries:

					Fair Value
	Notional Amounts				Assets				Liabilities
(Millions of dollars)	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
Derivatives Not Designated as Hedging Instruments:
Currency contracts:
Balance sheet items (a)	$	2,099	$	2,693	$	16	$	16	$	6	$	16
Derivatives Designated as Hedging Instruments:
Currency contracts:
Balance sheet items (a)	$	—	$	38	$	—	$	—	$	—	$	2
Forecasted purchases (a)	6		4		—		1		—		—
Interest rate contracts:
Interest rate swaps (a, b)	475		475		—		—		—		—
Total Hedges	$	481	$	517	$	—	$	1	$	—	$	2
Total Derivatives	$	2,580	$	3,210	$	16	$	17	$	6	$	18

(a) Assets are recorded in prepaid and other current assets, and liabilities are recorded in other current liabilities.

(b) On November 7, 2018, Praxair repaid $475 million of 1.25% notes that became due and the associated interest rate swap was settled.

Schedule Of Treasury Rate Lock Contracts Table Text Block

The following table summarizes the unrecognized gains (losses) related to terminated treasury rate lock contracts:

	Year Terminated	Original Gain / (Loss)			Unrecognized Gain / (Loss) (a)
(Millions of dollars)					September 30, 2018			December 31, 2017
Treasury Rate Locks
Underlying debt instrument:
$500 million 2.20% fixed-rate notes that mature in 2022 (b)	2012	$	(2	)	$	—		$	(1	)
$500 million 3.00% fixed-rate notes that mature in 2021 (b)	2011	(11		)	(3		)	(4		)
$600 million 4.50% fixed-rate notes that mature in 2019 (b)	2009	16			1			3
Total - pre-tax					$	(2	)	$	(2	)
Less: income taxes					1			1
After- tax amounts					$	(1	)	$	(1	)

(a) The unrecognized gains / (losses) for the treasury rate locks are shown in accumulated other comprehensive income (“AOCI”) and are being recognized on a straight line basis to interest expense – net over the term of the underlying debt agreements. Refer to the table below summarizing the impact on the company’s consolidated statements of income and AOCI for current period gain (loss) recognition.

(b) The notional amount of the treasury rate lock contracts are equal to the underlying debt instrument with the exception of the treasury rate lock contract entered into to hedge the $600 million4.50% fixed-rate notes that mature in 2019. The notional amount of this contract was $500 million.

Schedule of Derivative Instruments Not Designated as Hedging Instruments Table

The following table summarizes the impact of the company’s derivatives on the consolidated statements of income:

	Amount of Pre-Tax Gain (Loss) Recognized in Earnings *
	Quarter Ended September 30,					Nine Months Ended September 30,
(Millions of dollars)	2018		2017			2018			2017
Derivatives Not Designated as Hedging Instruments
Currency contracts:
Balance sheet items
Debt-related	$	17	$	19		$	(15	)	$	128
Other balance sheet items	3		(1		)	4			1
Total	$	20	$	18		$	(11	)	$	129

* The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities. Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt items are recorded in the consolidated statements of income as interest expense-net. Other balance sheet items and anticipated net income gains (losses) are recorded in the consolidated statements of income as other income (expenses)-net.

Schedule of Derivative Instruments Designated As Hedging Instruments Table

The following table summarizes the impacts of the company's derivatives designated as hedging instruments that impact AOCI:

Derivatives Designated as Hedging Instruments **

	Quarter Ended
	Amount of Gain  (Loss) Recognized in AOCI					Amount of Gain  (Loss) Reclassified from AOCI to the Consolidated Statement of Income
(Millions of dollars)	September 30, 2018		September 30, 2017			September 30, 2018		September 30, 2017
Currency contracts:
Balance sheet items	$	—	$	(1	)	$	—	$	—
Forecasted purchases	—		1			—		—
Interest rate contracts:
Treasury rate lock contracts	—		—			—		—
Total - pre tax	$	—	$	—		$	—	$	—
Less: income taxes	—		—			—		—
Total - Net of Taxes	$	—	$	—		$	—	$	—

	Nine Months Ended
	Amount of Gain  (Loss) Recognized in AOCI					Amount of Gain  (Loss) Reclassified from AOCI to the Consolidated Statement of Income
(Millions of dollars)	September 30, 2018		September 30, 2017			September 30, 2018		September 30, 2017
Currency contracts:
Balance sheet items	$	—	$	(1	)	$	—	$	—
Forecasted purchases	—		1			—		—
Interest rate contracts:
Treasury rate lock contracts	—		—			—		—
Total - pre tax	$	—	$	—		$	—	$	—
Less: income taxes	—		—			—		—
Total - Net of Taxes	$	—	$	—		$	—	$	—

**The gains (losses) on net investment hedges are recorded as a component of AOCI within foreign currency translation adjustments in the condensed consolidated balance sheets and the condensed consolidated statements of comprehensive income. The gains (losses) on treasury rate locks are recorded as a component of AOCI within derivative instruments in the condensed consolidated balance sheets and the condensed consolidated statements of comprehensive income. There was no ineffectiveness for these instruments during 2018 or 2017. The gains (losses) on net investment hedges are reclassified to earnings only when the related currency translation adjustments are required to be reclassified, usually upon sale or liquidation of the investment. The gains (losses) for interest rate contracts are reclassified to earnings as interest expense –net on a straight-line basis over the remaining maturity of the underlying debt. Net losses of $1 million are expected to be reclassified to earnings during the next twelve months.

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Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Table

The following table summarizes assets and liabilities measured at fair value on a recurring basis:

	Fair Value Measurements Using
	Level 1		Level 2				Level 3
(Millions of dollars)	September 30, 2018	December 31, 2017	September 30, 2018		December 31, 2017		September 30, 2018	December 31, 2017
Assets
Derivatives	—	—	$	16	$	17	—	—
Liabilities
Derivatives	—	—	$	6	$	18	—	—

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Earnings Per Share - Praxair, Inc. Shareholders (Tables)

9 Months Ended

Sep. 30, 2018

Earnings Per Share [Abstract]

Earnings Per Share Table - Praxair, Inc. Shareholders - Table

Basic earnings per share is computed by dividing Net income – Praxair, Inc. for the period by the weighted average number of Praxair common shares outstanding. Diluted earnings per share is computed by dividing Net income – Praxair, Inc. for the period by the weighted average number of Praxair common shares outstanding and dilutive common stock equivalents, as follows:

	Quarter Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Numerator (Millions of dollars)
Net income - Praxair, Inc.	$	461	$	419	$	1,403	$	1,214
Denominator (Thousands of shares)
Weighted average shares outstanding	287,752		286,103		287,465		285,654
Shares earned and issuable under compensation plans	341		364		335		368
Weighted average shares used in basic earnings per share	288,093		286,467		287,800		286,022
Effect of dilutive securities
Stock options and awards	3,420		2,749		3,475		2,502
Weighted average shares used in diluted earnings per share	291,513		289,216		291,275		288,524
Basic Earnings Per Share	$	1.60	$	1.46	$	4.87	$	4.24
Diluted Earnings Per Share	$	1.58	$	1.45	$	4.82	$	4.21

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Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill Table

Changes in the carrying amount of goodwill for the nine months ended September 30, 2018 were as follows:

(Millions of dollars)	North America		South America			Europe			Asia			Surface Technologies			Total
Balance, December 31, 2017	$	2,202	$	129		$	698		$	61		$	143		$	3,233
Acquisitions	3		—			—			—			—			3
Purchase adjustments & other	12		—			—			—			—			12
Foreign currency translation	—		(27		)	(16		)	(1		)	(3		)	(47		)
Balance, September 30, 2018	$	2,217	$	102		$	682		$	60		$	140		$	3,201

Schedule of Other Intangible Assets Table

Changes in the carrying amounts of other intangibles for the nine months ended September 30, 2018 were as follows:

(Millions of dollars)	Customer & License/Use Agreements			Non-compete Agreements			Patents & Other			Total
Cost:
Balance, December 31, 2017	$	772		$	28		$	52		$	852
Additions	1			1			—			2
Foreign currency translation	(9		)	—			(1		)	(10		)
Other*	(20		)	(5		)	—			(25		)
Balance, September 30, 2018	$	744		$	24		$	51		$	819
Less: Accumulated amortization
Balance, December 31, 2017	$	(260	)	$	(18	)	$	(21	)	$	(299	)
Amortization expense	(28		)	(3		)	(3		)	(34		)
Foreign currency translation	3			—			—			3
Other*	19			5			—			24
Balance, September 30, 2018	$	(266	)	$	(16	)	$	(24	)	$	(306	)
Net balance at September 30, 2018	$	478		$	8		$	27		$	513

* Other primarily relates to the write-off of fully amortized assets.

Schedule of Estimated Future Amortization Expense Table

Total estimated annual amortization expense is as follows:

(Millions of dollars)
Remaining 2018	$	11
2019	43
2020	41
2021	39
2022	38
Thereafter	341
	$	513

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Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The following weighted-average assumptions were used to value the grants in 2018 and 2017:

	Nine months ended September 30,
	2018		2017
Dividend yield	2.1	%	2.7	%
Volatility	14.4	%	14.0	%
Risk-free interest rate	2.67	%	2.13	%
Expected term years	5		6

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes option activity under the plans as of September 30, 2018 and changes during the nine-month period then ended (averages are calculated on a weighted basis; life in years; intrinsic value expressed in millions):

	Number of Options  (000’s)		Average Exercise Price		Average Remaining Life	Aggregate Intrinsic Value
Outstanding at January 1, 2018	10,787		$	108.70
Granted	1,625		154.00
Exercised	(1,502	)	94.50
Cancelled or Expired	(63	)	128.91
Outstanding at September 30, 2018	10,847		117.34		6.2	$	471
Exercisable at September 30, 2018	7,143		$	110.46	5.0	$	359

Performance Based and Restricted Stock Activity

The following table summarizes non-vested performance-based and restricted stock award activity as of September 30, 2018 and changes during the nine months then ended (shares based on target amounts, averages are calculated on a weighted basis):

	Performance-Based				Restricted Stock
	Number  of Shares (000’s)		Average Grant  Date Fair Value		Number  of Shares (000’s)		Average Grant  Date Fair Value
Non-vested at January 1, 2018	665		$	113.40	264		$	107.56
Granted	—		—		269		144.79
Vested	(78	)	119.98		(89	)	116.22
Cancelled and Forfeited	(151	)	110.32		(17	)	100.23
Non-vested at September 30, 2018	436		$	110.02	427		$	129.52

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Retirement Programs (Tables)

9 Months Ended

Sep. 30, 2018

Retirement Benefits, Description [Abstract]

Schedule of Pension and OPEB Net Periodic Benefit Costs Table

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

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

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

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Segments (Tables)

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, Sales Table

(a) Sales reflect external sales only. Intersegment sales, primarily from North America to other segments, were not material

Sales and operating profit by segment for the quarters and nine months ended September 30, 2018 and 2017 are shown below. 2017 segment operating profit has been reclassified to conform with current year presentation as a result of the adoption of new accounting guidance on the presentation of net periodic pension and postretirement benefit costs (see Note 1).

	Quarter Ended September 30,				Nine Months Ended September 30,
(Millions of dollars)	2018		2017		2018		2017
SALES(a)
North America	$	1,613	$	1,518	$	4,770	$	4,481
Europe	425		407		1,297		1,146
South America	329		389		1,043		1,131
Asia	487		451		1,465		1,268
Surface Technologies	170		157		509		458
Total sales	$	3,024	$	2,922	$	9,084	$	8,484

Schedule Of Segment Reporting Information, Operating Profit

	Quarter Ended September 30,						Nine Months Ended September 30,
(Millions of dollars)	2018			2017			2018			2017
OPERATING PROFIT
North America	$	420		$	386		$	1,258		$	1,121
Europe	81			79			248			220
South America	57			66			167			178
Asia	110			88			321			243
Surface Technologies	32			27			91			78
Segment operating profit	700			646			2,085			1,840
Transaction costs and other charges (Note 2)	(31		)	(14		)	(74		)	(35		)
Total operating profit	$	669		$	632		$	2,011		$	1,805

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Equity and Redeemable Noncontrolling Interests (Tables)

9 Months Ended

Sep. 30, 2018

Equity And Noncontrolling Interests Disclosure [Abstract]

Schedule of Stockholders Equity

A summary of the changes in total equity for the quarters and nine months ended September 30, 2018 and 2017 is provided below:

	Quarter Ended September 30,
(Millions of dollars)	2018									2017
Activity	Praxair, Inc. Shareholders’ Equity			Noncontrolling Interests			Total Equity			Praxair, Inc. Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, beginning of period	$	6,027		$	501		$	6,528		$	5,807		$	453		$	6,260
Net income (a)	461			19			480			419			16			435
Other comprehensive income (loss)	(60		)	(7		)	(67		)	219			10			229
Noncontrolling interests:
Additions (reductions)	—			—			—			—			2			2
Dividends and other capital changes	—			(10		)	(10		)	—			(6		)	(6		)
Redemption value adjustments	(1		)	—			(1		)	—			—			—
Dividends to Praxair, Inc. common stock holders ($0.825 per share in 2018 and $0.7875 per share in 2017)	(238		)	—			(238		)	(225		)	—			(225		)
Issuances of common stock:
For the dividend reinvestment and stock purchase plan	2			—			2			2			—			2
For employee savings and incentive plans	23			—			23			18			—			18
Purchases of common stock	(1		)	—			(1		)	—			—			—
Share-based compensation	19			—			19			16			—			16
Balance, end of period	$	6,232		$	503		$	6,735		$	6,256		$	475		$	6,731

	Nine Months Ended September 30,
(Millions of dollars)	2018									2017
Activity	Praxair, Inc. Shareholders’ Equity			Noncontrolling Interests			Total Equity			Praxair, Inc. Shareholders’ Equity			Noncontrolling Interests			Total Equity
Balance, beginning of period	$	6,018		$	493		$	6,511		$	5,021		$	420		$	5,441
Net income (a)	1,403			46			1,449			1,214			44			1,258
Other comprehensive income (loss)	(558		)	(17		)	(575		)	575			28			603
Noncontrolling interests:
Additions (reductions)	—			7			7			—			9			9
Dividends and other capital changes	—			(26		)	(26		)	—			(26		)	(26		)
Redemption value adjustments	(3		)	—			(3		)	—			—			—
Dividends to Praxair, Inc. common stock holders ($2.475 per share in 2018 and $2.36 per share in 2017)	(712		)	—			(712		)	(675		)	—			(675		)
Issuances of common stock:
For the dividend reinvestment and stock purchase plan	5			—			5			5			—			5
For employee savings and incentive plans	41			—			41			72			—			72
Other	—			—			—			—			—			—
Purchases of common stock	(2		)	—			(2		)	—			—			—
Share-based compensation	40			—			40			44			—			44
Balance, end of period	$	6,232		$	503		$	6,735		$	6,256		$	475		$	6,731

(a) Net income for noncontrolling interests excludes Net income related to redeemable noncontrolling interests of $2 million for the nine months ended September 30, 2018 ($1 million for the same time period in 2017) which is not part of total equity (see redeemable noncontrolling interests section below).

Schedule of Accumulated Other Comprehensive Income (Loss)

The components of AOCI are as follows:

	September 30,			December 31,
(Millions of dollars)	2018			2017
Cumulative translation adjustment - net of taxes:
North America	$	(891	)	$	(885	)
South America	(2,391		)	(2,004		)
Europe	(427		)	(398		)
Asia	(314		)	(151		)
Surface Technologies	(30		)	(17		)
	(4,053		)	(3,455		)
Derivatives - net of taxes	(1		)	(1		)
Pension / OPEB funded status obligation (net of $336 million and $347 million tax benefit in September 30, 2018 and December 31, 2017, respectively)	(602		)	(642		)
	$	(4,656	)	$	(4,098	)

Redeemable Noncontrolling Interest

Following is a summary of the changes in redeemable noncontrolling interests for the nine months ended September 30, 2018 and 2017:

(Millions of dollars)	2018			2017
Balance, January 1	$	11		$	11
Net income	2			1
Distributions to noncontrolling interest and other	(1		)	(1		)
Redemption value adjustments/accretion	3			—
Balance, September 30	$	15		$	11

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Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2018

Revenue Recognition [Abstract]

Schedule of Revenue by Distribution Method, by Reportable Segments [Table Text Block]

The following table shows sales by distribution method for each reportable segment and at the consolidated level for the quarter and nine months ended September 30, 2018.

Quarter Ended September 30,
(Dollars in Millions)			Industrial Gases
Sales	North America			Europe		South America		Asia		Surface Technologies		Total		%
Merchant	$	604		$	146	$	125	$	163	$	—	$	1,038	34	%
On-Site	474			78		112		241		—		905		30	%
Packaged Gas	495			184		86		55		—		820		27	%
Other	40			17		6		28		170		261		9	%
	$	1,613		$	425	$	329	$	487	$	170	$	3,024	100	%

Nine Months Ended September 30,
(Dollars in Millions)			Industrial Gases
Sales	North America			Europe		South America		Asia		Surface Technologies		Total		%
Merchant	$	1,768		$	446	$	399	$	474	$	—	$	3,087	34	%
On-Site	1,392			235		343		737		—		2,707		30	%
Packaged Gas	1,496			564		277		166		—		2,503		28	%
Other	114			52		24		88		509		787		8	%
	$	4,770		$	1,297	$	1,043	$	1,465	$	509	$	9,084	100	%

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Transaction Costs and Other Charges (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Unusual or Infrequent Item, or Both [Line Items]
Other Nonrecurring (Income) Expense	$ 31	$ 14	$ 74	$ 35
Net Income (Loss) Attributable to Parent			1,403	1,214
Transaction Costs [Member]
Unusual or Infrequent Item, or Both [Line Items]
Other Nonrecurring (Income) Expense	21	14	64	35
Argentina Hyper-Inflation Charge [Member]
Unusual or Infrequent Item, or Both [Line Items]
Other Nonrecurring (Income) Expense	10
Net Income (Loss) Attributable to Parent	$ 10
Income (Loss) from Continuing Operations, Per Diluted Share	$ (0.03)
Transaction Costs and Other Charges [Member]
Unusual or Infrequent Item, or Both [Line Items]
Net Income (Loss) Attributable to Parent	$ 29	$ 13	$ 67	$ 34
Income (Loss) from Continuing Operations, Per Diluted Share	$ (0.10)	$ (0.05)	$ (0.23)	$ (0.12)
Transaction Costs [Member]
Unusual or Infrequent Item, or Both [Line Items]
Net Income (Loss) Attributable to Parent	$ 19		$ 57
Transaction Costs		$ 13		$ 34
Income (Loss) from Continuing Operations, Per Diluted Share	$ (0.07)	$ (0.05)	$ (0.20)	$ (0.12)

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Supplemental Information (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Prepaid Expense and Other Assets, Noncurrent [Abstract]
Long-term receivables, net	$ 31	$ 54
Long-term receivables reserve	45	51
Inventory, Finished Goods and Work in Process, Gross [Abstract]
Raw materials and supplies	218	224
Work in process	54	57
Finished goods	350	333
Total inventories	$ 622	$ 614

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Debt (ST and LT Debt) (Details) - USD ($) $ in Millions			3 Months Ended		9 Months Ended
		Nov. 07, 2018	Dec. 31, 2018	Mar. 31, 2018	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument Line Items
Repayments of Long-term Debt					$ 505	$ 160
Fair Value Of Debt Instrument Increase Or Decrease					1			$ (1)
Long-term Debt, Current and Noncurrent [Abstract]
Commercial Paper and U.S. bank borrowings					83			202
Other bank borrowings (primarily international)					32			36
Total short-term debt					115			238
Obligations under capital lease					3			4
Carrying value of long-term debt including current portion					8,197			8,762
Less: current portion of long-term debt					1,582			979
Total long-term debt					6,615			7,783
Total debt					$ 8,312			$ 9,000
US Long-term 1.20% Notes Due 2018 [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage								1.20%
Senior Notes	[1]							$ 498
US Long-term floating plus 0.33% Notes Due 2017 [Member]
Debt Instrument Line Items
Repayments of Long-term Debt	[1],[2]			$ 500
US Long-term 1.25% Notes due 2018
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					1.25%			1.25%
Senior Notes	[1],[3]				$ 475			$ 475
US Long-term 4.50% Notes due 2019 [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					4.50%			4.50%
Senior Notes	[1]				$ 500			$ 500
px_UsLongTerm190NotesDue2019Member [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					1.90%			1.90%
Senior Notes	[1]				$ 599			$ 599
Euro Denominated Long-term 1.50% Notes Due 2020 [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					1.50%			1.50%
Senior Notes	[1]				$ 694			$ 717
US Long-term 2.25% notes due 2020 [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					2.25%			2.25%
Senior Notes	[1]				$ 299			$ 299
US Long-term 4.05% Notes due 2021 [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					4.05%			4.05%
Senior Notes	[1]				$ 499			$ 498
US Long-Term 3.00% Notes due 2021 [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					3.00%			3.00%
Senior Notes	[1]				$ 498			$ 497
US Long-term 2.45% Note due 2022 [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					2.45%			2.45%
Senior Notes	[1]				$ 598			$ 598
Us2point20percentnotesdue2022 [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					2.20%			2.20%
Senior Notes	[1]				$ 498			$ 498
UsLongTerm270NoteDue2023Member [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					2.70%			2.70%
Senior Notes	[1]				$ 498			$ 498
Euro Denominated 1.20% Due 2024 [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					1.20%			1.20%
Senior Notes	[1]				$ 636			$ 658
US Long-term 2.65% Notes due 2025 [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					2.65%			2.65%
Senior Notes	[1]				$ 398			$ 397
Euro Denominated Long-term 1.625% Notes Due 2025 [Member] [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					1.625%			1.625%
Senior Notes	[1]				$ 574			$ 594
US Long-term 3.20% notes due 2026 [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					3.20%			3.20%
Senior Notes	[1]				$ 725			$ 725
Us 3point55 percent notes due 2042 [Member]
Debt Instrument Line Items
Debt Instrument, Interest Rate, Stated Percentage					3.55%			3.55%
Senior Notes	[1]				$ 662			$ 662
Other US Long Term [Member]
Debt Instrument Line Items
Other debt - carrying amount					10			12
Other International long-term debt borrowings [Member]
Debt Instrument Line Items
Other debt - carrying amount					$ 31			$ 33
$500 million revolving credit facility [Member]
Debt Instrument Line Items
Line of Credit Facility, Maximum Borrowing Capacity							$ 500
Subsequent Event [Member] | US Long-term 1.25% Notes due 2018
Debt Instrument Line Items
Repayments of Long-term Debt	[1],[2]	$ 475	$ 475

[1] Amounts are net of unamortized discounts, premiums and/or debt issuance costs as applicable.

[2] In March 2018, Praxair repaid $500 million of 1.20% notes that became due. On November 7, 2018, Praxair repaid $475 million of 1.25% notes that became due.

[3] September 30, 2018 and December 31, 2017 include a less than $1 million fair value decrease and a less than $1 million increase, respectively, related to hedge accounting. See Note 6 for additional information.

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Financial Instruments (Details) € in Millions, $ in Millions			3 Months Ended			9 Months Ended		12 Months Ended
		Nov. 07, 2018 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2009 USD ($)	Sep. 30, 2018 EUR (€)	Sep. 30, 2018 USD ($)	Jul. 31, 2012 USD ($)	Aug. 31, 2011 USD ($)	Dec. 31, 2008 USD ($)
Derivative [Line Items]
Repayments of Long-term Debt						$ 505	$ 160
Notional Amount of Derivatives								$ 3,210					$ 2,580
Derivatives Assets								17					16
Derivative Liabilities								18					6
Amount of Gain (Loss) Recognized in AOCI, Before Tax				$ 0	$ 0
Amount of Gain (Loss) Reclassified from AOCI to the Consolidated Statement of Income, Before Tax				0	0
Derivative Instruments, Tax Impact of Net Change in AOCI				0	0
Net gains (losses) to be recognized over next 12 months (approximately $1 million)													(1)
Jul 2012 Treasury Lock [Member]
Derivative [Line Items]
Debt instrument, face value	[1]													$ 500
Debt Instrument, Interest Rate, Stated Percentage														2.20%
Aug 2011Treasury Lock [Member]
Derivative [Line Items]
Debt instrument, face value	[1]														$ 500
Debt Instrument, Interest Rate, Stated Percentage															3.00%
December 2008 Treasury Lock [Member]
Derivative [Line Items]
Debt instrument, face value	[1]															$ 600
Notional Amount of Derivatives																$ 500
Debt Instrument, Interest Rate, Stated Percentage																4.50%
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	[2]			20	18	(11)	129
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]
Derivative [Line Items]
Notional Amount of Derivatives	[3]							2,693					2,099
Derivatives Assets	[3]							16					16
Derivative Liabilities	[3]							16					6
Not Designated as Hedging Instrument [Member] | Debt-Related [Member]
Derivative [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	[2]			17	19	(15)	128
Not Designated as Hedging Instrument [Member] | Other Balance Sheet Items [Member]
Derivative [Line Items]
Amount of Pre-Tax Gain (Loss) Recognized in Earnings	[2]			3	(1)	4	1
Cash Flow Hedging [Member] | Interest Rate Lock Commitments [Member]
Derivative [Line Items]
Original deferred loss on settlement of derivative instruments - gross									$ (2)	$ (11)
Original deferred gain on settlement of derivative instruments - gross											$ 16
Cash Flow Hedging [Member] | Treasury Lock [Member]
Derivative [Line Items]
Deferred Gain (Loss) on Hedge, Gross	[4]							(2)					(2)
Derivative Instruments, Tax Impact of Net Change in AOCI	[4]					1		1
Derivative Instrument Gain Loss Recognized In Other Comprehensive Income Effective Portion Net Of Tax	[4]							(1)					(1)
Cash Flow Hedging [Member] | Jul 2012 Treasury Lock [Member]
Derivative [Line Items]
Deferred Gain (Loss) on Hedge, Gross	[4]							(1)					0
Cash Flow Hedging [Member] | Aug 2011Treasury Lock [Member]
Derivative [Line Items]
Deferred Gain (Loss) on Hedge, Gross	[4]							(4)					(3)
Cash Flow Hedging [Member] | December 2008 Treasury Lock [Member]
Derivative [Line Items]
Deferred Gain (Loss) on Hedge, Gross	[4]							3					1
Net Investment Hedging [Member]
Derivative [Line Items]
Euro-denominated notes notional value												€ 1,650	1,920
Euro-denominated notes designated as hedging instrument												€ 1,630	1,890
Derivatives used in Net Investment Hedge, Increase (Decrease), Gross of Tax						65
Derivatives used in Net Investment Hedge Increase (Decrease) since inception, Gross of Tax						162
Derivatives Designated as Hedging Instruments - Fair Value | Interest Rate Swap
Derivative [Line Items]
Debt instrument, face value													475
Notional Amount of Derivatives	[3]							475					$ 475
Debt Instrument, Interest Rate, Stated Percentage												1.25%	1.25%
Designated as Hedging Instrument
Derivative [Line Items]
Notional Amount of Derivatives								517					$ 481
Derivatives Assets								1					0
Derivative Liabilities								2					0
Amount of Gain (Loss) Recognized in AOCI, Net of Taxes	[5]			0	0	0	0
Amount of Gain (Loss) Reclassified from AOCI to the Consolidated Statement of Income, Before Tax	[5]			0	0	0	0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	[5]			0	0	0	0
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Net of Tax	[5]			$ 0	0	$ 0	0
Designated as Hedging Instrument | Balance Sheet Items [Member]
Derivative [Line Items]
Amount of Gain (Loss) Recognized in AOCI, Before Tax	[5]				(1)		(1)
Designated as Hedging Instrument | Foreign Exchange Contract [Member]
Derivative [Line Items]
Notional Amount of Derivatives	[3]							38					0
Derivative Liabilities	[3]							2
Designated as Hedging Instrument | Forecasted Purchases
Derivative [Line Items]
Notional Amount of Derivatives	[3]							4					6
Derivatives Assets	[3]							1
Amount of Gain (Loss) Recognized in AOCI, Before Tax	[5]				$ 1		$ 1
US Long-term 1.25% Notes due 2018
Derivative [Line Items]
Senior Notes	[6],[7]							$ 475					$ 475
Debt Instrument, Interest Rate, Stated Percentage								1.25%				1.25%	1.25%
Subsequent Event [Member] | US Long-term 1.25% Notes due 2018
Derivative [Line Items]
Repayments of Long-term Debt	[6],[8]	$ 475	$ 475

[1] The notional amount of the treasury rate lock contracts are equal to the underlying debt instrument with the exception of the treasury rate lock contract entered into to hedge the $600 million 4.50% fixed-rate notes that mature in 2019. The notional amount of this contract was $500 million.

[2] The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities. Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt items are recorded in the consolidated statements of income as interest expense-net. Other balance sheet items and anticipated net income gains (losses) are recorded in the consolidated statements of income as other income (expenses)-net.

[3] Assets are recorded in prepaid and other current assets, and liabilities are recorded in other current liabilities.

[4] The unrecognized gains / (losses) for the treasury rate locks are shown in accumulated other comprehensive income (“AOCI”) and are being recognized on a straight line basis to interest expense – net over the term of the underlying debt agreements. Refer to the table below summarizing the impact on the company’s consolidated statements of income and AOCI for current period gain (loss) recognition.

[5] The gains (losses) on net investment hedges are recorded as a component of AOCI within foreign currency translation adjustments in the condensed consolidated balance sheets and the condensed consolidated statements of comprehensive income. The gains (losses) on treasury rate locks are recorded as a component of AOCI within derivative instruments in the condensed consolidated balance sheets and the condensed consolidated statements of comprehensive income. There was no ineffectiveness for these instruments during 2018 or 2017. The gains (losses) on net investment hedges are reclassified to earnings only when the related currency translation adjustments are required to be reclassified, usually upon sale or liquidation of the investment. The gains (losses) for interest rate contracts are reclassified to earnings as interest expense –net on a straight-line basis over the remaining maturity of the underlying debt. Net losses of $1 million are expected to be reclassified to earnings during the next twelve months.

[6] Amounts are net of unamortized discounts, premiums and/or debt issuance costs as applicable.

[7] September 30, 2018 and December 31, 2017 include a less than $1 million fair value decrease and a less than $1 million increase, respectively, related to hedge accounting. See Note 6 for additional information.

[8] In March 2018, Praxair repaid $500 million of 1.20% notes that became due. On November 7, 2018, Praxair repaid $475 million of 1.25% notes that became due.

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Fair Value Disclosures (Details) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Assets and Liabilities Measured on a Recurring Basis
Derivative assets	$ 16	$ 17
Derivative liabilities	6	18
Fair Value Additional Information [Abstract]
Carrying value of long-term debt including current portion	8,197	8,762
Level 2 Member
Fair Value Additional Information [Abstract]
Fair value of long-term debt	8,164	8,969
Level 2 Member | Fair Value, Measurements, Recurring
Assets and Liabilities Measured on a Recurring Basis
Derivative assets	16	17
Derivative liabilities	$ 6	$ 18

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Earnings Per Share - Praxair, Inc. Shareholders (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Net Income (Loss) Attributable to Parent [Abstract]
Net income – Praxair, Inc.			$ 1,403	$ 1,214
Denominator (Details) [Abstract]
Weighted average shares outstanding	287,752,000	286,103,000	287,465,000	285,654,000
Shares earned and issuable under compensation plans	341,000	364,000	335,000	368,000
Weighted average shares used in basic earnings per share	288,093,000	286,467,000	287,800,000	286,022,000
Stock options and awards	3,420,000	2,749,000	3,475,000	2,502,000
Weighted average shares used in diluted earnings per share	291,513,000	289,216,000	291,275,000	288,524,000
Basic Earnings Per Common Share	$ 1.60	$ 1.46	$ 4.87	$ 4.24
Diluted earnings per share (usd per share)	$ 1.58	$ 1.45	$ 4.82	$ 4.21
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive excluded from the computation of Earnings Per Share				2,439,499

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Goodwill and Other Intangible Assets - Goodwill (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($)
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 3,233
Goodwill, Acquired During Period	3
Purchase adjustments & other	12
Foreign currency translation	(47)
Goodwill, Ending Balance	3,201
North America Segment
Goodwill [Roll Forward]
Goodwill, Beginning Balance	2,202
Goodwill, Acquired During Period	3
Purchase adjustments & other	12
Goodwill, Ending Balance	2,217
South America Segment
Goodwill [Roll Forward]
Goodwill, Beginning Balance	129
Goodwill, Acquired During Period	0
Foreign currency translation	(27)
Goodwill, Ending Balance	102
Europe Segment
Goodwill [Roll Forward]
Goodwill, Beginning Balance	698
Goodwill, Acquired During Period	0
Foreign currency translation	(16)
Goodwill, Ending Balance	682
Asia Segment
Goodwill [Roll Forward]
Goodwill, Beginning Balance	61
Goodwill, Acquired During Period	0
Foreign currency translation	(1)
Goodwill, Ending Balance	60
Surface Technologies Segment
Goodwill [Roll Forward]
Goodwill, Beginning Balance	143
Goodwill, Acquired During Period	0
Foreign currency translation	(3)
Goodwill, Ending Balance	$ 140

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Goodwill and Other Intangible Assets - Other Intangible Assets (Details) $ in Millions	9 Months Ended
	Sep. 30, 2018 USD ($)
Finite-lived Intangible Assets [Roll Forward]
Beginning Period Cost	$ 852
Additions (primarily acquisitions)	2
Foreign currency translation	(10)
Other	(25)	[1]
Ending Period Cost	819
Beginning Accumulated Amortization	(299)
Amortization expense	(34)
Foreign currency translation	(3)
Other	24	[1]
Ending Accumulated Amortization	(306)
Net balance finite lived intangibles	$ 513
Additional Finite Lived Intangible Asset Information (Details) [Abstract]
Finite-lived intangible asset, useful life	16 years
Remaining 2018	$ 11
2019	43
2020	41
2021	39
2022	38
Thereafter	341
Customer & License/Use Agreements
Finite-lived Intangible Assets [Roll Forward]
Beginning Period Cost	772
Additions (primarily acquisitions)	1
Foreign currency translation	(9)
Other	(20)	[1]
Ending Period Cost	744
Beginning Accumulated Amortization	(260)
Amortization expense	(28)
Foreign currency translation	(3)
Other	19	[1]
Ending Accumulated Amortization	(266)
Net balance finite lived intangibles	478
Non-compete Agreements
Finite-lived Intangible Assets [Roll Forward]
Beginning Period Cost	28
Additions (primarily acquisitions)	1
Other	(5)	[1]
Ending Period Cost	24
Beginning Accumulated Amortization	(18)
Amortization expense	(3)
Other	5	[1]
Ending Accumulated Amortization	(16)
Net balance finite lived intangibles	8
Patents & Other
Finite-lived Intangible Assets [Roll Forward]
Beginning Period Cost	52
Additions (primarily acquisitions)	0
Foreign currency translation	(1)
Ending Period Cost	51
Beginning Accumulated Amortization	(21)
Amortization expense	(3)
Ending Accumulated Amortization	(24)
Net balance finite lived intangibles	$ 27

[1] Other primarily relates to the write-off of fully amortized assets.

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Share-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Closing Share Price	$ 160.73		$ 160.73
Additional Company Information [Abstract]
Share-based Compensation Expense	$ 19	$ 16	$ 40	$ 44
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term			6 years 2 months
Unrecognized compensation expense	$ 26		$ 26
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Dividend yield			2.10%	2.70%
Volatility			14.40%	14.00%
Risk-free interest rate			2.67%	2.13%
Expected term years			5 years	6 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Stock Options Outstanding at January 1, 2018			10,787
Stock Options Granted			1,625
Stock Options Exercised			(1,502)
Stock Options Cancelled or Expired			(63)
Stock Options Outstanding at March 31, 2018	10,847		10,847
Stock Options Exercisable at March 31, 2018	7,143		7,143
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding at January 1, 2018 - average exercise price			$ 108.70
Granted - average exercise price			154.00
Exercised - average exercise price			94.50
Cancelled or Expired - average exercise price			128.91
Outstanding at March 31, 2018 - average exercise price	$ 117.34		117.34
Exercisable at March 31, 2018 - average exercise price	$ 110.46		$ 110.46
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term			5 years
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures [Abstract]
Weighted-average fair values of options granted			$ 19.29	$ 12.40
Total intrinsic value of stock options exercised	$ 19	17	$ 96	$ 80
Cash received from option exercises	21	18	59	81
Total cash tax benefit	9	$ 5	$ 28	$ 31
Total compensation cost not yet recognized, period for recognition			1 year
Aggregate Intrinsic Value [Abstract]
Outstanding at September 30, 2018 - intrinsic value	471		$ 471
Exercisable at September 30, 2018 - intrinsic value	$ 359		$ 359

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Share-Based Compensation (PSU and RSU) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2017
PX Performance Based Awards
Additional Company Information [Abstract]
Performance based awards vesting, as a percentage of the target, low end of range		0.00%
Performance based awards vesting, as a percentage of the target, high end of range		200.00%
Total compensation cost not yet recognized, period for recognition	3 years
Cash-based Liability awards	6,000	6,000
Unrecognized compensation expense	$ 9	$ 9
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested at January 1, 2018		665,000
Granted		0
Vested		(78,000)
Cancelled		(151,000)
Non-vested at March 31, 2018	436,000	436,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Non-vested at January 1, 2018, grant date fair value		$ 113.40
Granted - average grant date fair value		0.00
Vested - average grant date fair value		119.98
Cancelled - average grant date fair value		110.32
Non-vested at March 31, 2018, grant date fair value	$ 110.02	$ 110.02
Restricted Stock
Additional Company Information [Abstract]
Cash-based Liability awards	3,000	3,000
Unrecognized compensation expense	$ 30	$ 30
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested at January 1, 2018		264,000
Granted		269,433
Vested		(89,000)
Cancelled		(17,000)
Non-vested at March 31, 2018	427,000	427,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Non-vested at January 1, 2018, grant date fair value		$ 107.56
Granted - average grant date fair value		144.79	$ 111.70
Vested - average grant date fair value		116.22
Cancelled - average grant date fair value		100.23
Non-vested at March 31, 2018, grant date fair value	$ 129.52	129.52
Performance Shares ROC
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Granted - average grant date fair value		$ 109.68
Performance Shares TSR
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Granted - average grant date fair value			$ 124.12
Maximum [Member] | PX Performance Based Awards
Additional Company Information [Abstract]
Award vesting period	1 year 9 months
Maximum [Member] | Restricted Stock
Additional Company Information [Abstract]
Award vesting period	2 years 9 months

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Retirement Programs (Net Pension and OPEB costs) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017		Sep. 30, 2018	Sep. 30, 2017
Defined Benefit Plan Disclosure [Line Items]
Net pension and OPEB cost (benefit), excluding service cost	$ 6	$ 6		$ 10	$ (7)
Pension Plans Defined Benefit Member
Defined Benefit Plan Disclosure [Line Items]
Service cost	12	12		36	35
Interest cost	25	25		76	76
Expected return on plan assets	(42)	(40)		(125)	(120)
Net amortization and deferral	18	17		54	51
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement	4	2		4	2
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) due to Settlement, after tax	$ 3	1
Income (Loss) from Pension Settlement, Per Diluted Share	$ (0.01)
Net pension and OPEB cost (benefit), excluding service cost	$ 5	4		9	9
Net periodic benefit cost	17	16		45	44
Other Postretirement Benefit Plans Defined Benefit
Defined Benefit Plan Disclosure [Line Items]
Service cost				1	2
Interest cost	1	2		3	4
Net amortization and deferral				(2)	(2)
Curtailment gain (a)		0	[1]	0	(18)	[1]
Net pension and OPEB cost (benefit), excluding service cost	1	2		1	(16)
Net periodic benefit cost	$ 1	$ 2		$ 2	$ (14)

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

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Retirement Programs (Contributions and Future Estimated Payments) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Defined Benefit Plan Disclosure [Line Items]
Pension contributions	$ 17	$ 14
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year	20
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year	$ 25

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Commitments and Contingencies (Lawsuits and Goverment Investigations) (Details) - 9 months ended Sep. 30, 2018 $ in Millions, R$ in Billions	USD ($)	BRL (R$)
Gain And Loss Contingencies [Abstract]
Brazil tax matters estimated exposure	$ 205
Initial CADE civil fine imposed	550	R$ 2.2
Revised CADE civil fine	$ 425	R$ 1.7
Percentage of guarantees to Brazilian Court initially satisfied by letters of credit	50.00%
Percentage of guarantees to Brazilian Court initially satisfied by equity	50.00%

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Segments (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Segment Reporting Information [Line Items]
Sales	[1]	$ 3,024	$ 2,922	$ 9,084	$ 8,484
Operating profit (loss)		669	632	2,011	1,805
Transaction costs and other charges (Note 2)		(31)	(14)	(74)	(35)
North America Segment
Segment Reporting Information [Line Items]
Sales	[1]	1,613	1,518	4,770	4,481
Operating profit (loss)		420	386	1,258	1,121
Europe Segment
Segment Reporting Information [Line Items]
Sales	[1]	425	407	1,297	1,146
Operating profit (loss)		81	79	248	220
South America Segment
Segment Reporting Information [Line Items]
Sales	[1]	329	389	1,043	1,131
Operating profit (loss)		57	66	167	178
Asia Segment
Segment Reporting Information [Line Items]
Sales	[1]	487	451	1,465	1,268
Operating profit (loss)		110	88	321	243
Surface Technologies Segment
Segment Reporting Information [Line Items]
Sales	[1]	170	157	509	458
Operating profit (loss)		32	27	91	78
Total Segments
Segment Reporting Information [Line Items]
Operating profit (loss)		700	646	2,085	1,840
Transaction costs and other charges (Note 2)		$ (31)	$ (14)	$ (74)	$ (35)

[1] Sales reflect external sales only. Intersegment sales, primarily from North America to other segments, were not material

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Equity and Redeemable Noncontrolling Interests Equity (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended			9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017		Sep. 30, 2018		Sep. 30, 2017		Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Funded Status Obligations, Taxes					$ (602)		$ (642)
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest					2		1
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax		$ (4,053)			(4,053)					$ (3,455)
Derivatives - net of taxes		(1)			(1)					(1)
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax		602			602					642
Accumulated other comprehensive income (loss)		(4,656)			(4,656)					(4,098)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total Praxair, Inc. Shareholders’ Equity		6,232			6,232					6,018
Noncontrolling interests		503			503					493
Total Equity		6,735			6,735					6,511
Other comprehensive income (loss)		$ (67)	$ 229		(575)		$ 603
Redemption value adjustments					$ (3)
Common Stock, Dividends, Per Share, Cash Paid		$ 0.8250	$ 0.7875		$ 2.475		$ 2.360
Praxair, Inc. Shareholders' Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total Praxair, Inc. Shareholders’ Equity		$ 6,232	$ 6,256		$ 6,232		$ 6,256		$ 6,027		$ 5,807	$ 5,021
Net income		461	419	[1]	1,403	[1]	1,214	[1]
Other comprehensive income (loss)		(60)	219		(558)		575
Dividends to Praxair, Inc. common stock holders		(238)	(225)		(712)		(675)
For the dividend reinvestment and stock purchase plan		2	2		5		5
Redemption value adjustments		(1)			(3)
For employee savings and incentive plans		23	18		41		72
Purchases of common stock		(1)			(2)
Share-based compensation		19	16		40		44
Noncontrolling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Noncontrolling interests		503	475		503		475		501	493	453	420
Net income	[1]	19	16		46		44
Other comprehensive income (loss)		(7)	10		(17)		28
Dividends and Other Capital Changes to Noncontrolling Interests		(10)	(6)		(26)		(26)
Additions (reductions) to noncontrolling interests			2		7		9
Total Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total Equity		6,735	6,731		6,735		6,731		$ 6,528		$ 6,260	$ 5,441
Net income	[1]	480	435		1,449		1,258
Other comprehensive income (loss)		(67)	229		(575)		603
Dividends and Other Capital Changes to Noncontrolling Interests		(10)	(6)		(26)		(26)
Dividends to Praxair, Inc. common stock holders		(238)	(225)		(712)		(675)
Additions (reductions) to noncontrolling interests			2		7		9
For the dividend reinvestment and stock purchase plan		2	2		5		5
Redemption value adjustments		(1)			(3)
For employee savings and incentive plans		23	18		41		72
Purchases of common stock		(1)	0		(2)
Share-based compensation		19	$ 16		40		$ 44
North America Segment
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax		(891)			(891)					(885)
South America Segment
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax		(2,391)			(2,391)					(2,004)
Europe Segment
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax		(427)			(427)					(398)
Asia Segment
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax		(314)			(314)					(151)
Surface Technologies Segment
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax		$ (30)			$ (30)					$ (17)

[1] Net income for noncontrolling interests excludes Net income related to redeemable noncontrolling interests of $2 million for the nine months ended September 30, 2018 ($1 million for the same time period in 2017) which is not part of total equity (see redeemable noncontrolling interests section below).

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Equity and Redeemable Noncontrolling Interests (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Increase (Decrease) in Temporary Equity [Roll Forward]
Balance, January 1	$ 11	$ 11
Net income	2	1
Distributions to noncontrolling interest and other	(1)	(1)
Redemption value adjustments/accretion	3
Balance, September 30	$ 15	$ 11

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Revenue Recognition (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Percentage of Total Sales, All Segments excluding Surface Technologies				94.00%
Percentage of Total Sales, Surface Technologies Segment				6.00%
Estimated Consideration related to Unsatisfied Performance Obligations		$ 19,000		$ 19,000
Sales	[1]	$ 3,024	$ 2,922	$ 9,084	$ 8,484
Percentage of Total Sales, Distribution Method		100.00%		100.00%
Merchant [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		$ 1,038		$ 3,087
Percentage of Total Sales, Distribution Method		34.3254%		33.98283%
On-Site [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		$ 905		$ 2,707
Percentage of Total Sales, Distribution Method		29.92725%		29.79965%
Packaged Gas [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		$ 820		$ 2,503
Percentage of Total Sales, Distribution Method		27.1164%		27.55394%
Other Distribution Methods [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		$ 261		$ 787
Percentage of Total Sales, Distribution Method		8.63095%		7.66358%
North America Segment
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales	[1]	$ 1,613	1,518	$ 4,770	4,481
North America Segment | Merchant [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		604		1,768
North America Segment | On-Site [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		474		1,392
North America Segment | Packaged Gas [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		495		1,496
North America Segment | Other Distribution Methods [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		40		114
Europe Segment
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales	[1]	425	407	1,297	1,146
Europe Segment | Merchant [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		146		446
Europe Segment | On-Site [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		78		235
Europe Segment | Packaged Gas [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		184		564
Europe Segment | Other Distribution Methods [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		17		52
South America Segment
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales	[1]	329	389	1,043	1,131
South America Segment | Merchant [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		125		399
South America Segment | On-Site [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		112		343
South America Segment | Packaged Gas [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		86		277
South America Segment | Other Distribution Methods [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		6		24
Asia Segment
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales	[1]	487	451	1,465	1,268
Asia Segment | Merchant [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		163		474
Asia Segment | On-Site [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		241		737
Asia Segment | Packaged Gas [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		55		166
Asia Segment | Other Distribution Methods [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		28		88
Surface Technologies Segment
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales	[1]	170	$ 157	509	$ 458
Surface Technologies Segment | Other Distribution Methods [Member]
Schedule of Revenue by Distribution Method, by Reportable Segment [Line Items]
Sales		$ 170		$ 509

[1] Sales reflect external sales only. Intersegment sales, primarily from North America to other segments, were not material

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Income Tax Disclosure (Details) - USD ($) $ in Millions		12 Months Ended
	Dec. 31, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		35.00%
Federal Statutory Tax Rate following enactment of Tax Act, Percent	21.00%
Net Provisional Income Tax Charge, enactment of Tax Act		$ 394
Estimated Charge on Deemed Repatriation of Accumulated Foreign Earnings, enactment of Tax Act		467
Estimated Foreign Withholding Taxes on Anticipated Repatriation, enactment of Tax Act		260
Estimated Federal Tax Benefit, Deferred Tax Revaluation, enactment of Tax Act		$ (333)

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Business Combination with Linde AG (Details) - EUR (€)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Business Combination with Linde AG [Abstract]
Common Stock, Value, Outstanding	€ 0.01	€ 0.01
Ordinary Shares, par value	0.00	0.00
Number of ordinary shares issued, per share			1.540
Annual sales, divested European businesses				€ 1,000,000,000
Cash consideration, sale of European businesses	€ 5,000,000,000
Net purchase price, Italian Joint Venture		€ 100,000,000