Note  1 -- Summary of Significant Accounting Policies Note  2 -- Accounting Changes Note  3 -- Special Charges Note  4 -- Segment Information Note  5 -- Leases Note  6 -- Supplementary Income Statement Information Note  7 -- Provision for Income Taxes Note  8 -- Earnings Per Share Note  9 -- Supplementary Balance Sheet Information Note 10 -- Property, Plant and Equipment - Net Note 11 -- Deferred Income Taxes Note 12 -- Goodwill Note 13 -- Other Intangible Assets Note 14 -- Debt Note 15 -- Financial Instruments Note 16 -- Shareholder's Equity Note 17 -- Preferred Stock Note 18 -- Incentive Plans and Stock Options Note 19 -- Retirement Programs Note 20 -- Commitments and Contingencies Note 21 -- Quarterly Data (Unaudited)
 

NOTE 4. SEGMENT INFORMATION
Praxair operates principally in the industrial gases business through four geographic operating segments: North America, Europe, South America and Asia. In addition, Praxair operates its worldwide Surface Technologies business through its wholly owned subsidiary, Praxair Surface Technologies, Inc. The All Other category is composed of unallocated and/or one-time corporate items.

Praxair evaluates the performance of its operating segments based primarily on operating profit, excluding intercompany royalties and special charges. Sales are determined based on the country in which the legal subsidiary is domiciled. Corporate and globally managed expenses, and research and development costs relating to Praxair’s global industrial gases business, are allocated to operating segments based on sales. Long-lived assets include property, plant and equipment, and patents, trademarks and goodwill.

The table below presents information about reported segments for the years ended December 31, 2003, 2002, and 2001:

(Millions of dollars)	2003	2002	2001
SALES
North America	$3,627	$3,351	$3,434
Europe	699	589	537
South America	708	632	674
Asia	389	324	255
Surface Technologies	400	394	410
Eliminations	(210)	(162)	(152)
	$5,613	$5,128	$5,158
OPERATING PROFIT (a)
North America	$   548	$   557	$   545
Europe	170	139	119
South America	114	134	129
Asia	64	51	38
Surface Technologies	26	35	39
All Other	—	7	—
	$   922	$   923	$   870
TOTAL ASSETS (b)
North America	$4,638	$4,366	$4,382
Europe	1,145	852	737
South America	1,275	1,016	1,464
Asia	707	653	617
Surface Technologies	540	514	515
	$8,305	$ 7,401	$ 7,715
DEPRECIATION AND AMORTIZATION (c)
North America	$   313	$    296	$    306
Europe	59	49	46
South America	60	61	79
Asia	50	43	33
Surface Technologies	35	34	35
	$   517	$    483	$   499
CAPITAL EXPENDITURES AND ACQUISITIONS
North America (Note 5)	$   763	$   359	$   491
Europe	115	69	62
South America	88	98	142
Asia	56	59	82
Surface Technologies	34	26	31
	$1,056	$   611	$   808
SALES BY MAJOR COUNTRY
United States	$2,834	$2,709	$2,848
Brazil	557	487	484
All Other ­ foreign	2,222	1,932	1,826
	$ 5,613	$ 5,128	$5,158
LONG-LIVED ASSETS BY MAJOR COUNTRIES
United States	$3,260	$3,020	$2,924
Brazil	765	592	855
All Other ­ foreign	2,358	2,089	2,218
	$6,383	$ 5,701	$5,997
(a) Praxair recorded pre-tax charges totaling $70 million in the third quarter of 2001, which is not included in Praxair’s management reporting definition of operating profit (see Note 3). Segment operating profit in 2001 excluded $70 million of special charges as follows: North America, $26 million; Europe, $3 million; South America, $30 million; Surface Technologies, $4 million; and All Other $7 million.
(b) Includes equity investments as of December 31:
(Millions of dollars)	2003	2002	2001
North America	$  53	$  70	$  82
Europe	110	92	76
Surface Technologies	1	(2)	—
Asia	18	24	40
	$182	$184	$198
(c) Effective in 2002, Praxair adopted SFAS 142 which eliminated the amortization of goodwill prospectively. Goodwill amortization included in the year ended December 31, 2001 was $38 million as follows: North America, $20 million; Europe, $4 million; South America, $9 million; Asia, $3 million; and Surface Technologies, $2 million.