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All amounts presented are in accordance with U.S. generally accepted accounting principles (GAAP), except as noted. Captions such as income from continuing operations attributable to Air Products, net income attributable to Air Products and diluted earnings per share attributable to Air Products are simply referred to as "income from continuing operations," "net income," and "diluted earnings per share" throughout this Management's Discussion and Analysis, unless otherwise stated. The discussion of results that follows includes comparisons to non-GAAP financial measures. The presentation of non-GAAP measures is intended to enhance the usefulness of financial information by providing measures which, when viewed together with our financial results reported in accordance with GAAP, provide a more complete understanding of the factors and trends affecting our historical financial performance and projected future results. The reconciliation of reported GAAP results to non-GAAP measures is presented on pages 35-38. Descriptions of the excluded items appear on page 31. FIRST QUARTER 2017 VS. FIRST QUARTER 2016 FIRST QUARTER 2017 IN SUMMARY Sales of $1,882.5 increased 1%, or $16.2, as higher volumes and energy contractual pass-through to customers of 2% each were partially offset by an unfavorable currency impact of 3%. Operating income of $328.1 decreased 12%, or $44.4, and operating margin of 17.4% decreased 260 basis points (bp).


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