EX-99.1 2 lin_ex991.htm ADDITIONAL EXHIBITS lin_ex991.htm

EXHIBIT 99.1

 

 

Press release

 

Linde Reports Third-Quarter 2021 Results

 

Financial Highlights

 

➢

Sales $7.7 billion, up 12% versus prior-year quarter

 

➢

Operating profit $1.3 billion; adjusted operating profit $1.8 billion, up 19%

 

➢

Operating profit margin 16.8%; adjusted operating profit margin 23.6%, up 150 basis points

 

➢

EPS $1.88, up 42%; adjusted EPS $2.73, up 27%

 

➢

Strong operating cash flow $2.6 billion, up 36%

 

➢

Increased full-year 2021 adjusted EPS guidance to $10.52 - $10.62, representing 28% to 29% growth

 

Guildford, UK, October 28, 2021 – Linde plc (NYSE: LIN; FWB: LIN) today reported third-quarter 2021 income from continuing operations of $978 million and diluted earnings per share of $1.88, an increase of 42% versus prior year. Excluding Linde AG purchase accounting impacts and other charges, adjusted income from continuing operations was $1,421 million, up 25% versus prior year and flat sequentially. Adjusted earnings per share was $2.73, 27% above prior year and 1% higher sequentially.

 

Linde’s sales for the third quarter were $7,668 million, 12% above prior year and up 1% sequentially. Compared to prior year, underlying sales increased 11%, including 3% price attainment and 8% higher volumes. Volume growth was broad-based across all geographic segments and end markets. Sequentially, underlying sales increased 1% driven by higher price.

 

Third-quarter operating profit was $1,292 million. Adjusted operating profit of $1,810 million was up 19% versus prior year led by higher price, strong volumes and continued productivity initiatives across all segments. Adjusted operating margin of 23.6% expanded 150 basis points versus prior year and 220 basis points when excluding the effects of cost pass-through. Sequentially, operating margins were stable when excluding cost pass-through. Cost pass-through represents the contractual billing of energy cost variance, primarily to onsite customers, with minimal effect on profit.

 

Third-quarter operating cash flow of $2,556 million increased 36% versus prior year and 40% sequentially. After capital expenditures of $741 million, free cash flow was $1,815 million, up 65% versus prior year and 68% sequentially. During the quarter, the company returned $1,708 million to shareholders through dividends and stock repurchases, net of issuance.

 

In addition, the company ended the third quarter with a total backlog of approximately $13.4 billion which includes both sale of gas and sale of plant projects, all contractually secured with high-quality customers.

 

Commenting on the financial results and business outlook, Chief Executive Officer Steve Angel said, “Linde employees delivered another stellar quarter achieving record EPS, operating cash flow and return on capital. We maintained our industry leading performance and significantly expanded our project backlog. We also announced new GHG emission goals including a commitment to absolute emissions reduction, reaching climate neutrality by 2050.”

 

Angel continued, “The Linde team demonstrated, once again, they can deliver in any environment. We are well positioned for the future and I am confident our best days, indeed, lie ahead.”

 

 
Page 1/11

 

 

 

Press release

 

For full year 2021, the company has updated its adjusted diluted earnings per share guidance to be in the range of $10.52 to $10.62, up 43% to 45% versus 2019 and 28% to 29% versus prior year. This guidance assumes 3% currency tailwind versus 2020. Full-year capital expenditures are expected to be in the range of $3.0 billion to $3.2 billion to support maintenance and growth requirements including the contractual project backlog.

 

Third-Quarter 2021 Results by Segment

 

Americas sales of $3,091 million were 17% above prior year. Underlying sales increased 12% driven by 3% higher pricing and 9% higher volume, led by stronger demand across all end markets and project start-ups. Sequentially, price increased 1% and volumes were flat. Operating profit of $859 million was 27.8% of sales, 30 basis points below prior year or 70 basis points higher when excluding the effects of cost pass-through.

 

APAC (Asia Pacific) sales of $1,564 million were 5% above prior year. Underlying sales grew 11% driven by 1% price attainment and 10% volume growth, led by higher demand across all end markets and project start-ups. Sequentially, price increased 1% and volume grew 2%, led by growth across most end markets. Divestitures were driven by an accounting deconsolidation of a joint venture which reduced sales 11% versus prior year but had no impact on earnings per share. Operating profit of $382 million was 24.4% of sales, up 170 basis points versus prior year or 220 basis points when excluding the effects of cost pass-through.

 

EMEA (Europe, Middle East & Africa) sales of $1,911 million were up 18% versus prior year. Underlying sales grew 9% from 4% higher pricing and 5% higher volumes across all end markets. Sequentially, underlying sales were flat with pricing up 1%, offset by lower volumes. Operating profit of $476 million was 24.9% of sales, up 210 basis points versus prior year or 370 basis points when excluding the effects of cost pass-through.

 

Linde Engineering sales were $601 million, 11% below prior year largely due to the timing of plant completion. Operating profit was $106 million or 17.6% of sales, up 200 basis points versus prior year. Order intake for the quarter was $6,612 million and third-party sale of plant backlog was $9.9 billion.

 

Earnings Call

A teleconference on Linde’s third-quarter 2021 results is being held today at 10:00 am EDT.

 

Live conference call

US Toll-Free Dial-In Number: 800 377 9510

Germany Toll-Free Dial-In Number: 0800 724 5685

UK Toll-Free Dial-In Number: 0800 031 4838

Access code: 6836588

Live webcast (listen-only)

 

https://investors.linde.com/events-presentations

Short URL: https://t1p.de/i2ho

 

Materials to be used in the teleconference are also available on the website.

 

 
Page 2/11

 

 

 

Press release

 

About Linde

Linde is a leading global industrial gases and engineering company with 2020 sales of $27 billion (€24 billion). We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain and protect our planet.

 

The company serves a variety of end markets including chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde’s industrial gases are used in countless applications, from life-saving oxygen for hospitals to high-purity & specialty gases for electronics manufacturing, hydrogen for clean fuels and much more. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.

 

For more information about the company and its products and services, please visit www.linde.com

 

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

 

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

 

*Note: We are providing adjusted earnings per share (“EPS”) guidance for 2021. This is a non-GAAP financial measure that represents diluted earnings per share from continuing operations (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges, the impact of potential divestitures or other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort.

 

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions. They are based on management’s reasonable expectations and assumptions as of the date the statements are made but involve risks and uncertainties. These risks and uncertainties include, without limitation: the performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances, including trade conflicts and tariffs; 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, pandemics such as COVID-19 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; 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 accounting principles generally accepted in the United States of America, International Financial Reporting Standards or adjusted projections, estimates or other forward-looking statements.

  

Linde plc 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 Linde plc’s Form 10-K for the fiscal year ended December 31, 2020 filed with the SEC on March 1, 2021 which should be reviewed carefully. Please consider Linde plc’s forward-looking statements in light of those risks.

 

 
Page 3/11

 

 

LINDE PLC AND SUBSIDIARIES

SUMMARY NON-GAAP RECONCILIATIONS

(UNAUDITED)

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

(Millions of dollars, except per share amounts)

 

 

 

Sales

 

 

Operating Profit

 

 

Income from

Continuing Operations

 

 

Diluted EPS from Continuing Operations

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Quarter Ended September 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported GAAP Amounts

 

 $ 7,668

 

 

 $ 6,855

 

 

 $ 1,292

 

 

 $ 969

 

 

 $ 978

 

 

 $ 699

 

 

 $ 1.88

 

 

 $ 1.32

 

Cost reduction program and other charges (a)

 

 

 -

 

 

 

 -

 

 

 

 26

 

 

 

 48

 

 

 

 58

 

 

 

 36

 

 

 

 0.11

 

 

 

 0.07

 

Pension settlement charges (b)

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 3

 

 

 

 5

 

 

 

 0.01

 

 

 

 0.01

 

Purchase accounting impacts - Linde AG (c)

 

 

 -

 

 

 

 -

 

 

 

 492

 

 

 

 498

 

 

 

 382

 

 

 

 400

 

 

 

 0.73

 

 

 

 0.75

 

Total adjustments

 

 

 -

 

 

 

 -

 

 

 

 518

 

 

 

 546

 

 

 

 443

 

 

 

 441

 

 

 

 0.85

 

 

 

 0.83

 

Adjusted amounts

 

 $ 7,668

 

 

 $ 6,855

 

 

 $ 1,810

 

 

 $ 1,515

 

 

 $ 1,421

 

 

 $ 1,140

 

 

 $ 2.73

 

 

 $ 2.15

 

 

 

 

Sales

 

 

Operating Profit

 

 

Income from

Continuing Operations

 

 

Diluted EPS from Continuing Operations

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Year to Date September 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported GAAP Amounts

 

 $ 22,495

 

 

 $ 19,971

 

 

 $ 3,647

 

 

 $ 2,293

 

 

 $ 2,797

 

 

 $ 1,728

 

 

 $ 5.34

 

 

 $ 3.25

 

Cost reduction program and other charges (a)

 

 

 -

 

 

 

 -

 

 

 

 222

 

 

 

 428

 

 

 

 228

 

 

 

 318

 

 

 

 0.44

 

 

 

 0.60

 

Pension settlement charges (b)

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 3

 

 

 

 5

 

 

 

 0.01

 

 

 

 0.01

 

Purchase accounting impacts - Linde AG (c)

 

 

 -

 

 

 

 -

 

 

 

 1,466

 

 

 

 1,463

 

 

 

 1,120

 

 

 

 1,103

 

 

 

 2.13

 

 

 

 2.07

 

Total adjustments

 

 

 -

 

 

 

 -

 

 

 

 1,688

 

 

 

 1,891

 

 

 

 1,351

 

 

 

 1,426

 

 

 

 2.58

 

 

 

 2.68

 

Adjusted amounts

 

 $ 22,495

 

 

 $ 19,971

 

 

 $ 5,335

 

 

 $ 4,184

 

 

 $ 4,148

 

 

 $ 3,154

 

 

 $ 7.92

 

 

 $ 5.93

 

 

(a) To adjust for cost reduction program and other charges; 2021 includes severance of $20 million and $228 million for the quarter and year-to-date periods, other cost reduction charges of $9 million and $49 million for the quarter and year-to-date periods and an other net benefit of $3 million for the quarter and $55 million for the year-to-date period.

(b) To adjust for pension settlement charges.

(c) To adjust for purchase accounting impacts related to the merger.

 

 
Page 4/11

 

 

LINDE PLC AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(Millions of dollars, except per share data)

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

Year To Date

 

 

 

September 30,

 

 

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SALES

 

 $ 7,668

 

 

 $ 6,855

 

 

 $ 22,495

 

 

 $ 19,971

 

Cost of sales

 

 

 4,368

 

 

 

 3,835

 

 

 

 12,616

 

 

 

 11,297

 

Selling, general and administrative

 

 

 793

 

 

 

 770

 

 

 

 2,402

 

 

 

 2,391

 

Depreciation and amortization

 

 

 1,163

 

 

 

 1,168

 

 

 

 3,500

 

 

 

 3,434

 

Research and development

 

 

 36

 

 

 

 36

 

 

 

 105

 

 

 

 114

 

Cost reduction programs and other charges

 

 

 26

 

 

 

 48

 

 

 

 222

 

 

 

 428

 

Other income (expense) - net

 

 

 10

 

 

 

 (29 )

 

 

 (3 )

 

 

 (14 )

OPERATING PROFIT

 

 

 1,292

 

 

 

 969

 

 

 

 3,647

 

 

 

 2,293

 

Interest expense - net

 

 

 8

 

 

 

 38

 

 

 

 46

 

 

 

 80

 

Net pension and OPEB cost (benefit), excluding service cost

 

 

 (45 )

 

 

 (41 )

 

 

 (143 )

 

 

 (131 )

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY INVESTMENTS

 

 

 1,329

 

 

 

 972

 

 

 

 3,744

 

 

 

 2,344

 

Income taxes

 

 

 321

 

 

 

 265

 

 

 

 923

 

 

 

 594

 

INCOME FROM CONTINUING OPERATIONS BEFORE EQUITY INVESTMENTS

 

 

 1,008

 

 

 

 707

 

 

 

 2,821

 

 

 

 1,750

 

Income from equity investments

 

 

 1

 

 

 

 23

 

 

 

 81

 

 

 

 69

 

INCOME FROM CONTINUING OPERATIONS (INCLUDING NONCONTROLLING INTERESTS)

 

 

 1,009

 

 

 

 730

 

 

 

 2,902

 

 

 

 1,819

 

Add: income from discontinued operations, net of tax

 

 

 1

 

 

 

 1

 

 

 

 3

 

 

 

 3

 

INCOME (INCLUDING NONCONTROLLING INTERESTS)

 

 

 1,010

 

 

 

 731

 

 

 

 2,905

 

 

 

 1,822

 

Less: noncontrolling interests from continuing operations

 

 

 (31 )

 

 

 (31 )

 

 

 (105 )

 

 

 (91 )

Less: noncontrolling interests from discontinued operations

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

NET INCOME - LINDE PLC

 

 $ 979

 

 

 $ 700

 

 

 $ 2,800

 

 

 $ 1,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME - LINDE PLC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

 $ 978

 

 

 $ 699

 

 

 $ 2,797

 

 

 $ 1,728

 

Income from discontinued operations

 

 $ 1

 

 

 $ 1

 

 

 $ 3

 

 

 $ 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA - LINDE PLC SHAREHOLDERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share from continuing operations

 

 $ 1.90

 

 

 $ 1.33

 

 

 $ 5.39

 

 

 $ 3.28

 

Basic earnings per share from discontinued operations

 

 

 -

 

 

 

 -

 

 

 

 0.01

 

 

 

 0.01

 

Basic earnings per share

 

 $ 1.90

 

 

 $ 1.33

 

 

 $ 5.40

 

 

 $ 3.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share from continuing operations

 

 $ 1.88

 

 

 $ 1.32

 

 

 $ 5.34

 

 

 $ 3.25

 

Diluted earnings per share from discontinued operations

 

 

 -

 

 

 

 -

 

 

 

 0.01

 

 

 

 0.01

 

Diluted earnings per share

 

 $ 1.88

 

 

 $ 1.32

 

 

 $ 5.35

 

 

 $ 3.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends

 

 $ 1.06

 

 

 $ 0.963

 

 

 $ 3.18

 

 

 $ 2.889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED AVERAGE SHARES OUTSTANDING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares outstanding (000's)

 

 

 515,169

 

 

 

 525,694

 

 

 

 518,802

 

 

 

 527,501

 

Diluted shares outstanding (000's)

 

 

 520,079

 

 

 

 530,415

 

 

 

 523,662

 

 

 

 531,724

 

 

Note: See page 10 for a reconciliation to adjusted amounts which are Non-GAAP.

 

 
Page 5/11

 

 

LINDE PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(Millions of dollars)

(UNAUDITED)

 

 

 

 

 

 

 

 

 

September 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

 $ 4,700

 

 

 $ 3,754

 

Accounts receivable - net

 

 

 4,367

 

 

 

 4,167

 

Contract assets

 

 

 166

 

 

 

 162

 

Inventories

 

 

 1,694

 

 

 

 1,729

 

Prepaid and other current assets

 

 

 1,080

 

 

 

 1,112

 

TOTAL CURRENT ASSETS

 

 

 12,007

 

 

 

 10,924

 

Property, plant and equipment - net

 

 

 26,180

 

 

 

 28,711

 

Goodwill

 

 

 27,178

 

 

 

 28,201

 

Other intangibles - net

 

 

 14,048

 

 

 

 16,184

 

Other long-term assets

 

 

 4,778

 

 

 

 4,209

 

TOTAL ASSETS

 

 $ 84,191

 

 

 $ 88,229

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Accounts payable

 

 $ 3,069

 

 

 $ 3,095

 

Short-term debt

 

 

 2,895

 

 

 

 3,251

 

Current portion of long-term debt

 

 

 2,293

 

 

 

 751

 

Contract liabilities

 

 

 2,213

 

 

 

 1,769

 

Other current liabilities

 

 

 4,288

 

 

 

 4,874

 

TOTAL CURRENT LIABILITIES

 

 

 14,758

 

 

 

 13,740

 

Long-term debt

 

 

 11,539

 

 

 

 12,152

 

Other long-term liabilities

 

 

 12,157

 

 

 

 12,755

 

TOTAL LIABILITIES

 

 

 38,454

 

 

 

 38,647

 

 

 

 

 

 

 

 

 

 

REDEEMABLE NONCONTROLLING INTERESTS

 

 

 13

 

 

 

 13

 

 

 

 

 

 

 

 

 

 

LINDE PLC SHAREHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

Common stock

 

 

 1

 

 

 

 1

 

Additional paid-in capital

 

 

 40,220

 

 

 

 40,202

 

Retained earnings

 

 

 18,240

 

 

 

 17,178

 

Accumulated other comprehensive income (loss)

 

 

 (5,618 )

 

 

 (4,690 )

Less: Treasury stock, at cost

 

 

 (8,520 )

 

 

 (5,374 )

Total Linde plc shareholders' equity

 

 

 44,323

 

 

 

 47,317

 

Noncontrolling interests

 

 

 1,401

 

 

 

 2,252

 

TOTAL EQUITY

 

 

 45,724

 

 

 

 49,569

 

TOTAL LIABILITIES AND EQUITY

 

 $ 84,191

 

 

 $ 88,229

 

 

 
Page 6/11

 

 

LINDE PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Millions of dollars)

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

Year to Date

 

 

 

September 30,

 

 

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

OPERATIONS

 

 

 

 

 

 

 

 

 

 

 

 

Net income - Linde plc

 

 $ 979

 

 

 $ 700

 

 

 $ 2,800

 

 

 $ 1,731

 

Less: income from discontinued operations, net of tax and noncontrolling interests

 

 

 (1 )

 

 

 (1 )

 

 

 (3 )

 

 

 (3 )

Add: noncontrolling interests

 

 

 31

 

 

 

 31

 

 

 

 105

 

 

 

 91

 

Net income (including noncontrolling interests)

 

 

 1,009

 

 

 

 730

 

 

 

 2,902

 

 

 

 1,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost reduction programs and other charges, net of payments (a)

 

 

 (12 )

 

 

 1

 

 

 

 83

 

 

 

 240

 

Depreciation and amortization

 

 

 1,163

 

 

 

 1,168

 

 

 

 3,500

 

 

 

 3,434

 

Accounts receivable

 

 

 (151 )

 

 

 42

 

 

 

 (539 )

 

 

 (76 )

Contract assets and liabilities, net

 

 

 479

 

 

 

 18

 

 

 

 530

 

 

 

 89

 

Inventory

 

 

 (35 )

 

 

 (19 )

 

 

 (77 )

 

 

 (101 )

Payables and accruals

 

 

 92

 

 

 

 15

 

 

 

 131

 

 

 

 (12 )

Pension contributions

 

 

 (4 )

 

 

 (35 )

 

 

 (32 )

 

 

 (76 )

Deferred income taxes and other

 

 

 15

 

 

 

 (36 )

 

 

 (6 )

 

 

 (322 )

Net cash provided by operating activities

 

 

 2,556

 

 

 

 1,884

 

 

 

 6,492

 

 

 

 4,995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INVESTING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 (741 )

 

 

 (787 )

 

 

 (2,247 )

 

 

 (2,373 )

Acquisitions, net of cash acquired

 

 

 -

 

 

 

 -

 

 

 

 (31 )

 

 

 (41 )

Divestitures and asset sales

 

 

 70

 

 

 

 55

 

 

 

 147

 

 

 

 435

 

Net cash provided by (used for) investing activities

 

 

 (671 )

 

 

 (732 )

 

 

 (2,131 )

 

 

 (1,979 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FINANCING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt increase (decrease) - net

 

 

 1,494

 

 

 

 (188 )

 

 

 1,808

 

 

 

 3,335

 

Issuances of ordinary shares

 

 

 7

 

 

 

 16

 

 

 

 39

 

 

 

 41

 

Purchases of ordinary shares

 

 

 (1,169 )

 

 

 (202 )

 

 

 (3,251 )

 

 

 (2,030 )

Cash dividends - Linde plc shareholders

 

 

 (546 )

 

 

 (506 )

 

 

 (1,648 )

 

 

 (1,523 )

Noncontrolling interest transactions and other

 

 

 (42 )

 

 

 (53 )

 

 

 (319 )

 

 

 (201 )

Net cash provided by (used for) financing activities

 

 

 (256 )

 

 

 (933 )

 

 

 (3,371 )

 

 

 (378 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

 (66 )

 

 

 39

 

 

 

 (44 )

 

 

 (139 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in cash and cash equivalents

 

 

 1,563

 

 

 

 258

 

 

 

 946

 

 

 

 2,499

 

Cash and cash equivalents, beginning-of-period

 

 

 3,137

 

 

 

 4,941

 

 

 

 3,754

 

 

 

 2,700

 

Cash and cash equivalents, end-of-period

 

 $ 4,700

 

 

 $ 5,199

 

 

 $ 4,700

 

 

 $ 5,199

 

 

(a) Cost reduction programs and other charges were $26 million and $48 million for the quarters ended September 30, 2021 and 2020, respectively, and $222 million and $428 million for the nine months ended September 30, 2021 and 2020, respectively. Related cash outflows were $38 million and $47 million for the quarters ended September 30, 2021 and 2020, respectively, and $139 million and $188 million for the nine months ended September 30, 2021 and 2020, respectively.

 

 
Page 7/11

 

 

LINDE PLC AND SUBSIDIARIES

SEGMENT INFORMATION

(Millions of dollars)

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended September 30,

 

 

Year to Date September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

SALES

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

 $ 3,091

 

 

 $ 2,641

 

 

 $ 8,951

 

 

 $ 7,735

 

EMEA

 

 

 1,911

 

 

 

 1,622

 

 

 

 5,585

 

 

 

 4,703

 

APAC

 

 

 1,564

 

 

 

 1,484

 

 

 

 4,544

 

 

 

 4,115

 

Engineering

 

 

 601

 

 

 

 678

 

 

 

 1,921

 

 

 

 2,096

 

Other

 

 

 501

 

 

 

 430

 

 

 

 1,494

 

 

 

 1,322

 

Total segment sales

 

 $ 7,668

 

 

 $ 6,855

 

 

 $ 22,495

 

 

 $ 19,971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING PROFIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

 $ 859

 

 

 $ 742

 

 

 $ 2,525

 

 

 $ 2,025

 

EMEA

 

 

 476

 

 

 

 370

 

 

 

 1,414

 

 

 

 1,028

 

APAC

 

 

 382

 

 

 

 337

 

 

 

 1,122

 

 

 

 912

 

Engineering

 

 

 106

 

 

 

 106

 

 

 

 323

 

 

 

 335

 

Other

 

 

 (13 )

 

 

 (40 )

 

 

 (49 )

 

 

 (116 )

Segment operating profit

 

 $ 1,810

 

 

 $ 1,515

 

 

 $ 5,335

 

 

 $ 4,184

 

Cost reduction programs and other charges

 

 

 (26 )

 

 

 (48 )

 

 

 (222 )

 

 

 (428 )

Purchase accounting impacts - Linde AG

 

 

 (492 )

 

 

 (498 )

 

 

 (1,466 )

 

 

 (1,463 )

Total operating profit

 

 $ 1,292

 

 

 $ 969

 

 

 $ 3,647

 

 

 $ 2,293

 

 

 
Page 8/11

 

 

LINDE PLC AND SUBSIDIARIES

APPENDIX

NON-GAAP MEASURES AND RECONCILIATIONS

(Millions of dollars, except per share data)

(UNAUDITED)

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

 

 

 

2021

 

 

2020

 

 

 

Year to Date September 30,

 

 

Q3

 

 

Q2

 

 

Q1

 

 

Year to Date September 30,

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

Adjusted Operating Profit and Operating Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported operating profit

 

 $ 3,647

 

 

 $ 1,292

 

 

 $ 1,142

 

 

 $ 1,213

 

 

 $ 2,293

 

 

 $ 1,029

 

 

 $ 969

 

 

 $ 591

 

 

 $ 733

 

Add: Cost reduction programs and other charges

 

 

 222

 

 

 

 26

 

 

 

 204

 

 

 

 (8 )

 

 

 428

 

 

 

 78

 

 

 

 48

 

 

 

 249

 

 

 

 131

 

Add: Purchase accounting impacts - Linde AG (c)

 

 

 1,466

 

 

 

 492

 

 

 

 491

 

 

 

 483

 

 

 

 1,463

 

 

 

 506

 

 

 

 498

 

 

 

 477

 

 

 

 488

 

Total adjustments

 

 

 1,688

 

 

 

 518

 

 

 

 695

 

 

 

 475

 

 

 

 1,891

 

 

 

 584

 

 

 

 546

 

 

 

 726

 

 

 

 619

 

Adjusted operating profit

 

 $ 5,335

 

 

 $ 1,810

 

 

 $ 1,837

 

 

 $ 1,688

 

 

 $ 4,184

 

 

 $ 1,613

 

 

 $ 1,515

 

 

 $ 1,317

 

 

 $ 1,352

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported percentage change

 

 

 59 %

 

 

 33 %

 

 

 93 %

 

 

 65 %

 

 

 1 %

 

 

 

 

 

 

 (3 )%

 

 

 (12 )%

 

 

 20 %

Adjusted percentage change

 

 

 28 %

 

 

 19 %

 

 

 39 %

 

 

 25 %

 

 

 7 %

 

 

 

 

 

 

 9 %

 

- %

 

 

 

 11 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported sales

 

 $ 22,495

 

 

 $ 7,668

 

 

 $ 7,584

 

 

 $ 7,243

 

 

 $ 19,971

 

 

 $ 7,272

 

 

 $ 6,855

 

 

 $ 6,377

 

 

 $ 6,739

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported operating margin

 

 

 16.2 %

 

 

 16.8 %

 

 

 15.1 %

 

 

 16.7 %

 

 

 11.5 %

 

 

 14.2 %

 

 

 14.1 %

 

 

 9.3 %

 

 

 10.9 %

Adjusted operating margin

 

 

 23.7 %

 

 

 23.6 %

 

 

 24.2 %

 

 

 23.3 %

 

 

 21.0 %

 

 

 22.2 %

 

 

 22.1 %

 

 

 20.7 %

 

 

 20.1 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported depreciation and amortization

 

 $ 3,500

 

 

 $ 1,163

 

 

 $ 1,171

 

 

 $ 1,166

 

 

 $ 3,434

 

 

 $ 1,192

 

 

 $ 1,168

 

 

 $ 1,124

 

 

 $ 1,142

 

Less: Purchase accounting impacts - Linde AG (c)

 

 

 (1,426 )

 

 

 (469 )

 

 

 (479 )

 

 

 (478 )

 

 

 (1,431 )

 

 

 (489 )

 

 

 (487 )

 

 

 (468 )

 

 

 (476 )

Adjusted depreciation and amortization

 

 $ 2,074

 

 

 $ 694

 

 

 $ 692

 

 

 $ 688

 

 

 $ 2,003

 

 

 $ 703

 

 

 $ 681

 

 

 $ 656

 

 

 $ 666

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Other Income (Expense) - net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Other Income (Expense) - net

 

 $ (3 )

 

 $ 10

 

 

 $ (17 )

 

 $ 4

 

 

 $ (14 )

 

 $ (47 )

 

 $ (29 )

 

 $ -

 

 

 $ 15

 

Add: Purchase accounting impacts - Linde AG (c)

 

 

 (40 )

 

 

 (23 )

 

 

 (12 )

 

 

 (5 )

 

 

 (32 )

 

 

 (17 )

 

 

 (11 )

 

 

 (9 )

 

 

 (12 )

Adjusted Other Income (Expense) - net

 

 $ 37

 

 

 $ 33

 

 

 $ (5 )

 

 $ 9

 

 

 $ 18

 

 

 $ (30 )

 

 $ (18 )

 

 $ 9

 

 

 $ 27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported net pension and OPEB cost (benefit), excluding service cost

 

 $ (143 )

 

 $ (45 )

 

 $ (49 )

 

 $ (49 )

 

 $ (131 )

 

 $ (46 )

 

 $ (41 )

 

 $ (45 )

 

 $ (45 )

Add: Pension settlement charges

 

 

 (4 )

 

 

 (4 )

 

 

 -

 

 

 

 -

 

 

 

 (6 )

 

 

 -

 

 

 

 (6 )

 

 

 -

 

 

 

 -

 

Adjusted Net Pension and OPEB cost (benefit), excluding service costs

 

 $ (147 )

 

 $ (49 )

 

 $ (49 )

 

 $ (49 )

 

 $ (137 )

 

 $ (46 )

 

 $ (47 )

 

 $ (45 )

 

 $ (45 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Interest Expense - Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported interest expense - net

 

 $ 46

 

 

 $ 8

 

 

 $ 18

 

 

 $ 20

 

 

 $ 80

 

 

 $ 35

 

 

 $ 38

 

 

 $ 18

 

 

 $ 24

 

Add: Purchase accounting impacts - Linde AG (c)

 

 

 43

 

 

 

 10

 

 

 

 15

 

 

 

 18

 

 

 $ 67

 

 

 

 18

 

 

 

 23

 

 

 

 22

 

 

 

 22

 

Less: Bond Redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (16 )

 

 

 -

 

 

 

 -

 

 

 

 -

 

Total adjustments

 

 

 43

 

 

 

 10

 

 

 

 15

 

 

 

 18

 

 

 

 67

 

 

 

 2

 

 

 

 23

 

 

 

 22

 

 

 

 22

 

Adjusted interest expense - net

 

 $ 89

 

 

 $ 18

 

 

 $ 33

 

 

 $ 38

 

 

 $ 147

 

 

 $ 37

 

 

 $ 61

 

 

 $ 40

 

 

 $ 46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Income Taxes (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported income taxes

 

 $ 923

 

 

 $ 321

 

 

 $ 334

 

 

 $ 268

 

 

 $ 594

 

 

 $ 253

 

 

 $ 265

 

 

 $ 164

 

 

 $ 165

 

Add: Purchase accounting impacts - Linde AG (c)

 

 

 349

 

 

 

 115

 

 

 

 116

 

 

 

 118

 

 

 

 292

 

 

 

 107

 

 

 

 75

 

 

 

 95

 

 

 

 122

 

Add: Pension settlement charges

 

 

 1

 

 

 

 1

 

 

 

 -

 

 

 

 -

 

 

 

 1

 

 

 

 -

 

 

 

 1

 

 

 

 -

 

 

 

 -

 

Add: Cost reduction programs and other charges

 

 

 29

 

 

 

 3

 

 

 

 6

 

 

 

 20

 

 

 

 110

 

 

 

 20

 

 

 

 12

 

 

 

 62

 

 

 

 36

 

Less: Bond Redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 4

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Total adjustments

 

 

 379

 

 

 

 119

 

 

 

 122

 

 

 

 138

 

 

 

 403

 

 

 

 131

 

 

 

 88

 

 

 

 157

 

 

 

 158

 

Adjusted income taxes

 

 $ 1,302

 

 

 $ 440

 

 

 $ 456

 

 

 $ 406

 

 

 $ 997

 

 

 $ 384

 

 

 $ 353

 

 

 $ 321

 

 

 $ 323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Effective Tax Rate (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported income before income taxes and equity investments

 

 $ 3,744

 

 

 $ 1,329

 

 

 $ 1,173

 

 

 $ 1,242

 

 

 $ 2,344

 

 

 $ 1,040

 

 

 $ 972

 

 

 $ 618

 

 

 $ 754

 

Add: Pension settlement charge

 

 

 4

 

 

 

 4

 

 

 

 -

 

 

 

 -

 

 

 

 6

 

 

 

 -

 

 

 

 6

 

 

 

 -

 

 

 

 -

 

Add: Purchase accounting impacts - Linde AG (c)

 

 

 1,423

 

 

 

 482

 

 

 

 476

 

 

 

 465

 

 

 

 1,396

 

 

 

 488

 

 

 

 475

 

 

 

 455

 

 

 

 466

 

Add: Cost reduction programs and other charges

 

 

 222

 

 

 

 26

 

 

 

 204

 

 

 

 (8 )

 

 

 428

 

 

 

 78

 

 

 

 48

 

 

 

 249

 

 

 

 131

 

Less: Bond Redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 16

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Total adjustments

 

 

 1,649

 

 

 

 512

 

 

 

 680

 

 

 

 457

 

 

 

 1,830

 

 

 

 582

 

 

 

 529

 

 

 

 704

 

 

 

 597

 

Adjusted income before income taxes and equity investments

 

 $ 5,393

 

 

 $ 1,841

 

 

 $ 1,853

 

 

 $ 1,699

 

 

 $ 4,174

 

 

 $ 1,622

 

 

 $ 1,501

 

 

 $ 1,322

 

 

 $ 1,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Income taxes

 

 $ 923

 

 

 $ 321

 

 

 $ 334

 

 

 $ 268

 

 

 $ 594

 

 

 $ 253

 

 

 $ 265

 

 

 $ 164

 

 

 $ 165

 

Reported effective tax rate

 

 

 24.7 %

 

 

 24.2 %

 

 

 28.5 %

 

 

 21.6 %

 

 

 25.3 %

 

 

 24.3 %

 

 

 27.3 %

 

 

 26.5 %

 

 

 21.9 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income taxes

 

 $ 1,302

 

 

 $ 440

 

 

 $ 456

 

 

 $ 406

 

 

 $ 997

 

 

 $ 384

 

 

 $ 353

 

 

 $ 321

 

 

 $ 323

 

Adjusted effective tax rate

 

 

 24.1 %

 

 

 23.9 %

 

 

 24.6 %

 

 

 23.9 %

 

 

 23.9 %

 

 

 23.7 %

 

 

 23.5 %

 

 

 24.3 %

 

 

 23.9 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Equity Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported income from equity investments

 

 $ 81

 

 

 $ 1

 

 

 $ 37

 

 

 $ 43

 

 

 $ 69

 

 

 $ 16

 

 

 $ 23

 

 

 $ 29

 

 

 $ 17

 

Add: Cost reduction programs and other charges (e)

 

 

 35

 

 

 

 35

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Add: Purchase accounting impacts - Linde AG (c)

 

 

 57

 

 

 

 19

 

 

 

 19

 

 

 

 19

 

 

 

 42

 

 

 

 15

 

 

 

 14

 

 

 

 14

 

 

 

 14

 

Adjusted income from equity investments

 

 $ 173

 

 

 $ 55

 

 

 $ 56

 

 

 $ 62

 

 

 $ 111

 

 

 $ 31

 

 

 $ 37

 

 

 $ 43

 

 

 $ 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Noncontrolling Interests from Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported noncontrolling interests from continuing operations

 

 $ (105 )

 

 $ (31 )

 

 $ (36 )

 

 $ (38 )

 

 $ (91 )

 

 $ (34 )

 

 $ (31 )

 

 $ (25 )

 

 $ (35 )

Add: Cost reduction programs and other charges

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (4 )

 

 

 -

 

 

 

 -

 

 

 

 -

 

Add: Purchase accounting impacts - Linde AG (c)

 

 

 (11 )

 

 

 (4 )

 

 

 (2 )

 

 

 (5 )

 

 

 (43 )

 

 

 (14 )

 

 

 (14 )

 

 

 (14 )

 

 

 (15 )

Total adjustments

 

 

 (11 )

 

 

 (4 )

 

 

 (2 )

 

 

 (5 )

 

 

 (43 )

 

 

 (18 )

 

 

 (14 )

 

 

 (14 )

 

 

 (15 )

Adjusted noncontrolling interests from continuing operations

 

 $ (116 )

 

 $ (35 )

 

 $ (38 )

 

 $ (43 )

 

 $ (134 )

 

 $ (52 )

 

 $ (45 )

 

 $ (39 )

 

 $ (50 )

 

 
Page 9/11

 

 

LINDE PLC AND SUBSIDIARIES

APPENDIX

NON-GAAP MEASURES AND RECONCILIATIONS

(Millions of dollars, except per share data)

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

 

 

Year to Date September 30,

 

 

Q3

 

 

Q2

 

 

Q1

 

 

Year to Date September 30,

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

Adjusted Income from Continuing Operations (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported income from continuing operations

 

 $ 2,797

 

 

 $ 978

 

 

 $ 840

 

 

 $ 979

 

 

 $ 1,728

 

 

 $ 769

 

 

 $ 699

 

 

 $ 458

 

 

 $ 571

 

Add: Pension settlement charge

 

 

 3

 

 

 

 3

 

 

 

 -

 

 

 

 -

 

 

 

 5

 

 

 

 -

 

 

 

 5

 

 

 

 -

 

 

 

 -

 

Add: Cost reduction programs and other charges

 

 

 228

 

 

 

 58

 

 

 

 198

 

 

 

 (28 )

 

 

 318

 

 

 

 54

 

 

 

 36

 

 

 

 187

 

 

 

 95

 

Less: Bond redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 12

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Add: Purchase accounting impacts - Linde AG (c)

 

 

 1,120

 

 

 

 382

 

 

 

 377

 

 

 

 361

 

 

 

 1,103

 

 

 

 382

 

 

 

 400

 

 

 

 360

 

 

 

 343

 

Total adjustments

 

 

 1,351

 

 

 

 443

 

 

 

 575

 

 

 

 333

 

 

 

 1,426

 

 

 

 448

 

 

 

 441

 

 

 

 547

 

 

 

 438

 

Adjusted income from continuing operations

 

 $ 4,148

 

 

 $ 1,421

 

 

 $ 1,415

 

 

 $ 1,312

 

 

 $ 3,154

 

 

 $ 1,217

 

 

 $ 1,140

 

 

 $ 1,005

 

 

 $ 1,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Diluted EPS from Continuing Operations (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported diluted EPS from continuing operations

 

 $ 5.34

 

 

 $ 1.88

 

 

 $ 1.60

 

 

 $ 1.86

 

 

 $ 3.25

 

 

 $ 1.45

 

 

 $ 1.32

 

 

 $ 0.87

 

 

 $ 1.07

 

Add: Pension settlement charge

 

 

 0.01

 

 

 

 0.01

 

 

 

 -

 

 

 

 -

 

 

 

 0.01

 

 

 

 -

 

 

 

 0.01

 

 

 

 -

 

 

 

 -

 

Add: Cost reduction programs and other charges

 

 

 0.44

 

 

 

 0.11

 

 

 

 0.38

 

 

 

 (0.05 )

 

 

 0.60

 

 

 

 0.10

 

 

 

 0.07

 

 

 

 0.35

 

 

 

 0.18

 

Less: Bond Redemption

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 0.02

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Add: Purchase accounting impacts - Linde AG

 

 

 2.13

 

 

 

 0.73

 

 

 

 0.72

 

 

 

 0.68

 

 

 

 2.07

 

 

 

 0.73

 

 

 

 0.75

 

 

 

 0.68

 

 

 

 0.64

 

Total adjustments

 

 

 2.58

 

 

 

 0.85

 

 

 

 1.10

 

 

 

 0.63

 

 

 

 2.68

 

 

 

 0.85

 

 

 

 0.83

 

 

 

 1.03

 

 

 

 0.82

 

Adjusted diluted EPS from continuing operations

 

 $ 7.92

 

 

 $ 2.73

 

 

 $ 2.70

 

 

 $ 2.49

 

 

 $ 5.93

 

 

 $ 2.30

 

 

 $ 2.15

 

 

 $ 1.90

 

 

 $ 1.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported percentage change

 

 

 64 %

 

 

 42 %

 

 

 84 %

 

 

 74 %

 

 

 6 %

 

 

 54 %

 

 

 (1 )%

 

 

 (7 )%

 

 

 35 %

Adjusted percentage change

 

 

 34 %

 

 

 27 %

 

 

 42 %

 

 

 32 %

 

 

 9 %

 

 

 22 %

 

 

 11 %

 

 

 4 %

 

 

 12 %

 

Adjusted Diluted EPS from Continuing Operations Guidance (d)

 

 

 

 

Fourth Quarter 2021

 

 

Full Year 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Low End

 

 

 

 

 

High End

 

 

Low End

 

 

High End

 

 

 

 

 

 

 

 

 

 

2021 Adjusted Guidance

 

 

 

 

 $ 2.60

 

 

 

 

 

 $ 2.70

 

 

 $ 10.52

 

 

 $ 10.62

 

 

 

 

 

 

 

 

 

 

Adjusted percentage changes versus 2020 adjusted diluted EPS

 

 

 

 

 

 13 %

 

 

 

 

 

 17 %

 

 

 28 %

 

 

 29 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA and % of Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

 $ 2,797

 

 

 $ 978

 

 

 $ 840

 

 

 $ 979

 

 

 $ 1,728

 

 

 $ 769

 

 

 $ 699

 

 

 $ 458

 

 

 $ 571

 

Add: Noncontrolling interests related to continuing operations

 

 

 105

 

 

 

 31

 

 

 

 36

 

 

 

 38

 

 

 

 91

 

 

 

 34

 

 

 

 31

 

 

 

 25

 

 

 

 35

 

Add: Net pension and OPEB cost (benefit), excluding service cost

 

 

 (143 )

 

 

 (45 )

 

 

 (49 )

 

 

 (49 )

 

 

 (131 )

 

 

 (46 )

 

 

 (41 )

 

 

 (45 )

 

 

 (45 )

Add: Interest expense

 

 

 46

 

 

 

 8

 

 

 

 18

 

 

 

 20

 

 

 

 80

 

 

 

 35

 

 

 

 38

 

 

 

 18

 

 

 

 24

 

Add: Income taxes

 

 

 923

 

 

 

 321

 

 

 

 334

 

 

 

 268

 

 

 

 594

 

 

 

 253

 

 

 

 265

 

 

 

 164

 

 

 

 165

 

Add: Depreciation and amortization

 

 

 3,500

 

 

 

 1,163

 

 

 

 1,171

 

 

 

 1,166

 

 

 

 3,434

 

 

 

 1,192

 

 

 

 1,168

 

 

 

 1,124

 

 

 

 1,142

 

EBITDA from continuing operations

 

 

 7,228

 

 

 

 2,456

 

 

 

 2,350

 

 

 

 2,422

 

 

 

 5,796

 

 

 

 2,237

 

 

 

 2,160

 

 

 

 1,744

 

 

 

 1,892

 

Add: Cost reduction programs and other charges

 

 

 257

 

 

 

 61

 

 

 

 204

 

 

 

 (8 )

 

 

 428

 

 

 

 78

 

 

 

 48

 

 

 

 249

 

 

 

 131

 

Add: Purchase accounting impacts - Linde AG

 

 

 97

 

 

 

 42

 

 

 

 31

 

 

 

 24

 

 

 

 74

 

 

 

 32

 

 

 

 25

 

 

 

 23

 

 

 

 26

 

Total adjustments

 

 

 354

 

 

 

 103

 

 

 

 235

 

 

 

 16

 

 

 

 502

 

 

 

 110

 

 

 

 73

 

 

 

 272

 

 

 

 157

 

Adjusted EBITDA from continuing operations

 

 $ 7,582

 

 

 $ 2,559

 

 

 $ 2,585

 

 

 $ 2,438

 

 

 $ 6,298

 

 

 $ 2,347

 

 

 $ 2,233

 

 

 $ 2,016

 

 

 $ 2,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported sales

 

 $ 22,495

 

 

 $ 7,668

 

 

 $ 7,584

 

 

 $ 7,243

 

 

 $ 19,971

 

 

 $ 7,272

 

 

 $ 6,855

 

 

 $ 6,377

 

 

 $ 6,739

 

% of sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA from continuing operations

 

 

 32.1 %

 

 

 32.0 %

 

 

 31.0 %

 

 

 33.4 %

 

 

 29.0 %

 

 

 30.8 %

 

 

 31.5 %

 

 

 27.3 %

 

 

 28.1 %

Adjusted EBITDA from continuing operations

 

 

 33.7 %

 

 

 33.4 %

 

 

 34.1 %

 

 

 33.7 %

 

 

 31.5 %

 

 

 32.3 %

 

 

 32.6 %

 

 

 31.6 %

 

 

 30.4 %

 

(a) The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts.

(b) Net of income taxes which are shown separately in “Adjusted Income Taxes and Effective Tax Rate”.

(c) The company believes that its non-GAAP measures excluding Purchase accounting impacts - Linde AG are useful to investors because: (i) the business combination was a merger of equals in an all-stock merger transaction, with no cash consideration, (ii) the company is managed on a geographic basis and the results of certain geographies are more heavily impacted by purchase accounting than others, causing results that are not comparable at the reportable segment level, therefore, the impacts of purchasing accounting adjustments to each segment vary and are not comparable within the company and when compared to other companies in similar regions, (iii) business management is evaluated and variable compensation is determined based on results excluding purchase accounting impacts, and; (iv) it is important to investors and analysts to understand the purchase accounting impacts to the financial statements.
A summary of each of the adjustments made for Purchase accounting impacts - Linde AG are as follows:
Adjusted Operating Profit and Margin: The purchase accounting adjustments for the periods presented relate primarily to depreciation and amortization related to the fair value step up of fixed assets and intangible assets (primarily customer related) acquired in the merger and the allocation of fair value step-up for ongoing Linde AG asset disposals (reflected in Other Income/(Expense)).
Adjusted Interest Expense - Net: Relates to the amortization of the fair value of debt acquired in the merger.
Adjusted Income Taxes and Effective Tax Rate: Relates to the current and deferred income tax impact on the adjustments discussed above. The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts.
Adjusted Income from Equity Investments: Represents the amortization of increased fair value on equity investments related to depreciable and amortizable assets.
Adjusted Noncontrolling Interests from Continuing Operations: Represents the noncontrolling interests’ ownership portion of the adjustments described above determined on an entity by entity basis.

(d) We are providing adjusted earnings per share ("EPS") guidance for 2021. This is a non-GAAP financial measure that represents diluted earnings per share from continuing operations (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges, the impact of potential divestitures or other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort.

(e) Impairment charge related to a joint venture in the APAC segment.

 

 
Page 10/11

 

 

LINDE PLC AND SUBSIDIARIES 

APPENDIX 

NON-GAAP MEASURES AND RECONCILIATIONS 

(Millions of dollars) 

(UNAUDITED) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

2020

 

 

2019

 

 

 

Q3

 

 

Q2

 

 

Q1

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Free Cash Flow (FCF) - Free cash flow is a measure used by investors, financial analysts and management to evaluate the ability of a company to pursue opportunities that enhance shareholder value. FCF equals cash flow from operations less capital expenditures.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Cash Flow

 

 $ 2,556

 

 

 $ 1,827

 

 

 $ 2,109

 

 

 $ 2,434

 

 

 $ 1,884

 

 

 $ 1,764

 

 

 $ 1,347

 

 

 $ 2,174

 

 

 $ 1,872

 

 

 $ 1,005

 

 

 $ 1,068

 

Less: Capital Expenditures

 

 

 (741 )

 

 

 (744 )

 

 

 (762 )

 

 

 (1,027 )

 

 

 (787 )

 

 

 (783 )

 

 

 (803 )

 

 

 (1,015 )

 

 

 (959 )

 

 

 (865 )

 

 

 (843 )

Free Cash Flow

 

 $ 1,815

 

 

 $ 1,083

 

 

 $ 1,347

 

 

 $ 1,407

 

 

 $ 1,097

 

 

 $ 981

 

 

 $ 544

 

 

 $ 1,159

 

 

 $ 913

 

 

 $ 140

 

 

 $ 225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Debt - Net debt is a financial liquidity metric used by investors, financial analysts and management to evaluate the ability of a company to repay its debt and is calculated as total debt (excluding purchase accounting impacts) less liquid assets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

 $ 16,727

 

 

 $ 15,492

 

 

 $ 15,750

 

 

 $ 16,154

 

 

 $ 17,803

 

 

 $ 17,480

 

 

 $ 16,875

 

 

 $ 13,956

 

 

 $ 13,201

 

 

 $ 13,957

 

 

 $ 14,146

 

Less: Cash and cash equivalents

 

 

 (4,700 )

 

 

 (3,137 )

 

 

 (4,096 )

 

 

 (3,754 )

 

 

 (5,199 )

 

 

 (4,941 )

 

 

 (4,014 )

 

 

 (2,700 )

 

 

 (2,120 )

 

 

 (2,686 )

 

 

 (5,791 )

Net debt

 

 

 12,027

 

 

 

 12,355

 

 

 

 11,654

 

 

 

 12,400

 

 

 

 12,604

 

 

 

 12,539

 

 

 

 12,861

 

 

 

 11,256

 

 

 

 11,081

 

 

 

 11,271

 

 

 

 8,355

 

Less: Purchase accounting impacts - Linde AG

 

 

 (72 )

 

 

 (84 )

 

 

 (98 )

 

 

 (121 )

 

 

 (133 )

 

 

 (150 )

 

 

 (170 )

 

 

 (195 )

 

 

 (211 )

 

 

 (243 )

 

 

 (262 )

Adjusted net debt

 

 $ 11,955

 

 

 $ 12,271

 

 

 $ 11,556

 

 

 $ 12,279

 

 

 $ 12,471

 

 

 $ 12,389

 

 

 $ 12,691

 

 

 $ 11,061

 

 

 $ 10,870

 

 

 $ 11,028

 

 

 $ 8,093

 

Less: Net assets held for sale

 

 

 (1 )

 

 

 (1 )

 

 

 (4 )

 

 

 (3 )

 

 

 (2 )

 

 

 (2 )

 

 

 (115 )

 

 

 (123 )

 

 

 (223 )

 

 

 (272 )

 

 

 (1,629 )

Adjusted net debt less net assets held for sale

 

 $ 11,954

 

 

 $ 12,270

 

 

 $ 11,552

 

 

 $ 12,276

 

 

 $ 12,469

 

 

 $ 12,387

 

 

 $ 12,576

 

 

 $ 10,938

 

 

 $ 10,647

 

 

 $ 10,756

 

 

 $ 6,464

 

 

After-tax Return on Capital and Adjusted After-tax Return on Capital (ROC) - After-tax return on capital is a measure used by investors, financial analysts and management to evaluate the return on net assets employed in the business. ROC measures the after-tax operating profit that the company was able to generate with the investments made by all parties in the business (debt, noncontrolling interests and Linde plc shareholders’ equity).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported income from continuing operations

 

 $ 978

 

 

 $ 840

 

 

 $ 979

 

 

 $ 769

 

 

 $ 699

 

 

 $ 458

 

 

 $ 571

 

 

 $ 507

 

 

 $ 728

 

 

 $ 513

 

 

 $ 435

 

Add: noncontrolling interests from continuing operations

 

 

 31

 

 

 

 36

 

 

 

 38

 

 

 

 34

 

 

 

 31

 

 

 

 25

 

 

 

 35

 

 

 

 27

 

 

 

 3

 

 

 

 29

 

 

 

 30

 

Add: interest expense - net

 

 

 8

 

 

 

 18

 

 

 

 20

 

 

 

 35

 

 

 

 38

 

 

 

 18

 

 

 

 24

 

 

 

 8

 

 

 

 (3 )

 

 

 10

 

 

 

 23

 

Less: tax benefit on interest expense - net *

 

 

 (2 )

 

 

 (5 )

 

 

 (5 )

 

 

 (9 )

 

 

 (10 )

 

 

 (5 )

 

 

 (6 )

 

 

 (2 )

 

 

 1

 

 

 

 (3 )

 

 

 (6 )

Reported NOPAT

 

 $ 1,015

 

 

 $ 889

 

 

 $ 1,032

 

 

 $ 829

 

 

 $ 758

 

 

 $ 496

 

 

 $ 624

 

 

 $ 540

 

 

 $ 729

 

 

 $ 549

 

 

 $ 482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income from continuing operations

 

 $ 1,421

 

 

 $ 1,415

 

 

 $ 1,312

 

 

 $ 1,217

 

 

 $ 1,140

 

 

 $ 1,005

 

 

 $ 1,009

 

 

 $ 1,024

 

 

 $ 1,052

 

 

 $ 1,000

 

 

 $ 927

 

Add: adjusted noncontrolling interests from continuing operations

 

 

 35

 

 

 

 38

 

 

 

 43

 

 

 

 52

 

 

 

 45

 

 

 

 39

 

 

 

 50

 

 

 

 41

 

 

 

 46

 

 

 

 46

 

 

 

 45

 

Add: adjusted interest expense - net

 

 

 18

 

 

 

 33

 

 

 

 38

 

 

 

 37

 

 

 

 61

 

 

 

 40

 

 

 

 46

 

 

 

 30

 

 

 

 19

 

 

 

 35

 

 

 

 50

 

Less: tax benefit on interest expense - net *

 

 

 (5 )

 

 

 (8 )

 

 

 (10 )

 

 

 (9 )

 

 

 (15 )

 

 

 (10 )

 

 

 (12 )

 

 

 (7 )

 

 

 (5 )

 

 

 (9 )

 

 

 (13 )

Adjusted NOPAT

 

 $ 1,469

 

 

 $ 1,478

 

 

 $ 1,383

 

 

 $ 1,297

 

 

 $ 1,231

 

 

 $ 1,074

 

 

 $ 1,093

 

 

 $ 1,088

 

 

 $ 1,112

 

 

 $ 1,072

 

 

 $ 1,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4-quarter trailing reported NOPAT

 

 $ 3,765

 

 

 $ 3,508

 

 

 $ 3,115

 

 

 $ 2,707

 

 

 $ 2,418

 

 

 $ 2,389

 

 

 $ 2,442

 

 

 $ 2,300

 

 

 

 

 

 

 

 

 

 

 

 

 

4-quarter trailing adjusted NOPAT

 

 $ 5,627

 

 

 $ 5,389

 

 

 $ 4,985

 

 

 $ 4,695

 

 

 $ 4,486

 

 

 $ 4,367

 

 

 $ 4,365

 

 

 $ 4,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity and redeemable noncontrolling interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

 

 $ 13

 

 

 $ 13

 

 

 $ 13

 

 

 $ 13

 

 

 $ 13

 

 

 $ 13

 

 

 $ 92

 

 

 $ 113

 

 

 $ 14

 

 

 $ 15

 

 

 $ 15

 

Linde plc shareholders' equity

 

 

 44,323

 

 

 

 45,777

 

 

 

 46,210

 

 

 

 47,317

 

 

 

 46,175

 

 

 

 45,537

 

 

 

 44,776

 

 

 

 49,074

 

 

 

 48,953

 

 

 

 50,564

 

 

 

 51,175

 

Noncontrolling interests

 

 

 1,401

 

 

 

 1,438

 

 

 

 1,410

 

 

 

 2,252

 

 

 

 2,404

 

 

 

 2,387

 

 

 

 2,375

 

 

 

 2,448

 

 

 

 2,341

 

 

 

 2,315

 

 

 

 5,457

 

Total equity and redeemable noncontrolling interests

 

 $ 45,737

 

 

 $ 47,228

 

 

 $ 47,633

 

 

 $ 49,582

 

 

 $ 48,592

 

 

 $ 47,937

 

 

 $ 47,243

 

 

 $ 51,635

 

 

 $ 51,308

 

 

 $ 52,894

 

 

 $ 56,647

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported capital

 

 $ 57,763

 

 

 $ 59,582

 

 

 $ 59,283

 

 

 $ 61,979

 

 

 $ 61,194

 

 

 $ 60,474

 

 

 $ 59,989

 

 

 $ 62,768

 

 

 $ 62,166

 

 

 $ 63,893

 

 

 $ 63,373

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity and redeemable noncontrolling interests

 

 $ 45,737

 

 

 $ 47,228

 

 

 $ 47,633

 

 

 $ 49,582

 

 

 $ 48,592

 

 

 $ 47,937

 

 

 $ 47,243

 

 

 $ 51,635

 

 

 $ 51,308

 

 

 $ 52,894

 

 

 $ 56,647

 

Add: Adjusted net debt less net assets held for sale

 

 

 11,954

 

 

 

 12,270

 

 

 

 11,552

 

 

 

 12,276

 

 

 

 12,469

 

 

 

 12,387

 

 

 

 12,576

 

 

 

 10,938

 

 

 

 10,647

 

 

 

 10,756

 

 

 

 6,464

 

Less: Linde AG Goodwill (a)

 

 

 24,256

 

 

 

 24,256

 

 

 

 24,256

 

 

 

 24,256

 

 

 

 24,256

 

 

 

 24,256

 

 

 

 24,256

 

 

 

 24,256

 

 

 

 24,197

 

 

 

 24,197

 

 

 

 24,197

 

Less: Linde AG Indefinite lived intangibles (a)

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

Adjusted capital

 

 $ 31,567

 

 

 $ 33,374

 

 

 $ 33,061

 

 

 $ 35,734

 

 

 $ 34,937

 

 

 $ 34,200

 

 

 $ 33,695

 

 

 $ 36,449

 

 

 $ 35,890

 

 

 $ 37,585

 

 

 $ 37,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Represent opening balance sheet purchase accounting impacts of non-amortizing assets related to the Linde AG merger.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending capital (see above)

 

 $ 57,763

 

 

 $ 59,582

 

 

 $ 59,283

 

 

 $ 61,979

 

 

 $ 61,194

 

 

 $ 60,474

 

 

 $ 59,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5-quarter average ending capital

 

 $ 59,960

 

 

 $ 60,502

 

 

 $ 60,584

 

 

 $ 61,281

 

 

 $ 61,318

 

 

 $ 61,858

 

 

 $ 62,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending adjusted capital (see above)

 

 $ 31,567

 

 

 $ 33,374

 

 

 $ 33,061

 

 

 $ 35,734

 

 

 $ 34,937

 

 

 $ 34,200

 

 

 $ 33,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5-quarter average ending adjusted capital

 

 $ 33,735

 

 

 $ 34,261

 

 

 $ 34,325

 

 

 $ 35,003

 

 

 $ 35,034

 

 

 $ 35,564

 

 

 $ 36,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

After-tax ROC (4 quarter reported NOPAT / 5-quarter average ending capital)

 

 

 6.3 %

 

 

 5.8 %

 

 

 5.1 %

 

 

 4.4 %

 

 

 3.9 %

 

 

 3.9 %

 

 

 3.9 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted after-tax ROC (4 quarter trailing adjusted NOPAT / 5-quarter average ending adjusted capital)

 

 

 16.7 %

 

 

 15.7 %

 

 

 14.5 %

 

 

 13.4 %

 

 

 12.8 %

 

 

 12.3 %

 

 

 12.1 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*Tax benefit on interest expense - net is generally presented using the reported effective rate.

 

 
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