Form 8-K LINDE PLC For: Jul 30
Exhibit
99.1
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Press release
Linde Reports Second-Quarter 2020 Results
Financial Highlights
➢ Strong
operating cash flow of $1.8 billion, up 76% versus prior
year
➢ Operating
profit margin flat versus prior year; adjusted operating profit
margin up 230 basis points
➢ EPS
of $0.87, down 7% versus prior year; adjusted EPS of $1.90, up
4%
➢ Full-year
2020 adjusted EPS guidance of $7.60 - $7.80, up
7% to 9% year-over-year, ex-FX*
Guildford,
UK, July 30, 2020 – Linde plc (NYSE: LIN; FWB: LIN) today
reported second-quarter 2020 income from continuing operations of
$458 million and diluted
earnings per share of $0.87. Excluding Linde AG purchase accounting
impacts and other charges, adjusted income from continuing
operations was $1,005 million, up 1% versus prior year and flat
sequentially. Adjusted earnings per share were $1.90, 4% above
prior year, or 8% higher when excluding negative currency
translation effects. Sequentially, adjusted earnings per share
increased 1%, or 3% when excluding negative currency translation
effects.
Linde’s
sales for the second quarter were $6,377 million, 5% below prior
year excluding negative currency translation, cost pass-through and
divestitures. Price improved 2% and was attained across all
geographic segments. Volume decreased 7% as growth from project
start-ups and engineering was more than offset by the global
macroeconomic slowdown as a result of the COVID-19
pandemic.
Second-quarter
operating profit was $591 million. Adjusted operating profit of
$1,317 million was flat versus prior year, or 4% higher, when
excluding unfavorable currency translation effects. Adjusted
operating margin of 20.7% expanded 230 basis points versus prior
year primarily due to price and cost actions underpinned by stable
fixed payment revenues.
Second-quarter
operating cash flow of $1,764 million increased $759 million or 76%
over prior year primarily driven by higher cash earnings, lower
merger-related cost and improved working capital. During the
quarter, the company invested $783 million in capital expenditures
and returned $506 million to shareholders through
dividends.
Commenting
on the financial results, Chief Executive Officer Steve Angel said,
“I’m proud of how the Linde team came together to
safely and reliably serve our customers and deliver high-quality
financial results. Despite volume reductions from the
pandemic, EPS excluding currency increased 8%, operating margin
expanded 230 basis points and operating cash flow grew 76% from
prior-year levels. These results demonstrate the resiliency
of our integrated industrial gas supply model.”
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Press release
Angel
continued, “Looking ahead, the full effects of COVID-19 and
the rate of recovery are uncertain. However, the growth
opportunities for Linde remain strong from our high-quality project
backlog, defensive end markets and leading infrastructure and
technology in support of the secular trend in clean energy.
Our resilient business model combined with our ability to
continuously optimize business performance, while capitalizing on
short and long-term growth opportunities, gives me the confidence
that Linde can grow earnings in any
environment.”
For the
third quarter of 2020, Linde expects adjusted diluted earnings per
share in the range of $1.90 to $1.95. This guidance assumes a
negative currency impact of approximately 3% versus the prior-year
quarter based on projected exchange rates.
For the
full year, the company expects adjusted diluted earnings per share
to be in the range of $7.60 to $7.80, up 4% to 6% versus prior
year, or 7% to 9% excluding currency headwinds. Full-year capital
expenditures are expected to between $3.0 billion to $3.4 billion
to support maintenance and growth requirements including the $3.6
billion contractual sale of gas project backlog.
Second-Quarter 2020 Results by Segment
Americas
sales of $2,417 million were 13% below prior-year quarter as 2%
higher pricing was more than offset by 9% volume decline led mainly
by manufacturing and metals end markets. Furthermore, currency was
unfavorable by 4% and cost pass-through was down 1%. Operating
profit of $622 million was 25.7% of sales, up 250 basis points
versus prior year.
APAC
(Asia Pacific) sales of $1,295 million were 13% below prior year.
Price increased 1% versus prior year but was more than offset by
negative 9% volumes driven by lower demand in the manufacturing end
market and a prior-year sale of equipment. Additionally, currency
was unfavorable by 4% and cost pass-through was down 1%. Operating
profit of $294 million was 22.7% of sales, up 230 basis points
versus prior year.
EMEA
(Europe, Middle East & Africa) sales of $1,448 million were
down 13% versus prior year as 1% higher pricing was more than
offset by negative 7% volumes primarily due to lower demand in the
manufacturing and metals end market. Currency was unfavorable by 5%
and cost pass through was down 1%. Operating profit of $303 million
was 20.9% of sales, up 110 basis points versus prior
year.
Linde
Engineering sales were $810 million and operating profit was $138
million or 17% of sales. Operating profit grew 39% versus prior
year due primarily to strong project execution and productivity
initiatives.
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Press
release
Earnings
Call
A
teleconference on Linde’s second-quarter 2020 results is
being held today at 10:00 am EDT.
|
Live conference call
|
US
Toll-Free Dial-In Number: 1 855 758 5442
Germany
Toll-Free Dial-In Number: 0800 181 5287
UK
Toll-Free Dial-In Number: 0800 028 8438
Access
code: 5368349
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Live webcast (listen-only) & on-demand
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https://investors.linde.com/events-presentations
Short
URL: https://t1p.de/i2ho
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Materials
to be used in the teleconference are also available on the
website.
About
Linde
Linde
is a leading global industrial gases and engineering company with
2019 sales of $28 billion (€25 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 &
refining, food & beverage, electronics, healthcare,
manufacturing and primary metals. 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
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 2020. 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.
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Press
release
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, 2019 filed with the SEC on March 2,
2020 and in Item 1A. of Linde plc's Form 10-Q for the period ending
March 31, 2020 filed with the SEC on May 7, 2020, which should be
reviewed carefully. Please consider Linde plc’s
forward-looking statements in light of those risks.
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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
|
||||
|
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
|
Quarter Ended June 30
|
|
|
|
|
|
|
|
|
|
Reported
GAAP Amounts
|
$6,377
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$7,204
|
$591
|
$669
|
$458
|
$513
|
$0.87
|
$0.94
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|
Cost
reduction program and other charges (a)
|
-
|
-
|
249
|
141
|
187
|
115
|
0.35
|
0.22
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|
Pension
settlement charges (b)
|
-
|
-
|
-
|
-
|
-
|
8
|
-
|
0.01
|
|
Merger-related
divestitures (c)
|
-
|
(25)
|
-
|
(6)
|
-
|
(4)
|
-
|
(0.01)
|
|
Purchase
accounting impacts - Linde AG (d)
|
-
|
-
|
477
|
515
|
360
|
368
|
0.68
|
0.67
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|
Total
adjustments
|
-
|
(25)
|
726
|
650
|
547
|
487
|
1.03
|
0.89
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|
Adjusted
amounts
|
$6,377
|
$7,179
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$1,317
|
$1,319
|
$1,005
|
$1,000
|
$1.90
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$1.83
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|
|
Sales
|
Operating Profit
|
Income from Continuing Operations
|
Diluted EPS from Continuing Operations
|
||||
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2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
|
Year to Date June 30
|
|
|
|
|
|
|
|
|
|
Reported
GAAP Amounts
|
$13,116
|
$14,148
|
$1,324
|
$1,278
|
$1,029
|
$948
|
$1.93
|
$1.73
|
|
Cost
reduction program and other charges (a)
|
-
|
-
|
380
|
230
|
282
|
198
|
0.53
|
0.37
|
|
Pension
settlement charges (b)
|
-
|
-
|
-
|
-
|
-
|
46
|
-
|
0.08
|
|
Merger-related
divestitures (c)
|
-
|
(55)
|
-
|
(13)
|
-
|
(9)
|
-
|
(0.02)
|
|
Purchase
accounting impacts - Linde AG (d)
|
-
|
-
|
965
|
1,046
|
703
|
744
|
1.32
|
1.36
|
|
Total
adjustments
|
-
|
(55)
|
1,345
|
1,263
|
985
|
979
|
1.85
|
1.79
|
|
Adjusted
amounts
|
$13,116
|
$14,093
|
$2,669
|
$2,541
|
$2,014
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$1,927
|
$3.78
|
$3.52
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(a) To adjust for cost reduction program and other charges; 2020
includes severance of $192 million and $250 million for the quarter
and year-to-date periods, other cost reduction charges of $21
million and $41 million for the quarter and year-to-date periods,
and other charges of $36 million and $89 million for the quarter
and year-to-date periods.
(b) To adjust for pension settlement charges relates to the
merger.
(c) To adjust for the results of Praxair's merger-related
divestitures.
(d) To adjust for purchase accounting impacts related to the
merger.
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LINDE PLC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Millions of dollars, except per share data)
(UNAUDITED)
|
|
Quarter Ended
|
Year To Date
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||
|
|
June 30,
|
June 30,
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|
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2020
|
2019
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2020
|
2019
|
|
|
|
|
|
|
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SALES
|
$6,377
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$7,204
|
$13,116
|
$14,148
|
|
Cost
of sales
|
3,619
|
4,280
|
7,462
|
8,396
|
|
Selling,
general and administrative
|
760
|
884
|
1,621
|
1,763
|
|
Depreciation
and amortization
|
1,124
|
1,195
|
2,266
|
2,418
|
|
Research
and development
|
34
|
45
|
78
|
91
|
|
Cost
reduction programs and other charges
|
249
|
141
|
380
|
230
|
|
Other
income (expense) - net
|
-
|
10
|
15
|
28
|
|
OPERATING PROFIT
|
591
|
669
|
1,324
|
1,278
|
|
Interest
expense - net
|
18
|
10
|
42
|
33
|
|
Net
pension and OPEB cost (benefit), excluding service
cost
|
(45)
|
(24)
|
(90)
|
(9)
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY
INVESTMENTS
|
618
|
683
|
1,372
|
1,254
|
|
Income
taxes
|
164
|
169
|
329
|
309
|
|
INCOME FROM CONTINUING OPERATIONS BEFORE EQUITY
INVESTMENTS
|
454
|
514
|
1,043
|
945
|
|
Income
from equity investments
|
29
|
28
|
46
|
62
|
|
INCOME FROM CONTINUING OPERATIONS (INCLUDING NONCONTROLLING
INTERESTS)
|
483
|
542
|
1,089
|
1,007
|
|
Add:
income from discontinued operations, net of tax
|
-
|
9
|
2
|
98
|
|
INCOME (INCLUDING NONCONTROLLING INTERESTS)
|
483
|
551
|
1,091
|
1,105
|
|
Less:
noncontrolling interests from continuing operations
|
(25)
|
(29)
|
(60)
|
(59)
|
|
Less:
noncontrolling interests from discontinued operations
|
-
|
-
|
-
|
(7)
|
|
NET INCOME - LINDE PLC
|
$458
|
$522
|
$1,031
|
$1,039
|
|
|
|
|
|
|
|
NET INCOME - LINDE PLC
|
|
|
|
|
|
Income
from continuing operations
|
$458
|
$513
|
$1,029
|
$948
|
|
Income
from discontinued operations
|
$-
|
$9
|
$2
|
$91
|
|
|
|
|
|
|
|
PER SHARE DATA - LINDE PLC SHAREHOLDERS
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share from continuing operations
|
$0.87
|
$0.95
|
$1.95
|
$1.74
|
|
Basic
earnings per share from discontinued operations
|
-
|
0.02
|
-
|
0.17
|
|
Basic
earnings per share
|
$0.87
|
$0.97
|
$1.95
|
$1.91
|
|
|
|
|
|
|
|
Diluted
earnings per share from continuing operations
|
0.87
|
0.94
|
1.93
|
1.73
|
|
Diluted
earnings per share from discontinued operations
|
-
|
0.02
|
-
|
0.17
|
|
Diluted
earnings per share
|
$0.87
|
$0.96
|
$1.93
|
$1.90
|
|
|
|
|
|
|
|
Cash
dividends
|
$0.963
|
$0.875
|
$1.926
|
$1.75
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING
|
|
|
|
|
|
Basic
shares outstanding (000's)
|
525,510
|
542,561
|
528,385
|
544,033
|
|
Diluted
shares outstanding (000's)
|
529,054
|
546,488
|
532,112
|
547,771
|
Note: See page 10 for a reconciliation to adjusted amounts which
are Non-GAAP.
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Press
release
LINDE PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Millions of dollars)
(UNAUDITED)
|
|
June 30,
|
December 31,
|
|
|
2020
|
2019
|
|
ASSETS
|
|
|
|
Cash
and cash equivalents
|
$4,941
|
$2,700
|
|
Accounts
receivable - net
|
3,994
|
4,322
|
|
Contract
assets
|
226
|
368
|
|
Inventories
|
1,715
|
1,697
|
|
Assets
held for sale
|
3
|
125
|
|
Prepaid
and other current assets
|
1,194
|
1,140
|
|
TOTAL CURRENT ASSETS
|
12,073
|
10,352
|
|
Property,
plant and equipment - net
|
27,693
|
29,064
|
|
Goodwill
|
26,580
|
27,019
|
|
Other
intangibles - net
|
15,504
|
16,137
|
|
Other
long-term assets
|
4,006
|
4,040
|
|
TOTAL ASSETS
|
$85,856
|
$86,612
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
Accounts
payable
|
$2,816
|
$3,266
|
|
Short-term
debt
|
3,679
|
1,732
|
|
Current
portion of long-term debt
|
2,723
|
1,531
|
|
Contract
liabilities
|
1,693
|
1,758
|
|
Liabilities
of assets held for sale
|
1
|
2
|
|
Other
current liabilities
|
4,183
|
3,871
|
|
TOTAL CURRENT LIABILITIES
|
15,095
|
12,160
|
|
Long-term
debt
|
11,078
|
10,693
|
|
Other
long-term liabilities
|
11,746
|
12,124
|
|
TOTAL LIABILITIES
|
37,919
|
34,977
|
|
|
|
|
|
REDEEMABLE NONCONTROLLING INTERESTS
|
13
|
113
|
|
|
|
|
|
LINDE PLC SHAREHOLDERS' EQUITY:
|
|
|
|
Common
stock
|
1
|
1
|
|
Additional
paid-in capital
|
40,211
|
40,201
|
|
Retained
earnings
|
16,782
|
16,842
|
|
Accumulated
other comprehensive income (loss)
|
(6,621)
|
(4,814)
|
|
Less:
Treasury stock, at cost
|
(4,836)
|
(3,156)
|
|
Total
Linde plc shareholders' equity
|
45,537
|
49,074
|
|
Noncontrolling
interests
|
2,387
|
2,448
|
|
TOTAL EQUITY
|
47,924
|
51,522
|
|
TOTAL LIABILITIES AND EQUITY
|
$85,856
|
$86,612
|
Page
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Press
release
LINDE PLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Millions of dollars)
(UNAUDITED)
|
|
Quarter Ended
|
Year to Date
|
||
|
|
June 30,
|
June 30,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
OPERATIONS
|
|
|
|
|
|
Net
income - Linde plc
|
$458
|
$522
|
$1,031
|
$1,039
|
|
Less:
income from discontinued operations, net of tax and noncontrolling
interests
|
-
|
(9)
|
(2)
|
(91)
|
|
Add:
noncontrolling interests
|
25
|
29
|
60
|
59
|
|
Net
income (including noncontrolling interests)
|
483
|
542
|
1,089
|
1,007
|
|
|
|
|
|
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Cost
reduction programs and other charges, net of payments
(a)
|
199
|
(119)
|
239
|
(286)
|
|
Depreciation
and amortization
|
1,124
|
1,195
|
2,266
|
2,418
|
|
Accounts
receivable
|
(9)
|
(132)
|
(118)
|
(188)
|
|
Contract
assets and liabilities, net
|
(105)
|
(19)
|
71
|
(103)
|
|
Inventory
|
(20)
|
(41)
|
(82)
|
(73)
|
|
Payables
and accruals
|
156
|
(216)
|
(27)
|
(247)
|
|
Pension
contributions
|
(24)
|
(25)
|
(41)
|
(43)
|
|
Deferred
income taxes and other
|
(40)
|
(180)
|
(286)
|
(412)
|
|
Net
cash provided by operating activities
|
1,764
|
1,005
|
3,111
|
2,073
|
|
|
|
|
|
|
|
INVESTING
|
|
|
|
|
|
Capital
expenditures
|
(783)
|
(865)
|
(1,586)
|
(1,708)
|
|
Acquisitions,
net of cash acquired
|
-
|
12
|
(41)
|
(140)
|
|
Divestitures
and asset sales
|
149
|
1,234
|
380
|
4,689
|
|
Net
cash provided by (used for) investing activities
|
(634)
|
381
|
(1,247)
|
2,841
|
|
|
|
|
|
|
|
FINANCING
|
|
|
|
|
|
Debt
increase (decrease) - net
|
411
|
(250)
|
3,523
|
(1,277)
|
|
Issuances
of ordinary shares
|
12
|
27
|
25
|
55
|
|
Purchases
of ordinary shares
|
-
|
(525)
|
(1,828)
|
(1,250)
|
|
Cash
dividends - Linde plc shareholders
|
(506)
|
(474)
|
(1,017)
|
(951)
|
|
Noncontrolling
interest transactions and other
|
(121)
|
(3,212)
|
(148)
|
(3,222)
|
|
Net
cash provided by (used for) financing activities
|
(204)
|
(4,434)
|
555
|
(6,645)
|
|
|
|
|
|
|
|
DISCONTINUED OPERATIONS
|
|
|
|
|
|
Cash
provided by operating activities
|
-
|
7
|
-
|
70
|
|
Cash
provided by investing activities
|
-
|
(1)
|
-
|
(59)
|
|
Cash
provided by financing activities
|
-
|
-
|
-
|
5
|
|
Net
cash provided by (used for) discontinued operations
|
-
|
6
|
-
|
16
|
|
|
|
|
|
|
|
Effect
of exchange rate changes on cash and cash equivalents
|
1
|
(57)
|
(178)
|
(49)
|
|
|
|
|
|
|
|
Change
in cash and cash equivalents
|
927
|
(3,099)
|
2,241
|
(1,764)
|
|
Cash
and cash equivalents, beginning-of-period
|
4,014
|
5,791
|
2,700
|
4,466
|
|
Cash
and cash equivalents, including discontinued
operations
|
4,941
|
2,692
|
4,941
|
2,702
|
|
Cash
and cash equivalents of discontinued operations
|
-
|
(6)
|
-
|
(16)
|
|
Cash
and cash equivalents, end-of-period
|
$4,941
|
$2,686
|
$4,941
|
$2,686
|
(a) Cost reduction programs and other charges cash outflows were
$50 million and $260 million for the quarters ended June 30, 2020
and 2019, respectively, and $141 million and $516 million for the
six months ended June 30, 2020 and 2019, respectively.
Page
8/12
|
|
|
Press
release
LINDE PLC AND SUBSIDIARIES
SEGMENT INFORMATION
(Millions of dollars)
(UNAUDITED)
|
|
Quarter Ended June 30,
|
Year to Date June 30,
|
||
|
|
2020
|
2019
|
2020
|
2019
|
|
SALES
|
|
|
|
|
|
Americas
|
$2,417
|
$2,779
|
$5,094
|
$5,481
|
|
EMEA
|
1,448
|
1,673
|
3,081
|
3,355
|
|
APAC
|
1,295
|
1,488
|
2,631
|
2,915
|
|
Engineering
|
810
|
752
|
1,418
|
1,388
|
|
Other
|
407
|
487
|
892
|
954
|
|
Segment
sales
|
$6,377
|
$7,179
|
$13,116
|
$14,093
|
|
Merger-related
divestitures (a)
|
-
|
25
|
-
|
55
|
|
Total
sales
|
$6,377
|
$7,204
|
$13,116
|
$14,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFIT
|
|
|
|
|
|
Americas
|
$622
|
$646
|
$1,283
|
$1,230
|
|
EMEA
|
303
|
332
|
658
|
679
|
|
APAC
|
294
|
304
|
575
|
577
|
|
Engineering
|
138
|
99
|
229
|
177
|
|
Other
|
(40)
|
(62)
|
(76)
|
(122)
|
|
Segment
operating profit
|
$1,317
|
$1,319
|
$2,669
|
$2,541
|
|
Cost
reduction programs and other charges
|
(249)
|
(141)
|
(380)
|
(230)
|
|
Merger-related
divestitures (a)
|
-
|
6
|
-
|
13
|
|
Purchase
accounting impacts - Linde AG
|
(477)
|
(515)
|
(965)
|
(1,046)
|
|
Total
operating profit
|
$591
|
$669
|
$1,324
|
$1,278
|
(a) To adjust for the results of Praxair's merger-related
divestitures.
Page
9/12
|
|
|
|
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.
|
|
2020
|
2019
|
||||||
|
|
Year to Date
June 30,
|
Q2
|
Q1
|
Year to Date
June 30,
|
Q4
|
Q3
|
Q2
|
Q1
|
|
Adjusted Sales
|
|
|
|
|
|
|
|
|
|
Reported
Sales
|
$13,116
|
$6,377
|
$6,739
|
$14,148
|
$7,080
|
$7,000
|
$7,204
|
$6,944
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
(55)
|
(3)
|
(7)
|
(25)
|
(30)
|
|
Adjusted
Sales
|
$13,116
|
$6,377
|
$6,739
|
$14,093
|
$7,077
|
$6,993
|
$7,179
|
$6,914
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Profit and Operating Margin
|
|
|
|
|
|
|
|
|
|
Reported
operating profit
|
$1,324
|
$591
|
$733
|
$1,278
|
$655
|
$1,000
|
$669
|
$609
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
(13)
|
(1)
|
(2)
|
(6)
|
(7)
|
|
Add: Cost
reduction programs and other charges
|
380
|
249
|
131
|
230
|
212
|
125
|
141
|
89
|
|
Less: Net gain
on sale of businesses
|
-
|
-
|
-
|
-
|
-
|
(164)
|
-
|
-
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
965
|
477
|
488
|
1,046
|
481
|
425
|
515
|
531
|
|
Total
adjustments
|
1,345
|
726
|
619
|
1,263
|
692
|
384
|
650
|
613
|
|
Adjusted
operating profit
|
$2,669
|
$1,317
|
$1,352
|
$2,541
|
$1,347
|
$1,384
|
$1,319
|
$1,222
|
|
|
|
|
|
|
|
|
|
|
|
Reported
percentage change
|
4%
|
(12)%
|
20%
|
|
|
|
|
|
|
Adjusted
percentage change
|
5%
|
(0)%
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
sales
|
$13,116
|
$6,377
|
$6,739
|
$14,148
|
$7,080
|
$7,000
|
$7,204
|
$6,944
|
|
Adjusted
sales
|
$13,116
|
$6,377
|
$6,739
|
$14,093
|
$7,077
|
$6,993
|
$7,179
|
$6,914
|
|
|
|
|
|
|
|
|
|
|
|
Reported
operating margin
|
10.1%
|
9.3%
|
10.9%
|
9.0%
|
9.3%
|
14.3%
|
9.3%
|
8.8%
|
|
Adjusted
operating margin
|
20.3%
|
20.7%
|
20.1%
|
18.0%
|
19.0%
|
19.8%
|
18.4%
|
17.7%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Depreciation and amortization
|
|
|
|
|
|
|
|
|
|
Reported
depreciation and amortization
|
$2,266
|
$1,124
|
$1,142
|
$2,418
|
$1,162
|
$1,095
|
$1,195
|
$1,223
|
|
Less: Purchase
accounting impacts - Linde AG (c)
|
(944)
|
(468)
|
(476)
|
(1,036)
|
(481)
|
(423)
|
(515)
|
(521)
|
|
Adjusted
depreciation and amortization
|
$1,322
|
$656
|
$666
|
$1,382
|
$681
|
$672
|
$680
|
$702
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service
Cost
|
|
|
|
|
|
|
|
|
|
Reported net
pension and OPEB cost (benefit), excluding service
cost
|
$(90)
|
$(45)
|
$(45)
|
$(9)
|
$(25)
|
$2
|
$(24)
|
$15
|
|
Add: Pension
settlement charges
|
-
|
-
|
-
|
(61)
|
(6)
|
(40)
|
(10)
|
(51)
|
|
Adjusted Net
Pension and OPEB cost (benefit), excluding service
costs
|
$(90)
|
$(45)
|
$(45)
|
$(70)
|
$(31)
|
$(38)
|
$(34)
|
$(36)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Interest Expense - Net
|
|
|
|
|
|
|
|
|
|
Reported
interest expense - net
|
$42
|
$18
|
$24
|
$33
|
$8
|
$(3)
|
$10
|
$23
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
44
|
22
|
22
|
52
|
22
|
22
|
25
|
27
|
|
Adjusted
interest expense - net
|
$86
|
$40
|
$46
|
$85
|
$30
|
$19
|
$35
|
$50
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Income Taxes (a)
|
|
|
|
|
|
|
|
|
|
Reported
income taxes
|
$329
|
$164
|
$165
|
$309
|
$162
|
$298
|
$169
|
$140
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
217
|
95
|
122
|
246
|
105
|
99
|
119
|
127
|
|
Add: Pension
settlement charges
|
-
|
-
|
-
|
15
|
1
|
10
|
2
|
13
|
|
Add: Cost
reduction programs and other charges
|
98
|
62
|
36
|
32
|
53
|
(2)
|
26
|
6
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
(4)
|
-
|
(1)
|
(2)
|
(2)
|
|
Less: Net gain
on sale of businesses
|
-
|
-
|
-
|
-
|
-
|
(56)
|
-
|
-
|
|
Total
adjustments
|
315
|
157
|
158
|
289
|
159
|
50
|
145
|
144
|
|
Adjusted
income taxes
|
$644
|
$321
|
$323
|
$598
|
$321
|
$348
|
$314
|
$284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Effective Tax Rate (a)
|
|
|
|
|
|
|
|
|
|
Reported
income before income taxes and equity
investments
|
$1,372
|
$618
|
$754
|
$1,254
|
$672
|
$1,001
|
$683
|
$571
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
(13)
|
(1)
|
(2)
|
(6)
|
(7)
|
|
Add: Pension
settlement charge
|
-
|
-
|
-
|
61
|
6
|
40
|
10
|
51
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
921
|
455
|
466
|
994
|
459
|
403
|
490
|
504
|
|
Add: Cost
reduction programs and other charges
|
380
|
249
|
131
|
230
|
212
|
125
|
141
|
89
|
|
Less: Net gain
on sale of businesses
|
-
|
-
|
-
|
-
|
-
|
(164)
|
-
|
-
|
|
Total
adjustments
|
1,301
|
704
|
597
|
1,272
|
676
|
402
|
635
|
637
|
|
Adjusted
income before income taxes and equity
investments
|
$2,673
|
$1,322
|
$1,351
|
$2,526
|
$1,348
|
$1,403
|
$1,318
|
$1,208
|
|
|
|
|
|
|
|
|
|
|
|
Reported
Income taxes
|
$329
|
$164
|
$165
|
$309
|
$162
|
$298
|
$169
|
$140
|
|
Reported
effective tax rate
|
24.0%
|
26.5%
|
21.9%
|
24.6%
|
24.1%
|
29.8%
|
24.7%
|
24.5%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
income taxes
|
$644
|
$321
|
$323
|
$598
|
$321
|
$348
|
$314
|
$284
|
|
Adjusted
effective tax rate
|
24.1%
|
24.3%
|
23.9%
|
23.7%
|
23.8%
|
24.8%
|
23.8%
|
23.5%
|
|
|
|
|
|
|
|
|
|
|
|
Income from Equity Investments
|
|
|
|
|
|
|
|
|
|
Reported
income from equity investments
|
$46
|
$29
|
$17
|
$62
|
$24
|
$28
|
$28
|
$34
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
28
|
14
|
14
|
28
|
14
|
15
|
14
|
14
|
|
Adjusted
income from equity investments
|
$74
|
$43
|
$31
|
$90
|
$38
|
$43
|
$42
|
$48
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Noncontrolling Interests from Continuing
Operations
|
|
|
|
|
|
|
|
|
|
Reported
noncontrolling interests from continuing
operations
|
$(60)
|
$(25)
|
$(35)
|
$(59)
|
$(27)
|
$(3)
|
$(29)
|
$(30)
|
|
Add: Cost
reduction programs and other charges
|
-
|
-
|
-
|
-
|
-
|
(35)
|
-
|
-
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
(29)
|
(14)
|
(15)
|
(32)
|
(14)
|
(8)
|
(17)
|
(15)
|
|
Total
adjustments
|
(29)
|
(14)
|
(15)
|
(32)
|
(14)
|
(43)
|
(17)
|
(15)
|
|
Adjusted
noncontrolling interests from continuing
operations
|
$(89)
|
$(39)
|
$(50)
|
$(91)
|
$(41)
|
$(46)
|
$(46)
|
$(45)
|
Page
10/12
|
|
|
|
LINDE PLC AND SUBSIDIARIES
|
||||||||||||
|
APPENDIX
|
||||||||||||
|
NON-GAAP MEASURES AND RECONCILIATIONS
|
||||||||||||
|
(Millions of dollars, except per share data)
|
||||||||||||
|
(UNAUDITED)
|
|
Adjusted Income from Continuing Operations (b)
|
|
|
|
|
|
|
|
|
|
Reported
income from continuing operations
|
$1,029
|
$458
|
$571
|
$948
|
$507
|
$728
|
$513
|
$435
|
|
Add: Pension
settlement charge
|
-
|
-
|
-
|
46
|
5
|
30
|
8
|
38
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
(9)
|
(1)
|
(2)
|
(4)
|
(5)
|
|
Add: Cost
reduction programs and other charges
|
282
|
187
|
95
|
198
|
159
|
92
|
115
|
83
|
|
Less: Net gain
on sale of business
|
-
|
-
|
-
|
-
|
-
|
(108)
|
-
|
-
|
|
Add: Purchase
accounting impacts - Linde AG (c)
|
703
|
360
|
343
|
744
|
354
|
312
|
368
|
376
|
|
Total
adjustments
|
985
|
547
|
438
|
979
|
517
|
324
|
487
|
492
|
|
Adjusted
income from continuing operations
|
$2,014
|
$1,005
|
$1,009
|
$1,927
|
$1,024
|
$1,052
|
$1,000
|
$927
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted EPS from Continuing Operations
(b)
|
|
|
|
|
|
|
|
|
|
Reported
diluted EPS from continuing operations
|
$1.93
|
$0.87
|
$1.07
|
$1.73
|
$0.94
|
$1.34
|
$0.94
|
$0.79
|
|
Add: Pension
settlement charge
|
-
|
-
|
-
|
0.08
|
0.01
|
0.07
|
0.01
|
0.07
|
|
Add: Cost
reduction programs and other charges
|
0.53
|
0.35
|
0.18
|
0.37
|
0.29
|
0.17
|
0.22
|
0.15
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
(0.02)
|
-
|
(0.01)
|
(0.01)
|
(0.01)
|
|
Less: Net gain
on sale of business
|
-
|
-
|
-
|
-
|
-
|
(0.21)
|
-
|
-
|
|
Add: Purchase
accounting impacts - Linde AG
|
1.32
|
0.68
|
0.64
|
1.36
|
0.65
|
0.58
|
0.67
|
0.69
|
|
Total
adjustments
|
1.85
|
1.03
|
0.82
|
1.79
|
0.95
|
0.60
|
0.89
|
0.90
|
|
Adjusted
diluted EPS from continuing operations
|
$3.78
|
$1.90
|
$1.89
|
$3.52
|
$1.89
|
$1.94
|
$1.83
|
$1.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
percentage change
|
12%
|
(8)%
|
35%
|
|
$7.34
|
Full Year 2019
Adjusted diluted EPS
|
||
|
Adjusted
percentage change
|
7%
|
4%
|
12%
|
|
|
|
|
|
|
Adjusted Diluted EPS from Continuing Operations Guidance
(e)
|
Third Quarter 2020
|
Full Year 2020
|
||
|
|
Low End
|
High End
|
Low End
|
High End
|
|
2020 Adjusted
Guidance
|
$1.90
|
$1.95
|
$7.60
|
$7.80
|
|
Adjusted
percentage change versus 2019 adjusted diluted
EPS
|
(2)%
|
1%
|
4%
|
6%
|
|
Add: Estimated
currency headwind
|
3%
|
3%
|
3%
|
3%
|
|
Adjusted
percentage change excluding currency
|
1%
|
4%
|
7%
|
9%
|
|
Adjusted EBITDA and % of Sales
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$1,029
|
$458
|
$571
|
$948
|
$507
|
$728
|
$513
|
$435
|
|
Add:
Noncontrolling interests related to continuing
operations
|
60
|
25
|
35
|
59
|
27
|
3
|
29
|
30
|
|
Add: Net
pension and OPEB cost (benefit), excluding service
cost
|
(90)
|
(45)
|
(45)
|
(9)
|
(25)
|
2
|
(24)
|
15
|
|
Add: Interest
expense
|
42
|
18
|
24
|
33
|
8
|
(3)
|
10
|
23
|
|
Add: Income
taxes
|
329
|
164
|
165
|
309
|
162
|
298
|
169
|
140
|
|
Add:
Depreciation and amortization
|
2,266
|
1,124
|
1,142
|
2,418
|
1,162
|
1,095
|
1,195
|
1,223
|
|
EBITDA from
continuing operations
|
3,636
|
1,744
|
1,892
|
3,758
|
1,841
|
2,123
|
1,892
|
1,866
|
|
Less:
Merger-related divestitures (d)
|
-
|
-
|
-
|
(13)
|
(1)
|
(2)
|
(6)
|
(7)
|
|
Less: Net gain
on sale of business
|
-
|
-
|
-
|
-
|
-
|
(164)
|
-
|
-
|
|
Add: Cost
reduction programs and other charges
|
380
|
249
|
131
|
230
|
212
|
125
|
141
|
89
|
|
Add: Purchase
accounting impacts - Linde AG
|
49
|
23
|
26
|
38
|
14
|
17
|
14
|
24
|
|
Total
adjustments
|
429
|
272
|
157
|
255
|
225
|
(24)
|
149
|
106
|
|
Adjusted
EBITDA from continuing operations
|
$4,065
|
$2,016
|
$2,049
|
$4,013
|
$2,066
|
$2,099
|
$2,041
|
$1,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
sales
|
$13,116
|
$6,377
|
$6,739
|
$14,148
|
$7,080
|
$7,000
|
$7,204
|
$6,944
|
|
Adjusted
sales
|
$13,116
|
$6,377
|
$6,739
|
$14,093
|
$7,077
|
$6,993
|
$7,179
|
$6,914
|
|
% of
sales
|
|
|
|
|
|
|
|
|
|
EBITDA from
continuing operations
|
27.7%
|
27.3%
|
28.1%
|
26.6%
|
26.0%
|
30.3%
|
26.3%
|
26.9%
|
|
Adjusted
EBITDA from continuing operations
|
31.0%
|
31.6%
|
30.4%
|
28.5%
|
29.2%
|
30.0%
|
28.4%
|
28.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. 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) To adjust
for the results of Praxair's merger-related
divestitures.
|
|||||||||||
|
|
(e) We are
providing adjusted earnings per share ("EPS") guidance for 2020.
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.
|
|||||||||||
Page
11/12
|
|
|
|
LINDE PLC AND SUBSIDIARIES
|
||||||||||||
|
APPENDIX
|
||||||||||||
|
NON-GAAP MEASURES AND RECONCILIATIONS
|
||||||||||||
|
(Millions of dollars)
|
||||||||||||
|
(UNAUDITED)
|
|
|
2020
|
2019
|
2018
|
||||
|
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
|
|
|
|
|
|
|
|
|
|
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
|
$17,480
|
$16,875
|
$13,956
|
$13,201
|
$13,957
|
$14,146
|
$15,296
|
|
Less: Cash and
cash equivalents
|
(4,941)
|
(4,014)
|
(2,700)
|
(2,120)
|
(2,686)
|
(5,791)
|
(4,466)
|
|
Net
debt
|
12,539
|
12,861
|
11,256
|
11,081
|
11,271
|
8,355
|
10,830
|
|
Less: Purchase
accounting impacts - Linde AG
|
(150)
|
(170)
|
(195)
|
(211)
|
(243)
|
(262)
|
(291)
|
|
Adjusted net
debt
|
$12,389
|
$12,691
|
$11,061
|
$10,870
|
$11,028
|
$8,093
|
$10,539
|
|
Less: Net
assets held for sale
|
(2)
|
(115)
|
(123)
|
(223)
|
(272)
|
(1,629)
|
(4,730)
|
|
Adjusted net
debt less net assets held for sale
|
$12,387
|
$12,576
|
$10,938
|
$10,647
|
$10,756
|
$6,464
|
$5,809
|
|
|
|
|
|
|
|
|
|
|
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
|
$458
|
$571
|
$507
|
$728
|
$513
|
$435
|
$2,870
|
|
Add:
noncontrolling interests from continuing
operations
|
25
|
35
|
27
|
3
|
29
|
30
|
(33)
|
|
Add: interest
expense - net
|
18
|
24
|
8
|
(3)
|
10
|
23
|
72
|
|
Less: tax
benefit on interest expense - net *
|
(5)
|
(6)
|
(2)
|
1
|
(3)
|
(6)
|
(18)
|
|
Reported NOPAT
|
$496
|
$624
|
$540
|
$729
|
$549
|
$482
|
$2,891
|
|
|
|
|
|
|
|
|
|
|
Adjusted
income from continuing operations
|
$1,005
|
$1,009
|
$1,024
|
$1,052
|
$1,000
|
$927
|
$841
|
|
Add: adjusted
noncontrolling interests from continuing
operations
|
39
|
50
|
41
|
46
|
46
|
45
|
40
|
|
Add: adjusted
interest expense - net
|
40
|
46
|
30
|
19
|
35
|
50
|
50
|
|
Less: tax
benefit on interest expense - net *
|
(10)
|
(12)
|
(7)
|
(5)
|
(9)
|
(13)
|
(13)
|
|
Adjusted NOPAT
|
$1,074
|
$1,093
|
$1,088
|
$1,112
|
$1,072
|
$1,009
|
$919
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4-quarter
trailing reported NOPAT
|
$2,389
|
$2,442
|
$2,300
|
|
|
|
|
|
4-quarter
trailing adjusted NOPAT
|
$4,367
|
$4,365
|
$4,281
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity and
redeemable noncontrolling interests:
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
$13
|
$92
|
$113
|
$14
|
$15
|
$15
|
$16
|
|
Linde plc
shareholders' equity
|
45,537
|
44,776
|
49,074
|
48,953
|
50,564
|
51,175
|
51,596
|
|
Noncontrolling
interests
|
2,387
|
2,375
|
2,448
|
2,341
|
2,315
|
5,457
|
5,484
|
|
Total equity
and redeemable noncontrolling interests
|
$47,937
|
$47,243
|
$51,635
|
$51,308
|
$52,894
|
$56,647
|
$57,096
|
|
|
|
|
|
|
|
|
|
|
Reported
capital
|
$60,474
|
$59,989
|
$62,768
|
$62,166
|
$63,893
|
$63,373
|
$63,196
|
|
|
|
|
|
|
|
|
|
|
Total equity
and redeemable noncontrolling interests
|
$47,937
|
$47,243
|
$51,635
|
$51,308
|
$52,894
|
$56,647
|
$57,096
|
|
Add: Adjusted
net debt less net assets held for sale
|
12,387
|
12,576
|
10,938
|
10,647
|
10,756
|
6,464
|
5,809
|
|
Less: Linde AG
Goodwill (a)
|
24,256
|
24,256
|
24,256
|
24,197
|
24,197
|
24,197
|
24,146
|
|
Less: Linde AG
Indefinite lived intangibles (a)
|
1,868
|
1,868
|
1,868
|
1,868
|
1,868
|
1,868
|
1,648
|
|
Adjusted
capital
|
$34,200
|
$33,695
|
$36,449
|
$35,890
|
$37,585
|
$37,046
|
$37,111
|
|
|
|
|
|
|
|
|
|
|
(a)
Represent balance sheet purchase accounting impacts of
non-amortizing assets related to the Linde AG merger.
|
|||||||
|
|
|
|
|
|
|
|
|
|
Ending capital
(see above)
|
$60,474
|
$59,989
|
$62,768
|
|
|
|
|
|
5-quarter
average ending capital
|
$61,858
|
$62,438
|
$63,079
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending
adjusted capital (see above)
|
$34,200
|
$33,695
|
$36,449
|
|
|
|
|
|
5-quarter
average ending adjusted capital
|
$35,564
|
$36,133
|
$36,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
After-tax ROC (4 quarter reported NOPAT / 5-quarter average ending
capital)
|
3.9%
|
3.9%
|
3.6%
|
|
|
|
|
|
Adjusted after-tax ROC (4 quarter trailing adjusted NOPAT /
5-quarter average ending adjusted capital)
|
12.3%
|
12.1%
|
11.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Tax benefit on
interest expense - net is generally presented using the reported
effective rate.
|
|||||||
Page
12/12