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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


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

For the quarterly period ended March 31, ~~2022~~2023


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

For the transition period from to


Commission file number			001-38730

LINDE PLC

(Exact name of registrant as specified in its charter)


Ireland						98-1448883
(State or other jurisdiction of incorporation)						(I.R.S. Employer Identification No.)

10 Riverview Drive,						Forge
Danbury, Connecticut						43 Church Street West
United States 06810						Woking, Surrey GU21 6HT
						United Kingdom

(Address of principal executive offices) (Zip Code)
(203) 837 - 2000						+44 14 83 242200
(Registrant's telephone number, including area code)

N/A

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

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

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Ordinary shares (€0.001 nominal value per share)

LIN

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

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

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At March 31, ~~2022, 503,281,693~~2023, 490,251,988 ordinary shares (€0.001 par value) of the Registrant were outstanding.

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INDEX

PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited)

	Consolidated Statements of Income - Quarters Ended March 31, ~~2022~~2023 and ~~2021~~ 2022	4


	Consolidated Statements of Comprehensive Income - Quarters Ended March 31, ~~2022~~2023 and ~~2021~~ 2022	5

	Condensed Consolidated Balance Sheets - March 31, ~~2022~~2023 and December 31, ~~2021~~2022	6

	Condensed Consolidated Statements of Cash Flows - ~~Three~~Thre e Months Ended March ~~31, 2022~~ 3 1 , 202 3 and ~~2021~~202 2	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2423

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	41

Item 4.	Controls and Procedures	41

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	42

Item 1A.	Risk Factors	42

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	42

Item 3.	Defaults Upon Senior Securities	42

Item 4.	Mine Safety Disclosures	42

Item 5.	Other Information	42

Item 6.	Exhibits	43

Signature		44

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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 future results or circumstances to differ materially from 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, ~~2021~~2022 filed with the SEC on February 28, ~~2022,~~2023, 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

CONSOLIDATED STATEMENTS OF INCOME

(Millions of dollars, except per share data)

(UNAUDITED)


		Quarter Ended March 31,					Quarter Ended March 31,
		2022		2021			2023		2022
Sales	Sales	$	8,211	$	7,243	Sales	$	8,193	$	8,211
Cost of sales, exclusive of depreciation and amortization	Cost of sales, exclusive of depreciation and amortization	4,798		4,054		Cost of sales, exclusive of depreciation and amortization	4,431		4,798
Selling, general and administrative	Selling, general and administrative	802		787		Selling, general and administrative	822		802
Depreciation and amortization	Depreciation and amortization	1,112		1,166		Depreciation and amortization	948		1,112
Research and development	Research and development	35		35		Research and development	36		35
Cost reduction programs and other charges		(4)		(8)
Other charges						Other charges	18		(4)

Other income (expense) - net	Other income (expense) - net	12		4		Other income (expense) - net	(5)		12
Operating Profit	Operating Profit	1,480		1,213		Operating Profit	1,933		1,480
Interest expense - net	Interest expense - net	9		20		Interest expense - net	37		9
Net pension and OPEB cost (benefit), excluding service cost	Net pension and OPEB cost (benefit), excluding service cost	(64)		(49)		Net pension and OPEB cost (benefit), excluding service cost	(45)		(64)
Income From Continuing Operations Before Income Taxes and Equity Investments		1,535		1,242
Income taxes on continuing operations		369		268
Income From Continuing Operations Before Equity Investments		1,166		974
Income Before Income Taxes and Equity Investments						Income Before Income Taxes and Equity Investments	1,941		1,535
Income taxes						Income taxes	430		369
Income Before Equity Investments						Income Before Equity Investments	1,511		1,166
Income from equity investments	Income from equity investments	44		43		Income from equity investments	41		44
Income From Continuing Operations (Including Noncontrolling Interests)		1,210		1,017
Income from discontinued operations, net of tax		—		1

Net Income (Including Noncontrolling Interests)	Net Income (Including Noncontrolling Interests)	1,210		1,018		Net Income (Including Noncontrolling Interests)	1,552		1,210
Less: noncontrolling interests from continuing operations		(36)		(38)
Less: noncontrolling interests						Less: noncontrolling interests	(36)		(36)
Net Income – Linde plc	Net Income – Linde plc	$	1,174	$	980	Net Income – Linde plc	$	1,516	$	1,174

Net Income – Linde plc
Income from continuing operations		$	1,174	$	979
Income from discontinued operations		$	—	$	1

Per Share Data – Linde plc Shareholders	Per Share Data – Linde plc Shareholders					Per Share Data – Linde plc Shareholders
Basic earnings per share from continuing operations		$	2.31	$	1.87
Basic earnings per share from discontinued operations		—		—

Basic earnings per share	Basic earnings per share	$	2.31	$	1.87	Basic earnings per share	$	3.08	$	2.31
Diluted earnings per share from continuing operations		$	2.30	$	1.86
Diluted earnings per share from discontinued operations		—		—

Diluted earnings per share	Diluted earnings per share	$	2.30	$	1.86	Diluted earnings per share	$	3.06	$	2.30

Weighted Average Shares Outstanding (000’s):	Weighted Average Shares Outstanding (000’s):					Weighted Average Shares Outstanding (000’s):
Basic shares outstanding	Basic shares outstanding	507,152		522,459		Basic shares outstanding	491,817		507,152
Diluted shares outstanding	Diluted shares outstanding	511,410		526,927		Diluted shares outstanding	495,676		511,410

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

~~Table of Contents~~

~~LINDE PLC AND SUBSIDIARIES~~

~~CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME~~

~~(Millions of dollars)~~

~~(UNAUDITED)~~

Quarter Ended March 31,
2022 2021
NET INCOME (INCLUDING NONCONTROLLING INTERESTS) $ 1,210 $ 1,018
OTHER COMPREHENSIVE INCOME (LOSS)
Translation adjustments:
Foreign currency translation adjustments 60 (657)
Reclassification to net income — (52)
Income taxes (12) (6)
Translation adjustments 48 (715)
Funded status - retirement obligations (Note 8):
Retirement program remeasurements 55 20
Reclassifications to net income 19 43
Income taxes (21) (23)
Funded status - retirement obligations 53 40
Derivative instruments (Note 5):
Current unrealized gain (loss) 18 21
Reclassifications to net income (23) (2)
Income taxes 2 (5)
Derivative instruments (3) 14
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) 98 (661)
COMPREHENSIVE INCOME (LOSS) (INCLUDING NONCONTROLLING INTERESTS) 1,308 357
Less: noncontrolling interests (24) (32)
COMPREHENSIVE INCOME (LOSS) - LINDE PLC $ 1,284 $ 325

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

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LINDE PLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Millions of dollars)

(UNAUDITED)


	Quarter Ended March 31,
	2023		2022
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)	$	1,552	$	1,210

OTHER COMPREHENSIVE INCOME (LOSS)
Translation adjustments:
Foreign currency translation adjustments	229		60

Income taxes	—		(12)
Translation adjustments	229		48
Funded status - retirement obligations (Note 8):
Retirement program remeasurements	(249)		55
Reclassifications to net income	(8)		19
Income taxes	63		(21)
Funded status - retirement obligations	(194)		53
Derivative instruments (Note 5):
Current unrealized gain (loss)	(75)		18
Reclassifications to net income	(6)		(23)
Income taxes	16		2
Derivative instruments	(65)		(3)





TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	(30)		98

COMPREHENSIVE INCOME (LOSS) (INCLUDING NONCONTROLLING INTERESTS)	1,522		1,308
Less: noncontrolling interests	(34)		(24)
COMPREHENSIVE INCOME (LOSS) - LINDE PLC	$	1,488	$	1,284

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

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LINDE PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Millions of dollars)

(UNAUDITED)


		March 31, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Assets	Assets					Assets
Cash and cash equivalents	Cash and cash equivalents	$	4,464	$	2,823	Cash and cash equivalents	$	4,962	$	5,436
Accounts receivable - net	Accounts receivable - net	4,845		4,499		Accounts receivable - net	4,753		4,559
Contract assets	Contract assets	100		134		Contract assets	175		124
Inventories	Inventories	1,766		1,733		Inventories	2,054		1,978
Prepaid and other current assets	Prepaid and other current assets	1,082		970		Prepaid and other current assets	960		950
Total Current Assets	Total Current Assets	12,257		10,159		Total Current Assets	12,904		13,047
Property, plant and equipment - net	Property, plant and equipment - net	25,595		26,003		Property, plant and equipment - net	23,796		23,548

Goodwill	Goodwill	26,822		27,038		Goodwill	26,418		25,817
Other intangible assets - net	Other intangible assets - net	13,506		13,802		Other intangible assets - net	12,638		12,420
Other long-term assets	Other long-term assets	4,587		4,603		Other long-term assets	4,552		4,826
Total Assets	Total Assets	$	82,767	$	81,605	Total Assets	$	80,308	$	79,658
Liabilities and equity	Liabilities and equity					Liabilities and equity
Accounts payable	Accounts payable	$	3,387	$	3,503	Accounts payable	$	2,941	$	2,995
Short-term debt	Short-term debt	2,549		1,163		Short-term debt	5,337		4,117
Current portion of long-term debt	Current portion of long-term debt	1,074		1,709		Current portion of long-term debt	1,696		1,599
Contract liabilities	Contract liabilities	3,035		2,940		Contract liabilities	3,070		3,073

Other current liabilities	Other current liabilities	4,461		4,328		Other current liabilities	4,741		4,695
Total Current Liabilities	Total Current Liabilities	14,506		13,643		Total Current Liabilities	17,785		16,479
Long-term debt	Long-term debt	12,833		11,335		Long-term debt	11,744		12,198
Other long-term liabilities	Other long-term liabilities	11,038		11,186		Other long-term liabilities	9,443		9,594

Total Liabilities	Total Liabilities	38,377		36,164		Total Liabilities	38,972		38,271
Redeemable noncontrolling interests	Redeemable noncontrolling interests	13		13		Redeemable noncontrolling interests	13		13
Linde plc Shareholders’ Equity:
Ordinary shares,€0.001 par value, authorized 1,750,000,000 shares, 2022 issued: 552,012,862 ordinary shares; 2021 issued: 552,012,862 ordinary shares		1		1
Linde plc Shareholders’ Equity (Note 11):						Linde plc Shareholders’ Equity (Note 11):
Ordinary shares,€0.001 par value, authorized 1,750,000,000 shares, 2023 issued: 490,766,972 ordinary shares; 2022 issued: 552,012,862 ordinary shares						Ordinary shares,€0.001 par value, authorized 1,750,000,000 shares, 2023 issued: 490,766,972 ordinary shares; 2022 issued: 552,012,862 ordinary shares	—		1
Additional paid-in capital	Additional paid-in capital	39,972		40,180		Additional paid-in capital	39,859		40,005
Retained earnings	Retained earnings	19,387		18,710		Retained earnings	6,092		20,541
Accumulated other comprehensive income (loss) (Note 11)		(4,938)		(5,048)
Less: Treasury shares, at cost (2022 – 48,731,169 shares and 2021 – 43,331,983 shares)		(11,459)		(9,808)
Accumulated other comprehensive income (loss)						Accumulated other comprehensive income (loss)	(5,810)		(5,782)
Less: Treasury shares, at cost (2023 – 514,984 shares and 2022 – 59,555,235 shares)						Less: Treasury shares, at cost (2023 – 514,984 shares and 2022 – 59,555,235 shares)	(171)		(14,737)
Total Linde plc Shareholders’ Equity	Total Linde plc Shareholders’ Equity	42,963		44,035		Total Linde plc Shareholders’ Equity	39,970		40,028
Noncontrolling interests	Noncontrolling interests	1,414		1,393		Noncontrolling interests	1,353		1,346
Total Equity	Total Equity	44,377		45,428		Total Equity	41,323		41,374
Total Liabilities and Equity	Total Liabilities and Equity	$	82,767	$	81,605	Total Liabilities and Equity	$	80,308	$	79,658

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

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LINDE PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Millions of dollars)

(UNAUDITED)


		Three Months Ended March 31,					Three Months Ended March 31,
		2022		2021			2023		2022
Increase (Decrease) in Cash and Cash Equivalents	Increase (Decrease) in Cash and Cash Equivalents					Increase (Decrease) in Cash and Cash Equivalents
Operations	Operations					Operations
Net income - Linde plc	Net income - Linde plc	$	1,174	$	980	Net income - Linde plc	$	1,516	$	1,174
Less: Income from discontinued operations, net of tax and noncontrolling interests		—		(1)
Add: Noncontrolling interests from continuing operations		36		38
Income from continuing operations (including noncontrolling interests)		1,210		1,017

Add: Noncontrolling interests						Add: Noncontrolling interests	36		36
Net Income (including noncontrolling interests)						Net Income (including noncontrolling interests)	1,552		1,210
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:
Cost reduction programs and other charges, net of payments		(34)		(76)
Other charges, net of payments						Other charges, net of payments	(61)		(34)

Depreciation and amortization	Depreciation and amortization	1,112		1,166		Depreciation and amortization	948		1,112
Deferred income taxes	Deferred income taxes	(59)		(65)		Deferred income taxes	4		(59)
Share-based compensation	Share-based compensation	34		29		Share-based compensation	30		34
Working capital:	Working capital:					Working capital:
Accounts receivable	Accounts receivable	(340)		(178)		Accounts receivable	(131)		(340)
Inventory	Inventory	(35)		(60)		Inventory	(59)		(35)
Prepaid and other current assets	Prepaid and other current assets	(107)		(64)		Prepaid and other current assets	(5)		(107)
Payables and accruals	Payables and accruals	51		69		Payables and accruals	(64)		51
Contract assets and liabilities, net	Contract assets and liabilities, net	192		191		Contract assets and liabilities, net	(66)		192
Pension contributions	Pension contributions	(13)		(12)		Pension contributions	(10)		(13)
Long-term assets, liabilities and other	Long-term assets, liabilities and other	(11)		92		Long-term assets, liabilities and other	(230)		(11)
Net cash provided by operating activities		2,000		2,109
Net cash provided by (used by) operating activities						Net cash provided by (used by) operating activities	1,908		2,000
Investing	Investing					Investing
Capital expenditures	Capital expenditures	(649)		(762)		Capital expenditures	(829)		(649)
Acquisitions, net of cash acquired	Acquisitions, net of cash acquired	(43)		(10)		Acquisitions, net of cash acquired	(808)		(43)
Divestitures and asset sales, net of cash divested		27		21
Divestitures, net of cash divested and asset sales						Divestitures, net of cash divested and asset sales	3		27
Net cash provided by (used for) investing activities	Net cash provided by (used for) investing activities	(665)		(751)		Net cash provided by (used for) investing activities	(1,634)		(665)
Financing	Financing					Financing
Short-term debt borrowings (repayments) - net	Short-term debt borrowings (repayments) - net	1,416		704		Short-term debt borrowings (repayments) - net	1,199		1,416
Long-term debt borrowings	Long-term debt borrowings	2,296		34		Long-term debt borrowings	60		2,296
Long-term debt repayments	Long-term debt repayments	(1,166)		(57)		Long-term debt repayments	(542)		(1,166)
Issuances of ordinary shares	Issuances of ordinary shares	10		17		Issuances of ordinary shares	13		10
Purchases of ordinary shares	Purchases of ordinary shares	(1,719)		(868)		Purchases of ordinary shares	(859)		(1,719)
Cash dividends - Linde plc shareholders	Cash dividends - Linde plc shareholders	(592)		(553)		Cash dividends - Linde plc shareholders	(623)		(592)

Noncontrolling interest transactions and other	Noncontrolling interest transactions and other	(1)		(247)		Noncontrolling interest transactions and other	(12)		(1)
Net cash provided by (used for) financing activities	Net cash provided by (used for) financing activities	244		(970)		Net cash provided by (used for) financing activities	(764)		244

Effect of exchange rate changes on cash and cash equivalents	Effect of exchange rate changes on cash and cash equivalents	62		(46)		Effect of exchange rate changes on cash and cash equivalents	16		62
Change in cash and cash equivalents	Change in cash and cash equivalents	1,641		342		Change in cash and cash equivalents	(474)		1,641
Cash and cash equivalents, beginning-of-period	Cash and cash equivalents, beginning-of-period	2,823		3,754		Cash and cash equivalents, beginning-of-period	5,436		2,823

Cash and cash equivalents, end-of-period	Cash and cash equivalents, end-of-period	$	4,464	$	4,096	Cash and cash equivalents, end-of-period	$	4,962	$	4,464

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

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INDEX TO NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Notes to Condensed Consolidated Financial Statements - Linde plc and Subsidiaries (Unaudited)

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1. Summary of Significant Accounting Policies

Linde plc ("Linde" or "the company") is an incorporated public limited company formed under the laws of Ireland. Linde’s registered office is located at Ten Earlsfort Terrace, Dublin 2, D02 T380 Ireland. Linde’s principal executive offices are located at Forge, 43 Church Street West, Woking, Surrey GU21 6HT, United Kingdom and 10 Riverview Drive, Danbury, Connecticut, 06810, United States.

On January 18, 2023, shareholders approved the company’s proposal for an intercompany reorganization that resulted in the delisting of its ordinary shares from the Frankfurt Stock Exchange, on March 1, 2023, after the completion of legal and regulatory approvals.

In connection with the closing of the intercompany reorganization on March 1, 2023, Linde shareholders automatically received one share of the new holding company, listed on the New York Stock Exchange, in exchange for each share of Linde plc that was previously owned. The new holding company is also named “Linde plc” and trades under the existing ticker LIN (see Note 11).

Presentation of Condensed Consolidated Financial Statements - In the opinion of Linde management, the accompanying condensed consolidated financial statements include all adjustments necessary for a fair presentation of the results for the interim periods presented and such adjustments are of a normal recurring nature. The accompanying condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements of Linde plc and subsidiaries in Linde's ~~2021~~2022 Annual Report on Form 10-K. There have been no material changes to the company’s significant accounting policies during ~~2022.~~2023.

Reclassifications – Certain prior periods' amounts have been reclassified to conform to the current year’s presentation.

2. ~~Cost Reduction Programs and~~ Other Charges

~~2022~~2023 Other Charges

~~Cost reduction programs~~Other charges were $18 million for the three months ended March 31, 2023 and ~~other~~primarily related to costs incurred due to the intercompany reorganization. Other charges had an associated net income tax benefit of $45 million primarily comprised of a benefit of $124 million related to the resolution of a U.S. income tax audit, partially offset by an accrual of $85 million for the potential settlement of an international income tax matter.

The following table summarizes the activities related to the company's pre-tax Other charges for the three months ended March 31, 2023:


(millions of dollars)	Severance costs		Other cost reduction charges		Total cost reduction program related charges		Merger-related and other charges		Total other charges




Balance, December 31, 2022	$	281	$	27	$	308	$	12	$	320
2023 Other charges	—		—		—		18		18
Less: Cash payments / receipts	(79)		—		(79)		—		(79)
Less: Non-cash charges	—		—		—		—		—
Foreign currency translation and other	(1)		1		—		(2)		(2)
Balance, March 31, 2023	$	201	$	28	$	229	$	28	$	257

2022 Other Charges

Other charges were a net benefit of ~~$4 millionfor the~~ ~~three months ended March 31, 2022~~ ~~($1 million, after tax).~~ ~~Total cost reduction program related charges were~~ $4 million for the three months ended March 31, 2022, ($1 million after tax). Total cost reduction program related charges were $4 million ($4 million after tax), for the three months ended March 31, 2022, primarily related to severance in the APAC segment. Merger-related costs and other charges were a benefit of $8 million for the three months ended March 31, 2022, (benefit of $5 million after tax), primarily related to a gain on sale of an interest in a joint venture.

~~The following table summarizes the activities related to the company's cost reduction related charges for the three months ended March 31, 2022:~~

(millions of dollars) Severance costs Other cost reduction charges Total cost reduction program related charges Merger-related and other charges Total
Balance, December 31, 2021 $ 384 $ 38 $ 422 $ 31 $ 453
2022 Cost Reduction Programs and Other Charges 4 — 4 (8) (4)
Less: Cash payments / receipts (34) (1) (35) 5 (30)
Foreign currency translation and other (8) (3) (11) — (11)
Balance, March 31, 2022 $ 346 $ 34 $ 380 $ 28 $ 408

~~2021 Charges~~

Cost reduction programs and other charges were a net benefit of $8 million for the three months ended March 31, 2021, ($28 million after tax). Total cost reduction program related charges were $44 million ($34 million after tax), for the three months ended March 31, 2021, which consisted primarily of severance charges of $26 million and other charges of $18 million related to the execution of the company's synergistic actions. Merger-related and other charges were a benefit of $52 million for the three months ended March 31, 2021 ($62 million after tax), primarily due to a $52 million gain triggered by a joint venture deconsolidation in the APAC segment and other tax adjustments.

Classification in the condensed consolidated financial statements

The costs are shown within operating profit in a separate line item on the consolidated statements of income. On the condensed consolidated statements of cash flows, the impact of these costs, net of cash payments, is shown as an adjustment to reconcile net income to net cash provided by operating activities. In Note 10 Segments, Linde excluded these costs from its management

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definition of segment operating profit; a reconciliation of segment operating profit to consolidated operating profit is shown within the segment operating profit table.

~~Table of Contents~~

3. Supplemental Information

Receivables

Linde applies loss rates that are lifetime expected credit losses at initial recognition of the receivables. These expected loss rates are based on an analysis of the actual historical default rates for each business, taking regional circumstances into account. If necessary, these historical default rates are adjusted to reflect the impact of current changes in the macroeconomic environment using forward-looking information. The loss rates are also evaluated based on the expectations of the responsible management team regarding the collectability of the receivables. Gross trade receivables aged less than one year were ~~$4,808~~$4,691 million and ~~$4,425~~$4,498 million at March 31, ~~2022~~2023 and December 31, ~~2021~~2022, respectively, and gross receivables aged greater than one year were ~~$278~~$333 million and ~~$329~~$321 million at March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively. Other receivables were ~~$158~~$155 million and ~~$150~~$145 million at March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively. Receivables aged greater than one year are generally fully reserved unless specific circumstances warrant exceptions, such as those backed by federal governments.

Accounts receivable net of reserves were ~~$4,845~~$4,753 million at March 31, ~~2022~~2023 and ~~$4,499~~$4,559 million at December 31, ~~2021.~~2022. Allowances for expected credit losses were ~~$399~~$426 million at March 31, ~~2022~~2023 and $405 million at December 31, ~~2021.~~2022. Provisions for expected credit losses were ~~$35~~$53 million and ~~$39~~$35 million for the three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, respectively. The allowance activity in the three months ended March 31, ~~2022~~2023 and ~~2021~~2022 related to write-offs of uncollectible amounts, net of recoveries and currency movements is not material.

Inventories

The following is a summary of Linde's consolidated inventories:


(Millions of dollars)	(Millions of dollars)	March 31, 2022		December 31, 2021		(Millions of dollars)	March 31, 2023		December 31, 2022
Inventories	Inventories					Inventories
Raw materials and supplies	Raw materials and supplies	$	440	$	399	Raw materials and supplies	$	569	$	567
Work in process	Work in process	318		334		Work in process	391		368
Finished goods	Finished goods	1,008		1,000		Finished goods	1,094		1,043
Total inventories	Total inventories	$	1,766	$	1,733	Total inventories	$	2,054	$	1,978

Table of Contents

4. Debt

The following is a summary of Linde's outstanding debt at March 31, ~~2022~~2023 and December 31, ~~2021:~~2022:


(Millions of dollars)	(Millions of dollars)	March 31, 2022		December 31, 2021		(Millions of dollars)	March 31, 2023		December 31, 2022
SHORT-TERM	SHORT-TERM					SHORT-TERM
Commercial paper	Commercial paper	$	2,249	$	278	Commercial paper	$	5,063	$	3,926
Other bank borrowings (primarily non U.S.)	Other bank borrowings (primarily non U.S.)	300		885		Other bank borrowings (primarily non U.S.)	274		191
Total short-term debt	Total short-term debt	2,549		1,163		Total short-term debt	5,337		4,117
LONG-TERM (a)	LONG-TERM (a)					LONG-TERM (a)
(U.S. dollar denominated unless otherwise noted)	(U.S. dollar denominated unless otherwise noted)					(U.S. dollar denominated unless otherwise noted)
0.250% Euro denominated notes due 2022 (b) (c)		—		1,137
2.20% Notes due 2022		500		500
2.70% Notes due 2023		500		500
2.70% Notes due 2023 (c)						2.70% Notes due 2023 (c)	—		501
2.00% Euro denominated notes due 2023 (b)	2.00% Euro denominated notes due 2023 (b)	735		759		2.00% Euro denominated notes due 2023 (b)	706		699
5.875% GBP denominated notes due 2023 (b)	5.875% GBP denominated notes due 2023 (b)	415		432		5.875% GBP denominated notes due 2023 (b)	371		367
1.20% Euro denominated notes due 2024	1.20% Euro denominated notes due 2024	608		625		1.20% Euro denominated notes due 2024	596		588
1.875% Euro denominated notes due 2024 (b)	1.875% Euro denominated notes due 2024 (b)	342		356		1.875% Euro denominated notes due 2024 (b)	327		324
4.800% Notes due 2024						4.800% Notes due 2024	299		299
4.700% Notes due 2025						4.700% Notes due 2025	598		598
2.65% Notes due 2025	2.65% Notes due 2025	399		399		2.65% Notes due 2025	399		400
1.625% Euro denominated notes due 2025	1.625% Euro denominated notes due 2025	550		565		1.625% Euro denominated notes due 2025	539		533
0.00% Euro denominated notes due 2026	0.00% Euro denominated notes due 2026	777		799		0.00% Euro denominated notes due 2026	761		751
3.20% Notes due 2026	3.20% Notes due 2026	725		725		3.20% Notes due 2026	725		724
3.434% Notes due 2026	3.434% Notes due 2026	198		197		3.434% Notes due 2026	198		198
1.652% Euro denominated notes due 2027	1.652% Euro denominated notes due 2027	91		94		1.652% Euro denominated notes due 2027	89		88
0.250% Euro denominated notes due 2027		828		850
0.25% Euro denominated notes due 2027						0.25% Euro denominated notes due 2027	812		802
1.00% Euro denominated notes due 2027 ~~(d)~~	1.00% Euro denominated notes due 2027 ~~(d)~~	551		—		1.00% Euro denominated notes due 2027 ~~(d)~~	543		536
1.00% Euro denominated notes due 2028 (b)	1.00% Euro denominated notes due 2028 (b)	824		879		1.00% Euro denominated notes due 2028 (b)	765		749
1.10% Notes due 2030	1.10% Notes due 2030	696		696		1.10% Notes due 2030	696		696
1.90% Euro denominated notes due 2030	1.90% Euro denominated notes due 2030	115		118		1.90% Euro denominated notes due 2030	112		111
1.375% Euro denominated notes due 2031 ~~(d)~~	1.375% Euro denominated notes due 2031 ~~(d)~~	821		—		1.375% Euro denominated notes due 2031 ~~(d)~~	814		803
0.550% Euro denominated notes due 2032		824		847
0.55% Euro denominated notes due 2032						0.55% Euro denominated notes due 2032	808		798
0.375% Euro denominated notes due 2033	0.375% Euro denominated notes due 2033	550		565		0.375% Euro denominated notes due 2033	536		529
1.625% Euro denominated notes due 2035 ~~(d)~~	1.625% Euro denominated notes due 2035 ~~(d)~~	874		—		1.625% Euro denominated notes due 2035 ~~(d)~~	860		849
3.55% Notes due 2042	3.55% Notes due 2042	664		664		3.55% Notes due 2042	664		665
2.00% Notes due 2050	2.00% Notes due 2050	296		296		2.00% Notes due 2050	296		296
1.00% Euro denominated notes due 2051	1.00% Euro denominated notes due 2051	767		788		1.00% Euro denominated notes due 2051	741		731
Non U.S borrowings		247		243
Non U.S. borrowings						Non U.S. borrowings	175		152
Other	Other	10		10		Other	10		10
		13,907		13,044			13,440		13,797
Less: current portion of long-term debt	Less: current portion of long-term debt	(1,074)		(1,709)		Less: current portion of long-term debt	(1,696)		(1,599)
Total long-term debt	Total long-term debt	12,833		11,335		Total long-term debt	11,744		12,198
Total debt	Total debt	$	16,456	$	14,207	Total debt	$	18,777	$	17,914

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

(b)March 31, ~~2022~~2023 and December 31, ~~2021~~2022 included a cumulative $4$47 million and ~~$42~~$56 million adjustment to carrying value, respectively, related to hedge accounting of interest rate swaps. Refer to Note 5.

(c)In ~~January 2022,~~February 2023, Linde repaid ~~€1.0 billion~~$500 million of ~~0.250%~~2.70% notes that became due.

~~(d)~~
~~In March 2022, Linde issued €500 million of 1.000% notes due 2027, €750 million of 1.375% notes due 2031, and €800 million of 1.625% notes due 2035.~~

~~Table of Contents~~

The company maintains a $5 billion and a $1.5 billion unsecured revolving credit agreement with a syndicate of banking institutions that ~~expires March 26, 2024.~~expire December 7, 2027 and December 7, 2023, respectively. There are no financial maintenance covenants contained within the credit ~~agreement.~~agreements. No borrowings were outstanding under the credit ~~agreement~~agreements as of March 31, ~~2022.~~2023.

5. Financial Instruments

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

There are 3three types of derivatives that the company enters into: (i) those relating to fair-value exposures, (ii) those relating to cash-flow exposures, and (iii) those relating to foreign currency net investment exposures. Fair-value exposures relate to recognized assets or liabilities, and firm commitments; cash-flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities, or forecasted transactions; and net investment exposures relate to the impact of foreign currency exchange rate changes on the carrying value of net assets denominated in foreign currencies.

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

Counterparties to Linde's derivatives are major banking institutions with credit ratings of investment grade or better. The company has Credit Support Annexes ("CSAs") in place for certain entities with ~~its~~their principal counterparties to minimize potential default risk and to mitigate counterparty risk. Under the CSAs, the fair values of derivatives for the purpose of interest rate and currency management are collateralized with cash on a regular basis. As of March 31, ~~2022,~~2023, the impact of such collateral posting arrangements on the fair value of derivatives was insignificant. Management believes the risk of incurring losses on derivative contracts related to credit risk is remote and any losses would be immaterial.

The following table is a summary of the notional amount and fair value of derivatives outstanding at March 31, ~~2022~~2023 and December 31, ~~2021~~2022 for consolidated subsidiaries:


						Fair Value													Fair Value
		Notional Amounts				Assets (a)				Liabilities (a)					Notional Amounts				Assets (a)				Liabilities (a)
(Millions of dollars)	(Millions of dollars)	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021		(Millions of dollars)	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Derivatives Not Designated as Hedging Instruments:	Derivatives Not Designated as Hedging Instruments:													Derivatives Not Designated as Hedging Instruments:
Currency contracts:	Currency contracts:													Currency contracts:
Balance sheet items	Balance sheet items	$	4,460	$	4,427	$	25	$	22	$	19	$	17	Balance sheet items	$	3,439	$	3,056	$	12	$	13	$	2	$	7
Forecasted transactions	Forecasted transactions	415		537		7		6		11		11		Forecasted transactions	366		449		9		9		5		9
Cross-currency swaps	Cross-currency swaps	140		148		18		21		5		4		Cross-currency swaps	11		42		—		—		2		1
Total	Total	$	5,015	$	5,112	$	50	$	49	$	35	$	32	Total	$	3,816	$	3,547	$	21	$	22	$	9	$	17
Derivatives Designated as Hedging Instruments:	Derivatives Designated as Hedging Instruments:													Derivatives Designated as Hedging Instruments:

Currency contracts:	Currency contracts:													Currency contracts:

Forecasted transactions	Forecasted transactions	693		758		14		14		32		3		Forecasted transactions	$	312	$	323	$	9	$	6	$	3	$	5

Commodity contracts	Commodity contracts	N/A		N/A		56		49		—		—		Commodity contracts	N/A		N/A		—		—		1		4

Interest rate swaps	Interest rate swaps	885		1,251		7		24		19		—		Interest rate swaps	867		856		—		—		66		70
Total Hedges	Total Hedges	$	1,578	$	2,009	$	77	$	87	$	51	$	3	Total Hedges	$	1,179	$	1,179	$	9	$	6	$	70	$	79
Total Derivatives	Total Derivatives	$	6,593	$	7,121	$	127	$	136	$	86	$	35	Total Derivatives	$	4,995	$	4,726	$	30	$	28	$	79	$	96

(a)Amounts as of March 31, ~~2022~~2023 and December 31, ~~2021~~2022 included current assets of ~~$109~~$27 million and ~~$101~~$24 million which are recorded in prepaid and other current assets; long-term assets of ~~$18~~$3 million and ~~$35~~$4 million which are recorded in other long-term assets; current liabilities of ~~$40~~$15 million and ~~$27~~ $23

million which are recorded in other current liabilities; and long-term liabilities of ~~$46~~$64 million and $8$73 million which are recorded in other long-term liabilities.

Balance Sheet Items

Foreign currency contracts related to balance sheet items consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on recorded balance sheet assets and liabilities denominated in currencies other than the functional currency of the related operating unit. Certain forward currency contracts are entered into to protect underlying monetary assets and liabilities denominated in foreign currencies from foreign exchange risk and are not designated as hedging instruments. For balance sheet items that are not designated as hedging instruments, the fair value adjustments on these contracts are offset by the fair value adjustments recorded on the underlying monetary assets and liabilities.

Forecasted Transactions

Foreign currency contracts related to forecasted transactions consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on (1) forecasted purchases of capital-related equipment and services, (2) forecasted sales, or (3) other forecasted cash flows denominated in currencies other than the functional currency of the related operating units. For forecasted transactions that are designated as cash flow hedges, fair value adjustments are recorded to accumulated other comprehensive income ~~("AOCI")~~(loss) with deferred amounts reclassified to earnings over the same time period as the income statement impact of the associated ~~forecasted transaction.~~purchase. For forecasted transactions that do not qualify for cash flow hedging relationships, fair value adjustments are recorded directly to earnings.

Cross-Currency Swaps

Cross-currency interest rate swaps are entered into to limit the foreign currency risk of future principal and interest cash flows associated with intercompany loans, and to a more limited extent bonds, denominated in non-functional currencies. The fair value adjustments on the cross-currency swaps are recorded to earnings, where they are offset by fair value adjustments on the underlying intercompany loan or bond.

Commodity Contracts

Commodity contracts are entered into to manage the exposure to fluctuations in commodity prices, which arise in the normal course of business from its procurement transactions. ~~Commodity price fluctuations are largely covered through contractual pass through to customers.~~ To reduce the extent of ~~the remaining~~this risk, Linde enters into a limited number of electricity, natural gas, and propane gas derivatives. For forecasted transactions that are designated as cash flow hedges, fair value adjustments are recorded to accumulated other comprehensive income ~~("AOCI")~~(loss) with deferred amounts reclassified to earnings over the same time period as the income statement impact of the associated purchase.

Net Investment Hedges

As of March 31, ~~2022,~~2023, Linde has ~~€6.9~~€8.5 billion ($~~7.7~~9.1 billion) Euro-denominated notes and intercompany loans and ¥3.6 billion ($0.5 billion) CNY-denominated intercompany loans that are designated as hedges of the net investment positions in certain foreign operations. Since hedge inception, the deferred gain recorded within ~~the~~ cumulative translation adjustment component of ~~AOCI~~accumulated other comprehensive income (loss) in the ~~condensed~~ consolidated balance ~~sheets~~sheet and the consolidated ~~statements~~statement of comprehensive income is ~~$269~~$265 million (deferred ~~gain~~loss of ~~$129~~$84 million ~~recorded~~ for the three months ended March 31, ~~2022)~~2023).

As of March 31, ~~2022,~~2023, exchange rate movements relating to previously designated hedges that remain in ~~AOCI~~accumulated other comprehensive income (loss) is at a ~~loss~~gain of ~~$42~~$56 million. These movements will remain in ~~AOCI,~~accumulated other comprehensive income (loss), until appropriate, such as upon sale or liquidation of the related foreign operations at which time amounts will be reclassified to the consolidated ~~statement~~statements of income.

Interest Rate Swaps

Linde uses interest rate swaps to hedge the exposure to changes in the fair value of financial assets and financial liabilities as a result of interest rate changes. These interest rate swaps effectively convert fixed-rate interest exposures to variable rates; fair value adjustments are recognized in earnings along with an equally offsetting charge/benefit to earnings for the changes in the fair value of the underlying financial asset or financial liability (See Note 4).

Derivatives' Impact on Consolidated Statements of Income

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


		Amount of Pre-Tax Gain (Loss) Recognized in Earnings *					Amount of Pre-Tax Gain (Loss) Recognized in Earnings *
		Quarter Ended March 31,					Quarter Ended March 31,
(Millions of dollars)	(Millions of dollars)	2022		2021		(Millions of dollars)	2023		2022
Derivatives Not Designated as Hedging Instruments	Derivatives Not Designated as Hedging Instruments					Derivatives Not Designated as Hedging Instruments
Currency contracts:	Currency contracts:					Currency contracts:
Balance sheet items	Balance sheet items					Balance sheet items
Debt-related	Debt-related	$	51	$	19	Debt-related	$	(39)	$	51
Other balance sheet items	Other balance sheet items	(12)		4		Other balance sheet items	(1)		(12)

Total	Total	$	39	$	23	Total	$	(40)	$	39

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

The amounts of gain or loss recognized in ~~AOCI~~accumulated other comprehensive income (loss) and reclassified to the consolidated statement of income was ~~immaterial~~not material for the ~~quarter and~~ three months ended March 31, ~~2022~~2023 and ~~2021,~~2022, respectively. Net ~~losses~~impacts expected to be reclassified to earnings during the next twelve months are also not material.

6. Fair Value Disclosures

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

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

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

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

Assets and Liabilities Measured at Fair Value on a Recurring Basis

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


		Fair Value Measurements Using													Fair Value Measurements Using
		Level 1				Level 2				Level 3					Level 1				Level 2				Level 3
(Millions of dollars)	(Millions of dollars)	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021		(Millions of dollars)	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Assets	Assets													Assets
Derivative assets	Derivative assets	$	—	$	—	$	127	$	136	$	—	$	—	Derivative assets	$	—	$	—	$	30	$	28	$	—	$	—
Investments and securities*	Investments and securities*	38		42		—		—		17		20		Investments and securities*	20		20		—		—		12		13
Total	Total	$	38	$	42	$	127	$	136	17		$	20	Total	$	20	$	20	$	30	$	28	12		$	13

Liabilities	Liabilities													Liabilities
Derivative liabilities	Derivative liabilities	$	—	$	—	$	86	$	35	$	—	$	—	Derivative liabilities	$	—	$	—	$	79	$	96	$	—	$	—

* Investments and securities are recorded in prepaid and other current assets and other long-term assets in the company's condensed consolidated balance sheets.

Level 1 investments and securities are marketable securities traded on an exchange. Level 2 investments are based on market prices obtained from independent brokers or determined using quantitative models that use as their basis readily observable market parameters that are actively quoted and can be validated through external sources, including third-party pricing services, brokers and market transactions. Level 3 investments and securities consist of a venture fund. For the valuation, Linde uses the net asset value received as part of the fund's quarterly reporting, which for the most part is not based on quoted prices in active markets. In order to reflect current market conditions, Linde proportionally adjusts ~~these~~ by observable market data (stock exchange prices) or current transaction prices.

Table of Contents

Changes in level 3 investments and securities were immaterial.

~~Table of Contents~~

The fair value of cash and cash equivalents, short-term debt, accounts receivable-net, and accounts payable approximate carrying value because of the short-term maturities of these instruments.

The fair value of long-term debt is estimated based on the quoted market prices for the same or similar issues. Long-term debt is categorized within either Level 1 or Level 2 of the fair value hierarchy depending on the trading volume of the issues and whether or not they are actively quoted in the market as opposed to traded through over-the-counter transactions. At March 31, 2023, the estimated fair value of Linde’s long-term debt portfolio was $11,774 million versus a carrying value of $13,440 million. At December 31, 2022, the estimated fair value of Linde’s long-term debt portfolio was ~~$13,415~~$11,994 million versus a carrying value of ~~$13,907 million. At December 31, 2021, the estimated fair value of Linde’s long-term debt portfolio was $13,219 million versus a carrying value of $13,044~~$13,797 million. Differences between the carrying value and the fair value are attributable to fluctuations in interest rates subsequent to when the debt was issued and relative to stated coupon rates.

7. Earnings Per Share – Linde plc Shareholders

Basic and diluted earnings per share is computed by dividing ~~Income from continuing operations, Income from discontinued operations and~~ Net income – Linde plc for the period by the weighted average number of either basic or diluted shares outstanding, as follows:


		Quarter Ended March 31,					Quarter Ended March 31,
		2022		2021			2023		2022
Numerator (Millions of dollars)	Numerator (Millions of dollars)					Numerator (Millions of dollars)
Income from continuing operations		$	1,174	$	979
Income from discontinued operations		—		1

Net Income – Linde plc	Net Income – Linde plc	$	1,174	$	980	Net Income – Linde plc	$	1,516	$	1,174
Denominator (Thousands of shares)	Denominator (Thousands of shares)					Denominator (Thousands of shares)
Weighted average shares outstanding	Weighted average shares outstanding	506,716		522,103		Weighted average shares outstanding	491,321		506,716
Shares earned and issuable under compensation plans	Shares earned and issuable under compensation plans	436		356		Shares earned and issuable under compensation plans	496		436
Weighted average shares used in basic earnings per share	Weighted average shares used in basic earnings per share	507,152		522,459		Weighted average shares used in basic earnings per share	491,817		507,152
Effect of dilutive securities	Effect of dilutive securities					Effect of dilutive securities
Stock options and awards	Stock options and awards	4,258		4,468		Stock options and awards	3,859		4,258
Weighted average shares used in diluted earnings per share	Weighted average shares used in diluted earnings per share	511,410		526,927		Weighted average shares used in diluted earnings per share	495,676		511,410
Basic earnings per share from continuing operations		$	2.31	$	1.87
Basic earnings per share from discontinued operations		—		—

Basic Earnings Per Share	Basic Earnings Per Share	$	2.31	$	1.87	Basic Earnings Per Share	$	3.08	$	2.31
Diluted earnings per share from continuing operations		$	2.30	$	1.86
Diluted earnings per share from discontinued operations		—		—

Diluted Earnings Per Share	Diluted Earnings Per Share	$	2.30	$	1.86	Diluted Earnings Per Share	$	3.06	$	2.30

There were no antidilutive shares for any period presented.

1614

Table of Contents

8. Retirement Programs

The components of net pension and postretirement benefits other than pensions (“OPEB”) costs for the three months ended March 31, ~~2022~~2023 and ~~2021~~2022 are shown below:


		Quarter Ended March 31,					Quarter Ended March 31,

(Millions of dollars)	(Millions of dollars)	2022		2021		(Millions of dollars)	2023		2022
Amount recognized in Operating Profit	Amount recognized in Operating Profit					Amount recognized in Operating Profit
Service cost	Service cost	$	33	$	40	Service cost	$	21	$	33
Amount recognized in Net pension and OPEB cost (benefit), excluding service cost	Amount recognized in Net pension and OPEB cost (benefit), excluding service cost					Amount recognized in Net pension and OPEB cost (benefit), excluding service cost
Interest cost	Interest cost	53		39		Interest cost	92		53
Expected return on plan assets	Expected return on plan assets	(136)		(131)		Expected return on plan assets	(129)		(136)
Net amortization and deferral	Net amortization and deferral	19		43		Net amortization and deferral	(8)		19

		(64)		(49)			(45)		(64)

Net periodic benefit cost (benefit)	Net periodic benefit cost (benefit)	$	(31)	$	(9)	Net periodic benefit cost (benefit)	$	(24)	$	(31)

Components of net periodic benefit expense for other post-retirement plans for ~~the~~ three months ended March 31, ~~2022~~2023 and ~~2021~~2022 were not material.

Linde estimates that ~~2022~~2023 required contributions to its pension plans will be in the range of ~~$40~~approximately $40 million to ~~$50~~$50 million, of which ~~$13~~$10 million have been made through March 31, ~~2022.~~2023.

9. Commitments and Contingencies

Contingent Liabilities

Linde is subject to various lawsuits and government investigations that arise from time to time in the ordinary course of business. These actions are based upon alleged environmental, tax, antitrust and personal injury claims, among others. Linde has strong defenses in these cases and intends to defend itself vigorously. It is possible that the company may incur losses in connection with some of these actions in excess of accrued liabilities. Management does not anticipate that in the aggregate such losses would have a material adverse effect on the company’s consolidated financial position or liquidity; however, it is possible that the final outcomes could have a significant impact on the company’s reported results of operations in any given period (see Note 17 to the consolidated financial statements of Linde's ~~2021~~2022 Annual Report on Form 10-K).

Significant matters are:

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

•At March 31, ~~2022~~2023, the most significant non-income ~~and income~~ tax claims in Brazil, after enrollment in the Refis Program, relate to state VAT tax ~~matters and a federal income tax matter where the taxing authorities are challenging the tax rate that should be applied to income generated by a subsidiary company.~~matters. The total estimated exposure relating to such claims, including interest and penalties, as appropriate, is approximately ~~$235~~$110 million. Linde has not recorded any liabilities related to such claims based on management ~~judgments, after considering judgments~~judgment and opinions of outside counsel.

During the first quarter of 2023, the Brazilian Supreme Court issued a decision related to a federal tax matter that the company previously disclosed as a contingency in Note 17 to the consolidated financial statements of Linde’s 2022 Annual report on Form 10-K. As a result of this decision, the company recorded a reserve based on its best estimate of potential settlement (see Note 2). Because litigation in Brazil historically takes many years to resolve, it is very difficult to estimate the timing of resolution of these matters; however, it is possible that certain of these matters may be resolved within the near term. The company is vigorously defending against the proceedings.

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•On September 1, 2010, CADE (Brazilian Administrative Council for Economic Defense) announced alleged anticompetitive activity on the part of 5five industrial gas companies in Brazil and imposed fines. Originally, CADE imposed a civil fine of $2.2 billion Brazilian reais ($~~464~~435 million) on White Martins, the Brazil-based subsidiary of ~~Praxair,~~Linde Inc. The fine was reduced to $1.7 billion Brazilian reais ($~~359~~336 million) due to a calculation error made by CADE. The fine against White Martins was overturned by the Ninth Federal Court of Brasilia. CADE appealed this

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decision, and the Federal Court of Appeals rejected CADE's appeal and confirmed the decision of the Ninth Federal Court of Brasilia. CADE has filed an appeal with the Superior Court of Justice and a decision is pending.

Similarly, on September 1, 2010, CADE imposed a civil fine of $237 million Brazilian reais ($5047 million) on Linde Gases Ltda., the former Brazil-based subsidiary of Linde AG, which was divested to MG Industries GmbH on March 1, 2019 and with respect to which Linde provided a contractual indemnity. The fine was reduced to $188 million Brazilian reais ($4037 million) due to a calculation error made by CADE. The fine against Linde Gases Ltda. was overturned by the Seventh Federal Court in Brasilia. CADE appealed this decision, and the Federal Court of Appeals rejected CADE's appeal and confirmed the decision of the Seventh Federal Court of Brasilia. CADE filed an appeal with the Superior Court of Justice which was denied. In parallel, CADE filed (i) an appeal with the Supreme Court of Justice, which was denied, and (ii) a subsequent appeal to a panel of the Supreme Court of Justice where a final decision is pending.

Linde has strong defenses and is confident that it will prevail on appeal and have the fines overturned. Linde strongly believes that the allegations of anticompetitive activity against our current and former Brazilian subsidiaries are not supported by valid and sufficient evidence. Linde believes that this decision will not stand up to judicial review and deems the possibility of cash outflows to be extremely unlikely. As a result, no reserves have been recorded as management does not believe that a loss from this case is probable.

•On and after April 23, 2019 former shareholders of Linde AG filed appraisal proceedings at the District Court (Landgericht) Munich I (Germany), seeking an increase of the cash consideration paid in connection with the previously completed cash merger squeeze-out of all of Linde AG’s minority shareholders for €189.46 per share. Any such increase would apply to all 14,763,113 Linde AG shares that were outstanding on April 8, 2019, when the cash merger squeeze-out was completed. The period for plaintiffs to file claims expired on July 9, 2019. The company believes the consideration paid was fair and that the claims lack merit, and no reserve has been established. We cannot estimate the timing of resolution.

•On December 30, 2022, the Russian Arbitration Court of the St. Petersburg and Leningrad Region issued an injunction preventing (i) the sale of any shares in Linde’s subsidiaries and joint ventures in Russia, and (ii) the disposal of any of assets in those entities exceeding 5% of the relevant company’s overall asset value. The injunction is not expected to have any impact on the operations of Linde’s Russian businesses. The injunction was requested by RusChemAlliance (RCA) as a preliminary measure to secure payment of an eventual award under an arbitration proceeding RCA intends to file against Linde Engineering for alleged breach of contract under the agreement to build a gas processing plant in Ust Luga, Russia entered into between a consortium of Linde Engineering and Renaissance Heavy Industries LLC, and RCA on July 7, 2021. Performance of the agreement was lawfully suspended by Linde Engineering on May 27, 2022 in compliance with applicable sanctions and in accordance with a decision by the sanctions authority in Germany. On March 1, 2023, RCA filed a claim in St. Petersburg against Linde GmbH for recovery of advance payments under the agreement ("Russian Claim"). On March 4, 2023, in accordance with the dispute resolution provisions of the agreement, Linde GmbH filed a notice of arbitration with the Hong Kong International Arbitration Centre ("HKIAC") against RCA to claim that (i) RCA has no entitlement to payment, (ii) RCA’s Russian claim is in breach of the arbitration agreement, and (iii) RCA must compensate Linde for the losses and damages caused by the injunction. Additionally, Linde GmbH filed for and on March 17, 2023 obtained an anti-suit injunction from a Hong Kong court against RCA directing RCA to seek a stay of the Russian Claim and ordering it to resolve any disputes in accordance with HKIAC arbitration.

As of March 31, 2023, Linde had approximately $1.2 billion of advance payments recorded in contract liabilities related to engineering projects with RCA which are subject to sanctions and have been suspended accordingly as of May 27, 2022. Contract liabilities are typically recognized as revenue as performance obligations are satisfied under contract terms. Linde deconsolidated its Russian gas and engineering business entities as of June 30, 2022, and the remaining investment value of its Russia subsidiaries is immaterial. As such, the obligation to satisfy any residual contract liabilities is not expected to have an adverse impact on earnings, but may result in net cash outflows.

It is difficult to estimate the timing of resolution of this matter. The company intends to vigorously defend its interests in both the injunction and arbitration proceedings.

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10. Segments

For a description of Linde plc's operating segments, refer to Note 18 to the consolidated financial statements on Linde plc's ~~2021~~2022 Annual Report on Form 10-K.

The table below presents sales and operating profit information about reportable segments and Other for the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022.


		Quarter Ended March 31,					Quarter Ended March 31,
(Millions of dollars)	(Millions of dollars)	2022		2021		(Millions of dollars)	2023		2022
SALES(a)	SALES(a)					SALES(a)
Americas	Americas	$	3,241	$	2,840	Americas	$	3,551	$	3,241
EMEA	EMEA	2,148		1,799		EMEA	2,177		2,148
APAC	APAC	1,602		1,436		APAC	1,598		1,602
Engineering	Engineering	728		674		Engineering	540		728
Other	Other	492		494		Other	327		492

Total sales	Total sales	$	8,211	$	7,243	Total sales	$	8,193	$	8,211


	Quarter Ended March 31,
(Millions of dollars)	2023		2022
SEGMENT OPERATING PROFIT
Americas	$	1,025	$	904
EMEA	607		503
APAC	423		399
Engineering	149		143
Other	2		(44)
Segment operating profit	2,206		1,905
Other charges (Note 2)	(18)		4


Purchase accounting impacts - Linde AG	(255)		(429)
Total operating profit	$	1,933	$	1,480

Quarter Ended March 31,
(Millions of dollars) 2022 2021
SEGMENT OPERATING PROFIT
Americas $ 904 $ 795
EMEA 503 451
APAC 399 351
Engineering 143 109
Other (44) (18)
Segment operating profit 1,905 1,688
Cost reduction programs and other charges (Note 2) 4 8
Purchase accounting impacts - Linde AG (429) (483)
Total operating profit $ 1,480 $ 1,213

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(a)Sales reflect external sales only. Intersegment sales, primarily from Engineering to the industrial gases segments, were ~~not material.~~$294 million for the three months ended March 31, 2023 and $231 million for the respective 2022 period.

11. Equity

Equity

On March 1, 2023, in connection with the shareholder approved intercompany reorganization that resulted in the delisting of old Linde plc from the New York Stock Exchange (NYSE) and the Frankfurt Stock Exchange (FSE), and the subsequent relisting of new Linde plc to the NYSE, Linde shareholders automatically received one share of the new holding company, listed on the NYSE in exchange for each share of Linde plc that was previously owned. The company issued 490,766,972 new Linde shares. Linde plc's historical treasury shares were immediately canceled which resulted in an approximately $15 billion decrease in treasury shares and retained earnings in Shareholders' Equity for the period ended March 31, 2023.

A summary of the changes in total equity for the three months ended March 31, 2023 and 2022 is provided below:

1917

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~~11. Equity~~

~~Equity~~

~~A summary of the changes in total equity for the quarters ended March 31, 2022 and 2021 is provided below:~~

Quarter Ended March 31,
(Millions of dollars) 2022 2021
Activity Linde plc
Shareholders’
Equity Noncontrolling
Interests Total
Equity Linde plc
Shareholders’
Equity Noncontrolling
Interests Total
Equity
Balance, beginning of period $ 44,035 $ 1,393 $ 45,428 $ 47,317 $ 2,252 $ 49,569
Net income (a) 1,174 36 1,210 980 38 1,018
Other comprehensive income (loss) 110 (12) 98 (655) (6) (661)
Noncontrolling interests:
Additions (reductions) (b) — 4 4 — (853) (853)
Dividends and other capital changes — (7) (7) — (21) (21)
Dividends to Linde plc ordinary share holders ($1.17 per share in 2022 and $1.06 per share in 2021) (592) — (592) (553) — (553)
Issuances of ordinary shares:
For employee savings and incentive plans (46) — (46) (2) — (2)
Purchases of ordinary shares (1,752) — (1,752) (906) — (906)
Share-based compensation 34 — 34 29 — 29
Balance, end of period $ 42,963 $ 1,414 $ 44,377 $ 46,210 $ 1,410 $ 47,620


	Quarter Ended March 31,
(Millions of dollars)	2023						2022
Activity	Linde plc Shareholders’ Equity		Noncontrolling Interests		Total Equity		Linde plc Shareholders’ Equity		Noncontrolling Interests		Total Equity
Balance, beginning of period	$	40,028	$	1,346	$	41,374	$	44,035	$	1,393	$	45,428
Net income (a)	1,516		36		1,552		1,174		36		1,210
Other comprehensive income (loss)	(28)		(2)		(30)		110		(12)		98
Noncontrolling interests:
Additions (reductions)	—		2		2		—		4		4
Dividends and other capital changes	—		(29)		(29)		—		(7)		(7)

Dividends to Linde plc ordinary share holders ($1.275 per share in 2023 and $1.17 per share in 2022)	(623)		—		(623)		(592)		—		(592)
Issuances of ordinary shares:

For employee savings and incentive plans	(63)		—		(63)		(46)		—		(46)

Purchases of ordinary shares	(890)		—		(890)		(1,752)		—		(1,752)

Share-based compensation	30		—		30		34		—		34
Balance, end of period	$	39,970	$	1,353	$	41,323	$	42,963	$	1,414	$	44,377

(a) Net income for noncontrolling interests excludes net income related to redeemable noncontrolling interests which is not significant for the three months ended March 31, ~~2022~~2023 and ~~2021~~2022 and which is not part of total equity.

~~(b) Additions (reductions) for noncontrolling interests for the three months ended March 31, 2021, includes the impact from the deconsolidation of a joint venture with operations in APAC.~~

The components of ~~AOCI~~Accumulated other comprehensive income (loss) are as follows:


		March 31,		December 31,			March 31,		December 31,
(Millions of dollars)	(Millions of dollars)	2022		2021		(Millions of dollars)	2023		2022
Cumulative translation adjustment - net of taxes:	Cumulative translation adjustment - net of taxes:					Cumulative translation adjustment - net of taxes:
Americas	Americas	$	(3,652)	$	(3,985)	Americas	$	(3,754)	$	(3,942)
EMEA	EMEA	(402)		94		EMEA	(1,016)		(1,249)
APAC	APAC	162		154		APAC	(881)		(835)
Engineering	Engineering	(100)		24		Engineering	(190)		(241)
Other	Other	59		(280)		Other	288		483
		(3,933)		(3,993)			(5,553)		(5,784)
Derivatives - net of taxes	Derivatives - net of taxes	72		75		Derivatives - net of taxes	(3)		62

Pension / OPEB (net of $284 million and $305 million tax benefit in March 31, 2022 and December 31, 2021, respectively)		(1,077)		(1,130)
Pension / OPEB (net of $9 million tax benefit and $54 million tax obligation at March 31, 2023 and December 31, 2022, respectively)						Pension / OPEB (net of $9 million tax benefit and $54 million tax obligation at March 31, 2023 and December 31, 2022, respectively)	(254)		(60)
		$	(4,938)	$	(5,048)		$	(5,810)	$	(5,782)

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12. Revenue Recognition

Revenue is accounted for in accordance with ASC 606. Revenue is recognized as control of goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled to receive in exchange for the goods or services.

Contracts with Customers

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Linde serves a diverse group of industries including healthcare, chemicals and energy, manufacturing, metals and mining, food and beverage, and electronics.

Industrial Gases

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

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

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

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

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

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

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

The company’s performance obligations related to packaged gases are satisfied at a point in time. Accordingly, revenue is recognized when product is delivered to the customer or when the customer picks up product from a packaged gas facility or

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retail store and the company has the right to payment from the customer in accordance with the contract terms. Any variable consideration is constrained and will be recognized when the uncertainty related to the consideration is resolved.

~~Linde~~ Engineering

The company designs and manufactures equipment for air separation and other industrial gas applications manufactured specifically for end customers. Sale of equipment contracts are generally comprised of a single performance obligation. Revenue from sale of equipment is generally recognized over time as Linde has an enforceable right to payment for

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performance completed to date and performance does not create an asset with alternative use. For contracts recognized over time, revenue is recognized primarily using a cost incurred input method. Costs incurred to date relative to total estimated costs at completion are used to measure progress toward satisfying performance obligations. Costs incurred include material, labor, and overhead costs and represent work contributing and proportionate to the transfer of control to the customer. ~~Contract~~Changes to cost estimates and contract modifications are typically accounted for as part of the existing contract and are recognized as a cumulative ~~adjustment~~adjustments for the inception-to-date effect of such change.

Contract Assets and Liabilities

Contract assets and liabilities result from differences in timing of revenue recognition and customer invoicing. Contract assets primarily relate to sale of equipment contracts for which revenue is recognized over time. The balance represents unbilled revenue which occurs when revenue recognized under the measure of progress exceeds amounts invoiced to customers. Customer invoices may be based on the passage of time, the achievement of certain contractual milestones or a combination of both criteria. Contract liabilities include advance payments or right to consideration prior to performance under the contract. Contract liabilities are recognized as revenue as performance obligations are satisfied under contract terms. Linde has contract assets of ~~$100~~$175 million and ~~$134~~$124 million at March 31, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively. Total contract liabilities are ~~$3,874~~$3,997 million at March 31, ~~2022~~2023 (current of ~~$3,035~~$3,070 million and ~~$839~~$927 million within other long-term liabilities in the condensed consolidated balance sheets). As of March 31, 2023, Linde has approximately $1.8 billion recorded in contract liabilities related to engineering projects in Russia subject to sanctions. Total contract liabilities were ~~$3,699~~$3,986 million at December 31, ~~2021~~2022 (current contract liabilities of ~~$2,940~~$3,073 million and ~~$759~~$913 million inwithin other long-term liabilities in the condensed consolidated balance sheets). Revenue recognized for the three months ended March 31, ~~2022~~2023 that was included in the contract liability at December 31, ~~2021~~2022 was ~~$611~~$403 million. Contract assets and liabilities primarily relate to the Linde Engineering business.

Payment Terms and Other

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

Disaggregated Revenue Information

As described above and in Note 1819 to ~~Linde's 2021~~Linde plc's 2022 Annual Report on Form 10-K, the company manages its industrial gases business on a geographic basis, while the Engineering and Other businesses are generally managed on a global basis. Furthermore, the company believes that reporting sales by distribution method by reportable geographic segment best illustrates the nature, timing, type of customer, and contract terms for its revenues, including terms and pricing.

The following tables show sales by distribution method at the consolidated level and for each reportable segment and Other for the three months ended March 31, ~~2022~~2023 and March 31, ~~2021.~~2022.

(Millions of dollars) Quarter Ended March 31, 2022
Sales Americas EMEA APAC Engineering Other Total %
Merchant $ 874 $ 614 $ 516 $ — $ 39 $ 2,043 25 %
On-Site 883 631 655 — — 2,169 26 %
Packaged Gas 1,432 891 361 — 7 2,691 33 %
Other 52 12 70 728 446 1,308 16 %
Total $ 3,241 $ 2,148 $ 1,602 $ 728 $ 492 $ 8,211 100 %

(Millions of dollars) Quarter Ended March 31, 2021
Sales Americas EMEA APAC Engineering Other Total %
Merchant $ 771 $ 531 $ 484 $ — $ 53 $ 1,839 25 %
On-Site 689 392 553 — — 1,634 23 %
Packaged Gas 1,332 861 361 — 6 2,560 35 %
Other 48 15 38 674 435 1,210 17 %
Total $ 2,840 $ 1,799 $ 1,436 $ 674 $ 494 $ 7,243 100 %


(Millions of dollars)	Quarter Ended March 31, 2023
Sales	Americas		EMEA		APAC		Engineering		Other		Total		%

Merchant	$	1,043	$	699	$	551	$	—	$	55	$	2,348	29	%
On-Site	804		538		643		—		—		1,985		24	%
Packaged Gas	1,638		928		354		—		20		2,940		36	%
Other	66		12		50		540		252		920		11	%
Total	$	3,551	$	2,177	$	1,598	$	540	$	327	$	8,193	100	%

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(Millions of dollars)	Quarter Ended March 31, 2022
Sales	Americas		EMEA		APAC		Engineering		Other		Total		%

Merchant	$	874	$	614	$	516	$	—	$	39	$	2,043	25	%
On-Site	883		631		655		—		—		2,169		26	%
Packaged Gas	1,432		891		361		—		7		2,691		33	%
Other	52		12		70		728		446		1,308		16	%
Total	$	3,241	$	2,148	$	1,602	$	728	$	492	$	8,211	100	%

Remaining Performance Obligations

As described above, Linde's contracts with on-site customers are under long-term supply arrangements which generally require the customer to purchase their requirements from Linde and also have minimum purchase requirements. Additionally, plant sales from the Linde Engineering business are primarily contracted on a fixed price basis. The company estimates the consideration related to future minimum purchase requirements and plant sales was approximately ~~$51~~$48 billion (excludes Russian projects which are ~~currently or expected to be~~ impacted by ~~sanctions, as discussed in Note 13)~~sanctions). This amount excludes all on-site sales above minimum purchase requirements, which can be significant depending on customer needs. In the future, actual amounts will be different due to impacts from several factors, many of which are beyond the company’s control including, but not limited to, timing of newly signed, terminated and renewed contracts, inflationary price escalations, currency exchange rates, and pass-through costs related to natural gas and electricity. The actual duration of long-term supply contracts ranges up to twenty years. The company estimates that approximately half of the revenue related to minimum purchase requirements will be earned in the next five years and the remaining thereafter.

13. ~~Subsequent Events~~Business Acquisition

Acquisition of nexAir, LLC

~~Conflict~~On January 5, 2023, Linde completed the acquisition of nexAir, LLC, a gas distribution and welding supply company in the United States, in order to further expand the company’s geographic footprint into different regions. Prior to completion of the acquisition, Linde held a 23% interest in nexAir, LLC. Pursuant to a signed purchase agreement between ~~Russia~~Linde and ~~Ukraine~~nexAir, LLC, Linde purchased the remaining 77% ownership interest in an all cash transaction with a total purchase price of $859 million, or $804 million net of cash acquired. The fair value of Linde’s equity interest in nexAir, LLC immediately preceding the acquisition date was $183 million, which resulted in a gain on remeasurement of the company’s previously held equity interest which was not material; this gain is recorded within “Other income (expenses) – net” on the consolidated statements of income.

Preliminary Allocation of Purchase Price

~~In response~~The acquisition of nexAir, LLC was accounted for as a business combination. Following the acquisition date, 100% of nexAir, LLC's results were consolidated in the Americas business segment. Linde's first quarter 2023 consolidated income statement includes sales of $103 million related to nexAir, LLC. Pro forma results for 2022 have not been included as the impact of the acquisition is not material to the ~~Russian invasion~~consolidated statements of ~~Ukraine, multiple jurisdictions,~~income.

The company has estimated the preliminary fair value of net assets acquired based on information currently available and will continue to adjust those estimates as additional information becomes available. The following table summarizes the fair value of identifiable assets acquired and liabilities assumed in the acquisition of nexAir, LLC as of the acquisition date.

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(Millions of dollars)	January 5, 2023

Assets:
Cash and cash equivalents	$	55
Other current assets - net	48
Property, plant and equipment, net	241
Other intangible assets - net	245
Other long-term liabilities - net	(5)
Total identifiable net assets	$	584

Goodwill	$	458
Fair value of previously held equity interest	$	183
Total purchase price	$	859

nexAir, LLC’s assets and liabilities were measured at estimated fair values at January 5, 2023. Estimates of fair value represent management's best estimate of assumptions about future events and uncertainties, including ~~Europe and the U.S., have imposed several tranches of economic sanctions on Russia.~~

In 2021, Linde’s industrial gas business generated approximately 1% of consolidated Linde sales from Russia. Total assets in Russia represent approximately 1% of consolidated Linde assets. Sales and total assets in Ukraine are immaterial. As of March 31, 2022, Linde has approximately $2 billion recorded in contract liabilities within the condensed consolidated balance sheetsignificant judgments related to ~~engineering projects~~future cash flows (sales, costs, customer attrition rates, and contributory asset charges), discount rates, competitive trends, and market comparables. Inputs used were generally obtained from historical data supplemented by current and anticipated market conditions and growth rates.

The fair value of the previously held equity interest was based upon a purchase price valuation (excluding debt) multiplied by the company’s previously held ownership interest adjusted by a discount for lack of marketability. The fair value of property, plant & equipment, net is based on assumptions that market participants would use in ~~Russia.~~pricing an asset, based on the most advantageous market for the asset (i.e., its highest and best use). The cost approach, adjusted for the age and condition of the property, plant and equipment, was used to estimate fair value.

~~Linde continues~~Identifiable intangible assets primarily consist of customer relationships of approximately $245 million that will be amortized over their estimated useful life of 20 years. The fair value of the customer relationships intangible asset was valued using a multi-period excess earnings method, a form of the income approach, which incorporates the estimated future cash flows to ~~closely monitor the situation~~be generated from nexAir, LLC's existing customer base. There were no indefinite-lived intangible assets identified in ~~Ukraine and has taken steps to ensure the safety of its employees and the continuous delivery of critical medical oxygen. Linde is working~~conjunction with the ~~relevant governments and authorities to ensure~~acquisition.

The excess of the ~~company fully complies with international sanctions and~~consideration for the acquisition over the preliminary fair value of net assets acquired was recorded as goodwill. The acquisition resulted in $458 million of goodwill, the majority of which is ~~safely winding down affected projects in Russia. During the first quarter of 2022, engineering projects being executed for Russia that are currently or~~ expected to be ~~impacted by sanctions~~deductible for tax purposes. The goodwill balance is primarily attributable to the assembled workforce and ~~thus being wound down were approximately $0.35 billion of sales. Linde has suspended all business development for new projects and is scaling back its operations in Russia by ceasing~~operating synergies expected to ~~supply certain customers and starting~~result from the ~~process to divest industrial assets to reduce its footprint in the country.~~

~~It is possible that Linde may incur impairment and other charges in future quarters~~acquisition. The goodwill recorded as these actions are defined and executed and as further sanctions are enacted that impact the Company’s operations in Russia, including industrial gases and engineering. Any charges related to such impairments or obligation to satisfy any residual contract liabilities may have an adverse effect on Linde’sa result of ~~operations or cash flows.~~

the acquisition was allocated to the Americas reportable segment, which represents the reportable segment anticipated to experience operating synergies as a result of the acquisition.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")

Non-GAAP Measures

Throughout MD&A, the company provides adjusted operating results ~~from continuing operations~~ exclusive of certain items such as ~~cost reduction programs and other~~Other charges, net gains or losses on sale of businesses, purchase accounting impacts of the Linde AG merger and pension settlement charges. Adjusted amounts are non-GAAP measures which are intended to supplement investors’ understanding of the company’s financial information by providing measures which investors, financial analysts and management find useful in evaluating the company’s operating performance. Items which the company does not believe to be indicative of on-going business performance are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. In addition, operating results, ~~from continuing operations,~~ excluding these items, is important to management's development of annual and long-term employee incentive compensation plans. Definitions of these non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures.

The non-GAAP measures and reconciliations are separately included in a later section in the MD&A titled "Non-GAAP Measures and Reconciliations."

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Consolidated Results

The following table provides summary information for the three months ended March 31, ~~2022~~2023 and ~~2021.~~2022. The reported amounts are GAAP amounts from the Consolidated Statements of Income. The adjusted amounts are intended to supplement investors' understanding of the company's financial information and are not a substitute for GAAP measures:


		Quarter Ended March 31,								Quarter Ended March 31,
(Millions of dollars, except per share data)	(Millions of dollars, except per share data)	2022			2021			Variance			(Millions of dollars, except per share data)	2023			2022			Variance
Sales	Sales	$	8,211		$	7,243		13	%		Sales	$	8,193		$	8,211		—	%
Cost of sales, exclusive of depreciation and amortization	Cost of sales, exclusive of depreciation and amortization	$	4,798		$	4,054		18	%		Cost of sales, exclusive of depreciation and amortization	$	4,431		$	4,798		(8)	%
As a percent of sales	As a percent of sales	58.4		%	56.0		%				As a percent of sales	54.1		%	58.4		%
Selling, general and administrative	Selling, general and administrative	$	802		$	787		2	%		Selling, general and administrative	$	822		$	802		2	%
As a percent of sales	As a percent of sales	9.8		%	10.9		%				As a percent of sales	10.0		%	9.8		%
Depreciation and amortization	Depreciation and amortization	$	1,112		$	1,166		(5)	%		Depreciation and amortization	$	948		$	1,112		(15)	%
Cost reduction programs and other charges (b)		$	(4)		$	(8)		(50)	%

Other charges (b)											Other charges (b)	$	18		$	(4)		(550)	%
Other income (expense) - net	Other income (expense) - net	$	12		$	4		(200)	%		Other income (expense) - net	$	(5)		$	12		142	%
Operating profit	Operating profit	$	1,480		$	1,213		22	%		Operating profit	$	1,933		$	1,480		31	%
Operating margin	Operating margin	18.0		%	16.7		%				Operating margin	23.6		%	18.0		%
Interest expense - net	Interest expense - net	$	9		$	20		(55)	%		Interest expense - net	$	37		$	9		311	%
Net pension and OPEB cost (benefit), excluding service cost	Net pension and OPEB cost (benefit), excluding service cost	$	(64)		$	(49)		31	%		Net pension and OPEB cost (benefit), excluding service cost	$	(45)		$	(64)		(30)	%
Effective tax rate	Effective tax rate	24.0		%	21.6		%				Effective tax rate	22.2		%	24.0		%
Income from equity investments	Income from equity investments	$	44		$	43		2	%		Income from equity investments	$	41		$	44		(7)	%
Noncontrolling interests from continuing operations		$	(36)		$	(38)		(5)	%
Income from continuing operations		$	1,174		$	979		20	%
Diluted earnings per share from continuing operations		$	2.30		$	1.86		24	%
Noncontrolling interests											Noncontrolling interests	$	(36)		$	(36)		—	%
Net Income – Linde plc											Net Income – Linde plc	$	1,516		$	1,174		29	%
Diluted earnings per share											Diluted earnings per share	$	3.06		$	2.30		33	%
Diluted shares outstanding	Diluted shares outstanding	511,410			526,927			(3)	%		Diluted shares outstanding	495,676			511,410			(3)	%
Number of employees	Number of employees	72,507			71,699			1	%		Number of employees	65,831			72,507			(9)	%
Adjusted Amounts (a)	Adjusted Amounts (a)										Adjusted Amounts (a)
Operating profit	Operating profit	$	1,905		$	1,688		13	%		Operating profit	$	2,206		$	1,905		16	%
Operating margin	Operating margin	23.2		%	23.3		%				Operating margin	26.9		%	23.2		%
Effective tax rate	Effective tax rate	24.3		%	23.9		%				Effective tax rate	24.1		%	24.3		%
Income from continuing operations		$	1,500		$	1,312		14	%
Diluted earnings per share from continuing operations		$	2.93		$	2.49		18	%
Net Income – Linde plc											Net Income – Linde plc	$	1,693		$	1,500		13	%
Diluted earnings per share											Diluted earnings per share	$	3.42		$	2.93		17	%
Other Financial Data (a)	Other Financial Data (a)										Other Financial Data (a)
EBITDA from continuing operations		$	2,636		$	2,422		9	%
EBITDA											EBITDA	$	2,922		$	2,636		11	%
As percent of sales	As percent of sales	32.1		%	33.4		%				As percent of sales	35.7		%	32.1		%
Adjusted EBITDA from continuing operations		$	2,663		$	2,438		9	%
Adjusted EBITDA											Adjusted EBITDA	$	2,963		$	2,663		11	%
As percent of sales	As percent of sales	32.4		%	33.7		%				As percent of sales	36.2		%	32.4		%

(a) Adjusted Amounts and Other Financial Data are non-GAAP performance measures. A reconciliation of reported amounts to adjusted amounts can be found in the "Non-GAAP Measures and Reconciliations" section of this MD&A.

(b) See Note 2 to the condensed consolidated financial statements.

Reported

In the first quarter of ~~2022,~~2023, Linde's sales were ~~$8,211~~$8,193 million, ~~13% above~~$18 million below prior ~~year,~~year. Currency translation decreased sales by 3% in the quarter. Divestitures, net of acquisitions, decreased sales by 2% in the quarter, primarily ~~driven~~due to the divestment of the GIST business, partially offset by ~~6% price attainment and 3% higher volumes.~~the nexAir, LLC acquisition. Engineering decreased sales by 2% in the quarter. Cost pass-through, representing the contractual billing of energy cost variances primarily to onsite customers, ~~increased~~decreased sales by 6%1% in the quarter, with minimal impact on operating profit. ~~Currency translation decreased sales by 3%~~Volumes were flat in the ~~first~~ quarter ofversus the 2022 ~~as compared to 2021.~~respective period. The aforementioned drivers were offset by the 8% price attainment in the quarter.

Reported operating profit for the first quarter of ~~2022~~2023 of ~~$1,480~~$1,933 million, or ~~18%~~23.6% of sales, was ~~22%~~31% above prior year. The reported year-over-year increase was primarily due to higher ~~price, the benefit of cost reduction programs and~~pricing, productivity initiatives and lower depreciation and amortization driven by merger related intangible assets. The reported effective tax rate ("ETR") was 22.2% in the first quarter 2023 versus 24.0% in the first quarter 2022 ~~versus 21.6%~~driven by a net decrease in the ~~first quarter 2021.~~uncertain tax positions for audit settlements, partially offset by additional accruals in non-U.S. jurisdictions. Diluted earnings per share ~~from continuing operations~~ ("EPS") was ~~$2.30,~~$3.06, or ~~24%~~33% above EPS of ~~$1.86~~$2.30 in the first quarter of ~~2021~~2022 primarily due to higher net income ~~from continuing operations~~- Linde plc and lower diluted shares outstanding.

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Adjusted

In the first quarter of ~~2022,~~2023, adjusted operating profit of ~~$1,905~~$2,206 million, or ~~23.2%~~26.9% of sales, was ~~13%~~16% higher as compared to ~~2021~~2022, driven by higher ~~price and the benefit of cost reduction programs~~pricing and productivity ~~initiatives.~~initiatives, partially offset by inflation. The adjusted ETR was ~~24.3%~~24.1% in the first quarter ~~2022~~2023 versus ~~23.9%~~24.3% in the ~~2021~~2022 quarter. On an adjusted basis, EPS was ~~$2.93, 18%~~$3.42, 17% above the ~~2021~~2022 adjusted EPS of ~~$2.49,~~$2.93, driven by higher adjusted net income ~~from continuing operations~~- Linde plc and lower diluted shares outstanding.

Outlook

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

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Results of operations

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


	Quarter Ended March 31, ~~2022~~2023 vs. ~~2021~~2022
	% Change

Factors Contributing to Changes - Sales
Volume	3—	%
Price/Mix	68	%
Cost pass-through	6 (1)	%
Currency	(3)	%
Acquisitions/divestitures	— (2)	%
Engineering	1 (2)	%
	13—	%

Sales

Sales ~~increased $968~~decreased $18 million ~~or 13%,~~ for the first quarter of ~~2022~~2023 versus the respective ~~2021~~2022 period. ~~Volume growth across most end markets increased sales by 3% in the quarter. Higher pricing across all geographic segments contributed 6% to sales in the quarter.~~ Currency translation decreased sales by 3% in the quarter, ~~largely in EMEA and APAC,~~ driven by the weakening of the Euro, Chinese yuan, British pound and Australian dollar ~~Korean won and British pound~~ against the U.S. dollar. The impact of divestitures, net of acquisitions decreased sales by 2% in the quarter. Engineering decreased sales by 2% in the quarter. Cost pass-through ~~increased~~decreased sales by 6%1% in the quarter, with minimal impact on operating profit. Volumes were flat in the quarter versus the respective 2022 period. Higher pricing across all geographic segments contributed 8% to sales in the quarter.

Cost of sales, exclusive of depreciation and amortization

Cost of sales, exclusive of depreciation and amortization ~~increased $744~~decreased $367 million, or ~~18%~~8%, for the first quarter of ~~2022,~~2023, primarily due to ~~higher volumes and~~currency, lower cost pass-through, ~~partially~~the net impact of acquisitions and divestitures and productivity gains which more than offset ~~by productivity initiatives and currency impacts.~~inflation. Cost of sales, exclusive of depreciation and amortization was ~~58.4% of sales,~~54.1% for the first quarter of ~~2022~~2023 versus ~~56.0% of sales~~58.4% for the respective ~~2021~~2022 period. The ~~increase~~decrease as a percentage of sales for the first quarter of ~~2022~~2023 was due primarily to higher ~~cost pass-through.~~pricing.

Selling, general and administrative expenses

Selling, general and administrative expense ("SG&A") increased ~~$15~~$20 million, or 2%, for the first quarter of ~~2022.~~2023. SG&A was ~~9.8%~~10.0% of first quarter sales versus ~~10.9%~~9.8% for the respective ~~2021~~2022 period. Currency impacts decreased SG&A by approximately ~~$18~~$19 million infor the quarter. Excluding currency impacts, underlying SG&A increased in the first quarter of ~~2022 driven~~2023 primarily bydue to higher ~~incentive compensation.~~costs largely related to the acquisition of nexAir.

Depreciation and amortization

Reported depreciation and amortization expense decreased ~~$54~~$164 million, or 15%, for the first quarter of ~~2022.~~2023. The decrease is related primarily to lower depreciation and amortization of intangible assets acquired in the ~~merger.~~merger and currency impacts.

On an adjusted basis, depreciation and amortization increased $6$4 million, ~~or 1%,~~ for the first quarter of ~~2022, primarily due to new project start ups which were partially offset by currency translation~~2023. Currency impacts ~~which~~ decreased depreciation and amortization by ~~$16 million.~~$21 million for the first quarter of 2023. Excluding currency, underlying depreciation and amortization increased due to the net impact of acquisitions and new project start ups.

Other charges

Other charges were a charge of $18 million and a benefit of $4 million for the first quarter of 2023 and 2022, respectively. The charge for the three months ended March 31, 2023 relates primarily to the intercompany reorganization. 2022 benefit of $4 million includes severance of $4 million and an other net benefit of $8 million related to a gain on sale of an interest in a joint venture (see Note 2 to the condensed consolidated financial statements).

On an adjusted basis, these benefits and costs have been excluded in both periods.

Operating profit

On a reported basis, operating profit increased ~~$267~~$453 million, or ~~22%~~31%, for the first quarter of ~~2022.~~2023. The increase was primarily due to higher pricing, ~~the benefit of cost reduction programs and~~savings from productivity initiatives, and lower depreciation and amortization driven by merger related intangible ~~assets which~~assets. These increases more than offset the adverse impacts of inflation ~~during~~and currency in the ~~quarter.~~first quarter of 2023.

On an adjusted basis, which excludes the impacts of merger-related purchase accounting ~~and cost reduction programs and~~as well as other charges, operating profit increased ~~$217~~$301 million, or ~~13%~~16% in the ~~2022 quarter.~~first quarter of 2023. Operating profit growth was driven by higher pricing and ~~the benefit~~

Table of ~~cost reduction programs and~~ Contents

productivity initiatives, which more than offset the effects of inflation and currency during the ~~period.~~periods. A discussion of operating profit by segment is included in the segment discussion that follows.

Interest expense - net

Reported interest expense - net ~~decreased $11~~increased $28 million for the first quarter of ~~2022.~~2023. On an adjusted basis, interest expense ~~decreased $19~~increased $27 million for the first quarter of ~~2022~~2023 versus the respective ~~2021 period~~2022 period. The increase in the quarter is driven primarily by ~~a lower effective~~higher borrowing ~~rate.~~

~~Table of Contents~~

costs on short-term debt.

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

Reported net pension and OPEB cost (benefit), excluding service cost ~~was a benefit~~were benefits of $45 million for first quarter of 2023 versus $64 million for the ~~quarter versus a benefit of $49 million for the~~ respective ~~2021~~2022 period. The ~~increase~~decrease in benefit primarily relates to ~~lower amortization of deferred losses, partially offset by~~ higher interest cost reflective of the higher discount rate environment year-over-year.

Effective tax rate

The reported effective tax rate ("ETR") for the quarter was ~~24.0%,~~22.2% versus ~~21.6%~~24.0% for the respective ~~2021~~2022 period. The ~~increase~~decrease is primarily ~~driven by lower tax impact from share based compensation in 2022 and a non-taxable gain~~ related to a net decrease in uncertain tax positions for audit settlements partially offset by additional accruals in non-U.S. jurisdictions (see Note 2 to the ~~deconsolidation of a joint venture with operations in APAC in the first quarter of 2021.~~condensed consolidated financial statements).

On an adjusted basis, the ETR for the quarter was ~~24.3%,~~24.1% versus ~~23.9%~~24.3% for the respective ~~2021~~2022 period. ~~The increase is primarily due to lower tax benefits from share option exercises.~~

Income from equity investments

Reported income from equity investments for the first quarter of ~~2022~~2023 was ~~$44~~$41 million, versus ~~$43~~$44 million for the respective ~~2021~~2022 period. On an adjusted basis, income from equity investments for the first quarter of 2023 was ~~$64~~$59 million, versus ~~$62~~$64 million in the prior year respective period.

Noncontrolling interests ~~from continuing operations~~

At March 31, ~~2022,~~2023, noncontrolling interests ~~from continuing operations~~ consisted primarily of non-controlling shareholders' investments in APAC (primarily China).

Reported noncontrolling ~~interests from continuing operations decreased $2 million~~interest was flat for the ~~first~~ quarter ~~of 2022,~~ended March 31, 2023 versus the respective ~~2021~~2022 period.

Net Income ~~from continuing operations~~– Linde plc

Reported net income ~~from continuing operations~~- Linde plc increased ~~$195~~$342 million, or ~~20%~~29%, for the first quarter of ~~2022,~~2023 versus the respective ~~2021 period, primarily due to higher overall operating profit.~~

2022 period. On an adjusted basis, which excludes the impacts of purchase accounting and other ~~non-GAAP adjustments,~~charges, net income ~~from continuing operations~~- Linde plc increased ~~$188~~$193 million, or ~~14%~~13%, for the quarter versus the respective ~~2021~~2022 period. ~~The~~On both a reported and adjusted basis, the increase was driven by higher ~~overall adjusted~~ operating profit.

Diluted earnings per share ~~from continuing operations~~

Reported diluted earnings per share ~~from continuing operations~~ increased ~~$0.44,~~$0.76, or ~~24%~~33%, for the first quarter of ~~2022,~~2023 versus the comparable ~~2021~~2022 period. On an adjusted basis, diluted EPS increased $0.49, or 17%, for the first quarter of ~~2022 increased $0.44, or 18%,~~2023 versus the respective ~~2021~~2022 period. The increase on both ~~bases was~~a reported and adjusted basis is primarily due to higher net income ~~from continuing operations~~- Linde plc and lower diluted shares outstanding.

Employees

The number of employees at March 31, ~~2022~~2023 was ~~72,507, an increase~~65,831, a decrease of ~~808~~6,676 employees from March 31, ~~2021,~~2022, driven primarily by the ~~Americas.~~sale of the GIST business, cost reduction initiatives and the deconsolidation of Russian subsidiaries in the EMEA and Engineering segments.

Other Financial Data

EBITDA was ~~$2,636~~$2,922 million for the first quarter of ~~2022~~2023 as compared to ~~$2,422~~$2,636 million in the respective ~~2021~~2022 period. The increase of $286 million was driven by higher net income - Linde plc versus prior year. Adjusted EBITDA ~~from continuing operations~~ increased to ~~$2,663~~$2,963 million for the first quarter ~~2022~~2023 from ~~$2,438~~$2,663 million in the respective ~~2021~~2022 period. The higher EBITDA was primarily due to higher net income - Linde plc versus the respective prior period.

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

Other Comprehensive Income (Loss)

Other comprehensive ~~losses~~loss for the first quarter of ~~2022 were $98~~2023 was $30 million, resulting primarily from $194 million associated with retirement programs and $65 million relating to current unrealized loss on derivatives instruments, partially offset by favorable currency translation adjustments of ~~$48~~$229 million during the quarter. The translation adjustments reflect the impact of translating local currency foreign subsidiary financial statements to U.S. dollars, and are largely driven by the movement of the U.S. dollar against major currencies including the Euro, British pound and the Chinese yuan. See the "Currency" section of the MD&A for exchange rates used for translation purposes and Note 11 to the condensed consolidated financial statements for a summary of the currency translation adjustment component of accumulated other comprehensive income (loss) by segment.

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Segment Discussion

The following summary of sales and operating profit by segment provides a basis for the discussion that follows. Linde plc evaluates the performance of its reportable segments based on operating profit, excluding items not indicative of ongoing business trends. The reported amounts are GAAP amounts from the Consolidated Statements of Income.


		Quarter Ended March 31,							Quarter Ended March 31,
(Millions of dollars)	(Millions of dollars)	2022		2021		Variance		(Millions of dollars)	2023		2022		Variance
SALES	SALES							SALES
Americas	Americas	$	3,241	$	2,840	14	%	Americas	$	3,551	$	3,241	10	%
EMEA	EMEA	2,148		1,799		19	%	EMEA	2,177		2,148		1	%
APAC	APAC	1,602		1,436		12	%	APAC	1,598		1,602		—	%
Engineering	Engineering	728		674		8	%	Engineering	540		728		(26)	%
Other	Other	492		494		—	%	Other	327		492		(34)	%
Total sales	Total sales	$	8,211	$	7,243	13	%	Total sales	$	8,193	$	8,211	—	%

SEGMENT OPERATING PROFIT	SEGMENT OPERATING PROFIT							SEGMENT OPERATING PROFIT
Americas	Americas	$	904	$	795	14	%	Americas	$	1,025	$	904	13	%
EMEA	EMEA	503		451		12	%	EMEA	607		503		21	%
APAC	APAC	399		351		14	%	APAC	423		399		6	%
Engineering	Engineering	143		109		31	%	Engineering	149		143		4	%
Other	Other	(44)		(18)		(144)	%	Other	2		(44)		105	%
Segment operating profit	Segment operating profit	$	1,905	$	1,688	13	%	Segment operating profit	$	2,206	$	1,905	16	%
Reconciliation to reported operating profit:	Reconciliation to reported operating profit:							Reconciliation to reported operating profit:
Cost reduction programs and other charges (Note 2)		4		8
Other charges (Note 2)								Other charges (Note 2)	(18)		4
Purchase accounting impacts - Linde AG	Purchase accounting impacts - Linde AG	(429)		(483)				Purchase accounting impacts - Linde AG	(255)		(429)
Total operating profit	Total operating profit	$	1,480	$	1,213			Total operating profit	$	1,933	$	1,480

Table of Contents

Americas


		Quarter Ended March 31,									Quarter Ended March 31,
(Millions of dollars)	(Millions of dollars)	2022			2021			Variance		(Millions of dollars)	2023			2022			Variance
Sales	Sales	$	3,241		$	2,840		14	%	Sales	$	3,551		$	3,241		10	%

Operating profit	Operating profit	$	904		$	795		14	%	Operating profit	$	1,025		$	904		13	%
As a percent of sales	As a percent of sales	27.9		%	28.0		%			As a percent of sales	28.9		%	27.9		%


	Quarter Ended March 31, ~~2022~~2023 vs. ~~2021~~2022
	% Change
Factors Contributing to Changes - Sales
Volume	51	%
Price/Mix	57	%
Cost pass-through	4 (1)	%
Currency	—	%
Acquisitions/divestitures	—3	%

	1410	%

~~Table of Contents~~

The Americas segment includes Linde's industrial gases operations in approximately 20 countries including the United States, Canada, Mexico, and Brazil.

Sales

Sales for the Americas segment increased ~~$401~~$310 million, or ~~14%~~10%, ~~for~~in the first quarter versus the respective ~~2021~~2022 period. Higher pricing contributed 5%7% to sales in the quarter. ~~Higher volumes~~Volumes increased sales by 5%1% for the first quarter, driven by higher demand ~~across most~~primarily in the manufacturing and food and beverage end ~~markets, led by chemicals and energy and manufacturing.~~markets. Cost pass-through ~~increased~~decreased sales by 4%1% for the first quarter with minimal impact on operating profit. The impact of ~~currency translation~~net acquisitions increased sales by 3% in the quarter, ~~was not significant.~~primarily due to the acquisition of nexAir, LLC (See Note 13 to the condensed consolidated financial statements).

Operating profit

Operating profit in the Americas segment increased ~~$109~~$121 million, or ~~14%~~13%, in the first quarter versus the respective ~~2021~~2022 period, driven primarily by higher pricing, volumes, acquisitions and continued productivity initiatives which more than offset inflation during the quarter.

EMEA


		Quarter Ended March 31,									Quarter Ended March 31,
(Millions of dollars)	(Millions of dollars)	2022			2021			Variance		(Millions of dollars)	2023			2022			Variance
Sales	Sales	$	2,148		$	1,799		19	%	Sales	$	2,177		$	2,148		1	%

Operating profit	Operating profit	$	503		$	451		12	%	Operating profit	$	607		$	503		21	%
As a percent of sales	As a percent of sales	23.4		%	25.1		%			As a percent of sales	27.9		%	23.4		%


	Quarter Ended March 31, ~~2022~~2023 vs. ~~2021~~2022
	% Change
Factors Contributing to Changes - Sales
Volume	— (3)	%
Price/Mix	1113	%
Cost pass-through	141	%
Currency	(6)	%
Acquisitions/divestitures	(4)	%

	1	%

Table of Contents

The EMEA segment includes Linde's industrial gases operations in approximately 45 European, Middle Eastern and African countries including Germany, United Kingdom, France, the Republic of South Africa and Sweden.

Sales

EMEA segment sales increased by $29 million, or 1%, in the first quarter as compared to the respective 2022 period. Higher price attainment increased sales by 13% in the quarter. Cost pass-through contributed 1% to sales in the quarter, with minimal impact on operating profit. Currency translation decreased sales by 6% in the quarter, due largely to the weakening of the Euro and British pound against the U.S. Dollar. Volumes decreased sales by 3% in the quarter. The impact of net divestitures decreased sales by 4% in the quarter, primarily due to the deconsolidation of the Russian business in June 2022.

Operating Profit

Operating profit for the EMEA segment increased by $104 million, or 21%, in the first quarter as compared to the respective 2022 period. The increase in operating profit in the quarter was driven primarily by higher pricing and continued productivity initiatives, partially offset by currency translation, lower volumes and divestitures.

APAC


	Quarter Ended March 31,
(Millions of dollars)	2023			2022			Variance
Sales	$	1,598		$	1,602		—	%

Operating profit	$	423		$	399		6	%
As a percent of sales	26.5		%	24.9		%


	Quarter Ended March 31, 2023 vs. 2022
	% Change
Factors Contributing to Changes - Sales
Volume/Equipment	1	%
Price/Mix	5	%
Cost pass-through	—	%
Currency	(6)	%
Acquisitions/divestitures	—	%

	19	%

The EMEA segment includes Linde's industrial gases operations in approximately 45 European, Middle Eastern and African countries including Germany, France, Sweden, the Republic of South Africa, and the United Kingdom.

~~Sales~~

EMEA segment sales increased by $349 million, or 19%, in the first quarter as compared to the respective 2021 period. Cost pass-through contributed 14% to sales in the quarter, with minimal impact on operating profit, while higher price attainment increased sales by 11% in the quarter. Volumes were relatively flat in the quarter. Currency translation decreased sales by 6% in the quarter due largely to the weakening of the Euro and British pound against the U.S. Dollar.

~~Operating Profit~~

Operating profit for the EMEA segment increased by $52 million, or 12%, in the first quarter as compared to the respective 2021 period, driven largely by higher pricing and continued productivity initiatives which more than offset inflation during the quarter.

~~APAC~~

Quarter Ended March 31,
(Millions of dollars) 2022 2021 Variance
Sales $ 1,602 $ 1,436 12 %
Operating profit $ 399 $ 351 14 %
As a percent of sales 24.9 % 24.4 %

~~Table of Contents~~


	~~Quarter Ended March 31, 2022 vs. 2021~~
	~~% Change~~
~~Factors Contributing to Changes - Sales~~
~~Volume/Equipment~~	6	%
~~Price/Mix~~	4	%
~~Cost pass-through~~	4	%
~~Currency~~	~~(2)~~	%
~~Acquisitions/divestitures~~	—	%

	12	%

The APAC segment includes Linde's industrial gases operations in approximately 20 Asian and South Pacific countries and regions including China, Australia, India, and South Korea.

Sales

Sales for the APAC segment ~~increased $166~~decreased $4 million, ~~or 12%,~~ for the first quarter versus the respective ~~2021~~2022 period. Higher pricing contributed 5% to sales in the quarter. Volumes increased 6%1% in the quarter ~~driven by increased demand across most end markets, led by~~including project start-ups in the electronics and chemicals and energy ~~and project start-ups. Higher price and cost pass-through both contributed 4% to sales in the quarter. The impact of cost pass-through on operating profit was minimal.~~end markets. Currency translation decreased sales by 2%6% in quarter, driven primarily by the weakening of the Australian dollar, Indian rupee and ~~Korean won~~Chinese yuan against the U.S. ~~Dollar.~~dollar. Cost pass-through was flat in the quarter versus the respective 2022 period.

Operating profit

Operating profit in the APAC segment increased ~~$48~~$24 million, or ~~14%~~6%, in the first quarter versus the respective ~~2021~~2022 period, driven by higher volumes and pricing and continued productivity initiatives which more than offset the impact of currency and inflation during the quarter.

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Engineering


		Quarter Ended March 31,									Quarter Ended March 31,
(Millions of dollars)	(Millions of dollars)	2022			2021			Variance		(Millions of dollars)	2023			2022			Variance
Sales	Sales	$	728		$	674		8	%	Sales	$	540		$	728		(26)	%

Operating profit	Operating profit	$	143		$	109		31	%	Operating profit	$	149		$	143		4	%
As a percent of sales	As a percent of sales	19.6		%	16.2		%			As a percent of sales	27.6		%	19.6		%


	Quarter Ended March 31, ~~2022~~2023 vs. ~~2021~~2022
	% Change
Factors Contributing to Changes - Sales
~~Volume~~	13		%


Currency	~~(5)~~(4)	%

Other	(22)	%
	8 (26)	%

Sales

Engineering segment sales ~~increased $54~~decreased $188 million ~~or 8%,~~ in the first quarter ~~2022~~ as compared to the respective ~~2021 period~~2022 period. The decrease was driven ~~primarily~~ by project timing ~~partially offset by~~and negative currency ~~impacts which decreased sales by 5% in the quarter.~~translation.

Projects ~~being executed~~ for Russia that ~~are currently or expected to be~~were sanctioned and ~~thus being~~have been wound down ~~represent approximately $350~~represented $61 million of the Engineering segment sales during the first quarter of ~~2022.~~2023.

Operating profit

Engineering segment operating profit increased, ~~$34~~$6 million ~~or 31%,~~ in the first quarter ~~2022~~ as compared to the respective ~~2021 period driven primarily~~2022 period. The decline from lower sales was more than offset by ~~project timing.~~higher margin on wind down of projects subject to sanctions in Russia.

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Other


		Quarter Ended March 31,									Quarter Ended March 31,
(Millions of dollars)	(Millions of dollars)	2022			2021			Variance		(Millions of dollars)	2023			2022			Variance
Sales	Sales	$	492		$	494		—	%	Sales	$	327		$	492		(34)	%

Operating profit (loss)	Operating profit (loss)	$	(44)		$	(18)		(144)	%	Operating profit (loss)	$	2		$	(44)		105	%
As a percent of sales	As a percent of sales	(8.9)		%	(3.6)		%			As a percent of sales	0.6		%	(8.9)		%


	Quarter Ended March 31, ~~2022~~2023 vs. ~~2021~~2022
	% Change
Factors Contributing to Changes - Sales
Volume/price	16	%
~~Cost pass-through~~	1		%
Currency	~~(2)~~(1)	%
Acquisitions/divestitures	— (39)	%

	— (34)	%

Other consists of corporate costs and a few smaller businesses ~~including:~~including Surface Technologies ~~GIST~~ and global helium ~~wholesale;~~wholesale, which individually do not meet the quantitative thresholds for separate presentation.

Sales

Sales for Other decreased $2$165 million for the first quarter ~~2022~~ versus the respective ~~2021~~2022 period. The impact of net divestitures decreased sales by 39% in the quarter, primarily due to sale of GIST business in third quarter of 2022. Currency translation decreased sales by 2%1% in the quarter. Underlying sales increased 1%6% in the quarter, driven primarily by ~~higher pricing partially offset by lower~~price in the global helium ~~volumes.~~business.

Operating profit

Operating profit in Other ~~decreased $26~~increased $46 million, or ~~144%~~105% in the first quarter ~~2022~~ versus the respective ~~2021~~2022 period, due primarily to higher pricing and lower ~~volumes and higher sourcing~~corporate costs in the ~~global helium business.~~quarter.

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Currency

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

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


		Percentage of YTD 2022 Consolidated Sales		Exchange Rate for Income Statement		Exchange Rate for Balance Sheet			Percentage of YTD 2023 Consolidated Sales		Exchange Rate for Income Statement		Exchange Rate for Balance Sheet
				Year-To-Date Average		March 31,	December 31,				Year-To-Date Average		March 31,	December 31,
Currency	Currency			2022	2021	2022	2021	Currency			2023	2022	2023	2022
Euro	Euro	23	%	0.89	0.83	0.90	0.88	Euro	20	%	0.93	0.89	0.92	0.93
Chinese yuan	Chinese yuan	8	%	6.35	6.48	6.34	6.36	Chinese yuan	8	%	6.84	6.35	6.87	6.90
British pound	British pound	7	%	0.75	0.73	0.76	0.74	British pound	5	%	0.82	0.75	0.81	0.83
Australian dollar	Australian dollar	4	%	1.38	1.29	1.34	1.38	Australian dollar	4	%	1.46	1.38	1.50	1.47
Brazilian real	Brazilian real	4	%	5.22	5.46	4.74	5.58	Brazilian real	4	%	5.19	5.22	5.06	5.28
Canadian dollar	Canadian dollar	3	%	1.27	1.27	1.25	1.26	Canadian dollar	3	%	1.35	1.27	1.35	1.36
Korean won	Korean won	3	%	1,203	1,114	1,212	1,189	Korean won	3	%	1,275	1,203	1,302	1,266
Mexican peso	Mexican peso	2	%	20.50	20.34	19.87	20.53	Mexican peso	3	%	18.66	20.50	18.05	19.50
Indian rupee	Indian rupee	2	%	75.21	72.90	75.79	74.34	Indian rupee	2	%	82.24	75.21	82.18	82.73
South African rand	South African rand	1	%	15.23	14.96	14.61	15.94	South African rand	1	%	17.74	15.23	17.80	17.04
Swedish krona	Swedish krona	1	%	9.34	8.39	9.40	9.05	Swedish krona	1	%	10.45	9.34	10.40	10.43
Thailand bhat	Thailand bhat	1	%	33.04	30.28	33.26	33.40	Thailand bhat	1	%	33.94	33.04	34.20	34.61
Russian ruble		1	%	87.41	74.43	118.69	74.68

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Liquidity, Capital Resources and Other Financial Data

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


(Millions of dollars)	(Millions of dollars)	Three months ended March 31,				(Millions of dollars)	Three months ended March 31,
		2022		2021			2023		2022
NET CASH PROVIDED BY (USED FOR):	NET CASH PROVIDED BY (USED FOR):					NET CASH PROVIDED BY (USED FOR):
OPERATING ACTIVITIES	OPERATING ACTIVITIES					OPERATING ACTIVITIES
Net income (including noncontrolling interests)	Net income (including noncontrolling interests)	$	1,210	$	1,017	Net income (including noncontrolling interests)	$	1,552	$	1,210
Non-cash charges (credits):	Non-cash charges (credits):					Non-cash charges (credits):
Add: Depreciation and amortization	Add: Depreciation and amortization	1,112		1,166		Add: Depreciation and amortization	948		1,112
Add: Deferred income taxes	Add: Deferred income taxes	(59)		(65)		Add: Deferred income taxes	4		(59)
Add: Share-based compensation	Add: Share-based compensation	34		29		Add: Share-based compensation	30		34
Add: Cost reduction programs and other charges, net of payments (a)		(34)		(76)
Add: Other charges, net of payments (a)						Add: Other charges, net of payments (a)	(61)		(34)
Net income adjusted for non-cash charges	Net income adjusted for non-cash charges	2,263		2,071		Net income adjusted for non-cash charges	2,473		2,263
Less: Working capital	Less: Working capital	(239)		(42)		Less: Working capital	(325)		(239)

Less: Pension contributions	Less: Pension contributions	(13)		(12)		Less: Pension contributions	(10)		(13)
Other	Other	(11)		92		Other	(230)		(11)
Net cash provided by operating activities		$	2,000	$	2,109
Net cash provided by (used for) operating activities						Net cash provided by (used for) operating activities	$	1,908	$	2,000
INVESTING ACTIVITIES	INVESTING ACTIVITIES					INVESTING ACTIVITIES
Capital expenditures	Capital expenditures	(649)		(762)		Capital expenditures	(829)		(649)
Acquisitions, net of cash acquired	Acquisitions, net of cash acquired	(43)		(10)		Acquisitions, net of cash acquired	(808)		(43)
Divestitures and asset sales		27		21
Divestitures, net of cash divested and asset sales						Divestitures, net of cash divested and asset sales	3		27
Net cash provided by (used for) investing activities	Net cash provided by (used for) investing activities	$	(665)	$	(751)	Net cash provided by (used for) investing activities	$	(1,634)	$	(665)
FINANCING ACTIVITIES	FINANCING ACTIVITIES					FINANCING ACTIVITIES
Debt increase (decrease) - net	Debt increase (decrease) - net	2,546		681		Debt increase (decrease) - net	717		2,546
Issuances (purchases) of common stock - net	Issuances (purchases) of common stock - net	(1,709)		(851)		Issuances (purchases) of common stock - net	(846)		(1,709)
Cash dividends - Linde plc shareholders	Cash dividends - Linde plc shareholders	(592)		(553)		Cash dividends - Linde plc shareholders	(623)		(592)
Noncontrolling interest transactions and other	Noncontrolling interest transactions and other	(1)		(247)		Noncontrolling interest transactions and other	(12)		(1)
Net cash provided by (used for) financing activities	Net cash provided by (used for) financing activities	$	244	$	(970)	Net cash provided by (used for) financing activities	$	(764)	$	244

Effect of exchange rate changes on cash and cash equivalents	Effect of exchange rate changes on cash and cash equivalents	$	62	$	(46)	Effect of exchange rate changes on cash and cash equivalents	$	16	$	62
Cash and cash equivalents, end-of-period	Cash and cash equivalents, end-of-period	$	4,464	$	4,096	Cash and cash equivalents, end-of-period	$	4,962	$	4,464

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

Cash Flow from Operations

Cash provided by operations of ~~$2,000~~$1,908 million for the three months ended March 31, ~~2022~~2023 decreased ~~$109~~$92 million, or 5%, versus ~~2021.~~2022. The decrease was driven primarily by higher working capital requirements, ~~which more than offset higher net income adjusted for non-cash charges. Cost reduction programs and other~~including lower inflows from contract liabilities from engineering customer advanced payments. Other charges were ~~benefits~~a charge of $18 million and a benefit of $4 million, ~~and $8 million, respectively,~~ for the three months ended March 31, 2023 and 2022, ~~and 2021.~~respectively. Related cash outflows were ~~$30~~$79 million and ~~$68~~$30 million for the same respective periods.

Linde estimates that total ~~2022~~2023 required contributions to its pension plans will be in the range of approximately $40 million to ~~$50~~$50 million, of which ~~$13~~$10 million has been made through March 31, ~~2022.~~

~~Investing~~

2023.

~~Net cash used for investing~~As of ~~$665 million for the three months ended~~ March 31, ~~2022 decreased $86 million versus 2021, primarily driven by lower capital expenditures, partially offset by higher acquisition spend net of~~2023, Linde has approximately $1.8 billion recorded in contract liabilities within the condensed consolidated balance sheet related to engineering projects in Russia. Any obligation to satisfy the related residual contract liabilities may have an adverse effect on Linde’s cash ~~acquired.~~flows.

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Investing

Net cash used for investing of $1,634 million for the three months ended March 31, 2023 increased $969 million versus 2022, due to higher acquisitions, net of cash acquired and higher capital expenditures.

Capital expenditures for the three months ended March 31, ~~2022~~2023 were ~~$649~~$829 million, ~~$113~~$180 million ~~lower~~higher than the prior ~~year.~~year due primarily to investments in new plant and production equipment for operating and growth requirements.

At March 31, ~~2022,~~2023, Linde's sale of gas backlog of large projects under construction was approximately ~~$3.5~~$4.2 billion. This represents the total estimated capital cost of large plants under construction.

Acquisitions, net of cash acquired for the three months ended March 31, 2023 and 2022 ~~and 2021~~ were ~~$43~~$808 million and 10$43 million, respectively, and related primarily to ~~acquisitions~~the acquisition of nexAir in ~~EMEA.~~ the Americas (see Note 13 to the condensed consolidated financial statements).

Divestitures, net of cash divested and asset sales for the three months ended March 31, 2023 and 2022 ~~and 2021~~ were ~~$27~~$3 million and ~~$21~~$27 million, respectively.

Financing

Cash used for financing activities was $764 million for the three months ended March 31, 2023 as compared to cash provided by financing activities ~~was~~of $244 million for the three months ended March 31, ~~2022 as compared to cash used for financing activities of $970 million for the three months ended March 31, 2021.~~2022. Cash provided by debt was $717 million versus $2,546 million ~~versus $681 million~~ in ~~2021~~2022 driven primarily by ~~higher~~lower commercial paper borrowings and lower net debt issuances in ~~2022.~~2023. In ~~January 2022,~~February 2023, Linde repaid ~~€1.0 billion~~$500 million of ~~0.250%~~2.70% notes that became due. ~~In March 2022, Linde issued €500 million of 1.000% notes due 2027, €750 million of 1.375% notes due 2031, and €800 million of 1.625% notes due 2035.~~

Net purchases of ordinary shares were $846 million in 2023 versus $1,709 million in ~~2022 versus $851 million in 2021.~~2022. On February 28, 2022, the company’s Board of Directors approved the additional repurchase of $10.0 billion of its ordinary shares. For additional information related to the share repurchase programs, see Part II Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Cash dividends of ~~$592~~$623 million increased ~~$39~~$31 million from ~~2021~~2022 driven primarily by a ~~10%~~9% increase in quarterly dividends per share from ~~$1.06~~$1.17 per share to ~~$1.17~~$1.275 per share, partially offset by lower shares outstanding. Cash used for Noncontrolling interest transactions and other was $1$12 million for the three months ended March 31, ~~2022~~2023 versus cash used of ~~$247~~$1 million for the respective ~~2021 period due to the settlement of the buyout of minority interests in the Republic of South Africa in January of 2021.~~2022 period.

The company continues to believe it has sufficient operating flexibility, cash, and funding sources to meet its business needs around the world. The company had ~~$4.5~~$5.0 billion of cash as of March 31, ~~2022,~~2023, and has a $5 billion and a $1.5 billion unsecured and undrawn revolving credit agreement with no associated financial covenants. No borrowings were outstanding under the credit agreement as of March 31, ~~2022.~~2023. The company does not anticipate any limitations on its ability to access the debt capital markets and/or other external funding sources and remains committed to its strong ratings from Moody’s and Standard & Poor’s.

Legal Proceedings

See Note 9 to the condensed consolidated financial statements.

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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.


		Quarter Ended March 31,					Quarter Ended March 31,
		2022			2021				2023			2022

Adjusted Operating Profit and Operating Margin	Adjusted Operating Profit and Operating Margin							Adjusted Operating Profit and Operating Margin
Reported operating profit	Reported operating profit	$	1,480		$	1,213		Reported operating profit	1,933			$	1,480
Add: Cost reduction programs and other charges		(4)			(8)
Add: Other charges								Add: Other charges	18			(4)

Add: Purchase accounting impacts - Linde AG (c)	Add: Purchase accounting impacts - Linde AG (c)	429			483			Add: Purchase accounting impacts - Linde AG (c)	255			429
Total adjustments	Total adjustments	425			475			Total adjustments	273			425
Adjusted operating profit	Adjusted operating profit	$	1,905		$	1,688		Adjusted operating profit	$	2,206		$	1,905

Reported percentage change	Reported percentage change	22		%	65		%	Reported percentage change	31		%	22		%
Adjusted percentage change	Adjusted percentage change	13		%	25		%	Adjusted percentage change	16		%	13		%

Reported sales	Reported sales	$	8,211		$	7,243		Reported sales	$	8,193		$	8,211

Reported operating margin	Reported operating margin	18.0		%	16.7		%	Reported operating margin	23.6		%	18.0		%
Adjusted operating margin	Adjusted operating margin	23.2		%	23.3		%	Adjusted operating margin	26.9		%	23.2		%

Adjusted Depreciation and amortization	Adjusted Depreciation and amortization							Adjusted Depreciation and amortization
Reported depreciation and amortization	Reported depreciation and amortization	$	1,112		$	1,166		Reported depreciation and amortization	$	948		$	1,112
Less: Purchase accounting impacts - Linde AG (c)	Less: Purchase accounting impacts - Linde AG (c)	(418)			(478)			Less: Purchase accounting impacts - Linde AG (c)	(250)			(418)
Adjusted depreciation and amortization	Adjusted depreciation and amortization	$	694		$	688		Adjusted depreciation and amortization	$	698		$	694

Adjusted Other Income (Expense) - net	Adjusted Other Income (Expense) - net							Adjusted Other Income (Expense) - net
Reported Other Income (Expense) - net	Reported Other Income (Expense) - net	$	12		$	4		Reported Other Income (Expense) - net	$	(5)		$	12
Less: Purchase accounting impacts - Linde AG (c)	Less: Purchase accounting impacts - Linde AG (c)	(11)			(5)			Less: Purchase accounting impacts - Linde AG (c)	(5)			(11)
Adjusted Other Income (Expense) - net	Adjusted Other Income (Expense) - net	$	23		$	9		Adjusted Other Income (Expense) - net	$	—		$	23

Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost	Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost							Adjusted Net Pension and OPEB Cost (Benefit), Excluding Service Cost
Reported net pension and OPEB cost (benefit), excluding service cost	Reported net pension and OPEB cost (benefit), excluding service cost	$	(64)		$	(49)		Reported net pension and OPEB cost (benefit), excluding service cost	$	(45)		$	(64)
Add: Pension settlement charges		—			—

Adjusted Net Pension and OPEB cost (benefit), excluding service costs	Adjusted Net Pension and OPEB cost (benefit), excluding service costs	$	(64)		$	(49)		Adjusted Net Pension and OPEB cost (benefit), excluding service costs	$	(45)		$	(64)

Adjusted Interest Expense - Net	Adjusted Interest Expense - Net							Adjusted Interest Expense - Net
Reported interest expense - net	Reported interest expense - net	$	9		$	20		Reported interest expense - net	$	37		$	9
Add: Purchase accounting impacts - Linde AG (c)	Add: Purchase accounting impacts - Linde AG (c)	10			18			Add: Purchase accounting impacts - Linde AG (c)	9			10
Adjusted interest expense - net								Adjusted interest expense - net	$	46		$	19

Adjusted interest expense - net		$	19		$	38

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Adjusted Income Taxes (a)	Adjusted Income Taxes (a)							Adjusted Income Taxes (a)
Reported income taxes	Reported income taxes	$	369		$	268		Reported income taxes	$	430		$	369
Add: Purchase accounting impacts - Linde AG (c)	Add: Purchase accounting impacts - Linde AG (c)	108			118			Add: Purchase accounting impacts - Linde AG (c)	57			108
Add: Pension settlement charges		—			—
Add: Cost reduction programs and other charges		(3)			20

Add: Other charges								Add: Other charges	45			(3)
Total adjustments	Total adjustments	105			138			Total adjustments	102			105
Adjusted income taxes	Adjusted income taxes	$	474		$	406		Adjusted income taxes	$	532		$	474

Adjusted Effective Tax Rate (a)	Adjusted Effective Tax Rate (a)							Adjusted Effective Tax Rate (a)
Reported income before income taxes and equity investments	Reported income before income taxes and equity investments	$	1,535		$	1,242		Reported income before income taxes and equity investments	$	1,941		$	1,535
Add: Pension settlement charge		—			—

Add: Purchase accounting impacts - Linde AG (c)	Add: Purchase accounting impacts - Linde AG (c)	419			465			Add: Purchase accounting impacts - Linde AG (c)	246			419
Add: Cost reduction programs and other charges		(4)			(8)

Add: Other charges								Add: Other charges	18			(4)
Total adjustments	Total adjustments	415			457			Total adjustments	264			415
Adjusted income before income taxes and equity investments	Adjusted income before income taxes and equity investments	$	1,950		$	1,699		Adjusted income before income taxes and equity investments	$	2,205		$	1,950

Reported Income taxes	Reported Income taxes	$	369		$	268		Reported Income taxes	$	430		$	369
Reported effective tax rate	Reported effective tax rate	24.0		%	21.6		%	Reported effective tax rate	22.2		%	24.0		%

Adjusted income taxes	Adjusted income taxes	$	474		$	406		Adjusted income taxes	$	532		$	474
Adjusted effective tax rate	Adjusted effective tax rate	24.3		%	23.9		%	Adjusted effective tax rate	24.1		%	24.3		%

Income from Equity Investments	Income from Equity Investments							Income from Equity Investments
Reported income from equity investments	Reported income from equity investments	$	44		$	43		Reported income from equity investments	$	41		$	44
Add: Purchase accounting impacts - Linde AG (c)	Add: Purchase accounting impacts - Linde AG (c)	20			19			Add: Purchase accounting impacts - Linde AG (c)	18			20
Add: Cost reduction programs and other charges (e)		—			—

Adjusted income from equity investments	Adjusted income from equity investments	$	64		$	62		Adjusted income from equity investments	$	59		$	64

Adjusted Noncontrolling Interests from Continuing Operations
Reported noncontrolling interests from continuing operations		$	(36)		$	(38)
Adjusted Noncontrolling Interests								Adjusted Noncontrolling Interests
Reported noncontrolling interests								Reported noncontrolling interests	$	(36)		$	(36)
Add: Purchase accounting impacts - Linde AG (c)								Add: Purchase accounting impacts - Linde AG (c)	(3)			(4)
Adjusted noncontrolling interests								Adjusted noncontrolling interests	$	(39)		$	(40)

Add: Purchase accounting impacts - Linde AG (c)		(4)			(5)
Adjusted Net Income - Linde plc (b)								Adjusted Net Income - Linde plc (b)
Reported net income - Linde plc								Reported net income - Linde plc	$	1,516		$	1,174

Adjusted noncontrolling interests from continuing operations		$	(40)		$	(43)

Adjusted Income from Continuing Operations (b)
Reported income from continuing operations		$	1,174		$	979
Add: Pension settlement charge		—			—
Add: Cost reduction programs and other charges		(1)			(28)

Add: Other charges								Add: Other charges	(27)			(1)
Add: Purchase accounting impacts - Linde AG (c)	Add: Purchase accounting impacts - Linde AG (c)	327			361			Add: Purchase accounting impacts - Linde AG (c)	204			327
Total adjustments	Total adjustments	326			333			Total adjustments	177			326
Adjusted income from continuing operations		$	1,500		$	1,312

Adjusted net income - Linde plc								Adjusted net income - Linde plc	$	1,693		$	1,500

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Adjusted Diluted EPS from Continuing Operations (b)
Reported diluted EPS from continuing operations		$	2.30		$	1.86
Add: Pension settlement charge		—			—
Add: Cost reduction programs and other charges		—			(0.05)
Adjusted Diluted EPS (b)								Adjusted Diluted EPS (b)
Reported diluted EPS								Reported diluted EPS	$	3.06		$	2.30

Add: Other charges								Add: Other charges	(0.05)			—
Add: Purchase accounting impacts - Linde AG (c)	Add: Purchase accounting impacts - Linde AG (c)	0.63			0.68			Add: Purchase accounting impacts - Linde AG (c)	0.41			0.63
Total adjustments	Total adjustments	0.63			0.63			Total adjustments	0.36			0.63
Adjusted diluted EPS from continuing operations		$	2.93		$	2.49
Adjusted diluted EPS								Adjusted diluted EPS	$	3.42		$	2.93

Reported percentage change	Reported percentage change	24		%	74		%	Reported percentage change	33		%	24		%
Adjusted percentage change	Adjusted percentage change	18		%	32		%	Adjusted percentage change	17		%	18		%

Adjusted EBITDA and % of Sales	Adjusted EBITDA and % of Sales							Adjusted EBITDA and % of Sales
Income from continuing operations		$	1,174		$	979
Add: Noncontrolling interests related to continuing operations		36			38
Net Income - Linde plc								Net Income - Linde plc	$	1,516		$	1,174
Add: Noncontrolling interests								Add: Noncontrolling interests	36			36
Add: Net pension and OPEB cost (benefit), excluding service cost	Add: Net pension and OPEB cost (benefit), excluding service cost	(64)			(49)			Add: Net pension and OPEB cost (benefit), excluding service cost	(45)			(64)
Add: Interest expense	Add: Interest expense	9			20			Add: Interest expense	37			9
Add: Income taxes	Add: Income taxes	369			268			Add: Income taxes	430			369
Add: Depreciation and amortization	Add: Depreciation and amortization	1,112			1,166			Add: Depreciation and amortization	948			1,112
EBITDA from continuing operations		$	2,636		$	2,422
Add: Cost reduction programs and other charges		(4)			(8)
EBITDA								EBITDA	$	2,922		$	2,636
Add: Other charges								Add: Other charges	18			(4)
Add: Purchase accounting impacts - Linde AG (c)	Add: Purchase accounting impacts - Linde AG (c)	31			24			Add: Purchase accounting impacts - Linde AG (c)	23			31
Total adjustments	Total adjustments	27			16			Total adjustments	41			27
Adjusted EBITDA from continuing operations		$	2,663		$	2,438
Adjusted EBITDA								Adjusted EBITDA	$	2,963		$	2,663

Reported sales	Reported sales	$	8,211		$	7,243		Reported sales	$	8,193		$	8,211
% of sales	% of sales							% of sales
EBITDA from continuing operations		32.1		%	33.4		%
Adjusted EBITDA from continuing operations		32.4		%	33.7		%
EBITDA								EBITDA	35.7		%	32.1		%
Adjusted EBITDA								Adjusted EBITDA	36.2		%	32.4		%

(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 Adjusted 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 2018 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 purchase 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:~~Interests: Represents the noncontrolling interests’ ownership portion of the adjustments described above determined on an entity by entity basis.

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

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Net Debt and Adjusted Net Debt

Net debt is a financial liquidity measure used by investors, financial analysts and management to evaluate the ability of a company to repay its debt. Purchase accounting impacts have been excluded as they are non-cash and do not have an impact on liquidity.


		March 31, 2022		December 31, 2021			March 31, 2023		December 31, 2022
(Millions of dollars)	(Millions of dollars)					(Millions of dollars)
Debt	Debt	$	16,456	$	14,207	Debt	$	18,777	$	17,914
Less: cash and cash equivalents	Less: cash and cash equivalents	(4,464)		(2,823)		Less: cash and cash equivalents	(4,962)		(5,436)
Net debt	Net debt	11,992		11,384		Net debt	13,815		12,478
Less: purchase accounting impacts - Linde AG	Less: purchase accounting impacts - Linde AG	(50)		(61)		Less: purchase accounting impacts - Linde AG	(13)		(22)
Adjusted net debt	Adjusted net debt	$	11,942	$	11,323	Adjusted net debt	$	13,802	$	12,456

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Supplemental Guarantee Information

On June 6, 2020, the company filed a Form S-3 Registration Statement with the SEC ("the Registration Statement").

Linde plc may offer debt securities, preferred shares, depositary shares and ordinary shares under the Registration Statement, and debt securities exchangeable for or convertible into preferred shares, ordinary shares or other debt securities. Debt securities of Linde plc may be guaranteed by Linde Inc and/or Linde GmbH. Linde plc may provide guarantees of debt securities offered by its wholly owned subsidiaries Linde Inc. or Linde Finance under the Registration Statement.

Linde Inc. is a wholly owned subsidiary of Linde plc. Linde Inc. may offer debt securities under the Registration Statement. Debt securities of Linde Inc. will be guaranteed by Linde plc, and such guarantees by Linde plc may be guaranteed by Linde GmbH. Linde Inc. may also provide (i) guarantees of debt securities offered by Linde plc under the Registration Statement and (ii) guarantees of the guarantees provided by Linde plc of debt securities of Linde Finance offered under the Registration Statement.

Linde Finance B.V. is a wholly owned subsidiary of Linde plc. Linde Finance may offer debt securities under the Registration Statement. Linde plc will guarantee debt securities of Linde Finance offered under the Registration Statement. Linde GmbH and Linde Inc. may guarantee Linde plc’s obligations under its downstream guarantee.

Linde GmbH is a wholly owned subsidiary of Linde plc. Linde GmbH may provide (i) guarantees of debt securities offered by Linde plc under the Registration Statement and (ii) upstream guarantees of downstream guarantees provided by Linde plc of debt securities of Linde Inc. or Linde Finance offered under the Registration Statement.

In September 2019, Linde plc provided downstream guarantees of all of the pre-business combination Linde Inc. and Linde Finance notes, and Linde GmbH and Linde Inc., respectively, provided upstream guarantees of Linde plc’s downstream guarantees.

For further information about the guarantees of the debt securities registered under the Registration Statement (including the ranking of such guarantees, limitations on enforceability of such guarantees and the circumstances under which such guarantees may be released), see “Description of Debt Securities – Guarantees” and “Description of Debt Securities – Ranking” in the Registration Statement, which subsections are incorporated herein by reference.

The following tables present summarized financial information for Linde plc, Linde Inc., Linde GmbH and Linde Finance on a combined basis, after eliminating intercompany transactions and balances between them and excluding investments in and equity in earnings from non-guarantor subsidiaries.

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(Millions of dollars)	(Millions of dollars)					(Millions of dollars)
Statement of Income Data	Statement of Income Data	Three Months Ended March 31, 2022		Twelve Months Ended December 31, 2021		Statement of Income Data	Three Months Ended March 31, 2023		Twelve Months Ended December 31, 2022
Sales	Sales	$	2,121	$	7,767	Sales	$	2,078	$	8,850
Operating profit	Operating profit	293		973		Operating profit	398		1,337
Net income	Net income	192		721		Net income	265		675
Transactions with non-guarantor subsidiaries	Transactions with non-guarantor subsidiaries	364		2,067		Transactions with non-guarantor subsidiaries	548		2,241

Balance Sheet Data (at period end)	Balance Sheet Data (at period end)					Balance Sheet Data (at period end)
Current assets (a)	Current assets (a)	$	7,158	$	5,826	Current assets (a)	$	5,918	$	11,478
Long-term assets (b)	Long-term assets (b)	14,501		15,928		Long-term assets (b)	14,158		13,949
Current liabilities (c)	Current liabilities (c)	9,752		8,853		Current liabilities (c)	13,032		11,767
Long-term liabilities (d)	Long-term liabilities (d)	43,200		42,860		Long-term liabilities (d)	46,488		48,210

(a) From current assets above, amount due from non-guarantor subsidiaries	(a) From current assets above, amount due from non-guarantor subsidiaries	$	4,362	$	4,209	(a) From current assets above, amount due from non-guarantor subsidiaries	$	2,473	$	7,260
(b) From long-term assets above, amount due from non-guarantor subsidiaries	(b) From long-term assets above, amount due from non-guarantor subsidiaries	2,070		3,257		(b) From long-term assets above, amount due from non-guarantor subsidiaries	1,813		1,982
(c) From current liabilities above, amount due to non-guarantor subsidiaries	(c) From current liabilities above, amount due to non-guarantor subsidiaries	1,362		1,304		(c) From current liabilities above, amount due to non-guarantor subsidiaries	1,397		1,334
(d) From long-term liabilities above, amount due to non-guarantor subsidiaries	(d) From long-term liabilities above, amount due to non-guarantor subsidiaries	27,226		28,142		(d) From long-term liabilities above, amount due to non-guarantor subsidiaries	32,174		33,268

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Refer to Item 7A. to Part II of Linde's ~~2021~~2022 Annual Report on Form 10-K for discussion.

Item 4. Controls and Procedures

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

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

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PART II - OTHER INFORMATION

Linde plc and Subsidiaries

Item 1. Legal Proceedings

See Note 9 to the condensed consolidated financial statements for a description of current legal proceedings.

Item 1A. Risk Factors

Through the quarterly period covered by this report, there have been no material changes to the risk factors disclosed in Item 1A to Part I of Linde's Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

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

Purchases of Equity Securities- Certain information regarding purchases made by or on behalf of the company or any affiliated purchaser (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934, as amended) of its ordinary shares during the quarter ended March 31, ~~2022~~2023 is provided below:

Period
Total Number
of Shares
Purchased
(Thousands)
Average
Price Paid
Per Share
Total Numbers of Shares
Purchased as Part of
Publicly Announced
Program (1,2)
(Thousands)
Approximate Dollar
Value of Shares that
May Yet be Purchased
Under the Program (1)
(Millions)
January 2022 1,005 $ 325.25 1,005 $ 168
February 2022 554 $ 303.26 554 $ —
March 2022 4,270 $ 294.39 4,270 $ 8,743
First Quarter 2022 5,829 $ 300.57 5,829 $ 8,743


Period	Total Number of Shares Purchased (Thousands)	Average Price Paid Per Share		Total Numbers of Shares Purchased as Part of Publicly Announced Program (1,2) (Thousands)	Approximate Dollar Value of Shares that May Yet be Purchased Under the Program (1) (Millions)
January 2023	358	$	325.21	358	$	5,252
February 2023	2,136	$	326.37	2,136	$	4,555
March 2023	219	$	348.26	219	$	4,479
First Quarter 2023	2,713	$	327.99	2,713	$	4,479

(1) On January 25, 2021 the company's board of directors approved the repurchase of $5.0 billion of its ordinary shares ("2021 program") which could take place from time to time on the open market (and could include the use of 10b5-1 trading plans), subject to market and business conditions. The 2021 program has a maximum repurchase amount of 15% of outstanding shares, began on February 1, 2021, expires on July 31, 2023, and was fully utilized as of February 28, 2022.

~~(2)~~ On February 28, 2022, the company's board of directors approved the repurchase of $10.0 billion of its ordinary shares ("2022 program") which could take place from time to time on the open market (and could include the use of 10b5-1 trading plans), subject to market and business conditions. The 2022 program has a maximum repurchase amount of 15% of outstanding shares, began on March 1, 2022 and expires on July 31, 2024.

As of March 31, ~~2022,~~2023, the company repurchased ~~$495 million and $1.3~~$5.5 billion of its ordinary shares pursuant to the ~~2021 and~~ 2022 ~~programs, respectively.~~program. As of March 31, ~~2022, $8.7~~2023, $4.5 billion of share repurchases remain authorized under the 2022 program.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

(a)

Exhibits

~~4.1~~3.1

~~Final Terms~~Amended and Restated Memorandum and Articles of ~~1.000% Notes due 2027~~Association of Linde ~~plc~~plc. (Filed as Exhibit ~~4.1~~3.1 to Linde ~~plc 's~~Plc’s current report on Form 8-K, dated March ~~31, 2022,~~1, 2023 Filing No. 1-38730, and incorporated herein by reference).

4.1

Supplemental Indenture, dated as of March 1, 2023, by and among the Company, Linde Inc., Linde GmbH and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee, to that certain indenture, dated as of July 15, 1992, by and among Linde Inc. and U.S. Bank National Association, as trustee. (Filed as Exhibit 4.1 to Linde Plc’s current report on Form 8-K, dated March 1, 2023 Filing No. 1-38730, and incorporated herein by reference)

4.2

~~Final Terms~~Supplemental Indenture, dated as of ~~1.375% Notes due 2031~~March 1, 2023, by and among the Company, Linde Inc., Linde GmbH and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee, to that certain indenture, dated as of August 10, 2020, by and among Linde ~~plc~~Inc., the Predecessor and U.S. Bank National Association, as trustee. (Filed as Exhibit 4.2 to Linde ~~plc 's~~Plc’s current report on Form 8-K, dated March ~~31, 2022,~~1, 2023 Filing No. 1-38730, and incorporated herein by reference).

4.3

~~Final Terms of 1.625% Notes due 2035~~Description of Linde plc Ordinary Shares. (Filed as Exhibit 4.3 to Linde ~~plc 's~~Plc’s current report on Form 8-K, dated March ~~31, 2022,~~1, 2023 Filing No. 1-38730, and incorporated herein by reference).

10.1

Successor Borrower Assumption Agreement, dated as of March 1, 2023, by the Company with respect to the Amended and Restated Five-Year Credit Agreement, dated as of December 7, 2022, among the Predecessor, certain of its subsidiaries, various financial institutions party thereto as lenders and Bank of America, N.A., as administrative agent. (Filed as Exhibit 10.1 to Linde Plc’s current report on Form 8-K, dated March 1, 2023 Filing No. 1-38730, and incorporated herein by reference)

10.2

Successor Borrower Assumption Agreement, dated as of March 1, 2023, by the Company with respect to the 364-Day Credit Agreement, dated as of December 7, 2022, among the Predecessor, certain of its subsidiaries, various financial institutions party thereto as lenders and Bank of America, N.A., as administrative agent. (Filed as Exhibit 10.2 to Linde Plc’s current report on Form 8-K, dated March 1, 2023 Filing No. 1-38730, and incorporated herein by reference)

10.3

Form of Director Indemnification Agreement. (Filed as Exhibit 10.3 to Linde Plc’s current report on Form 8-K, dated March 1, 2023 Filing No. 1-38730, and incorporated herein by reference)

31.01

Rule 13a-14(a) Certification

31.02

Rule 13a-14(a) Certification

32.01

Section 1350 Certification (such certifications are furnished for the information of the Commission and shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act).

32.02

101.INS

XBRL Instance Document: The XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH

XBRL Taxonomy Extension Schema

101.CAL

XBRL Taxonomy Extension Calculation Linkbase

101.LAB

XBRL Taxonomy Extension Label Linkbase

101.PRE

XBRL Taxonomy Extension Presentation Linkbase

101.DEF

XBRL Taxonomy Extension Definition Linkbase

*Indicates a management contract or compensatory plan or arrangement.

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SIGNATURE

Linde plc and Subsidiaries

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


						Linde plc

						(Registrant)

Date: ~~May 2, 2022~~April 27, 2023						By: /s/ Kelcey E. Hoyt

						Kelcey E. Hoyt
						Chief Accounting Officer



Note 1. Summary of Significant Accounting Policies			9

Note 2. ~~Cost Reduction Programs and~~ Other Charges			9

Note 3. Supplemental Information			10

Note 4. Debt			11

Note 5. Financial Instruments			1311

Note 6. Fair Value Disclosures			1513

Note 7. Earnings Per Share – Linde plc Shareholders			1614

Note 8. Retirement Programs			1715

Note 9. Commitments and Contingencies			1715

Note 10. Segments			1817

Note 11. Equity			2017

Note 12. Revenue Recognition			2019

Note 13. ~~Subsequent Events~~Business Acquisition			2321


(Millions of dollars)	Quarter Ended March 31, 2021
Sales	Americas		EMEA		APAC		Engineering		Other		Total		%

Merchant	$	771	$	531	$	484	$	—	$	53	$	1,839	25	%
On-Site	689		392		553		—		—		1,634		23	%
Packaged Gas	1,332		861		361		—		6		2,560		35	%
Other	48		15		38		674		435		1,210		17	%
Total	$	2,840	$	1,799	$	1,436	$	674	$	494	$	7,243	100	%