Cover
Cover | 9 Months Ended |
Sep. 30, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2020 |
Document Transition Report | false |
Entity File Number | 001-38730 |
Entity Registrant Name | LINDE PLC |
Entity Incorporation, State or Country Code | L2 |
Entity Tax Identification Number | 98-1448883 |
Entity Address, Address Line One | The Priestley Centre |
Entity Address, Address Line Two | 10 Priestley Road, |
Entity Address, Address Line Three | Surrey Research Park, |
Entity Address, City or Town | Guildford, |
Entity Address, Postal Zip Code | GU2 7XY |
Entity Address, Country | GB |
City Area Code | 14 |
Local Phone Number | 83 242200 |
Title of 12(b) Security | Ordinary shares (€0.001 nominal value per share) |
Trading Symbol | LIN |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 524,856,691 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
Entity Central Index Key | 0001707925 |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Sales | $ 6,855 | $ 7,000 | $ 19,971 | $ 21,148 |
Cost of sales, exclusive of depreciation and amortization | 3,835 | 4,061 | 11,297 | 12,457 |
Selling, general and administrative | 770 | 850 | 2,391 | 2,613 |
Depreciation and amortization | 1,168 | 1,095 | 3,434 | 3,513 |
Research and development | 36 | 44 | 114 | 135 |
Cost reduction programs and other charges | 48 | 125 | 428 | 355 |
Net gain on sale of businesses | 0 | 164 | 0 | 164 |
Other income (expense) - net | (29) | 11 | (14) | 39 |
Operating Profit | 969 | 1,000 | 2,293 | 2,278 |
Interest expense - net | 38 | (3) | 80 | 30 |
Net pension and OPEB cost (benefit), excluding service cost | (41) | 2 | (131) | (7) |
Income From Continuing Operations Before Income Taxes and Equity Investments | 972 | 1,001 | 2,344 | 2,255 |
Income taxes on continuing operations | 265 | 298 | 594 | 607 |
Income From Continuing Operations Before Equity Investments | 707 | 703 | 1,750 | 1,648 |
Income from equity investments | 23 | 28 | 69 | 90 |
Income From Continuing Operations (Including Noncontrolling Interests) | 730 | 731 | 1,819 | 1,738 |
Income from discontinued operations, net of tax | 1 | 7 | 3 | 105 |
Net Income (Including Noncontrolling Interests) | 731 | 738 | 1,822 | 1,843 |
Less: noncontrolling interests from continuing operations | (31) | (3) | (91) | (62) |
Less: noncontrolling interest from discontinued operations | 0 | 0 | 0 | (7) |
Net Income – Linde plc | 700 | 735 | 1,731 | 1,774 |
Income from continuing operations | 699 | 728 | 1,728 | 1,676 |
Income from discontinued operations | $ 1 | $ 7 | $ 3 | $ 98 |
Per Share Data – Linde plc Shareholders | ||||
Basic earnings per share from continuing operations (in dollars per share) | $ 1.33 | $ 1.35 | $ 3.28 | $ 3.09 |
Basic earnings per share from discontinued operations (in dollars per share) | 0 | 0.01 | 0.01 | 0.18 |
Basic earnings per share (in dollars per share) | 1.33 | 1.36 | 3.29 | 3.27 |
Diluted earnings per share from continuing operations (in dollars per share) | 1.32 | 1.34 | 3.25 | 3.07 |
Diluted earnings per share from discontinued operations (in dollars per share) | 0 | 0.01 | 0.01 | 0.18 |
Diluted earnings per share (in dollars per share) | $ 1.32 | $ 1.35 | $ 3.26 | $ 3.25 |
Weighted Average Shares Outstanding (000’s): | ||||
Basic shares outstanding (in shares) | 525,694,000 | 539,753,000 | 527,501,000 | 542,589,000 |
Diluted shares outstanding (in shares) | 530,415,000 | 543,616,000 | 531,724,000 | 546,507,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (INCLUDING NONCONTROLLING INTERESTS) | $ 731 | $ 738 | $ 1,822 | $ 1,843 |
Translation adjustments: | ||||
Foreign currency translation adjustments | 696 | (1,183) | (1,299) | (1,230) |
Reclassification to net income | 0 | 0 | 0 | 12 |
Income taxes | 7 | (6) | 31 | (1) |
Translation adjustments | 703 | (1,189) | (1,268) | (1,219) |
Funded status - retirement obligations (Note 8): | ||||
Retirement program remeasurements | (49) | (158) | 2 | (192) |
Reclassifications to net income | 28 | 55 | 71 | 142 |
Income taxes | (2) | 23 | (26) | 6 |
Funded status - retirement obligations | (23) | (80) | 47 | (44) |
Derivative instruments (Note 5): | ||||
Current unrealized gain (loss) | 16 | (4) | (29) | (24) |
Reclassifications to net income | (5) | 0 | 45 | 0 |
Income taxes | (3) | 0 | (2) | 4 |
Derivative instruments | 8 | (4) | 14 | (20) |
Securities: | ||||
Current unrealized gain (loss) | 0 | 0 | 0 | 1 |
Securities | 0 | 0 | 0 | 1 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 688 | (1,273) | (1,207) | (1,282) |
COMPREHENSIVE INCOME (LOSS) (INCLUDING NONCONTROLLING INTERESTS) | 1,419 | (535) | 615 | 561 |
Less: noncontrolling interests | (71) | 47 | (43) | 69 |
COMPREHENSIVE INCOME (LOSS) - LINDE PLC | $ 1,348 | $ (488) | $ 572 | $ 630 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 5,199 | $ 2,700 |
Accounts receivable - net | 4,033 | 4,322 |
Contract assets | 170 | 368 |
Inventories | 1,733 | 1,697 |
Assets held for sale | 3 | 125 |
Prepaid and other current assets | 1,127 | 1,140 |
Total Current Assets | 12,265 | 10,352 |
Property, plant and equipment - net | 27,945 | 29,064 |
Goodwill | 27,239 | 27,019 |
Other intangible assets - net | 15,731 | 16,137 |
Other long-term assets | 4,029 | 4,040 |
Total Assets | 87,209 | 86,612 |
Liabilities and equity | ||
Accounts payable | 2,903 | 3,266 |
Short-term debt | 4,024 | 1,732 |
Current portion of long-term debt | 1,820 | 1,531 |
Contract liabilities | 1,714 | 1,758 |
Liabilities of assets held for sale | 1 | 2 |
Other current liabilities | 4,330 | 3,871 |
Total Current Liabilities | 14,792 | 12,160 |
Long-term debt | 11,959 | 10,693 |
Other long-term liabilities | 11,866 | 12,124 |
Total Liabilities | 38,617 | 34,977 |
Redeemable noncontrolling interests | 13 | 113 |
Linde plc Shareholders’ Equity: | ||
Ordinary shares,€0.001 par value, authorized 1,750,000,000 shares, 2020 issued: 552,012,862 ordinary shares; 2019 issued: 552,012,862 ordinary shares | 1 | 1 |
Additional paid-in capital | 40,203 | 40,201 |
Retained earnings | 16,927 | 16,842 |
Accumulated other comprehensive income (loss) | (5,973) | (4,814) |
Less: Treasury stock, at cost (2020 – 27,156,171 shares and 2019 – 17,632,318 shares) | (4,983) | (3,156) |
Total Linde plc Shareholders’ Equity | 46,175 | 49,074 |
Noncontrolling interests | 2,404 | 2,448 |
Total Equity | 48,579 | 51,522 |
Total Liabilities and Equity | $ 87,209 | $ 86,612 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - € / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (euro per share) | € 0.001 | € 0.001 |
Common stock, authorized (in shares) | 1,750,000,000 | 1,750,000,000 |
Common stock, issued (in shares) | 552,012,862 | 552,012,862 |
Treasury stock, shares (in shares) | 27,156,171 | 17,632,318 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows € in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Operations | ||
Net Income – Linde plc | $ 1,731 | $ 1,774 |
Less: Income from discontinued operations, net of tax and noncontrolling interests | (3) | (98) |
Add: Noncontrolling interests from continuing operations | 91 | 62 |
Income from continuing operations (including noncontrolling interests) | 1,819 | 1,738 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Cost reduction programs and other charges, net of payments | 240 | (356) |
Amortization of merger-related inventory step-up | 0 | 12 |
Depreciation and amortization | 3,434 | 3,513 |
Deferred income taxes | (299) | (125) |
Share-based compensation | 104 | 64 |
Working capital: | ||
Accounts receivable | (76) | (30) |
Inventory | (101) | (61) |
Prepaid and other current assets | 1 | (65) |
Payables and accruals | (12) | (411) |
Contract assets and liabilities, net | 89 | (35) |
Pension contributions | (76) | (69) |
Long-term assets, liabilities and other | (128) | (230) |
Net cash provided by operating activities | 4,995 | 3,945 |
Investing | ||
Capital expenditures | (2,373) | (2,667) |
Acquisitions, net of cash acquired | (41) | (161) |
Divestitures and asset sales, net of cash divested | 435 | 4,960 |
Net cash provided by (used for) investing activities | (1,979) | 2,132 |
Financing | ||
Short-term debt borrowings (repayments) - net | 2,154 | (231) |
Long-term debt borrowings | 2,763 | 55 |
Long-term debt repayments | (1,582) | (1,568) |
Issuances of ordinary shares | 41 | 60 |
Purchases of ordinary shares | (2,030) | (1,934) |
Cash dividends - Linde plc shareholders | (1,523) | (1,422) |
Noncontrolling interest transactions and other | (201) | (3,257) |
Net cash provided by (used for) financing activities | (378) | (8,297) |
Discontinued Operations | ||
Cash provided by operating activities | 0 | 67 |
Cash used for investing activities | 0 | (59) |
Cash provided by financing activities | 0 | 5 |
Net cash provided by discontinued operations | 0 | 13 |
Effect of exchange rate changes on cash and cash equivalents | (139) | (126) |
Change in cash and cash equivalents | 2,499 | (2,333) |
Cash and cash equivalents, beginning-of-period | 2,700 | 4,466 |
Cash and cash equivalents, including discontinued operations | 5,199 | 2,133 |
Cash and cash equivalents of discontinued operations | 0 | (13) |
Cash and cash equivalents, end-of-period | $ 5,199 | $ 2,120 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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 2019 Annual Report on Form 10-K. There have been no material changes to the company’s significant accounting policies during 2020. Accounting Standards Implemented in 2020 • Credit Losses on Financial Instruments –In June 2016, the FASB issued updated guidance on the measurement of credit losses. The guidance introduces a new accounting model for expected credit losses on financial instruments, including trade receivables, based on estimates of current expected credit losses. This guidance is effective for the company beginning in the first quarter 2020 and requires companies to apply the change in accounting on a modified retrospective basis. The adoption of the guidance had an immaterial impact on the consolidated financial statements. • Simplifying the Test for Goodwill Impairment – In January 2017, the FASB issued updated guidance on the measurement of goodwill. The new guidance eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The guidance is effective for the company beginning in the first quarter 2020. The adoption of the guidance had no impact on the consolidated financial statements. • Fair Value Measurement Disclosures - In August 2018, the FASB issued guidance that modifies the disclosure requirements for fair value measurements. The guidance is effective in fiscal year 2020, with early adoption permitted. Certain amendments must be applied prospectively while other amendments must be applied retrospectively. The adoption of the guidance had an immaterial impact on the consolidated financial statements. Accounting Standards to be Implemented • Retirement Benefit Disclosures - In August 2018, the FASB issued guidance that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans. For Linde, the guidance is effective for the year ending December 31, 2020 and must be applied on a retrospective basis. The company is evaluating the impact this guidance will have on the disclosures in the notes to the consolidated financial statements. Reclassifications – Certain prior periods' amounts have been reclassified to conform to the current year’s presentation. Other Developments |
Cost Reduction Programs and Oth
Cost Reduction Programs and Other Charges | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Cost Reduction Programs and Other Charges | Cost Reduction Programs and Other Charges 2020 Charges Cost reduction programs and other charges were $48 million and $428 million for the quarter and nine months ended September 30, 2020, respectively ($36 million and $318 million, after tax). The following table summarizes the activities related to the company's cost reduction charges for the quarter and nine months ended September 30, 2020: Quarter Ended September 30, 2020 (millions of dollars) Severance costs Other cost reduction charges Total cost reduction program related charges Merger-related and other charges Total Americas $ 2 $ — $ 2 $ 6 $ 8 EMEA 17 4 21 5 26 APAC 2 — 2 — 2 Engineering 1 (1) — — — Other 9 5 14 (2) 12 Total $ 31 $ 8 $ 39 $ 9 $ 48 Nine Months Ended September 30, 2020 (millions of dollars) Severance costs Other cost reduction charges Total cost reduction program related charges Merger-related and other charges Total Americas $ 33 $ 23 $ 56 $ 12 $ 68 EMEA 155 8 163 5 168 APAC 5 2 7 3 10 Engineering 22 6 28 8 36 Other 66 10 76 70 146 Total $ 281 $ 49 $ 330 $ 98 $ 428 Cost Reduction Programs Total cost reduction program related charges were $39 million and $330 million for the quarter and nine months ended September 30, 2020, respectively ($29 million and $236 million, after tax). Severance costs Severance costs were $31 million and $281 million for the quarter and nine months ended September 30, 2020, respectively. As of September 30, 2020 these actions were substantially complete, with the remainder anticipated to be completed during 2021. Other cost reduction charges Other cost reduction charges of $8 million and $49 million for the quarter and nine months ended September 30, 2020, respectively, are primarily charges related to the execution of the company's synergistic actions including location consolidations and business rationalization projects, software and process harmonization, and associated non-recurring costs. Merger-related Costs and Other Charges Linde incurred merger-related costs and other charges which totaled $9 million and $98 million ($7 million and $82 million, after tax) for the quarter and nine months ended September 30, 2020, respectively. Cash Requirements The total cash requirements of the cost reduction program and other charges during the nine months ended September 30, 2020 are estimated to be approximately $338 million and are expected to be paid through 2022. Total cost reduction programs and other charges, net of payments in the condensed consolidated statements of cash flows for the nine months ended September 30, 2020 also reflects the impact of cash payments of liabilities, including merger-related tax liabilities, accrued as of December 31, 2019. The following table summarizes the activities related to the company's cost reduction related charges for the nine months ended September 30, 2020: (millions of dollars) Severance costs Other cost reduction charges Total cost reduction program related charges Merger-related and other charges Total Balance, December 31, 2019 $ 117 $ 16 $ 133 $ 67 $ 200 2020 Cost Reduction Programs and Other Charges 281 49 330 98 428 Less: Cash payments (103) (13) (116) (45) (161) Less: Non-cash charges — (32) (32) (71) (103) Foreign currency translation and other 8 1 9 4 13 Balance, September 30, 2020 $ 303 $ 21 $ 324 $ 53 $ 377 2019 Charges Cost reduction programs and other charges were $125 million and $355 million for the quarter and nine months ended September 30, 2019, respectively ($90 million and $284 million, after tax), including merger-related and other charges of $92 million and $213 million for the quarter and nine months ended September 30, 2019, respectively ($64 million and $169 million, after tax and noncontrolling interest) and synergy-related charges, primarily severance, of $33 million and $142 million for the quarter and nine months ended September 30, 2019, respectively ($26 million and $115 million, after tax). Merger-related and other charges for the third quarter and nine month period include other charges for an asset impairment related to a joint venture in APAC of approximately $73 million ($42 million, after tax and noncontrolling interests) resulting from an unfavorable arbitration ruling. Classification in the condensed consolidated financial statements |
Supplemental Information
Supplemental Information | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Information [Abstract] | |
Supplemental Information | Supplemental Information Receivables For trade receivables an expected credit loss approach was adopted as of January 1, 2020. 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 $4,044 million and $4,390 million at September 30, 2020 and December 31, 2019 respectively and gross receivables aged greater than one year were $337 million and $249 million at September 30, 2020 and December 31, 2019 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 $4,033 million at September 30, 2020 and $4,322 million at December 31, 2019. Allowances for expected credit losses were $452 million at September 30, 2020 and $306 million at December 31, 2019. Provisions for expected credit losses were $136 million and $146 million for the nine months ended September 30, 2020 and 2019, respectively. The allowance activity in the nine months ended September 30, 2020 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) September 30, December 31, Inventories Raw materials and supplies $ 400 $ 396 Work in process 374 331 Finished goods 959 970 Total inventories $ 1,733 $ 1,697 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following is a summary of Linde's outstanding debt at September 30, 2020 and December 31, 2019: (Millions of dollars) September 30, December 31, SHORT-TERM Commercial paper and U.S. bank borrowings $ 3,230 $ 996 Other bank borrowings (primarily international) 794 736 Total short-term debt 4,024 1,732 LONG-TERM (a) (U.S. dollar denominated unless otherwise noted) 2.25% Notes due 2020 (e) — 300 1.75% Euro denominated notes due 2020 (e),(b) — 1,137 0.634% Euro denominated notes due 2020 59 56 4.05% Notes due 2021 500 499 3.875% Euro denominated notes due 2021 (b) 723 711 3.00% Notes due 2021 499 499 0.250% Euro denominated notes due 2022 (b) 1,178 1,129 2.45% Notes due 2022 599 599 2.20% Notes due 2022 499 499 2.70% Notes due 2023 499 499 2.00% Euro denominated notes due 2023 (b) 802 776 5.875% GBP denominated notes due 2023 (b) 437 456 1.20% Euro denominated notes due 2024 643 615 1.875% Euro denominated notes due 2024 (b) 375 361 2.65% Notes due 2025 398 398 1.625% Euro denominated notes due 2025 582 556 3.20% Notes due 2026 725 725 3.434% Notes due 2026 196 196 1.652% Euro denominated notes due 2027 97 93 0.250% Euro denominated notes due 2027 (c) 877 — 1.00% Euro denominated notes due 2028 (b) 927 872 1.10% Notes due 2030 (d) 695 — 1.90% Euro denominated notes due 2030 122 118 0.550% Euro denominated notes due 2032 (c) 872 — 3.55% Notes due 2042 664 662 2.00% Notes due 2050 (d) 296 — Other 10 10 International bank borrowings 355 309 Obligations under finance leases 150 149 13,779 12,224 Less: current portion of long-term debt (1,820) (1,531) Total long-term debt 11,959 10,693 Total debt $ 17,803 $ 13,956 (a) Amounts are net of unamortized discounts, premiums and/or debt issuance costs as applicable. (b) September 30, 2020 and December 31, 2019 included a cumulative $22 million and $38 million adjustment to carrying value, respectively, related to hedge accounting of interest rate swaps. Refer to Note 5 for additional information. (c) In May 2020, Linde issued €750 million of 0.250% notes due 2027 and €750 million of 0.550% notes due 2032. (d) In August 2020, Linde issued $700 million of 1.100% notes due 2030 and $300 million of 2.000% notes due 2050. (e) In September 2020, the company repaid €1,000 million of 1.75% notes and $300 million of 2.25% notes that became due. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 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 three 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 with 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 September 30, 2020, 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 September 30, 2020 and December 31, 2019 for consolidated subsidiaries: Fair Value Notional Amounts Assets (a) Liabilities (a) (Millions of dollars) September 30, December 31, September 30, December 31, September 30, December 31, Derivatives Not Designated as Hedging Instruments: Currency contracts: Balance sheet items $ 6,714 $ 7,936 $ 30 $ 62 $ 97 $ 37 Forecasted transactions 952 748 6 14 12 15 Cross-currency swaps 427 1,029 45 35 6 40 Commodity contracts N/A N/A 1 — — — Total $ 8,093 $ 9,713 $ 82 $ 111 $ 115 $ 92 Derivatives Designated as Hedging Instruments: Currency contracts: Balance sheet items $ — $ 27 $ — $ 2 $ — $ 3 Forecasted transactions 479 464 6 9 14 3 Commodity contracts N/A N/A 1 6 2 1 Interest rate swaps 1,839 1,908 59 39 — — Total Hedges $ 2,318 $ 2,399 $ 66 $ 56 $ 16 $ 7 Total Derivatives $ 10,411 $ 12,112 $ 148 $ 167 $ 131 $ 99 (a) Current assets of $47 million are recorded in prepaid and other current assets; long-term assets of $101 million are recorded in other long-term assets; current liabilities of $119 million are recorded in other current liabilities; and long-term liabilities of $12 million 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") with deferred amounts reclassified to earnings over the same time period as the income statement impact of the associated 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. To reduce the extent of this risk, Linde enters into a limited number of electricity, natural gas, and propane gas derivatives. The fair value adjustments for the majority of these contracts are recorded to AOCI and are eventually offset by the income statement impact of the underlying commodity purchase. Net Investment Hedge As of September 30, 2020, Linde has €2.4 billion ($2.9 billion) intercompany Euro-denominated credit facility loans and intercompany loans which are designated as hedges of the net investment positions in foreign operations. Since hedge inception, exchange rate movements have increased the credit facility loan and intercompany loans by $244 million, with the offsetting loss shown within the cumulative translation component of AOCI in the condensed consolidated balance sheets and the consolidated statements of comprehensive income. Linde had previously designated Euro-denominated debt instruments as net investment hedges to reduce the company's exposure to changes in the currency exchange rate on investments in foreign subsidiaries with Euro functional currencies. Exchange rate movements of $206 million relating to the previously designated Euro-denominated debt incurred in the financial periods of 2019 and prior will remain in AOCI, until appropriate, such as upon sale or liquidation of the related foreign operations at which time amounts will be reclassified to the consolidated statement of income. Exchange rate movements related to the Euro-denominated debt occurring after de-designation are shown in the consolidated statement 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. The notional value of outstanding interest rate swaps of Linde with maturity dates from 2021 through 2028 was $1,839 million at September 30, 2020 and $1,908 million at December 31, 2019 (see Note 4 for further information). Terminated Treasury Rate Locks The unrecognized aggregated losses related to terminated treasury rate lock contracts on the underlying $500 million 3.00% fixed-rate notes that mature in 2021 and the $500 million 2.20% fixed-rate notes that mature in 2022 at September 30, 2020 and December 31, 2019 were immaterial in both periods. The unrecognized gains / (losses) for the treasury rate locks are shown in AOCI and are being recognized on a straight line basis to interest expense – net over the term of the underlying debt agreements. 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) Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2020 2019 2020 2019 Derivatives Not Designated as Hedging Instruments Currency contracts: Balance sheet items Debt-related $ (74) $ 213 $ (213) $ 282 Other balance sheet items 3 28 (48) 30 Total $ (71) $ 241 $ (261) $ 312 * 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 and reclassified to the consolidated statement of income was immaterial for both the quarter and nine months ended September 30, 2020. Net losses expected to be reclassified to earnings during the next twelve months are also not material. The gains (losses) on net investment hedges are recorded as a component of AOCI within foreign currency translation adjustments in the condensed consolidated balance sheets and the condensed consolidated statements of comprehensive income. The gains (losses) on treasury rate locks are recorded as a component of AOCI within derivative instruments in the condensed consolidated balance sheets and the condensed consolidated statements of comprehensive income. The gains (losses) on net investment hedges are reclassified to earnings only when the related currency translation adjustments are required to be reclassified, usually upon sale or liquidation of the investment. The gains (losses) for interest rate contracts are reclassified to earnings as interest expense –net on a straight-line basis over the remaining maturity of the underlying debt. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 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 Level 1 Level 2 Level 3 (Millions of dollars) September 30, December 31, September 30, December 31, September 30, December 31, Assets Derivative assets $ — $ — $ 148 $ 167 $ — $ — Investments and securities* 21 18 — — 33 28 Total $ 21 $ 18 $ 148 $ 167 $ 33 $ 28 Liabilities Derivative liabilities $ — $ — $ 131 $ 99 $ — $ — * 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 within the Americas. 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. The below summarizes the changes in level 3 investments and securities for the nine months ended September 30, 2020. Gains (losses) recognized in earnings are recorded to interest expense - net in the company's consolidated statements of income. The level 3 investments and securities as of January 1, 2020 was $28 million. During the year-to-date period there was approximately $2 million of foreign currency movement and $3 million in gains recognized in earnings. The balance as of September 30, 2020 was $33 million. |
Earnings Per Share _ Linde plc
Earnings Per Share – Linde plc Shareholders | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share – Linde plc Shareholders | 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator (Millions of dollars) Income from continuing operations $ 699 $ 728 $ 1,728 $ 1,676 Income from discontinued operations 1 7 3 98 Net Income – Linde plc $ 700 $ 735 $ 1,731 $ 1,774 Denominator (Thousands of shares) Weighted average shares outstanding 525,339 539,504 527,177 542,360 Shares earned and issuable under compensation plans 355 249 324 229 Weighted average shares used in basic earnings per share 525,694 539,753 527,501 542,589 Effect of dilutive securities Stock options and awards 4,721 3,863 4,223 3,918 Weighted average shares used in diluted earnings per share 530,415 543,616 531,724 546,507 Basic earnings per share from continuing operations $ 1.33 $ 1.35 $ 3.28 $ 3.09 Basic earnings per share from discontinued operations — 0.01 0.01 0.18 Basic Earnings Per Share $ 1.33 $ 1.36 $ 3.29 $ 3.27 Diluted earnings per share from continuing operations $ 1.32 $ 1.34 $ 3.25 $ 3.07 Diluted earnings per share from discontinued operations — 0.01 0.01 0.18 Diluted Earnings Per Share $ 1.32 $ 1.35 $ 3.26 $ 3.25 There were no antidilutive shares for any period presented. |
Retirement Programs
Retirement Programs | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits, Description [Abstract] | |
Retirement Programs | Retirement Programs The components of net pension and postretirement benefits other than pensions (“OPEB”) costs for the quarter and nine months ended September 30, 2020 and 2019 are shown below: Quarter Ended September 30, Nine Months Ended September 30, Pensions OPEB Pensions OPEB (Millions of dollars) 2020 2019 2020 2019 2020 2019 2020 2019 Amount recognized in Operating Profit Service cost $ 38 $ 34 $ 1 $ — $ 111 $ 112 $ 2 $ 1 Amount recognized in Net pension and OPEB cost (benefit), excluding service cost Interest cost 52 61 1 3 154 194 4 6 Expected return on plan assets (122) (117) — — (360) (349) — — Net amortization and deferral 22 17 — (2) 67 45 (2) (4) Curtailment and termination benefits (a) — — — — — 10 — — Settlement charge (b) 6 40 — — 6 91 — — (42) 1 1 1 (133) (9) 2 2 Net periodic benefit cost (benefit) $ (4) $ 35 $ 2 $ 1 $ (22) $ 103 $ 4 $ 3 (a) In the second quarter of 2019, Linde recorded a curtailment gain of $7 million and a charge of $17 million for termination benefits in connection with a defined benefit pension plan freeze. (b) In the third quarter of 2020, Linde recorded a pension settlement charge of $6 million ($5 million after tax). In the first quarter of 2019, benefits of $91 million were paid related to the settlement of a U.S. non-qualified plan that was triggered due to a change in control provision. Accordingly, Linde record ed a pension settlement charge of $51 million ($38 million after tax). In the third quarter of 2019, Linde recorded a pension settlement charge of $40 million ($30 million after tax) related to lump sum payments made from a U.S. qualified plan that were triggered by merger-related divestitures. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 19 to the consolidated financial statements of Linde's 2019 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 September 30, 2020 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. The total estimated exposure relating to such claims, including interest and penalties, as appropriate, is approximately $190 million. Linde has not recorded any liabilities related to such claims based on management judgments, after considering judgments and opinions of outside counsel. 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. • On September 1, 2010, CADE (Brazilian Administrative Council for Economic Defense) announced alleged anticompetitive activity on the part of five industrial gas companies in Brazil and imposed fines. Originally, CADE imposed a civil fine of R$2.2 billion Brazilian reais ($390 million) on White Martins, the Brazil-based subsidiary of Praxair, Inc. The fine was reduced to R$1.7 billion Brazilian reais ($301 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 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 R$237 million Brazilian reais ($42 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 R$188 million Brazilian reais ($33 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, and 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. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segments | Segments For a description of Linde plc's operating segments, refer to Note 20 to the consolidated financial statements on Linde plc's 2019 Annual Report on Form 10-K. The table below presents sales and operating profit information about reportable segments and Other for the quarters and nine months ended September 30, 2020 and 2019. Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2020 2019 2020 2019 SALES (a) Americas $ 2,641 $ 2,771 $ 7,735 $ 8,252 EMEA 1,622 1,634 4,703 4,989 APAC 1,484 1,461 4,115 4,376 Engineering 678 641 2,096 2,029 Other 430 486 1,322 1,440 Total segment sales $ 6,855 $ 6,993 $ 19,971 $ 21,086 Merger-related divestitures — 7 — 62 Total sales $ 6,855 $ 7,000 $ 19,971 $ 21,148 Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2020 2019 2020 2019 SEGMENT OPERATING PROFIT Americas $ 742 $ 671 $ 2,025 $ 1,901 EMEA 370 335 1,028 1,014 APAC 337 308 912 885 Engineering 106 120 335 297 Other (40) (50) (116) (172) Segment operating profit 1,515 1,384 4,184 3,925 Cost reduction programs and other charges (Note 2) (48) (125) (428) (355) Net gain on sale of businesses — 164 — 164 Merger-related divestitures — 2 — 15 Purchase accounting impacts - Linde AG (498) (425) (1,463) (1,471) Total operating profit $ 969 $ 1,000 $ 2,293 $ 2,278 (a) Sales reflect external sales only. Intersegment sales, primarily from Engineering to the industrial gases segments, were not material. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity And Noncontrolling Interests Disclosure [Abstract] | |
Equity | Equity Equity A summary of the changes in total equity for the quarter and nine months ended September 30, 2020 and 2019 is provided below: Quarter Ended September 30, (Millions of dollars) 2020 2019 Activity Linde plc Noncontrolling Total Linde plc Noncontrolling Total Balance, beginning of period $ 45,537 $ 2,387 $ 47,924 $ 50,564 $ 2,315 $ 52,879 Net income (b) 700 31 731 735 2 737 Other comprehensive income (loss) 648 40 688 (1,223) (50) (1,273) Noncontrolling interests: Additions (reductions) — 11 11 — 113 113 Dividends and other capital changes — (65) (65) — (39) (39) Dividends to Linde plc ordinary share holders ($0.963 per share in 2020 and $0.875 per share in 2019) (506) — (506) (471) — (471) Issuances of common stock: For employee savings and incentive plans (20) — (20) 5 — 5 Purchases of common stock (213) — (213) (683) — (683) Share-based compensation 29 — 29 26 — 26 Balance, end of period $ 46,175 $ 2,404 $ 48,579 $ 48,953 $ 2,341 $ 51,294 Nine Months Ended September 30, (Millions of dollars) 2020 2019 Activity Linde plc Shareholders’ Equity Noncontrolling Interests Total Equity Linde plc Shareholders’ Equity Noncontrolling Interests (a) Total Equity Balance, beginning of period (a) $ 49,074 $ 2,448 $ 51,522 $ 51,596 $ 5,484 $ 57,080 Net income (b) 1,731 91 1,822 1,774 67 1,841 Other comprehensive income (loss) (1,159) (48) (1,207) (1,144) (138) (1,282) Noncontrolling interests: Additions (reductions) — 26 26 — (2,953) (2,953) Dividends and other capital changes — (113) (113) — (119) (119) Dividends to Linde plc ordinary share holders ($2.889 per share in 2020 and $2.625 per share in 2019) (1,523) — (1,523) (1,422) — (1,422) Issuances of common stock: For employee savings and incentive plans (28) — (28) (2) — (2) Purchases of common stock (2,024) — (2,024) (1,913) — (1,913) Share-based compensation 104 — 104 64 — 64 Balance, end of period $ 46,175 $ 2,404 $ 48,579 $ 48,953 $ 2,341 $ 51,294 (a) As of the beginning of the nine months ended September 30, 2019, noncontrolling interests included approximately $3.2 billion relating to the 8% of Linde AG shares which were not tendered in the Exchange Offer and were the subject of a cash-merger squeeze-out completed on April 8, 2019. (b) Net income for noncontrolling interests excludes net income related to redeemable noncontrolling interests which is not significant for the quarters and nine months ended September 30, 2020 and September 30, 2019 which is not part of total equity. The components of AOCI are as follows: September 30, December 31, (Millions of dollars) 2020 2019 Cumulative translation adjustment - net of taxes: Americas $ (4,070) $ (3,357) EMEA (168) (136) APAC (80) (140) Engineering 150 (29) Other (432) 282 (4,600) (3,380) Derivatives - net of taxes (13) (27) Pension / OPEB (net of $420 million and $446 million tax benefit in September 30, 2020 and December 31, 2019, respectively) (1,360) (1,407) $ (5,973) $ (4,814) |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 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 Approximately 83% of Linde's consolidated sales are generated from industrial gases and related products in three geographic segments (Americas, APAC, and EMEA) and the remaining 17% is related primarily to the Engineering segment, and to a lesser extent Other (see Note 10 for operating segment details). Linde serves a diverse group of industries including healthcare, petroleum refining, energy, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals and water treatment. 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 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 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 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 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 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 modifications are typically accounted for as part of the existing contract and are recognized as a cumulative adjustment 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 $170 million and $368 million at September 30, 2020 and December 31, 2019, respectively. Total contract liabilities are $2,202 million at September 30, 2020 (current of $1,714 million and $488 million within other long-term liabilities in the condensed consolidated balance sheets). Total contract liabilities were $2,106 million at December 31, 2019 (current contract liabilities of $1,758 million, classified as deferred income within other current liabilities and $348 million in other long-term liabilities in the condensed consolidated balance sheets). Revenue recognized for the nine months ended September 30, 2020 that was included in the contract liability at December 31, 2019 was $1,002 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. Contract asset and liability balances and the changes in these balances are not material. 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 20 to Linde's 2019 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 quarter and nine months ended September 30, 2020 and September 30, 2019. (Millions of dollars) Quarter Ended September 30, 2020 Sales Americas EMEA APAC Engineering Other Total % Merchant $ 739 $ 472 $ 526 $ — $ 34 $ 1,771 26 % On-Site 622 334 528 — — 1,484 22 % Packaged Gas 1,265 799 413 — 5 2,482 36 % Other 15 17 17 678 391 1,118 16 % Total $ 2,641 $ 1,622 $ 1,484 $ 678 $ 430 $ 6,855 100 % (Millions of dollars) Quarter Ended September 30, 2019 Sales Americas EMEA APAC Engineering Other (a) Total % Merchant $ 760 $ 474 $ 523 $ — $ 52 $ 1,809 26 % On-Site 676 345 494 — — 1,515 22 % Packaged Gas 1,303 815 396 — 7 2,521 36 % Other 32 — 48 641 434 1,155 16 % Total $ 2,771 $ 1,634 $ 1,461 $ 641 $ 493 $ 7,000 100 % (Millions of dollars) Nine months ended September 30, 2020 Sales Americas EMEA APAC Engineering Other (a) Total % Merchant $ 2,099 $ 1,357 $ 1,444 $ — $ 110 $ 5,010 25 % On-Site 1,831 981 1,486 — — 4,298 22 % Packaged Gas 3,750 2,329 1,135 — 16 7,230 36 % Other 55 36 50 2,096 1,196 3,433 17 % Total $ 7,735 $ 4,703 $ 4,115 $ 2,096 $ 1,322 $ 19,971 100 % (Millions of dollars) Nine Months Ended September 30, 2019 Sales Americas EMEA APAC Engineering Other (a) Total % Merchant $ 2,198 $ 1,377 $ 1,571 $ — $ 136 $ 5,282 25 % On-Site 2,077 1,077 1,521 — — 4,675 22 % Packaged Gas 3,903 2,531 1,162 — 13 7,609 36 % Other 74 4 122 2,029 1,353 3,582 17 % Total $ 8,252 $ 4,989 $ 4,376 $ 2,029 $ 1,502 $ 21,148 100 % ( a) Other/Other includes $7 million and $62 million for the third quarter and nine months ended September 30, 2019, respectively, of merger-related divestitures that have been excluded from segment sales. 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. The company estimates the consideration related to minimum purchase requirements is approximately $46 billion. This amount excludes all 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. |
Merger-related Divestitures
Merger-related Divestitures | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Merger-related Divestitures | Merger-related Divestitures As described in Note 4 of Linde plc's Annual Report on Form 10-K, as a condition of the European Commission ("EC"), the U.S. Department of Justice ("DOJ"), and other governmental regulatory authorities approval of the merger, Linde plc, Praxair and Linde AG were required to divest several businesses, including the following transactions that were completed in 2019 and 2020: • In March 2019, Linde completed the sale of the majority of Linde AG’s industrial gases business in North America and certain industrial gases business activities of Linde AG's in South America for approximately $2.9 billion in net cash consideration after purchase price adjustments for certain items relating to assets and liabilities of the sold businesses. In addition, divestitures include approximately $0.5 billion of proceeds for incremental plant sales within the Americas under other agreements. • In April 2019, Linde completed the sale of selected assets of Linde Korea with a sale price of $1.2 billion. • In July 2019, Linde completed the sale of select assets of Praxair India with a sale price of $218 million and resulted in a gain of $164 million recognized in "Net gain on sale of businesses" in the consolidated statement of income. • In December 2019, Linde completed the sale of select assets of Linde India with a sale price of $193 million. • In March 2020, Linde completed the sale of select assets of Linde China with a sale price of $98 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting Standards Implemented in 2020 and Accounting Standards to be Implemented | Accounting Standards Implemented in 2020 • Credit Losses on Financial Instruments –In June 2016, the FASB issued updated guidance on the measurement of credit losses. The guidance introduces a new accounting model for expected credit losses on financial instruments, including trade receivables, based on estimates of current expected credit losses. This guidance is effective for the company beginning in the first quarter 2020 and requires companies to apply the change in accounting on a modified retrospective basis. The adoption of the guidance had an immaterial impact on the consolidated financial statements. • Simplifying the Test for Goodwill Impairment – In January 2017, the FASB issued updated guidance on the measurement of goodwill. The new guidance eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The guidance is effective for the company beginning in the first quarter 2020. The adoption of the guidance had no impact on the consolidated financial statements. • Fair Value Measurement Disclosures - In August 2018, the FASB issued guidance that modifies the disclosure requirements for fair value measurements. The guidance is effective in fiscal year 2020, with early adoption permitted. Certain amendments must be applied prospectively while other amendments must be applied retrospectively. The adoption of the guidance had an immaterial impact on the consolidated financial statements. Accounting Standards to be Implemented • Retirement Benefit Disclosures - In August 2018, the FASB issued guidance that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans. For Linde, the guidance is effective for the year ending December 31, 2020 and must be applied on a retrospective basis. The company is evaluating the impact this guidance will have on the disclosures in the notes to the consolidated financial statements. |
Reclassifications | Reclassifications – Certain prior periods' amounts have been reclassified to conform to the current year’s presentation. |
Cost Reduction Programs and O_2
Cost Reduction Programs and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Summary of Cost Reductions | The following table summarizes the activities related to the company's cost reduction charges for the quarter and nine months ended September 30, 2020: Quarter Ended September 30, 2020 (millions of dollars) Severance costs Other cost reduction charges Total cost reduction program related charges Merger-related and other charges Total Americas $ 2 $ — $ 2 $ 6 $ 8 EMEA 17 4 21 5 26 APAC 2 — 2 — 2 Engineering 1 (1) — — — Other 9 5 14 (2) 12 Total $ 31 $ 8 $ 39 $ 9 $ 48 Nine Months Ended September 30, 2020 (millions of dollars) Severance costs Other cost reduction charges Total cost reduction program related charges Merger-related and other charges Total Americas $ 33 $ 23 $ 56 $ 12 $ 68 EMEA 155 8 163 5 168 APAC 5 2 7 3 10 Engineering 22 6 28 8 36 Other 66 10 76 70 146 Total $ 281 $ 49 $ 330 $ 98 $ 428 The following table summarizes the activities related to the company's cost reduction related charges for the nine months ended September 30, 2020: (millions of dollars) Severance costs Other cost reduction charges Total cost reduction program related charges Merger-related and other charges Total Balance, December 31, 2019 $ 117 $ 16 $ 133 $ 67 $ 200 2020 Cost Reduction Programs and Other Charges 281 49 330 98 428 Less: Cash payments (103) (13) (116) (45) (161) Less: Non-cash charges — (32) (32) (71) (103) Foreign currency translation and other 8 1 9 4 13 Balance, September 30, 2020 $ 303 $ 21 $ 324 $ 53 $ 377 |
Supplemental Information (Table
Supplemental Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Information [Abstract] | |
Schedule of Inventories | The following is a summary of Linde's consolidated inventories: (Millions of dollars) September 30, December 31, Inventories Raw materials and supplies $ 400 $ 396 Work in process 374 331 Finished goods 959 970 Total inventories $ 1,733 $ 1,697 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term And Short-term Debt | The following is a summary of Linde's outstanding debt at September 30, 2020 and December 31, 2019: (Millions of dollars) September 30, December 31, SHORT-TERM Commercial paper and U.S. bank borrowings $ 3,230 $ 996 Other bank borrowings (primarily international) 794 736 Total short-term debt 4,024 1,732 LONG-TERM (a) (U.S. dollar denominated unless otherwise noted) 2.25% Notes due 2020 (e) — 300 1.75% Euro denominated notes due 2020 (e),(b) — 1,137 0.634% Euro denominated notes due 2020 59 56 4.05% Notes due 2021 500 499 3.875% Euro denominated notes due 2021 (b) 723 711 3.00% Notes due 2021 499 499 0.250% Euro denominated notes due 2022 (b) 1,178 1,129 2.45% Notes due 2022 599 599 2.20% Notes due 2022 499 499 2.70% Notes due 2023 499 499 2.00% Euro denominated notes due 2023 (b) 802 776 5.875% GBP denominated notes due 2023 (b) 437 456 1.20% Euro denominated notes due 2024 643 615 1.875% Euro denominated notes due 2024 (b) 375 361 2.65% Notes due 2025 398 398 1.625% Euro denominated notes due 2025 582 556 3.20% Notes due 2026 725 725 3.434% Notes due 2026 196 196 1.652% Euro denominated notes due 2027 97 93 0.250% Euro denominated notes due 2027 (c) 877 — 1.00% Euro denominated notes due 2028 (b) 927 872 1.10% Notes due 2030 (d) 695 — 1.90% Euro denominated notes due 2030 122 118 0.550% Euro denominated notes due 2032 (c) 872 — 3.55% Notes due 2042 664 662 2.00% Notes due 2050 (d) 296 — Other 10 10 International bank borrowings 355 309 Obligations under finance leases 150 149 13,779 12,224 Less: current portion of long-term debt (1,820) (1,531) Total long-term debt 11,959 10,693 Total debt $ 17,803 $ 13,956 (a) Amounts are net of unamortized discounts, premiums and/or debt issuance costs as applicable. (b) September 30, 2020 and December 31, 2019 included a cumulative $22 million and $38 million adjustment to carrying value, respectively, related to hedge accounting of interest rate swaps. Refer to Note 5 for additional information. (c) In May 2020, Linde issued €750 million of 0.250% notes due 2027 and €750 million of 0.550% notes due 2032. (d) In August 2020, Linde issued $700 million of 1.100% notes due 2030 and $300 million of 2.000% notes due 2050. (e) In September 2020, the company repaid €1,000 million of 1.75% notes and $300 million of 2.25% notes that became due. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table is a summary of the notional amount and fair value of derivatives outstanding at September 30, 2020 and December 31, 2019 for consolidated subsidiaries: Fair Value Notional Amounts Assets (a) Liabilities (a) (Millions of dollars) September 30, December 31, September 30, December 31, September 30, December 31, Derivatives Not Designated as Hedging Instruments: Currency contracts: Balance sheet items $ 6,714 $ 7,936 $ 30 $ 62 $ 97 $ 37 Forecasted transactions 952 748 6 14 12 15 Cross-currency swaps 427 1,029 45 35 6 40 Commodity contracts N/A N/A 1 — — — Total $ 8,093 $ 9,713 $ 82 $ 111 $ 115 $ 92 Derivatives Designated as Hedging Instruments: Currency contracts: Balance sheet items $ — $ 27 $ — $ 2 $ — $ 3 Forecasted transactions 479 464 6 9 14 3 Commodity contracts N/A N/A 1 6 2 1 Interest rate swaps 1,839 1,908 59 39 — — Total Hedges $ 2,318 $ 2,399 $ 66 $ 56 $ 16 $ 7 Total Derivatives $ 10,411 $ 12,112 $ 148 $ 167 $ 131 $ 99 (a) Current assets of $47 million are recorded in prepaid and other current assets; long-term assets of $101 million are recorded in other long-term assets; current liabilities of $119 million are recorded in other current liabilities; and long-term liabilities of $12 million are recorded in other long-term liabilities. |
Schedule of Derivative Instruments Not Designated as Hedging Instruments Table | The following table summarizes the impact of the company’s derivatives on the consolidated statements of income: Amount of Pre-Tax Gain (Loss) Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2020 2019 2020 2019 Derivatives Not Designated as Hedging Instruments Currency contracts: Balance sheet items Debt-related $ (74) $ 213 $ (213) $ 282 Other balance sheet items 3 28 (48) 30 Total $ (71) $ 241 $ (261) $ 312 * 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. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of 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 Level 1 Level 2 Level 3 (Millions of dollars) September 30, December 31, September 30, December 31, September 30, December 31, Assets Derivative assets $ — $ — $ 148 $ 167 $ — $ — Investments and securities* 21 18 — — 33 28 Total $ 21 $ 18 $ 148 $ 167 $ 33 $ 28 Liabilities Derivative liabilities $ — $ — $ 131 $ 99 $ — $ — * Investments and securities are recorded in prepaid and other current assets and other long-term assets in the company's condensed consolidated balance sheets. |
Earnings Per Share _ Linde pl_2
Earnings Per Share – Linde plc Shareholders (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator (Millions of dollars) Income from continuing operations $ 699 $ 728 $ 1,728 $ 1,676 Income from discontinued operations 1 7 3 98 Net Income – Linde plc $ 700 $ 735 $ 1,731 $ 1,774 Denominator (Thousands of shares) Weighted average shares outstanding 525,339 539,504 527,177 542,360 Shares earned and issuable under compensation plans 355 249 324 229 Weighted average shares used in basic earnings per share 525,694 539,753 527,501 542,589 Effect of dilutive securities Stock options and awards 4,721 3,863 4,223 3,918 Weighted average shares used in diluted earnings per share 530,415 543,616 531,724 546,507 Basic earnings per share from continuing operations $ 1.33 $ 1.35 $ 3.28 $ 3.09 Basic earnings per share from discontinued operations — 0.01 0.01 0.18 Basic Earnings Per Share $ 1.33 $ 1.36 $ 3.29 $ 3.27 Diluted earnings per share from continuing operations $ 1.32 $ 1.34 $ 3.25 $ 3.07 Diluted earnings per share from discontinued operations — 0.01 0.01 0.18 Diluted Earnings Per Share $ 1.32 $ 1.35 $ 3.26 $ 3.25 |
Retirement Programs (Tables)
Retirement Programs (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits, Description [Abstract] | |
Schedule of Pension and OPEB Net Periodic Benefit Costs | The components of net pension and postretirement benefits other than pensions (“OPEB”) costs for the quarter and nine months ended September 30, 2020 and 2019 are shown below: Quarter Ended September 30, Nine Months Ended September 30, Pensions OPEB Pensions OPEB (Millions of dollars) 2020 2019 2020 2019 2020 2019 2020 2019 Amount recognized in Operating Profit Service cost $ 38 $ 34 $ 1 $ — $ 111 $ 112 $ 2 $ 1 Amount recognized in Net pension and OPEB cost (benefit), excluding service cost Interest cost 52 61 1 3 154 194 4 6 Expected return on plan assets (122) (117) — — (360) (349) — — Net amortization and deferral 22 17 — (2) 67 45 (2) (4) Curtailment and termination benefits (a) — — — — — 10 — — Settlement charge (b) 6 40 — — 6 91 — — (42) 1 1 1 (133) (9) 2 2 Net periodic benefit cost (benefit) $ (4) $ 35 $ 2 $ 1 $ (22) $ 103 $ 4 $ 3 (a) In the second quarter of 2019, Linde recorded a curtailment gain of $7 million and a charge of $17 million for termination benefits in connection with a defined benefit pension plan freeze. (b) In the third quarter of 2020, Linde recorded a pension settlement charge of $6 million ($5 million after tax). In the first quarter of 2019, benefits of $91 million were paid related to the settlement of a U.S. non-qualified plan that was triggered due to a change in control provision. Accordingly, Linde record ed a pension settlement charge of $51 million ($38 million after tax). In the third quarter of 2019, Linde recorded a pension settlement charge of $40 million ($30 million after tax) related to lump sum payments made from a U.S. qualified plan that were triggered by merger-related divestitures. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, Sales Table | The table below presents sales and operating profit information about reportable segments and Other for the quarters and nine months ended September 30, 2020 and 2019. Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2020 2019 2020 2019 SALES (a) Americas $ 2,641 $ 2,771 $ 7,735 $ 8,252 EMEA 1,622 1,634 4,703 4,989 APAC 1,484 1,461 4,115 4,376 Engineering 678 641 2,096 2,029 Other 430 486 1,322 1,440 Total segment sales $ 6,855 $ 6,993 $ 19,971 $ 21,086 Merger-related divestitures — 7 — 62 Total sales $ 6,855 $ 7,000 $ 19,971 $ 21,148 Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2020 2019 2020 2019 SEGMENT OPERATING PROFIT Americas $ 742 $ 671 $ 2,025 $ 1,901 EMEA 370 335 1,028 1,014 APAC 337 308 912 885 Engineering 106 120 335 297 Other (40) (50) (116) (172) Segment operating profit 1,515 1,384 4,184 3,925 Cost reduction programs and other charges (Note 2) (48) (125) (428) (355) Net gain on sale of businesses — 164 — 164 Merger-related divestitures — 2 — 15 Purchase accounting impacts - Linde AG (498) (425) (1,463) (1,471) Total operating profit $ 969 $ 1,000 $ 2,293 $ 2,278 (a) Sales reflect external sales only. Intersegment sales, primarily from Engineering to the industrial gases segments, were not material. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity And Noncontrolling Interests Disclosure [Abstract] | |
Summary of Changes in Total Equity | A summary of the changes in total equity for the quarter and nine months ended September 30, 2020 and 2019 is provided below: Quarter Ended September 30, (Millions of dollars) 2020 2019 Activity Linde plc Noncontrolling Total Linde plc Noncontrolling Total Balance, beginning of period $ 45,537 $ 2,387 $ 47,924 $ 50,564 $ 2,315 $ 52,879 Net income (b) 700 31 731 735 2 737 Other comprehensive income (loss) 648 40 688 (1,223) (50) (1,273) Noncontrolling interests: Additions (reductions) — 11 11 — 113 113 Dividends and other capital changes — (65) (65) — (39) (39) Dividends to Linde plc ordinary share holders ($0.963 per share in 2020 and $0.875 per share in 2019) (506) — (506) (471) — (471) Issuances of common stock: For employee savings and incentive plans (20) — (20) 5 — 5 Purchases of common stock (213) — (213) (683) — (683) Share-based compensation 29 — 29 26 — 26 Balance, end of period $ 46,175 $ 2,404 $ 48,579 $ 48,953 $ 2,341 $ 51,294 Nine Months Ended September 30, (Millions of dollars) 2020 2019 Activity Linde plc Shareholders’ Equity Noncontrolling Interests Total Equity Linde plc Shareholders’ Equity Noncontrolling Interests (a) Total Equity Balance, beginning of period (a) $ 49,074 $ 2,448 $ 51,522 $ 51,596 $ 5,484 $ 57,080 Net income (b) 1,731 91 1,822 1,774 67 1,841 Other comprehensive income (loss) (1,159) (48) (1,207) (1,144) (138) (1,282) Noncontrolling interests: Additions (reductions) — 26 26 — (2,953) (2,953) Dividends and other capital changes — (113) (113) — (119) (119) Dividends to Linde plc ordinary share holders ($2.889 per share in 2020 and $2.625 per share in 2019) (1,523) — (1,523) (1,422) — (1,422) Issuances of common stock: For employee savings and incentive plans (28) — (28) (2) — (2) Purchases of common stock (2,024) — (2,024) (1,913) — (1,913) Share-based compensation 104 — 104 64 — 64 Balance, end of period $ 46,175 $ 2,404 $ 48,579 $ 48,953 $ 2,341 $ 51,294 (a) As of the beginning of the nine months ended September 30, 2019, noncontrolling interests included approximately $3.2 billion relating to the 8% of Linde AG shares which were not tendered in the Exchange Offer and were the subject of a cash-merger squeeze-out completed on April 8, 2019. (b) Net income for noncontrolling interests excludes net income related to redeemable noncontrolling interests which is not significant for the quarters and nine months ended September 30, 2020 and September 30, 2019 which is not part of total equity. |
Summary of Components of AOCI | The components of AOCI are as follows: September 30, December 31, (Millions of dollars) 2020 2019 Cumulative translation adjustment - net of taxes: Americas $ (4,070) $ (3,357) EMEA (168) (136) APAC (80) (140) Engineering 150 (29) Other (432) 282 (4,600) (3,380) Derivatives - net of taxes (13) (27) Pension / OPEB (net of $420 million and $446 million tax benefit in September 30, 2020 and December 31, 2019, respectively) (1,360) (1,407) $ (5,973) $ (4,814) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue by Distribution Method | The following tables show sales by distribution method at the consolidated level and for each reportable segment and Other for the quarter and nine months ended September 30, 2020 and September 30, 2019. (Millions of dollars) Quarter Ended September 30, 2020 Sales Americas EMEA APAC Engineering Other Total % Merchant $ 739 $ 472 $ 526 $ — $ 34 $ 1,771 26 % On-Site 622 334 528 — — 1,484 22 % Packaged Gas 1,265 799 413 — 5 2,482 36 % Other 15 17 17 678 391 1,118 16 % Total $ 2,641 $ 1,622 $ 1,484 $ 678 $ 430 $ 6,855 100 % (Millions of dollars) Quarter Ended September 30, 2019 Sales Americas EMEA APAC Engineering Other (a) Total % Merchant $ 760 $ 474 $ 523 $ — $ 52 $ 1,809 26 % On-Site 676 345 494 — — 1,515 22 % Packaged Gas 1,303 815 396 — 7 2,521 36 % Other 32 — 48 641 434 1,155 16 % Total $ 2,771 $ 1,634 $ 1,461 $ 641 $ 493 $ 7,000 100 % (Millions of dollars) Nine months ended September 30, 2020 Sales Americas EMEA APAC Engineering Other (a) Total % Merchant $ 2,099 $ 1,357 $ 1,444 $ — $ 110 $ 5,010 25 % On-Site 1,831 981 1,486 — — 4,298 22 % Packaged Gas 3,750 2,329 1,135 — 16 7,230 36 % Other 55 36 50 2,096 1,196 3,433 17 % Total $ 7,735 $ 4,703 $ 4,115 $ 2,096 $ 1,322 $ 19,971 100 % (Millions of dollars) Nine Months Ended September 30, 2019 Sales Americas EMEA APAC Engineering Other (a) Total % Merchant $ 2,198 $ 1,377 $ 1,571 $ — $ 136 $ 5,282 25 % On-Site 2,077 1,077 1,521 — — 4,675 22 % Packaged Gas 3,903 2,531 1,162 — 13 7,609 36 % Other 74 4 122 2,029 1,353 3,582 17 % Total $ 8,252 $ 4,989 $ 4,376 $ 2,029 $ 1,502 $ 21,148 100 % ( a) Other/Other includes $7 million and $62 million for the third quarter and nine months ended September 30, 2019, respectively, of merger-related divestitures that have been excluded from segment sales. |
Cost Reduction Programs and O_3
Cost Reduction Programs and Other Charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | $ 48 | $ 125 | $ 428 | $ 355 |
Cost reduction programs and other charges, after-tax and noncontrolling interest | 36 | 90 | 318 | 284 |
Merger-related divestitures | 92 | 213 | ||
Other charges, merger related, net of tax | 64 | 169 | ||
Cash requirement for the cost reduction program and other charges | 338 | 338 | ||
Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 33 | 142 | ||
Cost reduction programs and other charges, after-tax and noncontrolling interest | $ 26 | 115 | ||
Merger-related and other charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 9 | 98 | ||
Other charges, merger related, net of tax | 7 | 82 | ||
Other merger related charges for an asset impairment | 73 | 73 | ||
Other merger related charges for an asset impairment net of tax and noncontrolling interest | 42 | $ 42 | ||
Cost Reduction Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 39 | 330 | ||
Cost reduction program charges | 39 | 330 | ||
Cost reduction program charges, net of tax | 29 | 236 | ||
Cost Reduction Program | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 31 | 281 | ||
Cost Reduction Program | Other cost reduction charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | $ 8 | $ 49 |
Cost Reduction Programs and O_4
Cost Reduction Programs and Other Charges - Schedule of Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | $ 48 | $ 125 | $ 428 | $ 355 |
Merger-related divestitures | 92 | 213 | ||
Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | $ 33 | $ 142 | ||
Merger-related and other charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 9 | 98 | ||
Operating Segments | Americas | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 8 | 68 | ||
Operating Segments | Americas | Merger-related and other charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 6 | 12 | ||
Operating Segments | EMEA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 26 | 168 | ||
Operating Segments | EMEA | Merger-related and other charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 5 | 5 | ||
Operating Segments | APAC | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 2 | 10 | ||
Operating Segments | APAC | Merger-related and other charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 0 | 3 | ||
Operating Segments | Engineering | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 0 | 36 | ||
Operating Segments | Engineering | Merger-related and other charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 0 | 8 | ||
Operating Segments | Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 12 | 146 | ||
Operating Segments | Other | Merger-related and other charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | (2) | 70 | ||
Cost Reduction Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 39 | 330 | ||
Cost Reduction Program | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 31 | 281 | ||
Cost Reduction Program | Other cost reduction charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 8 | 49 | ||
Cost Reduction Program | Operating Segments | Americas | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 2 | 56 | ||
Cost Reduction Program | Operating Segments | Americas | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 2 | 33 | ||
Cost Reduction Program | Operating Segments | Americas | Other cost reduction charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 0 | 23 | ||
Cost Reduction Program | Operating Segments | EMEA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 21 | 163 | ||
Cost Reduction Program | Operating Segments | EMEA | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 17 | 155 | ||
Cost Reduction Program | Operating Segments | EMEA | Other cost reduction charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 4 | 8 | ||
Cost Reduction Program | Operating Segments | APAC | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 2 | 7 | ||
Cost Reduction Program | Operating Segments | APAC | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 2 | 5 | ||
Cost Reduction Program | Operating Segments | APAC | Other cost reduction charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 0 | 2 | ||
Cost Reduction Program | Operating Segments | Engineering | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 0 | 28 | ||
Cost Reduction Program | Operating Segments | Engineering | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 1 | 22 | ||
Cost Reduction Program | Operating Segments | Engineering | Other cost reduction charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | (1) | 6 | ||
Cost Reduction Program | Operating Segments | Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 14 | 76 | ||
Cost Reduction Program | Operating Segments | Other | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | 9 | 66 | ||
Cost Reduction Program | Operating Segments | Other | Other cost reduction charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction programs and other charges | $ 5 | $ 10 |
Cost Reduction Programs and O_5
Cost Reduction Programs and Other Charges - Summary of Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Balance, December 31, 2019 | $ 200 | |||
2020 Cost Reduction Programs and Other Charges | $ 48 | $ 125 | 428 | $ 355 |
Less: Cash payments | (161) | |||
Less: Non-cash charges | (103) | |||
Foreign currency translation and other | 13 | |||
Balance, September 30, 2020 | 377 | 377 | ||
Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
2020 Cost Reduction Programs and Other Charges | $ 33 | $ 142 | ||
Merger-related and other charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance, December 31, 2019 | 67 | |||
2020 Cost Reduction Programs and Other Charges | 9 | 98 | ||
Less: Cash payments | (45) | |||
Less: Non-cash charges | (71) | |||
Foreign currency translation and other | 4 | |||
Balance, September 30, 2020 | 53 | 53 | ||
Cost Reduction Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance, December 31, 2019 | 133 | |||
2020 Cost Reduction Programs and Other Charges | 39 | 330 | ||
Less: Cash payments | (116) | |||
Less: Non-cash charges | (32) | |||
Foreign currency translation and other | 9 | |||
Balance, September 30, 2020 | 324 | 324 | ||
Cost Reduction Program | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance, December 31, 2019 | 117 | |||
2020 Cost Reduction Programs and Other Charges | 31 | 281 | ||
Less: Cash payments | (103) | |||
Less: Non-cash charges | 0 | |||
Foreign currency translation and other | 8 | |||
Balance, September 30, 2020 | 303 | 303 | ||
Cost Reduction Program | Other cost reduction charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance, December 31, 2019 | 16 | |||
2020 Cost Reduction Programs and Other Charges | 8 | 49 | ||
Less: Cash payments | (13) | |||
Less: Non-cash charges | (32) | |||
Foreign currency translation and other | 1 | |||
Balance, September 30, 2020 | $ 21 | $ 21 |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Supplemental Information [Abstract] | |||
Gross receivables aged less than one year | $ 4,044 | $ 4,390 | |
Gross receivables aged greater than one year | 337 | 249 | |
Receivables, net of reserves | 4,033 | 4,322 | |
Allowances for expected credit losses | 452 | 306 | |
Provisions for expected credit losses | 136 | $ 146 | |
Inventories | |||
Raw materials and supplies | 400 | 396 | |
Work in process | 374 | 331 | |
Finished goods | 959 | 970 | |
Total inventories | $ 1,733 | $ 1,697 |
Debt - Long-term And Short-term
Debt - Long-term And Short-term Debt (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Aug. 31, 2020USD ($) | May 31, 2020EUR (€) | |
Debt Disclosure [Abstract] | |||||||
Commercial paper and U.S. bank borrowings | $ 3,230,000,000 | $ 3,230,000,000 | $ 996,000,000 | ||||
Other bank borrowings (primarily international) | 794,000,000 | 794,000,000 | 736,000,000 | ||||
Total short-term debt | 4,024,000,000 | 4,024,000,000 | 1,732,000,000 | ||||
Debt Instrument [Line Items] | |||||||
Carrying value | 13,779,000,000 | 13,779,000,000 | 12,224,000,000 | ||||
Obligations under finance leases | 150,000,000 | 150,000,000 | |||||
Obligations under finance leases | 149,000,000 | ||||||
Long-term debt including current maturities | 13,779,000,000 | 13,779,000,000 | 12,224,000,000 | ||||
Less: current portion of long-term debt | (1,820,000,000) | (1,820,000,000) | (1,531,000,000) | ||||
Total long-term debt | 11,959,000,000 | 11,959,000,000 | 10,693,000,000 | ||||
Total debt | 17,803,000,000 | 17,803,000,000 | 13,956,000,000 | ||||
Repayments of long-term debt | $ 300,000,000 | € 1,000,000,000 | $ 1,582,000,000 | $ 1,568,000,000 | |||
2.25% Notes due 2020 (e) | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 300,000,000 | ||||||
Interest rate | 2.25% | 2.25% | 2.25% | ||||
1.75% Euro denominated notes due 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 0 | $ 0 | $ 1,137,000,000 | ||||
Interest rate | 1.75% | 1.75% | 1.75% | ||||
0.634% Euro denominated notes due 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 59,000,000 | $ 59,000,000 | $ 56,000,000 | ||||
Interest rate | 0.634% | 0.634% | |||||
4.05% Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 500,000,000 | $ 500,000,000 | 499,000,000 | ||||
Interest rate | 4.05% | 4.05% | |||||
3.875% Euro denominated notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 723,000,000 | $ 723,000,000 | 711,000,000 | ||||
Interest rate | 3.875% | 3.875% | |||||
3.00% Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 499,000,000 | $ 499,000,000 | 499,000,000 | ||||
Face amount | $ 500,000,000 | $ 500,000,000 | |||||
Interest rate | 3.00% | 3.00% | |||||
0.250% Euro denominated notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 1,178,000,000 | $ 1,178,000,000 | 1,129,000,000 | ||||
Interest rate | 0.25% | 0.25% | |||||
2.45% Notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 599,000,000 | $ 599,000,000 | 599,000,000 | ||||
Interest rate | 2.45% | 2.45% | |||||
2.20% Notes due 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 499,000,000 | $ 499,000,000 | 499,000,000 | ||||
Face amount | $ 500,000,000 | ||||||
Interest rate | 2.20% | 2.20% | 2.20% | ||||
2.70% Notes due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 499,000,000 | $ 499,000,000 | $ 499,000,000 | ||||
Interest rate | 2.70% | 2.70% | |||||
2.00% Euro denominated notes due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 802,000,000 | $ 802,000,000 | 776,000,000 | ||||
Interest rate | 2.00% | 2.00% | |||||
5.875% GBP denominated notes due 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 437,000,000 | $ 437,000,000 | 456,000,000 | ||||
Interest rate | 5.875% | 5.875% | |||||
1.20% Euro denominated notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 643,000,000 | $ 643,000,000 | 615,000,000 | ||||
Interest rate | 1.20% | 1.20% | |||||
1.875% Euro denominated notes due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 375,000,000 | $ 375,000,000 | 361,000,000 | ||||
Interest rate | 1.875% | 1.875% | |||||
2.65% Notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 398,000,000 | $ 398,000,000 | 398,000,000 | ||||
Interest rate | 2.65% | 2.65% | |||||
1.625% Euro denominated notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 582,000,000 | $ 582,000,000 | 556,000,000 | ||||
Interest rate | 1.625% | 1.625% | |||||
3.20% Notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 725,000,000 | $ 725,000,000 | 725,000,000 | ||||
Interest rate | 3.20% | 3.20% | |||||
3.434% Notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 196,000,000 | $ 196,000,000 | 196,000,000 | ||||
Interest rate | 3.434% | 3.434% | |||||
1.652% Euro denominated notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 97,000,000 | $ 97,000,000 | 93,000,000 | ||||
Interest rate | 1.652% | 1.652% | |||||
0.250% Euro denominated notes due 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 877,000,000 | $ 877,000,000 | |||||
Face amount | € | € 750,000,000 | ||||||
Interest rate | 0.25% | 0.25% | 0.25% | ||||
1.00% Euro denominated notes due 2028 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 927,000,000 | $ 927,000,000 | 872,000,000 | ||||
Interest rate | 1.00% | 1.00% | |||||
1.10% Notes due 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 695,000,000 | $ 695,000,000 | 0 | ||||
Face amount | $ 700,000,000 | ||||||
Interest rate | 1.10% | 1.10% | 1.10% | ||||
1.90% Euro denominated notes due 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 122,000,000 | $ 122,000,000 | 118,000,000 | ||||
Interest rate | 1.90% | 1.90% | |||||
0.550% Euro denominated notes due 2032 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 872,000,000 | $ 872,000,000 | 0 | ||||
Face amount | € | € 750,000,000 | ||||||
Interest rate | 0.55% | 0.55% | 0.55% | ||||
3.55% Notes due 2042 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 664,000,000 | $ 664,000,000 | 662,000,000 | ||||
Interest rate | 3.55% | 3.55% | |||||
2.00% Notes due 2050 | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 296,000,000 | $ 296,000,000 | 0 | ||||
Face amount | $ 300,000,000 | ||||||
Interest rate | 2.00% | 2.00% | 2.00% | ||||
Other | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||||
International bank borrowings | |||||||
Debt Instrument [Line Items] | |||||||
Carrying value | $ 355,000,000 | 355,000,000 | 309,000,000 | ||||
Derivatives Designated as Hedging Instruments: | Fair Value Hedging | Interest Rate Swap | |||||||
Debt Instrument [Line Items] | |||||||
Fair value decrease in debt related to hedge accounting | $ 22,000,000 | $ 38,000,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||
Borrowings outstanding | $ 4,024,000,000 | $ 1,732,000,000 |
Credit Agreement | Unsecured Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Unsecured revolving credit agreement | 5,000,000,000 | |
Borrowings outstanding | $ 0 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Notional Amounts | $ 10,411 | $ 12,112 |
Fair Value, Assets | 148 | 167 |
Fair Value, Liabilities | 131 | 99 |
Prepaid and other current assets | ||
Derivative [Line Items] | ||
Fair Value, Assets | 47 | |
Other long-term assets | ||
Derivative [Line Items] | ||
Fair Value, Assets | 101 | |
Other current liabilities | ||
Derivative [Line Items] | ||
Fair Value, Liabilities | 119 | |
Other long-term liabilities | ||
Derivative [Line Items] | ||
Fair Value, Liabilities | 12 | |
Derivatives Not Designated as Hedging Instruments: | ||
Derivative [Line Items] | ||
Notional Amounts | 8,093 | 9,713 |
Fair Value, Assets | 82 | 111 |
Fair Value, Liabilities | 115 | 92 |
Derivatives Not Designated as Hedging Instruments: | Balance sheet items | ||
Derivative [Line Items] | ||
Notional Amounts | 6,714 | 7,936 |
Fair Value, Assets | 30 | 62 |
Fair Value, Liabilities | 97 | 37 |
Derivatives Not Designated as Hedging Instruments: | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amounts | 952 | 748 |
Fair Value, Assets | 6 | 14 |
Fair Value, Liabilities | 12 | 15 |
Derivatives Not Designated as Hedging Instruments: | Cross-currency swaps | ||
Derivative [Line Items] | ||
Notional Amounts | 427 | 1,029 |
Fair Value, Assets | 45 | 35 |
Fair Value, Liabilities | 6 | 40 |
Derivatives Not Designated as Hedging Instruments: | Commodity contracts | ||
Derivative [Line Items] | ||
Fair Value, Assets | 1 | 0 |
Fair Value, Liabilities | 0 | 0 |
Derivatives Designated as Hedging Instruments: | ||
Derivative [Line Items] | ||
Notional Amounts | 2,318 | 2,399 |
Fair Value, Assets | 66 | 56 |
Fair Value, Liabilities | 16 | 7 |
Derivatives Designated as Hedging Instruments: | Balance sheet items | ||
Derivative [Line Items] | ||
Notional Amounts | 0 | 27 |
Fair Value, Assets | 2 | |
Fair Value, Liabilities | 3 | |
Derivatives Designated as Hedging Instruments: | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amounts | 479 | 464 |
Fair Value, Assets | 6 | 9 |
Fair Value, Liabilities | 14 | 3 |
Derivatives Designated as Hedging Instruments: | Commodity contracts | ||
Derivative [Line Items] | ||
Fair Value, Assets | 1 | 6 |
Fair Value, Liabilities | 2 | 1 |
Derivatives Designated as Hedging Instruments: | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amounts | 1,839 | 1,908 |
Fair Value, Assets | 59 | $ 39 |
Fair Value, Liabilities | $ 0 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) € in Billions | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2020EUR (€) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Derivative [Line Items] | ||||
Notional value | $ 10,411,000,000 | $ 12,112,000,000 | ||
Net Investment Hedging | ||||
Derivative [Line Items] | ||||
Exchange rate movements reducing long-term debt | $ 206,000,000 | |||
Derivatives Designated as Hedging Instruments: | ||||
Derivative [Line Items] | ||||
Notional value | 2,318,000,000 | 2,399,000,000 | ||
Interest Rate Swap | Derivatives Designated as Hedging Instruments: | ||||
Derivative [Line Items] | ||||
Notional value | 1,839,000,000 | 1,908,000,000 | ||
Interest Rate Swap | Derivatives Designated as Hedging Instruments: | Fair Value Hedging | ||||
Derivative [Line Items] | ||||
Notional value | 1,839,000,000 | 1,908,000,000 | ||
Line of Credit | ||||
Derivative [Line Items] | ||||
Intercompany Euro-denominated credit facility loan | € 2.4 | 2,900,000,000 | ||
Line of Credit | Net Investment Hedging | ||||
Derivative [Line Items] | ||||
Exchange rate movements reducing long-term debt | $ 244,000,000 | |||
3.00% Notes due 2021 | ||||
Derivative [Line Items] | ||||
Face amount | $ 500,000,000 | |||
Interest rate | 3.00% | 3.00% | ||
2.20% Notes due 2022 | ||||
Derivative [Line Items] | ||||
Face amount | $ 500,000,000 | |||
Interest rate | 2.20% | 2.20% | 2.20% |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Derivative Instruments Not Designated as Hedging Instruments Table (Details) - Derivatives Not Designated as Hedging Instruments: - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments | $ (71) | $ 241 | $ (261) | $ 312 |
Debt-related | ||||
Derivative [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments | (74) | 213 | (213) | 282 |
Other balance sheet items | ||||
Derivative [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments | $ 3 | $ 28 | $ (48) | $ 30 |
Fair Value Disclosures - Schedu
Fair Value Disclosures - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Derivative assets | $ 148 | $ 167 |
Liabilities | ||
Derivative liabilities | 131 | 99 |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Investments and securities* | 21 | 18 |
Total | 21 | 18 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Derivative assets | 148 | 167 |
Investments and securities* | 0 | 0 |
Total | 148 | 167 |
Liabilities | ||
Derivative liabilities | 131 | 99 |
Level 3 | Fair Value, Measurements, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Investments and securities* | 33 | 28 |
Total | 33 | 28 |
Liabilities | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Disclosures - Narrat
Fair Value Disclosures - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Carrying value | $ 13,779 | $ 12,224 |
Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Estimated fair value of long-term debt portfolio | 14,274 | $ 12,375 |
Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 28 | |
Foreign currency movement | 2 | |
Gains recognized in earnings | 3 | |
Ending balance | $ 33 |
Earnings Per Share _ Linde pl_3
Earnings Per Share – Linde plc Shareholders (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator | ||||
Income from continuing operations | $ 699 | $ 728 | $ 1,728 | $ 1,676 |
Income from discontinued operations | 1 | 7 | 3 | 98 |
Net Income – Linde plc | $ 700 | $ 735 | $ 1,731 | $ 1,774 |
Denominator | ||||
Weighted average shares outstanding (in shares) | 525,339,000 | 539,504,000 | 527,177,000 | 542,360,000 |
Shares earned and issuable under compensation plans (in shares) | 355,000 | 249,000 | 324,000 | 229,000 |
Weighted average shares used in basic earnings per share (in shares) | 525,694,000 | 539,753,000 | 527,501,000 | 542,589,000 |
Stock options and awards (in shares) | 4,721,000 | 3,863,000 | 4,223,000 | 3,918,000 |
Weighted average shares used in diluted earnings per share (in shares) | 530,415,000 | 543,616,000 | 531,724,000 | 546,507,000 |
Basic earnings per share from continuing operations (in dollars per share) | $ 1.33 | $ 1.35 | $ 3.28 | $ 3.09 |
Basic earnings per share from discontinued operations (in dollars per share) | 0 | 0.01 | 0.01 | 0.18 |
Basic Earnings Per Share (in dollars per share) | 1.33 | 1.36 | 3.29 | 3.27 |
Diluted earnings per share from continuing operations (in dollars per share) | 1.32 | 1.34 | 3.25 | 3.07 |
Diluted earnings per share from discontinued operations (in dollars per share) | 0 | 0.01 | 0.01 | 0.18 |
Diluted Earnings Per Share (in dollars per share) | $ 1.32 | $ 1.35 | $ 3.26 | $ 3.25 |
Antidilutive shares excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 0 |
Retirement Programs - Schedule
Retirement Programs - Schedule of Pension and OPEB Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Curtailment and termination benefits | $ (7) | |||||
Net pension and OPEB cost (benefit) | $ (41) | $ 2 | $ (131) | $ (7) | ||
Termination charge | $ 17 | |||||
Benefits paid | $ 91 | |||||
Pensions | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 38 | 34 | 111 | 112 | ||
Interest cost | 52 | 61 | 154 | 194 | ||
Expected return on plan assets | (122) | (117) | (360) | (349) | ||
Net amortization and deferral | 22 | 17 | 67 | 45 | ||
Curtailment and termination benefits | 0 | 0 | 0 | 10 | ||
Settlement charge | 6 | 40 | 51 | 6 | 91 | |
Net pension and OPEB cost (benefit) | (42) | 1 | (133) | (9) | ||
Net periodic benefit cost (benefit) | (4) | 35 | (22) | 103 | ||
After-tax pension settlement charges | 5 | $ 38 | ||||
OPEB | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 1 | 0 | 2 | 1 | ||
Interest cost | 1 | 3 | 4 | 6 | ||
Expected return on plan assets | 0 | 0 | 0 | 0 | ||
Net amortization and deferral | (2) | (2) | (4) | |||
Curtailment and termination benefits | 0 | 0 | 0 | 0 | ||
Settlement charge | 0 | 0 | 0 | 0 | ||
Net pension and OPEB cost (benefit) | 1 | 1 | 2 | 2 | ||
Net periodic benefit cost (benefit) | $ 2 | $ 1 | $ 4 | $ 3 |
Retirement Programs - Narrative
Retirement Programs - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension contributions | $ 76 | $ 69 |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Required contributions to pension plans for 2020 | 85 | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Required contributions to pension plans for 2020 | $ 95 |
Commitments and Contingencies (
Commitments and Contingencies (Details) R$ in Millions, $ in Millions | Sep. 01, 2010USD ($)company | Sep. 30, 2020USD ($) | Apr. 23, 2019€ / shares | Apr. 08, 2019shares | Sep. 01, 2010BRL (R$) |
Other Commitments [Line Items] | |||||
Brazil tax matters estimated exposure | $ | $ 190 | ||||
Number of industrial gas companies involved in the matter | company | 5 | ||||
White Martins | |||||
Other Commitments [Line Items] | |||||
Initial CADE civil fine imposed | $ 390 | R$ 2200 | |||
Revised CADE civil fine | 301 | 1,700 | |||
Linde Gaes Ltda. | |||||
Other Commitments [Line Items] | |||||
Initial CADE civil fine imposed | 42 | 237 | |||
Revised CADE civil fine | $ 33 | R$ 188 | |||
Linde AG | |||||
Other Commitments [Line Items] | |||||
Linde AG shares outstanding (in shares) | shares | 14,763,113 | ||||
Squeeze-Out Transaction | Linde AG | |||||
Other Commitments [Line Items] | |||||
Cash consideration per share | € / shares | € 189.46 |
Segments (Details)
Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Total segment sales | $ 6,855 | $ 7,000 | $ 19,971 | $ 21,148 |
Operating Profit | 969 | 1,000 | 2,293 | 2,278 |
Cost reduction programs and other charges | (48) | (125) | (428) | (355) |
Net gain on sale of businesses | 0 | 164 | 0 | 164 |
Merger-related divestitures | 92 | 213 | ||
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 2,641 | 2,771 | 7,735 | 8,252 |
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 1,622 | 1,634 | 4,703 | 4,989 |
APAC | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 1,484 | 1,461 | 4,115 | 4,376 |
Engineering | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 678 | 641 | 2,096 | 2,029 |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 430 | 493 | 1,322 | 1,502 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Operating Profit | 1,515 | 1,384 | 4,184 | 3,925 |
Operating Segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 2,641 | 2,771 | 7,735 | 8,252 |
Operating Profit | 742 | 671 | 2,025 | 1,901 |
Operating Segments | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 1,622 | 1,634 | 4,703 | 4,989 |
Operating Profit | 370 | 335 | 1,028 | 1,014 |
Operating Segments | APAC | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 1,484 | 1,461 | 4,115 | 4,376 |
Operating Profit | 337 | 308 | 912 | 885 |
Operating Segments | Engineering | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 678 | 641 | 2,096 | 2,029 |
Operating Profit | 106 | 120 | 335 | 297 |
Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 430 | 486 | 1,322 | 1,440 |
Operating Profit | (40) | (50) | (116) | (172) |
Operating Segments | Total | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 6,855 | 6,993 | 19,971 | 21,086 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 0 | 7 | 0 | 62 |
Purchase accounting impacts - Linde AG | (498) | (425) | (1,463) | (1,471) |
Segment Reconciling Items | Total | ||||
Segment Reporting Information [Line Items] | ||||
Cost reduction programs and other charges | (48) | (125) | (428) | (355) |
Net gain on sale of businesses | 0 | 164 | 0 | 164 |
Merger-related divestitures | $ 0 | $ 2 | $ 0 | $ 15 |
Equity - Schedule of Stockholde
Equity - Schedule of Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Apr. 08, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of period | $ 47,924 | $ 52,879 | $ 51,522 | $ 57,080 | |
Net income | 731 | 737 | 1,822 | 1,841 | |
Other comprehensive income (loss) | 688 | (1,273) | (1,207) | (1,282) | |
Additions (reductions) | 11 | 113 | 26 | (2,953) | |
Dividends and other capital changes | (65) | (39) | (113) | (119) | |
Dividends to Linde plc ordinary share holders | (506) | (471) | (1,523) | (1,422) | |
For employee savings and incentive plans | (20) | 5 | (28) | (2) | |
Purchases of common stock | (213) | (683) | (2,024) | (1,913) | |
Share-based compensation | 29 | 26 | 104 | 64 | |
Balance, end of period | $ 48,579 | $ 51,294 | $ 48,579 | $ 51,294 | |
Dividends paid (in dollars per share) | $ 0.963 | $ 0.875 | $ 2.889 | $ 2.625 | |
Linde plc Shareholders’ Equity | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of period | $ 45,537 | $ 50,564 | $ 49,074 | $ 51,596 | |
Net income | 700 | 735 | 1,731 | 1,774 | |
Other comprehensive income (loss) | 648 | (1,223) | (1,159) | (1,144) | |
Additions (reductions) | 0 | 0 | 0 | 0 | |
Dividends and other capital changes | 0 | 0 | 0 | 0 | |
Dividends to Linde plc ordinary share holders | (506) | (471) | (1,523) | (1,422) | |
For employee savings and incentive plans | (20) | 5 | (28) | (2) | |
Purchases of common stock | (213) | (683) | (2,024) | (1,913) | |
Share-based compensation | 29 | 26 | 104 | 64 | |
Balance, end of period | 46,175 | 48,953 | 46,175 | 48,953 | |
Noncontrolling Interests | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Balance, beginning of period | 2,387 | 2,315 | 2,448 | 5,484 | |
Net income | 31 | 2 | 91 | 67 | |
Other comprehensive income (loss) | 40 | (50) | (48) | (138) | |
Additions (reductions) | 11 | 113 | 26 | (2,953) | |
Dividends and other capital changes | (65) | (39) | (113) | (119) | |
Dividends to Linde plc ordinary share holders | 0 | 0 | 0 | 0 | |
For employee savings and incentive plans | 0 | 0 | 0 | 0 | |
Purchases of common stock | 0 | 0 | 0 | 0 | |
Share-based compensation | 0 | 0 | 0 | 0 | |
Balance, end of period | $ 2,404 | $ 2,341 | $ 2,404 | 2,341 | |
Linde AG | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Noncontrolling interest, ownership percentage by noncontrolling owners | $ 3,200 | ||||
Linde AG | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Non-controlling participation exchanged (as a percent) | 8.00% |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Cumulative translation adjustment - net of taxes | $ (4,600) | $ (3,380) |
Derivatives - net of taxes | (13) | (27) |
Pension / OPEB (net of $420 million and $446 million tax benefit in September 30, 2020 and December 31, 2019, respectively) | (1,360) | (1,407) |
Accumulated other comprehensive income (loss) | (5,973) | (4,814) |
Pension / OPEB funded status obligation, tax benefit | 420 | 446 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Cumulative translation adjustment - net of taxes | (4,070) | (3,357) |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Cumulative translation adjustment - net of taxes | (168) | (136) |
APAC | ||
Segment Reporting Information [Line Items] | ||
Cumulative translation adjustment - net of taxes | (80) | (140) |
Engineering | ||
Segment Reporting Information [Line Items] | ||
Cumulative translation adjustment - net of taxes | 150 | (29) |
Other | ||
Segment Reporting Information [Line Items] | ||
Cumulative translation adjustment - net of taxes | $ (432) | $ 282 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2020USD ($)segment | Dec. 31, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 170 | $ 368 |
Contract liabilities | 2,202 | 2,106 |
Contract liabilities, current | 1,714 | 1,758 |
Contract liabilities in other long-term liabilities | 488 | $ 348 |
Revenue recognized | 1,002 | |
Estimated consideration related to unsatisfied performance obligations | $ 46,000 | |
Long-term supply contracts | 20 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | ||
Disaggregation of Revenue [Line Items] | ||
Remaining performance obligations, period | 5 years | |
Remaining performance obligation, percentage | 50.00% | |
Americas, APAC, and EMEA Segments | ||
Disaggregation of Revenue [Line Items] | ||
Number of geographic segments | segment | 3 | |
Americas, APAC, and EMEA Segments | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 83.00% | |
Engineering | Product Concentration Risk | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 17.00% | |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
On-site product supply contract | 10 years | |
Minimum | Merchant | ||
Disaggregation of Revenue [Line Items] | ||
Customer supply agreements | 3 years | |
Minimum | Packaged Gas | ||
Disaggregation of Revenue [Line Items] | ||
Customer supply agreements | 1 year | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
On-site product supply contract | 20 years | |
Maximum | Merchant | ||
Disaggregation of Revenue [Line Items] | ||
Customer supply agreements | 7 years | |
Maximum | Packaged Gas | ||
Disaggregation of Revenue [Line Items] | ||
Customer supply agreements | 3 years |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue by Distribution Method (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | $ 6,855 | $ 7,000 | $ 19,971 | $ 21,148 |
Net sales | 7 | 62 | ||
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 2,641 | 2,771 | 7,735 | 8,252 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 1,622 | 1,634 | 4,703 | 4,989 |
APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 1,484 | 1,461 | 4,115 | 4,376 |
Engineering | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 678 | 641 | 2,096 | 2,029 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 430 | 493 | 1,322 | 1,502 |
Merchant | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 1,771 | 1,809 | 5,010 | 5,282 |
Merchant | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 739 | 760 | 2,099 | 2,198 |
Merchant | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 472 | 474 | 1,357 | 1,377 |
Merchant | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 526 | 523 | 1,444 | 1,571 |
Merchant | Engineering | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 0 | 0 | 0 | 0 |
Merchant | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 34 | 52 | 110 | 136 |
On-Site | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 1,484 | 1,515 | 4,298 | 4,675 |
On-Site | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 622 | 676 | 1,831 | 2,077 |
On-Site | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 334 | 345 | 981 | 1,077 |
On-Site | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 528 | 494 | 1,486 | 1,521 |
On-Site | Engineering | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 0 | 0 | 0 | 0 |
On-Site | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 0 | 0 | 0 | 0 |
Packaged Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 2,482 | 2,521 | 7,230 | 7,609 |
Packaged Gas | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 1,265 | 1,303 | 3,750 | 3,903 |
Packaged Gas | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 799 | 815 | 2,329 | 2,531 |
Packaged Gas | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 413 | 396 | 1,135 | 1,162 |
Packaged Gas | Engineering | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 0 | 0 | 0 | 0 |
Packaged Gas | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 5 | 7 | 16 | 13 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 1,118 | 1,155 | 3,433 | 3,582 |
Other | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 15 | 32 | 55 | 74 |
Other | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 17 | 0 | 36 | 4 |
Other | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 17 | 48 | 50 | 122 |
Other | Engineering | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 678 | 641 | 2,096 | 2,029 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | $ 391 | $ 434 | $ 1,196 | $ 1,353 |
Revenue from Contract with Customer | Sales Channel | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue from Contract with Customer | Sales Channel | Merchant | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 26.00% | 26.00% | 25.00% | 25.00% |
Revenue from Contract with Customer | Sales Channel | On-Site | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 22.00% | 22.00% | 22.00% | 22.00% |
Revenue from Contract with Customer | Sales Channel | Packaged Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 36.00% | 36.00% | 36.00% | 36.00% |
Revenue from Contract with Customer | Sales Channel | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 16.00% | 16.00% | 17.00% | 17.00% |
Merger-related Divestitures - N
Merger-related Divestitures - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Net gain on sale of businesses | $ 0 | $ 164 | $ 0 | $ 164 | |||||
Linde AG South America Divestiture | Discontinued Operations, Disposed of by Sale | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Consideration paid | $ 2,900 | ||||||||
Americas Industrial Gases Business, Plant Sales | Discontinued Operations, Disposed of by Sale | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Proceeds for incremental plant sales | $ 500 | ||||||||
Linde Korea Divestiture | Discontinued Operations, Disposed of by Sale | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Consideration paid | $ 1,200 | ||||||||
Praxair India Divestiture | Discontinued Operations, Disposed of by Sale | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Consideration paid | $ 218 | ||||||||
Net gain on sale of businesses | $ 164 | ||||||||
Linde India Divestiture | Discontinued Operations, Disposed of by Sale | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Consideration paid | $ 193 | ||||||||
Linde China Divestiture | Discontinued Operations, Disposed of by Sale | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Consideration paid | $ 98 |