EX-99.1 2 lin_ex991.htm EX-99.1 lin_ex991.htm

EXHIBIT 99.1

 

 

 

Linde Reports Full-Year and Fourth-Quarter 2022 Results

 

Full-Year Highlights

 

 

➢

 Sales $33.4 billion, up 8%, up 13% ex. FX

 

➢

 Operating profit $5.4 billion, up 8%; adjusted operating profit $7.9 billion, up 10%

 

➢

 Operating profit margin 16.1%; adjusted operating profit margin 23.7%, up 40 basis points versus prior year

 

➢

 EPS $8.23, up 12%; adjusted EPS $12.29, up 15% or 20% ex. FX

 

➢

 Returned $7.5 billion to shareholders through dividends and share repurchases, up 11%

 

➢

 Total project backlog of $9.2 billion

 

Fourth-Quarter Highlights

 

 

➢

 Sales $7.9 billion, down 5% YoY, up 1% ex. FX

 

➢

 Operating profit $1.7 billion, adjusted operating profit $2.0 billion, up 9%

 

➢

 Operating profit margin 21.4%; adjusted operating profit margin 25.3%, up 310 basis points

 

➢

 EPS $2.67, up 35%; adjusted EPS $3.16, up 14%

 

2023 Guidance

 

 

➢

 First-quarter 2023 adjusted EPS guidance $3.05 - $3.15, represents 9%-13% growth ex. FX

 

➢

 Full-year 2023 adjusted EPS guidance $13.15 - $13.55, represents 9%-12% growth ex. FX

 

Woking, UK, February 7, 2023 – Linde plc (NYSE: LIN; FWB: LIN) today reported fourth-quarter 2022 income from continuing operations of $1,328 million and diluted earnings per share of $2.67, up 30% and 35% respectively. Excluding Linde AG purchase accounting impacts and other charges, adjusted income from continuing operations was $1,574 million, up 10% versus prior year. Adjusted earnings per share was $3.16, 14% above prior year.

 

Linde’s sales for the fourth quarter were $7,899 million, 5% below prior year or 1% above when excluding negative currency impact. Compared to prior year, underlying sales increased 7% from 8% price attainment partially offset by 1% lower volumes.

 

Fourth-quarter operating profit was $1,687 million. Adjusted operating profit of $2,001 million was up 9% versus prior year led by higher price and continued productivity initiatives across all segments. Adjusted operating profit margin of 25.3% was 310 basis points above prior year and 350 basis points higher when excluding the effects of cost pass-through.

 

Fourth-quarter operating cash flow of $2,095 million decreased 35% versus prior year driven primarily by lower engineering project prepayments. After capital expenditures of $936 million, free cash flow was $1,159 million. During the quarter, the company returned $1,264 million to shareholders through dividends and stock repurchases, net of issuances.

 

For full-year 2022, sales were $33.4 billion, 8% above 2021. Compared to prior year, underlying sales increased 8% from 7% price attainment and 1% higher volumes. Sales growth was broad-based across all end markets except healthcare. Operating profit was $5.4 billion and adjusted operating profit was $7.9 billion, 10% above prior year. Adjusted operating profit margin was 23.7% of sales, 40 basis points higher versus 2021, or 160 basis points higher when excluding the effects of cost pass-through. Diluted earnings per share were $8.23 and adjusted diluted earnings per share were $12.29, up 15% versus prior year.

 

In 2022, Linde generated strong operating cash flow of $8.9 billion. The company invested $3.2 billion in capital expenditures and returned to shareholders in the form of dividends and share buybacks $7.5 billion, 11% above prior year.

 

 
Page 1/14

 

  

 

 

Commenting on the financial results and business outlook, Chief Executive Officer Sanjiv Lamba said, “Despite the challenging environment, the Linde team again delivered outstanding performance including a record ROC of 22.9%, expanding operating margin to 25.3% and a ninth consecutive quarter of delivering 20% or more EPS growth ex. FX. This resilient performance is a result of our balanced end market portfolio, unrivaled network density and rigorous capital discipline.”

 

Lamba continued, “Looking ahead, the geopolitical and macro environment continues to remain uncertain. However, we are well positioned to win more than our fair share of high-quality projects, primarily in clean-energy and again create shareholder value by leveraging all the opportunities that lie ahead.”

 

For the full year 2023, the company expects adjusted diluted earnings per share to be in the range of $13.15 to $13.55, up 7% to 10% versus prior year or 9% to 12% when excluding estimated currency headwinds. Full-year capital expenditures are expected to range between $3.5 billion and $4.0 billion to support operating and growth requirements, including the contractual sale of gas backlog. For the first quarter 2023, adjusted earnings per share is expected to be in the range of $3.05 to $3.15, 4% to 8% above prior-year quarter. This range estimates 5% unfavorable currency.

 

Fourth-Quarter 2022 Results by Segment

 

Americas sales of $3,421 million grew 9% versus prior-year quarter. Compared with fourth quarter 2021, underlying sales increased 7% driven by 7% higher pricing as volumes were stable. Operating profit of $944 million was 27.6% of sales, 90 basis points above prior year and 110 basis points higher when excluding the effects of cost pass-through.

 

APAC (Asia Pacific) sales of $1,567 million were 1% below prior year. Compared to prior year, underlying sales grew 8% driven by 5% price attainment and 3% volume growth, primarily in the electronics, chemicals and energy end markets including project start-ups. Operating profit of $416 million was 26.5% of sales, 260 basis points above prior year. Year over year cost pass-through was immaterial.

 

EMEA (Europe, Middle East & Africa) sales of $2,026 million were down 2% versus prior year. Compared with fourth-quarter 2021, underlying sales grew 7%, driven by 14% higher pricing partially offset by 7% lower volumes. Operating profit of $509 million was 25.1% of sales, 200 basis points above prior year and 330 basis points higher when excluding the effects of cost pass-through.

 

Linde Engineering sales were $562 million, 41% below prior year, and operating profit was $157 million or 27.9% of sales. Order intake for the quarter was $696 million and third-party sale of equipment backlog was $3.5 billion.

 

Earnings Call

A teleconference on Linde’s fourth-quarter 2022 results is being held today at 9:00 am EST.

 

Live conference call

US Toll-Free Dial-In Number: 1 888 770 7292

Germany Toll-Free Dial-In Number: 0800 000 0105

UK Toll-Free Dial-In Number: 0800 358 0970

Access code: 6877110

Live webcast (listen-only)

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

 

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

 

 
Page 2/14

 

  

 

 

About Linde

Linde is a leading global industrial gases and engineering company with 2022 sales of $33 billion.  We live our mission of making our world more productive every day by providing high-quality solutions, technologies and services which are making our customers more successful and helping to sustain, decarbonize and protect our planet.

 

The company serves a variety of end markets such as chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde's industrial gases and technologies are used in countless applications including production of clean hydrogen and carbon capture systems critical to the energy transition, life-saving medical oxygen and high-purity & specialty gases for electronics. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.

 

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

 

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

 

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

 

*Note: We are providing adjusted earnings per share (“EPS”) guidance for 2023. This is a non-GAAP financial measure that represents diluted earnings per share from continuing operations (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges, any impairment or other charges related to scaling back operations in Russia as actions are defined and executed and as sanctions are enacted that impact the Company’s operations, the impact of potential divestitures or other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort.

 

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are identified by terms and phrases such as: anticipate, believe, intend, estimate, expect, continue, should, could, may, plan, project, predict, will, potential, forecast, and similar expressions.  They are based on management’s reasonable expectations and assumptions as of the date the statements are made but involve risks and uncertainties.  These risks and uncertainties include, without limitation: the performance of stock markets generally; developments in worldwide and national economies and other international events and circumstances, including trade conflicts and tariffs; changes in foreign currencies and in interest rates; the cost and availability of electric power, natural gas and other raw materials; the ability to achieve price increases to offset cost increases; catastrophic events including natural disasters, epidemics, pandemics such as COVID-19 and acts of war and terrorism; the ability to attract, hire, and retain qualified personnel; the impact of changes in financial accounting standards; the impact of changes in pension plan liabilities; the impact of tax, environmental, healthcare and other legislation and government regulation in jurisdictions in which the company operates; the cost and outcomes of investigations, litigation and regulatory proceedings; the impact of potential unusual or non-recurring items; continued timely development and market acceptance of new products and applications; the impact of competitive products and pricing; future financial and operating performance of major customers and industries served; the impact of information technology system failures, network disruptions and breaches in data security; and the effectiveness and speed of integrating new acquisitions into the business.  These risks and uncertainties may cause future results or circumstances to differ materially from adjusted projections, estimates or other forward-looking statements.

 

Linde plc assumes no obligation to update or provide revisions to any forward-looking statement in response to changing circumstances.  The above listed risks and uncertainties are further described in Item 1A.  Risk Factors in Linde plc’s Form 10-K for the fiscal year ended December 31, 2021 filed with the SEC on February 28, 2022 which should be reviewed carefully. Please consider Linde plc’s forward-looking statements in light of those risks.

 

 
Page 3/14

 

 

LINDE PLC AND SUBSIDIARIES

SUMMARY NON-GAAP RECONCILIATIONS

(UNAUDITED)

 

The following adjusted amounts are Non-GAAP measures and are intended to supplement investors' understanding of the company's financial statements by providing measures which investors, financial analysts and management use to help evaluate the company's operating performance. Items which the company does not believe to be indicative of ongoing business trends are excluded from these calculations so that investors can better evaluate and analyze historical and future business trends on a consistent basis. Definitions of these Non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. See the "NON GAAP MEASURES AND RECONCILIATIONS" starting on page 9 for additional details relating to the adjustments.

 

(Millions of dollars, except per share amounts)

 

Sales

 

 

Operating Profit

 

 

Income from Continuing Operations

 

 

Diluted EPS from Continuing Operations

 

Quarter Ended December 31

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Reported GAAP Amounts

 

 $ 7,899

 

 

 $ 8,298

 

 

 $ 1,687

 

 

 $ 1,337

 

 

 $ 1,328

 

 

 $ 1,024

 

 

 $ 2.67

 

 

 $ 1.98

 

Other charges (a)

 

 

 —

 

 

 

 —

 

 

 

 25

 

 

 

 51

 

 

 

 16

 

 

 

 51

 

 

 

 0.03

 

 

 

 0.10

 

Purchase accounting impacts - Linde AG (c)

 

 

 —

 

 

 

 —

 

 

 

 289

 

 

 

 453

 

 

 

 230

 

 

 

 356

 

 

 

 0.46

 

 

 

 0.69

 

Total adjustments

 

 

 —

 

 

 

 —

 

 

 

 314

 

 

 

 504

 

 

 

 246

 

 

 

 407

 

 

 

 0.49

 

 

 

 0.79

 

Adjusted amounts

 

 $ 7,899

 

 

 $ 8,298

 

 

 $ 2,001

 

 

 $ 1,841

 

 

 $ 1,574

 

 

 $ 1,431

 

 

 $ 3.16

 

 

 $ 2.77

 

 

(Millions of dollars, except per share amounts)

 

Sales

 

 

Operating Profit

 

 

Income from Continuing Operations

 

 

Diluted EPS from Continuing Operations

 

Year to Date December 31

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Reported GAAP Amounts

 

 $ 33,364

 

 

 $ 30,793

 

 

 $ 5,369

 

 

 $ 4,984

 

 

 $ 4,147

 

 

 $ 3,821

 

 

 $ 8.23

 

 

 $ 7.32

 

Russia-Ukraine conflict and other charges (a)

 

 

 —

 

 

 

 —

 

 

 

 1,029

 

 

 

 273

 

 

 

 893

 

 

 

 279

 

 

 

 1.77

 

 

 

 0.53

 

Pension settlement charges (b)

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 5

 

 

 

 3

 

 

 

 0.01

 

 

 

 0.01

 

Purchase accounting impacts - Linde AG (c)

 

 

 —

 

 

 

 —

 

 

 

 1,506

 

 

 

 1,919

 

 

 

 1,150

 

 

 

 1,476

 

 

 

 2.28

 

 

 

 2.83

 

Total adjustments

 

 

 —

 

 

 

 —

 

 

 

 2,535

 

 

 

 2,192

 

 

 

 2,048

 

 

 

 1,758

 

 

 

 4.06

 

 

 

 3.37

 

Adjusted amounts

 

 $ 33,364

 

 

 $ 30,793

 

 

 $ 7,904

 

 

 $ 7,176

 

 

 $ 6,195

 

 

 $ 5,579

 

 

 $ 12.29

 

 

 $ 10.69

 

_________ 

(a) Fourth quarter 2022 charges relate primarily to cost reduction program and other charges. 2022 year to date charges relate primarily to charges associated with the deconsolidation and impairment of Russian subsidiaries resulting from the ongoing war in Ukraine and related sanctions. 2021 charges relate to cost reduction program and other charges, primarily severance.

 

(b) To adjust for pension settlement charges.

 

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

 

 
Page 4/14

 

 

LINDE PLC AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)

 

 

 

Quarter Ended December 31,

 

 

Year To Date December 31,

 

(Millions of dollars, except per share data)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Sales

 

 $ 7,899

 

 

 $ 8,298

 

 

 $ 33,364

 

 

 $ 30,793

 

Cost of sales

 

 

 4,427

 

 

 

 4,927

 

 

 

 19,450

 

 

 

 17,543

 

Selling, general and administrative

 

 

 764

 

 

 

 787

 

 

 

 3,107

 

 

 

 3,189

 

Depreciation and amortization

 

 

 956

 

 

 

 1,135

 

 

 

 4,204

 

 

 

 4,635

 

Research and development

 

 

 36

 

 

 

 38

 

 

 

 143

 

 

 

 143

 

Russia-Ukraine conflict and other charges

 

 

 25

 

 

 

 51

 

 

 

 1,029

 

 

 

 273

 

Other income (expense) - net

 

 

 (4 )

 

 

 (23 )

 

 

 (62 )

 

 

 (26 )

Operating Profit

 

 

 1,687

 

 

 

 1,337

 

 

 

 5,369

 

 

 

 4,984

 

Interest expense - net

 

 

 31

 

 

 

 31

 

 

 

 63

 

 

 

 77

 

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

 

 

 (58 )

 

 

 (49 )

 

 

 (237 )

 

 

 (192 )

Income From Continuing Operations Before Income Taxes and Equity Investments

 

 

 1,714

 

 

 

 1,355

 

 

 

 5,543

 

 

 

 5,099

 

Income taxes

 

 

 388

 

 

 

 339

 

 

 

 1,434

 

 

 

 1,262

 

Income From Continuing Operations Before Equity Investments

 

 

 1,326

 

 

 

 1,016

 

 

 

 4,109

 

 

 

 3,837

 

Income from equity investments

 

 

 35

 

 

 

 38

 

 

 

 172

 

 

 

 119

 

Income From Continuing Operations (Including Noncontrolling Interests)

 

 

 1,361

 

 

 

 1,054

 

 

 

 4,281

 

 

 

 3,956

 

Add: income from discontinued operations, net of tax

 

 

 —

 

 

 

 2

 

 

 

 —

 

 

 

 5

 

Income (Including Noncontrolling Interests)

 

 

 1,361

 

 

 

 1,056

 

 

 

 4,281

 

 

 

 3,961

 

Less: noncontrolling interests from continuing operations

 

 

 (33 )

 

 

 (30 )

 

 

 (134 )

 

 

 (135 )

Net Income – Linde plc

 

 $ 1,328

 

 

 $ 1,026

 

 

 $ 4,147

 

 

 $ 3,826

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income – Linde plc

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

 $ 1,328

 

 

 $ 1,024

 

 

 $ 4,147

 

 

 $ 3,821

 

Income from discontinued operations

 

 $ —

 

 

 $ 2

 

 

 $ —

 

 

 $ 5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data – Linde plc Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share from continuing operations

 

 $ 2.69

 

 

 $ 2.00

 

 

 $ 8.30

 

 

 $ 7.39

 

Basic earnings per share from discontinued operations

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 0.01

 

Basic earnings per share

 

 $ 2.69

 

 

 $ 2.00

 

 

 $ 8.30

 

 

 $ 7.40

 

Diluted earnings per share from continuing operations

 

 $ 2.67

 

 

 $ 1.98

 

 

 $ 8.23

 

 

 $ 7.32

 

Diluted earnings per share from discontinued operations

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 0.01

 

Diluted earnings per share

 

 $ 2.67

 

 

 $ 1.98

 

 

 $ 8.23

 

 

 $ 7.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends

 

 $ 1.17

 

 

 $ 1.06

 

 

 $ 4.68

 

 

 $ 4.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding (000’s):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares outstanding (000's)

 

 

 493,652

 

 

 

 511,234

 

 

 

 499,736

 

 

 

 516,896

 

Diluted shares outstanding (000's)

 

 

 497,922

 

 

 

 516,276

 

 

 

 504,038

 

 

 

 521,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: See page 9 for a reconciliation to adjusted amounts which are Non-GAAP.

  

 
Page 5/14

 

 

LINDE PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(UNAUDITED)

 

 

 

December 31,

 

 

December 31,

 

(Millions of dollars)

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

 $ 5,436

 

 

 $ 2,823

 

Accounts receivable - net

 

 

 4,559

 

 

 

 4,499

 

Contract assets

 

 

 124

 

 

 

 134

 

Inventories

 

 

 1,978

 

 

 

 1,733

 

Prepaid and other current assets

 

 

 950

 

 

 

 970

 

Total Current Assets

 

 

 13,047

 

 

 

 10,159

 

Property, plant and equipment - net

 

 

 23,548

 

 

 

 26,003

 

Goodwill

 

 

 25,817

 

 

 

 27,038

 

Other intangibles - net

 

 

 12,420

 

 

 

 13,802

 

Other long-term assets

 

 

 4,826

 

 

 

 4,603

 

Total Assets

 

 $ 79,658

 

 

 $ 81,605

 

Liabilities and equity

 

 

 

 

 

 

 

 

Accounts payable

 

 $ 2,995

 

 

 $ 3,503

 

Short-term debt

 

 

 4,117

 

 

 

 1,163

 

Current portion of long-term debt

 

 

 1,599

 

 

 

 1,709

 

Contract liabilities

 

 

 3,073

 

 

 

 2,940

 

Other current liabilities

 

 

 4,695

 

 

 

 4,328

 

Total Current Liabilities

 

 

 16,479

 

 

 

 13,643

 

Long-term debt

 

 

 12,198

 

 

 

 11,335

 

Other long-term liabilities

 

 

 9,594

 

 

 

 11,186

 

Total Liabilities

 

 $ 38,271

 

 

 $ 36,164

 

Redeemable noncontrolling interests

 

 

 13

 

 

 

 13

 

Linde plc Shareholders’ Equity

 

 

 

 

 

 

 

 

Ordinary shares

 

 

 1

 

 

 

 1

 

Additional paid-in capital

 

 

 40,005

 

 

 

 40,180

 

Retained earnings

 

 

 20,541

 

 

 

 18,710

 

Accumulated other comprehensive income (loss)

 

 

 (5,782 )

 

 

 (5,048 )

Less: Treasury shares, at cost

 

 

 (14,737 )

 

 

 (9,808 )

Total Linde plc shareholders' equity

 

 

 40,028

 

 

 

 44,035

 

Noncontrolling interests

 

 

 1,346

 

 

 

 1,393

 

Total Equity

 

 $ 41,374

 

 

 $ 45,428

 

Total Liabilities and Equity

 

 $ 79,658

 

 

 $ 81,605

 

 

 
Page 6/14

 

 

LINDE PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

 

 

 

Quarter Ended December 31,

 

 

Year to Date December 31,

 

(Millions of dollars)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Operations

 

 

 

 

 

 

 

 

 

 

 

 

Net income - Linde plc

 

 $ 1,328

 

 

 $ 1,026

 

 

 $ 4,147

 

 

 $ 3,826

 

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

 

 

 —

 

 

 

 (2 )

 

 

 —

 

 

 

 (5 )

Add: noncontrolling interests

 

 

 33

 

 

 

 30

 

 

 

 134

 

 

 

 135

 

Net income (including noncontrolling interests)

 

 

 1,361

 

 

 

 1,054

 

 

 

 4,281

 

 

 

 3,956

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Russia-Ukraine conflict and other charges, net of payments (a)

 

 

 (7 )

 

 

 15

 

 

 

 902

 

 

 

 98

 

Depreciation and amortization

 

 

 956

 

 

 

 1,135

 

 

 

 4,204

 

 

 

 4,635

 

Accounts receivable

 

 

 149

 

 

 

 (14 )

 

 

 (423 )

 

 

 (553 )

Contract assets and liabilities, net

 

 

 (59 )

 

 

 777

 

 

 

 310

 

 

 

 1,307

 

Inventory

 

 

 (47 )

 

 

 (52 )

 

 

 (347 )

 

 

 (129 )

Payables and accruals

 

 

 (69 )

 

 

 316

 

 

 

 307

 

 

 

 447

 

Pension contributions

 

 

 (7 )

 

 

 (10 )

 

 

 (51 )

 

 

 (42 )

Deferred income taxes and other

 

 

 (182 )

 

 

 12

 

 

 

 (319 )

 

 

 6

 

Net cash provided by operating activities

 

 

 2,095

 

 

 

 3,233

 

 

 

 8,864

 

 

 

 9,725

 

Investing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 (936 )

 

 

 (839 )

 

 

 (3,173 )

 

 

 (3,086 )

Acquisitions, net of cash acquired

 

 

 —

 

 

 

 (57 )

 

 

 (110 )

 

 

 (88 )

Divestitures, net of cash divested and asset sales

 

 

 55

 

 

 

 20

 

 

 

 195

 

 

 

 167

 

Net cash provided by (used for) investing activities

 

 

 (881 )

 

 

 (876 )

 

 

 (3,088 )

 

 

 (3,007 )

Financing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt increase (decrease) - net

 

 

 1,680

 

 

 

 (2,322 )

 

 

 4,475

 

 

 

 (514 )

Issuances of ordinary shares

 

 

 12

 

 

 

 11

 

 

 

 36

 

 

 

 50

 

Purchases of ordinary shares

 

 

 (690 )

 

 

 (1,361 )

 

 

 (5,168 )

 

 

 (4,612 )

Cash dividends - Linde plc shareholders

 

 

 (586 )

 

 

 (541 )

 

 

 (2,344 )

 

 

 (2,189 )

Noncontrolling interest transactions and other

 

 

 (26 )

 

 

 (4 )

 

 

 (88 )

 

 

 (323 )

Net cash provided by (used for) financing activities

 

 

 390

 

 

 

 (4,217 )

 

 

 (3,089 )

 

 

 (7,588 )

Effect of exchange rate changes on cash and cash equivalents

 

 

 76

 

 

 

 (17 )

 

 

 (74 )

 

 

 (61 )

Change in cash and cash equivalents

 

 

 1,680

 

 

 

 (1,877 )

 

 

 2,613

 

 

 

 (931 )

Cash and cash equivalents, beginning-of-period

 

 

 3,756

 

 

 

 4,700

 

 

 

 2,823

 

 

 

 3,754

 

Cash and cash equivalents, end-of-period

 

 $ 5,436

 

 

 $ 2,823

 

 

 $ 5,436

 

 

 $ 2,823

 

_________ 

(a) Russia-Ukraine conflict and other charges were $25 million and $51 million for the quarters ended December 31, 2022 and 2021, respectively, and $1,029 million and $273 million for the twelve months ended December 31, 2022 and 2021, respectively. Related cash outflows were $32 million and $36 million for the quarters ended December 31, 2022 and 2021, respectively, and $127 million and $175 million for the twelve months ended December 31, 2022 and 2021, respectively.

 

 
Page 7/14

 

 

LINDE PLC AND SUBSIDIARIES

SEGMENT INFORMATION

(UNAUDITED)

 

 

 

Quarter Ended December 31,

 

 

Year to Date December 31,

 

(Millions of dollars)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Sales

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

 $ 3,421

 

 

 $ 3,152

 

 

 $ 13,874

 

 

 $ 12,103

 

EMEA

 

 

 2,026

 

 

 

 2,058

 

 

 

 8,443

 

 

 

 7,643

 

APAC

 

 

 1,567

 

 

 

 1,589

 

 

 

 6,480

 

 

 

 6,133

 

Engineering

 

 

 562

 

 

 

 946

 

 

 

 2,762

 

 

 

 2,867

 

Other

 

 

 323

 

 

 

 553

 

 

 

 1,805

 

 

 

 2,047

 

Total segment sales

 

 $ 7,899

 

 

 $ 8,298

 

 

 $ 33,364

 

 

 $ 30,793

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

 $ 944

 

 

 $ 843

 

 

 $ 3,732

 

 

 $ 3,368

 

EMEA

 

 

 509

 

 

 

 475

 

 

 

 2,013

 

 

 

 1,889

 

APAC

 

 

 416

 

 

 

 380

 

 

 

 1,670

 

 

 

 1,502

 

Engineering

 

 

 157

 

 

 

 150

 

 

 

 555

 

 

 

 473

 

Other

 

 

 (25 )

 

 

 (7 )

 

 

 (66 )

 

 

 (56 )

Segment operating profit

 

 

 2,001

 

 

 

 1,841

 

 

 

 7,904

 

 

 

 7,176

 

Russia-Ukraine conflict and other charges

 

 

 (25 )

 

 

 (51 )

 

 

 (1,029 )

 

 

 (273 )

Purchase accounting impacts - Linde AG

 

 

 (289 )

 

 

 (453 )

 

 

 (1,506 )

 

 

 (1,919 )

Total operating profit

 

 $ 1,687

 

 

 $ 1,337

 

 

 $ 5,369

 

 

 $ 4,984

 

 

 
Page 8/14

 

 

LINDE PLC AND SUBSIDIARIES

APPENDIX

NON-GAAP MEASURES AND RECONCILIATIONS

(UNAUDITED)

 

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

 

 

 

2022

 

 

2021

 

(Millions of dollars)

 

Year to Date December 31,

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

 

Year to Date December 31,

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

Adjusted Operating Profit and Operating Margin

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported operating profit

 

 $ 5,369

 

 

 $ 1,687

 

 

 $ 1,613

 

 

 $ 589

 

 

 $ 1,480

 

 

 $ 4,984

 

 

 $ 1,337

 

 

 $ 1,292

 

 

 $ 1,142

 

 

 $ 1,213

 

Add: Russia-Ukraine conflict and other charges (a)

 

 

 1,029

 

 

 

 25

 

 

 

 15

 

 

 

 993

 

 

 

 (4 )

 

 

 273

 

 

 

 51

 

 

 

 26

 

 

 

 204

 

 

 

 (8 )

Add: Purchase accounting impacts - Linde AG (c)

 

 

 1,506

 

 

 

 289

 

 

 

 382

 

 

 

 406

 

 

 

 429

 

 

 

 1,919

 

 

 

 453

 

 

 

 492

 

 

 

 491

 

 

 

 483

 

Total adjustments

 

 

 2,535

 

 

 

 314

 

 

 

 397

 

 

 

 1,399

 

 

 

 425

 

 

 

 2,192

 

 

 

 504

 

 

 

 518

 

 

 

 695

 

 

 

 475

 

Adjusted operating profit

 

 $ 7,904

 

 

 $ 2,001

 

 

 $ 2,010

 

 

 $ 1,988

 

 

 $ 1,905

 

 

 $ 7,176

 

 

 $ 1,841

 

 

 $ 1,810

 

 

 $ 1,837

 

 

 $ 1,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported percentage change

 

 

 8 %

 

 

 26 %

 

 

 25 %

 

 

 (48 )%

 

 

 22 %

 

 

 50 %

 

 

 30 %

 

 

 33 %

 

 

 93 %

 

 

 65 %

Adjusted percentage change

 

 

 10 %

 

 

 9 %

 

 

 11 %

 

 

 8 %

 

 

 13 %

 

 

 24 %

 

 

 14 %

 

 

 19 %

 

 

 39 %

 

 

 25 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported sales

 

 $ 33,364

 

 

 $ 7,899

 

 

 $ 8,797

 

 

 $ 8,457

 

 

 $ 8,211

 

 

 $ 30,793

 

 

 $ 8,298

 

 

 $ 7,668

 

 

 $ 7,584

 

 

 $ 7,243

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported operating margin

 

 

 16.1 %

 

 

 21.4 %

 

 

 18.3 %

 

 

 7.0 %

 

 

 18.0 %

 

 

 16.2 %

 

 

 16.1 %

 

 

 16.8 %

 

 

 15.1 %

 

 

 16.7 %

Adjusted operating margin

 

 

 23.7 %

 

 

 25.3 %

 

 

 22.8 %

 

 

 23.5 %

 

 

 23.2 %

 

 

 23.3 %

 

 

 22.2 %

 

 

 23.6 %

 

 

 24.2 %

 

 

 23.3 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported depreciation and amortization

 

 $ 4,204

 

 

 $ 956

 

 

 $ 1,045

 

 

 $ 1,091

 

 

 $ 1,112

 

 

 $ 4,635

 

 

 $ 1,135

 

 

 $ 1,163

 

 

 $ 1,171

 

 

 $ 1,166

 

Less: Purchase accounting impacts - Linde AG (c)

 

 

 (1,481 )

 

 

 (285 )

 

 

 (377 )

 

 

 (401 )

 

 

 (418 )

 

 

 (1,863 )

 

 

 (437 )

 

 

 (469 )

 

 

 (479 )

 

 

 (478 )

Adjusted depreciation and amortization

 

 $ 2,723

 

 

 $ 671

 

 

 $ 668

 

 

 $ 690

 

 

 $ 694

 

 

 $ 2,772

 

 

 $ 698

 

 

 $ 694

 

 

 $ 692

 

 

 $ 688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Other Income (Expense) - net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Other Income (Expense) - net

 

 $ (62 )

 

 $ (4 )

 

 $ (34 )

 

 $ (36 )

 

 $ 12

 

 

 $ (26 )

 

 $ (23 )

 

 $ 10

 

 

 $ (17 )

 

 $ 4

 

Add: Purchase accounting impacts - Linde AG (c)

 

 

 (25 )

 

 

 (4 )

 

 

 (5 )

 

 

 (5 )

 

 

 (11 )

 

 

 (56 )

 

 

 (16 )

 

 

 (23 )

 

 

 (12 )

 

 

 (5 )

Adjusted Other Income (Expense) - net

 

 $ (37 )

 

 $ —

 

 

 $ (29 )

 

 $ (31 )

 

 $ 23

 

 

 $ 30

 

 

 $ (7 )

 

 $ 33

 

 

 $ (5 )

 

 $ 9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 $ (237 )

 

 $ (58 )

 

 $ (53 )

 

 $ (62 )

 

 $ (64 )

 

 $ (192 )

 

 $ (49 )

 

 $ (45 )

 

 $ (49 )

 

 $ (49 )

Add: Pension settlement charges

 

 

 (6 )

 

 

 —

 

 

 

 (6 )

 

 

 —

 

 

 

 —

 

 

 

 (4 )

 

 

 —

 

 

 

 (4 )

 

 

 —

 

 

 

 —

 

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

 

 $ (243 )

 

 $ (58 )

 

 $ (59 )

 

 $ (62 )

 

 $ (64 )

 

 $ (196 )

 

 $ (49 )

 

 $ (49 )

 

 $ (49 )

 

 $ (49 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Interest Expense - Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported interest expense - net

 

 $ 63

 

 

 $ 31

 

 

 $ 18

 

 

 $ 5

 

 

 $ 9

 

 

 $ 77

 

 

 $ 31

 

 

 $ 8

 

 

 $ 18

 

 

 $ 20

 

Add: Purchase accounting impacts - Linde AG (c)

 

 

 35

 

 

 

 8

 

 

 

 8

 

 

 

 9

 

 

 

 10

 

 

 

 53

 

 

 

 10

 

 

 

 10

 

 

 

 15

 

 

 

 18

 

Adjusted interest expense - net

 

 $ 98

 

 

 $ 39

 

 

 $ 26

 

 

 $ 14

 

 

 $ 19

 

 

 $ 130

 

 

 $ 41

 

 

 $ 18

 

 

 $ 33

 

 

 $ 38

 

 

 
Page 9/14

 

 

 

 

2022

 

 

2021

 

(Millions of dollars)

 

Year to Date December 31,

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

 

Year to Date December 31,

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

Adjusted Income Taxes (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported income taxes

 

 $ 1,434

 

 

 $ 388

 

 

 $ 391

 

 

 $ 286

 

 

 $ 369

 

 

 $ 1,262

 

 

 $ 339

 

 

 $ 321

 

 

 $ 334

 

 

 $ 268

 

Add: Purchase accounting impacts - Linde AG (c)

 

 

 374

 

 

 

 66

 

 

 

 92

 

 

 

 108

 

 

 

 108

 

 

 

 452

 

 

 

 103

 

 

 

 115

 

 

 

 116

 

 

 

 118

 

Add: Pension settlement charges

 

 

 1

 

 

 

 —

 

 

 

 1

 

 

 

 —

 

 

 

 —

 

 

 

 1

 

 

 

 —

 

 

 

 1

 

 

 

 —

 

 

 

 —

 

Add: Russia-Ukraine conflict and other charges (a)

 

 

 136

 

 

 

 9

 

 

 

 26

 

 

 

 104

 

 

 

 (3 )

 

 

 29

 

 

 

 —

 

 

 

 3

 

 

 

 6

 

 

 

 20

 

Total adjustments

 

 

 511

 

 

 

 75

 

 

 

 119

 

 

 

 212

 

 

 

 105

 

 

 

 482

 

 

 

 103

 

 

 

 119

 

 

 

 122

 

 

 

 138

 

Adjusted income taxes

 

 $ 1,945

 

 

 $ 463

 

 

 $ 510

 

 

 $ 498

 

 

 $ 474

 

 

 $ 1,744

 

 

 $ 442

 

 

 $ 440

 

 

 $ 456

 

 

 $ 406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Effective Tax Rate (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported income before income taxes and equity investments

 

 $ 5,543

 

 

 $ 1,714

 

 

 $ 1,648

 

 

 $ 646

 

 

 $ 1,535

 

 

 $ 5,099

 

 

 $ 1,355

 

 

 $ 1,329

 

 

 $ 1,173

 

 

 $ 1,242

 

Add: Pension settlement charge

 

 

 6

 

 

 

 —

 

 

 

 6

 

 

 

 —

 

 

 

 —

 

 

 

 4

 

 

 

 —

 

 

 

 4

 

 

 

 —

 

 

 

 —

 

Add: Purchase accounting impacts - Linde AG (c)

 

 

 1,471

 

 

 

 281

 

 

 

 374

 

 

 

 397

 

 

 

 419

 

 

 

 1,866

 

 

 

 443

 

 

 

 482

 

 

 

 476

 

 

 

 465

 

Add: Russia-Ukraine conflict and other charges (a)

 

 

 1,029

 

 

 

 25

 

 

 

 15

 

 

 

 993

 

 

 

 (4 )

 

 

 273

 

 

 

 51

 

 

 

 26

 

 

 

 204

 

 

 

 (8 )

Total adjustments

 

 

 2,506

 

 

 

 306

 

 

 

 395

 

 

 

 1,390

 

 

 

 415

 

 

 

 2,143

 

 

 

 494

 

 

 

 512

 

 

 

 680

 

 

 

 457

 

Adjusted income before income taxes and equity investments

 

 $ 8,049

 

 

 $ 2,020

 

 

 $ 2,043

 

 

 $ 2,036

 

 

 $ 1,950

 

 

 $ 7,242

 

 

 $ 1,849

 

 

 $ 1,841

 

 

 $ 1,853

 

 

 $ 1,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported Income taxes

 

 $ 1,434

 

 

 $ 388

 

 

 $ 391

 

 

 $ 286

 

 

 $ 369

 

 

 $ 1,262

 

 

 $ 339

 

 

 $ 321

 

 

 $ 334

 

 

 $ 268

 

Reported effective tax rate

 

 

 25.9 %

 

 

 22.6 %

 

 

 23.7 %

 

 

 44.3 %

 

 

 24.0 %

 

 

 24.7 %

 

 

 25.0 %

 

 

 24.2 %

 

 

 28.5 %

 

 

 21.6 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income taxes

 

 $ 1,945

 

 

 $ 463

 

 

 $ 510

 

 

 $ 498

 

 

 $ 474

 

 

 $ 1,744

 

 

 $ 442

 

 

 $ 440

 

 

 $ 456

 

 

 $ 406

 

Adjusted effective tax rate

 

 

 24.2 %

 

 

 22.9 %

 

 

 25.0 %

 

 

 24.5 %

 

 

 24.3 %

 

 

 24.1 %

 

 

 23.9 %

 

 

 23.9 %

 

 

 24.6 %

 

 

 23.9 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from Equity Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported income from equity investments

 

 $ 172

 

 

 $ 35

 

 

 $ 43

 

 

 $ 50

 

 

 $ 44

 

 

 $ 119

 

 

 $ 38

 

 

 $ 1

 

 

 $ 37

 

 

 $ 43

 

Add: Russia-Ukraine conflict and other charges (e)

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 35

 

 

 

 —

 

 

 

 35

 

 

 

 —

 

 

 

 —

 

Add: Purchase accounting impacts - Linde AG (c)

 

 

 75

 

 

 

 18

 

 

 

 18

 

 

 

 19

 

 

 

 20

 

 

 

 77

 

 

 

 20

 

 

 

 19

 

 

 

 19

 

 

 

 19

 

Total adjustments

 

 

 75

 

 

 

 18

 

 

 

 18

 

 

 

 19

 

 

 

 20

 

 

 

 112

 

 

 

 20

 

 

 

 54

 

 

 

 19

 

 

 

 19

 

Adjusted income from equity investments

 

 $ 247

 

 

 $ 53

 

 

 $ 61

 

 

 $ 69

 

 

 $ 64

 

 

 $ 231

 

 

 $ 58

 

 

 $ 55

 

 

 $ 56

 

 

 $ 62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Noncontrolling Interests from Continuing Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported noncontrolling interests from continuing operations

 

 $ (134 )

 

 $ (33 )

 

 $ (27 )

 

 $ (38 )

 

 $ (36 )

 

 $ (135 )

 

 $ (30 )

 

 $ (31 )

 

 $ (36 )

 

 $ (38 )

Add: Purchase accounting impacts - Linde AG (c)

 

 

 (22 )

 

 

 (3 )

 

 

 (12 )

 

 

 (3 )

 

 

 (4 )

 

 

 (15 )

 

 

 (4 )

 

 

 (4 )

 

 

 (2 )

 

 

 (5 )

Adjusted noncontrolling interests from continuing operations

 

 $ (156 )

 

 $ (36 )

 

 $ (39 )

 

 $ (41 )

 

 $ (40 )

 

 $ (150 )

 

 $ (34 )

 

 $ (35 )

 

 $ (38 )

 

 $ (43 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Income from Continuing Operations (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported income from continuing operations

 

 $ 4,147

 

 

 $ 1,328

 

 

 $ 1,273

 

 

 $ 372

 

 

 $ 1,174

 

 

 $ 3,821

 

 

 $ 1,024

 

 

 $ 978

 

 

 $ 840

 

 

 $ 979

 

Add: Pension settlement charge

 

 

 5

 

 

 

 —

 

 

 

 5

 

 

 

 —

 

 

 

 —

 

 

 

 3

 

 

 

 —

 

 

 

 3

 

 

 

 —

 

 

 

 —

 

Add: Russia-Ukraine conflict and other charges (a)

 

 

 893

 

 

 

 16

 

 

 

 (11 )

 

 

 889

 

 

 

 (1 )

 

 

 279

 

 

 

 51

 

 

 

 58

 

 

 

 198

 

 

 

 (28 )

Add: Purchase accounting impacts - Linde AG (c)

 

 

 1,150

 

 

 

 230

 

 

 

 288

 

 

 

 305

 

 

 

 327

 

 

 

 1,476

 

 

 

 356

 

 

 

 382

 

 

 

 377

 

 

 

 361

 

Total adjustments

 

 

 2,048

 

 

 

 246

 

 

 

 282

 

 

 

 1,194

 

 

 

 326

 

 

 

 1,758

 

 

 

 407

 

 

 

 443

 

 

 

 575

 

 

 

 333

 

 

 
Page 10/14

 

 

 

 

2022

 

 

2021

 

(Millions of dollars, except per share data)

 

Year to Date December 31,

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

 

Year to Date December 31,

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

Adjusted income from continuing operations

 

 $ 6,195

 

 

 $ 1,574

 

 

 $ 1,555

 

 

 $ 1,566

 

 

 $ 1,500

 

 

 $ 5,579

 

 

 $ 1,431

 

 

 $ 1,421

 

 

 $ 1,415

 

 

 $ 1,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Diluted EPS from Continuing Operations (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported diluted EPS from continuing operations

 

 $ 8.23

 

 

 $ 2.67

 

 

 $ 2.54

 

 

 $ 0.74

 

 

 $ 2.30

 

 

 $ 7.32

 

 

 $ 1.98

 

 

 $ 1.88

 

 

 $ 1.60

 

 

 $ 1.86

 

Add: Pension settlement charge

 

 

 0.01

 

 

 

 —

 

 

 

 0.01

 

 

 

 —

 

 

 

 —

 

 

 

 0.01

 

 

 

 —

 

 

 

 0.01

 

 

 

 —

 

 

 

 —

 

Add: Russia-Ukraine conflict and other charges (a)

 

 

 1.77

 

 

 

 0.03

 

 

 

 (0.02 )

 

 

 1.76

 

 

 

 —

 

 

 

 0.53

 

 

 

 0.10

 

 

 

 0.11

 

 

 

 0.38

 

 

 

 (0.05 )

Add: Purchase accounting impacts - Linde AG (c)

 

 

 2.28

 

 

 

 0.46

 

 

 

 0.57

 

 

 

 0.60

 

 

 

 0.63

 

 

 

 2.83

 

 

 

 0.69

 

 

 

 0.73

 

 

 

 0.72

 

 

 

 0.68

 

Total adjustments

 

 

 4.06

 

 

 

 0.49

 

 

 

 0.56

 

 

 

 2.36

 

 

 

 0.63

 

 

 

 3.37

 

 

 

 0.79

 

 

 

 0.85

 

 

 

 1.10

 

 

 

 0.63

 

Adjusted diluted EPS from continuing operations

 

 $ 12.29

 

 

 $ 3.16

 

 

 $ 3.10

 

 

 $ 3.10

 

 

 $ 2.93

 

 

 $ 10.69

 

 

 $ 2.77

 

 

 $ 2.73

 

 

 $ 2.70

 

 

 $ 2.49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported percentage change

 

 

 12 %

 

 

 35 %

 

 

 35 %

 

 

 (54 )%

 

 

 24 %

 

 

 56 %

 

 

 37 %

 

 

 42 %

 

 

 84 %

 

 

 74 %

Adjusted percentage change

 

 

 15 %

 

 

 14 %

 

 

 14 %

 

 

 15 %

 

 

 18 %

 

 

 30 %

 

 

 20 %

 

 

 27 %

 

 

 42 %

 

 

 32 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Quarter 2023

 

 

 

Full Year 2023

 

Adjusted Diluted EPS from Continuing Operations Guidance (d)

 

 

 

 

 

Low End

 

High End

 

 

 

 

 

Low End

 

 

High End

 

 

2023 Adjusted Guidance

 

 

 

 

 

 $

3.05

 

$

3.15

 

 

 

 

$

13.15

$

13.55

 

 

 

 

 

 

Adjusted percentage changes versus 2022 adjusted diluted EPS

 

 

 

 

 

 

4

%

 

8

%

 

 

 

 

7

%

10

 %

 

 

 

 

 

Add: Estimated currency headwind/(tailwind)

 

 

 

 

 

 

5

%

 

5

%

 

 

 

 

2

%

2

 %

 

 

 

 

 

Adjusted percentage change excluding currency

 

 

 

 

 

 

9

%

 

13

%

 

 

9

%

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA and % of Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

 $ 4,147

 

 

 $ 1,328

 

 

 $ 1,273

 

 

 $ 372

 

 

 $ 1,174

 

 

 $ 3,821

 

 

 $ 1,024

 

 

 $ 978

 

 

 $ 840

 

 

 $ 979

 

Add: Noncontrolling interests related to continuing operations

 

 

 134

 

 

 

 33

 

 

 

 27

 

 

 

 38

 

 

 

 36

 

 

 

 135

 

 

 

 30

 

 

 

 31

 

 

 

 36

 

 

 

 38

 

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

 

 

 (237 )

 

 

 (58 )

 

 

 (53 )

 

 

 (62 )

 

 

 (64 )

 

 

 (192 )

 

 

 (49 )

 

 

 (45 )

 

 

 (49 )

 

 

 (49 )

Add: Interest expense

 

 

 63

 

 

 

 31

 

 

 

 18

 

 

 

 5

 

 

 

 9

 

 

 

 77

 

 

 

 31

 

 

 

 8

 

 

 

 18

 

 

 

 20

 

Add: Income taxes

 

 

 1,434

 

 

 

 388

 

 

 

 391

 

 

 

 286

 

 

 

 369

 

 

 

 1,262

 

 

 

 339

 

 

 

 321

 

 

 

 334

 

 

 

 268

 

Add: Depreciation and amortization

 

 

 4,204

 

 

 

 956

 

 

 

 1,045

 

 

 

 1,091

 

 

 

 1,112

 

 

 

 4,635

 

 

 

 1,135

 

 

 

 1,163

 

 

 

 1,171

 

 

 

 1,166

 

EBITDA from continuing operations

 

 

 9,745

 

 

 

 2,678

 

 

 

 2,701

 

 

 

 1,730

 

 

 

 2,636

 

 

 

 9,738

 

 

 

 2,510

 

 

 

 2,456

 

 

 

 2,350

 

 

 

 2,422

 

Add: Russia-Ukraine conflict and other charges (a)

 

 

 1,029

 

 

 

 25

 

 

 

 15

 

 

 

 993

 

 

 

 (4 )

 

 

 308

 

 

 

 51

 

 

 

 61

 

 

 

 204

 

 

 

 (8 )

Add: Purchase accounting impacts - Linde AG (c)

 

 

 99

 

 

 

 22

 

 

 

 23

 

 

 

 23

 

 

 

 31

 

 

 

 133

 

 

 

 36

 

 

 

 42

 

 

 

 31

 

 

 

 24

 

Total adjustments

 

 

 1,128

 

 

 

 47

 

 

 

 38

 

 

 

 1,016

 

 

 

 27

 

 

 

 441

 

 

 

 87

 

 

 

 103

 

 

 

 235

 

 

 

 16

 

Adjusted EBITDA from continuing operations

 

 $ 10,873

 

 

 $ 2,725

 

 

 $ 2,739

 

 

 $ 2,746

 

 

 $ 2,663

 

 

 $ 10,179

 

 

 $ 2,597

 

 

 $ 2,559

 

 

 $ 2,585

 

 

 $ 2,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported sales

 

 $ 33,364

 

 

 $ 7,899

 

 

 $ 8,797

 

 

 $ 8,457

 

 

 $ 8,211

 

 

 $ 30,793

 

 

 $ 8,298

 

 

 $ 7,668

 

 

 $ 7,584

 

 

 $ 7,243

 

% of sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA from continuing operations

 

 

 29.2 %

 

 

 33.9 %

 

 

 30.7 %

 

 

 20.5 %

 

 

 32.1 %

 

 

 31.6 %

 

 

 30.2 %

 

 

 32.0 %

 

 

 31.0 %

 

 

 33.4 %

Adjusted EBITDA from continuing operations

 

 

 32.6 %

 

 

 34.5 %

 

 

 31.1 %

 

 

 32.5 %

 

 

 32.4 %

 

 

 33.1 %

 

 

 31.3 %

 

 

 33.4 %

 

 

 34.1 %

 

 

 33.7 %

 

 
Page 11/14

 

_________

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

 

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

 

(c) The company believes that its non-GAAP measures excluding Purchase accounting impacts - Linde AG are useful to investors because: (i) the business combination was a merger of equals in an all-stock merger transaction, with no cash consideration, (ii) the company is managed on a geographic basis and the results of certain geographies are more heavily impacted by purchase accounting than others, causing results that are not comparable at the reportable segment level, therefore, the impacts of purchasing accounting adjustments to each segment vary and are not comparable within the company and when compared to other companies in similar regions, (iii) business management is evaluated and variable compensation is determined based on results excluding purchase accounting impacts, and; (iv) it is important to investors and analysts to understand the purchase accounting impacts to the financial statements.

 

A summary of each of the adjustments made for Purchase accounting impacts - Linde AG are as follows:

 

Adjusted Operating Profit and Margin: The purchase accounting adjustments for the periods presented relate primarily to depreciation and amortization related to the fair value step up of fixed assets and intangible assets (primarily customer related) acquired in the merger and the allocation of fair value step-up for ongoing Linde AG asset disposals (reflected in Other Income/(Expense)).

 

Adjusted Interest Expense - Net: Relates to the amortization of the fair value of debt acquired in the merger.

 

Adjusted Income Taxes and Effective Tax Rate: Relates to the current and deferred income tax impact on the adjustments discussed above. The income tax expense (benefit) on the non-GAAP pre-tax adjustments was determined using the applicable tax rates for the jurisdictions that were utilized in calculating the GAAP income tax expense (benefit) and included both current and deferred income tax amounts.

 

Adjusted Income from Equity Investments: Represents the amortization of increased fair value on equity investments related to depreciable and amortizable assets.

 

Adjusted Noncontrolling Interests from Continuing Operations: Represents the noncontrolling interests’ ownership portion of the adjustments described above determined on an entity by entity basis.

 

(d) We are providing adjusted earnings per share (“EPS”) guidance for 2023. This is a non-GAAP financial measure that represents diluted earnings per share from continuing operations (a GAAP measure) but excludes the impact of certain items that we believe are not representative of our underlying business performance, such as cost reduction and other charges, any impairment or other charges related to scaling back operations in Russia as actions are defined and executed and as sanctions are enacted that impact the Company’s operations, the impact of potential divestitures or other potentially significant items. Given the uncertainty of timing and magnitude of such items, we cannot provide a reconciliation of the differences between the non-GAAP adjusted EPS guidance and the corresponding GAAP EPS measure without unreasonable effort.

 

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

 

 
Page 12/14

 

 

LINDE PLC AND SUBSIDIARIES

APPENDIX

NON-GAAP MEASURES AND RECONCILIATIONS

(UNAUDITED)

 

 

 

2022

 

 

2021

 

(Millions of dollars)

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Cash Flow

 

 $ 2,095

 

 

 $ 2,636

 

 

 $ 2,133

 

 

 $ 2,000

 

 

 $ 3,233

 

 

 $ 2,556

 

 

 $ 1,827

 

 

 $ 2,109

 

Less: Capital Expenditures

 

 

 (936 )

 

 

 (762 )

 

 

 (826 )

 

 

 (649 )

 

 

 (839 )

 

 

 (741 )

 

 

 (744 )

 

 

 (762 )

Free Cash Flow

 

 $ 1,159

 

 

 $ 1,874

 

 

 $ 1,307

 

 

 $ 1,351

 

 

 $ 2,394

 

 

 $ 1,815

 

 

 $ 1,083

 

 

 $ 1,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

 $ 17,914

 

 

 $ 15,338

 

 

 $ 16,043

 

 

 $ 16,456

 

 

 $ 14,207

 

 

 $ 16,727

 

 

 $ 15,492

 

 

 $ 15,750

 

Less: Cash and cash equivalents

 

 

 (5,436 )

 

 

 (3,756 )

 

 

 (3,655 )

 

 

 (4,464 )

 

 

 (2,823 )

 

 

 (4,700 )

 

 

 (3,137 )

 

 

 (4,096 )

Net debt

 

 

 12,478

 

 

 

 11,582

 

 

 

 12,388

 

 

 

 11,992

 

 

 

 11,384

 

 

 

 12,027

 

 

 

 12,355

 

 

 

 11,654

 

Less: Purchase accounting impacts - Linde AG

 

 

 (22 )

 

 

 (28 )

 

 

 (38 )

 

 

 (50 )

 

 

 (61 )

 

 

 (72 )

 

 

 (84 )

 

 

 (98 )

Adjusted net debt

 

 

 12,456

 

 

 

 11,554

 

 

 

 12,350

 

 

 

 11,942

 

 

 

 11,323

 

 

 

 11,955

 

 

 

 12,271

 

 

 

 11,556

 

Less: Net assets held for sale

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 —

 

 

 

 (1 )

 

 

 (1 )

 

 

 (4 )

Adjusted net debt less net assets held for sale

 

 $ 12,456

 

 

 $ 11,554

 

 

 $ 12,350

 

 

 $ 11,942

 

 

 $ 11,323

 

 

 $ 11,954

 

 

 $ 12,270

 

 

 $ 11,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported income from continuing operations

 

 $ 1,328

 

 

 $ 1,273

 

 

 $ 372

 

 

 $ 1,174

 

 

 $ 1,024

 

 

 $ 978

 

 

 $ 840

 

 

 $ 979

 

Add: noncontrolling interests from continuing operations

 

 

 33

 

 

 

 27

 

 

 

 38

 

 

 

 36

 

 

 

 30

 

 

 

 31

 

 

 

 36

 

 

 

 38

 

Add: interest expense - net

 

 

 31

 

 

 

 18

 

 

 

 5

 

 

 

 9

 

 

 

 31

 

 

 

 8

 

 

 

 18

 

 

 

 20

 

Less: tax benefit on interest expense - net *

 

 

 (7 )

 

 

 (5 )

 

 

 (1 )

 

 

 (2 )

 

 

 (8 )

 

 

 (2 )

 

 

 (5 )

 

 

 (5 )

Reported NOPAT

 

 $ 1,385

 

 

 $ 1,313

 

 

 $ 414

 

 

 $ 1,217

 

 

 $ 1,077

 

 

 $ 1,015

 

 

 $ 889

 

 

 $ 1,032

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income from continuing operations

 

 $ 1,574

 

 

 $ 1,555

 

 

 $ 1,566

 

 

 $ 1,500

 

 

 $ 1,431

 

 

 $ 1,421

 

 

 $ 1,415

 

 

 $ 1,312

 

Add: adjusted noncontrolling interests from continuing operations

 

 

 36

 

 

 

 39

 

 

 

 41

 

 

 

 40

 

 

 

 34

 

 

 

 35

 

 

 

 38

 

 

 

 43

 

Add: adjusted interest expense - net

 

 

 39

 

 

 

 26

 

 

 

 14

 

 

 

 19

 

 

 

 41

 

 

 

 18

 

 

 

 33

 

 

 

 38

 

Less: tax benefit on interest expense - net *

 

 

 (9 )

 

 

 (7 )

 

 

 (3 )

 

 

 (5 )

 

 

 (10 )

 

 

 (5 )

 

 

 (8 )

 

 

 (10 )

Adjusted NOPAT

 

 $ 1,640

 

 

 $ 1,613

 

 

 $ 1,618

 

 

 $ 1,554

 

 

 $ 1,496

 

 

 $ 1,469

 

 

 $ 1,478

 

 

 $ 1,383

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4-quarter trailing reported NOPAT

 

 $ 4,329

 

 

 $ 4,021

 

 

 $ 3,723

 

 

 $ 4,198

 

 

 $ 4,013

 

 

 $ 3,765

 

 

 $ 3,508

 

 

 $ 3,115

 

4-quarter trailing adjusted NOPAT

 

 $ 6,425

 

 

 $ 6,281

 

 

 $ 6,137

 

 

 $ 5,997

 

 

 $ 5,826

 

 

 $ 5,627

 

 

 $ 5,389

 

 

 $ 4,985

 

 

 
Page 13/14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

(Millions of dollars)

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

 

Q4

 

 

Q3

 

 

Q2

 

 

Q1

 

Equity and redeemable noncontrolling interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests

 

 $ 13

 

 

 $ 13

 

 

 $ 13

 

 

 $ 13

 

 

 $ 13

 

 

 $ 13

 

 

 $ 13

 

 

 $ 13

 

Linde plc shareholders' equity

 

 

 40,028

 

 

 

 37,628

 

 

 

 39,674

 

 

 

 42,963

 

 

 

 44,035

 

 

 

 44,323

 

 

 

 45,777

 

 

 

 46,210

 

Noncontrolling interests

 

 

 1,346

 

 

 

 1,298

 

 

 

 1,353

 

 

 

 1,414

 

 

 

 1,393

 

 

 

 1,401

 

 

 

 1,438

 

 

 

 1,410

 

Total equity and redeemable noncontrolling interests

 

 $ 41,387

 

 

 $ 38,939

 

 

 $ 41,040

 

 

 $ 44,390

 

 

 $ 45,441

 

 

 $ 45,737

 

 

 $ 47,228

 

 

 $ 47,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported capital

 

 $ 53,865

 

 

 $ 50,521

 

 

 $ 53,428

 

 

 $ 56,382

 

 

 $ 56,825

 

 

 $ 57,763

 

 

 $ 59,582

 

 

 $ 59,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity and redeemable noncontrolling interests

 

 $ 41,387

 

 

 $ 38,939

 

 

 $ 41,040

 

 

 $ 44,390

 

 

 $ 45,441

 

 

 $ 45,737

 

 

 $ 47,228

 

 

 $ 47,633

 

Add: Adjusted net debt less net assets held for sale

 

 

 12,456

 

 

 

 11,554

 

 

 

 12,350

 

 

 

 11,942

 

 

 

 11,323

 

 

 

 11,954

 

 

 

 12,270

 

 

 

 11,552

 

Less: Linde AG Goodwill (a)

 

 

 24,256

 

 

 

 24,256

 

 

 

 24,256

 

 

 

 24,256

 

 

 

 24,256

 

 

 

 24,256

 

 

 

 24,256

 

 

 

 24,256

 

Less: Linde AG Indefinite lived intangibles (a)

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

 

 

 1,868

 

Adjusted capital

 

 $ 27,719

 

 

 $ 24,369

 

 

 $ 27,266

 

 

 $ 30,208

 

 

 $ 30,640

 

 

 $ 31,567

 

 

 $ 33,374

 

 

 $ 33,061

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending capital (see above)

 

 $ 53,865

 

 

 $ 50,521

 

 

 $ 53,428

 

 

 $ 56,382

 

 

 $ 56,825

 

 

 $ 57,763

 

 

 $ 59,582

 

 

 $ 59,283

 

5-quarter average ending capital

 

 $ 54,204

 

 

 $ 54,984

 

 

 $ 56,796

 

 

 $ 57,967

 

 

 $ 59,086

 

 

 $ 59,960

 

 

 $ 60,502

 

 

 $ 60,584

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending adjusted capital (see above)

 

 $ 27,719

 

 

 $ 24,369

 

 

 $ 27,266

 

 

 $ 30,208

 

 

 $ 30,640

 

 

 $ 31,567

 

 

 $ 33,374

 

 

 $ 33,061

 

5-quarter average ending adjusted capital

 

 $ 28,040

 

 

 $ 28,810

 

 

 $ 30,611

 

 

 $ 31,770

 

 

 $ 32,875

 

 

 $ 33,735

 

 

 $ 34,261

 

 

 $ 34,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 8.0 %

 

 

 7.3 %

 

 

 6.6 %

 

 

 7.2 %

 

 

 6.8 %

 

 

 6.3 %

 

 

 5.8 %

 

 

 5.1 %

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

 

 

 22.9 %

 

 

 21.8 %

 

 

 20.0 %

 

 

 18.9 %

 

 

 17.7 %

 

 

 16.7 %

 

 

 15.7 %

 

 

 14.5 %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 
 
Page 14/14