LINDE PLC - Quarter Report: 2024 September (Form 10-Q)

Net Income (Including Noncontrolling Interests) Less: noncontrolling interests()()Net Income – Linde plc$ $ Per Share Data – Linde plc ShareholdersBasic earnings per share$ $ Diluted earnings per share$ $ Weighted Average Shares Outstanding (000’s):Basic shares outstanding Diluted shares outstanding

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

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LINDE PLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Millions of dollars, except per share data)

(UNAUDITED)


	Nine Months Ended September 30,
	2024	2023
Sales	$	$
Cost of sales, exclusive of depreciation and amortization
Selling, general and administrative
Depreciation and amortization
Research and development
Cost reduction program and other charges
Other income (expense) - net		()
Operating Profit
Interest expense - net
Net pension and OPEB cost (benefit), excluding service cost	()	()
Income Before Income Taxes and Equity Investments
Income taxes
Income Before Equity Investments
Income from equity investments
Net Income (Including Noncontrolling Interests)
Less: noncontrolling interests	()	()
Net Income – Linde plc	$	$

Per Share Data – Linde plc Shareholders
Basic earnings per share	$	$
Diluted earnings per share	$	$

Weighted Average Shares Outstanding (000’s):
Basic shares outstanding
Diluted shares outstanding

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

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LINDE PLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Millions of dollars)

(UNAUDITED)


	Quarter Ended September 30,
	2024	2023
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)	$	$

OTHER COMPREHENSIVE INCOME (LOSS)
Translation adjustments:
Foreign currency translation adjustments		()
Income taxes	()
Translation adjustments		()
Funded status - retirement obligations (Note 7):
Retirement program remeasurements	()	()
Reclassifications to net income
Income taxes
Funded status - retirement obligations	()
Derivative instruments (Note 4):
Current unrealized gain (loss)	()	()
Reclassifications to net income
Income taxes	()
Derivative instruments		()
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)		()

COMPREHENSIVE INCOME (LOSS) (INCLUDING NONCONTROLLING INTERESTS)
Less: noncontrolling interests	()	()
COMPREHENSIVE INCOME (LOSS) - LINDE PLC	$	$

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

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LINDE PLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Millions of dollars)

(UNAUDITED)


	Nine Months Ended September 30,
	2024	2023
NET INCOME (INCLUDING NONCONTROLLING INTERESTS)	$	$

OTHER COMPREHENSIVE INCOME (LOSS)
Translation adjustments:
Foreign currency translation adjustments	()	()
Income taxes
Translation adjustments	()	()
Funded status - retirement obligations (Note 7):
Retirement program remeasurements	()	()
Reclassifications to net income	()	()
Income taxes
Funded status - retirement obligations	()	()
Derivative instruments (Note 4):
Current unrealized gain (loss)	()	()
Reclassifications to net income
Income taxes	()
Derivative instruments		()
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)	()	()

COMPREHENSIVE INCOME (LOSS) (INCLUDING NONCONTROLLING INTERESTS)
Less: noncontrolling interests	()	()
COMPREHENSIVE INCOME (LOSS) - LINDE PLC	$	$

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

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LINDE PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Millions of dollars)

(UNAUDITED)


	September 30, 2024	December 31, 2023
Assets
Cash and cash equivalents	$	$
Accounts receivable - net
Contract assets
Inventories
Prepaid and other current assets
Total Current Assets
Property, plant and equipment - net
Goodwill
Other intangible assets - net
Other long-term assets
Total Assets	$	$
Liabilities and equity
Accounts payable	$	$
Short-term debt
Current portion of long-term debt
Contract liabilities
Other current liabilities
Total Current Liabilities
Long-term debt
Other long-term liabilities
Total Liabilities
Redeemable noncontrolling interests
Linde plc Shareholders’ Equity (Note 10):
Ordinary shares, € par value, authorized shares, 2024 and 2023 issued: ordinary shares
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income (loss)	()	()
Less: Treasury shares, at cost (2024 – shares and 2023 – shares)	()	()
Total Linde plc Shareholders’ Equity
Noncontrolling interests
Total Equity
Total Liabilities and Equity	$	$

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

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LINDE PLC AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Millions of dollars)

(UNAUDITED)


	Nine Months Ended September 30,
	2024	2023
Increase (Decrease) in Cash and Cash Equivalents
Operations
Net income - Linde plc	$	$
Add: Noncontrolling interests
Net Income (including noncontrolling interests)
Adjustments to reconcile net income to net cash provided by operating activities:
Cost reduction program and other charges		()
Depreciation and amortization
Deferred income taxes	()	()
Share-based compensation
Working capital:
Accounts receivable	()	()
Inventory		()
Prepaid and other current assets	()
Payables and accruals	()	()
Contract assets and liabilities, net	()	()
Pension contributions	()	()
Long-term assets, liabilities and other	()	()
Net cash provided by (used for) operating activities
Investing
Capital expenditures	()	()
Acquisitions, net of cash acquired	()	()
Divestitures, net of cash divested and asset sales
Net cash provided by (used for) investing activities	()	()
Financing
Short-term debt borrowings (repayments) - net	()	()
Long-term debt borrowings
Long-term debt repayments	()	()
Issuances of ordinary shares
Purchases of ordinary shares	()	()
Cash dividends - Linde plc shareholders	()	()
Noncontrolling interest transactions and other	()	()
Net cash provided by (used for) financing activities	()	()
Effect of exchange rate changes on cash and cash equivalents	()	()
Change in cash and cash equivalents		()
Cash and cash equivalents, beginning-of-period
Cash and cash equivalents, end-of-period	$	$

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

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INDEX TO NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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million and $ million at September 30, 2024 and December 31, 2023, respectively, and gross receivables aged greater than one year were $ million and $ million at September 30, 2024 and December 31, 2023, respectively. Other receivables were $ million and $ million at September 30, 2024 and December 31, 2023, 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 $ million at September 30, 2024 and $ million at December 31, 2023. Allowances for expected credit losses were $ million at September 30, 2024 and $ million at December 31, 2023. Provisions for expected credit losses were $ million and $ million for the nine months ended September 30, 2024 and 2023, respectively. The allowance activity in the nine months ended September 30, 2024 and 2023 related to write-offs of uncollectible amounts, net of recoveries and currency movements is not material.

Inventories

$ Work in process Finished goods Total inventories$ $

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$ Other bank borrowings (primarily non U.S.) Total short-term debt LONG-TERM (a)(U.S. dollar denominated unless otherwise noted)

% Euro denominated notes due 2024 (c)

% Euro denominated notes due 2024 (b,e)

% Notes due 2024

% Notes due 2025

% Euro denominated notes due 2025

% Euro denominated notes due 2026

% Notes due 2026

% Euro denominated notes due 2027

% Euro denominated notes due 2028 (b)

% Euro denominated notes due 2028 (d)

% Euro denominated notes due 2029

% Notes due 2030

% Euro denominated notes due 2030

% Euro denominated notes due 2030 (f)

% Euro denominated notes due 2031

% Euro denominated notes due 2031 (d)

% Euro denominated notes due 2032

% Euro denominated notes due 2033

% Euro denominated notes due 2034

% Euro denominated notes due 2034 (f)

% Euro denominated notes due 2035

% Euro denominated notes due 2036 (d)

% Notes due 2042

% Euro denominated notes due 2044 (f)

% Notes due 2050

% Euro denominated notes due 2051

Non U.S. borrowings Other Less: current portion of long-term debt()()Total long-term debt Total debt$ $

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

(b)September 30, 2024 and December 31, 2023 included a cumulative $ million and $ million adjustment to carrying value, respectively, related to hedge accounting of interest rate swaps. Refer to Note 4.

(c)In February 2024, Linde repaid € million of % notes that became due.

(d)In February 2024, Linde issued € million of % notes due in 2028, € million of % notes due in 2031 and € million of % notes due in 2036.

(e)In May 2024, Linde repaid € million of % notes that became due.

(f)In June 2024, Linde issued € million of % notes due in 2030, € million of % notes due in 2034 and € million of % notes due in 2044.

The company maintains a $ billion and a $ billion unsecured revolving credit agreement with a syndicate of banking institutions that expire on December 7, 2027 and December 4, 2024, respectively. There are no financial maintenance covenants contained within the credit agreements. borrowings were outstanding under the credit agreements as of September 30, 2024.

% and % as of September 30, 2024 and December 31, 2023, respectively.

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

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

Counterparties to Linde's derivatives are major banking institutions with credit ratings of investment grade or better. The company has Credit Support Annexes ("CSAs") in place for certain entities with 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, 2024, 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.

$ $ $ $ $ Forecasted transactions Total$ $ $ $ $ $ Derivatives Designated as Hedging Instruments:Currency contracts: Forecasted transactions$ $ $ $ $ $ Commodity contracts N/AN/A Interest rate swaps Total Hedges$ $ $ $ $ $ Total Derivatives$ $ $ $ $ $

(a)Amounts as of September 30, 2024 and December 31, 2023 included current assets of $ million and $ million which are recorded in prepaid and other current assets; long-term assets of $ million and $ million which are recorded in other long-term assets; current liabilities of $ million and $ million which are recorded in other current liabilities; and long-term liabilities of $ million and $ million which are recorded in other long-term liabilities.

In addition, during the third quarter of 2024, Linde issued credit default swaps (“CDS”) to a third-party financial institution. The CDS relate to a secured borrowing provided by the financial institution to a government customer in Mexico, that was utilized to pay certain of Linde’s outstanding receivables. The notional amount of the CDS, which was $ million as of September 30, 2024, will reduce on a monthly basis over its term. As of September 30, 2024, the fair value of this derivative liability was not material.

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 (loss) 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. Linde is hedging forecasted transactions for a maximum period of .

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. For forecasted transactions that are designated as cash flow hedges, fair value adjustments are recorded to accumulated other comprehensive income (loss) with deferred amounts reclassified to

Net Investment Hedges

As of September 30, 2024, Linde has € billion ($ billion) Euro-denominated notes and intercompany loans, ¥ billion ($ billion) CNY-denominated intercompany loans and C$ billion ($ billion) CAD-denominated intercompany loans that are designated as hedges of the net investment positions in certain foreign operations. Since hedge inception, the deferred loss recorded within the cumulative translation adjustment component of accumulated other comprehensive income (loss) in the consolidated balance sheet is $ million (deferred loss of $ million and $ million in the consolidated statement of comprehensive income for the quarter and nine months ended September 30, 2024, respectively).

As of September 30, 2024, exchange rate movements relating to previously designated hedges that remain in accumulated other comprehensive income (loss) is a gain of $ million. These movements will remain in accumulated other comprehensive income (loss), until appropriate, such as upon sale or liquidation of the related foreign operations at which time amounts will be reclassified to the consolidated statements of income.

Interest Rate Swaps

Linde has historically used 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. When used, these interest rate swaps would effectively convert fixed-rate interest exposures to variable rates; fair value adjustments were recognized in earnings along with an equally offsetting charge/benefit to earnings for the changes in the fair value of the underlying financial asset or financial liability (See Note 3).

In addition, as of December 31, 2023, Linde was using interest rate swaps with a notional value of € billion to hedge the variability of future cash flows of forecasted transactions due to interest rate risk and had designated this as a cash flow hedge. The interest rate swaps were terminated during the first quarter of 2024 with the February debt issuance and the settlement values were .

Derivatives' Impact on Consolidated Statements of Income

)$ $()$()Other balance sheet items ()()()Total$()$ $()$()

* 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 accumulated other comprehensive income (loss) and reclassified to the consolidated statement of income was not material for the nine months ended September 30, 2024 and 2023, respectively. Net impacts expected to be reclassified to earnings during the next twelve months are also not material.

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$ $ $ $ $ Investments and securities* Total$ $ $ $ $ LiabilitiesDerivative liabilities$ $ $ $ $ $

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

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

Changes in level 3 investments and securities were immaterial.

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

The fair value of long-term debt is estimated based on the quoted market prices for the same or similar issues. Long-term debt is categorized within Level 2 of the fair value hierarchy. At September 30, 2024, the estimated fair value of Linde’s long-term debt portfolio was $ million versus a carrying value of $ million. At December 31, 2023, the estimated fair value of Linde’s long-term debt portfolio was $ million versus a carrying value of $ million. Differences between the carrying value and the fair value are attributable to fluctuations in interest rates subsequent to when the debt was issued and relative to stated coupon rates.

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$ $ $ Denominator (Thousands of shares)Weighted average shares outstanding Shares earned and issuable under compensation plans Weighted average shares used in basic earnings per share Effect of dilutive securitiesStock options and awards Weighted average shares used in diluted earnings per share Basic Earnings Per Share $ $ $ $ Diluted Earnings Per Share$ $ $ $

The weighted-average of antidilutive securities excluded from the calculation of diluted earnings per share was and for the quarter and nine months ended September 30, 2024, respectively. There were antidilutive securities in the respective 2023 periods.

$ $ $ Amount recognized in Net pension and OPEB cost (benefit), excluding service costInterest cost Expected return on plan assets()()()()Net amortization and deferral()()()()Settlement charge (a) ()()()() Net periodic benefit cost (benefit)$()$()$()$()

(a) In the third quarters of 2024 and 2023, Linde recorded pension settlement charges of $ million and $ million ($ million and $ million, after tax), respectively, related to lump sum benefit payments made from a U.S. non-qualified plan.

Components of net periodic benefit expense for other post-retirement plans for the quarter and nine months ended September 30, 2024 and 2023 were not material.

million to $ million million have been made through September 30, 2024.

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per share. Any such increase would apply to all 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. In November 2023, the court issued a decision rejecting the plaintiffs’ claims in their entirety and determining that the cash merger squeeze-out consideration was appropriate. The plaintiffs have appealed this decision.

The company believes the consideration paid was fair and that the claims are not supported by sufficient evidence, and no reserve has been established. We cannot estimate the timing of resolution.

•On May 27, 2022, performance of Linde Engineering agreements in Russia were lawfully suspended in compliance with applicable sanctions. In December 2022, a Russian court based in St. Petersburg ("St. Petersburg Court") issued an injunction preventing (i) the sale of any shares in Linde’s subsidiaries and joint ventures in Russia, and (ii) the disposal of any of the assets in those entities exceeding % of the relevant company’s overall asset value. The injunction was requested by RusChemAlliance (RCA) to secure payment of a possible award under an arbitration proceeding RCA intended to file against Linde Engineering for alleged breach of contract under the agreement to build a gas processing plant in Russia entered into in July 2021. In March 2023, RCA filed a claim in St. Petersburg against Linde GmbH for recovery of advance payments under the agreement ("GPP Claim"), and subsequently (i) added Linde and other Linde subsidiaries as defendants, and (ii) is seeking payment of alleged damages from Linde and guarantor banks. In March 2024, RCA filed a similar claim for repayment and damages against Linde for alleged breach of contract under the agreement to build a liquefied natural gas plant in Russia entered into in September 2021 (“LNG Claim”, and together with the GPP Claim, the “Russian Claims”).

In accordance with the dispute resolution provisions of the agreements, in 2023, Linde filed a notice of arbitration with the Hong Kong International Arbitration Centre ("HKIAC") against RCA to claim that (i) RCA has no entitlement to payment, (ii) RCA’s Russian Claims are in breach of the arbitration agreement which requires HKIAC arbitration, and (iii) RCA must compensate Linde for the losses and damages caused by the injunction. During 2024, Linde secured awards on exclusive jurisdiction with HKIAC.

In January 2024, the Hong Kong court issued a final judgment in Linde’s favor (i) granting a permanent anti-suit injunction against RCA to seek a stay of the GPP claim and not start an LNG claim, (ii) granting a permanent, global anti-enforcement injunction against RCA for the GPP claim, and (iii) ordering that the injunction issued by the St. Petersburg Court be lifted (“HK Court Judgement”).

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billion recorded in Other long-term liabilities, which represents advance payments previously recorded in contract liabilities related to terminated engineering projects with RCA. As a result of the contract terminations, Linde no longer has future performance obligations for these projects.

It is difficult to estimate the timing of resolution of these matters. The company intends to vigorously defend its interests in the Russian Claims, Hong Kong arbitration proceedings and other jurisdictions.

$ $ $ EMEA APAC Engineering Other Total sales$ $ $ $


	Quarter Ended September 30,		Nine Months Ended September 30,
(Millions of dollars)	2024	2023	2024	2023
SEGMENT OPERATING PROFIT
Americas	$	$	$	$
EMEA
APAC
Engineering
Other
Segment operating profit
Cost reduction program and other charges	()	()	()	()
Purchase accounting impacts - Linde AG (b)	()	()	()	()
Total operating profit	$	$	$	$

(a)Sales reflect external sales only. Intersegment sales, primarily from Engineering to the industrial gases segments, were $ million and $ million for the quarter and nine months ended September 30, 2024, respectively, and $ million and $ million for the respective 2023 periods.

(b)Represents purchase accounting impacts related to the 2018 merger.

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10.

$ $ $ $ $ Net income (a) Other comprehensive income (loss) ()()()Noncontrolling interests:Additions (reductions) ()() ()()Dividends and other capital changes ()() ()()

Dividends to Linde plc ordinary share holders ($ per share in 2024 and $ per share in 2023)

() ()() ()Issuances of ordinary shares:For employee savings and incentive plans() ()() ()Purchases of ordinary shares() ()() ()Share-based compensation Balance, end of period$ $ $ $ $ $


	Nine Months Ended September 30,
(Millions of dollars)	2024			2023
Activity	Linde plc Shareholders’ Equity	Noncontrolling Interests	Total Equity	Linde plc Shareholders’ Equity	Noncontrolling Interests	Total Equity
Balance, beginning of period	$	$	$	$	$	$
Net income (a)
Other comprehensive income (loss)	()		()	()	()	()
Noncontrolling interests:
Additions (reductions)				()	()	()
Dividends and other capital changes		()	()		()	()

Dividends to Linde plc ordinary share holders ($ per share in 2024 and $ per share in 2023)	()		()	()		()
Issuances of ordinary shares:

For employee savings and incentive plans	()		()	()		()

Purchases of ordinary shares	()		()	()		()

Share-based compensation
Balance, end of period	$	$	$	$	$	$

(a)Net income for noncontrolling interests excludes net income related to redeemable noncontrolling interests which is not significant for the quarter and nine months ended September 30, 2024 and 2023 and which is not part of total equity.

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)$()EMEA()()APAC()()Engineering()()Other ()()Derivatives - net of taxes

(Millions of dollars)

Quarter Ended September 30, 2023

Sales

Americas

EMEA

APAC

Engineering

Other

Total

Merchant

On-Site

Packaged Gas

Other

Total

(Millions of dollars)

Nine Months Ended September 30, 2024

Sales

Americas

EMEA

APAC

Engineering

Other

Total

Merchant

On-Site

Packaged Gas

Other

Total

(Millions of dollars)

Nine Months Ended September 30, 2023

Sales

Americas

EMEA

APAC

Engineering

Other

Total

Merchant

On-Site

Packaged Gas

Other

Total

Remaining Performance Obligations

As described above, Linde's contracts with on-site customers are under long-term supply arrangements which generally require the customer to purchase their requirements from Linde and also have minimum purchase requirements. Additionally, plant sales from the Linde Engineering business are primarily contracted on a fixed price basis. The company estimates the consideration related to future minimum purchase requirements and plant sales was approximately $ billion. This amount excludes all on-site sales above minimum purchase requirements, which can be significant depending on customer needs. In the

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. The company estimates that approximately half of the revenue related to minimum purchase requirements will be earned in the next and the remaining thereafter.

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

Non-GAAP Measures

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

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

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Consolidated Results

The following table provides summary information for the quarters and nine months ended September 30, 2024 and 2023. The reported amounts are GAAP amounts from the Consolidated Statements of Income. The adjusted amounts are intended to supplement investors' understanding of the company's financial information and are not a substitute for GAAP measures:


	Quarter Ended September 30,								Nine Months Ended September 30,
(Millions of dollars, except per share data)	2024			2023			Variance		2024			2023			Variance
Sales	$	8,356		$	8,155		2	%	$	24,723		$	24,552		1	%
Cost of sales, exclusive of depreciation and amortization	$	4,356		$	4,314		1	%	$	12,823		$	13,061		(2)	%
As a percent of sales	52.1		%	52.9		%			51.9		%	53.2		%
Selling, general and administrative	$	823		$	808		2	%	$	2,523		$	2,463		2	%
As a percent of sales	9.8		%	9.9		%			10.2		%	10.0		%
Depreciation and amortization	$	960		$	959		—	%	$	2,867		$	2,867		—	%
Cost reduction program and other charges	$	145		$	2		7,150	%	$	145		$	42		245	%
Other income (expense) - net	$	51		$	16		219	%	$	111		$	(16)		794	%
Operating profit	$	2,086		$	2,052		2	%	$	6,365		$	5,996		6	%
Operating margin	25.0		%	25.2		%			25.7		%	24.4		%
Interest expense - net	$	68		$	40		70	%	$	203		$	129		57	%
Net pension and OPEB cost (benefit), excluding service cost	$	(45)		$	(35)		29	%	$	(144)		$	(125)		15	%
Effective tax rate	24.1		%	23.8		%			23.3		%	22.6		%
Income from equity investments	$	38		$	41		(7)	%	$	131		$	128		2	%
Noncontrolling interests	$	(53)		$	(36)		47	%	$	(128)		$	(109)		17	%
Net Income – Linde plc	$	1,550		$	1,565		(1)	%	$	4,840		$	4,656		4	%
Diluted earnings per share	$	3.22		$	3.19		1	%	$	10.02		$	9.43		6	%
Diluted shares outstanding	480,898			491,076			(2)	%	483,186			493,567			(2)	%
Number of employees	65,596			66,442			(1)	%	65,596			66,442			(1)	%
Adjusted Amounts (a)
Operating profit	$	2,477		$	2,306		7	%	$	7,240		$	6,798		7	%
Operating margin	29.6		%	28.3		%			29.3		%	27.7		%
Effective tax rate	23.6		%	23.7		%			23.3		%	23.8		%
Net Income – Linde plc	$	1,896		$	1,783		6	%	$	5,576		$	5,236		6	%
Diluted earnings per share	$	3.94		$	3.63		9	%	$	11.54		$	10.61		9	%
Other Financial Data (a)
EBITDA	$	3,084		$	3,052		1	%	$	9,363		$	8,991		4	%
As percent of sales	36.9		%	37.4		%			37.9		%	36.6		%
Adjusted EBITDA	$	3,253		$	3,074		6	%	$	9,575		$	9,096		5	%
As percent of sales	38.9		%	37.7		%			38.7		%	37.0		%

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

Reported

In the third quarter of 2024, Linde's sales were $8,356 million, $201 million above prior year. The increase in sales was driven by 2% higher price attainment. Engineering increased sales by 2% in the quarter. Volumes were flat in the quarter versus the 2023 respective period, as base volume declines were largely offset by new project start-ups. Currency translation decreased sales by 1% in the quarter driven primarily by the weakening of the Brazilian real and Mexican peso against the U.S. Dollar. Cost pass-through, representing the contractual billing of energy cost variances primarily to onsite customers, decreased sales by 1% in the quarter, with minimal impact on operating profit.

Reported operating profit for the third quarter of 2024 of $2,086 million, or 25.0% of sales, was 2% above prior year. The reported year-over-year increase was primarily driven by higher pricing and productivity initiatives which more than offset

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adverse impacts from cost inflation, cost reduction program and other charges and currency translation. The reported effective tax rate ("ETR") was 24.1% in the third quarter 2024 versus 23.8% in the third quarter 2023. Diluted earnings per share ("EPS") was $3.22, or 1% above EPS of $3.19 in the third quarter of 2023, primarily due to lower diluted shares outstanding partially offset by lower net income - Linde plc.

Adjusted

In the third quarter of 2024, adjusted operating profit of $2,477 million, or 29.6% of sales, was 7% higher as compared to 2023, driven by higher pricing, and productivity initiatives, partially offset by cost inflation and currency translation. The adjusted ETR was 23.6% in the third quarter 2024 versus 23.7% in the 2023 quarter. On an adjusted basis, EPS was $3.94, 9% above the 2023 adjusted EPS of $3.63, driven by higher adjusted net income - Linde plc and lower diluted shares outstanding.

Outlook

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

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Results of operations

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


	Quarter Ended September 30, 2024 vs. 2023		Nine Months Ended September 30, 2024 vs. 2023
	% Change		% Change
Factors Contributing to Changes - Sales
Volume	—	%	—	%
Price/Mix	2	%	2	%
Cost pass-through	(1)	%	(1)	%
Currency	(1)	%	(1)	%
Acquisitions/divestitures	—	%	—	%
Engineering	2	%	1	%
	2	%	1	%

Sales

Sales increased $201 million or 2% for the third quarter of 2024 and increased $171 million, or 1% for the nine months ended September 30, 2024 versus the respective 2023 periods. Higher pricing contributed 2% to sales in both the quarter and year-to-date periods. Engineering increased sales by 2% in the quarter and 1% in the year-to-date period. Currency translation decreased sales by 1% in the quarter primarily driven by weakening of the Brazilian real and Mexican peso, partially offset by a strengthening of the Euro against the U.S. Dollar. Currency translation decreased sales by 1% in the year-to-date period driven primarily by the weakening of the Brazilian real, Chinese yuan, and Korean won. Cost pass-through decreased sales by 1% in both the quarter and year-to-date periods, with minimal impact on operating profit. Volumes were flat in both the quarter and year-to-date periods versus the respective 2023 periods, as base volume declines were largely offset by new project start-ups.

Cost of sales, exclusive of depreciation and amortization

Cost of sales, exclusive of depreciation and amortization increased $42 million, or 1%, for the third quarter of 2024 primarily due to higher Engineering sales and decreased $238 million, or 2% for the nine months ended September 30, 2024 primarily due to lower cost pass-through and productivity gains which more than offset cost inflation. Cost of sales, exclusive of depreciation and amortization was 52.1% and 51.9% of sales, respectively, for the third quarter and nine months ended September 30, 2024 versus 52.9% and 53.2% for the respective 2023 periods. The decrease as a percentage of sales in the quarter was primarily due to higher pricing and lower cost pass-through.

Selling, general and administrative expenses

Selling, general and administrative expense ("SG&A") increased $15 million, or 2%, for the third quarter of 2024 and increased $60 million or 2% for the nine months ended September 30, 2024 driven by higher costs. SG&A was 9.8% and 10.2% of third quarter and nine months ended September 30, 2024 sales, respectively versus 9.9% and 10.0% of the respective 2023 periods.

Depreciation and amortization

Reported depreciation and amortization expense increased $1 million for the third quarter of 2024 and remained flat for the nine months ended September 30, 2024.

On an adjusted basis, depreciation and amortization increased $10 million, for the third quarter of 2024 and increased $33 million for the year-to-date period driven by new project start ups.

Cost reduction program and other charges

Cost reduction program and other charges were $145 million for the quarter and nine months ended September 30, 2024 and $2 million and $42 million for the respective 2023 periods. 2024 includes severance charges of $148 million and $165 million for

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the quarter and year to date periods, other cost reduction charges of $40 million and $23 million for the quarter and year to date periods, and other benefit of $43 million for the quarter and year to date periods related to a divestiture in APAC.

Other income (expense) - net

Reported other income (expense) - net was a benefit of $51 million for the third quarter of 2024 and $111 million for the year-to-date period, including a benefit of $36 million related to a settlement with a supplier in the Americas, recognized during the third quarter, and $43 million in insurance recoveries, primarily within the Other segment, recognized during the first quarter.

Operating profit

On a reported basis, operating profit increased $34 million, or 2%, for the third quarter of 2024 and increased $369 million, or 6%, for the nine months ended September 30, 2024. The increase in the quarter and year-to-date periods of 2024 was primarily due to higher pricing, savings from productivity initiatives and, which more than offset the adverse impacts of cost inflation, cost reduction program and other charges and currency.

On an adjusted basis, which excludes the impacts of merger-related purchase accounting as well as cost reduction programs and other charges, operating profit increased $171 million, or 7% in the third quarter of 2024 and increased $442 million, or 7% for the nine months ended September 30, 2024. Operating profit growth was driven by higher pricing and productivity initiatives, which more than offset the effects of cost inflation and currency during the quarter and year-to-date periods of 2024. A discussion of operating profit by segment is included in the segment discussion that follows.

Interest expense - net

Reported interest expense - net increased $28 million for the third quarter of 2024 and increased $74 million for the nine months ended September 30, 2024. The increase in both periods was driven primarily by higher interest rates on debt.

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

Reported net pension and OPEB cost (benefit), excluding service cost were benefits of $45 million and $144 million for the quarter and nine months ended September 30, 2024, respectively, versus $35 million and $125 million for the respective 2023 periods. The increase in the benefit primarily relates to higher expected return on assets and lower amortization of deferred losses year-over-year.

Effective tax rate

The reported effective tax rate ("ETR") for the quarter and nine months ended September 30, 2024 was 24.1% and 23.3% versus 23.8% and 22.6% for the respective 2023 periods. The increase in the quarter rate is primarily related to tax effects of cost reduction program and other charges. The increase in the year to date rate is primarily related to a prior year benefit from a net decrease in the company’s uncertain tax positions and a tax refund, partially offset by tax benefits from a repatriation in the current year. Effective January 1, 2024, Linde is subject to the 15% global minimum tax rate provisions of the OECD’s framework for Pillar Two, the implementation of which did not have a significant impact on the effective tax rate for the quarter or year-to-date periods.

On an adjusted basis, the ETR for the quarter and nine months ended September 30, 2024 was 23.6% and 23.3% versus 23.7% and 23.8% for the respective 2023 periods. The decrease in the year-to-date rate is primarily due to tax benefits from a repatriation.

Income from equity investments

Reported income from equity investments for the third quarter and nine months ended September 30, 2024 was $38 million and $131 million versus $41 million and $128 million for the respective 2023 periods.

On an adjusted basis, income from equity investments for the third quarter and nine months ended September 30, 2024 was $56 million and $185 million versus $59 million and $182 million for the respective 2023 periods.

Noncontrolling interests

At September 30, 2024, noncontrolling interests consisted primarily of non-controlling shareholders' investments in APAC (primarily China). Reported noncontrolling interests income was $53 million and $128 million for the third quarter and nine months ended September 30, 2024 and included the impact of a divestiture in the APAC segment. Noncontrolling interest was $36 million and $109 million for the the respective 2023 periods.

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Net Income – Linde plc

Reported net income - Linde plc decreased $15 million, or 1%, for the third quarter of 2024 and increased $184 million, or 4%, for the nine months ended September 30, 2024 versus the respective 2023 periods. The decrease for the third quarter of 2024 was primarily driven by higher cost reduction program and other charges. The increase for nine months was driven by higher operating profit.

On an adjusted basis, which excludes the impacts of purchase accounting and cost reduction program and other charges, net income - Linde plc increased $113 million, or 6%, for the third quarter of 2024 and increased $340 million, or 6%, for the nine months ended September 30, 2024 versus the respective 2023 periods. The increase was driven by higher adjusted operating profit.

Diluted earnings per share

Reported diluted earnings per share increased $0.03, or 1%, for the third quarter of 2024 primarily due to lower diluted shares outstanding partially offset by lower net income. Reported diluted earnings increased $0.59, or 6%, for the nine months ended September 30, 2024 versus the respective 2023 periods. The increase is due to higher net income - Linde plc and lower diluted shares outstanding.

On an adjusted basis, diluted EPS increased $0.31 and $0.93 for the third quarter and nine months ended September 30, 2024, or 9% respectively. The increase is primarily due to higher adjusted net income - Linde plc and lower diluted shares outstanding.

Employees

The number of employees at September 30, 2024 was 65,596, a decrease of 846 employees from September 30, 2023 including the impact of ongoing cost reduction programs and a divestiture in APAC.

Other Financial Data

EBITDA was $3,084 million for the third quarter of 2024 as compared to $3,052 million in the respective 2023 period. EBITDA was $9,363 million for the nine months ended September 30, 2024 as compared to $8,991 million in the respective 2023 period. The increase was driven by higher operating profit versus prior year.

Adjusted EBITDA increased to $3,253 million for the third quarter 2024 from $3,074 million in the respective 2023 period. Adjusted EBITDA was $9,575 million for the nine months ended September 30, 2024 as compared to $9,096 million in the respective 2023 period. The higher EBITDA was primarily due to higher adjusted operating profit versus the respective prior periods.

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

Other Comprehensive Income (Loss)

Other comprehensive income for the third quarter of 2024 was $764 million and loss for the nine months ended September 30, 2024 was $250 million. The income in the quarter and loss for the year-to-date period resulted primarily from currency translation adjustments of $773 million and $245 million, respectively. The translation adjustments reflect the impact of translating local currency foreign subsidiary financial statements to U.S. dollars, and are largely driven by the movement of the U.S. dollar against major currencies including the Euro, British pound and the Chinese yuan. See the "Currency" section of the MD&A for exchange rates used for translation purposes and Note 10 to the condensed consolidated financial statements for a summary of the currency translation adjustment component of accumulated other comprehensive income (loss) by segment.

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Segment Discussion

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


	Quarter Ended September 30,						Nine Months Ended September 30,
(Millions of dollars)	2024		2023		Variance		2024		2023		Variance
SALES
Americas	$	3,618	$	3,629	—	%	$	10,833	$	10,721	1	%
EMEA	2,111		2,105		—	%	6,293		6,442		(2)	%
APAC	1,716		1,639		5	%	4,964		4,920		1	%
Engineering	611		467		31	%	1,694		1,502		13	%
Other	300		315		(5)	%	939		967		(3)	%
Total sales	$	8,356	$	8,155	2	%	$	24,723	$	24,552	1	%

SEGMENT OPERATING PROFIT
Americas	$	1,153	$	1,074	7	%	$	3,400	$	3,169	7	%
EMEA	703		634		11	%	2,094		1,871		12	%
APAC	497		459		8	%	1,418		1,354		5	%
Engineering	108		116		(7)	%	304		372		(18)	%
Other	16		23		(30)	%	24		32		(25)	%
Segment operating profit	$	2,477	$	2,306	7	%	$	7,240	$	6,798	7	%
Reconciliation to reported operating profit:
Cost reduction program and other charges	(145)		(2)				(145)		(42)
Purchase accounting impacts - Linde AG	(246)		(252)				(730)		(760)
Total operating profit	$	2,086	$	2,052			$	6,365	$	5,996

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Americas


	Quarter Ended September 30,								Nine Months Ended September 30,
(Millions of dollars)	2024			2023			Variance		2024			2023			Variance
Sales	$	3,618		$	3,629		—	%	$	10,833		$	10,721		1	%

Operating profit	$	1,153		$	1,074		7	%	$	3,400		$	3,169		7	%
As a percent of sales	31.9		%	29.6		%			31.4		%	29.6		%


	Quarter Ended September 30, 2024 vs. 2023		Nine Months Ended September 30, 2024 vs. 2023
	% Change		% Change
Factors Contributing to Changes - Sales
Volume	1	%	—	%
Price/Mix	2	%	3	%
Cost pass-through	(1)	%	(1)	%
Currency	(3)	%	(1)	%
Acquisitions/divestitures	1	%	—	%
	—	%	1	%

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

Sales

Sales for the Americas segment decreased $11 million in the third quarter and increased $112 million, or 1%, for the nine months ended September 30, 2024 versus the respective 2023 periods. Higher pricing contributed 2% to sales in the quarter and 3% in the year-to-date period. Volumes increased 1% in the third quarter and remained flat year-to-date largely due to project start-ups. Cost pass-through decreased sales 1% in the third quarter and year-to-date period with minimal impact on operating profit. Currency translation decreased sales by 3% in third quarter and 1% in the year-to-date period driven primarily by the weakening of the Brazilian real and Mexican peso against the U.S. Dollar.

Operating profit

Operating profit in the Americas segment increased $79 million, or 7%, in the third quarter and increased $231 million, or 7%, for the nine months ended September 30, 2024 versus the respective 2023 periods, driven primarily by higher pricing, continued productivity initiatives and a settlement gain with a supplier, which more than offset cost inflation.

EMEA


	Quarter Ended September 30,								Nine Months Ended September 30,
(Millions of dollars)	2024			2023			Variance		2024			2023			Variance
Sales	$	2,111		$	2,105		—	%	$	6,293		$	6,442		(2)	%

Operating profit	$	703		$	634		11	%	$	2,094		$	1,871		12	%
As a percent of sales	33.3		%	30.1		%			33.3		%	29.0		%

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	Quarter Ended September 30, 2024 vs. 2023		Nine Months Ended September 30, 2024 vs. 2023
	% Change		% Change
Factors Contributing to Changes - Sales
Volume	(1)	%	(1)	%
Price/Mix	4	%	3	%
Cost pass-through	(3)	%	(4)	%
Currency	—	%	—	%
Acquisitions/divestitures	—	%	—	%
	—	%	(2)	%

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

Sales

EMEA segment sales were flat in the third quarter and decreased $149 million, or 2%, for the nine months ended September 30, 2024 compared to the respective 2023 periods. Higher price attainment increased sales by 4% in the quarter and 3% in the year-to-date period. Currency translation was flat in the third quarter and nine months ended September 30, 2024. Cost pass-through decreased sales by 3% in the quarter and 4% in the year-to-date period with minimal impact on operating profit. Volumes decreased sales by 1% in the quarter and year-to-date periods, primarily driven by the manufacturing and chemicals and energy end markets.

Operating Profit

Operating profit for the EMEA segment increased by $69 million, or 11%, in the third quarter and increased by $223 million, or 12%, for the nine months ended September 30, 2024 compared to the respective 2023 periods. The increase in operating profit in the third quarter and year-to-date period was driven primarily by higher pricing and continued productivity initiatives, partially offset by cost inflation and lower volumes.

APAC


	Quarter Ended September 30,								Nine Months Ended September 30,
(Millions of dollars)	2024			2023			Variance		2024			2023			Variance
Sales	$	1,716		$	1,639		5	%	$	4,964		$	4,920		1	%

Operating profit	$	497		$	459		8	%	$	1,418		$	1,354		5	%
As a percent of sales	29.0		%	28.0		%			28.6		%	27.5		%


	Quarter Ended September 30, 2024 vs. 2023		Nine Months Ended September 30, 2024 vs. 2023
	% Change		% Change
Factors Contributing to Changes - Sales
Volume/Equipment	3	%	2	%
Price/Mix	—	%	—	%
Cost pass-through	1	%	—	%
Currency	1	%	(2)	%
Acquisitions/divestitures	—	%	1	%
	5	%	1	%

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

Sales

Sales for the APAC segment increased $77 million, or 5%, in the third quarter and increased $44 million, or 1%, for the nine months ended September 30, 2024 versus the respective 2023 periods. Volumes increased 3% in the quarter and increased 2%

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for year-to-date period including project start-ups in the electronics end market. Currency translation increased sales by 1%, in the quarter primarily driven by strengthening of the Australian dollar and Chinese yuan against the U.S. dollar and decreased 2% for the year-to-date period driven primarily by the weakening of the Australian dollar, Korean won and Chinese yuan against the U.S. dollar. Cost pass-through increased sales 1% in the third quarter and was flat in the year-to-date period. Pricing was flat in the quarter and year-to-date period.

Operating profit

Operating profit in the APAC segment increased $38 million, or 8%, in the third quarter driven primarily by productivity initiatives, which more than offset cost inflation. Operating profit increased $64 million, or 5%, in the nine months ended September 30, 2024 versus 2023 period, driven primarily by continued productivity initiatives, which more than offset cost inflation.

Engineering


	Quarter Ended September 30,								Nine Months Ended September 30,
(Millions of dollars)	2024			2023			Variance		2024			2023			Variance
Sales	$	611		$	467		31	%	$	1,694		$	1,502		13	%

Operating profit	$	108		$	116		(7)	%	$	304		$	372		(18)	%
As a percent of sales	17.7		%	24.8		%			17.9		%	24.8		%


	Quarter Ended September 30, 2024 vs. 2023		Nine Months Ended September 30, 2024 vs. 2023
	% Change		% Change
Factors Contributing to Changes - Sales
Currency	1	%	—	%
Other	30	%	13	%
	31	%	13	%

Sales

Engineering segment sales increased $144 million, or 31%, in the third quarter and increased 192 million, or 13%, in the nine months ended September 30, 2024 as compared to the respective 2023 periods driven by project timing. Currency translation increased sales by 1% in the quarter, primarily driven by the strengthening of the Euro against the U.S. dollar. Currency translation for the year-to-date period was flat.

Operating profit

Engineering segment operating profit decreased $8 million, or 7%, in the third quarter and decreased $68 million or 18%, in the nine months ended September 30, 2024 compared to the respective 2023 period due to prior year's benefit from higher margin on lawful wind down of projects subject to sanctions in Russia.

Other


	Quarter Ended September 30,								Nine Months Ended September 30,
(Millions of dollars)	2024			2023			Variance		2024			2023			Variance
Sales	$	300		$	315		(5)	%	$	939		$	967		(3)	%

Operating profit (loss)	$	16		$	23		(30)	%	$	24		$	32		(25)	%
As a percent of sales	5.3		%	7.3		%			2.6		%	3.3		%

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	Quarter Ended September 30, 2024 vs. 2023		Nine Months Ended September 30, 2024 vs. 2023
	% Change		% Change
Factors Contributing to Changes - Sales
Volume/price	(6)	%	(3)	%
Cost pass-through	1	%	—	%
Currency	—	%	—	%
Acquisitions/divestitures	—	%	—	%
	(5)	%	(3)	%

Other consists of corporate costs and a few smaller businesses including Linde Advanced Material Technologies (LAMT) and global helium wholesale, which individually do not meet the quantitative thresholds for separate presentation.

Sales

Sales for Other decreased $15 million for the third quarter and decreased $28 million for the nine months ended September 30, 2024 versus the respective 2023 periods. Underlying sales decreased 6% in the quarter and 3% in the year-to-date periods primarily due to lower volumes in global helium and LAMT. The impact of currency translation was flat in the quarter and year-to-date periods.

Operating profit

Operating profit in Other decreased $7 million in the third quarter and decreased $8 million, or 25%, in the nine months ended September 30, 2024 versus the respective 2023 periods. The decrease in the quarter was driven by higher costs due to helium, which was partially offset by an insurance recovery for the LAMT coatings business in the year-to-date period.

Currency

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

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


	Percentage of YTD 2024 Consolidated Sales		Exchange Rate for Income Statement		Exchange Rate for Balance Sheet
			Year-To-Date Average		September 30,	December 31,
Currency			2024	2023	2024	2023
Euro	18	%	0.92	0.92	0.90	0.92
Chinese yuan	8	%	7.20	7.03	7.02	7.10
British pound	5	%	0.78	0.80	0.75	0.79
Australian dollar	4	%	1.51	1.50	1.45	1.47
Brazilian real	4	%	5.23	5.00	5.45	4.86
Mexican peso	3	%	17.67	17.78	19.69	16.97
Canadian dollar	3	%	1.36	1.35	1.35	1.32
Korean won	3	%	1,352	1,301	1,315	1,288
Indian rupee	2	%	83.41	82.06	83.80	83.21
South African rand	1	%	18.46	18.34	17.27	18.36
Swedish krona	1	%	10.50	10.59	10.16	10.07
Thailand bhat	1	%	35.68	34.51	32.17	34.14

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Liquidity, Capital Resources and Other Financial Data

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


(Millions of dollars)		Nine Months Ended September 30,
		2024				2023
NET CASH PROVIDED BY (USED FOR):
OPERATING ACTIVITIES
Net income (including noncontrolling interests)		$	4,968			$	4,765
Non-cash charges (credits):
Add: Depreciation and amortization		2,867				2,867
Add: Deferred income taxes		(308)				(172)
Add: Share-based compensation		120				102
Add: Cost reduction program and other charges, net of payments		52				(91)
Net income adjusted for non-cash charges		7,699				7,471
Less: Working capital		(916)				(535)
42	$	206		$	144

*Indicates a management contract or compensatory plan or arrangement.

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SIGNATURE

Linde plc and Subsidiaries

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


						Linde plc

						(Registrant)

Date: October 31, 2024						By: /s/ Kelcey E. Hoyt

						Kelcey E. Hoyt
						Chief Accounting Officer



Note 1. Summary of Significant Accounting Policies			11

Note 2. Supplemental Information			11

Note 3. Debt			12

Note 4. Financial Instruments			12

Note 5. Fair Value Disclosures			14

Note 6. Earnings Per Share – Linde plc Shareholders			16

Note 7. Retirement Programs			16

Note 8. Commitments and Contingencies			17

Note 9. Segments			18

Note 10. Equity			19

Note 11. Revenue Recognition			20

LINDE PLC - Quarter Report: 2024 September (Form 10-Q)

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