Board Directors world-class standards talent management. Executive compensation assessed annually financial non. Human Capital Committee compensation policies. reviews management development succession programs diversity policies. Human Resources reports Chief Executive Officer. leader Diversity, Equity Inclusion reports Human Resources.


Linde diversity inclusion performance management. equity inclusion competitive advantage talent pipeline recruiting. equal employment recruits compensates performance ability.


Employees receive competitive salary variable compensation performance job level. Linde collective bargaining agreements unions. Additional benefits occupational pensions contributions health insurance. Senior managers participate growth Long Term Incentive Plan. leadership awards employees. special compensation schemes. invests professional development.


Linde 66,323 28 women 72. 29 percent women 71 percent.


Environment Information incorporated Discussion Analysis Environmental Item 7 10-K.


company makes periodic reports free website. linde. com after filed Securities Exchange Commission. Investors access information press releases presentations. website not incorporated. public read copy materials filed SEC website. sec. reports proxy issuers.


Executive Officers elected Board Directors serve pleasure. Board annually meeting shareholders.


Sanjiv Lamba Chief Linde March 1 2022. Chief Operating Officer January 2021 Vice President APAC October 2018. Member Executive Board Linde 2011, Asia Pacific Global Helium Rare Asia Joint Venture Management. 1989 BOC India Director Finance Managing Director 2001. Germany. Singapore India.


Bichara Vice President Legal Officer. Vice President General Counsel. Director Legal Mexico Vice President Asia. Europe Mexico General Counsel Assistant Secretary. Cemex global law firms.


Durbin Vice President North America 2023. EMEA 2021 2023 Global Functions 2020. Praxair. 1993 operations engineering sales. President Europe 2019 President Praxair Canada. 2013.


. Hoyt Chief Accounting Linde 2018. Vice President Controller Praxair. 2016. Director Investor Relations 2010. 2002 Corporate Accounting SEC Reporting Controller North American Industrial Gas. KPMG.


Nowicki Vice President CEO Linde Engineering 2020. Senior Vice President. 1991 Internal Auditor Finance Controlling. CFO Linde Gas Head Finance 2006. Managing Director 2011.


Panikar Vice President APAC Linde January 2021. President Africa 2018. 2014 2018. President Praxair Asia. 1991 Applications Engineer. Manager Business Director Managing Director India President Praxair Distribution.


Pfann Senior Vice President EMEA 2023. 1995 Linde. Development Sales Manager Romania. General Manager Italy 2004. 2007,


Eastern Europe countries. 2017 UK Ireland Africa Business President East 2019.


. Strauss Executive Vice President 2022. 2021 Senior Vice President. Linde 1990 Engineer electronics. 2000 2013, General Manager Linde Advanced Material Technologies. Vice President Safety Health Environment Chief Resources Praxair. 2016


. White Vice President Linde 2018. Senior Vice President Praxair. 2014. President Praxair Canada 2011 2013. 2004 finance director North American Industrial Gases. 2008, Vice President Controller Praxair. Vice Treasurer 2010. Fisher Scientific GenTek.


size reach operations factors outside control affect future operations financial performance. believes risks impact


Linde impact financial results cash flows.


Linde serves industries 80 countries leads to financial stability. decline in economic business conditions affect demand obligations uncollected receivables contract terminations delays. global political economic uncertainty investment business.


Linde’s customers cyclical chemicals metals energy. Downturns impact Linde. conditions manufacturing capacity impairment losses property equipment intangible goodwill relationships intellectual property.


energy raw materials supply lost sales profitability.


Energy largest cost industrial gases. Linde’s energy requirements electricity natural gas diesel fuel. variability contracts demand efficiency. Large contracts escalation pass-through clauses energy costs. cost variability impact financial. supply energy. regional energy conditions unpredictable future risk.


carbon dioxide monoxide helium hydrogen gases raw materials purchased outside. Linde sources calcium carbide byproducts. contracts raw materials availability prices subject market. disruption supply impact commitments.


Linde’s international operations risks impact business financial results.


Linde international operations risks devaluations transportation delays political economic instability restrictions trade conflicts duties tariffs import export controls policies labor unrest nationalization expropriation assets. non. tax policies compliance regulations. operations Linde demand prices revenue business.


rate risks Linde results.


Linde's revenue. changes exchange rates revenue costs earnings affect book value assets liabilities equity. utilizes foreign


contracts hedge currency exposure market conditions. fluctuations currency affect Linde’s financial condition cash flows.


Macroeconomic factors impact cost financial results cash flows.


Volatility disruption in U. S. European global credit equity markets difficult Linde financing increase cost. Linde’s borrowing costs affected by debt ratings based on performance. decrease debt ratings increase cost.


impairment goodwill financial results.


December 31, 2023 net value goodwill indefinite-lived assets was $27 billion $2 billion business combination acquisition method Linde AG. company assesses assets. negative industry trends disruptions divestitures market capitalization declines impairments goodwill assets. charges Linde's results.


events disrupt operations Linde customers suppliers results.


catastrophic events extreme weather health epidemics pandemics war terrorism disrupt produce distribute products expose liability claims. events impact customers suppliers outages energy raw materials. Linde evaluates risks consults vendors insurance providers experts resilient design technology conducts reviews. situations outside control financial results.


inability attract impact.


Linde fails attract hire personnel develop market sell products manage business. skilled workforce. competitive advantage expertise key personnel marketing technology manufacturing distribution. inability attract loss employees financial results.


Linde technological advances new accepted customers buy products results operations affected.


Linde’s research development methods production distribution industrial gases design construction plants new markets applications for. results in applications advanced process technologies. develops technologies technologies global geographies. technologies help competitive advantage grow business. research


activities competitors Linde create technologies future results affected.


pension impact Linde’s flows.


Pension benefits financial obligations settled employees eligibility. uncertainties future payments returns estimates pension expense liabilities. actuaries calculations. assumptions pension expense financial statements. investment returns discount rates legislative regulatory changes impact future pension contributions.


risks impact Linde’s.


Linde’s operating results on production facilities customer contract requirements needs. Insufficient capacity profit liabilities. new construction projects on time budget performance requirements. Failure loss revenue litigation reputation.


Linde’s production facilities systems storage transportation pipelines operational risks training oversight control. failures fire release explosions accidents life production property damage financial results.


Linde failures breaches security.


Linde stores sensitive information. susceptible outages fire flood power telecommunications viruses break-ins breaches security.


Linde risks security technologies internal controls network data center resiliency recovery processes. information systems sophisticated cyber attacks. failures breaches loss disclosure confidential information data. business interruption malfunction legal actions operations reputation financial results. significant Linde operations financial results.


inability integrate acquisitions collaborate impact financial.


Linde evaluated expects potential acquisitions joint ventures. transactions material financial condition results. integrating acquired company create operating difficulties expenditures. Linde successful acquisition strategy risks include need controls procedures policies management time from business to acquisition integration challenges


challenges integrating employees integrate accounting management human resources systems assimilation operations products synergies cost reductions retain employees business relationships.


acquisitions joint ventures risks integration cultures languages currency economic political regulatory countries.


anticipated acquisitions materialize. debt liabilities expenses impairments goodwill impact Linde’s financial results.


Linde subject international laws government regulations failure business financial position results operations.


Linde subject regulations protection climate change energy efficiency. non-U. tax currency controls laws European Union economic sanctions protection anti-bribery. Foreign Corrupt Practices Act regulations.


Changes regulatory impact profitability compliance risks complex costly compliance sanctions non-compliance rise. Noncompliance penalties sanctions cancellation marketing rights restrictions exclusion public tender financial results reputation.


changes restrict Linde’s. environmental protection climate change impact customer competitor behavior structural changes markets. Linde risks strategic alliances investment technologies uncertainty new regulations difficult predict changes Linde’s business. changes Linde results.


business globally requires Linde anti-corruption trade economic sanctions laws policies employees intermediaries restrictions. restrictions include prohibitions sale supply products embargoed countries governments. Compliance requires screening business partners. policies protect intentional negligent acts. Linde fails laws subject criminal penalties remedial measures affect reputation business results.


litigation investigations impact business operations.


Linde’s subsidiaries party to lawsuits governmental investigations. Adverse outcomes damages relief affect Linde’s business. subject further claims litigation impossible predict. uncertainties. Legal judgments settlements expenses not covered insurance negative publicity reputational damage. unfavorable outcome impact operations.


defects inadequate impact.


Risks products services liability claims loss customers damage reputation. defects inadequate customer care.


Linde exposed to legal risks product liability including United States class actions significant. outcome pending proceedings judgments settlements losses costs expenses.


manufacturing sale products construction plants Linde risks storage transport materials waste. Industrial gases hazardous medical gases healthcare services comply specifications.


Linde’s products services defective lead to injuries business interruptions environmental damages liability losses penalties environmental exclusion from sectors loss reputation. Linde’s business results.


. enforceable Linde.


Linde organized under laws Ireland assets outside United States. directors officers subsidiaries reside outside. difficult investors effect process Linde enforce judgments U. S. courts civil. federal securities laws. enforce actions outside rights U. S. federal securities laws.


judgment payment money United States enforceable Ireland. no treaty Ireland States reciprocal enforcement foreign judgments. requirements foreign judgment enforceable definite sum final conclusive provided competent jurisdiction.


Irish court refuse fraud violated Irish policy natural justice irreconcilable with earlier judgment.


doubt Irish court impose civil liability Linde original action U. S. federal securities laws Linde expert.


tax laws impact financial results.


Linde subsidiaries subject tax rules U. S. Germany Ireland U. other countries. rules change. current economic conditions tax rates policies. EU changes Linde's income tax. Linde U. tax resident potential changes tax rules. affect Linde.


Development framework 15% global minimum tax rate. U. K. EU states implemented Pillar Two January 1 2024. OECD guidance legislation. Linde legislation tax rate.


change Linde’s tax residency profitability trigger taxes dividends exit charges. If Linde U. another. exit charges additional tax charges. Linde more duplicative taxation. Linde incorporated in Ireland not domestic corporation. tax IRS challenge changes. tax law alter. If law adverse tax consequences for Linde company shareholders.


Changes tax laws higher tax expense payments. changes tax legislation uncertainty restrict Linde's rights. Linde operates in complex tax regulations. subsidiaries subject to audits review actions. ultimate tax outcome differ financial statements affect financial results.


Cybersecurity top enterprise risk information technology. Linde security technologies controls network data center resiliency disaster recovery.


Linde security enhancements Zero Trust principle. maintains Standard Operating Procedure Security Incident Response escalation reporting remediation. cybersecurity teams surveillance implement controls operations. engages third parties analysis advice risks. conducts mandatory trainings cybersecurity awareness programs.


software providers cybersecurity risk. Linde performs risk assessment control environment providers.


Despite steps systems subject sophisticated cyber attacks. failures breaches loss disclosure confidential Linde employees customers suppliers. business interruption legal actions Linde’s operations reputation financial results. attempts significant Linde operations financial results.


cybersecurity risk management Audit Committee. annual quarterly updates cybersecurity systems strategies risk management cybersecurity breach. Board reviews cybersecurity. Linde Global Chief Information Officer Chief Financial Officer. global IT security team.


Linde offices Woking Danbury Connecticut. owns Tonawanda York Pullach Germany.


Linde’s gas products uneconomical transport hundred miles production facility. Linde operates production facilities.


production facilities Linde. leased December 31, 2023. facilities manufacturing needs.


Americas U. S. Canada Mexico Brazil 350 cryogenic hydrogen carbon. five pipeline complexes Indiana Houston Texas Detroit Louisiana. noncryogenic packaged gas smaller.


EMEA Germany. Eastern France Sweden South Africa 275 cryogenic carbon. noncryogenic pipelines hydrogen packaged gas smaller.


APAC China Australia Korea 230 cryogenic carbon dioxide. noncryogenic pipelines hydrogen packaged gas.


Engineering designs constructs plants separation hydrogen synthesis gas. components Tacherting Hesingue France New York Oklahoma Dalian.


incorporated Consolidated Financial Statements. Commitments Item 8 10-K.


EQUITY STOCKHOLDER EQUITY SECURITIES


Linde shares Nasdaq. December 31, 2023 6,596 shareholders. January November shares traded New York Stock Exchange November 7 delisted Nasdaq.


Purchases Equity Securities information purchases company Rule 10b-18(a)(3) Securities Exchange Act 1934 ordinary shares months December 2023 Shares Purchased Price Paid Share Programs Dollar Value Shares October 2023#373.,051 November 2023.,788 December 2023#405.,366 Fourth Quarter 2023.,366


February 28, 2022 approved repurchase $10. billion shares trading market conditions. maximum repurchase 15% shares March 1, 2022 expires July 31, 2024.


October 23, 2023 approved repurchase $15. billion shares open market 10b5-1 trading subject market business conditions. 2023 program October 23, 2023 maximum authority reached.


repurchased $8. billion 2022. $1. 4 billion $15 billion repurchases 2022 2023.


Performance Table compares returns Linde shares Standard Poor’s 500 Index S5 Materials Index 28 companies Linde. initial investment $100 December 31, 2018 dividends reinvested. LIN SPX S5MATR


DISCUSSION FINANCIAL RESULTS


financial condition consolidated statements 8 Form 10-K. Business Overview Summary Results Discussion Liquidity Capital Data Off-Balance Sheet Accounting Accounting Standards Value Non-GAAP Financial Measures Supplemental Guarantee


company products atmospheric nitrogen process helium hydrogen electronic specialty acetylene. designs engineers builds equipment offers gas production processing services olefin natural hydrogen synthesis.


gas operations 2023 90% sales three segments EMEA APAC remaining 10% Engineering Note 18 consolidated financial statements.


Linde industries healthcare chemicals manufacturing metals food beverage electronics. stability.


Linde's gas generates revenues earnings strongest positions distribution highest service lowest cost. North South America Middle East Africa Brazil Mexico Europe Korea Canada


manufactures distributes industrial gas production plants pipeline complexes distribution centers. complexes United States China. reliable supply. long-term contracts cash energy feedstock costs. growth geographies healthcare chemicals energy manufacturing metals mining food beverage electronics.


$32,854 million 2% below 2022 $33,364 million. Cost pass-through decreased 3%. Engineering decreased 2%. Volumes 1%. Currency translation 1% APAC. Divestitures 1% GIST nexAir. 6% price attainment. profit $8,024 million 49% above 2022. Adjusted $9,070 million 15% above 2022. driven Russia-Ukraine conflict higher pricing lower depreciation. inflation volumes. pricing productivity initiatives. income Linde $6,199 million diluted earnings $12. Adjusted $6,989 million. 13% 16% above. flow $9,305 million $441 million above 2022. higher income capital. Capital expenditures $3,787 million dividends $2,482 million purchases $3,925 million debt borrowings $1,060 million.


reconciliation-GAAP Financial Measures MD&A.


Linde updates results trends guidance earnings releases teleconferences. materials. not incorporated.


discussion results liquidity capital resources December 2023 2022. 2022 2021 Part II Item 7 Financial Condition Form 10-K December 2022.


table 2023 2022. reported amounts GAAP Statements Income. adjusted amounts not substitute GAAP. share Ended December 31, Reported Amounts Sales,854,364 Cost depreciation amortization,492,450 percent sales. general administrative,295,107. Depreciation amortization,816,204 Other charges Operating Profit,369 Operating margin. Interest expense pension OPEB cost excluding service cost tax rate. Income equity investments Noncontrolling interests Net Income Linde plc,199,147 Diluted earnings per share.. shares,038 employees,010 Adjusted Amounts Operating profit,070 margin. 6. Net Income Linde plc,195 earnings per share. Financial Data EBITDA,007,745 percent sales. Adjusted EBITDA,133,873 percent sales. 6


Note 3 statements.


amounts Data non-GAAP measures. reconciliation-GAAP Financial Measures MD&A.


table consolidated sales vs. 2022 Factors Sales Volume Price/Mix Cost pass-through Currency Acquisitions/divestitures Engineering


Linde sales decreased $510 million 2% 2023 2022. pricing 6%. Cost pass-through decreased sales 3% profit. decreased 1% electronics metals mining. divestitures 1%. Currency translation decreased 1% APAC Chinese. EMEA Euro pound.


sales decreased $1,958 million 10% lower cost volumes acquisitions productivity gains inflation. 53. 2% 58. 3% 2023 2022. higher pricing lower cost-through.


increased $188 million $3,107 2022 $3,295 million 2023. 0%. 3% 2022. Currency $3 million. costs nexAir.


depreciation expense decreased $388 million 9% 2022. merger.


depreciation amortization increased $102 million 4% 2022. Currency $29 million 2023. increased acquisitions.


$40 million $1,029 million 2023 2022. 2023 severance Engineering reorganization. 2022 deconsolidation Russian subsidiaries sanctions June 30.


charges excluded periods.


profit $2,655 million 2023 49%. $1,166 million.


increase Russia-Ukraine conflict 2022 pricing savings productivity lower depreciation amortization merger assets. offset inflation currency $40 million.


adjusted operating profit increased $1,166 million 15%. driven pricing productivity initiatives offset cost inflation lower volumes.


interest 2023 $137 million 217% 2022. $118 million 120%. higher rates $28 million devaluation hyperinflationary.


pension OPEB $164 million $237 million 2023 2022. decrease higher interest discount rate Note 16.


tax rate 2023. 7%. 9% 2022. uncertain tax positions unfavorable tax expense Russia deconsolidation 2022 Note 3.


ETR 2023 23. 2%. tax share compensation.


equity 2023 $167 million $172 million 2022. $239 million $247.


-over decrease income equity investments driven APAC.


December 31, 2023 noncontrolling interests APAC.


noncontrolling $8 million $134 $142.


interests $2 million 2023.


income Linde plc increased $2,052 million 49%. increased $794 million 13% 2023 2022. higher profit.


diluted earnings share increased $4. 36 2023. $14. 16%. higher income Linde lower diluted shares.


December 2023 66,323 2% 1,313 2022 nexAir.


EBITDA $12,007 million $9,745 million. Adjusted $12,133 million $10,873 million. Linde.


-GAAP Financial Measures definitions reconciliations.


2023 $35 million retirement plans $380 million derivative losses $55 million offset currency translation adjustments $400 million. adjustments translating statements. dollars driven. dollar Euro British pound Chinese. MD&A exchange rates translation Note 7 financial statements currency translation adjustment income.


company’s related parties unconsolidated equity affiliates. material transactions independent parties.


operations production industrial gases reduce emissions. costs environmental protection stringent laws. risks climate change extreme weather.


Linde operates in jurisdictions laws greenhouse gas emissions faces uncertain regulatory environment. U. S. Environmental Protection Agency rules reporting GHG emissions. GHG emissions light-duty vehicles large manufacturing facilities. countries implemented carbon taxation company customers China Singapore European Union. raise cost energy significant for Linde.-term customer contracts provide recover increased electricity natural gas costs climate change regulation.


Linde anticipates growth hydrogen sales decarbonization projects. hydrogen carbon emissions subject cap-trade regulations California European Union. costs product supply contracts. legislation GHG emissions growth capital compliance costs demand.


risks GHG emission regulation climate change Linde monitors evaluates risks takes actions. resources training contingency plans advice vendors insurance providers experts provisions agreements reviews. Linde risk commercial contracts. plant design operations risk management teams


manage losses climate change anticipate effects risks climate change.


Linde energy use GHG emissions research efficiency low-carbon energy hydrogen. tracks GHG emission reports Board Directors. Sustainability Committee programs policies strategies climate change greenhouse gas reduction decarbonization.


external factors Linde future business opportunities. legislation Inflation Reduction Act. investments clean hydrogen decarbonization. regulation GHG uncertain costs resources renewable energy technologies air climate change. Linde applications emissions energy consumption product throughput. water quality China market. wastewater treatment. drought California Australia markets carbon desalination. Renewable fuel standards European U. market second-generation biofuels.


costs 2023 not significant. Linde anticipates future expenditures similar 2023 changes laws regulations. environmental expenditures financial position results cash flows.


Note 17 legal proceedings.


. plans $80 million $110 $35 million 2023 2022 2021.


obligation. deficit $137 million $238 million December 2023 2022. non. deficit $207 million surplus $208 million December 2023 2022. return assets. Non. increase assets offset higher PBO discount rates.


Global pension contributions $46 million 2023 $51 million 2022 $42 million 2021. Linde contributes pension plans. Discretionary contributions long projections economic environment overfunding costs cash. contributions 2024 $35 million to $45 million.


Linde assumes returns 2024 7. 83% non. plans long-term returns.


2024 pension expense $115 million. benefit return assets Linde plans expense accruals amortization deferred losses.


Critical Accounting Estimates Note 16 financial statements retirement benefits plans assumptions benefit funded status.


Linde purchases insurance risks business interruption-party liability compensation. retains $10 million vehicle liability $5 million workers' compensation liability. retains €5 €7. 5 million damage fire flood €5 €7. 5 million deductible business interruption. purchases catastrophic. captive non risk transfer alternatives.


December 31, 2023 2022 company recorded $75 million $71 million liability claims. liability statistical analysis historical experience actuarial assumptions professional judgment. estimates loss severity variability. claims differ estimates financial results.


Linde recognizes insurance proceeds incurred losses. recoveries business interruption property damages value recognized payments.


Linde’s operations industrial gases engineering. industrial gases geographic three segments Americas EMEA APAC fourth segment Engineering business designs manufactures equipment air separation industrial gas applications worldwide segments. corporate costs smaller businesses thresholds.


industrial gases line manufacturing distribution atmospheric process helium hydrogen electronic specialty acetylene. co-products manufacturing process. Linde manufactures distributes manages relationships. distributed end-markets on-site merchant bulk packaged. methods integrated few products economically transported outside region. distribution economics specific geographies consistent management performance.


profit/loss operating profit. excluding Linde AG merger royalties business trends. Chief Operating Decision Maker performance allocates resources.


table presents sales operating profit 2023 2022. Americas,304,874 EMEA,443 APAC Engineering,160,762 Other Total sales,854,364 Operating Americas,244,732 EMEA,486 APAC Engineering Other Segment operating profit,070####7,904 Reconciliation operating profit charges Purchase accounting Linde AG(1,506) Total operating profit,369


amounts millions Year Ended December. Sales,304,874 Operating profit,244,732 percent sales. 2022 Factors Sales Volume Price Cost pass-through Currency Acquisitions/Divestitures


Americas 20 countries Canada Mexico Brazil.


Americas increased $430 million 3% 2023 2022. Higher pricing 6%. 3% nexAir.-through 6% minimal profit. Volumes currency flat.


Americas $512 million 2023 pricing acquisitions productivity initiatives inflation.


amounts millions Year Ended December. Sales,443 Operating profit,486 percent sales. 2022 Change Factors Sales Volume Price/Mix Cost pass-through Currency Acquisitions/Divestitures


EMEA Linde 45 European Middle Eastern African countries. Africa.


EMEA sales $99 million 2023 2022. price. decreased 4% chemicals energy. pass-through decreased 3%. Currency translation 1% Euro pound. divestitures 2% deconsolidation Russian subsidiaries.


EMEA $473 million 23% 2023. pricing productivity inflation volumes divestitures.


amounts millions Year Ended December 31,. Sales Operating profit percent sales. 2022 Change Factors Sales Volume Price/Mix Cost pass-through Currency Acquisitions/Divestitures


APAC Linde 20 South Pacific South Korea.


APAC increased $79 million 2023. Volume 2% start-ups electronics chemicals. price 4%. pass-through decreased 1%. 4% Indian rupee Chinese Yuan.


APAC increased $136 million 2023 2022. pricing productivity initiatives inflation.


amounts millions Year Ended December 31,. 2022 Sales,160,762 Operating profit percent sales. 2022 Change Factors Sales Currency Other


$602 million 22% 2023. timing.


Projects Russia terminated $238 $894 million Engineering sales 2023 2022.


Engineering profit decreased $64 million 12% 2023 2022. offset margin.


amounts millions Year Ended December 31,. 2022 Sales Operating profit percent sales. 2022 Change Factors Sales Volume/Price Currency Acquisitions/Divestitures


corporate costs businesses Linde Materials helium wholesale thresholds.


Sales decreased $516 million 2023 2022. Divestitures decreased 31% GIST 2022. increased 2%.


profit $109 million 165% 2023 2022 pricing helium lower costs divestitures.


Linde’s non-U. S. operations translated U. S dollar. foreign operations Linde uses local currency. variability unpredictability currencies. dollar currency movements impact results.


understand reported results summary currencies Linde’s consolidated results exchange rates financial statements local currency per U. S. dollar): ##Percent Sheets ##Consolidated######Average Year Ended December Currency#Sales Euro. 93 Chinese. British pound. 83 Australian dollar. Brazilian real. 28 Korean won Canadian dollar. Mexican peso. 71. 50 Indian rupee. 73 Republic of South African rand. Swedish krona. 43 Thailand bhat.


Ended December 31, Net Cash Operating Activities Income operations interests,341,281 Non-cash charges charges Depreciation amortization,204 Deferred income taxes Non-cash charges Income operations non,139,062 Pension contributions Working capital Other Net cash activities,305,864 Investing Activities Capital expenditures,787,173) Acquisitions Divestitures sales cash(4,670)(3,088) Financing Activities Debt increases Issuances ordinary shares Cash dividends Linde plc shareholders Noncontrolling interest transactions exchange rate changes cash Cash equivalentsperiod$,436


Note 3 statements.


million.,305 million debt borrowings $1,060 million. $3,787 million purchases $3,925 million dividends $2,482 million.


Cash $9,305 million $441 million 2022. net income non-cash working capital liabilities cash tax. charges $40 million $1,029 million 2023 2022. deconsolidation Russian subsidiaries Ukraine. outflows $158 million $127 million 2023.


2023 Linde $418 million liabilities suspended Russia.


$4,670 million 2023 $3,088 million 2022 expenditures.


expenditures 2023 $3,787 million increase $614 million 2022. new plant equipment. 63% Americas 21% APAC EMEA.


2023 Linde gas backlog $4. 9 billion. plants.


2023 $953 million increase $843 million 2022 nexAir Americas Note 2 statements. 2022 $110 million Americas EMEA.


Divestitures sales 2023 $70 million $195 million 2022. GIST $184 million cash $75 million $109 million Note 2.


financing funding public notes debentures commercial paper bank credit. international operations funded local borrowing intercompany funding cost currency. interest-rate financial derivatives Note 12 financial statements Item. Risk.


$5,400 million $3,089 million 2022. $1,060 million $4,475 inflows debt. repaid $500 million. 70%. €650 million. £300 million. 875%. June issued €500 million. 625% 2025 €750 million. €650 million. 625% 2034.


Linde €700 million. €850 million. €700 million. 40% 2036.


purchases $3,925 million 2023 $5,132 million 2022. October repurchase $15 billion Linde shares. Part II. Registrant's Equity Purchases.


dividends $2,482 million 2023 $2,344 million 2022 $5. 10. 68 shares. Noncontrolling $53 million 2023 $88 million 2022.


debt $14,709 million higher $12,478. $18,907 million securities $466 million borrowings $4,664 million cash. borrowing. 6%.


believes flexibility cash reserves liquidity. December 31, 2023 Linde credit ratings Standard Poor’s Moody’s A-1 P-1 short A2 long. maintains $5 billion $1. 5 billion unsecured credit agreements no covenants. No borrowings. limitations strong ratings Moody’s Standard.


Note 17 December 31, 2023 Linde undrawn letters credit guarantees surety bonds financial condition results liquidity.


policies critical Linde’s financial statements notes accounting principles. GAAP"). application judgment. Linde’s financial position results cash flows differ. policies determined management reviewed by Linde’s Audit Committee.


company designs manufactures equipment air separation gas production processing plants customers. Revenues sale equipment contracts recognized over time Linde right payment performance asset. contracts recognized revenue recognized cost incurred input method. Costs incurred measure progress performance obligations. expected revenue financial. loss recognized expense. Contract modifications accounted recognized cumulative adjustment. performance progress earnings impacted changes.


cost incurred input method progress completion deliveries services obligations. estimation uncertainty total costs completion material labor overhead state completion contracts. uncertainties technical complexity construction cycle potential cost inflation scope considerations affect. Changes financial statements.


Pension benefits financial obligations settled employees eligibility. uncertainties future payments estimates pension expense liabilities. independent actuaries calculations.


assumptions pension expense liability financial statements. three significant variables return discount rate compensation increase. assumptions inflation employee turnover retirement age mortality. Linde management believes assumptions reasonable experience expectations accepted practices


locations. results differ assumptions economic factors. sensitivities key assumptions exclude special items.


weighted-average rates return pension plan assets 7.%. 5 64% non. December 31, 2023. return. Non. estimated investment strategy allocation capital market performance plan performance. 50% change Linde’s pension expense $44 million.


company used market-related value annual pension expense. recognizes gains losses five. changes fair value reflected pension expense. impacted deferred gains losses. market-related value $9,180 million $952 million higher fair $8,228 million December 31, 2023. deferred $952 million recognized four impact future pension expense. Future gains losses impact pension expense.


Discount rates plan liabilities pension costs determined annually management. company measures interest pension OPEB expense U. non-U. plans spot rate approach. plans cash flow matching model actuaries. corporate bonds graded AA matches. cash flows spot rates. Discount rates Non-U. plans based on market yields fixed income investments liabilities. Note 16 consolidated financial statements Retirement Benefits 2023. 50% reduction discount rates Linde’s pension expense $4 million. 50% increase $3 million. reduction PBO $521 million. 50% increase $477 million.


compensation increase 3. 50%. 2. 58% non. 2023. estimated annual compensation increase determined trends market indices. 50% change Linde’s pension expense $5 million PBO $50 million.


December 31, 2023 company $26,751 million $1,745 million assets. excess. intangibles Linde name.


performs goodwill impairment test October loss. fourth quarter 2023 no impairment. December 31, 2023 enterprise value $213 billion control premium capital $56 billion.


impairment test allows entity factors fair value reporting unit less. company value reporting units carrying value including goodwill. Reporting units determined one level below operating segment level.


Management believes quantitative factors annual goodwill impairment assessment appropriate reasonable. 2023 assessment fair value unit carrying value changes fair value determination impairment charge.


indefinite-lived assets evaluated impairment annual impairment loss no impairments.


Notes 10 statements.


Long-lived assets property plant equipment finite-lived tested for impairment recoverable. asset groups determined lowest level independent cash flows. Linde's asset group single plant assets-site gas customers. distribution assets pipeline complex plants. Russia-Ukraine conflict Linde deconsolidated Russian gas engineering entities June 30, 2022. Note 3 consolidated financial statements.


Linde deferred tax assets $1,292 million $176 liabilities $6,815 million. uncertain tax positions $304 million. Income tax expense $1,814 million. 7% pre-tax income.


Linde estimates income taxes structures jurisdictions. Deferred income tax assets liabilities represent tax benefits differences treatment. Linde evaluates deferred tax assets future taxable income. valuation allowance established deferred tax value. judgments required deferred tax valuation allowances assessing exposures. change reserves valuation allowances adjusted to income. tax returns subject audit taxing challenge tax positions. tax positions jurisdiction provisions uncertain income tax positions interest penalties. Linde records discloses potential tax liabilities estimated liabilities recoverable assets. new information adjustments charged credited against income. adjustments financial position liquidity results.


company accrues liabilities non-income tax contingencies loss probable estimated contingent gains recognized when realized. new information losses adjustments charged against income. losses financial position liquidity possible final outcomes results.


Linde subject claims legal proceedings investigations. environmental tax antitrust personal injury claims Note 17 financial statements. contingencies significant accounting management judgments


liabilities disclosures. Linde contingencies estimated liabilities.


Note 1 consolidated statements accounting standards impact statements.


Linde expect assets liabilities consolidated financial statements. Note 13.


non-GAAP measures supplement understanding financial information financial leverage operating performance. Special items indicative business performance excluded from calculations evaluate future business trends. not comparable not substitute for GAAP measures.


non-GAAP MD&A.


amounts millions share data Ended December 31, Adjusted Operating Profit profit,369 Other charges Purchase accounting impacts Linde AG adjustments profit,070 percentage change sales,854,364 operating margin. Adjusted.Adjusted Depreciation Reported,816,204 Purchase accounting impacts Linde AG,481 Adjusted depreciation amortization,723 Adjusted Other Income Purchase accounting Linde AG Adjusted Other Income net Adjusted Net Pension OPEB Cost Service OPEB Pension settlement charges Adjusted Pension OPEB costs Adjusted Interest Expense Purchase accounting impacts Linde AG Adjusted interest expense


Income Taxes taxes Purchase accounting impacts Linde AG Pension settlement charges Other charges adjustments taxes,130 Tax Rate investments Pension settlement charge Purchase accounting impacts Linde AG Other charges adjustments Adjusted income equity investments,034 tax rate. Adjusted taxes,130 tax rate.2% Income Equity Purchase accounting impacts Linde AG adjustments Noncontrolling(142 Purchase accounting Linde AG Net Income Linde plc income,199,147 Pension settlement charge Other charges Purchase accounting impacts Linde AG,150 adjustments net income Linde plc,195 Adjusted Diluted EPS EPS. Pension settlement charge. Other charges.


Purchase accounting Linde AG. adjustments. EPS. percentage change EBITDA Net Income Linde,199,147 Noncontrolling interests pension OPEB cost Interest expense Income taxes Depreciation amortization,204 EBITDA,745 Other charges Purchase accounting impacts Linde AG adjustments,128 Adjusted EBITDA,133,873 sales,854,364. Adjusted EBITDA.


income tax expense non-GAAP adjustments determined tax rates jurisdictions current deferred amounts.


income taxes Income Taxes Tax.


company believes non-GAAP measures excluding Purchase accounting impacts Linde useful investors business no cash managed impacted purchase accounting impacts vary business management compensation results excluding accounting impacts important investors understand purchase accounting impacts financial statements. adjustments Purchase accounting impacts Adjusted Operating Profit Margin adjustments relate depreciation amortization fixed intangible assets merger Linde AG disposals. Adjusted Interest Expense amortization fair value debt merger. Adjusted Income Taxes Tax Rate current deferred income tax impact adjustments. income tax expense non-GAAP pre-tax adjustments determined tax rates. Adjusted Income from Equity Investments amortization increased fair value equity investments depreciable assets.Adjusted Noncontrolling Interests Operations Represents ownership adjustments.


Net debt liquidity measure. Purchase accounting impacts excluded non-cash liquidity. 31, 2023 2022 Debt,373 cash Net debt,709,478 accounting impacts Linde AG Adjusted debt,702,456


May 2023 filed S-3 Statement.


Linde plc debt securities preferred depositary ordinary shares. guaranteed Linde Inc Linde GmbH. guarantees securities Linde Inc. Linde Finance.


Linde Inc. wholly subsidiary Linde plc. offer debt securities Statement. guaranteed by Linde plc guaranteed Linde GmbH. provide guarantees securities upstream guarantees Linde.


Linde Finance. subsidiary Linde plc. debt securities. Linde GmbH Linde Inc. guarantee obligations.


Linde GmbH owned subsidiary Linde plc. provide guarantees debt securities upstream Linde Inc. Linde Finance.


September 2019 Linde plc Linde Inc. Finance notes Linde GmbH Inc.


Linde filed prospectus Luxembourg Stock Exchange €10. billion debt program securities. Inc. GmbH guarantees securities.


information guarantees debt securities Registration Statement ranking limitations enforceability circumstances see Debt Securities Guarantees” Registration Statement incorporated reference.


tables Linde plc Inc. GmbH Finance transactions balances excluding investments non subsidiaries.


Income Months 2023 2022 Sales,850 profit,337 Net income Transactions non-guarantor subsidiaries,241 Balance Sheet Current assets,478 Long-term,833,949 liabilities,882,767 Long-term liabilities,546,210 non subsidiaries,260-term non subsidiaries liabilities non-guarantor subsidiaries,334 non-guarantor subsidiaries,458,268


Linde exposed market risks interest. risk management negative impact interest earnings cash flows equity.


Linde uses interest-rate swaps treasury rate locks currency forward contracts commodity contracts. commonly traded non-leveraged. credit loss. Note 1 12 accounting policies.


discussion market value earnings cash flows Linde’s instruments interest exchange rates December 31, 2023. range Linde’s one-year. Market values future cash flows.


December 31, 2023 Linde $19,373 million ($17,914 million 2022. fixed-rate earnings cash flows. floating-rate earnings flows. 2023 Linde $14,345 million floating-rate $5,028 million 74% 26%,. December 2022 fixed-rate $13,000 million floating-rate $4,914 million 73% 27%,.


analysis assumes variables one increase interest rates value fixed-rate debt portfolio $742 million ($666 million 2022. increase $65 million derivative assets.


December 31, 2023-tax earnings interest variable-rate debt $50 million$25 million 2022.


exchange-rate exposures investments Latin America Brazil Europe Scandinavia. Canada Asia China. currency contracts. December 31, 2023 $5,651 million ($3,870 million 2022 foreign exchange contracts. intercompany loans non currencies. Note 12 financial statements.


variables 10% increase foreign-currency rates value contracts December 2023 $58 million December 2022 $83 million offset loss-currency fluctuation exposure hedged.


variables constant 10% increase foreign-currency exchange rates debt debt 2023 $970 million December 2022 $803 million offset loss exposure hedged.


Statement Financial Statements Report Control Financial Reporting Report Independent Public Accounting Firm ID 238 Audited Consolidated Financial Statements Income Years December 2023 2022 2021 Comprehensive Income Balance Sheets December 2023 2022 Cash Flows Equity


Linde’s financial statements prepared management for fairness integrity objectivity. statements accounting principles include estimates judgments. historical financial information consistent with statements.


Linde maintains accounting systems monitored auditors financial protection assets. cost exceed benefits. effectiveness depends selection managers delegation authority business ethics conflict-of-interest standards policies leadership top management. Section 404 Sarbanes-Oxley Act 2002 Linde assessed financial reporting issued report.


Audit Committee Board Directors non-employee directors accounting system annual financial statements. meets management internal auditors independent accounting firm accounting auditing financial reporting activities control. accounting firm auditors access Committee.


Linde’s management responsible internal control financial reporting Exchange Act Rule 13a-15(f). internal control Internal Control – Integrated Framework (2013) Committee Sponsoring Organizations Treadway Commission. concluded control effective as December 31, 2023.


PricewaterhouseCoopers audited financial reporting December 31, 2023. SANJIV LAMBA KELCEY. HOYT. Accounting MATTHEW. WHITE. Chief Financial Officer


Statements Control Reporting


audited balance sheets Linde plc subsidiaries December 31, 2023 2022 statements income equity cash flows three years 2023 notes financial. audited internal control financial reporting December 2023 Internal Control Integrated Framework (2013).


consolidated financial statements present financial position December 31, 2023 2022 results operations cash flows three accounting principles. Company maintained internal control financial reporting 2023 Internal Control - Integrated Framework (2013) COSO.


Company management responsible consolidated financial statements internal control assessment Report Internal Control Reporting Item 9A. opinions consolidated financial statements internal control audits. public accounting firm Oversight Board independent. federal securities laws rules Securities and Exchange Commission PCAOB.


conducted audits PCAOB. standards require plan assurance consolidated financial statements free misstatement error fraud internal control.


audits of consolidated financial statements included risks misstatement error or fraud. examining evidence amounts disclosures. accounting principles estimates management presentation. audit of internal control over financial reporting included understanding risk material weakness testing design effectiveness control risk. other procedures necessary. audits provide reasonable basis for opinions.


internal control over financial reporting assurance reliability financial reporting preparation financial statements for accounting principles. includes policies procedures maintenance of records transactions dispositions assets assurance transactions recorded necessary preparation financial statements receipts expenditures with authorizations management directors prevention of unauthorized acquisition use disposition assets financial statements.


limitations internal control financial reporting prevent misstatements. projections effectiveness future risk controls compliance policies deteriorate.


critical audit matter from current period audit of consolidated financial statements communicated to audit committee relates to accounts disclosures material challenging complex judgments. communication alter our opinion on consolidated financial statements not separate opinion.


Note 19 consolidated financial statements $2,160 million revenues year December 2023 equipment contracts. single performance obligation. Revenue recognized over time right payment performance asset alternative. contracts revenue cost incurred input method. Costs measure progress performance obligations. material labor overhead control customer.


considerations revenue recognition - estimated costs completion critical significant judgment management costs sale equipment contracts high auditor judgment subjectivity effort audit evidence material labor costs professionals specialized skill knowledge.


Addressing matter involved evaluating audit evidence forming opinion on consolidated financial statements. procedures included testing controls revenue recognition process controls developing estimated costs completion equipment contracts. procedures evaluating process developing estimated costs evaluating assumptions estimated material labor costs. Evaluating estimate costs comparison estimated costs circumstances modification costs. Professionals specialized skill evaluating estimates assumptions labor costs.


served auditor 1992.


Ended December Sales,854,364,793 depreciation amortization,492,450,543 Selling administrative,295,107,189 Depreciation amortization,816,204 Research development charges income Operating Profit,369 Interest expense pension OPEB cost service cost Income Taxes Equity Investments,099 taxes Operations,174,109,837 equity investments Noncontrolling Interests,341,281 discontinued operations net tax Income Interests,341,281 noncontrolling interests Income Linde plc,199,147,826 discontinuedShare Data Linde plc Basic earnings share continuing operations. 39 discontinued operations. continuing operations. 23. 32 discontinued operations. 33 Weighted Average Shares Outstanding Basic shares outstanding,191,736 Diluted shares,290,038


Notes financial statements.


Ended December INCOME NONCONTROLLING INTERESTS,341,281 COMPREHENSIVE INCOME adjustments Foreign currency,116 Reclassifications net income taxes retirement obligations Retirement program,349 Reclassifications net income retirement obligations Derivative instruments unrealized gain Reclassifications net income taxes COMPREHENSIVE INCOME INCOME NONCONTROLLING INTERESTS,306,603 noncontrolling interests,176


Cash,436 Accounts receivable Contract assets Inventories assets,620 Property equipment,552 Equity investments Goodwill intangible assets,399 assets,811,658 Liabilities Equity Accounts payable,995 Short-term debt,117 Contract liabilities Accrued taxes,479 Long-term debt,397 Deferred credits Liabilities,716,271 Commitments contingencies Redeemable interests Linde plc Equity shares.1,750,000,000 shares 2023,766,972 2022,012,862 capital,005 earnings Treasury shares (2023 8,321,827 2022 59,555,235 Linde Equity,720 Noncontrolling interests,082 Liabilities,658


December Cash Net income Linde plc,199,147,826 Less discontinued operations tax noncontrolling interests operations,341,281 Adjustments income cash charges payments Depreciation amortization,816,204 Deferred income taxes Share-based compensation Non-cash charges Working Accounts receivable Contract assets liabilities Inventory Prepaid current assets Payables accruals Pension contributions Long assets liabilities Net cash operating activities,305,864,725 Capital expenditures Acquisitions cash Divestitures sales investingShort-term debt borrowings,329) Long-term debt borrowings,188,210,283 Long repayments(1,682)(1,785) Issuances shares Purchases,168 Cash dividends Linde plc shareholders,482)(2,344),189 Noncontrolling interest transactions Net cash financing,400(3,089)(7,588) exchange rate(931)-period,436,754 end-period,436 Income taxes Interest


amounts millions share thousands plc Shareholders’ shares Paid Capital Income Stock Equity Interests Equity Activity Balance December 31, 2020,202,178,317,252,569 Net Income Linde shareholders income Noncontrolling interests Dividends capital reductions Additions Dividends.24 ordinary share,189 Issuances shares employee savings incentive(150 Purchases ordinary Share Balance December 31, 2021,180,332,428 Income Linde plc shareholders,281 income (loss Noncontrolling interests Dividends capital reductions Additions 14 Dividends$4.68 ordinary share Issuances shares employee savings incentive Purchases ordinary,127 Share-based Balance December 31, 2022,005,555,346,374 Net Income Linde plc shareholders income (loss Noncontrolling interests Dividends capital reductions Additions Dividends$5.common share Issuances ordinary shares employee savings incentive Purchases ordinary Share Intercompany reorganization 14,300 Balance December 31, 2023,767,845(5,805),322,133,720,362,082


Linde plc Ireland. Ten Earlsfort Terrace Dublin 2. offices Forge 43 Church Woking Surrey 10 Riverview Drive Danbury Connecticut. Nasdaq.


January 18 2023 shareholders reorganization Frankfurt Stock Exchange March 1 2023 approvals.


intercompany reorganization March 1, 2023 Linde shareholders received new company Linde plc. trades ticker LIN.


Principles Consolidation consolidated financial statements accounting principles. include subsidiaries variable-interest entities beneficiary. Intercompany transactions eliminated related-party transactions disclosed.


Equity investments 20% to 50% owned operations company influence control. Income reported after-tax. Pre-tax income included income taxes. reviewed for impairment impairment loss.


Changes ownership consolidation deconsolidation investment recorded fair value earnings including retained equity transactions.


Estimates financial statements. GAAP requires estimates assumptions assets liabilities contingent liabilities revenues expenses reporting period. results management believes estimates reasonable.


Linde largest. produces sells distributes atmospheric process specialty gases aerospace chemicals energy healthcare manufacturing. gas production processing components.


Revenue Recognition control goods services transferred customers consideration. Note 19 Linde's revenue recognition policies.


Cash Equivalents liquid maturities three months.


Inventories stated lower cost. average-cost method.


Property Plant Equipment carried depreciation. capitalizes labor overhead interest facilities. additions improvements capitalized. Depreciation calculated lives 3 to 40 years. Linde uses accelerated depreciation tax. Maintenance expensed incurred.


company performs test impairment. future cash flows less than carrying impairment charge fair value required. Fair value determined valuation technique discounted cash flows.


Asset-Retirement Obligations recognized information fair value liability increase property plant equipment depreciated life. liability measured fair value accretion expense recorded. obligations on-site supply arrangements facility land leased remove contract term. not consolidated financial statements.


Foreign Currency Translation operations local translation gains losses cumulative translation adjustment Note 7).


Linde interest commodity energy costs. interest-rate treasury rate lock currency-swap forward contracts options commodity-swap. trading. commonly traded non.


three types derivatives company fair-value cash-flow foreign currency net investment. Fair-value assets liabilities firm commitments cash-flow future cash flows net investment impact foreign currency exchange rate changes value assets.


derivative executed hedge accounting designated fair-value cash-flow net investment. Linde designates interest-rate treasury rate locks hedges currency contracts not hedges related forecasted transactions. derivatives linked to underlying exposure. company assesses hedge effectiveness values cash flows. hedge not effective hedge accounting discontinued.


Changes fair value hedges recognized in earnings. changes cash-flow hedges deferred in income reclassified to earnings transaction. hedge effective ineffectiveness deferred in reclassified to. Hedges foreign subsidiaries recognized in cumulative translation adjustment income offset gains losses. Derivatives entered for risk-management not hedges recorded at fair market values recognized in current earnings.


Note 12 instruments.


Acquisitions allocation purchase price assets liabilities estimated values. excess over recorded goodwill. Allocations preliminary estimates assumptions acquisition subject revision final information appraisals analyses.


company performs goodwill impairment test annually October 1 or impairment loss incurred. impairment test allows factors fair value reporting unit less than carrying value. If


company estimate reporting units carrying goodwill. units operating segment. analysis goodwill 2023 fair value carrying further analysis performed.


Note 9.


Intangible Assets customer relationships amortized over estimated period benefit. use characteristics asset. Linde evaluates recoverability assets value. impairment exceeds estimated fair value. Fair value estimated appraised value valuation techniques. Indefinite intangible assets Linde brand evaluated impairment annual impairment loss.


Note 10 assets.


Income Taxes Deferred taxes temporary differences financial statement tax bases tax rates. Valuation allowances deferred tax assets.


uncertainty income taxes company benefit 50% sustained merits. Otherwise no benefit. benefits measured largest benefit 50% likelihood settlement. company accrues interest penalties tax exposures reserves established. Interest penalties income tax expense financial statements.


Note 5 income.


Retirement Benefits Linde employees defined benefit retirement post-employment health care life insurance plans. cost recognized year earned service accounting standards. funded status asset liability balance sheets. Funding varies local laws practices.


Note 16 retirement.


Share-based company granted awards stock options restricted performance-based stock. compensation expense recognized vesting period. stock awards full-retirement grant retirement. performance-based awards performance condition.


Note 15 compensation.


Reclassifications amounts reclassified current.


accounting pronouncements 2023 statements.


Reportable Segments Disclosures November 2023 FASB enhanced disclosure. standard years 2023 2024 early adoption.


adoption standard disclosures consolidated financial statements evaluating impact.


Income Tax Disclosures December 2023 FASB enhanced disclosure. requires disclosures rate reconciliation disaggregation. effective years December 15 2024 early adoption. adoption consolidated financial statements evaluating impact.


$953 $110 $88 million 2021. 2023 Americas. 2022 2021 Americas EMEA.


January 5, 2023 Linde nexAir gas distribution welding. held 23% interest nexAir. purchased 77% cash transaction purchase price $866 million $811 million net cash. fair value equity interest $183 million gain remeasurement equity interest gain recorded income (expenses) – consolidated statements income.


acquisition nexAir LLC business combination. 100% results consolidated Americas. Linde's twelve months 2023 sales $408 million nexAir. results 2022 not.


company estimated assets additional information. adjustments $27 million working capital deferred taxes. table summarizes value assets liabilities assumed acquisition nexAir. 5, 2023 Cash equivalents current assets Property plant equipment intangible assets long liabilities Deferred taxes assets Goodwill equity interest purchase price


nexAir assets liabilities measured January 5 2023. Estimates cash flows costs attrition discount rates trends market. Inputs historical data market conditions growth rates.


fair value equity purchase price multiplied ownership adjusted discount marketability. fair value property plant equipment based assumptions advantageous market. cost approach adjusted age condition property plant equipment fair value.


intangible assets customer relationships $245 million amortized 20 years. valued multi-period excess earnings method future cash flows nexAir base. no indefinite-lived assets.


excess consideration acquisition over assets recorded as goodwill. $485 million goodwill majority deductible tax. goodwill balance attributable assembled workforce operating synergies. goodwill allocated Americas reportable segment.


third quarter 2022 GIST. Proceeds $184 million $75 million $109 million. loss $21 million $3 million after consolidated statement.


charges $40 million 2023. severance Engineering intercompany reorganization. income tax benefit $81 million $124 million income tax audit offset accrual $85 million international income tax first quarter.


$1 billion$896 million tax 2022 Russia-Ukraine conflict.


Russian invasion Ukraine Europe. imposed economic sanctions Russia. Linde Russian subsidiaries June 30, 2022. Linde deconsolidated Russian gas engineering entities. loss $787 million ($730 million after tax.


value Russian subsidiaries determined probability discounted cash flow model $407 million loss deconsolidation value. recorded.


deconsolidation investment recorded value net assets. consideration. Linde interest Russian subsidiaries sanctions restrictions. investment monitored.


deconsolidated reassessed write-off $380 million.


charges Russia-Ukraine conflict $103 million$73 million tax 2022 impairments entities Russian business.


Merger costs $139 million$93 million tax December 2022 severance Engineering equity EMEA sale GIST September 30 2022.


table pre-tax charges segment year December 31, 2022 Table Contents Ended December 31, 2022 deconsolidation charges Russia charges Russia-related costs Americas EMEA APAC Engineering Total


charges $273 million$279 million.


cost reduction $338 million$253 million 2021. severance $259 million $79 million. actions consolidations rationalization process harmonization non-recurring costs.


Merger $65 million $26 million 2021. $52 million gain venture deconsolidation APAC.


table pre-tax charges segment year ended December 31, 2021 2021 (millions costs cost reduction charges program charges Americas EMEA APAC Engineering Other Total#259#79#338#273


cash requirements December 2023 immaterial. cash paid 2024. twelve months December 2023 2022 reflect cash payments merger-related tax December 31, 2022 2021.


table summarizes activities company cost reduction programs charges 2022 2023 Table Contents (millions Russia charges costs reduction charges Balance December 31, 2021 2022 Russia-Ukraine conflict charges Cash payments Non-cash charges Foreign currency translation Balance December 31, 2022 2023 Charges Cash payments Non-cash charges Foreign currency translation Balance December 31, 2023#198


pre-tax charges operating profit separate consolidated statements income. balance sheets reductions recorded against value unpaid amounts liabilities Note 7). statements cash pre-tax impact income cash. Note 18 Linde excluded charges segment operating profit reconciliation profit table.


Linde enters leases manufacturing equipment office space. determines. lease rental expenses twelve months December 2023 2022 $284 million. lease costs selling administrative expenses cost sales depreciation amortization. related assets obligations included long-term liabilities. lease rental expenses $58 million $57 million included depreciation amortization interest. Related assets obligations. includes renewal options. lease expenses include short variable lease costs.


leases rate Linde incremental borrowing rate liabilities right-use assets. market.


company elected short-term lease exception asset classes. Short-term leases twelve months less purchase option. Leases not recognized balance expensed straight-line lease term.


leasing require variable payments usage output. company variable payments.


losses sale leaseback immaterial. flows months 2022 $249 $254 million. finance leases immaterial.


balance sheet leases 31, 2023 2022 Leases liabilities long-term liabilities lease liabilities Finance Leases liabilities long liabilities finance lease liabilities#193


lease 31, 2023 2022 lease term discount rate. 26


lease payments December 31, 2023 2024#209 2025 2026 2027 2028 lease payments interest lease liability#749#193


Pre-tax income. non-U. operations dollars Ended December 31, United States Non-U.,129 income before taxes,099


analysis income taxes Ended December Current tax expense. federal#291 State local Non.,142 Deferred tax expense. federal State local Non. Total income taxes#1,814#1,434#1,262


tax rate reconciliation company utilizes U. S. income tax rate 21%. analysis difference provision income taxes. income tax rate pre income Table Contents amounts Year Ended December U. S. statutory income tax#1,677.,164. State local taxes federal benefit. Tax Non-U. S. activities. Share-Based compensation. Russia/Ukraine Charges. Provision income taxes#1,814.


related differences. statutory. tax impact non. activities items tax rate changes. Excluding 2021 $83 million deferred income tax rate increase. items not.


$54 million 2023 $71 million $47 2021.


deferred tax liabilities balance December Fixed assets,686,775 Goodwill intangible assets,939 investments#6,903 Deferred tax assets Carryforwards#285#289 Benefit plans Inventory Accruals#1,468#1,523 Valuation allowances#1,292#1,247 deferred tax liabilities#5,523#5,656 long-term assets Deferred credits


$221 million $206 million.


deferred tax $60 million $54 million 2023 2022 Notes 7.


non-US tax $187 million $315.


$228 $212 liabilities.


changes valuation deferred tax assets January 1 Income tax benefit(44) write-offs Translation adjustments Balance December 31,#(176)


company evaluates deferred tax assets quarterly future taxable income. evidence valuation allowance established assets realizable value management determines likely. deferred asset realized. judgment required tax valuation allowances.


December 2023 company $285 million deferred tax tax credits $176 million valuation allowances. $235 million NOLs $82 million 5 $24 million 5 years $129 million. $50 million $3 million 5 $40 5 $7 million. valuation allowances $176 million NOLs. unlikely. income tax benefit.


company $586 million non. income taxes. subsidiaries equity investments. provision additional. income taxes December 31, 2023 $4 billion unremitted. earnings. determination deferred taxes practicable.


Unrecognized tax benefits recognized statements. company benefits $304 million $325 million $387 million December 31, 2023 2022 2021. recognized majority benefits penalties.


reconciliation unrecognized tax benefits Unrecognized benefits January 1#325#387#452 Additions prior years Reductions Additions current positions Reductions settlements taxing authorities Unrecognized benefits December 31#304#325#387


2022 settlement tax audits.


uncertain tax positions settled authorities company tax returns uncertainty.


statute lapses foreign currency.


interest. interest $17 million $3 million expense $15 million 2023 2022 2021. $14 million $35 million accrued interest penalties December 2023 2022 recorded-term liabilities.


December 31, 2023 company subject examination tax jurisdictions South America United States 2023 Canada Mexico Brazil Europe Africa France Germany Spain United Kingdom Asia Australia China India South Korea 2023


company under audit jurisdictions. possible matters unrecognized income tax benefits next twelve months. new information adjustment income tax expense. Final determinations not material financial statements. subject to income taxes jurisdictions.


Basic Diluted earnings per share Linde plc shareholders dividing continuing discontinued operations net tax average basic diluted shares Income continuing operations,199,147,821 discontinued operations net tax Net Income,199,147,826 shares average shares outstanding,656,254 compensation plans basic earnings per share,191,736 dilutive Stock options awards,099,302 diluted earnings per share,290,038 Basic earnings continuing operations. discontinued operations. Diluted earnings continuing operations. discontinued operations. Earnings.23.


no antidilutive shares 2022.


dollars Ended December Selling General,330,342 General administrative,295,107,189 Ended December Depreciation Amortization Depreciation,266,633 Amortization intangibles Depreciation Amortization,816,204


Ended December Income Currency gains(29) Partnership income Severance expense Asset divestiture gains net gains Ended December 31, Interest Expense Interest debt#277#227 Interest income Amortization acquired debt Interest capitalized(62(57)#63#77


December 31, Accounts Receivable Trade receivables,175 credit losses#4,559


Linde applies credit losses recognition receivables. default rates. adjusted. evaluated management collectability receivables. receivables less one year $4,667 million $4,498 million December 2023 2022 greater one year $354 million $321 million 2023 2022. other receivables $154 million $145 million December 2023 2022. Receivables greater one year reserved exceptions.


credit losses $175 $163 million $129 million 2023 2022 2021. allowance activity write-offs recoveries currency movements. Inventories Raw materials supplies Work Finished goods


Prepaid Assets deferred charges VAT gains derivatives Long-term Assets Pension assets Insurance contracts Long receivables Lease assets Deposits Investments cost Deferred charges income taxes Unrealized gains derivatives,299,476 December Current Liabilities Accrued expenses VAT Pension postretirement Interest payable Lease liability Insurance reserves Unrealized losses derivatives Cost reduction programs,082


December Long Liabilities Pension postretirement Tax liabilities uncertain positions Tax Act Lease liability Interest penalties uncertain tax positions Insurance reserves Asset retirement Unrealized losses derivatives Cost reduction Contingent liabilities,795 December Deferred Credits Deferred income taxes Contract liabilities December Income adjustment taxes Americas EMEA APAC Derivatives net taxes Pension obligation $60 million tax benefit 2023 $ million tax obligation 2022


2023 $529 $462 million Linde AG. 2022 $1,006 $474 million Linde AG.


$173 million 2023 $164.


insurance non-qualified pension obligations.


balances December 2023 2022 net $42 million $36 million. long-term notes Brazil GIST.


Includes subsidiaries.


Represents tax repatriation tax. Tax Cuts Jobs Act 2018. 2025.


Americas currency Canada Mexico Brazil. EMEA Germany. APAC China South Korea India Australia.


classes property plant equipment December 31, Lives Production plants 15-year life,554 Storage tanks,445 Transportation equipment,050 Cylinders Buildings,275 Land improvements Construction,239,325,687,773),139,552,548


lives production plants contracts contract lives.


depreciated.


Changes goodwill 2023 2022 Balance December 31, 2021,087,278,496,038 Acquisitions Foreign currency translation(773)(1,231) Disposals Balance December 31, 2022,136,492,349 Acquisitions Foreign currency translation Disposals Balance December 31, 2023#9,703#9,834#4,499,422#293#26,751


Linde performs goodwill impairment tests annually October 1 impairment loss. fourth quarter 2023 test applied FASB accounting guidance qualitative factors analysis. fair value unit exceeded carrying value analysis required. no impairment recorded. indicators impairment December 31, 2023.


summary Linde’s intangible assets December 31, 2023 2022 2023 Relationships Intangible Assets Cost Balance December 31, 2022,062,324 Foreign currency translation December 31, 2023,479,001 amortization December 31, 2022,904) Amortization expense Foreign currency translation December 31, 2023 balance December 31, 2023,209,399 December 2022 Relationships Intangible Assets Cost Balance December 31, 2021,859,173 Additions Foreign currency translationDecember 31, 2022,324 amortization December 31, 2021 Amortization expense Foreign currency translation Disposals December 2022(1,841)(867,904) balance December 31, 2022,221,369,420


write-off amortized reclassifications.


no residual values. 2023 2022 2021 $550 million $571 $723 million. 24 years.


amortization finite-lived intangibles 2024 2025 2026 2027 2028 amortization,654 Indefinite December 2023 Net,399


summary Linde’s debt December 31, 2023 2022 (Millions dollars 31, 2023 2022 SHORT-TERM Commercial paper borrowings non U. S. Total short-term debt,117-TERM. dollar denominated. 70% Notes due 2023. Euro notes. 875% GBP notes. 20% Euro notes 2024. 875%. 800%. 700% Notes 2025. 65%. 625% Euro. 625%. 20%. 434%. 652% Euro. 250% Euro. 375% Euro notes 2029. 10% Notes 2030. 90% Euro. 375% Euro.550% 2032. 375% 2033. 625% 2034. 625% 2035. 55% 2042. 2050. 2051. borrowings,660,797 long debt(1,263)(1,599) debt,397,198#19,373#17,914


discounts premiums debt costs.


2023 2022 $46 million $56 million adjustment value interest swaps. Note.


Linde repaid $500 million.


2023 Linde €650 million. £300 million.


Linde €500 million. 2025 €750 million. €650 million. 2034.


December 7, 2022 company subsidiaries unsecured credit agreement. $5. 0 billion $6. 5 billion additional commitments conditions. no financial maintenance covenants. expires December 7, 2027 two one-year extensions.


December 6, 2023 company subsidiaries entered unsecured 364-day credit agreement banking institutions. $1. 5 billion. no financial maintenance covenants. expires December 4, 2024 principal balances non-revolving loans due payable one year termination.


borrowings Credit Agreements December.


short borrowings. 8%. 2% 2023 2022.


maturities debt 2024 2025,113 2026,500 2028,216,660


December 2023 Linde immaterial.


Note 13 value.


Linde exposed risks interest energy commodity costs. risk management impact earnings cash. enters instruments interest-rate lock currency-swap forward contracts currency options commodity-swap. not trading uses commonly traded non-leveraged instruments.


three types derivatives company fair-value cash-flow foreign currency net investment. Fair-value assets liabilities firm commitments cash-flow future cash flows net investment impact foreign currency exchange rate changes value net assets.


derivative executed hedge accounting appropriate designated fair-value cash-flow net investment. Linde designates interest-rate treasury rate locks hedges cross-currency contracts not hedges. Certain currency contracts forecasted transactions hedges. derivatives linked to underlying exposure. assesses hedge effectiveness fair values cash flows. hedge not effective hedge accounting discontinued.


Counterparties Linde’s derivatives institutions credit ratings investment grade. Credit Support Annexes entities default counterparty risk. derivatives collateralized cash. December 31, 2023 impact collateral value insignificant. risk losses derivative contracts remote immaterial.


table notional fair value derivatives December 2023 2022 consolidated subsidiaries Value Amounts December Derivatives Not Hedging Instruments Currency contracts Balance sheet items#4,567 Forecasted transactions Cross-currency swaps Commodity contracts#4,902 Derivatives Hedging Instruments Currency contracts Forecasted transactions Commodity contracts Interest rate swaps Total Hedges Total Derivatives##47


Amounts December 2022 assets $73 $24 million long-term $8 million $4 million liabilities $41 million $23 million-term $6 million $73 million.


Foreign currency contracts related to balance sheet exposure fluctuations-currency exchange rates on assets liabilities currency. contracts protect assets liabilities from exchange risk not hedging instruments. fair value adjustments offset by assets liabilities.


Foreign currency contracts related to transactions exposure fluctuations exchange rates on purchases sales cash flows units. transactions cash flow hedges adjustments recorded to income deferred amounts reclassified to earnings. transactions adjustments recorded to earnings. Linde hedging transactions three years.


Cross-currency interest rate swaps foreign currency risk loans bonds non-functional currencies. value adjustments recorded earnings offset loan bond.


Commodity contracts fluctuations commodity prices. risk Linde enters electricity natural gas propane gas derivatives. cash flow hedges value adjustments recorded income deferred amounts reclassified earnings. Linde contracts three years.


2023 Linde €10. 7 billion$11. 7 billion Euro notes loans ¥4. 7 billion$0. 7 billion CNY loans. deferred gain $45 million loss $305 million 2023.


December 31, 2023 exchange rate movements hedges gain $56 million. movements until sale liquidation foreign operations amounts reclassified statements.


Linde uses interest rate swaps assets liabilities interest rate changes. convert fixed-rate interest variable rates fair value adjustments recognized earnings offsetting charge/benefit changes Note 11. interest rate swaps terminated 2023. adjustments recorded hedged items.


terminated swaps discount debt $56 million amortized interest April 2028.


December 2023 Linde interest rate swaps €1 billion cash flows cash flow hedge.


table impact derivatives statements income Pre-Tax Gain Earnings December 31, Derivatives Not Hedging Currency contracts Balance sheet items Debt-related items


gains balance sheet items offset by hedged assets liabilities. gains derivatives assets liabilities debt recorded interest expense-net. Other items income gains income-net.


gain loss income not material years December 2023 2022 2021. impacts earnings twelve months not material.


fair value hierarchy valuation techniques three levels


prices markets assets liabilities


2 prices assets liabilities markets


3 unobservable cash flow modeling


Liabilities Measured Recurring


table summarizes assets liabilities measured fair value December 31, 2023 2022 Value Measurements (Millions dollars 1 2 3 Derivative assets Investments securities Total Derivative liabilities#47$


securities recorded current long-term balance sheets.


Level 1 marketable traded exchange. 2 market prices brokers quantitative models market parameters quoted validated pricing brokers market transactions. 3 venture fund.


Linde uses net asset value quarterly reporting not based quoted prices. adjusts market data transaction prices.


3 securities.


value cash equivalents debt payable value maturities.


fair value long-term debt market prices issues. Level 2 fair value. December 31, 2023 Linde’s $13,337 million $14,660 million. December 2022 $11,994 million $13,797 million. Differences interest rates coupon rates.


March 1, 2023 reorganization Linde Frankfurt Linde NYSE shareholders received share new Linde. issued 490,766,972 new Linde shares. treasury shares canceled $15 billion decrease treasury retained earnings. November 7, 2023 Linde transferred shares NYSE Nasdaq "LIN".


December 2023 2022 Linde €1,825,000 1,750,000,000 shares. 25,000. 25,000,000 preferred.


December 31, 2023 490,766,972 482,445,145 Linde shares. no deferred preferred.


December 31, 2022 552,012,862,457,627 Linde shares. no deferred preferred.


Linde’s Board authorize issuance series preferred stock determine characteristics including preference participating special rights qualifications limitations restrictions.


Linde shares dividend stock savings. 2023 2022 2021.


January 22, 2019 repurchase $6. billion 24,847,354 shares December 2021. quarter 2021.


January 25, 2021 approved repurchase $5. billion 16,662,678 December 2022. quarter 2022.


February repurchase $10. billion repurchased 26,411,514 shares 2023. expires July 31, 2024.


October 2023 approved repurchase $15. billion no repurchases December 31, 2023.


terminate maximum authority 2023 reached board terminates.


Noncontrolling statements equity. 2022 deconsolidating Russian gas engineering.


Noncontrolling interests with redemption features reported carrying or redemption value. Linde calculates redemption value until. If greater increase adjusted to earnings impact net income. December 31, 2023 2022 balance includes industrial gas business EMEA put options.


Share compensation $141 million 2023$107 $128 million 2022 2021. income tax benefit $88 million 2023$64. no.


2021 Linde Incentive Plan adopted shareholders July 26, 2021. permits stock options appreciation rights restricted performance-based equity awards employees directors. December 31, 2023 7,661,431 shares equity 2,452,443 shares.


prices options 2021 Plan less than closing market price shares re-priced exchanged without shareholder approval. Options partially exercisable after one year fully until three years maximum duration ten years.


satisfy option equity grants issue treasury.


company utilizes Black-Scholes Options-Pricing Model value stock options. Management assumptions model inputs changes stock price. volatility option exercise activity. expected life. Expected volatility based historical volatility estimated life options. life options granted historical experience. dividend yield based recent history dividend. risk-free rate based U. S. Treasury yield curve life. factors change stock option expense future may differ current.


options 2023 $83.$45. 2022 $37. 2021 Black-Scholes Options-Pricing model. stock price.


weighted-average assumptions grants 2023 2022 2021 Ended Dividend yield. Volatility. Risk-free interest rate. Expected term years


table summarizes option activity December 31, 2023 changes life years intrinsic value Activity Options Exercise Price Life Intrinsic Value January 1, 2023. Granted. Exercised. Cancelled expired. December 31, 2023.,341 December 2023.


value closing stock price $410. 71 2023 price multiplied options. total $283 million ($176 $294 million 2022 2021.


option 2023 $33 million$36 $50 million 2022 2021. tax $86 million 2023$61 $64 2022.


2023 $17 million unrecognized compensation non options 1 year.


2023 company granted 341,915 performance stock unit awards 2021 Plan senior management performance criteria third anniversary grant. awards tied tax return total shareholder return performance S&P 500 Eurofirst 300. shares issued vested award zero to 200 percent target performance targets three-year period. Compensation expense recognized closing market price shares estimated performance. ROC awards adjusted estimated performance levels. TSR awards measured grant date fair value not. awards 2023 increase 201,120 target 2020 higher payout factor three.


-average ROC awards 2023 $340. ($257. 2022 $241. 2021. closing Linde shares adjusted dividends.


TSR awards 2023 $489. 2022. 2021 estimated Monte Carlo simulation.


160,839 stock units granted Linde 2023. $332. 69 ($260. 2022 $242. 60 2021. closing Linde shares adjusted dividends. Compensation expense recognized.


table summarizes non-vested performance-based restricted stock activity December 31, 2023 changes target-Based Stock Shares Grant Date Non-vested January 1, 2023. 33 Granted. 69 Vested. Cancelled Forfeited. Non-vested December 31, 2023#281.


11 thousand performance 17 thousand non-vested December 31, 2023 settled cash. liability performance share price.


December 2023 $48 million unrecognized performance $42 million restricted stock quarter 2026.


Pension Plans.


Linde retirement plans non-contributory employees. July 1, 2002. Pension Plan amended choice traditional benefit. Traditional Design service average pay. Account-Based Design pay credits 4% compensation interest credits treasury rates. applies employees after April 30, 2002. pension assets equities government securities debt. Linde supplementary retirement benefits higher level employees unfunded nonqualified federal tax. Pension non. subsidiaries separate. diversified investment portfolios insurance policies book reserves.


Linde Non-U. defined benefit commitments Germany U. K. old age invalidity surviving dependents. vested rights 2002. commitments salary conversion scheme cash balance. pension payments calculated interest guarantee performance investment. no minimum funding. obligations funded Contractual Trust Agreement. benefit commitments. July 2003 earnings-related dependent service. old age invalidity. April 2011, inflation-linked pensions emoluments restricted.


States Linde participates eight-employer benefit pension plans 200 union employees. agreements expire through 2028. company required periodic contributions. Linde’s participation not material. contributions less than 1% total 2022 2021. 2023 contributions not available.


Linde obtained Pension Protection Act funding notices Trustees MEPs. December 31, 2023 two Red Zone plans implemented improvement plans. Linde anticipate future obligations immaterial. MEP liability unfunded pension obligations. withdrawal payments significant.


Linde’s. employees savings plans. percentages vary IRS regulations. cost $59 million 2023 $56 million 2022 $51 million 2021 tables.


contribution plans non-leveraged employee stock. Linde 1,660,694 December 31, 2023.


non. subsidiaries sponsor contribution plans. $60 million 2023 $80 2022 $101 million 2021.


Linde provides health life insurance retired employees. insurance providers. fund postretirement. retiree plans terminated no liability.


Linde December 31 pension-retirement.


net pension postretirement benefits 2023 2022 2021 table Ended December Operating Service cost Net pension OPEB cost excluding Interest cost return plan assets Net amortization deferral Settlement charges#(164) Net benefit cost


Settlement charges payments.


Changes benefit obligation assets Linde’s pension OPEB programs reconciliation funded status balance December 2023 2022. dollars Ended December.Benefit Obligation January 1,129,719,398 Service cost Interest cost Participant contributions Actuarial loss Benefits paid Plan settlement Foreign currency translation changes(787 December 31,187,385,129 Accumulated benefit obligation,300 Change Plan Assets January 1#1,891#5,794,448 return Company contributions Participant contributions Benefits paid Foreign currency translation changes December 31,178 Funded Status End Year Balance Sheet 7) long assets$#361#648 liabilities long liabilities Net amount December 31#(137)#(207)#(238)#208 income Net actuarial loss#290#219#357#(343) service cost Deferred tax obligation income (loss#213$##227#260(200)


funded status December 2023 2022 non-U. S. pension plans benefit obligations Kingdom Non. Benefit obligation December 31,616#1,684#1,085,385 assets December 31,858,370,178 Funded Status End Year Kingdom. Benefit obligation December 31,100#1,485#1,001#5,586 assets December 31,625 Funded Status End Year


changes plan assets benefit obligations 2023 2022 losses(1,259) Amortization gains(75) service credits Pension settlements Foreign currency translation changes(90) income(1,429)


Pension losses 2023 driven discount rate higher PBO offset plan asset experience non-U. S plans. plan return assets. 2022 gains driven discount rate lower PBO offset unfavorable asset experience non.


table pension plans accumulated benefit obligation exceeds value assets dollars Year Ended December. Accumulated benefit obligation Fair value plan assets,385


table pension plans projected benefit obligation exceeds value assets dollars Year Ended December. Projected benefit obligation Fair value plan assets,390


assumptions benefit obligations balance sheet dates net benefit cost previous year-end. assumptions benefit obligations December 31, Discount rate. 35. Interest crediting rate. Rate increase compensation levels. Weighted average assumptions net benefit cost years December 31, Discount rate. 35. 78. Interest crediting rate. Rate increase compensation levels. Expected long-term rate return plan assets.


expected long term rate return. non assets estimated investment strategy allocation capital market performance plan performance. return 50%-70% equity. 20%-50% fixed income. 2%-8% alternative investments. 40% non. plans allocation 15%-25% equity. 30%-50% fixed income. 90% 30%-50% alternative investments. 80%. annualized total return 10-year period 2023 6. 60%. non. return 4. 90%. Changes asset allocations investment strategy limit historical plan performance. 2024-term rate return 7.%. 5. 83%. non.


investments U. S. pension plan managed future liabilities diversified portfolios capital market returns. strategies reviewed management performance tracked benchmarks. no concentrations risk. non-U. S. pension plans managed individually diversified portfolios target asset allocations. Weighted-average allocations December 31, 2023 2022 Linde’s U. S. non-U. S. pension plans asset allocation ranges category Table Contents.-U. Asset Category Equity securities Fixed income securities


table summarizes pension assets December 31, 2023 2022. Transfers.Note 13 fair value hierarchy Value Measurements 1 2 3 dollars Cash equivalents Equity securities Global equities Mutual funds Fixed income securities Government bonds Emerging market debt Mutual funds Corporate bonds Bank loans Alternative investments Real estate funds Private debt Insurance contractsLiquid alternative investments Total plan assets value December 31,#1,712,224,228 Pooled funds plan assets December 31,#8,228


Pooled funds measured net asset value not categorized fair value hierarchy.


table summarizes pension plan assets level 3 2023 2022 Contents Contracts Estate Funds Debt Balance December 31, 2021,368 Gain(Loss Sales Transfer Level 3 currency translation Balance December 31, 2022,360 Gain(Loss Purchases Sales Transfer Level 3 translation Balance December 31, 2023,345


descriptions methodologies pension assets


Cash Equivalents short-term investments three months. valued cost accrued interest. 1.


Equity Securities shares common stock. companies industries. valued closing market price. exchange security traded. level 1 valuation hierarchy.


Mutual Funds marketable equity fixed income securities. fair value determined net asset value securities. Shares traded valued net asset value level 1 valuation.


Emerging Market Debt debt developing corporations. higher yields lower credit ratings bonds. fair values level 2.


. Non. Government Bonds includes. treasuries. obligations non. debt. majority investments quoted prices fair value determined quoted prices level 2.


Corporate Bonds. non. companies diverse industries. fair values. determined quoted prices markets data broker dealer quotations. values level 2 valuation hierarchy.


Pooled Funds NAVs trustee determined value underlying securities less liabilities valued inputs. include marketable equity fixed income.


Bank Loans syndicated loans corporate borrowers. issued sub-investment companies. syndicated banks investors. traded dealer market banks quotes level 2 valuation.


Liquid Alternative Investments alternative mutual funds liquid securities cash derivatives. diversification strategies long equity multi-strategy global macro. value net asset value


data. indices yield curves prices 2 valuation.


Insurance Contracts category annuity contracts Company exposure longevity risk. fair value calculated cash surrender value discounted cash flows. contracts rated insurance companies. level 3 valuation hierarchy.


Real Estate Funds properties equities companies. fair value determined discounted cash flows income reversion adjusted. Yield rates growth assumptions market transactions data. level 3.


Private Debt non-traded-arranged loans managers corporate borrowers no credit rating. loans real estate companies properties. valued par value held maturity level 3.


Linde contributes pension plans requirements. contributions long-term economic environment overfunding costs alternative uses cash. impact. Pension contributions $46 million 2023 $51 million 2022 $42 million 2021. contributions 2024 $35 million to $45 million.


table future benefit payments contributions Ended December 31,. 2024 2025 2027 2029-2033


company accrues-tax liabilities contingencies loss probable gains recognized realized. losses accruals charged against income. Attorney fees recorded incurred. Commitments obligations future purchases not recorded. records liabilities incurred.


Linde subject to lawsuits government investigations. actions based environmental tax antitrust personal injury claims. Linde strong defenses intends defend. possible incur losses accrued liabilities. losses adverse financial position liquidity possible final outcomes impact results.


2009, Brazilian government published Law 11941/2009 voluntary amnesty program companies settle federal tax disputes reduced. company decided settle tax disputes enrolled Refis Program. recorded estimated liabilities. Since 2009, Linde agreement initiated. issues cash deposits operating loss carryforwards tax reductions. difficult estimate resolution Brazil. December 31, 2023 significant non-income tax claims state VAT tax matters. total estimated exposure approximately $115 million. Linde recorded liabilities.


quarter 2023 Brazilian Supreme Court federal income tax retroactive effect. company recorded reserve potential settlement. finalized subject motions clarification. years difficult estimate. company. September 1, 2010, anticompetitive activity five gas companies imposed fines. fine R$1. 7 billion ($350 million White Martins subsidiary Linde. R$0. 2 billion ($41 million Linde Gases. divested MG Industries March 1, 2019 indemnity.


fine against White Martins Linde Gases. overturned by Ninth Seventh Federal Courts Brasilia. CADE appealed Federal Court rejected confirmed. appeals denied. appeals Supreme Court decisions fine September 2023 January 2024. April 23, 2019 former shareholders Linde AG filed Munich increase cash consideration merger €189. 46 per share. 14,763,113 Linde shares April 8 2019


cash merger squeeze-out completed. expired July 9, 2019. November 2023 court claims cash merger. appeal.


company believes consideration fair claims no reserve established. estimate resolution. December 30, 2022 Russian Arbitration Court. issued injunction preventing sale shares Linde’s subsidiaries joint ventures disposal assets exceeding 5% asset value. injunction requested RusChemAlliance payment file Linde Engineering breach contract gas processing plant Ust Luga Russia July 7, 2021. suspended Linde May 27, 2022. March 1, 2023 filed claim. Linde recovery advance payments added Linde subsidiaries defendants seeking damages Linde guarantor banks.


March 4, 2023 Linde GmbH filed notice arbitration RCA RCA no entitlement payment Russian claim compensate Linde losses damages. March 17, 2023 anti-suit injunction Hong Kong RCA stay Russian Claim disputes arbitration. September 27, 2023 injunction confirmed. January 4, 2024 final judgment permanent anti-suit injunction RCA global anti-enforcement injunction injunction St. Petersburg.


December 2023 Linde liability $1. 1 billion advance payments terminated projects RCA. future obligations. deconsolidated Russian gas engineering June 30, 2022 subsidiaries immaterial.


January 4 2024 Hong Kong injunction shares lifted proceeding St. Petersburg stayed RCA claim Russia. February 20 2024 St. Petersburg Court granted Russian Claim. Linde 30 days appeal. foreclosing appeal.


Linde earnings contingent liability December 2023 investment Russia subsidiaries.


difficult estimate resolution. company Russian Claim arbitration proceedings.


December 2023 Linde credit guarantees bonds $3,344 million. guarantees self-insurance requirements non. S. litigation.


tax debt retirement pension obligations statements Notes 4 5 11 16.


Linde’s operations industrial gases engineering. industrial gases three segments Americas EMEA APAC fourth segment Engineering business designs manufactures equipment air separation industrial gas applications worldwide three segments. corporate costs smaller businesses thresholds.


industrial gases line manufacturing distribution atmospheric process helium hydrogen electronic specialty acetylene. co-products manufacturing process. Linde manufactures distributes manages relationships. distributed end-markets on-site merchant bulk packaged. methods integrated few products economically transported outside region. distribution economics specific geographies consistent management performance.


measure profit/loss operating profit. excluding Linde AG merger royalties not business trends. CODM assesses performance allocates resources. total assets not included.


table reportable segments 2023 2022 2021. Sales Americas,304,874,103 EMEA,443 APAC,133 Engineering,762 Sales,854,364,793 Operating Americas,244,732,368 EMEA,486 APAC Engineering Segment operating profit,070,176 Other charges Purchase accounting impacts Linde AG Total operating profit,369


Depreciation Americas,320 EMEA APAC Engineering depreciation amortization,723,772 Linde AG depreciation amortization,816,204 Capital Expenditures Americas,999,354 EMEA APAC Engineering Capital Expenditures Acquisitions,283,174 Sales Major United States,566,553,123 Germany,662,601 China United Kingdom Australia,303,372,307 Brazil,158.,764,022,075 sales,854,364,793 Long-lived Assets Country United States,490 Germany China,176 United Kingdom Australia Brazil non.,241,301 long-lived assets,552,548,003


. Intersegment Engineering $1,479 $1,035 $896 million 2023 2022 2021.


-lived assets property equipment.


Germany Engineering 35% 44% 53% 2023 2022 2021.


Revenue accounted ASC 606. recognized control goods services transferred to customers consideration entity expects.


Linde healthcare metals mining food electronics.


industrial gases three distribution methods on-site tonnage merchant bulk liquid packaged cylinder gases. distribution method Linde determined volume location. contract terms revenue recognition accounting practices. Linde primary products atmospheric process gases helium. sold three methods.


industrial gases revenue recognition policies


. volumes constant demand supplied cryogenic gas plants. Linde constructs supplies pipeline. large pipeline plants. contracts requirement 10-20 years minimum purchase price escalation provisions. cryogenic plants produce liquid. single customer. Linde design construction operations maintenance customers no involvement. Advanced air separation delivery smaller volume.


performance obligations-site customers satisfied over time control product. Linde practical expedient progress recognizes revenue corresponds product delivery. revenue recognized when product delivered contract terms. Consideration based on pricing price indices. Variable components constrained.


. deliveries from Linde's plants to storage containers customer site. high cost oxygen nitrogen small radius. argon hydrogen helium longer. three to seven year. minimum purchase volume commitments.


obligations merchant customers satisfied customers control product. Revenue recognized product delivered invoice contract terms. variable components merchant contracts not significant.


Packaged Gases. small volumes cylinders pressure. Linde distributes gases cylinder filling plants filled distribution. delivered site. invoices gases cylinder container. sells hardgoods welding equipment. sold one three-year contracts orders minimum volume commitments.


obligations packaged gases satisfied. revenue recognized product delivered customer or right to payment contract terms. variable consideration constrained recognized when uncertainty resolved.


company designs manufactures equipment air separation industrial gas applications. Sale contracts single performance obligation. Revenue recognized time Linde right payment performance asset. contracts revenue cost incurred input. Costs incurred progress performance obligations. material labor overhead control customer. Changes cost estimates contract modifications accounted cumulative adjustments.