Cover
Cover | 9 Months Ended |
Sep. 30, 2022 shares | |
Entity Addresses [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2022 |
Document Transition Report | false |
Entity File Number | 001-38730 |
Entity Registrant Name | LINDE PLC |
Entity Incorporation, State or Country Code | L2 |
Entity Tax Identification Number | 98-1448883 |
Entity Address, Address Line One | Forge |
Entity Address, Address Line Two | 43 Church Street West |
Entity Address, City or Town | Woking, |
Entity Address, Country | GB |
Entity Address, Postal Zip Code | GU21 6HT |
Country Region | 44 |
City Area Code | 14 |
Local Phone Number | 83 242200 |
Title of 12(b) Security | Ordinary shares (€0.001 nominal value per share) |
Trading Symbol | LIN |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 494,379,532 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q3 |
Entity Central Index Key | 0001707925 |
Current Fiscal Year End Date | --12-31 |
Other Address | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 10 Riverview Drive, |
Entity Address, City or Town | Danbury |
Entity Address, State or Province | CT |
Entity Address, Country | US |
Entity Address, Postal Zip Code | 06810 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Sales | $ 8,797 | $ 7,668 | $ 25,465 | $ 22,495 |
Cost of sales, exclusive of depreciation and amortization | 5,285 | 4,368 | 15,023 | 12,616 |
Selling, general and administrative | 770 | 793 | 2,343 | 2,402 |
Depreciation and amortization | 1,045 | 1,163 | 3,248 | 3,500 |
Research and development | 35 | 36 | 107 | 105 |
Russia-Ukraine conflict and other charges | 15 | 26 | 1,004 | 222 |
Other income (expense) - net | (34) | 10 | (58) | (3) |
Operating Profit | 1,613 | 1,292 | 3,682 | 3,647 |
Interest expense - net | 18 | 8 | 32 | 46 |
Net pension and OPEB cost (benefit), excluding service cost | (53) | (45) | (179) | (143) |
Income From Continuing Operations Before Income Taxes and Equity Investments | 1,648 | 1,329 | 3,829 | 3,744 |
Income taxes on continuing operations | 391 | 321 | 1,046 | 923 |
Income From Continuing Operations Before Equity Investments | 1,257 | 1,008 | 2,783 | 2,821 |
Income from equity investments | 43 | 1 | 137 | 81 |
Income From Continuing Operations (Including Noncontrolling Interests) | 1,300 | 1,009 | 2,920 | 2,902 |
Income from discontinued operations, net of tax | 0 | 1 | 0 | 3 |
Net Income (Including Noncontrolling Interests) | 1,300 | 1,010 | 2,920 | 2,905 |
Less: noncontrolling interests from continuing operations | (27) | (31) | (101) | (105) |
Net Income – Linde plc | 1,273 | 979 | 2,819 | 2,800 |
Income from continuing operations | 1,273 | 978 | 2,819 | 2,797 |
Income from discontinued operations | $ 0 | $ 1 | $ 0 | $ 3 |
Per Share Data – Linde plc Shareholders | ||||
Basic earnings per share from continuing operations (in dollars per share) | $ 2.56 | $ 1.90 | $ 5.62 | $ 5.39 |
Basic earnings per share from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.01 |
Basic earnings per share (in dollars per share) | 2.56 | 1.90 | 5.62 | 5.40 |
Diluted earnings per share from continuing operations (in dollars per share) | 2.54 | 1.88 | 5.57 | 5.34 |
Diluted earnings per share from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.01 |
Diluted earnings per share (in dollars per share) | $ 2.54 | $ 1.88 | $ 5.57 | $ 5.35 |
Weighted Average Shares Outstanding (000’s): | ||||
Basic shares outstanding (in shares) | 497,186 | 515,169 | 501,743 | 518,802 |
Diluted shares outstanding (in shares) | 501,151 | 520,079 | 506,012 | 523,662 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME (INCLUDING NONCONTROLLING INTERESTS) | $ 1,300 | $ 1,010 | $ 2,920 | $ 2,905 |
Translation adjustments: | ||||
Foreign currency translation adjustments | (1,769) | (823) | (3,279) | (1,068) |
Reclassification to net income | 24 | 0 | (110) | (52) |
Income taxes | 2 | 4 | (5) | (4) |
Translation adjustments | (1,743) | (819) | (3,394) | (1,124) |
Funded status - retirement obligations (Note 8): | ||||
Retirement program remeasurements | 66 | 52 | 188 | 53 |
Reclassifications to net income | 24 | 43 | 62 | 130 |
Income taxes | (19) | (28) | (47) | (53) |
Funded status - retirement obligations | 71 | 67 | 203 | 130 |
Derivative instruments (Note 5): | ||||
Current unrealized gain (loss) | 60 | 64 | 170 | 104 |
Reclassifications to net income | (54) | (25) | (74) | (30) |
Income taxes | (2) | (10) | (20) | (18) |
Derivative instruments | 4 | 29 | 76 | 56 |
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | (1,668) | (723) | (3,115) | (938) |
COMPREHENSIVE INCOME (LOSS) (INCLUDING NONCONTROLLING INTERESTS) | (368) | 287 | (195) | 1,967 |
Less: noncontrolling interests | 15 | (18) | (30) | (95) |
COMPREHENSIVE INCOME (LOSS) - LINDE PLC | $ (353) | $ 269 | $ (225) | $ 1,872 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 3,756 | $ 2,823 |
Accounts receivable - net | 4,599 | 4,499 |
Contract assets | 104 | 134 |
Inventories | 1,855 | 1,733 |
Prepaid and other current assets | 889 | 970 |
Total Current Assets | 11,203 | 10,159 |
Property, plant and equipment - net | 22,586 | 26,003 |
Goodwill | 24,565 | 27,038 |
Other intangible assets - net | 11,810 | 13,802 |
Other long-term assets | 4,159 | 4,603 |
Total Assets | 74,323 | 81,605 |
Liabilities and equity | ||
Accounts payable | 3,067 | 3,503 |
Short-term debt | 3,179 | 1,163 |
Current portion of long-term debt | 1,551 | 1,709 |
Contract liabilities | 2,902 | 2,940 |
Other current liabilities | 4,362 | 4,328 |
Total Current Liabilities | 15,061 | 13,643 |
Long-term debt | 10,608 | 11,335 |
Other long-term liabilities | 9,715 | 11,186 |
Total Liabilities | 35,384 | 36,164 |
Redeemable noncontrolling interests | 13 | 13 |
Linde plc Shareholders’ Equity: | ||
Ordinary shares,€0.001 par value, authorized 1,750,000,000 shares, 2022 and 2021 issued: 552,012,862 ordinary shares | 1 | 1 |
Additional paid-in capital | 40,011 | 40,180 |
Retained earnings | 19,845 | 18,710 |
Accumulated other comprehensive income (loss) (Note 11) | (8,094) | (5,048) |
Less: Treasury shares, at cost (2022 – 57,633,330 shares and 2021 – 43,331,983 shares) | (14,135) | (9,808) |
Total Linde plc Shareholders’ Equity | 37,628 | 44,035 |
Noncontrolling interests | 1,298 | 1,393 |
Total Equity | 38,926 | 45,428 |
Total Liabilities and Equity | $ 74,323 | $ 81,605 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - € / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (euro per share) | € 0.001 | € 0.001 |
Common stock, authorized (in shares) | 1,750,000,000 | 1,750,000,000 |
Common stock, issued (in shares) | 552,012,862 | 552,012,862 |
Treasury stock (in shares) | 57,633,330 | 43,331,983 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operations | ||
Net Income – Linde plc | $ 2,819 | $ 2,800 |
Less: Income from discontinued operations, net of tax and noncontrolling interests | 0 | (3) |
Add: Noncontrolling interests from continuing operations | 101 | 105 |
Income from continuing operations (including noncontrolling interests) | 2,920 | 2,902 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Russia-Ukraine conflict and other charges, net of payments | 909 | 83 |
Depreciation and amortization | 3,248 | 3,500 |
Deferred income taxes | (412) | (184) |
Share-based compensation | 78 | 95 |
Working capital: | ||
Accounts receivable | (572) | (539) |
Inventory | (300) | (77) |
Prepaid and other current assets | (111) | (25) |
Payables and accruals | 376 | 131 |
Contract assets and liabilities, net | 369 | 530 |
Pension contributions | (44) | (32) |
Long-term assets, liabilities and other | 308 | 108 |
Net cash provided by operating activities | 6,769 | 6,492 |
Investing | ||
Capital expenditures | (2,237) | (2,247) |
Acquisitions, net of cash acquired | (110) | (31) |
Divestitures, net of cash divested and asset sales | 140 | 147 |
Net cash provided by (used for) investing activities | (2,207) | (2,131) |
Financing | ||
Short-term debt borrowings (repayments) - net | 2,229 | 369 |
Long-term debt borrowings | 2,291 | 2,260 |
Long-term debt repayments | (1,725) | (821) |
Issuances of ordinary shares | 24 | 39 |
Purchases of ordinary shares | (4,478) | (3,251) |
Cash dividends - Linde plc shareholders | (1,758) | (1,648) |
Noncontrolling interest transactions and other | (62) | (319) |
Net cash provided by (used for) financing activities | (3,479) | (3,371) |
Effect of exchange rate changes on cash and cash equivalents | (150) | (44) |
Change in cash and cash equivalents | 933 | 946 |
Cash and cash equivalents, beginning-of-period | 2,823 | 3,754 |
Cash and cash equivalents, end-of-period | $ 3,756 | $ 4,700 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Presentation of Condensed Consolidated Financial Statements - In the opinion of Linde management, the accompanying condensed consolidated financial statements include all adjustments necessary for a fair presentation of the results for the interim periods presented and such adjustments are of a normal recurring nature. The accompanying condensed consolidated financial statements should be read in conjunction with the notes to the consolidated financial statements of Linde plc and subsidiaries in Linde's 2021 Annual Report on Form 10-K. There have been no material changes to the company’s significant accounting policies during 2022. Reclassifications – Certain prior periods' amounts have been reclassified to conform to the current year’s presentation. |
Russia-Ukraine Conflict and Oth
Russia-Ukraine Conflict and Other Charges | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Russia-Ukraine Conflict and Other Charges | Russia-Ukraine Conflict and Other Charges 2022 Charges Other charges were $15 million (benefit of $10 million, after tax) for the quarter ended September 30, 2022 and primarily related to the sale of the GIST business. Total Russia-Ukraine conflict and other charges were $1,004 million ($878 million, after tax and noncontrolling interests) for the nine months ended September 30, 2022, largely attributable to the Russia-Ukraine conflict. The following tables summarize the company's pre-tax charges for the nine months ended September 30, 2022: Nine Months Ended September 30, 2022 (millions of dollars) Russia deconsolidation charges Other Russia related charges Total Russia charges Merger-related and other charges Total Americas $ — $ — $ — $ 3 $ 3 EMEA 733 2 735 49 784 APAC — — — 29 29 Engineering 54 112 166 (9) 157 Other — — — 31 31 Total $ 787 $ 114 $ 901 $ 103 $ 1,004 Russia-Ukraine Conflict Deconsolidation of Russian entities In response to the Russian invasion of Ukraine, multiple jurisdictions, including Europe and the U.S., have imposed several tranches of economic sanctions on Russia. As a result, Linde reassessed its ability to control its Russian subsidiaries and determined that as of June 30, 2022 it can no longer exercise control over these entities. As such, Linde deconsolidated its Russian gas and engineering business entities as of June 30, 2022 . The deconsolidation of the company's Russian gas and engineering business entities resulted in a loss of $787 million ($730 million after tax) during the second quarter. The fair value of Linde’s Russian subsidiaries was determined using a probability weighted discounted cash flow model, which resulted in the recognition of a $407 million loss on deconsolidation when compared to the carrying value of the entities. This loss is recorded within Russia-Ukraine conflict and other charges in the consolidated statements of income. Upon deconsolidation an investment was recorded, which represents the fair value of net assets. The company did not receive any consideration, cash or otherwise, as part of the deconsolidation. Linde will maintain its interest in its Russian subsidiaries and will continue to comply with sanctions and government restrictions as it continues to develop divestiture options. The investment will be monitored for impairment in future periods. Receivables, primarily loans receivable, with newly deconsolidated entities were reassessed for collectability resulting in a write-off of approximately $380 million. Other Russia related charges Other charges related specifically to the Russia-Ukraine conflict were $114 million ($84 million after tax) for the nine months ended September 30, 2022, and are primarily comprised of impairments of assets which are maintained by international entities in support of the Russian business. Merger-related and other charges Merger related and other charges were $15 million for the quarter ended September 30, 2022, primarily related to the sale of the GIST business. On September 30, 2022, Linde completed the sale of its GIST business. The total consideration for the sale was $292 million, $184 million of which was paid in cash with the remaining $108 million to be paid in future periods. The sale of the GIST business resulted in a loss of $21 million (benefit of $3 million, after tax) recorded within the Russia-Ukraine conflict and other charges in the consolidated statement of income. Merger related and other charges were $103 million for the nine months ended September 30, 2022, primarily related to the impairment of an equity method investment in the EMEA segment. Cash Requirements The total cash requirements of the Russia-Ukraine conflict and other charges incurred during the nine months ended September 30, 2022 are expected to be immaterial. Liabilities accrued are expected to be paid through 2023. Russia-Ukraine conflict and other charges, net of payments in the condensed consolidated statements of cash flows for the nine months ended September 30, 2022 also reflects the impact of cash payments of liabilities accrued as of December 31, 2021 . The following table summarizes the activities related to the company's Russia-Ukraine conflict and other charges for the nine months ended September 30, 2022: (millions of dollars) Total Russia charges Severance costs Other cost reduction charges Total cost reduction program related charges Merger-related and other charges Total Balance, December 31, 2021 $ — $ 384 $ 38 $ 422 $ 31 $ 453 2022 Russia-Ukraine conflict and other charges 901 30 16 46 57 1,004 Less: Cash payments / receipts (99) (15) (114) 19 (95) Less: Non-cash charges (901) — (7) (7) (76) (984) Foreign currency translation and other — (41) (5) (46) (3) (49) Balance, September 30, 2022 $ — $ 274 $ 27 $ 301 $ 28 $ 329 2021 Charges Cost reduction programs and other charges were $26 million and $222 million for the quarter and nine months ended September 30, 2021, respectively ($58 million and $228 million after tax). Total cost reduction program related charges were $29 million and $277 million ($25 million and $209 million after tax), for the quarter and nine months ended September 30, 2021, respectively. These expenses consisted primarily of severance charges of $20 million and $228 million and other charges of $9 million and $49 million for the quarter and nine months ended September 30, 2021, respectively, related to the execution of the company's synergistic actions including location consolidations and business rationalization projects, process harmonization, and associated non-recurring costs. Merger-related and other charges were benefits of $3 million and $55 million for the quarter and nine months ended September 30, 2021, respectively (charge of $33 million and a benefit of $19 million, after tax). The 2021 year-to-date pre-tax benefit was primarily due to a $52 million gain triggered by a joint venture deconsolidation in the APAC segment. In addition, the nine months ended September 30, 2021 include net income tax charges of $38 million, primarily related to (i) $81 million of expense due to the revaluation of a net deferred tax liability resulting from a tax rate increase in the United Kingdom enacted in the current quarter, and (ii) a tax settlement benefit of $33 million. The quarter and nine months ended September 30, 2021 also include an impairment charge of $35 million ($35 million, after tax) related to a joint venture in the APAC segment. The charge is shown within income from equity investments on the consolidated statements of income. Classification in the condensed consolidated financial statements |
Supplemental Information
Supplemental Information | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Information [Abstract] | |
Supplemental Information | Supplemental Information Receivables Linde applies loss rates that are lifetime expected credit losses at initial recognition of the receivables. These expected loss rates are based on an analysis of the actual historical default rates for each business, taking regional circumstances into account. If necessary, these historical default rates are adjusted to reflect the impact of current changes in the macroeconomic environment using forward-looking information. The loss rates are also evaluated based on the expectations of the responsible management team regarding the collectability of the receivables. Gross trade receivables aged less than one year were $4,574 million and $4,425 million at September 30, 2022 and December 31, 2021, respectively, and gross receivables aged greater than one year were $285 million and $329 million at September 30, 2022 and December 31, 2021, respectively. Other receivables were $117 million and $150 million at September 30, 2022 and December 31, 2021, respectively. Receivables aged greater than one year are generally fully reserved unless specific circumstances warrant exceptions, such as those backed by federal governments. Accounts receivable net of reserves were $4,599 million at September 30, 2022 and $4,499 million at December 31, 2021. Allowances for expected credit losses were $377 million at September 30, 2022 and $405 million at December 31, 2021. Provisions for expected credit losses were $112 million and $101 million for the nine months ended September 30, 2022 and 2021, respectively. The allowance activity in the nine months ended September 30, 2022 and 2021 related to write-offs of uncollectible amounts, net of recoveries and currency movements is not material. Inventories The following is a summary of Linde's consolidated inventories: (Millions of dollars) September 30, December 31, Inventories Raw materials and supplies $ 477 $ 399 Work in process 321 334 Finished goods 1,057 1,000 Total inventories $ 1,855 $ 1,733 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following is a summary of Linde's outstanding debt at September 30, 2022 and December 31, 2021: (Millions of dollars) September 30, December 31, SHORT-TERM Commercial paper $ 2,954 $ 278 Other bank borrowings (primarily non U.S.) 225 885 Total short-term debt 3,179 1,163 LONG-TERM (a) (U.S. dollar denominated unless otherwise noted) 0.250% Euro denominated notes due 2022 (b) (c) — 1,137 2.20% Notes due 2022 (e) — 500 2.70% Notes due 2023 500 500 2.00% Euro denominated notes due 2023 (b) 642 759 5.875% GBP denominated notes due 2023 (b) 345 432 1.20% Euro denominated notes due 2024 539 625 1.875% Euro denominated notes due 2024 (b) 298 356 2.65% Notes due 2025 399 399 1.625% Euro denominated notes due 2025 487 565 0.00% Euro denominated notes due 2026 689 799 3.20% Notes due 2026 725 725 3.434% Notes due 2026 198 197 1.652% Euro denominated notes due 2027 80 94 0.250% Euro denominated notes due 2027 734 850 1.00% Euro denominated notes due 2027 (d) 488 — 1.00% Euro denominated notes due 2028 (b) 689 879 1.10% Notes due 2030 696 696 1.90% Euro denominated notes due 2030 102 118 1.375% Euro denominated notes due 2031 (d) 728 — 0.550% Euro denominated notes due 2032 730 847 0.375% Euro denominated notes due 2033 487 565 1.625% Euro denominated notes due 2035 (d) 773 — 3.55% Notes due 2042 665 664 2.00% Notes due 2050 296 296 1.00% Euro denominated notes due 2051 679 788 Non U.S borrowings 180 243 Other 10 10 12,159 13,044 Less: current portion of long-term debt (1,551) (1,709) Total long-term debt 10,608 11,335 Total debt $ 15,338 $ 14,207 (a) Amounts are net of unamortized discounts, premiums and/or debt issuance costs as applicable. (b) September 30, 2022 and December 31, 2021 included a cumulative $46 million and $42 million adjustment to carrying value, respectively, related to hedge accounting of interest rate swaps. Refer to Note 5. (c) In January 2022, Linde repaid €1.0 billion of 0.250% notes that became due. (d) In March 2022, Linde issued €500 million of 1.000% notes due 2027, €750 million of 1.375% notes due 2031, and €800 million of 1.625% notes due 2035. (e) In May 2022, Linde repaid $500 million of 2.20% notes due in August 2022. There was no impact to interest within the consolidated statements of income. The company maintains a $5 billion unsecured revolving credit agreement with a syndicate of banking institutions that expires March 26, 2024. There are no financial maintenance covenants contained within the credit agreement. No borrowings were outstanding under the credit agreement as of September 30, 2022. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments In its normal operations, Linde is exposed to market risks relating to fluctuations in interest rates, foreign currency exchange rates, and energy and commodity costs. The objective of financial risk management at Linde is to minimize the negative impact of such fluctuations on the company’s earnings and cash flows. To manage these risks, among other strategies, Linde routinely enters into various derivative financial instruments (“derivatives”) including interest-rate swap and treasury rate lock agreements, currency-swap agreements, forward contracts, currency options, and commodity-swap agreements. These instruments are not entered into for trading purposes and Linde only uses commonly traded and non-leveraged instruments. There are three types of derivatives that the company enters into: (i) those relating to fair-value exposures, (ii) those relating to cash-flow exposures, and (iii) those relating to foreign currency net investment exposures. Fair-value exposures relate to recognized assets or liabilities, and firm commitments; cash-flow exposures relate to the variability of future cash flows associated with recognized assets or liabilities, or forecasted transactions; and net investment exposures relate to the impact of foreign currency exchange rate changes on the carrying value of net assets denominated in foreign currencies. When a derivative is executed and hedge accounting is appropriate, it is designated as either a fair-value hedge, cash-flow hedge, or a net investment hedge. Currently, Linde designates all interest-rate and treasury-rate locks as hedges for accounting purposes; however, cross-currency contracts are generally not designated as hedges for accounting purposes. Certain currency contracts related to forecasted transactions are designated as hedges for accounting purposes. Whether designated as hedges for accounting purposes or not, all derivatives are linked to an appropriate underlying exposure. On an ongoing basis, the company assesses the hedge effectiveness of all derivatives designated as hedges for accounting purposes to determine if they continue to be highly effective in offsetting changes in fair values or cash flows of the underlying hedged items. If it is determined that the hedge is not highly effective through the use of a qualitative assessment, then hedge accounting will be discontinued prospectively. Counterparties to Linde's derivatives are major banking institutions with credit ratings of investment grade or better. The company has Credit Support Annexes ("CSAs") in place for certain entities with its principal counterparties to minimize potential default risk and to mitigate counterparty risk. Under the CSAs, the fair values of derivatives for the purpose of interest rate and currency management are collateralized with cash on a regular basis. As of September 30, 2022, the impact of such collateral posting arrangements on the fair value of derivatives was insignificant. Management believes the risk of incurring losses on derivative contracts related to credit risk is remote and any losses would be immaterial. The following table is a summary of the notional amount and fair value of derivatives outstanding at September 30, 2022 and December 31, 2021 for consolidated subsidiaries: Fair Value Notional Amounts Assets (a) Liabilities (a) (Millions of dollars) September 30, December 31, September 30, December 31, September 30, December 31, Derivatives Not Designated as Hedging Instruments: Currency contracts: Balance sheet items $ 3,237 $ 4,427 $ 36 $ 22 $ 17 $ 17 Forecasted transactions 471 537 11 6 25 11 Cross-currency swaps 60 148 1 21 2 4 Total $ 3,768 $ 5,112 $ 48 $ 49 $ 44 $ 32 Derivatives Designated as Hedging Instruments: Currency contracts: Forecasted transactions 323 758 10 14 4 3 Commodity contracts N/A N/A 20 49 2 — Interest rate swaps 784 1,251 — 24 59 — Total Hedges $ 1,107 $ 2,009 $ 30 $ 87 $ 65 $ 3 Total Derivatives $ 4,875 $ 7,121 $ 78 $ 136 $ 109 $ 35 (a) Amounts as at September 30, 2022 and December 31, 2021 included current assets of $72 million and $101 million which are recorded in prepaid and other current assets; long-term assets of $6 million and $35 million which are recorded in other long-term assets; current liabilities of $42 million and $27 million which are recorded in other current liabilities; and long-term liabilities of $67 million and $8 million which are recorded in other long-term liabilities. Balance Sheet Items Foreign currency contracts related to balance sheet items consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on recorded balance sheet assets and liabilities denominated in currencies other than the functional currency of the related operating unit. Certain forward currency contracts are entered into to protect underlying monetary assets and liabilities denominated in foreign currencies from foreign exchange risk and are not designated as hedging instruments. For balance sheet items that are not designated as hedging instruments, the fair value adjustments on these contracts are offset by the fair value adjustments recorded on the underlying monetary assets and liabilities. Forecasted Transactions Foreign currency contracts related to forecasted transactions consist of forward contracts entered into to manage the exposure to fluctuations in foreign-currency exchange rates on (1) forecasted purchases of capital-related equipment and services, (2) forecasted sales, or (3) other forecasted cash flows denominated in currencies other than the functional currency of the related operating units. For forecasted transactions that are designated as cash flow hedges, fair value adjustments are recorded to accumulated other comprehensive income ("AOCI") with deferred amounts reclassified to earnings over the same time period as the income statement impact of the associated forecasted transaction. For forecasted transactions that do not qualify for cash flow hedging relationships, fair value adjustments are recorded directly to earnings. Cross-Currency Swaps Cross-currency interest rate swaps are used to limit the foreign currency risk of future principal and interest cash flows associated with intercompany loans denominated in non-functional currencies. The fair value adjustments on the cross-currency swaps are recorded to earnings, where they are offset by fair value adjustments on the underlying intercompany loan or bond. Commodity Contracts Commodity contracts are used to manage the exposure to fluctuations in commodity prices, which arise in the normal course of business from its procurement transactions. Commodity price fluctuations are largely covered through contractual pass through to customers. To reduce the extent of the remaining risk, Linde enters into a limited number of electricity, natural gas, and propane gas derivatives. For forecasted transactions that are designated as cash flow hedges, fair value adjustments are recorded to accumulated other comprehensive income ("AOCI") with deferred amounts reclassified to earnings over the same time period as the income statement impact of the associated purchase. Net Investment Hedges As of September 30, 2022, Linde has €7.5 billion ($7.5 billion) Euro-denominated notes and intercompany loans that are designated as hedges of the net investment positions in foreign operations. Since hedge inception, the deferred gain recorded within the cumulative translation adjustment component of AOCI in the condensed consolidated balance sheets and the consolidated statements of comprehensive income is $1,191 million (deferred gain of $512 million and $1,051 million recorded for the quarter and nine months ended September 30, 2022). As of September 30, 2022, Linde has exchange rate movements relating to previously designated hedges that remain in AOCI at a loss of $42 million. These movements will remain in AOCI, until appropriate, such as upon sale or liquidation of the related foreign operations at which time amounts will be reclassified to the consolidated statements of income. Interest Rate Swaps Linde uses interest rate swaps to hedge the exposure to changes in the fair value of financial assets and financial liabilities as a result of interest rate changes. These interest rate swaps effectively convert fixed-rate interest exposures to variable rates; fair value adjustments are recognized in earnings along with an equally offsetting charge/benefit to earnings for the changes in the fair value of the underlying financial asset or financial liability (See Note 4). Derivatives' Impact on Consolidated Statements of Income The following table summarizes the impact of the company’s derivatives on the consolidated statements of income: Amount of Pre-Tax Gain (Loss) Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2022 2021 2022 2021 Derivatives Not Designated as Hedging Instruments Currency contracts: Balance sheet items Debt-related $ (52) $ (13) $ (42) $ 16 Other balance sheet items 19 2 11 9 Total $ (33) $ (11) $ (31) $ 25 * The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities. Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt items are recorded in the consolidated statements of income as interest expense-net. Other balance sheet items and anticipated net income gains (losses) are generally recorded in the consolidated statements of income as other income (expenses)-net. The amounts of gain or loss recognized in AOCI and reclassified to the consolidated statement of income was not material for the quarter and nine months ended September 30, 2022 and 2021, respectively. Net impacts expected to be reclassified to earnings during the next twelve months are also not material. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 – quoted prices in active markets for identical assets or liabilities Level 2 – quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 – inputs that are unobservable (for example cash flow modeling inputs based on assumptions) Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements Using Level 1 Level 2 Level 3 (Millions of dollars) September 30, December 31, September 30, December 31, September 30, December 31, Assets Derivative assets $ — $ — $ 78 $ 136 $ — $ — Investments and securities* 20 42 — — 12 20 Total $ 20 $ 42 $ 78 $ 136 12 $ 20 Liabilities Derivative liabilities $ — $ — $ 109 $ 35 $ — $ — * Investments and securities are recorded in prepaid and other current assets and other long-term assets in the company's condensed consolidated balance sheets. Level 1 investments and securities are marketable securities traded on an exchange. Level 2 investments are based on market prices obtained from independent brokers or determined using quantitative models that use as their basis readily observable market parameters that are actively quoted and can be validated through external sources, including third-party pricing services, brokers and market transactions. Level 3 investments and securities consist of a venture fund. For the valuation, Linde uses the net asset value received as part of the fund's quarterly reporting, which for the most part is not based on quoted prices in active markets. In order to reflect current market conditions, Linde proportionally adjusts the investment value by observable market data (stock exchange prices) or current transaction prices. Changes in level 3 investments and securities were immaterial. The fair value of cash and cash equivalents, short-term debt, accounts receivable-net, and accounts payable approximate carrying value because of the short-term maturities of these instruments. The fair value of long-term debt is estimated based on the quoted market prices for the same or similar issues. Long-term debt is categorized within either Level 1 or Level 2 of the fair value hierarchy depending on the trading volume of the issues and whether or not they are actively quoted in the market as opposed to traded through over-the-counter transactions. At September 30, 2022, the estimated fair value of Linde’s long-term debt portfolio was $10,298 million versus a carrying value of $12,159 million. At December 31, 2021, the estimated fair value of Linde’s long-term debt portfolio was $13,219 million versus a carrying value of $13,044 million. Differences between the carrying value and the fair value are attributable to fluctuations in interest rates subsequent to when the debt was issued and relative to stated coupon rates. |
Earnings Per Share _ Linde plc
Earnings Per Share – Linde plc Shareholders | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share – Linde plc Shareholders | Earnings Per Share – Linde plc Shareholders Basic and diluted earnings per share is computed by dividing Income from continuing operations, Income from discontinued operations and Net income – Linde plc for the period by the weighted average number of either basic or diluted shares outstanding, as follows: Quarter Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator (Millions of dollars) Income from continuing operations $ 1,273 $ 978 $ 2,819 $ 2,797 Income from discontinued operations — 1 $ — 3 Net Income – Linde plc $ 1,273 $ 979 $ 2,819 $ 2,800 Denominator (Thousands of shares) Weighted average shares outstanding 496,691 514,770 501,266 518,418 Shares earned and issuable under compensation plans 495 399 477 384 Weighted average shares used in basic earnings per share 497,186 515,169 501,743 518,802 Effect of dilutive securities Stock options and awards 3,965 4,910 4,269 4,860 Weighted average shares used in diluted earnings per share 501,151 520,079 506,012 523,662 Basic earnings per share from continuing operations $ 2.56 $ 1.90 $ 5.62 $ 5.39 Basic earnings per share from discontinued operations — — $ — $ 0.01 Basic Earnings Per Share $ 2.56 $ 1.90 $ 5.62 $ 5.40 Diluted earnings per share from continuing operations $ 2.54 $ 1.88 $ 5.57 $ 5.34 Diluted earnings per share from discontinued operations — — $ — $ 0.01 Diluted Earnings Per Share $ 2.54 $ 1.88 $ 5.57 $ 5.35 There were no antidilutive shares for any period presented. |
Retirement Programs
Retirement Programs | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits, Description [Abstract] | |
Retirement Programs | Retirement Programs The components of net pension and postretirement benefits other than pensions (“OPEB”) costs for the quarter and nine months ended September 30, 2022 and 2021 are shown below: Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2022 2021 2022 2021 Amount recognized in Operating Profit Service cost $ 31 $ 39 $ 96 $ 118 Amount recognized in Net pension and OPEB cost (benefit), excluding service cost Interest cost 49 41 153 118 Expected return on plan assets (126) (129) (394) (391) Net amortization and deferral 18 39 56 126 Settlement charge (a) 6 4 6 4 (53) (45) (179) (143) Net periodic benefit cost (benefit) $ (22) $ (6) $ (83) $ (25) (a) In the third quarters of 2022 and 2021, Linde recorded pension settlement charges of $6 million and $4 million ($5 million and $3 million, after tax), respectively, related to lump sum benefit payments made from a U.S. non-qualified plan. Components of net periodic benefit expense for other post-retirement plans for the quarter and nine months ended September 30, 2022 and 2021 were not material. Linde estimates that 2022 required contributions to its pension plans will be approximately $50 million |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingent Liabilities Linde is subject to various lawsuits and government investigations that arise from time to time in the ordinary course of business. These actions are based upon alleged environmental, tax, antitrust and personal injury claims, among others. Linde has strong defenses in these cases and intends to defend itself vigorously. It is possible that the company may incur losses in connection with some of these actions in excess of accrued liabilities. Management does not anticipate that in the aggregate such losses would have a material adverse effect on the company’s consolidated financial position or liquidity; however, it is possible that the final outcomes could have a significant impact on the company’s reported results of operations in any given period (see Note 17 to the consolidated financial statements of Linde's 2021 Annual Report on Form 10-K). Significant matters are: • During 2009, the Brazilian government published Law 11941/2009 instituting a new voluntary amnesty program (“Refis Program”) which allowed Brazilian companies to settle certain federal tax disputes at reduced amounts. During 2009, the company decided that it was economically beneficial to settle many of its outstanding federal tax disputes and such disputes were enrolled in the Refis Program, subject to final calculation and review by the Brazilian federal government. The company recorded estimated liabilities based on the terms of the Refis Program. Since 2009, Linde has been unable to reach final agreement on the calculations and initiated litigation against the government in an attempt to resolve certain items. Open issues relate to the following matters: (i) application of cash deposits and net operating loss carryforwards to satisfy obligations and (ii) the amount of tax reductions available under the Refis Program. It is difficult to estimate the timing of resolution of legal matters in Brazil. • At September 30, 2022 the most significant non-income and income tax claims in Brazil, after enrollment in the Refis Program, relate to state VAT tax matters and a federal income tax matter where the taxing authorities are challenging the tax rate that should be applied to income generated by a subsidiary company. The total estimated exposure relating to such claims, including interest and penalties, as appropriate, is approximately $215 million. Linde has not recorded any liabilities related to such claims based on management judgments, after considering judgments and opinions of outside counsel. Because litigation in Brazil historically takes many years to resolve, it is very difficult to estimate the timing of resolution of these matters; however, it is possible that certain of these matters may be resolved within the near term. The company is vigorously defending against the proceedings. • On September 1, 2010, CADE (Brazilian Administrative Council for Economic Defense) announced alleged anticompetitive activity on the part of five industrial gas companies in Brazil and imposed fines. Originally, CADE imposed a civil fine of $2.2 billion Brazilian reais ($407 million) on White Martins, the Brazil-based subsidiary of Linde Inc. The fine was reduced to $1.7 billion Brazilian reais ($314 million) due to a calculation error made by CADE. The fine against White Martins was overturned by the Ninth Federal Court of Brasilia. CADE appealed this decision, and the Federal Court of Appeals rejected CADE's appeal and confirmed the decision of the Ninth Federal Court of Brasilia. CADE has filed an appeal with the Superior Court of Justice and a decision is pending. Similarly, on September 1, 2010, CADE imposed a civil fine of $237 million Brazilian reais ($44 million) on Linde Gases Ltda., the former Brazil-based subsidiary of Linde AG, which was divested to MG Industries GmbH on March 1, 2019 and with respect to which Linde provided a contractual indemnity. The fine was reduced to $188 million Brazilian reais ($35 million) due to a calculation error made by CADE. The fine against Linde Gases Ltda. was overturned by the Seventh Federal Court in Brasilia. CADE appealed this decision, and the Federal Court of Appeals rejected CADE's appeal and confirmed the decision of the Seventh Federal Court of Brasilia. CADE filed an appeal with the Superior Court of Justice which was denied. In parallel, CADE filed (i) an appeal with the Supreme Court of Justice, which was denied, and (ii) a subsequent appeal to a panel of the Supreme Court of Justice where a final decision is pending. Linde has strong defenses and is confident that it will prevail on appeal and have the fines overturned. Linde strongly believes that the allegations of anticompetitive activity against our current and former Brazilian subsidiaries are not supported by valid and sufficient evidence. Linde believes that this decision will not stand up to judicial review and deems the possibility of cash outflows to be extremely unlikely. As a result, no reserves have been recorded as management does not believe that a loss from this case is probable. • On and after April 23, 2019 former shareholders of Linde AG filed appraisal proceedings at the District Court ( Landgericht ) Munich I (Germany), seeking an increase of the cash consideration paid in connection with the previously completed cash merger squeeze-out of all of Linde AG’s minority shareholders for €189.46 per share. Any such increase would apply to all 14,763,113 Linde AG shares that were outstanding on April 8, 2019, when the cash merger squeeze-out was completed. The period for plaintiffs to file claims expired on July 9, 2019. The company believes the consideration paid was fair and that the claims lack merit, and no reserve has been established. We cannot estimate the timing of resolution. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segments | Segments For a description of Linde plc's operating segments, refer to Note 18 to the consolidated financial statements on Linde plc's 2021 Annual Report on Form 10-K. The table below presents sales and operating profit information about reportable segments and Other for the quarter and nine months ended September 30, 2022 and 2021. Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2022 2021 2022 2021 SALES (a) Americas $ 3,694 $ 3,091 $ 10,453 $ 8,951 EMEA 2,125 1,911 6,417 5,585 APAC 1,660 1,564 4,913 4,544 Engineering 828 601 2,200 1,921 Other 490 501 1,482 1,494 Total sales $ 8,797 $ 7,668 $ 25,465 $ 22,495 Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2022 2021 2022 2021 SEGMENT OPERATING PROFIT Americas $ 974 $ 859 $ 2,788 $ 2,525 EMEA 465 476 1,504 1,414 APAC 429 382 1,254 1,122 Engineering 150 106 398 323 Other (8) (13) (41) (49) Segment operating profit 2,010 1,810 5,903 5,335 Russia-Ukraine conflict and other charges (Note 2) (15) (26) (1,004) (222) Purchase accounting impacts - Linde AG (382) (492) (1,217) (1,466) Total operating profit $ 1,613 $ 1,292 $ 3,682 $ 3,647 (a) Sales reflect external sales only. Intersegment sales, primarily from Engineering to the industrial gases segments, were $251 million and $728 million for the quarter and nine months ended September 30, 2022, respectively, and $243 million and $666 million for the respective 2021 periods. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Equity | Equity Equity A summary of the changes in total equity for the quarter and nine months ended September 30, 2022 and 2021 is provided below: Quarter Ended September 30, (Millions of dollars) 2022 2021 Activity Linde plc Noncontrolling Total Linde plc Noncontrolling Total Balance, beginning of period $ 39,674 $ 1,353 $ 41,027 $ 45,777 $ 1,438 $ 47,215 Net income (a) 1,273 27 1,300 979 31 1,010 Other comprehensive income (loss) (1,628) (40) (1,668) (710) (13) (723) Noncontrolling interests: Additions (reductions) — (7) (7) — (15) (15) Dividends and other capital changes — (35) (35) — (40) (40) Dividends to Linde plc ordinary share holders ($1.17 per share in 2022 and $1.06 per share in 2021) (581) — (581) (546) — (546) Issuances of ordinary shares: For employee savings and incentive plans 7 — 7 (1) — (1) Purchases of ordinary shares (1,144) — (1,144) (1,208) — (1,208) Share-based compensation 27 — 27 32 — 32 Balance, end of period $ 37,628 $ 1,298 $ 38,926 $ 44,323 $ 1,401 $ 45,724 Nine Months Ended September 30, (Millions of dollars) 2022 2021 Activity Linde plc Noncontrolling Total Linde plc Noncontrolling Total Balance, beginning of period $ 44,035 $ 1,393 $ 45,428 $ 47,317 $ 2,252 $ 49,569 Net income (a) 2,819 101 2,920 2,800 105 2,905 Other comprehensive income (loss) (3,046) (69) (3,115) (928) (10) (938) Noncontrolling interests: Additions (reductions) (b) — (56) (56) — (861) (861) Dividends and other capital changes — (71) (71) — (85) (85) Dividends to Linde plc ordinary share holders ($3.51 per share in 2022 and $3.18 per share in 2021) (1,758) — (1,758) (1,648) — (1,648) Issuances of ordinary shares: For employee savings and incentive plans (32) — (32) (12) — (12) Purchases of ordinary shares (4,468) — (4,468) (3,301) — (3,301) Share-based compensation 78 — 78 95 — 95 Balance, end of period $ 37,628 $ 1,298 $ 38,926 $ 44,323 $ 1,401 $ 45,724 (a) Net income for noncontrolling interests excludes net income related to redeemable noncontrolling interests which is not significant for the quarter and nine months ended September 30, 2022 and 2021 and which is not part of total equity. (b) Additions (reductions) for noncontrolling interests for the nine months ended September 30, 2022 includes the impact of deconsolidating the company's Russian gas and engineering business entities (refer to Note 2). Additions (reductions) for noncontrolling interests for the nine months ended September 30, 2021 includes the impact from the deconsolidation of a joint venture with operations in APAC. The components of AOCI are as follows: September 30, December 31, (Millions of dollars) 2022 2021 Cumulative translation adjustment - net of taxes: Americas $ (4,087) $ (3,985) EMEA (2,625) 94 APAC (1,514) 154 Engineering (626) 24 Other 1,534 (280) (7,318) (3,993) Derivatives - net of taxes 151 75 Pension / OPEB (net of $258 million and $305 million tax benefit in September 30, 2022 and December 31, 2021, respectively) (927) (1,130) $ (8,094) $ (5,048) |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue is accounted for in accordance with ASC 606. Revenue is recognized as control of goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled to receive in exchange for the goods or services. Contracts with Customers Linde serves a diverse group of industries including healthcare, chemicals and energy, manufacturing, metals and mining, food and beverage, and electronics. Industrial Gases Within each of the company’s geographic segments for industrial gases, there are three basic distribution methods: (i) on-site or tonnage; (ii) merchant or bulk liquid; and (iii) packaged or cylinder gases. The distribution method used by Linde to supply a customer is determined by many factors, including the customer’s volume requirements and location. The distribution method generally determines the contract terms with the customer and, accordingly, the revenue recognition accounting practices. Linde's primary products in its industrial gases business are atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty gases, acetylene). These products are generally sold through one of the three distribution methods. Following is a description of each of the three industrial gases distribution methods and the respective revenue recognition policies : On-site. Customers that require the largest volumes of product and that have a relatively constant demand pattern are supplied by cryogenic and process gas on-site plants. Linde constructs plants on or adjacent to these customers’ sites and supplies the product directly to customers by pipeline. Where there are large concentrations of customers, a single pipeline may be connected to several plants and customers. On-site product supply contracts generally are total requirement contracts with terms typically ranging from 10-20 years and contain minimum purchase requirements and price escalation provisions. Many of the cryogenic on-site plants also produce liquid products for the merchant market. Therefore, plants are typically not dedicated to a single customer. Additionally, Linde is responsible for the design, construction, operations and maintenance of the plants and our customers typically have no involvement in these activities. Advanced air separation processes also allow on-site delivery to customers with smaller volume requirements. The company’s performance obligations related to on-site customers are satisfied over time as customers receive and obtain control of the product. Linde has elected to apply the practical expedient for measuring progress towards the completion of a performance obligation and recognizes revenue as the company has the right to invoice each customer, which generally corresponds with product delivery. Accordingly, revenue is recognized when product is delivered to the customer and the company has the right to invoice the customer in accordance with the contract terms. Consideration in these contracts is generally based on pricing which fluctuates with various price indices. Variable components of consideration exist within on-site contracts but are considered constrained. Merchant. Merchant deliveries generally are made from Linde's plants by tanker trucks to storage containers at the customer's site. Due to the relatively high distribution cost, merchant oxygen and nitrogen generally have a relatively small distribution radius from the plants at which they are produced. Merchant argon, hydrogen and helium can be shipped much longer distances. The customer agreements used in the merchant business are usually three The company’s performance obligations related to merchant customers are generally satisfied at a point in time as the customers receive and obtain control of the product. Revenue is recognized when product is delivered to the customer and the company has the right to invoice the customer in accordance with the contract terms. Any variable components of consideration within merchant contracts are constrained; however, this consideration is not significant. Packaged Gases. Customers requiring small volumes are supplied products in containers called cylinders, under medium to high pressure. Linde distributes merchant gases from its production plants to company-owned cylinder filling plants where cylinders are then filled for distribution to customers. Cylinders may be delivered to the customer’s site or picked up by the customer at a packaging facility or retail store. Linde invoices the customer for the industrial gases and the use of the cylinder container(s). The company also sells hardgoods and welding equipment purchased from independent manufacturers. Packaged gases are generally sold under one The company’s performance obligations related to packaged gases are satisfied at a point in time. Accordingly, revenue is recognized when product is delivered to the customer or when the customer picks up product from a packaged gas facility or retail store and the company has the right to payment from the customer in accordance with the contract terms. Any variable consideration is constrained and will be recognized when the uncertainty related to the consideration is resolved. Linde Engineering The company designs and manufactures equipment for air separation and other industrial gas applications manufactured specifically for end customers. Sale of equipment contracts are generally comprised of a single performance obligation. Revenue from sale of equipment is generally recognized over time as Linde has an enforceable right to payment for performance completed to date and performance does not create an asset with alternative use. For contracts recognized over time, revenue is recognized primarily using a cost incurred input method. Costs incurred to date relative to total estimated costs at completion are used to measure progress toward satisfying performance obligations. Costs incurred include material, labor, and overhead costs and represent work contributing and proportionate to the transfer of control to the customer. Changes to cost estimates and contract modifications are typically accounted for as part of the existing contract and are recognized as a cumulative adjustments for the inception-to-date effect of such change. Contract Assets and Liabilities Contract assets and liabilities result from differences in timing of revenue recognition and customer invoicing. Contract assets primarily relate to sale of equipment contracts for which revenue is recognized over time. The balance represents unbilled revenue which occurs when revenue recognized under the measure of progress exceeds amounts invoiced to customers. Customer invoices may be based on the passage of time, the achievement of certain contractual milestones or a combination of both criteria. Contract liabilities include advance payments or right to consideration prior to performance under the contract. Contract liabilities are recognized as revenue as performance obligations are satisfied under contract terms. Linde has contract assets of $104 million and $134 million at September 30, 2022 and December 31, 2021, respectively. Total contract liabilities are $3,799 million at September 30, 2022 (current of $2,902 million and $897 million within other long-term liabilities in the condensed consolidated balance sheets). As of September 30, 2022, Linde has approximately $1.8 billion recorded in contract liabilities related to engineering projects subject to sanctions in Russia. Total contract liabilities were $3,699 million at December 31, 2021 (current contract liabilities of $2,940 million and $759 million in other long-term liabilities in the condensed consolidated balance sheets). Revenue recognized for the nine months ended September 30, 2022 that was included in the contract liability at December 31, 2021 was $1,085 million. Contract assets and liabilities primarily relate to the Linde Engineering business. Payment Terms and Other Linde generally receives payment after performance obligations are satisfied, and customer prepayments are not typical for the industrial gases business. Payment terms vary based on the country where sales originate and local customary payment practices. Linde does not offer extended financing outside of customary payment terms. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue producing transactions are presented on a net basis and are not included in sales within the consolidated statements of income. Additionally, sales returns and allowances are not a normal practice in the industry and are not significant. Disaggregated Revenue Information As described above and in Note 18 to Linde plc's 2021 Annual Report on Form 10-K, the company manages its industrial gases business on a geographic basis, while the Engineering and Other businesses are generally managed on a global basis. Furthermore, the company believes that reporting sales by distribution method by reportable geographic segment best illustrates the nature, timing, type of customer, and contract terms for its revenues, including terms and pricing. The following tables show sales by distribution method at the consolidated level and for each reportable segment and Other for the third quarter and nine months ended September 30, 2022 and September 30, 2021. (Millions of dollars) Quarter Ended September 30, 2022 Sales Americas EMEA APAC Engineering Other Total % Merchant $ 986 $ 620 $ 593 $ — $ 43 $ 2,242 25 % On-Site 1,178 651 605 — — 2,434 28 % Packaged Gas 1,478 841 403 — 21 2,743 31 % Other 52 13 59 828 426 1,378 16 % Total $ 3,694 $ 2,125 $ 1,660 $ 828 $ 490 $ 8,797 100 % (Millions of dollars) Quarter Ended September 30, 2021 Sales Americas EMEA APAC Engineering Other Total % Merchant $ 849 $ 559 $ 563 $ — $ 38 $ 2,009 26 % On-Site 836 462 578 — — 1,876 24 % Packaged Gas 1,385 880 394 — 7 2,666 35 % Other 21 10 29 601 456 1,117 15 % Total $ 3,091 $ 1,911 $ 1,564 $ 601 $ 501 $ 7,668 100 % (Millions of dollars) Nine Months Ended September 30, 2022 Sales Americas EMEA APAC Engineering Other Total % Merchant $ 2,801 $ 1,868 $ 1,671 $ — $ 122 $ 6,462 25 % On-Site 3,110 1,892 1,891 — — 6,893 27 % Packaged Gas 4,383 2,616 1,153 — 37 8,189 32 % Other 159 41 198 2,200 1,323 3,921 15 % Total $ 10,453 $ 6,417 $ 4,913 $ 2,200 $ 1,482 $ 25,465 100 % (Millions of dollars) Nine Months Ended September 30, 2021 Sales Americas EMEA APAC Engineering Other Total % Merchant $ 2,441 $ 1,646 $ 1,598 $ — $ 133 $ 5,818 26 % On-Site 2,299 1,250 1,712 — — 5,261 23 % Packaged Gas 4,086 2,652 1,147 — 19 7,904 35 % Other 125 37 87 1,921 1,342 3,512 16 % Total $ 8,951 $ 5,585 $ 4,544 $ 1,921 $ 1,494 $ 22,495 100 % Remaining Performance Obligations As described above, Linde's contracts with on-site customers are under long-term supply arrangements which generally require the customer to purchase their requirements from Linde and also have minimum purchase requirements. Additionally, plant sales from the Linde Engineering business are primarily contracted on a fixed price basis. The company estimates the consideration related to future minimum purchase requirements and plant sales was approximately $52 billion (excludes Russian projects which are impacted by sanctions, refer to Note 2). This amount excludes all on-site sales above minimum purchase requirements, which can be significant depending on customer needs. In the future, actual amounts will be different due to impacts from several factors, many of which are beyond the company’s control including, but not limited to, timing of newly signed, terminated and renewed contracts, inflationary price escalations, currency exchange rates, and pass-through costs |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications – Certain prior periods' amounts have been reclassified to conform to the current year’s presentation. |
Russia-Ukraine Conflict and O_2
Russia-Ukraine Conflict and Other Charges (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Summary of Cost Reductions | The following tables summarize the company's pre-tax charges for the nine months ended September 30, 2022: Nine Months Ended September 30, 2022 (millions of dollars) Russia deconsolidation charges Other Russia related charges Total Russia charges Merger-related and other charges Total Americas $ — $ — $ — $ 3 $ 3 EMEA 733 2 735 49 784 APAC — — — 29 29 Engineering 54 112 166 (9) 157 Other — — — 31 31 Total $ 787 $ 114 $ 901 $ 103 $ 1,004 The following table summarizes the activities related to the company's Russia-Ukraine conflict and other charges for the nine months ended September 30, 2022: (millions of dollars) Total Russia charges Severance costs Other cost reduction charges Total cost reduction program related charges Merger-related and other charges Total Balance, December 31, 2021 $ — $ 384 $ 38 $ 422 $ 31 $ 453 2022 Russia-Ukraine conflict and other charges 901 30 16 46 57 1,004 Less: Cash payments / receipts (99) (15) (114) 19 (95) Less: Non-cash charges (901) — (7) (7) (76) (984) Foreign currency translation and other — (41) (5) (46) (3) (49) Balance, September 30, 2022 $ — $ 274 $ 27 $ 301 $ 28 $ 329 |
Supplemental Information (Table
Supplemental Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Information [Abstract] | |
Schedule of Inventories | The following is a summary of Linde's consolidated inventories: (Millions of dollars) September 30, December 31, Inventories Raw materials and supplies $ 477 $ 399 Work in process 321 334 Finished goods 1,057 1,000 Total inventories $ 1,855 $ 1,733 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term And Short-term Debt | The following is a summary of Linde's outstanding debt at September 30, 2022 and December 31, 2021: (Millions of dollars) September 30, December 31, SHORT-TERM Commercial paper $ 2,954 $ 278 Other bank borrowings (primarily non U.S.) 225 885 Total short-term debt 3,179 1,163 LONG-TERM (a) (U.S. dollar denominated unless otherwise noted) 0.250% Euro denominated notes due 2022 (b) (c) — 1,137 2.20% Notes due 2022 (e) — 500 2.70% Notes due 2023 500 500 2.00% Euro denominated notes due 2023 (b) 642 759 5.875% GBP denominated notes due 2023 (b) 345 432 1.20% Euro denominated notes due 2024 539 625 1.875% Euro denominated notes due 2024 (b) 298 356 2.65% Notes due 2025 399 399 1.625% Euro denominated notes due 2025 487 565 0.00% Euro denominated notes due 2026 689 799 3.20% Notes due 2026 725 725 3.434% Notes due 2026 198 197 1.652% Euro denominated notes due 2027 80 94 0.250% Euro denominated notes due 2027 734 850 1.00% Euro denominated notes due 2027 (d) 488 — 1.00% Euro denominated notes due 2028 (b) 689 879 1.10% Notes due 2030 696 696 1.90% Euro denominated notes due 2030 102 118 1.375% Euro denominated notes due 2031 (d) 728 — 0.550% Euro denominated notes due 2032 730 847 0.375% Euro denominated notes due 2033 487 565 1.625% Euro denominated notes due 2035 (d) 773 — 3.55% Notes due 2042 665 664 2.00% Notes due 2050 296 296 1.00% Euro denominated notes due 2051 679 788 Non U.S borrowings 180 243 Other 10 10 12,159 13,044 Less: current portion of long-term debt (1,551) (1,709) Total long-term debt 10,608 11,335 Total debt $ 15,338 $ 14,207 (a) Amounts are net of unamortized discounts, premiums and/or debt issuance costs as applicable. (b) September 30, 2022 and December 31, 2021 included a cumulative $46 million and $42 million adjustment to carrying value, respectively, related to hedge accounting of interest rate swaps. Refer to Note 5. (c) In January 2022, Linde repaid €1.0 billion of 0.250% notes that became due. (d) In March 2022, Linde issued €500 million of 1.000% notes due 2027, €750 million of 1.375% notes due 2031, and €800 million of 1.625% notes due 2035. (e) In May 2022, Linde repaid $500 million of 2.20% notes due in August 2022. There was no impact to interest within the consolidated statements of income. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table is a summary of the notional amount and fair value of derivatives outstanding at September 30, 2022 and December 31, 2021 for consolidated subsidiaries: Fair Value Notional Amounts Assets (a) Liabilities (a) (Millions of dollars) September 30, December 31, September 30, December 31, September 30, December 31, Derivatives Not Designated as Hedging Instruments: Currency contracts: Balance sheet items $ 3,237 $ 4,427 $ 36 $ 22 $ 17 $ 17 Forecasted transactions 471 537 11 6 25 11 Cross-currency swaps 60 148 1 21 2 4 Total $ 3,768 $ 5,112 $ 48 $ 49 $ 44 $ 32 Derivatives Designated as Hedging Instruments: Currency contracts: Forecasted transactions 323 758 10 14 4 3 Commodity contracts N/A N/A 20 49 2 — Interest rate swaps 784 1,251 — 24 59 — Total Hedges $ 1,107 $ 2,009 $ 30 $ 87 $ 65 $ 3 Total Derivatives $ 4,875 $ 7,121 $ 78 $ 136 $ 109 $ 35 (a) Amounts as at September 30, 2022 and December 31, 2021 included current assets of $72 million and $101 million which are recorded in prepaid and other current assets; long-term assets of $6 million and $35 million which are recorded in other long-term assets; current liabilities of $42 million and $27 million which are recorded in other current liabilities; and long-term liabilities of $67 million and $8 million which are recorded in other long-term liabilities. |
Schedule of Derivative Instruments Not Designated as Hedging Instruments Table | The following table summarizes the impact of the company’s derivatives on the consolidated statements of income: Amount of Pre-Tax Gain (Loss) Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2022 2021 2022 2021 Derivatives Not Designated as Hedging Instruments Currency contracts: Balance sheet items Debt-related $ (52) $ (13) $ (42) $ 16 Other balance sheet items 19 2 11 9 Total $ (33) $ (11) $ (31) $ 25 * The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities. Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt items are recorded in the consolidated statements of income as interest expense-net. Other balance sheet items and anticipated net income gains (losses) are generally recorded in the consolidated statements of income as other income (expenses)-net. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table summarizes assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements Using Level 1 Level 2 Level 3 (Millions of dollars) September 30, December 31, September 30, December 31, September 30, December 31, Assets Derivative assets $ — $ — $ 78 $ 136 $ — $ — Investments and securities* 20 42 — — 12 20 Total $ 20 $ 42 $ 78 $ 136 12 $ 20 Liabilities Derivative liabilities $ — $ — $ 109 $ 35 $ — $ — * Investments and securities are recorded in prepaid and other current assets and other long-term assets in the company's condensed consolidated balance sheets. |
Earnings Per Share _ Linde pl_2
Earnings Per Share – Linde plc Shareholders (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic and diluted earnings per share is computed by dividing Income from continuing operations, Income from discontinued operations and Net income – Linde plc for the period by the weighted average number of either basic or diluted shares outstanding, as follows: Quarter Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator (Millions of dollars) Income from continuing operations $ 1,273 $ 978 $ 2,819 $ 2,797 Income from discontinued operations — 1 $ — 3 Net Income – Linde plc $ 1,273 $ 979 $ 2,819 $ 2,800 Denominator (Thousands of shares) Weighted average shares outstanding 496,691 514,770 501,266 518,418 Shares earned and issuable under compensation plans 495 399 477 384 Weighted average shares used in basic earnings per share 497,186 515,169 501,743 518,802 Effect of dilutive securities Stock options and awards 3,965 4,910 4,269 4,860 Weighted average shares used in diluted earnings per share 501,151 520,079 506,012 523,662 Basic earnings per share from continuing operations $ 2.56 $ 1.90 $ 5.62 $ 5.39 Basic earnings per share from discontinued operations — — $ — $ 0.01 Basic Earnings Per Share $ 2.56 $ 1.90 $ 5.62 $ 5.40 Diluted earnings per share from continuing operations $ 2.54 $ 1.88 $ 5.57 $ 5.34 Diluted earnings per share from discontinued operations — — $ — $ 0.01 Diluted Earnings Per Share $ 2.54 $ 1.88 $ 5.57 $ 5.35 |
Retirement Programs (Tables)
Retirement Programs (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits, Description [Abstract] | |
Schedule of Pension and OPEB Net Periodic Benefit Costs | The components of net pension and postretirement benefits other than pensions (“OPEB”) costs for the quarter and nine months ended September 30, 2022 and 2021 are shown below: Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2022 2021 2022 2021 Amount recognized in Operating Profit Service cost $ 31 $ 39 $ 96 $ 118 Amount recognized in Net pension and OPEB cost (benefit), excluding service cost Interest cost 49 41 153 118 Expected return on plan assets (126) (129) (394) (391) Net amortization and deferral 18 39 56 126 Settlement charge (a) 6 4 6 4 (53) (45) (179) (143) Net periodic benefit cost (benefit) $ (22) $ (6) $ (83) $ (25) |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, Sales Table | The table below presents sales and operating profit information about reportable segments and Other for the quarter and nine months ended September 30, 2022 and 2021. Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2022 2021 2022 2021 SALES (a) Americas $ 3,694 $ 3,091 $ 10,453 $ 8,951 EMEA 2,125 1,911 6,417 5,585 APAC 1,660 1,564 4,913 4,544 Engineering 828 601 2,200 1,921 Other 490 501 1,482 1,494 Total sales $ 8,797 $ 7,668 $ 25,465 $ 22,495 Quarter Ended September 30, Nine Months Ended September 30, (Millions of dollars) 2022 2021 2022 2021 SEGMENT OPERATING PROFIT Americas $ 974 $ 859 $ 2,788 $ 2,525 EMEA 465 476 1,504 1,414 APAC 429 382 1,254 1,122 Engineering 150 106 398 323 Other (8) (13) (41) (49) Segment operating profit 2,010 1,810 5,903 5,335 Russia-Ukraine conflict and other charges (Note 2) (15) (26) (1,004) (222) Purchase accounting impacts - Linde AG (382) (492) (1,217) (1,466) Total operating profit $ 1,613 $ 1,292 $ 3,682 $ 3,647 (a) Sales reflect external sales only. Intersegment sales, primarily from Engineering to the industrial gases segments, were $251 million and $728 million for the quarter and nine months ended September 30, 2022, respectively, and $243 million and $666 million for the respective 2021 periods. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Summary of Changes in Total Equity | A summary of the changes in total equity for the quarter and nine months ended September 30, 2022 and 2021 is provided below: Quarter Ended September 30, (Millions of dollars) 2022 2021 Activity Linde plc Noncontrolling Total Linde plc Noncontrolling Total Balance, beginning of period $ 39,674 $ 1,353 $ 41,027 $ 45,777 $ 1,438 $ 47,215 Net income (a) 1,273 27 1,300 979 31 1,010 Other comprehensive income (loss) (1,628) (40) (1,668) (710) (13) (723) Noncontrolling interests: Additions (reductions) — (7) (7) — (15) (15) Dividends and other capital changes — (35) (35) — (40) (40) Dividends to Linde plc ordinary share holders ($1.17 per share in 2022 and $1.06 per share in 2021) (581) — (581) (546) — (546) Issuances of ordinary shares: For employee savings and incentive plans 7 — 7 (1) — (1) Purchases of ordinary shares (1,144) — (1,144) (1,208) — (1,208) Share-based compensation 27 — 27 32 — 32 Balance, end of period $ 37,628 $ 1,298 $ 38,926 $ 44,323 $ 1,401 $ 45,724 Nine Months Ended September 30, (Millions of dollars) 2022 2021 Activity Linde plc Noncontrolling Total Linde plc Noncontrolling Total Balance, beginning of period $ 44,035 $ 1,393 $ 45,428 $ 47,317 $ 2,252 $ 49,569 Net income (a) 2,819 101 2,920 2,800 105 2,905 Other comprehensive income (loss) (3,046) (69) (3,115) (928) (10) (938) Noncontrolling interests: Additions (reductions) (b) — (56) (56) — (861) (861) Dividends and other capital changes — (71) (71) — (85) (85) Dividends to Linde plc ordinary share holders ($3.51 per share in 2022 and $3.18 per share in 2021) (1,758) — (1,758) (1,648) — (1,648) Issuances of ordinary shares: For employee savings and incentive plans (32) — (32) (12) — (12) Purchases of ordinary shares (4,468) — (4,468) (3,301) — (3,301) Share-based compensation 78 — 78 95 — 95 Balance, end of period $ 37,628 $ 1,298 $ 38,926 $ 44,323 $ 1,401 $ 45,724 (a) Net income for noncontrolling interests excludes net income related to redeemable noncontrolling interests which is not significant for the quarter and nine months ended September 30, 2022 and 2021 and which is not part of total equity. |
Summary of Components of AOCI | The components of AOCI are as follows: September 30, December 31, (Millions of dollars) 2022 2021 Cumulative translation adjustment - net of taxes: Americas $ (4,087) $ (3,985) EMEA (2,625) 94 APAC (1,514) 154 Engineering (626) 24 Other 1,534 (280) (7,318) (3,993) Derivatives - net of taxes 151 75 Pension / OPEB (net of $258 million and $305 million tax benefit in September 30, 2022 and December 31, 2021, respectively) (927) (1,130) $ (8,094) $ (5,048) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue by Distribution Method | The following tables show sales by distribution method at the consolidated level and for each reportable segment and Other for the third quarter and nine months ended September 30, 2022 and September 30, 2021. (Millions of dollars) Quarter Ended September 30, 2022 Sales Americas EMEA APAC Engineering Other Total % Merchant $ 986 $ 620 $ 593 $ — $ 43 $ 2,242 25 % On-Site 1,178 651 605 — — 2,434 28 % Packaged Gas 1,478 841 403 — 21 2,743 31 % Other 52 13 59 828 426 1,378 16 % Total $ 3,694 $ 2,125 $ 1,660 $ 828 $ 490 $ 8,797 100 % (Millions of dollars) Quarter Ended September 30, 2021 Sales Americas EMEA APAC Engineering Other Total % Merchant $ 849 $ 559 $ 563 $ — $ 38 $ 2,009 26 % On-Site 836 462 578 — — 1,876 24 % Packaged Gas 1,385 880 394 — 7 2,666 35 % Other 21 10 29 601 456 1,117 15 % Total $ 3,091 $ 1,911 $ 1,564 $ 601 $ 501 $ 7,668 100 % (Millions of dollars) Nine Months Ended September 30, 2022 Sales Americas EMEA APAC Engineering Other Total % Merchant $ 2,801 $ 1,868 $ 1,671 $ — $ 122 $ 6,462 25 % On-Site 3,110 1,892 1,891 — — 6,893 27 % Packaged Gas 4,383 2,616 1,153 — 37 8,189 32 % Other 159 41 198 2,200 1,323 3,921 15 % Total $ 10,453 $ 6,417 $ 4,913 $ 2,200 $ 1,482 $ 25,465 100 % (Millions of dollars) Nine Months Ended September 30, 2021 Sales Americas EMEA APAC Engineering Other Total % Merchant $ 2,441 $ 1,646 $ 1,598 $ — $ 133 $ 5,818 26 % On-Site 2,299 1,250 1,712 — — 5,261 23 % Packaged Gas 4,086 2,652 1,147 — 19 7,904 35 % Other 125 37 87 1,921 1,342 3,512 16 % Total $ 8,951 $ 5,585 $ 4,544 $ 1,921 $ 1,494 $ 22,495 100 % |
Russia-Ukraine Conflict and O_3
Russia-Ukraine Conflict and Other Charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Russia-Ukraine conflict and other charges | $ 15 | $ 26 | $ 1,004 | $ 222 | ||
Russia-Ukraine conflict, cost reduction programs, and other charges, after-tax and noncontrolling interest | 10 | 58 | 878 | 228 | ||
Income tax expense | 391 | 321 | 1,046 | 923 | ||
GIST | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Consideration received | $ 292 | 292 | 292 | |||
Cash consideration | 184 | |||||
Consideration receivable | 108 | 108 | 108 | |||
Loss on disposal | 21 | |||||
After tax benefit from loss on disposal | $ 3 | |||||
Russia-Ukraine Conflict | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Russia-Ukraine conflict and other charges | 901 | |||||
Cost Reduction Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Russia-Ukraine conflict and other charges | 46 | |||||
Cost reduction program charges | 29 | 277 | ||||
Cost reduction program charges, net of tax | 25 | 209 | ||||
Deconsolidation | Russia-Ukraine Conflict | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Russia-Ukraine conflict and other charges | $ 787 | 787 | ||||
Russia-Ukraine conflict, cost reduction programs, and other charges, after-tax and noncontrolling interest | $ 730 | |||||
Loss on deconsolidation of Russian subsidiaries | 407 | |||||
Receivables write-off | 380 | |||||
Other cost reduction charges | Russia-Ukraine Conflict | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Russia-Ukraine conflict and other charges | 114 | |||||
Russia-Ukraine conflict, cost reduction programs, and other charges, after-tax and noncontrolling interest | 84 | |||||
Other cost reduction charges | Cost Reduction Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Russia-Ukraine conflict and other charges | 9 | 16 | 49 | |||
Merger-related and other charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Russia-Ukraine conflict and other charges | $ 15 | 103 | ||||
Severance costs | Cost Reduction Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Russia-Ukraine conflict and other charges | 20 | 30 | 228 | |||
Merger-related and other charges | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Russia-Ukraine conflict and other charges | (3) | $ 57 | (55) | |||
Other charges, merger related, net of tax expense (benefit) | 33 | (19) | ||||
Gain triggered by a joint venture deconsolidation | 52 | |||||
Income tax expense | 38 | |||||
Income tax increase from change in enacted tax rate | 81 | 81 | ||||
Tax settlement benefit | 33 | 33 | ||||
Impairment charge | 35 | 35 | ||||
Impairment charge, net of tax | $ 35 | $ 35 |
Russia-Ukraine Conflict and O_4
Russia-Ukraine Conflict and Other Charges - Schedule of Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | $ 15 | $ 26 | $ 1,004 | $ 222 | |
Total Russia charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 901 | ||||
Russia deconsolidation charges | Total Russia charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | $ 787 | 787 | |||
Other Russia related charges | Total Russia charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 114 | ||||
Merger-related and other charges | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | $ 15 | 103 | |||
Operating Segments | Americas | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 3 | ||||
Operating Segments | EMEA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 784 | ||||
Operating Segments | APAC | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 29 | ||||
Operating Segments | Engineering | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 157 | ||||
Operating Segments | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 31 | ||||
Operating Segments | Total Russia charges | Americas | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 0 | ||||
Operating Segments | Total Russia charges | EMEA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 735 | ||||
Operating Segments | Total Russia charges | APAC | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 0 | ||||
Operating Segments | Total Russia charges | Engineering | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 166 | ||||
Operating Segments | Total Russia charges | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 0 | ||||
Operating Segments | Russia deconsolidation charges | Total Russia charges | Americas | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 0 | ||||
Operating Segments | Russia deconsolidation charges | Total Russia charges | EMEA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 733 | ||||
Operating Segments | Russia deconsolidation charges | Total Russia charges | APAC | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 0 | ||||
Operating Segments | Russia deconsolidation charges | Total Russia charges | Engineering | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 54 | ||||
Operating Segments | Russia deconsolidation charges | Total Russia charges | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 0 | ||||
Operating Segments | Other Russia related charges | Total Russia charges | Americas | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 0 | ||||
Operating Segments | Other Russia related charges | Total Russia charges | EMEA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 2 | ||||
Operating Segments | Other Russia related charges | Total Russia charges | APAC | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 0 | ||||
Operating Segments | Other Russia related charges | Total Russia charges | Engineering | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 112 | ||||
Operating Segments | Other Russia related charges | Total Russia charges | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 0 | ||||
Operating Segments | Merger-related and other charges | Americas | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 3 | ||||
Operating Segments | Merger-related and other charges | EMEA | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 49 | ||||
Operating Segments | Merger-related and other charges | APAC | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | 29 | ||||
Operating Segments | Merger-related and other charges | Engineering | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | (9) | ||||
Operating Segments | Merger-related and other charges | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Russia-Ukraine conflict and other charges | $ 31 |
Russia-Ukraine Conflict and O_5
Russia-Ukraine Conflict and Other Charges - Summary of Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Reserve [Roll Forward] | ||||
Balance, December 31, 2021 | $ 453 | |||
2022 Russia-Ukraine conflict and other charges | $ 15 | $ 26 | 1,004 | $ 222 |
Less: Cash payments / receipts | (95) | |||
Less: Non-cash charges | (984) | |||
Foreign currency translation and other | (49) | |||
Balance, September 30, 2022 | 329 | 329 | ||
Cost Reduction Program | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, December 31, 2021 | 422 | |||
2022 Russia-Ukraine conflict and other charges | 46 | |||
Less: Cash payments / receipts | (114) | |||
Less: Non-cash charges | (7) | |||
Foreign currency translation and other | (46) | |||
Balance, September 30, 2022 | 301 | 301 | ||
Total Russia charges | Cost Reduction Program | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, December 31, 2021 | 0 | |||
2022 Russia-Ukraine conflict and other charges | 901 | |||
Less: Cash payments / receipts | ||||
Less: Non-cash charges | (901) | |||
Foreign currency translation and other | 0 | |||
Balance, September 30, 2022 | 0 | 0 | ||
Severance costs | Cost Reduction Program | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, December 31, 2021 | 384 | |||
2022 Russia-Ukraine conflict and other charges | 20 | 30 | 228 | |
Less: Cash payments / receipts | (99) | |||
Less: Non-cash charges | 0 | |||
Foreign currency translation and other | (41) | |||
Balance, September 30, 2022 | 274 | 274 | ||
Other cost reduction charges | Cost Reduction Program | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, December 31, 2021 | 38 | |||
2022 Russia-Ukraine conflict and other charges | 9 | 16 | 49 | |
Less: Cash payments / receipts | (15) | |||
Less: Non-cash charges | (7) | |||
Foreign currency translation and other | (5) | |||
Balance, September 30, 2022 | 27 | 27 | ||
Merger-related and other charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance, December 31, 2021 | 31 | |||
2022 Russia-Ukraine conflict and other charges | $ (3) | 57 | $ (55) | |
Less: Cash payments / receipts | 19 | |||
Less: Non-cash charges | (76) | |||
Foreign currency translation and other | (3) | |||
Balance, September 30, 2022 | $ 28 | $ 28 |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Supplemental Information [Abstract] | |||
Gross receivables aged less than one year | $ 4,574 | $ 4,425 | |
Gross receivables aged greater than one year | 285 | 329 | |
Other receivables | 117 | 150 | |
Accounts receivable - net | 4,599 | 4,499 | |
Allowance for credit loss | 377 | 405 | |
Provisions for expected credit losses | 112 | $ 101 | |
Inventories | |||
Raw materials and supplies | 477 | 399 | |
Work in process | 321 | 334 | |
Finished goods | 1,057 | 1,000 | |
Total inventories | $ 1,855 | $ 1,733 |
Debt - Long-term And Short-term
Debt - Long-term And Short-term Debt (Details) € in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
May 31, 2022 USD ($) | Jan. 31, 2022 EUR (€) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2022 EUR (€) | |
SHORT-TERM | ||||||
Commercial paper | $ 2,954 | $ 278 | ||||
Other bank borrowings (primarily non U.S.) | 225 | 885 | ||||
Total short-term debt | 3,179 | 1,163 | ||||
LONG-TERM | ||||||
Carrying Value | 12,159 | 13,044 | ||||
Less: current portion of long-term debt | (1,551) | (1,709) | ||||
Total long-term debt | 10,608 | 11,335 | ||||
Total debt | 15,338 | 14,207 | ||||
Repayments of long-term debt | $ 1,725 | $ 821 | ||||
0.250% Euro denominated notes due 2022 | ||||||
LONG-TERM | ||||||
Interest rate | 0.25% | 0.25% | ||||
Carrying Value | $ 0 | 1,137 | ||||
Repayments of long-term debt | € | € 1,000 | |||||
2.20% Notes due 2022 | ||||||
LONG-TERM | ||||||
Interest rate | 2.20% | 2.20% | ||||
Carrying Value | $ 0 | 500 | ||||
Repayments of long-term debt | $ 500 | |||||
2.70% Notes due 2023 | ||||||
LONG-TERM | ||||||
Interest rate | 2.70% | |||||
Carrying Value | $ 500 | 500 | ||||
2.00% Euro denominated notes due 2023 | ||||||
LONG-TERM | ||||||
Interest rate | 2% | |||||
Carrying Value | $ 642 | 759 | ||||
5.875% GBP denominated notes due 2023 | ||||||
LONG-TERM | ||||||
Interest rate | 5.875% | |||||
Carrying Value | $ 345 | 432 | ||||
1.20% Euro denominated notes due 2024 | ||||||
LONG-TERM | ||||||
Interest rate | 1.20% | |||||
Carrying Value | $ 539 | 625 | ||||
1.875% Euro denominated notes due 2024 | ||||||
LONG-TERM | ||||||
Interest rate | 1.875% | |||||
Carrying Value | $ 298 | 356 | ||||
2.65% Notes due 2025 | ||||||
LONG-TERM | ||||||
Interest rate | 2.65% | |||||
Carrying Value | $ 399 | 399 | ||||
1.625% Euro denominated notes due 2025 | ||||||
LONG-TERM | ||||||
Interest rate | 1.625% | |||||
Carrying Value | $ 487 | 565 | ||||
0.00% Euro denominated notes due 2026 | ||||||
LONG-TERM | ||||||
Interest rate | 0% | |||||
Carrying Value | $ 689 | 799 | ||||
3.20% Notes due 2026 | ||||||
LONG-TERM | ||||||
Interest rate | 3.20% | |||||
Carrying Value | $ 725 | 725 | ||||
3.434% Notes due 2026 | ||||||
LONG-TERM | ||||||
Interest rate | 3.434% | |||||
Carrying Value | $ 198 | 197 | ||||
1.652% Euro denominated notes due 2027 | ||||||
LONG-TERM | ||||||
Interest rate | 1.652% | |||||
Carrying Value | $ 80 | 94 | ||||
0.250% Euro denominated notes due 2027 | ||||||
LONG-TERM | ||||||
Interest rate | 0.25% | |||||
Carrying Value | $ 734 | 850 | ||||
1.00% Euro denominated notes due 2027 | ||||||
LONG-TERM | ||||||
Interest rate | 1% | 1% | ||||
Carrying Value | $ 488 | 0 | ||||
Debt instrument face amount | € | € 500 | |||||
1.00% Euro denominated notes due 2028 | ||||||
LONG-TERM | ||||||
Interest rate | 1% | |||||
Carrying Value | $ 689 | 879 | ||||
1.10% Notes due 2030 | ||||||
LONG-TERM | ||||||
Interest rate | 1.10% | |||||
Carrying Value | $ 696 | 696 | ||||
1.90% Euro denominated notes due 2030 | ||||||
LONG-TERM | ||||||
Interest rate | 1.90% | |||||
Carrying Value | $ 102 | 118 | ||||
1.375% Euro denominated notes due 2031 | ||||||
LONG-TERM | ||||||
Interest rate | 1.375% | 1.375% | ||||
Carrying Value | $ 728 | 0 | ||||
Debt instrument face amount | € | € 750 | |||||
0.550% Euro denominated notes due 2032 | ||||||
LONG-TERM | ||||||
Interest rate | 0.55% | |||||
Carrying Value | $ 730 | 847 | ||||
0.375% Euro denominated notes due 2033 | ||||||
LONG-TERM | ||||||
Interest rate | 0.375% | |||||
Carrying Value | $ 487 | 565 | ||||
1.625% Euro denominated notes due 2035 | ||||||
LONG-TERM | ||||||
Interest rate | 1.625% | 1.625% | ||||
Carrying Value | $ 773 | 0 | ||||
Debt instrument face amount | € | € 800 | |||||
3.55% Notes due 2042 | ||||||
LONG-TERM | ||||||
Interest rate | 3.55% | |||||
Carrying Value | $ 665 | 664 | ||||
2.00% Notes due 2050 | ||||||
LONG-TERM | ||||||
Interest rate | 2% | |||||
Carrying Value | $ 296 | 296 | ||||
1.00% Euro denominated notes due 2051 | ||||||
LONG-TERM | ||||||
Interest rate | 1% | |||||
Carrying Value | $ 679 | 788 | ||||
Non U.S borrowings | ||||||
LONG-TERM | ||||||
Carrying Value | 180 | 243 | ||||
Other | ||||||
LONG-TERM | ||||||
Carrying Value | 10 | 10 | ||||
Derivatives Designated as Hedging Instruments: | Fair Value Hedging | Interest Rate Swap | ||||||
LONG-TERM | ||||||
Fair value increase (decrease) in debt related to hedge accounting | $ (46) | $ 42 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Borrowings outstanding | $ 3,179,000,000 | $ 1,163,000,000 |
Credit Agreement | Unsecured Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Unsecured revolving credit agreement | 5,000,000,000 | |
Borrowings outstanding | $ 0 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) $ in Millions, € in Billions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) contract | Sep. 30, 2022 EUR (€) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Derivative [Line Items] | |||||
Different types of derivative, number | contract | 3 | ||||
Cumulative translation adjustment - net of taxes | $ 7,318 | $ 3,993 | |||
Net Investment Hedging | |||||
Derivative [Line Items] | |||||
Exchange rate movements reducing long-term debt since inception | $ 512 | $ 1,051 | |||
Cumulative translation adjustment - net of taxes | 42 | ||||
Line of Credit | |||||
Derivative [Line Items] | |||||
Intercompany Euro-denominated credit facility loan | € 7.5 | $ 7,500 | |||
Line of Credit | Net Investment Hedging | |||||
Derivative [Line Items] | |||||
Exchange rate movements reducing long-term debt since inception | $ 1,191 |
Financial Instruments - Schedul
Financial Instruments - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Notional Amounts | $ 4,875 | $ 7,121 |
Fair Value, Assets | 78 | 136 |
Fair Value, Liabilities | 109 | 35 |
Prepaid and other current assets | ||
Derivative [Line Items] | ||
Fair Value, Assets | 72 | 101 |
Other long-term assets | ||
Derivative [Line Items] | ||
Fair Value, Assets | 6 | 35 |
Other current liabilities | ||
Derivative [Line Items] | ||
Fair Value, Liabilities | 42 | 27 |
Other long-term liabilities | ||
Derivative [Line Items] | ||
Fair Value, Liabilities | 67 | 8 |
Derivatives Not Designated as Hedging Instruments: | ||
Derivative [Line Items] | ||
Notional Amounts | 3,768 | 5,112 |
Fair Value, Assets | 48 | 49 |
Fair Value, Liabilities | 44 | 32 |
Derivatives Not Designated as Hedging Instruments: | Balance sheet items | ||
Derivative [Line Items] | ||
Notional Amounts | 3,237 | 4,427 |
Fair Value, Assets | 36 | 22 |
Fair Value, Liabilities | 17 | 17 |
Derivatives Not Designated as Hedging Instruments: | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amounts | 471 | 537 |
Fair Value, Assets | 11 | 6 |
Fair Value, Liabilities | 25 | 11 |
Derivatives Not Designated as Hedging Instruments: | Cross-currency swaps | ||
Derivative [Line Items] | ||
Notional Amounts | 60 | 148 |
Fair Value, Assets | 1 | 21 |
Fair Value, Liabilities | 2 | 4 |
Derivatives Designated as Hedging Instruments: | ||
Derivative [Line Items] | ||
Notional Amounts | 1,107 | 2,009 |
Fair Value, Assets | 30 | 87 |
Fair Value, Liabilities | 65 | 3 |
Derivatives Designated as Hedging Instruments: | Forecasted transactions | ||
Derivative [Line Items] | ||
Notional Amounts | 323 | 758 |
Fair Value, Assets | 10 | 14 |
Fair Value, Liabilities | 4 | 3 |
Derivatives Designated as Hedging Instruments: | Commodity contracts | ||
Derivative [Line Items] | ||
Fair Value, Assets | 20 | 49 |
Fair Value, Liabilities | 2 | 0 |
Derivatives Designated as Hedging Instruments: | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amounts | 784 | 1,251 |
Fair Value, Assets | 0 | 24 |
Fair Value, Liabilities | $ 59 | $ 0 |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Derivative Instruments Not Designated as Hedging Instruments Table (Details) - Derivatives Not Designated as Hedging Instruments: - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments | $ (33) | $ (11) | $ (31) | $ 25 |
Debt-related | ||||
Derivative [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments | (52) | (13) | (42) | 16 |
Other balance sheet items | ||||
Derivative [Line Items] | ||||
Derivatives Not Designated as Hedging Instruments | $ 19 | $ 2 | $ 11 | $ 9 |
Fair Value Disclosures - Schedu
Fair Value Disclosures - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Derivative assets | $ 78 | $ 136 |
Liabilities | ||
Derivative liabilities | 109 | 35 |
Level 1 | Fair Value, Measurements, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Investments and securities | 20 | 42 |
Total | 20 | 42 |
Liabilities | ||
Derivative liabilities | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Assets | ||
Derivative assets | 78 | 136 |
Investments and securities | 0 | 0 |
Total | 78 | 136 |
Liabilities | ||
Derivative liabilities | 109 | 35 |
Level 3 | Fair Value, Measurements, Recurring | ||
Assets | ||
Derivative assets | 0 | 0 |
Investments and securities | 12 | 20 |
Total | 12 | 20 |
Liabilities | ||
Derivative liabilities | $ 0 | $ 0 |
Fair Value Disclosures - Narrat
Fair Value Disclosures - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Carrying value | $ 12,159 | $ 13,044 |
Level 2 | ||
Debt Instrument [Line Items] | ||
Estimated fair value of long-term debt portfolio | $ 10,298 | $ 13,219 |
Earnings Per Share _ Linde pl_3
Earnings Per Share – Linde plc Shareholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator (Millions of dollars) | ||||
Income from continuing operations | $ 1,273 | $ 978 | $ 2,819 | $ 2,797 |
Income from discontinued operations | 0 | 1 | 0 | 3 |
Net Income – Linde plc | $ 1,273 | $ 979 | $ 2,819 | $ 2,800 |
Denominator (Thousands of shares) | ||||
Weighted average shares outstanding (in shares) | 496,691 | 514,770 | 501,266 | 518,418 |
Shares earned and issuable under compensation plans (in shares) | 495 | 399 | 477 | 384 |
Weighted average shares used in basic earnings per share (in shares) | 497,186 | 515,169 | 501,743 | 518,802 |
Effect of dilutive securities | ||||
Stock options and awards (in shares) | 3,965 | 4,910 | 4,269 | 4,860 |
Weighted average shares used in diluted earnings per share (in shares) | 501,151 | 520,079 | 506,012 | 523,662 |
Basic earnings per share from continuing operations (in dollars per share) | $ 2.56 | $ 1.90 | $ 5.62 | $ 5.39 |
Basic earnings per share from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.01 |
Basic earnings per share (in dollars per share) | 2.56 | 1.90 | 5.62 | 5.40 |
Diluted earnings per share from continuing operations (in dollars per share) | 2.54 | 1.88 | 5.57 | 5.34 |
Diluted earnings per share from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.01 |
Diluted earnings per share (in dollars per share) | $ 2.54 | $ 1.88 | $ 5.57 | $ 5.35 |
Antidilutive shares excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 0 |
Retirement Programs - Schedule
Retirement Programs - Schedule of Pension and OPEB Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Amount recognized in Operating Profit | ||||
Service cost | $ 31 | $ 39 | $ 96 | $ 118 |
Amount recognized in Net pension and OPEB cost (benefit), excluding service cost | ||||
Interest cost | 49 | 41 | 153 | 118 |
Expected return on plan assets | (126) | (129) | (394) | (391) |
Net amortization and deferral | 18 | 39 | 56 | 126 |
Settlement charge | 6 | 4 | 6 | 4 |
Net pension and OPEB cost (benefit) | (53) | (45) | (179) | (143) |
Net periodic benefit cost (benefit) | (22) | (6) | $ (83) | $ (25) |
Settlement charge, after tax | $ 5 | $ 3 |
Retirement Programs - Narrative
Retirement Programs - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Retirement Benefits, Description [Abstract] | ||
Required contributions to pension plans | $ 50 | |
Pension contributions | $ 44 | $ 32 |
Commitments and Contingencies (
Commitments and Contingencies (Details) R$ in Millions, $ in Millions | Sep. 01, 2010 USD ($) company | Sep. 30, 2022 USD ($) | Apr. 23, 2019 € / shares | Apr. 08, 2019 shares | Sep. 01, 2010 BRL (R$) |
Other Commitments [Line Items] | |||||
Brazil tax matters estimated exposure | $ | $ 215 | ||||
Number of industrial gas companies involved in the matter | company | 5 | ||||
White Martins | |||||
Other Commitments [Line Items] | |||||
Initial CADE civil fine imposed | $ 407 | R$ 2200 | |||
Revised CADE civil fine | 314 | 1,700 | |||
MG Industries GmbH | |||||
Other Commitments [Line Items] | |||||
Initial CADE civil fine imposed | 44 | 237 | |||
Revised CADE civil fine | $ 35 | R$ 188 | |||
Linde AG | |||||
Other Commitments [Line Items] | |||||
Common stock tendered (in shares) | shares | 14,763,113 | ||||
Linde AG | Squeeze-Out Transaction | |||||
Other Commitments [Line Items] | |||||
Cash consideration per share | € / shares | € 189.46 |
Segments (Details)
Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total segment sales | $ 8,797 | $ 7,668 | $ 25,465 | $ 22,495 |
Total operating profit | 1,613 | 1,292 | 3,682 | 3,647 |
Russia-Ukraine conflict and other charges (Note 2) | (15) | (26) | (1,004) | (222) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 8,797 | 7,668 | 25,465 | 22,495 |
Total operating profit | 2,010 | 1,810 | 5,903 | 5,335 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Russia-Ukraine conflict and other charges (Note 2) | (15) | (26) | (1,004) | (222) |
Purchase accounting impacts - Linde AG | (382) | (492) | (1,217) | (1,466) |
Americas | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 3,694 | 3,091 | 10,453 | 8,951 |
Americas | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 3,694 | 3,091 | 10,453 | 8,951 |
Total operating profit | 974 | 859 | 2,788 | 2,525 |
Russia-Ukraine conflict and other charges (Note 2) | (3) | |||
EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 2,125 | 1,911 | 6,417 | 5,585 |
EMEA | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 2,125 | 1,911 | 6,417 | 5,585 |
Total operating profit | 465 | 476 | 1,504 | 1,414 |
Russia-Ukraine conflict and other charges (Note 2) | (784) | |||
APAC | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 1,660 | 1,564 | 4,913 | 4,544 |
APAC | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 1,660 | 1,564 | 4,913 | 4,544 |
Total operating profit | 429 | 382 | 1,254 | 1,122 |
Russia-Ukraine conflict and other charges (Note 2) | (29) | |||
Engineering | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 828 | 601 | 2,200 | 1,921 |
Engineering | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 828 | 601 | 2,200 | 1,921 |
Total operating profit | 150 | 106 | 398 | 323 |
Russia-Ukraine conflict and other charges (Note 2) | (157) | |||
Engineering | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | (251) | (243) | (728) | (666) |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 490 | 501 | 1,482 | 1,494 |
Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total segment sales | 490 | 501 | 1,482 | 1,494 |
Total operating profit | $ (8) | $ (13) | (41) | $ (49) |
Russia-Ukraine conflict and other charges (Note 2) | $ (31) |
Equity - Schedule of Stockholde
Equity - Schedule of Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, beginning of period | $ 41,027 | $ 47,215 | $ 45,428 | $ 49,569 |
Net income | 1,300 | 1,010 | 2,920 | 2,905 |
Other comprehensive income (loss) | (1,668) | (723) | (3,115) | (938) |
Noncontrolling interests: | ||||
Additions (reductions) | (7) | (15) | (56) | (861) |
Dividends and other capital changes | (35) | (40) | (71) | (85) |
Dividends to Linde plc ordinary share holders | (581) | (546) | (1,758) | (1,648) |
Issuances of ordinary shares: | ||||
For employee savings and incentive plans | 7 | (1) | (32) | (12) |
Purchases of ordinary shares | (1,144) | (1,208) | (4,468) | (3,301) |
Share-based compensation | 27 | 32 | 78 | 95 |
Balance, end of period | $ 38,926 | $ 45,724 | $ 38,926 | $ 45,724 |
Dividends paid (in dollars per share) | $ 1.17 | $ 1.06 | $ 3.51 | $ 3.18 |
Linde plc Shareholders’ Equity | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, beginning of period | $ 39,674 | $ 45,777 | $ 44,035 | $ 47,317 |
Net income | 1,273 | 979 | 2,819 | 2,800 |
Other comprehensive income (loss) | (1,628) | (710) | (3,046) | (928) |
Noncontrolling interests: | ||||
Additions (reductions) | 0 | 0 | 0 | 0 |
Dividends and other capital changes | 0 | 0 | 0 | 0 |
Dividends to Linde plc ordinary share holders | (581) | (546) | (1,758) | (1,648) |
Issuances of ordinary shares: | ||||
For employee savings and incentive plans | 7 | (1) | (32) | (12) |
Purchases of ordinary shares | (1,144) | (1,208) | (4,468) | (3,301) |
Share-based compensation | 27 | 32 | 78 | 95 |
Balance, end of period | 37,628 | 44,323 | 37,628 | 44,323 |
Noncontrolling Interests | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Balance, beginning of period | 1,353 | 1,438 | 1,393 | 2,252 |
Net income | 27 | 31 | 101 | 105 |
Other comprehensive income (loss) | (40) | (13) | (69) | (10) |
Noncontrolling interests: | ||||
Additions (reductions) | (7) | (15) | (56) | (861) |
Dividends and other capital changes | (35) | (40) | (71) | (85) |
Dividends to Linde plc ordinary share holders | 0 | 0 | 0 | 0 |
Issuances of ordinary shares: | ||||
For employee savings and incentive plans | 0 | 0 | 0 | 0 |
Purchases of ordinary shares | 0 | 0 | 0 | 0 |
Share-based compensation | 0 | 0 | 0 | 0 |
Balance, end of period | $ 1,298 | $ 1,401 | $ 1,298 | $ 1,401 |
Equity - Schedule of Accumulate
Equity - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Cumulative translation adjustment - net of taxes | $ (7,318) | $ (3,993) |
Derivatives - net of taxes | 151 | 75 |
Pension / OPEB (net of $258 million and $305 million tax benefit in September 30, 2022 and December 31, 2021, respectively) | (927) | (1,130) |
Accumulated other comprehensive income (loss) | (8,094) | (5,048) |
Pension / OPEB funded status obligation, tax benefit | 258 | 305 |
Americas | ||
Segment Reporting Information [Line Items] | ||
Cumulative translation adjustment - net of taxes | (4,087) | (3,985) |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Cumulative translation adjustment - net of taxes | (2,625) | 94 |
APAC | ||
Segment Reporting Information [Line Items] | ||
Cumulative translation adjustment - net of taxes | (1,514) | 154 |
Engineering | ||
Segment Reporting Information [Line Items] | ||
Cumulative translation adjustment - net of taxes | (626) | 24 |
Other | ||
Segment Reporting Information [Line Items] | ||
Cumulative translation adjustment - net of taxes | $ 1,534 | $ (280) |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Contract assets | $ 104 | $ 134 |
Contract liabilities | 3,799 | 3,699 |
Contract liabilities, current | 2,902 | 2,940 |
Contract liabilities in other long-term liabilities | 897 | $ 759 |
Revenue recognized | 1,085 | |
Estimated consideration related to unsatisfied performance obligations | $ 52,000 | |
Long-term supply contracts | 20 years | |
Engineering | Russia | Russia-Ukraine Conflict, International Sanctions | ||
Disaggregation of Revenue [Line Items] | ||
Contract liabilities | $ 1,800 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | ||
Disaggregation of Revenue [Line Items] | ||
Remaining performance obligations, period | 5 years | |
Remaining performance obligation, percentage | 50% | |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
On-site product supply contract | 10 years | |
Minimum | Merchant | ||
Disaggregation of Revenue [Line Items] | ||
Customer supply agreements | 3 years | |
Minimum | Packaged Gas | ||
Disaggregation of Revenue [Line Items] | ||
Customer supply agreements | 1 year | |
Maximum | ||
Disaggregation of Revenue [Line Items] | ||
On-site product supply contract | 20 years | |
Maximum | Merchant | ||
Disaggregation of Revenue [Line Items] | ||
Customer supply agreements | 7 years | |
Maximum | Packaged Gas | ||
Disaggregation of Revenue [Line Items] | ||
Customer supply agreements | 3 years |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue by Distribution Method (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | $ 8,797 | $ 7,668 | $ 25,465 | $ 22,495 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 3,694 | 3,091 | 10,453 | 8,951 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 2,125 | 1,911 | 6,417 | 5,585 |
APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 1,660 | 1,564 | 4,913 | 4,544 |
Engineering | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 828 | 601 | 2,200 | 1,921 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 490 | 501 | 1,482 | 1,494 |
Merchant | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 2,242 | 2,009 | 6,462 | 5,818 |
Merchant | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 986 | 849 | 2,801 | 2,441 |
Merchant | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 620 | 559 | 1,868 | 1,646 |
Merchant | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 593 | 563 | 1,671 | 1,598 |
Merchant | Engineering | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 0 | 0 | 0 | 0 |
Merchant | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 43 | 38 | 122 | 133 |
On-Site | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 2,434 | 1,876 | 6,893 | 5,261 |
On-Site | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 1,178 | 836 | 3,110 | 2,299 |
On-Site | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 651 | 462 | 1,892 | 1,250 |
On-Site | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 605 | 578 | 1,891 | 1,712 |
On-Site | Engineering | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 0 | 0 | 0 | 0 |
On-Site | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 0 | 0 | 0 | 0 |
Packaged Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 2,743 | 2,666 | 8,189 | 7,904 |
Packaged Gas | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 1,478 | 1,385 | 4,383 | 4,086 |
Packaged Gas | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 841 | 880 | 2,616 | 2,652 |
Packaged Gas | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 403 | 394 | 1,153 | 1,147 |
Packaged Gas | Engineering | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 0 | 0 | 0 | 0 |
Packaged Gas | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 21 | 7 | 37 | 19 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 1,378 | 1,117 | 3,921 | 3,512 |
Other | Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 52 | 21 | 159 | 125 |
Other | EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 13 | 10 | 41 | 37 |
Other | APAC | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 59 | 29 | 198 | 87 |
Other | Engineering | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | 828 | 601 | 2,200 | 1,921 |
Other | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total segment sales | $ 426 | $ 456 | $ 1,323 | $ 1,342 |
Revenue from Contract with Customer | Sales Channel | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 100% | 100% | 100% | 100% |
Revenue from Contract with Customer | Sales Channel | Merchant | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 25% | 26% | 25% | 26% |
Revenue from Contract with Customer | Sales Channel | On-Site | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 28% | 24% | 27% | 23% |
Revenue from Contract with Customer | Sales Channel | Packaged Gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 31% | 35% | 32% | 35% |
Revenue from Contract with Customer | Sales Channel | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percentage | 16% | 15% | 15% | 16% |