Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Linde plc, income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. federal	291)	486)	287)	185)	64)
State and local	116)	92)	87)	17)	39)
Non-U.S.	1,491)	1,239)	1,142)	1,013)	969)
Current tax expense	1,898)	1,817)	1,516)	1,215)	1,072)
U.S. federal	57)	(12)	63)	20)	85)
State and local	5)	7)	8)	7)	—)
Non-U.S.	(146)	(378)	(325)	(395)	(388)
Deferred tax benefit	(84)	(383)	(254)	(368)	(303)
Provision for income taxes	1,814)	1,434)	1,262)	847)	769)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Linde plc current tax expense increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax benefit	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Linde plc deferred tax benefit decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Linde plc provision for income taxes increased from 2021 to 2022 and from 2022 to 2023.

Linde plc, effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State and local taxes, net of federal benefit	1.30%	1.50%	1.60%	0.60%	1.10%
Tax on Non-U.S. activities	2.10%	3.20%	4.30%	4.90%	3.90%
Share-Based compensation	-0.80%	-0.70%	-1.10%	-1.60%	-1.40%
Divestitures	0.00%	0.00%	0.00%	0.00%	1.20%
Russia/Ukraine Charges	0.00%	1.90%	0.00%	0.00%	0.00%
Other	-0.90%	-1.00%	-1.10%	0.10%	0.50%
Effective tax rate	22.70%	25.90%	24.70%	25.00%	26.30%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Linde plc effective tax rate increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Linde plc, components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Carryforwards	285)	289)	358)	386)	441)
Benefit plans and related	243)	165)	607)	814)	721)
Inventory	82)	68)	57)	70)	72)
Accruals and other	858)	1,001)	1,042)	1,243)	1,167)
Deferred tax assets, before valuation allowances	1,468)	1,523)	2,064)	2,513)	2,401)
Valuation allowances	(176)	(276)	(235)	(243)	(222)
Deferred tax assets	1,292)	1,247)	1,829)	2,270)	2,179)
Fixed assets	(2,686)	(2,775)	(3,177)	(3,430)	(3,539)
Goodwill	(215)	(173)	(166)	(173)	(145)
Other intangible assets	(2,872)	(2,939)	(3,263)	(3,703)	(3,688)
Subsidiary/equity investments	(586)	(545)	(586)	(609)	(664)
Other	(456)	(471)	(634)	(791)	(789)
Deferred tax liabilities	(6,815)	(6,903)	(7,826)	(8,706)	(8,825)
Net deferred tax assets (liabilities)	(5,523)	(5,656)	(5,997)	(6,436)	(6,646)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets, before valuation allowances	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Linde plc deferred tax assets, before valuation allowances decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Linde plc deferred tax assets decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Linde plc net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Linde plc, deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred tax assets (included in Other long-term assets)	226)	230)	242)	268)	243)
	Deferred tax liabilities (included in Deferred credits)	5,749)	5,886)	6,239)	6,704)	6,889)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets (included in Other long-term assets)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Linde plc deferred tax assets (included in Other long-term assets) decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities (included in Deferred credits)	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Linde plc deferred tax liabilities (included in Deferred credits) decreased from 2021 to 2022 and from 2022 to 2023.

Linde plc, adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	80,811)	79,658)	81,605)	88,229)	86,612)
Less: Noncurrent deferred tax assets, net	226)	230)	242)	268)	243)
Total assets (adjusted)	80,585)	79,428)	81,363)	87,961)	86,369)
Adjustment to Total Liabilities
Total liabilities (as reported)	39,716)	38,271)	36,164)	38,647)	34,977)
Less: Noncurrent deferred tax liabilities, net	5,749)	5,886)	6,239)	6,704)	6,889)
Total liabilities (adjusted)	33,967)	32,385)	29,925)	31,943)	28,088)
Adjustment to Total Linde Plc Shareholders’ Equity
Total Linde plc shareholders’ equity (as reported)	39,720)	40,028)	44,035)	47,317)	49,074)
Less: Net deferred tax assets (liabilities)	(5,523)	(5,656)	(5,997)	(6,436)	(6,646)
Total Linde plc shareholders’ equity (adjusted)	45,243)	45,684)	50,032)	53,753)	55,720)
Adjustment to Net Income, Linde Plc
Net income, Linde plc (as reported)	6,199)	4,147)	3,826)	2,501)	2,285)
Add: Deferred income tax expense (benefit)	(84)	(383)	(254)	(368)	(303)
Net income, Linde plc (adjusted)	6,115)	3,764)	3,572)	2,133)	1,982)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Linde plc, Financial Data: Reported vs. Adjusted

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Linde plc, adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	18.87%	12.43%	12.42%	9.18%	8.09%
Adjusted net profit margin	18.61%	11.28%	11.60%	7.83%	7.02%
Total Asset Turnover
Reported total asset turnover	0.41	0.42	0.38	0.31	0.33
Adjusted total asset turnover	0.41	0.42	0.38	0.31	0.33
Financial Leverage
Reported financial leverage	2.03	1.99	1.85	1.86	1.76
Adjusted financial leverage	1.78	1.74	1.63	1.64	1.55
Return on Equity (ROE)
Reported ROE	15.61%	10.36%	8.69%	5.29%	4.66%
Adjusted ROE	13.52%	8.24%	7.14%	3.97%	3.56%
Return on Assets (ROA)
Reported ROA	7.67%	5.21%	4.69%	2.83%	2.64%
Adjusted ROA	7.59%	4.74%	4.39%	2.42%	2.29%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Linde plc adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Linde plc adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Linde plc adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Linde plc adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Linde plc adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Linde plc, Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income, Linde plc	6,199)	4,147)	3,826)	2,501)	2,285)
Sales	32,854)	33,364)	30,793)	27,243)	28,228)
Profitability Ratio
Net profit margin¹	18.87%	12.43%	12.42%	9.18%	8.09%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income, Linde plc	6,115)	3,764)	3,572)	2,133)	1,982)
Sales	32,854)	33,364)	30,793)	27,243)	28,228)
Profitability Ratio
Adjusted net profit margin²	18.61%	11.28%	11.60%	7.83%	7.02%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Net income, Linde plc ÷ Sales
= 100 × 6,199 ÷ 32,854 = 18.87%

² Adjusted net profit margin = 100 × Adjusted net income, Linde plc ÷ Sales
= 100 × 6,115 ÷ 32,854 = 18.61%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Linde plc adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales	32,854)	33,364)	30,793)	27,243)	28,228)
Total assets	80,811)	79,658)	81,605)	88,229)	86,612)
Activity Ratio
Total asset turnover¹	0.41	0.42	0.38	0.31	0.33
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales	32,854)	33,364)	30,793)	27,243)	28,228)
Adjusted total assets	80,585)	79,428)	81,363)	87,961)	86,369)
Activity Ratio
Adjusted total asset turnover²	0.41	0.42	0.38	0.31	0.33

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Sales ÷ Total assets
= 32,854 ÷ 80,811 = 0.41

² Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 32,854 ÷ 80,585 = 0.41

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Linde plc adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	80,811)	79,658)	81,605)	88,229)	86,612)
Total Linde plc shareholders’ equity	39,720)	40,028)	44,035)	47,317)	49,074)
Solvency Ratio
Financial leverage¹	2.03	1.99	1.85	1.86	1.76
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	80,585)	79,428)	81,363)	87,961)	86,369)
Adjusted total Linde plc shareholders’ equity	45,243)	45,684)	50,032)	53,753)	55,720)
Solvency Ratio
Adjusted financial leverage²	1.78	1.74	1.63	1.64	1.55

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Linde plc shareholders’ equity
= 80,811 ÷ 39,720 = 2.03

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Linde plc shareholders’ equity
= 80,585 ÷ 45,243 = 1.78

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Linde plc adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income, Linde plc	6,199)	4,147)	3,826)	2,501)	2,285)
Total Linde plc shareholders’ equity	39,720)	40,028)	44,035)	47,317)	49,074)
Profitability Ratio
ROE¹	15.61%	10.36%	8.69%	5.29%	4.66%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income, Linde plc	6,115)	3,764)	3,572)	2,133)	1,982)
Adjusted total Linde plc shareholders’ equity	45,243)	45,684)	50,032)	53,753)	55,720)
Profitability Ratio
Adjusted ROE²	13.52%	8.24%	7.14%	3.97%	3.56%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net income, Linde plc ÷ Total Linde plc shareholders’ equity
= 100 × 6,199 ÷ 39,720 = 15.61%

² Adjusted ROE = 100 × Adjusted net income, Linde plc ÷ Adjusted total Linde plc shareholders’ equity
= 100 × 6,115 ÷ 45,243 = 13.52%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Linde plc adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income, Linde plc	6,199)	4,147)	3,826)	2,501)	2,285)
Total assets	80,811)	79,658)	81,605)	88,229)	86,612)
Profitability Ratio
ROA¹	7.67%	5.21%	4.69%	2.83%	2.64%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income, Linde plc	6,115)	3,764)	3,572)	2,133)	1,982)
Adjusted total assets	80,585)	79,428)	81,363)	87,961)	86,369)
Profitability Ratio
Adjusted ROA²	7.59%	4.74%	4.39%	2.42%	2.29%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net income, Linde plc ÷ Total assets
= 100 × 6,199 ÷ 80,811 = 7.67%

² Adjusted ROA = 100 × Adjusted net income, Linde plc ÷ Adjusted total assets
= 100 × 6,115 ÷ 80,585 = 7.59%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Linde plc adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Linde plc (NASDAQ:LIN)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Linde plc, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Linde plc, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)