Company: LIN
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001628280-25-021379
Chunk: 71

Company: LINDE PLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 2
Chunk 71
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Table of Contents    

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

Non-GAAP Measures

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

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

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Consolidated Results 

The following table provides summary information for the three months ended March 31, 2025 and 2024. The reported amounts are GAAP amounts from the Consolidated Statement of Income. The adjusted amounts are intended to supplement investors' understanding of the company's financial information and are not a substitute for GAAP measures:

  Quarter Ended March 31,(Millions of dollars, except per share data)20252024VarianceSales$8,112 $8,100 — %Cost of sales, exclusive of depreciation and amortization$4,157 $4,216 (1)%As a percent of sales51.2 %52.0 %Selling, general and administrative$786 $860 (9)%As a percent of sales9.7 %10.6 %Depreciation and amortization$910 $949 (4)%Cost reduction program and other charges$55 $— NAOther income (expense) - net$18 $58 (69)%Operating profit$2,184 $2,095 4 %Operating margin26.9 %25.9 %Interest expense - net$60 $65 (8)%Net pension and OPEB cost (benef