Company: LIN
Filing Date: 2025-05-30
Form Type: CORRESP
Source: 0001628280-25-028502
Chunk: 3

Company: LINDE PLC
Filing Date: 2025-05-30
Form: CORRESP
Chunk 3
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-recurring, infrequent or unusual.

Since January 1, 2019, the Company has cumulatively acquired approximately 85 companies for cash consideration of approximately $2 billion (the largest of which approximated $800 million during 2023), with an estimated $75 million (annualized) purchase accounting-related depreciation and amortization included in earnings for the year-ended December 31, 2024 (and not adjusted in our non-GAAP presentations).

The Company’s first Form 10-K filing post the merger was filed for the year-ended December 31, 2018. During 2019, the SEC issued a comment letter to the Company, that included a comment that is similar to the comment issued on May 22, 2025. During 2019 information consistent with the above was provided to the SEC and an additional meeting was held between the SEC and the Company on July 15, 2019. Subsequent to that discussion, on July 16, 2019, the SEC issued its letter indicating completion of its review of our filing.

In addition, as a result of that 2019 discussion, the above adjustment rationale and explanation was summarized and added to future non-GAAP reconciliations including as disclosed on page 37 of the 2024 Form 10-K: “The company believes that its non-GAAP measures excluding Purchase accounting impacts - Linde AG are useful to investors because: (i) the 2018 business combination was a merger of equals in an all-stock merger transaction, with no cash consideration, (ii) the company is managed on a geographic basis and the results of certain geographies are more heavily impacted by purchase accounting than others, causing results that are not comparable at the reportable segment level, therefore, the impacts of purchasing accounting adjustments to each segment vary and are not comparable within the company and when compared to other companies in similar regions, (iii) business management is evaluated and variable compensation is determined based on results excluding purchase accounting impacts, and; (iv) it is important to investors and analysts to understand the purchase accounting impacts to the financial statements.”