Company: LIN
Filing Date: 2025-05-30
Form Type: CORRESP
Source: 0001628280-25-028502
Chunk: 2

Company: LINDE PLC
Filing Date: 2025-05-30
Form: CORRESP
Chunk 2
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 and analysts communicated to us that supplemental results excluding the impacts of non-cash merger purchase accounting would be useful so they could appropriately evaluate the performance of the Company and compare results with other similar companies/competitors. In fact, analysts’ published models and performance measures post-merger are consistent with the Company’s non-GAAP presentations. Therefore, historical book values (i.e., with no merger purchase accounting step-up adjustments to fair value) are being used to manage the Company and are being provided on a supplemental non-GAAP basis to investors and analysts externally. This approach is consistent with our investor expectations, with internal and segment reporting, and with compensation programs.

We have not made similar adjustments pre-or-post merger for other acquisitions because they were cash acquisitions where management, investors and analysts were expecting the Company to earn a return on the cash investment that was made to acquire the business.

In this merger of equals business combination, the shareholders of both Praxair and Linde AG exchanged their shares for shares in a new Linde plc, with no new cash investments. Therefore, investors and analysts were and are interested in monitoring the performance of the two companies, not only on a GAAP basis, but also on the same historical basis that the two companies operated in the past. For these reasons we are presenting supplemental non-GAAP information that excludes the impacts of merger purchase accounting.

The Company believes that the merger purchase accounting adjustments reflected in its non-GAAP presentations do not represent “part, but not all, of an accounting concept”; specifically, the adjustments do not change the pattern of recognition of amounts recorded under GAAP. Rather, they are adjustments aimed at supplementing the Company's reported GAAP numbers by providing an additional, clearer comparison of underlying operating results of our business, and adjust for balances that were recorded in the Company's financial statements. Further we also believe the Linde AG purchase accounting adjustments should not be viewed as being based on individually tailored recognition and measurement methods as referenced in 100.04 of the Division’s Compliance & Disclosure Interpretations on Non-GAAP Financial Measures because since the merger date, we have excluded all purchase accounting impacts (expenses and income) relating to this merger transaction in a balanced manner and are not being selective. Such merger purchase accounting adjustments are separately identifiable in our accounting systems as they are also excluded for internal

management reporting, segment, and incentive compensation purposes. Lastly, Linde plc presents non-GAAP measures in a transparent and consistent manner as a supplement to GAAP results, and we do not identify such adjustments as non