Fourth Quarter 2023 Earnings Report
Purchase Price Accounting (PPA) Outlook
2018 Merger
Linde
PPA NBV
US$ (MM)
12/31/23
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
Amortization
11,643
(464)
(436)
(436)
(433)
(420)
(420)
(420)
(420)
(420)
(420)
(420)
(416)
(414)
Depreciation
2,059
(478)
(341)
(302)
(152)
(113)
(91)
(76)
(66)
(58)
(50)
(39)
(27)
(18)
Total
13,702
(942)
(777)
(737)
(585)
(533)
(510)
(496)
(486)
(478)
(470)
(459)
(444)
(432)
US$ (MM)
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
INDEFINITE
Amortization
(414)
(408)
(380)
(380)
(380)
(380)
(373)
(357)
(343)
(333)
(333)
(278)
1,745
Depreciation
(13)
(10)
(7)
(5)
(4)
(3)
(2)
0
0
0
0
0
205
Total
(428)
(419)
(387)
(385)
(384)
(383)
(375)
(357)
(342)
(333)
(333)
(278)
1,950
Amounts above represent estimates of forward-looking merger related amortization and depreciation utilizing currency exchange rates as of December 31, 2023 and may have rounding
differences. We believe these estimates provide useful information to investors for modeling the annual impact to our financial statements. Future amounts may be different due to
changes in currency exchange rates, changes in estimated useful lives and disposition or impairment of assets. Linde plc assumes no obligation to update or provide revisions to these
estimates in response to changing circumstances.
The 2018 business combination of Praxair, Inc. and Linde AG was a merger of equals in an all-stock merger transaction, with no cash consideration.
PPA NBV above represents the remaining net book value as of December 31, 2023 related to the fair value step up of fixed assets and intangible assets (primarily
customer related) due to the merger.
The related depreciation and amortization of the remaining net book value has been scheduled out above over the remaining estimated useful lives using exchange
rates at December 31, 2023. Amounts shown are pre-tax and do not include the related deferred tax impact. These amounts are adjusted out of depreciation and
amortization in the company's non-GAAP adjusted operating profit.
The remaining balance of $1.95 billion after 2048 represents indefinite lived assets, primarily the Linde brand of $1.745 billion in intangibles (non-amortizing asset)
and land of $0.205 billion (non depreciating asset).
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