Supplemental Information

6 Months Ended

Jun. 30, 2020

Receivables

For trade receivables an expected credit loss approach was adopted as of January 1, 2020. Linde applies loss rates that are lifetime expected credit losses at initial recognition of the receivables. These expected loss rates are based on an analysis of the actual historical default rates for each business, taking regional circumstances into account. If necessary, these historical default rates are adjusted to reflect the impact of current changes in the macroeconomic environment using forward-looking information. The loss rates are also critically evaluated based on the expectations of the responsible management team regarding the collectability of the receivables. Gross trade receivables aged less than one year were $3,982 million and $4,390 million at June 30, 2020 and December 31, 2019 respectively and gross receivables aged greater than one year were $302 million and $249 million at June 30, 2020 and December 31, 2019 respectively. Receivables aged greater than one year are generally fully reserved unless specific circumstances warrant exceptions, such as those backed by federal governments.

Accounts receivable net of reserves were $3,994 million at June 30, 2020 and $4,322 million at December 31, 2019. Allowances for expected credit losses were $416 million at June 30, 2020 and $306 million at December 31, 2019. Provisions for expected credit losses were $95 million and $111 million for the six months ended June 30, 2020 and 2019, respectively. The allowance activity in the six months ended June 30, 2020 related to write-offs of uncollectible amounts, net of recoveries and currency movements is not material.

Inventories

The following is a summary of Linde's consolidated inventories:


(Millions of dollars)	June 30, 2020		December 31, 2019
Inventories
Raw materials and supplies	$	387	$	396
Work in process	359		331
Finished goods	969		970
Total inventories	$	1,715	$	1,697