Supplemental Information

6 Months Ended

Jun. 30, 2021

Receivables

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 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 $4,326 million and $4,169 million at June 30, 2021 and December 31, 2020 respectively and gross receivables aged greater than one year were $316 million and $358 million at June 30, 2021 and December 31, 2020 respectively. Other receivables were $130 million and $111 million at June 30, 2021 and December 31, 2020, 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 $4,342 million at June 30, 2021 and $4,167 million at December 31, 2020. Allowances for expected credit losses were $430 million at June 30, 2021 and $471 million at December 31, 2020. Provisions for expected credit losses were $71 million and $95 million for the six months ended June 30, 2021 and 2020, respectively. The allowance activity in the six months ended June 30, 2021 and 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, 2021		December 31, 2020
Inventories
Raw materials and supplies	$	369	$	411
Work in process	358		337
Finished goods	965		981
Total inventories	$	1,692	$	1,729