XML 57 R43.htm IDEA: XBRL DOCUMENT v3.22.0.1
Retirement Programs (Tables)
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Schedule of Pension and OPEB Net Periodic Benefit Costs Table
The components of net pension and postretirement benefits other than pension ("OPEB") costs for 2021, 2020 and 2019 are shown in the table below: 
(Millions of dollars)
Year Ended December 31,
PensionsOPEB
202120202019202120202019
Amount recognized in Operating Profit
     Service cost$155 $150 $142 $2 $2 $2 
Amount recognized in Net pension and OPEB cost (benefit), excluding service cost
     Interest cost151 208 261 3 5 7 
     Expected return on plan assets(521)(482)(462)— — — 
     Net amortization and deferral176 90 61 (5)(4)(4)
     Curtailment and termination benefits (a)— — 8 — — — 
     Settlement charges (b)4 6 97 — — — 
$(190)$(178)$(35)$(2)$1 $3 
Net periodic benefit cost (benefit)$(35)$(28)$107 $— $3 $5 
(a) In 2019, Linde recorded curtailment gains of $9 million and a charge of $17 million for termination benefits, primarily in connection with a defined benefit pension plan freeze.
(b) Linde recorded a pension settlement charge of $4 million and $6 million during the third quarter of 2021 and 2020, respectively. Settlement charges were triggered by lump sum benefit payments made from a U.S. non-qualified plan.
In the first quarter of 2019, benefits of $91 million were paid related to the settlement of a U.S. non-qualified plan. Such benefits were triggered by a change in control provision and resulted in a settlement charge of $51 million. In the third and fourth quarters of 2019, Linde recorded pension settlement charges of $40 million and $6 million, respectively, related to lump sum payments made from a U.S. qualified plan. These payments were triggered by merger-related divestitures.
Schedule of Pension and OPEB Funded Status Table
Changes in the benefit obligation and plan assets for Linde’s pension and OPEB programs, including reconciliation of the funded status of the plans to amounts recorded in the consolidated balance sheet, as of December 31, 2021 and 2020 are shown below. 
(Millions of dollars)
Year Ended December 31,
Pensions 
20212020OPEB
U.S.Non-U.S. U.S.Non-U.S.20212020
Change in Benefit Obligation ("PBO")
Benefit obligation, January 1$2,746 $9,987 $2,552 $8,689 $172 $192 
Service cost37 118 37 113 2 2 
Interest cost46 105 68 140 3 5 
Divestitures — (13)— — — — 
Participant contributions— 19 — 18 11 11 
Plan amendment— — — 7 — (13)
Actuarial loss (gain)(94)(209)250 893 (8)(2)
Benefits paid(145)(331)(152)(320)(23)(22)
Plan settlement(7)(13)(9)(14)— — 
Plan curtailment— — — (1)— — 
Foreign currency translation and other changes— (286)— 462 — (1)
Benefit obligation, December 31$2,583 $9,377 $2,746 $9,987 $157 $172 
Accumulated benefit obligation ("ABO")$2,503 $9,278 $2,646 $9,830 
Change in Plan Assets
Fair value of plan assets, January 1$2,310 $7,653 $2,048 $6,888 $— $— 
Actual return on plan assets281 728 386 641 — — 
Company contributions42 25 66 — — 
Participant contributions— 19 — 18 — — 
Benefits paid from plan assets(143)(272)(149)(267)— — 
Divestitures — (14)— — — — 
Foreign currency translation and other changes— (188)— 307 — — 
Fair value of plan assets, December 31$2,448 $7,968 $2,310 $7,653 $— $— 
Funded Status, End of Year$(135)$(1,409)$(436)$(2,334)$(157)$(172)
Recorded in the Balance Sheet (Note 7)
Other long-term assets$15 $124 $2 $53 $— $— 
Other current liabilities(12)(12)(9)(13)(14)(12)
Other long-term liabilities(138)(1,521)(429)(2,374)(143)(160)
Net amount recognized, December 31$(135)$(1,409)$(436)$(2,334)$(157)$(172)
Amounts recognized in accumulated other comprehensive income (loss) consist of:
Net actuarial loss (gain)$383 $1,075 $687 $1,766 $(16)$(11)
Prior service cost (credit)— 6 — 9 (13)(15)
Deferred tax benefit (Note 7)(96)(217)(182)(383)8 5 
Amount recognized in accumulated other comprehensive income (loss) (Note 7)$287 $864 $505 $1,392 $(21)$(21)
Comparative funded status information as of December 31, 2021 and 2020 for select non-U.S. pension plans is presented in the table below as the benefit obligations of these plans are considered to be significant relative to the total benefit obligation:
 United KingdomGermanyOther Non-U.S.Total Non-U.S.
(Millions of dollars)2021202120212021
Benefit obligation, December 31$5,879 $2,240 $1,258 $9,377 
Fair value of plan assets, December 315,577 1,359 1,032 7,968 
Funded Status, End of Year$(302)$(881)$(226)$(1,409)
 United KingdomGermanyOther Non-U.S.Total Non-U.S.
(Millions of dollars)2020202020202020
Benefit obligation, December 31$6,012 $2,582 $1,393 $9,987 
Fair value of plan assets, December 315,355 1,258 1,040 7,653 
Funded Status, End of Year$(657)$(1,324)$(353)$(2,334)
Schedule of Pension and OPEB Changes in Plan Assets and Benefit Obligations Recognized in AOCI Table
The changes in plan assets and benefit obligations recognized in other comprehensive income in 2021 and 2020 are as follows:
 PensionsOPEB
(Millions of dollars)2021202020212020
Current year net actuarial losses (gains)*$(779)$598 $(8)$(2)
Amortization of net actuarial gains (losses)(173)(89)3 2 
Plan amendment— 7 — (13)
Amortization of prior service credits (costs)(3)(1)2 2 
Pension settlements(4)(6)— — 
Curtailments— (1)— — 
Foreign currency translation and other changes(39)87 — (1)
Total recognized in other comprehensive income$(998)$595 $(3)$(12)
________________________
 *    Pension net actuarial gains in 2021 are largely driven by an increase in the actual return on assets during the year and favorability generated from a lower PBO due to an increase in discount rates. In 2020, the low discount rate environment resulted in actuarial losses from a higher PBO and outweighed favorable plan asset experience for both the non-U.S. and U.S. plans.
Schedule of Pension Plans Where the Accumulated Benefit Obligation Exceeds the Fair Value of Plan Assets
The following table provides information for pension plans where the accumulated benefit obligation exceeds the fair value of plan assets:
(Millions of dollars)
Year Ended December 31,
Pensions
20212020
U.S.Non-U.S.U.S.Non-U.S.
Accumulated benefit obligation ("ABO")$2,387 $8,404 $2,518 $8,694 
Fair value of plan assets$2,317 $6,947 $2,180 $6,254 
Schedule of Pension Plans Where the Projected Benefit Obligation Exceeds the Fair Value of Plan Assets
The following table provides information for pension plans where the projected benefit obligation exceeds the fair value of plan assets:
(Millions of dollars)
Year Ended December 31,
Pensions
20212020
U.S.Non-U.S.U.S.Non-U.S.
Projected benefit obligation ("PBO")$2,467 $8,499 $2,618 $8,845 
Fair value of plan assets$2,317 $6,964 $2,180 $6,282 
Schedule of Pension and OPEB Plans Assumptions Used to Determine Benefit Obligations and the Net Benefit Cost Table
The assumptions used to determine benefit obligations are as of the respective balance sheet dates and the assumptions used to determine net benefit cost are as of the previous year-end, as shown below:
 Pensions  
 U.S.Non-U.S.OPEB
 202120202021202020212020
Weighted average assumptions used to determine benefit obligations at December 31,
Discount rate2.78 %2.40 %1.82 %1.36 %2.85 %2.39 %
Interest crediting rate2.06 %1.57 %1.03 %1.01 %N/AN/A
Rate of increase in compensation levels 3.25 %3.25 %2.55 %2.55 %N/AN/A
Weighted average assumptions used to determine net periodic benefit cost for years ended December 31,
Discount rate 2.40 %3.20 %1.36 %1.91 %2.39 %3.19 %
Interest crediting rate1.57 %2.19 %1.01 %1.08 %N/AN/A
Rate of increase in compensation levels 3.25 %3.25 %2.55 %2.46 %N/AN/A
Expected long-term rate of return on plan assets (1)7.00 %7.00 %5.28 %5.31 %N/AN/A
________________________
(1)    The expected long term rate of return on the U.S. and non-U.S. plan assets is estimated based on the plans' investment strategy and asset allocation, historical capital market performance and, to a lesser extent, historical plan performance. For the U.S. plans, the expected rate of return of 7.00% was derived based on the target asset allocation of 40%-60% equity securities (approximately 7.7% expected return), 30%-50% fixed income securities (approximately 5.4% expected return) and 5%-15% alternative investments (approximately 6.3% expected return). For the non-U.S. plans, the expected rate of return was derived based on the weighted average target asset allocation of 15%-25% equity securities (approximately 6.4% expected return), 30%-50% fixed income securities (approximately 5.2% expected return), and 30%-50% alternative investments (approximately 5% expected return). For the U.S. plan assets, the actual annualized total return for the most recent 10-year period ended December 31, 2021 was approximately 10.8%. For the non-U.S. plan assets, the actual annualized total return for the same period was approximately 9.0%. Changes to plan asset allocations and investment strategy over this time period limit the value of historical plan performance as a factor in estimating the expected long term rate of return. For 2022, the expected long-term rate of return on plan assets will be 7.00% for the U.S. plans. For 2022, the expected weighted average long-term rate of return for non-U.S. plans will be 5.54%.
Schedule of OPEB Plans Assumed Healthcare Cost Trend Rates Table
 OPEB
Assumed healthcare cost trend rates20212020
Healthcare cost trend assumed7.00 %6.50 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)5.00 %5.00 %
Year that the rate reaches the ultimate trend rate20302027
Schedule of Pension Plans Targeted Asset Allocation Range and Weighted-Average Asset Allocations The non-U.S. pension plans are managed individually based on diversified investment portfolios, with different target asset allocations that vary for each plan. Weighted-average asset allocations at December 31, 2021 and 2020 for Linde’s U.S. and non-U.S. pension plans, as well as respective asset allocation ranges by major asset category, are generally as follows: 
 U.S.Non-U.S.
Asset CategoryTarget 2021Target 202020212020Target 2021Target 202020212020
Equity securities40%-60%40%-60%66 %66 %15%-25%15%-25%27 %27 %
Fixed income securities30%-50%30%-50%25 %27 %30%-50%30%-50%35 %34 %
Other5%-15%5%-15%9 %7 %30%-50%30%-50%38 %39 %
Schedule of Pension Plans Assets Measured at Fair Value by Asset Category Table
The following table summarizes pension assets measured at fair value by asset category at December 31, 2021 and 2020. For the twelve months ended December 31, 2021, transfers of assets were not material. For the twelve months ended December 31, 2020, transfers of assets of $15 million into Level 3 include insurance contract and real estate investments of $11 million and $4 million, respectively, which were reclassified as there is no active market quotation available. See Note 13 for the definition of levels within the fair value hierarchy:
 Fair Value Measurements Using  
 Level 1Level 2Level 3 **Total
(Millions of dollars)20212020202120202021202020212020
Cash and cash equivalents$259 $524 $— $— $— $— $259 $524 
Equity securities:
Global equities1,633 1,974 — — — — 1,633 1,974 
Mutual funds314 324 — — — — 314 324 
Fixed income securities:
Government bonds— — 1,624 1,545 — — 1,624 1,545 
Emerging market debt— — 509 520 — — 509 520 
Mutual funds121 123 12 12 — — 133 135 
Corporate bonds— — 647 573 — — 647 573 
Bank loans— — 253 242 — — 253 242 
Alternative investments:
Real estate funds— — — — 360 335 360 335 
Private debt— — — 1,368 1,120 1,368 1,120 
Insurance contracts— — — — 12 11 12 11 
Liquid alternative— — 1,193 1,083 — — 1,193 1,083 
Other investments1 — 58 60 — — 59 60 
Total plan assets at fair value,
December 31,		$2,328 $2,945 $4,296 $4,035 $1,740 $1,466 $8,364 $8,446 
Pooled funds *2,052 1,517 
Total fair value plan assets
December 31,		$10,416 $9,963 
* Pooled funds are measured using the net asset value ("NAV") as a practical expedient for fair value as permissible under the accounting standard for fair value measurements and have not been categorized in the fair value hierarchy.
Schedule of Pension Plans Changes in Fair Value of Assets Classified as Level 3 Table
** The following table summarizes changes in fair value of the pension plan assets classified as level 3 for the periods ended December 31, 2021 and 2020: 
(Millions of dollars)Insurance ContractsReal Estate FundsPrivate DebtTotal
Balance, December 31, 2019$— $316 $1003 $1319 
Gain/(Loss) for the period— (10)4 (6)
Purchases— 21 137 158 
Sales— (10)(69)(79)
Transfer into/ (out of) Level 311 4 — 15 
Foreign currency translation— 14 45 59 
Balance, December 31, 202011 335 1,120 1,466 
Gain/(Loss) for the period1 27 28 56 
Purchases— 13 289 302 
Sales— (4)(42)(46)
Transfer into / (out of) Level 31 (1)— — 
Foreign currency translation(1)(10)(27)(38)
Balance, December 31, 2021$12 $360 $1,368 $1,740 
Schedule of Pension and OPEB Estimated Future Benefit Payments, Net of Participant Contributions Table
The following table presents estimated future benefit payments, net of participant contributions: 
(Millions of dollars)Pensions 
Year Ended December 31,U.S.    Non-U.S.OPEB    
2022$183 $348 $14 
2023155 346 11 
2024149 357 11 
2025152 366 10 
2026150 388 9 
2027-2031763 1,952 41