Supplemental Information

3 Months Ended

Mar. 31, 2022

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 $4,808 million and $4,425 million at March 31, 2022 and December 31, 2021 respectively and gross receivables aged greater than one year were $278 million and $329 million at March 31, 2022 and December 31, 2021, respectively. Other receivables were $158 million and $150 million at March 31, 2022 and December 31, 2021, 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 $4,845 million at March 31, 2022 and $4,499 million at December 31, 2021. Allowances for expected credit losses were $399 million at March 31, 2022 and $405 million at December 31, 2021. Provisions for expected credit losses were $35 million and $39 million for the three months ended March 31, 2022 and 2021, respectively. The allowance activity in the three months ended March 31, 2022 and 2021 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)	March 31, 2022		December 31, 2021
Inventories
Raw materials and supplies	$	440	$	399
Work in process	318		334
Finished goods	1,008		1,000
Total inventories	$	1,766	$	1,733