Supplemental Information

9 Months Ended

Sep. 30, 2023

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 $4,637 million and $4,498 million at September 30, 2023 and December 31, 2022, respectively, and gross receivables aged greater than one year were $346 million and $321 million at September 30, 2023 and December 31, 2022, respectively. Other receivables were $155 million and $145 million at September 30, 2023 and December 31, 2022, 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 $4,692 million at September 30, 2023 and $4,559 million at December 31, 2022. Allowances for expected credit losses were $446 million at September 30, 2023 and $405 million at December 31, 2022. Provisions for expected credit losses were $123 million and $112 million for the nine months ended September 30, 2023 and 2022, respectively. The allowance activity in the nine months ended September 30, 2023 and 2022 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)	September 30, 2023		December 31, 2022
Inventories
Raw materials and supplies	$	598	$	567
Work in process	426		368
Finished goods	1,054		1,043
Total inventories	$	2,078	$	1,978