Supplemental Information

6 Months Ended

Jun. 30, 2024

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 $4,956 million and $4,667 million at June 30, 2024 and December 31, 2023, respectively, and gross receivables aged greater than one year were $375 million and $354 million at June 30, 2024 and December 31, 2023, respectively. Other receivables were $128 million and $154 million at June 30, 2024 and December 31, 2023, 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 $5,001 million at June 30, 2024 and $4,718 million at December 31, 2023. Allowances for expected credit losses were $458 million at June 30, 2024 and $457 million at December 31, 2023. Provisions for expected credit losses were $84 million and $83 million for the six months ended June 30, 2024 and 2023, respectively. The allowance activity in the six months ended June 30, 2024 and 2023 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, 2024		December 31, 2023
Inventories
Raw materials and supplies	$	593	$	614
Work in process	422		390
Finished goods	1,079		1,111
Total inventories	$	2,094	$	2,115