Supplemental Information

3 Months Ended

Mar. 31, 2020

Receivables

For trade receivables an expected credit loss approach was adopted as of January 1, 2020. 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 based on 2 years 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 critically evaluated based on the expectations of the responsible management team regarding the collectability of the receivables. Gross receivables aged less than one year were $4,177 million and $4,390 million at March 31, 2020 and December 31, 2019 respectively and gross receivables aged greater than one year were $261 million and $249 million at March 31, 2020 and December 31, 2019 respectively. Receivables aged greater than one year are generally fully reserved unless specific circumstances warrant exceptions.

Trade receivables net of reserves were $4,084 million at March 31, 2020 and $4,322 million at December 31, 2019. Allowances for expected credit losses were $363 at March 31, 2020 and $306 million at December 31, 2019. Provisions for expected credit losses were $46 million and $56 million for the three months ended March 31, 2020 and 2019, respectively. The allowance activity in the three months ended March 31, 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)	March 31, 2020		December 31, 2019
Inventories
Raw materials and supplies	$	374	$	396
Work in process	338		331
Finished goods	977		970
Total inventories	$	1,689	$	1,697