Company: LIN
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007990
Chunk: 21

Company: LINDE PLC
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 21
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 obligations are included in other long-term assets and other current liabilities and other long-term liabilities, respectively. Linde includes renewal options that are reasonably certain to be exercised as part of the lease term. Operating and financing lease expenses above include short term and variable lease costs which are immaterial.As most leases do not provide an implicit rate, Linde uses the applicable incremental borrowing rate at lease commencement to measure lease liabilities and right-of-use assets. Linde determines incremental borrowing rates through market sources. The company has elected to apply the short-term lease exception for all underlying asset classes. Short-term leases are leases that, at the commencement date, have a lease term of twelve months or less and do not include a purchase option that the lessee is reasonably certain to exercise. Leases that meet the short-term lease definition are not recognized on the balance sheet, but rather expensed on a straight-line basis over the lease term.Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance. The company does not have material variable lease payments.Gains and losses on sale and leaseback transactions were immaterial. Operating cash flows used for operating leases for the twelve months ended December 31, 2024 and 2023 were $249 million. Cash flows used for finance leases for the same period were immaterial. Supplemental balance sheet information related to leases is as follows: (Millions of dollars)December 31,20242023Operating LeasesOperating lease right-of-use assets$800 $759 Other current liabilities176 177 Other long-term liabilities606 572 Total operating lease liabilities782 749 Finance LeasesFinance lease right-of-use assets189 179 Other current liabilities54 50 Other long-term liabilities150 143 Total finance lease liabilities$204 $193 Supplemental operating lease information: (Millions of dollars)December 31,20242023Weighted average lease term (years)88Weighted average discount rate4.17 %4.19 %Future operating and finance lease payments as of December 31, 2024 are as follows (millions of dollars):

56

PeriodOperating LeasesFinancing Leases2025$202 $65 2026164 53 2027129 42 202896 28 202968 15 Thereafter260 44 Total future undiscounted lease payments919 247 Less imputed interest(137)(43)Total reported lease liability$