Company: LIN
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001628280-25-037164
Chunk: 37

Company: LINDE PLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 37
---
. 

Disaggregation of Income Statement Expenses - In November 2024, the FASB issued guidance requiring disaggregated disclosure of income statement expenses. The new standard is effective for fiscal years beginning after December 15, 2026, and interim periods with fiscal years after December 15, 2027, with early adoption permitted. The adoption of this standard will only impact disclosures within the company's consolidated financial statements and the company is evaluating the impact this guidance will have on those disclosures. 

2. Supplemental Information

ReceivablesLinde 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 $5,167 million and $4,573 million at June 30, 2025 and December 31, 2024, respectively, and gross receivables aged greater than one year were $386 million and $322 million at June 30, 2025 and December 31, 2024, respectively. Gross other receivables were $137 million and $148 million at June 30, 2025 and December 31, 2024, 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 $5,230 million at June 30, 2025 and $4,622 million at December 31, 2024. Allowances for expected credit losses were $460 million at June 30, 2025 and $421 million at December 31, 2024. Provisions for expected credit losses were $102 million and $84 million for the six months ended June 30, 2025 and 2024, respectively. The allowance activity in the six months ended June 30, 2025 and 2024 related to write-offs of uncollectible amounts, net of recoveries and currency movements is not material.InventoriesThe following is a summary of Linde's consolidated inventories:(Millions of