Company: LIN
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007990
Chunk: 24

Company: LINDE PLC
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 24
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 / OPEB funded status (see Notes 7 and 16).

58

(c)The amounts are net of non-US deferred tax liabilities of $290 million in 2024 and $187 million in 2023.(d)Includes $244 million in 2024 and $228 million in 2023 related to lease liabilities.(e)Summary of changes in valuation allowances relating to deferred tax assets follows (millions of dollars):202420232022Balance, January 1,$(176)$(276)$(235)Income tax (charge) benefit26 65 (44)Other, including write-offs — 34 — Translation adjustments4 1 3 Balance, December 31,$(146)$(176)$(276)The company evaluates deferred tax assets quarterly to ensure that estimated future taxable income will be sufficient in character (e.g., capital gain versus ordinary income treatment), amount and timing to result in their recovery. After considering the positive and negative evidence, a valuation allowance is established to reduce the assets to their realizable value when management determines that it is more likely than not (i.e., greater than 50% likelihood) that a deferred tax asset will not be realized. Considerable judgment is required in establishing deferred tax valuation allowances. As of December 31, 2024, the company had $505 million of deferred tax assets relating to net operating losses (“NOLs”) and tax credits and $146 million of valuation allowances. These deferred tax assets include $461 million relating to NOLs, of which $57 million expire within 5 years, $18 million expire after 5 years, and $386 million have no expiration. The deferred tax assets also include $44 million related to credits of which $3 million expire within 5 years, $38 million expire after 5 years, and $3 million have no expiration. The valuation allowances of $146 million primarily relate to NOLs. Management has determined, based on financial projections and available tax strategies, that it is unlikely that the benefit of these losses will be realized. If events or circumstances change, valuation allowances are adjusted at that time resulting in an income tax benefit or charge.The company has $535 million of non-U.S income and withholding taxes accrued related to its investment in non-U.S. subsidiaries and equity investments. A provision has not been made for any additional non-U.S. income or withholding taxes at December 31, 2024 on approximately $5 billion of unremitted non