Company: LIN
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001628280-25-007990
Chunk: 53

Company: LINDE PLC
Filing Date: 2025-02-26
Form: 10-K
Item: Item 8
Chunk 53
---
%7.00 %6.02 %5.64 %(1)    The expected long term rate of return on the U.S. and non-U.S. plan assets is estimated based on the plans' investment strategy and asset allocation, historical capital market performance and, to a lesser extent, historical plan performance.For the U.S. plans, the expected rate of return of 7.00% was derived based on the target asset allocation of 50%-70% equity securities (approximately 7.20% expected return), 20%-50% fixed income securities (approximately 4.70% expected return) and 2%-8% alternative investments (approximately 4.30% expected return).  For the main non-U.S. plans, the expected rate of return was derived based on the weighted average target asset allocation of 15%-25% equity securities (approximately 5.30% expected return), 30%-50% fixed income securities (approximately 5.80% expected return), and 30%-50% alternative investments (approximately 5.60% expected return).             For the U.S. plan assets, the actual annualized total return for the most recent 10-year period ended December 31, 2024 was approximately 7.20%. For the non-U.S. plan assets, the actual annualized total return for the same period was approximately 4.00%. Changes to plan asset allocations and investment strategy over this time period limit the value of historical plan performance as a factor in estimating the expected long term rate of return. For 2025, the expected long-term rate of return on plan assets will be 7.00% for the U.S. plans and 6.02% for non-U.S. plans.Pension Plan AssetsThe investments of the U.S. pension plan are managed to meet the future expected benefit liabilities of the plan over the long term by investing in diversified portfolios consistent with prudent diversification and historical and expected capital market returns. Investment strategies are reviewed by management and investment performance is tracked against appropriate benchmarks. There are no concentrations of risk as it relates to the assets within the plans. The non-U.S. pension plans are managed individually based on diversified investment portfolios, with different target asset allocations that vary for each plan. Weighted-average asset allocations at December 31, 2024 and 2023 for Linde’s U.S. and non-U.S. pension plans, as well as respective asset allocation ranges by major asset category, are generally