Company: LIN
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001628280-25-037164
Chunk: 44

Company: LINDE PLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 44
---
 DesignationsAs of June 30, 2025, exchange rate movements relating to previously designated hedges that remain in accumulated other comprehensive income (loss) is a loss of $64 million. These movements will remain in accumulated other comprehensive income (loss), until appropriate, such as upon sale or liquidation of the related foreign operations at which time amounts will be reclassified to the consolidated statement of income.Interest Rate SwapsLinde has historically used interest rate swaps to hedge the exposure to changes in the fair value of financial assets and financial liabilities as a result of interest rate changes. When used, these interest rate swaps would effectively convert fixed-rate interest exposures to variable rates; fair value adjustments were recognized in earnings along with an equally offsetting charge/benefit to earnings for the changes in the fair value of the underlying financial asset or financial liability (See Note 3).Derivatives' Impact on Consolidated Statement of IncomeThe following table summarizes the impact of the company’s derivatives on the consolidated statement of income: Amount of Pre-Tax Gain (Loss)Recognized in Earnings *  Quarter Ended June 30,Six Months Ended June 30,(Millions of dollars)2025202420252024Derivatives Not Designated as Hedging InstrumentsCurrency contracts:Balance sheet itemsDebt-related$(36)$(2)$(125)$(17)Other balance sheet items12 2 13 (5)Total$(24)$— $(112)$(22)* The gains (losses) on balance sheet items are offset by gains (losses) recorded on the underlying hedged assets and liabilities. Accordingly, the gains (losses) for the derivatives and the underlying hedged assets and liabilities related to debt items are recorded in the consolidated statement of income as interest expense-net. Other balance sheet items and anticipated net income gains (losses) are generally recorded in the consolidated statement of income as other income (expenses)-net.

12

The amounts of gain or loss recognized in accumulated other comprehensive income (loss) and reclassified to the consolidated statement of income was not material for the six months ended June 30, 2025 and 2024. Net impacts expected to be reclassified to earnings during the next twelve months are also not material.

5. Fair Value Disclosures

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows:Level 1 – quoted prices in active markets for identical assets or liabilitiesLevel