Company: LIN
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001628280-25-047710
Chunk: 41

Company: LINDE PLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 41
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 are generally not designated as hedges for accounting purposes. However, currency contracts related to certain forecasted transactions and net investments in foreign-denominated subsidiaries are designated as hedges for accounting purposes. Whether designated as hedges for accounting purposes or not, all derivatives are linked to an appropriate underlying exposure. On an ongoing basis, the company assesses the hedge effectiveness of all derivatives designated as hedges for accounting purposes to determine if they continue to be highly effective in offsetting changes in fair values or cash flows of the underlying hedged items. If it is determined that the hedge is not highly effective through the use of a qualitative assessment, then hedge accounting will be discontinued prospectively.Counterparties to Linde's derivatives are major banking institutions with credit ratings of investment grade or better. The company has Credit Support Annexes ("CSAs") in place for certain entities with their principal counterparties to minimize potential default risk and to mitigate counterparty risk. Under the CSAs, the fair values of derivatives for the purpose of interest rate and currency management are collateralized with cash on a regular basis. As of September 30, 2025, the impact of such collateral posting arrangements on the fair value of derivatives was insignificant. Management believes the risk of incurring losses on derivative contracts related to credit risk is remote and any losses would be immaterial.

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The following table is a summary of the notional amount and fair value of derivatives outstanding at September 30, 2025 and December 31, 2024 for consolidated subsidiaries:   Fair Value Notional AmountsAssets (a)Liabilities (a)(Millions of dollars)September 30,2025December 31,2024September 30,2025December 31,2024September 30,2025December 31,2024Derivatives Not Designated as Hedging Instruments:Currency contracts:Balance sheet items$10,733 $9,935 $55 $256 $87 $64 Forecasted transactions 145 168 3 2 1 6 Total$10,878 $10,103 $58 $258 $88 $70 Derivatives Designated as Hedging Instruments:Currency contracts:       Forecasted transactions$547 $780 $32 $7 $1 $11 Forward exchange transactions4,469 1,059 4 30 41 — Commodity contracts N/AN/A12 11 8