Company: LIN
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001628280-25-037164
Chunk: 41

Company: LINDE PLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 41
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 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 June 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.

10

The following table is a summary of the notional amount and fair value of derivatives outstanding at June 30, 2025 and December 31, 2024 for consolidated subsidiaries:   Fair Value Notional AmountsAssets (a)Liabilities (a)(Millions of dollars)June 30,2025December 31,2024June 30,2025December 31,2024June 30,2025December 31,2024Derivatives Not Designated as Hedging Instruments:Currency contracts:Balance sheet items$10,475 $9,935 $112 $256 $249 $64 Forecasted transactions 167 168 6 2 2 6 Total$10,642 $10,103 $118 $258 $251 $70 Derivatives Designated as Hedging Instruments:Currency contracts:       Forecasted transactions$633 $780 $43 $7 $4 $11 Forward exchange transactions2,838 1,059 — 30 110 — Commodity contracts N/AN/A6 11 18 20 Total Hedges$3,471 $1,839 $49 $48 $132 $31 Total Derivatives$14,113 $11,942 $167 $306 $383 $101 (a)Amounts as of June 30, 2025 and December 31, 2024, respectively, included current assets of $150 million and $302 million which are recorded in prepaid and other current assets; long-term assets of