Company: LIN
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001628280-25-047710
Chunk: 44

Company: LINDE PLC
Filing Date: 2025-10-31
Form: 10-Q
Item: Item 8
Chunk 44
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 (loss) in the consolidated balance sheet is $37 million (deferred gain of $27 million and deferred loss of $37 million in the consolidated statement of comprehensive income for the quarter and nine months ended September 30, 2025, respectively), which is largely offset by an offsetting loss or gain on the underlying foreign net investment being hedged. The amount of net interest income recorded in the quarter and nine months ended September 30, 2025 for all forward exchange contracts was $18 million and $40 million, respectively. Effects of Previous Hedge DesignationsAs of September 30, 2025, exchange rate movements relating to previously designated hedges that remain in accumulated other comprehensive income (loss) is a loss of $111 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 September 30,Nine Months Ended September 30,(Millions of dollars)2025202420252024Derivatives Not Designated as Hedging InstrumentsCurrency contracts:Balance sheet itemsDebt-related$17 $(73)$(108)$(90)Other balance sheet items6 4 10 (1)Total$23 $(69)$(98)$(91)* 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