Linde applies loss rates that are lifetime expected credit losses at initial recognition of the receivables. These expected loss rates are based on an analysis of the actual historical default rates for each business, taking regional circumstances into account. If necessary, these historical default rates are adjusted to reflect the impact of current changes in the macroeconomic environment using forward-looking information. The loss rates are also evaluated based on the expectations of the responsible management team regarding the collectability of the receivables. Gross trade receivables aged less than one year were $5,681 million and $5,032 million at June 30, 2026 and December 31, 2025, respectively, and gross receivables aged greater than one year were $430 million and $377 million at June 30, 2026 and December 31, 2025, respectively. Gross other receivables were $112 million and $138 million at June 30, 2026 and December 31, 2025, respectively. Receivables aged greater than one year are generally fully reserved unless specific circumstances warrant exceptions, such as those backed by federal governments.

Accounts receivable net of reserves were $5,632 million at June 30, 2026 and $4,966 million at December 31, 2025. Allowances for expected credit losses were $591 million at June 30, 2026 and $581 million at December 31, 2025. Provisions for expected credit losses were $109 million and $102 million for the six months ended June 30, 2026 and 2025, respectively. The allowance activity in the six months ended June 30, 2026 and 2025 related to write-offs of uncollectible amounts, net of recoveries and currency movements is not material.