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Retirement Programs
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Retirement Programs RETIREMENT PROGRAMS
Defined Benefit Pension Plans - U.S.
Linde has two main U.S. retirement programs which are non-contributory defined benefit plans: the Linde U.S. Pension Plan and the CBI Pension Plan. The latter program benefits primarily former employees of CBI Industries, Inc. which Linde acquired in 1996. Effective July 1, 2002, the Linde U.S. Pension Plan was amended to give participating employees a one-time choice to remain covered by the old formula or to elect coverage under a new formula. The old formula is based predominantly on years of service, age and compensation levels prior to retirement, while the new formula provides for an annual contribution to an individual account which grows with interest each year at a predetermined rate. Also, this new formula applies to all new employees hired after April 30, 2002 into businesses adopting this plan. The U.S. and non-U.S. pension plan assets are comprised of a diversified mix of investments, including U.S. and non-U.S. corporate equities, government securities and corporate debt securities. Linde has several plans that provide supplementary retirement benefits primarily to higher level employees that are unfunded and are nonqualified for federal tax purposes. Pension coverage for employees of certain of Linde’s international subsidiaries generally is provided by those companies through separate plans. Obligations under such plans are primarily provided for through diversified investment portfolios, with some smaller plans provided for under insurance policies or by book reserves.
Defined Benefit Pension Plans - International
Linde has international, defined benefit commitments primarily in Germany and the U.K. The defined benefit commitments in Germany relate to old age pensions, invalidity pensions and surviving dependents pensions. These commitments also take into account vested rights for periods of service prior to January 1, 2002 based on earlier final-salary pension plan rules. In addition, there are direct commitments in respect of the salary conversion scheme for the form of cash balance plans. The resulting pension payments are calculated on the basis of an interest guarantee and the performance of the corresponding investment. There are no minimum funding requirements. The pension obligations in Germany are partly funded by a Contractual Trust Agreement (CTA). Defined benefit commitments in the U.K. prior to July 1, 2003 are earnings-related and dependent on the period of service. Such commitments relate to old age pensions, invalidity pensions and surviving dependents pensions. Beginning in April 1, 2011, the amount of future increases in inflation-linked pensions and of increases in pensionable emoluments was restricted.
Multi-employer Pension Plans
In the United States Linde participates in eight multi-employer defined benefit pension plans ("MEPs"), pursuant to the terms of collective bargaining agreements, that cover approximately 200 union-represented employees. The collective bargaining agreements expire on different dates through 2026. In connection with such agreements, the company is required to make periodic contributions to the MEPs in accordance with the terms of the respective collective bargaining agreements. Linde’s participation in these plans is not material either at the plan level or in the aggregate. Linde’s contributions to these plans were $2 million in 2020, 2019, and 2018 (these costs are not included in the tables that follow). For all MEPs, Linde’s contributions were significantly less than 1% of the total contributions to each plan for 2019 and 2018. Total 2020 contributions were not yet available from the MEPs.
Linde has obtained the most recently available Pension Protection Act ("PPA") annual funding notices from the Trustees of the MEPs. The PPA classifies MEPs as either Red, Yellow or Green Zone plans. Among other factors, plans in the Red Zone are generally less than 65 percent funded with a projected insolvency date within the next twenty years; plans in the Yellow Zone are generally 65 to 80 percent funded; and plans in the Green Zone are generally at least 80 percent funded. Red Zone plans are considered to be in "critical" or "critical and declining" status, while Yellow Zone plans are considered to be in "endangered" status. Plans that are in neither "critical" nor "endangered" status are considered to have Green Zone status. According to the most recent data available, four of the MEPs that the company participates in are in a Red Zone status and four are in a Green Zone status. As of December 31, 2020, the four Red Zone plans have pending or have implemented financial improvement or rehabilitation plans. Linde does not currently anticipate significant future obligations due to the funding status of these plans. If Linde determined it was probable that it would withdraw from an MEP, the company would record a liability for its portion of the MEP’s unfunded pension obligations, as calculated at that time. Historically, such withdrawal payments have not been significant.
Defined Contribution Plans
Linde’s U.S. business employees are eligible to participate in the Linde defined contribution savings plan. Employees may contribute up to 40% of their compensation, subject to the maximum allowable by IRS regulations. For the U.S. packaged gases business, company contributions to this plan are calculated as a percentage of salary based on age plus service. U.S. employees other than those in the packaged gases business have company contributions to this plan calculated on a graduated scale based on employee contributions to the plan. The cost for these defined contribution plans was $46 million in 2020, $47 million in 2019 and $33 million in 2018 (these costs are not included in the tables that follow).
The defined contribution plans include a non-leveraged employee stock ownership plan ("ESOP") which covers all employees participating in this plan. The collective number of shares of Linde ordinary shares in the ESOP totaled 1,872,450 at December 31, 2020.
Certain international subsidiaries of the company also sponsor defined contribution plans where contributions are determined under various formulas. The expense for these plans was $106 million in 2020, $95 million in 2019 and $32 million in 2018 (these expenses are not included in the tables that follow).
Postretirement Benefits Other Than Pensions (OPEB)
Linde provides health care and life insurance benefits to certain eligible retired employees. These benefits are provided through various insurance companies and healthcare providers. The company does not currently fund its postretirement benefits obligations. Linde’s retiree plans may be changed or terminated by Linde at any time for any reason with no liability to current or future retirees.
Linde uses a measurement date of December 31 for its pension and other post-retirement benefit plans.
Pension and Postretirement Benefit Costs
The components of net pension and postretirement benefits other than pension ("OPEB") costs for 2020, 2019 and 2018 are shown in the table below (2018 reflects the impact of the Linde AG merger on October 31, 2018 and the divestiture of Praxair's European industrial gases business on December 3, 2018 (see Note 2)): 
(Millions of dollars)
Year Ended December 31,
PensionsOPEB
202020192018202020192018
Amount recognized in Operating Profit
     Service cost$150 $142 $74 $2 $2 $2 
Amount recognized in Net pension and OPEB cost (benefit), excluding service cost
     Interest cost208 261 128 5 7 5 
     Expected return on plan assets(482)(462)(219)— — — 
     Net amortization and deferral90 61 71 (4)(4)(3)
     Curtailment and termination benefits (a)— 8 — — — — 
     Settlement charges (b)6 97 14 — — — 
$(178)$(35)$(6)$1 $3 $2 
Amount recognized in Net gain on sale of businesses
    Settlement gains from divestitures (c)
— — (44)— — — 
Net periodic benefit cost (benefit)$(28)$107 $24 $3 $5 $4 
(a) In 2019, Linde recorded curtailment gains of $9 million and a charge of $17 million for termination benefits, primarily in connection with a defined benefit pension plan freeze.
(b) In the third quarter of 2020, Linde recorded a pension settlement charge of $6 million triggered by lump sum benefit payments made from a U.S. non-qualified plan.
In the first quarter of 2019, benefits of $91 million were paid related to the settlement of a U.S. non-qualified plan. Such benefits were triggered by a change in control provision and resulted in a settlement charge of $51 million. In the third and fourth quarters of 2019, Linde recorded pension settlement charges of $40 million and $6 million, respectively, related to lump sum payments made from a U.S. qualified plan. These payments were triggered by merger-related divestitures.
2018 includes the impact of a $4 million charge and a $10 million charge recorded in the third and fourth quarters, respectively. In the third quarter, a series of lump sum benefit payments made from the U.S. supplemental pension plan triggered a settlement of the related pension obligation. In the fourth quarter, a change in control provision triggered the settlement of a U.S. non-qualified plan.
(c) In connection with Praxair merger-related divestitures, primarily the European industrial gases business, certain European pension plan obligations were settled. This resulted in the recognition of associated pension benefit obligations and deferred losses in accumulated other comprehensive income (loss) within operating profit in the "Net gain on sale of businesses" line item.
Funded Status
Changes in the benefit obligation and plan assets for Linde’s pension and OPEB programs, including reconciliation of the funded status of the plans to amounts recorded in the consolidated balance sheet, as of December 31, 2020 and 2019 are shown below. 
(Millions of dollars)
Year Ended December 31,
Pensions 
20202019OPEB
U.S.International U.S.International20202019
Change in Benefit Obligation ("PBO")
Benefit obligation, January 1$2,552 $8,689 $2,508 $7,533 $192 $184 
Service cost37 113 38 104 2 2 
Interest cost68 140 81 180 5 7 
Divestitures — — (1)— — — 
Participant contributions— 18 — 20 11 8 
Plan amendment— 7 — 13 (13)— 
Actuarial loss (gain)250 893 266 1,045 (2)8 
Benefits paid(152)(320)(105)(333)(22)(20)
Plan settlement(9)(14)(235)— — — 
Plan curtailment— (1)— (9)— 2 
Foreign currency translation and other changes— 462 — 136 (1)1 
Benefit obligation, December 31$2,746 $9,987 $2,552 $8,689 $172 $192 
Accumulated benefit obligation ("ABO")$2,646 $9,830 $2,464 $8,553 
Change in Plan Assets
Fair value of plan assets, January 1$2,048 $6,888 $1,952 $6,292 $— $— 
Actual return on plan assets386 641 341 598 — — 
Company contributions25 66 — 94 — — 
Participant contributions— 18 — 20 — — 
Benefits paid from plan assets(149)(267)(244)(268)— — 
Divestitures — — (1)— — — 
Foreign currency translation and other changes— 307 — 152 — — 
Fair value of plan assets, December 31$2,310 $7,653 $2,048 $6,888 $— $— 
Funded Status, End of Year$(436)$(2,334)$(504)$(1,801)$(172)$(192)
Recorded in the Balance Sheet (Note 7)
Other long-term assets$2 $53 $— $78 $— $— 
Other current liabilities(9)(13)(6)(10)(12)(11)
Other long-term liabilities(429)(2,374)(498)(1,869)(160)(181)
Net amount recognized, December 31$(436)$(2,334)$(504)$(1,801)$(172)$(192)
Amounts recognized in accumulated other comprehensive income (loss) consist of:
Net actuarial loss (gain)$687 $1,766 $753 $1,110 $(11)$(10)
Prior service cost (credit)— 9 — 4 (15)(4)
Deferred tax benefit (Note 7)(182)(383)(190)(251)5 (5)
Amount recognized in accumulated other comprehensive income (loss) (Note 7)$505 $1,392 $563 $863 $(21)$(19)
Comparative funded status information as of December 31, 2020 and 2019 for select international pension plans is presented in the table below as the benefit obligations of these plans are considered to be significant relative to the total benefit obligation:
 United KingdomGermanyOther InternationalTotal International
(Millions of dollars)2020202020202020
Benefit obligation, December 31$6,012 $2,582 $1,393 $9,987 
Fair value of plan assets, December 315,355 1,258 1,040 7,653 
Funded Status, End of Year$(657)$(1,324)$(353)$(2,334)
 United KingdomGermanyOther InternationalTotal International
(Millions of dollars)2019201920192019
Benefit obligation, December 31$5,221 $2,180 $1,288 $8,689 
Fair value of plan assets, December 314,777 1,119 992 6,888 
Funded Status, End of Year$(444)$(1,061)$(296)$(1,801)
The changes in plan assets and benefit obligations recognized in other comprehensive income in 2020 and 2019 are as follows:
 PensionsOPEB
(Millions of dollars)2020201920202019
Current year net actuarial losses (gains)*$598 $834 $(2)$8 
Amortization of net actuarial gains (losses)(89)(59)2 3 
Plan amendment7 (4)(13)— 
Amortization of prior service credits (costs)(1)(2)2 1 
Pension settlements(6)(97)— — 
Curtailments(1)— — 2 
Foreign currency translation and other changes87 12 (1)— 
Total recognized in other comprehensive income$595 $684 $(12)$14 
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 *    Pension net actuarial losses in 2020 and 2019 are largely driven by lower discount rates across all significant pension plans. In the U.S., the benefit from the actual return on assets in both 2020 and 2019 largely offset the actuarial loss generated from a higher PBO, resulting from the low discount rate environment. For the international plans, the unfavorable impact of lower discount rates outweighed favorable plan asset experience in both years. OPEB net actuarial gains in 2020 relate to the favorable impact of liability experience and demographic assumptions, which more than outweighed the adverse impact of lower year-over-year discount rates. OPEB net actuarial losses in 2019 relate to the low interest rate environment, which was partially offset by favorable actual benefit payment experience.
The following table provides information for pension plans where the accumulated benefit obligation exceeds the fair value of plan assets:
(Millions of dollars)
Year Ended December 31,
Pensions
20202019
U.S.InternationalU.S.International
Accumulated benefit obligation ("ABO")$2,518 $8,694 $2,464 $7,664 
Fair value of plan assets$2,180 $6,254 $2,048 $5,849 
The following table provides information for pension plans where the projected benefit obligation exceeds the fair value of plan assets:
(Millions of dollars)
Year Ended December 31,
Pensions
20202019
U.S.InternationalU.S.International
Projected benefit obligation ("PBO")$2,618 $8,845 $2,552 $7,810 
Fair value of plan assets$2,180 $6,282 $2,048 $5,872 

Assumptions
The assumptions used to determine benefit obligations are as of the respective balance sheet dates and the assumptions used to determine net benefit cost are as of the previous year-end, as shown below:
 Pensions  
 U.S.InternationalOPEB
 202020192020201920202019
Weighted average assumptions used to determine benefit obligations at December 31,
Discount rate2.40 %3.20 %1.36 %1.91 %2.39 %3.19 %
Interest crediting rate1.57 %2.19 %1.01 %1.08 %N/AN/A
Rate of increase in compensation levels 3.25 %3.25 %2.55 %2.46 %N/AN/A
Weighted average assumptions used to determine net periodic benefit cost for years ended December 31,
Discount rate 3.20 %4.20 %1.91 %2.72 %3.19 %4.16 %
Interest crediting rate2.19 %3.34 %1.08 %1.23 %N/AN/A
Rate of increase in compensation levels 3.25 %3.25 %2.46 %2.38 %N/AN/A
Expected long-term rate of return on plan assets (1)7.00 %7.27 %5.31 %5.15 %N/AN/A
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(1)    The expected long term rate of return on the U.S. and international plan assets is estimated based on the plans' investment strategy and asset allocation, historical capital market performance and, to a lesser extent, historical plan performance. For the U.S. plans, the expected rate of return of 7.00% was derived based on the target asset allocation of 40%-60% equity securities (approximately 7.7% expected return), 30%-50% fixed income securities (approximately 5.4% expected return) and 5%-15% alternative investments (approximately 6.3% expected return). For the international plans, the expected rate of return was derived based on the weighted average target asset allocation of 15%-25% equity securities (approximately 6.4% expected return), 30%-50% fixed income securities (approximately 4.8% expected return), and 30%-50% alternative investments (approximately 5% expected return). For the U.S. plan assets, the actual annualized total return for the most recent 10-year period ended December 31, 2020 was approximately 9.5%. For the international plan assets, the actual annualized total return for the same period was approximately 7.9%. Changes to plan asset allocations and investment strategy over this time period limit the value of historical plan performance as factor in estimating the expected long term rate of return. For 2021, the expected long-term rate of return on plan assets will be 7.00% for the U.S. plans. For 2021, the expected weighted average long-term rate of return for international plans will be 5.27%.
 OPEB
Assumed healthcare cost trend rates20202019
Historical Praxair, Inc. plans
Healthcare cost trend assumed6.50 %7.00 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)5.00 %5.00 %
Year that the rate reaches the ultimate trend rate20272027
Historical Linde AG plans
Healthcare cost trend assumed 6.50 %5.49 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)5.00 %4.50 %
Year that the rate reaches the ultimate trend rate20272038
Pension Plan Assets

The investments of the U.S. pension plan are managed to meet the future expected benefit liabilities of the plan over the long term by investing in diversified portfolios consistent with prudent diversification and historical and expected capital market returns. Investment strategies are reviewed by management and investment performance is tracked against appropriate benchmarks. There are no concentrations of risk as it relates to the assets within the plans. The international pension plans are managed individually based on diversified investment portfolios, with different target asset allocations that vary for each plan. Weighted-average asset allocations at December 31, 2020 and 2019 for Linde’s U.S. and international pension plans, as well as respective asset allocation ranges by major asset category, are generally as follows: 

 U.S.International
Asset CategoryTarget 2020Target 201920202019Target 2020Target 201920202019
Equity securities40%-60%40%-60%66 %55 %15%-25%15%-25%27 %23 %
Fixed income securities30%-50%30%-50%27 %30 %30%-50%30%-50%34 %41 %
Other5%-15%5%-15%7 %15 %30%-50%30%-50%39 %36 %

The following table summarizes pension assets measured at fair value by asset category at December 31, 2020 and 2019. For the twelve months ended December 31, 2020, transfers of assets of $15 million into Level 3 include insurance contract and real estate investments of $11 million and $4 million, respectively, which were reclassified as there is no active market quotation available. See Note 13 for the definition of levels within the fair value hierarchy:
 Fair Value Measurements Using  
 Level 1Level 2Level 3 **Total
(Millions of dollars)20202019202020192020201920202019
Cash and cash equivalents$524 $436 $— $— $— $— $524 $436 
Equity securities:
Global equities1,974 1,395 — — — — 1,974 1,395 
Mutual funds324 110 — 52 — — 324 162 
Fixed income securities:
Government bonds— — 1,545 1,642 — — 1,545 1,642 
Emerging market debt— — 520 459 — — 520 459 
Mutual funds123 225 12 14 — — 135 239 
Corporate bonds— — 573 401 — — 573 401 
Bank loans— — 242 210 — — 242 210 
Alternative investments:
Real estate funds— — — — 335 316 335 316 
Private debt— — — — 1,120 1,003 1,120 1,003 
Insurance contracts— — — — 11 — 11 — 
Liquid alternative— — 1,083 1,087 — — 1,083 1,087 
Other investments— — 60 33 — — 60 33 
Total plan assets at fair value,
December 31,		$2,945 $2,166 $4,035 $3,898 $1,466 $1,319 $8,446 $7,383 
Pooled funds *1,517 1,553 
Total fair value plan assets
December 31,		$9,963 $8,936 
* Pooled funds are measured using the net asset value ("NAV") as a practical expedient for fair value as permissible under the accounting standard for fair value measurements and have not been categorized in the fair value hierarchy.
** The following table summarizes changes in fair value of the pension plan assets classified as level 3 for the periods ended December 31, 2020 and 2019: 
(Millions of dollars)Insurance ContractsReal Estate FundsPrivate DebtTotal
Balance, December 31, 2018$— $298 $671 $969 
Gain/(Loss) for the period— 24 30 54 
Acquisitions— — 14 14 
Purchases— 26 304 330 
Sales— (22)(33)(55)
Transfer into/ (out of) Level 3— (10)— (10)
Foreign currency translation— — 17 17 
Balance, December 31, 2019$— $316 $1,003 $1,319 
Gain/(Loss) for the period— (10)4 (6)
Purchases— 21 137 158 
Sales— (10)(69)(79)
Transfer into / (out of) Level 311 4 — 15 
Foreign currency translation— 14 45 59 
Balance, December 31, 2020$11 $335 $1,120 $1,466 
The descriptions and fair value methodologies for the company's pension plan assets are as follows:
Cash and Cash Equivalents – This category includes cash and short-term interest bearing investments with maturities of three months or less. Investments are valued at cost plus accrued interest. Cash and cash equivalents are classified within level 1 of the valuation hierarchy.
Equity Securities – This category is comprised of shares of common stock in U.S. and international companies from a diverse set of industries and size. Common stock is valued at the closing market price reported on a U.S. or international exchange where the security is actively traded. Equity securities are classified within level 1 of the valuation hierarchy.
Mutual Funds – These categories consist of publicly and privately managed funds that invest primarily in marketable equity and fixed income securities. The fair value of these investments is determined by reference to the net asset value of the underlying securities of the fund. Shares of publicly traded mutual funds are valued at the net asset value quoted on the exchange where the fund is traded and are primarily classified as level 1 within the valuation hierarchy.
U.S. and International Government Bonds – This category includes U.S. treasuries, U.S. federal agency obligations and international government debt. The majority of these investments do not have quoted market prices available for a specific government security and so the fair value is determined using quoted prices of similar securities in active markets and is classified as level 2 within the valuation hierarchy.
Corporate Bonds – This category is comprised of corporate bonds of U.S. and international companies from a diverse set of industries and size. The fair values for U.S. and international corporate bonds are determined using quoted prices of similar securities in active markets and observable data or broker or dealer quotations. The fair values for these investments are classified as level 2 within the valuation hierarchy.
Pooled Funds - Pooled fund NAVs are provided by the trustee and are determined by reference to the fair value of the underlying securities of the trust, less its liabilities, which are valued primarily through the use of directly or indirectly observable inputs. Depending on the pooled fund, underlying securities may include marketable equity securities or fixed income securities.
Bank Loans - This category is comprised of traded syndicated loans of larger corporate borrowers. Such loans are issued by sub-investment grade rated companies both in the U.S. and internationally and are syndicated by investment banks to institutional investors. They are regularly traded in an active dealer market comprised of large investment banks, which supply bid and offer quotes and are therefore classified within level 2 of the valuation hierarchy.
Liquid Alternative Investments - This category is comprised of investments in alternative mutual funds whose holdings include liquid securities, cash, and derivatives. Such funds focus on diversification and employ a variety of investing strategies including long/short equity, multi-strategy, and global macro. The fair value of these investments is determined by reference to the net asset value of the underlying holdings of the fund, which can be determined using observable data (e.g., indices, yield curves, quoted prices of similar securities), and is classified within level 2 of the valuation hierarchy.
Insurance Contracts – This category is comprised of purchased annuity insurance contracts (annuity contract buy-ins) and is intended to mitigate the Company's exposure to certain risks, such as longevity risk. The fair value is calculated based on the cash surrender value of the purchased annuity insurance contract, which is determined based on such factors as the fair value of the underlying assets and discounted cash flows. These contracts are with highly rated insurance companies. Insurance contracts are classified within level 3 of the valuation hierarchy.
Real Estate Funds – This category includes real estate properties, partnership equities and investments in operating companies. The fair value of the assets is determined using discounted cash flows by estimating an income stream for the property plus a reversion into a present value at a risk adjusted rate. Yield rates and growth assumptions utilized are derived from market transactions as well as other financial and industry data. The fair value for these investments are classified within level 3 of the valuation hierarchy.
Private Debt - This category includes non-traded, privately-arranged loans between one or a small group of private debt investment managers and corporate borrowers, which are typically too small to access the syndicated market and have no credit rating. This category also includes similar loans to real estate companies or individual properties. Loans included in this category are valued at par value, are held to maturity or to call, and are classified within level 3 of the valuation hierarchy.
Contributions
At a minimum, Linde contributes to its pension plans to comply with local regulatory requirements (e.g., ERISA in the United States). Discretionary contributions in excess of the local minimum requirements are made based on many factors, including long-term projections of the plans' funded status, the economic environment, potential risk of overfunding,
pension insurance costs and alternative uses of the cash. Changes to these factors can impact the timing of discretionary contributions from year to year. Pension contributions were $91 million in 2020, $94 million in 2019 and $87 million in 2018. Estimated required contributions for 2021 are currently expected to be in the range of $70 million to $80 million.

Estimated Future Benefit Payments
The following table presents estimated future benefit payments, net of participant contributions: 
(Millions of dollars)Pensions 
Year Ended December 31,U.S.    InternationalOPEB    
2021$175 $360 $13 
2022146 360 12 
2023148 371 12 
2024151 380 11 
2025155 389 10 
2026-2030771 1,046 44