Merger-related Divestitures, Discontinued Operations and Net Assets Held for Sale (Tables)

3 Months Ended

Mar. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Summary of Divestitures, Discontinued Operations, and Assets Held For Sale

The net carrying value of Linde AG's Americas business assets and liabilities divested on March 1, 2019 is presented below:

Millions of dollars	Carrying Value
Assets
Cash and cash equivalents	$	200
Accounts receivable – net	479
Inventories	181
Prepaid and other current assets	409
Property, plant and equipment – net	1,590
Equity investments	37
Goodwill	3
Other intangible assets – net	10
Other long-term assets	76
Asset adjustments for estimated fair value	1,650
Total Assets Divested	$	4,635
Liabilities
Accounts payable	$	94
Accrued taxes	60
Other current liabilities	767
Long-term debt	2
Other long-term liabilities	98
Deferred credits	177
Total Liabilities Divested	$	1,198
Cumulative translation adjustment, net of taxes	12
Net Assets Divested	$	3,449

As such, operations related to the Linde AG merger-related divestitures are included within Income from discontinued operations, net of tax for periods subsequent to the merger until the respective sale transactions are completed, as summarized below:

Millions of dollars	Quarter ended March 31, 2019
Net sales	$	424
Cost of sales	247
Other operating costs	43
Operating profit	$	134
Income from equity investments	2
Income taxes	47
Income from discontinued operations, net of tax	$	89
Noncontrolling interests	(7		)
Income from discontinued operations, net of tax and noncontrolling interests	$	82

As of March 31, 2019 and December 31, 2018, the following assets and liabilities are reported as components of the net assets held for sale in the condensed consolidated balance sheets:

Millions of dollars	March 31, 2019		December 31, 2018
Assets
Cash and cash equivalents	$	—	$	182
Accounts receivable – net	71		297
Inventories	29		209
Prepaid and other current assets	1		54
Property, plant and equipment – net	545		2,005
Other Assets	68		187
Asset adjustments for estimated fair value (Note 4)	1,018		2,564
Total Assets Classified as Assets Held for Sale	$	1,732	$	5,498
Liabilities
Accounts payable	10		125
Deferred credits	35		206
Other liabilities	58		437
Total Liabilities Classified as Assets Held for Sale	103		768
Net Assets Classified as Held for Sale	$	1,629	$	4,730