Transaction Costs and Other Charges

3 Months Ended

Mar. 31, 2019

Unusual or Infrequent Items, or Both [Abstract]

Transaction Costs and Other Charges

Transaction Costs and Other Charges

2019 Charges

Transaction costs and other charges were $89 million for the quarter ended March 31, 2019 ($81 million after-tax and noncontrolling interests).

Transaction costs

On October 31, 2018, Praxair and Linde AG combined under Linde plc, as contemplated by the business combination agreement (see Note 1). In connection with the business combination, Linde incurred merger-related costs which totaled $56 million ($53 million after-tax) for the quarter ended March 31, 2019.

Other charges

Also included in transaction costs and other charges are synergy-related charges of $33 million for the quarter ended March 31, 2019 ($28 million after-tax) primarily related to severance actions.

2018 Charges

Transaction costs and other charges were $19 million for the quarter ended March 31, 2018 ($18 million after-tax and noncontrolling interests).

Classification in the condensed consolidated financial statements

The costs are shown within operating profit in a separate line item on the consolidated statements of income. On the condensed consolidated statement of cash flows, the impact of these costs, net of cash payments, is shown as an adjustment to reconcile net income to net cash provided by operating activities. In Note 13 - Segments, Linde excluded these costs from its management definition of segment operating profit; a reconciliation of segments operating profit to consolidated operating profit is shown within the segment operating profit table.