Cost Reduction Programs and Other Charges

3 Months Ended

Mar. 31, 2022

Restructuring and Related Activities [Abstract]

Cost Reduction Programs and Other Charges

2022 Charges

Cost reduction programs and other charges were a net benefit of $4 million for the three months ended March 31, 2022 ($1 million, after tax). Total cost reduction program related charges were $4 million for the three months ended March 31, 2022 ($4 million, after tax), primarily related to severance in the APAC segment. Merger-related costs and other charges were a benefit of $8 million for the three months ended March 31, 2022 (benefit of $5 million after tax), primarily related to a gain on sale of an interest in a joint venture.

The following table summarizes the activities related to the company's cost reduction related charges for the three months ended March 31, 2022:


(millions of dollars)	Severance costs		Other cost reduction charges		Total cost reduction program related charges		Merger-related and other charges		Total




Balance, December 31, 2021	$	384	$	38	$	422	$	31	$	453
2022 Cost Reduction Programs and Other Charges	4		—		4		(8)		(4)
Less: Cash payments / receipts	(34)		(1)		(35)		5		(30)

Foreign currency translation and other	(8)		(3)		(11)		—		(11)
Balance, March 31, 2022	$	346	$	34	$	380	$	28	$	408

2021 Charges

Cost reduction programs and other charges were a net benefit of $8 million for the three months ended March 31, 2021, ($28 million after tax). Total cost reduction program related charges were $44 million ($34 million after tax), for the three months ended March 31, 2021, which consisted primarily of severance charges of $26 million and other charges of $18 million related to the execution of the company's synergistic actions. Merger-related and other charges were a benefit of $52 million for the three months ended March 31, 2021 ($62 million after tax), primarily due to a $52 million gain triggered by a joint venture deconsolidation in the APAC segment and other tax adjustments.

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 statements 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 10 Segments, Linde excluded these costs from its management definition of segment operating profit; a reconciliation of segment operating profit to consolidated operating profit is shown within the segment operating profit table.