Other Charges

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

2023 Other Charges

Other charges were $18 million for the three months ended March 31, 2023 and primarily related to costs incurred due to the intercompany reorganization. Other charges had an associated net income tax benefit of $45 million primarily comprised of a benefit of $124 million related to the resolution of a U.S. income tax audit, partially offset by an accrual of $85 million for the potential settlement of an international income tax matter.

The following table summarizes the activities related to the company's pre-tax Other charges for the three months ended March 31, 2023:


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




Balance, December 31, 2022	$	281	$	27	$	308	$	12	$	320
2023 Other charges	—		—		—		18		18
Less: Cash payments / receipts	(79)		—		(79)		—		(79)
Less: Non-cash charges	—		—		—		—		—
Foreign currency translation and other	(1)		1		—		(2)		(2)
Balance, March 31, 2023	$	201	$	28	$	229	$	28	$	257

2022 Other Charges

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 ($4 million after tax), for the three months ended March 31, 2022, 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.

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.