For the three months ended March 31, 2023, general and administrative expenses increased by $13 million, or 17%, due to increases in both salaries and benefits expenses and other general and administrative costs.
Salaries and benefits expenses related to general and administrative increased by $3 million, or 6%, primarily due to increase of non-cash equity incentives.
Other general and administrative expenses increased by $10 million, or 33%, primarily due to increase in head office costs including professional fees, facilities, data processing and certain other corporate expenses.
Restructuring charges
For the three months ended March 31, 2023, restructuring charges of $23 million primarily related to severance and related benefits costs resulting from a reduction in workforce on account of changes to our internal operating model.
Depreciation and Amortization
For the three months ended March 31, 2023, depreciation and amortization increased marginally by $2 million, or 6%.
Interest Expense
For the three months ended March 31, 2023, interest expense increased by $15 million, or 75%, primarily due to higher amount of outstanding term loan debt and higher interest rates during the three months ended March 31, 2023 compared to the three months ended March 31, 2022, partially offset by the benefit resulting from interest rate swaps.
Fair Value Movements on Earnout Derivative Liabilities
During the three months ended March 31, 2023, the fair value movement of our derivative liabilities related to our non-employee earnout shares resulted in a credit of $3 million to our consolidated statement of operations.
Other Income, net
For the three months ended March 31, 2023, other income, net, increased by $5 million primarily due to favorable changes in foreign exchange rates, offset by increased costs related to non-service components of net periodic pension cost.
Benefit from Income Taxes
GBT JerseyCo is tax resident in the U.K. and is treated as a partnership for U.S. federal income tax purposes. As a partnership, GBT JerseyCo is itself generally not subject to U.S. federal income tax under current U.S. tax laws, and any taxable income or loss is passed through and included in the taxable income or loss of its members, including GBTG. GBTG is subject to U.S. federal income taxes with respect to its distributive share of the net taxable income or loss and any related tax credits of GBT JerseyCo. We are also subject to taxes for GBTG on a standalone basis in respect of any taxable gains or losses and deferred taxes related to its investment in GBT JerseyCo.
We are subject to taxes in the different jurisdictions in which we operate. Our effective tax rate differs from the statutory tax rate of 21% primarily due to different jurisdictional tax rates, together with the impact of permanent differences and GBTG’s incremental layer of taxation due to our Up-C structure. For the three months ended March 31, 2023, our effective tax rate was 23.88% resulting in income tax benefit of $8 million that was primarily in relation to the pre-tax loss arising in GBT JerseyCo. The impact on the effective tax rate of any permanent items and GBTG’s standalone tax position is more significant in the period as the pre-tax loss is lower in 2023 than 2022. Our effective income tax rate for the three months ended March 31, 2022 was 21.74%, primarily due to country rate differentials.
We believe we are well positioned to monetize both the historical and additional tax benefits in future periods.