Document and Entity Information
Document and Entity Information | 6 Months Ended |
Mar. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
Current Fiscal Year End Date | --09-30 |
Entity Registrant Name | AIR PRODUCTS & CHEMICALS INC /DE/ |
Entity Central Index Key | 2,969 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 219,193,653 |
Consolidated Income Statements
Consolidated Income Statements (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||||
Sales | $ 2,155.7 | $ 1,980.1 | $ 4,372.3 | $ 3,862.6 |
Cost of sales | 1,506.5 | 1,403.8 | 3,078.3 | 2,720.5 |
Selling and administrative | 194.6 | 177.6 | 386.2 | 342.3 |
Research and development | 14.5 | 14.8 | 29.1 | 29.8 |
Business separation costs | 0 | 0 | 0 | 32.5 |
Cost reduction and asset actions | 0 | 10.3 | 0 | 60.3 |
Other income (expense), net | 15.3 | 22 | 37.4 | 46.7 |
Operating Income | 455.4 | 395.6 | 916.1 | 723.9 |
Equity affiliates' income | 43.7 | 34.2 | 57.5 | 72.2 |
Interest expense | 30.4 | 30.5 | 60.2 | 60 |
Other non-operating income (expense), net | 11.1 | 5.3 | 20.9 | 5.1 |
Income From Continuing Operations Before Taxes | 479.8 | 404.6 | 934.3 | 741.2 |
Income tax provision | 56.2 | 94.5 | 348 | 172.9 |
Income From Continuing Operations | 423.6 | 310.1 | 586.3 | 568.3 |
Income (Loss) From Discontinued Operations, net of tax | 0 | 1,825.6 | (1) | 1,873.8 |
Net Income | 423.6 | 2,135.7 | 585.3 | 2,442.1 |
Net Income Attributable to Noncontrolling Interests of Continuing Operations | 7.2 | 5.7 | 14.3 | 12.3 |
Net Income Attributable to Air Products | 416.4 | 2,130 | 571 | 2,429.8 |
Net Income Attributable to Air Products | ||||
Income from continuing operations | 416.4 | 304.4 | 572 | 556 |
Income (Loss) from discontinued operations | 0 | 1,825.6 | (1) | 1,873.8 |
Net Income Attributable to Air Products | $ 416.4 | $ 2,130 | $ 571 | $ 2,429.8 |
Basic Earnings Per Common Share Attributable to Air Products | ||||
Income from continuing operations, basic (in dollars per share) | $ 1.90 | $ 1.40 | $ 2.61 | $ 2.55 |
Income (Loss) from discontinued operations, basic (in dollars per share) | 0 | 8.38 | 0 | 8.61 |
Net Income (Loss) Attributable to Air Products (in dollars per share) | 1.90 | 9.78 | 2.61 | 11.16 |
Diluted Earnings Per Common Share Attributable to Air Products | ||||
Income from continuing operations, diluted (in dollars per share) | 1.89 | 1.39 | 2.59 | 2.53 |
Income (Loss) from discontinued operations, diluted (in dollars per share) | 0 | 8.31 | 0 | 8.53 |
Net Income (Loss) Attributable to Air Products (in dollars per share) | $ 1.89 | $ 9.70 | $ 2.59 | $ 11.06 |
Weighted Average Common Shares - Basic (in millions) | 219.4 | 217.9 | 219.2 | 217.8 |
Weighted Average Common Shares - Diluted (in millions) | 220.8 | 219.7 | 220.7 | 219.6 |
Dividends Declared Per Common Share - Cash (in dollars per share) | $ 1.10 | $ 0.95 | $ 2.05 | $ 1.81 |
Consolidated Comprehensive Inco
Consolidated Comprehensive Income Statements (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 423.6 | $ 2,135.7 | $ 585.3 | $ 2,442.1 |
Other Comprehensive Income (Loss), net of tax: | ||||
Translation adjustments, net of tax | 125.6 | 149.6 | 262 | (131.6) |
Net gain (loss) on derivatives, net of tax | 17.8 | (15.4) | 8.3 | (25.2) |
Pension and postretirement benefits, net of tax | 0 | 3.8 | 0 | 3.8 |
Reclassification adjustments: | ||||
Currency translation adjustment | 0 | 49.1 | 3.1 | 49.1 |
Derivatives, net of tax | (7.5) | 5.8 | (6.7) | 31.4 |
Pension and postretirement benefits, net of tax | 26.6 | 30.1 | 49.5 | 57.5 |
Total Other Comprehensive Income | 162.5 | 223 | 316.2 | (15) |
Comprehensive Income | 586.1 | 2,358.7 | 901.5 | 2,427.1 |
Net Income Attributable to Noncontrolling Interests | 7.2 | 5.7 | 14.3 | 12.3 |
Other Comprehensive Income Attributable to Noncontrolling Interests | 2.2 | 5 | 4.1 | 1.9 |
Comprehensive Income Attributable to Air Products | $ 576.7 | $ 2,348 | $ 883.1 | $ 2,412.9 |
Consolidated Comprehensive Inc4
Consolidated Comprehensive Income Statements (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect on translation adjustments | $ (13.2) | $ (8) | $ (19.8) | $ 24.3 |
Tax effect on net gain (loss) on derivatives | 4 | (5.7) | (1.3) | (16.4) |
Tax effect on pension and postretirement benefits | 0 | 1.2 | 0 | 1.2 |
Tax effect on derivatives reclassification adjustments | (3.3) | 2.7 | (1.6) | 13.3 |
Tax effect on pension and postretirement benefits reclassification adjustments | $ 7.9 | $ 13.7 | $ 18.9 | $ 26.6 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 |
Current Assets | ||
Cash and cash items | $ 3,066.9 | $ 3,273.6 |
Short-term investments | 137 | 404 |
Trade receivables, net | 1,252.3 | 1,174 |
Inventories | 339.9 | 335.4 |
Contracts in progress, less progress billings | 98.5 | 84.8 |
Prepaid expenses | 131.2 | 191.4 |
Other receivables and current assets | 370.5 | 403.3 |
Current assets of discontinued operations | 0 | 10.2 |
Total Current Assets | 5,396.3 | 5,876.7 |
Investment in net assets of and advances to equity affiliates | 1,305.6 | 1,286.9 |
Plant and equipment, at cost | 20,522.5 | 19,547.8 |
Less: accumulated depreciation | 11,704.8 | 11,107.6 |
Plant and equipment, net | 8,817.7 | 8,440.2 |
Goodwill, net | 815 | 721.5 |
Intangible assets, net | 444.4 | 368.3 |
Noncurrent capital lease receivables | 1,128.5 | 1,131.8 |
Other noncurrent assets | 603.6 | 641.8 |
Total Noncurrent Assets | 13,114.8 | 12,590.5 |
Total Assets | 18,511.1 | 18,467.2 |
Current Liabilities | ||
Payables and accrued liabilities | 1,551.6 | 1,814.3 |
Accrued income taxes | 76.6 | 98.6 |
Short-term borrowings | 112.5 | 144 |
Current portion of long-term debt | 11.6 | 416.4 |
Current liabilities of discontinued operations | 0 | 15.7 |
Total Current Liabilities | 1,752.3 | 2,489 |
Long-term debt | 3,442.4 | 3,402.4 |
Other noncurrent liabilities | 1,923.5 | 1,611.9 |
Deferred income taxes | 699.7 | 778.4 |
Total Noncurrent Liabilities | 6,065.6 | 5,792.7 |
Total Liabilities | 7,817.9 | 8,281.7 |
Commitments and Contingencies - See Note 12 | ||
Air Products Shareholders’ Equity | ||
Common stock (par value $1 per share; issued 2018 and 2017 - 249,455,584 shares) | 249.4 | 249.4 |
Capital in excess of par value | 1,011.3 | 1,001.1 |
Retained earnings | 12,966.5 | 12,846.6 |
Accumulated other comprehensive loss | (1,535.3) | (1,847.4) |
Treasury stock, at cost (2018 - 30,261,931 shares; 2017 - 31,109,510 shares) | (2,111.1) | (2,163.5) |
Total Air Products Shareholders’ Equity | 10,580.8 | 10,086.2 |
Noncontrolling Interests | 112.4 | 99.3 |
Total Equity | 10,693.2 | 10,185.5 |
Total Liabilities and Equity | $ 18,511.1 | $ 18,467.2 |
Consolidated Balance Sheets (U6
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Sep. 30, 2017 |
Air Products Shareholders’ Equity | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, issued shares | 249,455,584 | 249,455,584 |
Treasury stock at cost, shares | 30,261,931 | 31,109,510 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities | ||
Net Income | $ 585.3 | $ 2,442.1 |
Less: Net income attributable to noncontrolling interests of continuing operations | 14.3 | 12.3 |
Net income attributable to Air Products | 571 | 2,429.8 |
(Income) Loss from discontinued operations | 1 | (1,873.8) |
Income from continuing operations attributable to Air Products | 572 | 556 |
Adjustments to reconcile income to cash provided by operating activities: | ||
Depreciation and amortization | 467.9 | 417.9 |
Deferred income taxes | (94.4) | (68.6) |
Tax reform repatriation | 310.3 | 0 |
Undistributed earnings of unconsolidated affiliates | 3.1 | (31.5) |
Gain on sale of assets and investments | (2.4) | (6.5) |
Share-based compensation | 22.5 | 18.5 |
Noncurrent capital lease receivables | 47.2 | 45.4 |
Write-down of long-lived assets associated with cost reduction actions | 0 | 45.7 |
Other adjustments | 44.7 | 34 |
Working capital changes that provided (used) cash, excluding effects of acquisitions and divestitures: | ||
Trade receivables | (30.2) | (53.8) |
Inventories | 5.5 | 20.7 |
Contracts in progress, less progress billings | (12.2) | (5) |
Other receivables | 23.2 | 118.4 |
Payables and accrued liabilities | (260.4) | (178.6) |
Other working capital | 13.3 | (51.4) |
Cash Provided by Operating Activities | 1,110.1 | 861.2 |
Investing Activities | ||
Additions to plant and equipment | (572.5) | (532.2) |
Acquisitions, less cash acquired | 271.4 | 0 |
Investment in and advances to unconsolidated affiliates | 0 | (8.9) |
Proceeds from sale of assets and investments | 34.4 | 13.5 |
Purchases of investments | (345.7) | (1,823.2) |
Proceeds from investments | 612.9 | 400 |
Other investing activities | (2.6) | (1.6) |
Cash Used for Investing Activities | (544.9) | (1,952.4) |
Financing Activities | ||
Long-term debt proceeds | 0.5 | 1.3 |
Payments on long-term debt | (409.2) | (469.7) |
Net decrease in commercial paper and short-term borrowings | (22.4) | (816.6) |
Dividends paid to shareholders | (415.5) | (374) |
Proceeds from stock option exercises | 52.7 | 19.9 |
Other financing activities | (21.7) | (22.7) |
Cash Used for Financing Activities | (815.6) | (1,661.8) |
Discontinued Operations | ||
Cash used for operating activities | (3.1) | (520.8) |
Cash provided by investing activities | 18.6 | 3,750.6 |
Cash provided by financing activities | 0 | 69.5 |
Cash Provided by Discontinued Operations | 15.5 | 3,299.3 |
Effect of Exchange Rate Changes on Cash | 28.2 | (7.8) |
(Decrease) Increase in cash and cash items | (206.7) | 538.5 |
Cash and Cash items – Beginning of Year | 3,273.6 | 1,330.8 |
Cash and Cash Items – End of Period | $ 3,066.9 | $ 1,869.3 |
Basis of Presentation and Major
Basis of Presentation and Major Accounting Policies | 6 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Major Accounting Policies | BASIS OF PRESENTATION AND MAJOR ACCOUNTING POLICIES Refer to our 2017 Form 10-K for a description of major accounting policies. There have been no significant changes to these accounting policies during the first six months of fiscal year 2018 other than those detailed in Note 2 , New Accounting Guidance , under Accounting Guidance Implemented in 2018 . Certain prior year information has been reclassified to conform to the fiscal year 2018 presentation. The notes to the interim consolidated financial statements, unless otherwise indicated, are on a continuing operations basis. The consolidated financial statements of Air Products and Chemicals, Inc. and its subsidiaries (“we,” “our,” “us,” the “Company,” “Air Products,” or “registrant”) included herein have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the notes. The interim results for the periods indicated herein, however, do not reflect certain adjustments, such as the valuation of inventories on the last-in, first-out (LIFO) cost basis, which are only finally determined on an annual basis. In order to fully understand the basis of presentation, the consolidated financial statements and related notes included herein should be read in conjunction with the financial statements and notes thereto included in our 2017 |
New Accounting Guidance
New Accounting Guidance | 6 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Guidance | NEW ACCOUNTING GUIDANCE Accounting Guidance Implemented in 2018 Income Taxes In March 2018, the Financial Accounting Standards Board (FASB) issued an update for Staff Accounting Bulletin (SAB) No. 118 issued by the SEC in December 2017 related to the U.S. Tax Cuts and Jobs Act (“the Tax Act"). We adopted the SEC guidance under SAB No. 118 in the first quarter of fiscal year 2018. We continue to report the impacts of the Tax Act as provisional based on reasonable estimates as of 31 March 2018. The SEC guidance provides a one-year measurement period to complete accounting for provisional amounts. For additional details, see Note 17 , Income Taxes. Presentation of Net Periodic Pension and Postretirement Benefit Cost In March 2017, the FASB issued guidance for improving the presentation of net periodic pension cost and net periodic postretirement benefit cost. The amendments require that the service cost component of the net periodic benefit cost be presented in the same operating income line items as other compensation costs arising from services rendered by employees during the period. The non-service costs (e.g., interest cost, expected return on plan assets, amortization of actuarial gains/losses, settlements) should be presented in the income statement outside of operating income. The amendments also allow only the service cost component to be eligible for capitalization when applicable. We early adopted this guidance during the first quarter of fiscal year 2018. The amendments have been applied retrospectively for the income statement presentation requirements and prospectively for the limit on costs eligible for capitalization. The Company applied the practical expedient to use the amounts disclosed in its retirement benefits note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. Prior to adoption of the guidance, we classified all net periodic benefit costs within operating costs, primarily within "Cost of sales" and "Selling and administrative" on the consolidated income statements. The line item classification changes required by the new guidance did not impact the Company's pre‑tax earnings or net income; however, "Operating income" and "Other non-operating income (expense), net" changed by immaterial offsetting amounts. Derivative Contract Novations In March 2016, the FASB issued guidance to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require re-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. We adopted this guidance in the first quarter of fiscal year 2018. This guidance did not have an impact on our consolidated financial statements upon adoption. New Accounting Guidance to be Implemented Revenue Recognition In May 2014, the FASB issued guidance based on the principle that revenue is recognized in an amount expected to be collected and to which the entity expects to be entitled in exchange for the transfer of goods or services. We will adopt this guidance in fiscal year 2019 under the modified retrospective approach, which will result in a cumulative-effect adjustment as of 1 October 2018. We are in the process of evaluating our onsite gases, merchant gases, and sale of equipment contracts and implementing necessary changes to accounting policies, processes, controls, and systems to enable compliance with this new standard. We continue to evaluate the impact the adoption of this standard will have on our consolidated financial statements and related disclosures. Leases In February 2016, the FASB issued guidance which requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for all leases, including operating leases, with a term in excess of 12 months. The guidance also expands the quantitative and qualitative disclosure requirements. The guidance is effective in fiscal year 2020, with early adoption permitted, and must be applied using a modified retrospective approach. We are currently evaluating the impact of adopting this new guidance on the consolidated financial statements, including the assessment of our current lease population under the revised definition of what qualifies as a leased asset. The Company is the lessee under various agreements for real estate, distribution equipment, aircraft, and vehicles that are currently accounted for as operating leases. The new guidance will require the Company to record operating leases on the balance sheet with a right-of-use asset and corresponding liability for future payment obligations. Credit Losses on Financial Instruments In June 2016, the FASB issued guidance on the measurement of credit losses, which requires measurement and recognition of expected credit losses for financial assets, including trade receivables and capital lease receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The method to determine a loss is different from the existing guidance, which requires a credit loss to be recognized when it is probable. The guidance is effective beginning in fiscal year 2021, with early adoption permitted beginning in fiscal year 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements. Cash Flow Statement Classification In August 2016, the FASB issued guidance to reduce diversity in practice on how certain cash receipts and cash payments are classified in the statement of cash flows. The guidance is effective beginning fiscal year 2019, with early adoption permitted, and should be applied retrospectively. We plan to adopt this guidance in fiscal year 2019 and do not expect adoption to have a significant impact on our consolidated financial statements. Intra-Entity Asset Transfers In October 2016, the FASB issued guidance on the accounting for the income tax effects of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. Under the new guidance, the income tax consequences of an intra-entity asset transfer are recognized when the transfer occurs. The guidance is effective beginning in fiscal year 2019, with early adoption permitted as of the beginning of an annual reporting period. The guidance must be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the date of adoption. We are currently evaluating the impact this guidance will have on our consolidated financial statements and plan to adopt the guidance in fiscal year 2019. Derecognition of Nonfinancial Assets In February 2017, the FASB issued an update to clarify the scope of guidance on gains and losses from the derecognition of nonfinancial assets and to add guidance for partial sales of nonfinancial assets. The update must be adopted at the same time as the new guidance on revenue recognition discussed above, which we will adopt in fiscal year 2019. The guidance may be applied retrospectively or with a cumulative-effect adjustment to retained earnings at the date of adoption. We are currently evaluating the impact this update will have on our consolidated financial statements. Hedging Activities In August 2017, the FASB issued guidance on hedging activities to expand the related presentation and disclosure requirements, change how companies assess effectiveness, and eliminate the separate measurement and reporting of hedge ineffectiveness. The guidance also enables more financial and nonfinancial hedging strategies to become eligible for hedge accounting. The guidance is effective in fiscal year 2020, with early adoption permitted. For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment to eliminate the separate measurement of ineffectiveness within equity as of the beginning of the fiscal year the guidance is adopted. The amended presentation and disclosure guidance is applied prospectively. We are currently evaluating the impact this guidance will have on our consolidated financial statements. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS The results of our former Performance Materials Division (PMD) and Energy-from-Waste (EfW) segment are reflected in our consolidated financial statements as discontinued operations. During the second quarter of fiscal year 2017, we completed the sale of PMD to Evonik Industries AG (Evonik) for $3.8 billion in cash. A gain of $2,870 ( $1,833 after-tax, or $8.34 per share) was recognized on the sale, which closed on 3 January 2017. In fiscal year 2016, we discontinued efforts to start up and operate two EfW projects located in Tees Valley, United Kingdom. During the first quarter of fiscal year 2017, we recorded a loss on disposal of $59.3 ( $47.1 after-tax), primarily for land lease obligations and to update our estimate of the net realizable value of the plant assets. The loss on disposal was recorded as a component of discontinued operations while the liability associated with land lease obligations was and continues to be recorded in continuing operations. The liability recorded in continuing operations was approximately $68 as of 31 March 2018. Summarized Financial Information of Discontinued Operations For the three and six months ended 31 March 2018 , the loss from discontinued operations, net of tax, on the consolidated income statements was $0.0 and $1.0 , respectively. The year-to-date loss is related to EfW project exit activities and administrative costs. The following table details the businesses and major line items that comprise income from discontinued operations, net of tax, on the consolidated income statements for the three and six months ended 31 March 2017 : Three Months Ended 31 March 2017 Total Performance Energy- Discontinued Materials from-Waste (A) Operations Cost of sales $3.3 $3.0 $6.3 Selling and administrative 2.1 — 2.1 Other income (expense), net .7 (.4 ) .3 Income (Loss) Before Taxes (4.7 ) (3.4 ) (8.1 ) Income tax benefit (.3 ) (.9 ) (1.2 ) Income (Loss) From Operations of Discontinued Operations, net of tax (4.4 ) (2.5 ) (6.9 ) Gain on Disposal, net of tax 1,832.5 — 1,832.5 Income (Loss) From Discontinued Operations, net of tax $1,828.1 ($2.5 ) $1,825.6 Six Months Ended 31 March 2017 Total Performance Energy- Discontinued Materials from-Waste (A) Operations Sales $254.8 $— $254.8 Cost of sales 182.3 9.6 191.9 Selling and administrative 22.5 .2 22.7 Research and development 5.1 — 5.1 Other income (expense), net .3 (.1 ) .2 Operating Income (Loss) 45.2 (9.9 ) 35.3 Equity affiliates’ income .3 — .3 Income (Loss) Before Taxes 45.5 (9.9 ) 35.6 Income tax benefit (B) (50.8 ) (2.0 ) (52.8 ) Income (Loss) From Operations of Discontinued Operations, net of tax 96.3 (7.9 ) 88.4 Gain (Loss) on Disposal, net of tax 1,832.5 (47.1 ) 1,785.4 Income (Loss) From Discontinued Operations, net of tax $1,928.8 ($55.0 ) $1,873.8 (A) The loss from operations of discontinued operations for EfW primarily relates to land lease obligations, administrative costs, and costs incurred for project exit activities. (B) As a result of the expected gain on the sale of PMD, we released valuation allowances related to capital loss and net operating loss carryforwards during the first quarter of 2017 that favorably impacted our income tax provision within discontinued operations by approximately $66 . There were no assets or liabilities presented in discontinued operations on the consolidated balance sheets as of 31 March 2018. Current assets of discontinued operations on the consolidated balance sheets of $10.2 as of 30 September 2017 related to EfW. Current liabilities of discontinued operations on the consolidated balance sheets of $15.7 |
Materials Technologies Separati
Materials Technologies Separation | 6 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Materials Technologies Separation | MATERIALS TECHNOLOGIES SEPARATION In fiscal year 2017, we completed the separation of the divisions comprising the former Materials Technologies segment. As further discussed below, we completed the separation of the Electronic Materials Division (EMD) through the spin-off of Versum Materials, Inc. (Versum). For information on the disposition of PMD, refer to Note 3 , Discontinued Operations . Spin-off of EMD On 1 October 2016 (the distribution date), Air Products completed the spin-off of Versum into a separate and independent public company. The spin-off was completed by way of a distribution to Air Products’ stockholders of all of the then issued and outstanding shares of common stock of Versum on the basis of one share of Versum common stock for every two shares of Air Products’ common stock held as of the close of business on 21 September 2016 (the record date for the distribution). Fractional shares of Versum common stock were not distributed to Air Products' common stockholders. Air Products’ stockholders received cash in lieu of fractional shares. The spin-off of Versum was treated as a noncash transaction in the consolidated statements of cash flows in fiscal year 2017. There has been no activity in discontinued operations on the consolidated income statements and no assets or liabilities presented in discontinued operations on the consolidated balance sheets related to EMD for the periods presented. Business Separation Costs In connection with the dispositions of EMD and PMD, we incurred net separation costs of $30.2 for the six months ended 31 March 2017 . No business separation costs were incurred during the second quarter of fiscal year 2017 . The net costs include legal and advisory fees of $32.5 , which are reflected on the consolidated income statements as “Business separation costs,” and a pension settlement benefit of $2.3 that is now presented within "Other non-operating income (expense), net" as a result of the adoption of pension guidance at the beginning of fiscal year 2018. Refer to Note 2 , New Accounting Guidance , for additional information. No |
Cost Reduction and Asset Action
Cost Reduction and Asset Actions | 6 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Cost Reduction and Asset Actions | COST REDUCTION AND ASSET ACTIONS For the three months ended 31 March 2017 , we recognized an expense of $10.3 for severance and other benefits related to cost reduction actions. For the six months ended 31 March 2017 , we recognized a net expense of $60.3 , which included $45.7 for asset actions and $18.0 for severance and other benefits. These expenses were partially offset by the favorable settlement of the remaining accrual from prior year actions discussed below. In fiscal year 2017, we recognized a net expense of $151.4 . The net expense included a charge of $154.8 for actions taken during fiscal year 2017, including asset actions of $ 88.5 and severance and other benefits of $ 66.3 , partially offset by the favorable settlement of the remaining $3.4 accrued balance associated with business restructuring actions taken in 2015. The 2017 charge related to the segments as follows: $39.3 in Industrial Gases – Americas, $77.9 in Industrial Gases – EMEA, $.9 in Industrial Gases – Asia, $2.5 in Industrial Gases – Global, and $34.2 in Corporate and other. The charges we record for cost reduction and asset actions have been excluded from segment operating income. The following table summarizes the carrying amount of the accrual for cost reduction and asset actions at 31 March 2018 : Severance and Other Benefits Asset Actions/Other Total 30 September 2016 $12.3 $— $12.3 2017 Charge 66.3 88.5 154.8 Noncash expenses — (84.2 ) (84.2 ) Amount reflected in pension liability (2.0 ) — (2.0 ) Amount reflected in other noncurrent liabilities — (2.2 ) (2.2 ) Cash expenditures (35.7 ) (1.2 ) (36.9 ) Currency translation adjustment (.3 ) — (.3 ) 30 September 2017 $40.6 $.9 $41.5 Amount reflected in pension liability (.4 ) — (.4 ) Cash expenditures (23.9 ) (.2 ) (24.1 ) Currency translation adjustment .7 — .7 31 March 2018 $17.0 $.7 $17.7 |
Business Combinations
Business Combinations | 6 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS During the first half of fiscal year 2018, we completed five acquisitions with an aggregate purchase price, net of cash acquired, of $281.0 . The largest acquisition was completed during the first quarter of fiscal year 2018 and consists primarily of three air separation units serving onsite and merchant customers in China. This acquisition is expected to strengthen our position in the region. The results of this business are consolidated within our Industrial Gases – Asia segment. The 2018 acquisitions resulted in the recognition of $168.9 of plant and equipment, $62.9 of goodwill, $3.0 of which is deductible for tax purposes, and $65.3 of intangible assets, primarily customer relationships, having a weighted-average useful life of twelve years . The goodwill recognized on the transactions is attributable to expected growth and cost synergies and was recorded in the Industrial Gases – Asia and the Industrial Gases – EMEA segments. These acquisitions did not materially impact our consolidated income statements for the periods presented. Subsequent Event On 10 September 2017, Air Products signed an agreement to form a joint venture, Air Products Lu’an (Changzhi) Co., Ltd. (“the JV”) with Lu’An Clean Energy Company ("Lu’An"). The JV will receive coal, steam and power from Lu’An and will supply syngas to Lu’An under a long-term onsite contract. On 26 April 2018, we completed the formation of the JV, which Air Products will consolidate and of which Air Products owns 60% and Lu’An owns 40% . Air Products contributed four large air separation units to the JV having a carrying value of approximately $300 . In addition, on 26 April 2018 (“the acquisition date”), the JV acquired gasification and syngas clean-up assets from Lu’An (“the acquisition”). In connection with the closing of the acquisition, we paid cash of approximately 1.7 billion RMB (approximately $270 ) and expect to make a final payment of approximately 1.5 billion RMB (approximately $230 as of 26 April 2018) in the fourth quarter of 2018. The transaction will be accounted for as a business combination. The JV will be consolidated within the results of the Industrial Gases – Asia segment following the acquisition date. The initial accounting for the business combination is incomplete as of the date of this report. In total, we expect the carrying value of the plant and equipment of the joint venture to be approximately $1.3 billion |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The components of inventories are as follows: 31 March 30 September 2018 2017 Finished goods $134.3 $120.0 Work in process 16.1 15.7 Raw materials, supplies and other 213.6 223.0 Total FIFO cost $364.0 $358.7 Less: Excess of FIFO cost over LIFO cost (24.1 ) (23.3 ) Inventories $339.9 $335.4 |
Goodwill
Goodwill | 6 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL Changes to the carrying amount of consolidated goodwill by segment for the six months ended 31 March 2018 are as follows: Industrial Gases– Americas Industrial Gases– EMEA Industrial Gases– Asia Industrial Gases– Global Total Goodwill, net at 30 September 2017 $163.7 $402.4 $135.2 $20.2 $721.5 Acquisitions — 27.7 35.2 — 62.9 Currency translation 3.5 22.0 5.0 .1 30.6 Goodwill, net at 31 March 2018 $167.2 $452.1 $175.4 $20.3 $815.0 31 March 30 September 2018 2017 Goodwill, gross $1,257.0 $1,138.7 Accumulated impairment losses (442.0 ) (417.2 ) Goodwill, net $815.0 $721.5 We review goodwill for impairment annually in the fourth quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying value of goodwill might not be recoverable. The accumulated impairment losses of $442.0 as of 31 March 2018 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | FINANCIAL INSTRUMENTS Currency Price Risk Management Our earnings, cash flows, and financial position are exposed to foreign currency risk from foreign currency-denominated transactions and net investments in foreign operations. It is our policy to seek to minimize our cash flow volatility from changes in currency exchange rates. This is accomplished by identifying and evaluating the risk that our cash flows will change in value due to changes in exchange rates and by executing the appropriate strategies necessary to manage such exposures. Our objective is to maintain economically balanced currency risk management strategies that provide adequate downside protection. Forward Exchange Contracts We enter into forward exchange contracts to reduce the cash flow exposure to foreign currency fluctuations associated with highly anticipated cash flows and certain firm commitments, such as the purchase of plant and equipment. We also enter into forward exchange contracts to hedge the cash flow exposure on intercompany loans. This portfolio of forward exchange contracts consists primarily of Euros and U.S. Dollars. The maximum remaining term of any forward exchange contract currently outstanding and designated as a cash flow hedge at 31 March 2018 is 2.0 years . Forward exchange contracts are also used to hedge the value of investments in certain foreign subsidiaries and affiliates by creating a liability in a currency in which we have a net equity position. The primary currency pair in this portfolio of forward exchange contracts is Euros and U.S. Dollars. In addition to the forward exchange contracts that are designated as hedges, we utilize forward exchange contracts that are not designated as hedges. The primary objective of these forward exchange contracts is to protect the value of foreign currency-denominated monetary assets and liabilities, primarily working capital, from the effects of volatility in foreign exchange rates that might occur prior to their receipt or settlement. This portfolio of forward exchange contracts comprises many different foreign currency pairs, with a profile that changes from time to time depending on business activity and sourcing decisions. The table below summarizes our outstanding currency price risk management instruments: 31 March 2018 30 September 2017 US$ Notional Years Average Maturity US$ Notional Years Average Maturity Forward Exchange Contracts: Cash flow hedges $2,953.8 .4 $3,150.2 .4 Net investment hedges 369.5 2.5 675.5 3.0 Not designated 990.0 1.7 273.8 .1 Total Forward Exchange Contracts $4,313.3 .9 $4,099.5 .8 The notional value of forward exchange contracts not designated increased from the prior year. As a result of changes in our currency exposures, we de-designated a portion of forward exchange contracts previously designated as net investment hedges. To eliminate any future earnings impact of the de-designated portion, we entered into equal and offsetting forward exchange contracts. In addition to the above, we use foreign currency-denominated debt to hedge the foreign currency exposures of our net investment in certain foreign subsidiaries. The designated foreign currency-denominated debt and related accrued interest included €914.6 million ( $1,127.1 ) at 31 March 2018 and €912.2 million ( $1,077.7 ) at 30 September 2017 . The designated foreign currency-denominated debt is located on the balance sheet in the long-term debt line item. Debt Portfolio Management It is our policy to identify on a continuing basis the need for debt capital and evaluate the financial risks inherent in funding the Company with debt capital. Reflecting the result of this ongoing review, the debt portfolio and hedging program are managed with the objectives and intent to (1) reduce funding risk with respect to borrowings made by us to preserve our access to debt capital and provide debt capital as required for funding and liquidity purposes, and (2) manage the aggregate interest rate risk and the debt portfolio in accordance with certain debt management parameters. Interest Rate Management Contracts We enter into interest rate swaps to change the fixed/variable interest rate mix of our debt portfolio in order to maintain the percentage of fixed- and variable-rate debt within the parameters set by management. In accordance with these parameters, the agreements are used to manage interest rate risks and costs inherent in our debt portfolio. Our interest rate management portfolio generally consists of fixed-to-floating interest rate swaps (which are designated as fair value hedges), pre-issuance interest rate swaps and treasury locks (which hedge the interest rate risk associated with anticipated fixed-rate debt issuances and are designated as cash flow hedges), and floating-to-fixed interest rate swaps (which are designated as cash flow hedges). At 31 March 2018 , the outstanding interest rate swaps were denominated in U.S. Dollars. The notional amount of the interest rate swap agreements is equal to or less than the designated debt being hedged. When interest rate swaps are used to hedge variable-rate debt, the indices of the swaps and the debt to which they are designated are the same. It is our policy not to enter into any interest rate management contracts which lever a move in interest rates on a greater than one-to-one basis. Cross Currency Interest Rate Swap Contracts We enter into cross currency interest rate swap contracts when our risk management function deems necessary. These contracts may entail both the exchange of fixed- and floating-rate interest payments periodically over the life of the agreement and the exchange of one currency for another currency at inception and at a specified future date. The contracts are used to hedge either certain net investments in foreign operations or non-functional currency cash flows related to intercompany loans. The current cross currency interest rate swap portfolio consists of fixed-to-fixed swaps primarily between U.S. Dollars and offshore Chinese Renminbi, U.S. Dollars and Chilean Pesos, and U.S. Dollars and British Pound Sterling. The following table summarizes our outstanding interest rate management contracts and cross currency interest rate swaps: 31 March 2018 30 September 2017 US$ Notional Average Pay % Average Receive % Years Average Maturity US$ Notional Average Pay % Average Receive % Years Average Maturity Interest rate swaps (fair value hedge) $400.0 LIBOR 2.53 % 1.4 $600.0 LIBOR 2.28 % 1.3 Cross currency interest rate swaps (net investment hedge) $688.7 3.73 % 2.76 % 2.3 $539.7 3.27 % 2.59 % 1.9 Cross currency interest rate swaps (cash flow hedge) $1,014.6 5.01 % 2.75 % 2.4 $1,095.7 4.96 % 2.78 % 2.4 Cross currency interest rate swaps (not designated) $39.5 3.16 % 2.88 % 1.5 $41.6 3.28 % 2.32 % 1.7 The table below summarizes the fair value and balance sheet location of our outstanding derivatives: Balance Sheet Location 31 March 2018 30 September 2017 Balance Sheet Location 31 March 2018 30 September 2017 Derivatives Designated as Hedging Instruments: Forward exchange contracts Other receivables $81.7 $81.7 Accrued liabilities $31.6 $82.0 Interest rate management contracts Other receivables 5.5 11.1 Accrued liabilities 19.4 10.7 Forward exchange contracts Other noncurrent assets 9.1 27.1 Other noncurrent liabilities 19.7 13.8 Interest rate management contracts Other noncurrent assets 43.5 102.6 Other noncurrent liabilities 58.1 22.2 Total Derivatives Designated as Hedging Instruments $139.8 $222.5 $128.8 $128.7 Derivatives Not Designated as Hedging Instruments: Forward exchange contracts Other receivables $4.4 $1.1 Accrued liabilities $5.4 $2.2 Interest rate management contracts Other receivables — — Accrued liabilities .4 1.0 Forward exchange contracts Other noncurrent assets 9.5 — Other noncurrent liabilities 17.0 — Interest rate management contracts Other noncurrent assets 3.9 4.2 Other noncurrent liabilities — — Total Derivatives Not Designated as Hedging Instruments $17.8 $5.3 $22.8 $3.2 Total Derivatives $157.6 $227.8 $151.6 $131.9 Refer to Note 10 , Fair Value Measurements , which defines fair value, describes the method for measuring fair value, and provides additional disclosures regarding fair value measurements. The table below summarizes the gain or loss related to our cash flow hedges, fair value hedges, net investment hedges, and derivatives not designated as hedging instruments: Three Months Ended 31 March Forward Exchange Contracts Foreign Currency Debt Other (A) Total 2018 2017 2018 2017 2018 2017 2018 2017 Cash Flow Hedges, net of tax: Net gain (loss) recognized in OCI (effective portion) $31.9 $11.1 $— $— ($14.1 ) ($26.5 ) $17.8 ($15.4 ) Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) 4.0 1.2 — — — — 4.0 1.2 Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) (29.3 ) (10.8 ) — — 15.8 15.8 (13.5 ) 5.0 Net (gain) loss reclassified from OCI to interest expense (effective portion) 1.6 (1.6 ) — — .7 .7 2.3 (.9 ) Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) (.3 ) .5 — — — — (.3 ) .5 Fair Value Hedges: Net gain (loss) recognized in interest expense (B) $— $— $— $— ($3.6 ) ($2.8 ) ($3.6 ) ($2.8 ) Net Investment Hedges, net of tax: Net gain (loss) recognized in OCI ($15.2 ) ($.8 ) ($22.2 ) ($7.8 ) ($23.3 ) ($6.5 ) ($60.7 ) ($15.1 ) Derivatives Not Designated as Hedging Instruments: Net gain (loss) recognized in other income (expense), net (C) $1.6 ($2.5 ) $— $— ($2.2 ) ($.6 ) ($.6 ) ($3.1 ) Six Months Ended 31 March Forward Exchange Contracts Foreign Currency Debt Other (A) Total 2018 2017 2018 2017 2018 2017 2018 2017 Cash Flow Hedges, net of tax: Net gain (loss) recognized in OCI (effective portion) $39.4 ($48.3 ) $— $— ($31.1 ) $23.1 $8.3 ($25.2 ) Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) 5.0 5.8 — — — — 5.0 5.8 Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) (46.9 ) 38.7 — — 32.2 (12.4 ) (14.7 ) 26.3 Net (gain) loss reclassified from OCI to interest expense (effective portion) 2.2 (2.4 ) — — 1.3 1.4 3.5 (1.0 ) Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) (.5 ) .3 — — — — (.5 ) .3 Fair Value Hedges: Net gain (loss) recognized in interest expense (B) $— $— $— $— ($6.8 ) ($11.9 ) ($6.8 ) ($11.9 ) Net Investment Hedges, net of tax: Net gain (loss) recognized in OCI ($22.7 ) $27.1 ($39.5 ) $34.0 ($34.5 ) $6.6 ($96.7 ) $67.7 Derivatives Not Designated as Hedging Instruments: Net gain (loss) recognized in other income (expense), net (C) $.1 ($.4 ) $— $— ($3.5 ) $.2 ($3.4 ) ($.2 ) (A) Other includes the impact on other comprehensive income (OCI) and earnings primarily related to interest rate and cross currency interest rate swaps. (B) The impact of fair value hedges noted above was largely offset by recognized gains and losses resulting from the impact of changes in related interest rates on outstanding debt. (C) The impact of the non-designated hedges noted above was largely offset by recognized gains and losses resulting from the impact of changes in exchange rates on assets and liabilities denominated in non-functional currencies. The amount of cash flow hedges’ unrealized gains and losses at 31 March 2018 that are expected to be reclassified to earnings in the next twelve months is not material. The cash flows related to all derivative contracts are reported in the operating activities section of the consolidated statements of cash flows. Credit Risk-Related Contingent Features Certain derivative instruments are executed under agreements that require us to maintain a minimum credit rating with both Standard & Poor’s and Moody’s. If our credit rating falls below this threshold, the counterparty to the derivative instruments has the right to request full collateralization on the derivatives’ net liability position. The net liability position of derivatives with credit risk-related contingent features was $116.9 as of 31 March 2018 and $34.6 as of 30 September 2017 . Because our current credit rating is above the various pre-established thresholds, no collateral has been posted on these liability positions. Counterparty Credit Risk Management We execute financial derivative transactions with counterparties that are highly rated financial institutions, all of which are investment grade at this time. Some of our underlying derivative agreements give us the right to require the institution to post collateral if its credit rating falls below the pre-established thresholds with Standard & Poor’s or Moody’s. The collateral that the counterparties would be required to post was $70.9 as of 31 March 2018 and $138.5 as of 30 September 2017 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as an exit price, i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 — Inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability. Level 3 — Inputs that are unobservable for the asset or liability based on our own assumptions (about the assumptions market participants would use in pricing the asset or liability). The methods and assumptions used to measure the fair value of financial instruments are as follows: Short-term Investments Short-term investments primarily include time deposits and treasury securities with original maturities greater than three months and less than one year. The estimated fair value of the short-term investments, which approximates carrying value as of 31 March 2018 and 30 September 2017 , was determined using level 2 inputs within the fair value hierarchy. Level 2 measurements were based on current interest rates for similar investments with comparable credit risk and time to maturity. Derivatives The fair value of our interest rate management contracts and forward exchange contracts are quantified using the income approach and are based on estimates using standard pricing models. These models take into account the value of future cash flows as of the balance sheet date, discounted to a present value using discount factors that match both the time to maturity and currency of the underlying instruments. The computation of the fair values of these instruments is generally performed by the Company. These standard pricing models utilize inputs which are derived from or corroborated by observable market data such as interest rate yield curves as well as currency spot and forward rates. Therefore, the fair value of our derivatives is classified as a level 2 measurement. On an ongoing basis, we randomly test a subset of our valuations against valuations received from the transaction’s counterparty to validate the accuracy of our standard pricing models. Counterparties to these derivative contracts are highly rated financial institutions. Refer to Note 9 , Financial Instruments , for a description of derivative instruments, including details on the balance sheet line classifications. Long-term Debt The fair value of our debt is based on estimates using standard pricing models that take into account the value of future cash flows as of the balance sheet date, discounted to a present value using discount factors that match both the time to maturity and currency of the underlying instruments. These standard valuation models utilize observable market data such as interest rate yield curves and currency spot rates. Therefore, the fair value of our debt is classified as a level 2 measurement. We generally perform the computation of the fair value of these instruments. The carrying values and fair values of financial instruments were as follows: 31 March 2018 30 September 2017 Carrying Value Fair Value Carrying Value Fair Value Assets Derivatives Forward exchange contracts $104.7 $104.7 $109.9 $109.9 Interest rate management contracts 52.9 52.9 117.9 117.9 Liabilities Derivatives Forward exchange contracts $73.7 $73.7 $98.0 $98.0 Interest rate management contracts 77.9 77.9 33.9 33.9 Long-term debt, including current portion 3,454.0 3,459.5 3,818.8 3,928.2 The carrying amounts reported in the balance sheet for cash and cash items, short-term investments, trade receivables, payables and accrued liabilities, accrued income taxes, and short-term borrowings approximate fair value due to the short-term nature of these instruments. Accordingly, these items have been excluded from the above table. The following table summarizes assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets: 31 March 2018 30 September 2017 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets at Fair Value Derivatives Forward exchange contracts $104.7 $— $104.7 $— $109.9 $— $109.9 $— Interest rate management contracts 52.9 — 52.9 — 117.9 — 117.9 — Total Assets at Fair Value $157.6 $— $157.6 $— $227.8 $— $227.8 $— Liabilities at Fair Value Derivatives Forward exchange contracts $73.7 $— $73.7 $— $98.0 $— $98.0 $— Interest rate management contracts 77.9 — 77.9 — 33.9 — 33.9 — Total Liabilities at Fair Value $151.6 $— $151.6 $— $131.9 $— $131.9 $— |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | RETIREMENT BENEFITS The components of net periodic benefit cost for the defined benefit pension plans for the three and six months ended 31 March 2018 and 2017 were as follows: Pension Benefits 2018 2017 Three Months Ended 31 March U.S. International U.S. International Service cost $6.4 $6.6 $6.9 $6.3 Interest cost 26.8 9.6 27.6 7.9 Expected return on plan assets (50.4 ) (21.1 ) (51.7 ) (18.3 ) Prior service cost amortization .4 — .6 (.1 ) Actuarial loss amortization 22.2 10.3 20.9 13.2 Settlements 1.5 — 4.1 4.0 Curtailment — — .1 1.8 Special termination benefits .4 — (.1 ) .1 Other — .1 — (2.2 ) Net Periodic Benefit Cost (Total) $7.3 $5.5 $8.4 $12.7 Less: Discontinued Operations — — (.1 ) (3.4 ) Net Periodic Benefit Cost (Continuing Operations) $7.3 $5.5 $8.3 $9.3 Pension Benefits 2018 2017 Six Months Ended 31 March U.S. International U.S. International Service cost (A) $12.8 $12.9 $15.2 $13.0 Interest cost 53.5 18.8 52.5 15.5 Expected return on plan assets (100.8 ) (41.3 ) (104.4 ) (36.8 ) Prior service cost amortization .8 — 1.2 (.1 ) Actuarial loss amortization 43.9 20.3 47.0 27.1 Settlements 3.3 — 4.1 1.7 Curtailment — — 4.3 (1.3 ) Special termination benefits .4 — 1.0 .5 Other — .6 — .5 Net Periodic Benefit Cost (Total) $13.9 $11.3 $20.9 $20.1 Less: Discontinued Operations — — (.7 ) (4.1 ) Net Periodic Benefit Cost (Continuing Operations) $13.9 $11.3 $20.2 $16.0 (A) Includes total service costs from discontinued operations of $1.3 for the six months ended 31 March 2017 . As noted in Note 2 , New Accounting Guidance , we early adopted guidance on the presentation of net periodic pension and postretirement benefit cost during the first quarter of fiscal year 2018. The amendments require that the service cost component of the net periodic benefit cost be presented in the same line items as other compensation costs arising from services rendered by employees during the period. The non-service related costs are presented outside of operating income in "Other non-operating income (expense), net." Service costs are primarily included in "Cost of sales" and "Selling and administrative" on our consolidated income statements. The costs capitalized in fiscal year 2018 and 2017 were not material. For the six months ended 31 March 2018 and 2017 , our cash contributions to funded pension plans and benefit payments under unfunded pension plans were $35.9 and $40.8 , respectively. Total contributions for fiscal year 2018 are expected to be approximately $50 to $70 . During fiscal year 2017 , total contributions were $64.1 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation We are involved in various legal proceedings, including commercial, competition, environmental, health, safety, product liability, and insurance matters. In September 2010, the Brazilian Administrative Council for Economic Defense (CADE) issued a decision against our Brazilian subsidiary, Air Products Brasil Ltda., and several other Brazilian industrial gas companies for alleged anticompetitive activities. CADE imposed a civil fine of R$179.2 million (approximately $54 at 31 March 2018 ) on Air Products Brasil Ltda. This fine was based on a recommendation by a unit of the Brazilian Ministry of Justice, whose investigation began in 2003, alleging violation of competition laws with respect to the sale of industrial and medical gases. The fines are based on a percentage of our total revenue in Brazil in 2003. We have denied the allegations made by the authorities and filed an appeal in October 2010 with the Brazilian courts. On 6 May 2014, our appeal was granted and the fine against Air Products Brasil Ltda. was dismissed. CADE has appealed that ruling and the matter remains pending. We, with advice of our outside legal counsel, have assessed the status of this matter and have concluded that, although an adverse final judgment after exhausting all appeals is possible, such a judgment is not probable. As a result, no provision has been made in the consolidated financial statements. We estimate the maximum possible loss to be the full amount of the fine of R$179.2 million (approximately $54 at 31 March 2018 ) plus interest accrued thereon until final disposition of the proceedings. Other than this matter, we do not currently believe there are any legal proceedings, individually or in the aggregate, that are reasonably possible to have a material impact on our financial condition, results of operations, or cash flows. Environmental In the normal course of business, we are involved in legal proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA: the federal Superfund law); Resource Conservation and Recovery Act (RCRA); and similar state and foreign environmental laws relating to the designation of certain sites for investigation or remediation. Presently, there are 33 sites on which a final settlement has not been reached where we, along with others, have been designated a potentially responsible party by the Environmental Protection Agency or are otherwise engaged in investigation or remediation, including cleanup activity at certain of our current and former manufacturing sites. We continually monitor these sites for which we have environmental exposure. Accruals for environmental loss contingencies are recorded when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The consolidated balance sheets at 31 March 2018 and 30 September 2017 included an accrual of $81.0 and $83.6 , respectively, primarily as part of other noncurrent liabilities. The environmental liabilities will be paid over a period of up to 30 years . We estimate the exposure for environmental loss contingencies to range from $80 to a reasonably possible upper exposure of $95 as of 31 March 2018 . Actual costs to be incurred at identified sites in future periods may vary from the estimates, given inherent uncertainties in evaluating environmental exposures. Using reasonably possible alternative assumptions of the exposure level could result in an increase to the environmental accrual. Due to the inherent uncertainties related to environmental exposures, a significant increase to the reasonably possible upper exposure level could occur if a new site is designated, the scope of remediation is increased, a different remediation alternative is identified, or a significant increase in our proportionate share occurs. We do not expect that any sum we may have to pay in connection with environmental matters in excess of the amounts recorded or disclosed above would have a material adverse impact on our financial position or results of operations in any one year. PACE At 31 March 2018 , $28.2 of the environmental accrual was related to the Pace facility. In 2006, we sold our Amines business, which included operations at Pace, Florida, and recognized a liability for retained environmental obligations associated with remediation activities at Pace. We are required by the Florida Department of Environmental Protection (FDEP) and the United States Environmental Protection Agency (USEPA) to continue our remediation efforts. We estimated that it would take a substantial period of time to complete the groundwater remediation, and the costs through completion were estimated to range from $42 to $52 . As no amount within the range was a better estimate than another, we recognized a pretax expense in fiscal 2006 of $42 as a component of income from discontinued operations and recorded an environmental accrual of $42 in continuing operations on the consolidated balance sheets. There has been no change to the estimated exposure range related to the Pace facility. We have implemented many of the remedial corrective measures at the Pace facility required under 1995 Consent Orders issued by the FDEP and the USEPA. Contaminated soils have been bioremediated, and the treated soils have been secured in a lined on-site disposal cell. Several groundwater recovery systems have been installed to contain and remove contamination from groundwater. We completed an extensive assessment of the site to determine how well existing measures are working, what additional corrective measures may be needed, and whether newer remediation technologies that were not available in the 1990s might be suitable to more quickly and effectively remove groundwater contaminants. Based on assessment results, we completed a focused feasibility study that has identified alternative approaches that may more effectively remove contaminants. We continue to review alternative remedial approaches with the FDEP and have started additional field work to support the design of an improved groundwater recovery network with the objective of targeting areas of higher contaminant concentration and avoiding areas of high groundwater iron which has proven to be a significant operability issue for the project. In the first quarter of 2015, we entered into a new Consent Order with the FDEP requiring us to continue our remediation efforts at the Pace facility. The costs we are incurring under the new Consent Order are consistent with our previous estimates. PIEDMONT At 31 March 2018 , $16.2 of the environmental accrual was related to the Piedmont site. On 30 June 2008, we sold our Elkton, Maryland, and Piedmont, South Carolina, production facilities and the related North American atmospheric emulsions and global pressure sensitive adhesives businesses. In connection with the sale, we recognized a liability for retained environmental obligations associated with remediation activities at the Piedmont site. This site is under active remediation for contamination caused by an insolvent prior owner. We are required by the South Carolina Department of Health and Environmental Control (SCDHEC) to address both contaminated soil and groundwater. Numerous areas of soil contamination have been addressed, and contaminated groundwater is being recovered and treated. On 13 June 2017, the SCDHEC issued its final approval to the site-wide feasibility study, and with that, we will be moving towards a record of decision for the Piedmont site and into the final remedial design phase of this project. We estimate that source area remediation and groundwater recovery and treatment will continue through 2029. Thereafter, we are expecting this site to go into a state of monitored natural attenuation through 2047. We recognized a pretax expense in 2008 of $24 as a component of income from discontinued operations and recorded an environmental liability of $24 in continuing operations on the consolidated balance sheets. There have been no significant changes to the estimated exposure. PASADENA At 31 March 2018 , $11.9 of the environmental accrual was related to the Pasadena site. During the fourth quarter of 2012, management committed to permanently shutting down our polyurethane intermediates (PUI) production facility in Pasadena, Texas. In shutting down and dismantling the facility, we have undertaken certain obligations related to soil and groundwater contaminants. We have been pumping and treating groundwater to control off-site contaminant migration in compliance with regulatory requirements and under the approval of the Texas Commission on Environmental Quality (TCEQ). We estimate that the pump and treat system will continue to operate until 2042 . We plan to perform additional work to address other environmental obligations at the site. This additional work includes remediating, as required, impacted soils, investigating groundwater west of the former PUI facility, performing post closure care for two closed RCRA surface impoundment units, and establishing engineering controls. In 2012, we estimated the total exposure at this site to be $13 . There have been no significant changes to the estimated exposure. Unconditional Purchase Obligations Our unconditional purchase obligations for helium purchases were approximately $6,500 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION We have various share-based compensation programs, which include deferred stock units, stock options, and restricted stock. During the six months ended 31 March 2018 , we granted market-based and time-based deferred stock units. Under all programs, the terms of the awards are fixed at the grant date. We issue shares from treasury stock upon the payout of deferred stock units, the exercise of stock options, and the issuance of restricted stock awards. As of 31 March 2018 , there were 4,610,336 shares available for future grant under our Long-Term Incentive Plan (LTIP), which is shareholder approved. Share-based compensation cost recognized in continuing operations on the consolidated income statements is summarized below: Three Months Ended Six Months Ended 31 March 31 March 2018 2017 2018 2017 Before-tax share-based compensation cost $10.7 $9.5 $22.5 $18.5 Income tax benefit (2.1 ) (3.3 ) (5.3 ) (6.3 ) After-tax share-based compensation cost $8.6 $6.2 $17.2 $12.2 Before-tax share-based compensation cost is primarily included in "Selling and administrative" on our consolidated income statements. The amount of share-based compensation cost capitalized in the first six months of fiscal year 2018 and 2017 was not material. Deferred Stock Units During the six months ended 31 March 2018 , we granted 104,874 market-based deferred stock units. The market-based deferred stock units are earned out at the end of a performance period beginning 1 October 2017 and ending 30 September 2020, conditioned on the level of the Company’s total shareholder return in relation to a defined peer group over the three -year performance period. The market-based deferred stock units had an estimated grant-date fair value of $202.50 per unit, which was estimated using a Monte Carlo simulation model. The model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the grant and calculates the fair value of the awards. We generally expense the grant-date fair value of these awards on a straight-line basis over the vesting period. The calculation of the fair value of market-based deferred stock units used the following assumptions: Expected volatility 18.7 % Risk-free interest rate 1.9 % Expected dividend yield 2.6 % In addition, during the six months ended 31 March 2018 , we granted 138,340 time-based deferred stock units at a weighted average grant-date fair value of $162.12 |
Equity
Equity | 6 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Equity | EQUITY The following is a summary of the changes in total equity: Three Months Ended 31 March 2018 2017 Air Products Non- controlling Interests Total Equity Air Products Non- controlling Interests Total Equity Balance at 31 December $10,215.3 $105.9 $10,321.2 $7,161.5 $99.6 $7,261.1 Net income 416.4 7.2 423.6 2,130.0 5.7 2,135.7 Other comprehensive income 160.3 2.2 162.5 218.0 5.0 223.0 Dividends on common stock (per share $1.10, $0.95) (241.1 ) — (241.1 ) (206.9 ) — (206.9 ) Dividends to noncontrolling interests — (2.9 ) (2.9 ) — (7.5 ) (7.5 ) Share-based compensation 10.7 — 10.7 9.5 — 9.5 Treasury shares for stock option and award plans 20.2 — 20.2 7.9 — 7.9 Other equity transactions (1.0 ) — (1.0 ) (2.6 ) — (2.6 ) Balance at 31 March $10,580.8 $112.4 $10,693.2 $9,317.4 $102.8 $9,420.2 Six Months Ended 31 March 2018 2017 Air Products Non- controlling Interests Total Equity Air Products Non- controlling Interests Total Equity Balance at 30 September $10,086.2 $99.3 $10,185.5 $7,079.6 $133.8 $7,213.4 Net income 571.0 14.3 585.3 2,429.8 12.3 2,442.1 Other comprehensive income (loss) 312.1 4.1 316.2 (16.9 ) 1.9 (15.0 ) Dividends on common stock (per share $2.05, $1.81) (449.1 ) — (449.1 ) (394.0 ) — (394.0 ) Dividends to noncontrolling interests — (10.6 ) (10.6 ) — (11.7 ) (11.7 ) Share-based compensation 21.8 — 21.8 18.5 — 18.5 Treasury shares for stock option and award plans 40.1 — 40.1 7.6 — 7.6 Spin-off of Versum — — — 186.5 (33.9 ) 152.6 Cumulative change in accounting principle — — — 8.8 — 8.8 Other equity transactions (1.3 ) 5.3 4.0 (2.5 ) .4 (2.1 ) Balance at 31 March $10,580.8 $112.4 $10,693.2 $9,317.4 $102.8 $9,420.2 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The tables below summarize changes in accumulated other comprehensive loss (AOCL), net of tax, attributable to Air Products for the three and six months ended 31 March 2018 : Derivatives qualifying as hedges Foreign currency translation adjustments Pension and postretirement benefits Total Balance at 31 December 2017 ($61.8 ) ($649.5 ) ($984.3 ) ($1,695.6 ) Other comprehensive income before reclassifications 17.8 125.6 — 143.4 Amounts reclassified from AOCL (7.5 ) — 26.6 19.1 Net current period other comprehensive income 10.3 125.6 26.6 162.5 Amount attributable to noncontrolling interests (.1 ) 2.3 — 2.2 Balance at 31 March 2018 ($51.4 ) ($526.2 ) ($957.7 ) ($1,535.3 ) Derivatives qualifying as hedges Foreign currency translation adjustments Pension and postretirement benefits Total Balance at 30 September 2017 ($53.1 ) ($787.1 ) ($1,007.2 ) ($1,847.4 ) Other comprehensive income before reclassifications 8.3 262.0 — 270.3 Amounts reclassified from AOCL (6.7 ) 3.1 49.5 45.9 Net current period other comprehensive income 1.6 265.1 49.5 316.2 Amount attributable to noncontrolling interests (.1 ) 4.2 — 4.1 Balance at 31 March 2018 ($51.4 ) ($526.2 ) ($957.7 ) ($1,535.3 ) The table below summarizes the reclassifications out of accumulated other comprehensive loss and the affected line item on the consolidated income statements: Three Months Ended Six Months Ended 31 March 31 March 2018 2017 2018 2017 (Gain) Loss on Cash Flow Hedges, net of tax Sales/Cost of sales $4.0 $1.2 $5.0 $5.8 Other income/expense, net (13.8 ) 5.5 (15.2 ) 26.6 Interest expense 2.3 (.9 ) 3.5 (1.0 ) Total (Gain) Loss on Cash Flow Hedges, net of tax ($7.5 ) $5.8 ($6.7 ) $31.4 Currency Translation Adjustment (A) $— $49.1 $3.1 $49.1 Pension and Postretirement Benefits, net of tax (B) $26.6 $30.1 $49.5 $57.5 (A) The 2018 impact is reflected in "Cost of sales" and relates to an equipment sale resulting from the termination of a contract in the Industrial Gases – Asia segment during the first quarter. The 2017 impact was reflected in "Income from discontinued operations, net of tax" and related to the sale of PMD during the second quarter. (B) The components of net periodic benefit cost reclassified out of accumulated other comprehensive loss include items such as prior service cost amortization, actuarial loss amortization, and settlements and are included in “Other non-operating income (expense), net” on the consolidated income statements. Refer to Note 11 , Retirement Benefits |
Earnings per Share
Earnings per Share | 6 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended 31 March 31 March 2018 2017 2018 2017 Numerator Income from continuing operations $416.4 $304.4 $572.0 $556.0 Income (Loss) from discontinued operations — 1,825.6 (1.0 ) 1,873.8 Net Income Attributable to Air Products $416.4 $2,130.0 $571.0 $2,429.8 Denominator (in millions) Weighted average common shares — Basic 219.4 217.9 219.2 217.8 Effect of dilutive securities Employee stock option and other award plans 1.4 1.8 1.5 1.8 Weighted average common shares — Diluted 220.8 219.7 220.7 219.6 Basic Earnings Per Common Share Attributable to Air Products Income from continuing operations $1.90 $1.40 $2.61 $2.55 Income from discontinued operations — 8.38 — 8.61 Net Income Attributable to Air Products $1.90 $9.78 $2.61 $11.16 Diluted Earnings Per Common Share Attributable to Air Products Income from continuing operations $1.89 $1.39 $2.59 $2.53 Income from discontinued operations — 8.31 — 8.53 Net Income Attributable to Air Products $1.89 $9.70 $2.59 $11.06 Outstanding share-based awards of .1 million shares were antidilutive and therefore excluded from the computation of diluted earnings per share for the three and six months ended 31 March 2018 . For the three months ended 31 March 2017 , there were no antidilutive outstanding share-based awards. Outstanding share-based awards of .1 million shares were antidilutive and therefore excluded from the computation of diluted earnings per share for the six months ended 31 March 2017 |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Tax Restructuring Benefit In the second quarter of 2018, we recognized a $38.8 tax benefit, net of reserves for uncertain tax positions, and a decrease in net deferred tax liabilities resulting from the restructuring of foreign subsidiaries. U.S. Tax Cuts and Jobs Act On 22 December 2017, the United States enacted the Tax Act which significantly changed existing U.S. tax laws, including a reduction in the federal corporate income tax rate from 35% to 21% , a deemed repatriation tax on unremitted foreign earnings, as well as other changes. As a result of the Tax Act, our consolidated income statements for the six months ended 31 March 2018 reflect a net expense of $239.0 for the impacts recorded during the first quarter of fiscal year 2018. This includes an expense of $453.0 for the cost of the deemed repatriation tax and adjustments to the future cost of repatriation from foreign investments. This expense impacted our income tax provision by $420.5 and equity affiliate income by $32.5 for future costs of repatriation that will be borne by an equity affiliate . In addition, the income tax provision was benefited by $214.0 primarily from the re-measurement of our net U.S. deferred tax liabilities at the lower corporate tax rate. The $420.5 adjustment reflects a deemed repatriation tax of $364.1 that is payable over eight years and $56.4 resulting primarily from withholding taxes that were established for repatriation of foreign earnings and other impacts of the Tax Act. We expect to apply $53.8 of existing foreign tax credits towards the $364.1 deemed repatriation tax. Of the remaining $310.3 obligation, $263.4 is recorded on our consolidated balance sheets in noncurrent liabilities. We are reporting the impacts of the Tax Act provisionally based upon reasonable estimates as of 31 March 2018. The impacts are not yet finalized as they are dependent on factors and analysis not yet known or fully completed, including but not limited to, the final cash balances for fiscal year 2018, further book to U.S. tax adjustments for the earnings of foreign entities, the issuance of additional guidance, as well as our ongoing analysis of the Tax Act. As a fiscal year-end taxpayer, certain provisions of the Tax Act become effective in our fiscal year 2018 while other provisions do not become effective until fiscal year 2019. The corporate tax rate reduction is effective as of 1 January 2018 and, accordingly, reduces our 2018 fiscal year U.S. federal statutory rate to a blended rate of approximately 24.5% . Primarily due to the net impact of the Tax Act and the restructuring benefit, our effective tax rate was 37.2% for the six months ended 31 March 2018 . Cash Paid for Taxes (Net of Cash Refunds) On a total company basis, income tax payments, net of refunds, were $153.7 and $784.7 for the six months ended 31 March 2018 and 2017 , respectively. The prior year includes tax payments related to the gain on the sale of the PMD business. Unrecognized Tax Benefits The consolidated balance sheets as of 31 March 2018 and 30 September 2017 include unrecognized tax benefits of $156.9 and $146.4 , respectively. The increase from the prior year primarily resulted from additions for current year tax positions of $18.7 and included uncertain tax positions from the restructuring of foreign subsidiaries and reserves for ongoing transfer pricing uncertainties. This was offset by net reductions for tax positions of prior years of $9.7 , primarily related to the settlement of U.S. federal tax audits for 2012 through 2014. On 17 April 2018, we received a final audit settlement agreement that resolved uncertainties related to approximately $40 of unrecognized tax benefits that were recorded as of 31 March 2018. This settlement primarily related to tax positions taken in conjunction with the disposition of our Homecare business in 2012. As a result, we expect an income tax benefit of approximately $25 , including interest, in discontinued operations during the third quarter of 2018. In addition, the settlement will result in an income tax benefit of approximately $9 |
Business Segment Information
Business Segment Information | 6 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION Our reporting segments reflect the manner in which our chief operating decision maker reviews results and allocates resources. Except in the Corporate and other segment, each reporting segment meets the definition of an operating segment and does not include the aggregation of multiple operating segments. Our liquefied natural gas (LNG) and helium storage and distribution sale of equipment businesses are aggregated within the Corporate and other segment. Our reporting segments are: • Industrial Gases – Americas • Industrial Gases – EMEA (Europe, Middle East, and Africa) • Industrial Gases – Asia • Industrial Gases – Global • Corporate and other Industrial Gases – Americas Industrial Gases – EMEA Industrial Gases – Asia Industrial Gases – Global Corporate and other Segment Total Three Months Ended 31 March 2018 Sales $913.2 $561.6 $557.6 $101.7 $21.6 $2,155.7 Operating income (loss) 222.3 116.7 148.7 12.1 (44.4 ) 455.4 Depreciation and amortization 122.3 50.7 62.6 1.9 2.5 240.0 Equity affiliates' income 16.9 11.1 15.4 .3 — 43.7 Three Months Ended 31 March 2017 Sales $890.1 $414.2 $435.9 $216.5 $23.4 $1,980.1 Operating income (loss) 223.2 88.6 112.3 22.7 (40.9 ) 405.9 Depreciation and amortization 116.0 41.6 49.3 1.7 3.2 211.8 Equity affiliates' income 13.0 8.3 12.9 — — 34.2 Industrial Gases – Americas Industrial Gases – EMEA Industrial Gases – Asia Industrial Gases – Global Corporate and other Segment Total Six Months Ended 31 March 2018 Sales $1,823.0 $1,077.5 $1,201.2 $234.7 $35.9 $4,372.3 Operating income (loss) 439.5 221.2 324.2 21.6 (90.4 ) 916.1 Depreciation and amortization 240.1 99.8 119.4 3.5 5.1 467.9 Equity affiliates' income 35.5 24.2 29.6 .7 — 90.0 Six Months Ended 31 March 2017 Sales $1,754.0 $813.9 $874.2 $364.4 $56.1 $3,862.6 Operating income (loss) 446.5 178.6 230.7 30.9 (70.0 ) 816.7 Depreciation and amortization 227.8 83.8 96.0 3.7 6.6 417.9 Equity affiliates' income 27.7 17.8 26.4 .3 — 72.2 Total Assets 31 March 2018 $5,915.0 $3,475.5 $4,779.1 $252.5 $4,089.0 $18,511.1 30 September 2017 5,840.8 3,276.1 4,412.1 279.6 4,648.4 18,457.0 The sales information noted above relates to external customers only. All intersegment sales are eliminated in consolidation. For the three and six months ended 31 March 2018 , the Industrial Gases – Global segment had intersegment sales of $56.0 and $117.9 , respectively. For the three and six months ended 31 March 2017 , the Industrial Gases – Global segment had intersegment sales of $61.0 and $122.0 , respectively. These sales are generally transacted at market pricing. For all other segments, intersegment sales are not material for all periods presented. Equipment manufactured for our industrial gases segments is generally transferred at cost and not reflected as an intersegment sale. Changes in estimates on projects accounted for under the percentage-of-completion method favorably impacted operating income by approximately $10 and $12 for the three months ended 31 March 2018 and 2017 , respectively. In 2015, we entered into a long-term sale of equipment contract to engineer, procure, and construct industrial gas facilities with a 25%-owned joint venture for Saudi Aramco's Jazan oil refinery and power plant in Saudi Arabia. Sales related to this contract are included in the results of our Industrial Gases – Global segment. During the three and six months ended 31 March 2018 , sales were approximately $60 and $150 , respectively, related to this contract. During the three and six months ended 31 March 2017 , sales were approximately $170 and $280 , respectively. Below is a reconciliation of segment total operating income to consolidated operating income: Three Months Ended Six Months Ended 31 March 31 March Operating Income 2018 2017 2018 2017 Segment total $455.4 $405.9 $916.1 $816.7 Business separation costs — — — (32.5 ) Cost reduction and asset actions — (10.3 ) — (60.3 ) Consolidated Total $455.4 $395.6 $916.1 $723.9 Below is a reconciliation of segment total equity affiliates' income to consolidated equity affiliates' income : Three Months Ended Six Months Ended 31 March 31 March Equity Affiliates' Income 2018 2017 2018 2017 Segment total $43.7 $34.2 $90.0 $72.2 Tax reform repatriation - equity method investment — — (32.5 ) — Consolidated Total $43.7 $34.2 $57.5 $72.2 Below is a reconciliation of segment total assets to consolidated total assets: 31 March 30 September Total Assets 2018 2017 Segment total $18,511.1 $18,457.0 Discontinued operations — 10.2 Consolidated Total $18,511.1 $18,467.2 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Operating Results of Discontinued Operations | The following table details the businesses and major line items that comprise income from discontinued operations, net of tax, on the consolidated income statements for the three and six months ended 31 March 2017 : Three Months Ended 31 March 2017 Total Performance Energy- Discontinued Materials from-Waste (A) Operations Cost of sales $3.3 $3.0 $6.3 Selling and administrative 2.1 — 2.1 Other income (expense), net .7 (.4 ) .3 Income (Loss) Before Taxes (4.7 ) (3.4 ) (8.1 ) Income tax benefit (.3 ) (.9 ) (1.2 ) Income (Loss) From Operations of Discontinued Operations, net of tax (4.4 ) (2.5 ) (6.9 ) Gain on Disposal, net of tax 1,832.5 — 1,832.5 Income (Loss) From Discontinued Operations, net of tax $1,828.1 ($2.5 ) $1,825.6 Six Months Ended 31 March 2017 Total Performance Energy- Discontinued Materials from-Waste (A) Operations Sales $254.8 $— $254.8 Cost of sales 182.3 9.6 191.9 Selling and administrative 22.5 .2 22.7 Research and development 5.1 — 5.1 Other income (expense), net .3 (.1 ) .2 Operating Income (Loss) 45.2 (9.9 ) 35.3 Equity affiliates’ income .3 — .3 Income (Loss) Before Taxes 45.5 (9.9 ) 35.6 Income tax benefit (B) (50.8 ) (2.0 ) (52.8 ) Income (Loss) From Operations of Discontinued Operations, net of tax 96.3 (7.9 ) 88.4 Gain (Loss) on Disposal, net of tax 1,832.5 (47.1 ) 1,785.4 Income (Loss) From Discontinued Operations, net of tax $1,928.8 ($55.0 ) $1,873.8 (A) The loss from operations of discontinued operations for EfW primarily relates to land lease obligations, administrative costs, and costs incurred for project exit activities. (B) As a result of the expected gain on the sale of PMD, we released valuation allowances related to capital loss and net operating loss carryforwards during the first quarter of 2017 that favorably impacted our income tax provision within discontinued operations by approximately $66 . |
Cost Reduction and Asset Acti27
Cost Reduction and Asset Actions (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Summary of Carrying Amount of Accrual for Cost Reduction and Asset Actions | The following table summarizes the carrying amount of the accrual for cost reduction and asset actions at 31 March 2018 : Severance and Other Benefits Asset Actions/Other Total 30 September 2016 $12.3 $— $12.3 2017 Charge 66.3 88.5 154.8 Noncash expenses — (84.2 ) (84.2 ) Amount reflected in pension liability (2.0 ) — (2.0 ) Amount reflected in other noncurrent liabilities — (2.2 ) (2.2 ) Cash expenditures (35.7 ) (1.2 ) (36.9 ) Currency translation adjustment (.3 ) — (.3 ) 30 September 2017 $40.6 $.9 $41.5 Amount reflected in pension liability (.4 ) — (.4 ) Cash expenditures (23.9 ) (.2 ) (24.1 ) Currency translation adjustment .7 — .7 31 March 2018 $17.0 $.7 $17.7 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventories are as follows: 31 March 30 September 2018 2017 Finished goods $134.3 $120.0 Work in process 16.1 15.7 Raw materials, supplies and other 213.6 223.0 Total FIFO cost $364.0 $358.7 Less: Excess of FIFO cost over LIFO cost (24.1 ) (23.3 ) Inventories $339.9 $335.4 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes to the carrying amount of consolidated goodwill by segment for the six months ended 31 March 2018 are as follows: Industrial Gases– Americas Industrial Gases– EMEA Industrial Gases– Asia Industrial Gases– Global Total Goodwill, net at 30 September 2017 $163.7 $402.4 $135.2 $20.2 $721.5 Acquisitions — 27.7 35.2 — 62.9 Currency translation 3.5 22.0 5.0 .1 30.6 Goodwill, net at 31 March 2018 $167.2 $452.1 $175.4 $20.3 $815.0 31 March 30 September 2018 2017 Goodwill, gross $1,257.0 $1,138.7 Accumulated impairment losses (442.0 ) (417.2 ) Goodwill, net $815.0 $721.5 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Instruments | The table below summarizes our outstanding currency price risk management instruments: 31 March 2018 30 September 2017 US$ Notional Years Average Maturity US$ Notional Years Average Maturity Forward Exchange Contracts: Cash flow hedges $2,953.8 .4 $3,150.2 .4 Net investment hedges 369.5 2.5 675.5 3.0 Not designated 990.0 1.7 273.8 .1 Total Forward Exchange Contracts $4,313.3 .9 $4,099.5 .8 31 March 2018 30 September 2017 US$ Notional Average Pay % Average Receive % Years Average Maturity US$ Notional Average Pay % Average Receive % Years Average Maturity Interest rate swaps (fair value hedge) $400.0 LIBOR 2.53 % 1.4 $600.0 LIBOR 2.28 % 1.3 Cross currency interest rate swaps (net investment hedge) $688.7 3.73 % 2.76 % 2.3 $539.7 3.27 % 2.59 % 1.9 Cross currency interest rate swaps (cash flow hedge) $1,014.6 5.01 % 2.75 % 2.4 $1,095.7 4.96 % 2.78 % 2.4 Cross currency interest rate swaps (not designated) $39.5 3.16 % 2.88 % 1.5 $41.6 3.28 % 2.32 % 1.7 |
Fair Value of Derivative Instruments | The table below summarizes the fair value and balance sheet location of our outstanding derivatives: Balance Sheet Location 31 March 2018 30 September 2017 Balance Sheet Location 31 March 2018 30 September 2017 Derivatives Designated as Hedging Instruments: Forward exchange contracts Other receivables $81.7 $81.7 Accrued liabilities $31.6 $82.0 Interest rate management contracts Other receivables 5.5 11.1 Accrued liabilities 19.4 10.7 Forward exchange contracts Other noncurrent assets 9.1 27.1 Other noncurrent liabilities 19.7 13.8 Interest rate management contracts Other noncurrent assets 43.5 102.6 Other noncurrent liabilities 58.1 22.2 Total Derivatives Designated as Hedging Instruments $139.8 $222.5 $128.8 $128.7 Derivatives Not Designated as Hedging Instruments: Forward exchange contracts Other receivables $4.4 $1.1 Accrued liabilities $5.4 $2.2 Interest rate management contracts Other receivables — — Accrued liabilities .4 1.0 Forward exchange contracts Other noncurrent assets 9.5 — Other noncurrent liabilities 17.0 — Interest rate management contracts Other noncurrent assets 3.9 4.2 Other noncurrent liabilities — — Total Derivatives Not Designated as Hedging Instruments $17.8 $5.3 $22.8 $3.2 Total Derivatives $157.6 $227.8 $151.6 $131.9 |
Schedule of Gains and Losses Related to Derivative Instruments | The table below summarizes the gain or loss related to our cash flow hedges, fair value hedges, net investment hedges, and derivatives not designated as hedging instruments: Three Months Ended 31 March Forward Exchange Contracts Foreign Currency Debt Other (A) Total 2018 2017 2018 2017 2018 2017 2018 2017 Cash Flow Hedges, net of tax: Net gain (loss) recognized in OCI (effective portion) $31.9 $11.1 $— $— ($14.1 ) ($26.5 ) $17.8 ($15.4 ) Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) 4.0 1.2 — — — — 4.0 1.2 Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) (29.3 ) (10.8 ) — — 15.8 15.8 (13.5 ) 5.0 Net (gain) loss reclassified from OCI to interest expense (effective portion) 1.6 (1.6 ) — — .7 .7 2.3 (.9 ) Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) (.3 ) .5 — — — — (.3 ) .5 Fair Value Hedges: Net gain (loss) recognized in interest expense (B) $— $— $— $— ($3.6 ) ($2.8 ) ($3.6 ) ($2.8 ) Net Investment Hedges, net of tax: Net gain (loss) recognized in OCI ($15.2 ) ($.8 ) ($22.2 ) ($7.8 ) ($23.3 ) ($6.5 ) ($60.7 ) ($15.1 ) Derivatives Not Designated as Hedging Instruments: Net gain (loss) recognized in other income (expense), net (C) $1.6 ($2.5 ) $— $— ($2.2 ) ($.6 ) ($.6 ) ($3.1 ) Six Months Ended 31 March Forward Exchange Contracts Foreign Currency Debt Other (A) Total 2018 2017 2018 2017 2018 2017 2018 2017 Cash Flow Hedges, net of tax: Net gain (loss) recognized in OCI (effective portion) $39.4 ($48.3 ) $— $— ($31.1 ) $23.1 $8.3 ($25.2 ) Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) 5.0 5.8 — — — — 5.0 5.8 Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) (46.9 ) 38.7 — — 32.2 (12.4 ) (14.7 ) 26.3 Net (gain) loss reclassified from OCI to interest expense (effective portion) 2.2 (2.4 ) — — 1.3 1.4 3.5 (1.0 ) Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) (.5 ) .3 — — — — (.5 ) .3 Fair Value Hedges: Net gain (loss) recognized in interest expense (B) $— $— $— $— ($6.8 ) ($11.9 ) ($6.8 ) ($11.9 ) Net Investment Hedges, net of tax: Net gain (loss) recognized in OCI ($22.7 ) $27.1 ($39.5 ) $34.0 ($34.5 ) $6.6 ($96.7 ) $67.7 Derivatives Not Designated as Hedging Instruments: Net gain (loss) recognized in other income (expense), net (C) $.1 ($.4 ) $— $— ($3.5 ) $.2 ($3.4 ) ($.2 ) (A) Other includes the impact on other comprehensive income (OCI) and earnings primarily related to interest rate and cross currency interest rate swaps. (B) The impact of fair value hedges noted above was largely offset by recognized gains and losses resulting from the impact of changes in related interest rates on outstanding debt. (C) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Value and Fair Value of Financial Instruments | The carrying values and fair values of financial instruments were as follows: 31 March 2018 30 September 2017 Carrying Value Fair Value Carrying Value Fair Value Assets Derivatives Forward exchange contracts $104.7 $104.7 $109.9 $109.9 Interest rate management contracts 52.9 52.9 117.9 117.9 Liabilities Derivatives Forward exchange contracts $73.7 $73.7 $98.0 $98.0 Interest rate management contracts 77.9 77.9 33.9 33.9 Long-term debt, including current portion 3,454.0 3,459.5 3,818.8 3,928.2 |
Schedule of Fair Value Assets and Liabilities Measured On Recurring Basis | The following table summarizes assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets: 31 March 2018 30 September 2017 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets at Fair Value Derivatives Forward exchange contracts $104.7 $— $104.7 $— $109.9 $— $109.9 $— Interest rate management contracts 52.9 — 52.9 — 117.9 — 117.9 — Total Assets at Fair Value $157.6 $— $157.6 $— $227.8 $— $227.8 $— Liabilities at Fair Value Derivatives Forward exchange contracts $73.7 $— $73.7 $— $98.0 $— $98.0 $— Interest rate management contracts 77.9 — 77.9 — 33.9 — 33.9 — Total Liabilities at Fair Value $151.6 $— $151.6 $— $131.9 $— $131.9 $— |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | The components of net periodic benefit cost for the defined benefit pension plans for the three and six months ended 31 March 2018 and 2017 were as follows: Pension Benefits 2018 2017 Three Months Ended 31 March U.S. International U.S. International Service cost $6.4 $6.6 $6.9 $6.3 Interest cost 26.8 9.6 27.6 7.9 Expected return on plan assets (50.4 ) (21.1 ) (51.7 ) (18.3 ) Prior service cost amortization .4 — .6 (.1 ) Actuarial loss amortization 22.2 10.3 20.9 13.2 Settlements 1.5 — 4.1 4.0 Curtailment — — .1 1.8 Special termination benefits .4 — (.1 ) .1 Other — .1 — (2.2 ) Net Periodic Benefit Cost (Total) $7.3 $5.5 $8.4 $12.7 Less: Discontinued Operations — — (.1 ) (3.4 ) Net Periodic Benefit Cost (Continuing Operations) $7.3 $5.5 $8.3 $9.3 Pension Benefits 2018 2017 Six Months Ended 31 March U.S. International U.S. International Service cost (A) $12.8 $12.9 $15.2 $13.0 Interest cost 53.5 18.8 52.5 15.5 Expected return on plan assets (100.8 ) (41.3 ) (104.4 ) (36.8 ) Prior service cost amortization .8 — 1.2 (.1 ) Actuarial loss amortization 43.9 20.3 47.0 27.1 Settlements 3.3 — 4.1 1.7 Curtailment — — 4.3 (1.3 ) Special termination benefits .4 — 1.0 .5 Other — .6 — .5 Net Periodic Benefit Cost (Total) $13.9 $11.3 $20.9 $20.1 Less: Discontinued Operations — — (.7 ) (4.1 ) Net Periodic Benefit Cost (Continuing Operations) $13.9 $11.3 $20.2 $16.0 (A) Includes total service costs from discontinued operations of $1.3 for the six months ended 31 March 2017 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Recognized Share-Based Compensation Cost | Share-based compensation cost recognized in continuing operations on the consolidated income statements is summarized below: Three Months Ended Six Months Ended 31 March 31 March 2018 2017 2018 2017 Before-tax share-based compensation cost $10.7 $9.5 $22.5 $18.5 Income tax benefit (2.1 ) (3.3 ) (5.3 ) (6.3 ) After-tax share-based compensation cost $8.6 $6.2 $17.2 $12.2 |
Schedule of Assumptions for Fair Value of Market-Based Deferred Stock Units | The calculation of the fair value of market-based deferred stock units used the following assumptions: Expected volatility 18.7 % Risk-free interest rate 1.9 % Expected dividend yield 2.6 % |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Equity | The following is a summary of the changes in total equity: Three Months Ended 31 March 2018 2017 Air Products Non- controlling Interests Total Equity Air Products Non- controlling Interests Total Equity Balance at 31 December $10,215.3 $105.9 $10,321.2 $7,161.5 $99.6 $7,261.1 Net income 416.4 7.2 423.6 2,130.0 5.7 2,135.7 Other comprehensive income 160.3 2.2 162.5 218.0 5.0 223.0 Dividends on common stock (per share $1.10, $0.95) (241.1 ) — (241.1 ) (206.9 ) — (206.9 ) Dividends to noncontrolling interests — (2.9 ) (2.9 ) — (7.5 ) (7.5 ) Share-based compensation 10.7 — 10.7 9.5 — 9.5 Treasury shares for stock option and award plans 20.2 — 20.2 7.9 — 7.9 Other equity transactions (1.0 ) — (1.0 ) (2.6 ) — (2.6 ) Balance at 31 March $10,580.8 $112.4 $10,693.2 $9,317.4 $102.8 $9,420.2 Six Months Ended 31 March 2018 2017 Air Products Non- controlling Interests Total Equity Air Products Non- controlling Interests Total Equity Balance at 30 September $10,086.2 $99.3 $10,185.5 $7,079.6 $133.8 $7,213.4 Net income 571.0 14.3 585.3 2,429.8 12.3 2,442.1 Other comprehensive income (loss) 312.1 4.1 316.2 (16.9 ) 1.9 (15.0 ) Dividends on common stock (per share $2.05, $1.81) (449.1 ) — (449.1 ) (394.0 ) — (394.0 ) Dividends to noncontrolling interests — (10.6 ) (10.6 ) — (11.7 ) (11.7 ) Share-based compensation 21.8 — 21.8 18.5 — 18.5 Treasury shares for stock option and award plans 40.1 — 40.1 7.6 — 7.6 Spin-off of Versum — — — 186.5 (33.9 ) 152.6 Cumulative change in accounting principle — — — 8.8 — 8.8 Other equity transactions (1.3 ) 5.3 4.0 (2.5 ) .4 (2.1 ) Balance at 31 March $10,580.8 $112.4 $10,693.2 $9,317.4 $102.8 $9,420.2 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The tables below summarize changes in accumulated other comprehensive loss (AOCL), net of tax, attributable to Air Products for the three and six months ended 31 March 2018 : Derivatives qualifying as hedges Foreign currency translation adjustments Pension and postretirement benefits Total Balance at 31 December 2017 ($61.8 ) ($649.5 ) ($984.3 ) ($1,695.6 ) Other comprehensive income before reclassifications 17.8 125.6 — 143.4 Amounts reclassified from AOCL (7.5 ) — 26.6 19.1 Net current period other comprehensive income 10.3 125.6 26.6 162.5 Amount attributable to noncontrolling interests (.1 ) 2.3 — 2.2 Balance at 31 March 2018 ($51.4 ) ($526.2 ) ($957.7 ) ($1,535.3 ) Derivatives qualifying as hedges Foreign currency translation adjustments Pension and postretirement benefits Total Balance at 30 September 2017 ($53.1 ) ($787.1 ) ($1,007.2 ) ($1,847.4 ) Other comprehensive income before reclassifications 8.3 262.0 — 270.3 Amounts reclassified from AOCL (6.7 ) 3.1 49.5 45.9 Net current period other comprehensive income 1.6 265.1 49.5 316.2 Amount attributable to noncontrolling interests (.1 ) 4.2 — 4.1 Balance at 31 March 2018 ($51.4 ) ($526.2 ) ($957.7 ) ($1,535.3 ) |
Schedule of Reclassification out of Accumulated Other Comprehensive Income (Loss) | The table below summarizes the reclassifications out of accumulated other comprehensive loss and the affected line item on the consolidated income statements: Three Months Ended Six Months Ended 31 March 31 March 2018 2017 2018 2017 (Gain) Loss on Cash Flow Hedges, net of tax Sales/Cost of sales $4.0 $1.2 $5.0 $5.8 Other income/expense, net (13.8 ) 5.5 (15.2 ) 26.6 Interest expense 2.3 (.9 ) 3.5 (1.0 ) Total (Gain) Loss on Cash Flow Hedges, net of tax ($7.5 ) $5.8 ($6.7 ) $31.4 Currency Translation Adjustment (A) $— $49.1 $3.1 $49.1 Pension and Postretirement Benefits, net of tax (B) $26.6 $30.1 $49.5 $57.5 (A) The 2018 impact is reflected in "Cost of sales" and relates to an equipment sale resulting from the termination of a contract in the Industrial Gases – Asia segment during the first quarter. The 2017 impact was reflected in "Income from discontinued operations, net of tax" and related to the sale of PMD during the second quarter. (B) The components of net periodic benefit cost reclassified out of accumulated other comprehensive loss include items such as prior service cost amortization, actuarial loss amortization, and settlements and are included in “Other non-operating income (expense), net” on the consolidated income statements. Refer to Note 11 , Retirement Benefits |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Six Months Ended 31 March 31 March 2018 2017 2018 2017 Numerator Income from continuing operations $416.4 $304.4 $572.0 $556.0 Income (Loss) from discontinued operations — 1,825.6 (1.0 ) 1,873.8 Net Income Attributable to Air Products $416.4 $2,130.0 $571.0 $2,429.8 Denominator (in millions) Weighted average common shares — Basic 219.4 217.9 219.2 217.8 Effect of dilutive securities Employee stock option and other award plans 1.4 1.8 1.5 1.8 Weighted average common shares — Diluted 220.8 219.7 220.7 219.6 Basic Earnings Per Common Share Attributable to Air Products Income from continuing operations $1.90 $1.40 $2.61 $2.55 Income from discontinued operations — 8.38 — 8.61 Net Income Attributable to Air Products $1.90 $9.78 $2.61 $11.16 Diluted Earnings Per Common Share Attributable to Air Products Income from continuing operations $1.89 $1.39 $2.59 $2.53 Income from discontinued operations — 8.31 — 8.53 Net Income Attributable to Air Products $1.89 $9.70 $2.59 $11.06 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment | Industrial Gases – Americas Industrial Gases – EMEA Industrial Gases – Asia Industrial Gases – Global Corporate and other Segment Total Three Months Ended 31 March 2018 Sales $913.2 $561.6 $557.6 $101.7 $21.6 $2,155.7 Operating income (loss) 222.3 116.7 148.7 12.1 (44.4 ) 455.4 Depreciation and amortization 122.3 50.7 62.6 1.9 2.5 240.0 Equity affiliates' income 16.9 11.1 15.4 .3 — 43.7 Three Months Ended 31 March 2017 Sales $890.1 $414.2 $435.9 $216.5 $23.4 $1,980.1 Operating income (loss) 223.2 88.6 112.3 22.7 (40.9 ) 405.9 Depreciation and amortization 116.0 41.6 49.3 1.7 3.2 211.8 Equity affiliates' income 13.0 8.3 12.9 — — 34.2 Industrial Gases – Americas Industrial Gases – EMEA Industrial Gases – Asia Industrial Gases – Global Corporate and other Segment Total Six Months Ended 31 March 2018 Sales $1,823.0 $1,077.5 $1,201.2 $234.7 $35.9 $4,372.3 Operating income (loss) 439.5 221.2 324.2 21.6 (90.4 ) 916.1 Depreciation and amortization 240.1 99.8 119.4 3.5 5.1 467.9 Equity affiliates' income 35.5 24.2 29.6 .7 — 90.0 Six Months Ended 31 March 2017 Sales $1,754.0 $813.9 $874.2 $364.4 $56.1 $3,862.6 Operating income (loss) 446.5 178.6 230.7 30.9 (70.0 ) 816.7 Depreciation and amortization 227.8 83.8 96.0 3.7 6.6 417.9 Equity affiliates' income 27.7 17.8 26.4 .3 — 72.2 Total Assets 31 March 2018 $5,915.0 $3,475.5 $4,779.1 $252.5 $4,089.0 $18,511.1 30 September 2017 5,840.8 3,276.1 4,412.1 279.6 4,648.4 18,457.0 |
Reconciliation of Segments to Consolidated Operating Income | Below is a reconciliation of segment total operating income to consolidated operating income: Three Months Ended Six Months Ended 31 March 31 March Operating Income 2018 2017 2018 2017 Segment total $455.4 $405.9 $916.1 $816.7 Business separation costs — — — (32.5 ) Cost reduction and asset actions — (10.3 ) — (60.3 ) Consolidated Total $455.4 $395.6 $916.1 $723.9 |
Reconciliation of Segments to Consolidated Equity Affiliates' Income (Loss) | Below is a reconciliation of segment total equity affiliates' income to consolidated equity affiliates' income : Three Months Ended Six Months Ended 31 March 31 March Equity Affiliates' Income 2018 2017 2018 2017 Segment total $43.7 $34.2 $90.0 $72.2 Tax reform repatriation - equity method investment — — (32.5 ) — Consolidated Total $43.7 $34.2 $57.5 $72.2 |
Reconciliation of Segments to Consolidated Total Assets | Below is a reconciliation of segment total assets to consolidated total assets: 31 March 30 September Total Assets 2018 2017 Segment total $18,511.1 $18,457.0 Discontinued operations — 10.2 Consolidated Total $18,511.1 $18,467.2 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 03, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Liability associated with EFW | $ 68 | $ 68 | ||||||
Current assets of discontinued operations | 0 | 0 | $ 10.2 | |||||
Current liabilities of discontinued operations | 0 | 0 | 15.7 | |||||
Income (Loss) From Discontinued Operations, net of tax | 0 | $ 1,825.6 | (1) | $ 1,873.8 | ||||
Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain (Loss) on sale (disposal), after-tax | 1,832.5 | 1,785.4 | ||||||
Current liabilities of discontinued operations | 15.7 | |||||||
Assets of discontinued operations | 0 | 0 | ||||||
Liabilities of discontinued operations | 0 | 0 | ||||||
Income (Loss) From Discontinued Operations, net of tax | $ 0 | 1,825.6 | $ (1) | 1,873.8 | ||||
Performance Materials Division (PMD) | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale | $ 3,800 | |||||||
Gain on sale, before-tax | 2,870 | |||||||
Gain (Loss) on sale (disposal), after-tax | $ 1,833 | 1,832.5 | 1,832.5 | |||||
Gain on sale, after-tax, per share | $ 8.34 | |||||||
Income (Loss) From Discontinued Operations, net of tax | 1,828.1 | 1,928.8 | ||||||
Energy-from-Waste (EfW) | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain (Loss) on sale (disposal), after-tax | [1] | 0 | (47.1) | |||||
Loss on disposal, before-tax | $ 59.3 | |||||||
Loss on disposal, after tax | $ 47.1 | |||||||
Current assets of discontinued operations | $ 10.2 | |||||||
Income (Loss) From Discontinued Operations, net of tax | [1] | $ (2.5) | $ (55) | |||||
[1] | The loss from operations of discontinued operations for EfW primarily relates to land lease obligations, administrative costs, and costs incurred for project exit activities. |
Discontinued Operations (Schedu
Discontinued Operations (Schedule of Operating Results) (Details) - USD ($) $ in Millions | Jan. 03, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Income (Loss) from Discontinued Operations, net of tax | $ 0 | $ 1,825.6 | $ (1) | $ 1,873.8 | ||||
Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Sales | 254.8 | |||||||
Cost of sales | 6.3 | 191.9 | ||||||
Selling and administrative | 2.1 | 22.7 | ||||||
Research and development | 5.1 | |||||||
Other income (expense), net | 0.3 | 0.2 | ||||||
Operating Income (Loss) | 35.3 | |||||||
Equity affiliates’ income | 0.3 | |||||||
Income (Loss) Before Taxes | (8.1) | 35.6 | ||||||
Income tax benefit | (1.2) | (52.8) | [1] | |||||
Income (Loss) From Operations of Discontinued Operations, net of tax | (6.9) | 88.4 | ||||||
Gain (Loss) on Disposal, net of tax | 1,832.5 | 1,785.4 | ||||||
Income (Loss) from Discontinued Operations, net of tax | $ 0 | 1,825.6 | $ (1) | 1,873.8 | ||||
Performance Materials Division (PMD) | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Sales | 254.8 | |||||||
Cost of sales | 3.3 | 182.3 | ||||||
Selling and administrative | 2.1 | 22.5 | ||||||
Research and development | 5.1 | |||||||
Other income (expense), net | 0.7 | 0.3 | ||||||
Operating Income (Loss) | 45.2 | |||||||
Equity affiliates’ income | 0.3 | |||||||
Income (Loss) Before Taxes | (4.7) | 45.5 | ||||||
Income tax benefit | (0.3) | (50.8) | [1] | |||||
Income (Loss) From Operations of Discontinued Operations, net of tax | (4.4) | 96.3 | ||||||
Gain (Loss) on Disposal, net of tax | $ 1,833 | 1,832.5 | 1,832.5 | |||||
Income (Loss) from Discontinued Operations, net of tax | 1,828.1 | 1,928.8 | ||||||
Valuation allowance adjustment effect on income tax provision | $ 66 | |||||||
Energy-from-Waste (EfW) | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Sales | [2] | 0 | ||||||
Cost of sales | [2] | 3 | 9.6 | |||||
Selling and administrative | [2] | 0 | 0.2 | |||||
Research and development | [2] | 0 | ||||||
Other income (expense), net | [2] | (0.4) | (0.1) | |||||
Operating Income (Loss) | [2] | (9.9) | ||||||
Equity affiliates’ income | [2] | 0 | ||||||
Income (Loss) Before Taxes | [2] | (3.4) | (9.9) | |||||
Income tax benefit | [2] | (0.9) | (2) | |||||
Income (Loss) From Operations of Discontinued Operations, net of tax | [2] | (2.5) | (7.9) | |||||
Gain (Loss) on Disposal, net of tax | [2] | 0 | (47.1) | |||||
Income (Loss) from Discontinued Operations, net of tax | [2] | $ (2.5) | $ (55) | |||||
[1] | As a result of the expected gain on the sale of PMD, we released valuation allowances related to capital loss and net operating loss carryforwards during the first quarter of 2017 that favorably impacted our income tax provision within discontinued operations by approximately $66 | |||||||
[2] | The loss from operations of discontinued operations for EfW primarily relates to land lease obligations, administrative costs, and costs incurred for project exit activities. |
Materials Technologies Separa40
Materials Technologies Separation (Narrative) (Details) $ in Millions | Oct. 01, 2016 | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 1,825.6 | $ (1) | $ 1,873.8 | ||
Business separation costs, legal and advisory fees, before tax | 0 | 0 | 0 | 32.5 | ||
Materials Technologies | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Net business separation costs | 0 | 0 | 30.2 | |||
Materials Technologies | Business separation costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Business separation costs, legal and advisory fees, before tax | 32.5 | |||||
Materials Technologies | Other non-operating income (expense), net | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Pension settlement benefit | 2.3 | |||||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Electronic Materials Division (EMD) | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Distribution ratio of common stock in spin-off | 0.5 | |||||
Discontinued Operations | Electronic Materials Division (EMD) | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Income (loss) from discontinued operations, net of tax | 0 | $ 0 | 0 | $ 0 | ||
Assets of discontinued operations | 0 | 0 | $ 0 | |||
Liabilities of discontinued operations | $ 0 | $ 0 | $ 0 |
Cost Reduction and Asset Acti41
Cost Reduction and Asset Actions (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 | |
Restructuring and Related Cost [Abstract] | |||||
Cost reduction and asset actions | $ 0 | $ 10.3 | $ 0 | $ 60.3 | $ 151.4 |
Cost Reduction Actions | |||||
Restructuring and Related Cost [Abstract] | |||||
Cost reduction and asset actions | 154.8 | ||||
Cost Reduction Actions | Industrial Gases - Americas | |||||
Restructuring and Related Cost [Abstract] | |||||
Cost reduction and asset actions | 39.3 | ||||
Cost Reduction Actions | Industrial Gases - EMEA | |||||
Restructuring and Related Cost [Abstract] | |||||
Cost reduction and asset actions | 77.9 | ||||
Cost Reduction Actions | Industrial Gases - Asia | |||||
Restructuring and Related Cost [Abstract] | |||||
Cost reduction and asset actions | 0.9 | ||||
Cost Reduction Actions | Industrial Gases - Global | |||||
Restructuring and Related Cost [Abstract] | |||||
Cost reduction and asset actions | 2.5 | ||||
Cost Reduction Actions | Corporate and other | |||||
Restructuring and Related Cost [Abstract] | |||||
Cost reduction and asset actions | 34.2 | ||||
Cost Reduction Actions | Severance And Other Benefits | |||||
Restructuring and Related Cost [Abstract] | |||||
Cost reduction and asset actions | $ 10.3 | 18 | 66.3 | ||
Cost Reduction Actions | Asset Actions/Other | |||||
Restructuring and Related Cost [Abstract] | |||||
Cost reduction and asset actions | $ 45.7 | 88.5 | |||
Business Realignment and Reorganization | |||||
Restructuring and Related Cost [Abstract] | |||||
Favorable restructuring reserve settlement | $ 3.4 |
Cost Reduction and Asset Acti42
Cost Reduction and Asset Actions (Carrying Amount of Accrual) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Cost reduction and asset actions | $ 0 | $ 10.3 | $ 0 | $ 60.3 | $ 151.4 | |
Cost Reduction Actions | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost reduction and asset actions | 154.8 | |||||
Noncash expenses | (84.2) | |||||
Amount reflected in pension liability | (0.4) | (2) | ||||
Amount reflected in other noncurrent liabilities | (2.2) | |||||
Cash expenditures | (24.1) | (36.9) | ||||
Currency translation adjustment | 0.7 | (0.3) | ||||
Accrued balance | 17.7 | 17.7 | 41.5 | $ 12.3 | ||
Cost Reduction Actions | Severance And Other Benefits | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost reduction and asset actions | $ 10.3 | 18 | 66.3 | |||
Noncash expenses | 0 | |||||
Amount reflected in pension liability | (0.4) | (2) | ||||
Amount reflected in other noncurrent liabilities | 0 | |||||
Cash expenditures | (23.9) | (35.7) | ||||
Currency translation adjustment | 0.7 | (0.3) | ||||
Accrued balance | 17 | 17 | 40.6 | 12.3 | ||
Cost Reduction Actions | Asset Actions/Other | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Cost reduction and asset actions | $ 45.7 | 88.5 | ||||
Noncash expenses | (84.2) | |||||
Amount reflected in pension liability | 0 | 0 | ||||
Amount reflected in other noncurrent liabilities | (2.2) | |||||
Cash expenditures | (0.2) | (1.2) | ||||
Currency translation adjustment | 0 | 0 | ||||
Accrued balance | $ 0.7 | $ 0.7 | $ 0.9 | $ 0 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |
Business combinations, goodwill acquired during period | $ 62.9 |
2018 Acquisitions | |
Business Acquisition [Line Items] | |
Number of acquisitions completed | 5 |
Aggregate purchase price, net of cash acquired | $ 281 |
Business combinations, recognized property, plant, and equipment | 168.9 |
Business combinations, goodwill acquired during period | 62.9 |
Business combinations, tax deductible goodwill | 3 |
Business combinations, recognized identifiable intangible assets | $ 65.3 |
Acquired finite-lived intangible assets, weighted-average useful life | 12 years |
Business Combinations - Subsequ
Business Combinations - Subsequent Event (Details) $ in Millions, ¥ in Billions | Apr. 26, 2018USD ($) | Apr. 26, 2018CNY (¥) | Sep. 30, 2018USD ($) | Sep. 30, 2018CNY (¥) |
Lu'An Asset Acquisition | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Payments for business combination | $ 270 | ¥ 1.7 | ||
Lu'An Asset Acquisition | Forecast | ||||
Subsequent Event [Line Items] | ||||
Payments for business combination | $ 230 | ¥ 1.5 | ||
Air Products Lu'an (Changzhi) Co Ltd | Joint Venture | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Ownership interest by Air Products (percent) | 60.00% | |||
Ownership interest by noncontrolling owners (percent) | 40.00% | |||
Contribution of equipment to joint venture | $ 300 | |||
Carrying value of plant and equipment | $ 1,300 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 134.3 | $ 120 |
Work in process | 16.1 | 15.7 |
Raw materials, supplies and other | 213.6 | 223 |
Total FIFO cost | 364 | 358.7 |
Less: Excess of FIFO cost over LIFO cost | (24.1) | (23.3) |
Inventories | $ 339.9 | $ 335.4 |
Goodwill (Schedule of Goodwill
Goodwill (Schedule of Goodwill by Segment) (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | $ 721.5 |
Acquisitions | 62.9 |
Currency translation | 30.6 |
Goodwill, net, ending balance | 815 |
Industrial Gases - Americas | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 163.7 |
Acquisitions | 0 |
Currency translation | 3.5 |
Goodwill, net, ending balance | 167.2 |
Industrial Gases - EMEA | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 402.4 |
Acquisitions | 27.7 |
Currency translation | 22 |
Goodwill, net, ending balance | 452.1 |
Industrial Gases - Asia | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 135.2 |
Acquisitions | 35.2 |
Currency translation | 5 |
Goodwill, net, ending balance | 175.4 |
Industrial Gases - Global | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 20.2 |
Acquisitions | 0 |
Currency translation | 0.1 |
Goodwill, net, ending balance | $ 20.3 |
Goodwill (Schedule of Accumulat
Goodwill (Schedule of Accumulated Impairment Losses) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, gross | $ 1,257 | $ 1,138.7 |
Goodwill, accumulated impairment losses | (442) | (417.2) |
Goodwill, net | $ 815 | $ 721.5 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 |
Goodwill [Line Items] | ||
Goodwill, accumulated impairment losses | $ 442 | $ 417.2 |
Industrial Gases - Americas | ||
Goodwill [Line Items] | ||
Goodwill, accumulated impairment losses | $ 442 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) € in Millions | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | |
Derivative [Line Items] | ||||
Net liability position of derivatives with credit risk-related contingent features | $ 116,900,000 | $ 34,600,000 | ||
Collateral posted on liability positions with credit risk-related contingent features | 0 | |||
Collateral amount that counterparties would be required to post | $ 70,900,000 | 138,500,000 | ||
Forward Exchange Contracts | Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Maximum remaining maturity of foreign currency derivatives | 2 years | 2 years | ||
Foreign Currency Debt | Euro Denominated | ||||
Derivative [Line Items] | ||||
Notional amount included in designated foreign currency denominated debt | $ 1,127,100,000 | € 914.6 | $ 1,077,700,000 | € 912.2 |
Financial Instruments (Schedule
Financial Instruments (Schedule of Outstanding Currency Price Risk Management Instruments) (Details) - Forward Exchange Contracts - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Sep. 30, 2017 | |
Derivative [Line Items] | ||
US$ Notional | $ 4,313.3 | $ 4,099.5 |
Years Average Maturity | 11 months | 10 months |
Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 2,953.8 | $ 3,150.2 |
Years Average Maturity | 5 months | 5 months |
Designated as Hedging Instrument | Net Investment Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 369.5 | $ 675.5 |
Years Average Maturity | 2 years 6 months | 3 years |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
US$ Notional | $ 990 | $ 273.8 |
Years Average Maturity | 1 year 8 months | 1 month |
Financial Instruments (Schedu51
Financial Instruments (Schedule of Interest Rate Swaps and Cross Currency Interest Rate Swaps) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Sep. 30, 2017 | |
Interest Rate Swaps Contracts | Designated as Hedging Instrument | Fair Value Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 400 | $ 600 |
Average Pay % | LIBOR | LIBOR |
Average Receive % | 2.53% | 2.28% |
Years Average Maturity | 1 year 4 months 24 days | 1 year 3 months 18 days |
Cross Currency Interest Rate Swaps | Designated as Hedging Instrument | Net Investment Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 688.7 | $ 539.7 |
Average Pay % | 3.73% | 3.27% |
Average Receive % | 2.76% | 2.59% |
Years Average Maturity | 2 years 3 months 18 days | 1 year 10 months 24 days |
Cross Currency Interest Rate Swaps | Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 1,014.6 | $ 1,095.7 |
Average Pay % | 5.01% | 4.96% |
Average Receive % | 2.75% | 2.78% |
Years Average Maturity | 2 years 4 months 24 days | 2 years 4 months 24 days |
Cross Currency Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
US$ Notional | $ 39.5 | $ 41.6 |
Average Pay % | 3.16% | 3.28% |
Average Receive % | 2.88% | 2.32% |
Years Average Maturity | 1 year 6 months | 1 year 8 months 12 days |
Financial Instruments (Fair Val
Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 |
Derivative [Line Items] | ||
Total Derivatives, Assets | $ 157.6 | $ 227.8 |
Total Derivatives, Liabilities | 151.6 | 131.9 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 139.8 | 222.5 |
Total Derivatives, Liabilities | 128.8 | 128.7 |
Designated as Hedging Instrument | Other Receivables | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 81.7 | 81.7 |
Designated as Hedging Instrument | Other Receivables | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 5.5 | 11.1 |
Designated as Hedging Instrument | Other Noncurrent Assets | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 9.1 | 27.1 |
Designated as Hedging Instrument | Other Noncurrent Assets | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 43.5 | 102.6 |
Designated as Hedging Instrument | Accrued Liabilities | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 31.6 | 82 |
Designated as Hedging Instrument | Accrued Liabilities | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 19.4 | 10.7 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 19.7 | 13.8 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 58.1 | 22.2 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 17.8 | 5.3 |
Total Derivatives, Liabilities | 22.8 | 3.2 |
Not Designated as Hedging Instrument | Other Receivables | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 4.4 | 1.1 |
Not Designated as Hedging Instrument | Other Receivables | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 0 | 0 |
Not Designated as Hedging Instrument | Other Noncurrent Assets | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 9.5 | 0 |
Not Designated as Hedging Instrument | Other Noncurrent Assets | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 3.9 | 4.2 |
Not Designated as Hedging Instrument | Accrued Liabilities | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 5.4 | 2.2 |
Not Designated as Hedging Instrument | Accrued Liabilities | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 0.4 | 1 |
Not Designated as Hedging Instrument | Other Noncurrent Liabilities | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 17 | 0 |
Not Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | $ 0 | $ 0 |
Financial Instruments (Schedu53
Financial Instruments (Schedule of Gain/Loss Related to Derivative Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Designated as Hedging Instrument | Cash Flow Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI (effective portion) | $ 17.8 | $ (15.4) | $ 8.3 | $ (25.2) | |
Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) | 4 | 1.2 | 5 | 5.8 | |
Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) | (13.5) | 5 | (14.7) | 26.3 | |
Net (gain) loss reclassified from OCI to interest expense (effective portion) | 2.3 | (0.9) | 3.5 | (1) | |
Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) | (0.3) | 0.5 | (0.5) | 0.3 | |
Designated as Hedging Instrument | Fair Value Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in interest expense | [1] | (3.6) | (2.8) | (6.8) | (11.9) |
Designated as Hedging Instrument | Net Investment Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI | (60.7) | (15.1) | (96.7) | 67.7 | |
Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in other income (expense), net | [2] | (0.6) | (3.1) | (3.4) | (0.2) |
Forward Exchange Contracts | Designated as Hedging Instrument | Cash Flow Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI (effective portion) | 31.9 | 11.1 | 39.4 | (48.3) | |
Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) | 4 | 1.2 | 5 | 5.8 | |
Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) | (29.3) | (10.8) | (46.9) | 38.7 | |
Net (gain) loss reclassified from OCI to interest expense (effective portion) | 1.6 | (1.6) | 2.2 | (2.4) | |
Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) | (0.3) | 0.5 | (0.5) | 0.3 | |
Forward Exchange Contracts | Designated as Hedging Instrument | Net Investment Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI | (15.2) | (0.8) | (22.7) | 27.1 | |
Forward Exchange Contracts | Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in other income (expense), net | [2] | 1.6 | (2.5) | 0.1 | (0.4) |
Foreign Currency Debt | Designated as Hedging Instrument | Net Investment Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI | (22.2) | (7.8) | (39.5) | 34 | |
Other Contracts | Designated as Hedging Instrument | Cash Flow Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI (effective portion) | [3] | (14.1) | (26.5) | (31.1) | 23.1 |
Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) | [3] | 0 | 0 | 0 | 0 |
Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) | [3] | 15.8 | 15.8 | 32.2 | (12.4) |
Net (gain) loss reclassified from OCI to interest expense (effective portion) | [3] | 0.7 | 0.7 | 1.3 | 1.4 |
Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) | [3] | 0 | 0 | 0 | 0 |
Other Contracts | Designated as Hedging Instrument | Fair Value Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in interest expense | [1],[3] | (3.6) | (2.8) | (6.8) | (11.9) |
Other Contracts | Designated as Hedging Instrument | Net Investment Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI | [3] | (23.3) | (6.5) | (34.5) | 6.6 |
Other Contracts | Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in other income (expense), net | [2],[3] | $ (2.2) | $ (0.6) | $ (3.5) | $ 0.2 |
[1] | The impact of fair value hedges noted above was largely offset by recognized gains and losses resulting from the impact of changes in related interest rates on outstanding debt. | ||||
[2] | The impact of the non-designated hedges noted above was largely offset by recognized gains and losses resulting from the impact of changes in exchange rates on assets and liabilities denominated in non-functional currencies. | ||||
[3] | Other includes the impact on other comprehensive income (OCI) and earnings primarily related to interest rate and cross currency interest rate swaps. |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of the Carrying Values and Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion, carrying value | $ 3,454 | $ 3,818.8 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion fair value | 3,459.5 | 3,928.2 |
Forward Exchange Contracts | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 104.7 | 109.9 |
Derivative liabilities | 73.7 | 98 |
Forward Exchange Contracts | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 104.7 | 109.9 |
Derivative liabilities | 73.7 | 98 |
Interest Rate Management Contract | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 52.9 | 117.9 |
Derivative liabilities | 77.9 | 33.9 |
Interest Rate Management Contract | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 52.9 | 117.9 |
Derivative liabilities | $ 77.9 | $ 33.9 |
Fair Value Measurements (Sche55
Fair Value Measurements (Schedule of Recurring Fair Value Measurements) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets at Fair Value | $ 157.6 | $ 227.8 |
Total Liabilities at Fair Value | 151.6 | 131.9 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Total Liabilities at Fair Value | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets at Fair Value | 157.6 | 227.8 |
Total Liabilities at Fair Value | 151.6 | 131.9 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Total Liabilities at Fair Value | 0 | 0 |
Forward Exchange Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 104.7 | 109.9 |
Derivative liabilities | 73.7 | 98 |
Forward Exchange Contracts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Forward Exchange Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 104.7 | 109.9 |
Derivative liabilities | 73.7 | 98 |
Forward Exchange Contracts | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Interest Rate Management Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 52.9 | 117.9 |
Derivative liabilities | 77.9 | 33.9 |
Interest Rate Management Contract | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Interest Rate Management Contract | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 52.9 | 117.9 |
Derivative liabilities | 77.9 | 33.9 |
Interest Rate Management Contract | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - Defined Benefit Pension Plan - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Company contributions | $ 35.9 | $ 40.8 | $ 64.1 |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total expected contributions for current fiscal year | 50 | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total expected contributions for current fiscal year | $ 70 | ||
Discontinued Operations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 1.3 |
Retirement Benefits (Schedule o
Retirement Benefits (Schedule of Net Periodic Benefit Cost) (Details) - Defined Benefit Pension Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |||
Discontinued Operations | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | $ 1.3 | |||||
U.S. | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | $ 6.4 | $ 6.9 | $ 12.8 | [1] | 15.2 | [1] |
Interest cost | 26.8 | 27.6 | 53.5 | 52.5 | ||
Expected return on plan assets | (50.4) | (51.7) | (100.8) | (104.4) | ||
Prior service cost amortization | 0.4 | 0.6 | 0.8 | 1.2 | ||
Actuarial loss amortization | 22.2 | 20.9 | 43.9 | 47 | ||
Settlements | 1.5 | 4.1 | 3.3 | 4.1 | ||
Curtailment | 0 | 0.1 | 0 | 4.3 | ||
Special termination benefits | 0.4 | (0.1) | 0.4 | 1 | ||
Other | 0 | 0 | 0 | 0 | ||
Net periodic benefit cost | 7.3 | 8.4 | 13.9 | 20.9 | ||
U.S. | Discontinued Operations | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic benefit cost | 0 | 0.1 | 0 | 0.7 | ||
U.S. | Continuing Operations | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic benefit cost | 7.3 | 8.3 | 13.9 | 20.2 | ||
International | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 6.6 | 6.3 | 12.9 | [1] | 13 | [1] |
Interest cost | 9.6 | 7.9 | 18.8 | 15.5 | ||
Expected return on plan assets | (21.1) | (18.3) | (41.3) | (36.8) | ||
Prior service cost amortization | 0 | (0.1) | 0 | (0.1) | ||
Actuarial loss amortization | 10.3 | 13.2 | 20.3 | 27.1 | ||
Settlements | 0 | 4 | 0 | 1.7 | ||
Curtailment | 0 | 1.8 | 0 | (1.3) | ||
Special termination benefits | 0 | 0.1 | 0 | 0.5 | ||
Other | 0.1 | (2.2) | 0.6 | 0.5 | ||
Net periodic benefit cost | 5.5 | 12.7 | 11.3 | 20.1 | ||
International | Discontinued Operations | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic benefit cost | 0 | 3.4 | 0 | 4.1 | ||
International | Continuing Operations | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic benefit cost | $ 5.5 | $ 9.3 | $ 11.3 | $ 16 | ||
[1] | Includes total service costs from discontinued operations of $1.3 for the six months ended 31 March 2017 |
Commitments and Contingencies (
Commitments and Contingencies (Litigation and Environmental - Narrative) (Details) R$ in Millions | 1 Months Ended | 6 Months Ended | ||
Sep. 30, 2010BRL (R$) | Mar. 31, 2018USD ($)site | Mar. 31, 2018BRL (R$)site | Sep. 30, 2017USD ($) | |
Alleged Anticompete Litigation | ||||
Loss Contingencies [Line Items] | ||||
Civil fines imposed | R$ 179.2 | $ 54,000,000 | ||
Provision for litigation | 0 | |||
Maximum of loss contingency range subject to interest | $ 54,000,000 | R$ 179.2 | ||
Environmental | ||||
Loss Contingencies [Line Items] | ||||
Approximate number of sites on which settlement has not been reached | site | 33 | 33 | ||
Accrual for environmental loss contingencies | $ 81,000,000 | $ 83,600,000 | ||
Accrual for environmental loss contingencies, maximum payout period | 30 years | |||
Environmental | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible exposure from environmental loss contingencies | $ 80,000,000 | |||
Environmental | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible exposure from environmental loss contingencies | $ 95,000,000 |
Commitments and Contingencies59
Commitments and Contingencies (Pace, Piedmont, Pasadena Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2012 | Sep. 30, 2008 | Sep. 30, 2006 | |
Pace, Florida | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | $ 28,200,000 | $ 42,000,000 | ||
Change in estimated exposure | 0 | |||
Pace, Florida | Discontinued Operations | ||||
Loss Contingencies [Line Items] | ||||
Pretax environmental expense | 42,000,000 | |||
Pace, Florida | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible exposure from environmental loss contingencies | 42,000,000 | |||
Pace, Florida | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible exposure from environmental loss contingencies | $ 52,000,000 | |||
Piedmont, South Carolina | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | 16,200,000 | $ 24,000,000 | ||
Piedmont, South Carolina | Discontinued Operations | ||||
Loss Contingencies [Line Items] | ||||
Pretax environmental expense | $ 24,000,000 | |||
Pasadena, Texas | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | $ 11,900,000 | |||
Total anticipated exposure | $ 13,000,000 |
Commitments and Contingencies60
Commitments and Contingencies (Unconditional Purchase Obligations) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Helium Purchases [Member] | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unconditional purchase obligation | $ 6,500 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future grant | 4,610,336 | 4,610,336 | ||
Incremental share-based compensation expense | $ 10.7 | $ 9.5 | $ 22.5 | $ 18.5 |
Market-Based Deferred Stock Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of units/shares granted | 104,874 | |||
Performance period | 3 years | |||
Weighted average grant date fair value (in dollars per unit/share) | $ 202.50 | |||
Time-Based Deferred Stock Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of units/shares granted | 138,340 | |||
Weighted average grant date fair value (in dollars per unit/share) | $ 162.12 |
Share-Based Compensation (Compe
Share-Based Compensation (Compensation Cost Recognized in Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||
Before-tax share-based compensation cost | $ 10.7 | $ 9.5 | $ 22.5 | $ 18.5 |
Income tax benefit | (2.1) | (3.3) | (5.3) | (6.3) |
After-tax share-based compensation cost | $ 8.6 | $ 6.2 | $ 17.2 | $ 12.2 |
Share-Based Compensation (Marke
Share-Based Compensation (Market-Based Deferred Stock Unit Valuation Assumptions) (Details) - Market-Based Deferred Stock Unit | 6 Months Ended |
Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 18.70% |
Risk-free interest rate | 1.90% |
Expected dividend yield | 2.60% |
Equity (Changes in Equity) (Det
Equity (Changes in Equity) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 10,321.2 | $ 7,261.1 | $ 10,185.5 | $ 7,213.4 |
Net income | 423.6 | 2,135.7 | 585.3 | 2,442.1 |
Other comprehensive income (loss) | 162.5 | 223 | 316.2 | (15) |
Dividends on common stock | (241.1) | (206.9) | (449.1) | (394) |
Dividends to noncontrolling interests | (2.9) | (7.5) | (10.6) | (11.7) |
Share-based compensation | 10.7 | 9.5 | 21.8 | 18.5 |
Treasury shares for stock option and award plans | 20.2 | 7.9 | 40.1 | 7.6 |
Spin-off of Versum | 0 | (152.6) | ||
Cumulative change in accounting principle | 0 | 8.8 | ||
Other equity transactions | (1) | (2.6) | 4 | (2.1) |
Ending balance | $ 10,693.2 | $ 9,420.2 | $ 10,693.2 | $ 9,420.2 |
Dividends per share (in dollars per share) | $ 1.10 | $ 0.95 | $ 2.05 | $ 1.81 |
Air Products Shareholders' Equity | ||||
Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ 10,215.3 | $ 7,161.5 | $ 10,086.2 | $ 7,079.6 |
Net income | 416.4 | 2,130 | 571 | 2,429.8 |
Other comprehensive income (loss) | 160.3 | 218 | 312.1 | (16.9) |
Dividends on common stock | (241.1) | (206.9) | (449.1) | (394) |
Share-based compensation | 10.7 | 9.5 | 21.8 | 18.5 |
Treasury shares for stock option and award plans | 20.2 | 7.9 | 40.1 | 7.6 |
Spin-off of Versum | 0 | (186.5) | ||
Cumulative change in accounting principle | 0 | 8.8 | ||
Other equity transactions | (1) | (2.6) | (1.3) | (2.5) |
Ending balance | 10,580.8 | 9,317.4 | 10,580.8 | 9,317.4 |
Non-controlling Interests | ||||
Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 105.9 | 99.6 | 99.3 | 133.8 |
Net income | 7.2 | 5.7 | 14.3 | 12.3 |
Other comprehensive income (loss) | 2.2 | 5 | 4.1 | 1.9 |
Dividends to noncontrolling interests | (2.9) | (7.5) | (10.6) | (11.7) |
Spin-off of Versum | 0 | (33.9) | ||
Other equity transactions | 0 | 0 | 5.3 | 0.4 |
Ending balance | $ 112.4 | $ 102.8 | $ 112.4 | $ 102.8 |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Loss (Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 10,321.2 | $ 7,261.1 | $ 10,185.5 | $ 7,213.4 |
Other comprehensive income before reclassifications | 143.4 | 270.3 | ||
Amounts reclassified from AOCL | 19.1 | 45.9 | ||
Total Other Comprehensive Income | 162.5 | 223 | 316.2 | (15) |
Amount attributable to noncontrolling interests | 2.2 | 5 | 4.1 | 1.9 |
Ending balance | 10,693.2 | $ 9,420.2 | 10,693.2 | $ 9,420.2 |
Derivatives qualifying as hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (61.8) | (53.1) | ||
Other comprehensive income before reclassifications | 17.8 | 8.3 | ||
Amounts reclassified from AOCL | (7.5) | (6.7) | ||
Total Other Comprehensive Income | 10.3 | 1.6 | ||
Amount attributable to noncontrolling interests | (0.1) | (0.1) | ||
Ending balance | (51.4) | (51.4) | ||
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (649.5) | (787.1) | ||
Other comprehensive income before reclassifications | 125.6 | 262 | ||
Amounts reclassified from AOCL | 0 | 3.1 | ||
Total Other Comprehensive Income | 125.6 | 265.1 | ||
Amount attributable to noncontrolling interests | 2.3 | 4.2 | ||
Ending balance | (526.2) | (526.2) | ||
Pension and postretirement benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (984.3) | (1,007.2) | ||
Other comprehensive income before reclassifications | 0 | 0 | ||
Amounts reclassified from AOCL | 26.6 | 49.5 | ||
Total Other Comprehensive Income | 26.6 | 49.5 | ||
Amount attributable to noncontrolling interests | 0 | 0 | ||
Ending balance | (957.7) | (957.7) | ||
AOCL attributable to Air Products | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (1,695.6) | (1,847.4) | ||
Ending balance | $ (1,535.3) | $ (1,535.3) |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Loss (Reclassification) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other income/expense, net | $ (15.3) | $ (22) | $ (37.4) | $ (46.7) | |
Interest expense | 30.4 | 30.5 | 60.2 | 60 | |
Cost of sales | 1,506.5 | 1,403.8 | 3,078.3 | 2,720.5 | |
Income (loss) from discontinued operations, net of tax | 0 | (1,825.6) | 1 | (1,873.8) | |
Net Income (Loss) Attributable to Air Products | (416.4) | (2,130) | (571) | (2,429.8) | |
Reclassification out of Accumulated Other Comprehensive Income | (Gain) Loss on Cash Flow Hedges, net of tax | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Sales/Cost of sales | 4 | 1.2 | 5 | 5.8 | |
Other income/expense, net | (13.8) | 5.5 | (15.2) | 26.6 | |
Interest expense | 2.3 | (0.9) | 3.5 | (1) | |
Net Income (Loss) Attributable to Air Products | (7.5) | 5.8 | (6.7) | 31.4 | |
Reclassification out of Accumulated Other Comprehensive Income | Currency Translation Adjustment | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of sales | [1] | 0 | 3.1 | ||
Income (loss) from discontinued operations, net of tax | [1] | 49.1 | 49.1 | ||
Reclassification out of Accumulated Other Comprehensive Income | Pension and Postretirement Benefits, net of tax | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net Income (Loss) Attributable to Air Products | [2] | $ 26.6 | $ 30.1 | $ 49.5 | $ 57.5 |
[1] | The 2018 impact is reflected in "Cost of sales" and relates to an equipment sale resulting from the termination of a contract in the Industrial Gases – Asia segment during the first quarter. The 2017 impact was reflected in "Income from discontinued operations, net of tax" and related to the sale of PMD during the second quarter. | ||||
[2] | The components of net periodic benefit cost reclassified out of accumulated other comprehensive loss include items such as prior service cost amortization, actuarial loss amortization, and settlements and are included in “Other non-operating income (expense), net” on the consolidated income statements. Refer to Note 11 , Retirement Benefits |
Earnings per Share (Schedule of
Earnings per Share (Schedule of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||||
Income from continuing operations | $ 416.4 | $ 304.4 | $ 572 | $ 556 |
Income (Loss) from discontinued operations | 0 | 1,825.6 | (1) | 1,873.8 |
Net Income Attributable to Air Products | $ 416.4 | $ 2,130 | $ 571 | $ 2,429.8 |
Weighted average common shares — Basic | 219.4 | 217.9 | 219.2 | 217.8 |
Employee stock option and other award plans | 1.4 | 1.8 | 1.5 | 1.8 |
Weighted average common shares — Diluted | 220.8 | 219.7 | 220.7 | 219.6 |
Earnings Per Share, Basic [Abstract] | ||||
Income from continuing operations (in dollars per share) | $ 1.90 | $ 1.40 | $ 2.61 | $ 2.55 |
Income (Loss) from discontinued operations (in dollars per share) | 0 | 8.38 | 0 | 8.61 |
Net Income (Loss) Attributable to Air Products (in dollars per share) | 1.90 | 9.78 | 2.61 | 11.16 |
Earnings Per Share, Diluted [Abstract] | ||||
Income from continuing operations (in dollars per share) | 1.89 | 1.39 | 2.59 | 2.53 |
Income (Loss) from discontinued operations (in dollars per share) | 0 | 8.31 | 0 | 8.53 |
Net Income (Loss) Attributable to Air Products (in dollars per share) | $ 1.89 | $ 9.70 | $ 2.59 | $ 11.06 |
Earnings per Share (Narrative)
Earnings per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||||
Antidilutive share-based awards excluded from computation of diluted earnings per share (in shares) | 0.1 | 0 | 0.1 | 0.1 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Apr. 17, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Income Tax Disclosure [Line Items] | |||||||||
Deferred Foreign Income Tax Expense (Benefit) | $ 38.8 | ||||||||
U.S. federal statutory tax rate (percent) | 21.00% | 35.00% | |||||||
Net expense in consolidated income statements related to change in tax law | $ 239 | ||||||||
Expense related to repatriation tax and future repatriation effect on foreign investments | 453 | ||||||||
Expense related to repatriation tax and future repatriation effect on foreign investments impacting income tax provision | 420.5 | ||||||||
Change In tax rate, deferred tax liability, income tax (expense) benefit | 214 | ||||||||
Component of tax-related adjustment payable over eight years | 364.1 | ||||||||
Component of tax-related adjustment resulting from withholding taxes and other impacts | 56.4 | ||||||||
Foreign tax credits expected to offset repatriation tax | $ 53.8 | 53.8 | |||||||
Tax liabilities not expected to be offset by foreign tax credits | 310.3 | 310.3 | |||||||
Transition tax for accumulated foreign earnings, liability, noncurrent | 263.4 | $ 263.4 | |||||||
Effective tax rate (percent) | 37.20% | ||||||||
Income tax payments, net of refunds | $ 153.7 | $ 784.7 | |||||||
Unrecognized tax benefits | 156.9 | 156.9 | $ 146.4 | ||||||
Increase in unrecognized tax benefits resulting from current period tax positions | 18.7 | ||||||||
Decrease in unrecognized tax benefits resulting from prior period tax positions | 9.7 | ||||||||
Subsequent Event | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Decrease in unrecognized tax benefits resulting from settlement agreement | $ 40 | ||||||||
Forecast | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
U.S. federal statutory tax rate (percent) | 24.50% | ||||||||
Forecast | Discontinued Operations | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Expected income tax benefit | $ 25 | ||||||||
Forecast | Continuing Operations | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Expected income tax benefit | $ 9 | ||||||||
Segment Reconciling Items | |||||||||
Income Tax Disclosure [Line Items] | |||||||||
Impact of new tax law on equity affiliate expense | $ 0 | $ 0 | $ 32.5 | $ 0 |
Business Segment Information (N
Business Segment Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 2,155.7 | $ 1,980.1 | $ 4,372.3 | $ 3,862.6 |
Operating income (loss) | 455.4 | 395.6 | 916.1 | 723.9 |
Contracts accounted for under percentage of completion [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | 10 | 12 | ||
Industrial Gases - Global | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 56 | 61 | 117.9 | 122 |
Jazan [Member] | Industrial Gases - Global | ||||
Segment Reporting Information [Line Items] | ||||
Sales | $ 60 | $ 170 | $ 150 | $ 280 |
Business Segment Information (S
Business Segment Information (Schedule of Segment Reporting Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 2,155.7 | $ 1,980.1 | $ 4,372.3 | $ 3,862.6 | |
Operating income (loss) | 455.4 | 395.6 | 916.1 | 723.9 | |
Depreciation and amortization | 467.9 | 417.9 | |||
Equity affiliates' income | 43.7 | 34.2 | 57.5 | 72.2 | |
Total assets | 18,511.1 | 18,511.1 | $ 18,467.2 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 2,155.7 | 1,980.1 | 4,372.3 | 3,862.6 | |
Operating income (loss) | 455.4 | 405.9 | 916.1 | 816.7 | |
Depreciation and amortization | 240 | 211.8 | 467.9 | 417.9 | |
Equity affiliates' income | 43.7 | 34.2 | 90 | 72.2 | |
Total assets | 18,511.1 | 18,511.1 | 18,457 | ||
Industrial Gases - Americas | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 913.2 | 890.1 | 1,823 | 1,754 | |
Operating income (loss) | 222.3 | 223.2 | 439.5 | 446.5 | |
Depreciation and amortization | 122.3 | 116 | 240.1 | 227.8 | |
Equity affiliates' income | 16.9 | 13 | 35.5 | 27.7 | |
Total assets | 5,915 | 5,915 | 5,840.8 | ||
Industrial Gases - EMEA | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 561.6 | 414.2 | 1,077.5 | 813.9 | |
Operating income (loss) | 116.7 | 88.6 | 221.2 | 178.6 | |
Depreciation and amortization | 50.7 | 41.6 | 99.8 | 83.8 | |
Equity affiliates' income | 11.1 | 8.3 | 24.2 | 17.8 | |
Total assets | 3,475.5 | 3,475.5 | 3,276.1 | ||
Industrial Gases - Asia | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 557.6 | 435.9 | 1,201.2 | 874.2 | |
Operating income (loss) | 148.7 | 112.3 | 324.2 | 230.7 | |
Depreciation and amortization | 62.6 | 49.3 | 119.4 | 96 | |
Equity affiliates' income | 15.4 | 12.9 | 29.6 | 26.4 | |
Total assets | 4,779.1 | 4,779.1 | 4,412.1 | ||
Industrial Gases - Global | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 101.7 | 216.5 | 234.7 | 364.4 | |
Operating income (loss) | 12.1 | 22.7 | 21.6 | 30.9 | |
Depreciation and amortization | 1.9 | 1.7 | 3.5 | 3.7 | |
Equity affiliates' income | 0.3 | 0 | 0.7 | 0.3 | |
Total assets | 252.5 | 252.5 | 279.6 | ||
Corporate and other | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 21.6 | 23.4 | 35.9 | 56.1 | |
Operating income (loss) | (44.4) | (40.9) | (90.4) | (70) | |
Depreciation and amortization | 2.5 | 3.2 | 5.1 | 6.6 | |
Equity affiliates' income | 0 | $ 0 | 0 | $ 0 | |
Total assets | $ 4,089 | $ 4,089 | $ 4,648.4 |
Business Segment Information (R
Business Segment Information (Reconciliation of Operating Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||
Business separation costs | $ 0 | $ 0 | $ 0 | $ (32.5) | |
Cost reduction and asset actions | 0 | (10.3) | 0 | (60.3) | $ (151.4) |
Operating Income | 455.4 | 395.6 | 916.1 | 723.9 | |
Segment Total | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income | 455.4 | 405.9 | 916.1 | 816.7 | |
Segment Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Business separation costs | 0 | 0 | 0 | (32.5) | |
Cost reduction and asset actions | $ 0 | $ (10.3) | $ 0 | $ (60.3) |
Business Segment Information 73
Business Segment Information (Reconciliation of Equity Affiliates' Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Equity affiliates' income | $ 43.7 | $ 34.2 | $ 57.5 | $ 72.2 |
Segment Total | ||||
Segment Reporting Information [Line Items] | ||||
Equity affiliates' income | 43.7 | 34.2 | 90 | 72.2 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Tax reform repatriation - equity method investment | $ 0 | $ 0 | $ (32.5) | $ 0 |
Business Segment Information 74
Business Segment Information (Reconciliation of Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Sep. 30, 2017 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 18,511.1 | $ 18,467.2 |
Segment Total | ||
Segment Reporting Information [Line Items] | ||
Total assets | 18,511.1 | 18,457 |
Discontinued Operations | Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Assets of discontinued operations | $ 0 | $ 10.2 |