Document and Entity Information
Document and Entity Information | 6 Months Ended |
Mar. 31, 2019shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2019 |
Amendment Flag | false |
Entity Registrant Name | AIR PRODUCTS & CHEMICALS INC /DE/ |
Entity Central Index Key | 0000002969 |
Current Fiscal Year End Date | --09-30 |
Entity Filer Category | Large Accelerated Filer |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Entity Common Stock, Shares Outstanding | 220,132,561 |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Consolidated Income Statements
Consolidated Income Statements (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||||
Sales | $ 2,187.7 | $ 2,155.7 | $ 4,411.7 | $ 4,372.3 |
Cost of sales | 1,474.7 | 1,506.5 | 3,018.7 | 3,078.3 |
Facility closure | 0 | 0 | 29 | 0 |
Selling and administrative | 190 | 194.6 | 379.6 | 386.2 |
Research and development | 16.9 | 14.5 | 31.9 | 29.1 |
Other income (expense), net | 10.4 | 15.3 | 19 | 37.4 |
Operating Income | 516.5 | 455.4 | 971.5 | 916.1 |
Equity affiliates' income | 46.2 | 43.7 | 99.1 | 57.5 |
Interest expense | 35.4 | 30.4 | 72.7 | 60.2 |
Other non-operating income (expense), net | 13.7 | 11.1 | 32.2 | 20.9 |
Income From Continuing Operations Before Taxes | 541 | 479.8 | 1,030.1 | 934.3 |
Income tax provision | 107.5 | 56.2 | 239.6 | 348 |
Income From Continuing Operations | 433.5 | 423.6 | 790.5 | 586.3 |
Loss From Discontinued Operations, net of tax | 0 | 0 | 0 | (1) |
Net Income | 433.5 | 423.6 | 790.5 | 585.3 |
Net Income Attributable to Noncontrolling Interests of Continuing Operations | 12.2 | 7.2 | 21.7 | 14.3 |
Net Income Attributable to Air Products | 421.3 | 416.4 | 768.8 | 571 |
Net Income Attributable to Air Products | ||||
Income from continuing operations | 421.3 | 416.4 | 768.8 | 572 |
Loss from discontinued operations | 0 | 0 | 0 | (1) |
Net Income Attributable to Air Products | $ 421.3 | $ 416.4 | $ 768.8 | $ 571 |
Basic Earnings Per Common Share Attributable to Air Products | ||||
Income from continuing operations, basic (in dollars per share) | $ 1.91 | $ 1.90 | $ 3.49 | $ 2.61 |
Loss from discontinued operations, basic (in dollars per share) | 0 | 0 | 0 | 0 |
Net Income Attributable to Air Products (in dollars per share) | 1.91 | 1.90 | 3.49 | 2.61 |
Diluted Earnings Per Common Share Attributable to Air Products | ||||
Income from continuing operations, diluted (in dollars per share) | 1.90 | 1.89 | 3.48 | 2.59 |
Loss from discontinued operations, diluted (in dollars per share) | 0 | 0 | 0 | 0 |
Net Income Attributable to Air Products (in dollars per share) | $ 1.90 | $ 1.89 | $ 3.48 | $ 2.59 |
Weighted Average Common Shares - Basic (in millions) | 220.2 | 219.4 | 220 | 219.2 |
Weighted Average Common Shares - Diluted (in millions) | 221.4 | 220.8 | 221.2 | 220.7 |
Consolidated Comprehensive Inco
Consolidated Comprehensive Income Statements (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 433.5 | $ 423.6 | $ 790.5 | $ 585.3 |
Other Comprehensive Income (Loss), net of tax: | ||||
Translation adjustments, net of tax | 51.3 | 125.6 | (16.8) | 262 |
Net gain (loss) on derivatives, net of tax | (35.4) | 17.8 | (45.7) | 8.3 |
Pension and postretirement benefits, net of tax | (3.9) | 0 | ||
Reclassification adjustments: | ||||
Currency translation adjustment | 0 | 3.1 | ||
Derivatives, net of tax | 36.9 | (7.5) | 33.8 | (6.7) |
Pension and postretirement benefits, net of tax | 18.7 | 26.6 | 33.9 | 49.5 |
Total Other Comprehensive Income | 71.5 | 162.5 | 1.3 | 316.2 |
Comprehensive Income | 505 | 586.1 | 791.8 | 901.5 |
Net Income Attributable to Noncontrolling Interests | 12.2 | 7.2 | 21.7 | 14.3 |
Other Comprehensive Income Attributable to Noncontrolling Interests | 5.1 | 2.2 | 4.2 | 4.1 |
Comprehensive Income Attributable to Air Products | $ 487.7 | $ 576.7 | $ 765.9 | $ 883.1 |
Consolidated Comprehensive In_2
Consolidated Comprehensive Income Statements (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect on translation adjustments | $ 8 | $ (13.2) | $ 12.9 | $ (19.8) |
Tax effect on net gain (loss) on derivatives | (8.7) | 4 | (9.4) | (1.3) |
Tax effect on pension and postretirement benefits | 0 | 0 | (0.8) | 0 |
Tax effect on derivatives reclassification adjustments | 11.5 | (3.3) | 10.7 | (1.6) |
Tax effect on pension and postretirement benefits reclassification adjustments | $ 6 | $ 7.9 | $ 11 | $ 18.9 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2019 | Sep. 30, 2018 |
Current Assets | ||
Cash and cash items | $ 2,735.9 | $ 2,791.3 |
Short-term investments | 2.6 | 184.7 |
Trade receivables, net | 1,258.5 | 1,207.2 |
Inventories | 408.3 | 396.1 |
Prepaid expenses | 102.4 | 129.6 |
Other receivables and current assets | 387.5 | 373.3 |
Total Current Assets | 4,895.2 | 5,082.2 |
Investment in net assets of and advances to equity affiliates | 1,279.3 | 1,277.2 |
Plant and equipment, at cost | 21,986.3 | 21,490.2 |
Less: accumulated depreciation | 11,792.5 | 11,566.5 |
Plant and equipment, net | 10,193.8 | 9,923.7 |
Goodwill, net | 811.9 | 788.9 |
Intangible assets, net | 418.6 | 438.5 |
Noncurrent capital lease receivables | 974.7 | 1,013.3 |
Other noncurrent assets | 671 | 654.5 |
Total Noncurrent Assets | 14,349.3 | 14,096.1 |
Total Assets | 19,244.5 | 19,178.3 |
Current Liabilities | ||
Payables and accrued liabilities | 1,513.7 | 1,817.8 |
Accrued income taxes | 70.7 | 59.6 |
Short-term borrowings | 54.1 | 54.3 |
Current portion of long-term debt | 434.5 | 406.6 |
Total Current Liabilities | 2,073 | 2,338.3 |
Long-term debt | 2,933 | 2,967.4 |
Long-term debt – related party | 369.2 | 384.3 |
Other noncurrent liabilities | 1,560.5 | 1,536.9 |
Deferred income taxes | 805.4 | 775.1 |
Total Noncurrent Liabilities | 5,668.1 | 5,663.7 |
Total Liabilities | 7,741.1 | 8,002 |
Commitments and Contingencies - See Note 10 | ||
Air Products Shareholders’ Equity | ||
Common stock | 249.4 | 249.4 |
Capital in excess of par value | 1,047.7 | 1,029.3 |
Retained earnings | 13,662 | 13,409.9 |
Accumulated other comprehensive loss | (1,744.8) | (1,741.9) |
Treasury stock, at cost | (2,048.6) | (2,089.2) |
Total Air Products Shareholders’ Equity | 11,165.7 | 10,857.5 |
Noncontrolling Interests | 337.7 | 318.8 |
Total Equity | 11,503.4 | 11,176.3 |
Total Liabilities and Equity | $ 19,244.5 | $ 19,178.3 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Sep. 30, 2018 |
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 | 29,323,023 | 29,940,339 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net Income | $ 790.5 | $ 585.3 |
Less: Net income attributable to noncontrolling interests of continuing operations | 21.7 | 14.3 |
Net income attributable to Air Products | 768.8 | 571 |
Loss from discontinued operations | 0 | 1 |
Income from continuing operations attributable to Air Products | 768.8 | 572 |
Adjustments to reconcile income to cash provided by operating activities: | ||
Depreciation and amortization | 520.1 | 467.9 |
Deferred income taxes | 27.5 | (94.4) |
Tax reform repatriation | 46.2 | 310.3 |
Facility closure | 29 | 0 |
Undistributed earnings of unconsolidated affiliates | (27.2) | (1) |
Gain on sale of assets and investments | (2.3) | (2.4) |
Share-based compensation | 21.2 | 22.5 |
Noncurrent capital lease receivables | 47.6 | 47.2 |
Other adjustments | (3.5) | 44.7 |
Working capital changes that provided (used) cash, excluding effects of acquisitions: | ||
Trade receivables | (55.4) | (30.2) |
Inventories | (14.2) | 5.5 |
Other receivables | 49.6 | 11 |
Payables and accrued liabilities | (125.5) | (260.4) |
Other working capital | 3.9 | 13.3 |
Cash Provided by Operating Activities | 1,285.8 | 1,106 |
Investing Activities | ||
Additions to plant and equipment | (963.5) | (572.5) |
Acquisitions, less cash acquired | (106.3) | (271.4) |
Investment in and advances to unconsolidated affiliates | (1.4) | 0 |
Proceeds from sale of assets and investments | 3.8 | 34.4 |
Purchases of investments | (5.3) | (345.7) |
Proceeds from investments | 187.9 | 612.9 |
Other investing activities | 2.7 | 1.5 |
Cash Used for Investing Activities | (882.1) | (540.8) |
Financing Activities | ||
Long-term debt proceeds | 0 | 0.5 |
Payments on long-term debt | (2.7) | (409.2) |
Net decrease in commercial paper and short-term borrowings | (6.6) | (22.4) |
Dividends paid to shareholders | (483.1) | (415.5) |
Proceeds from stock option exercises | 45.4 | 52.7 |
Other financing activities | (12.8) | (21.7) |
Cash Used for Financing Activities | (459.8) | (815.6) |
Discontinued Operations | ||
Cash used for operating activities | 0 | (3.1) |
Cash provided by investing activities | 0 | 18.6 |
Cash provided by financing activities | 0 | 0 |
Cash Provided by Discontinued Operations | 0 | 15.5 |
Effect of Exchange Rate Changes on Cash | 0.7 | 28.2 |
Decrease in cash and cash items | (55.4) | (206.7) |
Cash and Cash items – Beginning of Year | 2,791.3 | 3,273.6 |
Cash and Cash Items – End of Period | $ 2,735.9 | $ 3,066.9 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Air Products Shareholders' Equity | Non-controlling Interests |
Beginning balance at Sep. 30, 2017 | $ 10,185.5 | $ 249.4 | $ 1,001.1 | $ 12,846.6 | $ (1,847.4) | $ (2,163.5) | $ 10,086.2 | $ 99.3 |
Stockholders' Equity [Roll Forward] | ||||||||
Net income | 585.3 | 571 | 571 | 14.3 | ||||
Other comprehensive income (loss) | 316.2 | 312.1 | 312.1 | 4.1 | ||||
Dividends on common stock | (449.1) | (449.1) | (449.1) | |||||
Dividends to noncontrolling interests | (10.6) | (10.6) | ||||||
Share-based compensation | 21.8 | 21.8 | 21.8 | |||||
Issuance of treasury shares for stock option and award plans | 40.1 | (12.3) | 52.4 | 40.1 | ||||
Other equity transactions | 4 | 0.6 | (1.9) | (1.3) | 5.3 | |||
Ending balance at Mar. 31, 2018 | 10,693.2 | 249.4 | 1,011.2 | 12,966.6 | (1,535.3) | (2,111.1) | 10,580.8 | 112.4 |
Beginning balance at Dec. 31, 2017 | 10,321.2 | 249.4 | 998.1 | 12,792.3 | (1,695.6) | (2,128.9) | 10,215.3 | 105.9 |
Stockholders' Equity [Roll Forward] | ||||||||
Net income | 423.6 | 416.4 | 416.4 | 7.2 | ||||
Other comprehensive income (loss) | 162.5 | 160.3 | 160.3 | 2.2 | ||||
Dividends on common stock | (241.1) | (241.1) | (241.1) | |||||
Dividends to noncontrolling interests | (2.9) | (2.9) | ||||||
Share-based compensation | 10.7 | 10.7 | 10.7 | |||||
Issuance of treasury shares for stock option and award plans | 20.2 | 2.4 | 17.8 | 20.2 | ||||
Other equity transactions | (1) | 0 | (1) | (1) | 0 | |||
Ending balance at Mar. 31, 2018 | 10,693.2 | 249.4 | 1,011.2 | 12,966.6 | (1,535.3) | (2,111.1) | 10,580.8 | 112.4 |
Beginning balance at Sep. 30, 2018 | 11,176.3 | 249.4 | 1,029.3 | 13,409.9 | (1,741.9) | (2,089.2) | 10,857.5 | 318.8 |
Stockholders' Equity [Roll Forward] | ||||||||
Net income | 790.5 | 768.8 | 768.8 | 21.7 | ||||
Other comprehensive income (loss) | 1.3 | (2.9) | (2.9) | 4.2 | ||||
Dividends on common stock | (497.5) | (497.5) | (497.5) | |||||
Dividends to noncontrolling interests | (7) | (7) | ||||||
Share-based compensation | 20.7 | 20.7 | 20.7 | |||||
Issuance of treasury shares for stock option and award plans | 39.7 | (0.9) | 40.6 | 39.7 | ||||
Cumulative change in accounting principle | (17.1) | (17.1) | (17.1) | |||||
Other equity transactions | (3.5) | (1.4) | (2.1) | (3.5) | ||||
Ending balance at Mar. 31, 2019 | 11,503.4 | 249.4 | 1,047.7 | 13,662 | (1,744.8) | (2,048.6) | 11,165.7 | 337.7 |
Beginning balance at Dec. 31, 2018 | 11,203.4 | 249.4 | 1,030.4 | 13,497.9 | (1,811.2) | (2,083.6) | 10,882.9 | 320.5 |
Stockholders' Equity [Roll Forward] | ||||||||
Net income | 433.5 | 421.3 | 421.3 | 12.2 | ||||
Other comprehensive income (loss) | 71.5 | 66.4 | 66.4 | 5.1 | ||||
Dividends on common stock | (255.9) | (255.9) | (255.9) | |||||
Dividends to noncontrolling interests | (0.1) | (0.1) | ||||||
Share-based compensation | 11.8 | 11.8 | 11.8 | |||||
Issuance of treasury shares for stock option and award plans | 41.7 | 6.7 | 35 | 41.7 | ||||
Other equity transactions | (2.5) | (1.2) | (1.3) | (2.5) | 0 | |||
Ending balance at Mar. 31, 2019 | $ 11,503.4 | $ 249.4 | $ 1,047.7 | $ 13,662 | $ (1,744.8) | $ (2,048.6) | $ 11,165.7 | $ 337.7 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per share (in dollars per share) | $ 1.16 | $ 1.10 | $ 2.26 | $ 2.05 |
Basis of Presentation and Major
Basis of Presentation and Major Accounting Policies | 6 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Major Accounting Policies | BASIS OF PRESENTATION AND MAJOR ACCOUNTING POLICIES The interim 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 notes to the interim consolidated financial statements, unless otherwise indicated, are on a continuing operations basis. To fully understand the basis of presentation, the consolidated financial statements and related notes included herein should be read in conjunction with the consolidated financial statements and notes thereto included in our 2018 Form 10-K. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. Refer to our 2018 Form 10-K for a description of major accounting policies. During the first six months of fiscal year 2019, these policies were impacted by the implementation of certain new accounting guidance, including the adoption of Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, and all related amendments (“the new revenue standard”). We adopted the new revenue standard as of 1 October 2018 under the modified retrospective approach. Comparative prior year information has not been restated and continues to be reported under the accounting standards in effect for those periods. Our updated revenue recognition policy, which reflects the principles under the new revenue standard, is discussed below. Other than the adoption of new accounting guidance as discussed in Note 2 , New Accounting Guidance , there have been no notable changes to our accounting policies during the first six months of fiscal year 2019 . Certain prior year information has been reclassified to conform to the fiscal year 2019 presentation. Revenue Recognition The Company recognizes revenue when or as performance obligations are satisfied, which occurs when control is transferred to the customer. We determine the transaction price of our contracts based on the amount of consideration to which we expect to be entitled to receive in exchange for the goods or services provided. Our contracts within the scope of revenue guidance do not contain payment terms that include a significant financing component. Sales returns and allowances are not a business practice in the industry. Our sale of gas contracts are either accounted for over time during the period in which we deliver or make available the agreed upon quantity of goods or at a point in time when the customer receives and obtains control of the product, which generally occurs upon delivery. We generally recognize revenue from our sale of gas contracts based on the right to invoice practical expedient. Our sale of equipment contracts are generally comprised of a single performance obligation as the individual promised goods or services contained within the contracts are integrated with or dependent upon other goods or services in the contract for a single output to the customer. Revenue from our sale of equipment contracts is generally recognized over time as we have an enforceable right to payment for performance completed to date and our performance under the contract terms does not create an asset with alternative use. We recognize these contracts using a cost incurred input method by which costs incurred to date relative to total estimated costs at completion are used to measure progress toward satisfying performance obligations. Amounts billed for shipping and handling fees are classified as sales in the consolidated income statements. Shipping and handling activities for our sale of equipment contracts may be performed after the customer obtains control of the promised goods. In these cases, we have elected to apply the practical expedient to account for shipping and handling as activities to fulfill the promise to transfer the goods. For our sale of gas contracts, control generally transfers to the customer upon delivery. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue-producing transactions are presented on a net basis and excluded from sales in the consolidated income statements. For additional information, refer to Note 3 , Revenue Recognition |
New Accounting Guidance
New Accounting Guidance | 6 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Guidance | NEW ACCOUNTING GUIDANCE Accounting Guidance Implemented in Fiscal Year 2019 Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued the new revenue standard, which is 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 adopted this guidance under the modified retrospective approach as of 1 October 2018. Upon adoption, we no longer present "Contracts in progress, less progress billings" on our consolidated balance sheets and have expanded disclosure requirements. Otherwise, adoption of this guidance did not impact our consolidated financial statements, and no adjustment was necessary to opening retained earnings. Accordingly, sales presented during the first six months of fiscal year 2019 would not change if presented under accounting standards in effect prior to 1 October 2018. For additional information, including the balance sheet impacts of no longer presenting "Contracts in progress, less progress billings" and expanded disclosures under the new revenue standard, refer to Note 3 , Revenue Recognition . Cash Flow Statement Classification In August 2016, the FASB issued guidance to reduce diversity in practice related to the classification of certain cash receipts and cash payments in the statement of cash flows. We adopted this guidance retrospectively in the first quarter of fiscal year 2019 and elected to use the cumulative earnings approach to determine the classification of distributions received from equity affiliates. As a result, we reclassified $4.1 of net activity from operating activities to investing activities for the six months ended 31 March 2018 . Intra-Entity Asset Transfers In October 2016, the FASB issued guidance on accounting for the income tax effects of intra-entity transfers of assets other than inventory. Previous guidance prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset had 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. We adopted this guidance in the first quarter of fiscal year 2019 on a modified retrospective basis through a cumulative-effect adjustment of $17.1 that decreased retained earnings as of 1 October 2018. New Accounting Guidance to be Implemented Leases In February 2016, the FASB issued guidance that 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 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 all leases, including operating leases, on the balance sheet with a right-of-use asset and corresponding liability for future payment obligations. We will adopt this guidance in fiscal year 2020 using a modified retrospective approach with the election to apply the guidance as of the adoption date instead of the earliest comparative period presented in the consolidated financial statements. We expect to elect the package of practical expedients permitted under the transition guidance, which among other things, allows us to carry forward the historical lease classification. We intend to also elect the practical expedient related to land easements, allowing us to carry forward our current accounting treatment for land easements on existing agreements. In addition, we expect to elect the hindsight practical expedient to determine the reasonably certain lease term for existing leases as of the date of adoption . We are evaluating the impact the guidance will have on our consolidated financial statements. In addition, we are implementing a new software application to administer the accounting and disclosure requirements under the new guidance. 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 evaluating the impact this guidance 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 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 evaluating the impact this guidance will have on our consolidated financial statements and expect to adopt this guidance at the beginning of fiscal year 2020. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued guidance allowing a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act. The guidance is effective in fiscal year 2020, with early adoption permitted, including adoption in an interim period. If elected, the reclassification can be applied in either the period of adoption or retrospectively to the period of the enactment of the U.S. Tax Cuts and Jobs Act (i.e., our first quarter of fiscal year 2018). We are evaluating the adoption alternatives and the impact this guidance will have on our consolidated financial statements. Fair Value Measurement Disclosures In August 2018, the FASB issued guidance that modifies the disclosure requirements for fair value measurements. The guidance is effective in fiscal year 2021, with early adoption permitted. Certain amendments must be applied prospectively while other amendments must be applied retrospectively. We are evaluating the impact this guidance will have on the disclosures in the notes to our consolidated financial statements. Retirement Benefit Disclosures In August 2018, the FASB issued guidance that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans. The guidance is effective in fiscal year 2021, with early adoption permitted, and must be applied on a retrospective basis. We are evaluating the impact this guidance will have on the disclosures in the notes to our consolidated financial statements. Cloud Computing Implementation Costs In August 2018, the FASB issued guidance that aligns the capitalization requirements for implementation costs incurred in a hosting arrangement that is a service contract with the existing capitalization requirements for implementation costs incurred to develop or obtain internal-use software. The guidance is effective in fiscal year 2021, with early adoption permitted, and may be applied either prospectively or retrospectively. We are evaluating the impact this guidance will have on our consolidated financial statements. Related Party Guidance for Variable Interest Entities |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Nature of Goods and Services The principal activities from which the Company generates its sales from its contracts with customers, separated between our regional industrial gases businesses and industrial gases equipment businesses, are described below with their respective revenue recognition policies. For an overall summary of these policies and discussion on payment terms and presentation, refer to Note 1 , Basis of Presentation and Major Accounting Policies . Industrial Gases – Regional Our regional industrial gases businesses produce and sell atmospheric gases such as oxygen, nitrogen, and argon (primarily recovered by the cryogenic distillation of air) and process gases such as hydrogen, helium, carbon dioxide, carbon monoxide, syngas, and specialty gases. We distribute gases to our sale of gas customers through different supply modes depending on various factors including the customer's volume requirements and location. Our supply modes are as follows: On-Site Gases—Supply mode associated with customers who require large volumes of gases and have relatively constant demand. Gases are produced and supplied by large facilities we construct on or near the customers’ facilities or by pipeline systems from centrally located production facilities. These sale of gas contracts generally have 15- to 20- year terms. The Company also delivers smaller quantities of product through small on-site plants (cryogenic or non-cryogenic generators), typically via a 10- to 15- year sale of gas contract. The contracts within this supply mode generally contain fixed monthly charges and/or minimum purchase requirements with price escalation provisions that are generally based on external indices. Revenue associated with this supply mode is generally recognized over time during the period in which we deliver or make available the agreed upon quantity of goods. Merchant Gases—Supply mode associated with liquid bulk and packaged gases customers. Liquid bulk customers receive delivery of product in liquid or gaseous form by tanker or tube trailer. The product is stored, usually in its liquid state, in equipment typically designed and installed by the Company at the customer’s site for vaporizing into a gaseous state as needed. Packaged gases customers receive small quantities of product delivered in either cylinders or dewars. Both liquid bulk and packaged gases sales do not contain minimum purchase requirements as they are governed by contracts and/or purchase orders based on the customer's requirements. These contracts contain stated terms that are generally 5 years or less. Performance obligations associated with this supply mode are satisfied at a point in time when the customer receives and obtains control of the product, which generally occurs upon delivery. The timing of revenue recognition for our regional industrial gases businesses is generally consistent with our right to invoice the customer. Variable components of consideration that may not be resolved within the month, such as the ability to earn an annual bonus or incur a penalty, are more relevant to on-site contracts and are considered constrained as they can be impacted by a single significant event such as a plant outage, which could occur at the end of a contract period. We consider contract modifications on an individual basis to determine appropriate accounting treatment. However, contract modifications are generally accounted for prospectively as they relate to distinct goods or services associated with future periods of performance. We mitigate energy and natural gas price risk contractually through pricing formulas, surcharges, and cost pass-through arrangements. Industrial Gases – Equipment The Company designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction (LNG), and liquid helium and liquid hydrogen transport and storage. The Industrial Gases – Global and the Corporate and other segments serve our sale of equipment customers. Our sale of equipment contracts are generally comprised of a single performance obligation as the individual promised goods or services contained within the contracts are integrated with or dependent upon other goods or services in the contract for a single output to the customer. Revenue from our sale of equipment contracts is generally recognized over time as we have an enforceable right to payment for performance completed to date and our performance under the contract terms does not create an asset with alternative use. Otherwise, sale of equipment contracts are satisfied at the point in time the customer obtains control of the equipment, which is generally determined based on the shipping terms of the contract. For contracts recognized over time, we primarily recognize revenue using a cost incurred input method by which costs incurred to date relative to total estimated costs at completion are used to measure progress toward satisfying performance obligations. Costs incurred include material, labor, and overhead costs and represent work contributing and proportionate to the transfer of control to the customer. Since our contracts are generally comprised of a single performance obligation, contract modifications are typically accounted for as part of the existing contract and are recognized as a cumulative adjustment for the inception-to-date effect of such change. Disaggregation of Revenue The table below presents our consolidated sales disaggregated by each of the supply modes described above for each of our reporting segments. We believe this presentation best depicts the nature, timing, type of customer, and contract terms for our sales. Industrial Industrial Industrial Industrial Corporate Total % Three Months Ended 31 March 2019 On-site $580.9 $178.6 $386.0 $— $— $1,145.5 52 % Merchant 410.8 315.8 239.4 — — 966.0 44 % Sale of Equipment — — — 53.8 22.4 76.2 4 % Total $991.7 $494.4 $625.4 $53.8 $22.4 $2,187.7 100 % Industrial Industrial Industrial Industrial Corporate Total % Six Months Ended 31 March 2019 On-site $1,176.9 $400.8 $767.0 $— $— $2,344.7 53 % Merchant 804.0 617.8 485.2 — — 1,907.0 43 % Sale of Equipment — — — 122.0 38.0 160.0 4 % Total $1,980.9 $1,018.6 $1,252.2 $122.0 $38.0 $4,411.7 100 % Approximately 4% of total consolidated sales for the three and six months ended 31 March 2019 was associated with lease revenue relating to our on-site supply mode and therefore not within the scope of the new revenue standard. Remaining Performance Obligations As of 31 March 2019 , the transaction price allocated to remaining performance obligations is estimated to be approximately $14 billion . This amount includes fixed-charge contract provisions associated with our on-site and sale of equipment supply modes. We estimate that approximately half of this revenue will be recognized over approximately the next five years and the balance thereafter. Expected revenue associated with new on-site plants that are not yet onstream is excluded from this amount. In addition, this amount excludes consideration associated with contracts determined to be leases, those with an expected duration of less than one year, and variable consideration for which we recognize revenue at the amount to which we have the right to invoice, including pass-through costs related to energy and natural gas. In the future, actual amounts will differ due to events outside of our control, including but not limited to inflationary price escalations, currency exchange rates, and terminated or renewed contracts. Contract Balances Upon adoption of the new revenue standard, we no longer present "Contracts in progress, less progress billings" on our consolidated balance sheets. Our sale of equipment contracts generally contain a single performance obligation which, as discussed below, results in presentation of either a contract asset or contract liability. Contracts in progress, less progress billings as of 30 September 2018 has been reclassified to " Other receivables and current assets " on our consolidated balance sheets within this quarterly report. The table below summarizes the balance sheet impacts of no longer presenting "Contracts in progress, less progress billings" upon adoption of the new revenue standard on 1 October 2018: 30 September 2018 New Revenue Standard Adjustments 1 October 2018 Assets Current Assets Cash and cash items $2,791.3 $— $2,791.3 Short-term investments 184.7 — 184.7 Trade receivables, net 1,207.2 — 1,207.2 Inventories 396.1 — 396.1 Contracts in progress, less progress billings 77.5 (77.5 ) — Prepaid expenses 129.6 — 129.6 Other receivables and current assets 295.8 103.7 399.5 Total Current Assets 5,082.2 26.2 5,108.4 Total Noncurrent Assets 14,096.1 — 14,096.1 Total Assets $19,178.3 $26.2 $19,204.5 Liabilities and Equity Current Liabilities Payables and accrued liabilities $1,817.8 $26.2 $1,844.0 Accrued income taxes 59.6 — 59.6 Short-term borrowings 54.3 — 54.3 Current portion of long-term debt 406.6 — 406.6 Total Current Liabilities 2,338.3 26.2 2,364.5 Total Noncurrent Liabilities 5,663.7 — 5,663.7 Total Liabilities 8,002.0 26.2 8,028.2 Total Equity 11,176.3 — 11,176.3 Total Liabilities and Equity $19,178.3 $26.2 $19,204.5 The table below details balances arising from contracts with customers as of our most recent balance sheet date and our date of adoption: 31 March 2019 1 October 2018 Assets Contract assets – current $34.6 $53.0 Contract fulfillment costs – current 65.9 50.7 Liabilities Contract liabilities – current 194.2 174.5 Contract liabilities – noncurrent 50.2 53.5 Contract assets and liabilities result from differences in timing of revenue recognition and customer invoicing. These balances are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period. Contract assets primarily relate to our sale of equipment contracts for which revenue is recognized over time. These balances represent unbilled revenue, which occurs when revenue recognized under the measure of progress exceeds the amount invoiced to our customers. Our ability to invoice the customer for contract asset balances is not only based on the passage of time, but also the achievement of certain contractual milestones. Our contract assets are included within "Other receivables and current assets" on the consolidated balance sheets. Contract fulfillment costs primarily include deferred costs related to sale of equipment projects that cannot be inventoried and for which we expect to recognize revenue upon transfer of control at project completion or costs related to fulfilling a specific anticipated contract. Contract fulfillment costs are generally classified as current and are included within "Other receivables and current assets" on the consolidated balance sheets. Costs to obtain a contract, or contract acquisition costs, are capitalized only after we have established a contract with the customer. We elected to apply the practical expedient to expense these costs as they are incurred if the amortization period of the asset that would have otherwise been recognized is one year or less. Our contract acquisition costs for the three and six months ended 31 March 2019 were not material. Contract liabilities include advance payments or right to consideration prior to performance under the contract. Contract liabilities are recognized as revenue when or as we perform under the contract. The increase in the contract liability balance during the first half of fiscal year 2019 primarily related to achievement of contractual milestones on sale of equipment projects. During the six months ended 31 March 2019 , we recognized revenue of approximately $75 that was included within our contract liabilities as of 30 September 2018. The current and noncurrent portions of our contract liabilities are included within "Payables and accrued liabilities" and "Other noncurrent liabilities" on our consolidated balance sheets, respectively. Advanced payments from our customers do not represent a significant financing component as these payments are intended for purposes other than financing, such as to meet working capital demands or to protect us from our customer failing to meet its obligations under the terms of the contract. Changes in contract asset and liability balances during the six months ended 31 March 2019 |
Acquisitions
Acquisitions | 6 Months Ended |
Mar. 31, 2019 | |
Acquisitions [Abstract] | |
Acquisitions | ACQUISITIONS Fiscal Year 2019 Acquisition During the second quarter of fiscal year 2019, we completed the acquisition of ACP Europe SA, the largest independent carbon dioxide business in Continental Europe, for an aggregate purchase price, net of cash acquired, of $106.3 . We expect this acquisition to enable us to better serve existing merchant customers and pursue new industrial gas growth opportunities across additional European geographies. The results of this business are consolidated within our Industrial Gases – EMEA segment and did not materially impact our consolidated income statements for the periods presented. The acquisition was accounted for as a business combination and resulted in the recognition of $74.6 of plant and equipment and $38.0 of goodwill, partially offset by net liabilities acquired. The goodwill recognized on the transaction, none of which is deductible for tax purposes, was recorded in the Industrial Gases – EMEA segment and is attributable to expected growth and cost synergies. The acquired assets and liabilities were recorded at their estimated fair values, which were calculated based on a preliminary purchase price allocation prepared by management. We may record adjustments to these assets and liabilities during the preliminary purchase price allocation period, which could be up to one year from the acquisition date. Fiscal Year 2018 Acquisitions During the first six months of fiscal year 2018, we completed five acquisitions that were accounted for as business combinations. These acquisitions had an aggregate purchase price, net of cash acquired, of $281.0 |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The components of inventories are as follows: 31 March 30 September 2019 2018 Finished goods $140.4 $125.4 Work in process 23.6 21.2 Raw materials, supplies and other 244.3 249.5 Inventories $408.3 $396.1 |
Goodwill
Goodwill | 6 Months Ended |
Mar. 31, 2019 | |
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 2019 are as follows: Industrial Gases– Americas Industrial Gases– EMEA Industrial Gases– Asia Industrial Gases– Global Corporate and other Total Goodwill, net at 30 September 2018 $162.1 $424.4 $171.9 $20.1 $10.4 $788.9 Acquisitions — 38.0 — — — 38.0 Currency translation and other (2.0 ) (13.4 ) .3 (.2 ) .3 (15.0 ) Goodwill, net at 31 March 2019 $160.1 $449.0 $172.2 $19.9 $10.7 $811.9 31 March 30 September 2019 2018 Goodwill, gross $1,203.8 $1,194.7 Accumulated impairment losses (A) (391.9 ) (405.8 ) Goodwill, net $811.9 $788.9 (A) Accumulated impairment losses are attributable to our Latin America reporting unit (LASA) within the Industrial Gases – Americas segment and include the impacts of currency translation. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Mar. 31, 2019 | |
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 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 2019 is 2.6 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. We also utilize forward exchange contracts that are not designated as hedges. These contracts are used to economically hedge foreign currency-denominated monetary assets and liabilities, primarily working capital. The primary objective of these forward exchange contracts is to protect the value of foreign currency-denominated monetary assets and liabilities from the effects of volatility in foreign exchange rates that might occur prior to their receipt or settlement. This portfolio of forward exchange contracts consists of 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 2019 30 September 2018 US$ Notional Years Average Maturity US$ Notional Years Average Maturity Forward Exchange Contracts: Cash flow hedges $2,773.8 0.4 $2,489.1 0.4 Net investment hedges 472.4 1.2 457.5 1.7 Not designated 826.7 1.1 1,736.1 0.8 Total Forward Exchange Contracts $4,072.9 0.6 $4,682.7 0.7 The notional value of forward exchange contracts not designated decreased from the prior year as a result of maturities. We also 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 was €910.4 million ( $1,021.3 ) at 31 March 2019 and €908.8 million ( $1,054.6 ) at 30 September 2018 . The designated foreign currency-denominated debt is presented within "Long-term debt" on the consolidated balance sheets. Debt Portfolio Management It is our policy to identify, on a continuing basis, the need for debt capital and to evaluate the financial risks inherent in funding the Company with debt capital. Reflecting the result of this ongoing review, our debt portfolio and hedging program are managed with the 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). As of 31 March 2019 , 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 Chinese Renminbi, U.S. Dollars and Indian Rupee, and U.S. Dollars and Chilean Pesos. The following table summarizes our outstanding interest rate management contracts and cross currency interest rate swaps: 31 March 2019 30 September 2018 US$ Notional Average Pay % Average Receive % Years Average Maturity US$ Notional Average Pay % Average Receive % Years Average Maturity Interest rate swaps (fair value hedge) $600.0 LIBOR 2.60 % 1.1 $600.0 LIBOR 2.60 % 1.6 Cross currency interest rate swaps (net investment hedge) $263.6 4.61 % 3.12 % 3.2 $201.7 4.42 % 2.97 % 3.1 Cross currency interest rate swaps (cash flow hedge) $1,024.0 5.03 % 2.99 % 2.2 $1,052.7 4.99 % 2.89 % 2.3 Cross currency interest rate swaps (not designated) $12.6 2.55 % 3.72 % 5.0 $80.2 4.88 % 3.43 % 3.9 The table below summarizes the fair value and balance sheet location of our outstanding derivatives: Balance Sheet Location 31 March 2019 30 September 2018 Balance Sheet Location 31 March 2019 30 September 2018 Derivatives Designated as Hedging Instruments: Forward exchange contracts Other receivables $32.8 $24.9 Accrued liabilities $39.6 $37.0 Interest rate management contracts Other receivables 16.1 24.3 Accrued liabilities .9 2.3 Forward exchange contracts Other noncurrent assets 29.2 19.8 Other noncurrent liabilities 1.1 4.6 Interest rate management contracts Other noncurrent assets 26.9 48.7 Other noncurrent liabilities 14.8 11.6 Total Derivatives Designated as Hedging Instruments $105.0 $117.7 $56.4 $55.5 Derivatives Not Designated as Hedging Instruments: Forward exchange contracts Other receivables $8.2 $7.9 Accrued liabilities $13.2 $14.9 Interest rate management contracts Other receivables — 4.0 Accrued liabilities — — Forward exchange contracts Other noncurrent assets 23.3 16.2 Other noncurrent liabilities 26.3 23.7 Interest rate management contracts Other noncurrent assets .1 .3 Other noncurrent liabilities — — Total Derivatives Not Designated as Hedging Instruments $31.6 $28.4 $39.5 $38.6 Total Derivatives $136.6 $146.1 $95.9 $94.1 Refer to Note 8 , 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 2019 2018 2019 2018 2019 2018 2019 2018 Cash Flow Hedges, net of tax: Net gain (loss) recognized in OCI (effective portion) ($19.8 ) $31.9 $— $— ($15.6 ) ($14.1 ) ($35.4 ) $17.8 Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) (.1 ) 4.0 — — — — (.1 ) 4.0 Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) 18.8 (29.3 ) — — 14.4 15.8 33.2 (13.5 ) Net (gain) loss reclassified from OCI to interest expense (effective portion) 3.2 1.6 — — .6 .7 3.8 2.3 Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) — (.3 ) — — — — — (.3 ) Fair Value Hedges: Net gain (loss) recognized in interest expense (B) $— $— $— $— $— ($3.6 ) $— ($3.6 ) Net Investment Hedges, net of tax: Net gain (loss) recognized in OCI $6.2 ($15.2 ) $17.2 ($22.2 ) ($2.7 ) ($23.3 ) $20.7 ($60.7 ) Derivatives Not Designated as Hedging Instruments: Net gain (loss) recognized in other income (expense), net (C) ($2.2 ) $1.6 $— $— ($1.3 ) ($2.2 ) ($3.5 ) ($.6 ) Six Months Ended 31 March Forward Exchange Contracts Foreign Currency Debt Other (A) Total 2019 2018 2019 2018 2019 2018 2019 2018 Cash Flow Hedges, net of tax: Net gain (loss) recognized in OCI (effective portion) ($15.8 ) $39.4 $— $— ($29.9 ) ($31.1 ) ($45.7 ) $8.3 Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) .4 5.0 — — — — .4 5.0 Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) 9.5 (46.9 ) — — 16.2 32.2 25.7 (14.7 ) Net (gain) loss reclassified from OCI to interest expense (effective portion) 6.3 2.2 — — 1.3 1.3 7.6 3.5 Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) .1 (.5 ) — — — — .1 (.5 ) Fair Value Hedges: Net gain (loss) recognized in interest expense (B) $— $— $— $— $2.6 ($6.8 ) $2.6 ($6.8 ) Net Investment Hedges, net of tax: Net gain (loss) recognized in OCI $18.0 ($22.7 ) $26.8 ($39.5 ) ($2.1 ) ($34.5 ) $42.7 ($96.7 ) Derivatives Not Designated as Hedging Instruments: Net gain (loss) recognized in other income (expense), net (C) ($2.3 ) $.1 $— $— ($.5 ) ($3.5 ) ($2.8 ) ($3.4 ) (A) 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 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 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 unrealized gains and losses related to cash flow hedges as of 31 March 2019 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 $23.7 and $33.4 as of 31 March 2019 and 30 September 2018 , respectively. 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 $83.3 and $97.6 as of 31 March 2019 and 30 September 2018 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as an exit price, or 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 2019 and 30 September 2018 , 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 consider 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 that 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 7 , Financial Instruments , for a description of derivative instruments, including details related to the balance sheet line classifications. Long-term Debt, Including Related Party The fair value of our debt is based on estimates using standard pricing models that consider 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 2019 30 September 2018 Carrying Value Fair Value Carrying Value Fair Value Assets Derivatives Forward exchange contracts $93.5 $93.5 $68.8 $68.8 Interest rate management contracts 43.1 43.1 77.3 77.3 Liabilities Derivatives Forward exchange contracts $80.2 $80.2 $80.2 $80.2 Interest rate management contracts 15.7 15.7 13.9 13.9 Long-term debt, including current portion and related party 3,736.7 3,798.1 3,758.3 3,788.2 The carrying amounts reported on the consolidated balance sheets 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 on the consolidated balance sheets that are measured at fair value on a recurring basis: 31 March 2019 30 September 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets at Fair Value Derivatives Forward exchange contracts $93.5 $— $93.5 $— $68.8 $— $68.8 $— Interest rate management contracts 43.1 — 43.1 — 77.3 — 77.3 — Total Assets at Fair Value $136.6 $— $136.6 $— $146.1 $— $146.1 $— Liabilities at Fair Value Derivatives Forward exchange contracts $80.2 $— $80.2 $— $80.2 $— $80.2 $— Interest rate management contracts 15.7 — 15.7 — 13.9 — 13.9 — Total Liabilities at Fair Value $95.9 $— $95.9 $— $94.1 $— $94.1 $— |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | RETIREMENT BENEFITS The components of net periodic benefit cost for our defined benefit pension plans for the three and six months ended 31 March 2019 and 2018 were as follows: Pension Benefits 2019 2018 Three Months Ended 31 March U.S. International U.S. International Service cost $5.3 $4.9 $6.4 $6.6 Interest cost 28.4 9.0 26.8 9.6 Expected return on plan assets (43.1 ) (19.2 ) (50.4 ) (21.1 ) Prior service cost amortization .3 .1 .4 — Actuarial loss amortization 16.5 2.8 22.2 10.3 Settlements 5.0 — 1.5 — Special termination benefits — — .4 — Other — .1 — .1 Net Periodic Benefit Cost (Total) $12.4 ($2.3 ) $7.3 $5.5 Pension Benefits 2019 2018 Six Months Ended 31 March U.S. International U.S. International Service cost $10.7 $9.8 $12.8 $12.9 Interest cost 56.8 18.0 53.5 18.8 Expected return on plan assets (86.2 ) (38.1 ) (100.8 ) (41.3 ) Prior service cost amortization .6 .1 .8 — Actuarial loss amortization 32.6 5.6 43.9 20.3 Settlements 5.8 .2 3.3 — Special termination benefits .7 — .4 — Other — .4 — .6 Net Periodic Benefit Cost (Total) $21.0 ($4.0 ) $13.9 $11.3 Our service costs are primarily included within "Cost of sales" and "Selling and administrative" on our consolidated income statements. The amount of service costs capitalized in fiscal year s 2019 and 2018 were not material. The non-service related costs, including pension settlement losses, are presented outside operating income within "Other non-operating income (expense), net." For the six months ended 31 March 2019 and 2018 , our cash contributions to funded pension plans and benefit payments under unfunded pension plans were $25.5 and $35.9 , respectively. Total contributions for fiscal year 2019 are expected to be approximately $45 to $65 . During fiscal year 2018 , total contributions were $68.3 . Pension Settlement Loss Certain of our pension plans provide for a lump sum benefit payment option at the time of retirement, or for corporate officers, six months after their retirement date. A participant’s vested benefit is considered settled upon cash payment of the lump sum. We recognize pension settlement losses when cash payments exceed the sum of the service and interest cost components of net periodic benefit cost of the plan for the fiscal year. During the second quarter of fiscal year 2019, we recognized a pension settlement loss of $5.0 to accelerate recognition of a portion of actuarial losses deferred in accumulated other comprehensive loss associated with the U.S. Supplementary Pension Plan. The loss is reflected on our consolidated income statements within “Other non-operating income (expense), net.” U.K. Lloyds Pensions Equalization Ruling On 26 October 2018, the United Kingdom High Court issued a ruling related to the equalization of pension plan participants’ benefits for the gender effects of Guaranteed Minimum Pensions. As a result of this ruling, we estimated the impact of retroactively increasing benefits in our U.K. plan in accordance with the High Court ruling. We treated the additional benefits as a prior service cost which resulted in an increase to our projected benefit obligation and accumulated other comprehensive loss of $4.7 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2019 | |
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 $46 at 31 March 2019 ) 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 $46 at 31 March 2019 ) 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 32 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 2019 and 30 September 2018 included an accrual of $72.4 and $76.8 , 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 $72 to a reasonably possible upper exposure of $86 as of 31 March 2019 . 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 2019 , $25.0 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 before-tax expense of $42 in fiscal 2006 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 2019 , $15.2 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. The SCDHEC issued its final approval to the site-wide feasibility study on 13 June 2017 and the Record of Decision for the site on 27 June 2018. Field work has started to support the remedial design, and in the fourth quarter of fiscal year 2018, we signed a Consent Agreement Amendment memorializing our obligations to complete the cleanup of the site. We estimate that source area remediation and groundwater recovery and treatment will continue through 2029. Thereafter, we expect this site to go into a state of monitored natural attenuation through 2047. We recognized a before-tax expense of $24 in 2008 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 2019 , $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 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Mar. 31, 2019 | |
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 2019 , 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 2019 , there were 4,455,475 shares available for future grant under our Long-Term Incentive Plan (LTIP), which is shareholder approved. Share-based compensation cost recognized on the consolidated income statements is summarized below: Three Months Ended Six Months Ended 31 March 31 March 2019 2018 2019 2018 Before-tax share-based compensation cost $11.9 $10.7 $21.2 $22.5 Income tax benefit (2.8 ) (2.1 ) (5.0 ) (5.3 ) After-tax share-based compensation cost $9.1 $8.6 $16.2 $17.2 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 years 2019 and 2018 was not material. Deferred Stock Units During the six months ended 31 March 2019 , we granted 114,929 market-based deferred stock units. The market-based deferred stock units are earned at the end of the performance period beginning 1 October 2018 and ending 30 September 2021, 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 $229.61 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 17.5 % Risk-free interest rate 2.8 % Expected dividend yield 2.6 % In addition, during the six months ended 31 March 2019 , we granted 160,539 time-based deferred stock units at a weighted average grant-date fair value of $166.27 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Mar. 31, 2019 | |
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 2019 : Derivatives qualifying as hedges Foreign currency translation adjustments Pension and postretirement benefits Total Balance at 31 December 2018 ($50.9 ) ($1,077.1 ) ($683.2 ) ($1,811.2 ) Other comprehensive income (loss) before reclassifications (35.4 ) 51.3 — 15.9 Amounts reclassified from AOCL 36.9 — 18.7 55.6 Net current period other comprehensive income 1.5 51.3 18.7 71.5 Amount attributable to noncontrolling interests .1 5.0 — 5.1 Balance at 31 March 2019 ($49.5 ) ($1,030.8 ) ($664.5 ) ($1,744.8 ) Derivatives qualifying as hedges Foreign currency translation adjustments Pension and postretirement benefits Total Balance at 30 September 2018 ($37.6 ) ($1,009.8 ) ($694.5 ) ($1,741.9 ) Other comprehensive loss before reclassifications (45.7 ) (16.8 ) (3.9 ) (66.4 ) Amounts reclassified from AOCL 33.8 — 33.9 67.7 Net current period other comprehensive income (loss) (11.9 ) (16.8 ) 30.0 1.3 Amount attributable to noncontrolling interests — 4.2 — 4.2 Balance at 31 March 2019 ($49.5 ) ($1,030.8 ) ($664.5 ) ($1,744.8 ) The table below summarizes the reclassifications out of AOCL and the affected line item on the consolidated income statements: Three Months Ended Six Months Ended 31 March 31 March 2019 2018 2019 2018 (Gain) Loss on Cash Flow Hedges, net of tax Sales/Cost of sales ($.1 ) $4.0 $.4 $5.0 Other income/expense, net 33.2 (13.8 ) 25.8 (15.2 ) Interest expense 3.8 2.3 7.6 3.5 Total (Gain) Loss on Cash Flow Hedges, net of tax $36.9 ($7.5 ) $33.8 ($6.7 ) Currency Translation Adjustment (A) $— $— $— $3.1 Pension and Postretirement Benefits, net of tax (B) $18.7 $26.6 $33.9 $49.5 (A) The fiscal year 2018 impact is reflected in "Cost of sales" on the consolidated income statements and relates to an equipment sale resulting from the termination of a contract in the Industrial Gases – Asia segment during the first quarter. (B) The components of net periodic benefit cost reclassified out of AOCL 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 9 , Retirement Benefits |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (EPS): Three Months Ended Six Months Ended 31 March 31 March 2019 2018 2019 2018 Numerator Income from continuing operations $421.3 $416.4 $768.8 $572.0 Loss from discontinued operations — — — (1.0 ) Net Income Attributable to Air Products $421.3 $416.4 $768.8 $571.0 Denominator (in millions) Weighted average common shares — Basic 220.2 219.4 220.0 219.2 Effect of dilutive securities Employee stock option and other award plans 1.2 1.4 1.2 1.5 Weighted average common shares — Diluted 221.4 220.8 221.2 220.7 Basic EPS Attributable to Air Products Income from continuing operations $1.91 $1.90 $3.49 $2.61 Loss from discontinued operations — — — — Net Income Attributable to Air Products $1.91 $1.90 $3.49 $2.61 Diluted EPS Attributable to Air Products Income from continuing operations $1.90 $1.89 $3.48 $2.59 Loss from discontinued operations — — — — Net Income Attributable to Air Products $1.90 $1.89 $3.48 $2.59 For the three and six months ended 31 March 2019 , there were no antidilutive outstanding share-based awards. Outstanding share-based awards of .1 million were antidilutive and therefore excluded from the computation of diluted EPS for the three and six months ended 31 March 2018 |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES U.S. Tax Cuts and Jobs Act On 22 December 2017, the United States enacted the U.S. Tax Cuts and Jobs Act (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. Our consolidated income statements for the six months ended 31 March 2019 reflect a discrete net income tax expense of $40.6 recorded during the first quarter of fiscal year 2019 to adjust our estimates of the impacts of the Tax Act. The net expense includes the reversal of the $56.2 benefit recorded in the fourth quarter of fiscal year 2018 related to the U.S. taxation of deemed foreign dividends. We recorded this reversal based on our intent to follow proposed regulations that were issued during the first quarter of 2019. Additionally, we recorded a benefit of $15.6 to reduce the total expected costs of the deemed repatriation tax. For the six months ended 31 March 2018 , our consolidated income statements reflect the impacts recorded during the first quarter of fiscal year 2018, which include a discrete net income tax expense of $206.5 for our initial provisional estimates of the impacts of the Tax Act and a reduction to equity affiliates' income of $32.5 for future costs of repatriation related to the Tax Act that will be borne by an equity affiliate. Effective 31 December 2018, our accounting for the provisions of the Tax Act is no longer considered provisional. However, further adjustments could be made to this calculation as a result of future guidance, adjustments to tax return filing positions, or tax examinations of the years impacted by the calculation. Tax Restructuring Benefit In the second quarter of fiscal year 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. Effective Tax Rate Our effective tax rate was 19.9% and 23.3% for the three and six months ended 31 March 2019 , respectively. Our effective tax rate was 11.7% and 37.2% for the three and six months ended 31 March 2018 , respectively. The current and prior year effective tax rates were primarily impacted by the Tax Act and restructuring benefit discussed above. Cash Paid for Taxes (Net of Cash Refunds) Income tax payments, net of refunds, were $165.6 and $153.7 for the six months ended 31 March 2019 and 2018 |
Supplemental Information
Supplemental Information | 6 Months Ended |
Mar. 31, 2019 | |
Supplemental Information [Abstract] | |
Supplemental Information | SUPPLEMENTAL INFORMATION Facility Closure In December 2018, one of our customers was subject to a government enforced shutdown due to environmental reasons. As a result, we recognized a charge of $29.0 during the first quarter of fiscal year 2019 primarily related to the write-off of onsite assets. This charge is reflected as “Facility closure” on our consolidated income statements for the six months ended 31 March 2019 and has been excluded from segment results. Annual sales and operating income associated with this customer prior to the facility closure were not material to the Industrial Gases – Asia segment. We do not expect to recognize additional charges related to this shutdown. Related Party Transactions We have related party sales to some of our equity affiliates and joint venture partners. Sales to related parties totaled approximately $80 and $165 for the three and six months ended 31 March 2019 , respectively, and $70 and $175 for the three and six months ended 31 March 2018 , respectively. Agreements with related parties include terms that are consistent with those that we believe would have been negotiated at an arm’s length with an independent party. During fiscal year 2018, we completed the formation of Air Products Lu An (Changzhi) Co., Ltd. ("the JV"), a 60% -owned joint venture with Lu'An Clean Energy Company ("Lu'An"), and the JV acquired gasification and syngas clean-up assets from Lu'An. In connection with the acquisition, Lu'An made a loan to the JV of 2.6 billion RMB and we established a liability of 2.3 billion RMB for cash payments expected to be made to or on behalf of Lu'An in 2019. Long-term debt payable to Lu'An of $369.2 and $384.3 as of 31 March 2019 and 30 September 2018 , respectively, is presented on the consolidated balance sheets as " Long-term debt – related party ." As of 31 March 2019 , $24.1 of the loan is reflected within "Current portion of long-term debt." The expected remaining cash payments are presented within "Payables and accrued liabilities" and were .6 billion RMB ( $82.7 ) as of 31 March 2019 . As of 30 September 2018 , this liability was 2.2 billion RMB ( $330.0 |
Business Segment Information
Business Segment Information | 6 Months Ended |
Mar. 31, 2019 | |
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 Industrial Gases – EMEA and Corporate and other segments, each reporting segment meets the definition of an operating segment and does not include the aggregation of multiple operating segments. Our Industrial Gases – EMEA and Corporate and other segments each include the aggregation of two operating segments that meet the aggregation criteria under GAAP. 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 2019 Sales $991.7 $494.4 $625.4 $53.8 $22.4 $2,187.7 Operating income (loss) 255.6 122.5 199.7 (12.2 ) (49.1 ) 516.5 Depreciation and amortization 124.9 46.3 84.9 2.0 4.0 262.1 Equity affiliates' income 17.8 13.3 13.8 1.3 — 46.2 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 Industrial Gases – Americas Industrial Gases – EMEA Industrial Gases – Asia Industrial Gases – Global Corporate and other Segment Total Six Months Ended 31 March 2019 Sales $1,980.9 $1,018.6 $1,252.2 $122.0 $38.0 $4,411.7 Operating income (loss) 474.8 228.1 401.5 (8.3 ) (95.6 ) 1,000.5 Depreciation and amortization 250.5 92.6 164.8 4.1 8.1 520.1 Equity affiliates' income 40.4 27.0 30.0 1.7 — 99.1 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 Total Assets 31 March 2019 $5,885.6 $3,333.7 $6,167.0 $257.8 $3,600.4 $19,244.5 30 September 2018 5,904.0 3,280.4 5,899.5 240.1 3,854.3 19,178.3 The sales information noted above relates to external customers only. All intersegment sales are eliminated in consolidation. These sales are generally transacted at market pricing. We generally do not have intersegment sales from our regional industrial gases businesses. 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 cost incurred input method are recognized as a cumulative adjustment for the inception-to-date effect of such change. For the six months ended 31 March 2019 and 2018 , changes in estimates favorably impacted operating income by approximately $10 . 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 2019 2018 2019 2018 Segment total $516.5 $455.4 $1,000.5 $916.1 Facility closure — — (29.0 ) — Consolidated Total $516.5 $455.4 $971.5 $916.1 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 2019 2018 2019 2018 Segment total $46.2 $43.7 $99.1 $90.0 Tax reform repatriation - equity method investment — — — (32.5 ) Consolidated Total $46.2 $43.7 $99.1 $57.5 |
Basis of Presentation and Maj_2
Basis of Presentation and Major Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when or as performance obligations are satisfied, which occurs when control is transferred to the customer. We determine the transaction price of our contracts based on the amount of consideration to which we expect to be entitled to receive in exchange for the goods or services provided. Our contracts within the scope of revenue guidance do not contain payment terms that include a significant financing component. Sales returns and allowances are not a business practice in the industry. Our sale of gas contracts are either accounted for over time during the period in which we deliver or make available the agreed upon quantity of goods or at a point in time when the customer receives and obtains control of the product, which generally occurs upon delivery. We generally recognize revenue from our sale of gas contracts based on the right to invoice practical expedient. Our sale of equipment contracts are generally comprised of a single performance obligation as the individual promised goods or services contained within the contracts are integrated with or dependent upon other goods or services in the contract for a single output to the customer. Revenue from our sale of equipment contracts is generally recognized over time as we have an enforceable right to payment for performance completed to date and our performance under the contract terms does not create an asset with alternative use. We recognize these contracts using a cost incurred input method by which costs incurred to date relative to total estimated costs at completion are used to measure progress toward satisfying performance obligations. Amounts billed for shipping and handling fees are classified as sales in the consolidated income statements. Shipping and handling activities for our sale of equipment contracts may be performed after the customer obtains control of the promised goods. In these cases, we have elected to apply the practical expedient to account for shipping and handling as activities to fulfill the promise to transfer the goods. For our sale of gas contracts, control generally transfers to the customer upon delivery. Amounts billed for sales and use taxes, value-added taxes, and certain excise and other specific transactional taxes imposed on revenue-producing transactions are presented on a net basis and excluded from sales in the consolidated income statements. For additional information, refer to Note 3 , Revenue Recognition |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The table below presents our consolidated sales disaggregated by each of the supply modes described above for each of our reporting segments. We believe this presentation best depicts the nature, timing, type of customer, and contract terms for our sales. Industrial Industrial Industrial Industrial Corporate Total % Three Months Ended 31 March 2019 On-site $580.9 $178.6 $386.0 $— $— $1,145.5 52 % Merchant 410.8 315.8 239.4 — — 966.0 44 % Sale of Equipment — — — 53.8 22.4 76.2 4 % Total $991.7 $494.4 $625.4 $53.8 $22.4 $2,187.7 100 % Industrial Industrial Industrial Industrial Corporate Total % Six Months Ended 31 March 2019 On-site $1,176.9 $400.8 $767.0 $— $— $2,344.7 53 % Merchant 804.0 617.8 485.2 — — 1,907.0 43 % Sale of Equipment — — — 122.0 38.0 160.0 4 % Total $1,980.9 $1,018.6 $1,252.2 $122.0 $38.0 $4,411.7 100 % |
Balance sheet impacts upon adoption of the new revenue standard | The table below summarizes the balance sheet impacts of no longer presenting "Contracts in progress, less progress billings" upon adoption of the new revenue standard on 1 October 2018: 30 September 2018 New Revenue Standard Adjustments 1 October 2018 Assets Current Assets Cash and cash items $2,791.3 $— $2,791.3 Short-term investments 184.7 — 184.7 Trade receivables, net 1,207.2 — 1,207.2 Inventories 396.1 — 396.1 Contracts in progress, less progress billings 77.5 (77.5 ) — Prepaid expenses 129.6 — 129.6 Other receivables and current assets 295.8 103.7 399.5 Total Current Assets 5,082.2 26.2 5,108.4 Total Noncurrent Assets 14,096.1 — 14,096.1 Total Assets $19,178.3 $26.2 $19,204.5 Liabilities and Equity Current Liabilities Payables and accrued liabilities $1,817.8 $26.2 $1,844.0 Accrued income taxes 59.6 — 59.6 Short-term borrowings 54.3 — 54.3 Current portion of long-term debt 406.6 — 406.6 Total Current Liabilities 2,338.3 26.2 2,364.5 Total Noncurrent Liabilities 5,663.7 — 5,663.7 Total Liabilities 8,002.0 26.2 8,028.2 Total Equity 11,176.3 — 11,176.3 Total Liabilities and Equity $19,178.3 $26.2 $19,204.5 |
Contract assets and liabilities | The table below details balances arising from contracts with customers as of our most recent balance sheet date and our date of adoption: 31 March 2019 1 October 2018 Assets Contract assets – current $34.6 $53.0 Contract fulfillment costs – current 65.9 50.7 Liabilities Contract liabilities – current 194.2 174.5 Contract liabilities – noncurrent 50.2 53.5 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventories are as follows: 31 March 30 September 2019 2018 Finished goods $140.4 $125.4 Work in process 23.6 21.2 Raw materials, supplies and other 244.3 249.5 Inventories $408.3 $396.1 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
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 2019 are as follows: Industrial Gases– Americas Industrial Gases– EMEA Industrial Gases– Asia Industrial Gases– Global Corporate and other Total Goodwill, net at 30 September 2018 $162.1 $424.4 $171.9 $20.1 $10.4 $788.9 Acquisitions — 38.0 — — — 38.0 Currency translation and other (2.0 ) (13.4 ) .3 (.2 ) .3 (15.0 ) Goodwill, net at 31 March 2019 $160.1 $449.0 $172.2 $19.9 $10.7 $811.9 31 March 30 September 2019 2018 Goodwill, gross $1,203.8 $1,194.7 Accumulated impairment losses (A) (391.9 ) (405.8 ) Goodwill, net $811.9 $788.9 (A) Accumulated impairment losses are attributable to our Latin America reporting unit (LASA) within the Industrial Gases – Americas segment and include the impacts of currency translation. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Instruments | The table below summarizes our outstanding currency price risk management instruments: 31 March 2019 30 September 2018 US$ Notional Years Average Maturity US$ Notional Years Average Maturity Forward Exchange Contracts: Cash flow hedges $2,773.8 0.4 $2,489.1 0.4 Net investment hedges 472.4 1.2 457.5 1.7 Not designated 826.7 1.1 1,736.1 0.8 Total Forward Exchange Contracts $4,072.9 0.6 $4,682.7 0.7 31 March 2019 30 September 2018 US$ Notional Average Pay % Average Receive % Years Average Maturity US$ Notional Average Pay % Average Receive % Years Average Maturity Interest rate swaps (fair value hedge) $600.0 LIBOR 2.60 % 1.1 $600.0 LIBOR 2.60 % 1.6 Cross currency interest rate swaps (net investment hedge) $263.6 4.61 % 3.12 % 3.2 $201.7 4.42 % 2.97 % 3.1 Cross currency interest rate swaps (cash flow hedge) $1,024.0 5.03 % 2.99 % 2.2 $1,052.7 4.99 % 2.89 % 2.3 Cross currency interest rate swaps (not designated) $12.6 2.55 % 3.72 % 5.0 $80.2 4.88 % 3.43 % 3.9 |
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 2019 30 September 2018 Balance Sheet Location 31 March 2019 30 September 2018 Derivatives Designated as Hedging Instruments: Forward exchange contracts Other receivables $32.8 $24.9 Accrued liabilities $39.6 $37.0 Interest rate management contracts Other receivables 16.1 24.3 Accrued liabilities .9 2.3 Forward exchange contracts Other noncurrent assets 29.2 19.8 Other noncurrent liabilities 1.1 4.6 Interest rate management contracts Other noncurrent assets 26.9 48.7 Other noncurrent liabilities 14.8 11.6 Total Derivatives Designated as Hedging Instruments $105.0 $117.7 $56.4 $55.5 Derivatives Not Designated as Hedging Instruments: Forward exchange contracts Other receivables $8.2 $7.9 Accrued liabilities $13.2 $14.9 Interest rate management contracts Other receivables — 4.0 Accrued liabilities — — Forward exchange contracts Other noncurrent assets 23.3 16.2 Other noncurrent liabilities 26.3 23.7 Interest rate management contracts Other noncurrent assets .1 .3 Other noncurrent liabilities — — Total Derivatives Not Designated as Hedging Instruments $31.6 $28.4 $39.5 $38.6 Total Derivatives $136.6 $146.1 $95.9 $94.1 |
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 2019 2018 2019 2018 2019 2018 2019 2018 Cash Flow Hedges, net of tax: Net gain (loss) recognized in OCI (effective portion) ($19.8 ) $31.9 $— $— ($15.6 ) ($14.1 ) ($35.4 ) $17.8 Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) (.1 ) 4.0 — — — — (.1 ) 4.0 Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) 18.8 (29.3 ) — — 14.4 15.8 33.2 (13.5 ) Net (gain) loss reclassified from OCI to interest expense (effective portion) 3.2 1.6 — — .6 .7 3.8 2.3 Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) — (.3 ) — — — — — (.3 ) Fair Value Hedges: Net gain (loss) recognized in interest expense (B) $— $— $— $— $— ($3.6 ) $— ($3.6 ) Net Investment Hedges, net of tax: Net gain (loss) recognized in OCI $6.2 ($15.2 ) $17.2 ($22.2 ) ($2.7 ) ($23.3 ) $20.7 ($60.7 ) Derivatives Not Designated as Hedging Instruments: Net gain (loss) recognized in other income (expense), net (C) ($2.2 ) $1.6 $— $— ($1.3 ) ($2.2 ) ($3.5 ) ($.6 ) Six Months Ended 31 March Forward Exchange Contracts Foreign Currency Debt Other (A) Total 2019 2018 2019 2018 2019 2018 2019 2018 Cash Flow Hedges, net of tax: Net gain (loss) recognized in OCI (effective portion) ($15.8 ) $39.4 $— $— ($29.9 ) ($31.1 ) ($45.7 ) $8.3 Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) .4 5.0 — — — — .4 5.0 Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) 9.5 (46.9 ) — — 16.2 32.2 25.7 (14.7 ) Net (gain) loss reclassified from OCI to interest expense (effective portion) 6.3 2.2 — — 1.3 1.3 7.6 3.5 Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) .1 (.5 ) — — — — .1 (.5 ) Fair Value Hedges: Net gain (loss) recognized in interest expense (B) $— $— $— $— $2.6 ($6.8 ) $2.6 ($6.8 ) Net Investment Hedges, net of tax: Net gain (loss) recognized in OCI $18.0 ($22.7 ) $26.8 ($39.5 ) ($2.1 ) ($34.5 ) $42.7 ($96.7 ) Derivatives Not Designated as Hedging Instruments: Net gain (loss) recognized in other income (expense), net (C) ($2.3 ) $.1 $— $— ($.5 ) ($3.5 ) ($2.8 ) ($3.4 ) (A) 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 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, 2019 | |
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 2019 30 September 2018 Carrying Value Fair Value Carrying Value Fair Value Assets Derivatives Forward exchange contracts $93.5 $93.5 $68.8 $68.8 Interest rate management contracts 43.1 43.1 77.3 77.3 Liabilities Derivatives Forward exchange contracts $80.2 $80.2 $80.2 $80.2 Interest rate management contracts 15.7 15.7 13.9 13.9 Long-term debt, including current portion and related party 3,736.7 3,798.1 3,758.3 3,788.2 |
Schedule of Fair Value Assets and Liabilities Measured On Recurring Basis | The following table summarizes assets and liabilities on the consolidated balance sheets that are measured at fair value on a recurring basis: 31 March 2019 30 September 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets at Fair Value Derivatives Forward exchange contracts $93.5 $— $93.5 $— $68.8 $— $68.8 $— Interest rate management contracts 43.1 — 43.1 — 77.3 — 77.3 — Total Assets at Fair Value $136.6 $— $136.6 $— $146.1 $— $146.1 $— Liabilities at Fair Value Derivatives Forward exchange contracts $80.2 $— $80.2 $— $80.2 $— $80.2 $— Interest rate management contracts 15.7 — 15.7 — 13.9 — 13.9 — Total Liabilities at Fair Value $95.9 $— $95.9 $— $94.1 $— $94.1 $— |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | The components of net periodic benefit cost for our defined benefit pension plans for the three and six months ended 31 March 2019 and 2018 were as follows: Pension Benefits 2019 2018 Three Months Ended 31 March U.S. International U.S. International Service cost $5.3 $4.9 $6.4 $6.6 Interest cost 28.4 9.0 26.8 9.6 Expected return on plan assets (43.1 ) (19.2 ) (50.4 ) (21.1 ) Prior service cost amortization .3 .1 .4 — Actuarial loss amortization 16.5 2.8 22.2 10.3 Settlements 5.0 — 1.5 — Special termination benefits — — .4 — Other — .1 — .1 Net Periodic Benefit Cost (Total) $12.4 ($2.3 ) $7.3 $5.5 Pension Benefits 2019 2018 Six Months Ended 31 March U.S. International U.S. International Service cost $10.7 $9.8 $12.8 $12.9 Interest cost 56.8 18.0 53.5 18.8 Expected return on plan assets (86.2 ) (38.1 ) (100.8 ) (41.3 ) Prior service cost amortization .6 .1 .8 — Actuarial loss amortization 32.6 5.6 43.9 20.3 Settlements 5.8 .2 3.3 — Special termination benefits .7 — .4 — Other — .4 — .6 Net Periodic Benefit Cost (Total) $21.0 ($4.0 ) $13.9 $11.3 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Recognized Share-Based Compensation Cost | Share-based compensation cost recognized on the consolidated income statements is summarized below: Three Months Ended Six Months Ended 31 March 31 March 2019 2018 2019 2018 Before-tax share-based compensation cost $11.9 $10.7 $21.2 $22.5 Income tax benefit (2.8 ) (2.1 ) (5.0 ) (5.3 ) After-tax share-based compensation cost $9.1 $8.6 $16.2 $17.2 |
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 17.5 % Risk-free interest rate 2.8 % Expected dividend yield 2.6 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
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 2019 : Derivatives qualifying as hedges Foreign currency translation adjustments Pension and postretirement benefits Total Balance at 31 December 2018 ($50.9 ) ($1,077.1 ) ($683.2 ) ($1,811.2 ) Other comprehensive income (loss) before reclassifications (35.4 ) 51.3 — 15.9 Amounts reclassified from AOCL 36.9 — 18.7 55.6 Net current period other comprehensive income 1.5 51.3 18.7 71.5 Amount attributable to noncontrolling interests .1 5.0 — 5.1 Balance at 31 March 2019 ($49.5 ) ($1,030.8 ) ($664.5 ) ($1,744.8 ) Derivatives qualifying as hedges Foreign currency translation adjustments Pension and postretirement benefits Total Balance at 30 September 2018 ($37.6 ) ($1,009.8 ) ($694.5 ) ($1,741.9 ) Other comprehensive loss before reclassifications (45.7 ) (16.8 ) (3.9 ) (66.4 ) Amounts reclassified from AOCL 33.8 — 33.9 67.7 Net current period other comprehensive income (loss) (11.9 ) (16.8 ) 30.0 1.3 Amount attributable to noncontrolling interests — 4.2 — 4.2 Balance at 31 March 2019 ($49.5 ) ($1,030.8 ) ($664.5 ) ($1,744.8 ) |
Schedule of Reclassification out of Accumulated Other Comprehensive Income (Loss) | The table below summarizes the reclassifications out of AOCL and the affected line item on the consolidated income statements: Three Months Ended Six Months Ended 31 March 31 March 2019 2018 2019 2018 (Gain) Loss on Cash Flow Hedges, net of tax Sales/Cost of sales ($.1 ) $4.0 $.4 $5.0 Other income/expense, net 33.2 (13.8 ) 25.8 (15.2 ) Interest expense 3.8 2.3 7.6 3.5 Total (Gain) Loss on Cash Flow Hedges, net of tax $36.9 ($7.5 ) $33.8 ($6.7 ) Currency Translation Adjustment (A) $— $— $— $3.1 Pension and Postretirement Benefits, net of tax (B) $18.7 $26.6 $33.9 $49.5 (A) The fiscal year 2018 impact is reflected in "Cost of sales" on the consolidated income statements and relates to an equipment sale resulting from the termination of a contract in the Industrial Gases – Asia segment during the first quarter. (B) The components of net periodic benefit cost reclassified out of AOCL 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 9 , Retirement Benefits |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
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 (EPS): Three Months Ended Six Months Ended 31 March 31 March 2019 2018 2019 2018 Numerator Income from continuing operations $421.3 $416.4 $768.8 $572.0 Loss from discontinued operations — — — (1.0 ) Net Income Attributable to Air Products $421.3 $416.4 $768.8 $571.0 Denominator (in millions) Weighted average common shares — Basic 220.2 219.4 220.0 219.2 Effect of dilutive securities Employee stock option and other award plans 1.2 1.4 1.2 1.5 Weighted average common shares — Diluted 221.4 220.8 221.2 220.7 Basic EPS Attributable to Air Products Income from continuing operations $1.91 $1.90 $3.49 $2.61 Loss from discontinued operations — — — — Net Income Attributable to Air Products $1.91 $1.90 $3.49 $2.61 Diluted EPS Attributable to Air Products Income from continuing operations $1.90 $1.89 $3.48 $2.59 Loss from discontinued operations — — — — Net Income Attributable to Air Products $1.90 $1.89 $3.48 $2.59 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
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 2019 Sales $991.7 $494.4 $625.4 $53.8 $22.4 $2,187.7 Operating income (loss) 255.6 122.5 199.7 (12.2 ) (49.1 ) 516.5 Depreciation and amortization 124.9 46.3 84.9 2.0 4.0 262.1 Equity affiliates' income 17.8 13.3 13.8 1.3 — 46.2 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 Industrial Gases – Americas Industrial Gases – EMEA Industrial Gases – Asia Industrial Gases – Global Corporate and other Segment Total Six Months Ended 31 March 2019 Sales $1,980.9 $1,018.6 $1,252.2 $122.0 $38.0 $4,411.7 Operating income (loss) 474.8 228.1 401.5 (8.3 ) (95.6 ) 1,000.5 Depreciation and amortization 250.5 92.6 164.8 4.1 8.1 520.1 Equity affiliates' income 40.4 27.0 30.0 1.7 — 99.1 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 Total Assets 31 March 2019 $5,885.6 $3,333.7 $6,167.0 $257.8 $3,600.4 $19,244.5 30 September 2018 5,904.0 3,280.4 5,899.5 240.1 3,854.3 19,178.3 |
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 2019 2018 2019 2018 Segment total $516.5 $455.4 $1,000.5 $916.1 Facility closure — — (29.0 ) — Consolidated Total $516.5 $455.4 $971.5 $916.1 |
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 2019 2018 2019 2018 Segment total $46.2 $43.7 $99.1 $90.0 Tax reform repatriation - equity method investment — — — (32.5 ) Consolidated Total $46.2 $43.7 $99.1 $57.5 |
New Accounting Guidance (Narrat
New Accounting Guidance (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Oct. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash provided by operating activities | $ 1,285.8 | $ 1,106 | |
Cash provided by investing activities | $ (882.1) | (540.8) | |
Accounting Standards Update 2016-15 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cash provided by operating activities | (4.1) | ||
Cash provided by investing activities | $ 4.1 | ||
Accounting Standards Update 2016-16 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative-effect adjustment related to adoption of new accounting standard | $ (17.1) |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 2,187.7 | $ 2,155.7 | $ 4,411.7 | $ 4,372.3 |
Lease revenue percentage of total sales | 4.00% | 4.00% | ||
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 2,187.7 | 2,155.7 | $ 4,411.7 | 4,372.3 |
Percent sales by supply mode | 100.00% | 100.00% | ||
Industrial Gases - Americas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 991.7 | 913.2 | $ 1,980.9 | 1,823 |
Industrial Gases - EMEA | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 494.4 | 561.6 | 1,018.6 | 1,077.5 |
Industrial Gases - Asia | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 625.4 | 557.6 | 1,252.2 | 1,201.2 |
Industrial Gases - Global | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 53.8 | 101.7 | 122 | 234.7 |
Corporate and other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 22.4 | $ 21.6 | 38 | $ 35.9 |
On-site | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 1,145.5 | $ 2,344.7 | ||
Percent sales by supply mode | 52.00% | 53.00% | ||
On-site | Industrial Gases - Americas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 580.9 | $ 1,176.9 | ||
On-site | Industrial Gases - EMEA | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 178.6 | 400.8 | ||
On-site | Industrial Gases - Asia | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 386 | 767 | ||
On-site | Industrial Gases - Global | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | ||
On-site | Corporate and other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | ||
Merchant | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 966 | $ 1,907 | ||
Percent sales by supply mode | 44.00% | 43.00% | ||
Merchant | Industrial Gases - Americas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 410.8 | $ 804 | ||
Merchant | Industrial Gases - EMEA | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 315.8 | 617.8 | ||
Merchant | Industrial Gases - Asia | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 239.4 | 485.2 | ||
Merchant | Industrial Gases - Global | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | ||
Merchant | Corporate and other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | ||
Sale of Equipment | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 76.2 | $ 160 | ||
Percent sales by supply mode | 4.00% | 4.00% | ||
Sale of Equipment | Industrial Gases - Americas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 0 | $ 0 | ||
Sale of Equipment | Industrial Gases - EMEA | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | ||
Sale of Equipment | Industrial Gases - Asia | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | ||
Sale of Equipment | Industrial Gases - Global | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 53.8 | 122 | ||
Sale of Equipment | Corporate and other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 22.4 | $ 38 |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligations) (Details) $ in Billions | Mar. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Transaction price allocated to remaining performance obligations | $ 14 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining performance obligation | 50.00% |
Estimated timing of recognition of performance obligation | 5 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining performance obligation | 50.00% |
Estimated timing of recognition of performance obligation |
Revenue Recognition (Balance Sh
Revenue Recognition (Balance Sheet Impact Upon Adoption) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Assets | |||||||
Cash and cash items | $ 2,735.9 | $ 2,791.3 | $ 2,791.3 | ||||
Short-term investments | 2.6 | 184.7 | 184.7 | ||||
Trade receivables, net | 1,258.5 | 1,207.2 | 1,207.2 | ||||
Inventories | 408.3 | 396.1 | 396.1 | ||||
Contracts in progress, less progress billings | 0 | 77.5 | |||||
Prepaid expenses | 102.4 | 129.6 | 129.6 | ||||
Other receivables and current assets | 399.5 | 295.8 | |||||
Total Current Assets | 4,895.2 | 5,108.4 | 5,082.2 | ||||
Total Noncurrent Assets | 14,349.3 | 14,096.1 | 14,096.1 | ||||
Total Assets | 19,244.5 | 19,204.5 | 19,178.3 | ||||
Liabilities and Equity | |||||||
Payables and accrued liabilities | 1,513.7 | 1,844 | 1,817.8 | ||||
Accrued income taxes | 70.7 | 59.6 | 59.6 | ||||
Short-term borrowings | 54.1 | 54.3 | 54.3 | ||||
Current portion of long-term debt | 434.5 | 406.6 | 406.6 | ||||
Total Current Liabilities | 2,073 | 2,364.5 | 2,338.3 | ||||
Total Noncurrent Liabilities | 5,668.1 | 5,663.7 | 5,663.7 | ||||
Total Liabilities | 7,741.1 | 8,028.2 | 8,002 | ||||
Total Equity | 11,503.4 | $ 11,203.4 | 11,176.3 | 11,176.3 | $ 10,693.2 | $ 10,321.2 | $ 10,185.5 |
Total Liabilities and Equity | $ 19,244.5 | 19,204.5 | $ 19,178.3 | ||||
ASU Update 2014-09 | New Revenue Standard Adjustments | |||||||
Assets | |||||||
Cash and cash items | 0 | ||||||
Short-term investments | 0 | ||||||
Trade receivables, net | 0 | ||||||
Inventories | 0 | ||||||
Contracts in progress, less progress billings | (77.5) | ||||||
Prepaid expenses | 0 | ||||||
Other receivables and current assets | 103.7 | ||||||
Total Current Assets | 26.2 | ||||||
Total Noncurrent Assets | 0 | ||||||
Total Assets | 26.2 | ||||||
Liabilities and Equity | |||||||
Payables and accrued liabilities | 26.2 | ||||||
Accrued income taxes | 0 | ||||||
Short-term borrowings | 0 | ||||||
Current portion of long-term debt | 0 | ||||||
Total Current Liabilities | 26.2 | ||||||
Total Noncurrent Liabilities | 0 | ||||||
Total Liabilities | 26.2 | ||||||
Total Equity | 0 | ||||||
Total Liabilities and Equity | $ 26.2 |
Revenue Recognition (Contract A
Revenue Recognition (Contract Assets and Liabilities) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2019 | Oct. 01, 2018 | |
Contract Assets and Liabilities | ||
Contract assets - current | $ 34.6 | $ 53 |
Contract fulfillment costs - current | 65.9 | 50.7 |
Contract liabilities - current | 194.2 | 174.5 |
Contract liabilities - noncurrent | 50.2 | $ 53.5 |
Revenue recognized that was previously included in current contract liabilities | $ 75 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($)acquisition | |
Business Acquisition [Line Items] | |||
Business combinations, goodwill acquired during period | $ 38 | ||
ACP Europe SA | |||
Business Acquisition [Line Items] | |||
Business combinations, aggregate purchase price, net of cash acquired | $ 106.3 | ||
Business combinations, plant and equipment acquired during the period | 74.6 | 74.6 | |
Business combinations, goodwill acquired during period | 38 | ||
Business combinations, tax deductible goodwill | $ 0 | $ 0 | |
2018 Business Combinations | |||
Business Acquisition [Line Items] | |||
Business combinations, aggregate purchase price, net of cash acquired | $ 281 | ||
Number of acquisitions completed | acquisition | 5 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Oct. 01, 2018 | Sep. 30, 2018 |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 140.4 | $ 125.4 | |
Work in process | 23.6 | 21.2 | |
Raw materials, supplies and other | 244.3 | 249.5 | |
Inventories | $ 408.3 | $ 396.1 | $ 396.1 |
Goodwill (Schedule of Goodwill
Goodwill (Schedule of Goodwill by Segment) (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | $ 788.9 |
Acquisitions | 38 |
Currency translation | (15) |
Goodwill, net, ending balance | 811.9 |
Industrial Gases - Americas | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 162.1 |
Acquisitions | 0 |
Currency translation | (2) |
Goodwill, net, ending balance | 160.1 |
Industrial Gases - EMEA | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 424.4 |
Acquisitions | 38 |
Currency translation | (13.4) |
Goodwill, net, ending balance | 449 |
Industrial Gases - Asia | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 171.9 |
Acquisitions | 0 |
Currency translation | 0.3 |
Goodwill, net, ending balance | 172.2 |
Industrial Gases - Global | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 20.1 |
Acquisitions | 0 |
Currency translation | (0.2) |
Goodwill, net, ending balance | 19.9 |
Corporate and other | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 10.4 |
Acquisitions | 0 |
Currency translation | 0.3 |
Goodwill, net, ending balance | $ 10.7 |
Goodwill (Schedule of Accumulat
Goodwill (Schedule of Accumulated Impairment Losses) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Sep. 30, 2018 | |
Goodwill [Line Items] | |||
Goodwill, gross | $ 1,203.8 | $ 1,194.7 | |
Goodwill, net | 811.9 | 788.9 | |
Industrial Gases - Americas | |||
Goodwill [Line Items] | |||
Goodwill, accumulated impairment losses | [1] | (391.9) | (405.8) |
Goodwill, net | $ 160.1 | $ 162.1 | |
[1] | Accumulated impairment losses are attributable to our Latin America reporting unit (LASA) within the Industrial Gases – Americas segment and include the impacts of currency translation. |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) € in Millions | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | |
Derivative [Line Items] | ||||
Net liability position of derivatives with credit risk-related contingent features | $ 23,700,000 | $ 33,400,000 | ||
Collateral posted on liability positions with credit risk-related contingent features | 0 | |||
Collateral amount that counterparties would be required to post | $ 83,300,000 | 97,600,000 | ||
Forward Exchange Contracts | Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Maximum remaining maturity of foreign currency derivatives | 2 years 7 months 6 days | 2 years 7 months 6 days | ||
Foreign Currency Debt | Euro Denominated | ||||
Derivative [Line Items] | ||||
Notional amount included in designated foreign currency denominated debt | $ 1,021,300,000 | € 910.4 | $ 1,054,600,000 | € 908.8 |
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, 2019 | Sep. 30, 2018 | |
Derivative [Line Items] | ||
US$ Notional | $ 4,072.9 | $ 4,682.7 |
Years Average Maturity | 7 months 6 days | 8 months 12 days |
Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 2,773.8 | $ 2,489.1 |
Years Average Maturity | 4 months 24 days | 4 months 24 days |
Designated as Hedging Instrument | Net Investment Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 472.4 | $ 457.5 |
Years Average Maturity | 1 year 2 months 12 days | 1 year 8 months 12 days |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
US$ Notional | $ 826.7 | $ 1,736.1 |
Years Average Maturity | 1 year 1 month 6 days | 9 months 18 days |
Financial Instruments (Schedu_2
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, 2019 | Sep. 30, 2018 | |
Interest Rate Swaps Contracts | Designated as Hedging Instrument | Fair Value Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 600 | $ 600 |
Average Pay % | LIBOR | LIBOR |
Average Receive % | 2.60% | 2.60% |
Years Average Maturity | 1 year 1 month 6 days | 1 year 7 months 6 days |
Cross Currency Interest Rate Swaps | Designated as Hedging Instrument | Net Investment Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 263.6 | $ 201.7 |
Average Pay % | 4.61% | 4.42% |
Average Receive % | 3.12% | 2.97% |
Years Average Maturity | 3 years 2 months 12 days | 3 years 1 month 6 days |
Cross Currency Interest Rate Swaps | Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 1,024 | $ 1,052.7 |
Average Pay % | 5.03% | 4.99% |
Average Receive % | 2.99% | 2.89% |
Years Average Maturity | 2 years 2 months 12 days | 2 years 3 months 18 days |
Cross Currency Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
US$ Notional | $ 12.6 | $ 80.2 |
Average Pay % | 2.55% | 4.88% |
Average Receive % | 3.72% | 3.43% |
Years Average Maturity | 5 years | 3 years 10 months 24 days |
Financial Instruments (Fair Val
Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Sep. 30, 2018 |
Derivative [Line Items] | ||
Total Derivatives, Assets | $ 136.6 | $ 146.1 |
Total Derivatives, Liabilities | 95.9 | 94.1 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 105 | 117.7 |
Total Derivatives, Liabilities | 56.4 | 55.5 |
Designated as Hedging Instrument | Other Receivables | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 32.8 | 24.9 |
Designated as Hedging Instrument | Other Receivables | Interest Rate Management Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 16.1 | 24.3 |
Designated as Hedging Instrument | Other Noncurrent Assets | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 29.2 | 19.8 |
Designated as Hedging Instrument | Other Noncurrent Assets | Interest Rate Management Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 26.9 | 48.7 |
Designated as Hedging Instrument | Accrued Liabilities | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 39.6 | 37 |
Designated as Hedging Instrument | Accrued Liabilities | Interest Rate Management Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 0.9 | 2.3 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 1.1 | 4.6 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest Rate Management Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 14.8 | 11.6 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 31.6 | 28.4 |
Total Derivatives, Liabilities | 39.5 | 38.6 |
Not Designated as Hedging Instrument | Other Receivables | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 8.2 | 7.9 |
Not Designated as Hedging Instrument | Other Receivables | Interest Rate Management Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 0 | 4 |
Not Designated as Hedging Instrument | Other Noncurrent Assets | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 23.3 | 16.2 |
Not Designated as Hedging Instrument | Other Noncurrent Assets | Interest Rate Management Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 0.1 | 0.3 |
Not Designated as Hedging Instrument | Accrued Liabilities | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 13.2 | 14.9 |
Not Designated as Hedging Instrument | Accrued Liabilities | Interest Rate Management Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Other Noncurrent Liabilities | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 26.3 | 23.7 |
Not Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest Rate Management Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | $ 0 | $ 0 |
Financial Instruments (Schedu_3
Financial Instruments (Schedule of Gain/Loss Related to Derivative Instruments) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI (effective portion) | $ (35.4) | $ 17.8 | $ (45.7) | $ 8.3 | |
Designated as Hedging Instrument | Cash Flow Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI (effective portion) | (35.4) | 17.8 | (45.7) | 8.3 | |
Designated as Hedging Instrument | Cash Flow Hedges | Sales/Cost of Sales | |||||
Derivative [Line Items] | |||||
Net (gain) loss reclassified from OCI (effective portion) | (0.1) | 4 | 0.4 | 5 | |
Designated as Hedging Instrument | Cash Flow Hedges | Other Income (Expense) | |||||
Derivative [Line Items] | |||||
Net (gain) loss reclassified from OCI (effective portion) | 33.2 | (13.5) | 25.7 | (14.7) | |
Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) | 0 | (0.3) | 0.1 | (0.5) | |
Designated as Hedging Instrument | Cash Flow Hedges | Interest Expense | |||||
Derivative [Line Items] | |||||
Net (gain) loss reclassified from OCI (effective portion) | 3.8 | 2.3 | 7.6 | 3.5 | |
Designated as Hedging Instrument | Fair Value Hedges | Interest Expense | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in income statement | [1] | 0 | (3.6) | 2.6 | (6.8) |
Designated as Hedging Instrument | Net Investment Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI | 20.7 | (60.7) | 42.7 | (96.7) | |
Not Designated as Hedging Instrument | Other Income (Expense) | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in income statement | [2] | (3.5) | (0.6) | (2.8) | (3.4) |
Forward Exchange Contracts | Designated as Hedging Instrument | Cash Flow Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI (effective portion) | (19.8) | 31.9 | (15.8) | 39.4 | |
Forward Exchange Contracts | Designated as Hedging Instrument | Cash Flow Hedges | Sales/Cost of Sales | |||||
Derivative [Line Items] | |||||
Net (gain) loss reclassified from OCI (effective portion) | (0.1) | 4 | 0.4 | 5 | |
Forward Exchange Contracts | Designated as Hedging Instrument | Cash Flow Hedges | Other Income (Expense) | |||||
Derivative [Line Items] | |||||
Net (gain) loss reclassified from OCI (effective portion) | 18.8 | (29.3) | 9.5 | (46.9) | |
Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) | 0 | (0.3) | 0.1 | (0.5) | |
Forward Exchange Contracts | Designated as Hedging Instrument | Cash Flow Hedges | Interest Expense | |||||
Derivative [Line Items] | |||||
Net (gain) loss reclassified from OCI (effective portion) | 3.2 | 1.6 | 6.3 | 2.2 | |
Forward Exchange Contracts | Designated as Hedging Instrument | Net Investment Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI | 6.2 | (15.2) | 18 | (22.7) | |
Forward Exchange Contracts | Not Designated as Hedging Instrument | Other Income (Expense) | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in income statement | [2] | (2.2) | 1.6 | (2.3) | 0.1 |
Foreign Currency Debt | Designated as Hedging Instrument | Net Investment Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI | 17.2 | (22.2) | 26.8 | (39.5) | |
Other Contracts | Designated as Hedging Instrument | Cash Flow Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI (effective portion) | [3] | (15.6) | (14.1) | (29.9) | (31.1) |
Other Contracts | Designated as Hedging Instrument | Cash Flow Hedges | Sales/Cost of Sales | |||||
Derivative [Line Items] | |||||
Net (gain) loss reclassified from OCI (effective portion) | [3] | 0 | 0 | 0 | 0 |
Other Contracts | Designated as Hedging Instrument | Cash Flow Hedges | Other Income (Expense) | |||||
Derivative [Line Items] | |||||
Net (gain) loss reclassified from OCI (effective portion) | [3] | 14.4 | 15.8 | 16.2 | 32.2 |
Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) | [3] | 0 | 0 | 0 | 0 |
Other Contracts | Designated as Hedging Instrument | Cash Flow Hedges | Interest Expense | |||||
Derivative [Line Items] | |||||
Net (gain) loss reclassified from OCI (effective portion) | [3] | 0.6 | 0.7 | 1.3 | 1.3 |
Other Contracts | Designated as Hedging Instrument | Fair Value Hedges | Interest Expense | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in income statement | [1],[3] | 0 | (3.6) | 2.6 | (6.8) |
Other Contracts | Designated as Hedging Instrument | Net Investment Hedges | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in OCI | [3] | (2.7) | (23.3) | (2.1) | (34.5) |
Other Contracts | Not Designated as Hedging Instrument | Other Income (Expense) | |||||
Derivative [Line Items] | |||||
Net gain (loss) recognized in income statement | [2],[3] | $ (1.3) | $ (2.2) | $ (0.5) | $ (3.5) |
[1] | The impact of fair value hedges 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 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] | ncludes 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, 2019 | Sep. 30, 2018 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion and related party, carrying value | $ 3,736.7 | $ 3,758.3 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion and related party, fair value | 3,798.1 | 3,788.2 |
Forward Exchange Contracts | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 93.5 | 68.8 |
Derivative liabilities | 80.2 | 80.2 |
Forward Exchange Contracts | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 93.5 | 68.8 |
Derivative liabilities | 80.2 | 80.2 |
Interest Rate Management Contracts | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 43.1 | 77.3 |
Derivative liabilities | 15.7 | 13.9 |
Interest Rate Management Contracts | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 43.1 | 77.3 |
Derivative liabilities | $ 15.7 | $ 13.9 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Recurring Fair Value Measurements) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2019 | Sep. 30, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets at Fair Value | $ 136.6 | $ 146.1 |
Total Liabilities at Fair Value | 95.9 | 94.1 |
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 | 136.6 | 146.1 |
Total Liabilities at Fair Value | 95.9 | 94.1 |
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 | 93.5 | 68.8 |
Derivative liabilities | 80.2 | 80.2 |
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 | 93.5 | 68.8 |
Derivative liabilities | 80.2 | 80.2 |
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 Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 43.1 | 77.3 |
Derivative liabilities | 15.7 | 13.9 |
Interest Rate Management Contracts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Interest Rate Management Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 43.1 | 77.3 |
Derivative liabilities | 15.7 | 13.9 |
Interest Rate Management Contracts | 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 | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Company contributions | $ 25.5 | $ 35.9 | $ 68.3 | |||
Pension settlement loss | $ 5 | |||||
Minimum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Total expected contributions for current fiscal year | 45 | 45 | ||||
Maximum | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Total expected contributions for current fiscal year | 65 | 65 | ||||
International | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension settlement loss | $ 0 | $ 0 | $ 0.2 | $ 0 | ||
Prior service cost arising during period | $ 4.7 |
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, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlements | $ 5 | |||
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5.3 | $ 6.4 | $ 10.7 | $ 12.8 |
Interest cost | 28.4 | 26.8 | 56.8 | 53.5 |
Expected return on plan assets | (43.1) | (50.4) | (86.2) | (100.8) |
Prior service cost amortization | 0.3 | 0.4 | 0.6 | 0.8 |
Actuarial loss amortization | 16.5 | 22.2 | 32.6 | 43.9 |
Settlements | 5 | 1.5 | 5.8 | 3.3 |
Special termination benefits | 0 | 0.4 | 0.7 | 0.4 |
Other | 0 | 0 | 0 | 0 |
Net periodic benefit cost | 12.4 | 7.3 | 21 | 13.9 |
International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 4.9 | 6.6 | 9.8 | 12.9 |
Interest cost | 9 | 9.6 | 18 | 18.8 |
Expected return on plan assets | (19.2) | (21.1) | (38.1) | (41.3) |
Prior service cost amortization | 0.1 | 0 | 0.1 | 0 |
Actuarial loss amortization | 2.8 | 10.3 | 5.6 | 20.3 |
Settlements | 0 | 0 | 0.2 | 0 |
Special termination benefits | 0 | 0 | 0 | 0 |
Other | 0.1 | 0.1 | 0.4 | 0.6 |
Net periodic benefit cost | $ (2.3) | $ 5.5 | $ (4) | $ 11.3 |
Commitments and Contingencies (
Commitments and Contingencies (Litigation and Environmental - Narrative) (Details) R$ in Millions | 1 Months Ended | 6 Months Ended | ||
Sep. 30, 2010BRL (R$) | Mar. 31, 2019USD ($)site | Mar. 31, 2019BRL (R$)site | Sep. 30, 2018USD ($) | |
Alleged Anticompete Litigation | ||||
Loss Contingencies [Line Items] | ||||
Civil fines imposed | R$ 179.2 | $ 46,000,000 | ||
Provision for litigation | 0 | |||
Maximum of loss contingency range subject to interest | $ 46,000,000 | R$ 179.2 | ||
Environmental | ||||
Loss Contingencies [Line Items] | ||||
Approximate number of sites on which settlement has not been reached | site | 32 | 32 | ||
Accrual for environmental loss contingencies | $ 72,400,000 | $ 76,800,000 | ||
Accrual for environmental loss contingencies, maximum payout period | 30 years | |||
Environmental | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible exposure from environmental loss contingencies | $ 72,000,000 | |||
Environmental | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible exposure from environmental loss contingencies | $ 86,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Pace, Piedmont, Pasadena - Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Sep. 30, 2012 | Sep. 30, 2008 | Sep. 30, 2006 | |
Pace, Florida | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | $ 25,000,000 | $ 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 | 15,200,000 | $ 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 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | 6 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for future grant | 4,455,475 |
Market-Based Deferred Stock Unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of units/shares granted | 114,929 |
Performance period | 3 years |
Weighted average grant date fair value (in dollars per unit/share) | $ / shares | $ 229.61 |
Time-Based Deferred Stock Unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of units/shares granted | 160,539 |
Weighted average grant date fair value (in dollars per unit/share) | $ / shares | $ 166.27 |
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, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||||
Before-tax share-based compensation cost | $ 11.9 | $ 10.7 | $ 21.2 | $ 22.5 |
Income tax benefit | (2.8) | (2.1) | (5) | (5.3) |
After-tax share-based compensation cost | $ 9.1 | $ 8.6 | $ 16.2 | $ 17.2 |
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, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 17.50% |
Risk-free interest rate | 2.80% |
Expected dividend yield | 2.60% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 11,203.4 | $ 10,321.2 | $ 11,176.3 | $ 10,185.5 |
Other comprehensive income (loss) before reclassifications | 15.9 | (66.4) | ||
Amounts reclassified from AOCL | 55.6 | 67.7 | ||
Total Other Comprehensive Income | 71.5 | 162.5 | 1.3 | 316.2 |
Amount attributable to noncontrolling interests | 5.1 | 2.2 | 4.2 | 4.1 |
Ending balance | 11,503.4 | 10,693.2 | 11,503.4 | 10,693.2 |
Derivatives qualifying as hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (50.9) | (37.6) | ||
Other comprehensive income (loss) before reclassifications | (35.4) | (45.7) | ||
Amounts reclassified from AOCL | 36.9 | 33.8 | ||
Total Other Comprehensive Income | 1.5 | (11.9) | ||
Amount attributable to noncontrolling interests | 0.1 | 0 | ||
Ending balance | (49.5) | (49.5) | ||
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (1,077.1) | (1,009.8) | ||
Other comprehensive income (loss) before reclassifications | 51.3 | (16.8) | ||
Amounts reclassified from AOCL | 0 | 0 | ||
Total Other Comprehensive Income | 51.3 | (16.8) | ||
Amount attributable to noncontrolling interests | 5 | 4.2 | ||
Ending balance | (1,030.8) | (1,030.8) | ||
Pension and postretirement benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (683.2) | (694.5) | ||
Other comprehensive income (loss) before reclassifications | 0 | (3.9) | ||
Amounts reclassified from AOCL | 18.7 | 33.9 | ||
Total Other Comprehensive Income | 18.7 | 30 | ||
Amount attributable to noncontrolling interests | 0 | 0 | ||
Ending balance | (664.5) | (664.5) | ||
AOCL attributable to Air Products | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (1,811.2) | (1,695.6) | (1,741.9) | (1,847.4) |
Total Other Comprehensive Income | 66.4 | 160.3 | (2.9) | 312.1 |
Ending balance | $ (1,744.8) | $ (1,535.3) | $ (1,744.8) | $ (1,535.3) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Reclassification) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other income/expense, net | $ (10.4) | $ (15.3) | $ (19) | $ (37.4) | |
Interest expense | 35.4 | 30.4 | 72.7 | 60.2 | |
Cost of sales | 1,474.7 | 1,506.5 | 3,018.7 | 3,078.3 | |
Net Income Attributable to Air Products | (421.3) | (416.4) | (768.8) | (571) | |
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 | (0.1) | 4 | 0.4 | 5 | |
Other income/expense, net | 33.2 | (13.8) | 25.8 | (15.2) | |
Interest expense | 3.8 | 2.3 | 7.6 | 3.5 | |
Net Income Attributable to Air Products | 36.9 | (7.5) | 33.8 | (6.7) | |
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 | 0 | 0 | 3.1 |
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 Attributable to Air Products | [2] | $ 18.7 | $ 26.6 | $ 33.9 | $ 49.5 |
[1] | The fiscal year 2018 impact is reflected in "Cost of sales" on the consolidated income statements and relates to an equipment sale resulting from the termination of a contract in the Industrial Gases – Asia segment during the first quarter. | ||||
[2] | The components of net periodic benefit cost reclassified out of AOCL 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 9 , 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, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Income from continuing operations | $ 421.3 | $ 416.4 | $ 768.8 | $ 572 |
Loss from discontinued operations | 0 | 0 | 0 | (1) |
Net Income Attributable to Air Products | $ 421.3 | $ 416.4 | $ 768.8 | $ 571 |
Weighted average common shares — Basic | 220.2 | 219.4 | 220 | 219.2 |
Employee stock option and other award plans | 1.2 | 1.4 | 1.2 | 1.5 |
Weighted average common shares — Diluted | 221.4 | 220.8 | 221.2 | 220.7 |
Earnings Per Share, Basic [Abstract] | ||||
Income from continuing operations (in dollars per share) | $ 1.91 | $ 1.90 | $ 3.49 | $ 2.61 |
Income (Loss) from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net Income Attributable to Air Products (in dollars per share) | 1.91 | 1.90 | 3.49 | 2.61 |
Earnings Per Share, Diluted [Abstract] | ||||
Income from continuing operations (in dollars per share) | 1.90 | 1.89 | 3.48 | 2.59 |
Income (Loss) from discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net Income Attributable to Air Products (in dollars per share) | $ 1.90 | $ 1.89 | $ 3.48 | $ 2.59 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive share-based awards excluded from computation of diluted earnings per share (in shares) | 0 | 0.1 | 0 | 0.1 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
U.S. federal statutory tax rate (percent) | 21.00% | 35.00% | |||
Discrete net tax expense related to Tax Act | $ 40.6 | ||||
Reversal of non-recurring benefit related to U.S. taxation of deemed foreign dividends | 56.2 | ||||
Tax benefit related to finalization of assessment of impacts of Tax Act | $ 15.6 | ||||
Discrete net tax expense based on provisional estimates related to Tax Act | $ 206.5 | ||||
Impact of new tax law on equity affiliate expense | $ 32.5 | ||||
Deferred foreign income tax expense (benefit) | $ 38.8 | ||||
Effective tax rate (percent) | 19.90% | 11.70% | 23.30% | 37.20% | |
Income tax payments, net of refunds | $ 165.6 | $ 153.7 |
Supplemental Information (Narra
Supplemental Information (Narrative) (Details) $ in Millions, ¥ in Billions | 3 Months Ended | 6 Months Ended | |||||||
Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019CNY (¥) | Sep. 30, 2018USD ($) | Sep. 30, 2018CNY (¥) | Apr. 26, 2018CNY (¥) | |
Debt Instrument [Line Items] | |||||||||
Facility closure | $ 0 | $ 29 | $ 0 | $ 29 | $ 0 | ||||
Sales to related parties | 80 | $ 70 | 165 | $ 175 | |||||
Long-term debt – related party | 369.2 | 369.2 | $ 384.3 | ||||||
Current portion of long-term debt – related party | 24.1 | 24.1 | |||||||
Liability for expected cash payments to or on behalf of related party | $ 82.7 | $ 82.7 | ¥ 0.6 | $ 330 | ¥ 2.2 | ¥ 2.3 | |||
Joint Venture | Air Products Lu'an Changzhi Co Ltd | |||||||||
Debt Instrument [Line Items] | |||||||||
Ownership interest by Air Products (percent) | 60.00% | ||||||||
Loans Payable | Lu'An Loan To Joint Venture | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt – related party | ¥ | ¥ 2.6 |
Business Segment Information (N
Business Segment Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ 516.5 | $ 455.4 | $ 971.5 | $ 916.1 |
Contracts accounted for under percentage of completion | ||||
Segment Reporting Information [Line Items] | ||||
Operating income (loss) | $ 10 | $ 10 |
Business Segment Information (S
Business Segment Information (Schedule of Segment Reporting Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||||
Sales | $ 2,187.7 | $ 2,155.7 | $ 4,411.7 | $ 4,372.3 | ||
Operating income (loss) | 516.5 | 455.4 | 971.5 | 916.1 | ||
Depreciation and amortization | 520.1 | 467.9 | ||||
Equity affiliates' income | 46.2 | 43.7 | 99.1 | 57.5 | ||
Total assets | 19,244.5 | 19,244.5 | $ 19,204.5 | $ 19,178.3 | ||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 2,187.7 | 2,155.7 | 4,411.7 | 4,372.3 | ||
Operating income (loss) | 516.5 | 455.4 | 1,000.5 | 916.1 | ||
Depreciation and amortization | 262.1 | 240 | 520.1 | 467.9 | ||
Equity affiliates' income | 46.2 | 43.7 | 99.1 | 90 | ||
Total assets | 19,244.5 | 19,244.5 | 19,178.3 | |||
Industrial Gases - Americas | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 991.7 | 913.2 | 1,980.9 | 1,823 | ||
Operating income (loss) | 255.6 | 222.3 | 474.8 | 439.5 | ||
Depreciation and amortization | 124.9 | 122.3 | 250.5 | 240.1 | ||
Equity affiliates' income | 17.8 | 16.9 | 40.4 | 35.5 | ||
Total assets | 5,885.6 | 5,885.6 | 5,904 | |||
Industrial Gases - EMEA | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 494.4 | 561.6 | 1,018.6 | 1,077.5 | ||
Operating income (loss) | 122.5 | 116.7 | 228.1 | 221.2 | ||
Depreciation and amortization | 46.3 | 50.7 | 92.6 | 99.8 | ||
Equity affiliates' income | 13.3 | 11.1 | 27 | 24.2 | ||
Total assets | 3,333.7 | 3,333.7 | 3,280.4 | |||
Industrial Gases - Asia | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 625.4 | 557.6 | 1,252.2 | 1,201.2 | ||
Operating income (loss) | 199.7 | 148.7 | 401.5 | 324.2 | ||
Depreciation and amortization | 84.9 | 62.6 | 164.8 | 119.4 | ||
Equity affiliates' income | 13.8 | 15.4 | 30 | 29.6 | ||
Total assets | 6,167 | 6,167 | 5,899.5 | |||
Industrial Gases - Global | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 53.8 | 101.7 | 122 | 234.7 | ||
Operating income (loss) | (12.2) | 12.1 | (8.3) | 21.6 | ||
Depreciation and amortization | 2 | 1.9 | 4.1 | 3.5 | ||
Equity affiliates' income | 1.3 | 0.3 | 1.7 | 0.7 | ||
Total assets | 257.8 | 257.8 | 240.1 | |||
Corporate and other | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 22.4 | 21.6 | 38 | 35.9 | ||
Operating income (loss) | (49.1) | (44.4) | (95.6) | (90.4) | ||
Depreciation and amortization | 4 | 2.5 | 8.1 | 5.1 | ||
Equity affiliates' income | 0 | $ 0 | 0 | $ 0 | ||
Total assets | $ 3,600.4 | $ 3,600.4 | $ 3,854.3 |
Business Segment Information (R
Business Segment Information (Reconciliation of Operating Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Operating income | $ 516.5 | $ 455.4 | $ 971.5 | $ 916.1 | |
Facility closure | 0 | $ (29) | 0 | (29) | 0 |
Segment Reconciling Items | |||||
Segment Reporting Information [Line Items] | |||||
Facility closure | 0 | 0 | (29) | 0 | |
Segment Total | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | $ 516.5 | $ 455.4 | $ 1,000.5 | $ 916.1 |
Business Segment Information _2
Business Segment Information (Reconciliation of Equity Affiliates' Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||
Tax reform repatriation - equity method investment | $ (32.5) | |||
Equity affiliates' income | $ 46.2 | $ 43.7 | $ 99.1 | 57.5 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Tax reform repatriation - equity method investment | 0 | 0 | 0 | (32.5) |
Segment Total | ||||
Segment Reporting Information [Line Items] | ||||
Equity affiliates' income | $ 46.2 | $ 43.7 | $ 99.1 | $ 90 |