0000002969
2007-10-01 2008-09-30
0000002969
2008-06-30 0000002969
2007-09-30 0000002969
2008-03-31 0000002969
2009-07-20 0000002969
2009-06-30 0000002969
2008-09-30 0000002969
2009-04-01 2009-06-30
0000002969
2008-04-01 2008-06-30
0000002969
2007-10-01 2008-06-30
0000002969
2008-10-01 2009-06-30
iso4217:USD xbrli:shares
xbrli:shares
iso4217:USD
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 1 - us-gaap:SignificantAccountingPoliciesTextBlock--> <!--
xbrl,ns --> <div style="font-family: 'Times New Roman',Times,serif">
<div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b>
</div> <div align="left"> </div> <div align="center"
style="font-size: 10pt"><b></b></div> <div align="left"
style="font-size: 10pt; margin-top: 0pt"> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt"><b>1. MAJOR ACCOUNTING POLICIES</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Refer
to the Company’s 2008 annual report on Form 10-K for a description
of major accounting policies. There have been no material changes to these
accounting policies during the first nine months of 2009 other than those
detailed in Note 2. </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt"><b>Basis of Presentation</b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The consolidated
financial statements of Air Products and Chemicals, Inc. and its subsidiaries
(the “Company” or “registrant”) included
herein have been prepared by the Company, without audit, pursuant to the rules
and regulations of the Securities and Exchange Commission. Certain information
and footnote disclosures normally included in financial statements prepared
in accordance with U.S. generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. In the opinion
of the Company, 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. However,
the interim results for the periods indicated herein do not reflect certain
adjustments, such as the valuation of inventories on the LIFO cost basis,
which can only be finally determined on an annual basis. The consolidated
financial statements and related Notes included herein should be read in conjunction
with the financial statements and Notes thereto included in the Company’s
latest annual report on Form 10-K in order to fully understand the basis of
presentation. Results of operations for interim periods are not necessarily
indicative of the results of operations for a full year. </div> </div>
</body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 2 - us-gaap:ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>2. NEW ACCOUNTING STANDARDS</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt"><b><i>Standards
Implemented</i></b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt"><b>Disclosures about Subsequent Events</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In
May 2009, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standard (SFAS) No. 165,
“Subsequent Events.” SFAS No. 165 establishes
the standards of accounting for and disclosure of events that occur after
the balance sheet date but before financial statements are issued. This Statement
also requires the disclosure of the date through which subsequent events have
been evaluated. The Company adopted this standard, as required, for the period
ended 30 June 2009. Adoption of SFAS No. 165 did not have
a material impact on the Company’s consolidated financial statements.
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Refer
to Note 14, Supplemental Information, for the required disclosure. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Fair
Value Disclosures</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">Effective 1 April 2009, the Company adopted
FASB Staff Position (FSP) FAS 107-1 and APB 28-1, “Interim
Disclosures about Fair Value of Financial Instruments.” This FSP
extends the disclosure requirements under SFAS No. 107, “Disclosures
about Fair Value of Financial Instruments,” to interim financial
statements. It also amends APB Opinion No. 28, “Interim
Financial Reporting,” to require those disclosures in summarized
financial information at interim reporting periods. This FSP only requires
additional disclosure and did not have an impact on the Company’s
consolidated financial statements. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">Refer to Note 6, Fair Value Measurements, for the
required disclosures. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt"><b>Disclosures about Derivatives and Hedging</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Effective
1 January 2009, the Company adopted SFAS No. 161, “Disclosures
about Derivative Instruments and Hedging Activities — an amendment
of FASB Statement No. 133.” SFAS No. 161 requires
enhanced disclosures about how and why an entity uses derivative instruments;
how derivative instruments and related hedged items are accounted for; and
how they affect an entity’s financial position, financial performance,
and cash flows. This Statement only requires additional disclosure and did
not have an impact on the Company’s consolidated financial statements
upon adoption. </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">Refer to Note 5, Financial Instruments, for the required disclosures.
</div> <!-- Folio --> <!-- /Folio --> </div> <!--
PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Fair
Value Option</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">In February 2007, the FASB issued SFAS
No. 159, “The Fair Value Option for Financial Assets and
Financial Liabilities — Including an amendment of FASB Statement
No. 115.” This Statement permits companies to elect to
measure certain financial instruments at fair value on an instrument-by-instrument
basis, with changes in fair value recognized in earnings each reporting period.
In addition, SFAS No. 159 establishes financial statement presentation
and disclosure requirements for assets and liabilities reported at fair value
under the election. The Company adopted SFAS No. 159 as of 1 October 2008
and elected not to fair value any items under this Statement. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Postretirement
Benefits</b> </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">The Company adopted the measurement date change of SFAS
No. 158, “Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans,” for its U.K. and Belgium
pension plans as of 1 October 2008. SFAS No. 158 required
the Company to change the measurement date for these plans from 30 June to
30 September (end of fiscal year). As a result of this change, pension expense
and actuarial gains/losses for the three-month period ended 30 September 2008
were recognized as adjustments to the beginning balances of retained earnings
and Accumulated Other Comprehensive Income (AOCI), respectively. The after-tax
charge to retained earnings was $8.1. AOCI was credited $35.8 for net actuarial
gains on an after-tax basis. These adjustments only affected the balance sheet.
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Fair
Value Measurements</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">Effective 1 October 2008, the Company adopted
SFAS No. 157, “Fair Value Measurements,” for
financial assets and liabilities and any other assets and liabilities that
are recognized and disclosed at fair value on a recurring basis. This Statement
defines fair value, establishes a method for measuring fair value, and requires
additional disclosures about fair value measurements. FASB Staff Position
No. 157-2 delayed the adoption of SFAS No. 157 for other
nonfinancial assets and liabilities until 1 October 2009 for the
Company. The adoption of SFAS No. 157 did not impact the Company’s
financial statements for assets and liabilities measured at fair value on
a recurring basis. </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">Refer to Note 6, Fair Value Measurements, for the required
disclosures. </div> <div align="left" style="font-size: 10pt; margin-top:
6pt"><b><i>New Standards to Be Implemented</i></b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt"><b>The
FASB Accounting Standards Codification</b> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">In June 2009, the FASB
issued SFAS No. 168, “The FASB Accounting Standards Codification<sup
style="font-size: 85%; vertical-align: text-top">TM</sup> and the
Hierarchy of Generally Accepted Accounting Principles — a replacement
of FASB Statement No. 162<i>” </i>(Codification).
The Codification does not change current U.S. GAAP but reorganizes all authoritative
literature in one place. This Statement is effective for financial statements
issued for interim and annual periods ending after 15 September 2009.
Once effective, the Codification will supersede existing GAAP and become the
source of authoritative accounting principles recognized by the FASB. This
Statement only requires a change in disclosure and will not impact the Company’s
consolidated financial statements. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt"><b>Consolidation of Variable Interest Entities</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In
June 2009, the FASB issued SFAS No. 167, “Amendments
to FASB Interpretation No. 46(R)” (SFAS No. 167). This
Statement amends certain guidance in FIN 46(R) for determining whether an
entity is a variable interest entity (VIE). SFAS No. 167 requires
an enterprise to perform an analysis to determine whether the Company’s
variable interests give it a controlling financial interest in a VIE. A company
would be required to assess whether it has an implicit financial responsibility
to ensure that a VIE operates as designed when determining whether it has
the power to direct the activities of the VIE that most significantly impact
the entity’s economic performance. In addition, this Statement amends
FIN 46(R) to require ongoing reassessments of whether an enterprise is the
primary beneficiary of a VIE. SFAS 167 is effective for the Company for fiscal
year 2011. The Company is currently evaluating the impact of this Statement.
</div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 3 - us-gaap:RestructuringAndRelatedActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>3. GLOBAL COST REDUCTION
PLAN</b> </div> <div align="left" style="font-size: 10pt; margin-top:
6pt"><b>Third Quarter 2009</b> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">During the third quarter ended
30 June 2009, due to the continuing slow economic recovery, the Company
committed to additional actions associated with its global cost reduction
plan which resulted in a charge to continuing operations of $124.0 ($84.2
after-tax, or $.39 per share). </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">This charge included $90.0 for severance and other
benefits, including pension-related costs, associated with the elimination
of approximately 1,150 positions of its global workforce. The reductions are
targeted at continued cost reduction and productivity efforts, including the
closure of certain manufacturing facilities. An impairment charge of $34.0
was recorded to write-down certain assets held for sale to net realizable
value. </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">The planned actions associated with the third quarter charge are expected
to be substantially completed by the end of the third quarter of fiscal year
2010. </div> <div align="left" style="font-size: 10pt; margin-top:
6pt"><b>First Quarter 2009</b> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">During the first quarter ended
31 December 2008, the Company announced a global cost reduction plan
designed to lower its cost structure and better align its businesses to reflect
rapidly declining economic conditions around the world. The results from continuing
operations in the first quarter included a charge of $174.2 ($116.1 after-tax,
or $.55 per share). </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">This charge included $120.0 for severance and pension-related
costs, associated with eliminating approximately 1,400 positions from its
global workforce. The reductions are targeted at reducing overhead and infrastructure
costs, reducing and refocusing elements of the Company’s technology
and business development spending, and lowering its plant operating costs.
The remainder of this charge, $54.2, was for business exits and asset management
actions. Assets held for sale were written down to net realizable value and
an environmental liability of $16.0 was recognized. This environmental liability
resulted from a decision to sell a production facility. </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">The planned actions
associated with the first quarter 2009 charge are expected to be substantially
completed by the end of the first quarter of fiscal year 2010. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Business
Segments</b> </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">The charges for the global cost reduction plan were excluded
from segment operating profit. The tables below display how these charges
related to the businesses at the segment level: </div> <div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="64%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Asset</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Severance
and</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="3">Impairments/</td> <td> </td> <td
nowrap="nowrap" align="center" colspan="3"> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">Third
Quarter 2009</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">Other Benefits</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Other Costs</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Total</td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Merchant Gases </div></td> <td> </td>
<td align="right">$</td> <td align="right">43.0</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">.5</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">43.5</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Tonnage Gases </div></td>
<td> </td> <td> </td> <td align="right">3.1</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">3.1</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Electronics
and Performance Materials </div></td> <td> </td>
<td> </td> <td align="right">8.9</td> <td> </td>
<td> </td> <td> </td> <td align="right">11.7</td>
<td> </td> <td> </td> <td> </td>
<td align="right">20.6</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Equipment
and Energy </div></td> <td> </td> <td> </td>
<td align="right">35.0</td> <td> </td> <td> </td>
<td> </td> <td align="right">21.8</td> <td> </td>
<td> </td> <td> </td> <td align="right">56.8</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td align="right">$</td> <td
align="right">90.0</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">34.0</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">124.0</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top:
1px solid #000000"> </td> </tr> <!-- End Table
Body --> </table> </div> <div align="center"> <table
style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0"
width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="64%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Asset</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Severance
and</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="3">Impairment/</td> <td> </td> <td
nowrap="nowrap" align="center" colspan="3"> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">Nine
Months Ended 30 June 2009</td> <td> </td> <td
nowrap="nowrap" align="center" colspan="3">Other Benefits</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Other Costs</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Total</td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Merchant Gases </div></td> <td> </td>
<td align="right">$</td> <td align="right">127.5</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">7.2</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">134.7</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Tonnage Gases </div></td>
<td> </td> <td> </td> <td align="right">14.2</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">14.2</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Electronics
and Performance Materials </div></td> <td> </td>
<td> </td> <td align="right">30.6</td> <td> </td>
<td> </td> <td> </td> <td align="right">58.9</td>
<td> </td> <td> </td> <td> </td>
<td align="right">89.5</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Equipment
and Energy </div></td> <td> </td> <td> </td>
<td align="right">37.7</td> <td> </td> <td> </td>
<td> </td> <td align="right">22.1</td> <td> </td>
<td> </td> <td> </td> <td align="right">59.8</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td align="right">$</td> <td
align="right">210.0</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">88.2</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">298.2</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top:
1px solid #000000"> </td> </tr> <!-- End Table
Body --> </table> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt"><b>Accrual Balance</b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following
table summarizes changes to the carrying amount of the accrual for the global
cost reduction plan for the nine months ended 30 June 2009: </div>
<div align="center"> <table style="font-size: 10pt; text-align: left"
cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin
Table Head --> <tr valign="bottom"> <td width="64%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">Asset</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Severance
and</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="3">Impairments/</td> <td> </td> <td
nowrap="nowrap" align="center" colspan="3"> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #ffffff">Other Benefits</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Other Costs</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #ffffff">Total</td> </tr> <!--
End Table Head --> <!-- Begin Table Body --> <tr style="font-size:
1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">First quarter 2009
charge </div></td> <td> </td> <td align="right">$</td>
<td align="right">120.0</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">54.2</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">174.2</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Third
quarter 2009 charge </div></td> <td> </td>
<td> </td> <td align="right">90.0</td> <td> </td>
<td> </td> <td> </td> <td align="right">34.0</td>
<td> </td> <td> </td> <td> </td>
<td align="right">124.0</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Environmental charge (a) </div></td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">(16.0</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(16.0</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Noncash
expenses </div></td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">(33.8</td>
<td nowrap="nowrap">) (b)</td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">(66.1</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(99.9</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Cash expenditures </div></td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">(53.1</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(.8</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(53.9</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Currency
translation adjustment </div></td> <td> </td>
<td> </td> <td align="right">1.4</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1.4</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Accrual Balance at 30 June 2009 </div></td>
<td> </td> <td align="right">$</td> <td
align="right">124.5</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">5.3</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">129.8</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top:
1px solid #000000"> </td> </tr> <!-- End Table
Body --> </table> </div> <div align="left"> <div style="font-size:
3pt; margin-top: 6pt; width: 18%; border-top: 0px solid #000000"> 
</div> </div> <table width="100%" border="0" cellpadding="0"
cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td
width="3%"></td> <td width="1%"></td> <td width="96"></td>
</tr> <tr valign="top"> <td nowrap="nowrap" align="left">(a)</td>
<td> </td> <td>Reflected in accrual for environmental
obligations. See Note 12.</td> </tr> <tr style="font-size:
3pt"> <td> </td> </tr> <tr valign="top">
<td nowrap="nowrap" align="left">(b)</td> <td> </td>
<td>Primarily pension related costs which are reflected in the accrual
for pension benefits.</td> </tr> </table> <!-- Folio
--> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div
style="font-family: 'Times New Roman',Times,serif"> </div> </body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 4 - us-gaap:DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>4. DISCONTINUED OPERATIONS</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The
U.S. Healthcare business, Polymer Emulsions business, and the High Purity
Process Chemicals (HPPC) business have been accounted for as discontinued
operations. The results of operations of these businesses have been removed
from the results of continuing operations for all periods presented. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">For additional
historical information on these discontinued operations, refer to the Company’s
2008 annual report on Form 10-K. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt"><b>U.S. Healthcare</b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">In July 2008,
the Board of Directors authorized management to pursue the sale of the U.S.
Healthcare business. In 2008, the Company recorded a total charge of $329.2
($246.2 after-tax, or $1.12 per share) related to the impairment/write-down
of the net carrying value of the U.S. Healthcare business. </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">In the first quarter
of 2009, based on additional facts, the Company recorded an impairment charge
of $48.7 ($30.9 after-tax, or $.15 per share) reflecting a revision in the
estimated net realizable value of the U.S. Healthcare business. Also, a tax
benefit of $8.8, or $.04 per share, was recorded to revise the estimated tax
benefit related to previously recognized impairment charges. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As a result
of events which occurred during the second quarter of 2009, which increased
the Company’s ability to realize tax benefits associated with the
impairment charges recorded in 2008, the Company recognized a one-time tax
benefit of $16.7, or $.08 per share. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">During the third quarter of 2009, the Company sold
more than half of its remaining U.S. Healthcare business to OptionCare Enterprises,
Inc., a subsidiary of Walgreen Co., and Landauer-Metropolitan, Inc. (LMI) for
combined cash proceeds of $38.1. The Company recognized an after-tax gain
of $.3 resulting from these sales combined with adjustments to the net realizable
value of the remaining businesses. The Company expects to conclude the sale
of the remaining portions of this business in 2009. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">The operating results of the U.S.
Healthcare business have been classified as discontinued operations and are
summarized below: </div> <div align="center"> <table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">Three
Months Ended</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="7">Nine Months Ended</td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"
style="border-bottom: 0px solid #000000">30 June</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 0px
solid #000000">30 June</td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr style="font-size:
1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Sales </div></td>
<td> </td> <td align="right">$</td> <td
align="right">25.2</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">58.3</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">117.3</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">187.1</td>
<td> </td> </tr> <tr style="font-size: 10pt">
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Loss before taxes </div></td>
<td> </td> <td nowrap="nowrap" align="right">$</td>
<td align="right">(3.4</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="right">$</td>
<td align="right">(326.2</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="right">$</td>
<td align="right">(3.2</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="right">$</td>
<td align="right">(345.4</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Income tax benefit
</div></td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">(1.3</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(82.0</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(1.2</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(89.3</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Loss from operations of discontinued operations </div></td>
<td> </td> <td nowrap="nowrap" align="right">$</td>
<td align="right">(2.1</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="right">$</td>
<td align="right">(244.2</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="right">$</td>
<td align="right">(2.0</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="right">$</td>
<td align="right">(256.1</td> <td nowrap="nowrap">)</td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Income (loss) on
sale of businesses and impairment/write-down to estimated net realizable value,
net of tax </div></td> <td> </td> <td> </td>
<td align="right">.3</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">(4.8</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Loss
from discontinued operations, net of tax </div></td> <td> </td>
<td nowrap="nowrap" align="right">$</td> <td align="right">(1.8</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right">$</td> <td align="right">(244.2</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right">$</td> <td align="right">(6.8</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right">$</td> <td align="right">(256.1</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr> <!-- End Table Body --> </table> </div> <!--
Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div
style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 6pt">Details of balance sheet items
for the U.S. Healthcare business are summarized below: </div> <div
align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0"
border="0" cellpadding="0" width="100%"> <!-- Begin Table Head -->
<tr valign="bottom"> <td width="76%"> </td> <td
width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">30
June 2009</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">30 September 2008</td> </tr> <!--
End Table Head --> <!-- Begin Table Body --> <tr style="font-size:
1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Trade receivables,
less allowances </div></td> <td> </td> <td
align="right">$</td> <td align="right">10.3</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">47.7</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Inventories
</div></td> <td> </td> <td> </td>
<td align="right">1.8</td> <td> </td> <td> </td>
<td> </td> <td align="right">7.2</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Prepaid expenses </div></td>
<td> </td> <td> </td> <td align="right">.5</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1.4</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other
receivables </div></td> <td> </td> <td> </td>
<td align="right">2.9</td> <td> </td> <td> </td>
<td> </td> <td align="right">.2</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="9" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Total Current Assets </div></td>
<td> </td> <td align="right">$</td> <td
align="right">15.5</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">56.5</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr> <tr valign="bottom"><!-- Blank Space --> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Plant
and equipment, net </div></td> <td> </td>
<td align="right">$</td> <td align="right">4.3</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">58.7</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Other noncurrent assets </div></td>
<td> </td> <td> </td> <td align="right">.1</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="9" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total
Noncurrent Assets </div></td> <td> </td>
<td align="right">$</td> <td align="right">4.4</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">58.7</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top:
3px double #000000"> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Payables and accrued
liabilities </div></td> <td> </td> <td
align="right">$</td> <td align="right">18.7</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">6.8</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Current
portion long-term debt </div></td> <td> </td>
<td> </td> <td align="right">.3</td> <td> </td>
<td> </td> <td> </td> <td align="right">1.0</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Total Current Liabilities
</div></td> <td> </td> <td align="right">$</td>
<td align="right">19.0</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">7.8</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr> <tr valign="bottom"><!-- Blank Space --> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Long-term
debt </div></td> <td> </td> <td align="right">$</td>
<td align="right">.3</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">1.2</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Total Noncurrent Liabilities
</div></td> <td> </td> <td align="right">$</td>
<td align="right">.3</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">1.2</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr> <!-- End Table Body --> </table> </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt"><b>Polymer
Emulsions Business</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">On 31 January 2008, the Company completed
the sale of its interest in its vinyl acetate ethylene polymers joint ventures
to Wacker Chemie AG (Wacker), its long-time joint venture partner. The Company
recognized a gain on the sale of $89.5 ($57.7 after-tax). </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">On 30 June 2008,
the Company sold its Elkton, Md. and Piedmont, S.C. production facilities
and the related North American atmospheric emulsions and global pressure sensitive
adhesives businesses to Ashland Inc. The Company recorded a gain of $30.5
($18.5 after-tax) in connection with the sale, which included the recording
of a retained environmental obligation associated with the Piedmont site.
The sale of the Elkton and Piedmont facilities completed the disposal of the
Company’s Polymer Emulsions business. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">The operating results of the Polymer
Emulsions business have been classified as discontinued operations and are
summarized below: </div> <div align="center"> <table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">Three
Months Ended</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="7">Nine Months Ended</td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"
style="border-bottom: 0px solid #000000">30 June</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 0px
solid #000000">30 June</td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr style="font-size:
1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Sales </div></td>
<td> </td> <td align="right">$</td> <td
align="right">—</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">31.4</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">261.4</td> <td> </td> </tr>
<tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Income before taxes </div></td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">1.9</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">17.5</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Income tax provision </div></td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">.8</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">6.3</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Income from
operations of discontinued operations </div></td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">1.1</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">11.2</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Gain on sale of business, net
of tax </div></td> <td> </td> <td> </td>
<td align="right">.4</td> <td> </td> <td> </td>
<td> </td> <td align="right">18.5</td> <td> </td>
<td> </td> <td> </td> <td align="right">.4</td>
<td> </td> <td> </td> <td> </td>
<td align="right">76.2</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Income from
discontinued operations, net of tax </div></td> <td> </td>
<td align="right">$</td> <td align="right">.4</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">19.6</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">.4</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">87.4</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
3px double #000000"> </td> </tr> <!-- End Table
Body --> </table> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt"><b>HPPC Business</b> </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">In the first quarter
of 2008, the HPPC business generated sales of $22.9 and income from operations,
net of tax, of $.2. The Company closed on the sale of its HPPC business on
31 December 2007. </div> <!-- Folio --> <!-- /Folio -->
</div> <!-- PAGEBREAK --> <div style="font-family: 'Times New
Roman',Times,serif"> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 5 - us-gaap:DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>5. FINANCIAL INSTRUMENTS</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Currency
Price Risk Management</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">The Company’s 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
the policy of the Company to minimize its cash flow exposure to adverse changes
in currency and exchange rates. This is accomplished by identifying and evaluating
the risk that the Company’s cash flows will decline in value due
to changes in exchange rates, and by determining the appropriate strategies
necessary to manage such exposures. The Company’s objective is to
maintain economically balanced currency risk management strategies that provide
adequate downside protection. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt"><b>Forward Exchange Contracts</b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The Company
enters 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.
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 the Company has a net equity position. </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">The Company recognizes
these derivatives on the balance sheet at fair value. On the date the derivative
instrument is entered into, the Company generally designates the derivative
as either (1) a hedge of a forecasted transaction or of the variability
of cash flows to be received or paid related to a recognized asset or liability
(cash flow hedge), (2) a hedge of a net investment in a foreign operation
(net investment hedge), or (3) a hedge of the fair value of a recognized
asset or liability or of an unrecognized firm commitment (fair value hedge).
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In
addition to the foreign exchange contracts that are designated as hedges under
SFAS No. 133, “Accounting for Derivative Instruments and
Hedging Activities” (SFAS No. 133), the Company also hedges
foreign currency exposures utilizing forward exchange contracts that are not
designated as hedges under SFAS No. 133. These contracts are used
to hedge foreign currency-denominated monetary assets and liabilities, primarily
intercompany loans and working capital. The primary objective of these forward
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. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Option
Contracts</b> </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">The Company enters into option contracts to reduce the
cash flow exposure to foreign currency fluctuations associated with highly
anticipated export sales transactions. The Company recognizes these derivatives
on the balance sheet at fair value. On the date the derivative instrument
is entered into, the Company designates these derivatives as cash flow hedges.
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The
table below summarizes the Company’s outstanding currency price
risk management instruments as of 30 June 2009 and 30 September 2008:
</div> <div align="center"> <table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="64%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"
style="border-bottom: 1px solid #000000">30 June 2009</td> <td
style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap"
align="center" colspan="7" style="border-bottom: 1px solid #000000">30
September 2008</td> </tr> <tr style="font-size: 8pt" valign="bottom">
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">US$</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Years Average</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">US$</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Years
Average</td> </tr> <tr style="font-size: 8pt" valign="bottom">
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">Notional</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Maturity</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Notional</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Maturity</td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr style="font-size:
1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Forward exchange
contracts:</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Cash flow hedges </div></td> <td> </td>
<td align="right">$</td> <td align="right">666.4</td>
<td> </td> <td> </td> <td> </td>
<td align="right">.6</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">824.5</td>
<td> </td> <td> </td> <td> </td>
<td align="right">.6</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Net investment hedges </div></td>
<td> </td> <td> </td> <td align="right">882.0</td>
<td> </td> <td> </td> <td> </td>
<td align="right">3.5</td> <td> </td> <td> </td>
<td> </td> <td align="right">749.5</td> <td> </td>
<td> </td> <td> </td> <td align="right">4.0</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Fair value hedges </div></td>
<td> </td> <td> </td> <td align="right">3.7</td>
<td> </td> <td> </td> <td> </td>
<td align="right">.2</td> <td> </td> <td> </td>
<td> </td> <td align="right">10.3</td> <td> </td>
<td> </td> <td> </td> <td align="right">.3</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Hedges
not designated under SFAS No. 133 </div></td> <td> </td>
<td> </td> <td align="right">1,423.0</td>
<td> </td> <td> </td> <td> </td>
<td align="right">.4</td> <td> </td> <td> </td>
<td> </td> <td align="right">1,282.8</td>
<td> </td> <td> </td> <td> </td>
<td align="right">.3</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Total forward
exchange contracts </div></td> <td> </td>
<td align="right">$</td> <td align="right">2,975.1</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1.3</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">2,867.1</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1.4</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px"><b>Options:</b>
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Cash
flow hedges </div></td> <td> </td> <td
align="right">$</td> <td align="right">23.1</td> <td> </td>
<td> </td> <td> </td> <td align="right">.2</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">26.0</td> <td> </td> <td> </td>
<td> </td> <td align="right">.3</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Total options </div></td>
<td> </td> <td align="right">$</td> <td
align="right">23.1</td> <td> </td> <td> </td>
<td> </td> <td align="right">.2</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">26.0</td> <td> </td> <td> </td>
<td> </td> <td align="right">.3</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<!-- End Table Body --> </table> </div> <!-- Folio -->
<!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 6pt">In addition to the above, the Company uses foreign
currency denominated debt to hedge the foreign currency exposures of the Company’s
net investment in certain foreign affiliates. The foreign currency denominated
debt includes <font face="'Times New Roman',times,serif">€</font>1,013.0
as of 30 June 2009 and <font face="'Times New Roman',times,serif">€</font>1,450.0
as of 30 September 2008. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt"><b>Debt Portfolio Management</b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">It is the
policy of the Company to identify on a continuing basis the need for debt
capital and evaluate the financial risks inherent in funding the Company with
debt capital. Reflecting the result of this ongoing review, the debt portfolio
and hedging program of the Company are managed with the objectives and intent
to (1) reduce funding risk with respect to borrowings made by the
Company to preserve the Company’s 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. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt"><b>Interest Rate Swap Contracts</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The
Company enters into interest rate swap contracts to change the fixed/variable
interest rate mix of its 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 optimize interest
rate risks and costs inherent in the Company’s debt portfolio. In
addition, the Company also uses interest rate swap agreements to hedge the
interest rate on anticipated fixed-rate debt issuance. The notional amount
of the interest rate swap agreements are equal to or less than the designated
debt instrument being hedged. When variable-rate debt is hedged, the variable-rate
indices of the swap instruments and the debt to which they are designated
are the same. It is the Company’s policy not to enter into any interest
rate swap contracts which lever a move in interest rates on a greater than
one-to-one basis. </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt"><b>Cross Currency Interest Rate Swap Contracts</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The
Company also enters into cross currency interest rate swap contracts. 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.
These contracts effectively convert the currency denomination of a debt instrument
into another currency in which the Company has a net equity position while
changing the interest rate characteristics of the instrument. The contracts
are used to hedge intercompany and third-party borrowing transactions and
certain net investments in foreign operations. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">The following table summarizes
the interest rate swaps and cross currency interest rate swaps outstanding
as of 30 June 2009 and 30 September 2008: </div> <div
align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0"
border="0" cellpadding="0" width="100%"> <!-- Begin Table Head -->
<tr valign="bottom"> <td width="28%"> </td> <td
width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="11"
style="border-bottom: 1px solid #000000">30 June 2009</td> <td
style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap"
align="center" colspan="11" style="border-bottom: 1px solid #000000">30
September 2008</td> </tr> <tr style="font-size: 8pt" valign="bottom">
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">US$</td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Average</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">US$</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">Average</td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Notional</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 0px
solid #000000">Pay %</td> <td> </td> <td
nowrap="nowrap" align="center" colspan="3">Receive %</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Notional</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 0px
solid #000000">Pay %</td> <td> </td> <td
nowrap="nowrap" align="center" colspan="3">Receive %</td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr style="font-size:
1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swaps
(fair value hedge) </div></td> <td> </td>
<td align="right">$</td> <td align="right">321.2</td>
<td> </td> <td> </td> <td colspan="3"
align="center">6 month<br /> LIBOR</td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">4.49</td>
<td nowrap="nowrap">%</td> <td> </td> <td
align="right">$</td> <td align="right">321.9</td> <td> </td>
<td> </td> <td colspan="3" align="center">6 month<br
/> LIBOR</td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">4.49</td>
<td nowrap="nowrap">%</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Interest
rate swaps (cash flow hedge) </div></td> <td> </td>
<td align="right">$</td> <td align="right">100.0</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">3.73</td>
<td nowrap="nowrap">%</td> <td> </td> <td
colspan="3" nowrap="nowrap" align="center">3 month<br /> LIBOR</td>
<td> </td> <td align="right"> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Cross currency interest
rate swaps <br /> (net investment hedge) </div></td> <td> </td>
<td align="right">$</td> <td align="right">32.2</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">5.54</td>
<td nowrap="nowrap">%</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">5.48</td>
<td nowrap="nowrap">%</td> <td> </td> <td
align="right">$</td> <td align="right">40.3</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">5.55</td> <td nowrap="nowrap">%</td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">3.89</td> <td nowrap="nowrap">%</td>
</tr> <tr style="font-size: 1px"> <td colspan="25" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt"><b>Commodity Price Risk
Management</b> </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">The Company has entered into a limited number of commodity
swap contracts in order to reduce the cash flow exposure to changes in the
price of natural gas relative to certain oil-based feedstocks. The Company
has also entered into contracts hedging the cash flow exposure of changes
in the market price of certain metals which are raw materials used in the
fabrication of certain industrial gas equipment with the overall intent of
locking in, or minimizing its exposure to these base metals. As of 30 June 2009,
there were no outstanding contracts hedging the changes in the market price
of metals. </div> <!-- Folio --> <!-- /Folio --> </div>
<!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">The table
below summarizes the Company’s outstanding commodity contracts as
of 30 June 2009 and 30 September 2008: </div> <div
align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0"
border="0" cellpadding="0" width="100%"> <!-- Begin Table Head -->
<tr valign="bottom"> <td width="52%"> </td> <td
width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"
style="border-bottom: 1px solid #000000">30 June 2009</td> <td
style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap"
align="center" colspan="7" style="border-bottom: 1px solid #000000">30
September 2008</td> </tr> <tr style="font-size: 8pt" valign="bottom">
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Years Average</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">Years Average</td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">US$
Notional</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">Maturity</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">US$ Notional</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Maturity</td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Energy </div></td> <td> </td>
<td align="right">$</td> <td align="right">33.0</td>
<td> </td> <td> </td> <td> </td>
<td align="right">.5</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">72.6</td>
<td> </td> <td> </td> <td> </td>
<td align="right">.8</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Metals
</div></td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">4.2</td> <td> </td> <td> </td>
<td> </td> <td align="right">.2</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Total commodity contracts </div></td>
<td> </td> <td align="right">$</td> <td
align="right">33.0</td> <td> </td> <td> </td>
<td> </td> <td align="right">.5</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">76.8</td> <td> </td> <td> </td>
<td> </td> <td align="right">.8</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">The table below summarizes the
fair value and balance sheet location of the Company’s outstanding
derivatives at 30 June 2009 and 30 September 2008: </div>
<div align="center"> <table style="font-size: 10pt; text-align: left"
cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin
Table Head --> <tr valign="bottom"> <td width="28%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">30 June</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">30 September</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">30 June</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">30 September</td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td style="border-bottom: 1px solid #000000"> </td>
<td style="border-bottom: 1px solid #000000"> </td> <td
style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom:
1px solid #000000"> </td> <td nowrap="nowrap" align="center"
colspan="3" style="border-bottom: 1px solid #000000">2009</td> <td
style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap"
align="center" colspan="3" style="border-bottom: 1px solid #000000">2008</td>
<td style="border-bottom: 1px solid #000000"> </td> <td
style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom:
1px solid #000000"> </td> <td style="border-bottom: 1px
solid #000000"> </td> <td style="border-bottom: 1px solid
#000000"> </td> <td nowrap="nowrap" align="center" colspan="3"
style="border-bottom: 1px solid #000000">2009</td> <td style="border-bottom:
1px solid #000000"> </td> <td nowrap="nowrap" align="center"
colspan="3" style="border-bottom: 1px solid #000000">2008</td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Balance
Sheet</td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Balance
Sheet</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="3"> </td> <td> </td> <td
nowrap="nowrap" align="center" colspan="3"> </td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Location</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Fair
Value</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="3">Fair Value</td> <td> </td> <td
nowrap="nowrap" align="center" colspan="3">Location</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Fair Value</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Fair
Value</td> </tr> <!-- End Table Head --> <!-- Begin Table
Body --> <tr style="font-size: 1px"> <td colspan="25" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px"><b>Derivatives designated
as hedging instruments:</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign
exchange contracts </div></td> <td> </td>
<td colspan="3" align="center">Other Receivables</td> <td> </td>
<td align="right">$</td> <td align="right">26.7</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">25.1</td> <td> </td> <td> </td>
<td colspan="3" align="center">Accrued Liabilities</td> <td> </td>
<td align="right">$</td> <td align="right">27.3</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">24.4</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Interest rate swap contracts
</div></td> <td> </td> <td colspan="3"
align="center">Other Receivables</td> <td> </td>
<td> </td> <td align="right">.1</td> <td> </td>
<td> </td> <td> </td> <td align="right">1.2</td>
<td> </td> <td> </td> <td colspan="3"
align="center">Accrued Liabilities</td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Commodity swap contracts </div></td> <td> </td>
<td colspan="3" align="center">Other Receivables</td> <td> </td>
<td> </td> <td align="right">8.7</td> <td> </td>
<td> </td> <td> </td> <td align="right">5.9</td>
<td> </td> <td> </td> <td colspan="3"
align="center">Accrued Liabilities</td> <td> </td>
<td> </td> <td align="right">4.9</td> <td> </td>
<td> </td> <td> </td> <td align="right">2.5</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign
exchange contracts </div></td> <td> </td>
<td colspan="3" align="center">Other Noncurrent Assets</td> <td> </td>
<td> </td> <td align="right">16.2</td> <td> </td>
<td> </td> <td> </td> <td align="right">19.6</td>
<td> </td> <td> </td> <td colspan="3"
align="center">Other Noncurrent Liabilities</td> <td> </td>
<td> </td> <td align="right">35.9</td> <td> </td>
<td> </td> <td> </td> <td align="right">29.8</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Interest rate swap
contracts </div></td> <td> </td> <td colspan="3"
align="center">Other Noncurrent Assets</td> <td> </td>
<td> </td> <td align="right">18.7</td> <td> </td>
<td> </td> <td> </td> <td align="right">4.4</td>
<td> </td> <td> </td> <td colspan="3"
align="center">Other Noncurrent Liabilities</td> <td> </td>
<td> </td> <td align="right">4.2</td> <td> </td>
<td> </td> <td> </td> <td align="right">3.5</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Commodity
swap contracts </div></td> <td> </td> <td
colspan="3" align="center">Other Noncurrent Assets</td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1.8</td> <td> </td> <td> </td>
<td colspan="3" align="center">Other Noncurrent Liabilities</td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">.4</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Total derivatives
designated as hedging instruments </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">70.4</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">58.0</td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">72.3</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">60.6</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px"><b>Derivatives not designated as hedging instruments:</b>
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Foreign exchange contracts
</div></td> <td> </td> <td colspan="3"
align="center">Other Receivables</td> <td> </td>
<td align="right">$</td> <td align="right">17.4</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">10.2</td> <td> </td> <td> </td>
<td colspan="3" align="center">Accrued Liabilities</td> <td> </td>
<td align="right">$</td> <td align="right">29.7</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">55.0</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px"><b>Total Derivatives</b> </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td align="right"><b>$</b></td>
<td align="right"><b>87.8</b></td> <td> </td>
<td> </td> <td align="right"><b>$</b></td>
<td align="right"><b>68.2</b></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td align="right"><b>$</b></td>
<td align="right"><b>102.0</b></td> <td> </td>
<td> </td> <td align="right"><b>$</b></td>
<td align="right"><b>115.6</b></td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="25" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">Refer to Note 6 for SFAS No. 157,
Fair Value Measurements, which defines fair value, establishes a method for
measuring fair value, provides additional disclosures regarding fair value
measurements, and discusses the Company’s counterparty risk. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following
details summarize the accounting treatment of the Company’s cash
flow, fair value, net investment, and non-designated hedges: </div>
<div style="margin-top: 6pt"> <table width="100%" border="0" cellpadding="0"
cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top"
style="font-size: 10pt; color: #000000; background: transparent"> <td
width="4%" style="background: transparent"> </td> <td
width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>Changes in the fair value
of a derivative that is designated as and meets all the required criteria
for a cash flow hedge are recorded in accumulated Other Comprehensive Income
(OCI) and then recognized in earnings when the hedged items affect
earnings.</td> </tr> <tr> <td style="font-size: 6pt"> </td>
</tr> <tr valign="top" style="font-size: 10pt; color: #000000; background:
transparent"> <td width="4%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>Changes in the fair value
of a derivative that is designated as and meets all the required criteria
for a fair value hedge, along with the gain or loss on the hedged asset or
liability that is attributable to the hedged risk, are recorded in current
period earnings.</td> </tr> <tr> <td style="font-size:
6pt"> </td> </tr> <tr valign="top" style="font-size:
10pt; color: #000000; background: transparent"> <td width="4%" style="background:
transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>Changes in the fair value
of a derivative and foreign currency debt that are designated as and meet
all the required criteria for a hedge of a net investment are recorded as
translation adjustments in accumulated OCI.</td> </tr> <tr>
<td style="font-size: 6pt"> </td> </tr> <tr
valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="4%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>Changes in the fair value
of a derivative that is not designated as a hedge are recorded immediately
in earnings.</td> </tr> </table> </div> <!-- Folio
--> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div
style="font-family: 'Times New Roman',Times,serif"> <div style="margin-top:
6pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0"
style="font-size: 10pt; text-align: left"> </table> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The tables
below summarize the information related to our cash flow, net investment,
and non-designated hedges during the three and nine month periods ended 30
June 2009 and 30 June 2008. The outstanding fair value hedges
for these time periods are not material. </div> <div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="20%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="31" style="border-bottom: 1px
solid #000000">Three Months Ended 30 June 2009 and 2008</td> </tr>
<tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">Forward</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">exchange</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">Foreign
currency</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="7"> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="7"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">contracts</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">debt</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">Other
(b)</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="7">Total</td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td nowrap="nowrap" align="left"><b>Cash Flow
Hedges</b>:</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr style="font-size:
1px"> <td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Net (gain) loss
recognized in OCI (effective portion) </div></td> <td> </td>
<td nowrap="nowrap" align="right">$</td> <td align="right">(2.9</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="right">$</td> <td align="right">2.9</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">—</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="right">$</td> <td align="right">(5.2</td> <td
nowrap="nowrap">)</td> <td> </td> <td align="right">$</td>
<td align="right">.3</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="right">$</td> <td align="right">(8.1</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="right">$</td> <td align="right">3.2</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Net gain (loss) reclassified from OCI to sales/cost
of sales (effective portion) </div></td> <td> </td>
<td> </td> <td align="right">1.3</td> <td> </td>
<td> </td> <td> </td> <td align="right">.3</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1.2</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">(.5</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">2.5</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">(.2</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Net gain (loss) from OCI to other (income) expense
(ineffective portion) </div></td> <td> </td>
<td> </td> <td align="right">.2</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">.2</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px"><b>Net Investment Hedges:</b> </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Net (gain) loss recognized
in OCI </div></td> <td> </td> <td align="right">$</td>
<td align="right">29.8</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="right">$</td> <td align="right">(3.6</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="right">$</td> <td align="right">65.0</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="right">$</td>
<td align="right">(9.0</td> <td nowrap="nowrap">)</td>
<td> </td> <td align="right">$</td> <td
align="right">3.0</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">.1</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">97.8</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="right">$</td> <td align="right">(12.5</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px"><b>Non-designated Hedges</b>: </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Net (gain) loss recognized
in other (income) expense (a) </div></td> <td> </td>
<td align="right">$</td> <td align="right">.5</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">30.8</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">—</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">.5</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">30.8</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <!-- End Table Body --> </table> </div> <div
align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0"
border="0" cellpadding="0" width="100%"> <!-- Begin Table Head -->
<tr valign="bottom"> <td width="20%"> </td> <td
width="3%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="3%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="31"
style="border-bottom: 1px solid #000000">Nine Months Ended 30 June 2009
and 2008</td> </tr> <tr style="font-size: 8pt" valign="bottom">
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="7">Forward</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="7"> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">exchange</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">Foreign
currency</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="7"> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="7"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">contracts</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">debt</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">Other
(b)</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="7">Total</td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td nowrap="nowrap" align="left"><b>Cash Flow
Hedges</b>:</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr style="font-size:
1px"> <td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Net (gain) loss
recognized in OCI (effective portion) </div></td> <td> </td>
<td align="right">$</td> <td align="right">4.2</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">9.7</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="right">$</td>
<td align="right">(5.4</td> <td nowrap="nowrap">)</td>
<td> </td> <td align="right">$</td> <td
align="right">3.1</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="right">$</td> <td align="right">(1.2</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="right">$</td> <td align="right">12.8</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Net gain (loss) reclassified from OCI to sales/cost
of sales (effective portion) </div></td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">(2.2</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">3.0</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">3.6</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">(1.6</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">1.4</td> <td> </td> <td> </td>
<td> </td> <td align="right">1.4</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Net gain (loss) from
OCI to other (income) expense (ineffective portion) </div></td>
<td> </td> <td> </td> <td align="right">.1</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">.1</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="33" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Net
Investment Hedges:</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net
(gain) loss recognized in OCI </div></td> <td> </td>
<td align="right">$</td> <td align="right">8.5</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">20.3</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="right">$</td> <td align="right">(9.3</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="right">$</td> <td align="right">145.5</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="right">$</td>
<td align="right">(1.7</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="right">$</td>
<td align="right">(1.1</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="right">$</td>
<td align="right">(2.5</td> <td nowrap="nowrap">)</td>
<td> </td> <td align="right">$</td> <td
align="right">164.7</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="33" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px"><b>Non-designated
Hedges</b>: </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net
(gain) loss recognized in other (income) expense (a) </div></td>
<td> </td> <td align="right">$</td> <td
align="right">9.9</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">22.6</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">—</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">—</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">9.9</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">22.6</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="33" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <!-- End Table Body --> </table> </div> <div
align="left"> <div style="font-size: 3pt; margin-top: 3pt; width: 18%;
border-top: 0px solid #000000">  </div> </div> <table
width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size:
10pt; text-align: left"> <tr> <td width="3%"></td> <td
width="1%"></td> <td width="96"></td> </tr> <tr
valign="top"> <td nowrap="nowrap" align="left">(a)</td> <td> </td>
<td>The impact of the non-designated hedges noted above was largely
offset by gains and losses, respectively, resulting from the impact of changes
in exchange rates on recognized assets and liabilities denominated in non-functional
currencies.</td> </tr> <tr style="font-size: 3pt"> <td> </td>
</tr> <tr valign="top"> <td nowrap="nowrap" align="left">(b)</td>
<td> </td> <td>Other includes the impact on OCI
and earnings related to commodity swap contracts, interest rate swaps, and
currency option contracts.</td> </tr> </table> <div align="left"
style="font-size: 10pt; margin-top: 6pt"><b>Credit Risk-Related Contingent
Features</b> </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">Certain derivative instruments are executed under agreements
that require the Company to maintain a credit rating of at least A- from Standard
& Poor’s and A3 from Moody’s. If the Company’s
credit rating falls below these levels, 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 $19.0 and $21.5 as of 30 June 2009
and 30 September 2008, respectively. Because of the Company’s
current credit rating of A from Standard & Poor’s and A2
from Moody’s, no collateral has been posted on these liability positions.
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Counterparty
Credit Risk Management</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">The Company executes all derivative transactions
with counterparties that are highly rated financial institutions, and all
of which are investment grade at this time. Some of the Company’s
underlying derivative agreements give the Company the right to require the
institution to post collateral if its credit rating falls below A- from Standard
& Poor’s or A3 from Moody’s. These are the same
agreements referenced in Credit Risk-Related Contingent Features above. The
collateral that the counterparties would be required to post is $26.9 as of
30 June 2009 and $14.1 as of 30 September 2008. No financial
institution is required to post collateral at this time, as all have credit
ratings at or above the threshold. </div> </div> </body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 6 - us-gaap:FairValueMeasurementInputsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>6. FAIR VALUE MEASUREMENTS</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The
carrying values and fair values of financial instruments were as follows:
</div> <div align="center"> <table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"
style="border-bottom: 1px solid #ffffff">30 June 2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px
solid #ffffff">30 September 2008</td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Carrying Value</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Fair
Value</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="3">Carrying Value</td> <td> </td> <td
nowrap="nowrap" align="center" colspan="3">Fair Value</td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr style="font-size:
1px"> <td> </td> <td> </td> <td
colspan="15" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets</b>
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Derivatives
(a) </div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Foreign exchange contracts
</div></td> <td> </td> <td align="right">$</td>
<td align="right">60.3</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">60.3</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">54.9</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">54.9</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swap
contracts </div></td> <td> </td> <td> </td>
<td align="right">18.8</td> <td> </td> <td> </td>
<td> </td> <td align="right">18.8</td> <td> </td>
<td> </td> <td> </td> <td align="right">5.6</td>
<td> </td> <td> </td> <td> </td>
<td align="right">5.6</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Commodity swap contracts </div></td>
<td> </td> <td> </td> <td align="right">8.7</td>
<td> </td> <td> </td> <td> </td>
<td align="right">8.7</td> <td> </td> <td> </td>
<td> </td> <td align="right">7.7</td> <td> </td>
<td> </td> <td> </td> <td align="right">7.7</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Other investments (b)
</div></td> <td> </td> <td> </td>
<td align="right">18.5</td> <td> </td> <td> </td>
<td> </td> <td align="right">18.5</td> <td> </td>
<td> </td> <td> </td> <td align="right">31.9</td>
<td> </td> <td> </td> <td> </td>
<td align="right">31.9</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom"><!--
Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> 
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px"><b>Liabilities</b>
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Derivatives
(a) </div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Foreign exchange contracts
</div></td> <td> </td> <td align="right">$</td>
<td align="right">92.9</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">92.9</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">109.2</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">109.2</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swap
contracts </div></td> <td> </td> <td> </td>
<td align="right">4.2</td> <td> </td> <td> </td>
<td> </td> <td align="right">4.2</td> <td> </td>
<td> </td> <td> </td> <td align="right">3.5</td>
<td> </td> <td> </td> <td> </td>
<td align="right">3.5</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Commodity swap contracts </div></td>
<td> </td> <td> </td> <td align="right">4.9</td>
<td> </td> <td> </td> <td> </td>
<td align="right">4.9</td> <td> </td> <td> </td>
<td> </td> <td align="right">2.9</td> <td> </td>
<td> </td> <td> </td> <td align="right">2.9</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Long-term debt, including
current portion (c) </div></td> <td> </td>
<td> </td> <td align="right">3,759.6</td>
<td> </td> <td> </td> <td> </td>
<td align="right">3,901.9</td> <td> </td>
<td> </td> <td> </td> <td align="right">3,547.5</td>
<td> </td> <td> </td> <td> </td>
<td align="right">3,581.5</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">The methods and assumptions used
to measure the fair value of financial instruments are as follows: </div>
<div style="margin-top: 6pt"> <table width="100%" border="0" cellpadding="0"
cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top"
style="font-size: 10pt; color: #000000; background: transparent"> <td
width="2%" style="background: transparent"> </td> <td
width="3%" nowrap="nowrap" align="left">(a)</td> <td width="1%"> </td>
<td>Derivatives</td> </tr> <tr> <td style="font-size:
6pt"> </td> </tr> <tr valign="top" style="font-size:
10pt; color: #000000; background: transparent"> <td width="2%" style="background:
transparent"> </td> <td width="3%" nowrap="nowrap" align="left"> </td>
<td width="1%"> </td> <td>The fair value of the
Company’s interest rate swap agreements and foreign exchange contracts
are based on estimates using standard pricing models that take into account
the present value of future cash flows as of the balance sheet date. The computation
of the fair values of these instruments is generally performed by the Company.
These standard pricing models utilize inputs which are derived from or corroborated
by observable market data such as interest rate yield curves and currency
spot and forward rates. In addition, on an ongoing basis, the Company randomly
tests a subset of its valuations against valuations received from the counterparty
to the transaction to validate the accuracy of its standard pricing models.
The fair value of commodity swaps is based on current market price as provided
by the financial institutions with which the commodity swaps have been executed.
Counterparties to these derivative contracts are highly rated financial institutions
none of which experienced significant downgrades since 30 September 2008
that could reduce the receivable amount collectible.</td> </tr>
<tr> <td style="font-size: 6pt"> </td> </tr>
<tr valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left">(b)</td> <td width="1%"> </td>
<td>Other investments</td> </tr> <tr> <td style="font-size:
6pt"> </td> </tr> <tr valign="top" style="font-size:
10pt; color: #000000; background: transparent"> <td width="2%" style="background:
transparent"> </td> <td width="3%" nowrap="nowrap" align="left"> </td>
<td width="1%"> </td> <td>The fair value of other
investments in publicly traded companies is based on quoted market prices
from the New York and Tokyo Stock Exchanges. The fair value of other investments
is reported within other noncurrent assets on the balance sheet.</td>
</tr> <tr> <td style="font-size: 6pt"> </td>
</tr> <tr valign="top" style="font-size: 10pt; color: #000000; background:
transparent"> <td width="2%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left">(c)</td> <td width="1%"> </td>
<td>Long-term debt</td> </tr> <tr> <td style="font-size:
6pt"> </td> </tr> <tr valign="top" style="font-size:
10pt; color: #000000; background: transparent"> <td width="2%" style="background:
transparent"> </td> <td width="3%" nowrap="nowrap" align="left"> </td>
<td width="1%"> </td> <td>The fair value of the
Company’s debt is based on estimates using standard pricing models
that take into account the present value of future cash flows as of the balance
sheet date. The computation of the fair value of these instruments is generally
performed by the Company.</td> </tr> </table> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The carrying
amounts reported in the balance sheet for cash and cash items, 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. </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">As discussed
in Note 2 on New Accounting Standards, the Company adopted SFAS No. 157
as of 1 October 2008, with the exception of the application of the
Statement to nonrecurring nonfinancial assets and nonfinancial liabilities,
for which adoption has been delayed until 1 October 2009. </div>
<!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK
--> <div style="font-family: 'Times New Roman',Times,serif"> <div
align="left" style="font-size: 10pt; margin-top: 6pt">SFAS No. 157
defines fair value as an exit price (i.e., the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date). SFAS No. 157
establishes a three-level fair value hierarchy that prioritizes the inputs
to valuation techniques used to measure fair value. </div> <div style="margin-top:
6pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0"
style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size:
10pt; color: #000000; background: transparent"> <td width="4%" style="background:
transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>Level 1 — Quoted
prices (unadjusted) in active markets for identical assets or liabilities.</td>
</tr> <tr> <td style="font-size: 6pt"> </td>
</tr> <tr valign="top" style="font-size: 10pt; color: #000000; background:
transparent"> <td width="4%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>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.</td> </tr> <tr> <td style="font-size: 6pt"> </td>
</tr> <tr valign="top" style="font-size: 10pt; color: #000000; background:
transparent"> <td width="4%" style="background: transparent"> </td>
<td width="3%" nowrap="nowrap" align="left"><b>•</b></td>
<td width="1%"> </td> <td>Level 3 — Inputs
that are unobservable for the asset or liability based on the Company’s
own assumptions (about the assumptions market participants would use in pricing
the asset or liability).</td> </tr> </table> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following
table summarizes assets and liabilities measured at fair value on a recurring
basis in the consolidated balance sheet: </div> <div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="52%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td nowrap="nowrap" align="left">30 June 2009</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Total</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">Level
1</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="3">Level 2</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">Level 3</td> </tr> <!-- End Table
Head --> <!-- Begin Table Body --> <tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Assets at
Fair Value</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Derivatives (a) </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Foreign exchange contracts
</div></td> <td> </td> <td align="right">$</td>
<td align="right">60.3</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">60.3</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Interest rate swap
contracts </div></td> <td> </td> <td> </td>
<td align="right">18.8</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">18.8</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Commodity
swap contracts </div></td> <td> </td> <td> </td>
<td align="right">8.7</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">8.7</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Other investments (b)
</div></td> <td> </td> <td> </td>
<td align="right">18.5</td> <td> </td> <td> </td>
<td> </td> <td align="right">18.5</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Total Assets at Fair Value
</div></td> <td> </td> <td align="right">$</td>
<td align="right">106.3</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">18.5</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">87.8</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 3px double #000000"> </td>
</tr> <tr valign="bottom"><!-- Blank Space --> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Liabilities
at Fair Value</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Derivatives (a) </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Forward exchange contracts
</div></td> <td> </td> <td align="right">$</td>
<td align="right">92.9</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">92.9</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Interest
rate swap contracts </div></td> <td> </td>
<td> </td> <td align="right">4.2</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">4.2</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Commodity swap contracts
</div></td> <td> </td> <td> </td>
<td align="right">4.9</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">4.9</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Total Liabilities at
Fair Value </div></td> <td> </td> <td
align="right">$</td> <td align="right">102.0</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">—</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">102.0</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">—</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 3px double #000000"> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">Refer to Note 1 in the Company’s
2008 annual report on Form 10-K and Note 5 in this quarterly filing for additional
information on the Company’s accounting and reporting of the fair
value of financial instruments. </div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 7 - us-gaap:InventoryDisclosureTextBlock--> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>7. INVENTORIES</b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The components
of inventories are as follows: </div> <div align="center"> <table
style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0"
width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="76%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">30 June</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">30 September</td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">2008</td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px"><b>Inventories at FIFO Cost</b> </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Finished
goods </div></td> <td> </td> <td align="right">$</td>
<td align="right">389.7</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">365.1</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Work
in process </div></td> <td> </td> <td> </td>
<td align="right">21.8</td> <td> </td> <td> </td>
<td> </td> <td align="right">22.4</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Raw materials and supplies </div></td> <td> </td>
<td> </td> <td align="right">162.9</td> <td> </td>
<td> </td> <td> </td> <td align="right">183.5</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td> </td> <td align="right">574.4</td>
<td> </td> <td> </td> <td> </td>
<td align="right">571.0</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Less:
excess of FIFO cost over LIFO cost </div></td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">(78.6</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(67.3</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td align="right">$</td> <td
align="right">495.8</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">503.7</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 3px double #000000"> </td>
</tr> <!-- End Table Body --> </table> </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">FIFO cost approximates
replacement cost. The Company’s inventories have a high turnover,
and as a result, there is little difference between the original cost of an
item and its current replacement cost. </div> <!-- Folio --> <!--
/Folio --> </div> <!-- PAGEBREAK --> <div style="font-family:
'Times New Roman',Times,serif"> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 8 - us-gaap:ScheduleOfGoodwillTextBlock--> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>8. GOODWILL</b> </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">Changes to the carrying
amount of consolidated goodwill by segment for the nine months ended 30 June 2009
are as follows: </div> <div align="center"> <table style="font-size:
10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">Acquisition</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Currency</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">30
September</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">and</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Translation</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">30
June</td> </tr> <tr style="font-size: 8pt" valign="bottom">
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3">2008</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">Adjustments</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">and
Other</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="3">2009</td> </tr> <!-- End Table Head --> <!--
Begin Table Body --> <tr style="font-size: 1px"> <td colspan="17"
align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Merchant Gases </div></td>
<td> </td> <td align="right">$</td> <td
align="right">626.5</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">.2</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="right">$</td> <td align="right">(57.6</td> <td
nowrap="nowrap">)</td> <td> </td> <td align="right">$</td>
<td align="right">569.1</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Tonnage
Gases </div></td> <td> </td> <td> </td>
<td align="right">18.0</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">(3.1</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">14.9</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Electronics and Performance
Materials </div></td> <td> </td> <td> </td>
<td align="right">283.6</td> <td> </td> <td> </td>
<td> </td> <td align="right">9.5</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">(4.4</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">288.7</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">  </div></td> <td> </td>
<td align="right">$</td> <td align="right">928.1</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">9.7</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="right">$</td> <td align="right">(65.1</td>
<td nowrap="nowrap">)</td> <td> </td> <td
align="right">$</td> <td align="right">872.7</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 3px double #000000"> </td> </tr>
<!-- End Table Body --> </table> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">Goodwill is subject to impairment
testing at least annually. In addition, goodwill is tested more frequently
if a change in circumstances or the occurrence of events indicates that potential
impairment exists. </div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 9 - us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>9. SHARE-BASED COMPENSATION</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The
Company has various share-based compensation programs, which include stock
options, deferred stock units, and restricted shares. During the nine months
ended 30 June 2009, the Company granted 2.0 million stock
options at a weighted-average exercise price of $66.90 and an estimated fair
value of $20.86 per option. The fair value of these options was estimated
using a lattice-based option valuation model that used the following assumptions:
expected volatility of 31.2%; expected dividend yield of 2.1%; expected life
in years of 6.7-8.0; and a risk-free interest rate of 3.5%-3.9%. In addition,
the Company granted 403,470 deferred stock units at a weighted-average grant-date
fair value of $52.21 and 40,092 restricted shares at a weighted-average grant-date
fair value of $64.01. Refer to Note 15 in the Company’s 2008 annual
report on Form 10-K for information on the valuation and accounting for these
programs. </div> <div align="left" style="font-size: 10pt; margin-top:
6pt">Share-based compensation cost charged against income in the three
months ended 30 June 2009 was $15.0 ($9.2 after-tax). Of the share-based
compensation cost recognized, $10.7 was a component of selling and administrative
expense, $1.9 a component of cost of sales, $1.3 a component of research and
development, and $1.1 a component of the global cost reduction plan. Share-based
compensation cost charged against income in the three months ended 30 June 2008
was $14.1 ($8.7 after-tax). </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">Share-based compensation cost charged against income
in the nine months ended 30 June 2009 was $45.1 ($27.7 after-tax).
Of the share-based compensation cost recognized, $33.4 was a component of
selling and administrative expense, $6.2 a component of cost of sales, $4.0
a component of research and development, and $1.5 a component of the global
cost reduction plan. Share-based compensation cost charged against income
in the nine months ended 30 June 2008 was $47.1 ($29.0 after-tax).
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The
amount of share-based compensation cost capitalized in 2009 and 2008 was not
material. </div> <!-- Folio --> <!-- /Folio --> </div>
<!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif">
</div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 10 - us-gaap:EarningsPerShareTextBlock--> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>10. EARNINGS PER SHARE</b> </div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">The following
table sets forth the computation of basic and diluted earnings per share (EPS):
</div> <div align="center"> <table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">Three
Months Ended</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="7">Nine Months Ended</td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">30
June</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="7">30 June</td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr style="font-size:
1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>NUMERATOR</b>
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Used
in basic and diluted EPS </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Income from continuing
operations </div></td> <td> </td> <td
align="right">$</td> <td align="right">114.6</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">295.0</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">393.9</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">817.1</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Loss
from discontinued operations </div></td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">(1.4</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(224.9</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(6.5</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(169.0</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Net Income </div></td>
<td> </td> <td align="right">$</td> <td
align="right">113.2</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">70.1</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">387.4</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">648.1</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px"><b>DENOMINATOR </b>(in millions) </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Weighted
average number of common shares used in basic EPS </div></td>
<td> </td> <td> </td> <td align="right">209.8</td>
<td> </td> <td> </td> <td> </td>
<td align="right">211.2</td> <td> </td> <td> </td>
<td> </td> <td align="right">209.6</td> <td> </td>
<td> </td> <td> </td> <td align="right">212.8</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Effect of dilutive
securities </div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Employee stock options </div></td>
<td> </td> <td> </td> <td align="right">3.1</td>
<td> </td> <td> </td> <td> </td>
<td align="right">6.0</td> <td> </td> <td> </td>
<td> </td> <td align="right">2.2</td> <td> </td>
<td> </td> <td> </td> <td align="right">6.0</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Other award plans </div></td>
<td> </td> <td> </td> <td align="right">1.1</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1.0</td> <td> </td> <td> </td>
<td> </td> <td align="right">1.0</td> <td> </td>
<td> </td> <td> </td> <td align="right">1.1</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td> </td> <td align="right">4.2</td>
<td> </td> <td> </td> <td> </td>
<td align="right">7.0</td> <td> </td> <td> </td>
<td> </td> <td align="right">3.2</td> <td> </td>
<td> </td> <td> </td> <td align="right">7.1</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Weighted average number of common shares and dilutive
potential common shares used in diluted EPS </div></td> <td> </td>
<td> </td> <td align="right">214.0</td> <td> </td>
<td> </td> <td> </td> <td align="right">218.2</td>
<td> </td> <td> </td> <td> </td>
<td align="right">212.8</td> <td> </td> <td> </td>
<td> </td> <td align="right">219.9</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px"><b>BASIC EPS</b>
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Income
from continuing operations </div></td> <td> </td>
<td align="right">$</td> <td align="right">.55</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">1.40</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">1.88</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">3.84</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Loss from discontinued operations
</div></td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">(.01</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(1.07</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(.03</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(.79</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Net Income </div></td> <td> </td>
<td align="right">$</td> <td align="right">.54</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">.33</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">1.85</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">3.05</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px"><b>DILUTED EPS</b> </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Income from continuing
operations </div></td> <td> </td> <td
align="right">$</td> <td align="right">.54</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">1.35</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">1.85</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">3.72</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Loss from discontinued operations
</div></td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">(.01</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(1.03</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(.03</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(.77</td>
<td nowrap="nowrap">)</td> </tr> <tr style="font-size:
1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Net Income </div></td> <td> </td>
<td align="right">$</td> <td align="right">.53</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">.32</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">1.82</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">2.95</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
1px solid #000000"> </td> </tr> <!-- End Table
Body --> </table> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt; margin-left: 2%">Options on 4.6 million
and 7.3 million shares were antidilutive and therefore excluded from
the computation of diluted earnings per share for the three and nine months
ended 30 June 2009, respectively. Options on 1.2 million
shares were antidilutive and therefore excluded from the computation for the
three and nine months ended 30 June 2008. </div> <!-- Folio
--> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div
style="font-family: 'Times New Roman',Times,serif"> </div> </body>
</html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 11 - us-gaap:PensionAndOtherPostretirementBenefitsDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>11. RETIREMENT BENEFITS</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The
components of net pension cost for the defined benefit pension plans and other
postretirement benefit cost were as follows: </div> <div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="52%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="15">Three Months Ended 30
June</td> </tr> <tr style="font-size: 8pt" valign="bottom">
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="3" style="border-bottom: 1px solid #000000">2009</td>
<td style="border-bottom: 1px solid #000000"> </td> <td
nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid
#000000">2008</td> <td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000">2009</td> <td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000">2008</td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="7">Pension Benefits</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">Other
Benefits</td> </tr> <!-- End Table Head --> <!-- Begin
Table Body --> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Service cost </div></td>
<td> </td> <td align="right">$</td> <td
align="right">15.2</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">19.4</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">.8</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">1.4</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Interest cost </div></td>
<td> </td> <td> </td> <td align="right">46.2</td>
<td> </td> <td> </td> <td> </td>
<td align="right">45.3</td> <td> </td> <td> </td>
<td> </td> <td align="right">1.7</td> <td> </td>
<td> </td> <td> </td> <td align="right">1.4</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected
return on plan assets </div></td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">(50.5</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(51.8</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Prior service cost
(credit) amortization </div></td> <td> </td>
<td> </td> <td align="right">1.0</td> <td> </td>
<td> </td> <td> </td> <td align="right">.8</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">(.3</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(.3</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Actuarial loss amortization </div></td>
<td> </td> <td> </td> <td align="right">3.8</td>
<td> </td> <td> </td> <td> </td>
<td align="right">9.2</td> <td> </td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">(.1</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">.5</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Settlement
and curtailment charges </div></td> <td> </td>
<td> </td> <td align="right">11.8</td> <td> </td>
<td> </td> <td> </td> <td align="right">1.0</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Special
termination benefits </div></td> <td> </td>
<td> </td> <td align="right">14.4</td> <td> </td>
<td> </td> <td> </td> <td align="right">.2</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Other </div></td>
<td> </td> <td> </td> <td align="right">.4</td>
<td> </td> <td> </td> <td> </td>
<td align="right">.9</td> <td> </td> <td> </td>
<td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Net periodic benefit cost </div></td>
<td> </td> <td align="right">$</td> <td
align="right">42.3</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">25.0</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">2.1</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">3.0</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <!-- End Table Body --> </table> </div> <div
align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0"
border="0" cellpadding="0" width="100%"> <!-- Begin Table Head -->
<tr valign="bottom"> <td width="52%"> </td> <td
width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="15">Nine
Months Ended 30 June</td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000">2009</td> <td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000">2008</td> <td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000">2009</td> <td style="border-bottom: 1px solid #000000"> </td>
<td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px
solid #000000">2008</td> </tr> <tr style="font-size: 8pt"
valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="7">Pension Benefits</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">Other
Benefits</td> </tr> <!-- End Table Head --> <!-- Begin
Table Body --> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Service cost </div></td>
<td> </td> <td align="right">$</td> <td
align="right">45.0</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">58.6</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">3.1</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">4.4</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Interest cost </div></td>
<td> </td> <td> </td> <td align="right">137.2</td>
<td> </td> <td> </td> <td> </td>
<td align="right">136.5</td> <td> </td> <td> </td>
<td> </td> <td align="right">4.8</td> <td> </td>
<td> </td> <td> </td> <td align="right">4.3</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected
return on plan assets </div></td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">(149.1</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(155.9</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Prior service cost
(credit) amortization </div></td> <td> </td>
<td> </td> <td align="right">3.0</td> <td> </td>
<td> </td> <td> </td> <td align="right">2.4</td>
<td> </td> <td> </td> <td nowrap="nowrap"
align="right"> </td> <td align="right">(1.0</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(1.0</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px">Actuarial loss amortization </div></td>
<td> </td> <td> </td> <td align="right">11.2</td>
<td> </td> <td> </td> <td> </td>
<td align="right">28.9</td> <td> </td> <td> </td>
<td> </td> <td align="right">.2</td> <td> </td>
<td> </td> <td> </td> <td align="right">1.3</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:15px; text-indent:-15px">Settlement and curtailment
charges </div></td> <td> </td> <td> </td>
<td align="right">11.8</td> <td> </td> <td> </td>
<td> </td> <td align="right">28.7</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Special termination
benefits </div></td> <td> </td> <td> </td>
<td align="right">29.2</td> <td> </td> <td> </td>
<td> </td> <td align="right">.7</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:15px;
text-indent:-15px">Other </div></td> <td> </td>
<td> </td> <td align="right">1.2</td> <td> </td>
<td> </td> <td> </td> <td align="right">1.9</td>
<td> </td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Net periodic benefit
cost </div></td> <td> </td> <td align="right">$</td>
<td align="right">89.5</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">101.8</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">7.1</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">9.0</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <!-- End Table Body --> </table> </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">Special termination
benefits for the three and nine months ended 30 June 2009 included
$14.4 and $28.8 for the global cost reduction plan, respectively. The global
cost reduction charge for the third quarter of 2009 also included $3.8 for
curtailment losses related to the U.K. pension plans. </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">For the nine months
ended 30 June 2009, pension contributions of $169.5 were made. Total
contributions for 2009 are expected to be approximately $185. For the nine
months ended 30 June 2008, pension contributions of $123.0 were made. During
2008, total contributions were $234.0. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">The Company’s supplemental pension plan
provides for a lump sum benefit payment option at the time of retirement,
or for corporate officers six months after the participant’s retirement
date. The Company recognizes pension settlements when payments exceed the
sum of service and interest cost components of net periodic pension cost of
the plan for the fiscal year. A settlement loss is recognized when the pension
obligation is settled. Based on the timing of when cash payments were made,
the Company recognized an $8.0 ($5.0 after-tax, or $.02 per share) charge
in the third quarter of 2009. An additional $2 to $3 for settlement losses
is expected to be recognized in the fourth quarter of 2009. For the three
and nine months ended 30 June 2008, the Company recognized $1.0 and
$28.7 ($17.9 after-tax, or $.08 per share) of settlement charges, respectively.
</div> <!-- Folio --> <!-- /Folio --> </div> <!--
PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif">
</div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 12 - us-gaap:CommitmentsAndContingenciesDisclosureTextBlock-->
<div style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>12. COMMITMENTS AND
CONTINGENCIES</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt"><b>Litigation</b> </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">The Company is involved
in various legal proceedings, including competition, environmental, health,
safety, product liability, and insurance matters. In the third quarter of
2008, a unit of the Brazilian Ministry of Justice issued a report (previously
issued in January 2007, and then withdrawn) on its investigation
of the Company’s Brazilian subsidiary, Air Products Brazil Ltda.,
and several other Brazilian industrial gas companies. The report recommended
that the Brazilian Administrative Council for Economic Defense impose sanctions
on Air Products Brazil Ltda. and the other industrial gas companies for alleged
anticompetitive activities. The Company intends to defend this action and
cannot, at this time, reasonably predict the ultimate outcome of the proceedings
or sanctions, if any, that will be imposed. While the Company does not expect
that any sums it may have to pay in connection with this or any other legal
proceeding would have a materially adverse effect on its consolidated financial
position or net cash flows, a future charge for regulatory fines or damage
awards could have a significant impact on the Company’s net income
in the period in which it is recorded. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt"><b>Environmental</b> </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">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 sheet at 30 June 2009 and 30 September 2008 included
an accrual of $95.5 and $82.9, respectively, primarily as part of other noncurrent
liabilities. The environmental liabilities will be paid over a period of up
to 30 years. The Company estimates the exposure for environmental
loss contingencies to range from $95 to a reasonably possible upper exposure
of $109 as of 30 June 2009. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">During the first quarter of 2009, the Company recognized
a $16.0 environmental liability associated with a production facility. The
Company is required by state law to investigate and remediate a site upon
its sale. In the first quarter of 2009, management committed to a plan to
sell this facility. The Company estimates that it will take at least several
years to complete the remediation efforts at this site. </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt">Refer to Note 19
to the Consolidated Financial Statements in the Company’s 2008 annual
report on Form 10-K for information on the Company’s environmental
accruals related to the Pace, Florida and Piedmont, S.C. facilities. At 30
June 2009, the accrual balances associated with the Pace, Florida
and Piedmont, S.C. facilities totaled $38.5 and $22.5, respectively. </div>
<!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK
--> <div style="font-family: 'Times New Roman',Times,serif"> </div>
</body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 13 - us-gaap:SegmentReportingDisclosureTextBlock--> <div
style="font-family: 'Times New Roman',Times,serif"> <div align="left"
style="font-size: 10pt; margin-top: 12pt"><b>13. BUSINESS SEGMENT
AND GEOGRAPHIC INFORMATION</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">The Company’s segments are organized based
on differences in product and/or type of customer. The Company has four business
segments consisting of Merchant Gases, Tonnage Gases, Electronics and Performance
Materials, and Equipment and Energy. </div> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>Business Segment Information</b>
</div> <div align="center"> <table style="font-size: 10pt;
text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --> <tr valign="bottom"> <td width="52%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">Three
Months Ended</td> <td> </td> <td nowrap="nowrap"
align="center" colspan="7">Nine Months Ended</td> </tr> <tr
style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7"
style="border-bottom: 1px solid #ffffff">30 June</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px
solid #ffffff">30 June</td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr style="font-size:
1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Revenues from
External Customers</b> </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Merchant Gases </div></td> <td> </td>
<td align="right">$</td> <td align="right">882.6</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">1,087.3</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">2,678.2</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">3,097.7</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Tonnage
Gases </div></td> <td> </td> <td> </td>
<td align="right">565.0</td> <td> </td> <td> </td>
<td> </td> <td align="right">975.8</td> <td> </td>
<td> </td> <td> </td> <td align="right">1,933.6</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2,634.1</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Electronics and Performance Materials </div></td>
<td> </td> <td> </td> <td align="right">409.2</td>
<td> </td> <td> </td> <td> </td>
<td align="right">579.7</td> <td> </td> <td> </td>
<td> </td> <td align="right">1,148.0</td>
<td> </td> <td> </td> <td> </td>
<td align="right">1,656.1</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Equipment and Energy
</div></td> <td> </td> <td> </td>
<td align="right">119.4</td> <td> </td> <td> </td>
<td> </td> <td align="right">106.9</td> <td> </td>
<td> </td> <td> </td> <td align="right">367.1</td>
<td> </td> <td> </td> <td> </td>
<td align="right">311.9</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Segment
and Consolidated Totals </div></td> <td> </td>
<td align="right">$</td> <td align="right">1,976.2</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">2,749.7</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">6,126.9</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">7,699.8</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom"><!-- Blank Space --> <td>
<div style="margin-left:15px; text-indent:-15px">  </div></td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Operating
Income</b> </div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Merchant
Gases </div></td> <td> </td> <td align="right">$</td>
<td align="right">168.8</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">204.3</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">495.5</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">593.3</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Tonnage
Gases </div></td> <td> </td> <td> </td>
<td align="right">87.6</td> <td> </td> <td> </td>
<td> </td> <td align="right">125.5</td> <td> </td>
<td> </td> <td> </td> <td align="right">294.4</td>
<td> </td> <td> </td> <td> </td>
<td align="right">347.7</td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Electronics
and Performance Materials </div></td> <td> </td>
<td> </td> <td align="right">39.0</td> <td> </td>
<td> </td> <td> </td> <td align="right">70.4</td>
<td> </td> <td> </td> <td> </td>
<td align="right">52.5</td> <td> </td> <td> </td>
<td> </td> <td align="right">204.0</td> <td> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:30px; text-indent:-15px">Equipment and Energy
</div></td> <td> </td> <td> </td>
<td align="right">13.1</td> <td> </td> <td> </td>
<td> </td> <td align="right">4.0</td> <td> </td>
<td> </td> <td> </td> <td align="right">36.4</td>
<td> </td> <td> </td> <td> </td>
<td align="right">23.3</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Segment
Totals </div></td> <td> </td> <td align="right">$</td>
<td align="right">308.5</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">404.2</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">878.8</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">1,168.3</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Global
cost reduction plan (a) </div></td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">(124.0</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">(298.2</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Customer bankruptcy
and asset actions </div></td> <td> </td>
<td nowrap="nowrap" align="right"> </td> <td align="right">(32.1</td>
<td nowrap="nowrap">)</td> <td> </td> <td> </td>
<td align="right">—</td> <td> </td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">(32.1</td> <td nowrap="nowrap">)</td>
<td> </td> <td> </td> <td align="right">—</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Pension
settlement </div></td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(8.0</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(1.0</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(8.0</td>
<td nowrap="nowrap">)</td> <td> </td> <td
nowrap="nowrap" align="right"> </td> <td align="right">(28.7</td>
<td nowrap="nowrap">)</td> </tr> <tr valign="bottom">
<td> <div style="margin-left:30px; text-indent:-15px">Other </div></td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">(.6</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">(9.5</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">(22.2</td> <td nowrap="nowrap">)</td>
<td> </td> <td nowrap="nowrap" align="right"> </td>
<td align="right">(16.9</td> <td nowrap="nowrap">)</td>
</tr> <tr style="font-size: 1px"> <td colspan="17" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:15px; text-indent:-15px">Consolidated Totals </div></td>
<td> </td> <td align="right">$</td> <td
align="right">143.8</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">393.7</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">518.3</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">1,122.7</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="17" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <!-- End Table Body --> </table> </div> <div
align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0"
border="0" cellpadding="0" width="100%"> <!-- Begin Table Head -->
<tr valign="bottom"> <td width="76%"> </td> <td
width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
<td width="5%"> </td> <td width="3%"> </td>
<td width="1%"> </td> <td width="3%"> </td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">30
June</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="3">30 September</td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td>
<td nowrap="nowrap" align="center" colspan="3">2008</td> </tr>
<!-- End Table Head --> <!-- Begin Table Body --> <tr style="font-size:
1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px"><b>Identifiable
Assets </b>(b) </div></td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Merchant Gases </div></td>
<td> </td> <td align="right">$</td> <td
align="right">4,729.6</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">4,881.6</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Tonnage
Gases </div></td> <td> </td> <td> </td>
<td align="right">3,398.0</td> <td> </td>
<td> </td> <td> </td> <td align="right">3,335.4</td>
<td> </td> </tr> <tr valign="bottom"> <td>
<div style="margin-left:30px; text-indent:-15px">Electronics and Performance
Materials </div></td> <td> </td> <td> </td>
<td align="right">2,205.2</td> <td> </td>
<td> </td> <td> </td> <td align="right">2,341.0</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Equipment
and Energy </div></td> <td> </td> <td> </td>
<td align="right">304.6</td> <td> </td> <td> </td>
<td> </td> <td align="right">300.2</td> <td> </td>
</tr> <tr style="font-size: 1px"> <td colspan="9" align="left"
style="border-top: 1px solid #000000"> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Segment
Totals </div></td> <td> </td> <td> </td>
<td align="right">10,637.4</td> <td> </td>
<td> </td> <td> </td> <td align="right">10,858.2</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Other
</div></td> <td> </td> <td> </td>
<td align="right">765.6</td> <td> </td> <td> </td>
<td> </td> <td align="right">775.2</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Discontinued operations </div></td> <td> </td>
<td> </td> <td align="right">19.9</td> <td> </td>
<td> </td> <td> </td> <td align="right">115.3</td>
<td> </td> </tr> <tr style="font-size: 1px">
<td colspan="9" align="left" style="border-top: 1px solid #000000"> </td>
</tr> <tr valign="bottom" style="background: #cceeff"> <td>
<div style="margin-left:15px; text-indent:-15px">Consolidated Totals
</div></td> <td> </td> <td align="right">$</td>
<td align="right">11,422.9</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">11,748.7</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top:
1px solid #000000"> </td> </tr> <!-- End Table
Body --> </table> </div> <div style="margin-top: 3pt">
<table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size:
10pt; text-align: left"> <tr> <td width="3%"></td> <td
width="1%"></td> <td width="96"></td> </tr> <tr
valign="top"> <td nowrap="nowrap" align="left">(a)</td> <td> </td>
<td>Information about this charge at the segment level is discussed
in Note 3.</td> </tr> <tr style="font-size: 3pt"> <td> </td>
</tr> <tr valign="top"> <td nowrap="nowrap" align="left">(b)</td>
<td> </td> <td>Identifiable assets are equal to
total assets less investments in and advances to equity affiliates.</td>
</tr> </table> </div> <!-- Folio --> <!-- /Folio
--> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times
New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top:
12pt"><b>Geographic Information</b> </div> <div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0"
cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom">
<td width="52%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> <td width="5%"> </td>
<td width="3%"> </td> <td width="1%"> </td>
<td width="3%"> </td> </tr> <tr style="font-size:
8pt" valign="bottom"> <td> </td> <td> </td>
<td nowrap="nowrap" align="center" colspan="7">Three Months Ended</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="7">Nine
Months Ended</td> </tr> <tr style="font-size: 8pt" valign="bottom">
<td> </td> <td> </td> <td nowrap="nowrap"
align="center" colspan="7" style="border-bottom: 1px solid #ffffff">30
June</td> <td> </td> <td nowrap="nowrap" align="center"
colspan="7" style="border-bottom: 1px solid #ffffff">30 June</td>
</tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">2008</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">2009</td>
<td> </td> <td nowrap="nowrap" align="center" colspan="3">2008</td>
</tr> <!-- End Table Head --> <!-- Begin Table Body -->
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom"
style="background: #cceeff"> <td> <div style="margin-left:15px;
text-indent:-15px"><b>Revenues from External Customers</b>
</div></td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> <td> </td>
<td> </td> <td> </td> </tr>
<tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">North
America </div></td> <td> </td> <td align="right">$</td>
<td align="right">929.1</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">1,366.7</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">3,018.4</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">3,744.9</td> <td> </td> </tr>
<tr valign="bottom" style="background: #cceeff"> <td> <div
style="margin-left:30px; text-indent:-15px">Europe </div></td>
<td> </td> <td> </td> <td align="right">663.3</td>
<td> </td> <td> </td> <td> </td>
<td align="right">895.7</td> <td> </td> <td> </td>
<td> </td> <td align="right">2,042.9</td>
<td> </td> <td> </td> <td> </td>
<td align="right">2,559.8</td> <td> </td>
</tr> <tr valign="bottom"> <td> <div style="margin-left:30px;
text-indent:-15px">Asia </div></td> <td> </td>
<td> </td> <td align="right">336.0</td> <td> </td>
<td> </td> <td> </td> <td align="right">430.1</td>
<td> </td> <td> </td> <td> </td>
<td align="right">931.7</td> <td> </td> <td> </td>
<td> </td> <td align="right">1,237.5</td>
<td> </td> </tr> <tr valign="bottom" style="background:
#cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Latin
America </div></td> <td> </td> <td> </td>
<td align="right">47.8</td> <td> </td> <td> </td>
<td> </td> <td align="right">57.2</td> <td> </td>
<td> </td> <td> </td> <td align="right">133.9</td>
<td> </td> <td> </td> <td> </td>
<td align="right">157.6</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
1px solid #000000"> </td> </tr> <tr valign="bottom">
<td> <div style="margin-left:15px; text-indent:-15px">Total </div></td>
<td> </td> <td align="right">$</td> <td
align="right">1,976.2</td> <td> </td> <td> </td>
<td align="right">$</td> <td align="right">2,749.7</td>
<td> </td> <td> </td> <td align="right">$</td>
<td align="right">6,126.9</td> <td> </td>
<td> </td> <td align="right">$</td> <td
align="right">7,699.8</td> <td> </td> </tr>
<tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top:
1px solid #000000"> </td> </tr> <!-- End Table
Body --> </table> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">Geographic information is based on country of origin.
The Europe segment operates principally in Belgium, France, Germany, the Netherlands,
Poland, the U.K. and Spain. The Asia segment operates principally in China,
Japan, Korea, and Taiwan. </div> </div> </body> </html>
<!--DOCTYPE html PUBLIC "-//W3C//DTD
XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"
--> <html> <head></head> <body> <!-- Begin Block
Tagged Note 14 - apd:SupplementalInformationTextBlock--> <div style="font-family:
'Times New Roman',Times,serif"> <div align="left" style="font-size:
10pt; margin-top: 12pt"><b>14. SUPPLEMENTAL INFORMATION</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Customer
Bankruptcy and Asset Actions</b> </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">As a result of events which occurred during the
third quarter of 2009, the Company recognized a $22.2 charge primarily for
the write-off of certain receivables due to a customer bankruptcy. This customer,
who principally receives product from the Tonnage Gases segment, began operating
under Chapter 11 bankruptcy protection on 6 January 2009.
Sales and operating income associated with this customer are not material
to the Tonnage Gases segment’s results. At 30 June 2009,
the Company had remaining outstanding receivables with the customer of $16.4.
At the present time, the Company does not expect to recognize additional charges
related to this customer. </div> <div align="left" style="font-size:
10pt; margin-top: 6pt">Additionally, the Company recorded a charge of $9.9
for other asset actions which consisted of the closure of certain manufacturing
facilities. This charge was reflected in cost of sales on the consolidated
income statement. The customer bankruptcy charge combined with this asset
write-down resulted in a total charge of $32.1 ($21.0 after-tax, or $.10 per
share). </div> <div align="left" style="font-size: 10pt; margin-top:
6pt"><b>Share Repurchase Program</b> </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt">On 20 September 2007,
the Board of Directors authorized the repurchase of up to $1,000 of the Company’s
outstanding common stock. During the nine months ended 30 June 2009,
the Company did not purchase any shares under this authorization. At 30 June 2009,
$649.2 in share repurchase authorization remains. </div> <div align="left"
style="font-size: 10pt; margin-top: 6pt"><b>Industrial Revenue Bonds</b>
</div> <div align="left" style="font-size: 10pt; margin-top: 6pt">During
the first quarter of 2009, the Company issued two Industrial Revenue Bonds
totaling $80.0, the proceeds of which must be held in escrow until related
project spending occurs. As of 30 June 2009 and 30 September 2008,
$95.4 and $181.2 were held in escrow from Industrial Revenue Bond issuances
and classified as other noncurrent assets, respectively. </div> <div
align="left" style="font-size: 10pt; margin-top: 6pt"><b>Subsequent
Events</b> </div> <div align="left" style="font-size: 10pt;
margin-top: 6pt">As discussed in Note 2, New Accounting Standards, the
Company adopted the requirements of SFAS No. 165 and has evaluated subsequent
events from 30 June 2009 to the filing date of this report on the
Form 10-Q. There were no subsequent events required to be recognized or disclosed
in the financial statements. </div> </div> </body> </html>
0
0 22200000
22200000 1049200000
1040700000
50100000
4100000
-119500000
600000
0
67700000
314800000
48700000
1117700000
400700000
504300000
144800000
84800000
29800000
1800000
1100000
822600000
820600000
-400000
7000000
-236000000
99200000
505300000
569400000
-160500000
-74900000
-13800000
0
-22700000
-22700000
38600000
7300000
15800000
8700000
20700000
3700000
7300000
4700000
-10300000
0
-13600000
-13600000
30600000 3600000
13700000 5700000
349400000
445600000
18400000
30100000
N/A
false
--09-30
2009-06-30
10-Q
0000002969
210081686
Yes
Large Accelerated
Filer 19400000000
AIR PRODUCTS
AND CHEMICALS, INC. No Yes
1665600000
1299700000
1575200000
1332600000
87000000 84700000
8373800000
8579700000
-549300000
-803600000
811700000
821600000
82700000
-38500000
12571300000 12243500000
2848100000 2571100000
56600000
15500000
58700000
4400000
40500000
126200000
103500000
70300000
85700000
-33200000
1.26
0.44
1.34
0.45
1
1
249455584
249455584
249400000 249400000
739900000
66100000
97300000
360600000
5666300000
2041100000
4497100000
1427500000
152000000
115300000
-69600000
-41600000
626600000
591000000
28700000
1000000
8000000
8000000
647800000
614800000
3.05 0.33
1.85 0.54
2.95 0.32
1.82
0.53 5100000
-1800000
928100000 872700000
817100000
295000000
393900000
114600000
3.84
1.4
1.88
0.55
3.72
1.35
1.85
0.54
-169000000
-224900000
-6500000
-1400000
-0.79
-1.07
-0.03
-0.01
-0.77
-1.03
-0.03
-0.01
114200000
46500000
80000000
28500000
-59600000
-45500000
282400000 98100000
99000000
25400000 -20700000
-313200000
-195900000
160000000
-39500000
-10800000
-26400000
-17700000
-3700000
16100000
135600000
-82200000
289600000
251400000
119200000 39500000
94000000 27500000
503700000 495800000
7404400000 7180600000
12571300000
12243500000
2212000000 1792800000
8000000
19000000
1200000
300000
32100000 3800000
3515400000 3755800000
136200000 134600000
-538200000
-109700000
-510700000
-778900000
1129500000
857200000
648100000 70100000
387400000 113200000
18200000
7600000
11400000
4800000
1122700000 393700000
518300000 143800000
504100000 478900000
136600000
-10800000
-284700000
253400000
-53700000
0
-62500000
8100000
-25800000
-30500000
91800000
-4000000
-290100000
247400000
-14200000
-3000000
-300000
5400000
-7700000
-1300000
-200000
2600000
-1700000
2500000
1800000
2600000
-800000
1400000
1100000
1500000
17800000
0
560200000
0
256100000
278800000
2000000
29800000
791400000
899300000
123000000 169500000
107700000 96000000
419500000
39000000
479800000
120900000
80900000
14900000
14988600000
15254700000
6614800000
6675000000
96700000 70000000
97700000
33100000
86900000
24100000
0 0
298200000 124000000
6990200000
7086600000
7699800000 2749700000
6126900000 1976200000
815000000
284400000
709900000
232300000
47100000 45100000
419300000 385600000
5030700000 4928300000
40120957 39373898
2471300000 2425700000
219900000
218200000
212800000
214000000
212800000
211200000
209600000
209800000
Pension plan contributions in 2009
and 2008 were $169.5 and $123.0, respectively. In the second quarter of 2008,
the Company completed the sale of its Polymer Emulsions business as discussed
in Note 4. Accordingly, the related foreign currency translation results of
this business were reclassified from other comprehensive income into earnings.
Amounts reclassified from other
comprehensive income into earnings in 2009 and 2008 were not material. See
Note 5.