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Business Separation, Restructuring, and Cost Reduction Actions
 12 Months Ended
Sep. 30, 2016
Restructuring and Related Activities [Abstract]  
Business Separation, Restructuring, and Cost Reduction Actions

The charges we record for business restructuring and cost reduction actions have been excluded from segment operating income.

During fiscal year 2016, we recognized a net gain of $0.7 million. The 2016 net gain included a charge of $2.5 million for severance and other benefits related to the elimination of approximately 90 positions as part of cost reduction actions. In addition, we recognized a gain of $3.2 million on assets that were previously written down to a carrying value of $17.9 million. The gain included $1.4 million related to the sale of the onsite ammonia assets. The majority of these actions pertain to the Materials segment.

During fiscal year 2016, we also incurred costs of $1.6 million related to the Separation.

In fiscal year 2015, we recognized an expense of $21.6 million. Severance and other benefits totaled $14.4 million, including an allocation of expenses incurred by the parent, and related to the elimination of approximately 260 positions. Asset actions totaled $7.2 million and primarily related to the exit of a product line (onsite ammonia) in the Materials segment, which resulted in the write-down of assets to fair value based on internal estimates, and adjustments to expenses recorded for the 2013 plan actions. In the second quarter of 2016, we sold the onsite ammonia assets for $17.1 million which resulted in a before-tax gain of $1.4 million. The 2015 charges related to the segments as follows: $12.3 million in Materials, $5.8 million in Delivery Systems and Services, and $3.5 million in Corporate.

On September 18, 2014, Air Products announced plans to reorganize, including realignment of its businesses in new reporting segments and other organizational changes, effective as of October 1, 2014. As a result of this reorganization, we incurred severance and other charges.

During the fourth quarter of fiscal year 2014, we incurred severance and other charges of $1.3 million relating to the elimination of certain positions.

The following table summarizes the carrying amount of the accrual for the business realignment and reorganization at September 30, 2016:
 
Severance and
Other Benefits
 
Asset
Actions/Other
 
Total
(In millions)
 
 
 
 
 
2014 Charge
$
1.3

 
$
—

 
$
1.3

Cash payments(A)
(0.4
)
 
—

 
(0.4
)
September 30, 2014
$
0.9

 
$
—

 
$
0.9

2015 Charge
14.4

 
7.2

 
21.6

Cash payments(A)
(11.2
)
 
—

 
(11.2
)
Non-cash expenses
—

 
(7.2
)
 
(7.2
)
September 30, 2015
$
4.1

 
$
—

 
$
4.1

2016 Charge
2.5

 
(3.2
)
 
(0.7
)
Cash (payments) receipts(A)
(6.0
)
 
4.2

 
(1.8
)
Noncash expenses
—

 
(1.0
)
 
(1.0
)
September 30, 2016
$
0.6

 
$
—

 
$
0.6


(A) 
Cash payments include an allocation of severance and other benefits of Air Products’ employees within its Corporate and other segment which were paid by Air Products.