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Business Separation, Restructuring, and Cost Reduction Actions
 12 Months Ended
Sep. 30, 2017
Restructuring and Related Activities [Abstract]  
Business Separation, Restructuring, and Cost Reduction Actions
5.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 2017, we recognized a net charge of $25.5 million. The net charge primarily consisted of additional costs as a result of the relocation of certain research and development activities and headquarters and set up of the stand-alone organization and infrastructure.
 
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.

The following table summarizes the carrying amount of the accrual for the business realignment and reorganization at September 30, 2017:
 
Severance and
Other Benefits
 
Asset
Actions/Other
 
Total
(In millions)
 
 
 
 
 
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
)
Non-cash expenses
—

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

 
$
—

 
$
0.6

2017 Charge
4.7

 
—

 
4.7

Cash payments
(1.1
)
 
—

 
(1.1
)
Non-cash expenses
—

 
—

 
—

September 30, 2017
$
4.2

 
$
—

 
$
4.2


(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.