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Business Segment Information
 6 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Business Segment Information
17.
BUSINESS SEGMENT INFORMATION
Our reporting segments reflect the manner in which our chief operating decision maker reviews results and allocates resources. Except in the Corporate and other segment, each reporting segment meets the definition of an operating segment and does not include the aggregation of multiple operating segments. Our liquefied natural gas (LNG) and helium storage and distribution sale of equipment businesses are aggregated within the Corporate and other segment.
Our reporting segments are:
•
Industrial Gases – Americas
•
Industrial Gases – EMEA (Europe, Middle East, and Africa)
•
Industrial Gases – Asia
•
Industrial Gases – Global
•
Corporate and other
The results of the Corporate and other segment include stranded costs related to the presentation of the two divisions comprising the former Materials Technologies segment as discontinued operations. The majority of these costs are expected to be reimbursed to Air Products pursuant to short-term transition services agreements under which Air Products will provide transition services to Versum for EMD and to Evonik for PMD.
 
Industrial
Gases–
Americas
Industrial
Gases–
EMEA
Industrial
Gases–
Asia
Industrial
Gases–
Global
Corporate
and other
Segment
Total
Three Months Ended 31 March 2017
Sales
$
890.1

$
414.2

$
435.9

$
216.5

$
23.4

$
1,980.1

Operating income (loss)
224.5

86.5

112.0

22.8

(40.2
)
405.6

Depreciation and amortization
116.0

41.6

49.3

1.7

3.2

211.8

Equity affiliates' income
13.0

8.3

12.9

—

—

34.2

Three Months Ended 31 March 2016
Sales
$
798.1

$
421.8

$
407.9

$
86.6

$
63.0

$
1,777.4

Operating income (loss)
223.5

90.0

105.0

(10.8
)
(16.0
)
391.7

Depreciation and amortization
109.8

48.2

48.8

1.8

5.3

213.9

Equity affiliates' income
7.7

7.2

17.4

—

—

32.3


 
 
 
 
 
 
 
Six Months Ended 31 March 2017
Sales
$
1,754.0

$
813.9

$
874.2

$
364.4

$
56.1

$
3,862.6

Operating income (loss)
448.3

174.5

230.1

31.0

(70.0
)
813.9

Depreciation and amortization
227.8

83.8

96.0

3.7

6.6

417.9

Equity affiliates' income
27.7

17.8

26.4

.3

—

72.2

Six Months Ended 31 March 2016
Sales
$
1,634.4

$
861.4

$
822.5

$
190.9

$
134.5

$
3,643.7

Operating income (loss)
435.1

182.3

222.3

(30.1
)
(33.4
)
776.2

Depreciation and amortization
218.8

95.0

100.7

3.9

10.2

428.6

Equity affiliates' income (loss)
22.2

14.8

29.1

(.5
)
—

65.6

Total Assets
31 March 2017
$
5,898.8

$
3,100.8

$
4,248.1

$
328.9

$
4,285.1

$
17,861.7

30 September 2016
5,896.7

3,178.6

4,232.7

367.6

2,384.5

16,060.1



The sales information noted above relates to external customers only. All intersegment sales are eliminated in consolidation. For the three and six months ended 31 March 2017, the Industrial Gases – Global segment had intersegment sales of $61.0 and $122.0, respectively. For the three and six months ended 31 March 2016, the Industrial Gases – Global segment had intersegment sales of $56.6 and $111.2, respectively. These sales are generally transacted at market pricing. For all other segments, intersegment sales are not material for all periods presented. Equipment manufactured for our industrial gases segments is generally transferred at cost and not reflected as an intersegment sale.
Changes in estimates on projects accounted for under the percentage-of-completion method favorably impacted operating income by approximately $12 during the second quarter of fiscal year 2017.
Below is a reconciliation of segment total operating income to consolidated operating income:
 
Three Months Ended
Six Months Ended
 
31 March
31 March
Operating Income
2017
2016
2017
2016
Segment total
$
405.6

$
391.7

$
813.9

$
776.2

Business separation costs
—

(7.4
)
(30.2
)
(19.4
)
Cost reduction and asset actions
(10.3
)
(10.7
)
(60.3
)
(10.7
)
Pension settlement loss
(4.1
)
(2.0
)
(4.1
)
(2.0
)
Consolidated Total
$
391.2

$
371.6

$
719.3

$
744.1


Below is a reconciliation of segment total assets to consolidated total assets:
 
31 March
30 September
Total Assets
2017
2016
Segment total
$
17,861.7

$
16,060.1

Discontinued operations
9.8

1,968.5

Consolidated Total
$
17,871.5

$
18,028.6