
5.	COST REDUCTION AND ASSET ACTIONS

For the three months ended 30 June 2017, we recognized an expense of $42.7 for cost reduction and asset actions. Severance and other benefits totaled $9.5. Asset actions of $33.2 primarily included charges resulting from the planned sale of a non-industrial gas hardgoods business in the Industrial Gases – Americas segment and the closure of a facility in the Corporate and other segment that manufactured liquefied natural gas (LNG) heat exchangers.

For the nine months ended 30 June 2017, we recognized a net expense of $103.0. The year-to-date net expense included a charge of $106.4 for actions taken during fiscal year 2017, partially offset by the favorable settlement of the remaining $3.4 accrued balance associated with business restructuring actions taken in 2015. Asset actions of $78.9 included those taken in the third quarter discussed above and a first quarter charge of $45.7 resulting from the write-down of an air separation unit in the Industrial Gases – EMEA segment that was constructed mainly to provide oxygen to one of the Energy-from-Waste plants. During the first nine months of fiscal year 2017, severance and other benefits totaled $27.5 and related to the elimination of approximately 270 positions, primarily in the Industrial Gases – Americas, Industrial Gases – EMEA and Corporate and other segments.

During fiscal year 2016, we incurred an expense of $34.5 for severance and other benefits related to the elimination of approximately 610 positions. Expense of $13.2 and $23.9 was recognized for the three and nine months ended 30 June 2016, respectively. The fiscal year 2016 expense primarily related to the Industrial Gases – Americas and Industrial Gases – EMEA segments.

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

The following table summarizes the carrying amount of the accrual for cost reduction and asset actions at 30 June 2017:



	Severance and Other Benefits			Asset Actions/Other			Total
2016 Charge	$	34.5		$	—		$	34.5
Amount reflected in pension liability	(.9		)	—			(.9		)
Cash expenditures	(21.6		)	—			(21.6		)
Currency translation adjustment	.3			—			.3
30 September 2016	$	12.3		$	—		$	12.3
2017 Charge	27.5			78.9			106.4
Noncash expenses	—			(74.6		)	(74.6		)
Amount reflected in pension liability	(1.0		)	—			(1.0		)
Amount reflected in other noncurrent liabilities	—			(2.2		)	(2.2		)
Cash expenditures	(27.0		)	(.9		)	(27.9		)
Currency translation adjustment	(.4		)	—			(.4		)
30 June 2017	$	11.4		$	1.2		$	12.6