Discontinued Operations (Tables)

9 Months Ended

Jun. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Operating Results and Assets and Liabilities of Discontinued Operations

The following table summarizes the carrying amount of the accrual for our actions to dispose of the EfW business at 30 June 2017:

	Asset Actions			Contract Actions/Other			Total
Loss on disposal of business	$	913.5		$	32.2		$	945.7
Noncash expenses	(913.5		)	—			(913.5		)
Cash expenditures	—			(18.6		)	(18.6		)
Currency translation adjustment	—			(1.4		)	(1.4		)
30 September 2016	$	—		$	12.2		$	12.2
Loss on disposal of business	6.3			53.0			59.3
Noncash expenses	(6.3		)	—			(6.3		)
Amount reflected in other noncurrent liabilities	—			(61.5		)	(61.5		)
Cash expenditures	—			(1.4		)	(1.4		)
Currency translation adjustments	—			3.4			3.4
30 June 2017	$	—		$	5.7		$	5.7

The loss on disposal was recorded as a component of discontinued operations. The amount reflected in other noncurrent liabilities relates to land lease obligations and is recorded in continuing operations. The remaining accrual is reflected in current liabilities of discontinued operations.

The following tables detail the businesses and major line items that comprise income from discontinued operations, net of tax, on the consolidated income statements for the three and nine months ended 30 June 2017:

	Three Months Ended
	30 June 2017
	Total Discontinued
	Operations(A)
Cost of sales	$	2.3
Selling and administrative	.3
Other income (expense), net	(.8		)
Loss Before Taxes	(3.4		)
Income tax provision	(1.1		)
Loss from Discontinued Operations, net of tax	$	(2.3	)

^(A)  Activity primarily relates to EfW.

	Nine Months Ended
	30 June 2017
							Total
	Performance			Energy-			Discontinued
	Materials			from-Waste(A)			Operations
Sales	$	254.8		$	—		$	254.8
Cost of sales	182.3			11.9			194.2
Selling and administrative	22.5			.5			23.0
Research and development	5.1			—			5.1
Other income (expense), net	.3			(.9		)	(.6		)
Operating Income (Loss)	45.2			(13.3		)	31.9
Equity affiliates’ income	.3			—			.3
Income (Loss) Before Taxes	45.5			(13.3		)	32.2
Income tax provision(B)	(50.8		)	(3.1		)	(53.9		)
Income (Loss) From Operations of Discontinued Operations, net of tax	96.3			(10.2		)	86.1
Gain (Loss) on Disposal, net of tax(C)	1,832.5			(47.1		)	1,785.4
Income (Loss) from Discontinued Operations, net of tax	$	1,928.8		$	(57.3	)	$	1,871.5

^(A)  The loss from operations of discontinued operations for EfW primarily relates to land lease obligations, administrative costs, and costs incurred for ongoing project exit activities.

^(B)  As a result of the expected gain on sale of PMD, we released valuation allowances related to capital loss and net operating loss carryforwards during the first quarter of 2017 that favorably impacted our income tax provision within discontinued operations by approximately $66.

^(C)  After-tax gain on sale of $1,832.5 includes expense for income tax reserves for uncertain tax positions of $26.1 gross ($19.1 net) in various jurisdictions.

The following tables detail the businesses and major line items that comprise income from discontinued operations, net of tax, on the consolidated income statements for the three and nine months ended 30 June 2016:

	Three Months Ended
	30 June 2016
										Total
	Electronic			Performance			Energy-			Discontinued
	Materials			Materials			from-Waste(A)			Operations
Sales	$	240.0		$	279.9		$	—		$	519.9
Cost of sales	130.9			188.2			17.6			336.7
Selling and administrative	22.8			20.7			.7			44.2
Research and development	10.6			4.9			.1			15.6
Other income (expense), net	(.8		)	(.6		)	8.2			6.8
Operating Income (Loss)	74.9			65.5			(10.2		)	130.2
Equity affiliates’ income	—			.5			—			.5
Income (Loss) Before Taxes(B)	74.9			66.0			(10.2		)	130.7
Income tax provision	16.8			16.8			(1.3		)	32.3
Income (Loss) from Operations of Discontinued Operations, net of tax	58.1			49.2			(8.9		)	98.4
Net Income Attributable to Noncontrolling Interests of Discontinued Operations	1.9			—			—			1.9
Net Income (Loss) From Discontinued Operations, net of tax	$	56.2		$	49.2		$	(8.9	)	$	96.5

	Nine Months Ended
	30 June 2016
								Total
	Electronic		Performance		Energy-			Discontinued
	Materials		Materials		from-Waste(A)			Operations
Sales	$	713.3	$	789.9	$	—		$	1,503.2
Cost of sales	385.8		539.1		22.9			947.8
Selling and administrative	61.2		59.2		2.3			122.7
Research and development	30.2		14.8		.8			45.8
Other income (expense), net	4.2		3.1		(5.5		)	1.8
Operating Income (Loss)	240.3		179.9		(31.5		)	388.7
Equity affiliates’ income	.2		.9		—			1.1
Income (Loss) Before Taxes(B)	240.5		180.8		(31.5		)	389.8
Income tax provision	58.4		53.7		(1.9		)	110.2
Income (Loss) From Operations of Discontinued Operations	182.1		127.1		(29.6		)	279.6
Loss on Disposal, net of tax	—		—		(846.6		)	(846.6		)
Income (Loss) from Operations of Discontinued Operations, net of tax	182.1		127.1		(876.2		)	(567.0		)
Net Income Attributable to Noncontrolling Interests of Discontinued Operations	6.0		—		—			6.0
Net Income (Loss) From Discontinued Operations, net of tax	$	176.1	$	127.1	$	(876.2	)	$	(573.0	)

^(A)  The loss from operations of discontinued operations for EfW primarily relates to project suspension costs, land lease obligations, and administrative costs.

^(B)  For the three and nine months ended 30 June 2016, income before taxes from operations of discontinued operations attributable to Air Products was $128.3 and $382.4, respectively.

The following table details the major line items that comprise total assets and total liabilities of discontinued operations on the consolidated balance sheets as of 30 June 2017:

	30 June 2017
					Total
	Performance		Energy-		Discontinued
	Materials		from-Waste		Operations
Assets
Current Assets
Plant and equipment, net	$	—	$	9.8	$	9.8
Total Current Assets	—		9.8		9.8
Total Assets	$	—	$	9.8	$	9.8
Liabilities
Current Liabilities
Payables and accrued liabilities (A)	$	10.4	$	6.1	$	16.5
Total Current Liabilities	10.4		6.1		16.5
Total Liabilities	$	10.4	$	6.1	$	16.5

^(A)  Includes reserves associated with disposition of businesses.

The following table details the major line items that comprise total assets and total liabilities of discontinued operations on the consolidated balance sheets as of 30 September 2016:

	30 September 2016
							Total
	Electronic		Performance		Energy-		Discontinued
	Materials		Materials		from-Waste		Operations
Assets
Current Assets
Cash and cash items	$	170.6	$	37.5	$	—	$	208.1
Trade receivables, net	134.7		159.0		—		293.7
Inventories	138.1		226.8		—		364.9
Plant and equipment, net	—		—		18.2		18.2
Other receivables and current assets	34.5		5.6		1.2		41.3
Total Current Assets	477.9		428.9		19.4		926.2
Plant and equipment, net	296.5		296.5		—		593.0
Goodwill, net	180.0		125.0		—		305.0
Intangible assets, net	75.1		25.0		—		100.1
Other noncurrent assets	37.5		6.7		—		44.2
Total Noncurrent Assets	589.1		453.2		—		1,042.3
Total Assets	$	1,067.0	$	882.1	$	19.4	$	1,968.5
Liabilities
Current Liabilities
Payables and accrued liabilities	$	85.8	$	72.5	$	19.0	$	177.3
Accrued income taxes	22.7		6.0		—		28.7
Current portion of long-term debt	5.8		—		—		5.8
Total Current Liabilities	114.3		78.5		19.0		211.8
Long-term debt	981.8		—		—		981.8
Deferred income taxes	50.3		6.4		—		56.7
Other noncurrent liabilities	47.4		9.6		—		57.0
Total Noncurrent Liabilities	1,079.5		16.0		—		1,095.5
Total Liabilities	$	1,193.8	$	94.5	$	19.0	$	1,307.3