x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 23-1274455 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
7201 Hamilton Boulevard, Allentown, Pennsylvania | 18195-1501 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ | Emerging growth company ¨ | ||||
(Do not check if a smaller reporting company) |
Class | Outstanding at 31 December 2017 | |
Common Stock, $1 par value |
Three Months Ended | ||||||
31 December | ||||||
(Millions of dollars, except for share and per share data) | 2017 | 2016 | ||||
Sales | $ | $ | ||||
Cost of sales | ||||||
Selling and administrative | ||||||
Research and development | ||||||
Business separation costs | ||||||
Cost reduction and asset actions | ||||||
Other income (expense), net | ||||||
Operating Income | ||||||
Equity affiliates' income | ||||||
Interest expense | ||||||
Other non-operating income (expense), net | ( | ) | ||||
Income From Continuing Operations Before Taxes | ||||||
Income tax provision | ||||||
Income From Continuing Operations | ||||||
Income (Loss) From Discontinued Operations, net of tax | ( | ) | ||||
Net Income | ||||||
Net Income Attributable to Noncontrolling Interests of Continuing Operations | ||||||
Net Income Attributable to Air Products | $ | $ | ||||
Net Income Attributable to Air Products | ||||||
Income from continuing operations | $ | $ | ||||
Income (Loss) from discontinued operations | ( | ) | ||||
Net Income Attributable to Air Products | $ | $ | ||||
Basic Earnings Per Common Share Attributable to Air Products | ||||||
Income from continuing operations | $ | $ | ||||
Income from discontinued operations | ||||||
Net Income Attributable to Air Products | $ | $ | ||||
Diluted Earnings Per Common Share Attributable to Air Products | ||||||
Income from continuing operations | $ | $ | ||||
Income from discontinued operations | ||||||
Net Income Attributable to Air Products | $ | $ | ||||
Weighted Average Common Shares – Basic (in millions) | ||||||
Weighted Average Common Shares – Diluted (in millions) | ||||||
Dividends Declared Per Common Share – Cash | $ | $ |
Three Months Ended | ||||||||
31 December | ||||||||
(Millions of dollars) | 2017 | 2016 | ||||||
Net Income | $ | $ | ||||||
Other Comprehensive Income (Loss), net of tax: | ||||||||
Translation adjustments, net of tax of ($6.6) and $32.3 | ( | ) | ||||||
Net loss on derivatives, net of tax of ($5.3) and ($10.7) | ( | ) | ( | ) | ||||
Reclassification adjustments: | ||||||||
Currency translation adjustment | ||||||||
Derivatives, net of tax of $1.7 and $10.6 | ||||||||
Pension and postretirement benefits, net of tax of $11.0 and $12.9 | ||||||||
Total Other Comprehensive Income (Loss) | ( | ) | ||||||
Comprehensive Income | ||||||||
Net Income Attributable to Noncontrolling Interests | ||||||||
Other Comprehensive Income (Loss) Attributable to Noncontrolling Interests | ( | ) | ||||||
Comprehensive Income Attributable to Air Products | $ | $ |
31 December | 30 September | |||||||
(Millions of dollars, except for share data) | 2017 | 2017 | ||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash items | $ | $ | ||||||
Short-term investments | ||||||||
Trade receivables, net | ||||||||
Inventories | ||||||||
Contracts in progress, less progress billings | ||||||||
Prepaid expenses | ||||||||
Other receivables and current assets | ||||||||
Current assets of discontinued operations | ||||||||
Total Current Assets | ||||||||
Investment in net assets of and advances to equity affiliates | ||||||||
Plant and equipment, at cost | ||||||||
Less: accumulated depreciation | ||||||||
Plant and equipment, net | ||||||||
Goodwill, net | ||||||||
Intangible assets, net | ||||||||
Noncurrent capital lease receivables | ||||||||
Other noncurrent assets | ||||||||
Total Noncurrent Assets | ||||||||
Total Assets | $ | $ | ||||||
Liabilities and Equity | ||||||||
Current Liabilities | ||||||||
Payables and accrued liabilities | $ | $ | ||||||
Accrued income taxes | ||||||||
Short-term borrowings | ||||||||
Current portion of long-term debt | ||||||||
Current liabilities of discontinued operations | ||||||||
Total Current Liabilities | ||||||||
Long-term debt | ||||||||
Other noncurrent liabilities | ||||||||
Deferred income taxes | ||||||||
Total Noncurrent Liabilities | ||||||||
Total Liabilities | ||||||||
Commitments and Contingencies - See Note 12 | ||||||||
Air Products Shareholders’ Equity | ||||||||
Common stock (par value $1 per share; issued 2018 and 2017 - 249,455,584 shares) | ||||||||
Capital in excess of par value | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
Treasury stock, at cost (2018 - 30,516,281 shares; 2017 - 31,109,510 shares) | ( | ) | ( | ) | ||||
Total Air Products Shareholders’ Equity | ||||||||
Noncontrolling Interests | ||||||||
Total Equity | ||||||||
Total Liabilities and Equity | $ | $ |
Three Months Ended | ||||||
31 December | ||||||
(Millions of dollars) | 2017 | 2016 | ||||
Operating Activities | ||||||
Net income | $ | $ | ||||
Less: Net income attributable to noncontrolling interests of continuing operations | ||||||
Net income attributable to Air Products | ||||||
(Income) Loss from discontinued operations | ( | ) | ||||
Income from continuing operations attributable to Air Products | ||||||
Adjustments to reconcile income to cash provided by operating activities: | ||||||
Depreciation and amortization | ||||||
Deferred income taxes | ( | ) | ( | ) | ||
Tax reform repatriation | ||||||
Undistributed earnings of unconsolidated affiliates | ( | ) | ||||
Gain on sale of assets and investments | ( | ) | ( | ) | ||
Share-based compensation | ||||||
Noncurrent capital lease receivables | ||||||
Write-down of long-lived assets associated with restructuring | ||||||
Other adjustments | ||||||
Working capital changes that provided (used) cash, excluding effects of acquisitions and divestitures: | ||||||
Trade receivables | ( | ) | ||||
Inventories | ( | ) | ||||
Contracts in progress, less progress billings | ( | ) | ||||
Other receivables | ( | ) | ||||
Payables and accrued liabilities | ( | ) | ||||
Other working capital | ||||||
Cash Provided by Operating Activities | ||||||
Investing Activities | ||||||
Additions to plant and equipment | ( | ) | ( | ) | ||
Acquisitions, less cash acquired | ( | ) | ||||
Investment in and advances to unconsolidated affiliates | ( | ) | ||||
Proceeds from sale of assets and investments | ||||||
Purchases of investments | ( | ) | ||||
Proceeds from investments | ||||||
Other investing activities | ( | ) | ||||
Cash Used for Investing Activities | ( | ) | ( | ) | ||
Financing Activities | ||||||
Long-term debt proceeds | ||||||
Payments on long-term debt | ( | ) | ( | ) | ||
Net decrease in commercial paper and short-term borrowings | ( | ) | ( | ) | ||
Dividends paid to shareholders | ( | ) | ( | ) | ||
Proceeds from stock option exercises | ||||||
Other financing activities | ( | ) | ( | ) | ||
Cash Used for Financing Activities | ( | ) | ( | ) | ||
Discontinued Operations | ||||||
Cash used for operating activities | ( | ) | ( | ) | ||
Cash used for investing activities | ( | ) | ||||
Cash provided by financing activities | ||||||
Cash Used for Discontinued Operations | ( | ) | ( | ) | ||
Effect of Exchange Rate Changes on Cash | ( | ) | ||||
Decrease in cash and cash items | ( | ) | ( | ) | ||
Cash and Cash items – Beginning of Year | ||||||
Cash and Cash Items – End of Period | $ | $ | ||||
Less: Cash and Cash Items – Discontinued Operations | ||||||
Cash and Cash Items – Continuing Operations | $ | $ |
Three Months Ended | |||||||||
31 December 2016 | |||||||||
Total | |||||||||
Performance | Energy- | Discontinued | |||||||
Materials | from-Waste(A) | Operations | |||||||
Sales | $ | $ | $ | ||||||
Cost of sales | |||||||||
Selling and administrative | |||||||||
Research and development | |||||||||
Other income (expense), net | ( | ) | ( | ) | |||||
Operating Income (Loss) | ( | ) | |||||||
Equity affiliates’ income | |||||||||
Income (Loss) Before Taxes | ( | ) | |||||||
Income tax benefit(B) | ( | ) | ( | ) | ( | ) | |||
Income (Loss) From Operations of Discontinued Operations, net of tax | ( | ) | |||||||
Loss on Disposal, net of tax | ( | ) | ( | ) | |||||
Income (Loss) From Discontinued Operations, net of tax | ( | ) |
(A) |
(B) |
Severance and Other Benefits | Asset Actions/Other | Total | ||||||||||
30 September 2016 | $ | $ | $ | |||||||||
2017 Charge | ||||||||||||
Noncash expenses | ( | ) | ( | ) | ||||||||
Amount reflected in pension liability | ( | ) | ( | ) | ||||||||
Amount reflected in other noncurrent liabilities | ( | ) | ( | ) | ||||||||
Cash expenditures | ( | ) | ( | ) | ( | ) | ||||||
Currency translation adjustment | ( | ) | ( | ) | ||||||||
30 September 2017 | $ | $ | $ | |||||||||
Cash expenditures | ( | ) | ( | ) | ( | ) | ||||||
Currency translation adjustment | ||||||||||||
31 December 2017 | $ | $ | $ |
31 December | 30 September | |||||||
2017 | 2017 | |||||||
Finished goods | $ | $ | ||||||
Work in process | ||||||||
Raw materials, supplies and other | ||||||||
Total FIFO cost | $ | $ | ||||||
Less: Excess of FIFO cost over LIFO cost | ( | ) | ( | ) | ||||
Inventories | $ | $ |
Industrial Gases– Americas | Industrial Gases– EMEA | Industrial Gases– Asia | Industrial Gases– Global | Total | ||||||||||||||||
Goodwill, net at 30 September 2017 | $ | $ | $ | $ | $ | |||||||||||||||
Acquisitions | ||||||||||||||||||||
Currency translation | ( | ) | ||||||||||||||||||
Goodwill, net at 31 December 2017 | $ | $ | $ | $ | $ |
31 December | 30 September | |||||||
2017 | 2017 | |||||||
Goodwill, gross | $ | $ | ||||||
Accumulated impairment losses | ( | ) | ( | ) | ||||
Goodwill, net | $ | $ |
31 December 2017 | 30 September 2017 | |||||||||||
US$ Notional | Years Average Maturity | US$ Notional | Years Average Maturity | |||||||||
Forward Exchange Contracts: | ||||||||||||
Cash flow hedges | $ | .5 | $ | .4 | ||||||||
Net investment hedges | 2.8 | 3.0 | ||||||||||
Not designated | .2 | .1 | ||||||||||
Total Forward Exchange Contracts | $ | .8 | $ | .8 |
31 December 2017 | 30 September 2017 | |||||||||||||||||||||||
US$ Notional | Average Pay % | Average Receive % | Years Average Maturity | US$ Notional | Average Pay % | Average Receive % | Years Average Maturity | |||||||||||||||||
Interest rate swaps (fair value hedge) | $ | % | $ | % | ||||||||||||||||||||
Cross currency interest rate swaps (net investment hedge) | $ | % | % | $ | % | % | ||||||||||||||||||
Cross currency interest rate swaps (cash flow hedge) | $ | % | % | $ | % | % | ||||||||||||||||||
Cross currency interest rate swaps (not designated) | $ | % | % | $ | % | % |
Balance Sheet Location | 31 December 2017 | 30 September 2017 | Balance Sheet Location | 31 December 2017 | 30 September 2017 | |||||||||
Derivatives Designated as Hedging Instruments: | ||||||||||||||
Forward exchange contracts | Other receivables | $ | $ | Accrued liabilities | $ | $ | ||||||||
Interest rate management contracts | Other receivables | Accrued liabilities | ||||||||||||
Forward exchange contracts | Other noncurrent assets | Other noncurrent liabilities | ||||||||||||
Interest rate management contracts | Other noncurrent assets | Other noncurrent liabilities | ||||||||||||
Total Derivatives Designated as Hedging Instruments | $ | $ | $ | $ | ||||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||
Forward exchange contracts | Other receivables | $ | $ | Accrued liabilities | $ | $ | ||||||||
Interest rate management contracts | Other receivables | Accrued liabilities | ||||||||||||
Interest rate management contracts | Other noncurrent assets | Other noncurrent liabilities | ||||||||||||
Total Derivatives Not Designated as Hedging Instruments | $ | $ | $ | $ | ||||||||||
Total Derivatives | $ | $ | $ | $ |
Three Months Ended 31 December | ||||||||||||||||||||||||
Forward Exchange Contracts | Foreign Currency Debt | Other (A) | Total | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Cash Flow Hedges, net of tax: | ||||||||||||||||||||||||
Net gain (loss) recognized in OCI (effective portion) | $ | $ | ( | ) | $ | — | $ | — | $ | ( | ) | $ | $ | ( | ) | $ | ( | ) | ||||||
Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) | — | — | ||||||||||||||||||||||
Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) | ( | ) | — | — | ( | ) | ( | ) | ||||||||||||||||
Net (gain) loss reclassified from OCI to interest expense (effective portion) | ( | ) | — | — | ( | ) | ||||||||||||||||||
Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) | ( | ) | ( | ) | — | — | ( | ) | ( | ) | ||||||||||||||
Fair Value Hedges: | ||||||||||||||||||||||||
Net gain (loss) recognized in interest expense(B) | $ | — | $ | — | $ | — | $ | — | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Net Investment Hedges, net of tax: | ||||||||||||||||||||||||
Net gain (loss) recognized in OCI | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||
Net gain (loss) recognized in other income (expense), net(C) | $ | ( | ) | $ | $ | — | $ | — | $ | ( | ) | $ | $ | ( | ) | $ |
(A) |
(B) |
(C) |
Level 1 | — Quoted prices (unadjusted) in active markets for identical assets or liabilities. |
Level 2 | — Inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability. |
Level 3 | — Inputs that are unobservable for the asset or liability based on our own assumptions (about the assumptions market participants would use in pricing the asset or liability). |
31 December 2017 | 30 September 2017 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Assets | ||||||||||||||||
Derivatives | ||||||||||||||||
Forward exchange contracts | $ | $ | $ | $ | ||||||||||||
Interest rate management contracts | ||||||||||||||||
Liabilities | ||||||||||||||||
Derivatives | ||||||||||||||||
Forward exchange contracts | $ | $ | $ | $ | ||||||||||||
Interest rate management contracts | ||||||||||||||||
Long-term debt, including current portion |
31 December 2017 | 30 September 2017 | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets at Fair Value | |||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||
Forward exchange contracts | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Interest rate management contracts | |||||||||||||||||||||||||
Total Assets at Fair Value | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Liabilities at Fair Value | |||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||
Forward exchange contracts | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Interest rate management contracts | |||||||||||||||||||||||||
Total Liabilities at Fair Value | $ | $ | $ | $ | $ | $ | $ | $ |
Pension Benefits | |||||||||||||||
2017 | 2016 | ||||||||||||||
Three Months Ended 31 December | U.S. | International | U.S. | International | |||||||||||
Service cost(A) | $ | $ | $ | $ | |||||||||||
Interest cost | |||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Prior service cost amortization | |||||||||||||||
Actuarial loss amortization | |||||||||||||||
Settlements | ( | ) | |||||||||||||
Curtailment | ( | ) | |||||||||||||
Special termination benefits | |||||||||||||||
Other | |||||||||||||||
Net Periodic Benefit Cost (Total) | $ | $ | $ | $ | |||||||||||
Less: Discontinued Operations | ( | ) | ( | ) | |||||||||||
Net Periodic Benefit Cost (Continuing Operations) | $ | $ | $ | $ |
Three Months Ended | ||||||||
31 December | ||||||||
2017 | 2016 | |||||||
Before-tax share-based compensation cost | $ | $ | ||||||
Income tax benefit | ( | ) | ( | ) | ||||
After-tax share-based compensation cost | $ | $ |
Expected volatility | % | ||
Risk-free interest rate | % | ||
Expected dividend yield | % |
Three Months Ended 31 December | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
Air Products | Non- controlling Interests | Total Equity | Air Products | Non- controlling Interests | Total Equity | ||||||||||||||
Balance at 30 September | $ | $ | $ | $ | $ | $ | |||||||||||||
Net income | |||||||||||||||||||
Other comprehensive income (loss) | ( | ) | ( | ) | ( | ) | |||||||||||||
Dividends on common stock (per share $0.95, $0.86) | ( | ) | — | ( | ) | ( | ) | — | ( | ) | |||||||||
Dividends to noncontrolling interests | — | ( | ) | ( | ) | — | ( | ) | ( | ) | |||||||||
Share-based compensation | — | — | |||||||||||||||||
Treasury shares for stock option and award plans | — | ( | ) | — | ( | ) | |||||||||||||
Spin-off of Versum | ( | ) | |||||||||||||||||
Cumulative change in accounting principle | |||||||||||||||||||
Other equity transactions | ( | ) | |||||||||||||||||
Balance at 31 December | $ | $ | $ | $ | $ | $ |
Derivatives qualifying as hedges | Foreign currency translation adjustments | Pension and postretirement benefits | Total | |||||||||
Balance at 30 September 2017 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Other comprehensive income (loss) before reclassifications | ( | ) | ||||||||||
Amounts reclassified from AOCL | ||||||||||||
Net current period other comprehensive income (loss) | ( | ) | ||||||||||
Amount attributable to noncontrolling interests | ||||||||||||
Balance at 31 December 2017 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Three Months Ended | ||||||
31 December | ||||||
2017 | 2016 | |||||
(Gain) Loss on Cash Flow Hedges, net of tax | ||||||
Sales/Cost of sales | $ | $ | ||||
Other income (expense), net | ( | ) | ||||
Interest expense | ( | ) | ||||
Total (Gain) Loss on Cash Flow Hedges, net of tax | $ | $ | ||||
Currency Translation Adjustment(A) | $ | $ | ||||
Pension and Postretirement Benefits, net of tax(B) | $ | $ |
(A) |
(B) |
Three Months Ended | ||||||||
31 December | ||||||||
2017 | 2016 | |||||||
Numerator | ||||||||
Income from continuing operations | $ | $ | ||||||
Income (Loss) from discontinued operations | ( | ) | ||||||
Net Income Attributable to Air Products | $ | $ | ||||||
Denominator (in millions) | ||||||||
Weighted average common shares — Basic | ||||||||
Effect of dilutive securities | ||||||||
Employee stock option and other award plans | ||||||||
Weighted average common shares — Diluted | ||||||||
Basic Earnings Per Common Share Attributable to Air Products | ||||||||
Income from continuing operations | $ | $ | ||||||
Income from discontinued operations | ||||||||
Net Income Attributable to Air Products | $ | $ | ||||||
Diluted Earnings Per Common Share Attributable to Air Products | ||||||||
Income from continuing operations | $ | $ | ||||||
Income from discontinued operations | ||||||||
Net Income Attributable to Air Products | $ | $ |
• | Industrial Gases – Americas |
• | Industrial Gases – EMEA (Europe, Middle East, and Africa) |
• | Industrial Gases – Asia |
• | Industrial Gases – Global |
• | Corporate and other |
Industrial Gases – Americas | Industrial Gases – EMEA | Industrial Gases – Asia | Industrial Gases – Global | Corporate and other | Segment Total | |||||||||||||
Three Months Ended 31 December 2017 | ||||||||||||||||||
Sales | $ | $ | $ | $ | $ | $ | ||||||||||||
Operating income (loss) | ( | ) | ||||||||||||||||
Depreciation and amortization | ||||||||||||||||||
Equity affiliates' income | ||||||||||||||||||
Three Months Ended 31 December 2016 | ||||||||||||||||||
Sales | $ | $ | $ | $ | $ | $ | ||||||||||||
Operating income (loss) | ( | ) | ||||||||||||||||
Depreciation and amortization | ||||||||||||||||||
Equity affiliates' income |
Total Assets | ||||||||||||||||||
31 December 2017 | $ | $ | $ | $ | $ | $ | ||||||||||||
30 September 2017 |
Three Months Ended | ||||||
31 December | ||||||
Operating Income | 2017 | 2016 | ||||
Segment total | $ | $ | ||||
Business separation costs | ( | ) | ||||
Cost reduction and asset actions | ( | ) | ||||
Consolidated Total | $ | $ |
Three Months Ended | ||||||
31 December | ||||||
Equity Affiliates' Income | 2017 | 2016 | ||||
Segment total | $ | $ | ||||
Tax reform repatriation - equity method investment(A) | ( | ) | ||||
Consolidated Total | $ | $ |
31 December | 30 September | |||||
Total Assets | 2017 | 2017 | ||||
Segment total | $ | $ | ||||
Discontinued operations | ||||||
Consolidated Total | $ | $ |
• | Sales of $2,216.6 increased 18%, or $334.1, from underlying sales growth of 15% and favorable currency impacts of 3%. Underlying sales increased primarily from higher volumes across the regional industrial gases businesses driven by an equipment sale resulting from the termination of a contract in the Industrial Gases – Asia segment, new project onstreams, and base business growth. |
• | Operating income of $460.7 increased 40%, or $132.4, and operating margin of 20.8% increased 340 basis points (bp). On a non-GAAP basis, operating income of $460.7 increased 12%, or $49.9, and operating margin of 20.8% decreased 100 bp. |
• | Income from continuing operations of $155.6 decreased 38%, or $96.0, and diluted earnings per share of $.70 decreased 39%, or $.45. On a non-GAAP basis, income from continuing operations of $394.6 increased 23%, or $72.6, and diluted earnings per share of $1.79 increased 22%, or $.32. A summary table of changes in diluted earnings per share is presented below. |
• | Adjusted EBITDA of $734.9 increased 12%, or $80.0. Adjusted EBITDA margin of 33.2% decreased 160 bp. |
Changes in Diluted Earnings per Share Attributable to Air Products | ||||||||||||
Three Months Ended | ||||||||||||
31 December | Increase | |||||||||||
2017 | 2016 | (Decrease) | ||||||||||
Diluted Earnings per Share | ||||||||||||
Net income | $ | .70 | $ | 1.37 | $ | (.67 | ) | |||||
Income from discontinued operations | — | .22 | (.22 | ) | ||||||||
Income from Continuing Operations – GAAP Basis | $ | .70 | $ | 1.15 | $ | (.45 | ) | |||||
Operating Income Impact (after-tax) | ||||||||||||
Underlying business | ||||||||||||
Volume | $ | .19 | ||||||||||
Price/raw materials | .08 | |||||||||||
Costs | (.15 | ) | ||||||||||
Currency | .06 | |||||||||||
Business separation costs | .12 | |||||||||||
Cost reduction and asset actions | .19 | |||||||||||
Total Operating Income Impact (after-tax) | $ | .49 | ||||||||||
Other Impact (after-tax) | ||||||||||||
Equity affiliates' income | $ | .03 | ||||||||||
Other non-operating income (expense), net | .04 | |||||||||||
Income tax | .08 | |||||||||||
Tax reform repatriation | (2.06 | ) | ||||||||||
Tax reform rate change and other | .97 | |||||||||||
Tax costs associated with business separation | .01 | |||||||||||
Weighted average diluted shares | (.01 | ) | ||||||||||
Total Other Impact (after-tax) | $ | (.94 | ) | |||||||||
Total Change in Diluted Earnings per Share from Continuing Operations – GAAP Basis | $ | (.45 | ) |
Three Months Ended | ||||||||||||
31 December | Increase | |||||||||||
2017 | 2016 | (Decrease) | ||||||||||
Income from Continuing Operations – GAAP Basis | $ | .70 | $ | 1.15 | $ | (.45 | ) | |||||
Business separation costs | — | .12 | (.12 | ) | ||||||||
Tax costs associated with business separation | — | .01 | (.01 | ) | ||||||||
Cost reduction and asset actions | — | .19 | (.19 | ) | ||||||||
Tax reform repatriation | 2.06 | — | 2.06 | |||||||||
Tax reform rate change and other | (.97 | ) | — | (.97 | ) | |||||||
Income from Continuing Operations – Non-GAAP Basis | $ | 1.79 | $ | 1.47 | $ | .32 |
Three Months Ended | |||||||||||||||
31 December | |||||||||||||||
2017 | 2016 | $ Change | Change | ||||||||||||
Sales | $ | 2,216.6 | $ | 1,882.5 | $ | 334.1 | 18 | % | |||||||
Operating income | 460.7 | 328.3 | 132.4 | 40 | % | ||||||||||
Operating margin | 20.8 | % | 17.4 | % | 340 bp | ||||||||||
Equity affiliates’ income | 13.8 | 38.0 | (24.2 | ) | (64 | )% | |||||||||
Income from continuing operations | 155.6 | 251.6 | (96.0 | ) | (38 | )% | |||||||||
Non-GAAP Basis | |||||||||||||||
Adjusted EBITDA | $ | 734.9 | $ | 654.9 | $ | 80.0 | 12 | % | |||||||
Adjusted EBITDA margin | 33.2 | % | 34.8 | % | (160 bp) | ||||||||||
Adjusted operating income | 460.7 | 410.8 | 49.9 | 12 | % | ||||||||||
Adjusted operating margin | 20.8 | % | 21.8 | % | (100 bp) | ||||||||||
Adjusted equity affiliates' income | 46.3 | 38.0 | 8.3 | 22 | % |
% Change from Prior Year | ||
Underlying business | ||
Volume | 13 | % |
Price | 2 | % |
Energy and natural gas cost pass-through | — | % |
Currency | 3 | % |
Total Consolidated Change | 18 | % |
Three Months Ended | ||||||||
31 December | ||||||||
2017 | 2016 | |||||||
Interest incurred | $ | 32.6 | $ | 35.8 | ||||
Less: capitalized interest | 2.8 | 6.3 | ||||||
Interest expense | $ | 29.8 | $ | 29.5 |
Three Months Ended | ||||||||||||||
31 December | ||||||||||||||
2017 | 2016 | $ Change | % Change | |||||||||||
Sales | $ | 909.8 | $ | 863.9 | $ | 45.9 | 5% | |||||||
Operating income | 217.2 | 223.3 | (6.1 | ) | (3)% | |||||||||
Operating margin | 23.9 | % | 25.8 | % | (190 bp) | |||||||||
Equity affiliates’ income | 18.6 | 14.7 | 3.9 | 27% | ||||||||||
Adjusted EBITDA | 353.6 | 349.8 | 3.8 | 1% | ||||||||||
Adjusted EBITDA margin | 38.9 | % | 40.5 | % | (160 bp) |
% Change from Prior Year | ||
Underlying business | ||
Volume | 5 | % |
Price | — | % |
Energy and natural gas cost pass-through | (1 | )% |
Currency | 1 | % |
Total Industrial Gases – Americas Sales Change | 5 | % |
Three Months Ended | ||||||||||||||
31 December | ||||||||||||||
2017 | 2016 | $ Change | % Change | |||||||||||
Sales | $ | 515.9 | $ | 399.7 | $ | 116.2 | 29% | |||||||
Operating income | 104.5 | 90.0 | 14.5 | 16% | ||||||||||
Operating margin | 20.3 | % | 22.5 | % | (220 bp) | |||||||||
Equity affiliates’ income | 13.1 | 9.5 | 3.6 | 38% | ||||||||||
Adjusted EBITDA | 166.7 | 141.7 | 25.0 | 18% | ||||||||||
Adjusted EBITDA margin | 32.3 | % | 35.5 | % | (320 bp) |
% Change from Prior Year | ||
Underlying business | ||
Volume | 17 | % |
Price | — | % |
Energy and natural gas cost pass-through | 3 | % |
Currency | 9 | % |
Total Industrial Gases – EMEA Sales Change | 29 | % |
Three Months Ended | ||||||||||||||
31 December | ||||||||||||||
2017 | 2016 | $ Change | % Change | |||||||||||
Sales | $ | 643.6 | $ | 438.3 | $ | 205.3 | 47% | |||||||
Operating income | 175.5 | 118.4 | 57.1 | 48% | ||||||||||
Operating margin | 27.3 | % | 27.0 | % | 30 bp | |||||||||
Equity affiliates’ income | 14.2 | 13.5 | .7 | 5% | ||||||||||
Adjusted EBITDA | 246.5 | 178.6 | 67.9 | 38% | ||||||||||
Adjusted EBITDA margin | 38.3 | % | 40.7 | % | (240 bp) |
% Change from Prior Year | ||
Underlying business | ||
Volume | 36 | % |
Price | 7 | % |
Energy and natural gas cost pass-through | — | % |
Currency | 4 | % |
Total Industrial Gases – Asia Sales Change | 47 | % |
Three Months Ended | ||||||||||||||
31 December | ||||||||||||||
2017 | 2016 | $ Change | % Change | |||||||||||
Sales | $ | 133.0 | $ | 147.9 | $ | (14.9 | ) | (10)% | ||||||
Operating income | 9.5 | 8.2 | 1.3 | 16% | ||||||||||
Adjusted EBITDA | 11.5 | 10.5 | 1.0 | 10% |
Three Months Ended | ||||||||||||||
31 December | ||||||||||||||
2017 | 2016 | $ Change | % Change | |||||||||||
Sales | $ | 14.3 | $ | 32.7 | $ | (18.4 | ) | (56)% | ||||||
Operating loss | (46.0 | ) | (29.1 | ) | (16.9 | ) | (58)% | |||||||
Adjusted EBITDA | (43.4 | ) | (25.7 | ) | (17.7 | ) | (69)% |
Continuing Operations | |||||||||||||||||
Q1 2018 vs. Q1 2017 | Operating Income | Operating Margin(A) | Equity Affiliates' Income | Income Tax Provision | Net Income | Diluted EPS | |||||||||||
2018 GAAP | $ | 460.7 | 20.8 | % | $ | 13.8 | $ | 291.8 | $ | 155.6 | $ | .70 | |||||
2017 GAAP | 328.3 | 17.4 | % | 38.0 | 78.4 | 251.6 | 1.15 | ||||||||||
Change GAAP | $ | 132.4 | 340 | bp | $ | (24.2 | ) | $ | 213.4 | $ | (96.0 | ) | $ | (.45 | ) | ||
% Change GAAP | 40 | % | (64 | )% | 272 | % | (38 | )% | (39 | )% | |||||||
2018 GAAP | $ | 460.7 | 20.8 | % | $ | 13.8 | $ | 291.8 | $ | 155.6 | $ | .70 | |||||
Tax reform repatriation(B) | — | — | % | 32.5 | (420.5 | ) | 453.0 | 2.06 | |||||||||
Tax reform rate change and other(B) | — | — | % | — | 214.0 | (214.0 | ) | (.97 | ) | ||||||||
2018 Non-GAAP Measure | $ | 460.7 | 20.8 | % | $ | 46.3 | $ | 85.3 | $ | 394.6 | $ | 1.79 | |||||
2017 GAAP | $ | 328.3 | 17.4 | % | $ | 38.0 | $ | 78.4 | $ | 251.6 | $ | 1.15 | |||||
Business separation costs | 32.5 | 1.7 | % | — | 3.7 | 26.5 | .12 | ||||||||||
Tax costs associated with business separation | — | — | % | — | (2.7 | ) | 2.7 | .01 | |||||||||
Cost reduction and asset actions | 50.0 | 2.7 | % | — | 8.8 | 41.2 | .19 | ||||||||||
2017 Non-GAAP Measure | $ | 410.8 | 21.8 | % | $ | 38.0 | $ | 88.2 | $ | 322.0 | $ | 1.47 | |||||
Change Non-GAAP Measure | $ | 49.9 | (100 | )bp | $ | 8.3 | $ | (2.9 | ) | $ | 72.6 | $ | .32 | ||||
% Change Non-GAAP Measure | 12 | % | 22 | % | (3 | )% | 23 | % | 22 | % |
(A) | Operating margin is calculated by dividing operating income by sales. |
(B) | For additional information on the impact of the U.S. Tax Cuts and Jobs Act, including our equity affiliate impact, refer to Note 17, Income Taxes. |
Three Months Ended | ||||||
31 December | ||||||
2017 | 2016 | |||||
Income from Continuing Operations(A) | $ | 162.7 | $ | 258.2 | ||
Add: Interest expense | 29.8 | 29.5 | ||||
Less: Other non-operating income (expense), net | 9.8 | (.2 | ) | |||
Add: Income tax provision(B) | 291.8 | 78.4 | ||||
Add: Depreciation and amortization | 227.9 | 206.1 | ||||
Add: Business separation costs | — | 32.5 | ||||
Add: Cost reduction and asset actions | — | 50.0 | ||||
Add: Tax reform repatriation - equity method investment(B) | 32.5 | — | ||||
Adjusted EBITDA | $ | 734.9 | $ | 654.9 | ||
Change GAAP | ||||||
Income from continuing operations change | $ | (95.5 | ) | |||
Income from continuing operations % change | (37 | )% | ||||
Change Non-GAAP | ||||||
Adjusted EBITDA change | $ | 80.0 | ||||
Adjusted EBITDA % change | 12 | % |
(A) | Includes net income attributable to noncontrolling interests. |
(B) | For additional information on the impact of the U.S. Tax Cuts and Jobs Act, including our equity affiliate impact, refer to Note 17, Income Taxes, to the consolidated financial statements. |
Industrial Gases– Americas | Industrial Gases– EMEA | Industrial Gases– Asia | Industrial Gases– Global | Corporate and other | Segment Total | |||||||||||||
GAAP MEASURE | ||||||||||||||||||
Three Months Ended 31 December 2017 | ||||||||||||||||||
Operating income (loss) | $ | 217.2 | $ | 104.5 | $ | 175.5 | $ | 9.5 | $ | (46.0 | ) | $ | 460.7 | |||||
Operating margin | 23.9 | % | 20.3 | % | 27.3 | % | 20.8 | % | ||||||||||
Three Months Ended 31 December 2016 | ||||||||||||||||||
Operating income (loss) | $ | 223.3 | $ | 90.0 | $ | 118.4 | $ | 8.2 | $ | (29.1 | ) | $ | 410.8 | |||||
Operating margin | 25.8 | % | 22.5 | % | 27.0 | % | 21.8 | % | ||||||||||
Operating income (loss) change | $ | (6.1 | ) | $ | 14.5 | $ | 57.1 | $ | 1.3 | $ | (16.9 | ) | $ | 49.9 | ||||
Operating income (loss) % change | (3 | )% | 16 | % | 48 | % | 16 | % | (58 | )% | 12 | % | ||||||
Operating margin change | (190 | ) bp | (220 | ) bp | 30 | bp | (100 | ) bp | ||||||||||
NON-GAAP MEASURE | ||||||||||||||||||
Three Months Ended 31 December 2017 | ||||||||||||||||||
Operating income (loss) | $ | 217.2 | $ | 104.5 | $ | 175.5 | $ | 9.5 | $ | (46.0 | ) | $ | 460.7 | |||||
Add: Depreciation and amortization | 117.8 | 49.1 | 56.8 | 1.6 | 2.6 | 227.9 | ||||||||||||
Add: Equity affiliates' income | 18.6 | 13.1 | 14.2 | .4 | — | 46.3 | ||||||||||||
Adjusted EBITDA | $ | 353.6 | $ | 166.7 | $ | 246.5 | $ | 11.5 | $ | (43.4 | ) | $ | 734.9 | |||||
Adjusted EBITDA margin | 38.9 | % | 32.3 | % | 38.3 | % | 33.2 | % | ||||||||||
Three Months Ended 31 December 2016 | ||||||||||||||||||
Operating income (loss) | $ | 223.3 | $ | 90.0 | $ | 118.4 | $ | 8.2 | $ | (29.1 | ) | $ | 410.8 | |||||
Add: Depreciation and amortization | 111.8 | 42.2 | 46.7 | 2.0 | 3.4 | 206.1 | ||||||||||||
Add: Equity affiliates' income | 14.7 | 9.5 | 13.5 | .3 | — | 38.0 | ||||||||||||
Adjusted EBITDA | $ | 349.8 | $ | 141.7 | $ | 178.6 | $ | 10.5 | $ | (25.7 | ) | $ | 654.9 | |||||
Adjusted EBITDA margin | 40.5 | % | 35.5 | % | 40.7 | % | 34.8 | % | ||||||||||
Adjusted EBITDA change | $ | 3.8 | $ | 25.0 | $ | 67.9 | $ | 1.0 | $ | (17.7 | ) | $ | 80.0 | |||||
Adjusted EBITDA % change | 1 | % | 18 | % | 38 | % | 10 | % | (69 | )% | 12 | % | ||||||
Adjusted EBITDA margin change | (160 | ) bp | (320 | ) bp | (240 | ) bp | (160 | ) bp |
Three Months Ended | ||||||
31 December | ||||||
Operating Income | 2017 | 2016 | ||||
Segment total | $ | 460.7 | $ | 410.8 | ||
Business separation costs | — | (32.5 | ) | |||
Cost reduction and asset actions | — | (50.0 | ) | |||
Consolidated Total | $ | 460.7 | $ | 328.3 |
Three Months Ended | ||||||
31 December | ||||||
Equity Affiliates' Income | 2017 | 2016 | ||||
Segment total | $ | 46.3 | $ | 38.0 | ||
Tax reform repatriation - equity method investment(A) | (32.5 | ) | — | |||
Consolidated Total | $ | 13.8 | $ | 38.0 |
(A) | For additional information on the impact of the U.S. Tax Cuts and Jobs Act, including our equity affiliate impact, refer to Note 17, Income Taxes, to the consolidated financial statements. |
Effective Tax Rate | ||||||
Three Months Ended 31 December | ||||||
2017 | 2016 | |||||
Income Tax Provision—GAAP | $ | 291.8 | $ | 78.4 | ||
Income From Continuing Operations Before Taxes—GAAP | $ | 454.5 | $ | 336.6 | ||
Effective Tax Rate—GAAP | 64.2 | % | 23.3 | % | ||
Income Tax Provision—GAAP | $ | 291.8 | $ | 78.4 | ||
Business separation costs | — | 3.7 | ||||
Tax costs associated with business separation | — | (2.7 | ) | |||
Cost reduction and asset actions | — | 8.8 | ||||
Tax reform repatriation | (420.5 | ) | — | |||
Tax reform rate change and other | 214.0 | — | ||||
Income Tax Provision—Non-GAAP Measure | $ | 85.3 | $ | 88.2 | ||
Income From Continuing Operations Before Taxes—GAAP | $ | 454.5 | $ | 336.6 | ||
Business separation costs | — | 30.2 | ||||
Cost reduction and asset actions | — | 50.0 | ||||
Tax reform repatriation - equity method investment | 32.5 | — | ||||
Income From Continuing Operations Before Taxes—Non-GAAP Measure | $ | 487.0 | $ | 416.8 | ||
Effective Tax Rate—Non-GAAP Measure | 17.5 | % | 21.2 | % |
Three Months Ended | ||||||
31 December | ||||||
2017 | 2016 | |||||
Additions to plant and equipment | $256.6 | $239.2 | ||||
Acquisitions, less cash acquired | 237.1 | — | ||||
Investment in and advances to unconsolidated affiliates | — | 8.8 | ||||
Capital expenditures on a GAAP basis | $493.7 | $248.0 | ||||
Capital lease expenditures(A) | 6.4 | 4.0 | ||||
Capital expenditures on a Non-GAAP basis | $500.1 | $252.0 |
(A) | We utilize a non-GAAP measure in the computation of capital expenditures and include spending associated with facilities accounted for as capital leases. Certain contracts associated with facilities that are built to provide product to a specific customer are required to be accounted for as leases, and such spending is reflected as a use of cash within cash provided by operating activities if the arrangement qualifies as a capital lease. The presentation of this non-GAAP measure is intended to enhance the usefulness of information by providing a measure that our management uses internally to evaluate and manage our expenditures. |
Exhibit No. | Description | |
10.1 | ||
10.2 | ||
10.3 | ||
10.4 | ||
10.5 | ||
12. | ||
31.1 | ||
31.2 | ||
32.1 | ||
101.INS | XBRL Instance Document. The XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | XBRL Taxonomy Extension Schema | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |
101.LAB | XBRL Taxonomy Extension Label Linkbase | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |
† | The certification attached as Exhibit 32 that accompanies this Quarterly Report on Form 10-Q, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Air Products and Chemicals, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-Q, irrespective of any general incorporation language contained in such filing. |
Air Products and Chemicals, Inc. | ||
(Registrant) | ||
Date: 26 January 2018 | By: | /s/ M. Scott Crocco |
M. Scott Crocco | ||
Executive Vice President and Chief Financial Officer |
1. | Restrictive Covenants. |
(a) | Definitions. For purposes of this Paragraph 1, the following words shall have the following definitions. |
(i) | “Affiliate” of a specified Person shall mean any Person which is under common control with the specified Person, or of which the specified Person is an executive officer, manager, trustee, executor or similar controlling Person. |
(ii) | “Company” shall be deemed to include Air Products and Chemicals, Inc. and the subsidiaries and Affiliates of Air Products and Chemicals, Inc. |
(iii) | “Business of the Company” means the production, manufacturing and distribution of industrial gases, including atmospheric and process gases; the designing and manufacturing of equipment for the production, processing, purification distribution or storage of gases or for natural gas liquefaction; and any other line of business conducted, developed or being developed by the Company during your employment with the Company, in each case, in which you are or were involved during the course of your employment with the Company or about which you possess Confidential Information. |
(iv) | “Confidential Information” means any non-public, proprietary confidential or trade secret information of the Company and/or its customers, including but not limited to, business processes, know-how, practices, methods, plans, research, operations, services, strategies, techniques, formulae, manuals, data, notes, diagrams, customer or vendor information, pricing or cost information, product plans, designs, experimental processes and inventions. |
(v) | “Person” means any natural person, corporation, general partnership, limited partnership, limited liability company or partnership, joint venture, proprietorship or other business organization. |
(vi) | “Provide Services” means to directly or indirectly, own, manage, control, or participate in the ownership, management or control of, or be employed or engaged by, participate in, serve on the board of directors of, consult with, contribute to, hold a security interest in, render services for, give advice to, provide assistance to or be otherwise affiliated or associated with. |
(vii) | “Restricted Area” means any country in which you worked during your employment with the Company, over which you had supervisory responsibility for the Business of the Company while employed by the Company, or with respect to which you have Confidential Information pertaining to the Business of the Company. |
(b) | Acknowledgment. |
(i) | You acknowledge and agree that (A) the Business of the Company is intensely competitive and that your employment with the Company has required you to have access to, and knowledge of, Confidential Information, which is of vital importance to the success of the Business of the Company; (B) the use, disclosure or dissemination of any Confidential Information, except on behalf of the Company, could place the Company at a serious competitive disadvantage and could do serious damage, financial and otherwise, to the Business of the Company; and (C) the Company is engaged in business, and has customers, throughout the world. |
(ii) | You further understand and acknowledge that the Company invests in customer relationships and as a result, has developed and will develop considerable goodwill with and among its customers. You agree that the restrictive covenants below are necessary to protect the Company’s legitimate business interests in its Confidential Information and goodwill, and that the Company would not have provided the good and valuable consideration set forth in this Award Agreement in absence of such restrictions. You further understand and acknowledge that the Company will be irreparably harmed if you violate the restrictive covenants below. |
(c) | Confidential Information. |
(i) | You hereby expressly acknowledge and agree that the obligations in this Award Agreement are in addition to, and shall not supersede, obligations you may have pursuant to other agreements with the Company, including, without limitation, your obligations under your Employee Patent and Confidential Information Agreement entered at the time you were employed by the Company, which shall continue to apply in accordance with its terms. |
(ii) | You agree that you have and will at all times hereafter, (A) treat all Confidential Information as strictly confidential; and (B) not directly or indirectly disclose, publish, communicate or make available Confidential Information, or allow it to be disclosed, published, communicated, or made available, in whole or part, to any Person who is not authorized by the Company to know such Confidential Information in the furtherance of the Company’s business. |
(d) | Non-Disparagement. You agree not to directly or indirectly make, or cause to be made, any statement, observation or opinion that disparages or impugns the business or reputation of the Company, its products, services, agents or employees. |
(e) | Permitted Disclosures. Pursuant to 18 U.S.C. § 1833(b), you understand that you will not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret of the Company that (i) is made (A) in confidence to a Federal, State, or local government official, either directly or indirectly, or to your attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. You understand that if you file a lawsuit for retaliation by the Company for reporting a suspected violation of law, you may disclose the trade secret to your attorney and use the trade secret information in the court proceeding if you (I) file any document containing the trade secret under seal, and (II) do not disclose the trade secret, except pursuant to court order. Nothing in this Award Agreement, or any other agreement you have with the Company, is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by such section. Further, nothing in this Award Agreement or any other agreement you have with the Company shall prohibit or restrict you from making any disclosure of information or documents to any governmental agency or legislative body, or any self-regulatory organization, in each case, without advance notice to the Company. |
(f) | Return of Company Property. You represent that upon request from the Company at any time and, without request, upon termination of your employment with the Company for any reason, you will deliver to the Company all memoranda, notes, records, manuals, or other documents, including all electronic or other copies of such materials and all documentation prepared or produced in connection therewith, containing Confidential Information, which is in your possession, custody and control, whether made or compiled by you or furnished to you by virtue of your employment with the Company. You further represent that you will deliver to the Company all vehicles, computers, credit cards, telephones, handheld electronic devices, office equipment and other property furnished to you by virtue of your employment with the Company. |
(g) | Notice. You agree that during your employment with the Company and for two years after your employment with the Company terminates for any reason, you will give the Company ten (10) business days’ written notice of your intention to Provide Services to any other Person that engages in or is preparing to engage in the Business of the Company within the Restricted Area. Such written notice must provide sufficiently detailed information so as to allow the Company to determine if you will be in breach of this Award Agreement if you Provide Services to such other Person. |
(h) | Non-Competition. During your employment by the Company and for two years after your employment with the Company terminates for any reason, you agree that you will not Provide Services to any Person, other than the Company, that engages in or is preparing to engage in the Business of the Company within the Restricted Area, unless (i) such other Person also engages in lines of business that are separate, distinct and divisible from the Business of the Company, (ii) you do not Provide Services, Confidential Information or strategy to the Business of the Company conducted by such other Person, and (iii) you do not attend meetings where the Business of the Company of such other Person is discussed or where you could, even inadvertently, disclose Confidential Information. Your passive ownership of not more than one percent (1%) of the capital stock or other ownership or equity interest, or voting power, in a public company, registered under the Securities Exchange Act of 1934, as amended, shall not be deemed to be a violation of this paragraph. |
(i) | Non-Solicitation; Non-Interference. During your employment by the Company and for two years after your last day of employment with the Company, you also agree that you will not, directly or indirectly without the prior written consent of the Company: |
(i) | encourage, persuade, induce, or attempt to encourage or persuade or induce, any person who is an employee at the grade level of 118 or above, an officer, or a director of the Company, in each case, to terminate such relationship with the Company; or hire or engage, participate in the hiring or engagement of, or solicit or make an offer of employment or engagement to any employee at the grade level of 118 or above, officer or director of the Company who was employed or engaged by the Company as of your last day of employment with the Company. |
(ii) | on behalf of any Person engaged in the Business of the Company (other than the Company) solicit, contact, or attempt to solicit or contact any current, former or prospective customer of the Company whom you had contacted within the twenty-four (24) months prior to your last day of employment with the Company or about whom you have any Confidential Information. |
(iii) | encourage or persuade, or attempt to encourage or persuade any (A) customer of the Company, (B) potential customer of the Company during the last twenty-four (24) months of your employment with the Company with which or with whom you knew to be such a potential customer, or (C) prior customer of the Company, in each case, not to do business with the Company or to reduce the amount of business it is doing or might do in the future with or through the Company. |
(j) | Tolling. If you violate any of the terms of the restrictive covenant obligations articulated herein, the obligation at issue will run from the first date on which you cease to be in violation of such obligation. |
(k) | Successors and Assigns. This Paragraph 1 shall inure to the benefit of the successors and assigns of the Company and therefore the Company may assign this Paragraph 1, without your consent to, including but not limited to, any of its subsidiaries or affiliates or to any successor (whether by merger, purchase, bankruptcy, reorganization or otherwise) to all or substantially all of the equity, assets or businesses of the Company. |
2. | Interpretation. All determinations regarding the interpretation, construction, enforcement, waiver, or modification of this Award Agreement and/or the Plan shall be made in the Company’s sole discretion and shall be final and binding on you and the Company. Determinations made under this Award Agreement and the Plan need not be uniform and may be made selectively among individuals, whether or not such individuals are similarly situated. |
3. | Conflict. If any of the terms of this Award Agreement in the opinion of the Company conflict or are inconsistent with any applicable law or regulation of any governmental agency having jurisdiction, the Company reserves the right to modify this Award Agreement to be consistent with applicable laws or regulations. |
4. | Personal Data. You understand and acknowledge that the Company holds certain personal information about you, including but not limited to your name, home address, telephone number, date of birth, social security number, salary, nationality, job title, and details of all Shares awarded, cancelled, vested, unvested, or outstanding (the “personal data”). Certain personal data may also constitute “sensitive personal data” within the meaning of applicable local law. Such data include but are not limited to the information provided above and any changes thereto and other appropriate personal and financial data about you. You hereby provide explicit consent to the Company and any Subsidiary to process any such personal data and sensitive personal data. You also hereby provide explicit consent to the Company and any Subsidiary to transfer any such personal data and sensitive personal data outside the country in which you are employed, and to the United States. The legal persons for whom such personal data are intended are the Company and any third party providing services to the Company in connection with the administration of the Plan. |
5. | Plan Documents. By accepting this award, you acknowledge having received and read the Plan Prospectus, and you consent to receiving information and materials in connection with this Award or any subsequent awards under the Company’s long-term performance plans, including without limitation any prospectuses and plan documents, by any means of electronic delivery available now and/or in the future (including without limitation by e-mail, by Website access, and/or by facsimile), such consent to remain in effect unless and until revoked in writing by you. This Award Agreement and the Plan, which is incorporated herein by reference, constitute the entire agreement between you and the Company regarding the terms and conditions of this Award. |
6. | Jurisdiction; Governing Law. The parties agree that upon any violation of this Award Agreement, suit may be brought, and the parties consent to personal jurisdiction, in the United States District Court for the Eastern District of Pennsylvania, or in any court of general jurisdiction in Allentown, Pennsylvania; the parties consent to the non-exclusive jurisdiction of any such court in any such suit, action or proceeding; and waive any objection which either party may have to the laying of venue of any such suit, action or proceeding in any such court. This Award Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania without reference to its principles of conflict of law. The parties also irrevocably and unconditionally consents to the service of any process, pleadings, notices, or other papers with respect thereto. EACH PARTY HERETO IRREVOCABLY AGREES TO WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM, OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS AWARD AGREEMENT. |
7. | Modification; Severability. If any court of competent jurisdiction finds any provision of this Award Agreement, and particularly the covenants set forth in Paragraph 1, or portion thereof, to not be fully enforceable, it is the intention and desire of the parties that the provision be fully enforced to the extent the court finds them enforceable and, if necessary, that the court modify any provisions of this Award Agreement to the extent deemed necessary by the court to render them reasonable and enforceable and that the court enforce them to such extent. To the extent that such provisions cannot be modified, it is the intention of the parties that the provisions be severable and that the invalidity of any one or more provisions of this Award Agreement shall not affect the legality, validity and enforceability of the remaining provisions of this Award Agreement. If Paragraph 1 is unenforceable in its entirety, then this Award Agreement shall be considered null and void ab initio. |
8. | Waiver. The failure of the Company to enforce any terms, provisions or covenants of this Exhibit shall not be construed as a waiver of the same or of the right of the Company to enforce the same. Waiver by the Company of any breach or default by you of any term or provision of this Exhibit shall not operate as a waiver of any other breach or default. |
9. | No Contract. Neither your FY2018 Restricted Stock Unit Awards, this Award Agreement, nor the Plan constitute a contract of employment; nor do they guarantee your continued employment for any period required for all or any of your Awards to vest or become exercisable. |
1. | Restrictive Covenants. |
(a) | Definitions. For purposes of this Paragraph 1, the following words shall have the following definitions. |
(i) | “Affiliate” of a specified Person shall mean any Person which is under common control with the specified Person, or of which the specified Person is an executive officer, manager, trustee, executor or similar controlling Person. |
(ii) | “Company” shall be deemed to include Air Products and Chemicals, Inc. and the subsidiaries and Affiliates of Air Products and Chemicals, Inc. |
(iii) | “Business of the Company” means the production, manufacturing and distribution of industrial gases, including atmospheric and process gases; the designing and manufacturing of equipment for the production, processing, purification distribution or storage of gases or for natural gas liquefaction; and any other line of business conducted, developed or being developed by the Company during your employment with the Company, in each case, in which you are or were involved during the course of your employment with the Company or about which you possess Confidential Information. |
(iv) | “Confidential Information” means any non-public, proprietary confidential or trade secret information of the Company and/or its customers, including but not limited to, business processes, know-how, practices, methods, plans, research, operations, services, strategies, techniques, formulae, manuals, data, notes, diagrams, customer or vendor information, pricing or cost information, product plans, designs, experimental processes and inventions. |
(v) | “Person” means any natural person, corporation, general partnership, limited partnership, limited liability company or partnership, joint venture, proprietorship or other business organization. |
(vi) | “Provide Services” means to directly or indirectly, own, manage, control, or participate in the ownership, management or control of, or be employed or engaged by, participate in, serve on the board of directors of, consult with, contribute to, hold a security interest in, render services for, give advice to, provide assistance to or be otherwise affiliated or associated with. |
(vii) | “Restricted Area” means any country in which you worked during your employment with the Company, over which you had supervisory responsibility for the Business of the Company while employed by the Company, or with respect to which you have Confidential Information pertaining to the Business of the Company. |
(b) | Acknowledgment. |
(i) | You acknowledge and agree that (A) the Business of the Company is intensely competitive and that your employment with the Company has required you to have access to, and knowledge of, Confidential Information, which is of vital importance to the success of the Business of the Company; (B) the use, disclosure or dissemination of any Confidential Information, except on behalf of the Company, could place the Company at a serious competitive disadvantage and could do serious damage, financial and otherwise, to the Business of the Company; and (C) the Company is engaged in business, and has customers, throughout the world. |
(ii) | You further understand and acknowledge that the Company invests in customer relationships and as a result, has developed and will develop considerable goodwill with and among its customers. You agree that the restrictive covenants below are necessary to protect the Company’s legitimate business interests in its Confidential Information and goodwill, and that the Company would not have provided the good and valuable consideration set forth in this Award Agreement in absence of such restrictions. You further understand and acknowledge that the Company will be irreparably harmed if you violate the restrictive covenants below. |
(c) | Confidential Information. |
(i) | You hereby expressly acknowledge and agree that the obligations in this Award Agreement are in addition to, and shall not supersede, the obligations you may have pursuant to other agreements with the Company, including, without limitation, your obligations under your Employee Patent and Confidential Information Agreement, entered when you were employed by the Company, which shall continue to apply in accordance with its terms. |
(ii) | You agree that you have and will at all times hereafter, (A) treat all Confidential Information as strictly confidential; and (B) not directly or indirectly disclose, publish, communicate or make available Confidential Information, or allow it to be disclosed, published, communicated, or made available, in whole or part, to any Person who is not authorized by the Company to know such Confidential Information in the furtherance of the Company’s business. |
(d) | Non-Disparagement. You agree not to directly or indirectly make, or cause to be made, any statement, observation or opinion that disparages or impugns the business or reputation of the Company, its products, services, agents or employees. |
(e) | Permitted Disclosures. Pursuant to 18 U.S.C. § 1833(b), you understand that you will not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret of the Company that (i) is made (A) in confidence to a Federal, State, or local government official, either directly or indirectly, or to your attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. You understand that if you file a lawsuit for retaliation by the Company for reporting a suspected violation of law, you may disclose the trade secret to your attorney and use the trade secret information in the court proceeding if you (I) file any document containing the trade secret under seal, and (II) do not disclose the trade secret, except pursuant to court order. Nothing in this Award Agreement, or any other agreement you have with the Company, is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by such section. Further, nothing in this Award Agreement or any other agreement you have with the Company shall prohibit or restrict you from making any disclosure of information or documents to any governmental agency or legislative body, or any self-regulatory organization, in each case, without advance notice to the Company. |
(f) | Return of Company Property. You represent that upon request from the Company at any time and, without request, upon termination of your employment with the Company for any reason, you will deliver to the Company all memoranda, notes, records, manuals, or other documents, including all electronic or other copies of such materials and all documentation prepared or produced in connection therewith, containing Confidential Information, which is in your possession, custody and control, whether made or compiled by you or furnished to you by virtue of your employment with the Company. You further represent that you will deliver to the Company all vehicles, computers, credit cards, telephones, handheld electronic devices, office equipment and other property furnished to you by virtue of your employment with the Company. |
(g) | Notice. You agree that during your employment with the Company and for two years after your employment with the Company terminates for any reason, you will give the Company ten (10) business days’ written notice of your intention to Provide Services to any other Person that engages in or is preparing to engage in the Business of the Company within the Restricted Area. Such written notice must provide sufficiently detailed information so as to allow the Company to determine if you will be in breach of this Award Agreement if you Provide Services to such other Person. |
(h) | Non-Competition. During your employment by the Company and for two years after your employment with the Company terminates for any reason, you agree that you will not Provide Services to any Person, other than the Company, that engages in or is preparing to engage in the Business of the Company within the Restricted Area, unless (i) such other Person also engages in lines of business that are separate, distinct and divisible from the Business of the Company, (ii) you do not Provide Services, Confidential Information or strategy to the Business of the Company conducted by such other Person, and (iii) you do not attend meetings where the Business of the Company conducted by such other Person is discussed or where you could, even inadvertently, disclose Confidential Information. Your passive ownership of not more than one percent (1%) of the capital stock or other ownership or equity interest, or voting power, in a public company, registered under the Securities Exchange Act of 1934, as amended, shall not be deemed to be a violation of this paragraph. |
(i) | Non-Solicitation; Non-Interference. During your employment by the Company and for two years year after your last day of employment with the Company, you also agree that you will not, directly or indirectly without the prior written consent of the Company: |
(i) | encourage, persuade, induce, or attempt to encourage or persuade or induce, any person who is an employee at the grade level of 118 or above, an officer, or a director of the Company, in each case, to terminate such relationship with the Company; or hire or engage, participate in the hiring or engagement of, or solicit or make an offer of employment or engagement to any employee at the grade level of 118 or above, officer or director of the Company who was employed or engaged by the Company as of your last day of employment with the Company. |
(ii) | on behalf of any Person engaged in the Business of the Company (other than the Company) solicit, contact, or attempt to solicit or contact any current, former or prospective customer of the Company whom you had contacted within the twenty-four (24) months prior to your last day of employment with the Company or about whom you have any Confidential Information. |
(iii) | encourage or persuade, or attempt to encourage or persuade any (A) customer of the Company, (B) potential customer of the Company during the last twenty-four (24) months of your employment with the Company with which or with whom you knew to be such a potential customer, or (C) prior customer of the Company, in each case, not to do business with the Company or to reduce the amount of business it is doing or might do in the future with or through the Company. |
(j) | Tolling. If you violate any of the terms of the restrictive covenant obligations articulated herein, the obligation at issue will run from the first date on which you cease to be in violation of such obligation. |
(k) | Successors and Assigns. This Paragraph 1 shall inure to the benefit of the successors and assigns of the Company and therefore the Company may assign this Paragraph 1, without your consent to, including but not limited to, any of its subsidiaries or affiliates or to any successor (whether by merger, purchase, bankruptcy, reorganization or otherwise) to all or substantially all of the equity, assets or businesses of the Company. |
2. | Interpretation. All determinations regarding the interpretation, construction, enforcement, waiver, or modification of this Award Agreement and/or the Plan shall be made in the Company’s sole discretion and shall be final and binding on you and the Company. Determinations made under this Award Agreement and the Plan need not be uniform and may be made selectively among individuals, whether or not such individuals are similarly situated. |
3. | Conflict. If any of the terms of this Award Agreement in the opinion of the Company conflict or are inconsistent with any applicable law or regulation of any governmental agency having jurisdiction, the Company reserves the right to modify this Award Agreement to be consistent with applicable laws or regulations. |
4. | Personal Data. You understand and acknowledge that the Company holds certain personal information about you, including but not limited to your name, home address, telephone number, date of birth, social security number, salary, nationality, job title, and details of all Shares awarded, cancelled, vested, unvested, or outstanding (the “personal data”). Certain personal data may also constitute “sensitive personal data” within the meaning of applicable local law. Such data include but are not limited to the information provided above and any changes thereto and other appropriate personal and financial data about you. You hereby provide explicit consent to the Company and any Subsidiary to process any such personal data and sensitive personal data. You also hereby provide explicit consent to the Company and any Subsidiary to transfer any such personal data and sensitive personal data outside the country in which you are employed, and to the United States. The legal persons for whom such personal data are intended are the Company and any third party providing services to the Company in connection with the administration of the Plan. |
5. | Plan Documents. By accepting this award, you acknowledge having received and read the Plan Prospectus, and you consent to receiving information and materials in connection with this Award or any subsequent awards under the Company’s long-term performance plans, including without limitation any prospectuses and plan documents, by any means of electronic delivery available now and/or in the future (including without limitation by e-mail, by Website access, and/or by facsimile), such consent to remain in effect unless and until revoked in writing by you. This Award Agreement and the Plan, which is incorporated herein by reference, constitute the entire agreement between you and the Company regarding the terms and conditions of this Award. |
6. | Jurisdiction; Governing Law. The parties agree that upon any violation of this Award Agreement, suit may be brought, and the parties consent to personal jurisdiction, in the United States District Court for the Eastern District of Pennsylvania, or in any court of general jurisdiction in Allentown, Pennsylvania; the parties consent to the non-exclusive jurisdiction of any such court in any such suit, action or proceeding; and waive any objection which either party may have to the laying of venue of any such suit, action or proceeding in any such court. This Award Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania without reference to its principles of conflict of law. The parties also irrevocably and unconditionally consents to the service of any process, pleadings, notices, or other papers with respect thereto. EACH PARTY HERETO IRREVOCABLY AGREES TO WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM, OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS AGREEMENT. |
7. | Modification; Severability. If any court of competent jurisdiction finds any provision of this Award Agreement, and particularly the covenants set forth in Paragraph 1, or portion thereof, to not be fully enforceable, it is the intention and desire of the parties that the provision be fully enforced to the extent the court finds them enforceable and, if necessary, that the court modify any provisions of this Award Agreement to the extent deemed necessary by the court to render them reasonable and enforceable and that the court enforce them to such extent. To the extent that such provisions cannot be modified, it is the intention of the parties that the provisions be severable and that the invalidity of any one or more provisions of this Award Agreement shall not affect the legality, validity and enforceability of the remaining provisions of this Award Agreement. If Paragraph 1 is unenforceable in its entirety, then this Award Agreement shall be considered null and void ab initio. |
8. | Waiver. The failure of the Company to enforce any terms, provisions or covenants of this Exhibit shall not be construed as a waiver of the same or of the right of the Company to enforce the same. Waiver by the Company of any breach or default by you of any term or provision of this Exhibit shall not operate as a waiver of any other breach or default. |
9. | No Contract. Neither your FY2018 Performance Share Awards, this Award Agreement, nor the Plan constitute a contract of employment; nor do they guarantee your continued employment for any period required for all or any of your Awards to vest or become exercisable. |
1. | Performance Shares Earned. For the avoidance of doubt, capitalized terms that are otherwise not defined in this Addendum will have the same definition as in the Award Agreement. The number of Performance Shares earned will be determined in accordance with the following formula: |
2. | Payout Factor. The Payout Factor is based on the Company’s TSR Percentile Rank among the Peer Group for the Performance Period. The Initial Payout Factor is determined in accordance with the following schedule: |
Company’s TSR Percentile Rank | Initial Payout Factor |
> 75th %ile | 200% |
> 50th %ile | 100% |
> 30th %ile | 30% |
< 30th %ile | 0% |
3. | Definitions. |
Celanese Corp. | Illinois Tool Works, Inc. |
The Chemours Co. | Ingersoll-Rand, Plc |
Danaher Corp. | Olin Corporation |
Dover Corp. | Parker-Hannifin Corp. |
Eastman Chemical Co. | PPG Industries Inc. |
Ecolab, Inc. | Praxair, Inc. |
Huntsman Corp. |
4. | TSR Percentile Rank. The TSR Percentile Rank will be determined as follows: |
ARTICLE I | PURPOSES | 1 |
1.01 | Purposes | 1 |
ARTICLE II | DEFINITIONS | 1 |
ARTICLE III | ELIGIBILITY, CONTRIBUTIONS, WITHDRAWALS, DISTRIBUTIONS, ROLLOVERS, AND PLAN-TO-PLAN TRANSFERS | 18 |
3.01 | Eligibility and Commencement of Participation | 18 |
3.02 | Before-Tax, Roth 401(k), and Catch-up Contributions | 21 |
3.03 | Company Matching Contributions | 24 |
3.04 | Company Core Contributions | 26 |
3.05 | Company Core Contribution Vesting Rules | 27 |
3.06 | Timing of Contributions | 30 |
3.07 | Nondiscrimination Limitations and Corrective Measures | 30 |
3.08 | In-Service Withdrawals by Participants of After-Tax Contributions, Rollover Contributions, Company Matching Contributions, Before-Tax, Roth 401(k) and Catch-up Contributions | 41 |
3.09 | Loans to Participants | 47 |
3.10 | Distributions Following Distribution Events | 50 |
3.11 | Distributions Pursuant to a Qualified Domestic Regulations Order | 52 |
3.12 | Rollovers into the Plan | 52 |
3.13 | Plan-to-Plan Transfers; Plan Mergers | 53 |
3.14 | Limitation on Annual Additions to Participants’ Accounts | 54 |
3.15 | Application of Top-Heavy Provisions | 56 |
ARTICLE IV | TRUST FUN ANF PARTICIPANT INVESTMENT FUND | 61 |
4.01 | Trust Agreement | 61 |
4.02 | Investment of Contributions in the Participant Investment Funds | 62 |
4.03 | Redirection of Investments of Participant Contributions | 63 |
4.04 | Investment of Company Matching Contributions | 64 |
4.05 | Participants’ Accounts | 64 |
4.06 | Account Statements; Investment Information | 66 |
4.07 | Voting, Tendering, and Similar Rights as to Company Stock | 67 |
ARTICLE IV-A | ESTABLISHMENT OF AN EMPLOYEE STOCK OWNERSHIP PLAN | 69 |
ARTICLE V | MANNER OF DISTRIBUTION OF PARTICIPANT ACCOUNTS | 70 |
5.01 | General | 70 |
5.02 | Designation of Beneficiaries; Spousal Consents | 72 |
5.03 | Direct Rollovers | 73 |
5.04 | Trustee-to-Trustee Transfer | 75 |
5.05 | Protected Distribution Forms for Certain Transferred Balances | 75 |
ARTICLE VI | ADMINISTRATION | 76 |
6.01 | Plan Administrator | 76 |
6.02 | Expenses of Administration | 77 |
6.03 | Powers and Duties of the Plan Administrator | 77 |
6.04 | Powers and Duties of the Investment Committee | 78 |
6.05 | Benefit Claims Procedures | 82 |
6.06 | Fiduciaries | 84 |
6.07 | Adequacy of Communications; Reliance on Reports And Certificates | 85 |
6.08 | Indemnification | 85 |
6.09 | Member’s Own Participation | 86 |
6.10 | Elections | 86 |
ARTICLE VII | AMENDMENT, CORRECTION, AND DISCONTINUANCE | 86 |
7.01 | Right to Amend or Terminate | 86 |
7.02 | Corpus and Income Not to be Diverted | 88 |
7.03 | Merger or Consolidation of Plan | 88 |
7.04 | Correction | 89 |
ARTICLE VIII | GENERAL PROVISIONS | 89 |
8.01 | Nonalienation of Benefits | 89 |
8.02 | Payments to Minors, Incompetents, and Related Situations | 90 |
8.03 | Unclaimed Accounts – Trust Funds | 90 |
8.04 | No Guarantee of Employment | 90 |
8.05 | Governing Law | 91 |
8.06 | Gender, Number, and Headings | 91 |
8.07 | Severability | 91 |
8.08 | Obligations of the Employer | 92 |
8.09 | Effective Date | 92 |
8.10 | Uniformed Services Employment and Reemployment Rights Act | 92 |
8.11 | Use of Electronic Media; Adjustment of Certain Time Periods | 92 |
APPENDIX A | PARTICIPANT INVESTMENT FUNDS | A-1 |
EXHIBIT I | ELIGIBLE NONUNION HOURLY LOCATIONS DESIGNATED BY VICE PRESIDENT – HUMAN RESOURCES | I-1 |
EXHIBIT II | FORMS OF DISTRIBUTION AVAILABLE TO PARTICIPANTS WHO HAD AMOUNTS TRANSFERRED TO THE PLAN FROM THE IGS SAVINGS PLAN | II-1 |
EXHIBIT III | PLAN ELECTIONS | III-1 |
SCHEDULE I | PARTICIPATING EMPLOYERS AS OF January 2016 | S-1 |
Years of Service | Amount of Company Core Contributions |
Less than 10 Years of Service | 4% of Annual Salary |
10-19 Years of Service | 5% of Annual Salary |
20 or more Years of Service | 6% of Annual Salary |
Years of Vesting Service | Percent Vested |
Less than 1 | 0% |
1 | 20% |
2 | 40% |
3 | 60% |
4 | 80% |
5 | 100% |
(a) | Death Benefits. In the case of a death occurring on or after January 1, 2007, if a Participant dies while performing qualified military service (as defined in Code Section 414(u)), the survivors of the Participant are entitled to any additional benefits (other than benefit accruals relating to the period of qualifying military service) provided under the Plan as if the Participant had resumed and then terminated employment on account of death. |
(b) | Differential Wage Payments. For years beginning after December 31, 2008, (i) an individual receiving a differential wage payment, as defined by Code Section 3401(h)(2), shall be treated as an employee of the employer making the payment, (ii) differential wage payment shall be treated as Compensation, and (iii) the Plan shall not be treated as failing to meet the requirements of any provision described in Code Section 414(u)(1)(C) by reason of any contribution or benefit which is based on the differential wage payment. Notwithstanding anything in the Plan to the contrary, differential wage payments shall not be treated as Compensation for purposes of determining contributions under the Plan. |
(c) | Nondiscrimination Requirement. Section 3.16(b)(iii) shall apply only if all employees of the employer performing service in the uniformed services described in Code Section 3401(h)(2)(A) are entitled to receive differential wage payments (as defined in Code Section 3401(h)(2)) on reasonably equivalent terms and, if eligible to participate in a retirement plan maintained by the employer, to make contributions based on the payments on reasonably equivalent terms (taking into account Code Section 410(b)(3),(4) and (5)). |
(d) | For years beginning after December 31, 2008, an individual who is performing service in the uniformed services described in Code Section 3401(h)(2)(A) for a period of at least 30 days, for purposes of Code Section 401(k)(2)(B)(i)(I) shall be treated as severed from employment with the Company and shall have a Distribution Event under Plan Section 3.10. An individual receiving such distribution shall not be able to make an elective deferral to the Plan during the six month period beginning on the date of distribution.” |
Tier 1 – Life Cycle Investment Options § SSgA Target Retirement Income Securities Lending Series Fund Class II § SSgA Target Retirement 2015 Securities Lending Series Fund Class II § SSgA Target Retirement 2020 Securities Lending Series Fund Class II § SSgA Target Retirement 2025 Securities Lending Series Fund Class II § SSgA Target Retirement 2030 Securities Lending Series Fund Class II § SSgA Target Retirement 2035 Securities Lending Series Fund Class II § SSgA Target Retirement 2040 Securities Lending Series Fund Class II § SSgA Target Retirement 2045 Securities Lending Series Fund Class II § SSgA Target Retirement 2050 Securities Lending Series Fund Class II § SSgA Target Retirement 2055 Securities Lending Series Fund Class II § SSgA Target Retirement 2060 Securities Lending Series Fund Class II Tier 2 – Core Investment Options- Passively Managed § Spartan® 500 Index Fund (Ticker Symbol: FXAIX) § Spartan ®Extended Market Index Fund (Ticker Symbol: FSEVX) § Vanguard Total Bond Market Index Fund (Ticker Symbol: VBTIX) § Vanguard Total International Stock Index Fund (Ticker Symbol: VTSNX) Tier 3- Core Investment Options- Actively Managed § Dodge & Cox Balanced Fund (Ticker Symbol: DODBX) § Fidelity® International Discovery Commingled Pool § JPMCB Large Cap Growth Fund § Principal MidCap Blend Fund Institutional Class (Ticker Symbol: PCBIX) § Pyramis Small Capitalization Core Commingled Pool § Stable Value Fund § Vanguard Windsor II Fund – Admiral Shares (Ticker Symbol: VWNAX) § Western Asset Core Plus Bond – CIF R1 Tier 4 – Other Investment Options § Air Products Company Stock Fund § Fidelity BrokerageLink® § Fidelity Money Market Trust Retirement Government Money Market Portfolio The Qualified Default Investment Alternative is the Tier 1 – Life Cycle Investment Option. Contributions will be invested in a particular fund within that Tier based on the Participant’s age in accordance with procedures determined by the Plan Administrator. |
Designated Terminal For 125% of Base Salary | |||
ADAMS, NE | YES | ||
ASHLAND, KY | YES | ||
BEATRICE, NE | YES | ||
BETHLEHEM, PA | YES | ||
BOUNTIFUL, UT | YES | ||
BOZRAH, CT | YES | ||
BROOKHAVEN, MS | YES | ||
BURNS HARBOR, IN | NO | ||
BUTLER, IN | YES | ||
BUTLER, PA | YES | ||
CAMDEN, SC | YES | ||
CARTERSVILLE, GA CHANDLER, AZ | YES YES | ||
CLAREMONT, MN | YES | ||
CONVENT, LA | NO | ||
CONVENT, LA (Drivers) | YES | ||
CONYERS, GA | YES | ||
CREIGHTON, PA | YES | ||
DECATUR, AL | YES | ||
DEER PARK, TX | NO | ||
EAGAN, MN | YES | ||
GLENMONT, NY | YES | ||
GRAY, TN | YES | ||
LANCASTER, PA | YES | ||
LANCASTER, PA (Express Services) | NO | ||
LAPORTE, TX | YES | ||
LASALLE, IL | YES | ||
LIBERAL, KS | YES | ||
LONG BEACH, CA | YES | ||
MALTA BEND, MO MANALAPAN, NJ | YES NO | ||
MARION, IN MCINTOSH, AL | YES YES | ||
MEDINA, NY | YES | ||
MEMPHIS, TN | YES | ||
MIDLOTHIAN, TX | YES | ||
MILTON (CO2), WI | YES | ||
MONROE, WI | YES | ||
MOORELAND, OK | YES | ||
NEVADA, IA | YES |
NEW MARTINSVILLE, WV | YES | ||
NIAGARA FALLS, NY | YES | ||
OAK CREEK, WI | YES | ||
ORLANDO, FL | YES | ||
PACE, FL | YES | ||
PARKERSBURG, WV | YES | ||
PRYOR, OK | YES | ||
PUYALLUP, WA | YES | ||
REIDSVILLE, NC | YES | ||
SHAKOPEE, MN | YES | ||
SMITHVILLE, MO | YES | ||
SPARROWS POINT, MD (Drivers) | YES | ||
SUFFIELD, CT | YES | ||
UNION CITY, IN | YES | ||
YORK, NE | YES | ||
Year Election Applies | Applicable Plan Section | Election |
1997 | 3.07(b)(i),(ii), and (iii) (pages 30-33) | Current year data used to perform ADP, ACP, and multiple use testing. |
Name of Affiliated Company | Participating Employer Since Date | Revocation Date |
ProCal | 2 March 2015 | N/A |
Air Products Energy Enterprising, Inc. | Continuing | N/A |
Air Products Helium, Inc. | Continuing | N/A |
Air Products Manufacturing Co., Inc. | Continuing | N/A |
Air Products LLC | 1 June 2007 | N/A |
Air Products Performance Manufacturing, Inc. (formerly known as “Tomah Products, Inc.” and “Tomah Reserve, Inc.”) | 1 April 2006 | N/A |
Versum Materials US, LLC | 1 August 2016 | 1 October 2016 |
TABLE OF CONTENTS | |
Page | |
Article I DEFINITIONS | 1 |
1.1 “Account(s)” | 1 |
1.2 “Annual Incentive Plan” | 1 |
1.3 “Annual Salary” | 1 |
1.4 “Annual Salary Deferral” | 2 |
1.5 “Benchmark Fund” | 2 |
1.6 “Beneficiary” | 2 |
1.7 “Board” | 2 |
1.8 “Bonus” | 2 |
1.9 “Bonus Deferral” | 3 |
1.1 “Change in Control” | 3 |
1.11 “Claims Committee” | 3 |
1.12 “Code” | 3 |
1.13 “Common Stock” | 3 |
1.14 “Company” | 3 |
1.15 “Company Core Credits” | 3 |
1.16 “Company Matching Credits” | 3 |
1.17 “Deferral” | 4 |
1.18 “Deferred Cash Account” | 4 |
1.19 “Deferred Company Stock Account” | 4 |
1.2 “Disability” | 4 |
1.21 “Distribution Date” | 4 |
1.22 “Earnings” or “Earnings Rate” | 4 |
1.23 “Effective Date” | 4 |
1.24 “Election” | 4 |
1.25 “Eligible Individual” | 4 |
1.26 “Employee” | 4 |
1.27 “Employer” | 4 |
1.28 “Entry Date” | 5 |
1.29 “In‑Service Distribution Date” | 5 |
1.3 “Open Enrollment Period” | 5 |
1.31 “Participant” | 5 |
1.32 “Participating Employer” | 5 |
1.33 “Performance Based Compensation” | 5 |
1.34 “Plan” | 5 |
1.35 “Plan Administrator” | 5 |
1.36 “Plan Year” | 5 |
1.37 “Savings Plan” | 5 |
1.38 “Separation from Service” | 6 |
1.39 “Service” | 6 |
1.4 “Special Bonus” | 6 |
1.41 “Specified Employee” | 6 |
1.42 “Tax Limitations” | 6 |
Article II ELIGIBILITY | 6 |
2.1 Eligibility | 6 |
2.2 Commencement of Participation | 6 |
2.3 Cessation of Participation | 7 |
2.4 Cessation of Eligibility | 7 |
2.5 Eligibility During Leave of Absence | 7 |
Article III DEFERRALS AND CREDITS | 7 |
3.1 Annual Salary Deferrals | 7 |
3.2 Annual Incentive Plan Bonus Deferrals | 8 |
3.3 Special Bonus Deferrals | 8 |
3.4 Company Core Credits | 9 |
3.5 Company Matching Credits | 9 |
3.6 Reporting of Deferrals and Credits | 9 |
3.7 No Withdrawal | 10 |
Article IV VESTING | 10 |
4.1 Vesting of Participants’ Accounts | 10 |
4.2 FICA Taxes | 10 |
Article V ACCOUNTS AND EARNINGS RATE | 11 |
5.1 Accounts | 11 |
5.2 Determination of Earnings Rate | 11 |
5.3 Deferred Company Stock Account | 12 |
Article VI BENEFIT DISTRIBUTIONS AND ACCOUNT WITHDRAWALS | 12 |
6.1 Benefit Amount | 12 |
6.2 Timing of Distributions | 13 |
6.3 Method of Distribution | 13 |
6.4 Election of In‑Service Distribution Date | 13 |
6.5 Distribution Upon Death of Participant | 14 |
6.6 Distribution Upon Disability of Participant | 14 |
6.7 Financial Hardship Withdrawal | 14 |
6.8 Tax Withholding | 15 |
Article VII BENEFICIARIES | 15 |
7.1 Designation of Beneficiary | 15 |
7.2 No Designated Beneficiary | 16 |
Article VIII OBLIGATION TO PAY BENEFITS | 16 |
8.1 Source of Benefit Payments | 16 |
8.2 Investment Discretion | 16 |
8.3 No Secured Interest | 16 |
Article IX PLAN ADMINISTRATION, AMENDMENT AND TERMINATION | 16 |
9.1 Committee Powers and Responsibilities | 16 |
9.2 Claims Procedure | 17 |
9.3 Decisions of the Plan Administrator or the Claims Committee | 18 |
9.4 Plan Amendment | 18 |
9.5 Amendments Upon Changes in Law Affecting Taxation of Participants | 18 |
9.6 Plan Termination | 19 |
Article X MISCELLANEOUS | 19 |
10.1 No Assignment | 19 |
10.2 No Secured Interest | 19 |
10.3 Successors | 19 |
10.4 No Employment Agreement | 19 |
10.5 Attorneys’ Fees | 20 |
10.6 Notice | 20 |
10.7 Validity | 20 |
10.8 Incompetent | 20 |
10.9 Governing Law | 20 |
10.1 Entire Agreement | 20 |
COMPANY: AIR PRODUCTS AND CHEMICALS, INC., By: ______________________________________________ Jennifer L. Grant Senior Vice President and Chief Human Resources Officer |
Three Months Ended | ||||||||||||||||||||
31 December | Year Ended 30 September | |||||||||||||||||||
(Millions of dollars, except ratios) | 2017 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Earnings: | ||||||||||||||||||||
Income from continuing operations(1) | $ | 162.7 | $ | 1,155.2 | $ | 1,122.0 | $ | 965.9 | $ | 691.0 | ||||||||||
Add (deduct): | ||||||||||||||||||||
Provision for income taxes | 291.8 | 260.9 | 432.6 | 300.2 | 258.1 | |||||||||||||||
Fixed charges, excluding capitalized interest | 33.7 | 134.4 | 129.7 | 118.3 | 141.8 | |||||||||||||||
Capitalized interest amortized during the period | 2.7 | 8.2 | 9.7 | 9.8 | 8.7 | |||||||||||||||
Undistributed earnings of equity investees(2) | 34.0 | (60.1 | ) | (51.1 | ) | (101.8 | ) | (74.9 | ) | |||||||||||
Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges | (.8 | ) | (3.1 | ) | (2.6 | ) | (3.0 | ) | (2.8 | ) | ||||||||||
Earnings, as adjusted | $ | 524.1 | $ | 1,495.5 | $ | 1,640.3 | $ | 1,289.4 | $ | 1,021.9 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
Interest on indebtedness, including capital lease obligations | $ | 28.8 | $ | 114.9 | $ | 109.0 | $ | 95.3 | $ | 121.2 | ||||||||||
Capitalized interest | 2.8 | 19.0 | 32.9 | 49.1 | 33.0 | |||||||||||||||
Amortization of debt discount/premium and expense | 1.0 | 5.7 | 6.5 | 8.2 | 3.9 | |||||||||||||||
Portion of rents under operating leases representative of the interest factor | 3.9 | 13.8 | 14.2 | 14.8 | 16.7 | |||||||||||||||
Fixed charges(3) | $ | 36.5 | $ | 153.4 | $ | 162.6 | $ | 167.4 | $ | 174.8 | ||||||||||
Ratio of Earnings to Fixed Charges(4) | 14.4 | 9.7 | 10.1 | 7.7 | 5.8 |
(1) | Income from continuing operations reflects the amount presented on our consolidated income statements and is after-tax and inclusive of income attributable to noncontrolling interests and equity affiliates' income. Fiscal year 2017 includes business restructuring and cost reduction actions of $151.4 ($109.3 attributable to Air Products, after-tax) and a goodwill and intangible asset impairment charge of $162.1 ($154.1 attributable to Air Products, after-tax). Fiscal year 2015 includes business restructuring and cost reduction actions of $180.1 ($132.9 after-tax). Fiscal year 2014 includes a goodwill and intangible asset impairment charge of $310.1 ($275.1 attributable to Air Products, after-tax). |
(2) | Fiscal year 2018 includes $32.5 of expense resulting from the U.S. Tax Cuts and Jobs Act. Fiscal year 2017 does not adjust for the impact of an other-than-temporary impairment of our investment in an equity affiliate. |
(3) | We are party to certain debt guarantees of equity affiliates. Since we have not been required to satisfy the guarantees, nor is it probable that we will, interest expense related to the guaranteed debt is not included in fixed charges. |
(4) | The ratio of earnings to fixed charges is determined by dividing earnings, as adjusted, by fixed charges. Fixed charges consist of interest on all indebtedness (continued and discontinued operations) plus that portion of operating lease rentals representative of the interest factor (deemed to be 21% of operating lease rentals). |
/s/ Seifi Ghasemi |
Seifi Ghasemi |
Chairman, President and Chief Executive Officer |
/s/ M. Scott Crocco |
M. Scott Crocco |
Executive Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: 26 January 2018 | /s/ Seifi Ghasemi | |
Seifi Ghasemi | ||
Chairman, President, and Chief Executive Officer | ||
/s/ M. Scott Crocco | ||
M. Scott Crocco | ||
Executive Vice President and Chief Financial Officer |
Document and Entity Information |
3 Months Ended |
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Dec. 31, 2017
shares
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Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | --09-30 |
Entity Registrant Name | AIR PRODUCTS & CHEMICALS INC /DE/ |
Entity Central Index Key | 0000002969 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 218,939,303 |
Consolidated Comprehensive Income Statements (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 161.7 | $ 306.4 |
Other Comprehensive Income (Loss), net of tax: | ||
Translation adjustments, net of tax of ($6.6) and $32.3 | 136.4 | (281.2) |
Net loss on derivatives, net of tax of ($5.3) and ($10.7) | (9.5) | (9.8) |
Reclassification adjustments: | ||
Currency translation adjustment | 3.1 | 0.0 |
Derivatives, net of tax of $1.7 and $10.6 | 0.8 | 25.6 |
Pension and postretirement benefits, net of tax of $11.0 and $12.9 | 22.9 | 27.4 |
Total Other Comprehensive Income (Loss) | 153.7 | (238.0) |
Comprehensive Income | 315.4 | 68.4 |
Net Income Attributable to Noncontrolling Interests | 7.1 | 6.6 |
Other Comprehensive Income (Loss) Attributable to Noncontrolling Interests | 1.9 | (3.1) |
Comprehensive Income Attributable to Air Products | $ 306.4 | $ 64.9 |
Consolidated Comprehensive Income Statements (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
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Dec. 31, 2017 |
Dec. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Tax effect on translation adjustments | $ (6.6) | $ 32.3 |
Tax effect on net gain (loss) on derivatives | (5.3) | (10.7) |
Tax effect on derivatives reclassification adjustments | 1.7 | 10.6 |
Tax effect on pension and postretirement benefits reclassification adjustments | $ 11.0 | $ 12.9 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Dec. 31, 2017 |
Sep. 30, 2017 |
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Air Products Shareholders’ Equity | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, issued shares | 249,455,584 | 249,455,584 |
Treasury stock at cost, shares | 30,516,281 | 31,109,510 |
Basis of Presentation and Major Accounting Policies |
3 Months Ended |
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Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Major Accounting Policies | BASIS OF PRESENTATION AND MAJOR ACCOUNTING POLICIES Refer to our 2017 Form 10-K for a description of major accounting policies. There have been no significant changes to these accounting policies during the first three months of fiscal year 2018 other than those detailed in Note 2, New Accounting Guidance, under Accounting Guidance Implemented in 2018. Certain prior year information has been reclassified to conform to the fiscal year 2018 presentation. The notes to the interim consolidated financial statements, unless otherwise indicated, are on a continuing operations basis. The consolidated financial statements of Air Products and Chemicals, Inc. and its subsidiaries (“we,” “our,” “us,” the “Company,” “Air Products,” or “registrant”) included herein have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the notes. The interim results for the periods indicated herein, however, do not reflect certain adjustments, such as the valuation of inventories on the last-in, first-out (LIFO) cost basis, which are only finally determined on an annual basis. In order to fully understand the basis of presentation, the consolidated financial statements and related notes included herein should be read in conjunction with the financial statements and notes thereto included in our 2017 Form 10-K. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year.
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New Accounting Guidance |
3 Months Ended |
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Dec. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Guidance | NEW ACCOUNTING GUIDANCE Accounting Guidance Implemented in 2018 Presentation of Net Periodic Pension and Postretirement Benefit Cost In March 2017, the Financial Accounting Standards Board (FASB) issued guidance for improving the presentation of net periodic pension cost and net periodic postretirement benefit cost. The amendments require that the service cost component of the net periodic benefit cost be presented in the same operating income line items as other compensation costs arising from services rendered by employees during the period. The non-service costs (e.g., interest cost, expected return on plan assets, amortization of actuarial gains/losses, settlements) should be presented in the income statement outside of operating income. The amendments also allow only the service cost component to be eligible for capitalization when applicable. We early adopted this guidance during the first quarter of fiscal year 2018. The amendments have been applied retrospectively for the income statement presentation requirements and prospectively for the limit on costs eligible for capitalization. The Company applied the practical expedient to use the amounts disclosed in its retirement benefits note for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. Prior to adoption of the guidance, we classified all net periodic benefit costs within operating costs, primarily within "Cost of sales" and "Selling and administrative" on the consolidated income statements. The line item classification changes required by the new guidance did not impact the Company's pre‑tax earnings or net income; however, "Operating income" and "Other non-operating income (expense), net" changed by immaterial offsetting amounts. Derivative Contract Novations In March 2016, the FASB issued guidance to clarify that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require re-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. We adopted this guidance in the first quarter of fiscal year 2018. This guidance did not have an impact on our consolidated financial statements upon adoption. New Accounting Guidance to be Implemented Revenue Recognition In May 2014, the FASB issued guidance based on the principle that revenue is recognized in an amount expected to be collected and to which the entity expects to be entitled in exchange for the transfer of goods or services. We will adopt this guidance in fiscal year 2019 under the modified retrospective approach, which will result in a cumulative-effect adjustment as of 1 October 2018. We are in the process of evaluating and implementing necessary changes to accounting policies, processes, controls and systems to enable compliance with this new standard. We continue to evaluate the impact the adoption of this standard will have on our consolidated financial statements and related disclosures. Leases In February 2016, the FASB issued guidance which requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for all leases, including operating leases, with a term in excess of 12 months. The guidance also expands the quantitative and qualitative disclosure requirements. The guidance is effective in fiscal year 2020, with early adoption permitted, and must be applied using a modified retrospective approach. We are currently evaluating the impact of adopting this new guidance on the consolidated financial statements, including the assessment of our current lease population under the revised definition of what qualifies as a leased asset. The Company is the lessee under various agreements for real estate, distribution equipment, aircraft, and vehicles that are currently accounted for as operating leases. The new guidance will require the Company to record operating leases on the balance sheet with a right-of-use asset and corresponding liability for future payment obligations. Credit Losses on Financial Instruments In June 2016, the FASB issued guidance on the measurement of credit losses, which requires measurement and recognition of expected credit losses for financial assets, including trade receivables and capital lease receivables, held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The method to determine a loss is different from the existing guidance, which requires a credit loss to be recognized when it is probable. The guidance is effective beginning in fiscal year 2021, with early adoption permitted beginning in fiscal year 2020. We are currently evaluating the impact this guidance will have on our consolidated financial statements. Cash Flow Statement Classification In August 2016, the FASB issued guidance to reduce diversity in practice on how certain cash receipts and cash payments are classified in the statement of cash flows. The guidance is effective beginning fiscal year 2019, with early adoption permitted, and should be applied retrospectively. We are currently evaluating the impact of adopting this new guidance on the consolidated financial statements. Intra-Entity Asset Transfers In October 2016, the FASB issued guidance on the accounting for the income tax effects of intra-entity transfers of assets other than inventory. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. Under the new guidance, the income tax consequences of an intra-entity asset transfer are recognized when the transfer occurs. The guidance is effective beginning in fiscal year 2019, with early adoption permitted as of the beginning of an annual reporting period. The guidance must be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the date of adoption. We are currently evaluating the impact this guidance will have on our consolidated financial statements and plan to adopt the guidance in fiscal year 2019. Derecognition of Nonfinancial Assets In February 2017, the FASB issued an update to clarify the scope of guidance on gains and losses from the derecognition of nonfinancial assets and to add guidance for partial sales of nonfinancial assets. The update must be adopted at the same time as the new guidance on revenue recognition discussed above, which we will adopt in fiscal year 2019. The guidance may be applied retrospectively or with a cumulative-effect adjustment to retained earnings at the date of adoption. We are currently evaluating the impact this update will have on our consolidated financial statements. Hedging Activities In August 2017, the FASB issued guidance on hedging activities to expand the related presentation and disclosure requirements, change how companies assess effectiveness, and eliminate the separate measurement and reporting of hedge ineffectiveness. The guidance also enables more financial and nonfinancial hedging strategies to become eligible for hedge accounting. The guidance is effective in fiscal year 2020, with early adoption permitted. For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment to eliminate the separate measurement of ineffectiveness within equity as of the beginning of the fiscal year the guidance is adopted. The amended presentation and disclosure guidance is applied prospectively. We are currently evaluating the impact this guidance will have on our consolidated financial statements.
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | DISCONTINUED OPERATIONS The results of our former Performance Materials Division (PMD) and Energy-from-Waste (EfW) segment are reflected in our consolidated financial statements as discontinued operations for all periods presented. During the second quarter of fiscal year 2017, we completed the sale of PMD to Evonik Industries AG (Evonik) for $3.8 billion in cash. A gain of $2,870 ($1,828 after-tax, or $8.32 per share) was recognized on the sale, which closed on 3 January 2017. In fiscal year 2016, we discontinued efforts to start up and operate two EfW projects located in Tees Valley, United Kingdom. During the second quarter of fiscal year 2016, we recorded an initial loss on disposal of $945.7 ($846.6 after-tax) to write down plant assets to their estimated net realizable value and record a liability for plant disposition and other costs. Income tax benefits related only to one of the projects as the other did not qualify for a local tax deduction. During the first quarter of fiscal year 2017, we recorded an additional loss on disposal of $59.3 ($47.1 after-tax), primarily for land lease obligations and to update our estimate of the net realizable value of the plant assets as of 31 December 2016. There have been no significant changes to our estimates as of 31 December 2017. The losses on disposal were recorded as a component of discontinued operations while the liability associated with land lease obligations was recorded in continuing operations. The remaining carrying amount of the accrual in discontinued operations at 31 December 2017 was not material. Summarized Financial Information of Discontinued Operations For the three months ended 31 December 2017, the loss from discontinued operations, net of tax, on the consolidated income statements of $1.0 related to ongoing EfW project exit activities and administrative costs. The following table details the businesses and major line items that comprise income from discontinued operations, net of tax, on the consolidated income statements for the three months ended 31 December 2016:
Current assets of discontinued operations on the consolidated balance sheets of $10.2 as of 31 December 2017 and 30 September 2017 relate to the remaining EfW plant and equipment. Current liabilities of discontinued operations on the consolidated balance sheets of $13.6 and $15.7 as of 31 December 2017 and 30 September 2017, respectively, primarily relate to reserves associated with the disposition of PMD.
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Materials Technologies Separation |
3 Months Ended |
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Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Materials Technologies Separation | MATERIALS TECHNOLOGIES SEPARATION In fiscal year 2017, we completed the separation of the divisions comprising the former Materials Technologies segment. As further discussed below, we completed the separation of the Electronic Materials Division (EMD) through the spin-off of Versum Materials, Inc. (Versum). For information on the disposition of PMD, refer to Note 3, Discontinued Operations. Spin-off of EMD On 1 October 2016 (the distribution date), Air Products completed the spin-off of Versum into a separate and independent public company. The spin-off was completed by way of a distribution to Air Products’ stockholders of all of the then issued and outstanding shares of common stock of Versum on the basis of one share of Versum common stock for every two shares of Air Products’ common stock held as of the close of business on 21 September 2016 (the record date for the distribution). Fractional shares of Versum common stock were not distributed to Air Products' common stockholders. Air Products’ stockholders received cash in lieu of fractional shares. The spin-off of Versum was treated as a noncash transaction in the consolidated statements of cash flows in fiscal year 2017. There has been no activity in discontinued operations on the consolidated income statements and no assets or liabilities presented in discontinued operations on the consolidated balance sheets related to EMD for the periods presented. Business Separation Costs In connection with the dispositions of EMD and PMD, we incurred net separation costs of $30.2 during the first quarter of fiscal year 2017. The net costs include legal and advisory fees of $32.5, which are reflected on the consolidated income statements as “Business separation costs,” and a pension settlement benefit of $2.3 that is now presented within "Other non-operating income (expense), net" as a result of the adoption of pension guidance at the beginning of fiscal year 2018. Refer to Note 2, New Accounting Guidance, for additional information. Our income tax provision for the three months ended 31 December 2016 includes additional tax expense of $2.7 related to the separation. No business separation costs were incurred during fiscal year 2018.
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Cost Reduction and Asset Actions |
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Cost Reduction and Asset Actions | COST REDUCTION AND ASSET ACTIONS In the first quarter of fiscal year 2017, we recognized a net expense of $50.0, which included $45.7 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. In fiscal year 2017, we recognized a net expense of $151.4. The net expense included a charge of $154.8 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 $88.5 included charges resulting from the write-down of an air separation unit in the Industrial Gases – EMEA segment discussed above, 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. During fiscal year 2017, severance and other benefits totaled $66.3 and related to the elimination or planned elimination of approximately 625 positions, primarily in the Corporate and other segment and in the Industrial Gases – EMEA segment. The actions in the Corporate and other segment were driven by the reorganization of our engineering, manufacturing, and technology functions. The 2017 charge related to the segments as follows: $39.3 in Industrial Gases – Americas, $77.9 in Industrial Gases – EMEA, $.9 in Industrial Gases – Asia, $2.5 in Industrial Gases – Global, and $34.2 in Corporate and other. In the first quarter of fiscal year 2018, cash expenditures for severance and other benefits totaled $13.5. 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 31 December 2017:
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Business Combinations |
3 Months Ended |
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Dec. 31, 2017 | |
Business Acquisition [Line Items] | |
Business Combinations | BUSINESS COMBINATIONS During the first quarter of fiscal year 2018, we completed three acquisitions with an aggregate purchase price, net of cash acquired, of $237.1. The largest acquisition consists primarily of three air separation units serving onsite and merchant customers in China. This acquisition is expected to strengthen our position in the region. The results of this business are consolidated within our Industrial Gases – Asia segment. The first quarter 2018 acquisitions resulted in the recognition of $148.5 of plant and equipment, $53.7 of goodwill, $3.0 of which is deductible for tax purposes, and $53.4 of intangible assets, primarily customer relationships, having a weighted-average useful life of twelve years. The goodwill recognized on the transactions is attributable to expected growth and cost synergies and was primarily recorded in the Industrial Gases – Asia segment.
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Inventories |
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Inventories | INVENTORIES The components of inventories are as follows:
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Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | GOODWILL Changes to the carrying amount of consolidated goodwill by segment for the three months ended 31 December 2017 are as follows:
We review goodwill for impairment annually in the fourth quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying value of goodwill might not be recoverable. The accumulated impairment losses of $433.6 as of 31 December 2017 are attributable to LASA within the Industrial Gases– Americas segment and include impairment charges recorded in previous years as well as the impacts of currency translation on the losses.
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Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | FINANCIAL INSTRUMENTS Currency Price Risk Management Our earnings, cash flows, and financial position are exposed to foreign currency risk from foreign currency-denominated transactions and net investments in foreign operations. It is our policy to seek to minimize our cash flow volatility from changes in currency exchange rates. This is accomplished by identifying and evaluating the risk that our cash flows will change in value due to changes in exchange rates and by executing the appropriate strategies necessary to manage such exposures. Our objective is to maintain economically balanced currency risk management strategies that provide adequate downside protection. Forward Exchange Contracts We enter into forward exchange contracts to reduce the cash flow exposure to foreign currency fluctuations associated with highly anticipated cash flows and certain firm commitments, such as the purchase of plant and equipment. We also enter into forward exchange contracts to hedge the cash flow exposure on intercompany loans. This portfolio of forward exchange contracts consists primarily of Euros and U.S. Dollars. The maximum remaining term of any forward exchange contract currently outstanding and designated as a cash flow hedge at 31 December 2017 is 1.5 years. Forward exchange contracts are also used to hedge the value of investments in certain foreign subsidiaries and affiliates by creating a liability in a currency in which we have a net equity position. The primary currency pair in this portfolio of forward exchange contracts is Euros and U.S. Dollars. In addition to the forward exchange contracts that are designated as hedges, we utilize forward exchange contracts that are not designated as hedges. The primary objective of these forward exchange contracts is to protect the value of foreign currency-denominated monetary assets and liabilities, primarily working capital, from the effects of volatility in foreign exchange rates that might occur prior to their receipt or settlement. This portfolio of forward exchange contracts comprises many different foreign currency pairs, with a profile that changes from time to time depending on business activity and sourcing decisions. The table below summarizes our outstanding currency price risk management instruments:
In addition to the above, we use foreign currency-denominated debt to hedge the foreign currency exposures of our net investment in certain foreign subsidiaries. The designated foreign currency-denominated debt and related accrued interest included €909.0 million ($1,091.2) at 31 December 2017 and €912.2 million ($1,077.7) at 30 September 2017. The designated foreign currency-denominated debt is located on the balance sheet in the long-term debt line item. Debt Portfolio Management It is our policy to identify on a continuing basis the need for debt capital and evaluate the financial risks inherent in funding the Company with debt capital. Reflecting the result of this ongoing review, the debt portfolio and hedging program are managed with the objectives and intent to (1) reduce funding risk with respect to borrowings made by us to preserve our access to debt capital and provide debt capital as required for funding and liquidity purposes, and (2) manage the aggregate interest rate risk and the debt portfolio in accordance with certain debt management parameters. Interest Rate Management Contracts We enter into interest rate swaps to change the fixed/variable interest rate mix of our debt portfolio in order to maintain the percentage of fixed- and variable-rate debt within the parameters set by management. In accordance with these parameters, the agreements are used to manage interest rate risks and costs inherent in our debt portfolio. Our interest rate management portfolio generally consists of fixed-to-floating interest rate swaps (which are designated as fair value hedges), pre-issuance interest rate swaps and treasury locks (which hedge the interest rate risk associated with anticipated fixed-rate debt issuances and are designated as cash flow hedges), and floating-to-fixed interest rate swaps (which are designated as cash flow hedges). At 31 December 2017, the outstanding interest rate swaps were denominated in U.S. Dollars. The notional amount of the interest rate swap agreements is equal to or less than the designated debt being hedged. When interest rate swaps are used to hedge variable-rate debt, the indices of the swaps and the debt to which they are designated are the same. It is our policy not to enter into any interest rate management contracts which lever a move in interest rates on a greater than one-to-one basis. Cross Currency Interest Rate Swap Contracts We enter into cross currency interest rate swap contracts when our risk management function deems necessary. These contracts may entail both the exchange of fixed- and floating-rate interest payments periodically over the life of the agreement and the exchange of one currency for another currency at inception and at a specified future date. The contracts are used to hedge either certain net investments in foreign operations or non-functional currency cash flows related to intercompany loans. The current cross currency interest rate swap portfolio consists of fixed-to-fixed swaps primarily between U.S. Dollars and offshore Chinese Renminbi, U.S. Dollars and Chilean Pesos, and U.S. Dollars and British Pound Sterling. The following table summarizes our outstanding interest rate management contracts and cross currency interest rate swaps:
The table below summarizes the fair value and balance sheet location of our outstanding derivatives:
Refer to Note 10, Fair Value Measurements, which defines fair value, describes the method for measuring fair value, and provides additional disclosures regarding fair value measurements. The table below summarizes the gain or loss related to our cash flow hedges, fair value hedges, net investment hedges, and derivatives not designated as hedging instruments:
The amount of cash flow hedges’ unrealized gains and losses at 31 December 2017 that are expected to be reclassified to earnings in the next twelve months is approximately $14. The balance primarily consists of losses on forward exchange contracts that hedged foreign currency exposures for a sale of equipment project and intercompany loans. The cash flows related to all derivative contracts are reported in the operating activities section of the consolidated statements of cash flows. Credit Risk-Related Contingent Features Certain derivative instruments are executed under agreements that require us to maintain a minimum credit rating with both Standard & Poor’s and Moody’s. If our credit rating falls below this threshold, the counterparty to the derivative instruments has the right to request full collateralization on the derivatives’ net liability position. The net liability position of derivatives with credit risk-related contingent features was $78.7 as of 31 December 2017 and $34.6 as of 30 September 2017. Because our current credit rating is above the various pre-established thresholds, no collateral has been posted on these liability positions. Counterparty Credit Risk Management We execute financial derivative transactions with counterparties that are highly rated financial institutions, all of which are investment grade at this time. Some of our underlying derivative agreements give us the right to require the institution to post collateral if its credit rating falls below the pre-established thresholds with Standard & Poor’s or Moody’s. The collateral that the counterparties would be required to post was $100.6 as of 31 December 2017 and $138.5 as of 30 September 2017. No financial institution is required to post collateral at this time, as all have credit ratings at or above threshold.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as an exit price, i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows:
The methods and assumptions used to measure the fair value of financial instruments are as follows: Short-term Investments Short-term investments primarily include time deposits and treasury securities with original maturities greater than three months and less than one year. The estimated fair value of the short-term investments, which approximates carrying value as of 31 December 2017 and 30 September 2017, was determined using level 2 inputs within the fair value hierarchy. Level 2 measurements were based on current interest rates for similar investments with comparable credit risk and time to maturity. Derivatives The fair value of our interest rate management contracts and forward exchange contracts are quantified using the income approach and are based on estimates using standard pricing models. These models take into account the value of future cash flows as of the balance sheet date, discounted to a present value using discount factors that match both the time to maturity and currency of the underlying instruments. The computation of the fair values of these instruments is generally performed by the Company. These standard pricing models utilize inputs which are derived from or corroborated by observable market data such as interest rate yield curves as well as currency spot and forward rates. Therefore, the fair value of our derivatives is classified as a level 2 measurement. On an ongoing basis, we randomly test a subset of our valuations against valuations received from the transaction’s counterparty to validate the accuracy of our standard pricing models. Counterparties to these derivative contracts are highly rated financial institutions. Refer to Note 9, Financial Instruments, for a description of derivative instruments, including details on the balance sheet line classifications. Long-term Debt The fair value of our debt is based on estimates using standard pricing models that take into account the value of future cash flows as of the balance sheet date, discounted to a present value using discount factors that match both the time to maturity and currency of the underlying instruments. These standard valuation models utilize observable market data such as interest rate yield curves and currency spot rates. Therefore, the fair value of our debt is classified as a level 2 measurement. We generally perform the computation of the fair value of these instruments. The carrying values and fair values of financial instruments were as follows:
The carrying amounts reported in the balance sheet for cash and cash items, short-term investments, trade receivables, payables and accrued liabilities, accrued income taxes, and short-term borrowings approximate fair value due to the short-term nature of these instruments. Accordingly, these items have been excluded from the above table. The following table summarizes assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets:
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Retirement Benefits |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits | RETIREMENT BENEFITS The components of net periodic benefit cost for the defined benefit pension plans for the three months ended 31 December 2017 and 2016 were as follows:
(A)Includes total service costs from discontinued operations of $1.3 for the three months ended 31 December 2016. There was no discontinued operations activity for the three months ended 31 December 2017. As noted in Note 2, New Accounting Guidance, we early adopted guidance on the presentation of net periodic pension and postretirement benefit cost during the first quarter of fiscal year 2018. The amendments require that the service cost component of the net periodic benefit cost be presented in the same line items as other compensation costs arising from services rendered by employees during the period. The non-service related costs are presented outside of operating income in "Other non-operating income (expense), net." Service costs are primarily included in "Cost of sales" and "Selling and administrative" on our consolidated income statements. The costs capitalized in fiscal year 2018 and 2017 were not material. For the three months ended 31 December 2017 and 2016, our cash contributions to funded pension plans and benefit payments under unfunded pension plans were $27.4 and $24.9, respectively. Total contributions for fiscal year 2018 are expected to be approximately $50 to $70. During fiscal year 2017, total contributions were $64.1.
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Commitments and Contingencies |
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Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation We are involved in various legal proceedings, including commercial, competition, environmental, health, safety, product liability, and insurance matters. In September 2010, the Brazilian Administrative Council for Economic Defense (CADE) issued a decision against our Brazilian subsidiary, Air Products Brasil Ltda., and several other Brazilian industrial gas companies for alleged anticompetitive activities. CADE imposed a civil fine of R$179.2 million (approximately $54 at 31 December 2017) on Air Products Brasil Ltda. This fine was based on a recommendation by a unit of the Brazilian Ministry of Justice, whose investigation began in 2003, alleging violation of competition laws with respect to the sale of industrial and medical gases. The fines are based on a percentage of our total revenue in Brazil in 2003. We have denied the allegations made by the authorities and filed an appeal in October 2010 with the Brazilian courts. On 6 May 2014, our appeal was granted and the fine against Air Products Brasil Ltda. was dismissed. CADE has appealed that ruling and the matter remains pending. We, with advice of our outside legal counsel, have assessed the status of this matter and have concluded that, although an adverse final judgment after exhausting all appeals is possible, such a judgment is not probable. As a result, no provision has been made in the consolidated financial statements. We estimate the maximum possible loss to be the full amount of the fine of R$179.2 million (approximately $54 at 31 December 2017) plus interest accrued thereon until final disposition of the proceedings. Other than this matter, we do not currently believe there are any legal proceedings, individually or in the aggregate, that are reasonably possible to have a material impact on our financial condition, results of operations, or cash flows. Environmental In the normal course of business, we are involved in legal proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA: the federal Superfund law); Resource Conservation and Recovery Act (RCRA); and similar state and foreign environmental laws relating to the designation of certain sites for investigation or remediation. Presently, there are approximately 32 sites on which a final settlement has not been reached where we, along with others, have been designated a potentially responsible party by the Environmental Protection Agency or are otherwise engaged in investigation or remediation, including cleanup activity at certain of our current and former manufacturing sites. We continually monitor these sites for which we have environmental exposure. Accruals for environmental loss contingencies are recorded when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The consolidated balance sheets at 31 December 2017 and 30 September 2017 included an accrual of $81.4 and $83.6, respectively, primarily as part of other noncurrent liabilities. The environmental liabilities will be paid over a period of up to 30 years. We estimate the exposure for environmental loss contingencies to range from $81 to a reasonably possible upper exposure of $95 as of 31 December 2017. Actual costs to be incurred at identified sites in future periods may vary from the estimates, given inherent uncertainties in evaluating environmental exposures. Using reasonably possible alternative assumptions of the exposure level could result in an increase to the environmental accrual. Due to the inherent uncertainties related to environmental exposures, a significant increase to the reasonably possible upper exposure level could occur if a new site is designated, the scope of remediation is increased, a different remediation alternative is identified, or a significant increase in our proportionate share occurs. We do not expect that any sum we may have to pay in connection with environmental matters in excess of the amounts recorded or disclosed above would have a material adverse impact on our financial position or results of operations in any one year. PACE At 31 December 2017, $28.5 of the environmental accrual was related to the Pace facility. In 2006, we sold our Amines business, which included operations at Pace, Florida, and recognized a liability for retained environmental obligations associated with remediation activities at Pace. We are required by the Florida Department of Environmental Protection (FDEP) and the United States Environmental Protection Agency (USEPA) to continue our remediation efforts. We estimated that it would take a substantial period of time to complete the groundwater remediation, and the costs through completion were estimated to range from $42 to $52. As no amount within the range was a better estimate than another, we recognized a pretax expense in fiscal 2006 of $42 as a component of income from discontinued operations and recorded an environmental accrual of $42 in continuing operations on the consolidated balance sheets. There has been no change to the estimated exposure range related to the Pace facility. We have implemented many of the remedial corrective measures at the Pace facility required under 1995 Consent Orders issued by the FDEP and the USEPA. Contaminated soils have been bioremediated, and the treated soils have been secured in a lined on-site disposal cell. Several groundwater recovery systems have been installed to contain and remove contamination from groundwater. We completed an extensive assessment of the site to determine how well existing measures are working, what additional corrective measures may be needed, and whether newer remediation technologies that were not available in the 1990s might be suitable to more quickly and effectively remove groundwater contaminants. Based on assessment results, we completed a focused feasibility study that has identified alternative approaches that may more effectively remove contaminants. We continue to review alternative remedial approaches with the FDEP and have started additional field work to support the design of an improved groundwater recovery network with the objective of targeting areas of higher contaminant concentration and avoiding areas of high groundwater iron which has proven to be a significant operability issue for the project. In the first quarter of 2015, we entered into a new Consent Order with the FDEP requiring us to continue our remediation efforts at the Pace facility. The costs we are incurring under the new Consent Order are consistent with our previous estimates. PIEDMONT At 31 December 2017, $16.4 of the environmental accrual was related to the Piedmont site. On 30 June 2008, we sold our Elkton, Maryland, and Piedmont, South Carolina, production facilities and the related North American atmospheric emulsions and global pressure sensitive adhesives businesses. In connection with the sale, we recognized a liability for retained environmental obligations associated with remediation activities at the Piedmont site. This site is under active remediation for contamination caused by an insolvent prior owner. We are required by the South Carolina Department of Health and Environmental Control (SCDHEC) to address both contaminated soil and groundwater. Numerous areas of soil contamination have been addressed, and contaminated groundwater is being recovered and treated. On 13 June 2017, the SCDHEC issued its final approval to the site-wide feasibility study, and with that, we will be moving towards a record of decision for the Piedmont site and into the final remedial design phase of this project. We estimate that it will take until 2019 to complete source area remediation, with groundwater recovery and treatment continuing through 2029. Thereafter, we are expecting this site to go into a state of monitored natural attenuation through 2047. We recognized a pretax expense in 2008 of $24 as a component of income from discontinued operations and recorded an environmental liability of $24 in continuing operations on the consolidated balance sheets. There have been no significant changes to the estimated exposure. PASADENA At 31 December 2017, $12.0 of the environmental accrual was related to the Pasadena site. During the fourth quarter of 2012, management committed to permanently shutting down our polyurethane intermediates (PUI) production facility in Pasadena, Texas. In shutting down and dismantling the facility, we have undertaken certain obligations related to soil and groundwater contaminants. We have been pumping and treating groundwater to control off-site contaminant migration in compliance with regulatory requirements and under the approval of the Texas Commission on Environmental Quality (TCEQ). We estimate that the pump and treat system will continue to operate until 2042. We plan to perform additional work to address other environmental obligations at the site. This additional work includes remediating, as required, impacted soils, investigating groundwater west of the former PUI facility, performing post closure care for two closed RCRA surface impoundment units, and establishing engineering controls. In 2012, we estimated the total exposure at this site to be $13. There have been no significant changes to the estimated exposure.
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Share-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | SHARE-BASED COMPENSATION We have various share-based compensation programs, which include deferred stock units, stock options, and restricted stock. During the three months ended 31 December 2017, we granted market-based and time-based deferred stock units. Under all programs, the terms of the awards are fixed at the grant date. We issue shares from treasury stock upon the payout of deferred stock units, the exercise of stock options, and the issuance of restricted stock awards. As of 31 December 2017, there were 4,627,480 shares available for future grant under our Long-Term Incentive Plan (LTIP), which is shareholder approved. Share-based compensation cost recognized in continuing operations on the consolidated income statements is summarized below:
Before-tax share-based compensation cost is primarily included in selling and administrative expense on our consolidated income statements. The amount of share-based compensation cost capitalized in fiscal year 2018 and 2017 was not material. Deferred Stock Units During the three months ended 31 December 2017, we granted 99,130 market-based deferred stock units. The market-based deferred stock units are earned out at the end of a performance period beginning 1 October 2017 and ending 30 September 2020, conditioned on the level of the Company’s total shareholder return in relation to a defined peer group over the three-year performance period. The market-based deferred stock units had an estimated grant-date fair value of $202.47 per unit, which was estimated using a Monte Carlo simulation model. The model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the grant and calculates the fair value of the awards. We generally expense the grant-date fair value of these awards on a straight-line basis over the vesting period. The calculation of the fair value of market-based deferred stock units used the following assumptions:
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Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | EQUITY The following is a summary of the changes in total equity:
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Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The tables below summarize changes in accumulated other comprehensive loss (AOCL), net of tax, attributable to Air Products for the three months ended 31 December 2017:
The table below summarizes the reclassifications out of accumulated other comprehensive loss and the affected line item on the consolidated income statements:
(B) The components of net periodic benefit cost reclassified out of accumulated other comprehensive loss include items such as prior service cost amortization, actuarial loss amortization, and settlements and are included in “Other non-operating income (expense), net” on the consolidated income statements. Refer to Note 11, Retirement Benefits, for additional information.
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Earnings per Share |
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Earnings per Share | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share:
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Income Taxes |
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Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES U.S. Tax Cuts and Jobs Act ("the Act") On 22 December 2017, the United States enacted the U.S. Tax Cuts and Jobs Act (“the Act”) which significantly changed existing U.S. tax laws, including a reduction in the federal corporate income tax rate from 35% to 21%, a deemed repatriation tax on unremitted foreign earnings, as well as other changes. As a result of the Act, our consolidated income statements reflect a net expense of $239.0 in the first quarter of fiscal year 2018. This includes an expense of $453.0 for the cost of the deemed repatriation tax and adjustments to the future cost of repatriation from foreign investments. This expense impacted our income tax provision by $420.5 and equity affiliate income by $32.5 for future costs of repatriation that will be borne by an equity affiliate. In addition, the income tax provision was benefited by $214.0 primarily from the re-measurement of our net U.S. deferred tax liabilities at the lower corporate tax rate. The $420.5 adjustment recorded in the first quarter reflects a deemed repatriation tax of $364.1 that is payable over eight years and $56.4 resulting primarily from withholding taxes that were established for repatriation of foreign earnings and other impacts of the Act. We expect to apply $53.8 of existing foreign tax credits towards the $364.1 deemed repatriation tax. Of the remaining $310.3 obligation, $296.6 is recorded on our consolidated balance sheets in noncurrent liabilities. We are reporting the impacts of the Act provisionally based upon reasonable estimates. The impacts are not yet finalized as they are dependent on factors and analysis not yet known or fully completed, including but not limited to, the final cash balances for fiscal year 2018, further book to U.S. tax adjustments for the earnings of foreign entities, the issuance of additional guidance, as well as our ongoing analysis of the Act. As a fiscal year-end taxpayer, certain provisions of the Act become effective in our fiscal year 2018 while other provisions do not become effective until fiscal year 2019. The corporate tax rate reduction is effective as of 1 January 2018 and, accordingly, reduces our 2018 fiscal year U.S. federal statutory rate to a blended rate of approximately 24.5%. Primarily due to the impact of the Act, our effective tax rate was 64.2% for our first quarter ended 31 December 2017. Cash Paid for Taxes (Net of Cash Refunds) On a total company basis, income tax payments, net of refunds, were $61.0 and $96.7 for the three months ended 31 December 2017 and 2016, respectively.
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Business Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | 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:
The sales information noted above relates to external customers only. All intersegment sales are eliminated in consolidation. For the three months ended 31 December 2017 and 2016, the Industrial Gases – Global segment had intersegment sales of $61.9 and $61.0, 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. In 2015, we entered into a long-term sale of equipment contract to engineer, procure, and construct industrial gas facilities with a 25%-owned joint venture for Saudi Aramco's Jazan oil refinery and power plant in Saudi Arabia. Sales related to this contract are included in the results of our Industrial Gases – Global segment and were approximately $90 and $110 during the three months ended 31 December 2017 and 2016, respectively. Below is a reconciliation of segment total operating income to consolidated operating income:
Below is a reconciliation of segment total equity affiliates' income to consolidated equity affiliates' income:
Below is a reconciliation of segment total assets to consolidated total assets:
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Discontinued Operations (Tables) |
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Schedule of Operating Results of Discontinued Operations | The following table details the businesses and major line items that comprise income from discontinued operations, net of tax, on the consolidated income statements for the three months ended 31 December 2016:
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Cost Reduction and Asset Actions (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Carrying Amount of Accrual for Cost Reduction and Asset Actions | The following table summarizes the carrying amount of the accrual for cost reduction and asset actions at 31 December 2017:
|
Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | The components of inventories are as follows:
|
Goodwill (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Changes to the carrying amount of consolidated goodwill by segment for the three months ended 31 December 2017 are as follows:
|
Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Instruments | The following table summarizes our outstanding interest rate management contracts and cross currency interest rate swaps:
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Fair Value of Derivative Instruments | The table below summarizes the fair value and balance sheet location of our outstanding derivatives:
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Schedule of Gains and Losses Related to Derivative Instruments | The table below summarizes the gain or loss related to our cash flow hedges, fair value hedges, net investment hedges, and derivatives not designated as hedging instruments:
(C) The impact of the non-designated hedges noted above was largely offset by recognized gains and losses resulting from the impact of changes in exchange rates on assets and liabilities denominated in non-functional currencies.
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Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Value and Fair Value of Financial Instruments | The carrying values and fair values of financial instruments were as follows:
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Schedule of Fair Value Assets and Liabilities Measured On Recurring Basis | The following table summarizes assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets:
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Retirement Benefits (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Benefit Cost | The components of net periodic benefit cost for the defined benefit pension plans for the three months ended 31 December 2017 and 2016 were as follows:
|
Share-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Share-Based Compensation Cost | Share-based compensation cost recognized in continuing operations on the consolidated income statements is summarized below:
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Schedule of Assumptions for Fair Value of Market-Based Deferred Stock Units | The calculation of the fair value of market-based deferred stock units used the following assumptions:
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Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity | The following is a summary of the changes in total equity:
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Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The tables below summarize changes in accumulated other comprehensive loss (AOCL), net of tax, attributable to Air Products for the three months ended 31 December 2017:
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Schedule of Reclassification out of Accumulated Other Comprehensive Income (Loss) | The table below summarizes the reclassifications out of accumulated other comprehensive loss and the affected line item on the consolidated income statements:
(B) The components of net periodic benefit cost reclassified out of accumulated other comprehensive loss include items such as prior service cost amortization, actuarial loss amortization, and settlements and are included in “Other non-operating income (expense), net” on the consolidated income statements. Refer to Note 11, Retirement Benefits, for additional information.
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Earnings per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share:
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Business Segment Information (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting Information [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment |
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Reconciliation of Segments to Consolidated Operating Income | Below is a reconciliation of segment total operating income to consolidated operating income:
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Reconciliation of Segments to Consolidated Equity Affiliates' Income (Loss) | Below is a reconciliation of segment total equity affiliates' income to consolidated equity affiliates' income:
(A) For additional information on the impact of the U.S. Tax Cuts and Jobs Act, including our equity affiliate impact, refer to Note 17, Income Taxes.
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Reconciliation of Segments to Consolidated Total Assets | Below is a reconciliation of segment total assets to consolidated total assets:
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Discontinued Operations (Schedule of Operating Results) (Details) - USD ($) $ in Millions |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jan. 03, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Income (Loss) from Discontinued Operations, net of tax | $ (1.0) | $ 48.2 | ||||||
Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Sales | 254.8 | |||||||
Cost of sales | 185.6 | |||||||
Selling and administrative | 20.6 | |||||||
Research and development | 5.1 | |||||||
Other income (expense), net | (0.1) | |||||||
Operating Income (Loss) | 43.4 | |||||||
Equity affiliates’ income | 0.3 | |||||||
Income (Loss) Before Taxes | 43.7 | |||||||
Income tax provision | [1] | (51.6) | ||||||
Income (Loss) From Operations of Discontinued Operations, net of tax | 95.3 | |||||||
Loss on Disposal, net of tax | (47.1) | |||||||
Income (Loss) from Discontinued Operations, net of tax | $ (1.0) | 48.2 | ||||||
Performance Materials Division (PMD) | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Sales | 254.8 | |||||||
Cost of sales | 179.0 | |||||||
Selling and administrative | 20.4 | |||||||
Research and development | 5.1 | |||||||
Other income (expense), net | (0.4) | |||||||
Operating Income (Loss) | 49.9 | |||||||
Equity affiliates’ income | 0.3 | |||||||
Income (Loss) Before Taxes | 50.2 | |||||||
Income tax provision | [1] | (50.5) | ||||||
Income (Loss) From Operations of Discontinued Operations, net of tax | 100.7 | |||||||
Loss on Disposal, net of tax | $ 1,828.0 | 0.0 | ||||||
Income (Loss) from Discontinued Operations, net of tax | 100.7 | |||||||
Valuation allowance adjustment effect on income tax provision | 69.0 | |||||||
Energy-from-Waste (EfW) | Discontinued Operations, Held-for-sale or Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Sales | [2] | 0.0 | ||||||
Cost of sales | [2] | 6.6 | ||||||
Selling and administrative | [2] | 0.2 | ||||||
Research and development | [2] | 0.0 | ||||||
Other income (expense), net | [2] | 0.3 | ||||||
Operating Income (Loss) | [2] | (6.5) | ||||||
Equity affiliates’ income | [2] | 0.0 | ||||||
Income (Loss) Before Taxes | [2] | (6.5) | ||||||
Income tax provision | [1],[2] | (1.1) | ||||||
Income (Loss) From Operations of Discontinued Operations, net of tax | [2] | (5.4) | ||||||
Loss on Disposal, net of tax | [2] | (47.1) | ||||||
Income (Loss) from Discontinued Operations, net of tax | [2] | $ (52.5) | ||||||
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Materials Technologies Separation (Narrative) (Details) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Oct. 01, 2016 |
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||||
Income (Loss) From Discontinued Operations, net of tax | $ (1.0) | $ 48.2 | ||
Business separation costs, legal and advisory fees, before tax | 0.0 | 32.5 | ||
Materials Technologies | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Net business separation costs | 0.0 | 30.2 | ||
Tax expense related to changes in tax positions on business separation activities | 2.7 | |||
Materials Technologies | Business separation costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business separation costs, legal and advisory fees, before tax | 32.5 | |||
Materials Technologies | Other non-operating income (expense), net | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pension settlement benefit | 2.3 | |||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff | Electronic Materials Division (EMD) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Distribution ratio of common stock in spin-off | 0.5 | |||
Discontinued Operations | Electronic Materials Division (EMD) | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Income (Loss) From Discontinued Operations, net of tax | 0.0 | $ 0.0 | ||
Assets of discontinued operations | 0.0 | $ 0.0 | ||
Liabilities of discontinued operations | $ 0.0 | $ 0.0 |
Cost Reduction and Asset Actions (Narrative) (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
position
|
|
Restructuring and Related Cost [Abstract] | |||
Cost reduction and asset actions | $ 0.0 | $ 50.0 | $ 151.4 |
Asset Actions/Other | Industrial Gases - EMEA | |||
Restructuring and Related Cost [Abstract] | |||
Cost reduction and asset actions | $ 45.7 | ||
Cost Reduction Actions | |||
Restructuring and Related Cost [Abstract] | |||
Cost reduction and asset actions | 154.8 | ||
Cash expenditures | 13.6 | 36.9 | |
Cost Reduction Actions | Industrial Gases - Americas | |||
Restructuring and Related Cost [Abstract] | |||
Cost reduction and asset actions | 39.3 | ||
Cost Reduction Actions | Industrial Gases - EMEA | |||
Restructuring and Related Cost [Abstract] | |||
Cost reduction and asset actions | 77.9 | ||
Cost Reduction Actions | Industrial Gases - Asia | |||
Restructuring and Related Cost [Abstract] | |||
Cost reduction and asset actions | 0.9 | ||
Cost Reduction Actions | Industrial Gases - Global | |||
Restructuring and Related Cost [Abstract] | |||
Cost reduction and asset actions | 2.5 | ||
Cost Reduction Actions | Corporate and other | |||
Restructuring and Related Cost [Abstract] | |||
Cost reduction and asset actions | 34.2 | ||
Cost Reduction Actions | Severance And Other Benefits | |||
Restructuring and Related Cost [Abstract] | |||
Cost reduction and asset actions | $ 66.3 | ||
Number of positions eliminated | position | 625 | ||
Cash expenditures | 13.5 | $ 35.7 | |
Cost Reduction Actions | Asset Actions/Other | |||
Restructuring and Related Cost [Abstract] | |||
Cost reduction and asset actions | 88.5 | ||
Cash expenditures | $ 0.1 | 1.2 | |
Business Realignment and Reorganization | |||
Restructuring and Related Cost [Abstract] | |||
Favorable restructuring reserve settlement | $ 3.4 |
Cost Reduction and Asset Actions (Carrying Amount of Accrual) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction and asset actions | $ 0.0 | $ 50.0 | $ 151.4 | |
Cost Reduction Actions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction and asset actions | 154.8 | |||
Noncash expenses | (84.2) | |||
Amount reflected in pension liability | (2.0) | |||
Amount reflected in other noncurrent liabilities | (2.2) | |||
Cash expenditures | (13.6) | (36.9) | ||
Currency translation adjustment | 0.2 | (0.3) | ||
Accrued balance | 28.1 | 41.5 | $ 12.3 | |
Cost Reduction Actions | Severance And Other Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction and asset actions | 66.3 | |||
Noncash expenses | 0.0 | |||
Amount reflected in pension liability | (2.0) | |||
Amount reflected in other noncurrent liabilities | 0.0 | |||
Cash expenditures | (13.5) | (35.7) | ||
Currency translation adjustment | 0.2 | (0.3) | ||
Accrued balance | 27.3 | 40.6 | 12.3 | |
Cost Reduction Actions | Asset Actions/Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cost reduction and asset actions | 88.5 | |||
Noncash expenses | (84.2) | |||
Amount reflected in pension liability | 0.0 | |||
Amount reflected in other noncurrent liabilities | (2.2) | |||
Cash expenditures | (0.1) | (1.2) | ||
Currency translation adjustment | 0.0 | 0.0 | ||
Accrued balance | $ 0.8 | $ 0.9 | $ 0.0 |
Business Combinations (Narrative) (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Business Acquisition [Line Items] | ||
Number of acquisitions completed | 3 | |
Aggregate purchase price, net of cash acquired | $ 237.1 | $ 0.0 |
Business combinations, recognized property, plant, and equipment | 148.5 | |
Business combinations, goodwill acquired during period | 53.7 | |
Business combinations, tax deductible goodwill | 3.0 | |
Business combinations, recognized identifiable intangible assets | $ 53.4 | |
Acquired finite-lived intangible assets, weighted-average useful life | 12 years |
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Sep. 30, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 135.1 | $ 120.0 |
Work in process | 17.8 | 15.7 |
Raw materials, supplies and other | 218.6 | 223.0 |
Total FIFO cost | 371.5 | 358.7 |
Less: Excess of FIFO cost over LIFO cost | (24.1) | (23.3) |
Inventories | $ 347.4 | $ 335.4 |
Goodwill (Schedule of Goodwill by Segment) (Details) $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | $ 721.5 |
Acquisitions | 53.7 |
Currency translation | 15.6 |
Goodwill, net, ending balance | 790.8 |
Industrial Gases - Americas | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 163.7 |
Acquisitions | 0.0 |
Currency translation | 2.3 |
Goodwill, net, ending balance | 166.0 |
Industrial Gases - EMEA | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 402.4 |
Acquisitions | 17.3 |
Currency translation | 10.9 |
Goodwill, net, ending balance | 430.6 |
Industrial Gases - Asia | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 135.2 |
Acquisitions | 36.4 |
Currency translation | 2.5 |
Goodwill, net, ending balance | 174.1 |
Industrial Gases - Global | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 20.2 |
Acquisitions | 0.0 |
Currency translation | (0.1) |
Goodwill, net, ending balance | $ 20.1 |
Goodwill (Schedule of Accumulated Impairment Losses) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Sep. 30, 2017 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, gross | $ 1,224.4 | $ 1,138.7 |
Goodwill, accumulated impairment losses | (433.6) | (417.2) |
Goodwill, net | $ 790.8 | $ 721.5 |
Goodwill (Narrative) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Sep. 30, 2017 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill, accumulated impairment losses | $ 433.6 | $ 417.2 |
Industrial Gases - Americas | ||
Goodwill [Line Items] | ||
Goodwill, accumulated impairment losses | $ 433.6 |
Financial Instruments (Narrative) (Details) € in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2017
EUR (€)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2016
EUR (€)
|
Sep. 30, 2017
USD ($)
|
|
Derivative [Line Items] | |||||
Cash flow hedges net losses expected to be reclassified in next twelve months | $ (14,000,000) | ||||
Net liability position of derivatives with credit risk-related contingent features | 78,700,000 | $ 34,600,000 | |||
Collateral posted on liability positions with credit risk-related contingent features | 0 | ||||
Collateral amount that counterparties would be required to post | $ 100,600,000 | $ 138,500,000 | |||
Forward Exchange Contracts | Cash Flow Hedges | |||||
Derivative [Line Items] | |||||
Maximum remaining maturity of foreign currency derivatives | 1 year 6 months | 1 year 6 months | |||
Foreign Currency Debt | Euro Denominated | |||||
Derivative [Line Items] | |||||
Notional amount included in designated foreign currency denominated debt | $ 1,091,200,000 | € 909.0 | $ 1,077,700,000 | € 912.2 |
Financial Instruments (Schedule of Outstanding Currency Price Risk Management Instruments) (Details) - Forward Exchange Contracts - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
|
Derivative [Line Items] | ||
US$ Notional | $ 4,273.2 | $ 4,099.5 |
Years Average Maturity | 10 months | 10 months |
Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 3,209.0 | $ 3,150.2 |
Years Average Maturity | 6 months | 5 months |
Designated as Hedging Instrument | Net Investment Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 674.0 | $ 675.5 |
Years Average Maturity | 2 years 10 months | 3 years |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
US$ Notional | $ 390.2 | $ 273.8 |
Years Average Maturity | 2 months | 1 month |
Financial Instruments (Schedule of Interest Rate Swaps and Cross Currency Interest Rate Swaps) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
|
Interest Rate Swaps Contracts | Designated as Hedging Instrument | Fair Value Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 400.0 | $ 600.0 |
Average Pay % | LIBOR | LIBOR |
Average Receive % | 2.53% | 2.28% |
Years Average Maturity | 1 year 7 months 6 days | 1 year 3 months 18 days |
Cross Currency Interest Rate Swaps | Designated as Hedging Instrument | Net Investment Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 670.1 | $ 539.7 |
Average Pay % | 3.73% | 3.27% |
Average Receive % | 2.82% | 2.59% |
Years Average Maturity | 2 years 7 months 6 days | 1 year 10 months 24 days |
Cross Currency Interest Rate Swaps | Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 1,027.8 | $ 1,095.7 |
Average Pay % | 5.05% | 4.96% |
Average Receive % | 2.82% | 2.78% |
Years Average Maturity | 2 years 3 months 18 days | 2 years 4 months 24 days |
Cross Currency Interest Rate Swaps | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
US$ Notional | $ 58.1 | $ 41.6 |
Average Pay % | 3.34% | 3.28% |
Average Receive % | 2.07% | 2.32% |
Years Average Maturity | 1 year 3 months 18 days | 1 year 8 months 12 days |
Financial Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Sep. 30, 2017 |
---|---|---|
Derivative [Line Items] | ||
Total Derivatives, Assets | $ 175.3 | $ 227.8 |
Total Derivatives, Liabilities | 127.9 | 131.9 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 168.3 | 222.5 |
Total Derivatives, Liabilities | 119.2 | 128.7 |
Designated as Hedging Instrument | Other Receivables | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 58.6 | 81.7 |
Designated as Hedging Instrument | Other Receivables | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 7.0 | 11.1 |
Designated as Hedging Instrument | Other Noncurrent Assets | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 23.2 | 27.1 |
Designated as Hedging Instrument | Other Noncurrent Assets | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 79.5 | 102.6 |
Designated as Hedging Instrument | Accrued Liabilities | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 44.3 | 82.0 |
Designated as Hedging Instrument | Accrued Liabilities | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 14.8 | 10.7 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 21.9 | 13.8 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 38.2 | 22.2 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 7.0 | 5.3 |
Total Derivatives, Liabilities | 8.7 | 3.2 |
Not Designated as Hedging Instrument | Other Receivables | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 2.4 | 1.1 |
Not Designated as Hedging Instrument | Other Receivables | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 0.0 | 0.0 |
Not Designated as Hedging Instrument | Other Noncurrent Assets | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 4.6 | 4.2 |
Not Designated as Hedging Instrument | Accrued Liabilities | Forward Exchange Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 6.0 | 2.2 |
Not Designated as Hedging Instrument | Accrued Liabilities | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 2.7 | 1.0 |
Not Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest Rate Management Contract | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | $ 0.0 | $ 0.0 |
Financial Instruments (Schedule of Gain/Loss Related to Derivative Instruments) (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||||
Designated as Hedging Instrument | Cash Flow Hedges | |||||||||
Derivative [Line Items] | |||||||||
Net gain (loss) recognized in OCI (effective portion) | $ (9.5) | $ (9.8) | |||||||
Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) | 1.0 | 4.6 | |||||||
Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) | (1.2) | 21.3 | |||||||
Net (gain) loss reclassified from OCI to interest expense (effective portion) | 1.2 | (0.1) | |||||||
Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) | (0.2) | (0.2) | |||||||
Designated as Hedging Instrument | Fair Value Hedges | |||||||||
Derivative [Line Items] | |||||||||
Net gain (loss) recognized in interest expense | [1] | (3.2) | (9.1) | ||||||
Designated as Hedging Instrument | Net Investment Hedges | |||||||||
Derivative [Line Items] | |||||||||
Net gain (loss) recognized in OCI | (36.0) | 82.8 | |||||||
Not Designated as Hedging Instrument | |||||||||
Derivative [Line Items] | |||||||||
Net gain (loss) recognized in other income (expense), net | [2] | (2.8) | 2.9 | ||||||
Forward Exchange Contracts | Designated as Hedging Instrument | Cash Flow Hedges | |||||||||
Derivative [Line Items] | |||||||||
Net gain (loss) recognized in OCI (effective portion) | 7.5 | (59.4) | |||||||
Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) | 1.0 | 4.6 | |||||||
Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) | (17.6) | 49.5 | |||||||
Net (gain) loss reclassified from OCI to interest expense (effective portion) | 0.6 | (0.8) | |||||||
Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) | (0.2) | (0.2) | |||||||
Forward Exchange Contracts | Designated as Hedging Instrument | Net Investment Hedges | |||||||||
Derivative [Line Items] | |||||||||
Net gain (loss) recognized in OCI | (7.5) | 27.9 | |||||||
Forward Exchange Contracts | Not Designated as Hedging Instrument | |||||||||
Derivative [Line Items] | |||||||||
Net gain (loss) recognized in other income (expense), net | [2] | (1.5) | 2.1 | ||||||
Foreign Currency Debt | Designated as Hedging Instrument | Net Investment Hedges | |||||||||
Derivative [Line Items] | |||||||||
Net gain (loss) recognized in OCI | (17.3) | 41.8 | |||||||
Other Contracts | Designated as Hedging Instrument | Cash Flow Hedges | |||||||||
Derivative [Line Items] | |||||||||
Net gain (loss) recognized in OCI (effective portion) | [3] | (17.0) | 49.6 | ||||||
Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion) | [3] | 0.0 | 0.0 | ||||||
Net (gain) loss reclassified from OCI to other income (expense), net (effective portion) | [3] | 16.4 | (28.2) | ||||||
Net (gain) loss reclassified from OCI to interest expense (effective portion) | [3] | 0.6 | 0.7 | ||||||
Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion) | [3] | 0.0 | 0.0 | ||||||
Other Contracts | Designated as Hedging Instrument | Fair Value Hedges | |||||||||
Derivative [Line Items] | |||||||||
Net gain (loss) recognized in interest expense | [1],[3] | (3.2) | (9.1) | ||||||
Other Contracts | Designated as Hedging Instrument | Net Investment Hedges | |||||||||
Derivative [Line Items] | |||||||||
Net gain (loss) recognized in OCI | [3] | (11.2) | 13.1 | ||||||
Other Contracts | Not Designated as Hedging Instrument | |||||||||
Derivative [Line Items] | |||||||||
Net gain (loss) recognized in other income (expense), net | [2],[3] | $ (1.3) | $ 0.8 | ||||||
|
Fair Value Measurements (Schedule of the Carrying Values and Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Sep. 30, 2017 |
---|---|---|
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion, carrying value | $ 3,426.2 | $ 3,818.8 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion fair value | 3,519.6 | 3,928.2 |
Forward Exchange Contracts | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 84.2 | 109.9 |
Derivative liabilities | 72.2 | 98.0 |
Forward Exchange Contracts | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 84.2 | 109.9 |
Derivative liabilities | 72.2 | 98.0 |
Interest Rate Management Contract | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 91.1 | 117.9 |
Derivative liabilities | 55.7 | 33.9 |
Interest Rate Management Contract | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 91.1 | 117.9 |
Derivative liabilities | $ 55.7 | $ 33.9 |
Fair Value Measurements (Schedule of Recurring Fair Value Measurements) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions |
Dec. 31, 2017 |
Sep. 30, 2017 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets at Fair Value | $ 175.3 | $ 227.8 |
Total Liabilities at Fair Value | 127.9 | 131.9 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets at Fair Value | 0.0 | 0.0 |
Total Liabilities at Fair Value | 0.0 | 0.0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets at Fair Value | 175.3 | 227.8 |
Total Liabilities at Fair Value | 127.9 | 131.9 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets at Fair Value | 0.0 | 0.0 |
Total Liabilities at Fair Value | 0.0 | 0.0 |
Forward Exchange Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 84.2 | 109.9 |
Derivative liabilities | 72.2 | 98.0 |
Forward Exchange Contracts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0.0 | 0.0 |
Derivative liabilities | 0.0 | 0.0 |
Forward Exchange Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 84.2 | 109.9 |
Derivative liabilities | 72.2 | 98.0 |
Forward Exchange Contracts | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0.0 | 0.0 |
Derivative liabilities | 0.0 | 0.0 |
Interest Rate Management Contract | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 91.1 | 117.9 |
Derivative liabilities | 55.7 | 33.9 |
Interest Rate Management Contract | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0.0 | 0.0 |
Derivative liabilities | 0.0 | 0.0 |
Interest Rate Management Contract | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 91.1 | 117.9 |
Derivative liabilities | 55.7 | 33.9 |
Interest Rate Management Contract | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0.0 | 0.0 |
Derivative liabilities | $ 0.0 | $ 0.0 |
Retirement Benefits (Narrative) (Details) - Defined Benefit Pension Plan - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2017 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Company contributions | $ 27.4 | $ 24.9 | $ 64.1 |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total expected contributions for current fiscal year | 50.0 | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total expected contributions for current fiscal year | $ 70.0 |
Retirement Benefits (Schedule of Net Periodic Benefit Cost) (Details) - Defined Benefit Pension Plan - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
||||
Discontinued Operations | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost(A) | $ 0.0 | $ 1.3 | |||
U.S. | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost(A) | [1] | 6.4 | 8.3 | ||
Interest cost | 26.7 | 24.9 | |||
Expected return on plan assets | (50.4) | (52.7) | |||
Prior service cost amortization | 0.4 | 0.6 | |||
Actuarial loss amortization | 21.7 | 26.1 | |||
Settlements | 1.8 | 0.0 | |||
Curtailment | 0.0 | 4.2 | |||
Special termination benefits | 0.0 | 1.1 | |||
Other | 0.0 | 0.0 | |||
Net periodic benefit cost | 6.6 | 12.5 | |||
U.S. | Discontinued Operations | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit cost | 0.0 | 0.6 | |||
U.S. | Continuing Operations | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit cost | 6.6 | 11.9 | |||
International | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost(A) | [1] | 6.3 | 6.7 | ||
Interest cost | 9.2 | 7.6 | |||
Expected return on plan assets | (20.2) | (18.5) | |||
Prior service cost amortization | 0.0 | 0.0 | |||
Actuarial loss amortization | 10.0 | 13.9 | |||
Settlements | 0.0 | (2.3) | |||
Curtailment | 0.0 | (3.1) | |||
Special termination benefits | 0.0 | 0.4 | |||
Other | 0.5 | 2.7 | |||
Net periodic benefit cost | 5.8 | 7.4 | |||
International | Discontinued Operations | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit cost | 0.0 | 0.7 | |||
International | Continuing Operations | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit cost | $ 5.8 | $ 6.7 | |||
|
Commitments and Contingencies (Litigation and Environmental - Narrative) (Details) BRL in Millions |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2010
BRL
|
Dec. 31, 2017
USD ($)
site
|
Dec. 31, 2017
BRL
site
|
Sep. 30, 2017
USD ($)
|
|
Alleged Anticompete Litigation | ||||
Loss Contingencies [Line Items] | ||||
Civil fines imposed | BRL 179.2 | $ 54,000,000 | ||
Provision for litigation | 0 | |||
Maximum of loss contingency range subject to interest | $ 54,000,000 | BRL 179.2 | ||
Environmental | ||||
Loss Contingencies [Line Items] | ||||
Approximate number of sites on which settlement has not been reached | site | 32 | 32 | ||
Accrual for environmental loss contingencies | $ 81,400,000 | $ 83,600,000 | ||
Accrual for environmental loss contingencies, maximum payout period | 30 years | |||
Environmental | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible exposure from environmental loss contingencies | $ 81,000,000 | |||
Environmental | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible exposure from environmental loss contingencies | $ 95,000,000 |
Commitments and Contingencies (Pace, Piedmont, Pasadena Narrative) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2012 |
Sep. 30, 2008 |
Sep. 30, 2006 |
|
Pace, Florida | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | $ 28,500,000 | $ 42,000,000 | ||
Change in estimated exposure | 0 | |||
Pace, Florida | Discontinued Operations | ||||
Loss Contingencies [Line Items] | ||||
Pretax environmental expense | 42,000,000 | |||
Pace, Florida | Minimum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible exposure from environmental loss contingencies | 42,000,000 | |||
Pace, Florida | Maximum | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible exposure from environmental loss contingencies | $ 52,000,000 | |||
Piedmont, South Carolina | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | 16,400,000 | $ 24,000,000 | ||
Piedmont, South Carolina | Discontinued Operations | ||||
Loss Contingencies [Line Items] | ||||
Pretax environmental expense | $ 24,000,000 | |||
Pasadena, Texas | ||||
Loss Contingencies [Line Items] | ||||
Accrual for environmental loss contingencies | $ 12,000,000.0 | |||
Total anticipated exposure | $ 13,000,000 |
Share-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for future grant | 4,627,480 | |
Incremental share-based compensation expense | $ 11.8 | $ 9.0 |
Market-Based Deferred Stock Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of units/shares granted | 99,130 | |
Performance period | 3 years | |
Weighted average grant date fair value (in dollars per unit/share) | $ 202.47 | |
Time-Based Deferred Stock Unit | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of units/shares granted | 125,140 | |
Weighted average grant date fair value (in dollars per unit/share) | $ 161.49 |
Share-Based Compensation (Compensation Cost Recognized in Income Statement) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract] | ||
Before-tax share-based compensation cost | $ 11.8 | $ 9.0 |
Income tax benefit | (3.2) | (3.0) |
After-tax share-based compensation cost | $ 8.6 | $ 6.0 |
Share-Based Compensation (Market-Based Deferred Stock Unit Valuation Assumptions) (Details) - Market-Based Deferred Stock Unit |
3 Months Ended |
---|---|
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 18.70% |
Risk-free interest rate | 1.90% |
Expected dividend yield | 2.60% |
Equity (Changes in Equity) (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 10,185.5 | $ 7,213.4 |
Net income | 161.7 | 306.4 |
Other comprehensive income (loss) | 153.7 | (238.0) |
Dividends on common stock | (208.0) | (187.1) |
Dividends to noncontrolling interests | (7.7) | (4.2) |
Share-based compensation | 11.1 | 9.0 |
Treasury shares for stock option and award plans | 19.9 | (0.3) |
Spin-off of Versum | 0.0 | 152.6 |
Cumulative change in accounting principle | 0.0 | 8.8 |
Other equity transactions | 5.0 | 0.5 |
Ending balance | $ 10,321.2 | $ 7,261.1 |
Dividends per share (in dollars per share) | $ 0.95 | $ 0.86 |
Air Products Shareholders' Equity | ||
Stockholders' Equity [Roll Forward] | ||
Beginning balance | $ 10,086.2 | $ 7,079.6 |
Net income | 154.6 | 299.8 |
Other comprehensive income (loss) | 151.8 | (234.9) |
Dividends on common stock | (208.0) | (187.1) |
Share-based compensation | 11.1 | 9.0 |
Treasury shares for stock option and award plans | 19.9 | (0.3) |
Spin-off of Versum | 0.0 | 186.5 |
Cumulative change in accounting principle | 0.0 | 8.8 |
Other equity transactions | (0.3) | 0.1 |
Ending balance | 10,215.3 | 7,161.5 |
Non-controlling Interests | ||
Stockholders' Equity [Roll Forward] | ||
Beginning balance | 99.3 | 133.8 |
Net income | 7.1 | 6.6 |
Other comprehensive income (loss) | 1.9 | (3.1) |
Dividends to noncontrolling interests | (7.7) | (4.2) |
Spin-off of Versum | 0.0 | (33.9) |
Cumulative change in accounting principle | 0.0 | 0.0 |
Other equity transactions | 5.3 | 0.4 |
Ending balance | $ 105.9 | $ 99.6 |
Accumulated Other Comprehensive Loss (Rollforward) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 10,185.5 | $ 7,213.4 |
Other comprehensive income (loss) before reclassifications | 126.9 | |
Amounts reclassified from AOCL | 26.8 | |
Total Other Comprehensive Income (Loss) | 153.7 | (238.0) |
Amount attributable to noncontrolling interests | 1.9 | (3.1) |
Ending balance | 10,321.2 | $ 7,261.1 |
Derivatives qualifying as hedges | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (53.1) | |
Other comprehensive income (loss) before reclassifications | (9.5) | |
Amounts reclassified from AOCL | 0.8 | |
Total Other Comprehensive Income (Loss) | (8.7) | |
Amount attributable to noncontrolling interests | 0.0 | |
Ending balance | (61.8) | |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (787.1) | |
Other comprehensive income (loss) before reclassifications | 136.4 | |
Amounts reclassified from AOCL | 3.1 | |
Total Other Comprehensive Income (Loss) | 139.5 | |
Amount attributable to noncontrolling interests | 1.9 | |
Ending balance | (649.5) | |
Pension and postretirement benefits | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (1,007.2) | |
Other comprehensive income (loss) before reclassifications | 0.0 | |
Amounts reclassified from AOCL | 22.9 | |
Total Other Comprehensive Income (Loss) | 22.9 | |
Amount attributable to noncontrolling interests | 0.0 | |
Ending balance | (984.3) | |
AOCL attributable to Air Products | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (1,847.4) | |
Ending balance | $ (1,695.6) |
Accumulated Other Comprehensive Loss (Reclassification) (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Other income (expense), net | $ (22.1) | $ (24.7) | |||||
Interest expense | 29.8 | 29.5 | |||||
Net Income (Loss) Attributable to Air Products | (154.6) | (299.8) | |||||
Reclassification out of Accumulated Other Comprehensive Income | (Gain) Loss on Cash Flow Hedges, net of tax | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Sales/Cost of sales | 1.0 | 4.6 | |||||
Other income (expense), net | (1.4) | 21.1 | |||||
Interest expense | 1.2 | (0.1) | |||||
Net Income (Loss) Attributable to Air Products | 0.8 | 25.6 | |||||
Reclassification out of Accumulated Other Comprehensive Income | Currency Translation Adjustment | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Net Income (Loss) Attributable to Air Products | [1] | 3.1 | 0.0 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Pension and Postretirement Benefits, net of tax | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Net Income (Loss) Attributable to Air Products | [2] | $ 22.9 | $ 27.4 | ||||
|
Earnings per Share (Schedule of Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Earnings Per Share [Abstract] | ||
Income from continuing operations | $ 155.6 | $ 251.6 |
Income (Loss) from discontinued operations | (1.0) | 48.2 |
Net Income Attributable to Air Products | $ 154.6 | $ 299.8 |
Weighted average common shares — Basic | 218.9 | 217.7 |
Employee stock option and other award plans | 1.5 | 2.0 |
Weighted average common shares — Diluted | 220.4 | 219.7 |
Earnings Per Share, Basic [Abstract] | ||
Income from continuing operations (in dollars per share) | $ 0.71 | $ 1.16 |
Income (Loss) from discontinued operations (in dollars per share) | 0 | 0.22 |
Net Income (Loss) Attributable to Air Products (in dollars per share) | 0.71 | 1.38 |
Earnings Per Share, Diluted [Abstract] | ||
Income from continuing operations (in dollars per share) | 0.70 | 1.15 |
Income (Loss) from discontinued operations (in dollars per share) | 0 | 0.22 |
Net Income (Loss) Attributable to Air Products (in dollars per share) | $ 0.70 | $ 1.37 |
Earnings per Share (Narrative) (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Earnings Per Share [Abstract] | ||
Antidilutive share-based awards excluded from computation of diluted earnings per share (in shares) | 0.1 | 0.2 |
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jan. 26, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2018 |
|||
Income Tax Disclosure [Line Items] | ||||||
U.S. federal statutory tax rate (percent) | 35.00% | |||||
Net expense in consolidated income statements related to change in tax law | $ 239.0 | |||||
Expense related to repatriation tax and future repatriation effect on foreign investments | 453.0 | |||||
Expense related to repatriation tax and future repatriation effect on foreign investments impacting income tax provision | 420.5 | |||||
Change In tax rate, deferred tax liability, income tax (expense) benefit | 214.0 | |||||
Component of tax-related adjustment payable over eight years | 364.1 | |||||
Component of tax-related adjustment resulting from withholding taxes and other impacts | 56.4 | |||||
Foreign tax credits expected to offset repatriation tax | 53.8 | |||||
Tax liabilities not expected to be offset by foreign tax credits | 310.3 | |||||
Transition tax for accumulated foreign earnings, liability, noncurrent | $ 296.6 | |||||
Effective tax rate (percent) | 64.20% | |||||
Income tax payments, net of refunds | $ 61.0 | $ 96.7 | ||||
Forecast | ||||||
Income Tax Disclosure [Line Items] | ||||||
U.S. federal statutory tax rate (percent) | 24.50% | |||||
Subsequent Event | ||||||
Income Tax Disclosure [Line Items] | ||||||
U.S. federal statutory tax rate (percent) | 21.00% | |||||
Segment Reconciling Items | ||||||
Income Tax Disclosure [Line Items] | ||||||
Impact of new tax law on equity affiliate expense | [1] | $ 32.5 | $ 0.0 | |||
|
Business Segment Information (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Segment Reporting Information [Line Items] | ||
Sales | $ 2,216.6 | $ 1,882.5 |
Industrial Gases - Global | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Sales | 61.9 | 61.0 |
Jazan [Member] | Industrial Gases - Global | ||
Segment Reporting Information [Line Items] | ||
Sales | $ 90.0 | $ 110.0 |
Business Segment Information (Schedule of Segment Reporting Information) (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2017 |
|
Segment Reporting Information [Line Items] | |||
Sales | $ 2,216.6 | $ 1,882.5 | |
Operating income (loss) | 460.7 | 328.3 | |
Depreciation and amortization | 227.9 | 206.1 | |
Equity affiliates' income | 13.8 | 38.0 | |
Total assets | 18,208.8 | $ 18,467.2 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 2,216.6 | 1,882.5 | |
Operating income (loss) | 460.7 | 410.8 | |
Depreciation and amortization | 227.9 | 206.1 | |
Equity affiliates' income | 46.3 | 38.0 | |
Total assets | 18,198.6 | 18,457.0 | |
Industrial Gases - Americas | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 909.8 | 863.9 | |
Operating income (loss) | 217.2 | 223.3 | |
Depreciation and amortization | 117.8 | 111.8 | |
Equity affiliates' income | 18.6 | 14.7 | |
Total assets | 5,878.6 | 5,840.8 | |
Industrial Gases - EMEA | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 515.9 | 399.7 | |
Operating income (loss) | 104.5 | 90.0 | |
Depreciation and amortization | 49.1 | 42.2 | |
Equity affiliates' income | 13.1 | 9.5 | |
Total assets | 3,378.5 | 3,276.1 | |
Industrial Gases - Asia | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 643.6 | 438.3 | |
Operating income (loss) | 175.5 | 118.4 | |
Depreciation and amortization | 56.8 | 46.7 | |
Equity affiliates' income | 14.2 | 13.5 | |
Total assets | 4,592.3 | 4,412.1 | |
Industrial Gases - Global | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 133.0 | 147.9 | |
Operating income (loss) | 9.5 | 8.2 | |
Depreciation and amortization | 1.6 | 2.0 | |
Equity affiliates' income | 0.4 | 0.3 | |
Total assets | 285.5 | 279.6 | |
Corporate and other | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Sales | 14.3 | 32.7 | |
Operating income (loss) | (46.0) | (29.1) | |
Depreciation and amortization | 2.6 | 3.4 | |
Equity affiliates' income | 0.0 | $ 0.0 | |
Total assets | $ 4,063.7 | $ 4,648.4 |
Business Segment Information (Reconciliation of Operating Income) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2017 |
|
Segment Reporting Information [Line Items] | |||
Business separation costs | $ 0.0 | $ (32.5) | |
Cost reduction and asset actions | 0.0 | (50.0) | $ (151.4) |
Operating Income | 460.7 | 328.3 | |
Segment Total | |||
Segment Reporting Information [Line Items] | |||
Operating Income | 460.7 | 410.8 | |
Segment Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Business separation costs | 0.0 | (32.5) | |
Cost reduction and asset actions | $ 0.0 | $ (50.0) |
Business Segment Information (Reconciliation of Equity Affiliates' Income) (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|||
Segment Reporting Information [Line Items] | ||||
Equity affiliates' income | $ 13.8 | $ 38.0 | ||
Segment Total | ||||
Segment Reporting Information [Line Items] | ||||
Equity affiliates' income | 46.3 | 38.0 | ||
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Tax reform repatriation - equity method investment | [1] | $ (32.5) | $ 0.0 | |
|
Business Segment Information (Reconciliation of Assets) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Sep. 30, 2017 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Total assets | $ 18,208.8 | $ 18,467.2 |
Segment Total | ||
Segment Reporting Information [Line Items] | ||
Total assets | 18,198.6 | 18,457.0 |
Discontinued Operations | Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Assets of discontinued operations | $ 10.2 | $ 10.2 |
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