Business Segment Information

6 Months Ended

Mar. 31, 2018

BUSINESS SEGMENT INFORMATION

Our reporting segments reflect the manner in which our chief operating decision maker reviews results and allocates resources. Except in the Corporate and other segment, each reporting segment meets the definition of an operating segment and does not include the aggregation of multiple operating segments. Our liquefied natural gas (LNG) and helium storage and distribution sale of equipment businesses are aggregated within the Corporate and other segment.

Our reporting segments are:


•	Industrial Gases – Americas


•	Industrial Gases – EMEA (Europe, Middle East, and Africa)


•	Industrial Gases – Asia


•	Industrial Gases – Global


•	Corporate and other



	Industrial Gases – Americas		Industrial Gases – EMEA		Industrial Gases – Asia		Industrial Gases – Global		Corporate and other			Segment Total
Three Months Ended 31 March 2018
Sales		$913.2		$561.6		$557.6		$101.7		$21.6			$2,155.7
Operating income (loss)	222.3		116.7		148.7		12.1		(44.4		)	455.4
Depreciation and amortization	122.3		50.7		62.6		1.9		2.5			240.0
Equity affiliates' income	16.9		11.1		15.4		.3		—			43.7
Three Months Ended 31 March 2017
Sales		$890.1		$414.2		$435.9		$216.5		$23.4			$1,980.1
Operating income (loss)	223.2		88.6		112.3		22.7		(40.9		)	405.9
Depreciation and amortization	116.0		41.6		49.3		1.7		3.2			211.8
Equity affiliates' income	13.0		8.3		12.9		—		—			34.2




	Industrial Gases – Americas		Industrial Gases – EMEA		Industrial Gases – Asia		Industrial Gases – Global		Corporate and other			Segment Total
Six Months Ended 31 March 2018
Sales		$1,823.0		$1,077.5		$1,201.2		$234.7		$35.9			$4,372.3
Operating income (loss)	439.5		221.2		324.2		21.6		(90.4		)	916.1
Depreciation and amortization	240.1		99.8		119.4		3.5		5.1			467.9
Equity affiliates' income	35.5		24.2		29.6		.7		—			90.0
Six Months Ended 31 March 2017
Sales		$1,754.0		$813.9		$874.2		$364.4		$56.1			$3,862.6
Operating income (loss)	446.5		178.6		230.7		30.9		(70.0		)	816.7
Depreciation and amortization	227.8		83.8		96.0		3.7		6.6			417.9
Equity affiliates' income	27.7		17.8		26.4		.3		—			72.2
Total Assets
31 March 2018		$5,915.0		$3,475.5		$4,779.1		$252.5		$4,089.0			$18,511.1
30 September 2017	5,840.8		3,276.1		4,412.1		279.6		4,648.4			18,457.0

The sales information noted above relates to external customers only. All intersegment sales are eliminated in consolidation. For the three and six months ended 31 March 2018, the Industrial Gases – Global segment had intersegment sales of $56.0 and $117.9, respectively. For the three and six months ended 31 March 2017, the Industrial Gases – Global segment had intersegment sales of $61.0 and $122.0, respectively. These sales are generally transacted at market pricing. For all other segments, intersegment sales are not material for all periods presented. Equipment manufactured for our industrial gases segments is generally transferred at cost and not reflected as an intersegment sale.

Changes in estimates on projects accounted for under the percentage-of-completion method favorably impacted operating income by approximately $10 and $12 for the three months ended 31 March 2018 and 2017, respectively.

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. During the three and six months ended 31 March 2018, sales were approximately $60 and $150, respectively, related to this contract. During the three and six months ended 31 March 2017, sales were approximately $170 and $280, respectively.

Below is a reconciliation of segment total operating income to consolidated operating income:



	Three Months Ended					Six Months Ended
	31 March					31 March
Operating Income	2018		2017			2018		2017
Segment total		$455.4		$405.9			$916.1		$816.7
Business separation costs	—		—			—		(32.5		)
Cost reduction and asset actions	—		(10.3		)	—		(60.3		)
Consolidated Total		$455.4		$395.6			$916.1		$723.9

Below is a reconciliation of segment total equity affiliates' income to consolidated equity affiliates' income:



	Three Months Ended				Six Months Ended
	31 March				31 March
Equity Affiliates' Income	2018		2017		2018			2017
Segment total		$43.7		$34.2		$90.0			$72.2
Tax reform repatriation - equity method investment	—		—		(32.5		)	—
Consolidated Total		$43.7		$34.2		$57.5			$72.2

Below is a reconciliation of segment total assets to consolidated total assets:



	31 March		30 September
Total Assets	2018		2017
Segment total		$18,511.1		$18,457.0
Discontinued operations	—		10.2
Consolidated Total		$18,511.1		$18,467.2