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Discontinued Operations
 12 Months Ended
Sep. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations   DISCONTINUED OPERATIONS
In fiscal year 2018, income from discontinued operations, net of tax, of $42.2 includes an income tax benefit of $25.6 resulting from the resolution of uncertain tax positions taken in conjunction with the disposition of our former European Homecare business in fiscal year 2012. In addition, we recorded an after-tax benefit of $17.6 resulting from the resolution of certain post-closing adjustments associated with the sale of our former Performance Materials Division (PMD). Refer to Note 22, Income Taxes, for additional information. These benefits were partially offset by an after-tax loss of $1.0 related to Energy-from-Waste (EfW) project exit activities, which were completed during the first quarter of fiscal year 2018.
There were no assets or liabilities presented in discontinued operations on the consolidated balance sheets as of 30 September 2018. As of 30 September 2017, current assets of discontinued operations of $10.2 related to EfW and current liabilities of discontinued operations of $15.7 primarily related to reserves associated with the disposition of PMD.
The following table details income from discontinued operations, net of tax, on the consolidated income statements for fiscal year 2017:
 
 
 
Total
 
Performance
Energy-from-
Discontinued
Year Ended 30 September 2017
Materials
Waste(A)
Operations
Sales

$254.8


$—


$254.8

Cost of sales
182.3

13.8

196.1

Selling and administrative
22.5

.7

23.2

Research and development
5.1

—

5.1

Other income (expense), net
.3

(2.0
)
(1.7
)
Operating Income (Loss)
45.2

(16.5
)
28.7

Equity affiliates’ income
.3

—

.3

Income (Loss) Before Taxes
45.5

(16.5
)
29.0

Income tax benefit(B)
(50.8
)
(5.7
)
(56.5
)
Income (Loss) From Operations of Discontinued Operations, net of tax
96.3

(10.8
)
85.5

Gain (Loss) on disposal of business, net of tax(C)
1,827.6

(47.1
)
1,780.5

Income (Loss) From Discontinued Operations, net of tax

$1,923.9


($57.9
)

$1,866.0

(A) 
The loss from operations of discontinued operations for EfW primarily relates to costs incurred for ongoing project exit activities, administrative costs, and land lease obligations.
(B) 
As a result of the expected gain on the sale of PMD, we released valuation allowances related to capital loss and net operating loss carryforwards primarily during the first quarter of 2017 that favorably impacted our income tax provision within discontinued operations by approximately $69.
(C) 
After-tax gain on sale of $1,827.6 includes expense for income tax reserves for uncertain tax positions of $28.0 gross ($21.0 net) in various jurisdictions.
In fiscal year 2017, income from discontinued operations, net of tax, of $1,866.0 includes a gain of $2,870 ($1,828 after-tax, or $8.32 per share) for the sale of PMD to Evonik Industries AG (Evonik). The sale closed on 3 January 2017 for $3.8 billion in cash. In addition, we recorded a loss on the disposal of EfW of $59.3 ($47.1 after-tax) during the first quarter of 2017, primarily for land lease obligations and to update our estimate of the net realizable value of the plant assets. The loss on disposal was recorded as a component of discontinued operations while the liability associated with land lease obligations was and continues to be recorded in continuing operations. As of 30 September 2018, liabilities associated with EfW recorded in continuing operations were approximately $63 and primarily related to the land lease obligations.
On 1 October 2016 (the distribution date), Air Products completed the spin-off of its Electronic Materials Division (EMD) as Versum Materials, Inc. (Versum), 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. Subsequent to the distribution, Versum became an independent public company, and its common stock is listed under the symbol “VSM” on the New York Stock Exchange. The spin-off of Versum was treated as a noncash transaction in the consolidated statements of cash flows in fiscal year 2017. Seifi Ghasemi, Director, Chairman, President, and Chief Executive Officer of Air Products, continues to serve as non-executive chairman of the Versum Board of Directors.
The following table details the loss from discontinued operations, net of tax, on the consolidated income statements for fiscal year 2016:

 
 
 
 
Total
 
Electronic
Performance
Energy-from-
Discontinued
Year Ended 30 September 2016
Materials
Materials
Waste(A)
Operations
Sales

$961.6


$1,059.1


$—


$2,020.7

Cost of sales
521.6

704.5

24.6

1,250.7

Selling and administrative
87.7

76.6

2.8

167.1

Research and development
40.8

19.6

.9

61.3

Other income (expense), net
2.2

4.2

(12.7
)
(6.3
)
Operating Income (Loss)
313.7

262.6

(41.0
)
535.3

Equity affiliates’ income
.2

1.4

—

1.6

Interest expense
.3

—

—

.3

Income (Loss) Before Taxes(B)
313.6

264.0

(41.0
)
536.6

Income tax provision (benefit)
73.4

80.5

(3.4
)
150.5

Income (Loss) From Operations of Discontinued Operations, net of tax
240.2

183.5

(37.6
)
386.1

Loss on disposal of business, net of tax
—

—

(846.6
)
(846.6
)
Income (Loss) From Discontinued Operations, net of tax
240.2

183.5

(884.2
)
(460.5
)
Net Income Attributable to Noncontrolling Interests of Discontinued Operations
7.9

—

—

7.9

Net Income (Loss) From Discontinued Operations

$232.3


$183.5


($884.2
)

($468.4
)
(A) 
The loss from operations of discontinued operations for EfW primarily relates to project suspension costs, land lease obligations, and administrative costs.
(B) 
In fiscal year 2016, income before taxes from operations of discontinued operations attributable to Air Products was $527.1.
In fiscal year 2016, the Company's Board of Directors approved the exit of the EfW business, and efforts to start up the two EfW projects located in Tees Valley, United Kingdom, were discontinued. The loss from discontinued operations, net of tax, of $460.5 includes a loss of $945.7 ($846.6 after-tax) from the write down of the EfW plant assets to their estimated net realizable value and a liability recorded 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. We estimated the net realizable value of the projects assuming an orderly liquidation of assets capable of being marketed on a secondary equipment market based on market quotes and our experience with selling similar equipment. An asset’s orderly liquidation value is the amount that could be realized from a liquidation sale, given a reasonable period of time to find a buyer, selling the asset in the existing condition where it is located, and assuming the highest and best use of the asset by market participants. A valuation allowance of $58.0 and unrecognized tax benefits of $7.9 were recorded relating to deferred tax assets on capital assets generated from the loss.
Fiscal year 2016 also includes the results of PMD and EMD prior to their dispositions.