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Summarized Financial Information of Equity Affiliates
 12 Months Ended
Sep. 30, 2018
Equity Method Investments and Joint Ventures [Abstract]  
Summarized Financial Information of Equity Affiliates SUMMARIZED FINANCIAL INFORMATION OF EQUITY AFFILIATES
The summarized financial information below is on a combined 100% basis and has been compiled based on financial statements of the companies accounted for by the equity method. The amounts presented include the accounts of the following equity affiliates:
Abdullah Hashim Industrial Gases & Equipment Co., Ltd. (25%);
 
INOX Air Products Limited (50%);
Air Products South Africa (Proprietary) Limited (50%);
 
Jazan Gas Projects Company (25%);
Bangkok Cogeneration Company Limited (49%);
 
Kulim Industrial Gases Sdn. Bhd. (50%);
Bangkok Industrial Gases Co., Ltd. (49%);
 
Sapio Produzione Idrogeno Ossigeno S.r.l. (49%);
Chengdu Air & Gas Products Ltd. (50%);
 
Tecnologia en Nitrogeno S. de R.L. de C.V. (50%);
Helios S.p.A. (49%);
 
Tyczka Industrie-Gases GmbH (50%);
High-Tech Gases (Beijing) Co., Ltd. (50%);
 
WuXi Hi-Tech Gas Co., Ltd. (50%);
INFRA Group (40%);
 
and principally, other industrial gas producers.

30 September
 
  
 
2018

 
2017

Current assets
 
 
 

$1,556.9

 

$1,333.2

Noncurrent assets
 
 
 
4,340.8

 
4,026.9

Current liabilities
 
 
 
635.7

 
666.8

Noncurrent liabilities
 
 
 
2,652.5

 
2,194.3

 
 
 
 
 
 
 
Year Ended 30 September
 
2018

 
2017

 
2016

Net sales
 

$2,663.1

 

$2,343.3

 

$2,271.6

Sales less cost of sales
 
1,050.6

 
878.6

 
871.5

Operating income
 
635.3

 
509.5

 
482.1

Net income
 
388.0

 
343.5

 
334.1


Dividends received from equity affiliates were $122.5, $99.5, and $95.9 in fiscal years 2018, 2017, and 2016, respectively.
The investment in net assets of and advances to equity affiliates as of 30 September 2018 and 2017 included investment in foreign affiliates of $1,276.0 and $1,285.1, respectively.
As of 30 September 2018 and 2017, the amount of investment in companies accounted for by the equity method included equity method goodwill of $42.4 and $45.8, respectively.
U.S. Tax Cuts and Jobs Act
For the year ended 30 September 2018, equity affiliates' income includes an expense of $28.5 for our proportionate share of the impact of the U.S. Tax Cuts and Jobs Act primarily recorded during the first quarter of fiscal year 2018. This expense is included in the fiscal year 2018 net income on a 100% basis in the table above. Refer to Note 22, Income Taxes, for additional information.
Equity Affiliate Impairment Charge
During the third quarter of fiscal year 2017, we recorded an other-than-temporary impairment charge of $79.5 on our investment in Abdullah Hashim Industrial Gases & Equipment Co., Ltd. (AHG), a 25%-owned equity affiliate in our Industrial Gases – EMEA segment. The impairment charge is reflected on our consolidated income statements within “Equity affiliates' income." This charge was not deductible for tax purposes and has been excluded from segment results.
The decline in value resulted from expectations for lower future cash flows to be generated by AHG, primarily due to challenging economic conditions in Saudi Arabia, including the impacts of lower prices in the oil and gas industry, increased competition, and capital project growth opportunities not materializing as anticipated.
The AHG investment was valued based on the results of the income and market valuation approaches. The income approach utilized a discount rate based on a market-participant, risk-adjusted weighted average cost of capital, which considers industry required rates of return on debt and equity capital for a target industry capital structure adjusted for risks associated with size and geography. Other significant estimates and assumptions that drove our updated valuation of AHG included revenue growth rates and profit margins that were lower than those upon acquisition and our assessment of AHG's business improvement plan effectiveness. Under the market approach, we estimated fair value based on market multiples of revenue and earnings derived from publicly-traded industrial gases companies engaged in similar lines of business, adjusted to reflect differences in size and growth prospects.
Jazan
On 19 April 2015, a joint venture between Air Products and ACWA Holding entered into a 20-year oxygen and nitrogen supply agreement to supply Saudi Aramco’s oil refinery and power plant being built in Jazan, Saudi Arabia. Air Products owns 25% of the joint venture and guarantees the repayment of its share of an equity bridge loan. ACWA also guarantees their share of the loan. We determined that the joint venture is a variable interest entity, for which we are not the primary beneficiary.
As of 30 September 2018 and 2017, other noncurrent liabilities included $94.4 for our obligation to make future equity contributions in 2020 based on our proportionate share of the advances received by the joint venture under the loan. During fiscal year 2016, we recorded a noncash transaction that resulted in an increase of $26.9 to our investment in net assets of and advances to equity affiliates. This noncash transaction has been excluded from the consolidated statement of cash flows. In total, we expect to invest approximately $100 in this joint venture. There has been no change to our investment during fiscal years 2018 and 2017.