Revenue Recognition

6 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

The majority of the Company's revenue is generated from its sale of gas customers within its Industrial Gases regional segments. We distribute gases through either our on-site or merchant supply mode depending on various factors, including the customer's volume requirements and location. The Industrial Gases – Global and the Corporate and other segments serve our sale of equipment customers.

Disaggregation of Revenue

The tables below present our consolidated sales disaggregated by supply mode for each of our reporting segments for the three and six months ended 31 March 2020 and 2019. We believe this presentation best depicts the nature, timing, type of customer, and contract terms for our sales.



	Industrial Gases– Americas		Industrial Gases– EMEA		Industrial Gases– Asia		Industrial Gases– Global		Corporate and other		Total		%
Three Months Ended 31 March 2020
On-site		$516.2		$160.3		$425.6		$—		$—		$1,102.1	50	%
Merchant	416.2		332.4		232.5		—		—		981.1		44	%
Sale of Equipment	—		—		—		79.3		53.8		133.1		6	%
Total		$932.4		$492.7		$658.1		$79.3		$53.8		$2,216.3	100	%
Three Months Ended 31 March 2019
On-site		$580.9		$178.6		$386.0		$—		$—		$1,145.5	52	%
Merchant	410.8		315.8		239.4		—		—		966.0		44	%
Sale of Equipment	—		—		—		53.8		22.4		76.2		4	%
Total		$991.7		$494.4		$625.4		$53.8		$22.4		$2,187.7	100	%




	Industrial Gases– Americas		Industrial Gases– EMEA		Industrial Gases– Asia		Industrial Gases– Global		Corporate and other		Total		%
Six Months Ended 31 March 2020
On-site		$1,050.7		$331.7		$843.9		$—		$—		$2,226.3	50	%
Merchant	817.9		659.7		507.0		—		—		1,984.6		44	%
Sale of Equipment	—		—		—		171.9		88.2		260.1		6	%
Total		$1,868.6		$991.4		$1,350.9		$171.9		$88.2		$4,471.0	100	%
Six Months Ended 31 March 2019
On-site		$1,176.9		$400.8		$767.0		$—		$—		$2,344.7	53	%
Merchant	804.0		617.8		485.2		—		—		1,907.0		43	%
Sale of Equipment	—		—		—		122.0		38.0		160.0		4	%
Total		$1,980.9		$1,018.6		$1,252.2		$122.0		$38.0		$4,411.7	100	%

Remaining Performance Obligations

As of 31 March 2020, the transaction price allocated to remaining performance obligations is estimated to be approximately $20 billion. This amount includes fixed-charge contract provisions associated with our on-site and sale of equipment supply modes. We estimate that approximately half of this revenue will be recognized over approximately the next five years and the balance thereafter.

Expected revenue associated with new on-site plants that are not yet onstream is excluded from this amount. In addition, this amount excludes consideration associated with contracts having an expected duration of less than one year and variable consideration for which we recognize revenue at the amount to which we have the right to invoice, including pass-through costs related to energy and natural gas.

In the future, actual amounts will differ due to events outside of our control, including but not limited to inflationary price escalations, currency exchange rates, and terminated or renewed contracts.

Contract Balances

The table below details balances arising from contracts with customers:



	Balance Sheet Location	31 March 2020		30 September 2019
Assets
Contract assets – current	Other receivables and current assets		$84.2		$64.3
Contract fulfillment costs – current	Other receivables and current assets	84.8		64.5
Liabilities
Contract liabilities – current	Payables and accrued liabilities	284.1		247.4
Contract liabilities – noncurrent	Other noncurrent liabilities	51.2		49.2

Changes to our contract balances primarily relate to our sale of equipment contracts. During the six months ended 31 March 2020, we recognized approximately $95 in revenue associated with sale of equipment contracts that was included within our contract liabilities as of 30 September 2019.