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Business Segment and Geographic Information
 12 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Business Segment and Geographic Information BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION
Our reporting segments reflect the manner in which our chief operating decision maker reviews results and allocates resources. Except in the Industrial Gases – EMEA and Corporate and other segments, each reporting segment meets the definition of an operating segment and does not include the aggregation of multiple operating segments. Our Industrial Gases – EMEA and Corporate and other segment each include the aggregation of two operating segments that meet the aggregation criteria under GAAP.
Our reporting segments are:
•Industrial Gases – Americas;
•Industrial Gases – EMEA (Europe, Middle East, and Africa);
•Industrial Gases – Asia;
•Industrial Gases – Global; and
•Corporate and other
Industrial Gases – Regional
The regional Industrial Gases segments (Americas, EMEA, and Asia) include the results of our regional industrial gas businesses, which produce and sell atmospheric gases, such as oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide (CO2), carbon monoxide, and syngas (a mixture of hydrogen and carbon monoxide); and specialty gases. The industrial gases business also develops, builds, and operates equipment for the production or processing of gases, such as air separation units and non-cryogenic generators.
We supply gases to diversified customers in many industries, including those in refining, chemical, gasification, metals, electronics, manufacturing, and food and beverage. We distribute gases to our customers through a variety of supply modes including liquid or gaseous bulk supply delivered by tanker or tube trailer and, for smaller customers, packaged gases delivered in cylinders and dewars or small on-sites (cryogenic or non-cryogenic generators). For large-volume customers, we construct an on-site plant adjacent to or near the customer’s facility or deliver product from one of our pipelines.
Electricity is the largest cost component in the production of atmospheric gases. Steam methane reformers utilize natural gas as the primary raw material and gasifiers use liquid and solid hydrocarbons as the principal raw material for the production of hydrogen, carbon monoxide, and syngas. We mitigate energy, natural gas, and hydrocarbon price fluctuations contractually through pricing formulas, surcharges, and cost pass-through and tolling arrangements.
The regional Industrial Gases segments also include our share of the results of several joint ventures accounted for by the equity method. The largest of these joint ventures operate in China, India, Italy, Mexico, Saudi Arabia, South Africa, and Thailand.
Each of the regional Industrial Gases segments competes against global industrial gas companies as well as regional competitors. Competition is based primarily on price, reliability of supply, and the development of industrial gas applications. We derive a competitive advantage in locations where we have pipeline networks, which enable us to provide reliable and economic supply of products to larger customers.
Industrial Gases – Global
The Industrial Gases – Global segment includes activity related to the sale of cryogenic and gas processing equipment for air separation. The equipment is sold worldwide to customers in a variety of industries, including chemical and petrochemical manufacturing, oil and gas recovery and processing, and steel and primary metals processing. The Industrial Gases – Global segment also includes centralized global costs associated with management of all the Industrial Gases segments. These costs include Industrial Gases global administrative costs, product development costs, and research and development costs. We compete with a large number of firms for all the offerings included in the Industrial Gases – Global segment. Competition in the equipment business is based primarily on technological performance, service, technical know-how, price, and performance guarantees.
Corporate and other
The Corporate and other segment includes our liquefied natural gas, turbo machinery equipment and services, and distribution sale of equipment businesses as well as our corporate support functions that benefit all segments. Competition for the sale of equipment businesses is based primarily on technological performance, service, technical know-how, price, and performance guarantees.
The results of the Corporate and other segment also include income and expense that is not directly associated with the other segments, such as foreign exchange gains and losses.
In addition to assets of the global businesses included in this segment, other assets include cash, deferred tax assets, and financial instruments.
Customers
We do not have a homogeneous customer base or end market, and no single customer accounts for more than 10% of our consolidated revenues.
Accounting Policies
The accounting policies of the segments are the same as those described in Note 1, Major Accounting Policies. We evaluate the performance of segments based upon reported segment operating income.
Business Segment Information
Industrial
Gases–
Americas		Industrial
Gases–
EMEA		Industrial
Gases–
Asia		Industrial
Gases–
Global		Corporate
and other		Total
2020
Sales$3,630.7 $1,926.3 $2,716.5 $364.9 $217.9 $8,856.3 
(A)
Operating income (loss)1,012.4 473.3 870.3 (40.0)(112.2)2,203.8 
(B)
Depreciation and amortization559.5 195.9 399.4 9.6 20.6 1,185.0 
Equity affiliates' income84.3 74.8 61.0 10.9 — 231.0 
(B)
Expenditures for long-lived assets1,264.7 327.6 690.3 35.3 191.1 2,509.0 
Investments in net assets of and advances to equity affiliates310.9 535.2 539.7 46.4 — 1,432.2 
Total assets6,610.1 3,917.0 6,842.9 397.8 7,400.7 25,168.5 
2019
Sales$3,873.5 $2,002.5 $2,663.6 $261.0 $118.3 $8,918.9 
(A)
Operating income (loss)997.7 472.4 864.2 (11.7)(152.8)2,169.8 
(B)
Depreciation and amortization505.2 189.5 361.5 8.6 18.0 1,082.8 
Equity affiliates' income84.8 69.0 58.4 3.2 — 215.4 
(B)
Expenditures for long-lived assets545.8 216.3 1,105.5 33.8 88.3 1,989.7 
Investments in net assets of and advances to equity affiliates301.6 493.4 445.5 35.7 — 1,276.2 
Total assets5,832.2 3,250.8 6,240.6 325.7 3,293.5 18,942.8 
2018
Sales$3,758.8 $2,193.3 $2,458.0 $436.1 $84.0 $8,930.2 
(A)
Operating income (loss)927.9 445.8 689.9 53.9 (176.0)1,941.5 
(B)
Depreciation and amortization485.3 198.6 265.8 8.1 12.9 970.7 
Equity affiliates' income82.0 61.1 58.3 1.9 — 203.3 
(B)
Expenditures for long-lived assets546.5 163.1 791.9 17.3 49.6 1,568.4 
(A)The sales information noted above relates to external customers only. All intersegment sales are eliminated in consolidation. Intersegment sales are generally transacted at market pricing. We generally do not have intersegment sales from our regional industrial gases businesses. Equipment manufactured for our regional industrial gases segments are generally transferred at cost and are not reflected as an intersegment sale.
(B)Refer to the Reconciliations to Consolidated Results section below.
Reconciliations to Consolidated Results
Operating Income
The table below reconciles total operating income disclosed in the table above to consolidated operating income as reflected on our consolidated income statements:
Year Ended 30 September202020192018
Total$2,203.8 $2,169.8 $1,941.5 
Change in inventory valuation method— — 24.1 
Facility closure— (29.0)— 
Cost reduction actions— (25.5)— 
Gain on exchange of equity affiliate investments— 29.1 — 
Company headquarters relocation income (expense)33.8 — — 
Consolidated Operating Income$2,237.6 $2,144.4 $1,965.6 
Equity Affiliates' Income
The table below reconciles total equity affiliates' income disclosed in the table above to consolidated equity affiliates' income as reflected on our consolidated income statements:
Year Ended 30 September202020192018
Total$231.0 $215.4 $203.3 
India Finance Act 202033.8 — — 
Tax reform repatriation - equity method investment— — (28.5)
Consolidated Equity Affiliates' Income$264.8 $215.4 $174.8 

Geographic Information
Sales to External Customers
Year Ended 30 September202020192018
United States$3,359.6 $3,351.8 $3,149.6 
China1,719.7 1,730.2 1,585.7 
Other foreign operations3,777.0 3,836.9 4,194.9 
Total$8,856.3 $8,918.9 $8,930.2 
Long-Lived Assets(A)
30 September202020192018
United States$4,633.9 $3,721.3 $3,512.7 
China3,719.4 3,302.6 3,066.6 
Other foreign operations3,611.4 3,313.7 3,344.4 
Total$11,964.7 $10,337.6 $9,923.7 
(A)Long-lived assets represents plant and equipment, net.
Geographic information is based on country of origin.