Business and Asset Actions

9 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

BUSINESS AND ASSET ACTIONS

Our consolidated income statements reflect charges for strategic business and asset actions intended to optimize costs and focus resources on our growth projects. These charges were not recorded in segment results. As further discussed below, charges for business and asset actions were $57.0 ($43.8 after tax) for the nine months ended 30 June 2024 and $59.0 ($51.2 after tax) and $244.6 ($204.9 attributable to Air Products after tax) for the three and nine months ended 30 June 2023, respectively.

Global Cost Reduction Plan

During the second quarter of fiscal year 2024, we recognized an expense of $57.0 for severance and other postemployment benefits payable to employees identified under a global cost reduction plan. We originated this plan during the third quarter of fiscal year 2023, which resulted in an initial charge of $27.0. In total, approximately 1,100 employees globally are eligible to receive benefits under the plan. We estimated benefits payable according to our ongoing benefit arrangements.

The table below reconciles these charges to the carrying amount of the remaining accrual for unpaid benefits as of 30 June 2024. This balance primarily relates to the additional actions identified during the second quarter of fiscal year 2024. We expect to pay the majority of the remaining benefits over the next nine months.


Third quarter fiscal year 2023 charge			$27.0
Cash payments			(6.8)
Currency translation adjustment			(0.4)
Amount accrued as of 30 September 2023(A)			$19.8
Second quarter fiscal year 2024 charge			57.0
Cash payments			(33.3)
Currency translation adjustment			(0.2)
Amount accrued as of 30 June 2024(A)			$43.3

(A)Reflected within "Payables and accrued liabilities" on our consolidated balance sheets.

Asset Actions

During the third quarter and first nine months of fiscal year 2023, we recorded noncash charges of $32.0 and $217.6, respectively, to write off assets associated with exited projects that were previously under construction in our Asia and Europe segments. The assets written off included those related to our withdrawal from coal gasification in Indonesia as well as a project in Ukraine that was permanently suspended due to Russia's invasion of the country.