The table below summarizes charges for business and asset actions within our consolidated income statements. These charges were not recorded in segment results.


	Three Months Ended		Nine Months Ended
	30 June		30 June
	2026	2025	2026	2025
Project exit decisions	$2,907.4	$24.1	$2,929.4	$2,885.9
Global cost reduction plan	—	—	—	66.1
Charges recorded to operating income/loss	$2,907.4	$24.1	$2,929.4	$2,952.0
Project exit-related non-operating charges(A)	—	—	6.3	6.8


Charges recorded to income/loss from continuing operations before taxes	$2,907.4	$24.1	$2,935.7	$2,958.8
Income tax benefit	695.4	8.7	698.5	649.3
Amounts attributable to noncontrolling interests	—	—	0.6	3.5
Charges attributable to Air Products, after-tax	$2,212.0	$15.4	$2,236.6	$2,306.0

(A)Non-operating expenses in fiscal year 2026 were recorded through "Other non‑operating income (expense), net" for losses on cross‑currency interest rate swaps terminated in connection with the early repayment of intercompany loans for a gasification project being marketed for sale in China. Non-operating expenses in fiscal year 2025 were recorded through "Equity affiliates' income" and reflected an other-than-temporary impairment of a joint venture in China that had been formed to develop clean hydrogen infrastructure.

In February 2025, the Company approved actions to exit certain projects as part of a review of its project portfolio intended to focus resources on projects we believe will deliver the greatest value to our shareholders. These actions primarily affected clean-energy generation and distribution initiatives, including three U.S.-based projects within the Americas segment, several smaller-scale projects across the global portfolio, and two coal gasification plants in China that were subsequently marketed for sale due to customer-related challenges.

In June 2026, the Company made the decision to cancel a clean energy complex under construction in Louisiana within the Americas segment that had been designed to produce low-carbon hydrogen and ammonia. The decision was based on the determination that the expected financial returns from the project would not meet the Company's return criteria. In addition, the Company approved the exit of a green hydrogen production facility under construction in Casa Grande, Arizona, within the Americas segment, as well as certain other smaller-scale projects supporting clean energy distribution. These decisions reflected challenging commercial conditions, project-specific economic factors, and slower-than-expected development in certain end markets.

The table below summarizes cumulative charges incurred by major type of cost through 30 June 2026, categorized based on the fiscal year in which the underlying exit decisions were made.


	FY2026 Project Exit Decisions	FY2025 Project Exit Decisions(A)	Total Project Exit Decisions
Asset write-downs(B)	$2,210.6	$3,307.8	$5,518.4
Other exit costs(C)	696.8	350.6	1,047.4
Cumulative charges through 30 June 2026	$2,907.4	$3,658.4	$6,565.8

(A) Charges related to FY2025 Project Exit Decisions include $3,630.1 recorded in fiscal year 2025 as well as $28.3 recorded during the first quarter of fiscal year 2026, primarily to update estimates for project-related commitments and asset disposal costs.

(B) Impacted assets primarily include plant and equipment. Fiscal year 2025 also included charges related to other assets associated with project exits, as discussed in Note 3, Variable Interest Entities.

"Assets held for sale" on our consolidated balance sheets includes gasification assets associated with two plants in China that met the held-for-sale criteria beginning in the fourth quarter of fiscal year 2025. We continue to actively market these assets for sale and remain engaged in marketing and negotiation efforts.

Both the assets held for sale and certain other plant and equipment were subject to Level 3 fair value measurements due to the use of significant unobservable inputs. Refer to Note 9, Fair Value Measurements, for additional information, including the methodology for determining fair value.

The table below provides a reconciliation of the Company's accrued liability associated with project exit decisions included within "Payables and Accrued Liabilities" on the consolidated balance sheets:


	FY2026 Project Exit Decisions	FY2025 Project Exit Decisions	Total Project Exit Decisions
Liability as of 30 September 2025	$—	$178.3	$178.3
Estimated project exit costs accrued	696.8	—	696.8
Changes in estimates	—	3.7	3.7
Cash payments	—	(92.1)	(92.1)

Liability as of 30 June 2026	$696.8	$89.9	$786.7

Estimates related to project exit decisions reflect management's best judgment based on information available when the charges were recorded. Actual results may differ from current estimates due to the resolution of contractual matters, the commercialization, redeployment, or disposition of assets, and other events that could materially impact future-period results. Certain activities associated with project exit decisions will continue beyond fiscal year 2026, including efforts to maximize the redeployment of assets to existing or future projects or the sale of assets to third parties, and reduce exposure under existing contractual arrangements. The Company's review of its project portfolio remains ongoing.

In June 2023, we initiated a global cost reduction plan that provides severance and other postemployment benefits to employees designated for involuntary separation. In accordance with our accounting policy, we recognize related costs in the period management formally commits to a defined set of actions under the plan. Benefits are determined based on the terms of our established ongoing benefit arrangements. Since the plan was initiated, we have incurred cumulative costs totaling $207.7 for over 3,600 employees globally. Our consolidated prior-year income statement reflects costs of $66.1 for actions identified during the second quarter of fiscal year 2025.

The table below provides a reconciliation of the beginning and ending liability balances associated with our global cost reduction plan, which are reflected within “Payables and Accrued Liabilities” on our consolidated balance sheets: