Discontinued Operations

6 Months Ended

Mar. 31, 2012

Discontinued Operations [Abstract]

Discontinued Operations

3. DISCONTINUED OPERATIONS

In January 2012, the Board of Directors authorized the sale of our Homecare business, which had previously been reported as part of the Merchant Gases operating segment.

On 8 January 2012, we reached agreements for The Linde Group to purchase our Homecare business in Belgium, Germany, France, Portugal and Spain. This business represents approximately 80% of our total Homecare business revenues. We expect to sell the remaining portion of Homecare, which is primarily in the United Kingdom, within the next year.

The transaction with Linde received regulatory approval on 18 April 2012 and is expected to close on 30 April 2012. Total sale proceeds of €590 million (approximately $785) will be received in cash at closing. This amount includes contingent proceeds of €110 million (approximately $146) related to future business activity in Spain and Portugal. The gain related to the contingent proceeds will be deferred until the contingency period ends and the final proceeds are realized per the terms of the agreement. We will also be entitled to receive up to €32 million (approximately $43) of additional cash proceeds based upon collection of accounts receivable. We anticipate an after-tax gain in the range of €105-€130 million (approximately $140-$170) on the sale of this business in the third quarter of fiscal year 2012.

The Homecare business is being accounted for as discontinued operations. The results of operations and cash flows of this business have been removed from the results of continuing operations for all periods presented. The assets and liabilities of discontinued operations have been reclassified and are segregated in the consolidated balance sheets. The operating results are summarized below:

	Three Months Ended 31 March						Six Months Ended 31 March
	2012			2011			2012			2011
Sales		$	95.5		$	98.3		$	197.0		$	197.5
Income before taxes			25.2			25.7			56.1			55.1
Income tax provision			8.2			7.1			16.9			15.3
Income from discontinued operations, net of tax		$	17.0		$	18.6		$	39.2		$	39.8

Assets and liabilities of discontinued operations consist of the following:

	31 March			30 September
	2012			2011
Cash and cash items		$	13.5		$	1.1
Trade receivables, net			272.6			213.4
Inventories			11.1			11.2
Other current assets			20.1			17.5
Total Current Assets		$	317.3		$	243.2
Plant and equipment, net		$	177.5		$	189.3
Goodwill			96.6			96.2
Other noncurrent assets			.9			3.4
Total Noncurrent Assets		$	275.0		$	288.9
Payables and accrued liabilities		$	41.6		$	42.1
Accrued income taxes			10.9			.5
Short-term borrowings			—			.7
Total Current Liabilities		$	52.5		$	43.3
Other noncurrent liabilities		$	12.4		$	12.4
Deferred income taxes			11.6			11.9
Total Noncurrent Liabilities		$	24.0		$	24.3