Cost Reduction Plan

9 Months Ended

Jun. 30, 2012

Cost Reduction Plan [Abstract]

Cost Reduction Plan

4.       COST REDUCTION PLAN

During the second quarter ended 31 March 2012, we initiated a cost reduction plan. The results fromcontinuing operations for the nine months ended 30 June 2012 include a charge of $86.8 ($60.6 after-tax, or $.28 per share) for this plan. This charge represents the ongoing actions we are taking to improve our cost structure, particularly in Europe. The plan includes removing the stranded costs resulting from our decision to exit the Homecare business, the reorganization of the Merchant business and the actions we are taking to right-size our European business cost structure in light of the challenging economic outlook.

This charge includes $80.8 for severance and other costs associated with the elimination of approximately600 positions from our workforce. The remainder of the charge, $6.0, is related to the write-down of certain assets. For additional information regarding these assets, see Note 10, Fair Value Measurements. The planned actions are expected to be completed by the end of the second quarter of fiscal year 2013.

The charge for the cost reduction plan is excluded from segment operating profit. The table below displays how thischarge relatesto the businesses at the segment level:

	Severance and		Asset
	Other Benefits		Impairments		Total
Merchant Gases	$	71.3	$	6.0	$	77.3
Tonnage Gases		3.8		-		3.8
Electronics and Performance Materials		5.7		-		5.7
Total 2012 Charge	$	80.8	$	6.0	$	86.8

The following table summarizes the carrying amount of the accrual for the cost reduction plan at 30 June 2012:

	Severance and		Asset
	Other Benefits		Impairments		Total
2012 Charge	$	80.8	$	6.0	$	86.8
Noncash expenses		(.4)		(6.0)		(6.4)
Amount reflected in pension liability		(6.8)		-		(6.8)
Cash expenditures		(21.2)		-		(21.2)
Currency translation adjustment		(2.1)		-		(2.1)
Accrued Balance	$	50.3	$	-	$	50.3