In 2012, we recorded an expense of $327.4 ($222.4 after-tax, or $1.03 per share) for business restructuring and cost reduction plans in our Polyurethane Intermediates, Electronics, and European Merchant businesses.

During the second quarter of 2012, we recorded an expense of $86.8 ($60.6 after-tax, or $.28 per share) for actions to remove stranded costs resulting from our decision to exit the Homecare business, the reorganization of the Merchant business, and actions to right-size our European cost structure in light of the challenging economic outlook. This charge is reflected on the consolidated income statements as “Business restructuring and cost reduction plans.” This charge included $80.8 for severance and other costs associated with the elimination of approximately 600 positions and $6.0 for the write-down of certain assets. The charge related to the businesses at the segment level as follows: $77.3 in Merchant Gases, $3.8 in Tonnage Gases, and $5.7 in Electronics and Performance Materials. As of 31 March 2013, the planned actions were substantially completed. The majority of the remaining accrued severance and other benefits will be paid out during the third quarter of fiscal year 2013.

During the fourth quarter of 2012, we completed actions in the Polyurethane Intermediates (PUI) business to improve costs, resulting in a net expense of $54.6 ($34.8 after-tax, or $.16 per share). We sold certain assets and the rights to a supply contract for $32.7 in cash at closing. A supply arrangement with terms at fair market value was established with the buyer to serve the retained product supply contracts so that our PUI production facility in Pasadena, Texas could permanently close. In connection with these actions, we recognized an expense of $26.6, for the net book value of assets sold and those committed to be disposed of other than by sale. The remaining charge was primarily related to contract terminations and an environmental liability. The PUI facility is currently being dismantled, with completion expected in fiscal year 2014. The costs to dismantle are expensed as incurred and reflected in continuing operations in the Tonnage Gases business segment. Since we have a material ongoing involvement with the business through retained PUI product supply contracts, the results of this business continue to be reflected in continuing operations in the Tonnage Gases segment.

During the fourth quarter of 2012, we completed an assessment of our position in the photovoltaic (PV) market, resulting in $186.0 of expense ($127.0 after-tax, or $.59 per share) primarily related to the Electronics and Performance Materials segment. Air Products supplies the PV market with both bulk and onsite supply of gases, including silane. The PV market has not developed as expected, and as a result, the market capacity to produce silane is expected to exceed demand for the foreseeable future. As a result, we recorded a charge of $93.5 for an offer that we made to terminate a long term take-or-pay silane contract. Although any settlement could differ from this amount, we do not expect it to be material to our financial position. It is uncertain when a settlement will be reached. The remaining charge was recorded in connection with the expected loss on purchase commitments, the disposal of certain assets serving PV and Electronics customers, the write-down of inventory to its net realizable value, and the write-down of accounts receivable.

The following table summarizes the carrying amount of the accrual for the plans at 31 March 2013:
		Severance and		Asset		Contract		Other
		Other Benefits		Actions		Actions		Costs		Total
Second quarter charge- Cost reduction plan		$	80.8	$	6.0	$	-	$	-	$	86.8
Fourth quarter charge- PUI business actions ^(A)			2.7		26.6		6.5		18.8		54.6
Fourth quarter charge- PV market actions ^(B)			-		34.7		93.5		57.8		186.0
2012 Charge		$	83.5	$	67.3	$	100.0	$	76.6	$	327.4
Amount reflected in environmental liability ^(C)			-		-		-		(9.0)		(9.0)
Amount reflected in pension liability			(7.5)		-		-		-		(7.5)
Noncash expenses			(.4)		(67.3)		-		(19.3)		(87.0)
Cash expenditures			(32.8)		-		-		(.1)		(32.9)
Currency translation adjustment			(1.6)		-		-		-		(1.6)
30 September 2012		$	41.2	$	-	$	100.0	$	48.2	$	189.4
Cash expenditures			(27.3)		-		(2.7)		(10.5)		(40.5)
Currency translation adjustment			.2		-		-		-		.2
Accrued Balance		$	14.1	$	-	$	97.3	$	37.7	$	149.1

^(A)Charge is net of $32.7 in proceeds received in cash at closing for certain PUI assets and the rights to a supply contract.
^(B)Other includes the write-down of inventory to its net realizable value, the write-down of accounts receivable, and expected losses on purchase
	commitments.
^(C)Reflected in accrual for environmental obligations. See Note 11, Commitments and Contingencies.