Discontinued Operations

3 Months Ended

Dec. 31, 2013

Discontinued Operations [Abstract]

Discontinued Operations

3.       DISCONTINUED OPERATIONS

During the second quarter of 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.

In the third quarter of 2012, we sold the majority of our Homecare business to The Linde Group for total sale proceeds of €590 million ($777). This amount included contingent proceeds of €110 million ($144) related to the outcome of certain retender arrangements. As of 31 December 2013, this liability is reflected in payables and accrued liabilities on our consolidated balance sheet, with payment expected in the fourth quarter of fiscal 2014.

In the first quarter of 2014, we sold the remaining portion of the Homecare business, which was primarily in the United Kingdom and Ireland, for £6.1 million ($9.8) and recorded a gain on sale of $2.4. We have entered into an operations guarantee related to the obligations under certain homecare contracts assigned in connection with the transaction.  Our maximum potential payment under the guarantee is £20 million (approximately $33 at 31 December 2013), and our exposure will be extinguished by 2020. The fair value of the guarantee is not material.

The results of operations and cash flows of this business have been reclassified 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 results of discontinued operations are summarized below:
			Three Months Ended
			31 December
			2013		2012
	Sales	$	8.5	$	13.8
	Income before taxes	$	.7	$	1.4
	Income tax provision		-		-
	Income from operations of discontinued operations		.7		1.4
	Gain on sale of business, net of tax		2.4		-
	Income from Discontinued Operations, net of tax	$	3.1	$	1.4

The assets and liabilities classified as discontinued operations for the Homecare business at 30 September 2013 consisted of $2.5 in trade receivables, net, and $2.4 in payables and accrued liabilities. As of 31 December 2013, no assets or liabilities were classified as discontinued operations.