10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended 31 December 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number 1-4534

AIR PRODUCTS AND CHEMICALS, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	23-1274455
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
7201 Hamilton Boulevard, Allentown, Pennsylvania	18195-1501
(Address of Principal Executive Offices)	(Zip Code)

610-481-4911

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   ü   No       

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes   ü   No       

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer   ü	Accelerated filer	Non-accelerated filer	Smaller reporting company
	(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    YES        NO   ü  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at 31 December 2014
Common Stock, $1 par value	214,274,045

AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries

INDEX

		Page No.
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
Consolidated Income Statements – Three Months Ended 31 December 2014 and 2013			3
Consolidated Comprehensive Income Statements – Three Months Ended 31  December 2014 and 2013			4
Consolidated Balance Sheets – 31 December 2014 and 30 September 2014			5
Consolidated Statements of Cash Flows – Three Months Ended 31 December 2014 and 2013			6
Notes to Consolidated Financial Statements			7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		36
Item 4.	Controls and Procedures		36
PART II.	OTHER INFORMATION
Item 6.	Exhibits		37
Signatures			38
Exhibit Index			39

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries

CONSOLIDATED INCOME STATEMENTS

(Unaudited)

	Three Months Ended 31 December
(Millions of dollars, except for share data)	2014			2013
Sales		$	2,560.8		$	2,545.5
Cost of sales			1,831.0			1,865.9
Selling and administrative			258.2			280.9
Research and development			35.4			33.5
Business restructuring and cost reduction actions			32.4			—
Gain on previously held equity interest			17.9			—
Other income (expense), net			8.3			20.4
Operating Income			430.0			385.6
Equity affiliates’ income			43.1			38.2
Interest expense			29.1			33.3
Income from Continuing Operations before Taxes			444.0			390.5
Income tax provision			106.5			94.5
Income from Continuing Operations			337.5			296.0
Income from Discontinued Operations, net of tax			—			3.1
Net Income			337.5			299.1
Less: Net Income Attributable to Noncontrolling Interests			12.9			8.9
Net Income Attributable to Air Products		$	324.6		$	290.2
Net Income Attributable to Air Products
Income from continuing operations		$	324.6		$	287.1
Income from discontinued operations			—			3.1
Net Income Attributable to Air Products		$	324.6		$	290.2
Basic Earnings Per Common Share Attributable to Air Products
Income from continuing operations		$	1.52		$	1.36
Income from discontinued operations			—			.01
Net Income Attributable to Air Products		$	1.52		$	1.37
Diluted Earnings Per Common Share Attributable to Air Products
Income from continuing operations		$	1.50		$	1.34
Income from discontinued operations			—			.01
Net Income Attributable to Air Products		$	1.50		$	1.35
Weighted Average Common Shares – Basic (in millions)			214.2			211.8
Weighted Average Common Shares – Diluted (in millions)			216.6			214.3
Dividends Declared Per Common Share – Cash		$	.77		$	.71

The accompanying notes are an integral part of these statements.

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AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries

CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS

(Unaudited)

	Three Months Ended 31 December
(Millions of dollars)	2014				2013
Net Income		$	337.5			$	299.1
Other Comprehensive Income (Loss), net of tax:
Translation adjustments, net of tax of $16.1 and ($13.6)			(244.4	)			31.4
Net gain (loss) on derivatives, net of tax of ($11.4) and $4.8			(23.8	)			13.1
Reclassification adjustments:
Derivatives, net of tax of $5.4 and ($4.4)			13.5				(11.9	)
Pension and postretirement benefits, net of tax of $10.1 and $9.6			20.9				20.0
Total Other Comprehensive Income (Loss)			(233.8	)			52.6
Comprehensive Income			103.7				351.7
Net Income Attributable to Noncontrolling Interests			12.9				8.9
Other Comprehensive Loss Attributable to Noncontrolling Interests			(5.1	)			(1.1	)
Comprehensive Income Attributable to Air Products		$	95.9			$	343.9

The accompanying notes are an integral part of these statements.

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AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Millions of dollars, except for share data)	31 December 2014				30 September 2014
Assets
Current Assets
Cash and cash items		$	238.8			$	336.6
Trade receivables, net			1,430.4				1,486.0
Inventories			709.7				706.0
Contracts in progress, less progress billings			143.0				155.4
Prepaid expenses			76.4				87.8
Other receivables and current assets			538.9				523.0
Total Current Assets			3,137.2				3,294.8
Investment in net assets of and advances to equity affiliates			1,252.2				1,257.9
Plant and equipment, at cost			20,256.5				20,223.5
Less: accumulated depreciation			10,648.9				10,691.4
Plant and equipment, net			9,607.6				9,532.1
Goodwill, net			1,200.7				1,237.3
Intangible assets, net			585.2				615.8
Noncurrent capital lease receivables			1,397.6				1,414.9
Other noncurrent assets			454.9				426.3
Total Noncurrent Assets			14,498.2				14,484.3
Total Assets		$	17,635.4			$	17,779.1
Liabilities and Equity
Current Liabilities
Payables and accrued liabilities		$	1,585.1			$	1,591.0
Accrued income taxes			79.1				78.0
Short-term borrowings			1,283.5				1,228.7
Current portion of long-term debt			54.2				65.3
Total Current Liabilities			3,001.9				2,963.0
Long-term debt			4,751.3				4,824.5
Other noncurrent liabilities			1,070.7				1,187.5
Deferred income taxes			1,019.5				995.5
Total Noncurrent Liabilities			6,841.5				7,007.5
Total Liabilities			9,843.4				9,970.5
Commitments and Contingencies – See Note 11
Redeemable Noncontrolling Interest			288.7				287.2
Air Products Shareholders’ Equity
Common stock (par value $1 per share; issued 2015 and 2014 – 249,455,584 shares)			249.4				249.4
Capital in excess of par value			852.8				842.0
Retained earnings			10,152.0				9,993.2
Accumulated other comprehensive loss			(1,470.6	)			(1,241.9	)
Treasury stock, at cost (2015 – 35,181,539 shares; 2014 – 35,917,440 shares)			(2,432.1	)			(2,476.9	)
Total Air Products Shareholders’ Equity			7,351.5				7,365.8
Noncontrolling Interests			151.8				155.6
Total Equity			7,503.3				7,521.4
Total Liabilities and Equity		$	17,635.4			$	17,779.1

The accompanying notes are an integral part of these statements.

5

AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended 31 December
(Millions of dollars)	2014				2013
Operating Activities
Net Income		$	337.5			$	299.1
Less: Net income attributable to noncontrolling interests			12.9				8.9
Net income attributable to Air Products			324.6				290.2
Income from discontinued operations			—				(3.1	)
Income from continuing operations attributable to Air Products			324.6				287.1
Adjustments to reconcile income to cash provided by operating activities:
Depreciation and amortization			235.5				234.2
Deferred income taxes			26.2				33.0
Gain on previously held equity interest			(17.9	)			—
Undistributed earnings of unconsolidated affiliates			(31.3	)			1.5
Share-based compensation			11.9				11.8
Noncurrent capital lease receivables			(8.1	)			(10.0	)
Other adjustments			(60.5	)			12.7
Working capital changes that provided (used) cash, excluding effects of acquisitions and divestitures:
Trade receivables			22.3				(17.7	)
Inventories			(16.0	)			11.9
Contracts in progress, less progress billings			6.8				32.6
Other receivables			(27.3	)			(.9	)
Payables and accrued liabilities			5.0				(65.2	)
Other working capital			15.4				15.2
Cash Provided by Operating Activities			486.6				546.2
Investing Activities
Additions to plant and equipment			(446.5	)			(391.1	)
Acquisitions, less cash acquired			(22.6	)			—
Proceeds from sale of assets and investments			3.7				5.5
Other investing activities			2.2				—
Cash Used for Investing Activities			(463.2	)			(385.6	)
Financing Activities
Long-term debt proceeds			.9				1.4
Payments on long-term debt			(38.5	)			(434.0	)
Net increase in commercial paper and short-term borrowings			54.0				339.1
Dividends paid to shareholders			(164.4	)			(149.9	)
Proceeds from stock option exercises			42.1				19.9
Excess tax benefit from share-based compensation			13.4				4.1
Other financing activities			(19.4	)			(18.8	)
Cash Used for Financing Activities			(111.9	)			(238.2	)
Discontinued Operations
Cash provided by operating activities			—				.7
Cash provided by investing activities			—				9.8
Cash used for financing activities			—				—
Cash Provided by Discontinued Operations			—				10.5
Effect of Exchange Rate Changes on Cash			(9.3	)			4.3
Decrease in Cash and Cash Items			(97.8	)			(62.8	)
Cash and Cash Items – Beginning of Year			336.6				450.4
Cash and Cash Items – End of Period		$	238.8			$	387.6
Supplemental Cash Flow Information
Cash paid for taxes (net of cash refunds)		$	62.5			$	31.4

The accompanying notes are an integral part of these statements.

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AIR PRODUCTS AND CHEMICALS, INC. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Millions of dollars unless otherwise indicated, except for share data)

1. BASIS OF PRESENTATION AND MAJOR ACCOUNTING POLICIES

Refer to our 2014 Form 10-K for a description of major accounting policies. There have been no significant changes to these accounting policies during the first three months of fiscal year 2015.

The Company realigned its businesses in new reporting segments and began operating under the new structure effective 1 October 2014. Prior year segment information presented has been restated to conform with the fiscal year 2015 presentation. See Note 18, Business Segment Information, for further details.

The consolidated financial statements of Air Products and Chemicals, Inc. and its subsidiaries (“we,” “our,” “us,” the “Company,” “Air Products,” or “registrant”) included herein have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the Notes. The interim results for the periods indicated herein, however, do not reflect certain adjustments, such as the valuation of inventories on the last-in, first-out (LIFO) cost basis, which are only finally determined on an annual basis. The consolidated financial statements and related Notes included herein should be read in conjunction with the financial statements and Notes thereto included in our latest Form 10-K in order to fully understand the basis of presentation. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year.

2. NEW ACCOUNTING GUIDANCE

Accounting Guidance Implemented in 2015

Unrecognized Tax Benefits

In July 2013, the Financial Accounting Standards Board (FASB) issued guidance to require standard presentation of an unrecognized tax benefit when a carryforward related to net operating losses or tax credits exists. We adopted this guidance prospectively beginning in the first quarter of fiscal year 2015. This guidance did not have a significant impact on our consolidated financial statements.

New Accounting Guidance to be Implemented

Discontinued Operations

In April 2014, the FASB issued an update to change the criteria for determining which disposals qualify as a discontinued operation and to expand related disclosure requirements. Under the new guidance, a disposal is required to be reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on operations and financial results. This guidance will be effective prospectively for new disposals and new disposal groups classified as held for sale beginning in fiscal year 2016, with early adoption permitted.

Revenue Recognition

In May 2014, the FASB issued guidance based on the principle that revenue is recognized in an amount expected to be collected and to which the entity expects to be entitled in exchange for the transfer of goods or services. This guidance is effective for us beginning in fiscal year 2018 and can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. We are currently evaluating the adoption alternatives and impact that this update will have on our consolidated financial statements.

7

Share-Based Compensation

In June 2014, the FASB issued guidance clarifying that share-based compensation performance targets that could be achieved after the requisite service period should be treated as a performance condition that affects vesting, rather than a condition that affects the grant-date fair value of the award. This guidance is effective for us beginning in fiscal year 2017, with early adoption permitted. We do not expect this guidance to have a significant impact on our consolidated financial statements.

Going Concern

In August 2014, the FASB issued guidance regarding management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern within one year of the issuance of the financial statements. If substantial doubt exists, additional disclosures would be required. This guidance will be effective beginning in the fourth quarter of fiscal year 2017, with early adoption permitted. This guidance will not have a significant impact on our consolidated financial statements.

Extraordinary Items

In January 2015, the FASB issued an update to eliminate the concept of extraordinary items. Previously, extraordinary items were required to be segregated and shown separately in the income statement, net of tax, when the items were deemed both unusual and infrequent. The guidance is effective beginning in fiscal year 2017 and may be applied retrospectively for periods presented. Early adoption is permitted if applied from the beginning of the fiscal year of adoption.

3. DISCONTINUED OPERATIONS

During the second quarter of 2012, the Board of Directors authorized the sale of our Homecare business which has been accounted for as a discontinued operation.

In the third quarter of 2012, we sold the majority of our Homecare business to The Linde Group for sale proceeds of €590 million ($777) and recognized a gain of $207.4 ($150.3 after-tax, or $.70 per share). Additionally, during the third quarter of 2012, an impairment charge of $33.5 ($29.5 after-tax, or $.14 per share) was recorded to write down the remaining business, which was primarily in the United Kingdom and Ireland, to its estimated net realizable value. In the fourth quarter of 2013, an additional charge of $18.7 ($13.6 after-tax, or $.06 per share) was recorded to update our estimate of the net realizable value. In the first quarter of 2014, we sold the remaining portion of the Homecare business for £6.1 million ($9.8) and recorded a gain on sale of $2.4. We 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 $31 at 31 December 2014), and our exposure will be extinguished by 2020. The fair value of the guarantee is not material.

The results of discontinued operations are summarized below:

	Three Months Ended 31 December
	2014			2013
Sales		$	—		$	8.5
Income before taxes		$	—		$	.7
Income tax provision			—			—
Income from operations of discontinued operations			—			.7
Gain on sale of business, net of tax			—			2.4
Income from Discontinued Operations, net of tax		$	—		$	3.1

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4. BUSINESS RESTRUCTURING AND COST REDUCTION ACTIONS

The charges we record for business restructuring and cost reduction actions have been excluded from segment operating income and are reflected on the consolidated income statements as “Business Restructuring and Cost Reduction Actions.”

Business Realignment and Reorganization

On 18 September 2014, we announced plans to reorganize the Company, including realignment of our businesses in new reporting segments and other organizational changes, effective as of 1 October 2014. Refer to Note 18, Business Segment Information, for additional details. As a result of this reorganization, we will incur ongoing severance and other charges.

During the fourth quarter of 2014, an expense of $12.7 ($8.2 after-tax, or $.04 per share) was incurred relating to the elimination of approximately 50 positions. The 2014 charge related to the segment level as follows: $2.9 in Industrial Gases – Americas, $3.1 in Industrial Gases – EMEA, $1.5 in Industrial Gases – Asia, $1.5 in Industrial Gases – Global, $1.6 in Materials Technologies, and $2.1 in Corporate and other.

In the first quarter of 2015, we recognized an expense of $32.4 ($21.7 after-tax, or $.10 per share) related to the elimination of approximately 450 positions. The 2015 charge related to the segment level as follows: $5.1 in Industrial Gases – Americas, $2.6 in Industrial Gases – EMEA, $2.7 in Industrial Gases – Asia, $1.3 in Industrial Gases – Global, $8.1 in Materials Technologies, and $12.6 in Corporate and other.

The following table summarizes the carrying amount of the accrual for the business realignment and reorganization at 31 December 2014:

	Severance and Other Benefits
2014 Charge		$	12.7
Cash expenditures			(2.2	)
30 September 2014		$	10.5
2015 Charge		$	32.4
Amount reflected in pension liability			(2.7	)
Cash expenditures			(25.0	)
Currency translation adjustment			(.1	)
31 December 2014		$	15.1

2013 Plan

During the fourth quarter of 2013, we recorded an expense of $231.6 ($157.9 after-tax, or $.74 per share) reflecting actions to better align our cost structure with current market conditions. The asset and contract actions primarily impacted the Electronics Materials business due to continued weakness in the photovoltaic (PV) and light-emitting diode (LED) markets. The severance and other contractual benefits primarily impacted our Industrial Gases businesses and corporate functions in response to weaker than expected business conditions in Europe and Asia, reorganization of our operations and functional areas, and previously announced senior executive changes. The remaining planned actions were completed in the first quarter of 2015.

9

The following table summarizes the carrying amount of the accrual for the 2013 Plan at 31 December 2014:

	Severance and Other Benefits				Asset Actions				Contract Actions/ Other				Total
2013 Charge		$	71.9			$	100.4			$	59.3			$	231.6
Amount reflected in pension liability			(6.9	)			—				—				(6.9	)
Noncash expenses			—				(100.4	)			—				(100.4	)
Cash expenditures			(3.0	)			—				(58.5	)			(61.5	)
Currency translation adjustment			.4				—				—				.4
30 September 2013		$	62.4			$	—			$	.8			$	63.2
Cash expenditures			(51.7	)			—				(.8	)			(52.5	)
Currency translation adjustment			(.6	)			—				—				(.6	)
30 September 2014		$	10.1			$	—			$	—			$	10.1
Cash expenditures			(7.1	)			—				—				(7.1	)
Currency translation adjustment			(.1	)			—				—				(.1	)
31 December 2014		$	2.9			$	—			$	—			$	2.9

5. BUSINESS COMBINATIONS

On 30 December 2014, we acquired our partner’s equity ownership interest in a liquefied industrial gases production joint venture in North America for $22.6, which increased our ownership from 50% to 100%. The transaction was accounted for as a business combination, and subsequent to the acquisition, the results are consolidated within our Industrial Gases – Americas segment. The assets acquired, primarily plant and equipment, were recorded at their fair market values as of the acquisition date.

The acquisition date fair value of the previously held equity interest was determined using a discounted cash flow analysis under the income approach. The three months ended 31 December 2014 include a gain of $17.9 ($11.2 after-tax, or $.05 per share) as a result of revaluing our previously held equity interest to fair value as of the acquisition date. This gain is reflected on the consolidated income statements as “Gain on previously held equity interest.”

6. INVENTORIES

The components of inventories are as follows:

	31 December 2014				30 September 2014
Finished goods		$	506.3			$	493.9
Work in process			37.6				34.1
Raw materials, supplies and other			273.6				283.4
		$	817.5			$	811.4
Less: Excess of FIFO cost over LIFO cost			(107.8	)			(105.4	)
		$	709.7			$	706.0

First-in, first-out (FIFO) cost approximates replacement cost. Our inventories generally have a high turnover, and as a result, there is little difference between the original cost of an item and its current replacement cost.

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7. GOODWILL

Changes to the carrying amount of consolidated goodwill by segment for the three months ended 31 December 2014 are as follows:

	Industrial Gases– Americas				Industrial Gases– EMEA				Industrial Gases– Asia				Industrial Gases– Global				Materials Technologies				Total
Balance at 30 September 2014		$	327.2			$	433.3			$	140.0			$	21.4			$	315.4			$	1,237.3
Acquisitions and adjustments			2.2				—				—				—				—				2.2
Currency translation and other			(3.1	)			(21.8	)			(4.0	)			(.8	)			(9.1	)			(38.8	)
Balance at 31 December 2014		$	326.3			$	411.5			$	136.0			$	20.6			$	306.3			$	1,200.7

	31 December 2014				30 September 2014
Goodwill, gross		$	1,481.6			$	1,522.1
Accumulated impairment losses (A)			(280.9	)			(284.8	)
Goodwill, net		$	1,200.7			$	1,237.3

^(A)  Amount is attributable to the Industrial Gases – Americas segment and includes currency translation of $24.3 and $20.4 as of 31 December 2014 and 30 September 2014, respectively.

Due to the reorganization of our business effective as of 1 October 2014, we conducted a goodwill impairment test in the first quarter of 2015. We determined that the fair value of each of our reporting units except Latin America within the Industrial Gases – Americas segment substantially exceeded the carrying value. The fair value of the Latin America reporting unit exceeded its carrying value, and no impairment of goodwill was recorded. We previously recorded an impairment of goodwill of $305.2 related to this reporting unit in the fourth quarter of 2014. The carrying value of goodwill for the Latin America reporting unit at 31 December 2014 was $229.7.

The fair value of the Latin America reporting unit at 1 October 2014 was estimated based on a similar outlook and assumptions as those used for the testing at 30 September 2014. Management judgment is required in the determination of each assumption utilized in the valuation model, and actual results could differ from the estimates. We will continue to evaluate goodwill on an annual basis as of the beginning of our fourth fiscal quarter and whenever there are indicators of potential impairment.

8. FINANCIAL INSTRUMENTS

Currency Price Risk Management

Our earnings, cash flows, and financial position are exposed to foreign currency risk from foreign currency-denominated transactions and net investments in foreign operations. It is our policy to minimize our cash flow volatility from changes in currency exchange rates. This is accomplished by identifying and evaluating the risk that our cash flows will change in value due to changes in exchange rates and by executing the appropriate strategies necessary to manage such exposures. Our objective is to maintain economically balanced currency risk management strategies that provide adequate downside protection.

Forward Exchange Contracts

We enter into forward exchange contracts to reduce the cash flow exposure to foreign currency fluctuations associated with highly anticipated cash flows and certain firm commitments, such as the purchase of plant and equipment. We also enter into forward exchange contracts to hedge the cash flow exposure on intercompany loans. The portfolio of forward exchange contracts consists primarily of Euros and British Pound Sterling as well as Euros and U.S. dollars. The maximum remaining term of any forward exchange contract currently outstanding and designated as a cash flow hedge at 31 December 2014 is 3.7 years.

Forward exchange contracts are also used to hedge the value of investments in certain foreign subsidiaries and affiliates by creating a liability in a currency in which we have a net equity position. The primary currency pair in this portfolio of forward exchange contracts is the Euro/U.S. dollar.

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In addition to the forward exchange contracts that are designated as hedges, we utilize forward exchange contracts that are not designated as hedges. These contracts are used to economically hedge foreign currency-denominated monetary assets and liabilities, primarily working capital. The primary objective of these forward exchange contracts is to protect the value of foreign currency-denominated monetary assets and liabilities from the effects of volatility in foreign exchange rates that might occur prior to their receipt or settlement. This portfolio of forward exchange contracts comprises many different foreign currency pairs, with a profile that changes from time to time depending on business activity and sourcing decisions.

The table below summarizes our outstanding currency price risk management instruments:

	31 December 2014					30 September 2014
	US$ Notional			Years Average Maturity		US$ Notional			Years Average Maturity
Forward Exchange Contracts:
Cash flow hedges		$	3,243.5		.6		$	2,965.5		.7
Net investment hedges			660.5		2.6			685.9		2.9
Not designated			1,079.6		.5			381.5		.1
Total Forward Exchange Contracts		$	4,983.6		.8		$	4,032.9		1.0

In addition to the above, we use foreign currency-denominated debt to hedge the foreign currency exposures of our net investment in certain foreign subsidiaries. The designated foreign currency denominated debt and related accrued interest included €900.0 million ($1,089.3) and Chinese Renminbi 922.7 million ($148.6) at 31 December 2014 and €879.3 million ($1,110.6) and Chinese Renminbi 900.9 million ($146.8) at 30 September 2014. The designated foreign currency-denominated debt is located on the balance sheet in the long-term debt and short-term borrowings line items.

Debt Portfolio Management

It is our policy to identify on a continuing basis the need for debt capital and evaluate the financial risks inherent in funding the Company with debt capital. Reflecting the result of this ongoing review, the debt portfolio and hedging program are managed with the objectives and intent to (1) reduce funding risk with respect to borrowings made by us to preserve our access to debt capital and provide debt capital as required for funding and liquidity purposes, and (2) manage the aggregate interest rate risk and the debt portfolio in accordance with certain debt management parameters.

Interest Rate Management Contracts

We enter into interest rate swaps to change the fixed/variable interest rate mix of our debt portfolio in order to maintain the percentage of fixed- and variable-rate debt within the parameters set by management. In accordance with these parameters, the agreements are used to manage interest rate risks and costs inherent in our debt portfolio. Our interest rate management portfolio generally consists of fixed-to-floating interest rate swaps (which are designated as fair value hedges), pre-issuance interest rate swaps and treasury locks (which hedge the interest rate risk associated with anticipated fixed-rate debt issuances and are designated as cash flow hedges), and floating-to-fixed interest rate swaps (which are designated as cash flow hedges). At 31 December 2014, the outstanding interest rate swaps were denominated in U.S. dollars, Euros, and Chilean Pesos. The maximum remaining term of any interest rate swap designated as a cash flow hedge is .2 years. The notional amount of the interest rate swap agreements is equal to or less than the designated debt being hedged. When interest rate swaps are used to hedge variable-rate debt, the indices of the swaps and the debt to which they are designated are the same. It is our policy not to enter into any interest rate management contracts that lever a move in interest rates on a greater than one-to-one basis.

Cross Currency Interest Rate Swap Contracts

We enter into cross currency interest rate swap contracts when our risk management function deems necessary. These contracts may entail both the exchange of fixed- and floating-rate interest payments periodically over the life of the agreement and the exchange of one currency for another currency at inception and at a specified future date. These contracts effectively convert the currency denomination of a debt instrument into another currency in which we have a net equity position while changing the interest rate characteristics of the instrument. The contracts are used to hedge either certain net investments in foreign operations or nonfunctional currency cash flows related to intercompany loans. The current cross currency interest rate swap portfolio consists of fixed-to-fixed swaps between U.S. dollars and Chilean Pesos, U.S. dollars and offshore Chinese Renminbi, U.S. dollars and British Pound Sterling, as well as U.S. dollars and Euros.

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The following table summarizes our outstanding interest rate management contracts and cross currency interest rate swaps:

	31 December 2014											30 September 2014
	US$ Notional			Average Pay %			Average Receive %			Years Average Maturity		US$ Notional			Average Pay %			Average Receive %			Years Average Maturity
Interest rate swaps (fair value hedge)		$	600.0		LIBOR			2.77	%		4.0		$	600.0		LIBOR			2.77	%		4.3
Cross currency interest rate swaps (net investment hedge)		$	773.1		3.43	%		2.01	%		3.5		$	404.5		3.70	%		1.15	%		2.7
Interest rate swaps (cash flow hedge)		$	392.6		2.12	%		.43	%		.2		$	431.7		2.36	%		.71	%		.4
Cross currency interest rate swaps (cash flow hedge)		$	483.9		3.46	%		2.86	%		4.0		$	446.3		3.39	%		2.86	%		4.2
Cross currency interest rate swaps (not designated)		$	—		—	%		—	%		—		$	15.4		3.62	%		.05	%		.8

The table below summarizes the fair value and balance sheet location of our outstanding derivatives:

	Balance Sheet Location	31 December 2014			30 September 2014			Balance Sheet Location	31 December 2014			30 September 2014
Derivatives Designated as Hedging Instruments:
Forward exchange contracts	Other receivables		$	104.5		$	78.9	Accrued liabilities		$	109.0		$	61.8
Interest rate management contracts	Other receivables			25.5			21.1	Accrued liabilities			31.2			18.8
Forward exchange contracts	Other noncurrent assets			31.8			10.5	Other noncurrent liabilities			2.6			3.1
Interest rate management contracts	Other noncurrent assets			77.9			54.6	Other noncurrent liabilities			—			.3
Total Derivatives Designated as Hedging Instruments			$	239.7		$	165.1			$	142.8		$	84.0
Derivatives Not Designated as Hedging Instruments:
Forward exchange contracts	Other receivables		$	3.2		$	4.0	Accrued liabilities		$	1.6		$	1.9
Interest rate management contracts	Other receivables			—			2.6	Accrued liabilities			—			—
Total Derivatives Not Designated as Hedging Instruments			$	3.2		$	6.6			$	1.6		$	1.9
Total Derivatives			$	242.9		$	171.7			$	144.4		$	85.9

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The table below summarizes the gain or loss related to our cash flow hedges, fair value hedges, net investment hedges, and derivatives not designated as hedging instruments:

	Three Months Ended 31 December
	Forward Exchange Contracts								Foreign Currency Debt							Other (A)								Total
	2014				2013				2014			2013				2014				2013				2014				2013
Cash Flow Hedges, net of tax:
Net gain (loss) recognized in OCI (effective portion)		$	(24.0	)		$	14.3			$	—		$	—			$	.2			$	(1.2	)		$	(23.8	)		$	13.1
Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion)			(.6	)			.2				—			—				—				—				(.6	)			.2
Net (gain) loss reclassified from OCI to other income (expense), net (effective portion)			18.8				(12.7	)			—			—				(5.2	)			1.4				13.6				(11.3	)
Net (gain) loss reclassified from OCI to interest expense (effective portion)			(.3	)			—				—			—				.3				(.2	)			—				(.2	)
Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion)			.5				(.6	)			—			—				—				—				.5				(.6	)
Fair Value Hedges:
Net gain (loss) recognized in interest expense (B)		$	—			$	—			$	—		$	—			$	3.5			$	(4.4	)		$	3.5			$	(4.4	)
Net Investment Hedges, net of tax:
Net gain (loss) recognized in OCI		$	20.1			$	(9.9	)		$	31.1		$	(13.6	)		$	10.1			$	5.1			$	61.3			$	(18.4	)
Derivatives Not Designated as Hedging Instruments:
Net gain (loss) recognized in other income (expense), net (C)		$	.2			$	.1			$	—		$	—			$	—			$	—			$	.2			$	.1

^(A) Other includes the impact on other comprehensive income (OCI) and earnings primarily related to interest rate and cross currency interest rate swaps.

^(B) The impact of fair value hedges noted above was largely offset by gains and losses resulting from the impact of changes in related interest rates on recognized outstanding debt.

^(C) The impact of the non-designated hedges noted above was largely offset by gains and losses, respectively, resulting from the impact of changes in exchange rates on recognized assets and liabilities denominated in nonfunctional currencies.

The amount of cash flow hedges’ unrealized gains and losses at 31 December 2014 that are expected to be reclassified to earnings in the next twelve months is not material.

The cash flows related to all derivative contracts are reported in the operating activities section of the consolidated statements of cash flows.

Credit Risk-Related Contingent Features

Certain derivative instruments are executed under agreements that require us to maintain a minimum credit rating with both Standard & Poor’s and Moody’s. If our credit rating falls below this threshold, the counterparty to the derivative instruments has the right to request full collateralization on the derivatives’ net liability position. The net liability position of derivatives with credit risk-related contingent features was $11.7 as of 31 December 2014 and $2.1 as of 30 September 2014. Because our current credit rating is above the various pre-established thresholds, no collateral has been posted on these liability positions.

Counterparty Credit Risk Management

We execute financial derivative transactions with counterparties that are highly rated financial institutions, all of which are investment grade at this time. Some of our underlying derivative agreements give us the right to require the institution to post collateral if its credit rating falls below the pre-established thresholds with Standard & Poor’s or Moody’s. These are the same agreements referenced in Credit Risk-Related Contingent Features above. The collateral that the counterparties would be required to post was $159.8 as of 31 December 2014 and $107.8 as of 30 September 2014. No financial institution is required to post collateral at this time, as all have credit ratings at or above the threshold.

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9. FAIR VALUE MEASUREMENTS

Fair value is defined as an exit price, i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows:

Level 1	—	Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2	—	Inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability.
Level 3	—	Inputs that are unobservable for the asset or liability based on our own assumptions (about the assumptions market participants would use in pricing the asset or liability).

The methods and assumptions used to measure the fair value of financial instruments are as follows:

Derivatives

The fair value of our interest rate management contracts and forward exchange contracts are quantified using the income approach and are based on estimates using standard pricing models. These models take into account the value of future cash flows as of the balance sheet date, discounted to a present value using discount factors that match both the time to maturity and currency of the underlying instruments. The computation of the fair values of these instruments is generally performed by the Company. These standard pricing models utilize inputs which are derived from or corroborated by observable market data such as interest rate yield curves and currency spot and forward rates. In addition, on an ongoing basis, we randomly test a subset of our valuations against valuations received from the transaction’s counterparty to validate the accuracy of our standard pricing models. Counterparties to these derivative contracts are highly rated financial institutions.

Refer to Note 8, Financial Instruments, for a description of derivative instruments, including details on the balance sheet line classifications.

Long-term Debt

The fair value of our debt is based on estimates using standard pricing models that take into account the value of future cash flows as of the balance sheet date, discounted to a present value using discount factors that match both the time to maturity and currency of the underlying instruments. These standard valuation models utilize observable market data such as interest rate yield curves and currency spot rates. Therefore, the fair value of our debt is classified as a level 2 measurement. We generally perform the computation of the fair value of these instruments.

The carrying values and fair values of financial instruments were as follows:

	31 December 2014						30 September 2014
	Carrying Value			Fair Value			Carrying Value			Fair Value
Assets
Derivatives
Forward exchange contracts		$	139.5		$	139.5		$	93.4		$	93.4
Interest rate management contracts			103.4			103.4			78.3			78.3
Liabilities
Derivatives
Forward exchange contracts		$	113.2		$	113.2		$	66.8		$	66.8
Interest rate management contracts			31.2			31.2			19.1			19.1
Long-term debt, including current portion			4,805.5			5,078.7			4,889.8			5,130.7

The carrying amounts reported in the balance sheet for cash and cash items, trade receivables, payables and accrued liabilities, accrued income taxes, and short-term borrowings approximate fair value due to the short-term nature of these instruments. Accordingly, these items have been excluded from the above table.

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The following table summarizes assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets:

	31 December 2014												30 September 2014
	Total			Level 1			Level 2			Level 3			Total			Level 1			Level 2			Level 3
Assets at Fair Value
Derivatives
Forward exchange contracts		$	139.5		$	—		$	139.5		$	—		$	93.4		$	—		$	93.4		$	—
Interest rate management contracts			103.4			—			103.4			—			78.3			—			78.3			—
Total Assets at Fair Value		$	242.9		$	—		$	242.9		$	—		$	171.7		$	—		$	171.7		$	—
Liabilities at Fair Value
Derivatives
Forward exchange contracts		$	113.2		$	—		$	113.2		$	—		$	66.8		$	—		$	66.8		$	—
Interest rate management contracts			31.2			—			31.2			—			19.1			—			19.1			—
Total Liabilities at Fair Value		$	144.4		$	—		$	144.4		$	—		$	85.9		$	—		$	85.9		$	—

10. RETIREMENT BENEFITS

The components of net periodic benefit cost for the defined benefit pension and other postretirement benefit plans for the three months ended 31 December 2014 and 2013 were as follows:

	Pension Benefits																Other Benefits
	2014								2013								2014			2013
Three Months Ended 31 December	U.S.				International				U.S.				International
Service cost		$	10.6			$	8.2			$	10.7			$	8.8			$	.7		$	.8
Interest cost			31.2				15.0				32.7				16.6				.6			.6
Expected return on plan assets			(50.5	)			(21.1	)			(47.0	)			(19.2	)			—			—
Prior service cost amortization			.7				—				.7				.1				—			—
Actuarial loss amortization			19.8				10.5				19.6				8.8				.2			.4
Settlement and curtailment charges			(.1	)			(.1	)			—				—				—			—
Special termination benefits			2.7				—				.2				—				—			—
Other			1.1				.5				—				.5				—			—
Net periodic benefit cost		$	15.5			$	13.0			$	16.9			$	15.6			$	1.5		$	1.8

Net periodic benefit cost is primarily included in cost of sales and selling and administrative expense on our consolidated income statements. The amount of net periodic benefit cost capitalized in 2014 and 2013 was not material.

For the three months ended 31 December 2014 and 2013, our cash contributions to funded pension plans and benefit payments under unfunded pension plans were $76.4 and $31.4, respectively. Total contributions for fiscal 2015 are expected to be approximately $130 to $150. During fiscal 2014, total contributions were $78.2.

11. COMMITMENTS AND CONTINGENCIES

Litigation

We are involved in various legal proceedings, including competition, environmental, health, safety, product liability, and insurance matters. In September 2010, the Brazilian Administrative Council for Economic Defense (CADE) issued a decision against our Brazilian subsidiary, Air Products Brasil Ltda., and several other Brazilian industrial gas companies for alleged anticompetitive activities. CADE imposed a civil fine of R$179.2 million (approximately $67 at 31 December 2014) on Air Products Brasil Ltda. This fine was based on a recommendation by a unit of the Brazilian Ministry of Justice, whose investigation began in 2003, alleging violation of competition laws with respect to the sale of industrial and medical gases. The fines are based on a percentage of our total revenue in Brazil in 2003.

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We have denied the allegations made by the authorities and filed an appeal in October 2010 with the Brazilian courts. On 6 May 2014, our appeal was granted and the fine against Air Products Brasil Ltda. was dismissed. CADE has appealed that ruling and the matter remains pending. We, with advice of our outside legal counsel, have assessed the status of this matter and have concluded that, although an adverse final judgment after exhausting all appeals is possible, such a judgment is not probable. As a result, no provision has been made in the consolidated financial statements. We estimate the maximum possible loss to be the full amount of the fine of R$179.2 million (approximately $67 at 31 December 2014) plus interest accrued thereon until final disposition of the proceedings.

While we do not expect that any sums we may have to pay in connection with this or any other legal proceeding would have a material adverse effect on our consolidated financial position or net cash flows, a future charge for regulatory fines or damage awards could have a significant impact on our net income in the period in which it is recorded.

Environmental

In the normal course of business, we are involved in legal proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA: the federal Superfund law); Resource Conservation and Recovery Act (RCRA); and similar state and foreign environmental laws relating to the designation of certain sites for investigation or remediation. Presently, there are approximately 36 sites on which a final settlement has not been reached where we, along with others, have been designated a potentially responsible party by the Environmental Protection Agency or are otherwise engaged in investigation or remediation, including cleanup activity at certain of our current and former manufacturing sites. We continually monitor these sites for which we have environmental exposure.

Accruals for environmental loss contingencies are recorded when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The consolidated balance sheets at 31 December 2014 and 30 September 2014 included an accrual of $84.8 and $86.2, respectively, primarily as part of other noncurrent liabilities. The environmental liabilities will be paid over a period of up to 30 years. We estimate the exposure for environmental loss contingencies to range from $84 to a reasonably possible upper exposure of $98 as of 31 December 2014.

Actual costs to be incurred at identified sites in future periods may vary from the estimates, given inherent uncertainties in evaluating environmental exposures. Using reasonably possible alternative assumptions of the exposure level could result in an increase to the environmental accrual. Due to the inherent uncertainties related to environmental exposures, a significant increase to the reasonably possible upper exposure level could occur if a new site is designated, the scope of remediation is increased, a different remediation alternative is identified, or a significant increase in our proportionate share occurs. We do not expect that any sum we may have to pay in connection with environmental matters in excess of the amounts recorded or disclosed above would have a material adverse impact on our financial position or results of operations in any one year.

PACE

At 31 December 2014, $31.7 of the environmental accrual was related to the Pace facility.

In 2006, we sold our Amines business, which included operations at Pace, Florida and recognized a liability for retained environmental obligations associated with remediation activities at Pace. We are required by the Florida Department of Environmental Protection (FDEP) and the United States Environmental Protection Agency (USEPA) to continue our remediation efforts. We estimated that it would take 20 years to complete the groundwater remediation, and the costs through completion were estimated to range from $42 to $52. As no amount within the range was a better estimate than another, we recognized a pretax expense in fiscal 2006 of $42 as a component of income from discontinued operations and recorded an environmental accrual of $42 in continuing operations on the consolidated balance sheets. There has been no change to the estimated exposure range related to the Pace facility.

We have implemented many of the remedial corrective measures at the Pace facility required under 1995 Consent Orders issued by the FDEP and the USEPA. Contaminated soils have been bioremediated, and the treated soils have been secured in a lined on-site disposal cell. Several groundwater recovery systems have been installed to contain and remove contamination from groundwater. We completed an extensive assessment of the site to determine how well existing measures are working, what additional corrective measures may be needed, and whether newer remediation technologies that were not available in the 1990s might be suitable to more quickly and effectively remove groundwater contaminants. Based on assessment results, we completed a focused feasibility study that has identified alternative approaches that may more effectively remove contaminants. We continue to review alternative remedial approaches with the FDEP. In the first quarter of 2015, we entered into a new Consent Order with the FDEP requiring us to continue our remediation efforts at the Pace facility. We expect the costs we will incur under the new Consent Order to be consistent with our previous estimates.

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PIEDMONT

At 31 December 2014, $18.6 of the environmental accrual was related to the Piedmont site.

On 30 June 2008, we sold our Elkton, Maryland and Piedmont, South Carolina production facilities and the related North American atmospheric emulsions and global pressure sensitive adhesives businesses. In connection with the sale, we recognized a liability for retained environmental obligations associated with remediation activities at the Piedmont site. This site is under active remediation for contamination caused by an insolvent prior owner. We are required by the South Carolina Department of Health and Environmental Control to address both contaminated soil and groundwater. Numerous areas of soil contamination have been addressed, and contaminated groundwater is being recovered and treated. We estimate that it will take until 2017 to complete source area remediation and another 15 years thereafter to complete groundwater recovery, with costs through completion estimated to be $24. We recognized a pretax expense in 2008 of $24 as a component of income from discontinued operations and recorded an environmental liability of $24 in continuing operations on the consolidated balance sheets. There has been no change to the estimated exposure.

PASADENA

At 31 December 2014, $12.1 of the environmental accrual was related to the Pasadena site.

During the fourth quarter of 2012, management committed to permanently shutting down our polyurethane intermediates (PUI) production facility in Pasadena, Texas. In shutting down and dismantling the facility, we have undertaken certain obligations related to soil and groundwater contaminants. We have been pumping and treating groundwater to control off-site contaminant migration in compliance with regulatory requirements and under the approval of the Texas Commission on Environmental Quality (TCEQ). We estimate that the pump and treat system will continue to operate for 30 years subsequent to the shutdown of the PUI production facility. We plan to perform additional work to address other environmental obligations at the site. This additional work includes investigating solid waste management units, which are now accessible as a result of the shutdown, remediating as required impacted soils, performing post closure care for two closed RCRA surface impoundment units and establishing engineering controls. In 2012, we estimated the total exposure at this site to be $13. There has been no change to the estimated exposure.

12. SHARE-BASED COMPENSATION

We have various share-based compensation programs, which include deferred stock units, stock options, and restricted stock. Under all programs, the terms of the awards are fixed at the grant date. We issue shares from treasury stock upon the payout of deferred stock units, the exercise of stock options, and the issuance of restricted stock awards. As of 31 December 2014, there were 5,057,910 shares available for future grant under our Long-Term Incentive Plan, which is shareholder approved.

Share-based compensation cost recognized in the consolidated income statement is summarized below:

Three Months Ended 31 December	2014				2013
Before-Tax Share-Based Compensation Cost		$	11.9			$	11.8
Income Tax Benefit			(4.0	)			(4.3	)
After-Tax Share-Based Compensation Cost		$	7.9			$	7.5

Before-tax share-based compensation cost is primarily included in selling and administrative expense on our consolidated income statements. The amount of share-based compensation cost capitalized in 2015 and 2014 was not material.

Deferred Stock Units

During the three months ended 31 December 2014, we granted 116,111 market-based deferred stock units. The market-based deferred stock units vest as long as the employee continues to be employed by the Company and upon the achievement of the performance target. The performance target, which is approved by the Compensation Committee, is the Company’s relative total shareholder return in relation to a defined peer group over the three year performance period beginning 1 October 2014 and ending 30 September 2017.

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The market-based deferred stock units had an estimated grant-date fair value of $194.51 per unit. The grant-date fair value was estimated using a Monte Carlo simulation model as these equity awards were tied to a market condition. The model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the grant and calculates the fair value of the awards. We generally expense the grant-date fair value of these awards on a straight line basis over the vesting period. The calculation of the fair value of market-based deferred stock units used the following assumptions:

Expected volatility	19.6	%
Risk-free interest rate	.9	%
Expected dividend yield	2.5	%

In addition, during the three months ended 31 December 2014, we granted 126,504 time-based deferred stock units at a weighted-average grant-date fair value of $144.14.

Stock Options

During the three months ended 31 December 2014, we granted 175,829 stock options at a weighted-average exercise price of $144.09 and an estimated fair value of $37.19 per option. The fair value of these options was estimated using a Black-Scholes option valuation model that used the following assumptions:

Expected volatility	30.3	%
Expected dividend yield	2.6	%
Expected life (in years)	7.5
Risk-free interest rate	2.2	%

Restricted Stock

During the three months ended 31 December 2014, we issued 19,691 restricted shares at a weighted-average grant-date fair value of $144.09.

13. EQUITY

The following is a summary of the changes in total equity:

	Three Months Ended 31 December
	2014												2013
	Air Products				Non- controlling Interests				Total Equity				Air Products				Non- controlling Interests				Total Equity
Balance at 30 September		$	7,365.8			$	155.6			$	7,521.4			$	7,042.1			$	156.8			$	7,198.9
Net income (A)			324.6				7.5				332.1				290.2				7.6				297.8
Other comprehensive income (loss)			(228.7	)			(5.1	)			(233.8	)			53.7				(1.1	)			52.6
Dividends on common stock (per share $.77, $.71)			(165.4	)			—				(165.4	)			(150.3	)			—				(150.3	)
Dividends to noncontrolling interests			—				(6.2	)			(6.2	)			—				(4.6	)			(4.6	)
Share-based compensation			11.9				—				11.9				11.8				—				11.8
Issuance of treasury shares for stock option and award plans			30.1				—				30.1				13.2				—				13.2
Tax benefit of stock option and award plans			13.5				—				13.5				4.8				—				4.8
Purchase of noncontrolling interests			—				—				—				(.5	)			—				(.5	)
Other equity transactions			(.3	)			—				(.3	)			(1.0	)			—				(1.0	)
Balance at 31 December		$	7,351.5			$	151.8			$	7,503.3			$	7,264.0			$	158.7			$	7,422.7

^(A)  Net income attributable to noncontrolling interests excludes net income related to redeemable noncontrolling interests, which is not included in total equity. Refer to Note 15, Noncontrolling Interests, for additional information.

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14. ACCUMULATED OTHER COMPREHENSIVE LOSS

The table below summarizes changes in accumulated other comprehensive loss (AOCL), net of tax, attributable to Air Products for the three months ended 31 December 2014:

	Net loss on derivatives qualifying as hedges				Foreign currency translation adjustments				Pension and postretirement benefits				Total
Balance at 30 September 2014		$	(28.5	)		$	(268.7	)		$	(944.7	)		$	(1,241.9	)
Other comprehensive income (loss) before reclassifications			(23.8	)			(244.4	)			—				(268.2	)
Amounts reclassified from AOCL			13.5				—				20.9				34.4
Net current period other comprehensive income (loss)		$	(10.3	)		$	(244.4	)		$	20.9			$	(233.8	)
Amount attributable to noncontrolling interest			.1				(5.2	)			—				(5.1	)
Balance at 31 December 2014		$	(38.9	)		$	(507.9	)		$	(923.8	)		$	(1,470.6	)

The table below summarizes the reclassifications out of accumulated other comprehensive loss and the affected line item on the consolidated income statements:

	Three Months Ended 31 December
	2014				2013
(Gain) Loss on Cash Flow Hedges, net of tax
Sales/Cost of sales		$	(.6	)		$	.2
Other income (expense), net			14.1				(11.9	)
Interest expense			—				(.2	)
Total (Gain) Loss on Cash Flow Hedges, net of tax		$	13.5			$	(11.9	)
Pension and Postretirement Benefits, net of tax (A)		$	20.9			$	20.0

^(A)  The components include items such as prior service cost amortization, actuarial loss amortization, and settlements and are reflected in net periodic benefit cost. Refer to Note 10, Retirement Benefits.

15. NONCONTROLLING INTERESTS

INDURA S.A.

Redeemable Noncontrolling Interest

In 2012, we purchased a 64.8% controlling equity interest in the outstanding shares of Indura S.A. As part of the purchase agreement, the largest minority shareholder in Indura S.A. has the right to exercise a put option to require us to purchase up to a 30.5% equity interest during the two-year period beginning on 1 July 2015, at a redemption value equal to the greater of fair market value or the acquisition date value escalated by an inflation factor (the “floor value”). The put option is not accounted for separate from the minority interest shares that are subject to the put option. The redemption feature of the put option requires classification of the minority shareholder’s interest in the consolidated balance sheet outside of equity under the caption “Redeemable Noncontrolling Interest.”

Adjustments to the value of the redeemable noncontrolling interest due to the redemption feature are recognized as they occur. Currently, the floor value of the redemption feature is in excess of the fair value of the minority interest shares. Because the value of the redeemable noncontrolling interest cannot be less than the floor value, the attribution of net income between Air Products and the minority shareholders is adjusted so that the value of the redeemable noncontrolling interest is not less than the floor value.

20

The following is a summary of the changes in redeemable noncontrolling interest for the three months ended 31 December:

	2014				2013
Balance at 30 September		$	287.2			$	375.8
Net income			5.4				1.3
Dividends			—				(3.5	)
Currency translation adjustment			(3.9	)			(14.9	)
Balance at 31 December		$	288.7			$	358.7

As of 31 December 2014, we have a 67.3% controlling equity interest in Indura S.A.

16. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share (EPS):

	Three Months Ended 31 December
	2014			2013
Numerator
Income from continuing operations		$	324.6		$	287.1
Income from discontinued operations			—			3.1
Net Income Attributable to Air Products		$	324.6		$	290.2
Denominator (in millions)
Weighted average number of common shares – Basic			214.2			211.8
Effect of dilutive securities
Employee stock option and other award plans			2.4			2.5
Weighted average number of common shares – Diluted			216.6			214.3
Basic EPS Attributable to Air Products
Income from continuing operations		$	1.52		$	1.36
Income from discontinued operations			—			.01
Net Income Attributable to Air Products		$	1.52		$	1.37
Diluted EPS Attributable to Air Products
Income from continuing operations		$	1.50		$	1.34
Income from discontinued operations			—			.01
Net Income Attributable to Air Products		$	1.50		$	1.35

For the three months ended 31 December 2014 and 2013, outstanding share-based awards of .4 million and ..8 million shares were antidilutive and therefore excluded from the computation of diluted earnings per share.

17. SUPPLEMENTAL INFORMATION

As of 31 December 2014, we have classified a 3.875% Eurobond for €300 million ($363.1) maturing in March 2015 as long-term debt because we have the ability to refinance the debt on a long-term basis under our $2,595.0 committed credit facility maturing 30 April 2018. Our current intent is to refinance this debt via the U.S. or European public or private placement markets.

21

18. BUSINESS SEGMENT INFORMATION

The Company began operating under a new structure effective 1 October 2014. Our new reporting segments reflect the manner in which our chief operating decision maker reviews results and allocates resources. Except in the Corporate and other segment, each reporting segment meets the definition of an operating segment and does not include the aggregation of multiple operating segments. Our liquefied natural gas (LNG) and helium storage and distribution sale of equipment businesses are aggregated within the Corporate and other segment. The prior year information presented has been restated to conform with the fiscal year 2015 presentation.

The new reporting segments are:

— Industrial Gases – Americas

— Industrial Gases – EMEA (Europe, Middle East, and Africa)

— Industrial Gases – Asia

— Industrial Gases – Global

— Materials Technologies

— Energy-from-Waste

— Corporate and other

Industrial Gases – Regional

The regional Industrial Gases (Americas, EMEA, Asia) segments include the results of our regional industrial gas businesses, which produce and sell atmospheric gases such as oxygen, nitrogen, and argon (primarily recovered by the cryogenic distillation of air) and process gases such as hydrogen, carbon monoxide, helium, syngas, and specialty gases. We supply gases to customers in many industries, including those in metals, glass, chemical processing, energy production and refining, food processing, metallurgical industries, medical, and general manufacturing. We distribute gases to our customers through a variety of supply modes including liquid or gaseous bulk supply delivered by tanker or tube trailer and, for smaller customers, packaged gases delivered in cylinders and dewars or small on-sites (cryogenic or noncryogenic generators). For large-volume customers, we construct an on-site plant adjacent to or near the customer’s facility or deliver product from one of our pipelines. We are the world’s largest provider of hydrogen, which is used by refiners to facilitate the conversion of heavy crude feedstock and lower the sulfur content of gasoline and diesel fuels.

Electricity is the largest cost component in the production of atmospheric gases, and natural gas is the principal raw material for hydrogen, carbon monoxide, and syngas production. We mitigate energy and natural gas prices contractually through pricing formulas, surcharges, and cost pass-through arrangements. The regional Industrial Gases segments also include our share of the results of several joint ventures accounted for by the equity method. The largest of these joint ventures operate in Mexico, Italy, South Africa, India, Saudi Arabia, and Thailand. Each of the regional Industrial Gases segments competes against global industrial gas companies as well as regional competitors. Competition is based primarily on price, reliability of supply, and the development of industrial gas applications. We derive a competitive advantage in locations where we have pipeline networks, which enable us to provide reliable and economic supply of products to larger customers.

Industrial Gases – Global

The Industrial Gases – Global segment includes cryogenic and gas processing equipment sales for air separation. The equipment is sold worldwide to customers in a variety of industries, including chemical and petrochemical manufacturing, oil and gas recovery and processing, and steel and primary metals processing. The Industrial Gases – Global segment also includes centralized global costs associated with management of all the Industrial Gases segments. These costs include Industrial Gases global administrative costs, product development costs, and research and development costs. We compete with a large number of firms for all the offerings included in the Industrial Gases – Global segment. Competition in the equipment businesses is based primarily on technological performance, service, technical know-how, price, and performance guarantees.

Materials Technologies

The Materials Technologies segment includes applications technology to make products that provide solutions to a broad range of global industries through chemical synthesis, analytical technology, process engineering, and surface science. This segment provides specialty gases, specialty chemicals, services, and equipment to the electronics industry primarily for the manufacture of silicon and compound semiconductors as well as liquid crystal (LCD) and other displays. The Materials Technologies segment also provides performance chemical solutions for the coatings, inks, adhesives, civil engineering, personal care, institutional and industrial cleaning, mining, oil field, polyurethane, and other industries. We compete in the businesses included in the Materials Technologies segment on a product-by-product basis against companies ranging from niche suppliers with a single product to large, vertically integrated companies. Competition is principally conducted on the basis of product performance, price, quality, reliability of product supply, technical innovation, service, and global infrastructure.

22

Energy-from-Waste

The Energy-from-Waste segment consists of two projects that are under construction in Tees Valley, United Kingdom. Once operational, these projects will process waste materials and generate renewable power for customers under long-term contracts.

Corporate and other

The Corporate and other segment includes two on-going global businesses (our LNG sale of equipment business and our helium storage and distribution vessel sale of equipment business), the polyurethane intermediates business that was exited in early fiscal year 2014, and corporate support functions that benefit all the segments. Competition for the two sale of equipment businesses is based primarily on technological performance, service, technical know-how, price, and performance guarantees.

Business Segment

	Industrial Gases– Americas			Industrial Gases– EMEA			Industrial Gases– Asia			Industrial Gases– Global				Materials Technologies			Energy- from- Waste				Corporate and other				Total
Three Months Ended 31 December 2014
Sales		$	1,003.0		$	500.8		$	398.7		$	59.0			$	524.0		$	—			$	75.3			$	2,560.8
Operating income			211.2			81.3			90.5			(17.9	)			104.6			(2.5	)			(22.7	)			444.5
Depreciation and amortization			103.6			51.1			49.6			4.3				24.0			—				2.9				235.5
Equity affiliates’ income			17.2			10.3			14.6			.4				.6			—				—				43.1
Three Months Ended 31 December 2013
Sales		$	943.9		$	549.9		$	395.3		$	67.2			$	479.5		$	—			$	109.7			$	2,545.5
Operating income			184.5			85.2			82.7			(10.3	)			64.3			(2.9	)			(17.9	)			385.6
Depreciation and amortization			104.0			54.9			46.4			1.7				24.5			—				2.7				234.2
Equity affiliates’ income			17.6			9.7			9.6			.7				.6			—				—				38.2
Total Assets
31 December 2014		$	6,225.4		$	3,414.7		$	4,106.1		$	345.2			$	1,790.3		$	689.4			$	1,064.3			$	17,635.4
30 September 2014			6,240.7			3,521.0			4,045.6			389.4				1,835.7			591.9				1,154.8				17,779.1

The sales information noted above relates to external customers only. All intersegment sales are eliminated in consolidation. For the three months ended 31 December 2014 and 2013, the Industrial Gases – Global segment had intersegment sales of $59.6 and $41.3, respectively. These sales are generally transacted at market pricing. For all other segments, intersegment sales are not material for all periods presented. Equipment manufactured for our industrial gases segments are generally transferred at cost and not reflected as an intersegment sale.

Below is a reconciliation of segment total operating income to consolidated operating income:

	Three Months Ended 31 December
	2014				2013
Operating Income
Segment total		$	444.5			$	385.6
Business restructuring and cost reduction actions			(32.4	)			—
Gain on previously held equity interest			17.9				—
Consolidated Total		$	430.0			$	385.6

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

(Millions of dollars, except for share data)

The disclosures in this quarterly report are complementary to those made in our 2014 Form 10-K. An analysis of results for the first quarter of 2015 is provided in the Management’s Discussion and Analysis to follow.

All comparisons in the discussion are to the corresponding prior year unless otherwise stated. All amounts presented are in accordance with U.S. generally accepted accounting principles (GAAP), except as noted.

Captions such as income from continuing operations attributable to Air Products, net income attributable to Air Products from continuing operations and diluted earnings per share attributable to Air Products from continuing operations are simply referred to as “income from continuing operations,” “net income,” and “diluted earnings per share” throughout this Management’s Discussion and Analysis, unless otherwise stated.

The discussion of results that follows includes comparisons to non-GAAP financial measures. For 2015, the non-GAAP measures exclude: business reorganization and cost reduction charges and the gain on the previously held equity interest. Included in these non-GAAP measures is Adjusted EBITDA, which we believe to be a useful operational metric. The presentation of non-GAAP measures is intended to enhance the usefulness of financial information by providing measures that our management uses internally to evaluate our performance. The reconciliation of reported GAAP results to non-GAAP measures is presented on pages 31-32. Descriptions of the excluded items appear on page 26.

FIRST QUARTER 2015 VS. FIRST QUARTER 2014

FIRST QUARTER 2015 IN SUMMARY

— Sales of $2,560.8 increased 1%, or $15.3. Underlying sales were up 4%, primarily due to higher volumes in the Industrial Gases – Americas, Materials Technologies, and Industrial Gases – Asia segments and favorable pricing in Industrial Gases – Americas, partially offset by the exit from our Polyurethane Intermediates (PUI) business. Unfavorable currency impacts decreased sales by 3%.

— Operating income of $430.0 increased 12%, or $44.4, and operating margin of 16.8% increased 170 basis points (bp) primarily from higher volumes, favorable cost performance and higher pricing. On a non-GAAP basis, operating income of $444.5 increased 15%, or $58.9, and operating margin of 17.4% increased 230 bp.

— Adjusted EBITDA of $723.1, increased 10%, or $65.1, primarily due to higher volumes, favorable cost performance, and higher pricing. Adjusted EBITDA margin of 28.2% increased 240 bp.

— Net income of $324.6 increased 13%, or $37.5, and diluted earnings per share of $1.50 increased 12%, or $.16. On a non-GAAP basis, net income of $335.1 increased 17%, or $48.0, and diluted earnings per share of $1.55 increased 16%, or $.21. A summary table of changes in diluted earnings per share is presented below.

— The Company realigned its businesses in new reporting segments and began operating under the new structure effective 1 October 2014.

24

Changes in Diluted Earnings per Share Attributable to Air Products

	Three Months Ended 31 December							Increase (Decrease)
	2014				2013
Diluted Earnings per Share
Net Income		$	1.50			$	1.35		$	.15
Income from discontinued operations			—				.01			(.01	)
Income from Continuing Operations – GAAP Basis			1.50				1.34			.16
Business restructuring and cost reduction actions			.10				—			.10
Gain on previously held equity interest			(.05	)			—			(.05	)
Income from Continuing Operations – Non-GAAP Basis		$	1.55			$	1.34		$	.21
Operating Income (after-tax)
Underlying business
Volume									$	.14
Price/raw materials										.04
Costs										.08
Currency										(.05	)
Operating Income									$	.21
Other (after-tax)
Equity affiliates’ income									$	.02
Interest expense										.02
Noncontrolling interests										(.02	)
Average shares outstanding										(.02	)
Other									$	—
Total Change in Diluted Earnings per Share from Continuing Operations – Non-GAAP Basis									$	.21

RESULTS OF OPERATIONS

Discussion of Consolidated Results

	Three Months Ended 31 December
	2014				2013				$ Change			Change
Sales		$	2,560.8			$	2,545.5			$	15.3	1%
Operating income			430.0				385.6				44.4	12%
Operating margin			16.8	%			15.1	%				170bp
Equity affiliates’ income			43.1				38.2				4.9	13%
Non-GAAP Basis
Adjusted EBITDA		$	723.1			$	658.0			$	65.1	10%
Adjusted EBITDA margin			28.2	%			25.8	%				240bp
Operating income			444.5				385.6				58.9	15%
Operating margin			17.4	%			15.1	%				230bp

25

Sales

	% Change from Prior Year
Underlying business
Volume		3	%
Price		1	%
Currency		(3	)%
Total Consolidated Change		1	%

Underlying sales increased 4% from higher volumes of 3% and higher pricing of 1%. Volumes increased from growth in the Industrial Gases – Americas, Materials Technologies, and Industrial Gases – Asia segments, partially offset by the exit from our PUI business, which decreased sales by 1%. The favorable pricing was primarily in the Industrial Gases – Americas segment.

Operating Income

Operating income of $430.0 increased 12%, or $44.4, as higher volumes of $39, lower operating costs of $23, and favorable pricing net of energy and distribution costs of $11, were partially offset by unfavorable currency impacts of $14. The current year also included a charge of $32 for business restructuring and cost reduction actions and a gain of $18 on the previously held equity interest. On a non-GAAP basis, operating income of $444.5 increased 15%, or $58.9, and operating margin of 17.4% increased 230 bp.

Adjusted EBITDA

We define Adjusted EBITDA as income from continuing operations (including noncontrolling interests) excluding certain items previously discussed, which the Company does not believe to be indicative of ongoing business trends, plus interest expense, income tax provision, and depreciation and amortization expense. We believe Adjusted EBITDA is a useful operational metric.

Adjusted EBITDA of $723.1 increased 10%, or $65.1, primarily due to higher volumes, favorable cost performance, and higher pricing. Adjusted EBITDA margin of 28.2% increased 240 bp.

Equity Affiliates’ Income

Income from equity affiliates of $43.1 increased $4.9 primarily due to higher volumes and favorable cost performance in our Industrial Gases – Asia affiliates.

Selling and Administrative Expense

Selling and administrative expense of $258.2 decreased $22.7 primarily due to lower costs, including the benefits of our recent cost reduction actions, of $13 and favorable currency effects of $10. Selling and administrative expense, as a percent of sales, decreased from 11.0% to 10.1%.

Research and Development

Research and development expense of $35.4 increased $1.9. Research and development expense, as a percent of sales, was 1.4% and 1.3% in 2015 and 2014, respectively.

Business Restructuring and Cost Reduction Actions

On 18 September 2014, we announced plans to reorganize the Company, including realignment of our businesses in new reporting segments and other organizational changes, effective as of 1 October 2014. As a result of this reorganization, we will incur ongoing severance and other charges. In the first quarter of 2015, we recognized an expense of $32.4 ($21.7 after-tax, or $.10 per share) related to the elimination of approximately 450 positions. In the fourth quarter of 2014, we recognized expense of $12.7 ($8.2 after-tax, or $.04 per share) related to the elimination of approximately 50 positions. We expect these actions to provide approximately $50 in savings in fiscal year 2015. In fiscal year 2016 and beyond, we expect these actions to provide approximately $60 of annual savings. Refer to Note 4, Business Restructuring and Cost Reduction Actions, for additional details.

Gain on Previously Held Equity Interest

On 30 December 2014, we acquired our partner’s equity ownership interest in a liquefied industrial gases production joint venture in North America for $22.6 which increased our ownership from 50% to 100%. The transaction was accounted for as a business combination, and subsequent to the acquisition, the results are consolidated within our Industrial Gases – Americas segment. The assets acquired, primarily plant and equipment, were recorded at their fair market values as of the acquisition date.

The acquisition date fair value of the previously held equity interest was determined using a discounted cash flow analysis under the income approach. The three months ended 31 December 2014 include a gain of $17.9 ($11.2 after-tax, or $.05 per share) as a result of revaluing our previously held equity interest to fair value as of the acquisition date.

26

Other Income (Expense), Net

Other income (expense), net of $8.3 decreased $12.1 as the prior year included higher gains from the sale of assets, including emissions credits. Otherwise, no individual items were significant in comparison to the prior year.

Interest Expense

	Three Months Ended 31 December
	2014			2013
Interest incurred		$	40.2		$	40.8
Less: capitalized interest			11.1			7.5
Interest expense		$	29.1		$	33.3

Interest incurred decreased $.6. The decrease was driven primarily by the impact of a stronger U.S. dollar on the translation of foreign currency interest, partially offset by a higher average debt balance. The change in capitalized interest was driven by an increase in projects under construction.

Effective Tax Rate

The effective tax rate equals the income tax provision divided by income from continuing operations before taxes. The effective tax rate was 24.0% and 24.2% in the first quarter of 2015 and 2014, respectively. In the current year, the impacts of the business restructuring and cost reduction actions and the gain on our previously held equity interest decreased our effective tax rate by 10 bp. Refer to Note 4, Business Restructuring and Cost Reduction Actions, and Note 5, Business Combinations, for additional details regarding these items. On a non-GAAP basis, the effective tax rate was 24.1% and 24.2% in 2015 and 2014, respectively.

Discontinued Operations

In the first quarter of 2014, we sold the remaining portion of the Homecare business for £6.1 million ($9.8) and recorded a gain on sale of $2.4. Refer to Note 3, Discontinued Operations, for additional details.

Segment Analysis

Industrial Gases – Americas

	Three Months Ended 31 December
	2014				2013				$ Change				% Change
Sales		$	1,003.0			$	943.9			$	59.1			6	%
Operating income			211.2				184.5				26.7			14	%
Operating margin			21.1	%			19.5	%						160bp
Equity affiliates’ income			17.2				17.6				(.4	)		(2	)%
Adjusted EBITDA			332.0				306.1				25.9			8	%
Adjusted EBITDA margin			33.1	%			32.4	%						70bp

Industrial Gases – Americas Sales

	% Change from Prior Year
Underlying business
Volume		4	%
Price		3	%
Currency		(3	)%
Energy and raw material cost pass-through		2	%
Total Industrial Gases – Americas Sales Change		6	%

27

Underlying sales increased 7% from higher volumes of 4% and higher pricing of 3%. Volumes increased in North America from growth in liquid oxygen, nitrogen, and argon due to strong demand across our customer base. Additionally, hydrogen volumes were higher due to strong demand from refinery customers. In Latin America, volumes were flat due to continued economic weakness in the region. Pricing was higher due to general price increases and inflation recovery.

Currency decreased sales by 3% primarily due to the impacts of the Chilean Peso and Canadian Dollar. Higher energy contractual cost pass-through to customers increased sales by 2%.

Industrial Gases – Americas Operating Income and Margin

Operating income increased 14%, or $26.7, due to higher pricing net of energy and distribution costs of $17 and higher volumes of $12, partially offset by unfavorable currency impacts of $3. Operating margin increased 160 bp from the prior year due to the higher volumes and pricing.

Industrial Gases – Americas Equity Affiliates’ Income

Equity affiliates’ income of $17.2 decreased $.4.

Industrial Gases – EMEA

	Three Months Ended 31 December
	2014				2013				$ Change				% Change
Sales		$	500.8			$	549.9			$	(49.1	)		(9	)%
Operating income			81.3				85.2				(3.9	)		(5	)%
Operating margin			16.2	%			15.5	%						70bp
Equity affiliates’ income			10.3				9.7				.6			6	%
Adjusted EBITDA			142.7				149.8				(7.1	)		(5	)%
Adjusted EBITDA margin			28.5	%			27.2	%						130bp

Industrial Gases – EMEA Sales

	% Change from Prior Year
Underlying business
Volume		—	%
Price		—	%
Currency		(7	)%
Energy and raw material cost pass-through		(2	)%
Total Industrial Gases – EMEA Sales Change		(9	)%

Underlying sales were flat as higher liquid/bulk volumes were offset by lower cylinder volumes due to weakness in the metal fabrication and construction markets. Unfavorable currency effects from the Euro, the British Pound Sterling, and the Polish Zloty reduced sales by 7%. Lower energy contractual cost pass-through to customers decreased sales by 2%.

Industrial Gases – EMEA Operating Income and Margin

Operating income decreased by 5%, or $3.9, primarily due to unfavorable currency impacts. Operating margin increased 70 bp from the prior year.

Industrial Gases – EMEA Equity Affiliates’ Income

Equity affiliates’ income of $10.3 increased $.6.

28

Industrial Gases – Asia

	Three Months Ended 31 December
	2014				2013				$ Change			% Change
Sales		$	398.7			$	395.3			$	3.4		1	%
Operating income			90.5				82.7				7.8		9	%
Operating margin			22.7	%			20.9	%					180bp
Equity affiliates’ income			14.6				9.6				5.0		52	%
Adjusted EBITDA			154.7				138.7				16.0		12	%
Adjusted EBITDA margin			38.8	%			35.1	%					370bp

Industrial Gases – Asia Sales

	% Change from Prior Year
Underlying business
Volume		6	%
Price		(1	)%
Currency		(2	)%
Energy and raw material cost pass-through		(2	)%
Total Industrial Gases – Asia Sales Change		1	%

Underlying sales increased by 5% from higher volumes of 6%, partially offset by lower pricing of 1%. Volumes were higher primarily from new plants, and in particular, a large on-site project in China. Pricing was slightly lower due to continued pricing pressure on liquid products in China. Unfavorable currency impacts decreased sales by 2%. Lower energy contractual cost-pass through to customers decreased sales by 2%.

Industrial Gases – Asia Operating Income and Margin

Operating income increased 9%, or $7.8, primarily due to higher volumes of $11 and lower operating costs of $6, partially offset by lower pricing net of power and distribution costs of $8. Operating margin increased 180 bp from the prior year primarily due to the higher volumes and favorable cost performance, partially offset by lower pricing.

Industrial Gases – Asia Equity Affiliates’ Income

Equity affiliates’ income of $14.6 increased $5.0 primarily due to higher volumes and favorable cost performance.

Industrial Gases – Global

	Three Months Ended 31 December
	2014				2013				$ Change				% Change
Sales		$	59.0			$	67.2			$	(8.2	)		(12	)%
Operating loss			(17.9	)			(10.3	)			(7.6	)		(74	)%

Industrial Gases – Global Sales and Operating Loss

Sales of $59.0 decreased $8.2, or 12%, primarily due to lower project activity. Operating loss of $17.9 increased by $7.6 due to lower inventory costs in the prior year and the lower project activity.

29

Materials Technologies

	Three Months Ended 31 December
	2014				2013				$ Change			% Change
Sales		$	524.0			$	479.5			$	44.5		9	%
Operating income			104.6				64.3				40.3		63	%
Operating margin			20.0	%			13.4	%					660bp
Adjusted EBITDA			129.2				89.4				39.8		45	%
Adjusted EBITDA margin			24.7	%			18.6	%					610bp

Materials Technologies Sales

	% Change from Prior Year
Underlying business
Volume		11	%
Price		—	%
Currency		(2	)%
Total Materials Technologies Sales Change		9	%

Sales increased by 9% as higher volumes of 11% were partially offset by unfavorable currency impacts of 2%. Electronics Materials sales increased 13% from growth across all product lines. Performance Materials sales increased 6% from higher volumes across all product lines and major regions due to higher demand and new product introductions. Currency was unfavorable primarily due to the Euro.

Materials Technologies Operating Income and Margin

Operating income of $104.6 increased 63%, or $40.3, primarily from higher volumes of $21 and lower costs of $20. The lower costs include higher inventory costs in the prior year and the benefits of our recent business restructuring and cost reduction actions. Operating margin increased 660 bp primarily from the higher volumes and improved cost performance.

Energy-from-Waste

	Three Months Ended 31 December
	2014				2013				$ Change			% Change
Operating loss		$	(2.5	)		$	(2.9	)		$	.4		14	%
Adjusted EBITDA			(2.5	)			(2.9	)			.4		14	%

The Energy-from-Waste segment consists of two projects that are under construction in Tees Valley, United Kingdom. Once operational, these projects will process waste materials and generate renewable power for customers under long-term contracts. Costs incurred prior to project completion include a land lease and commercial management.

Corporate and other

	Three Months Ended 31 December
	2014				2013				$ Change				% Change
Sales		$	75.3			$	109.7			$	(34.4	)		(31	)%
Operating loss			(22.7	)			(17.9	)			(4.8	)		(27	)%
Adjusted EBITDA			(19.8	)			(15.2	)			(4.6	)		(30	)%

Corporate and other Sales and Operating Loss

Sales of $75.3 and operating loss of $22.7 were unfavorable versus the prior year due to the exit from our PUI business, which was completed in the first quarter of fiscal year 2014. Higher liquefied natural gas (LNG) project activity was offset by lower helium container sales. In the prior year, the PUI business contributed $13 of operating income.

30

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

The discussion of first quarter results includes comparisons to non-GAAP financial measures, including Adjusted EBITDA. The presentation of non-GAAP measures is intended to enhance the usefulness of financial information by providing measures which our management uses internally to evaluate our operating performance. Definitions of non-GAAP measures may not be comparable to similar definitions used by other companies and are not a substitute for similar GAAP measures. Presented below are reconciliations of the reported GAAP results to the non-GAAP measures.

CONSOLIDATED RESULTS

	Continuing Operations
	Operating Income				Operating Margin (A)			Income				Diluted EPS
2015 GAAP		$	430.0			16.8	%		$	324.6			$	1.50
2014 GAAP			385.6			15.1	%			287.1				1.34
Change GAAP		$	44.4			170bp			$	37.5			$	.16
% Change GAAP			12	%						13	%			12	%
2015 GAAP		$	430.0			16.8	%		$	324.6			$	1.50
Business restructuring and cost reduction actions (tax impact $10.7)			32.4			1.3	%			21.7				.10
Gain on previously held equity interest (tax impact $6.7)			(17.9	)		(.7	)%			(11.2	)			(.05	)
2015 Non-GAAP Measure		$	444.5			17.4	%		$	335.1			$	1.55
2014 GAAP		$	385.6			15.1	%		$	287.1			$	1.34
2014 Non-GAAP Measure		$	385.6			15.1	%		$	287.1			$	1.34
Change Non-GAAP Measure		$	58.9			230bp			$	48.0			$	.21
% Change Non-GAAP Measure			15	%						17	%			16	%

^(A)  Operating margin is calculated by dividing operating income by sales.

ADJUSTED EBITDA

We define Adjusted EBITDA as income from continuing operations (including noncontrolling interests) excluding certain items previously discussed, which the Company does not believe to be indicative of ongoing business trends, plus interest expense, income tax provision, and depreciation and amortization expense. We believe Adjusted EBITDA is a useful operational metric.

Below is a reconciliation from Income from Continuing Operations to Adjusted EBITDA:

	Three Months Ended 31 December
	2014				2013
Income from Continuing Operations (A)		$	337.5			$	296.0
Add: Interest expense			29.1				33.3
Add: Income tax provision			106.5				94.5
Add: Depreciation and amortization			235.5				234.2
Add: Business restructuring and cost reduction actions			32.4				—
Less: Gain on previously held equity interest			17.9				—
Adjusted EBITDA		$	723.1			$	658.0
Change from prior year			65.1
% Change from prior year			10	%

^(A)  Includes net income attributable to noncontrolling interests.

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Below is a reconciliation from segment Operating Income to Adjusted EBITDA:

	Industrial Gases– Americas				Industrial Gases– EMEA				Industrial Gases– Asia				Industrial Gases– Global				Materials Technologies				Energy- from- Waste				Corporate and other				Total
Three Months Ended 31 December 2014
Operating Income		$	211.2			$	81.3			$	90.5			$	(17.9	)		$	104.6			$	(2.5	)		$	(22.7	)		$	444.5
Add: Depreciation and amortization			103.6				51.1				49.6				4.3				24.0				—				2.9				235.5
Add: Equity affiliates’ income			17.2				10.3				14.6				.4				.6				—				—				43.1
Adjusted EBITDA		$	332.0			$	142.7			$	154.7			$	(13.2	)		$	129.2			$	(2.5	)		$	(19.8	)		$	723.1
Adjusted EBITDA margin			33.1	%			28.5	%			38.8	%							24.7	%											28.2	%
Three Months Ended 31 December 2013
Operating Income		$	184.5			$	85.2			$	82.7			$	(10.3	)		$	64.3			$	(2.9	)		$	(17.9	)		$	385.6
Add: Depreciation and amortization			104.0				54.9				46.4				1.7				24.5				—				2.7				234.2
Add: Equity affiliates’ income			17.6				9.7				9.6				.7				.6				—				—				38.2
Adjusted EBITDA		$	306.1			$	149.8			$	138.7			$	(7.9	)		$	89.4			$	(2.9	)		$	(15.2	)		$	658.0
Adjusted EBITDA margin			32.4	%			27.2	%			35.1	%							18.6	%											25.8	%
Adjusted EBITDA change		$	25.9			$	(7.1	)		$	16.0			$	(5.3	)		$	39.8			$	.4			$	(4.6	)		$	65.1
Adjusted EBITDA % change			8	%			(5	)%			12	%			(67	)%			45	%			14	%			(30	)%			10	%
Adjusted EBITDA margin change			70bp				130bp				370bp								610bp												240bp

INCOME TAXES

	Effective Tax Rate
	2015				2014
Income Tax Provision — GAAP		$	106.5			$	94.5
Income from continuing operations before taxes — GAAP		$	444.0			$	390.5
Effective Tax Rate — GAAP			24.0	%			24.2	%
Income Tax Provision — GAAP		$	106.5			$	94.5
Business restructuring and cost reduction actions			10.7				—
Gain on previously held equity interest			(6.7	)			—
Income Tax Provision — Non-GAAP Measure		$	110.5			$	94.5
Income from continuing operations before taxes — GAAP		$	444.0			$	390.5
Business restructuring and cost reduction actions			32.4				—
Gain on previously held equity interest			(17.9	)			—
Income from continuing operations before taxes — Non-GAAP Measure		$	458.5			$	390.5
Effective Tax Rate — Non-GAAP Measure			24.1	%			24.2	%

PENSION BENEFITS

For the three months ended 31 December 2014, required cash contributions to funded pension plans and benefit payments under unfunded pension plans were $76.4. For the three months ended 31 December 2013, cash contributions were $31.4. Total contributions for fiscal 2015 are expected to be approximately $130 to $150. During fiscal 2014, total contributions were $78.2.

Our U.S. supplemental pension plan provides for a lump sum benefit payment option at the time of retirement, or for corporate officers, six months after the retirement date. Pension settlements are recognized when cash payments exceed the sum of the service and interest cost components of net periodic pension cost of the plan for the fiscal year. We expect to record pension settlement losses of approximately $20 to $25 in the second quarter of 2015. We also anticipate additional pension settlement losses in the second half of fiscal year 2015.

Refer to Note 10, Retirement Benefits, to the consolidated financial statements for details on pension cost and cash contributions.

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LIQUIDITY AND CAPITAL RESOURCES

We have maintained a strong financial position through the first three months of 2015. We continue to have consistent access to commercial paper markets and cash flows from operations and financing activities are expected to meet liquidity needs for the foreseeable future.

As of 31 December 2014, we had $229.4 of foreign cash and cash items compared to total cash and cash items of $238.8. If the foreign cash and cash items are needed for operations in the U.S. or we otherwise elect to repatriate the funds, we may be required to accrue and pay U.S. taxes on a significant portion of these amounts. However, since we have significant current investment plans outside the U.S., it is our intent to permanently reinvest the majority of our foreign cash and cash items outside the U.S. Current financing alternatives do not require the repatriation of foreign funds.

The narrative below refers to the consolidated statements of cash flows included on page 6.

Operating Activities

For the first three months of 2015, cash provided by operating activities was $486.6. Income from continuing operations of $324.6 reflected the non-cash gain on the previously held equity interest of $17.9 and undistributed earnings of unconsolidated affiliates of $31.3. Income from continuing operations is adjusted for reconciling items that include depreciation and amortization, deferred income taxes, share-based compensation, and noncurrent capital lease receivables. Other adjustments included pension and postretirement expense of $27.3 and contributions to our pension plans of $76.4, primarily for plans in the U.S. and U.K. Management considers various factors when making pension funding decisions, including tax, cash flow, and regulatory implications. The working capital accounts were a source of cash of $6.2.

For the first three months of 2014, cash provided by operating activities was $546.2, primarily driven by income from continuing operations of $287.1. The working capital accounts were a use of cash of $24.1, including an increase in trade receivables of $17.7 and a decrease in accounts payable and accrued liabilities of $65.2 which included payments related to the business restructuring and cost reduction plans of $4.9. We contributed $31.4 to our pension plans, primarily for plans in the U.K.

Investing Activities

For the first three months of 2015, cash used for investing activities was $463.2, primarily driven by capital expenditures for plant and equipment of $446.5. On 30 December 2014, we acquired our partner’s equity ownership interest in a liquefied industrial gases production joint venture in North America which increased our ownership from 50% to 100%. Refer to Note 5, Business Combinations, to the consolidated financial statements for additional information.

For the first three months of 2014, cash used for investing activities was $385.6, primarily driven by capital expenditures for plant and equipment of $391.1.

Capital expenditures are detailed in the table below:

	Three Months Ended 31 December
	2014			2013
Additions to plant and equipment		$	446.5		$	391.1
Acquisitions, less cash acquired			22.6			—
Capital expenditures on a GAAP basis		$	469.1		$	391.1
Capital lease expenditures (A)			31.9			48.1
Purchase of noncontrolling interests (A)			—			.5
Capital expenditures on a Non-GAAP basis		$	501.0		$	439.7

^(A)  We utilize a non-GAAP measure in the computation of capital expenditures and include spending associated with facilities accounted for as capital leases and purchases of noncontrolling interests. Certain contracts associated with facilities that are built to provide product to a specific customer are required to be accounted for as leases, and such spending is reflected as a use of cash within cash provided by operating activities, if the arrangement qualifies as a capital lease. Additionally, the payment for subsidiary shares from noncontrolling interests in a subsidiary is accounted for as an equity transaction and is reflected as a financing activity in the statement of cash flows. The presentation of this non-GAAP measure is intended to enhance the usefulness of information by providing a measure that our management uses internally to evaluate and manage our expenditures.

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The sales backlog for the Company at 31 December 2014 was $519, compared to $520 at 30 September 2014. The sales backlog represents our estimate of revenue to be recognized in the future on sale of equipment orders and related process technology that are under firm contracts.

Financing Activities

For the first three months of 2015, cash used for financing activities was $111.9. The primary use of cash was to pay dividends of $164.4. Proceeds from stock option exercises were $42.1 and our borrowings (short- and long-term proceeds, net of repayments) were a net source of cash of $16.4.

For the first three months of 2014, cash used for financing activities was $238.2. The primary use of cash was to pay dividends of $149.9. Additionally, our borrowings (short- and long-term proceeds, net of repayments) were a net use of cash of $93.5, driven primarily by the repayment of a 3.75% Eurobond of €300 million ($401.0) in November 2013, partially offset by an increase in commercial paper and short-term borrowings of $339.1.

Discontinued Operations

For the first three months of 2015, there were no discontinued operations.

For the first three months of 2014, cash provided by discontinued operations was $10.5. The sale of the remaining Homecare business, which was primarily in the United Kingdom and Ireland, generated proceeds of £6.1 million ($9.8) and a $2.4 gain which are included in discontinued operations in the consolidated statements of cash flows. Refer to Note 3, Discontinued Operations, to the consolidated financial statements for additional information.

Financing and Capital Structure

Capital needs were satisfied primarily with cash from operations. Total debt at 31 December 2014 and 30 September 2014, expressed as a percentage of the sum of total debt and total capitalization (total debt plus total equity plus redeemable noncontrolling interest), was constant at 43.9%. Total debt decreased from $6,118.5 at 30 September 2014 to $6,089.0 at 31 December 2014.

During fiscal 2013, we entered into a five-year $2,500.0 revolving credit agreement maturing 30 April 2018 with a syndicate of banks (the “2013 Credit Agreement”), under which senior unsecured debt is available to both the Company and certain of its subsidiaries. Effective 30 June 2014, the 2013 Credit Agreement was amended to increase the facility to $2,595.0. The 2013 Credit Agreement provides a source of liquidity for the Company and supports its commercial paper program. The Company’s only financial covenant is a maximum ratio of total debt to total capitalization (total debt plus total equity plus redeemable noncontrolling interest) no greater than 70%. No borrowings were outstanding under the 2013 Credit Agreement as of 31 December 2014.

Commitments totaling $176.0 are maintained by our foreign subsidiaries, of which $176.0 was borrowed and outstanding at 31 December 2014.

As of 31 December 2014, we are in compliance with all of the financial and other covenants under our debt agreements.

As of 31 December 2014, we classified our 3.875% Eurobond of €300 million ($363.1) maturing in March 2015 as long-term debt because we have the ability to refinance the debt under the 2013 Credit Agreement. Our current intent is to refinance this debt via the U.S. or European public or private placement markets.

On 15 September 2011, the Board of Directors authorized the repurchase of up to $1,000 of our outstanding common stock. During the first three months of fiscal year 2015, we did not purchase any of our outstanding shares. At 31 December 2014, $485.3 in share repurchase authorization remains.

CONTRACTUAL OBLIGATIONS

We are obligated to make future payments under various contracts such as debt agreements, lease agreements, unconditional purchase obligations, and other long-term obligations. There have been no material changes to contractual obligations since 30 September 2014.

COMMITMENTS AND CONTINGENCIES

There have been no material changes to commitments and contingencies since 30 September 2014. For current updates on Litigation and Environmental matters, refer to Note 11, Commitments and Contingencies, in this quarterly filing.

OFF-BALANCE SHEET ARRANGEMENTS

There have been no material changes to off-balance sheet arrangements since 30 September 2014. We are not a primary beneficiary in any material variable interest entity. Our off-balance sheet arrangements are not reasonably likely to have a material impact on financial condition, changes in financial condition, and results of operations or liquidity.

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RELATED PARTY TRANSACTIONS

Our principal related parties are equity affiliates operating in the industrial gas business. We did not engage in any material transactions involving related parties that included terms or other aspects that differ from those which would be negotiated at arm’s length with clearly independent parties.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management’s Discussion and Analysis of our financial condition and results of operations is based on the consolidated financial statements and accompanying notes that have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Information concerning our implementation and impact of new accounting standards issued by the FASB is included in Note 2, New Accounting Guidance, to the consolidated financial statements. There have been no changes in accounting policy in the current period that had a significant impact on our financial condition, change in financial condition, liquidity, or results of operations.

NEW ACCOUNTING GUIDANCE

See Note 2, New Accounting Guidance, to the consolidated financial statements for information concerning our implementation and impact of new accounting guidance.

FORWARD-LOOKING STATEMENTS

This report contains “forward-looking statements” within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about earnings guidance and business outlook. These forward-looking statements are based on management’s reasonable expectations and assumptions as of the date this report is filed. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including, without limitation, weakening or reversal of global or regional economic recovery; significant fluctuations in interest rates and foreign currencies from that currently anticipated; future financial and operating performance of major customers; unanticipated contract terminations or customer cancellations or postponement of projects and sales; the impact of competitive products and pricing; unexpected changes in raw material supply and markets; the impact of price fluctuations in natural gas and disruptions in markets and the economy due to oil price volatility; unanticipated asset impairments or losses; the ability to recover increased energy and raw material costs from customers; costs and outcomes of litigation or regulatory investigations; the impact of management and organizational changes, including pension settlement and other associated costs; the success of productivity programs; the timing, impact, and other uncertainties of future acquisitions or divestitures; political risks, including the risks of unanticipated government actions that may result in project delays, cancellations or expropriations; the impact of changes in environmental, tax or other legislation and regulatory activities in jurisdictions in which the Company and its affiliates operate; the impact on the effective tax rate of changes in the mix of earnings among our U.S. and international operations; and other risk factors described in the Company’s Form 10-K for its fiscal year ended September 30, 2014. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this report to reflect any change in the Company’s assumptions, beliefs or expectations or any change in events, conditions, or circumstances upon which any such forward-looking statements are based.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information on our utilization of financial instruments and an analysis of the sensitivity of these instruments to selected changes in market rates and prices is included in our 2014 Form 10-K.

The net financial instrument position decreased from a liability of $5,044.9 at 30 September 2014 to a liability of $4,980.2 at 31 December 2014. The decrease was due primarily to a stronger U.S. dollar which reduced the translated value of foreign currency debt.

There were no material changes to the sensitivity analysis related to the fixed portion of our debt portfolio since 30 September 2014.

There were no material changes to the sensitivity analysis related to the variable portion of our debt portfolio since 30 September 2014.

The sensitivity analysis related to foreign currency exchange rates assumes an instantaneous 10% change in the foreign currency exchange rates from their levels at 31 December 2014, with all other variables held constant. A 10% strengthening or weakening of the functional currency of an entity versus all other currencies would result in a decrease or increase in the net liability position of financial instruments of $466 at 31 December 2014 versus $419 at 30 September 2014, respectively. The change in the sensitivity analysis includes a higher notional amount of cross currency interest rate swaps primarily to hedge intercompany loans as of 31 December 2014.

Item 4. Controls and Procedures

We maintain a comprehensive set of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). As of 31 December 2014 (the Evaluation Date), an evaluation of the effectiveness of our disclosure controls and procedures was carried out under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report these disclosure controls and procedures were effective.

During the quarter ended on the Evaluation Date, there was no change in internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. The Company began operating under a new structure effective 1 October 2014. As a result of the new organizational structure, there have been changes in the individuals responsible for executing the controls; however, we continue to execute our business processes under the same controls.

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Item 6. Exhibits.

Exhibits required by Item 601 of Regulation S-K

10.1	Form of Award Agreement under the Long-Term Incentive Plan of the Company, used for FY2015 awards.
12.	Computation of Ratios of Earnings to Fixed Charges.
31.1.	Certification by the Principal Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2.	Certification by the Principal Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.	Certification by the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. †
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase

† The certification attached as Exhibit 32 that accompanies this Quarterly Report on Form 10-Q, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Air Products and Chemicals, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-Q, irrespective of any general incorporation language contained in such filing.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Air Products and Chemicals, Inc.
	(Registrant)
Date: 30 January 2015	By:	/s/ M. Scott Crocco
		M. Scott Crocco
		Senior Vice President and Chief Financial Officer

38

EXHIBIT INDEX

10.1	Form of Award Agreement under the Long-Term Incentive Plan of the Company, used for FY2015 awards.
12.	Computation of Ratios of Earnings to Fixed Charges.
31.1.	Certification by the Principal Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2.	Certification by the Principal Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.	Certification by the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. †
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase

† The certification attached as Exhibit 32 that accompanies this Quarterly Report on Form 10-Q, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Air Products and Chemicals, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-Q, irrespective of any general incorporation language contained in such filing.

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EX-10.1

Exhibit 10.1

IMPORTANT - ACTION REQUIRED: In order for your FY15 stock awards to become effective, you must use the voting button at the top of this email, click on “I agree to the award terms & conditions” and reply by 28 February 2015. Failure to respond by this date will result in forfeiture of your award.

Company Confidential Communication to: «First_name»«Last_name»

Please see the attached message from Seifi.

You have been granted awards under the Air Products Long-Term Incentive Plan (the “Plan”). Your FY2015 awards are valued at $                     and include:

•                      Deferred Stock Units with a three year performance period valued at $                    , each Unit (a “Performance Share”) being equivalent in value to one share of Common Stock; and

• An award of                      4-Year Restricted Shares of Company Common Stock issued to you as of 1 December 2014 valued at $                    ; and

• A Nonstatutory Stock Option to purchase                      shares of Common Stock at a purchase price of $144.09 per share, which is the 1 December 2014 closing sale price of a share of Common Stock, valued at $                    .

Your FY2015 Awards are subject to and contingent upon your agreement to the conditions described in the attached Exhibit. Please read these conditions carefully, particularly the descriptions of “Prohibited Activities”. This letter, together with its Exhibit, constitutes the agreement governing your FY2015 Awards (“Awards Agreement”). Your FY2015 Awards are also at all times subject to the applicable provisions of the Long-Term Incentive Plan and to any determinations made by the Management Development and Compensation Committee of the Company’s Board of Directors (the “Committee”) or its delegate, with respect to your FY2015 Awards as contemplated or permitted by the Plan or the Conditions.

The Committee has established a one-year holding period for a portion of your Stock Options as further explained in Section 7 of the Exhibit.

Neither your FY2015 Awards, this Award Agreement or the Plan constitute a contract of employment; nor do they guarantee your continued employment for any period required for all or any of your FY2015 Awards to vest, become exercisable, be earned or be paid out. Except as otherwise indicated all capitalized words used in this Awards Agreement have the meanings described in the Plan.

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WITNESSETH the due execution of this Awards Agreement at Allentown, Pennsylvania effective as of the 1^st day of December 2014 intending to be legally bound hereby.

AIR PRODUCTS AND CHEMICALS, INC.
By:
	Seifi Ghasemi

Exhibit

2

EXHIBIT

AIR PRODUCTS AND CHEMICALS, INC. (the “Company”)

LONG-TERM INCENTIVE PLAN

FY2015 AWARD AGREEMENT

1. As described in the foregoing grant letter, you are hereby granted FY2015 Awards consisting of Stock Options (“Options”), Restricted Shares of Company Common Stock (“Restricted Shares”), and Deferred Stock Units to be called “Performance Shares” under the Air Products and Chemicals, Inc. Long-Term Incentive Plan (the “Plan”). The Options are “Nonstatutory Stock Options” as described in Section 6 of the Plan. The Restricted Shares are described in Section 8 of the Plan. The Deferred Stock Units are described in Section 9 of the Plan. The Management Development and Compensation Committee of the Company’s Board of Directors (the “Committee”) has approved these Awards subject to the applicable provisions of the Plan and the terms of this Agreement, and contingent upon your acceptance of this Agreement. Except as noted herein, all capitalized terms used in this Agreement (including the Attachment) have the meaning ascribed to them in the Plan. A copy of the Plan is available from the Corporate Secretary’s Office of the Company, 7201 Hamilton Boulevard, Allentown, PA 18195-1501.

2. Each Option entitles you to purchase one share of Company Common Stock (“Share”) at a purchase price of $                     (the “Grant Price”) as described below. You can first purchase Shares as follows: (i) up to one-third of the Shares may be purchased on or after 1 December 2015 and (ii) up to an additional one-third of such Shares may be purchased on or after 1 December 2016 and 2017, respectively. The Options are granted as of 1 December 2014 and will continue for a period of ten (10) years from such grant date and will expire and no longer be exercisable after the close of the New York Stock Exchange on 1 December 2024. Any Option which is unexercised as of the close of the New York Stock Exchange on 1 December 2024 and which has not terminated in accordance with Paragraph 4 of this Agreement, will be settled by a Net Exercise whereby the Company will issue you shares of Common Stock equal to the number of shares covered by the Option, reduced by the number of whole shares that has a Fair Market Value equal to or in excess of the sum of the aggregate Grant Price of the Options and the minimum statutory withholding tax obligation arising from the Net Exercise of the Options, and shall remit any excess of the Fair Market Value of such shares to you.

3

3. You may purchase Shares covered by an Option by providing to the Company’s agent, Fidelity Stock Plan Services, LLC or any successor thereto (“Fidelity”), notice of exercise of the Option in a form designated by Fidelity and the Grant Price of the Shares. Payment of the Grant Price and applicable taxes may be made in cash or by providing an irrevocable exercise notice coupled with irrevocable instructions to Fidelity to simultaneously sell all or portion of the Shares and deliver to the Company on the settlement date the portion of the proceeds representing the Grant Price and any taxes to be withheld. Payment of the Grant Price may also be made by delivery or attestation of ownership of other Shares of Common Stock owned by you with a Fair Market Value equal to the Grant Price, in which case the number of Shares acquired in the exercise will be reduced by an amount equal in value to the amount of any taxes required to be withheld and by the number of Shares as to which ownership was attested.

4. Except as provided below, your Options terminate as of the close of business on the last day of your employment with the Company and all its Subsidiaries. Upon your, death, Disability, or Retirement on or after 1 December 2015, your Options will not terminate and any unexercisable portion of the Options will be extended until its expiration (that is, will become and be exercisable) as if you have continued to be an active employee of the Company or a Subsidiary. If your employment with the Company and all its Subsidiaries is involuntarily terminated by the Company on or after 1 December 2015 other than for Cause (“Involuntary Termination”), and you are not eligible for Retirement, your exercisable Options will not be immediately terminated but will continue to be exercisable in accordance with their terms for six months following your last day of employment with the Company or a Subsidiary, and shall terminate at the end of such six month period. If you voluntarily terminate your employment with the Company and all its Subsidiaries on or after 1 December 2015, other than a Retirement, your exercisable Options will not be immediately terminated but will continue to be exercisable in accordance with their terms for ninety days following your last day of employment with the Company or a Subsidiary, and shall terminate at the end of such ninety day period.

5. In the event of any change in the outstanding shares of the Common Stock of the Company or the occurrence of certain other events described in Section 12 of the Plan, an equitable adjustment shall be made in the number or kind of Shares or the Grant Price for Shares covered by your Options.

4

6. Options are nonassignable and nontransferable except to your Designated Beneficiary or by gift to family members or to trusts of which only family members are beneficiaries. Such transfers by gift can be made only after the Option has become exercisable and subject to such administrative procedures and to such restrictions and conditions as the officers of the Company shall determine to be consistent with the purposes of the Plan and the interests of the Company and/or to be necessary or appropriate for compliance with all applicable tax and other legal requirements. Subject to the foregoing, you may transfer Options by gift only by delivering to the Company at its principal offices in Allentown, Pennsylvania, written notice of the intent to transfer the Options on forms to be provided by the Company.

7. In accepting the Options, you agree that, as long as you are actively employed by the Company or one of its Subsidiaries and are an Executive Officer, you will retain, for at least one year, beneficial ownership of 50% of the net Shares (after payment of the exercise price, taxes, and commissions) that you receive upon an exercise of the Option.

8. The Restricted Shares shall be issued to you as of 1 December 2014. Upon issuance of the Restricted Shares, you will be the holder of record of such shares and shall have all the rights of a shareholder with respect to the Restricted Shares, including the right to vote such Restricted Shares and receive all dividends or other distributions paid with respect to the Restricted Shares, subject to the restrictions contained in Paragraph 9 below. In the event of any change in the outstanding shares of Common Stock of the Company or the occurrence of certain other events described in Section 12 of the Plan, an equitable adjustment of the number of Restricted Shares covered by this Agreement shall be made consistent with the impact of such change or event upon the rights of the Company’s other shareholders, and any additional Shares of Common Stock issued to you as a result of such adjustment shall be Restricted Shares subject to this Agreement, including, without limitation, the restrictions contained in Paragraph 9.

9. The “Restriction Period” with respect to the Restricted Shares shall be the period beginning 1 December 2014 and ending on the earliest of 1 December 2018 or your death, Disability, or Retirement on or after 1 December 2015. During the Restriction Period, neither the Restricted Shares nor any interest in the Restricted Shares may be sold, assigned, transferred, encumbered, or otherwise disposed of by

5

you; provided however, that such Restricted Shares may be used to pay the exercise price by attestation upon your exercise of Stock Options, with the stipulation that the Restricted Shares attested will remain subject to the restrictions of this Paragraph 9 and the terms of this Agreement. If your employment by the Company and all its Subsidiaries is terminated for any reason prior to 1 December 2015, or for any reason other than death, Disability, or Retirement after 1 December 2015 but prior to 1 December 2018, the Restricted Shares shall be forfeited in their entirety. At the end of the Restriction Period, all nonforfeited Restricted Shares shall become transferable and otherwise be regular Shares.

10. At the end of the Restriction Period, and, if earlier, upon your election to include the value of the Restricted Shares in your federal taxable income pursuant to Internal Revenue Code Section 83(b), payment of taxes required to be withheld by the Company must be made. When taxation occurs at the end of the Restriction Period, applicable taxes will be withheld by reducing the number of the Restricted Shares issued to you without restriction by an amount equal in market value to the taxes required to be withheld. In the event you make a Section 83(b) election, applicable taxes must be paid in cash to the Company at the time the election is filed with the Internal Revenue Service.

11. In the event your employment is terminated due to your death on or after 1 December 2015, the Restricted Shares shall be transferred free of restriction, reduced by any applicable taxes, to your Designated Beneficiary or, if none, to your legal representative as soon as administratively practical after your death.

12. The Performance Shares granted to you will be earned in accordance with the formula indicated on the Earn Out Schedule (Attachment) based on Air Products Relative Total Shareholder Return in relation to the Peer Group over the three fiscal year performance period beginning 1 October 2014 and ending 30 September 2017 (the “Performance Period”). Subject to the forfeiture conditions contained in Paragraph 13 and to Paragraph 19, each earned Performance Share will entitle you to receive, at the end of the Deferral Period (as defined below), one Share.

13. The Deferral Period will begin on the date of this Agreement and will end on 1 December 2017. If your employment by the Company and all its affiliates is terminated for any reason other than an Involuntary Termination prior to 1 December 2015, all your Performance Shares will be automatically forfeited in their

6

entirety. If your employment by the Company and all its affiliates terminates on or after 1 December 2015, but during the Deferral Period, other than due to death, Disability, Retirement or Involuntary Termination, all of your Performance Shares will be automatically forfeited. If your employment by the Company and all its affiliates is terminated on or after 1 December 2015, but during the Deferral Period, due to death, Disability, or Retirement, you will not forfeit a pro-rata portion of your earned Performance Shares, which portion in each case shall be based on the number of full months you worked during the Performance Period. If your employment is terminated at any time during the Deferral Period due to Involuntary Termination and you execute a general release of claims against the Company in a form satisfactory to the Administrator (a “Release”), you will not forfeit a pro rata portion of your earned Performance Shares, which portion shall be based on the number of full months you worked during the Performance Period. If you do not execute a Release, your Performance Shares will be forfeited in their entirety. For purposes of this Paragraph 13, an Involuntary Termination which is also a Retirement shall be treated as an Involuntary Termination.

14. Performance Shares earned and not forfeited shall be paid in Shares or cash as determined by the Committee or its delegate; provided that if delivered in Shares, the Shares will be reduced by the number of Shares equal in market value to any taxes required to be withheld by the Company, as soon as administratively practical after the end of the Deferral Period. No cash dividends or other amounts shall be payable with respect to the Performance Shares during the Deferral Period. At the end of the Deferral Period, for each earned and nonforfeited Performance Share, the Company will also pay to you a cash payment equal to the dividends which would have been paid on a Share during the Deferral Period (“Dividend Equivalents”), net of taxes required to be withheld by the Company.

15. If your employment by the Company or a Subsidiary terminates during the Deferral Period due to death, payment in respect of earned Performance Shares that are not forfeited and of related Dividend Equivalents shall be made, as soon as practical after the Deferral Period, to your Designated Beneficiary or, if none, your legal representative, net of taxes required to be withheld by the Company.

16. In the event of any change in the outstanding Shares of Common Stock of the Company or the occurrence of certain other events as described in Section 12 of the Plan, an equitable adjustment of the number of Performance Shares covered by this Agreement shall be made as provided in the Plan.

7

17. Notwithstanding anything to the contrary above, if your employment by the Company and its affiliates is terminated and such termination constitutes a “Termination of Employment” within the meaning of the Air Products and Chemicals, Inc. Corporate Executive Committee Separation Program (the “Program”) and the Administrator of the Program determines you are entitled to the benefits of the Program, your outstanding Awards under this Agreement shall be treated in accordance with the Program.

18.(a) Notwithstanding anything to the contrary above, any Performance Shares earned or paid and any related Dividend Equivalents paid to you may be rescinded within three years of their payment if the earning of such Performance Shares is predicated upon the achievement of financial results that are subsequently the subject of a restatement; the Committee determines in its sole discretion that you engaged in misconduct that caused or partially caused the need for the restatement; and the Performance Shares would not have been earned or a lesser amount of Performance Shares would have been earned based upon the restated financial results. In the event of any such rescission, you shall pay to the Company the amount of any gain realized or payment received as a result of any rescinded payment, in such manner and on such terms as may be required, and the Company shall be entitled to reduce the amount of any amount owed to you by the Company or any Subsidiary by such gain or payment.

    (b) Notwithstanding any other provisions of this Agreement, in the event the Company is required to prepare an accounting restatement due to its material noncompliance with any financial reporting requirement, the Company may recover from you any amounts or awards which it is required to recover under Section 10D of the Securities Exchange Act of 1934 or any other applicable law or securities exchange listing standard.

19. In the event the Company determines, in its sole discretion, that you have engaged in a “Prohibited Activity” (as defined below), at any time during your employment, or within one year after termination of your employment from the Company or any Subsidiary, the Company may forfeit, cancel, modify, rescind, suspend, withhold, or otherwise limit or restrict any unexpired, unpaid, unexercised, or deferred Awards

8

outstanding under this Agreement, and any exercise, payment, or delivery of an Award or Shares pursuant to such an Award may be rescinded within six months after such exercise, payment, or delivery. In the event of any such rescission, you shall pay to the Company the amount of any gain realized or payment received as a result of the rescinded exercise, payment, or delivery, in such manner and on such terms as may be required by the Company, and the Company shall be entitled to reduce the amount of any amount owed to you by the Company or any Subsidiary by such gain or payment.

The Prohibited Activities are:

(a) Your making any statement, written or verbal, in any forum or media, or taking any action in disparagement of the Company or any Subsidiary or affiliate thereof (hereinafter, the “Company”), including but not limited to negative references to the Company or its products, services, corporate policies, current or former officers or employees, customers, suppliers, or business partners or associates;

(b) Your publishing any opinion, fact, or material, delivering any lecture or address, participating in any film, radio broadcast, television transmission, internet posting, social media, and/or any other electronic media;, or communicating with any representative of the media relating to, confidential matters regarding the business or affairs of the Company;

(c) Your failure to hold in confidence all Trade Secrets of the Company that came into your knowledge during your employment by the Company, or disclosing, publishing, or making use of at any time such Trade Secrets, where the term “Trade Secret” means any technical or nontechnical data, formula, pattern, compilation, program, device, method, technique, drawing, process, financial data, financial plan, product plan, list of actual or potential customers or suppliers, or other information similar to any of the foregoing, which (i) derives economic value, actual or potential, from not being generally known to and not being readily ascertainable by proper means by, other persons who can derive economic value from its disclosure or use, and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy;

(d) Your failure to hold in confidence all Confidential Information of the Company that came into your knowledge during your employment by the Company, or disclosing, publishing, or making use of such Confidential Information, where the term “Confidential Information” means any data or information, other than Trade Secrets, that is valuable to the Company and not generally known to the public or to competitors of the Company;

9

(e) Your failure, in the event of your termination of employment for any reason, promptly to deliver to the Company all memoranda, notes, records, manuals, or other documents, including all electronic or other copies of such materials and all documentation prepared or produced in connection therewith, containing Trade Secrets or Confidential Information regarding the Company’s business, whether made or compiled by you or furnished to you by virtue of your employment with the Company; or your failure promptly to deliver to the Company all vehicles, computers, credit cards, telephones, handheld electronic devices, office equipment, and other property furnished to you by virtue of your employment with the Company;

(f) Your rendering of services for any organization as an employee, officer, director, consultant, advisor, agent, broker, independent contractor, principal, or partner, or engaging directly or indirectly in any business which, in the sole judgment of the Company, is or becomes competitive with the Company during the one (1) year period following the termination of your employment; or directly or indirectly soliciting any customer, supplier, contractor, employee, agent, or consultant of the Company with whom you had contact during the last two years of your employment with the Company or became aware of through your employment with the Company, to cease doing business with, or to terminate their employment or business relationship with, the Company; or

(g) Your violation of any written policies of the Company applicable to you, including, without limitation, the Company’s insider trading policy.

The provisions of this Paragraph 19 are in addition to, and shall not supersede, the terms of your Employee Patent and Confidential Information Agreement entered at the time you were employed by the Company.

You expressly acknowledge and affirm that the foregoing provisions of this Paragraph 19 are material and important terms of this Agreement and that your agreement to be bound by the terms of this Paragraph 19 is a condition precedent to your FY2015 Awards.

20. All determinations regarding the interpretation, construction, enforcement, waiver, or modification of this Agreement and/or the Plan shall be made in the Company’s sole discretion or, in the case of Executive Officer Awards, by the Committee in its sole discretion and shall be final and binding on you and the Company. Determinations made under this Agreement and the Plan need not be uniform and may be made selectively among individuals, whether or not such individuals are similarly situated.

10

21. If any of the terms of this Agreement in the opinion of the Company conflict or are inconsistent with any applicable law or regulation of any governmental agency having jurisdiction, the Company reserves the right to modify this Agreement to be consistent with applicable laws or regulations.

22. You understand and acknowledge that the Company holds certain personal information about you, including but not limited to your name, home address, telephone number, date of birth, social security number, salary, nationality, job title, and details of all Shares awarded, cancelled, vested, unvested, or outstanding (the “personal data”). Certain personal data may also constitute “sensitive personal data” within the meaning of applicable local law. Such data include but are not limited to the information provided above and any changes thereto and other appropriate personal and financial data about you. You hereby provide explicit consent to the Company and any Subsidiary to process any such personal data and sensitive personal data. You also hereby provide explicit consent to the Company and any Subsidiary to transfer any such personal data and sensitive personal data outside the country in which you are employed, and to the United States. The legal persons for whom such personal data are intended are the Company and any third party providing services to the Company in connection with the administration of the Plan.

23. By accepting this award, you acknowledge having received and read the Plan Prospectus, and you consent to receiving information and materials in connection with this Award or any subsequent awards under the Company’s long-term performance plans, including without limitation any prospectuses and plan documents, by any means of electronic delivery available now and/or in the future (including without limitation by e-mail, by Website access, and/or by facsimile), such consent to remain in effect unless and until revoked in writing by you. This Agreement and the Plan, which is incorporated herein by reference, constitute the entire agreement between you and the Company regarding the terms and conditions of this Award.

11

24. You submit to the exclusive jurisdiction and venue of the federal or state courts of the Commonwealth of Pennsylvania to resolve all issues that may arise out of or relate to and all determinations made under this Agreement. This Agreement shall be governed by the laws of the Commonwealth of Pennsylvania, without regard to conflicts or choice of law rules or principles.

25. If any court of competent jurisdiction finds any provision of this Agreement, or portion thereof, to be unenforceable, that provision shall be enforced to the maximum extent permissible so as to effect the intent of the parties, and the remainder of this Agreement shall continue in full force and effect.

26. Neither your FY2015 Awards, this Award Agreement, nor the Plan constitute a contract of employment; nor do they guarantee your continued employment for any period required for all or any of your Awards to vest or become exercisable.

12

Attachment

FY2015-2017 Performance Share Earn Out Schedule

(PERFORMANCE SHARES AWARDED) x (PAYOUT FACTOR) =

(PERFORMANCE SHARES EARNED)

The Payout Factor is based on Relative Total Shareholder Return of the Company (“Relative TSR”) compared to the TSR of the Peer Group over the three-year Performance Period. The initial Payout Factor is determined in accordance with the following schedule:

Company’s Relative TSR	Payout %
³75th %ile		200	%
50th %ile		100	%
30th %ile		30	%
<30th %ile		0	%

The initial Payout Factor will be increased by 15 percentage points to determine the maximum Payout Factor. The Committee, in its discretion, may decrease the actual Payout Factor by up to 30 percentage points from the maximum payout (15 percentage points from the initial Payout Factor). The Committee, in its discretion, may adjust the amount of any individual’s payout.

“Total Shareholder Return” shall be the growth in value that would be experienced from purchasing a share of Company or Peer Group member stock and holding it for the Performance Period, assuming that dividends are reinvested each time they are paid.

The Peer Group shall be the following companies:¹

3M Company	Ecolab
Celanese	Illinois Tool Works
Danaher	Parker-Hannifin
Dover	PPG Industries
DuPont	Praxair
Eastman Chemical	Rockwell Automation
Eaton	TE Connectivity

¹  The Peer Group may be modified by the Committee in the event of the merger, acquisition or bankruptcy of a Peer Group member.

13

EX-12

Exhibit 12

AIR PRODUCTS AND CHEMICALS, INC., AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(Unaudited)

	Three Months Ended 31 December			Year Ended 30 September
(Millions of dollars, except ratios)	2014			2014			2013			2012			2011			2010
Earnings:
Income from continuing operations (1)	$	337.5		$	988.5		$	1,042.5		$	1,025.2		$	1,171.6		$	967.0
Add (deduct):
Provision for income taxes		106.5			366.0			322.5			305.1			390.8			321.0
Fixed charges, excluding capitalized interest		34.5			146.2			166.9			146.7			139.4			146.3
Capitalized interest amortized during the period		2.7			9.4			10.3			9.5			9.0			8.7
Undistributed earnings of equity investees		(31.3	)		(76.1	)		(46.4	)		(54.5	)		(38.9	)		(29.2	)
Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges		(.8	)		(2.8	)		—			—			—			—
Earnings, as adjusted	$	449.1		$	1,431.2		$	1,495.8		$	1,432.0		$	1,671.9		$	1,413.8
Fixed Charges:
Interest on indebtedness, including capital lease obligations	$	27.9		$	121.2		$	143.1		$	116.0		$	113.6		$	121.8
Capitalized interest		11.1			33.0			28.3			31.4			23.4			14.5
Amortization of debt discount/premium and expense		1.2			3.9			2.1			10.6			5.6			5.6
Portion of rents under operating leases representative of the interest factor		5.4			21.1			21.7			20.1			20.2			18.9
Fixed charges(3)	$	45.6		$	179.2		$	195.2		$	178.1		$	162.8		$	160.8
Ratio of Earnings to Fixed Charges (2)		9.8			8.0			7.7			8.0			10.3			8.8

⁽¹⁾  Income from continuing operations includes a goodwill and intangible asset impairment charge of $310.1 ($308.8 after-tax) in 2014 and business restructuring and cost reduction actions of $231.6 ($157.9 after-tax) and $327.4 ($222.4 after-tax) in 2013 and 2012, respectively.

⁽²⁾  The ratio of earnings to fixed charges is determined by dividing earnings, as adjusted, by fixed charges. Fixed charges consist of interest on all indebtedness plus that portion of operating lease rentals representative of the interest factor (deemed to be 21% of operating lease rentals).

⁽³⁾  We are party to certain debt guarantees of equity affiliates. Since we have not been required to satisfy the guarantees, nor is it probable that we will, interest expense related to the guaranteed debt is not included in fixed charges.

EX-31.1

Exhibit 31.1

PRINCIPAL EXECUTIVE OFFICER’S CERTIFICATION

I, Seifi Ghasemi, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Air Products and Chemicals, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: 30 January 2015

        /s/ Seifi Ghasemi          

Seifi Ghasemi

Chairman, President and Chief Executive Officer

EX-31.2

Exhibit 31.2

PRINCIPAL FINANCIAL OFFICER’S CERTIFICATION

I, M. Scott Crocco, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Air Products and Chemicals, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: 30 January 2015

        /s/ M. Scott Crocco        

M. Scott Crocco

Senior Vice President and Chief Financial Officer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Air Products and Chemicals, Inc. (the “Company”) on Form 10-Q for the period ending 31 December 2014, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, Seifi Ghasemi, Chairman, President and Chief Executive Officer of the Company, and M. Scott Crocco, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: 30 January 2015	/s/    Seifi Ghasemi
	Seifi Ghasemi Chairman, President and Chief Executive Officer
	/s/    M. Scott Crocco
	M. Scott Crocco Chief Financial Officer

XML

Discontinued Operations (Narrative) (Details) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Jun. 30, 2012 European Homecare Business [Member] USD ($)	Jun. 30, 2012 European Homecare Business [Member] EUR (€)	Dec. 31, 2014 U K and Ireland Homecare Business [Member] USD ($)	Dec. 31, 2014 U K and Ireland Homecare Business [Member] GBP (£)	Dec. 31, 2013 U K and Ireland Homecare Business [Member] USD ($)	Dec. 31, 2013 U K and Ireland Homecare Business [Member] GBP (£)	Sep. 30, 2013 U K and Ireland Homecare Business [Member] USD ($)	Jun. 30, 2012 U K and Ireland Homecare Business [Member] USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of business			$ 777.0	€ 590.0			$ 9.8	£ 6.1
Gain on sale of business, before tax			207.4
Gain on sale of business, after-tax	0	2.4	150.3				2.4
Gain on sale of business, per share			$ 0.7
Impairment charge, before tax									18.7	33.5
Impairment charge, after-tax									13.6	29.5
Impairment charge, per share									$ 0.06	$ 0.14
Maximum potential payment under guarantees					$ 31	£ 20
Exposures under the guarantee completion year					2020	2020

XML

Fair Value Measurements (Schedule of Fair Value of Assets and Liabilities) (Details) (Fair Value [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Assets at Fair Value	$ 242.9	$ 171.7
Total Liabilities at Fair Value	144.4	85.9
Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Assets at Fair Value	0	0
Total Liabilities at Fair Value	0	0
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Assets at Fair Value	242.9	171.7
Total Liabilities at Fair Value	144.4	85.9
Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total Assets at Fair Value	0	0
Total Liabilities at Fair Value	0	0
Interest rate management contract [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	103.4	78.3
Derivative liabilities	31.2	19.1
Interest rate management contract [Member] | Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Interest rate management contract [Member] | Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	103.4	78.3
Derivative liabilities	31.2	19.1
Interest rate management contract [Member] | Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Forward Exchange Contracts [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	139.5	93.4
Derivative liabilities	113.2	66.8
Forward Exchange Contracts [Member] | Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Forward Exchange Contracts [Member] | Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	139.5	93.4
Derivative liabilities	113.2	66.8
Forward Exchange Contracts [Member] | Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	0	0
Derivative liabilities	$ 0	$ 0

XML

Financial Instruments (Narrative) (Details) In Millions, unless otherwise specified			3 Months Ended		12 Months Ended		3 Months Ended		12 Months Ended		3 Months Ended
	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)	Dec. 31, 2014 Foreign Currency Debt [Member] Euro Denominated Member [Member] USD ($)	Dec. 31, 2014 Foreign Currency Debt [Member] Euro Denominated Member [Member] EUR (€)	Sep. 30, 2014 Foreign Currency Debt [Member] Euro Denominated Member [Member] USD ($)	Sep. 30, 2014 Foreign Currency Debt [Member] Euro Denominated Member [Member] EUR (€)	Dec. 31, 2014 Foreign Currency Debt [Member] RMB Denominated Member [Member] USD ($)	Dec. 31, 2014 Foreign Currency Debt [Member] RMB Denominated Member [Member] CNY	Sep. 30, 2014 Foreign Currency Debt [Member] RMB Denominated Member [Member] USD ($)	Sep. 30, 2014 Foreign Currency Debt [Member] RMB Denominated Member [Member] CNY	Dec. 31, 2014 Forward Exchange Contracts [Member]	Dec. 31, 2014 Interest rate management contract [Member]
Derivative [Line Items]
Notional Amount included in designated foreign currency denominated debt			$ 1,089.3	€ 900.0	$ 1,110.6	€ 879.3	$ 148.6	922.7	$ 146.8	900.9
Maximum Remaining Maturity of Foreign Currency Derivatives											3 years 8 months
Maximum length of time of hedged exposures, years												0 years 2 months
Net liability position of derivatives with credit risk-related contingent features	11.7	2.1
Collateral amount that counterparties would be required to post	$ 159.8	$ 107.8

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Noncontrolling Interests (Rollforward Redeemable Noncontrolling Interest) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Redeemable Noncontrolling Interest [Line Items]
Balance, beginning of period	$ 287.2	$ 375.8
Net income (loss)	5.4	1.3
Dividends	0	(3.5)
Currency translation adjustment	(3.9)	(14.9)
Balance, end of period	$ 288.7	$ 358.7

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Retirement Benefits (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2013
Defined Benefit Plan Disclosure [Line Items]
Company contributions	$ 76.4	$ 31.4	$ 78.2
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Total expected contributions for current fiscal year	130
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Total expected contributions for current fiscal year	$ 150

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Goodwill (Schedule of Goodwill by Segment) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Dec. 31, 2014		Sep. 30, 2014
Goodwill [Roll Forward]
Goodwill, net, Beginning Balance	$ 1,237.3
Goodwill, Acquisitions and Adjustments	2.2
Goodwill, Currency Translation and Other	(38.8)
Goodwill, net, Ending Balance	1,200.7
Goodwill Impaired Accumulated Impairment Loss Abstract
Goodwill, gross	1,481.6		1,522.1
Goodwill, Accumulated impairment losses	(280.9)	[1]	(284.8)	[1]
Goodwill, net	1,200.7
Industrial Gases - Americas [Member]
Goodwill [Roll Forward]
Goodwill, net, Beginning Balance	327.2
Goodwill, Acquisitions and Adjustments	2.2
Goodwill, Currency Translation and Other	(3.1)
Goodwill, net, Ending Balance	326.3		327.2
Goodwill Impaired Accumulated Impairment Loss Abstract
Goodwill, net	326.3		327.2
Goodwill, Accumulated impairment losses currency translation	24.3		20.4
Industrial Gases - EMEA [Member]
Goodwill [Roll Forward]
Goodwill, net, Beginning Balance	433.3
Goodwill, Acquisitions and Adjustments	0
Goodwill, Currency Translation and Other	(21.8)
Goodwill, net, Ending Balance	411.5
Goodwill Impaired Accumulated Impairment Loss Abstract
Goodwill, net	411.5
Industrial Gases - Asia [Member]
Goodwill [Roll Forward]
Goodwill, net, Beginning Balance	140.0
Goodwill, Acquisitions and Adjustments	0
Goodwill, Currency Translation and Other	(4.0)
Goodwill, net, Ending Balance	136.0
Goodwill Impaired Accumulated Impairment Loss Abstract
Goodwill, net	136.0
Industrial Gases - Global [Member]
Goodwill [Roll Forward]
Goodwill, net, Beginning Balance	21.4
Goodwill, Acquisitions and Adjustments	0
Goodwill, Currency Translation and Other	(0.8)
Goodwill, net, Ending Balance	20.6
Goodwill Impaired Accumulated Impairment Loss Abstract
Goodwill, net	20.6
Materials Technologies [Member]
Goodwill [Roll Forward]
Goodwill, net, Beginning Balance	315.4
Goodwill, Acquisitions and Adjustments	0
Goodwill, Currency Translation and Other	(9.1)
Goodwill, net, Ending Balance	306.3
Goodwill Impaired Accumulated Impairment Loss Abstract
Goodwill, net	$ 306.3

[1] Amount is attributable to the Industrial Gases – Americas segment and includes currency translation of $24.3 and $20.4 as of 31 December 2014 and 30 September 2014, respectively.

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Share-Based Compensation (Tables)

3 Months Ended

Dec. 31, 2014

Share-Based Compensation [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

Share-based compensation cost recognized in the consolidated income statement is summarized below:
	Three Months Ended 31 December		2014		2013
	Before-Tax Share-Based Compensation Cost	$	11.9	$	11.8
	Income Tax Benefit		(4.0)		(4.3)
	After-Tax Share-Based Compensation Cost	$	7.9	$	7.5

Schedule Of Share Based Payment Award, Market-Based Deferred Stock Units, Valuation Assumptions [Table Text Block]

Expected volatility	19.6	%
Risk-free interest rate	.9	%
Expected dividend yield	2.5	%

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

Expected volatility	30.3	%
Expected dividend yield	2.6	%
Expected life (in years)	7.5
Risk-free interest rate	2.2	%

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Supplemental Information (Debt) (Narrative) (Details) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014 USD ($)	Dec. 31, 2014 Eurobond 3.875% [Member] USD ($)	Dec. 31, 2014 Eurobond 3.875% [Member] EUR (€)
Debt Instrument [Line Items]
Amount classified as long-term debt based on ability and intent to refinance		$ 363.1	€ 300.0
Interest rate of debt, stated percentage		3.875%	3.875%
Debt instrument, expiration, month year		March 2015	March 2015
Committed credit facility	$ 2,595.0
Credit facility, expiration date	Apr. 30, 2018

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Commitments and Contingencies (Litigation and Environmental) (Narrative) (Details) In Millions, unless otherwise specified	3 Months Ended		1 Months Ended	3 Months Ended
	Dec. 31, 2014 Environmental [Member] USD ($)	Sep. 30, 2014 Environmental [Member] USD ($)	Sep. 30, 2010 Alleged Anticompete Litigation [Member] BRL	Dec. 31, 2014 Alleged Anticompete Litigation [Member] USD ($)	Dec. 31, 2014 Alleged Anticompete Litigation [Member] BRL
Loss Contingencies [Line Items]
Civil fines imposed			179.2	$ 67.0
Provision for litigation				0
Maximum of loss contingency range subject to interest				67.0	179.2
Accrual for environmental loss contingencies	84.8	86.2
Approximate number of sites on which settlement has not been reached	36
Accrual for environmental loss contingencies, Maximum payout period, years	30 years
Accrual for environmental loss contingencies, Minimum exposure	84
Accrual for environmental loss contingencies, Maximum exposure	$ 98

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Business Segment Information (Reconciliation of Operating Income) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Business restructuring and cost reduction actions	$ (32.4)	$ 0
Gain on previously held equity interest	17.9	0
Operating income	430.0	385.6
Segment Total [Member]
Segment Reporting Information [Line Items]
Operating income	$ 444.5	$ 385.6

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Earnings per Share (Schedule of Earnings per Share) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share
Income from continuing operations	$ 324.6	$ 287.1
Income from discontinued operations	0	3.1
Net Income Attributable to Air Products	$ 324.6	$ 290.2
Weighted average number of common shares outstanding	214.2	211.8
Employee stock option and other award plans	2.4	2.5
Weighted average number of common shares outstanding assuming dilution	216.6	214.3
Income from Continuing Operations, Basic	$ 1.52	$ 1.36
Income (loss) from Discontinued Operations, Basic	$ 0	$ 0.01
Net Income Attributable to Air Products	$ 1.52	$ 1.37
Income from Continuing Operations, Diluted	$ 1.5	$ 1.34
Income from Discontinued Operations, Diluted	$ 0	$ 0.01
Net Income Attributable to Air Products	$ 1.5	$ 1.35

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Business Segment Information

3 Months Ended

Dec. 31, 2014

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Business Segment Information

18. BUSINESS SEGMENT INFORMATION

The Company began operating under a new structure effective 1 October 2014. Our new reporting segments reflect the manner in which our chief operating decision maker reviews results and allocates resources. Except in the Corporate and other segment, each reporting segment meets the definition of an operating segment and does not include the aggregation of multiple operating segments.  Our liquefied natural gas (LNG) and helium storage and distribution sale of equipment businesses are aggregated within the Corporate and other segment. The prior year information presented has been restated to conform with the fiscal year 2015 presentation.

The new reporting segments are:

• Industrial Gases – Americas
• Industrial Gases – EMEA (Europe, Middle East, and Africa)
• Industrial Gases – Asia
• Industrial Gases – Global
• Materials Technologies
• Energy-from-Waste
• Corporate and other

Industrial Gases – Regional

The regional Industrial Gases (Americas, EMEA, Asia) segments include the results of our regional industrial gas businesses, which produce and sell atmospheric gases such as oxygen, nitrogen, and argon (primarily recovered by the cryogenic distillation of air) and process gases such as hydrogen, carbon monoxide, helium, syngas, and specialty gases. We supply gases to customers in many industries, including those in metals, glass, chemical processing, energy production and refining, food processing, metallurgical industries, medical, and general manufacturing. We distribute gases to our customers through a variety of supply modes including liquid or gaseous bulk supply delivered by tanker or tube trailer and, for smaller customers, packaged gases delivered in cylinders and dewars or small on-sites (cryogenic or noncryogenic generators). For large-volume customers, we construct an on-site plant adjacent to or near the customer’s facility or deliver product from one of our pipelines. We are the world’s largest provider of hydrogen, which is used by refiners to facilitate the conversion of heavy crude feedstock and lower the sulfur content of gasoline and diesel fuels.

Electricity is the largest cost component in the production of atmospheric gases, and natural gas is the principal raw material for hydrogen, carbon monoxide, and syngas production. We mitigate energy and natural gas prices contractually through pricing formulas, surcharges, and cost pass-through arrangements. The regional Industrial Gases segments also include our share of the results of several joint ventures accounted for by the equity method. The largest of these joint ventures operate in Mexico, Italy, South Africa, India, Saudi Arabia, and Thailand. Each of the regional Industrial Gases segments competes against global industrial gas companies as well as regional competitors. Competition is based primarily on price, reliability of supply, and the development of industrial gas applications.We derive a competitive advantage in locations where we have pipeline networks, which enable us to provide reliable and economic supply of products to larger customers.

Industrial Gases – Global

The Industrial Gases – Global segment includes cryogenic and gas processing equipment sales for air separation. The equipment is sold worldwide to customers in a variety of industries, including chemical and petrochemical manufacturing, oil and gas recovery and processing, and steel and primary metals processing. The Industrial Gases – Global segment also includes centralized global costs associated with management of all the Industrial Gases segments. These costs include Industrial Gases global administrative costs, product development costs, and research and development costs. We compete with a large number of firms for all the offerings included in the Industrial Gases – Global segment. Competition in the equipment businesses is based primarily on technological performance, service, technical know-how, price, and performance guarantees.

Materials Technologies

The Materials Technologies segment includes applications technology to make products that provide solutions to a broad range of global industries through chemical synthesis, analytical technology, process engineering, and surface science. This segment provides specialty gases, specialty chemicals, services, and equipment to the electronics industry primarily for the manufacture of silicon and compound semiconductors as well as liquid crystal (LCD) and other displays. The Materials Technologies segment also provides performance chemical solutions for the coatings, inks, adhesives, civil engineering, personal care, institutional and industrial cleaning, mining, oil field, polyurethane, and other industries. We compete in the businesses included in the Materials Technologies segment on a product-by-product basis against companies ranging from niche suppliers with a single product to large, vertically integrated companies. Competition is principally conducted on the basis of product performance, price, quality, reliability of product supply, technical innovation, service, and global infrastructure.

Energy-from-Waste

The Energy-from-Waste segment consists of two projects that are under construction in Tees Valley, United Kingdom. Once operational, these projects will process waste materials and generate renewable power for customers under long-term contracts.

Corporate and other

The Corporate and other segment includes two on-going global businesses (our LNG sale of equipment business and our helium storage and distribution vessel sale of equipment business), the polyurethane intermediates business that was exited in early fiscal year 2014, and corporate support functions that benefit all the segments. Competition for the two sale of equipment businesses is based primarily on technological performance, service, technical know-how, price, and performance guarantees.

Business Segment
	Industrial		Industrial		Industrial		Industrial				Energy-
	Gases–		Gases–		Gases–		Gases–		Materials		from-		Corporate
	Americas		EMEA		Asia		Global		Technologies		Waste		and other		Total
Three Months Ended 31 December 2014
Sales	$	1,003.0	$	500.8	$	398.7	$	59.0	$	524.0	$	-	$	75.3	$	2,560.8
Operating income		211.2		81.3		90.5		(17.9)		104.6		(2.5)		(22.7)		444.5
Depreciation and amortization		103.6		51.1		49.6		4.3		24.0		-		2.9		235.5
Equity affiliates' income		17.2		10.3		14.6		.4		.6		-		-		43.1
Three Months Ended 31 December 2013
Sales	$	943.9	$	549.9	$	395.3	$	67.2	$	479.5	$	-	$	109.7	$	2,545.5
Operating income		184.5		85.2		82.7		(10.3)		64.3		(2.9)		(17.9)		385.6
Depreciation and amortization		104.0		54.9		46.4		1.7		24.5		-		2.7		234.2
Equity affiliates' income		17.6		9.7		9.6		.7		.6		-		-		38.2
Total Assets
31 December 2014	$	6,225.4	$	3,414.7	$	4,106.1	$	345.2	$	1,790.3	$	689.4	$	1,064.3	$	17,635.4
30 September 2014		6,240.7		3,521.0		4,045.6		389.4		1,835.7		591.9		1,154.8		17,779.1

The sales information noted above relates to external customers only. All intersegment sales are eliminated in consolidation. For the three months ended 31 December 2014 and 2013, the Industrial Gases – Global segment had intersegment sales of $59.6 and $41.3, respectively. These sales are generally transacted at market pricing. For all other segments, intersegment sales are not material for all periods presented.

Below is a reconciliation of segment total operating income to consolidated operating income:
	Three Months Ended
	31 December
Operating Income		2014		2013
Segment total	$	444.5	$	385.6
Business restructuring and cost reduction actions		(32.4)		-
Gain on previously held equity interest		17.9		-
Consolidated Total	$	430.0	$	385.6

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Financial Instruments (Schedule of Interest Rate Swaps and Cross Currency Interest Rate Swaps) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
Interest Rate Swaps Contracts [Member] | Fair Value Hedges [Member]
Derivative [Line Items]
US$ Notional	$ 600.0	$ 600.0
Pay %	LIBOR	LIBOR
Average Receive %	2.77%	2.77%
Years Average Maturity	4 years 0 months	4 years 4 months
Interest Rate Swaps Contracts [Member] | Cash Flow Hedges [Member]
Derivative [Line Items]
US$ Notional	392.6	431.7
Pay %	2.12%	2.36%
Average Receive %	0.43%	0.71%
Years Average Maturity	0 years 2 months	0 years 5 months
Cross Currency Interest Rate Swaps [Member] | Net Investment Hedges [Member]
Derivative [Line Items]
US$ Notional	773.1	404.5
Pay %	3.43%	3.70%
Average Receive %	2.01%	1.15%
Years Average Maturity	3 years 6 months	2 years 8 months
Cross Currency Interest Rate Swaps [Member] | Cash Flow Hedges [Member]
Derivative [Line Items]
US$ Notional	483.9	446.3
Pay %	3.46%	3.39%
Average Receive %	2.86%	2.86%
Years Average Maturity	4 years 0 months	4 years 2 months
Cross Currency Interest Rate Swaps [Member] | Hedges Not Designated [Member]
Derivative [Line Items]
US$ Notional	$ 0	$ 15.4
Pay %	0.00%	3.62%
Average Receive %	0.00%	0.05%
Years Average Maturity	0 years 0 months	0 years 10 months

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Business Restructuring and Cost Reduction Actions (Narrative) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended			12 Months Ended	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014 Employees	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2013
Restructuring and Related Cost [Line Items]
Business restructuring and cost reduction actions	$ 32.4	$ 0
Business Realignment and Reorganization [Member]
Restructuring and Related Cost [Line Items]
Business restructuring and cost reduction actions	32.4		12.7
Business restructuring and cost reduction actions, after-tax	21.7		8.2
Business restructuring and cost reduction actions, per share	$ 0.1		$ 0.04
Number of positions to be eliminated	450		50
Business Realignment and Reorganization [Member] | Industrial Gases - Americas [Member]
Restructuring and Related Cost [Line Items]
Business restructuring and cost reduction actions	5.1		2.9
Business Realignment and Reorganization [Member] | Industrial Gases - EMEA [Member]
Restructuring and Related Cost [Line Items]
Business restructuring and cost reduction actions	2.6		3.1
Business Realignment and Reorganization [Member] | Industrial Gases - Asia [Member]
Restructuring and Related Cost [Line Items]
Business restructuring and cost reduction actions	2.7		1.5
Business Realignment and Reorganization [Member] | Industrial Gases - Global [Member]
Restructuring and Related Cost [Line Items]
Business restructuring and cost reduction actions	1.3		1.5
Business Realignment and Reorganization [Member] | Materials Technologies [Member]
Restructuring and Related Cost [Line Items]
Business restructuring and cost reduction actions	8.1		1.6
Business Realignment and Reorganization [Member] | Corporate and Other [Member]
Restructuring and Related Cost [Line Items]
Business restructuring and cost reduction actions	12.6		2.1
Business Realignment and Reorganization [Member] | Severance And Other Benefits [Member]
Restructuring and Related Cost [Line Items]
Business restructuring and cost reduction actions	32.4			12.7
Plan 2013 [Member]
Restructuring and Related Cost [Line Items]
Business restructuring and cost reduction actions					231.6	231.6
Business restructuring and cost reduction actions, after-tax					157.9
Business restructuring and cost reduction actions, per share					$ 0.74
Plan 2013 [Member] | Asset Actions [Member]
Restructuring and Related Cost [Line Items]
Business restructuring and cost reduction actions						100.4
Plan 2013 [Member] | Severance And Other Benefits [Member]
Restructuring and Related Cost [Line Items]
Business restructuring and cost reduction actions						71.9
Plan 2013 [Member] | Contract Actions [Member]
Restructuring and Related Cost [Line Items]
Business restructuring and cost reduction actions						$ 59.3

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Business Segment Information (Schedule of Segment Reporting Information) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014
Segment Reporting Information [Line Items]
Sales	$ 2,560.8	$ 2,545.5
Operating income	430.0	385.6
Depreciation and amortization	235.5	234.2
Equity affiliates' income	43.1	38.2
Total assets	17,635.4		17,779.1
Segment Total [Member]
Segment Reporting Information [Line Items]
Sales	2,560.8	2,545.5
Operating income	444.5	385.6
Depreciation and amortization	235.5	234.2
Equity affiliates' income	43.1	38.2
Total assets	17,635.4		17,779.1
Industrial Gases - Americas [Member]
Segment Reporting Information [Line Items]
Sales	1,003.0	943.9
Operating income	211.2	184.5
Depreciation and amortization	103.6	104.0
Equity affiliates' income	17.2	17.6
Total assets	6,225.4		6,240.7
Industrial Gases - EMEA [Member]
Segment Reporting Information [Line Items]
Sales	500.8	549.9
Operating income	81.3	85.2
Depreciation and amortization	51.1	54.9
Equity affiliates' income	10.3	9.7
Total assets	3,414.7		3,521.0
Industrial Gases - Asia [Member]
Segment Reporting Information [Line Items]
Sales	398.7	395.3
Operating income	90.5	82.7
Depreciation and amortization	49.6	46.4
Equity affiliates' income	14.6	9.6
Total assets	4,106.1		4,045.6
Industrial Gases - Global [Member]
Segment Reporting Information [Line Items]
Sales	59.0	67.2
Operating income	(17.9)	(10.3)
Depreciation and amortization	4.3	1.7
Equity affiliates' income	0.4	0.7
Total assets	345.2		389.4
Materials Technologies [Member]
Segment Reporting Information [Line Items]
Sales	524.0	479.5
Operating income	104.6	64.3
Depreciation and amortization	24.0	24.5
Equity affiliates' income	0.6	0.6
Total assets	1,790.3		1,835.7
Energy-from-Waste [Member]
Segment Reporting Information [Line Items]
Sales	0	0
Operating income	(2.5)	(2.9)
Depreciation and amortization	0	0
Equity affiliates' income	0	0
Total assets	689.4		591.9
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Sales	75.3	109.7
Operating income	(22.7)	(17.9)
Depreciation and amortization	2.9	2.7
Equity affiliates' income	0	0
Total assets	$ 1,064.3		$ 1,154.8

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Earnings per Share (Tables)

3 Months Ended

Dec. 31, 2014

Earnings Per Share

Schedule of Earnings Per Share, Basic and Diluted

		Three Months Ended
		31 December
		2014		2013
Numerator
Income from continuing operations		$	324.6	$	287.1
Income from discontinued operations			-		3.1
Net Income Attributable to Air Products		$	324.6	$	290.2
Denominator (in millions)
Weighted average number of common shares — Basic			214.2		211.8
Effect of dilutive securities
	Employee stock option and other award plans		2.4		2.5
Weighted average number of common shares — Diluted			216.6		214.3
Basic EPS Attributable to Air Products
Income from continuing operations		$	1.52	$	1.36
Income from discontinued operations			-		.01
Net Income Attributable to Air Products		$	1.52	$	1.37
Diluted EPS Attributable to Air Products
Income from continuing operations		$	1.50	$	1.34
Income from discontinued operations			-		.01
Net Income Attributable to Air Products		$	1.50	$	1.35

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Financial Instruments (Schedule of Gain/Loss Related to Derivative Instruments) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014		Dec. 31, 2013
Derivative [Line Items]
Interest expense	$ 29.1		$ 33.3
Other income/expense, net	(8.3)		(20.4)
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Derivative [Line Items]
Interest expense	0		(0.2)
Other income/expense, net	14.1		(11.9)
Cash Flow Hedges [Member]
Derivative [Line Items]
Net gain (loss) recognized in OCI (effective portion)	(23.8)		13.1
Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion)	(0.6)		0.2
Net (gain) loss reclassified from OCI to other income, net (effective portion)	13.6		(11.3)
Net (gain) loss reclassified from OCI to interest expense (effective portion)	0		(0.2)
Net (gain) loss reclassified from OCI to other income, net (ineffective portion)	0.5		(0.6)
Cash Flow Hedges [Member] | Forward Exchange Contracts [Member]
Derivative [Line Items]
Net gain (loss) recognized in OCI (effective portion)	(24.0)		14.3
Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion)	(0.6)		0.2
Net (gain) loss reclassified from OCI to other income, net (effective portion)	18.8		(12.7)
Net (gain) loss reclassified from OCI to interest expense (effective portion)	(0.3)		0
Net (gain) loss reclassified from OCI to other income, net (ineffective portion)	0.5		(0.6)
Cash Flow Hedges [Member] | Other Contracts [Member]
Derivative [Line Items]
Net gain (loss) recognized in OCI (effective portion)	0.2	[1]	(1.2)	[1]
Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion)	0	[1]	0	[1]
Net (gain) loss reclassified from OCI to other income, net (effective portion)	(5.2)	[1]	1.4	[1]
Net (gain) loss reclassified from OCI to interest expense (effective portion)	0.3	[1]	(0.2)	[1]
Net (gain) loss reclassified from OCI to other income, net (ineffective portion)	0	[1]	0	[1]
Fair Value Hedges [Member]
Derivative [Line Items]
Net (gain) loss recognized in interest expense	3.5	[2]	(4.4)	[2]
Fair Value Hedges [Member] | Other Contracts [Member]
Derivative [Line Items]
Net (gain) loss recognized in interest expense	3.5	[1],[2]	(4.4)	[1],[2]
Net Investment Hedges [Member]
Derivative [Line Items]
Net gain (loss) recognized in OCI	61.3		(18.4)
Net Investment Hedges [Member] | Forward Exchange Contracts [Member]
Derivative [Line Items]
Net gain (loss) recognized in OCI	20.1		(9.9)
Net Investment Hedges [Member] | Foreign Currency Debt [Member]
Derivative [Line Items]
Net gain (loss) recognized in OCI	31.1		(13.6)
Net Investment Hedges [Member] | Other Contracts [Member]
Derivative [Line Items]
Net gain (loss) recognized in OCI	10.1	[1]	5.1	[1]
Hedges Not Designated [Member]
Derivative [Line Items]
Net gain (loss) recognized in net income (loss)	0.2	[3]	0.1	[3]
Hedges Not Designated [Member] | Forward Exchange Contracts [Member]
Derivative [Line Items]
Net gain (loss) recognized in net income (loss)	0.2	[3]	0.1	[3]
Hedges Not Designated [Member] | Other Contracts [Member]
Derivative [Line Items]
Net gain (loss) recognized in net income (loss)	$ 0	[1],[3]	$ 0	[1],[3]

[1] Other includes the impact on other comprehensive income (OCI) and earnings related to interest rate and cross currency interest rate swaps.

[2] The impact of the fair value hedges noted above was largely offset by gains and losses resulting from the impact of changes in related interest rates on recognized outstanding debt.

[3] The impact of the non-designated hedges noted above was largely offset by gains and losses, respectively, resulting from the impact of changes in exchange rates on recognized assets and liabilities denominated in nonfunctional currencies

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Accumulated Other Comprehensive Loss (Rollforward) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (1,241.9)
Other comprehensive income (loss) before reclassifications	(268.2)
Amounts reclassified from AOCL	34.4
Net current period other comprehensive income (loss)	(233.8)	52.6
Amount attributable to noncontrolling interest	(5.1)	(1.1)
Ending Balance	(1,470.6)
Net loss on derivatives qualifying as hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(28.5)
Other comprehensive income (loss) before reclassifications	(23.8)
Amounts reclassified from AOCL	13.5
Net current period other comprehensive income (loss)	(10.3)
Amount attributable to noncontrolling interest	0.1
Ending Balance	(38.9)
Foreign currency translation adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(268.7)
Other comprehensive income (loss) before reclassifications	(244.4)
Amounts reclassified from AOCL	0
Net current period other comprehensive income (loss)	(244.4)
Amount attributable to noncontrolling interest	(5.2)
Ending Balance	(507.9)
Pension and postretirement benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(944.7)
Other comprehensive income (loss) before reclassifications	0
Amounts reclassified from AOCL	20.9
Net current period other comprehensive income (loss)	20.9
Amount attributable to noncontrolling interest	0
Ending Balance	$ (923.8)

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Share-Based Compensation (Narratives) (Details) (USD $)	3 Months Ended
	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Award [Line Items]
Shares available for future grant	5,057,910
Market-Based Deferred Stock Units [Member]
Share-based Compensation Arrangement by Share-based Award [Line Items]
Number of units/shares granted	116,111
Performance Period	3 years
Weighted-average grant date fair value of shares/units	$ 194.51
Time-Based Deferred Stock Units [Member]
Share-based Compensation Arrangement by Share-based Award [Line Items]
Number of units/shares granted	126,504
Weighted-average grant date fair value of shares/units	$ 144.14
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Award [Line Items]
Number of stock options granted	175,829
Weighted-average exercise price of stock options granted, per option	$ 144.09
Estimated fair value of stock options granted, per option	$ 37.19
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Award [Line Items]
Number of units/shares granted	19,691
Weighted-average grant date fair value of shares/units	$ 144.09

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Goodwill (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Sep. 30, 2014		Dec. 31, 2014
Goodwill [Line Items]
Goodwill accumulated impairment losses	$ 284.8	[1]	$ 280.9	[1]
Goodwill, net	1,237.3		1,200.7
Latin America Reporting Unit [Member]
Goodwill [Line Items]
Goodwill impairment charge	305.2
Goodwill, net			$ 229.7

[1] Amount is attributable to the Industrial Gases – Americas segment and includes currency translation of $24.3 and $20.4 as of 31 December 2014 and 30 September 2014, respectively.

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New Accounting Guidance

3 Months Ended

Dec. 31, 2014

New Accounting Guidance [Abstract]

New Accounting Guidance

2.NEW ACCOUNTING GUIDANCE

Accounting Guidance Implemented in 2015

Unrecognized Tax Benefits

In July 2013, the Financial Accounting Standards Board (FASB) issued guidance to require standard presentation of an unrecognized tax benefit when a carryforward related to net operating losses or tax credits exists. We adopted this guidance prospectively beginning in the first quarter of fiscal year 2015. This guidance did not have a significant impact on our consolidated financial statements.

New Accounting Guidance to be Implemented

Discontinued Operations

In April 2014, the FASB issued an update to change the criteria for determining which disposals qualify as a discontinued operation and to expand related disclosure requirements. Under the new guidance, a disposal is required to be reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on operations and financial results. This guidance will be effective prospectively for new disposals and new disposal groups classified as held for sale beginning in fiscal year 2016, with early adoption permitted.

Revenue Recognition

In May 2014, the FASB issued guidance based on the principle that revenue is recognized in an amount expected to be collected and to which the entity expects to be entitled in exchange for the transfer of goods or services. This guidance is effective for us beginning in fiscal year 2018 and can be adopted either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. We are currently evaluating the adoption alternatives and impact that this update will have on our consolidated financial statements.

Share-Based Compensation

In June 2014, the FASB issued guidance clarifying that share-based compensation performance targets that could be achieved after the requisite service period should be treated as a performance condition that affects vesting, rather than a condition that affects the grant-date fair value of the award. This guidance is effective for us beginning in fiscal year 2017, with early adoption permitted. We do not expect this guidance to have a significant impact on our consolidated financial statements.

Going Concern

In August 2014, the FASB issued guidance regarding management's responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern within one year of the issuance of the financial statements. If substantial doubt exists, additional disclosures would be required. This guidance will be effective beginning in the fourth quarter of fiscal year 2017, with early adoption permitted. This guidance will not have a significant impact on our consolidated financial statements.

Extraordinary Items

In January 2015, the FASB issued an update to eliminate the concept of extraordinary items. Previously, extraordinary items were required to be segregated and shown separately in the income statement, net of tax, when the items were deemed both unusual and infrequent. The guidance is effective beginning in fiscal year 2017 and may be applied retrospectively for periods presented. Early adoption is permitted if applied from the beginning of the fiscal year of adoption.

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Share-Based Compensation (Compensation Cost Recognized in Income Statement) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Before-Tax Share-Based Compensation	$ 11.9	$ 11.8
Income Tax Benefit	(4.0)	(4.3)
After-Tax Share-Based Compensation	$ 7.9	$ 7.5

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Business Restructuring and Cost Reduction Actions (Carrying Amount of Accrual) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended			12 Months Ended	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2013
Restructuring Cost and Reserve [Line Items]
Business restructuring and cost reduction actions	$ 32.4	$ 0
Business Realignment and Reorganization [Member]
Restructuring Cost and Reserve [Line Items]
Business restructuring and cost reduction actions	32.4		12.7
Business Realignment and Reorganization [Member] | Severance And Other Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Business restructuring and cost reduction actions	32.4			12.7
Amount reflected in pension liability	(2.7)
Cash expenditures	(25.0)			(2.2)
Currency translation adjustment	(0.1)
Accrued Balance	15.1		10.5	10.5
Plan 2013 [Member]
Restructuring Cost and Reserve [Line Items]
Business restructuring and cost reduction actions					231.6	231.6
Amount reflected in pension liability						(6.9)
Noncash expenses						(100.4)
Cash expenditures	(7.1)			(52.5)		(61.5)
Currency translation adjustment	(0.1)			(0.6)		0.4
Accrued Balance	2.9		10.1	10.1	63.2	63.2
Plan 2013 [Member] | Severance And Other Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Business restructuring and cost reduction actions						71.9
Amount reflected in pension liability						(6.9)
Noncash expenses						0
Cash expenditures	(7.1)			(51.7)		(3.0)
Currency translation adjustment	(0.1)			(0.6)		0.4
Accrued Balance	2.9		10.1	10.1	62.4	62.4
Plan 2013 [Member] | Asset Actions [Member]
Restructuring Cost and Reserve [Line Items]
Business restructuring and cost reduction actions						100.4
Amount reflected in pension liability						0
Noncash expenses						(100.4)
Cash expenditures				0		0
Currency translation adjustment				0		0
Accrued Balance			0	0	0	0
Plan 2013 [Member] | Contract Actions [Member]
Restructuring Cost and Reserve [Line Items]
Business restructuring and cost reduction actions						59.3
Amount reflected in pension liability						0
Noncash expenses						0
Cash expenditures				(0.8)		(58.5)
Currency translation adjustment				0		0
Accrued Balance			$ 0	$ 0	$ 0.8	$ 0.8

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Goodwill (Tables)

3 Months Ended

Dec. 31, 2014

Goodwill Disclosure [Abstract]

Schedule of Goodwill [Table Text Block]

	Industrial		Industrial		Industrial		Industrial
	Gases–		Gases–		Gases–		Gases–		Materials
	Americas		EMEA		Asia		Global		Technologies			Total
Balance at 30 September 2014	$	327.2	$	433.3	$	140.0	$	21.4	$	315.4	$	1,237.3
Acquisitions and adjustments		2.2		-		-		-		-		2.2
Currency translation and other		(3.1)		(21.8)		(4.0)		(.8)		(9.1)		(38.8)
Balance at 31 December 2014	$	326.3	$	411.5	$	136.0	$	20.6	$	306.3	$	1,200.7

		31 December		30 September
		2014		2014
Goodwill, gross	$	1,481.6	$	1,522.1
Accumulated impairment losses(A)		(280.9)		(284.8)
Goodwill, net	$	1,200.7	$	1,237.3
(A)Amount is attributable to the Industrial Gases – Americas segment and includes currency translation of $24.3 and $20.4 as of 31 December 2014
and 30 September 2014, respectively.

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Inventories (Tables)

3 Months Ended

Dec. 31, 2014

Inventories [Abstract]

Schedule of Inventory

	31 December		30 September
	2014		2014
Finished goods	$	506.3	$	493.9
Work in process		37.6		34.1
Raw materials, supplies and other		273.6		283.4
	$	817.5	$	811.4
Less: Excess of FIFO cost over LIFO cost		(107.8)		(105.4)
	$	709.7	$	706.0

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Retirement Benefits (Schedule of Net Periodic Benefit Cost) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
US [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 10.6	$ 10.7
Interest cost	31.2	32.7
Expected return on plan assets	(50.5)	(47.0)
Actuarial loss amortization	19.8	19.6
Prior service cost amortization	0.7	0.7
Settlement and curtailment charges	(0.1)	0
Special termination benefits	2.7	0.2
Other	1.1	0
Net periodic benefit cost	15.5	16.9
International [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	8.2	8.8
Interest cost	15.0	16.6
Expected return on plan assets	(21.1)	(19.2)
Actuarial loss amortization	10.5	8.8
Prior service cost amortization	0	0.1
Settlement and curtailment charges	(0.1)	0
Special termination benefits	0	0
Other	0.5	0.5
Net periodic benefit cost	13.0	15.6
Other Postretirement Benefit Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	0.7	0.8
Interest cost	0.6	0.6
Expected return on plan assets	0	0
Actuarial loss amortization	0.2	0.4
Prior service cost amortization	0	0
Settlement and curtailment charges	0	0
Special termination benefits	0	0
Other	0	0
Net periodic benefit cost	$ 1.5	$ 1.8

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Business Combinations (Narrative) (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 30, 2014
Business Acquisition [Line Items]
Acquisitions, less cash acquired	$ 22.6	$ 0
Gain on previously held equity interest	17.9	0
Production Joint Venture [Member]
Business Acquisition [Line Items]
Acquisitions, less cash acquired			22.6
Percent ownership before acquisition			50.00%
Percent ownership after acquisition			100.00%
Gain on previously held equity interest	17.9
Gain on previously held equity interest, after tax	$ 11.2
Gain on previously held equity interest, per share	$ 0.05

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Financial Instruments (Tables)

3 Months Ended

Dec. 31, 2014

Financial Instruments [Abstract]

Schedule of Outstanding Currency Price Risk Management Instruments

			31 December 2014		30 September 2014
				Years			Years
			US$	Average		US$	Average
			Notional	Maturity		Notional	Maturity
Forward Exchange Contracts:
	Cash flow hedges	$	3,243.5	.6	$	2,965.5	.7
	Net investment hedges		660.5	2.6		685.9	2.9
	Not designated		1,079.6	.5		381.5	.1
Total Forward Exchange Contracts		$	4,983.6	.8	$	4,032.9	1.0

Schedule of Interest Rate Swaps and Cross Currency Interest Rate Swaps

			31 December 2014							30 September 2014
						Average		Years					Average		Years
		US$		Average		Receive		Average	US$		Average		Receive		Average
		Notional		Pay %		%		Maturity	Notional		Pay %		%		Maturity
Interest rate swaps (fair value hedge)		$	600.0	LIBOR		2.77	%	4.0	$	600.0	LIBOR		2.77	%	4.3
Cross currency interest rate swaps
	(net investment hedge)	$	773.1	3.43	%	2.01	%	3.5	$	404.5	3.70	%	1.15	%	2.7
Interest rate swaps (cash flow hedge)		$	392.6	2.12	%	.43	%	.2	$	431.7	2.36	%	.71	%	.4
Cross currency interest rate swaps
	(cash flow hedge)	$	483.9	3.46	%	2.86	%	4.0	$	446.3	3.39	%	2.86	%	4.2
Cross currency interest rate swaps
	(not designated)	$	-	-	%	-	%	-	$	15.4	3.62	%	.05	%	.8

Fair Value of Derivative Instruments

		Balance Sheet	31 December		30 September		Balance Sheet	31 December		30 September
		Location	2014		2014		Location	2014		2014
Derivatives Designated as
	Hedging Instruments:
Forward exchange contracts		Other receivables	$	104.5	$	78.9	Accrued liabilities	$	109.0	$	61.8
Interest rate management contracts		Other receivables		25.5		21.1	Accrued liabilities		31.2		18.8
		Other noncurrent					Other noncurrent
Forward exchange contracts		assets		31.8		10.5	liabilities		2.6		3.1
		Other noncurrent					Other noncurrent
Interest rate management contracts		assets		77.9		54.6	liabilities		-		.3
Total Derivatives Designated as
	Hedging Instruments		$	239.7	$	165.1		$	142.8	$	84.0
Derivatives Not Designated as
	Hedging Instruments:
Forward exchange contracts		Other receivables	$	3.2	$	4.0	Accrued liabilities	$	1.6	$	1.9
Interest rate management contracts		Other receivables		-		2.6	Accrued liabilities		-		-
Total Derivatives Not Designated as
	Hedging Instruments		$	3.2	$	6.6		$	1.6	$	1.9
Total Derivatives			$	242.9	$	171.7		$	144.4	$	85.9

Schedule of Gain/Loss Related to Derivative Instruments

		Three Months Ended 31 December
		Forward				Foreign Currency
		Exchange Contracts				Debt				Other (A)				Total
		2014		2013		2014		2013		2014		2013		2014		2013
Cash Flow Hedges, net of tax:
Net gain (loss) recognized in OCI
	(effective portion)	$	(24.0)	$	14.3	$	-	$	-	$	.2	$	(1.2)	$	(23.8)	$	13.1
Net (gain) loss reclassified from OCI
	to sales/cost of sales (effective portion)		(.6)		.2		-		-		-		-		(.6)		.2
Net (gain) loss reclassified from OCI to other
	income (expense), net (effective portion)		18.8		(12.7)		-		-		(5.2)		1.4		13.6		(11.3)
Net (gain) loss reclassified from OCI
	to interest expense (effective portion)		(.3)		-		-		-		.3		(.2)		-		(.2)
Net (gain) loss reclassified from OCI to other
	income (expense), net (ineffective portion)		.5		(.6)		-		-		-		-		.5		(.6)
Fair Value Hedges:
Net gain (loss) recognized in interest expense (B)		$	-	$	-	$	-	$	-	$	3.5	$	(4.4)	$	3.5	$	(4.4)
Net Investment Hedges, net of tax:
Net gain (loss) recognized in OCI		$	20.1	$	(9.9)	$	31.1	$	(13.6)	$	10.1	$	5.1	$	61.3	$	(18.4)
Derivatives Not Designated as Hedging Instruments:
Net gain (loss) recognized in other income (expense), net (C)		$	.2	$	.1	$	-	$	-	$	-	$	-	$	.2	$	.1

^(A) Other includes the impact on other comprehensive income (OCI) and earnings primarily related to interest rate and cross currency interest

rate swaps.

^(B) The impact of fair value hedges noted above was largely offset by gains and losses resulting from the impact of changes in

related interest rates on recognized outstanding debt.

^(C) The impact of the non-designated hedges noted above was largely offset by gains and losses, respectively, resulting from the

impact of changes in exchange rates on recognized assets and liabilities denominated in nonfunctional currencies.

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Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2014

Fair Value Measurements [Abstract]

Schedule of Carrying Value and Fair Values of Financial Instruments

		31 December 2014				30 September 2014
		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets
Derivatives
	Forward exchange contracts	$	139.5	$	139.5	$	93.4	$	93.4
	Interest rate management contracts		103.4		103.4		78.3		78.3
Liabilities
Derivatives
	Forward exchange contracts	$	113.2	$	113.2	$	66.8	$	66.8
	Interest rate management contracts		31.2		31.2		19.1		19.1
Long-term debt, including current portion			4,805.5		5,078.7		4,889.8		5,130.7

Schedule of Fair Value of Assets and Liabilities

The following table summarizes assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets:
			31 December 2014								30 September 2014
			Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	Assets at Fair Value
	Derivatives
		Forward exchange contracts	$	139.5	$	-	$	139.5	$	-	$	93.4	$	-	$	93.4	$	-
		Interest rate management contracts		103.4		-		103.4		-		78.3		-		78.3		-
	Total Assets at Fair Value		$	242.9	$	-	$	242.9	$	-	$	171.7	$	-	$	171.7	$	-
	Liabilities at Fair Value
	Derivatives
		Forward exchange contracts	$	113.2	$	-	$	113.2	$	-	$	66.8	$	-	$	66.8	$	-
		Interest rate management contracts		31.2		-		31.2		-		19.1		-		19.1		-
	Total Liabilities at Fair Value		$	144.4	$	-	$	144.4	$	-	$	85.9	$	-	$	85.9	$	-

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Major Accounting Policies

3 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Major Accounting Policies

1. BASIS OF PRESENTATION AND MAJOR ACCOUNTING POLICIES

Refer to our 2014 Form 10-K for a description of major accounting policies. There have been no significant changes to these accounting policies during the first three months of fiscal year 2015.

The Company realigned its businesses in new reporting segments and began operating under the new structure effective 1 October 2014. Prior year segment information presented has been restated to conform with the fiscal year 2015 presentation. See Note 18, Business Segment Information, for further details.

The consolidated financial statements of Air Products and Chemicals, Inc. and its subsidiaries (“we,” “our,” “us,” the “Company,” “Air Products,” or “registrant”) included herein have been prepared by us, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to such rules and regulations. In our opinion, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the Notes. The interim results for the periods indicated herein, however, do not reflect certain adjustments, such as the valuation of inventories on the last-in, first-out (LIFO) cost basis, which are only finally determined on an annual basis. The consolidated financial statements and related Notes included herein should be read in conjunction with the financial statements and Notes thereto included in our latest Form 10-K in order to fully understand the basis of presentation. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year.

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Retirement Benefits (Tables)

3 Months Ended

Dec. 31, 2014

Schedule of Net Periodic Benefit Cost

	Pension Benefits								Other Benefits
	2014				2013				2014		2013
Three Months Ended 31 December	U.S.		International		U.S.		International
Service cost	$	10.6	$	8.2	$	10.7	$	8.8	$	.7	$	.8
Interest cost		31.2		15.0		32.7		16.6		.6		.6
Expected return on plan assets		(50.5)		(21.1)		(47.0)		(19.2)		-		-
Prior service cost amortization		.7		-		.7		.1		-		-
Actuarial loss amortization		19.8		10.5		19.6		8.8		.2		.4
Settlement and curtailment charges		(.1)		(.1)		-		-		-		-
Special termination benefits		2.7		-		.2		-		-		-
Other		1.1		.5		-		.5		-		-
Net periodic benefit cost	$	15.5	$	13.0	$	16.9	$	15.6	$	1.5	$	1.8

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Discontinued Operations (Schedule of Operating Results) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sales	$ 0	$ 8.5
Income before taxes	0	0.7
Income tax provision	0	0
Income from operations of discontinued operations	0	0.7
Gain on sale of businesses, after-tax	0	2.4
Income (loss) from Discontinued Operations, net of tax	$ 0	$ 3.1

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Fair Value Measurements (Schedule of the Carrying Values and Fair Values of Financial Instruments) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including current portion carrying value	$ 4,805.5	$ 4,889.8
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including current portion fair value	5,078.7	5,130.7
Interest rate management contract [Member] | Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	103.4	78.3
Derivative liabilities	31.2	19.1
Interest rate management contract [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	103.4	78.3
Derivative liabilities	31.2	19.1
Forward Exchange Contracts [Member] | Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	139.5	93.4
Derivative liabilities	113.2	66.8
Forward Exchange Contracts [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets	139.5	93.4
Derivative liabilities	$ 113.2	$ 66.8

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Earnings per Share (Narrative) (Details) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share
Antidilutive options excluded from computation of diluted earnings per share	0.4	0.8

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Consolidated Income Statements (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Consolidated Income Statements [Abstract]
Sales	$ 2,560.8	$ 2,545.5
Cost of sales	1,831.0	1,865.9
Selling and administrative	258.2	280.9
Research and development	35.4	33.5
Business restructuring and cost reduction actions	32.4	0
Gain on previously held equity interest	17.9	0
Other income (expense), net	8.3	20.4
Operating Income	430.0	385.6
Equity affiliates' income	43.1	38.2
Interest expense	29.1	33.3
Income from Continuing Operations before Taxes	444.0	390.5
Income tax provision	106.5	94.5
Income from Continuing Operations	337.5	296.0
Income (loss) from Discontinued Operations, net of tax	0	3.1
Net Income	337.5	299.1
Less: Net Income Attributable to Noncontrolling Interests	12.9	8.9
Net Income Attributable to Air Products	324.6	290.2
Net Income Attributable to Air Products
Income from continuing operations	324.6	287.1
Income (loss) from discontinued operations	0	3.1
Net Income Attributable to Air Products	$ 324.6	$ 290.2
Basic Earnings Per Common Share Attributable to Air Products
Income from continuing operations	$ 1.52	$ 1.36
Income (loss) from discontinued operations	$ 0	$ 0.01
Net Income Attributable to Air Products	$ 1.52	$ 1.37
Diluted Earnings Per Common Share Attributable to Air Products
Income from continuing operations	$ 1.5	$ 1.34
Income (loss) from discontinued operations	$ 0	$ 0.01
Net Income Attributable to Air Products	$ 1.5	$ 1.35
Weighted Average Common Shares - Basic (in millions)	214.2	211.8
Weighted Average Common Shares - Diluted (in millions)	216.6	214.3
Dividends Declared Per Common Share - Cash	$ 0.77	$ 0.71

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Inventories (Schedule of Inventory) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Inventories [Abstract]
Finished goods	$ 506.3	$ 493.9
Work in process	37.6	34.1
Raw materials, supplies and other	273.6	283.4
Total FIFO value	817.5	811.4
Less: Excess of FIFO cost over LIFO cost	(107.8)	(105.4)
Inventories	$ 709.7	$ 706.0

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Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Air Products Shareholder's Equity [Abstract]
Common stock, par value	$ 1	$ 1
Common stock, issued shares	249,455,584	249,455,584
Treasury stock, shares	35,181,539	35,917,440

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Commitments and Contingencies (Piedmont) (Narrative) (Details) (Piedmont, Florida [Member], USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2008
Loss Contingencies [Line Items]
Accrual for environmental loss contingencies	$ 18.6	$ 24.0
Years to complete environmental remediation (beginning in 2017)		15 years
Change in estimated exposure	0
Total anticipated exposure at this site		24
Segment Discontinued Operations Member
Loss Contingencies [Line Items]
Pretax environmental expense		$ 24

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Dec. 31, 2014

Accumulated Other Comprehensive Loss Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

The table below summarizes changes in accumulated other comprehensive loss (AOCL), net of tax, attributable to Air Products for the three months ended 31 December 2014:
		Net loss on derivatives qualifying as hedges		Foreign currency translation adjustments		Pension and postretirement benefits		Total
Balance at 30 September 2014		$	(28.5)	$	(268.7)	$	(944.7)	$	(1,241.9)
	Other comprehensive income (loss) before reclassifications		(23.8)		(244.4)		-		(268.2)
	Amounts reclassified from AOCL		13.5		-		20.9		34.4
Net current period other comprehensive income (loss)		$	(10.3)	$	(244.4)	$	20.9	$	(233.8)
Amount attributable to noncontrolling interest			.1		(5.2)		-		(5.1)
Balance at 31 December 2014		$	(38.9)	$	(507.9)	$	(923.8)	$	(1,470.6)

Schedule Of Reclassification Out Of Accumulated Other Comprehensive Income [Table Text Block]

The table below summarizes the reclassifications out of accumulated other comprehensive loss and the affected line item on the consolidated income statements:
			Three Months Ended
			31 December
			2014		2013
(Gain) Loss on Cash Flow Hedges, net of tax
	Sales/Cost of sales	$	(.6)	$	.2
	Other income (expense), net		14.1		(11.9)
	Interest expense		―		(.2)
Total (Gain) Loss on Cash Flow Hedges, net of tax		$	13.5	$	(11.9)
Pension and Postretirement Benefits, net of tax(A)		$	20.9	$	20.0
(A)	The components include items such as prior service cost amortization, actuarial loss amortization, and settlements and are reflected in net periodic benefit cost. Refer to Note 10, Retirement Benefits.

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Equity (Changes in Equity) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Balance, beginning of period	$ 7,521.4	$ 7,198.9
Net Income	332.1	297.8
Other comprehensive income (loss)	(233.8)	52.6
Cash Dividends	(165.4)	(150.3)
Dividends to noncontrolling interests	(6.2)	(4.6)
Share-based compensation	11.9	11.8
Issuance of treasury shares for stock option and award plans	30.1	13.2
Tax benefit of stock option and award plans	13.5	4.8
Purchase of noncontrolling interests	0	(0.5)
Other	(0.3)	(1.0)
Balance, end of period	7,503.3	7,422.7
Air Products Shareholders' Equity [Member]
Balance, beginning of period	7,365.8	7,042.1
Net Income	324.6	290.2
Other comprehensive income (loss)	(228.7)	53.7
Cash Dividends	(165.4)	(150.3)
Dividends to noncontrolling interests	0	0
Share-based compensation	11.9	11.8
Issuance of treasury shares for stock option and award plans	30.1	13.2
Tax benefit of stock option and award plans	13.5	4.8
Purchase of noncontrolling interests	0	(0.5)
Other	(0.3)	(1.0)
Balance, end of period	7,351.5	7,264.0
Noncontrolling Interests [Member]
Balance, beginning of period	155.6	156.8
Net Income	7.5	7.6
Other comprehensive income (loss)	(5.1)	(1.1)
Cash Dividends	0	0
Dividends to noncontrolling interests	(6.2)	(4.6)
Share-based compensation	0	0
Issuance of treasury shares for stock option and award plans	0	0
Tax benefit of stock option and award plans	0	0
Purchase of noncontrolling interests	0	0
Other	0	0
Balance, end of period	$ 151.8	$ 158.7

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Noncontrolling Interests

3 Months Ended

Dec. 31, 2014

Noncontrolling Interests

Noncontrolling Interests

15. NONCONTROLLING INTERESTS

INDURA S.A.

Redeemable Noncontrolling Interest

In 2012, we purchased a 64.8% controlling equity interest in the outstanding shares of Indura S.A. As part of the purchase agreement, the largest minority shareholder in Indura S.A. has the right to exercise a put option to require us to purchase up to a 30.5% equity interest during the two-year period beginning on 1 July 2015, at a redemption value equal to the greater of fair market value or the acquisition date value escalated by an inflation factor (the “floor value”). The put option is not accounted for separate from the minority interest shares that are subject to the put option. The redemption feature of the put option requires classification of the minority shareholder’s interest in the consolidated balance sheet outside of equity under the caption “Redeemable Noncontrolling Interest.”

Adjustments to the value of the redeemable noncontrolling interest due to the redemption feature are recognized as they occur. Currently, the floor value of the redemption feature is in excess of the fair value of the minority interest shares. Because the value of the redeemable noncontrolling interest cannot be less than the floor value, the attribution of net income between Air Products and the minority shareholders is adjusted so that the value of the redeemable noncontrolling interest is not less than the floor value.

The following is a summary of the changes in redeemable noncontrolling interest for the three months ended 31 December:

	2014		2013
Balance at 30 September	$	287.2	$	375.8
Net income		5.4		1.3
Dividends		-		(3.5)
Currency translation adjustment		(3.9)		(14.9)
Balance at 31 December	$	288.7	$	358.7

As of 31 December 2014, we have a 67.3% controlling equity interest in Indura S.A.

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Noncontrolling Interests (Tables)

3 Months Ended

Dec. 31, 2014

Noncontrolling Interests

Redeemable Noncontrolling Interest Rollforward

	2014		2013
Balance at 30 September	$	287.2	$	375.8
Net income		5.4		1.3
Dividends		-		(3.5)
Currency translation adjustment		(3.9)		(14.9)
Balance at 31 December	$	288.7	$	358.7

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Supplemental Information

3 Months Ended

Dec. 31, 2014

Supplemental Information [Abstract]

Supplemental Information

17.SUPPLEMENTAL INFORMATION

As of 31 December 2014, we have classified a 3.875% Eurobond for €300 million ($363.1) maturing in March 2015 as long-term debt because we have the ability to refinance the debt on a long-term basis under our $2,595.0 committed credit facility maturing 30 April 2018. Our current intent is to refinance this debt via the U.S. or European public or private placement markets.

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Accumulated Other Comprehensive Loss (Reclassification) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014		Dec. 31, 2013
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income (Loss) [Line Items]
Other income/expense, net	$ (8.3)		$ (20.4)
Interest expense	29.1		33.3
Net Income Attributable to Air Products	(324.6)		(290.2)
Income (Loss) from discontinued operations, net of tax	0		3.1
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | (Gain) Loss on Cash Flow Hedges [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income (Loss) [Line Items]
Sales/Cost of sales	(0.6)		0.2
Other income/expense, net	14.1		(11.9)
Interest expense	0		(0.2)
Net Income Attributable to Air Products	13.5		(11.9)
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Pension and postretirement benefits [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income (Loss) [Line Items]
Net Income Attributable to Air Products	$ 20.9	[1]	$ 20.0	[1]

[1] The components include items such as prior service cost amortization, actuarial loss amortization, and settlements and are reflected in net periodic benefit cost. Refer to Note 10, Retirement Benefits.

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Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Operating Activities
Net Income	$ 337.5	$ 299.1
Less: Net income attributable to noncontrolling interests	12.9	8.9
Net Income Attributable to Air Products	324.6	290.2
(Income) loss from discontinued operations	0	(3.1)
Income from continuing operations attributable to Air Products	324.6	287.1
Adjustments to reconcile income to cash provided by operating activities:
Depreciation and amortization	235.5	234.2
Deferred income taxes	26.2	33.0
Gain on previously held equity interest	(17.9)	0
Undistributed earnings of unconsolidated affiliates	(31.3)	1.5
Share-based compensation	11.9	11.8
Noncurrent capital lease receivables	(8.1)	(10.0)
Other adjustments	(60.5)	12.7
Working capital changes that provided (used) cash, excluding effects of acquisitions and divestitures:
Trade receivables	22.3	(17.7)
Inventories	(16.0)	11.9
Contracts in progress, less progress billings	6.8	32.6
Other receivables	(27.3)	(0.9)
Payables and accrued liabilities	5.0	(65.2)
Other working capital	15.4	15.2
Cash Provided by Operating Activities	486.6	546.2
Investing Activities
Additions to plant and equipment	(446.5)	(391.1)
Acquisitions, less cash acquired	(22.6)	0
Proceeds from sale of assets and investments	3.7	5.5
Other investing activities	2.2	0
Cash Used for Investing Activities	(463.2)	(385.6)
Financing Activities
Long-term debt proceeds	0.9	1.4
Payments on long-term debt	(38.5)	(434.0)
Net increase (decrease) in commercial paper and short-term borrowings	54.0	339.1
Dividends paid to shareholders	(164.4)	(149.9)
Proceeds from stock option exercises	42.1	19.9
Excess tax benefit from share-based compensation	13.4	4.1
Other financing activities	(19.4)	(18.8)
Cash Provided By (Used for) Financing Activities	(111.9)	(238.2)
Discontinued Operations
Cash provided by operating activities	0	0.7
Cash provided by (used for) investing activities	0	9.8
Cash provided by (used for) financing activities	0	0
Cash Provided by (Used for) Discontinued Operations	0	10.5
Effect of Exchange Rate Changes on Cash	(9.3)	4.3
Increase (Decrease) in Cash and Cash Items	(97.8)	(62.8)
Cash and Cash Items - Beginning of Year	336.6	450.4
Cash and Cash Items - End of Period	238.8	387.6
Less: Cash and Cash Items - Discontinued Operations	0	0
Cash and Cash Items - Continuing Operations	238.8	387.6
Supplemental Cash Flow Information
Cash paid for taxes (net of refunds)	$ 62.5	$ 31.4

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Consolidated Comprehensive Income Statement (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Other Comprehensive Income (Loss), net of tax [Abstract]
Net Income	$ 337.5	$ 299.1
Translation adjustments, net of tax	(244.4)	31.4
Net gain (loss) on derivatives, net of tax	(23.8)	13.1
Pension and postretirement benefits, net of tax	0	0
Reclassification Adjustments [Abstract]
Currency translation adjustment	0	0
Derivatives, net of tax	13.5	(11.9)
Pension and postretirement benefits, net of tax	20.9	20.0
Total Other Comprehensive Income (Loss)	(233.8)	52.6
Comprehensive Income	103.7	351.7
Net income attributable to noncontrolling interests	12.9	8.9
Other Comprehensive Income (Loss) Attributable to Noncontrolling Interests	(5.1)	(1.1)
Comprehensive Income Attributable to Air Products	$ 95.9	$ 343.9

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Retirement Benefits

3 Months Ended

Dec. 31, 2014

Retirement Benefits [Abstract]

Retirement Benefits

10. RETIREMENT BENEFITS

The components of net periodic benefit cost for the defined benefit pension and other postretirement benefit plans for the threemonths ended 31 December 2014 and 2013 were as follows:

	Pension Benefits								Other Benefits
	2014				2013				2014		2013
Three Months Ended 31 December	U.S.		International		U.S.		International
Service cost	$	10.6	$	8.2	$	10.7	$	8.8	$	.7	$	.8
Interest cost		31.2		15.0		32.7		16.6		.6		.6
Expected return on plan assets		(50.5)		(21.1)		(47.0)		(19.2)		-		-
Prior service cost amortization		.7		-		.7		.1		-		-
Actuarial loss amortization		19.8		10.5		19.6		8.8		.2		.4
Settlement and curtailment charges		(.1)		(.1)		-		-		-		-
Special termination benefits		2.7		-		.2		-		-		-
Other		1.1		.5		-		.5		-		-
Net periodic benefit cost	$	15.5	$	13.0	$	16.9	$	15.6	$	1.5	$	1.8

Net periodic benefit cost is primarily included in cost of sales and selling and administrative expense on our consolidated income statements. The amount of net periodic benefit cost capitalized in 2014 and 2013 was not material.

For the three months ended 31 December 2014 and 2013, our cash contributions to funded pension plans and benefit payments under unfunded pension plans were $76.4 and $31.4 , respectively. Total contributions for fiscal 2015 are expected to be approximately $130 to $150. During fiscal 2014, total contributions were $78.2.

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Document Entity Information	3 Months Ended
	Dec. 31, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--09-30
Entity Registrant Name	AIR PRODUCTS & CHEMICALS INC /DE/
Entity Central Index Key	0000002969
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	214,274,045

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Commitments and Contingencies

3 Months Ended

Dec. 31, 2014

Commitments And Contingencies [Abstract]

Commitments and Contingencies

11.COMMITMENTS AND CONTINGENCIES

Litigation

We are involved in various legal proceedings, including competition, environmental, health, safety, product liability, and insurance matters. In September 2010, the Brazilian Administrative Council for Economic Defense (CADE) issued a decision against our Brazilian subsidiary, Air Products Brasil Ltda., and several other Brazilian industrial gas companies for alleged anticompetitive activities. CADE imposed a civil fine of R$179.2 million (approximately $67 at 31 December 2014) on Air Products Brasil Ltda. This fine was based on a recommendation by a unit of the Brazilian Ministry of Justice, whose investigation began in 2003, alleging violation of competition laws with respect to the sale of industrial and medical gases. The fines are based on a percentage of our total revenue in Brazil in 2003.

We have denied the allegations made by the authorities and filed an appeal in October 2010 with the Brazilian courts. On 6 May 2014, our appeal was granted and the fine against Air Products Brasil Ltda. was dismissed. CADE has appealed that ruling and the matter remains pending. We, with advice of our outside legal counsel, have assessed the status of this matter and have concluded that, although an adverse final judgment after exhausting all appeals is possible, such a judgment is not probable. As a result, no provision has been made in the consolidated financial statements. We estimate the maximum possible loss to be the full amount of the fine of R$179.2 million (approximately $67 at 31 December 2014) plus interest accrued thereon until final disposition of the proceedings.

While we do not expect that any sums we may have to pay in connection with this or any other legal proceeding would have a material adverse effect on our consolidated financial position or net cash flows, a future charge for regulatory fines or damage awards could have a significant impact on our net income in the period in which it is recorded.

Environmental

In the normal course of business, we are involved in legal proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA: the federal Superfund law); Resource Conservation and Recovery Act (RCRA); and similar state and foreign environmental laws relating to the designation of certain sites for investigation or remediation. Presently, there are approximately 36 sites on which a final settlement has not been reached where we, along with others, have been designated a potentially responsible party by the Environmental Protection Agency or are otherwise engaged in investigation or remediation, including cleanup activity at certain of our current and former manufacturing sites. We continually monitor these sites for which we have environmental exposure.

Accruals for environmental loss contingencies are recorded when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The consolidated balance sheets at 31 December 2014 and 30September 2014 included an accrual of $84.8 and $86.2, respectively, primarily as part of other noncurrent liabilities. The environmental liabilities will be paid over a period of up to 30 years. We estimate the exposure for environmental loss contingencies to range from $84 to a reasonably possible upper exposure of $98 as of 31 December 2014.

Actual costs to be incurred at identified sites in future periods may vary from the estimates, given inherent uncertainties in evaluating environmental exposures. Using reasonably possible alternative assumptions of the exposure level could result in an increase to the environmental accrual. Due to the inherent uncertainties related to environmental exposures, a significant increase to the reasonably possible upper exposure level could occur if a new site is designated, the scope of remediation is increased, a different remediation alternative is identified, or a significant increase in our proportionate share occurs. We do not expect that any sum we may have to pay in connection with environmental matters in excess of the amounts recorded or disclosed above would have a material adverse impact on our financial position or results of operations in any one year.

PACE

At 31 December 2014, $31.7 of the environmental accrual was related to the Pace facility.

In 2006, we sold our Amines business, which included operations at Pace, Florida and recognized a liability for retained environmental obligations associated with remediation activities at Pace. We are required by the Florida Department of Environmental Protection (FDEP) and the United States Environmental Protection Agency (USEPA) to continue our remediation efforts. We estimated that it would take 20 years to complete the groundwater remediation, and the costs through completion were estimated to range from $42 to $52 . As no amount within the range was a better estimate than another, we recognized a pretax expense in fiscal 2006 of $42 as a component of income from discontinued operations and recorded an environmental accrual of $42 in continuing operations on the consolidated balance sheets. There has been no change to the estimated exposure range related to the Pace facility.

We have implemented many of the remedial corrective measures at the Pace facility required under 1995 Consent Orders issued by the FDEP and the USEPA. Contaminated soils have been bioremediated, and the treated soils have been secured in a lined on-site disposal cell. Several groundwater recovery systems have been installed to contain and remove contamination from groundwater. We completed an extensive assessment of the site to determine how well existing measures are working, what additional corrective measures may be needed, and whether newer remediation technologies that were not available in the 1990s might be suitable to more quickly and effectively remove groundwater contaminants. Based on assessment results, we completed a focused feasibility study that has identified alternative approaches thatmay more effectively remove contaminants. We continue to review alternative remedial approaches with the FDEP. In the first quarter of 2015, we entered into a new Consent Order with the FDEP requiring us to continue our remediation efforts at the Pace facility. We expect the costs we will incur under the new Consent Order to be consistent with our previous estimates.

PIEDMONT

At 31 December 2014, $18.6 of the environmental accrual was related to the Piedmont site.

On 30 June 2008, we sold our Elkton, Maryland and Piedmont, South Carolina production facilities and the related North American atmospheric emulsions and global pressure sensitive adhesives businesses. In connection with the sale, we recognized a liability for retained environmental obligations associated with remediation activities at the Piedmont site. This site is under active remediation for contamination caused by an insolvent prior owner. We are required by the South Carolina Department of Health and Environmental Control to address both contaminated soil and groundwater. Numerous areas of soil contamination have been addressed, and contaminated groundwater is being recovered and treated. We estimate that it will take until 2017 to complete source area remediation and another 15 years thereafter to complete groundwater recovery, with costs through completion estimated to be $24. We recognized a pretax expense in 2008 of $24 as a component of income from discontinued operations and recorded an environmental liability of $24 in continuing operations on the consolidated balance sheets. There has been no change to the estimated exposure.

PASADENA

At 31 December 2014, $12.1of the environmental accrual was related to the Pasadena site.

During the fourth quarter of 2012, management committed to permanently shutting down our polyurethane intermediates (PUI) production facility in Pasadena, Texas. In shutting down and dismantling the facility, we have undertaken certain obligations related to soil and groundwater contaminants. We have been pumping and treating groundwater to control off-site contaminant migration in compliance with regulatory requirements and under the approval of the Texas Commission on Environmental Quality (TCEQ). We estimate that the pump and treat system will continue to operate for 30 years subsequent to the shutdown of the PUI production facility. We plan to perform additional work to address other environmental obligations at the site. This additional work includes investigating solid waste management units, which are now accessible as a result of the shutdown, remediating as required impacted soils, performing post closure care for two closed RCRA surface impoundment units and establishing engineering controls. In 2012, we estimated the total exposure at this site to be $13. There has been no change to the estimated exposure.

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Consolidated Comprehensive Income Statements (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Consolidated Comprehensive Income Statements [Abstract]
Tax effect on translation adjustments	$ 16.1	$ (13.6)
Tax effect on net gain (loss) on derivatives	(11.4)	4.8
Tax effect on pension and postretirement benefits	0	0
Tax effect on derivatives reclassified to earnings	5.4	(4.4)
Tax effect on pension and post retirement benefits reclassified	$ 10.1	$ 9.6

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Business Combinations

3 Months Ended

Dec. 31, 2014

Business Combinations

Business Combinations

5.BUSINESS COMBINATIONS

On 30 December 2014, we acquired our partner’s equity ownership interest in a liquefied industrial gases production joint venture in North America for $22.6, which increased our ownership from 50% to 100%. The transaction was accounted for as a business combination, and subsequent to the acquisition, the results are consolidated within our Industrial Gases – Americas segment. The assets acquired, primarily plant and equipment, were recorded at their fair market values as of the acquisition date.

The acquisition date fair value of the previously held equity interest was determined using a discounted cash flow analysis under the income approach. The three months ended 31 December 2014 include a gain of $17.9 ($11.2 after-tax, or $.05 per share) as a result of revaluing our previously held equity interest to fair value as of the acquisition date. This gain is reflected on the consolidated income statements as “Gain on previously held equity interest.”

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Business Restructuring and Cost Reduction Actions

3 Months Ended

Dec. 31, 2014

Business Restructuring and Cost Reduction Actions [Abstract]

Business Restructuring and Cost Reduction Actions

4.BUSINESS RESTRUCTURING AND COST REDUCTION ACTIONS

The charges we record for business restructuring and cost reduction actions have been excluded from segment operating income and are reflected on the consolidated income statements as “Business Restructuring and Cost Reduction Actions.”

Business Realignment and Reorganization

On 18 September 2014, we announced plans to reorganize the Company, including realignment of our businesses in new reporting segments and other organizational changes, effective as of 1 October 2014. Refer to Note 18, Business Segment Information, for additional details. As a result of this reorganization, we will incur ongoing severance and other charges.

During the fourth quarter of 2014, an expense of $12.7 ($8.2 after-tax, or $.04 per share) was incurred relating to the elimination of approximately 50 positions. The 2014 charge related to the segment level as follows: $2.9 in Industrial Gases – Americas, $3.1 in Industrial Gases – EMEA, $1.5 in Industrial Gases – Asia, $1.5 in Industrial Gases – Global, $1.6 in Materials Technologies, and $2.1 in Corporate and other.

In the first quarter of 2015, we recognized an expense of $32.4 ($21.7 after-tax, or $.10 per share) related to the elimination of approximately 450 positions.The 2015 charge related to the segment level as follows: $5.1 in Industrial Gases – Americas, $2.6 in Industrial Gases – EMEA, $2.7 in Industrial Gases – Asia, $1.3 in Industrial Gases – Global, $8.1 in Materials Technologies, and $12.6 in Corporate and other.

The following table summarizes the carrying amount of the accrual for the business realignment and reorganization
at 31 December 2014:
	Severance and
	Other Benefits
2014 Charge	$	12.7
Cash expenditures		(2.2)
30 September 2014	$	10.5
2015 Charge	$	32.4
Amount reflected in pension liability		(2.7)
Cash expenditures		(25.0)
Currency translation adjustment		(.1)
31 December 2014	$	15.1

2013 Plan

During the fourth quarter of 2013, we recorded an expense of $231.6 ($157.9 after-tax, or $.74 per share) reflecting actions to better align our cost structure with current market conditions. The asset and contract actions primarily impacted the Electronics Materials business due to continued weakness in the photovoltaic (PV) and light-emitting diode (LED) markets. The severance and other contractual benefits primarily impacted our Industrial Gases businesses and corporate functions in response to weaker than expected business conditions in Europe and Asia, reorganization of our operations and functional areas, and previously announced senior executive changes. The remaining planned actions were completed in the first quarter of 2015.

The following table summarizes the carrying amount of the accrual for the 2013 Plan at 31 December 2014:
	Severance and		Asset		Contract
	Other Benefits		Actions		Actions/Other		Total
2013 Charge	$	71.9	$	100.4	$	59.3	$	231.6
Amount reflected in pension liability		(6.9)		-		-		(6.9)
Noncash expenses		-		(100.4)		-		(100.4)
Cash expenditures		(3.0)		-		(58.5)		(61.5)
Currency translation adjustment		.4		-		-		.4
30 September 2013	$	62.4	$	-	$	.8	$	63.2
Cash expenditures		(51.7)		-		(.8)		(52.5)
Currency translation adjustment		(.6)		-		-		(.6)
30 September 2014	$	10.1	$	-	$	-	$	10.1
Cash expenditures		(7.1)		-		-		(7.1)
Currency translation adjustment		(.1)		-		-		(.1)
31 December 2014	$	2.9	$	-	$	-	$	2.9

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Earnings per Share

3 Months Ended

Dec. 31, 2014

Earnings Per Share

Earnings per Share

16. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share (EPS):

		Three Months Ended
		31 December
		2014		2013
Numerator
Income from continuing operations		$	324.6	$	287.1
Income from discontinued operations			-		3.1
Net Income Attributable to Air Products		$	324.6	$	290.2
Denominator (in millions)
Weighted average number of common shares — Basic			214.2		211.8
Effect of dilutive securities
	Employee stock option and other award plans		2.4		2.5
Weighted average number of common shares — Diluted			216.6		214.3
Basic EPS Attributable to Air Products
Income from continuing operations		$	1.52	$	1.36
Income from discontinued operations			-		.01
Net Income Attributable to Air Products		$	1.52	$	1.37
Diluted EPS Attributable to Air Products
Income from continuing operations		$	1.50	$	1.34
Income from discontinued operations			-		.01
Net Income Attributable to Air Products		$	1.50	$	1.35

For the three months ended 31 December 2014 and 2013, outstanding share-based awards of .4 million and .8 million shares were antidilutive and therefore excluded from the computation of diluted earnings per share.

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Share-Based Compensation

3 Months Ended

Dec. 31, 2014

Share-Based Compensation [Abstract]

Share-Based Compensation

12. SHARE-BASED COMPENSATION

We have various share-based compensation programs, which include deferred stock units, stock options, and restricted stock.Under all programs, the terms of the awards are fixed at the grant date. We issue shares from treasury stock upon the payout of deferred stock units, the exercise of stock options, and the issuance of restricted stock awards. As of 31 December 2014, there were 5,057,910 shares available for future grant under our Long-Term Incentive Plan, which is shareholder approved.

Share-based compensation cost recognized in the consolidated income statement is summarized below:
	Three Months Ended 31 December		2014		2013
	Before-Tax Share-Based Compensation Cost	$	11.9	$	11.8
	Income Tax Benefit		(4.0)		(4.3)
	After-Tax Share-Based Compensation Cost	$	7.9	$	7.5

Before-tax share-based compensation cost is primarily included in selling and administrative expense on our consolidated income statements. The amount of share-based compensation cost capitalized in 2015 and 2014 was not material.

Deferred Stock Units

During the three months ended 31 December 2014, we granted 116,111 market-based deferred stock units. The market-based deferred stock units vest as long as the employee continues to be employed by the Company and upon the achievement of the performance target. The performance target, which is approved by the Compensation Committee, is the Company’s relative total shareholder return in relation to a defined peer group over the three year performance period beginning 1 October 2014 and ending 30 September 2017.

The market-based deferred stock units had an estimated grant-date fair value of $194.51per unit. The grant-date fair value was estimated using a Monte Carlo simulation model as these equity awards were tied to a market condition. The model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the grant and calculates the fair value of the awards. We generally expense the grant-date fair value of these awards on a straight line basis over the vesting period. The calculation of the fair value of market-based deferred stock units used the following assumptions:

Expected volatility	19.6	%
Risk-free interest rate	.9	%
Expected dividend yield	2.5	%

In addition, during the three months ended 31 December 2014, we granted 126,504 time-based deferred stock units at a weighted-average grant-date fair value of $144.14 .

Stock Options

During the three months ended 31 December 2014, we granted 175,829 stock options at a weighted-average exercise price of $ 144.09 and an estimated fair value of $ 37.19 per option. The fair value of these options was estimated using a Black-Scholes option valuation model that used the following assumptions:

Expected volatility	30.3	%
Expected dividend yield	2.6	%
Expected life (in years)	7.5
Risk-free interest rate	2.2	%

Restricted Stock

During the three months ended 31 December 2014, we issued 19,691 restricted shares at a weighted-average grant-date fair value of $ 144.09 .

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Financial Instruments

3 Months Ended

Dec. 31, 2014

Financial Instruments [Abstract]

Financial Instruments

8.FINANCIAL INSTRUMENTS

Currency Price Risk Management

Our earnings, cash flows, and financial position are exposed to foreign currency risk from foreign currency-denominated transactions and net investments in foreign operations. It is our policy to minimize our cash flow volatility from changes in currency exchange rates. This is accomplished by identifying and evaluating the risk that our cash flows will change in value due to changes in exchange rates and by executing the appropriate strategies necessary to manage such exposures. Our objective is to maintain economically balanced currency risk management strategies that provide adequate downside protection.

Forward Exchange Contracts

We enter into forward exchange contracts to reduce the cash flow exposure to foreign currency fluctuations associated with highly anticipated cash flows and certain firm commitments, such as the purchase of plant and equipment. We also enter into forward exchange contracts to hedge the cash flow exposure on intercompany loans. The portfolio of forward exchange contracts consists primarily of Euros and British Pound Sterling as well as Euros and U.S. dollars. The maximum remaining term of any forward exchange contract currently outstanding and designated as a cash flow hedge at 31 December 2014 is 3.7 years.

Forward exchange contracts are also used to hedge the value of investments in certain foreign subsidiaries and affiliates by creating a liability in a currency in which we have a net equity position. The primary currency pair in this portfolio of forward exchange contracts is the Euro/U.S. dollar.

In addition to the forward exchange contracts that are designated as hedges, we utilize forward exchange contracts that are not designated as hedges. These contracts are used to economically hedge foreign currency-denominated monetary assets and liabilities, primarily working capital. The primary objective of these forward exchange contracts is to protect the value of foreign currency-denominated monetary assets and liabilities from the effects of volatility in foreign exchange rates that might occur prior to their receipt or settlement. This portfolio of forward exchange contracts comprises many different foreign currency pairs, with a profile that changes from time to time depending on business activity and sourcing decisions.

The table below summarizes our outstanding currency price risk management instruments:

			31 December 2014		30 September 2014
				Years			Years
			US$	Average		US$	Average
			Notional	Maturity		Notional	Maturity
Forward Exchange Contracts:
	Cash flow hedges	$	3,243.5	.6	$	2,965.5	.7
	Net investment hedges		660.5	2.6		685.9	2.9
	Not designated		1,079.6	.5		381.5	.1
Total Forward Exchange Contracts		$	4,983.6	.8	$	4,032.9	1.0

In addition to the above, we use foreign currency-denominated debt to hedge the foreign currency exposures of our net investment in certain foreign subsidiaries. The designated foreign currency denominateddebt and related accrued interest included€900.0million ($1,089.3) and Chinese Renminbi922.7 million ($148.6)at 31 December 2014 and €879.3 million ($1,110.6) and Chinese Renminbi900.9 million ($146.8) at 30September 2014.The designated foreign currency-denominated debt is located on the balance sheet in the long-term debt and short-term borrowings line items.

Debt Portfolio Management

It is our policy to identify on a continuing basis the need for debt capital and evaluate the financial risks inherent in funding the Company with debt capital. Reflecting the result of this ongoing review, the debt portfolio and hedging program are managed with the objectives and intent to (1) reduce funding risk with respect to borrowings made by us to preserve our access to debt capital and provide debt capital as required for funding and liquidity purposes, and (2) manage the aggregate interest rate risk and the debt portfolio in accordance with certain debt management parameters.

Interest Rate Management Contracts

We enter into interest rate swaps to change the fixed/variable interest rate mix of our debt portfolio in order to maintain the percentage of fixed- and variable-rate debt within the parameters set by management. In accordance with these parameters, the agreements are used to manage interest rate risks and costs inherent in our debt portfolio. Our interest rate management portfolio generally consists of fixed-to-floating interest rate swaps (which are designated as fair value hedges), pre-issuance interest rate swaps and treasury locks (which hedge the interest rate risk associated with anticipated fixed-rate debt issuances and are designated as cash flow hedges), and floating-to-fixed interest rate swaps (which are designated as cash flow hedges). At 31 December 2014, the outstanding interest rate swaps were denominated in U.S. dollars, Euros, and Chilean Pesos. The maximum remaining term of any interest rate swap designated as a cash flow hedge is 0.2 years. The notional amount of the interest rate swap agreements is equal to or less than the designated debt being hedged. When interest rate swaps are used to hedge variable-rate debt, the indices of the swaps and the debt to which they are designated are the same. It is our policy not to enter into any interest rate management contracts that lever a move in interest rates on a greater than one-to-one basis.

Cross Currency Interest Rate Swap Contracts

We enter into cross currency interest rate swap contracts when our risk management function deems necessary. These contracts may entail both the exchange of fixed- and floating-rate interest payments periodically over the life of the agreement and the exchange of one currency for another currency at inception and at a specified future date. These contracts effectively convert the currency denomination of a debt instrument into another currency in which we have a net equity position while changing the interest rate characteristics of the instrument. The contracts are used to hedge either certain net investments in foreign operations or nonfunctional currency cash flows related to intercompany loans. The current cross currency interest rate swap portfolio consists of fixed-to-fixed swaps between U.S. dollars and Chilean Pesos, U.S. dollars and offshore Chinese Renminbi, U.S. dollars and British Pound Sterling, as well as U.S. dollars and Euros.

The following table summarizes our outstanding interest rate management contracts and cross currency interest rate swaps:

			31 December 2014							30 September 2014
						Average		Years					Average		Years
		US$		Average		Receive		Average	US$		Average		Receive		Average
		Notional		Pay %		%		Maturity	Notional		Pay %		%		Maturity
Interest rate swaps (fair value hedge)		$	600.0	LIBOR		2.77	%	4.0	$	600.0	LIBOR		2.77	%	4.3
Cross currency interest rate swaps
	(net investment hedge)	$	773.1	3.43	%	2.01	%	3.5	$	404.5	3.70	%	1.15	%	2.7
Interest rate swaps (cash flow hedge)		$	392.6	2.12	%	.43	%	.2	$	431.7	2.36	%	.71	%	.4
Cross currency interest rate swaps
	(cash flow hedge)	$	483.9	3.46	%	2.86	%	4.0	$	446.3	3.39	%	2.86	%	4.2
Cross currency interest rate swaps
	(not designated)	$	-	-	%	-	%	-	$	15.4	3.62	%	.05	%	.8

The table below summarizes the fair value and balance sheet location of our outstanding derivatives:

		Balance Sheet	31 December		30 September		Balance Sheet	31 December		30 September
		Location	2014		2014		Location	2014		2014
Derivatives Designated as
	Hedging Instruments:
Forward exchange contracts		Other receivables	$	104.5	$	78.9	Accrued liabilities	$	109.0	$	61.8
Interest rate management contracts		Other receivables		25.5		21.1	Accrued liabilities		31.2		18.8
		Other noncurrent					Other noncurrent
Forward exchange contracts		assets		31.8		10.5	liabilities		2.6		3.1
		Other noncurrent					Other noncurrent
Interest rate management contracts		assets		77.9		54.6	liabilities		-		.3
Total Derivatives Designated as
	Hedging Instruments		$	239.7	$	165.1		$	142.8	$	84.0
Derivatives Not Designated as
	Hedging Instruments:
Forward exchange contracts		Other receivables	$	3.2	$	4.0	Accrued liabilities	$	1.6	$	1.9
Interest rate management contracts		Other receivables		-		2.6	Accrued liabilities		-		-
Total Derivatives Not Designated as
	Hedging Instruments		$	3.2	$	6.6		$	1.6	$	1.9
Total Derivatives			$	242.9	$	171.7		$	144.4	$	85.9

The table below summarizes the gain or loss related to our cash flow hedges, fair value hedges, net investment hedges, and derivatives not designated as hedging instruments:

		Three Months Ended 31 December
		Forward				Foreign Currency
		Exchange Contracts				Debt				Other (A)				Total
		2014		2013		2014		2013		2014		2013		2014		2013
Cash Flow Hedges, net of tax:
Net gain (loss) recognized in OCI
	(effective portion)	$	(24.0)	$	14.3	$	-	$	-	$	.2	$	(1.2)	$	(23.8)	$	13.1
Net (gain) loss reclassified from OCI
	to sales/cost of sales (effective portion)		(.6)		.2		-		-		-		-		(.6)		.2
Net (gain) loss reclassified from OCI to other
	income (expense), net (effective portion)		18.8		(12.7)		-		-		(5.2)		1.4		13.6		(11.3)
Net (gain) loss reclassified from OCI
	to interest expense (effective portion)		(.3)		-		-		-		.3		(.2)		-		(.2)
Net (gain) loss reclassified from OCI to other
	income (expense), net (ineffective portion)		.5		(.6)		-		-		-		-		.5		(.6)
Fair Value Hedges:
Net gain (loss) recognized in interest expense (B)		$	-	$	-	$	-	$	-	$	3.5	$	(4.4)	$	3.5	$	(4.4)
Net Investment Hedges, net of tax:
Net gain (loss) recognized in OCI		$	20.1	$	(9.9)	$	31.1	$	(13.6)	$	10.1	$	5.1	$	61.3	$	(18.4)
Derivatives Not Designated as Hedging Instruments:
Net gain (loss) recognized in other income (expense), net (C)		$	.2	$	.1	$	-	$	-	$	-	$	-	$	.2	$	.1

^(A) Other includes the impact on other comprehensive income (OCI) and earnings primarily related to interest rate and cross currency interest

rate swaps.

^(B) The impact of fair value hedges noted above was largely offset by gains and losses resulting from the impact of changes in

related interest rates on recognized outstanding debt.

^(C) The impact of the non-designated hedges noted above was largely offset by gains and losses, respectively, resulting from the

impact of changes in exchange rates on recognized assets and liabilities denominated in nonfunctional currencies.

The amount of cash flow hedges’ unrealized gains and losses at 31 December 2014 that are expected to be reclassified to earnings in the next twelve months is not material.

The cash flows related to all derivative contracts are reported in the operating activities section of the consolidated statements of cash flows.

Credit Risk-Related Contingent Features

Certain derivative instruments are executed under agreements that require us to maintain a minimum credit rating with both Standard & Poor’s and Moody’s. If our credit rating falls below this threshold, the counterparty to the derivative instruments has the right to request full collateralization on the derivatives’ net liability position. The net liability position of derivatives with credit risk-related contingent features was $11.7 as of 31 December 2014 and $2.1 as of 30 September2014. Because our current credit rating is above the various pre-established thresholds, no collateral has been posted on these liability positions.

Counterparty Credit Risk Management

We execute financial derivative transactions with counterparties that are highly rated financial institutions, all of which are investment grade at this time. Some of our underlying derivative agreements give us the right to require the institution to post collateral if its credit rating falls below the pre-established thresholds with Standard & Poor’s or Moody’s. These are the same agreements referenced in Credit Risk-Related Contingent Features above. The collateral that the counterparties would be required to post was $159.8 as of 31 December 2014 and $107.8 as of 30 September 2014. No financial institution is required to post collateral at this time, as all have credit ratings at or above the threshold.

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Commitments and Contingencies (Pasadena) (Narrative) (Details) (Pasadena Texas Member [Member], USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Sep. 30, 2012
Pasadena Texas Member [Member]
Loss Contingencies [Line Items]
Accrual for environmental loss contingencies	$ 12.1
Years to complete environmental remediation		30 years
Total anticipated exposure at this site			13
Change in estimated exposure	$ 0

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Inventories

3 Months Ended

Dec. 31, 2014

Inventory Disclosure [Abstract]

Inventories

6. INVENTORIES

The components of inventories are as follows:

	31 December		30 September
	2014		2014
Finished goods	$	506.3	$	493.9
Work in process		37.6		34.1
Raw materials, supplies and other		273.6		283.4
	$	817.5	$	811.4
Less: Excess of FIFO cost over LIFO cost		(107.8)		(105.4)
	$	709.7	$	706.0

First-in, first-out (FIFO) cost approximates replacement cost. Our inventories generally have a high turnover, and as a result, there is little difference between the original cost of an item and its current replacement cost.

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Goodwill

3 Months Ended

Dec. 31, 2014

Goodwill Disclosure [Abstract]

Goodwill

7. GOODWILL

Changes to the carrying amount of consolidated goodwill by segment for the three months ended 31 December 2014are as follows:

	Industrial		Industrial		Industrial		Industrial
	Gases–		Gases–		Gases–		Gases–		Materials
	Americas		EMEA		Asia		Global		Technologies			Total
Balance at 30 September 2014	$	327.2	$	433.3	$	140.0	$	21.4	$	315.4	$	1,237.3
Acquisitions and adjustments		2.2		-		-		-		-		2.2
Currency translation and other		(3.1)		(21.8)		(4.0)		(.8)		(9.1)		(38.8)
Balance at 31 December 2014	$	326.3	$	411.5	$	136.0	$	20.6	$	306.3	$	1,200.7

		31 December		30 September
		2014		2014
Goodwill, gross	$	1,481.6	$	1,522.1
Accumulated impairment losses(A)		(280.9)		(284.8)
Goodwill, net	$	1,200.7	$	1,237.3
(A)Amount is attributable to the Industrial Gases – Americas segment and includes currency translation of $24.3 and $20.4 as of 31 December 2014
and 30 September 2014, respectively.

Due to the reorganization of our business effective as of 1 October 2014, we conducted a goodwill impairment test in the first quarter of 2015. We determined that the fair value of each of our reporting units exceptLatin America within the Industrial Gases – Americassegmentsubstantially exceeded the carrying value. The fair value of the Latin America reporting unit exceeded its carrying value, and no impairment of goodwill was recorded. We previously recorded an impairment of goodwill of $305.2 related to this reporting unit in the fourth quarter of 2014. The carrying value of goodwill for the Latin America reporting unit at 31 December 2014 was $229.7.

The fair value of the Latin America reporting unit at 1 October 2014 was estimated based on a similar outlook and assumptions as those used for the testing at 30 September 2014. Management judgment is required in the determination of each assumption utilized in the valuation model, and actual results could differ from the estimates. We will continue to evaluate goodwill on an annual basis as of the beginning of our fourth fiscal quarter and whenever there are indicators of potential impairment.

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Fair Value Measurements

3 Months Ended

Dec. 31, 2014

Fair Value Measurements [Abstract]

Fair Value Measurements

9.FAIR VALUE MEASUREMENTS

Fair value is defined as an exit price, i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows:

Level  1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level  2—Inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability.

Level  3—Inputs that are unobservable for the asset or liability based on our own assumptions (about the assumptions marketparticipants would use in pricing the asset or liability).

The methods and assumptions used to measure the fair value of financial instruments are as follows:

Derivatives

The fair value of our interest rate management contracts and forward exchange contracts are quantified using the income approach and are based on estimates using standard pricing models. These models take into account the value of future cash flows as of the balance sheet date, discounted to a present value using discount factors that match both the time to maturity and currency of the underlying instruments. The computation of the fair values of these instruments is generally performed by the Company. These standard pricing models utilize inputs which are derived from or corroborated by observable market data such as interest rate yield curves and currency spot and forward rates. In addition, on an ongoing basis, we randomly test a subset of our valuations against valuations received from the transaction’s counterparty to validate the accuracy of our standard pricing models. Counterparties to these derivative contracts are highly rated financial institutions.

Refer to Note 8, Financial Instruments, for a description of derivative instruments, including details on the balance sheet lineclassifications.

Long-term Debt

The fair value of our debt is based on estimates using standard pricing models that take into account the value of future cash flows as of the balance sheet date, discounted to a present value using discount factors that match both the time to maturity and currency of the underlying instruments. These standard valuation models utilize observable market data such as interest rate yield curves and currency spot rates. Therefore, the fair value of our debt is classified as a level 2 measurement. We generally perform the computation of the fair value of these instruments.

The carrying values and fair values of financial instruments were as follows:

		31 December 2014				30 September 2014
		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets
Derivatives
	Forward exchange contracts	$	139.5	$	139.5	$	93.4	$	93.4
	Interest rate management contracts		103.4		103.4		78.3		78.3
Liabilities
Derivatives
	Forward exchange contracts	$	113.2	$	113.2	$	66.8	$	66.8
	Interest rate management contracts		31.2		31.2		19.1		19.1
Long-term debt, including current portion			4,805.5		5,078.7		4,889.8		5,130.7

The carrying amounts reported in the balance sheet for cash and cash items, trade receivables, payables and accrued liabilities, accrued income taxes, and short-term borrowings approximate fair value due to the short-term nature of these instruments. Accordingly, these items have been excluded from the above table.

The following table summarizes assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets:
			31 December 2014								30 September 2014
			Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
	Assets at Fair Value
	Derivatives
		Forward exchange contracts	$	139.5	$	-	$	139.5	$	-	$	93.4	$	-	$	93.4	$	-
		Interest rate management contracts		103.4		-		103.4		-		78.3		-		78.3		-
	Total Assets at Fair Value		$	242.9	$	-	$	242.9	$	-	$	171.7	$	-	$	171.7	$	-
	Liabilities at Fair Value
	Derivatives
		Forward exchange contracts	$	113.2	$	-	$	113.2	$	-	$	66.8	$	-	$	66.8	$	-
		Interest rate management contracts		31.2		-		31.2		-		19.1		-		19.1		-
	Total Liabilities at Fair Value		$	144.4	$	-	$	144.4	$	-	$	85.9	$	-	$	85.9	$	-

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Share-Based Compensation (Stock Option Valuation Assumptions) (Details) (Stock Options [Member])	3 Months Ended
	Dec. 31, 2014
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Award [Line Items]
Expected volatility	30.30%
Expected dividend yield	2.60%
Expected life (in years)	7 years 6 months
Risk-free interest rate	2.20%

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Equity (Changes in Equity) (Parenthetical) (Details) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Statement of Stockholders' Equity [Abstract]
Dividends per share	$ 0.77	$ 0.71

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Share-Based Compensation (Market-Based Deferred Stock Units Valuation Assumptions) (Details) (Market-Based Deferred Stock Units [Member])	3 Months Ended
	Dec. 31, 2014
Market-Based Deferred Stock Units [Member]
Share-based Compensation Arrangement by Share-based Award [Line Items]
Expected volatility	19.60%
Risk-free interest rate	0.90%
Expected dividend yield	2.50%

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Equity (Tables)

3 Months Ended

Dec. 31, 2014

Stockholders' Equity Note [Abstract]

Equity [Table Text Block]

	Three Months Ended 31 December
	2014						2013
			Non-						Non-
	Air		controlling		Total		Air		controlling		Total
	Products		Interests		Equity		Products		Interests		Equity
Balance at 30 September	$	7,365.8	$	155.6	$	7,521.4	$	7,042.1	$	156.8	$	7,198.9
Net income (A)		324.6		7.5		332.1		290.2		7.6		297.8
Other comprehensive income (loss)		(228.7)		(5.1)		(233.8)		53.7		(1.1)		52.6
Dividends on common stock (per share $.77, $.71)		(165.4)		-		(165.4)		(150.3)		-		(150.3)
Dividends to noncontrolling interests		-		(6.2)		(6.2)		-		(4.6)		(4.6)
Share-based compensation		11.9		-		11.9		11.8		-		11.8
Issuance of treasury shares for stock option and
award plans		30.1		-		30.1		13.2		-		13.2
Tax benefit of stock option and award plans		13.5		-		13.5		4.8		-		4.8
Purchase of noncontrolling interests		-		-		-		(.5)		-		(.5)
Other equity transactions		(.3)		-		(.3)		(1.0)		-		(1.0)
Balance at 31 December	$	7,351.5	$	151.8	$	7,503.3	$	7,264.0	$	158.7	$	7,422.7
(A)Net income attributable to noncontrolling interests excludes net income related to redeemable noncontrolling interests, which
is not included in total equity. Refer to Note 15, Noncontrolling Interests, for additional information.

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Financial Instruments (Fair Value of Derivative Instruments) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Derivative [Line Items]
Total Derivatives, Assets	$ 242.9	$ 171.7
Total Derivatives, Liabilities	144.4	85.9
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Total Derivatives, Assets	239.7	165.1
Total Derivatives, Liabilities	142.8	84.0
Designated as Hedging Instrument [Member] | Other Receivables [Member] | Interest rate management contract [Member]
Derivative [Line Items]
Total Derivatives, Assets	25.5	21.1
Designated as Hedging Instrument [Member] | Other Receivables [Member] | Forward Exchange Contracts [Member]
Derivative [Line Items]
Total Derivatives, Assets	104.5	78.9
Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Interest rate management contract [Member]
Derivative [Line Items]
Total Derivatives, Assets	77.9	54.6
Designated as Hedging Instrument [Member] | Other Noncurrent Assets [Member] | Forward Exchange Contracts [Member]
Derivative [Line Items]
Total Derivatives, Assets	31.8	10.5
Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | Interest rate management contract [Member]
Derivative [Line Items]
Total Derivatives, Liabilities	31.2	18.8
Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | Forward Exchange Contracts [Member]
Derivative [Line Items]
Total Derivatives, Liabilities	109.0	61.8
Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | Interest rate management contract [Member]
Derivative [Line Items]
Total Derivatives, Liabilities	0	0.3
Designated as Hedging Instrument [Member] | Other Noncurrent Liabilities [Member] | Forward Exchange Contracts [Member]
Derivative [Line Items]
Total Derivatives, Liabilities	2.6	3.1
Hedges Not Designated [Member]
Derivative [Line Items]
Total Derivatives, Assets	3.2	6.6
Total Derivatives, Liabilities	1.6	1.9
Hedges Not Designated [Member] | Other Receivables [Member] | Interest rate management contract [Member]
Derivative [Line Items]
Total Derivatives, Assets	0	2.6
Hedges Not Designated [Member] | Other Receivables [Member] | Forward Exchange Contracts [Member]
Derivative [Line Items]
Total Derivatives, Assets	3.2	4.0
Hedges Not Designated [Member] | Accrued Liabilities [Member] | Interest rate management contract [Member]
Derivative [Line Items]
Total Derivatives, Liabilities	0	0
Hedges Not Designated [Member] | Accrued Liabilities [Member] | Forward Exchange Contracts [Member]
Derivative [Line Items]
Total Derivatives, Liabilities	$ 1.6	$ 1.9

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Accumulated Other Comprehensive Loss

3 Months Ended

Dec. 31, 2014

Accumulated Other Comprehensive Loss Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

15.ACCUMULATED OTHER COMPREHENSIVE LOSS

The table below summarizes changes in accumulated other comprehensive loss (AOCL), net of tax, attributable to Air Products for the three months ended 31 December 2014:
		Net loss on derivatives qualifying as hedges		Foreign currency translation adjustments		Pension and postretirement benefits		Total
Balance at 30 September 2014		$	(28.5)	$	(268.7)	$	(944.7)	$	(1,241.9)
	Other comprehensive income (loss) before reclassifications		(23.8)		(244.4)		-		(268.2)
	Amounts reclassified from AOCL		13.5		-		20.9		34.4
Net current period other comprehensive income (loss)		$	(10.3)	$	(244.4)	$	20.9	$	(233.8)
Amount attributable to noncontrolling interest			.1		(5.2)		-		(5.1)
Balance at 31 December 2014		$	(38.9)	$	(507.9)	$	(923.8)	$	(1,470.6)

The table below summarizes the reclassifications out of accumulated other comprehensive loss and the affected line item on the consolidated income statements:
			Three Months Ended
			31 December
			2014		2013
(Gain) Loss on Cash Flow Hedges, net of tax
	Sales/Cost of sales	$	(.6)	$	.2
	Other income (expense), net		14.1		(11.9)
	Interest expense		―		(.2)
Total (Gain) Loss on Cash Flow Hedges, net of tax		$	13.5	$	(11.9)
Pension and Postretirement Benefits, net of tax(A)		$	20.9	$	20.0
(A)	The components include items such as prior service cost amortization, actuarial loss amortization, and settlements and are reflected in net periodic benefit cost. Refer to Note 10, Retirement Benefits.

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Discontinued Operations (Tables)

3 Months Ended

Dec. 31, 2014

Discontinued Operations [Abstract]

Schedule of Operating Results and Assets and Liabilities of Discontinued Operations

The results of discontinued operations are summarized below:
			Three Months Ended
			31 December
			2014		2013
	Sales	$	-	$	8.5
	Income before taxes	$	-	$	.7
	Income tax provision		-		-
	Income from operations of discontinued operations		-		.7
	Gain on sale of business, net of tax		-		2.4
	Income from Discontinued Operations, net of tax	$	-	$	3.1

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Financial Instruments (Schedule of Outstanding Currency Price Risk Management Instruments) (Details) (Forward Exchange Contracts [Member], USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
Derivative [Line Items]
US$ Notional	$ 4,983.6	$ 4,032.9
Years Average Maturity	10 months	1 year
Cash Flow Hedges [Member]
Derivative [Line Items]
US$ Notional	3,243.5	2,965.5
Years Average Maturity	7 months	8 months
Net Investment Hedges [Member]
Derivative [Line Items]
US$ Notional	660.5	685.9
Years Average Maturity	2 years 7 months	2 years 11 months
Hedges Not Designated [Member]
Derivative [Line Items]
US$ Notional	$ 1,079.6	$ 381.5
Years Average Maturity	6 months	1 month

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Discontinued Operations (Schedule of Assets and Liabilities) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash and cash items	$ 0	$ 0

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Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Dec. 31, 2014	Sep. 30, 2014
Current Assets
Cash and cash items	$ 238.8	$ 336.6
Trade receivables, net	1,430.4	1,486.0
Inventories	709.7	706.0
Contracts in progress, less progress billings	143.0	155.4
Prepaid expenses	76.4	87.8
Other receivables and current assets	538.9	523.0
Total Current Assets	3,137.2	3,294.8
Investment in net assets of and advances to equity affiliates	1,252.2	1,257.9
Plant and equipment, at cost	20,256.5	20,223.5
Less: accumulated depreciation	10,648.9	10,691.4
Plant and equipment, net	9,607.6	9,532.1
Goodwill, net	1,200.7	1,237.3
Intangible assets, net	585.2	615.8
Noncurrent capital lease receivables	1,397.6	1,414.9
Other noncurrent assets	454.9	426.3
Total Noncurrent Assets	14,498.2	14,484.3
Total Assets	17,635.4	17,779.1
Current Liabilities
Payables and accrued liabilities	1,585.1	1,591.0
Accrued income taxes	79.1	78.0
Short-term borrowings	1,283.5	1,228.7
Current portion of long-term debt	54.2	65.3
Total Current Liabilities	3,001.9	2,963.0
Long-term debt	4,751.3	4,824.5
Other noncurrent liabilities	1,070.7	1,187.5
Deferred income taxes	1,019.5	995.5
Total Noncurrent Liabilities	6,841.5	7,007.5
Total Liabilities	9,843.4	9,970.5
Commitments and Contingencies - See Note 11
Redeemable Noncontrolling Interest	288.7	287.2
Air Products Shareholders' Equity
Common stock (par value $1 per share; issued 2015 and 2014 - 249,455,584 shares)	249.4	249.4
Capital in excess of par value	852.8	842.0
Retained earnings	10,152.0	9,993.2
Accumulated other comprehensive loss	(1,470.6)	(1,241.9)
Treasury stock, at cost (2015 - 35,181,539 shares; 2014 - 35,917,440 shares)	(2,432.1)	(2,476.9)
Total Air Products Shareholders' Equity	7,351.5	7,365.8
Noncontrolling Interests	151.8	155.6
Total Equity	7,503.3	7,521.4
Total Liabilities and Equity	$ 17,635.4	$ 17,779.1

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Discontinued Operations

3 Months Ended

Dec. 31, 2014

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 has been accounted for as a discontinued operation.

In the third quarter of 2012, we sold the majority of our Homecare business to The Linde Group for sale proceeds of €590 million ($777) and recognized a gain of $207.4 ($150.3 after-tax, or $.70 per share). Additionally, during the third quarter of 2012, an impairment charge of $33.5 ($29.5 after-tax, or $.14 per share) was recorded to write down the remaining business, which was primarily in the United Kingdom and Ireland, to its estimated net realizable value. In the fourth quarter of 2013, an additional charge of $18.7 ($13.6 after-tax, or $.06 per share) was recorded to update our estimate of the net realizable value.In the first quarter of 2014, we sold the remaining portion of the Homecare businessfor £6.1 million ($9.8) and recorded a gain on sale of $2.4. We 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 $31 at 31 December 2014), and our exposure will be extinguished by 2020. The fair value of the guarantee is not material.

The results of discontinued operations are summarized below:
			Three Months Ended
			31 December
			2014		2013
	Sales	$	-	$	8.5
	Income before taxes	$	-	$	.7
	Income tax provision		-		-
	Income from operations of discontinued operations		-		.7
	Gain on sale of business, net of tax		-		2.4
	Income from Discontinued Operations, net of tax	$	-	$	3.1

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Commitments and Contingencies (Pace) (Narrative) (Details) (Pace, Florida [Member], USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2006
Loss Contingencies [Line Items]
Accrual for environmental loss contingencies	$ 31.7	$ 42.0
Years to complete environmental remediation		20 years
Change in estimated exposure	0
Environmental loss contingencies estimated costs through completion, maximum		52
Environmental loss contingencies estimated costs through completion, minimum		42
Segment Discontinued Operations Member
Loss Contingencies [Line Items]
Pretax environmental expense		$ 42

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Noncontrolling Interests (Narrative) (Details) (Indura [Member])	3 Months Ended
	Dec. 31, 2014	Jul. 02, 2012
Indura [Member]
Noncontrolling Interest [Line Items]
Percentage equity interest purchased		64.80%
Minority interest ownership percentage under put option	30.50%
Put option exercise period start date	1 July 2015
Put option exercise period beginning 1 July 2015	2 years
Current ownership percentage	67.30%

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Business Restructuring and Cost Reduction Actions (Tables)

3 Months Ended

Dec. 31, 2014

Business Restructuring and Cost Reduction Actions [Abstract]

Summary of Carrying Amount of Accrual for Business Restructuring and Cost Reduction Plans [Table Text Block]

The following table summarizes the carrying amount of the accrual for the business realignment and reorganization
at 31 December 2014:
	Severance and
	Other Benefits
2014 Charge	$	12.7
Cash expenditures		(2.2)
30 September 2014	$	10.5
2015 Charge	$	32.4
Amount reflected in pension liability		(2.7)
Cash expenditures		(25.0)
Currency translation adjustment		(.1)
31 December 2014	$	15.1

The following table summarizes the carrying amount of the accrual for the 2013 Plan at 31 December 2014:
	Severance and		Asset		Contract
	Other Benefits		Actions		Actions/Other		Total
2013 Charge	$	71.9	$	100.4	$	59.3	$	231.6
Amount reflected in pension liability		(6.9)		-		-		(6.9)
Noncash expenses		-		(100.4)		-		(100.4)
Cash expenditures		(3.0)		-		(58.5)		(61.5)
Currency translation adjustment		.4		-		-		.4
30 September 2013	$	62.4	$	-	$	.8	$	63.2
Cash expenditures		(51.7)		-		(.8)		(52.5)
Currency translation adjustment		(.6)		-		-		(.6)
30 September 2014	$	10.1	$	-	$	-	$	10.1
Cash expenditures		(7.1)		-		-		(7.1)
Currency translation adjustment		(.1)		-		-		(.1)
31 December 2014	$	2.9	$	-	$	-	$	2.9

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Business Segment Information (Narratives) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Sales	$ 2,560.8	$ 2,545.5
Industrial Gases Global [Member]
Segment Reporting Information [Line Items]
Sales	59.0	67.2
Industrial Gases Global [Member] | Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Sales	$ 59.6	$ 41.3

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Business Segment Information (Tables)

3 Months Ended

Dec. 31, 2014

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Business Segment
	Industrial		Industrial		Industrial		Industrial				Energy-
	Gases–		Gases–		Gases–		Gases–		Materials		from-		Corporate
	Americas		EMEA		Asia		Global		Technologies		Waste		and other		Total
Three Months Ended 31 December 2014
Sales	$	1,003.0	$	500.8	$	398.7	$	59.0	$	524.0	$	-	$	75.3	$	2,560.8
Operating income		211.2		81.3		90.5		(17.9)		104.6		(2.5)		(22.7)		444.5
Depreciation and amortization		103.6		51.1		49.6		4.3		24.0		-		2.9		235.5
Equity affiliates' income		17.2		10.3		14.6		.4		.6		-		-		43.1
Three Months Ended 31 December 2013
Sales	$	943.9	$	549.9	$	395.3	$	67.2	$	479.5	$	-	$	109.7	$	2,545.5
Operating income		184.5		85.2		82.7		(10.3)		64.3		(2.9)		(17.9)		385.6
Depreciation and amortization		104.0		54.9		46.4		1.7		24.5		-		2.7		234.2
Equity affiliates' income		17.6		9.7		9.6		.7		.6		-		-		38.2
Total Assets
31 December 2014	$	6,225.4	$	3,414.7	$	4,106.1	$	345.2	$	1,790.3	$	689.4	$	1,064.3	$	17,635.4
30 September 2014		6,240.7		3,521.0		4,045.6		389.4		1,835.7		591.9		1,154.8		17,779.1

Reconciliation of Segment to Consolidated Operating Income [Table Text Block]

Below is a reconciliation of segment total operating income to consolidated operating income:
	Three Months Ended
	31 December
Operating Income		2014		2013
Segment total	$	444.5	$	385.6
Business restructuring and cost reduction actions		(32.4)		-
Gain on previously held equity interest		17.9		-
Consolidated Total	$	430.0	$	385.6

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Equity

3 Months Ended

Dec. 31, 2014

Stockholders' Equity Note [Abstract]

Equity

13.EQUITY

The following is a summary of the changes in total equity:

	Three Months Ended 31 December
	2014						2013
			Non-						Non-
	Air		controlling		Total		Air		controlling		Total
	Products		Interests		Equity		Products		Interests		Equity
Balance at 30 September	$	7,365.8	$	155.6	$	7,521.4	$	7,042.1	$	156.8	$	7,198.9
Net income (A)		324.6		7.5		332.1		290.2		7.6		297.8
Other comprehensive income (loss)		(228.7)		(5.1)		(233.8)		53.7		(1.1)		52.6
Dividends on common stock (per share $.77, $.71)		(165.4)		-		(165.4)		(150.3)		-		(150.3)
Dividends to noncontrolling interests		-		(6.2)		(6.2)		-		(4.6)		(4.6)
Share-based compensation		11.9		-		11.9		11.8		-		11.8
Issuance of treasury shares for stock option and
award plans		30.1		-		30.1		13.2		-		13.2
Tax benefit of stock option and award plans		13.5		-		13.5		4.8		-		4.8
Purchase of noncontrolling interests		-		-		-		(.5)		-		(.5)
Other equity transactions		(.3)		-		(.3)		(1.0)		-		(1.0)
Balance at 31 December	$	7,351.5	$	151.8	$	7,503.3	$	7,264.0	$	158.7	$	7,422.7
(A)Net income attributable to noncontrolling interests excludes net income related to redeemable noncontrolling interests, which
is not included in total equity. Refer to Note 15, Noncontrolling Interests, for additional information.