Business Restructuring and Cost Reduction Actions

3 Months Ended

Dec. 31, 2015

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.

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. As a result of this reorganization, we incurred severance and other charges throughout fiscal year 2015.

In fiscal year 2015, we recognized an expense of $207.7. Severance and other benefits totaled $151.9 and related to the elimination of approximately 2,000 positions. Asset and associated contract actions totaled $55.8 and related primarily to a plant shutdown in the Corporate and other segment and the exit of product lines within the Industrial Gases – Global and Materials Technologies segments. The 2015 charges related to the segments as follows: $31.7 in Industrial Gases – Americas, $52.2 in Industrial Gases – EMEA, $10.3 in Industrial Gases – Asia, $37.0 in Industrial Gases – Global, $27.6 in Materials Technologies, and $48.9 in Corporate and other.

For the three months ended 31 December 2014, we recognized an expense of $32.4 ($21.7 after-tax, or $.10 per share).

The following table summarizes the carrying amount of the accrual for the business realignment and reorganization at
31 December 2015:
	Severance and		Asset
	Other Benefits		Actions/Other		Total
30 September 2014	$	10.5	$	-	$	10.5
2015 Charge		151.9		55.8		207.7
Amount reflected in pension liability		(14.0)		-		(14.0)
Noncash expenses		-		(47.4)		(47.4)
Cash expenditures		(113.5)		(1.2)		(114.7)
Currency translation adjustment		(.4)		-		(.4)
30 September 2015	$	34.5	$	7.2	$	41.7
Cash expenditures		(11.3)		(1.8)		(13.1)
Currency translation adjustment		(.5)		-		(.5)
31 December 2015	$	22.7	$	5.4	$	28.1