Cover
Cover | 6 Months Ended |
Mar. 31, 2022shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2022 |
Document Transition Report | false |
Entity File Number | 001-04534 |
Entity Registrant Name | AIR PRODUCTS AND CHEMICALS, INC. |
Entity Central Index Key | 0000002969 |
Current Fiscal Year End Date | --09-30 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 23-1274455 |
Entity Address, Address Line One | 1940 Air Products Boulevard |
Entity Address, City or Town | Allentown |
Entity Address, State or Province | PA |
Entity Address, Postal Zip Code | 18106-5500 |
City Area Code | 610 |
Local Phone Number | 481-4911 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 221,773,327 |
Common Stock, par value $1.00 per share | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, par value $1.00 per share |
Trading Symbol | APD |
Security Exchange Name | NYSE |
1.000% Euro Notes due 2025 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 1.000% Euro Notes due 2025 |
Trading Symbol | APD25 |
Security Exchange Name | NYSE |
0.500% Euro Notes due 2028 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.500% Euro Notes due 2028 |
Trading Symbol | APD28 |
Security Exchange Name | NYSE |
0.800% Euro Notes due 2032 | |
Entity Information [Line Items] | |
Title of 12(b) Security | 0.800% Euro Notes due 2032 |
Trading Symbol | APD32 |
Security Exchange Name | NYSE |
Consolidated Income Statements
Consolidated Income Statements (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Income Statement [Abstract] | |||||
Sales | $ 2,945.1 | $ 2,502 | $ 5,939.3 | $ 4,877.2 | |
Cost of sales | 2,151.6 | 1,745.5 | 4,375.2 | 3,377.9 | |
Facility closure | 0 | 23.2 | 0 | 23.2 | |
Selling and administrative | 227 | 210.3 | 459.8 | 413 | |
Research and development | 23.7 | 21.1 | 47 | 44.6 | |
Gain on exchange with joint venture partner | 0 | 36.8 | 0 | 36.8 | |
Other income (expense), net | 19.1 | 9.8 | 27.6 | 32.3 | |
Operating Income | 561.9 | 548.5 | 1,084.9 | 1,087.6 | |
Equity affiliates' income | 120.8 | 69.8 | 268.6 | 139.1 | |
Interest expense | 32.3 | 36.1 | 62.8 | 72.8 | |
Other non-operating income (expense), net | 9.1 | 16.8 | 31.7 | 35.4 | |
Income From Continuing Operations Before Taxes | 659.5 | 599 | 1,322.4 | 1,189.3 | |
Income tax provision | 122.7 | 121.9 | 236 | 235.8 | |
Income From Continuing Operations | 536.8 | 477.1 | 1,086.4 | 953.5 | |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 10.3 | |
Net Income | 536.8 | 477.1 | 1,086.4 | 963.8 | |
Net income (loss) attributable to noncontrolling interests of continuing operations | 6.3 | 4 | (4.5) | 8.7 | |
Net Income Attributable to Air Products | 530.5 | 473.1 | 1,090.9 | 955.1 | |
Net Income Attributable to Air Products | |||||
Net income from continuing operations | 530.5 | 473.1 | 1,090.9 | 944.8 | |
Net income from discontinued operations | 0 | 0 | 0 | 10.3 | |
Net Income Attributable to Air Products | $ 530.5 | $ 473.1 | $ 1,090.9 | $ 955.1 | |
Per Share Data | |||||
Basic EPS from continuing operations (in dollars per share) | [1] | $ 2.39 | $ 2.13 | $ 4.91 | $ 4.26 |
Basic EPS from discontinued operations (in dollars per share) | [1] | 0 | 0 | 0 | 0.05 |
Basic EPS Attributable to Air Products (in dollars per share) | [1] | 2.39 | 2.13 | 4.91 | 4.31 |
Diluted EPS from continuing operations (in dollars per share) | [1] | 2.38 | 2.13 | 4.90 | 4.25 |
Diluted EPS from discontinued operations (in dollars per share) | [1] | 0 | 0 | 0 | 0.05 |
Diluted EPS Attributable to Air Products (in dollars per share) | [1] | $ 2.38 | $ 2.13 | $ 4.90 | $ 4.29 |
Weighted Average Common Shares (in millions) | |||||
Basic | 222 | 221.6 | 222 | 221.6 | |
Diluted | 222.5 | 222.5 | 222.5 | 222.5 | |
[1] | *Earnings per share ("EPS") is calculated independently for each component and may not sum to total EPS due to rounding. |
Consolidated Comprehensive Inco
Consolidated Comprehensive Income Statements (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 536.8 | $ 477.1 | $ 1,086.4 | $ 963.8 |
Other Comprehensive Income (Loss), net of tax | ||||
Translation adjustments, net of tax | (58.8) | (144.6) | (18.2) | 271.1 |
Net gain (loss) on derivatives, net of tax | (39.4) | (5.2) | (39.9) | 8.6 |
Reclassification adjustments: | ||||
Derivatives, net of tax | 26 | 36 | 44.7 | 34.7 |
Pension and postretirement benefits, net of tax | 15.9 | 18.3 | 31.9 | 36.6 |
Total Other Comprehensive Income (Loss) | (56.3) | (95.5) | 18.5 | 351 |
Comprehensive Income | 480.5 | 381.6 | 1,104.9 | 1,314.8 |
Net Income (Loss) Attributable to Noncontrolling Interest | 6.3 | 4 | (4.5) | 8.7 |
Other Comprehensive Income (Loss) Attributable to Noncontrolling Interest | (3) | 15.6 | 8.2 | 35.3 |
Comprehensive Income Attributable to Air Products | $ 477.2 | $ 362 | $ 1,101.2 | $ 1,270.8 |
Consolidated Comprehensive In_2
Consolidated Comprehensive Income Statements (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect on translation adjustments | $ 9.2 | $ 22.6 | $ 16.8 | $ (1.6) |
Tax effect on net gain (loss) on derivatives | (15.3) | (13.2) | (26.4) | (10.5) |
Tax effect on derivatives reclassification adjustments | 8.6 | 12 | 14.7 | 11.2 |
Tax effect on pension and postretirement benefits reclassification adjustments | $ 5.5 | $ 5.9 | $ 10.9 | $ 11.8 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 |
Current Assets | ||
Cash and cash items | $ 2,348.7 | $ 4,468.9 |
Short-term investments | 848.9 | 1,331.9 |
Trade receivables, net | 1,728.2 | 1,451.3 |
Inventories | 507.5 | 453.9 |
Prepaid expenses | 195.5 | 119.4 |
Other receivables and current assets | 620.6 | 550.9 |
Total Current Assets | 6,249.4 | 8,376.3 |
Investment in net assets of and advances to equity affiliates | 3,423.8 | 1,649.3 |
Plant and equipment, at cost | 28,720.4 | 27,488.8 |
Less: accumulated depreciation | 14,625.2 | 14,234.2 |
Plant and equipment, net | 14,095.2 | 13,254.6 |
Goodwill, net | 912.8 | 911.5 |
Intangible assets, net | 419.2 | 420.7 |
Noncurrent lease receivables | 692.3 | 740.3 |
Other noncurrent assets | 1,657 | 1,506.5 |
Total Noncurrent Assets | 21,200.3 | 18,482.9 |
Total Assets | 27,449.7 | 26,859.2 |
Current Liabilities | ||
Payables and accrued liabilities | 2,407.1 | 2,218.3 |
Accrued income taxes | 104.6 | 93.9 |
Short-term borrowings | 207.2 | 2.4 |
Current portion of long-term debt | 486.2 | 484.5 |
Total Current Liabilities | 3,205.1 | 2,799.1 |
Long-term debt | 6,462.2 | 6,875.7 |
Long-term debt – related party | 285.9 | 274.6 |
Other noncurrent liabilities | 1,736.8 | 1,640.9 |
Deferred income taxes | 1,249 | 1,180.9 |
Total Noncurrent Liabilities | 9,733.9 | 9,972.1 |
Total Liabilities | 12,939 | 12,771.2 |
Commitments and Contingencies - See Note 13 | ||
Air Products Shareholders’ Equity | ||
Common stock (par value $1 per share; issued 2022 and 2021 - 249,455,584 shares) | 249.4 | 249.4 |
Capital in excess of par value | 1,120.8 | 1,115.8 |
Retained earnings | 16,075.9 | 15,678.3 |
Accumulated other comprehensive loss | (1,505.6) | (1,515.9) |
Treasury stock, at cost (2022 - 27,682,257 shares; 2021 - 28,058,829 shares) | (1,985.4) | (1,987.9) |
Total Air Products Shareholders’ Equity | 13,955.1 | 13,539.7 |
Noncontrolling Interests | 555.6 | 548.3 |
Total Equity | 14,510.7 | 14,088 |
Total Liabilities and Equity | $ 27,449.7 | $ 26,859.2 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Sep. 30, 2021 |
Air Products Shareholders’ Equity | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, issued shares | 249,455,584 | 249,455,584 |
Treasury stock at cost, shares | 27,682,257 | 28,058,829 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating Activities | ||
Net Income | $ 1,086.4 | $ 963.8 |
Less: Net (loss) income attributable to noncontrolling interests of continuing operations | (4.5) | 8.7 |
Net income attributable to Air Products | 1,090.9 | 955.1 |
Income from discontinued operations | 0 | (10.3) |
Income from continuing operations attributable to Air Products | 1,090.9 | 944.8 |
Adjustments to reconcile income to cash provided by operating activities: | ||
Depreciation and amortization | 668.2 | 653 |
Deferred income taxes | 51.3 | 76.1 |
Facility closure | 0 | 23.2 |
Undistributed earnings of equity method investments | (200.8) | (58.7) |
Gain on sale of assets and investments | (11.8) | (26.2) |
Share-based compensation | 26.5 | 22.4 |
Noncurrent lease receivables | 43.9 | 43.4 |
Other adjustments | (101) | (6.5) |
Working capital changes that provided (used) cash, excluding effects of acquisitions: | ||
Trade receivables | (203.1) | (74.8) |
Inventories | (57.3) | (25.4) |
Other receivables | 13.8 | 15.7 |
Payables and accrued liabilities | 123.1 | 135.7 |
Other working capital | (138.7) | (142.4) |
Cash Provided by Operating Activities | 1,305 | 1,580.3 |
Investing Activities | ||
Additions to plant and equipment, including long-term deposits | (1,433.6) | (1,227.8) |
Acquisitions, less cash acquired | (65.1) | 0 |
Investment in and advances to unconsolidated affiliates | (1,650.9) | (69.8) |
Proceeds from sale of assets and investments | 25.3 | 14.8 |
Purchases of investments | (909.4) | (569) |
Proceeds from investments | 1,391.4 | 1,265.5 |
Other investing activities | 6.5 | 3.1 |
Cash Used for Investing Activities | (2,635.8) | (583.2) |
Financing Activities | ||
Long-term debt proceeds | 87.5 | 92.8 |
Payments on long-term debt | (400) | (15.9) |
Net increase in commercial paper and short-term borrowings | 210.9 | 33.6 |
Dividends paid to shareholders | (664.7) | (592.7) |
Proceeds from stock option exercises | 14.4 | 4.7 |
Other financing activities | (33.7) | (25.7) |
Cash Used for Financing Activities | (785.6) | (503.2) |
Cash provided by operating activities | 0 | 6.7 |
Cash provided by investing activities | 0 | 0 |
Cash provided by financing activities | 0 | 0 |
Cash Provided by Discontinued Operations | 0 | 6.7 |
Effect of Exchange Rate Changes on Cash | (3.8) | 32.7 |
(Decrease) Increase in cash and cash items | (2,120.2) | 533.3 |
Cash and Cash items – Beginning of year | 4,468.9 | 5,253 |
Cash and Cash Items – End of Period | $ 2,348.7 | $ 5,786.3 |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Air Products Shareholders' Equity | Non-controlling Interests |
Beginning balance at Sep. 30, 2020 | $ 12,443.1 | $ 249.4 | $ 1,094.8 | $ 14,875.7 | $ (2,140.1) | $ (2,000) | $ 12,079.8 | $ 363.3 |
Stockholders' Equity [Roll Forward] | ||||||||
Net income | 963.8 | 955.1 | 955.1 | 8.7 | ||||
Other comprehensive income (loss) | 351 | 315.7 | 315.7 | 35.3 | ||||
Dividends on common stock | (628.5) | (628.5) | (628.5) | |||||
Dividends to noncontrolling interests | (3.4) | (3.4) | ||||||
Share-based compensation | 22.3 | 22.3 | 22.3 | |||||
Issuance of treasury shares for stock option and award plans | (14.9) | (21.7) | 6.8 | (14.9) | ||||
Investments by noncontrolling interests | 8.7 | 8.7 | ||||||
Purchase of noncontrolling interests | (5.3) | (1.2) | (1.2) | (4.1) | ||||
Other equity transactions | (2) | 0.2 | (2.3) | (2.1) | 0.1 | |||
Ending balance at Mar. 31, 2021 | 13,134.8 | 249.4 | 1,094.4 | 15,200 | (1,824.4) | (1,993.2) | 12,726.2 | 408.6 |
Beginning balance at Dec. 31, 2020 | 13,071.9 | 249.4 | 1,083 | 15,060.5 | (1,713.3) | (1,996) | 12,683.6 | 388.3 |
Stockholders' Equity [Roll Forward] | ||||||||
Net income | 477.1 | 473.1 | 473.1 | 4 | ||||
Other comprehensive income (loss) | (95.5) | (111.1) | (111.1) | 15.6 | ||||
Dividends on common stock | (332) | (332) | (332) | |||||
Dividends to noncontrolling interests | (3.4) | (3.4) | ||||||
Share-based compensation | 12 | 12 | 12 | |||||
Issuance of treasury shares for stock option and award plans | 2.1 | (0.7) | 2.8 | 2.1 | ||||
Purchase of noncontrolling interests | 4 | 4 | ||||||
Other equity transactions | (1.4) | 0.1 | (1.6) | (1.5) | 0.1 | |||
Ending balance at Mar. 31, 2021 | 13,134.8 | 249.4 | 1,094.4 | 15,200 | (1,824.4) | (1,993.2) | 12,726.2 | 408.6 |
Beginning balance at Sep. 30, 2021 | 14,088 | 249.4 | 1,115.8 | 15,678.3 | (1,515.9) | (1,987.9) | 13,539.7 | 548.3 |
Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,086.4 | 1,090.9 | 1,090.9 | (4.5) | ||||
Other comprehensive income (loss) | 18.5 | 10.3 | 10.3 | 8.2 | ||||
Dividends on common stock | (691.8) | (691.8) | (691.8) | |||||
Dividends to noncontrolling interests | (1) | (1) | ||||||
Share-based compensation | 25.7 | 25.7 | 25.7 | |||||
Issuance of treasury shares for stock option and award plans | (18.5) | (21) | 2.5 | (18.5) | ||||
Investments by noncontrolling interests | 3.6 | 3.6 | ||||||
Purchase of noncontrolling interests | (1.9) | (1.9) | ||||||
Other equity transactions | 1.7 | 0.3 | (1.5) | (1.2) | 2.9 | |||
Ending balance at Mar. 31, 2022 | 14,510.7 | 249.4 | 1,120.8 | 16,075.9 | (1,505.6) | (1,985.4) | 13,955.1 | 555.6 |
Beginning balance at Dec. 31, 2021 | 14,375.6 | 249.4 | 1,112 | 15,905.2 | (1,452.3) | (1,989.2) | 13,825.1 | 550.5 |
Stockholders' Equity [Roll Forward] | ||||||||
Net income | 536.8 | 530.5 | 530.5 | 6.3 | ||||
Other comprehensive income (loss) | (56.3) | (53.3) | (53.3) | (3) | ||||
Dividends on common stock | (359.3) | (359.3) | (359.3) | 0 | ||||
Dividends to noncontrolling interests | (1) | (1) | ||||||
Share-based compensation | 11.6 | 11.6 | 11.6 | |||||
Issuance of treasury shares for stock option and award plans | 0.9 | (2.9) | 3.8 | 0.9 | ||||
Other equity transactions | 2.4 | 0.1 | (0.5) | (0.4) | 2.8 | |||
Ending balance at Mar. 31, 2022 | $ 14,510.7 | $ 249.4 | $ 1,120.8 | $ 16,075.9 | $ (1,505.6) | $ (1,985.4) | $ 13,955.1 | $ 555.6 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per share (in dollars per share) | $ 1.62 | $ 1.50 | $ 3.12 | $ 2.84 |
Basis of Presentation and Major
Basis of Presentation and Major Accounting Policies | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Major Accounting Policies | BASIS OF PRESENTATION AND MAJOR ACCOUNTING POLICIES Basis of Presentation The interim 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 (the "SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("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 disclosures to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the notes to the interim consolidated financial statements. These notes, unless otherwise indicated, are presented on a continuing operations basis. To fully understand the basis of presentation, the interim consolidated financial statements and related notes included herein should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended 30 September 2021 (the "2021 Form 10-K"). Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. Major Accounting Policies Refer to our 2021 Form 10-K for a description of major accounting policies. There have been no significant changes to these accounting policies during the first six months of fiscal year 2022. Segment Reorganization We reorganized our reporting segments effective 1 October 2021. Prior year segment information presented has been updated to conform with the fiscal year 2022 presentation. Refer to Note 19, Business Segment Information , for additional information. Russia's Invasion of Ukraine In March 2022, we announced our intent to divest our small industrial gas business in Russia due to Russia's invasion of Ukraine. As a result, we reclassified assets of $54.1 that met the held for sale criteria in our Europe segment to "Other receivables and current assets" on our consolidated balance sheet as of 31 March 2022. The effect of this reclassification was excluded from our consolidated statement of cash flows for the six months ended 31 March 2022. Sales from this business were less than $25 in fiscal year 2021. In addition, we suspended the construction of a plant in Ukraine. Our consolidated balance sheet includes approximately $45 as of 31 March 2022 within "Plant and equipment, net" related to this project. Sales from other operations in Ukraine were less than $5 in fiscal year 2021. Risks and Uncertainties We are subject to various risks and uncertainties, including, but not limited to, those resulting from the COVID-19 pandemic as well as Russia's invasion of Ukraine. Our results of operations for the periods covered by this report were not materially impacted by these events; however, given the dynamic nature of these circumstances, uncertainty remains related to how these events may affect our business, results of operations, and overall financial performance in future periods. For example, our ability to recover the carrying value of our assets in Russia and Ukraine as well as our ability to exit contracts in Russia could be impacted by sanctions imposed on Russia and potential Russian retaliatory measures. |
New Accounting Guidance
New Accounting Guidance | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Guidance | NEW ACCOUNTING GUIDANCE New Accounting Guidance to be Implemented Government Assistance In November 2021, the Financial Accounting Standards Board ("FASB") issued disclosure guidance to increase the transparency of transactions an entity has with a government that are accounted for by applying a grant or contribution accounting model. This guidance is effective beginning in fiscal year 2023, with early adoption permitted. We are evaluating the impact this guidance will have on our consolidated financial statements. Acquired Revenue Contracts in a Business Combination In October 2021, the FASB issued an update for the recognition of contract assets and liabilities acquired in a business combination. Rather than recognizing such items at fair value on the acquisition date, the acquirer would measure and recognize contract assets and liabilities in accordance with ASC 606, Revenue from Contracts with Customers , as if it had originated the contract. This guidance is effective beginning in fiscal year 2024, with early adoption permitted. We are evaluating the impact this guidance will have on our consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued an update to provide practical expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. This update is primarily applicable to our contracts and hedging relationships that reference the London Inter-Bank Offered Rate ("LIBOR"). The amendments may be applied to impacted contracts and hedges prospectively through 31 December 2022. To date, we have had no impacts on our hedging relationships related to reference rate reform. We will continue to evaluate the impact this guidance could have on our consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS Fiscal Year 2021 Gain on Exchange With Joint Venture Partner We previously held a 50% ownership interest in Tyczka Industrie-Gases GmbH ("TIG"), a joint venture in Germany with the Tyczka Group that was primarily a merchant gases business. We accounted for this arrangement as an equity method investment in our former Industrial Gases – EMEA segment. Effective 23 February 2021 (the "acquisition date"), TIG was separated into two businesses, one of which we acquired on a 100% basis. Our partner paid us $10.8 to acquire the other business. The exchange resulted in a gain of $36.8 ($27.3 after-tax), which is reflected as “Gain on exchange with joint venture partner” on our consolidated income statements for the three and six months ended 31 March 2021. The gain included $12.7 from the revaluation of our previously held equity interest in the portion of the business that we retained and $24.1 from the sale of our equity interest in the remaining business. The gain was not recorded in segment results. We estimated an acquisition date fair value of $15.4 for our previously held equity interest in the acquired portion of the business using a market approach, which considered historical earnings and the application of a market-based multiple derived from comparable transactions. We accounted for the acquisition as a business combination. The results of this business are consolidated within our Europe segment. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION The majority of our revenue is generated from our sale of gas customers within the regional industrial gases segments. We distribute gases through either our on-site or merchant supply mode depending on various factors, including the customer's volume requirements and location. The Corporate and other segment serves our sale of equipment customers. Disaggregation of Revenue The tables below present our consolidated sales disaggregated by supply mode for each of our reporting segments for the three and six months ended 31 March 2022 and 2021. We believe this presentation best depicts the nature, timing, type of customer, and contract terms for our sales. Americas Asia Europe Middle East Corporate Total % Three Months Ended 31 March 2022 On-site $716.5 $460.4 $292.0 $17.3 $— $1,486.2 51 % Merchant 470.1 290.8 446.6 11.6 — 1,219.1 41 % Sale of Equipment — — — — 239.8 239.8 8 % Total $1,186.6 $751.2 $738.6 $28.9 $239.8 $2,945.1 100 % Three Months Ended 31 March 2021 On-site $636.7 $416.0 $182.7 $19.6 $— $1,255.0 50 % Merchant 419.4 281.5 375.7 6.6 — 1,083.2 43 % Sale of Equipment — — — — 163.8 163.8 7 % Total $1,056.1 $697.5 $558.4 $26.2 $163.8 $2,502.0 100 % Americas Asia Europe Middle East Corporate Total % Six Months Ended 31 March 2022 On-site $1,514.1 $912.0 $617.6 $33.6 $— $3,077.3 52 % Merchant 896.6 619.6 865.2 19.0 — 2,400.4 40 % Sale of Equipment — — — — 461.6 461.6 8 % Total $2,410.7 $1,531.6 $1,482.8 $52.6 $461.6 $5,939.3 100 % Six Months Ended 31 March 2021 On-site $1,178.0 $830.9 $359.2 $31.8 $— $2,399.9 49 % Merchant 811.1 584.1 742.7 13.9 — 2,151.8 44 % Sale of Equipment — — — — 325.5 325.5 7 % Total $1,989.1 $1,415.0 $1,101.9 $45.7 $325.5 $4,877.2 100 % Remaining Performance Obligations As of 31 March 2022, the transaction price allocated to remaining performance obligations is estimated to be approximately $24 billion. This amount includes fixed-charge contract provisions associated with our on-site and sale of equipment supply modes. We estimate that approximately half of this revenue will be recognized over the next five years and the balance thereafter. Expected revenue associated with new on-site plants that are not yet on stream is excluded from this amount. In addition, this amount excludes consideration associated with contracts having an expected duration of less than one year and variable consideration for which we recognize revenue at the amount to which we have the right to invoice, including energy pass-through costs. In the future, actual amounts will differ due to events outside of our control, including, but not limited to, inflationary price escalations; currency exchange rates; and amended, terminated, or renewed contracts. Contract Balances The table below details balances arising from contracts with customers: 31 March 30 September Balance Sheet Location 2022 2021 Assets Contract assets – current Other receivables and current assets $56.8 $119.4 Contract fulfillment costs – current Other receivables and current assets 226.6 125.5 Liabilities Contract liabilities – current Payables and accrued liabilities 565.8 366.8 Contract liabilities – noncurrent Other noncurrent liabilities 70.8 58.4 Changes to our contract balances primarily relate to our sale of equipment contracts. During the six months ended 31 March 2022, we recognized approximately $155 in revenue associated with sale of equipment contracts that was included within our contract liabilities as of 30 September 2021. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS In the first quarter of fiscal year 2021, we recorded a tax benefit of $10.3 primarily from the settlement of a state tax appeal related to the gain on the sale of our former Performance Materials Division in fiscal year 2017. The benefit is reflected within "Income from discontinued operations, net of tax" on our consolidated income statement for the six months ended 31 March 2021. Our consolidated statement of cash flows for the six months ended 31 March 2021 includes $6.7 received as part of the settlement. |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The components of inventories are as follows: 31 March 30 September 2022 2021 Finished goods $173.5 $150.7 Work in process 22.3 24.0 Raw materials, supplies and other 311.7 279.2 Inventories $507.5 $453.9 |
Equity Affiliates
Equity Affiliates | 6 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Affiliates | EQUITY AFFILIATES Equity Affiliate Investment in Jazan Integrated Gasification and Power Company (“JIGPC”) On 27 October 2021, we made an initial investment of $1.6 billion in Jazan Integrated Gasification and Power Company ("JIGPC"). JIGPC is a joint venture with Saudi Aramco Power Company (a subsidiary of Aramco), ACWA Power, and Air Products Qudra in the Jazan Economic City, Saudi Arabia. Our investment represents a 55% interest in the joint venture, of which 4% is attributable to the non-controlling partner of Air Products Qudra. The $1.6 billion investment, which includes approximately $130 from the non-controlling partner, is primarily in the form of shareholder loans that qualify as in-substance common stock in the joint venture. We expect to make an additional investment in JIGPC of approximately $1 billion in 2023. We determined JIGPC is a variable interest entity for which we are not the primary beneficiary as we do not have the power to direct the activities that are most significant to the economic performance of the joint venture. Instead, these activities, including plant dispatch, operating and maintenance decisions, budgeting, capital expenditures, and financing, require unanimous approval of the owners or are controlled by the customer. Since we have the ability to exercise significant influence in the joint venture, we accounted for our investment in JIGPC under the equity method within the Middle East and India segment. Pursuant to the joint venture agreement, cash distributions will include preferred distributions to some shareholders. We record our share of income considering current distributions and projections of cash available to Air Products over the life of the venture. As of 31 March 2022, the carrying value of our investment totaled $1,779.0 and is presented as “Investments in and advances to equity affiliates” on our consolidated balance sheet. Our loss exposure is limited to our investment in the joint venture. JIGPC Joint Venture On 27 September 2021, JIGPC signed definitive agreements for the acquisition of project assets from Aramco for $12 billion and entered into related project financing for the purchase. JIGPC will complete the acquisition of the project assets, which include power blocks, gasifiers, air separation units, syngas cleanup assets, and utilities, in two phases. The first phase was completed on 27 October 2021 for $7 billion. The second phase is expected to be completed in 2023. JIGPC will commission, operate, and maintain the project assets to supply electricity, steam, hydrogen and utilities to Aramco’s refinery and terminal complex under a 25-year agreement, which commenced in the first quarter of fiscal year 2022. JIGPC accounted for the asset transfer as a financing. Accordingly, the joint venture recorded a financing receivable upon acquisition and will recognize financing income over the supply term. Jazan Gas Project Company Jazan Gas Project Company (“JGPC”), a joint venture between Air Products and ACWA Holding, entered into a 20-year oxygen and nitrogen supply agreement in 2015 to supply Aramco’s oil refinery and power plant in Jazan, Saudi Arabia. We own 26% of the joint venture. In October 2021, the supply agreement between JGPC and Aramco was terminated, and JGPC sold its air separation units to Aramco. We initially sold these assets to JGPC and deferred revenue and profit equal to our ownership percentage in the joint venture. With the termination of the supply agreement and sale of the air separation units complete, we recognized the remaining deferred profit, net of other project finalization costs, in equity affiliates’ income in the first quarter of fiscal year 2022. As of 30 September 2021, our consolidated balance sheets included $94.4 reflected within "Payables and accrued liabilities" for our obligation to make equity contributions based on our proportionate share of advances received by the joint venture under an equity bridge loan. The joint venture utilized a portion of the proceeds from the sale of the air separation units to repay its outstanding debt, including the equity bridge loan. Accordingly, we recorded a noncash adjustment of $94.4 in the first quarter of fiscal year 2022 to reduce our obligation to zero with a corresponding reduction to the carrying value of our investment in the joint venture. |
Goodwill
Goodwill | 6 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL Changes to the carrying amount of consolidated goodwill by segment for the six months ended 31 March 2022 are as follows: Americas Asia Europe Middle East Corporate Total Goodwill, net at 30 September 2021 $151.0 $184.3 $533.5 $8.0 $34.7 $911.5 Acquisitions (A) — — 17.0 7.5 — 24.5 Currency translation and other 1.4 (0.3) (24.3) — — (23.2) Goodwill, net at 31 March 2022 $152.4 $184.0 $526.2 $15.5 $34.7 $912.8 (A) We recognized goodwill in the first half of fiscal year 2022 for expected cost synergies associated with small business combinations, of which $3.2 is deductible for tax purposes. 31 March 30 September 2022 2021 Goodwill, gross $1,250.8 $1,239.2 Accumulated impairment losses (A) (338.0) (327.7) Goodwill, net $912.8 $911.5 (A) Accumulated impairment losses include the impacts of currency translation. These losses are attributable to our Latin America reporting unit ("LASA") within the Americas segment. We review goodwill for impairment annually in the fourth quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying value of goodwill might not be recoverable. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | 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 seek 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 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 and third-party debt. This portfolio of forward exchange contracts consists primarily of 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 March 2022 is 3.8 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 Euros and U.S. Dollars. We also 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 consists of many different foreign currency pairs, with a profile that changes from time to time depending on our business activity and sourcing decisions. The table below summarizes our outstanding currency price risk management instruments: 31 March 2022 30 September 2021 US$ Years US$ Years Forward Exchange Contracts: Cash flow hedges $3,882.1 0.6 $3,465.2 0.6 Net investment hedges 616.8 2.5 638.0 3.0 Not designated 510.8 0.2 692.6 0.1 Total Forward Exchange Contracts $5,009.7 0.8 $4,795.8 0.8 We also 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 was €1,304.6 million ($1,443.9) at 31 March 2022 and €1,297.5 million ($1,502.6) at 30 September 2021. The designated foreign currency-denominated debt is presented within "Long-term debt" on the consolidated balance sheets. Debt Portfolio Management It is our policy to identify, on a continuing basis, the need for debt capital and to evaluate the financial risks inherent in funding the Company with debt capital. Reflecting the result of this ongoing review, our debt portfolio and hedging program are managed with the 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). As of 31 March 2022, the outstanding interest rate swaps were denominated in U.S. Dollars. 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 which 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. The contracts are used to hedge either certain net investments in foreign operations or non-functional currency cash flows related to intercompany loans. The current cross currency interest rate swap portfolio consists of fixed-to-fixed swaps primarily between U.S. Dollars and Chinese Renminbi, U.S. Dollars and Indian Rupees, and U.S. Dollars and Chilean Pesos. The table below summarizes our outstanding interest rate management contracts and cross currency interest rate swaps: 31 March 2022 30 September 2021 US$ Average Average Years US$ Average Average Years Interest rate swaps $800.0 Various 1.64 % 5.5 $200.0 LIBOR 2.76 % 0.1 Cross currency interest rate swaps $214.4 4.34 % 3.15 % 1.7 $210.2 4.32 % 3.14 % 2.2 Cross currency interest rate swaps $1,013.6 4.90 % 2.92 % 2.3 $1,005.7 4.98 % 2.93 % 2.7 Cross currency interest rate swaps $— — % — % 0.0 $4.2 5.39 % 3.54 % 2.2 The table below provides the amounts recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: Carrying amounts of hedged item Cumulative hedging adjustment, included in carrying amount 31 March 30 September 31 March 30 September Balance Sheet Location 2022 2021 2022 2021 Current portion of long-term debt $— $400.5 $— $0.5 Long-term debt 2,065.1 — (24.0) — The table below summarizes the fair value and balance sheet location of our outstanding derivatives: Balance Sheet 31 March 30 September Balance Sheet 31 March 30 September Location 2022 2021 Location 2022 2021 Derivatives Designated as Hedging Instruments: Forward exchange contracts Other receivables and current assets $43.9 $35.1 Payables and accrued liabilities $50.9 $57.2 Interest rate management contracts Other receivables and current assets 10.6 16.0 Payables and accrued liabilities 22.2 5.2 Forward exchange contracts Other noncurrent assets 6.2 5.5 Other noncurrent liabilities 18.7 25.2 Interest rate management contracts Other noncurrent assets 15.5 18.1 Other noncurrent liabilities 76.5 27.5 Total Derivatives Designated as Hedging Instruments $76.2 $74.7 $168.3 $115.1 Derivatives Not Designated as Hedging Instruments: Forward exchange contracts Other receivables and current assets 3.7 8.7 Payables and accrued liabilities 3.1 6.4 Total Derivatives Not Designated as Hedging Instruments $3.7 $8.7 $3.1 $6.4 Total Derivatives $79.9 $83.4 $171.4 $121.5 Refer to Note 10, Fair Value Measurements , which defines fair value, describes the method for measuring fair value, and provides additional disclosures regarding fair value measurements. The tables below summarize gains (losses) recognized in other comprehensive income during the period related to our net investment and cash flow hedging relationships: Three Months Ended Six Months Ended 31 March 31 March 2022 2021 2022 2021 Net Investment Hedging Relationships Forward exchange contracts ($4.2) $18.6 $10.3 ($17.3) Foreign currency debt 39.4 63.5 67.0 (0.7) Cross currency interest rate swaps (7.4) 1.9 (9.7) (12.3) Total Amount Recognized in OCI 27.8 84.0 67.6 (30.3) Tax effects (6.9) (21.2) (16.7) 7.4 Net Amount Recognized in OCI $20.9 $62.8 $50.9 ($22.9) Three Months Ended Six Months Ended 31 March 31 March 2022 2021 2022 2021 Derivatives in Cash Flow Hedging Relationships Forward exchange contracts ($40.1) ($57.3) ($63.5) $7.4 Forward exchange contracts, excluded components 2.0 (4.3) (0.7) (7.0) Other (A) (16.6) 43.2 (2.1) (2.3) Total Amount Recognized in OCI (54.7) (18.4) (66.3) (1.9) Tax effects 15.3 13.2 26.4 10.5 Net Amount Recognized in OCI ($39.4) ($5.2) ($39.9) $8.6 (A) Other primarily includes interest rate and cross currency interest rate swaps for which excluded components are recognized in “Payables and accrued liabilities” and “Other receivables and current assets” as a component of accrued interest payable and accrued interest receivable, respectively. These excluded components are recorded in “Other non-operating income (expense), net” over the life of the cross currency interest rate swap. Other also includes the recognition of our share of gains and losses, net of tax, related to interest rate swaps held by our equity affiliates. The tables below summarize the location and amounts recognized in income related to our cash flow and fair value hedging relationships by contract type: Three Months Ended 31 March Sales Cost of Sales Interest Expense Other Non-Operating Income (Expense), Net 2022 2021 2022 2021 2022 2021 2022 2021 Total presented in consolidated income statements that includes effects of hedging below $2,945.1 $2,502.0 $2,151.6 $1,745.5 $32.3 $36.1 $9.1 $16.8 (Gain) Loss Effects of Cash Flow Hedging: Forward Exchange Contracts: Amount reclassified from OCI into income $0.3 $0.1 $0.4 ($1.8) $— $— $26.4 $54.0 Amount excluded from effectiveness testing recognized in earnings based on amortization approach — — — — — — 1.1 2.6 Other: Amount reclassified from OCI into income — — — — 1.5 1.4 4.9 (8.3) Total (Gain) Loss Reclassified from OCI to Income 0.3 0.1 0.4 (1.8) 1.5 1.4 32.4 48.3 Tax effects (0.1) — (0.1) 0.4 (0.6) (0.5) (7.8) (11.9) Net (Gain) Loss Reclassified from OCI to Income $0.2 $0.1 $0.3 ($1.4) $0.9 $0.9 $24.6 $36.4 (Gain) Loss Effects of Fair Value Hedging: Other: Hedged items $— $— $— $— ($22.0) ($1.4) $— $— Derivatives designated as hedging instruments — — — — 22.0 1.4 — — Total (Gain) Loss Recognized in Income $— $— $— $— $— $— $— $— Six Months Ended 31 March Sales Cost of Sales Interest Expense Other Non-Operating Income (Expense), Net 2022 2021 2022 2021 2022 2021 2022 2021 Total presented in consolidated income statements that includes effects of hedging below $5,939.3 $4,877.2 $4,375.2 $3,377.9 $62.8 $72.8 $31.7 $35.4 (Gain) Loss Effects of Cash Flow Hedging: Forward Exchange Contracts: Amount reclassified from OCI into income $0.7 $0.2 $0.3 ($1.9) $— $— $40.9 $2.4 Amount excluded from effectiveness testing recognized in earnings based on amortization approach — — — — — — 2.4 5.4 Other: Amount reclassified from OCI into income — — — — 2.9 2.8 12.2 37.0 Total (Gain) Loss Reclassified from OCI to Income 0.7 0.2 0.3 (1.9) 2.9 2.8 55.5 44.8 Tax effects (0.2) — (0.1) 0.6 (1.1) (1.0) (13.3) (10.8) Net (Gain) Loss Reclassified from OCI to Income $0.5 $0.2 $0.2 ($1.3) $1.8 $1.8 $42.2 $34.0 (Gain) Loss Effects of Fair Value Hedging: Other: Hedged items $— $— $— $— ($24.5) ($2.7) $— $— Derivatives designated as hedging instruments — — — — 24.5 2.7 — — Total (Gain) Loss Recognized in Income $— $— $— $— $— $— $— $— The tables below summarize the location and amounts recognized in income related to our derivatives not designated as hedging instruments by contract type: Three Months Ended 31 March Other Income (Expense), Net Other Non-Operating Income (Expense), Net 2022 2021 2022 2021 The Effects of Derivatives Not Designated as Hedging Instruments: Forward Exchange Contracts $0.3 ($0.3) ($0.7) ($0.3) Other — — 0.1 (0.1) Total (Gain) Loss Recognized in Income $0.3 ($0.3) ($0.6) ($0.4) Six Months Ended 31 March Other Income (Expense), Net Other Non-Operating Income (Expense), Net 2022 2021 2022 2021 The Effects of Derivatives Not Designated as Hedging Instruments: Forward Exchange Contracts $1.4 $2.5 ($1.3) ($1.6) Other — — 0.2 0.4 Total (Gain) Loss Recognized in Income $1.4 $2.5 ($1.1) ($1.2) The amount of unrealized gains and losses related to cash flow hedges as of 31 March 2022 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 $110.1 and $53.4 as of 31 March 2022 and 30 September 2021, respectively. 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. The collateral that the counterparties would be required to post was $28.6 and $38.1 as of 31 March 2022 and 30 September 2021, respectively. No financial institution is required to post collateral at this time as all have credit ratings at or above threshold. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as an exit price, or 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: Short-term Investments Short-term investments primarily include time deposits with original maturities greater than three months and less than one year. We estimated the fair value of our short-term investments, which approximates carrying value as of the balance sheet date, using Level 2 inputs within the fair value hierarchy. Level 2 measurements were based on current interest rates for similar investments with comparable credit risk and time to maturity. 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 consider 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 pricing models utilize inputs that are derived from or corroborated by observable market data such as interest rate yield curves as well as currency spot and forward rates; therefore, the fair value of our derivatives is classified as a Level 2 measurement. 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 9, Financial Instruments , for a description of derivative instruments, including details related to the balance sheet line classifications. Long-term Debt, Including Related Party The fair value of our debt is based on estimates using standard pricing models that consider 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 March 2022 30 September 2021 Carrying Value Fair Value Carrying Value Fair Value Assets Derivatives Forward exchange contracts $53.8 $53.8 $49.3 $49.3 Interest rate management contracts 26.1 26.1 34.1 34.1 Liabilities Derivatives Forward exchange contracts $72.7 $72.7 $88.8 $88.8 Interest rate management contracts 98.7 98.7 32.7 32.7 Long-term debt, including current portion and related party 7,234.3 6,905.6 7,634.8 7,812.2 The carrying amounts reported on the consolidated balance sheets for cash and cash items, short-term investments, 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 table below summarizes assets and liabilities on the consolidated balance sheets that are measured at fair value on a recurring basis: 31 March 2022 30 September 2021 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets at Fair Value Derivatives Forward exchange contracts $53.8 $— $53.8 $— $49.3 $— $49.3 $— Interest rate management contracts 26.1 — 26.1 — 34.1 — 34.1 — Total Assets at Fair Value $79.9 $— $79.9 $— $83.4 $— $83.4 $— Liabilities at Fair Value Derivatives Forward exchange contracts $72.7 $— $72.7 $— $88.8 $— $88.8 $— Interest rate management contracts 98.7 — 98.7 — 32.7 — 32.7 — Total Liabilities at Fair Value $171.4 $— $171.4 $— $121.5 $— $121.5 $— |
Debt
Debt | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt Repayment In November 2021, we repaid a 3.0% Senior Note of $400, plus interest, on its maturity date. Credit Facilities 2021 Credit Agreement On 31 March 2021, we entered into a five-year $2,500 revolving credit agreement maturing 31 March 2026 with a syndicate of banks (the “2021 Credit Agreement”), under which senior unsecured debt is available to us and certain of our subsidiaries. On 31 March 2022, we amended the 2021 Credit Agreement to exercise our option to increase the maximum borrowing capacity to $2,750 and transition the benchmark rate from LIBOR to the Secured Overnight Financing Rate ("SOFR"). All other terms remain unchanged from the original agreement. No borrowings were outstanding under the 2021 Credit Agreement as of 31 March 2022. Other We also have credit facilities available to certain of our foreign subsidiaries totaling $486.5, of which $446.9 was borrowed and outstanding as of 31 March 2022. The amount borrowed and outstanding as of 30 September 2021 was $176.2. |
Retirement Benefits
Retirement Benefits | 6 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | RETIREMENT BENEFITS The components of net periodic (benefit) cost for our defined benefit pension plans for the three and six months ended 31 March 2022 and 2021 were as follows: Pension Benefits 2022 2021 Three Months Ended 31 March U.S. International U.S. International Service cost $4.6 $5.6 $5.3 $5.9 Interest cost 18.4 7.6 17.3 6.3 Expected return on plan assets (42.1) (17.6) (48.7) (21.0) Prior service cost amortization 0.3 — 0.3 — Actuarial loss amortization 16.6 3.8 19.6 4.8 Settlements 0.9 0.2 — — Other — 0.2 — 0.2 Net Periodic (Benefit) Cost ($1.3) ($0.2) ($6.2) ($3.8) Pension Benefits 2022 2021 Six Months Ended 31 March U.S. International U.S. International Service cost $9.2 $11.2 $10.7 $11.6 Interest cost 36.8 15.2 34.5 12.4 Expected return on plan assets (84.2) (35.3) (97.3) (41.2) Prior service cost amortization 0.6 — 0.6 — Actuarial loss amortization 33.3 7.7 39.3 9.4 Settlements 1.8 0.2 — — Other — 1.0 — 0.5 Net Periodic (Benefit) Cost ($2.5) $— ($12.2) ($7.3) Our service costs are primarily included within "Cost of sales" and "Selling and administrative" on our consolidated income statements. The amount of service costs capitalized in the first six months of fiscal years 2022 and 2021 were not material. The non-service related impacts, including pension settlement losses, are presented outside operating income within "Other non-operating income (expense), net." For the six months ended 31 March 2022 and 2021, our cash contributions to funded pension plans and benefit payments under unfunded pension plans were $16.1 and $27.7, respectively. Total contributions for fiscal year 2022 are expected to be approximately $40 to $50. During fiscal year 2021, total contributions were $44.6. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation We are involved in various legal proceedings, including commercial, competition, environmental, intellectual property, regulatory, product liability, and insurance matters. We do not currently believe there are any legal proceedings, individually or in the aggregate, that are reasonably possible to have a material impact on our financial condition, results of operations, or cash flows. 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 $38 at 31 March 2022) on Air Products Brasil Ltda. This fine was based on a recommendation by a unit of the Brazilian Ministry of Justice, following an investigation beginning in 2003, which alleged 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. In the event of an adverse final judgment, we estimate the maximum possible loss to be the full amount of the fine of R$179.2 million (approximately $38 at 31 March 2022) plus interest accrued thereon until final disposition of the proceedings. Additionally, Winter Storm Uri, a severe winter weather storm in the U.S. Gulf Coast in February 2021, disrupted our operations and caused power and natural gas prices to spike significantly in Texas. We remain in litigation of a dispute regarding energy management services related to the impact of this event, and other disputes may arise from such power price increases. In addition, legislative action may affect power supply and energy management charges. While it is reasonably possible that we could incur additional costs related to power supply and energy management services in Texas related to the winter storm, it is too early to estimate potential losses, if any, given significant unknowns resulting from the unusual nature of this event. 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 32 sites on which a final settlement or remediation has not been achieved where we, usually along with others, have been designated a potentially responsible party by environmental authorities 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 March 2022 and 30 September 2021 included an accrual of $74.1 and $76.7, 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 $73 to a reasonably possible upper exposure of $87 as of 31 March 2022. 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 March 2022, $38.7 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 recognized a before-tax expense of $42 in fiscal year 2006 in results from discontinued operations and recorded an environmental accrual of $42 in continuing operations on the consolidated balance sheets. During the second quarter of fiscal year 2020, we completed an updated cost review of the environmental remediation status at the Pace facility. The review was completed in conjunction with requirements to maintain financial assurance per the Consent Order issued by the FDEP discussed below. Based on our review, we expect ongoing activities to continue for 30 years. Additionally, we will require near-term spending to install new groundwater recovery wells and ancillary equipment, in addition to future capital to consider the extended time horizon for remediation at the site. As a result of these changes, we increased our environmental accrual for this site by $19 in continuing operations on the consolidated balance sheets and recognized a before-tax expense of $19 in results from discontinued operations in the second quarter of fiscal year 2020. There have been no significant changes to the estimated exposure range related to the Pace facility since the second quarter of fiscal year 2020. 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 corrective action management unit. Several groundwater recovery systems have been installed to contain and remove contamination from groundwater. We completed an extensive assessment of the site to determine the efficacy of existing measures, 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 remediate groundwater. 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 and have completed additional field work during 2021 to support the design of an improved groundwater recovery network with the objective of targeting areas of higher contaminant concentration and avoiding areas of high groundwater iron which has proven to be a significant operability issue for the project. 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, along with the completion of a cost review every 5 years. Piedmont At 31 March 2022, $8.9 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 ("SCDHEC") to address both contaminated soil and groundwater. Numerous areas of soil contamination have been addressed, and contaminated groundwater is being recovered and treated. The SCDHEC issued its final approval to the site-wide feasibility study on 13 June 2017 and the Record of Decision for the site on 27 June 2018, after which we signed a Consent Agreement Amendment memorializing our obligations to complete the cleanup of the site. Remediation has started in accordance with the design, which includes in-situ chemical oxidation treatment, as well as the installation of a soil vapor extraction system to remove volatile organic compounds from the unsaturated soils beneath the impacted areas of the plant. We estimate that source area remediation and groundwater recovery and treatment will continue through 2029. Thereafter, we expect this site to go into a state of monitored natural attenuation through 2047. We recognized a before-tax expense of $24 in 2008 as a component of income from discontinued operations and recorded an environmental liability of $24 in continuing operations on the consolidated balance sheets. There have been no significant changes to the estimated exposure. Pasadena At 31 March 2022, $11.0 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 until 2042. We plan to perform additional work to address other environmental obligations at the site. This additional work includes remediating, as required, impacted soils, investigating groundwater west of the former PUI facility, performing post closure care for two closed RCRA surface impoundment units, establishing engineering controls, and performing a chemical-reduction pilot study to treat impacted soils. In 2012, we estimated the total exposure at this site to be $13. There have been no significant changes to the estimated exposure. Unconditional Purchase Obligations We have unconditional purchase obligations related to helium and rare gases totaling approximately $8.7 billion as of 31 March 2022. The majority of these obligations occur after fiscal year 2027. Helium purchases include crude feedstock supply to helium refining plants in North America as well as refined helium purchases from sources around the world. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION We have various share-based compensation programs, which include deferred stock units, stock options, and restricted stock. During the six months ended 31 March 2022, we granted market-based and time-based deferred stock units. 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 March 2022, there were 1.3 million shares available for future grant under our Long-Term Incentive Plan ("LTIP"). Share-based compensation cost recognized on the consolidated income statements is summarized below: Three Months Ended Six Months Ended 31 March 31 March 2022 2021 2022 2021 Before-tax share-based compensation cost $10.5 $12.9 $27.3 $22.4 Income tax benefit (2.6) (3.1) (6.7) (5.4) After-tax share-based compensation cost $7.9 $9.8 $20.6 $17.0 Before-tax share-based compensation cost is primarily included in "Selling and administrative" on our consolidated income statements. The amount of share-based compensation cost capitalized in the first six months of fiscal years 2022 and 2021 was not material. Deferred Stock Units During the six months ended 31 March 2022, we granted 74,364 market-based deferred stock units. The market-based deferred stock units are earned over the performance period beginning 1 October 2021 and ending 30 September 2024, conditioned on the level of our total shareholder return in relation to a defined peer group over the three-year performance period. The market-based deferred stock units had an estimated grant-date fair value of $427.23 per unit, which was estimated using a Monte Carlo simulation model. 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 30.5 % Risk-free interest rate 0.8 % Expected dividend yield 2.1 % In addition, during the six months ended 31 March 2022, we granted 106,721 time-based deferred stock units at a weighted average grant-date fair value of $283.34. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The tables below summarize changes in accumulated other comprehensive loss ("AOCL"), net of tax, attributable to Air Products for the three and six months ended 31 March 2022: Derivatives Foreign Pension and Total Balance at 31 December 2021 ($17.5) ($857.0) ($577.8) ($1,452.3) Other comprehensive loss before reclassifications (39.4) (58.8) — (98.2) Amounts reclassified from AOCL 26.0 — 15.9 41.9 Net current period other comprehensive (loss) income (13.4) (58.8) 15.9 (56.3) Amount attributable to noncontrolling interests 1.1 (4.2) 0.1 (3.0) Balance at 31 March 2022 ($32.0) ($911.6) ($562.0) ($1,505.6) Derivatives Foreign Pension and Total Balance at 30 September 2021 ($28.3) ($893.8) ($593.8) ($1,515.9) Other comprehensive loss before reclassifications (39.9) (18.2) — (58.1) Amounts reclassified from AOCL 44.7 — 31.9 76.6 Net current period other comprehensive income (loss) 4.8 (18.2) 31.9 18.5 Amount attributable to noncontrolling interests 8.5 (0.4) 0.1 8.2 Balance at 31 March 2022 ($32.0) ($911.6) ($562.0) ($1,505.6) The table below summarizes the reclassifications out of AOCL and the affected line item on the consolidated income statements: Three Months Ended Six Months Ended 31 March 31 March 2022 2021 2022 2021 Loss on Cash Flow Hedges, net of tax Sales $0.2 $0.1 $0.5 $0.2 Cost of sales 0.3 (1.4) 0.2 (1.3) Interest expense 0.9 0.9 1.8 1.8 Other non-operating income (expense), net 24.6 36.4 42.2 34.0 Total Loss on Cash Flow Hedges, net of tax $26.0 $36.0 $44.7 $34.7 Pension and Postretirement Benefits, net of tax (A) $15.9 $18.3 $31.9 $36.6 (A) The components of net periodic benefit cost reclassified out of AOCL include items such as prior service cost amortization, actuarial loss amortization, and settlements and are included in “Other non-operating income (expense), net” on the consolidated income statements. Refer to Note 12, Retirement Benefits , for additional information. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The table below details the computation of basic and diluted earnings per share ("EPS"): Three Months Ended Six Months Ended 31 March 31 March 2022 2021 2022 2021 Numerator Net income from continuing operations $530.5 $473.1 $1,090.9 $944.8 Net income from discontinued operations — — — 10.3 Net Income Attributable to Air Products $530.5 $473.1 $1,090.9 $955.1 Denominator (in millions) Weighted average common shares — Basic 222.0 221.6 222.0 221.6 Effect of dilutive securities Employee stock option and other award plans 0.5 0.9 0.5 0.9 Weighted average common shares — Diluted 222.5 222.5 222.5 222.5 Per Share Data* Basic EPS from continuing operations $2.39 $2.13 $4.91 $4.26 Basic EPS from discontinued operations — — — 0.05 Basic EPS Attributable to Air Products $2.39 $2.13 $4.91 $4.31 Diluted EPS from continuing operations $2.38 $2.13 $4.90 $4.25 Diluted EPS from discontinued operations — — — 0.05 Diluted EPS Attributable to Air Products $2.38 $2.13 $4.90 $4.29 *EPS is calculated independently for each component and may not sum to total EPS due to rounding. For the three and six months ended 31 March 2022 and 2021, there were no antidilutive outstanding share-based awards. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Effective Tax Rate Our effective tax rate was 18.6% and 17.8% for the three and six months ended 31 March 2022, respectively. Our effective tax rate was 20.4% and 19.8% for the three and six months ended 31 March 2021, respectively. Cash Paid for Taxes (Net of Cash Refunds) Income tax payments, net of refunds, were $236.9 and $223.8 for the six months ended 31 March 2022 and 2021, respectively. Fiscal year 2021 reflects an income tax refund of $6.7 that is related to cash provided by discontinued operations. |
Supplemental Information
Supplemental Information | 6 Months Ended |
Mar. 31, 2022 | |
Disclosure Text Block Supplement [Abstract] | |
Supplemental Information | SUPPLEMENTAL INFORMATION Related Party Transactions We have related party sales to some of our equity affiliates and joint venture partners as well as other income primarily from fees charged for use of Air Products' patents and technology. Sales to and other income from related parties totaled approximately $60 and $125 for the three and six months ended 31 March 2022, respectively, and $40 and $90 for the three and six months ended 31 March 2021, respectively. Sales agreements with related parties include terms that are consistent with those that we believe would have been negotiated at an arm’s length with an independent party. As of 31 March 2022 and 30 September 2021, our consolidated balance sheets included related party trade receivables of approximately $185 and $90, respectively. We also have related party debt primarily for a loan with our joint venture partner, Lu’An Clean Energy Company, which partially funded the acquisition of their assets by a consolidated joint venture in 2018. Total related party debt, including the current portion, was $371.1 and $358.4 as of 31 March 2022 and 30 September 2021, respectively. Facility Closure During the second quarter of fiscal year 2021, we recorded a charge of $23.2 primarily for a noncash write-down of assets associated with a contract termination in the Americas segment. This charge is reflected as "Facility closure" on our consolidated income statements for the three and six months ended 31 March 2021 and was not recorded in segment results. Changes in Estimates Changes in estimates on projects accounted for under the cost incurred input method are recognized as a cumulative adjustment for the inception-to-date effect of such change. We recorded changes to project cost estimates during the first six months of fiscal years 2022 and 2021 for which the impact to operating income was not material. Our changes in estimates would not have significantly impacted amounts recorded in prior years. Lessee Accounting During the six months ended 31 March 2022, we recorded noncash right-of-use asset additions of approximately $150, primarily for operating leases that had not yet commenced as of 30 September 2021. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION Our reporting segments reflect the manner in which our chief operating decision maker reviews results and allocates resources. Effective 1 October 2021, we report our results under the following five reporting segments: • Americas; • Asia; • Europe; • Middle East and India; and • Corporate and other Except for 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 Corporate and other segment includes the aggregation of three operating segments that meet the aggregation criteria under GAAP. Segment Reorganization The segment results presented below reflect the segment reorganization announced on 4 November 2021. The reorganization included the separation of our former Industrial Gases – EMEA (Europe, Middle East, and Africa) segment into two separate reporting segments: (1) Europe and (2) Middle East and India. The results of an affiliate formerly reflected in the Asia segment are now reported in the Middle East and India segment. Additionally, the results of our Industrial Gases – Global operating segment are reflected in the Corporate and other segment. The prior year information presented below has been updated to conform with the fiscal year 2022 presentation. Summary by Business Segment Americas Asia Europe Middle East Corporate Total Three Months Ended 31 March 2022 Sales $1,186.6 $751.2 $738.6 $28.9 $239.8 $2,945.1 (A) Operating income (loss) 275.5 203.6 116.4 4.8 (38.4) 561.9 (B) Depreciation and amortization 153.7 111.8 50.3 6.9 13.2 335.9 Equity affiliates' income 20.1 6.2 23.3 71.1 0.1 120.8 Three Months Ended 31 March 2021 Sales $1,056.1 $697.5 $558.4 $26.2 $163.8 $2,502.0 (A) Operating income (loss) 263.4 198.5 132.9 6.7 (66.6) 534.9 (B) Depreciation and amortization 153.3 109.7 51.0 6.6 8.7 329.3 Equity affiliates' income 32.3 7.1 12.6 16.1 1.7 69.8 (A) Sales relate to external customers only. All intersegment sales are eliminated in consolidation. (B) Refer to the Reconciliation to Consolidated Results section below. Americas Asia Europe Middle East Corporate Total Six Months Ended 31 March 2022 Sales $2,410.7 $1,531.6 $1,482.8 $52.6 $461.6 $5,939.3 (A) Operating income (loss) 542.7 424.7 215.6 9.6 (107.7) 1,084.9 (B) Depreciation and amortization 309.0 222.6 100.1 13.0 23.5 668.2 Equity affiliates' income 54.3 12.8 37.2 163.4 0.9 268.6 Six Months Ended 31 March 2021 Sales $1,989.1 $1,415.0 $1,101.9 $45.7 $325.5 $4,877.2 (A) Operating income (loss) 489.2 413.3 270.4 10.7 (109.6) 1,074.0 (B) Depreciation and amortization 305.1 217.6 100.3 12.7 17.3 653.0 Equity affiliates' income 54.6 15.9 27.5 37.3 3.8 139.1 Total Assets 31 March 2022 $7,801.9 $7,712.6 $3,933.9 $2,676.8 $5,324.5 $27,449.7 30 September 2021 7,092.5 7,349.4 3,830.3 800.6 7,786.4 26,859.2 (A) Sales relate to external customers only. All intersegment sales are eliminated in consolidation. (B) Refer to the Reconciliation to Consolidated Results section below. Reconciliation to Consolidated Results The table below reconciles total operating income disclosed in the tables above to consolidated operating income as reflected on our consolidated income statements: Three Months Ended Six Months Ended 31 March 31 March Operating Income 2022 2021 2022 2021 Total $561.9 $534.9 $1,084.9 $1,074.0 Facility closure — (23.2) — (23.2) Gain on exchange with joint venture partner — 36.8 — 36.8 Consolidated Operating Income $561.9 $548.5 $1,084.9 $1,087.6 |
Basis of Presentation and Maj_2
Basis of Presentation and Major Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The interim 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 (the "SEC"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles ("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 disclosures to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the notes to the interim consolidated financial statements. These notes, unless otherwise indicated, are presented on a continuing operations basis. To fully understand the basis of presentation, the interim consolidated financial statements and related notes included herein should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended 30 September 2021 (the "2021 Form 10-K"). Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Consolidated Sales Disaggregated by Supply Mode | The tables below present our consolidated sales disaggregated by supply mode for each of our reporting segments for the three and six months ended 31 March 2022 and 2021. We believe this presentation best depicts the nature, timing, type of customer, and contract terms for our sales. Americas Asia Europe Middle East Corporate Total % Three Months Ended 31 March 2022 On-site $716.5 $460.4 $292.0 $17.3 $— $1,486.2 51 % Merchant 470.1 290.8 446.6 11.6 — 1,219.1 41 % Sale of Equipment — — — — 239.8 239.8 8 % Total $1,186.6 $751.2 $738.6 $28.9 $239.8 $2,945.1 100 % Three Months Ended 31 March 2021 On-site $636.7 $416.0 $182.7 $19.6 $— $1,255.0 50 % Merchant 419.4 281.5 375.7 6.6 — 1,083.2 43 % Sale of Equipment — — — — 163.8 163.8 7 % Total $1,056.1 $697.5 $558.4 $26.2 $163.8 $2,502.0 100 % Americas Asia Europe Middle East Corporate Total % Six Months Ended 31 March 2022 On-site $1,514.1 $912.0 $617.6 $33.6 $— $3,077.3 52 % Merchant 896.6 619.6 865.2 19.0 — 2,400.4 40 % Sale of Equipment — — — — 461.6 461.6 8 % Total $2,410.7 $1,531.6 $1,482.8 $52.6 $461.6 $5,939.3 100 % Six Months Ended 31 March 2021 On-site $1,178.0 $830.9 $359.2 $31.8 $— $2,399.9 49 % Merchant 811.1 584.1 742.7 13.9 — 2,151.8 44 % Sale of Equipment — — — — 325.5 325.5 7 % Total $1,989.1 $1,415.0 $1,101.9 $45.7 $325.5 $4,877.2 100 % |
Schedule of Contract Assets and Liabilities | The table below details balances arising from contracts with customers: 31 March 30 September Balance Sheet Location 2022 2021 Assets Contract assets – current Other receivables and current assets $56.8 $119.4 Contract fulfillment costs – current Other receivables and current assets 226.6 125.5 Liabilities Contract liabilities – current Payables and accrued liabilities 565.8 366.8 Contract liabilities – noncurrent Other noncurrent liabilities 70.8 58.4 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventories are as follows: 31 March 30 September 2022 2021 Finished goods $173.5 $150.7 Work in process 22.3 24.0 Raw materials, supplies and other 311.7 279.2 Inventories $507.5 $453.9 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes to the carrying amount of consolidated goodwill by segment for the six months ended 31 March 2022 are as follows: Americas Asia Europe Middle East Corporate Total Goodwill, net at 30 September 2021 $151.0 $184.3 $533.5 $8.0 $34.7 $911.5 Acquisitions (A) — — 17.0 7.5 — 24.5 Currency translation and other 1.4 (0.3) (24.3) — — (23.2) Goodwill, net at 31 March 2022 $152.4 $184.0 $526.2 $15.5 $34.7 $912.8 (A) We recognized goodwill in the first half of fiscal year 2022 for expected cost synergies associated with small business combinations, of which $3.2 is deductible for tax purposes. 31 March 30 September 2022 2021 Goodwill, gross $1,250.8 $1,239.2 Accumulated impairment losses (A) (338.0) (327.7) Goodwill, net $912.8 $911.5 (A) Accumulated impairment losses include the impacts of currency translation. These losses are attributable to our Latin America reporting unit ("LASA") within the Americas segment. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Instruments | The table below summarizes our outstanding currency price risk management instruments: 31 March 2022 30 September 2021 US$ Years US$ Years Forward Exchange Contracts: Cash flow hedges $3,882.1 0.6 $3,465.2 0.6 Net investment hedges 616.8 2.5 638.0 3.0 Not designated 510.8 0.2 692.6 0.1 Total Forward Exchange Contracts $5,009.7 0.8 $4,795.8 0.8 The table below summarizes our outstanding interest rate management contracts and cross currency interest rate swaps: 31 March 2022 30 September 2021 US$ Average Average Years US$ Average Average Years Interest rate swaps $800.0 Various 1.64 % 5.5 $200.0 LIBOR 2.76 % 0.1 Cross currency interest rate swaps $214.4 4.34 % 3.15 % 1.7 $210.2 4.32 % 3.14 % 2.2 Cross currency interest rate swaps $1,013.6 4.90 % 2.92 % 2.3 $1,005.7 4.98 % 2.93 % 2.7 Cross currency interest rate swaps $— — % — % 0.0 $4.2 5.39 % 3.54 % 2.2 |
Schedule of Cumulative Basis Adjustments for Fair Value Hedges | The table below provides the amounts recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: Carrying amounts of hedged item Cumulative hedging adjustment, included in carrying amount 31 March 30 September 31 March 30 September Balance Sheet Location 2022 2021 2022 2021 Current portion of long-term debt $— $400.5 $— $0.5 Long-term debt 2,065.1 — (24.0) — |
Schedule of Fair Value and Balance Sheet Location of Derivative Instruments | The table below summarizes the fair value and balance sheet location of our outstanding derivatives: Balance Sheet 31 March 30 September Balance Sheet 31 March 30 September Location 2022 2021 Location 2022 2021 Derivatives Designated as Hedging Instruments: Forward exchange contracts Other receivables and current assets $43.9 $35.1 Payables and accrued liabilities $50.9 $57.2 Interest rate management contracts Other receivables and current assets 10.6 16.0 Payables and accrued liabilities 22.2 5.2 Forward exchange contracts Other noncurrent assets 6.2 5.5 Other noncurrent liabilities 18.7 25.2 Interest rate management contracts Other noncurrent assets 15.5 18.1 Other noncurrent liabilities 76.5 27.5 Total Derivatives Designated as Hedging Instruments $76.2 $74.7 $168.3 $115.1 Derivatives Not Designated as Hedging Instruments: Forward exchange contracts Other receivables and current assets 3.7 8.7 Payables and accrued liabilities 3.1 6.4 Total Derivatives Not Designated as Hedging Instruments $3.7 $8.7 $3.1 $6.4 Total Derivatives $79.9 $83.4 $171.4 $121.5 |
Schedule of Gains and Losses Recognized in Other Comprehensive Income Related Net Investment and Cash Flow Hedges | The tables below summarize gains (losses) recognized in other comprehensive income during the period related to our net investment and cash flow hedging relationships: Three Months Ended Six Months Ended 31 March 31 March 2022 2021 2022 2021 Net Investment Hedging Relationships Forward exchange contracts ($4.2) $18.6 $10.3 ($17.3) Foreign currency debt 39.4 63.5 67.0 (0.7) Cross currency interest rate swaps (7.4) 1.9 (9.7) (12.3) Total Amount Recognized in OCI 27.8 84.0 67.6 (30.3) Tax effects (6.9) (21.2) (16.7) 7.4 Net Amount Recognized in OCI $20.9 $62.8 $50.9 ($22.9) Three Months Ended Six Months Ended 31 March 31 March 2022 2021 2022 2021 Derivatives in Cash Flow Hedging Relationships Forward exchange contracts ($40.1) ($57.3) ($63.5) $7.4 Forward exchange contracts, excluded components 2.0 (4.3) (0.7) (7.0) Other (A) (16.6) 43.2 (2.1) (2.3) Total Amount Recognized in OCI (54.7) (18.4) (66.3) (1.9) Tax effects 15.3 13.2 26.4 10.5 Net Amount Recognized in OCI ($39.4) ($5.2) ($39.9) $8.6 |
Schedule of Amounts Recognized in Income Related to Cash Flow and Fair Value Hedges | The tables below summarize the location and amounts recognized in income related to our cash flow and fair value hedging relationships by contract type: Three Months Ended 31 March Sales Cost of Sales Interest Expense Other Non-Operating Income (Expense), Net 2022 2021 2022 2021 2022 2021 2022 2021 Total presented in consolidated income statements that includes effects of hedging below $2,945.1 $2,502.0 $2,151.6 $1,745.5 $32.3 $36.1 $9.1 $16.8 (Gain) Loss Effects of Cash Flow Hedging: Forward Exchange Contracts: Amount reclassified from OCI into income $0.3 $0.1 $0.4 ($1.8) $— $— $26.4 $54.0 Amount excluded from effectiveness testing recognized in earnings based on amortization approach — — — — — — 1.1 2.6 Other: Amount reclassified from OCI into income — — — — 1.5 1.4 4.9 (8.3) Total (Gain) Loss Reclassified from OCI to Income 0.3 0.1 0.4 (1.8) 1.5 1.4 32.4 48.3 Tax effects (0.1) — (0.1) 0.4 (0.6) (0.5) (7.8) (11.9) Net (Gain) Loss Reclassified from OCI to Income $0.2 $0.1 $0.3 ($1.4) $0.9 $0.9 $24.6 $36.4 (Gain) Loss Effects of Fair Value Hedging: Other: Hedged items $— $— $— $— ($22.0) ($1.4) $— $— Derivatives designated as hedging instruments — — — — 22.0 1.4 — — Total (Gain) Loss Recognized in Income $— $— $— $— $— $— $— $— Six Months Ended 31 March Sales Cost of Sales Interest Expense Other Non-Operating Income (Expense), Net 2022 2021 2022 2021 2022 2021 2022 2021 Total presented in consolidated income statements that includes effects of hedging below $5,939.3 $4,877.2 $4,375.2 $3,377.9 $62.8 $72.8 $31.7 $35.4 (Gain) Loss Effects of Cash Flow Hedging: Forward Exchange Contracts: Amount reclassified from OCI into income $0.7 $0.2 $0.3 ($1.9) $— $— $40.9 $2.4 Amount excluded from effectiveness testing recognized in earnings based on amortization approach — — — — — — 2.4 5.4 Other: Amount reclassified from OCI into income — — — — 2.9 2.8 12.2 37.0 Total (Gain) Loss Reclassified from OCI to Income 0.7 0.2 0.3 (1.9) 2.9 2.8 55.5 44.8 Tax effects (0.2) — (0.1) 0.6 (1.1) (1.0) (13.3) (10.8) Net (Gain) Loss Reclassified from OCI to Income $0.5 $0.2 $0.2 ($1.3) $1.8 $1.8 $42.2 $34.0 (Gain) Loss Effects of Fair Value Hedging: Other: Hedged items $— $— $— $— ($24.5) ($2.7) $— $— Derivatives designated as hedging instruments — — — — 24.5 2.7 — — Total (Gain) Loss Recognized in Income $— $— $— $— $— $— $— $— |
Schedule of Effects of Derivatives Not Designated as a Hedging Instrument | The tables below summarize the location and amounts recognized in income related to our derivatives not designated as hedging instruments by contract type: Three Months Ended 31 March Other Income (Expense), Net Other Non-Operating Income (Expense), Net 2022 2021 2022 2021 The Effects of Derivatives Not Designated as Hedging Instruments: Forward Exchange Contracts $0.3 ($0.3) ($0.7) ($0.3) Other — — 0.1 (0.1) Total (Gain) Loss Recognized in Income $0.3 ($0.3) ($0.6) ($0.4) Six Months Ended 31 March Other Income (Expense), Net Other Non-Operating Income (Expense), Net 2022 2021 2022 2021 The Effects of Derivatives Not Designated as Hedging Instruments: Forward Exchange Contracts $1.4 $2.5 ($1.3) ($1.6) Other — — 0.2 0.4 Total (Gain) Loss Recognized in Income $1.4 $2.5 ($1.1) ($1.2) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Value and Fair Value of Financial Instruments | The carrying values and fair values of financial instruments were as follows: 31 March 2022 30 September 2021 Carrying Value Fair Value Carrying Value Fair Value Assets Derivatives Forward exchange contracts $53.8 $53.8 $49.3 $49.3 Interest rate management contracts 26.1 26.1 34.1 34.1 Liabilities Derivatives Forward exchange contracts $72.7 $72.7 $88.8 $88.8 Interest rate management contracts 98.7 98.7 32.7 32.7 Long-term debt, including current portion and related party 7,234.3 6,905.6 7,634.8 7,812.2 |
Schedule of Fair Value Assets and Liabilities Measured On Recurring Basis | The table below summarizes assets and liabilities on the consolidated balance sheets that are measured at fair value on a recurring basis: 31 March 2022 30 September 2021 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Assets at Fair Value Derivatives Forward exchange contracts $53.8 $— $53.8 $— $49.3 $— $49.3 $— Interest rate management contracts 26.1 — 26.1 — 34.1 — 34.1 — Total Assets at Fair Value $79.9 $— $79.9 $— $83.4 $— $83.4 $— Liabilities at Fair Value Derivatives Forward exchange contracts $72.7 $— $72.7 $— $88.8 $— $88.8 $— Interest rate management contracts 98.7 — 98.7 — 32.7 — 32.7 — Total Liabilities at Fair Value $171.4 $— $171.4 $— $121.5 $— $121.5 $— |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | The components of net periodic (benefit) cost for our defined benefit pension plans for the three and six months ended 31 March 2022 and 2021 were as follows: Pension Benefits 2022 2021 Three Months Ended 31 March U.S. International U.S. International Service cost $4.6 $5.6 $5.3 $5.9 Interest cost 18.4 7.6 17.3 6.3 Expected return on plan assets (42.1) (17.6) (48.7) (21.0) Prior service cost amortization 0.3 — 0.3 — Actuarial loss amortization 16.6 3.8 19.6 4.8 Settlements 0.9 0.2 — — Other — 0.2 — 0.2 Net Periodic (Benefit) Cost ($1.3) ($0.2) ($6.2) ($3.8) Pension Benefits 2022 2021 Six Months Ended 31 March U.S. International U.S. International Service cost $9.2 $11.2 $10.7 $11.6 Interest cost 36.8 15.2 34.5 12.4 Expected return on plan assets (84.2) (35.3) (97.3) (41.2) Prior service cost amortization 0.6 — 0.6 — Actuarial loss amortization 33.3 7.7 39.3 9.4 Settlements 1.8 0.2 — — Other — 1.0 — 0.5 Net Periodic (Benefit) Cost ($2.5) $— ($12.2) ($7.3) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Recognized Share-Based Compensation Cost | Share-based compensation cost recognized on the consolidated income statements is summarized below: Three Months Ended Six Months Ended 31 March 31 March 2022 2021 2022 2021 Before-tax share-based compensation cost $10.5 $12.9 $27.3 $22.4 Income tax benefit (2.6) (3.1) (6.7) (5.4) After-tax share-based compensation cost $7.9 $9.8 $20.6 $17.0 |
Schedule of Assumptions for Fair Value of Market-Based Deferred Stock Units | The calculation of the fair value of market-based deferred stock units used the following assumptions: Expected volatility 30.5 % Risk-free interest rate 0.8 % Expected dividend yield 2.1 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The tables below summarize changes in accumulated other comprehensive loss ("AOCL"), net of tax, attributable to Air Products for the three and six months ended 31 March 2022: Derivatives Foreign Pension and Total Balance at 31 December 2021 ($17.5) ($857.0) ($577.8) ($1,452.3) Other comprehensive loss before reclassifications (39.4) (58.8) — (98.2) Amounts reclassified from AOCL 26.0 — 15.9 41.9 Net current period other comprehensive (loss) income (13.4) (58.8) 15.9 (56.3) Amount attributable to noncontrolling interests 1.1 (4.2) 0.1 (3.0) Balance at 31 March 2022 ($32.0) ($911.6) ($562.0) ($1,505.6) Derivatives Foreign Pension and Total Balance at 30 September 2021 ($28.3) ($893.8) ($593.8) ($1,515.9) Other comprehensive loss before reclassifications (39.9) (18.2) — (58.1) Amounts reclassified from AOCL 44.7 — 31.9 76.6 Net current period other comprehensive income (loss) 4.8 (18.2) 31.9 18.5 Amount attributable to noncontrolling interests 8.5 (0.4) 0.1 8.2 Balance at 31 March 2022 ($32.0) ($911.6) ($562.0) ($1,505.6) |
Schedule of Reclassification out of Accumulated Other Comprehensive Income (Loss) | The table below summarizes the reclassifications out of AOCL and the affected line item on the consolidated income statements: Three Months Ended Six Months Ended 31 March 31 March 2022 2021 2022 2021 Loss on Cash Flow Hedges, net of tax Sales $0.2 $0.1 $0.5 $0.2 Cost of sales 0.3 (1.4) 0.2 (1.3) Interest expense 0.9 0.9 1.8 1.8 Other non-operating income (expense), net 24.6 36.4 42.2 34.0 Total Loss on Cash Flow Hedges, net of tax $26.0 $36.0 $44.7 $34.7 Pension and Postretirement Benefits, net of tax (A) $15.9 $18.3 $31.9 $36.6 (A) The components of net periodic benefit cost reclassified out of AOCL include items such as prior service cost amortization, actuarial loss amortization, and settlements and are included in “Other non-operating income (expense), net” on the consolidated income statements. Refer to Note 12, Retirement Benefits , for additional information. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The table below details the computation of basic and diluted earnings per share ("EPS"): Three Months Ended Six Months Ended 31 March 31 March 2022 2021 2022 2021 Numerator Net income from continuing operations $530.5 $473.1 $1,090.9 $944.8 Net income from discontinued operations — — — 10.3 Net Income Attributable to Air Products $530.5 $473.1 $1,090.9 $955.1 Denominator (in millions) Weighted average common shares — Basic 222.0 221.6 222.0 221.6 Effect of dilutive securities Employee stock option and other award plans 0.5 0.9 0.5 0.9 Weighted average common shares — Diluted 222.5 222.5 222.5 222.5 Per Share Data* Basic EPS from continuing operations $2.39 $2.13 $4.91 $4.26 Basic EPS from discontinued operations — — — 0.05 Basic EPS Attributable to Air Products $2.39 $2.13 $4.91 $4.31 Diluted EPS from continuing operations $2.38 $2.13 $4.90 $4.25 Diluted EPS from discontinued operations — — — 0.05 Diluted EPS Attributable to Air Products $2.38 $2.13 $4.90 $4.29 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summary by Business Segment Americas Asia Europe Middle East Corporate Total Three Months Ended 31 March 2022 Sales $1,186.6 $751.2 $738.6 $28.9 $239.8 $2,945.1 (A) Operating income (loss) 275.5 203.6 116.4 4.8 (38.4) 561.9 (B) Depreciation and amortization 153.7 111.8 50.3 6.9 13.2 335.9 Equity affiliates' income 20.1 6.2 23.3 71.1 0.1 120.8 Three Months Ended 31 March 2021 Sales $1,056.1 $697.5 $558.4 $26.2 $163.8 $2,502.0 (A) Operating income (loss) 263.4 198.5 132.9 6.7 (66.6) 534.9 (B) Depreciation and amortization 153.3 109.7 51.0 6.6 8.7 329.3 Equity affiliates' income 32.3 7.1 12.6 16.1 1.7 69.8 (A) Sales relate to external customers only. All intersegment sales are eliminated in consolidation. (B) Refer to the Reconciliation to Consolidated Results section below. Americas Asia Europe Middle East Corporate Total Six Months Ended 31 March 2022 Sales $2,410.7 $1,531.6 $1,482.8 $52.6 $461.6 $5,939.3 (A) Operating income (loss) 542.7 424.7 215.6 9.6 (107.7) 1,084.9 (B) Depreciation and amortization 309.0 222.6 100.1 13.0 23.5 668.2 Equity affiliates' income 54.3 12.8 37.2 163.4 0.9 268.6 Six Months Ended 31 March 2021 Sales $1,989.1 $1,415.0 $1,101.9 $45.7 $325.5 $4,877.2 (A) Operating income (loss) 489.2 413.3 270.4 10.7 (109.6) 1,074.0 (B) Depreciation and amortization 305.1 217.6 100.3 12.7 17.3 653.0 Equity affiliates' income 54.6 15.9 27.5 37.3 3.8 139.1 Total Assets 31 March 2022 $7,801.9 $7,712.6 $3,933.9 $2,676.8 $5,324.5 $27,449.7 30 September 2021 7,092.5 7,349.4 3,830.3 800.6 7,786.4 26,859.2 (A) Sales relate to external customers only. All intersegment sales are eliminated in consolidation. (B) Refer to the Reconciliation to Consolidated Results section below. |
Reconciliation of Segments to Consolidated Operating Income | The table below reconciles total operating income disclosed in the tables above to consolidated operating income as reflected on our consolidated income statements: Three Months Ended Six Months Ended 31 March 31 March Operating Income 2022 2021 2022 2021 Total $561.9 $534.9 $1,084.9 $1,074.0 Facility closure — (23.2) — (23.2) Gain on exchange with joint venture partner — 36.8 — 36.8 Consolidated Operating Income $561.9 $548.5 $1,084.9 $1,087.6 |
Basis of Presentation and Maj_3
Basis of Presentation and Major Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Discontinued Operations [Line Items] | |||||
Sales | $ 2,945.1 | $ 2,502 | $ 5,939.3 | $ 4,877.2 | |
Russia | |||||
Discontinued Operations [Line Items] | |||||
Assets held for sale | 54.1 | 54.1 | |||
Sales | $ 25 | ||||
Ukraine | |||||
Discontinued Operations [Line Items] | |||||
Sales | $ 5 | ||||
Suspended asset under construction | $ 45 | $ 45 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Millions | Feb. 23, 2021USD ($)business_entity | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020 |
Business Acquisition [Line Items] | ||||||
Proceeds from sale of assets and investments | $ 25.3 | $ 14.8 | ||||
Gain on exchange with joint venture partner | $ 0 | $ 36.8 | $ 0 | 36.8 | ||
Gain on exchange with joint venture partner, after tax | $ 27.3 | $ 27.3 | ||||
TIG - Portion of Business Acquired | ||||||
Business Acquisition [Line Items] | ||||||
Ownership interest subsequent to acquisition date (percent) | 100.00% | |||||
Proceeds from sale of assets and investments | $ 10.8 | |||||
Gain from revaluation of previously held equity interest to acquisition date fair value | 12.7 | |||||
Acquisition date fair value of previously held equity interest | $ 15.4 | |||||
Tyczka Industrie-Gases Gmbh | ||||||
Business Acquisition [Line Items] | ||||||
Ownership interest (percent) in former equity method investment | 50.00% | |||||
Number of businesses after separation | business_entity | 2 | |||||
Gain from disposition of interest in equity method investment | $ 24.1 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 2,945.1 | $ 2,502 | $ 5,939.3 | $ 4,877.2 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 2,945.1 | $ 2,502 | $ 5,939.3 | $ 4,877.2 |
Percent sales by supply mode | 100.00% | 100.00% | 100.00% | 100.00% |
Americas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 1,186.6 | $ 1,056.1 | $ 2,410.7 | $ 1,989.1 |
Asia | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 751.2 | 697.5 | 1,531.6 | 1,415 |
Europe | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 738.6 | 558.4 | 1,482.8 | 1,101.9 |
Middle East and India | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 28.9 | 26.2 | 52.6 | 45.7 |
Corporate and other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 239.8 | 163.8 | 461.6 | 325.5 |
On-site | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 1,486.2 | $ 1,255 | $ 3,077.3 | $ 2,399.9 |
Percent sales by supply mode | 51.00% | 50.00% | 52.00% | 49.00% |
On-site | Americas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 716.5 | $ 636.7 | $ 1,514.1 | $ 1,178 |
On-site | Asia | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 460.4 | 416 | 912 | 830.9 |
On-site | Europe | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 292 | 182.7 | 617.6 | 359.2 |
On-site | Middle East and India | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 17.3 | 19.6 | 33.6 | 31.8 |
On-site | Corporate and other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Merchant | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 1,219.1 | $ 1,083.2 | $ 2,400.4 | $ 2,151.8 |
Percent sales by supply mode | 41.00% | 43.00% | 40.00% | 44.00% |
Merchant | Americas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 470.1 | $ 419.4 | $ 896.6 | $ 811.1 |
Merchant | Asia | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 290.8 | 281.5 | 619.6 | 584.1 |
Merchant | Europe | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 446.6 | 375.7 | 865.2 | 742.7 |
Merchant | Middle East and India | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 11.6 | 6.6 | 19 | 13.9 |
Merchant | Corporate and other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Sale of Equipment | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 239.8 | $ 163.8 | $ 461.6 | $ 325.5 |
Percent sales by supply mode | 8.00% | 7.00% | 8.00% | 7.00% |
Sale of Equipment | Americas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 0 | $ 0 | $ 0 | $ 0 |
Sale of Equipment | Asia | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Sale of Equipment | Europe | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Sale of Equipment | Middle East and India | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 0 | 0 | 0 | 0 |
Sale of Equipment | Corporate and other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 239.8 | $ 163.8 | $ 461.6 | $ 325.5 |
Revenue Recognition (Remaining
Revenue Recognition (Remaining Performance Obligations) (Details) $ in Billions | Mar. 31, 2022USD ($) |
Revenue from Contract with Customer [Abstract] | |
Transaction price allocated to remaining performance obligations | $ 24 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining performance obligation | 50.00% |
Estimated timing of recognition of performance obligation | 5 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining performance obligation | 50.00% |
Estimated timing of recognition of performance obligation |
Revenue Recognition (Contract A
Revenue Recognition (Contract Assets and Liabilities) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2022 | Sep. 30, 2021 | |
Contract Assets and Liabilities | ||
Contract assets - current | $ 56.8 | $ 119.4 |
Contract fulfillment costs - current | 226.6 | 125.5 |
Contract liabilities - current | 565.8 | 366.8 |
Contract liabilities - noncurrent | 70.8 | $ 58.4 |
Revenue recognized that was previously included in current contract liabilities | $ 155 |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Discontinued Operations [Line Items] | |||
Cash provided by operating activities | $ 0 | $ 6.7 | |
PMD | Discontinued operations | |||
Discontinued Operations [Line Items] | |||
Tax benefit related to settlement | $ (10.3) | $ (10.3) |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 173.5 | $ 150.7 |
Work in process | 22.3 | 24 |
Raw materials, supplies and other | 311.7 | 279.2 |
Inventories | $ 507.5 | $ 453.9 |
Equity Affiliates (Details)
Equity Affiliates (Details) - USD ($) $ in Millions | Oct. 27, 2021 | Sep. 27, 2021 | Dec. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2015 | Mar. 31, 2022 | Sep. 30, 2021 |
JIGPC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Payments for equity investment | $ 1,600 | ||||||
Ownership interest percentage | 55.00% | 55.00% | |||||
Ownership percentage attributable to noncontrolling partner | 4.00% | 4.00% | |||||
Investment balance | $ 1,779 | ||||||
JIGPC | Non-controlling Interests | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Payments for equity investment | $ 130 | ||||||
JIGPC | Forecast | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Payments for equity investment | $ 1,000 | ||||||
JGPC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest percentage | 26.00% | ||||||
JIGPC | Aramco | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Definitive agreement for acquisition of assets, value | $ 12,000 | ||||||
Acquisition of assets | $ 7,000 | ||||||
Term of agreement to commission, operate, and maintain the project assets | 25 years | ||||||
JGPC | Aramco | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Term of oxygen and nitrogen supply agreement | 20 years | ||||||
Obligation for equity contributions based on share of advances received by joint venture under bridge loan | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Obligation for future contribution to an equity affiliate | $ 0 | $ 94.4 | |||||
Noncash adjustment for reduction of contractual obligation | $ 94.4 |
Goodwill (Schedule of Goodwill
Goodwill (Schedule of Goodwill by Segment) (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | $ 911.5 |
Acquisitions | 24.5 |
Currency translation and other | (23.2) |
Goodwill, net, ending balance | 912.8 |
Business combinations, tax deductible goodwill | 3.2 |
Americas | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 151 |
Acquisitions | 0 |
Currency translation and other | 1.4 |
Goodwill, net, ending balance | 152.4 |
Asia | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 184.3 |
Acquisitions | 0 |
Currency translation and other | (0.3) |
Goodwill, net, ending balance | 184 |
Europe | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 533.5 |
Acquisitions | 17 |
Currency translation and other | (24.3) |
Goodwill, net, ending balance | 526.2 |
Middle East and India | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 8 |
Acquisitions | 7.5 |
Currency translation and other | 0 |
Goodwill, net, ending balance | 15.5 |
Corporate and other | |
Goodwill [Roll Forward] | |
Goodwill, net, beginning balance | 34.7 |
Acquisitions | 0 |
Currency translation and other | 0 |
Goodwill, net, ending balance | $ 34.7 |
Goodwill (Schedule of Accumulat
Goodwill (Schedule of Accumulated Impairment Losses) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 |
Goodwill [Line Items] | ||
Goodwill, gross | $ 1,250.8 | $ 1,239.2 |
Goodwill, net | 912.8 | 911.5 |
Americas | ||
Goodwill [Line Items] | ||
Goodwill, accumulated impairment losses | (338) | (327.7) |
Goodwill, net | $ 152.4 | $ 151 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Details) € in Millions | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2022EUR (€) | Mar. 31, 2022USD ($) | Sep. 30, 2021EUR (€) | Sep. 30, 2021USD ($) | |
Derivative [Line Items] | ||||
Net liability position of derivatives with credit risk-related contingent features | $ 110,100,000 | $ 53,400,000 | ||
Collateral posted on liability positions with credit risk-related contingent features | 0 | |||
Collateral amount that counterparties would be required to post | $ 28,600,000 | 38,100,000 | ||
Forward exchange contracts | Cash Flow Hedges | ||||
Derivative [Line Items] | ||||
Maximum remaining maturity of foreign currency derivatives | 3 years 9 months 18 days | 3 years 9 months 18 days | ||
Foreign currency debt | Euro Denominated | ||||
Derivative [Line Items] | ||||
Notional amount included in designated foreign currency denominated debt | € 1,304.6 | $ 1,443,900,000 | € 1,297.5 | $ 1,502,600,000 |
Financial Instruments (Currency
Financial Instruments (Currency Price Risk Management Instruments) (Details) - Forward exchange contracts - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Sep. 30, 2021 | |
Derivative [Line Items] | ||
US$ Notional | $ 5,009.7 | $ 4,795.8 |
Years Average Maturity | 9 months 18 days | 9 months 18 days |
Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 3,882.1 | $ 3,465.2 |
Years Average Maturity | 7 months 6 days | 7 months 6 days |
Designated as Hedging Instrument | Net Investment Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 616.8 | $ 638 |
Years Average Maturity | 2 years 6 months | 3 years |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
US$ Notional | $ 510.8 | $ 692.6 |
Years Average Maturity | 2 months 12 days | 1 month 6 days |
Financial Instruments (Interest
Financial Instruments (Interest Rate Management Contracts and Cross Currency Interest Rate Swaps) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Sep. 30, 2021 | |
Interest Rate Swaps Contracts | Designated as Hedging Instrument | Fair Value Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 800 | $ 200 |
Average Pay % | Various | LIBOR |
Average Receive % | 1.64% | 2.76% |
Years Average Maturity | 5 years 6 months | 1 month 6 days |
Cross currency interest rate swaps | Designated as Hedging Instrument | Net Investment Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 214.4 | $ 210.2 |
Average Pay % | 4.34% | 4.32% |
Average Receive % | 3.15% | 3.14% |
Years Average Maturity | 1 year 8 months 12 days | 2 years 2 months 12 days |
Cross currency interest rate swaps | Designated as Hedging Instrument | Cash Flow Hedges | ||
Derivative [Line Items] | ||
US$ Notional | $ 1,013.6 | $ 1,005.7 |
Average Pay % | 4.90% | 4.98% |
Average Receive % | 2.92% | 2.93% |
Years Average Maturity | 2 years 3 months 18 days | 2 years 8 months 12 days |
Cross currency interest rate swaps | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
US$ Notional | $ 0 | $ 4.2 |
Average Pay % | 0.00% | 5.39% |
Average Receive % | 0.00% | 3.54% |
Years Average Maturity | 0 years | 2 years 2 months 12 days |
Financial Instruments (Carrying
Financial Instruments (Carrying Amount and Cumulative Hedging Adjustment) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 |
Current portion of long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying amounts of hedged item | $ 0 | $ 400.5 |
Cumulative hedging adjustment, included in carrying amount | 0 | 0.5 |
Long-term debt | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying amounts of hedged item | 2,065.1 | 0 |
Cumulative hedging adjustment, included in carrying amount | $ (24) | $ 0 |
Financial Instruments (Fair Val
Financial Instruments (Fair Value and Balance Sheet Location of Derivatives) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 |
Derivative [Line Items] | ||
Total Derivatives, Assets | $ 79.9 | $ 83.4 |
Total Derivatives, Liabilities | 171.4 | 121.5 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 76.2 | 74.7 |
Total Derivatives, Liabilities | 168.3 | 115.1 |
Designated as Hedging Instrument | Other Receivables and Current Assets | Forward exchange contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 43.9 | 35.1 |
Designated as Hedging Instrument | Other Receivables and Current Assets | Interest Rate Management Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 10.6 | 16 |
Designated as Hedging Instrument | Other Noncurrent Assets | Forward exchange contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 6.2 | 5.5 |
Designated as Hedging Instrument | Other Noncurrent Assets | Interest Rate Management Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 15.5 | 18.1 |
Designated as Hedging Instrument | Accrued Liabilities | Forward exchange contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 50.9 | 57.2 |
Designated as Hedging Instrument | Accrued Liabilities | Interest Rate Management Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 22.2 | 5.2 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Forward exchange contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 18.7 | 25.2 |
Designated as Hedging Instrument | Other Noncurrent Liabilities | Interest Rate Management Contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | 76.5 | 27.5 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 3.7 | 8.7 |
Total Derivatives, Liabilities | 3.1 | 6.4 |
Not Designated as Hedging Instrument | Other Receivables and Current Assets | Forward exchange contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Assets | 3.7 | 8.7 |
Not Designated as Hedging Instrument | Accrued Liabilities | Forward exchange contracts | ||
Derivative [Line Items] | ||
Total Derivatives, Liabilities | $ 3.1 | $ 6.4 |
Financial Instruments (Gains an
Financial Instruments (Gains and Losses Recognized In Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Net Investment Hedging Relationships | ||||
Tax effects | $ (9.2) | $ (22.6) | $ (16.8) | $ 1.6 |
Net Amount Recognized in OCI | (58.8) | (144.6) | (18.2) | 271.1 |
Derivatives in Cash Flow Hedging Relationships | ||||
Tax effects | 15.3 | 13.2 | 26.4 | 10.5 |
Net Amount Recognized in OCI | (39.4) | (5.2) | (39.9) | 8.6 |
Net Investment Hedges | ||||
Net Investment Hedging Relationships | ||||
Total Amount Recognized in OCI | 27.8 | 84 | 67.6 | (30.3) |
Tax effects | (6.9) | (21.2) | (16.7) | 7.4 |
Net Amount Recognized in OCI | 20.9 | 62.8 | 50.9 | (22.9) |
Net Investment Hedges | Forward exchange contracts | ||||
Net Investment Hedging Relationships | ||||
Total Amount Recognized in OCI | (4.2) | 18.6 | 10.3 | (17.3) |
Net Investment Hedges | Foreign currency debt | ||||
Net Investment Hedging Relationships | ||||
Total Amount Recognized in OCI | 39.4 | 63.5 | 67 | (0.7) |
Net Investment Hedges | Cross currency interest rate swaps | ||||
Net Investment Hedging Relationships | ||||
Total Amount Recognized in OCI | (7.4) | 1.9 | (9.7) | (12.3) |
Cash Flow Hedges | ||||
Derivatives in Cash Flow Hedging Relationships | ||||
Total Amount Recognized in OCI | (54.7) | (18.4) | (66.3) | (1.9) |
Tax effects | 15.3 | 13.2 | 26.4 | 10.5 |
Net Amount Recognized in OCI | (39.4) | (5.2) | (39.9) | 8.6 |
Cash Flow Hedges | Forward exchange contracts | ||||
Derivatives in Cash Flow Hedging Relationships | ||||
Total Amount Recognized in OCI | (40.1) | (57.3) | (63.5) | 7.4 |
Cash Flow Hedges | Forward exchange contracts, excluded components | ||||
Derivatives in Cash Flow Hedging Relationships | ||||
Total Amount Recognized in OCI | 2 | (4.3) | (0.7) | (7) |
Cash Flow Hedges | Other | ||||
Derivatives in Cash Flow Hedging Relationships | ||||
Total Amount Recognized in OCI | $ (16.6) | $ 43.2 | $ (2.1) | $ (2.3) |
Financial Instruments (Cash Flo
Financial Instruments (Cash Flow and Fair Value Hedges Location and Amounts Recognized) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Total presented in consolidated income statements that includes effects of hedging below | ||||
Sales | $ 2,945.1 | $ 2,502 | $ 5,939.3 | $ 4,877.2 |
Cost of sales | 2,151.6 | 1,745.5 | 4,375.2 | 3,377.9 |
Other income (expense), net | 19.1 | 9.8 | 27.6 | 32.3 |
Interest expense | 32.3 | 36.1 | 62.8 | 72.8 |
Other non-operating income (expense), net | 9.1 | 16.8 | 31.7 | 35.4 |
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Tax effects | (8.6) | (12) | (14.7) | (11.2) |
Net (Gain) Loss Reclassified from OCI to Income | 26 | 36 | 44.7 | 34.7 |
Cash Flow Hedges | Sales | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount reclassified from OCI into income | 0.3 | 0.1 | 0.7 | 0.2 |
Tax effects | (0.1) | 0 | (0.2) | 0 |
Net (Gain) Loss Reclassified from OCI to Income | 0.2 | 0.1 | 0.5 | 0.2 |
Cash Flow Hedges | Cost of Sales | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount reclassified from OCI into income | 0.4 | (1.8) | 0.3 | (1.9) |
Tax effects | (0.1) | 0.4 | (0.1) | 0.6 |
Net (Gain) Loss Reclassified from OCI to Income | 0.3 | (1.4) | 0.2 | (1.3) |
Cash Flow Hedges | Interest Expense | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount reclassified from OCI into income | 1.5 | 1.4 | 2.9 | 2.8 |
Tax effects | (0.6) | (0.5) | (1.1) | (1) |
Net (Gain) Loss Reclassified from OCI to Income | 0.9 | 0.9 | 1.8 | 1.8 |
Cash Flow Hedges | Other Non-Operating Income (Expense), Net | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount reclassified from OCI into income | 32.4 | 48.3 | 55.5 | 44.8 |
Tax effects | (7.8) | (11.9) | (13.3) | (10.8) |
Net (Gain) Loss Reclassified from OCI to Income | 24.6 | 36.4 | 42.2 | 34 |
Cash Flow Hedges | Forward exchange contracts | Sales | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount reclassified from OCI into income | 0.3 | 0.1 | 0.7 | 0.2 |
Cash Flow Hedges | Forward exchange contracts | Cost of Sales | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount reclassified from OCI into income | 0.4 | (1.8) | 0.3 | (1.9) |
Cash Flow Hedges | Forward exchange contracts | Interest Expense | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount reclassified from OCI into income | 0 | 0 | 0 | 0 |
Cash Flow Hedges | Forward exchange contracts | Other Non-Operating Income (Expense), Net | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount reclassified from OCI into income | 26.4 | 54 | 40.9 | 2.4 |
Cash Flow Hedges | Forward exchange contracts, excluded components | Sales | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | 0 | 0 | 0 | 0 |
Cash Flow Hedges | Forward exchange contracts, excluded components | Cost of Sales | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | 0 | 0 | 0 | 0 |
Cash Flow Hedges | Forward exchange contracts, excluded components | Interest Expense | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | 0 | 0 | 0 | 0 |
Cash Flow Hedges | Forward exchange contracts, excluded components | Other Non-Operating Income (Expense), Net | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount excluded from effectiveness testing recognized in earnings based on amortization approach | 1.1 | 2.6 | 2.4 | 5.4 |
Cash Flow Hedges | Other | Sales | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount reclassified from OCI into income | 0 | 0 | 0 | 0 |
Cash Flow Hedges | Other | Cost of Sales | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount reclassified from OCI into income | 0 | 0 | 0 | 0 |
Cash Flow Hedges | Other | Interest Expense | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount reclassified from OCI into income | 1.5 | 1.4 | 2.9 | 2.8 |
Cash Flow Hedges | Other | Other Non-Operating Income (Expense), Net | ||||
(Gain) Loss Effects of Cash Flow Hedging: | ||||
Amount reclassified from OCI into income | 4.9 | (8.3) | 12.2 | 37 |
Fair Value Hedges | Sales | ||||
(Gain) Loss Effects of Fair Value Hedging: | ||||
Total (Gain) Loss Recognized in Income | 0 | 0 | 0 | 0 |
Fair Value Hedges | Cost of Sales | ||||
(Gain) Loss Effects of Fair Value Hedging: | ||||
Total (Gain) Loss Recognized in Income | 0 | 0 | 0 | 0 |
Fair Value Hedges | Interest Expense | ||||
(Gain) Loss Effects of Fair Value Hedging: | ||||
Total (Gain) Loss Recognized in Income | 0 | 0 | 0 | 0 |
Fair Value Hedges | Other Non-Operating Income (Expense), Net | ||||
(Gain) Loss Effects of Fair Value Hedging: | ||||
Total (Gain) Loss Recognized in Income | 0 | 0 | 0 | 0 |
Fair Value Hedges | Other | Sales | ||||
(Gain) Loss Effects of Fair Value Hedging: | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 |
Fair Value Hedges | Other | Cost of Sales | ||||
(Gain) Loss Effects of Fair Value Hedging: | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 |
Fair Value Hedges | Other | Interest Expense | ||||
(Gain) Loss Effects of Fair Value Hedging: | ||||
Hedged items | (22) | (1.4) | (24.5) | (2.7) |
Derivatives designated as hedging instruments | 22 | 1.4 | 24.5 | 2.7 |
Fair Value Hedges | Other | Other Non-Operating Income (Expense), Net | ||||
(Gain) Loss Effects of Fair Value Hedging: | ||||
Hedged items | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | $ 0 | $ 0 | $ 0 | $ 0 |
Financial Instruments (Effects
Financial Instruments (Effects of Derivatives Not Designated as a Hedging Instrument) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income (Expense), Net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (Gain) Loss Recognized in Income | $ 0.3 | $ (0.3) | $ 1.4 | $ 2.5 |
Other Income (Expense), Net | Forward exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (Gain) Loss Recognized in Income | 0.3 | (0.3) | 1.4 | 2.5 |
Other Income (Expense), Net | Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (Gain) Loss Recognized in Income | 0 | 0 | 0 | 0 |
Other Non-Operating Income (Expense), Net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (Gain) Loss Recognized in Income | (0.6) | (0.4) | (1.1) | (1.2) |
Other Non-Operating Income (Expense), Net | Forward exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (Gain) Loss Recognized in Income | (0.7) | (0.3) | (1.3) | (1.6) |
Other Non-Operating Income (Expense), Net | Other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total (Gain) Loss Recognized in Income | $ 0.1 | $ (0.1) | $ 0.2 | $ 0.4 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of the Carrying Values and Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion and related party, carrying value | $ 7,234.3 | $ 7,634.8 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion and related party, fair value | 6,905.6 | 7,812.2 |
Forward exchange contracts | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 53.8 | 49.3 |
Derivative liabilities | 72.7 | 88.8 |
Forward exchange contracts | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 53.8 | 49.3 |
Derivative liabilities | 72.7 | 88.8 |
Interest Rate Management Contracts | Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 26.1 | 34.1 |
Derivative liabilities | 98.7 | 32.7 |
Interest Rate Management Contracts | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 26.1 | 34.1 |
Derivative liabilities | $ 98.7 | $ 32.7 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Recurring Fair Value Measurements) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2022 | Sep. 30, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets at Fair Value | $ 79.9 | $ 83.4 |
Total Liabilities at Fair Value | 171.4 | 121.5 |
Level 1 | ||
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 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets at Fair Value | 79.9 | 83.4 |
Total Liabilities at Fair Value | 171.4 | 121.5 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets at Fair Value | 0 | 0 |
Total Liabilities at Fair Value | 0 | 0 |
Forward exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 53.8 | 49.3 |
Derivative liabilities | 72.7 | 88.8 |
Forward exchange contracts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Forward exchange contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 53.8 | 49.3 |
Derivative liabilities | 72.7 | 88.8 |
Forward exchange contracts | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Interest Rate Management Contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 26.1 | 34.1 |
Derivative liabilities | 98.7 | 32.7 |
Interest Rate Management Contracts | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Interest Rate Management Contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 26.1 | 34.1 |
Derivative liabilities | 98.7 | 32.7 |
Interest Rate Management Contracts | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Nov. 30, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 |
Debt Instrument [Line Items] | |||||
Repayment of debt | $ 400 | $ 15.9 | |||
Note 3.0% | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate (percent) | 3.00% | ||||
Repayment of debt | $ 400 | ||||
2021 Credit Agreement | Revolving credit agreement | |||||
Debt Instrument [Line Items] | |||||
Term of credit facility (in years) | 5 years | ||||
Maximum borrowing capacity | $ 2,500 | 2,750 | $ 2,500 | ||
Borrowings outstanding | 0 | ||||
Credit facilities of foreign subsidiaries | Foreign credit facilities | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 486.5 | ||||
Borrowings outstanding | $ 446.9 | $ 176.2 |
Retirement Benefits (Narrative)
Retirement Benefits (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Defined Benefit Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Company contributions | $ 16.1 | $ 27.7 | $ 44.6 | ||
Defined Benefit Pension Plan | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total expected contributions for current fiscal year | $ 40 | 40 | |||
Defined Benefit Pension Plan | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Total expected contributions for current fiscal year | 50 | 50 | |||
Other Postretirement Benefits Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Amortization of actuarial gain | $ 0.4 | $ 0.5 | $ 0.8 | $ 0.9 |
Retirement Benefits (Schedule o
Retirement Benefits (Schedule of Net Periodic Benefit Cost) (Details) - Defined Benefit Pension Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 4.6 | $ 5.3 | $ 9.2 | $ 10.7 |
Interest cost | 18.4 | 17.3 | 36.8 | 34.5 |
Expected return on plan assets | (42.1) | (48.7) | (84.2) | (97.3) |
Prior service cost amortization | 0.3 | 0.3 | 0.6 | 0.6 |
Actuarial loss amortization | 16.6 | 19.6 | 33.3 | 39.3 |
Settlements | 0.9 | 0 | 1.8 | 0 |
Other | 0 | 0 | 0 | 0 |
Net periodic benefit cost | (1.3) | (6.2) | (2.5) | (12.2) |
International | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5.6 | 5.9 | 11.2 | 11.6 |
Interest cost | 7.6 | 6.3 | 15.2 | 12.4 |
Expected return on plan assets | (17.6) | (21) | (35.3) | (41.2) |
Prior service cost amortization | 0 | 0 | 0 | 0 |
Actuarial loss amortization | 3.8 | 4.8 | 7.7 | 9.4 |
Settlements | 0.2 | 0 | 0.2 | 0 |
Other | 0.2 | 0.2 | 1 | 0.5 |
Net periodic benefit cost | $ (0.2) | $ (3.8) | $ 0 | $ (7.3) |
Commitments and Contingencies (
Commitments and Contingencies (Litigation and Environmental - Narrative) (Details) R$ in Millions | 1 Months Ended | 6 Months Ended | |||
Sep. 30, 2010BRL (R$) | Mar. 31, 2022USD ($) | Mar. 31, 2022BRL (R$)site | Mar. 31, 2022USD ($)site | Sep. 30, 2021USD ($) | |
Alleged Anticompete Litigation | |||||
Loss Contingencies [Line Items] | |||||
Civil fines imposed | R$ 179.2 | $ 38,000,000 | |||
Provision for litigation | $ 0 | ||||
Maximum of loss contingency range subject to interest | R$ 179.2 | $ 38,000,000 | |||
Environmental | |||||
Loss Contingencies [Line Items] | |||||
Approximate number of sites on which settlement has not been reached | site | 32 | 32 | |||
Accrual for environmental loss contingencies | $ 74,100,000 | $ 76,700,000 | |||
Accrual for environmental loss contingencies, maximum payout period | 30 years | ||||
Environmental | Minimum | |||||
Loss Contingencies [Line Items] | |||||
Estimate of possible exposure from environmental loss contingencies | 73,000,000 | ||||
Environmental | Maximum | |||||
Loss Contingencies [Line Items] | |||||
Estimate of possible exposure from environmental loss contingencies | $ 87,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Pace, Piedmont, Pasadena - Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Sep. 30, 2012 | Sep. 30, 2008 | Sep. 30, 2006 | Mar. 31, 2022 | |
Pace, Florida | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | $ 42 | $ 38.7 | |||
Change in estimated exposure | $ 19 | ||||
Pace, Florida | Discontinued operations | |||||
Loss Contingencies [Line Items] | |||||
Pretax environmental expense | $ 19 | $ 42 | |||
Piedmont, South Carolina | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | $ 24 | 8.9 | |||
Piedmont, South Carolina | Discontinued operations | |||||
Loss Contingencies [Line Items] | |||||
Pretax environmental expense | $ 24 | ||||
Pasadena, Texas | |||||
Loss Contingencies [Line Items] | |||||
Accrual for environmental loss contingencies | $ 11 | ||||
Total anticipated exposure | $ 13 |
Commitments and Contingencies_3
Commitments and Contingencies (Unconditional Purchase Obligations - Narrative) (Details) $ in Billions | Mar. 31, 2022USD ($) |
Helium Purchases | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Unconditional purchase obligation | $ 8.7 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | 6 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Market-Based Deferred Stock Unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of units/shares granted | 74,364 |
Performance period | 3 years |
Weighted average grant date fair value (in dollars per unit/share) | $ / shares | $ 427.23 |
Time-Based Deferred Stock Unit | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of units/shares granted | 106,721 |
Weighted average grant date fair value (in dollars per unit/share) | $ / shares | $ 283.34 |
LTIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for future grant | 1,300,000 |
Share-Based Compensation (Compe
Share-Based Compensation (Compensation Cost Recognized in Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Additional Disclosure [Abstract] | ||||
Before-tax share-based compensation cost | $ 10.5 | $ 12.9 | $ 27.3 | $ 22.4 |
Income tax benefit | (2.6) | (3.1) | (6.7) | (5.4) |
After-tax share-based compensation cost | $ 7.9 | $ 9.8 | $ 20.6 | $ 17 |
Share-Based Compensation (Marke
Share-Based Compensation (Market-Based Deferred Stock Unit Valuation Assumptions) (Details) - Market-Based Deferred Stock Unit | 6 Months Ended |
Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 30.50% |
Risk-free interest rate | 0.80% |
Expected dividend yield | 2.10% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Rollforward) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 14,375.6 | $ 13,071.9 | $ 14,088 | $ 12,443.1 |
Other comprehensive loss before reclassifications | (98.2) | (58.1) | ||
Amounts reclassified from AOCL | 41.9 | 76.6 | ||
Total Other Comprehensive Income (Loss) | (56.3) | (95.5) | 18.5 | 351 |
Amount attributable to noncontrolling interests | (3) | 15.6 | 8.2 | 35.3 |
Ending balance | 14,510.7 | 13,134.8 | 14,510.7 | 13,134.8 |
Derivatives qualifying as hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (17.5) | (28.3) | ||
Other comprehensive loss before reclassifications | (39.4) | (39.9) | ||
Amounts reclassified from AOCL | 26 | 44.7 | ||
Total Other Comprehensive Income (Loss) | (13.4) | 4.8 | ||
Amount attributable to noncontrolling interests | 1.1 | 8.5 | ||
Ending balance | (32) | (32) | ||
Foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (857) | (893.8) | ||
Other comprehensive loss before reclassifications | (58.8) | (18.2) | ||
Amounts reclassified from AOCL | 0 | 0 | ||
Total Other Comprehensive Income (Loss) | (58.8) | (18.2) | ||
Amount attributable to noncontrolling interests | (4.2) | (0.4) | ||
Ending balance | (911.6) | (911.6) | ||
Pension and postretirement benefits | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (577.8) | (593.8) | ||
Other comprehensive loss before reclassifications | 0 | 0 | ||
Amounts reclassified from AOCL | 15.9 | 31.9 | ||
Total Other Comprehensive Income (Loss) | 15.9 | 31.9 | ||
Amount attributable to noncontrolling interests | 0.1 | 0.1 | ||
Ending balance | (562) | (562) | ||
AOCL attributable to Air Products | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (1,452.3) | (1,713.3) | (1,515.9) | (2,140.1) |
Total Other Comprehensive Income (Loss) | (53.3) | (111.1) | 10.3 | 315.7 |
Ending balance | $ (1,505.6) | $ (1,824.4) | $ (1,505.6) | $ (1,824.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Reclassification) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Sales | $ (2,945.1) | $ (2,502) | $ (5,939.3) | $ (4,877.2) |
Cost of sales | (2,151.6) | (1,745.5) | (4,375.2) | (3,377.9) |
Interest expense | (32.3) | (36.1) | (62.8) | (72.8) |
Other non-operating income (expense), net | (9.1) | (16.8) | (31.7) | (35.4) |
Net Income Attributable to Air Products | (530.5) | (473.1) | (1,090.9) | (955.1) |
Reclassification out of Accumulated Other Comprehensive Income | (Gain) Loss on Cash Flow Hedges, net of tax | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Sales | 0.2 | 0.1 | 0.5 | 0.2 |
Cost of sales | 0.3 | (1.4) | 0.2 | (1.3) |
Interest expense | 0.9 | 0.9 | 1.8 | 1.8 |
Other non-operating income (expense), net | 24.6 | 36.4 | 42.2 | 34 |
Net Income Attributable to Air Products | 26 | 36 | 44.7 | 34.7 |
Reclassification out of Accumulated Other Comprehensive Income | Pension and Postretirement Benefits, net of tax | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net Income Attributable to Air Products | $ 15.9 | $ 18.3 | $ 31.9 | $ 36.6 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Earnings Per Share [Abstract] | |||||
Net income from continuing operations | $ 530.5 | $ 473.1 | $ 1,090.9 | $ 944.8 | |
Net income from discontinued operations | 0 | 0 | 0 | 10.3 | |
Net Income Attributable to Air Products | $ 530.5 | $ 473.1 | $ 1,090.9 | $ 955.1 | |
Weighted average common shares — Basic | 222 | 221.6 | 222 | 221.6 | |
Employee stock option and other award plans | 0.5 | 0.9 | 0.5 | 0.9 | |
Weighted average common shares — Diluted | 222.5 | 222.5 | 222.5 | 222.5 | |
Per Share Data | |||||
Basic EPS from continuing operations (in dollars per share) | [1] | $ 2.39 | $ 2.13 | $ 4.91 | $ 4.26 |
Basic EPS from discontinued operations (in dollars per share) | [1] | 0 | 0 | 0 | 0.05 |
Basic EPS Attributable to Air Products (in dollars per share) | [1] | 2.39 | 2.13 | 4.91 | 4.31 |
Diluted EPS from continuing operations (in dollars per share) | [1] | 2.38 | 2.13 | 4.90 | 4.25 |
Diluted EPS from discontinued operations (in dollars per share) | [1] | 0 | 0 | 0 | 0.05 |
Diluted EPS Attributable to Air Products (in dollars per share) | [1] | $ 2.38 | $ 2.13 | $ 4.90 | $ 4.29 |
[1] | *Earnings per share ("EPS") is calculated independently for each component and may not sum to total EPS due to rounding. |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||||
Antidilutive share-based awards excluded from computation of diluted earnings per share (in shares) | 0 | 0 | 0 | 0 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate (percent) | 18.60% | 20.40% | 17.80% | 19.80% |
Income tax payments, net of refunds | $ 236.9 | $ 223.8 | ||
Cash provided by operating activities | $ 0 | $ 6.7 |
Supplemental Information (Narra
Supplemental Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Related Party Transaction [Line Items] | |||||
Trade receivables, net | $ 185 | $ 185 | $ 90 | ||
Related party debt, including current portion | 371.1 | 371.1 | $ 358.4 | ||
Facility closure | 0 | $ 23.2 | 0 | $ 23.2 | |
Noncash ROU asset additions | 150 | ||||
Equity affiliate and joint venture partner | |||||
Related Party Transaction [Line Items] | |||||
Sales to and other income from related parties | $ 60 | $ 40 | $ 125 | $ 90 |
Business Segment Information (S
Business Segment Information (Schedule of Segment Reporting Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 2,945.1 | $ 2,502 | $ 5,939.3 | $ 4,877.2 | |
Operating income (loss) | 561.9 | 548.5 | 1,084.9 | 1,087.6 | |
Depreciation and amortization | 668.2 | 653 | |||
Equity affiliates' income | 120.8 | 69.8 | 268.6 | 139.1 | |
Total assets | 27,449.7 | 27,449.7 | $ 26,859.2 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 2,945.1 | 2,502 | 5,939.3 | 4,877.2 | |
Operating income (loss) | 561.9 | 534.9 | 1,084.9 | 1,074 | |
Depreciation and amortization | 335.9 | 329.3 | 668.2 | 653 | |
Equity affiliates' income | 120.8 | 69.8 | 268.6 | 139.1 | |
Total assets | 27,449.7 | 27,449.7 | 26,859.2 | ||
Americas | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,186.6 | 1,056.1 | 2,410.7 | 1,989.1 | |
Operating income (loss) | 275.5 | 263.4 | 542.7 | 489.2 | |
Depreciation and amortization | 153.7 | 153.3 | 309 | 305.1 | |
Equity affiliates' income | 20.1 | 32.3 | 54.3 | 54.6 | |
Total assets | 7,801.9 | 7,801.9 | 7,092.5 | ||
Asia | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 751.2 | 697.5 | 1,531.6 | 1,415 | |
Operating income (loss) | 203.6 | 198.5 | 424.7 | 413.3 | |
Depreciation and amortization | 111.8 | 109.7 | 222.6 | 217.6 | |
Equity affiliates' income | 6.2 | 7.1 | 12.8 | 15.9 | |
Total assets | 7,712.6 | 7,712.6 | 7,349.4 | ||
Europe | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 738.6 | 558.4 | 1,482.8 | 1,101.9 | |
Operating income (loss) | 116.4 | 132.9 | 215.6 | 270.4 | |
Depreciation and amortization | 50.3 | 51 | 100.1 | 100.3 | |
Equity affiliates' income | 23.3 | 12.6 | 37.2 | 27.5 | |
Total assets | 3,933.9 | 3,933.9 | 3,830.3 | ||
Middle East and India | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 28.9 | 26.2 | 52.6 | 45.7 | |
Operating income (loss) | 4.8 | 6.7 | 9.6 | 10.7 | |
Depreciation and amortization | 6.9 | 6.6 | 13 | 12.7 | |
Equity affiliates' income | 71.1 | 16.1 | 163.4 | 37.3 | |
Total assets | 2,676.8 | 2,676.8 | 800.6 | ||
Corporate and other | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 239.8 | 163.8 | 461.6 | 325.5 | |
Operating income (loss) | (38.4) | (66.6) | (107.7) | (109.6) | |
Depreciation and amortization | 13.2 | 8.7 | 23.5 | 17.3 | |
Equity affiliates' income | 0.1 | $ 1.7 | 0.9 | $ 3.8 | |
Total assets | $ 5,324.5 | $ 5,324.5 | $ 7,786.4 |
Business Segment Information (R
Business Segment Information (Reconciliation of Operating Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Operating income | $ 561.9 | $ 548.5 | $ 1,084.9 | $ 1,087.6 |
Facility closure | 0 | (23.2) | 0 | (23.2) |
Gain on exchange with joint venture partner | 0 | 36.8 | 0 | 36.8 |
Segment Total | ||||
Segment Reporting Information [Line Items] | ||||
Operating income | 561.9 | 534.9 | 1,084.9 | 1,074 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Facility closure | 0 | (23.2) | 0 | (23.2) |
Gain on exchange with joint venture partner | $ 0 | $ 36.8 | $ 0 | $ 36.8 |