x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended 30 September 2018
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to
|
7201 Hamilton Boulevard
|
|
State of incorporation: Delaware
|
Allentown, Pennsylvania, 18195-1501
|
|
I.R.S. identification number: 23-1274455
|
Tel. (610) 481-4911
|
|
|
Title of Each Class:
|
|
Registered on:
|
Common Stock, par value $1.00 per share
|
|
New York Stock Exchange
|
2.0% Euro Notes due 2020
|
|
New York Stock Exchange
|
0.375% Euro Notes due 2021
|
|
New York Stock Exchange
|
1.0% Euro Notes due 2025
|
|
New York Stock Exchange
|
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
|
|
YES
|
x
|
|
NO
|
¨
|
|
|
|
|
|
|
|
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
|
|
YES
|
¨
|
|
NO
|
x
|
|
|
|
|
|
|
|
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
|
|
YES
|
x
|
|
NO
|
¨
|
|
|
|
|
|
|
|
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
|
|
YES
|
x
|
|
NO
|
¨
|
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
|
|
|
|
|
|
¨
|
Large accelerated filer x
|
|
Accelerated filer ¨
|
|
Non-accelerated filer ¨
|
|
Smaller reporting company ¨
|
|
Emerging growth company ¨
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
|
|
|
|
|
|
¨
|
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
|
|
YES
|
¨
|
|
NO
|
x
|
ITEM 1.
|
||
|
|
|
ITEM 1A.
|
||
|
|
|
ITEM 1B.
|
||
|
|
|
ITEM 2.
|
||
|
|
|
ITEM 3.
|
||
|
|
|
ITEM 4.
|
||
|
|
|
ITEM 5.
|
||
|
|
|
ITEM 6.
|
||
|
|
|
ITEM 7.
|
||
|
|
|
ITEM 7A.
|
||
|
|
|
ITEM 8.
|
||
|
|
|
ITEM 9.
|
||
|
|
|
ITEM 9A.
|
||
|
|
|
ITEM 9B.
|
||
|
|
|
ITEM 10.
|
||
|
|
|
ITEM 11.
|
||
|
|
|
ITEM 12.
|
||
|
|
|
ITEM 13.
|
||
|
|
|
ITEM 14.
|
||
|
|
|
ITEM 15.
|
||
|
|
|
ITEM 16.
|
||
|
|
|
|
|
|
•
|
changes in global or regional economic conditions, supply and demand dynamics in the market segments we serve, or in the financial markets;
|
•
|
risks associated with having extensive international operations, including political risks, risks associated with unanticipated government actions and risks of investing in developing markets;
|
•
|
project delays, contract terminations, customer cancellations, or postponement of projects and sales;
|
•
|
future financial and operating performance of major customers and joint venture partners;
|
•
|
our ability to develop, implement, and operate new technologies, or to execute the projects in our backlog;
|
•
|
tariffs, economic sanctions and regulatory activities in jurisdictions in which we and our affiliates and joint ventures operate;
|
•
|
the impact of environmental, tax or other legislation, as well as regulations affecting our business and related compliance requirements, including regulations related to global climate change;
|
•
|
changes in tax rates and other changes in tax law;
|
•
|
the timing, impact, and other uncertainties relating to acquisitions and divestitures, including our ability to integrate acquisitions and separate divested businesses, respectively;
|
•
|
risks relating to cybersecurity incidents, including risks from the interruption, failure or compromise of our information systems;
|
•
|
catastrophic events, such as natural disasters, acts of war, or terrorism;
|
•
|
the impact of price fluctuations in natural gas and disruptions in markets and the economy due to oil price volatility;
|
•
|
costs and outcomes of legal or regulatory proceedings and investigations;
|
•
|
asset impairments due to economic conditions or specific events;
|
•
|
significant fluctuations in interest rates and foreign currency exchange rates from those currently anticipated;
|
•
|
damage to facilities, pipelines or delivery systems, including those we own or operate for third parties;
|
•
|
availability and cost of raw materials; and
|
•
|
the success of productivity and operational improvement programs.
|
Name
|
Age
|
Office
|
M. Scott Crocco
|
54
|
Executive Vice President and Chief Financial Officer (became Executive Vice President and Chief Financial Officer in 2016; Senior Vice President and Chief Financial Officer in 2013; and Vice President and Corporate Controller in 2008).
|
Seifi Ghasemi
|
74
|
Chairman, President, and Chief Executive Officer (became Chairman, President and Chief Executive Officer in 2014 and previously served as Chairman and Chief Executive Officer of Rockwood Holdings, Inc. beginning in 2001). Mr. Ghasemi is a member and Chairman of the Board of Directors and the Chairman of the Executive Committee of the Board of Directors.
|
Sean D. Major
|
54
|
Executive Vice President, General Counsel and Secretary (Secretary since December 2017 and Executive Vice President and General Counsel since May 2017). Previously, Mr. Major served as Executive Vice President, General Counsel and Secretary for Joy Global Inc. since 2007. From 1998 until joining Joy Global Inc. in 2007, Mr. Major was employed by Johnson Controls, Inc., serving in roles of increasing legal responsibility, including Assistant General Counsel and Assistant Secretary.
|
Dr. Samir Serhan
|
57
|
Executive Vice President (since December 2016). Previously, Dr. Serhan served as President, Global HyCO, since 2014 for Praxair Inc. From 2000-2014, he worked in leadership positions in the U.S. and Germany for The Linde Group, including Managing Director of Linde Engineering from 2008-2014.
|
|
2018
|
|
2017
|
|
||
First quarter
|
|
$.95
|
|
|
$.86
|
|
Second quarter
|
1.10
|
|
.95
|
|
||
Third quarter
|
1.10
|
|
.95
|
|
||
Fourth quarter
|
1.10
|
|
.95
|
|
||
Total
|
|
$4.25
|
|
|
$3.71
|
|
|
Sept 2013
|
Sept 2014
|
Sept 2015
|
Sept 2016
|
Sept 2017
|
Sept 2018
|
Air Products
|
100
|
128
|
122
|
149
|
168
|
191
|
S&P 500 Index
|
100
|
120
|
116
|
137
|
161
|
191
|
S&P 500 Materials Index
|
100
|
122
|
96
|
120
|
146
|
152
|
(Millions of dollars, except for share and per share data)
|
2018(A)
|
|
2017(A)
|
|
2016(A)
|
|
2015(A)
|
|
2014(A)
|
|
|||||
Operating Results
|
|
|
|
|
|
||||||||||
Sales
|
|
$8,930
|
|
|
$8,188
|
|
|
$7,504
|
|
|
$7,824
|
|
|
$8,384
|
|
Cost of sales(B)
|
6,190
|
|
5,752
|
|
5,177
|
|
5,584
|
|
6,178
|
|
|||||
Selling and administrative(B)
|
761
|
|
714
|
|
684
|
|
765
|
|
876
|
|
|||||
Research and development
|
65
|
|
58
|
|
72
|
|
76
|
|
78
|
|
|||||
Cost reduction and asset actions
|
—
|
|
151
|
|
35
|
|
180
|
|
11
|
|
|||||
Operating income(B)
|
1,966
|
|
1,440
|
|
1,535
|
|
1,276
|
|
976
|
|
|||||
Equity affiliates’ income(C)
|
175
|
|
80
|
|
147
|
|
152
|
|
149
|
|
|||||
Income from continuing operations attributable to Air Products
|
1,456
|
|
1,134
|
|
1,100
|
|
933
|
|
697
|
|
|||||
Net income attributable to Air Products(D)
|
1,498
|
|
3,000
|
|
631
|
|
1,278
|
|
992
|
|
|||||
Basic earnings per common share attributable to Air Products:
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
6.64
|
|
5.20
|
|
5.08
|
|
4.34
|
|
3.28
|
|
|||||
Net income(D)
|
6.83
|
|
13.76
|
|
2.92
|
|
5.95
|
|
4.66
|
|
|||||
Diluted earnings per common share attributable to Air Products:
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
6.59
|
|
5.16
|
|
5.04
|
|
4.29
|
|
3.24
|
|
|||||
Net income(D)
|
6.78
|
|
13.65
|
|
2.89
|
|
5.88
|
|
4.61
|
|
|||||
Year-End Financial Position
|
|
|
|
|
|
||||||||||
Plant and equipment, at cost
|
|
$21,490
|
|
|
$19,548
|
|
|
$18,660
|
|
|
$17,999
|
|
|
$18,180
|
|
Total assets(D)
|
19,178
|
|
18,467
|
|
18,029
|
|
17,317
|
|
17,648
|
|
|||||
Working capital(D)
|
2,744
|
|
3,388
|
|
1,034
|
|
(851
|
)
|
199
|
|
|||||
Total debt(E)
|
3,813
|
|
3,963
|
|
5,211
|
|
5,856
|
|
6,081
|
|
|||||
Air Products shareholders’ equity(D)
|
10,858
|
|
10,086
|
|
7,080
|
|
7,249
|
|
7,366
|
|
|||||
Total equity(D)
|
11,176
|
|
10,186
|
|
7,213
|
|
7,381
|
|
7,521
|
|
|||||
Financial Ratios
|
|
|
|
|
|
||||||||||
Return on average Air Products shareholders’ equity(F)
|
13.9
|
%
|
13.2
|
%
|
15.4
|
%
|
12.7
|
%
|
9.5
|
%
|
|||||
Operating margin(B)
|
22.0
|
%
|
17.6
|
%
|
20.5
|
%
|
16.3
|
%
|
11.6
|
%
|
|||||
Selling and administrative as a percentage of sales(B)
|
8.5
|
%
|
8.7
|
%
|
9.1
|
%
|
9.8
|
%
|
10.4
|
%
|
|||||
Total debt to total capitalization(E)(G)
|
25.4
|
%
|
28.0
|
%
|
41.9
|
%
|
44.2
|
%
|
43.8
|
%
|
|||||
Other Data
|
|
|
|
|
|
||||||||||
Income from continuing operations including noncontrolling interests
|
|
$1,491
|
|
|
$1,155
|
|
|
$1,122
|
|
|
$966
|
|
|
$691
|
|
Adjusted EBITDA(B)(H)
|
3,116
|
|
2,799
|
|
2,622
|
|
2,422
|
|
2,322
|
|
|||||
Adjusted EBITDA margin(B)
|
34.9
|
%
|
34.2
|
%
|
34.9
|
%
|
31.0
|
%
|
27.7
|
%
|
|||||
Depreciation and amortization
|
971
|
|
866
|
|
855
|
|
859
|
|
876
|
|
|||||
Capital expenditures on a GAAP basis(I)
|
1,914
|
|
1,056
|
|
908
|
|
1,201
|
|
1,297
|
|
|||||
Capital expenditures on a non-GAAP basis(I)
|
1,934
|
|
1,066
|
|
935
|
|
1,575
|
|
1,498
|
|
|||||
Cash provided by operating activities
|
2,555
|
|
2,534
|
|
2,259
|
|
2,047
|
|
1,862
|
|
|||||
Cash used for investing activities
|
(1,649
|
)
|
(1,418
|
)
|
(865
|
)
|
(1,147
|
)
|
(1,257
|
)
|
|||||
Cash used for financing activities
|
(1,360
|
)
|
(2,041
|
)
|
(860
|
)
|
(960
|
)
|
(524
|
)
|
|||||
Dividends declared per common share
|
4.25
|
|
3.71
|
|
3.39
|
|
3.20
|
|
3.02
|
|
|||||
Weighted Average Common Shares – Basic (in millions)
|
219
|
|
218
|
|
216
|
|
215
|
|
213
|
|
|||||
Weighted Average Common Shares – Diluted (in millions)
|
221
|
|
220
|
|
218
|
|
217
|
|
215
|
|
|||||
Book value per common share at year-end
|
|
$49.46
|
|
|
$46.19
|
|
|
$32.57
|
|
|
$33.66
|
|
|
$34.49
|
|
Shareholders at year-end
|
5,500
|
|
5,700
|
|
6,000
|
|
6,400
|
|
6,600
|
|
|||||
Employees at year-end(J)
|
16,300
|
|
15,300
|
|
18,600
|
|
19,700
|
|
21,200
|
|
(A)
|
Unless otherwise stated, selected financial data is presented in accordance with U.S. generally accepted accounting principles (GAAP). The Company has presented certain financial measures on a non-GAAP (“adjusted”) basis to exclude items which management does not believe to be indicative of ongoing business trends. Refer to pages 33-39 for reconciliations of the GAAP to non-GAAP measures for fiscal years 2018, 2017, and 2016. Descriptions of the excluded items appear on pages 25-28. For fiscal year 2015, these items include: (i) a charge to operating income of $8 ($.03 per share) related to business separation costs, (ii) a charge to operating income of $180 ($133 after-tax, or $.61 per share) related to business restructuring and cost reduction actions, (iii) a gain of $18 ($11 after tax, or $.05 per share) reflected in operating income related to the gain on previously held equity interest in a liquefied atmospheric industrial gases production joint venture, (iv) a gain of $34 ($28 after tax, or $.13 per share) reflected in operating income resulting from the sale of two parcels of land, and (v) a charge to other non-operating income (expense), net related to pension settlement losses of $19 ($12 after-tax, or $.06 per share). For fiscal year 2014, these items include: (i) a charge to operating income of $11 ($7 after-tax, or $.03 per share) related to business restructuring and cost reduction actions, (ii) a charge to operating income of $310 ($275 attributable to Air Products, after-tax, or $1.27 per share) related to the impairment of goodwill and intangible assets, and (iii) a charge to other non-operating income (expense), net related to pension settlement losses of $5 ($3 after-tax, or $.02 per share).
|
(B)
|
Reflects adoption of guidance on presentation of net periodic pension and postretirement benefit cost on a retrospective basis during the first quarter of fiscal year 2018. Refer to Note 2, New Accounting Guidance, to the consolidated financial statements for additional information.
|
(C)
|
Fiscal year 2017 includes the third quarter impact of an other-than-temporary noncash impairment charge of $79.5 ($.36 per share) on our investment in Abdullah Hashim Industrial Gases & Equipment Co., Ltd. (AHG), a 25%‑owned equity affiliate in our Industrial Gases – EMEA segment.
|
(D)
|
Information presented on a total company basis, which includes both continuing and discontinued operations.
|
(E)
|
Total debt includes long-term debt, including debt to related parties, current portion of long-term debt, and short-term borrowings as of the end of the year for continuing operations.
|
(F)
|
Calculated using income from continuing operations attributable to Air Products and five-quarter average Air Products shareholders’ equity.
|
(G)
|
Total capitalization includes total debt for continuing operations plus total equity plus redeemable noncontrolling interest as of the end of the year. Redeemable noncontrolling interest was $287 as of 30 September 2014. There was no redeemable noncontrolling interest for the other periods presented.
|
(H)
|
A reconciliation of income from continuing operations on a GAAP basis to adjusted EBITDA is presented on pages 36-39.
|
(I)
|
Capital expenditures presented on a GAAP basis include additions to plant and equipment, acquisitions, less cash acquired, and investment in and advances to unconsolidated affiliates. The Company utilizes a non-GAAP measure in the computation of capital expenditures and includes spending associated with facilities accounted for as capital leases and purchases of noncontrolling interests. Refer to page 41 for a reconciliation of the GAAP to non-GAAP measures for fiscal years 2018, 2017, and 2016. In fiscal year 2015, the GAAP measure was adjusted by $96 and $278 for spending associated with facilities accounted for as capital leases and purchases of noncontrolling interests, respectively. In fiscal year 2014, the GAAP measure was adjusted by $200 for spending associated with facilities accounted for as capital leases.
|
(J)
|
Includes full- and part-time employees from continuing and discontinued operations.
|
•
|
Sales of $8,930.2 increased 9%, or $742.6, from underlying sales growth of 7% and favorable currency impacts of 2%. The underlying sales growth was primarily driven by higher volumes across all regional Industrial Gases segments, partially offset by lower sale of equipment activity in the Industrial Gases – Global segment.
|
•
|
Operating income of $1,965.6 increased 37%, or $525.6, and operating margin of 22.0% increased 440 bp. On a non‑GAAP basis, adjusted operating income of $1,941.5 increased 9%, or $167.7, and adjusted operating margin of 21.7% was flat.
|
•
|
Income from continuing operations of $1,455.6 increased 28%, or $321.2, and diluted EPS of $6.59 increased 28%, or $1.43. On a non-GAAP basis, adjusted income from continuing operations of $1,644.7 increased 19%, or $258.8, and adjusted diluted EPS of $7.45 increased 18%, or $1.14. A summary table of changes in diluted earnings per share is presented on the following page.
|
•
|
Adjusted EBITDA of $3,115.5 increased 11%, or $316.3. Adjusted EBITDA margin of 34.9% increased 70 bp.
|
•
|
We completed the formation of a syngas supply joint venture with Lu'An, including the acquisition of Lu'An's gasification and syngas purification assets.
|
•
|
We increased our quarterly dividend by 16% from $.95 to $1.10 per share, or $4.40 per share annually, the largest increase in Company history. This represents the 36th consecutive year that we have increased our dividend payment.
|
|
|
|
|
|
|
Increase
|
||||||
|
|
2018
|
|
2017
|
|
(Decrease)
|
||||||
Diluted Earnings per Share
|
|
|
|
|
|
|
||||||
Net income
|
|
|
$6.78
|
|
|
|
$13.65
|
|
|
|
($6.87
|
)
|
Income from discontinued operations
|
|
.19
|
|
|
8.49
|
|
|
(8.30
|
)
|
|||
Income from Continuing Operations – GAAP
|
|
|
$6.59
|
|
|
|
$5.16
|
|
|
|
$1.43
|
|
Operating Income Impact (after-tax)
|
|
|
|
|
|
|
||||||
Underlying business
|
|
|
|
|
|
|
||||||
Volume
|
|
|
|
|
|
|
$.71
|
|
||||
Price/raw materials
|
|
|
|
|
|
.16
|
|
|||||
Costs
|
|
|
|
|
|
(.45
|
)
|
|||||
Currency
|
|
|
|
|
|
.16
|
|
|||||
Change in inventory valuation method
|
|
|
|
|
|
.08
|
|
|||||
Business separation costs
|
|
|
|
|
|
.12
|
|
|||||
Cost reduction and asset actions
|
|
|
|
|
|
.49
|
|
|||||
Goodwill and intangible asset impairment charge
|
|
|
|
|
|
.70
|
|
|||||
Gain on land sale
|
|
|
|
|
|
(.03
|
)
|
|||||
Total Operating Income Impact (after-tax)
|
|
|
|
|
|
|
$1.94
|
|
||||
Other Impact (after-tax)
|
|
|
|
|
|
|
||||||
Equity affiliates' income
|
|
|
|
|
|
.15
|
|
|||||
Equity method investment impairment charge
|
|
|
|
|
|
.36
|
|
|||||
Interest expense
|
|
|
|
|
|
(.03
|
)
|
|||||
Other non-operating income (expense), net
|
|
|
|
|
|
(.04
|
)
|
|||||
Income tax
|
|
|
|
|
|
.44
|
|
|||||
Tax reform repatriation
|
|
|
|
|
|
(2.16
|
)
|
|||||
Tax reform benefit related to deemed foreign dividends
|
|
|
|
|
|
.25
|
|
|||||
Tax reform rate change and other
|
|
|
|
|
|
.96
|
|
|||||
Tax restructuring
|
|
|
|
|
|
.16
|
|
|||||
Tax benefit associated with business separation
|
|
|
|
|
|
(.02
|
)
|
|||||
Tax election benefit
|
|
|
|
|
|
(.50
|
)
|
|||||
Noncontrolling interests
|
|
|
|
|
|
(.05
|
)
|
|||||
Weighted average diluted shares
|
|
|
|
|
|
(.03
|
)
|
|||||
Total Other Impact (after-tax)
|
|
|
|
|
|
|
($.51
|
)
|
||||
Total Change in Diluted Earnings per Share from Continuing Operations – GAAP Measure
|
|
|
|
|
|
|
$1.43
|
|
|
|
|
|
|
|
Increase
|
||||||
|
|
2018
|
|
2017
|
|
(Decrease)
|
||||||
Income from Continuing Operations – GAAP Basis
|
|
|
$6.59
|
|
|
|
$5.16
|
|
|
|
$1.43
|
|
Change in inventory valuation method
|
|
(.08
|
)
|
|
—
|
|
|
|
($.08
|
)
|
||
Business separation costs
|
|
—
|
|
|
.12
|
|
|
(.12
|
)
|
|||
Tax benefit associated with business separation
|
|
—
|
|
|
(.02
|
)
|
|
.02
|
|
|||
Cost reduction and asset actions
|
|
—
|
|
|
.49
|
|
|
(.49
|
)
|
|||
Goodwill and intangible asset impairment charge
|
|
—
|
|
|
.70
|
|
|
(.70
|
)
|
|||
Gain on land sale
|
|
—
|
|
|
(.03
|
)
|
|
.03
|
|
|||
Equity method investment impairment charge
|
|
—
|
|
|
.36
|
|
|
(.36
|
)
|
|||
Pension settlement loss
|
|
.15
|
|
|
.03
|
|
|
.12
|
|
|||
Tax reform repatriation
|
|
2.16
|
|
|
—
|
|
|
2.16
|
|
|||
Tax reform benefit related to deemed foreign dividends
|
|
(.25
|
)
|
|
—
|
|
|
(.25
|
)
|
|||
Tax reform rate change and other
|
|
(.96
|
)
|
|
—
|
|
|
(.96
|
)
|
|||
Tax restructuring
|
|
(.16
|
)
|
|
—
|
|
|
(.16
|
)
|
|||
Tax election benefit
|
|
—
|
|
|
(.50
|
)
|
|
.50
|
|
|||
Income from Continuing Operations – Non-GAAP Measure
|
|
|
$7.45
|
|
|
|
$6.31
|
|
|
|
$1.14
|
|
|
2018
|
|
2017
|
|
2016
|
|
|||
Sales
|
|
$8,930.2
|
|
|
$8,187.6
|
|
|
$7,503.7
|
|
Operating income
|
1,965.6
|
|
1,440.0
|
|
1,535.1
|
|
|||
Operating margin
|
22.0
|
%
|
17.6
|
%
|
20.5
|
%
|
|||
Equity affiliates’ income
|
174.8
|
|
80.1
|
|
147.0
|
|
|||
Income from continuing operations
|
1,455.6
|
|
1,134.4
|
|
1,099.5
|
|
|||
Non-GAAP Measures
|
|
|
|
||||||
Adjusted EBITDA
|
|
$3,115.5
|
|
|
$2,799.2
|
|
|
$2,621.8
|
|
Adjusted EBITDA margin
|
34.9
|
%
|
34.2
|
%
|
34.9
|
%
|
|||
Adjusted operating income
|
1,941.5
|
|
1,773.8
|
|
1,620.2
|
|
|||
Adjusted operating margin
|
21.7
|
%
|
21.7
|
%
|
21.6
|
%
|
|||
Adjusted equity affiliates' income
|
203.3
|
|
159.6
|
|
147.0
|
|
|
% Change from Prior Year
|
|||
Sales
|
2018
|
|
2017
|
|
Underlying business
|
|
|
||
Volume
|
6
|
%
|
6
|
%
|
Price
|
1
|
%
|
1
|
%
|
Energy and raw material cost pass-through
|
—
|
%
|
3
|
%
|
Currency
|
2
|
%
|
(1
|
)%
|
Total Consolidated Sales Change
|
9
|
%
|
9
|
%
|
|
2018
|
|
2017
|
|
2016
|
|
|||
Interest incurred
|
|
$150.0
|
|
|
$139.6
|
|
|
$147.9
|
|
Less: Capitalized interest
|
19.5
|
|
19.0
|
|
32.7
|
|
|||
Interest Expense
|
|
$130.5
|
|
|
$120.6
|
|
|
$115.2
|
|
|
2018
|
|
2017
|
|
2016
|
|
|||
Sales
|
|
$3,758.8
|
|
|
$3,637.0
|
|
|
$3,344.1
|
|
Operating income
|
927.9
|
|
946.1
|
|
891.3
|
|
|||
Operating margin
|
24.7
|
%
|
26.0
|
%
|
26.7
|
%
|
|||
Equity affiliates’ income
|
82.0
|
|
58.1
|
|
52.7
|
|
|||
Adjusted EBITDA
|
1,495.2
|
|
1,468.6
|
|
1,387.6
|
|
|||
Adjusted EBITDA margin
|
39.8
|
%
|
40.4
|
%
|
41.5
|
%
|
|
% Change from Prior Year
|
|||
Sales
|
2018
|
|
2017
|
|
Underlying business
|
|
|
||
Volume
|
4
|
%
|
2
|
%
|
Price
|
—
|
%
|
—
|
%
|
Energy and raw material cost pass-through
|
(1
|
)%
|
6
|
%
|
Currency
|
—
|
%
|
1
|
%
|
Total Industrial Gases – Americas Sales Change
|
3
|
%
|
9
|
%
|
|
2018
|
|
2017
|
|
2016
|
|
|||
Sales
|
|
$2,193.3
|
|
|
$1,780.4
|
|
|
$1,704.4
|
|
Operating income
|
445.8
|
|
395.5
|
|
387.0
|
|
|||
Operating margin
|
20.3
|
%
|
22.2
|
%
|
22.7
|
%
|
|||
Equity affiliates’ income
|
61.1
|
|
47.1
|
|
36.5
|
|
|||
Adjusted EBITDA
|
705.5
|
|
619.7
|
|
609.2
|
|
|||
Adjusted EBITDA margin
|
32.2
|
%
|
34.8
|
%
|
35.7
|
%
|
|
% Change from Prior Year
|
|||
Sales
|
2018
|
|
2017
|
|
Underlying business
|
|
|
||
Volume
|
12
|
%
|
6
|
%
|
Price
|
1
|
%
|
—
|
%
|
Energy and raw material cost pass-through
|
3
|
%
|
1
|
%
|
Currency
|
7
|
%
|
(3
|
)%
|
Total Industrial Gases – EMEA Sales Change
|
23
|
%
|
4
|
%
|
|
2018
|
|
2017
|
|
2016
|
|
|||
Sales
|
|
$2,458.0
|
|
|
$1,964.7
|
|
|
$1,720.4
|
|
Operating income
|
689.9
|
|
532.6
|
|
452.8
|
|
|||
Operating margin
|
28.1
|
%
|
27.1
|
%
|
26.3
|
%
|
|||
Equity affiliates’ income
|
58.3
|
|
53.5
|
|
57.8
|
|
|||
Adjusted EBITDA
|
1,014.0
|
|
789.3
|
|
708.5
|
|
|||
Adjusted EBITDA margin
|
41.3
|
%
|
40.2
|
%
|
41.2
|
%
|
|
% Change from Prior Year
|
|||
Sales
|
2018
|
|
2017
|
|
Underlying business
|
|
|
||
Volume
|
17
|
%
|
14
|
%
|
Price
|
4
|
%
|
1
|
%
|
Energy and raw material cost pass-through
|
—
|
%
|
—
|
%
|
Currency
|
4
|
%
|
(1
|
)%
|
Total Industrial Gases – Asia Sales Change
|
25
|
%
|
14
|
%
|
|
2018
|
|
2017
|
|
2016
|
|
|||
Sales
|
|
$436.1
|
|
|
$722.9
|
|
|
$498.8
|
|
Operating income (loss)
|
53.9
|
|
71.1
|
|
(21.5
|
)
|
|||
Adjusted EBITDA
|
63.9
|
|
80.9
|
|
(13.6
|
)
|
|
2018
|
|
2017
|
|
2016
|
|
|||
Sales
|
|
$84.0
|
|
|
$82.6
|
|
|
$236.0
|
|
Operating loss
|
(176.0
|
)
|
(171.5
|
)
|
(89.4
|
)
|
|||
Adjusted EBITDA
|
(163.1
|
)
|
(159.3
|
)
|
(69.9
|
)
|
|
Continuing Operations
|
||||||||||||||||
|
Operating
Income
|
Operating
Margin(A)
|
Equity Affiliates' Income
|
Income Tax Provision
|
Net
Income
|
Diluted
EPS
|
|||||||||||
2018 GAAP
|
|
$1,965.6
|
|
22.0
|
%
|
|
$174.8
|
|
|
$524.3
|
|
|
$1,455.6
|
|
|
$6.59
|
|
2017 GAAP
|
1,440.0
|
|
17.6
|
%
|
80.1
|
|
260.9
|
|
1,134.4
|
|
5.16
|
|
|||||
Change GAAP
|
|
$525.6
|
|
440
|
bp
|
|
$94.7
|
|
|
$263.4
|
|
|
$321.2
|
|
|
$1.43
|
|
% Change GAAP
|
37
|
%
|
|
118
|
%
|
101
|
%
|
28
|
%
|
28
|
%
|
||||||
2018 GAAP
|
|
$1,965.6
|
|
22.0
|
%
|
|
$174.8
|
|
|
$524.3
|
|
|
$1,455.6
|
|
|
$6.59
|
|
Change in inventory valuation method
|
(24.1
|
)
|
(.3
|
)%
|
—
|
|
(6.6
|
)
|
(17.5
|
)
|
(.08
|
)
|
|||||
Pension settlement loss(B)
|
—
|
|
—
|
%
|
—
|
|
10.5
|
|
33.2
|
|
.15
|
|
|||||
Tax reform repatriation
|
—
|
|
—
|
%
|
28.5
|
|
(448.6
|
)
|
477.1
|
|
2.16
|
|
|||||
Tax reform benefit related to deemed foreign dividends
|
—
|
|
—
|
%
|
—
|
|
56.2
|
|
(56.2
|
)
|
(.25
|
)
|
|||||
Tax reform rate change and other
|
—
|
|
—
|
%
|
—
|
|
211.8
|
|
(211.8
|
)
|
(.96
|
)
|
|||||
Tax restructuring
|
—
|
|
—
|
%
|
—
|
|
35.7
|
|
(35.7
|
)
|
(.16
|
)
|
|||||
2018 Non-GAAP Measure
|
|
$1,941.5
|
|
21.7
|
%
|
|
$203.3
|
|
|
$383.3
|
|
|
$1,644.7
|
|
|
$7.45
|
|
2017 GAAP
|
|
$1,440.0
|
|
17.6
|
%
|
|
$80.1
|
|
|
$260.9
|
|
|
$1,134.4
|
|
|
$5.16
|
|
Business separation costs
|
32.5
|
|
.4
|
%
|
—
|
|
3.7
|
|
26.5
|
|
.12
|
|
|||||
Tax benefit associated with business separation
|
—
|
|
—
|
%
|
—
|
|
5.5
|
|
(5.5
|
)
|
(.02
|
)
|
|||||
Cost reduction and asset actions(C)
|
151.4
|
|
1.8
|
%
|
—
|
|
41.6
|
|
109.3
|
|
.49
|
|
|||||
Goodwill and intangible asset impairment charge(D)
|
162.1
|
|
2.0
|
%
|
—
|
|
4.6
|
|
154.1
|
|
.70
|
|
|||||
Gain on land sale
|
(12.2
|
)
|
(.1
|
)%
|
—
|
|
(4.6
|
)
|
(7.6
|
)
|
(.03
|
)
|
|||||
Equity method investment impairment charge
|
—
|
|
—
|
%
|
79.5
|
|
—
|
|
79.5
|
|
.36
|
|
|||||
Pension settlement loss(B)
|
—
|
|
—
|
%
|
—
|
|
3.9
|
|
6.6
|
|
.03
|
|
|||||
Tax election benefit
|
—
|
|
—
|
%
|
—
|
|
111.4
|
|
(111.4
|
)
|
(.50
|
)
|
|||||
2017 Non-GAAP Measure
|
|
$1,773.8
|
|
21.7
|
%
|
|
$159.6
|
|
|
$427.0
|
|
|
$1,385.9
|
|
|
$6.31
|
|
Change Non-GAAP Measure
|
|
$167.7
|
|
—
|
|
|
$43.7
|
|
|
($43.7
|
)
|
|
$258.8
|
|
|
$1.14
|
|
% Change Non-GAAP Measure
|
9
|
%
|
|
27
|
%
|
(10
|
)%
|
19
|
%
|
18
|
%
|
|
Continuing Operations
|
||||||||||||||||
|
Operating
Income
|
Operating
Margin(A)
|
Equity Affiliates' Income
|
Income Tax Provision
|
Net
Income
|
Diluted
EPS
|
|||||||||||
2017 GAAP
|
|
$1,440.0
|
|
17.6
|
%
|
|
$80.1
|
|
|
$260.9
|
|
|
$1,134.4
|
|
|
$5.16
|
|
2016 GAAP
|
1,535.1
|
|
20.5
|
%
|
147.0
|
|
432.6
|
|
1,099.5
|
|
5.04
|
|
|||||
Change GAAP
|
|
($95.1
|
)
|
(290
|
)bp
|
|
($66.9
|
)
|
|
($171.7
|
)
|
|
$34.9
|
|
|
$.12
|
|
% Change GAAP
|
(6
|
)%
|
|
(46
|
)%
|
(40
|
)%
|
3
|
%
|
2
|
%
|
||||||
2017 GAAP
|
|
$1,440.0
|
|
17.6
|
%
|
|
$80.1
|
|
|
$260.9
|
|
|
$1,134.4
|
|
|
$5.16
|
|
Business separation costs
|
32.5
|
|
.4
|
%
|
—
|
|
3.7
|
|
26.5
|
|
.12
|
|
|||||
Tax benefit associated with business separation
|
—
|
|
—
|
%
|
—
|
|
5.5
|
|
(5.5
|
)
|
(.02
|
)
|
|||||
Cost reduction and asset actions(C)
|
151.4
|
|
1.8
|
%
|
—
|
|
41.6
|
|
109.3
|
|
.49
|
|
|||||
Goodwill and intangible asset impairment charge(D)
|
162.1
|
|
2.0
|
%
|
—
|
|
4.6
|
|
154.1
|
|
.70
|
|
|||||
Gain on land sale
|
(12.2
|
)
|
(.1
|
)%
|
—
|
|
(4.6
|
)
|
(7.6
|
)
|
(.03
|
)
|
|||||
Equity method investment impairment charge
|
—
|
|
—
|
%
|
79.5
|
|
—
|
|
79.5
|
|
.36
|
|
|||||
Pension settlement loss(B)
|
—
|
|
—
|
%
|
—
|
|
3.9
|
|
6.6
|
|
.03
|
|
|||||
Tax election benefit
|
—
|
|
—
|
%
|
—
|
|
111.4
|
|
(111.4
|
)
|
(.50
|
)
|
|||||
2017 Non-GAAP Measure
|
|
$1,773.8
|
|
21.7
|
%
|
|
$159.6
|
|
|
$427.0
|
|
|
$1,385.9
|
|
|
$6.31
|
|
2016 GAAP
|
|
$1,535.1
|
|
20.5
|
%
|
|
$147.0
|
|
|
$432.6
|
|
|
$1,099.5
|
|
|
$5.04
|
|
Business separation costs
|
50.6
|
|
.7
|
%
|
—
|
|
3.9
|
|
46.7
|
|
.21
|
|
|||||
Tax costs associated with business separation
|
—
|
|
—
|
%
|
—
|
|
(51.8
|
)
|
51.8
|
|
.24
|
|
|||||
Cost reduction and asset actions
|
34.5
|
|
.4
|
%
|
—
|
|
9.8
|
|
24.7
|
|
.11
|
|
|||||
Pension settlement loss(B)
|
—
|
|
—
|
%
|
—
|
|
1.8
|
|
3.3
|
|
.02
|
|
|||||
Loss on extinguishment of debt(E)
|
—
|
|
—
|
%
|
—
|
|
2.6
|
|
4.3
|
|
.02
|
|
|||||
2016 Non-GAAP Measure
|
|
$1,620.2
|
|
21.6
|
%
|
|
$147.0
|
|
|
$398.9
|
|
|
$1,230.3
|
|
|
$5.64
|
|
Change Non-GAAP Measure
|
|
$153.6
|
|
10
|
bp
|
|
$12.6
|
|
|
$28.1
|
|
|
$155.6
|
|
|
$.67
|
|
% Change Non-GAAP Measure
|
9
|
%
|
|
9
|
%
|
7
|
%
|
13
|
%
|
12
|
%
|
(A)
|
Operating margin is calculated by dividing operating income by sales.
|
(B)
|
Reflected on the consolidated income statements in "Other non-operating income (expense), net." Fiscal year 2018 includes a before-tax impact of $43.7 primarily resulting from the transfer of certain pension payment obligations to an insurer through the purchase of an irrevocable, nonparticipating group annuity contract during the fourth quarter.
|
(C)
|
Noncontrolling interests impact of $.5 in fiscal year 2017.
|
(D)
|
Noncontrolling interests impact of $3.4 in fiscal year 2017.
|
(E)
|
Income from continuing operations before taxes impact of $6.9 in fiscal year 2016.
|
|
2018
|
2017
|
2016
|
2015
|
2014
|
||||||||||
Income From Continuing Operations(A)
|
|
$1,490.7
|
|
|
$1,155.2
|
|
|
$1,122.0
|
|
|
$965.9
|
|
|
$691.0
|
|
Less: Change in inventory valuation method
|
24.1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Add: Interest expense
|
130.5
|
|
120.6
|
|
115.2
|
|
102.8
|
|
124.0
|
|
|||||
Less: Other non-operating income (expense), net
|
5.1
|
|
16.6
|
|
(5.4
|
)
|
(42.3
|
)
|
(51.7
|
)
|
|||||
Add: Income tax provision
|
524.3
|
|
260.9
|
|
432.6
|
|
300.2
|
|
258.1
|
|
|||||
Add: Depreciation and amortization
|
970.7
|
|
865.8
|
|
854.6
|
|
858.5
|
|
875.6
|
|
|||||
Add: Business separation costs
|
—
|
|
32.5
|
|
50.6
|
|
7.5
|
|
—
|
|
|||||
Add: Cost reduction and asset actions
|
—
|
|
151.4
|
|
34.5
|
|
180.1
|
|
11.1
|
|
|||||
Add: Goodwill and intangible asset impairment charge
|
—
|
|
162.1
|
|
—
|
|
—
|
|
310.1
|
|
|||||
Less: Gain on previously held equity interest
|
—
|
|
—
|
|
—
|
|
17.9
|
|
—
|
|
|||||
Less: Gain on land sales
|
—
|
|
12.2
|
|
—
|
|
33.6
|
|
—
|
|
|||||
Add: Equity method investment impairment charge
|
—
|
|
79.5
|
|
—
|
|
—
|
|
—
|
|
|||||
Add: Loss on extinguishment of debt
|
—
|
|
—
|
|
6.9
|
|
16.6
|
|
—
|
|
|||||
Add: Tax reform repatriation - equity method investment
|
28.5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Adjusted EBITDA
|
|
$3,115.5
|
|
|
$2,799.2
|
|
|
$2,621.8
|
|
|
$2,422.4
|
|
|
$2,321.6
|
|
Adjusted EBITDA margin
|
34.9
|
%
|
34.2
|
%
|
34.9
|
%
|
31.0
|
%
|
27.7
|
%
|
|||||
Change GAAP
|
|
|
|
|
|
||||||||||
Income from continuing operations change
|
|
$335.5
|
|
|
$33.2
|
|
|
$156.1
|
|
|
$274.9
|
|
|
||
Income from continuing operations % change
|
29
|
%
|
3
|
%
|
16
|
%
|
40
|
%
|
|
||||||
Change Non-GAAP
|
|
|
|
|
|
||||||||||
Adjusted EBITDA change
|
|
$316.3
|
|
|
$177.4
|
|
|
$199.4
|
|
|
$100.8
|
|
|
||
Adjusted EBITDA % change
|
11
|
%
|
7
|
%
|
8
|
%
|
4
|
%
|
|
||||||
Adjusted EBITDA margin change
|
70
|
bp
|
(70
|
) bp
|
390
|
bp
|
330
|
bp
|
|
(A)
|
Includes net income attributable to noncontrolling interests.
|
|
Industrial
Gases–
Americas
|
Industrial
Gases–
EMEA
|
Industrial
Gases–
Asia
|
Industrial
Gases–
Global
|
Corporate
and other
|
Segment
Total
|
||||||||||||
GAAP Measure
|
|
|
|
|
|
|
||||||||||||
Twelve Months Ended 30 September 2018
|
|
|
|
|
|
|
||||||||||||
Operating income (loss)
|
|
$927.9
|
|
|
$445.8
|
|
|
$689.9
|
|
|
$53.9
|
|
|
($176.0
|
)
|
|
$1,941.5
|
|
Operating margin
|
24.7
|
%
|
20.3
|
%
|
28.1
|
%
|
|
|
21.7
|
%
|
||||||||
Twelve Months Ended 30 September 2017
|
|
|
|
|
|
|
||||||||||||
Operating income (loss)
|
|
$946.1
|
|
|
$395.5
|
|
|
$532.6
|
|
|
$71.1
|
|
|
($171.5
|
)
|
|
$1,773.8
|
|
Operating margin
|
26.0
|
%
|
22.2
|
%
|
27.1
|
%
|
|
|
21.7
|
%
|
||||||||
Twelve Months Ended 30 September 2016
|
|
|
|
|
|
|
||||||||||||
Operating income (loss)
|
|
$891.3
|
|
|
$387.0
|
|
|
$452.8
|
|
|
($21.5
|
)
|
|
($89.4
|
)
|
|
$1,620.2
|
|
Operating margin
|
26.7
|
%
|
22.7
|
%
|
26.3
|
%
|
|
|
21.6
|
%
|
||||||||
2018 vs. 2017
|
|
|
|
|
|
|
||||||||||||
Operating income (loss) change
|
|
($18.2
|
)
|
|
$50.3
|
|
|
$157.3
|
|
|
($17.2
|
)
|
|
($4.5
|
)
|
|
$167.7
|
|
Operating income (loss) % change
|
(2
|
)%
|
13
|
%
|
30
|
%
|
(24
|
)%
|
(3
|
)%
|
9
|
%
|
||||||
Operating margin change
|
(130
|
) bp
|
(190
|
) bp
|
100
|
bp
|
|
|
—
|
|
||||||||
2017 vs. 2016
|
|
|
|
|
|
|
||||||||||||
Operating income (loss) change
|
|
$54.8
|
|
|
$8.5
|
|
|
$79.8
|
|
|
$92.6
|
|
|
($82.1
|
)
|
|
$153.6
|
|
Operating income (loss) % change
|
6
|
%
|
2
|
%
|
18
|
%
|
431
|
%
|
(92
|
)%
|
9
|
%
|
||||||
Operating margin change
|
(70
|
) bp
|
(50
|
) bp
|
80
|
bp
|
|
|
10
|
bp
|
(A)
|
Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by sales.
|
Operating Income
|
2018
|
|
2017
|
|
2016
|
|
|||
Segment total
|
|
$1,941.5
|
|
|
$1,773.8
|
|
|
$1,620.2
|
|
Change in inventory valuation method
|
24.1
|
|
—
|
|
—
|
|
|||
Business separation costs
|
—
|
|
(32.5
|
)
|
(50.6
|
)
|
|||
Cost reduction and asset actions
|
—
|
|
(151.4
|
)
|
(34.5
|
)
|
|||
Goodwill and intangible asset impairment charge
|
—
|
|
(162.1
|
)
|
—
|
|
|||
Gain on land sale
|
—
|
|
12.2
|
|
—
|
|
|||
Consolidated Total
|
|
$1,965.6
|
|
|
$1,440.0
|
|
|
$1,535.1
|
|
Equity Affiliates' Income
|
2018
|
2017
|
2016
|
||||||
Segment total
|
|
$203.3
|
|
|
$159.6
|
|
|
$147.0
|
|
Equity method investment impairment charge
|
—
|
|
(79.5
|
)
|
—
|
|
|||
Tax reform repatriation - equity method investment
|
(28.5
|
)
|
—
|
|
—
|
|
|||
Consolidated Total
|
|
$174.8
|
|
|
$80.1
|
|
|
$147.0
|
|
|
Effective Tax Rate
|
||||||||
|
2018
|
2017
|
2016
|
||||||
Income Tax Provision—GAAP
|
|
$524.3
|
|
|
$260.9
|
|
|
$432.6
|
|
Income From Continuing Operations Before Taxes—GAAP
|
|
$2,015.0
|
|
|
$1,416.1
|
|
|
$1,554.6
|
|
Effective Tax Rate—GAAP
|
26.0
|
%
|
18.4
|
%
|
27.8
|
%
|
|||
Income Tax Provision—GAAP
|
|
$524.3
|
|
|
$260.9
|
|
|
$432.6
|
|
Change in inventory valuation method
|
(6.6
|
)
|
—
|
|
—
|
|
|||
Business separation costs
|
—
|
|
3.7
|
|
3.9
|
|
|||
Tax benefit (costs) associated with business separation
|
—
|
|
5.5
|
|
(51.8
|
)
|
|||
Cost reduction and asset actions
|
—
|
|
41.6
|
|
9.8
|
|
|||
Goodwill and intangible asset impairment charge
|
—
|
|
4.6
|
|
—
|
|
|||
Gain on land sale
|
—
|
|
(4.6
|
)
|
—
|
|
|||
Pension settlement loss
|
10.5
|
|
3.9
|
|
1.8
|
|
|||
Loss on extinguishment of debt
|
—
|
|
—
|
|
2.6
|
|
|||
Tax reform repatriation
|
(448.6
|
)
|
—
|
|
—
|
|
|||
Tax reform benefit related to deemed foreign dividends
|
56.2
|
|
—
|
|
—
|
|
|||
Tax reform rate change and other
|
211.8
|
|
—
|
|
—
|
|
|||
Tax restructuring
|
35.7
|
|
—
|
|
—
|
|
|||
Tax election benefit
|
—
|
|
111.4
|
|
—
|
|
|||
Income Tax Provision—Non-GAAP Measure
|
|
$383.3
|
|
|
$427.0
|
|
|
$398.9
|
|
Income from Continuing Operations before Taxes—GAAP
|
|
$2,015.0
|
|
|
$1,416.1
|
|
|
$1,554.6
|
|
Change in inventory valuation method
|
(24.1
|
)
|
—
|
|
—
|
|
|||
Business separation costs
|
—
|
|
30.2
|
|
50.6
|
|
|||
Cost reduction and asset actions
|
—
|
|
151.4
|
|
34.5
|
|
|||
Goodwill and intangible asset impairment charge
|
—
|
|
162.1
|
|
—
|
|
|||
Gain on land sale
|
—
|
|
(12.2
|
)
|
—
|
|
|||
Equity method investment impairment charge
|
—
|
|
79.5
|
|
—
|
|
|||
Pension settlement loss
|
43.7
|
|
10.5
|
|
5.1
|
|
|||
Loss on extinguishment of debt
|
—
|
|
—
|
|
6.9
|
|
|||
Tax reform repatriation - equity method investment
|
28.5
|
|
—
|
|
—
|
|
|||
Income From Continuing Operations Before Taxes—Non-GAAP Measure
|
|
$2,063.1
|
|
|
$1,837.6
|
|
|
$1,651.7
|
|
Effective Tax Rate—Non-GAAP Measure
|
18.6
|
%
|
23.2
|
%
|
24.2
|
%
|
Cash provided by (used for)
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Operating activities
|
|
|
$2,554.7
|
|
|
|
$2,534.1
|
|
|
|
$2,258.8
|
|
Investing activities
|
|
(1,649.1
|
)
|
|
(1,417.7
|
)
|
|
(864.8
|
)
|
|||
Financing activities
|
|
(1,359.8
|
)
|
|
(2,040.9
|
)
|
|
(860.2
|
)
|
|
2018
|
|
2017
|
|
2016
|
|
|||
Additions to plant and equipment
|
|
$1,568.4
|
|
|
$1,039.7
|
|
|
$907.7
|
|
Acquisitions, less cash acquired
|
345.4
|
|
8.2
|
|
—
|
|
|||
Investments in and advances to unconsolidated affiliates
|
—
|
|
8.1
|
|
—
|
|
|||
Capital Expenditures on a GAAP Basis
|
|
$1,913.8
|
|
|
$1,056.0
|
|
|
$907.7
|
|
Capital lease expenditures(A)
|
20.2
|
|
9.9
|
|
27.2
|
|
|||
Capital Expenditures on a Non-GAAP Basis
|
|
$1,934.0
|
|
|
$1,065.9
|
|
|
$934.9
|
|
(A)
|
We utilize a non-GAAP measure in the computation of capital expenditures and include spending associated with facilities accounted for as capital leases. Certain contracts associated with facilities that are built to provide product to a specific customer are required to be accounted for as leases, and such spending is reflected as a use of cash in the consolidated statements of cash flows within "Cash Provided by Operating Activities" if the arrangement qualifies as a capital lease. The presentation of this non-GAAP measure is intended to enhance the usefulness of information by providing a measure that our management uses internally to evaluate and manage our expenditures.
|
|
Total
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
|||||||
Debt maturities
|
|
$3,774
|
|
|
$407
|
|
|
$381
|
|
|
$474
|
|
|
$448
|
|
|
$449
|
|
|
$1,615
|
|
Contractual interest on debt
|
589
|
|
101
|
|
81
|
|
71
|
|
57
|
|
46
|
|
233
|
|
|||||||
Capital leases
|
23
|
|
2
|
|
2
|
|
3
|
|
1
|
|
1
|
|
14
|
|
|||||||
Operating leases
|
334
|
|
66
|
|
50
|
|
41
|
|
31
|
|
23
|
|
123
|
|
|||||||
Pension obligations
|
310
|
|
53
|
|
40
|
|
41
|
|
41
|
|
41
|
|
94
|
|
|||||||
Unconditional purchase obligations
|
7,660
|
|
851
|
|
362
|
|
342
|
|
318
|
|
326
|
|
5,461
|
|
|||||||
Deemed repatriation tax related to the Tax Act
|
184
|
|
—
|
|
14
|
|
16
|
|
16
|
|
16
|
|
122
|
|
|||||||
Obligation for future contribution to an equity affiliate
|
100
|
|
—
|
|
100
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Total Contractual Obligations
|
|
$12,974
|
|
|
$1,480
|
|
|
$1,030
|
|
|
$988
|
|
|
$912
|
|
|
$902
|
|
|
$7,662
|
|
|
2018
|
|
2017
|
|
2016
|
|
|||
Pension expense – Continuing operations
|
|
$91.8
|
|
|
$72.0
|
|
|
$55.8
|
|
Settlements, termination benefits, and curtailments (included above)
|
48.9
|
|
15.0
|
|
6.0
|
|
|||
Weighted average discount rate – Service cost
|
3.2
|
%
|
2.9
|
%
|
4.1
|
%
|
|||
Weighted average discount rate – Interest cost
|
2.9
|
%
|
2.5
|
%
|
3.4
|
%
|
|||
Weighted average expected rate of return on plan assets
|
6.9
|
%
|
7.4
|
%
|
7.5
|
%
|
|||
Weighted average expected rate of compensation increase
|
3.5
|
%
|
3.5
|
%
|
3.5
|
%
|
|
|
Decrease Life
By 1 Year
|
|
|
Increase Life
By 1 Year
|
|
||
Industrial Gases – Regional
|
|
|
$45
|
|
|
|
($39
|
)
|
(i)
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
(ii)
|
provide reasonable assurance that the transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
(iii)
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
|
/s/ Seifi Ghasemi
|
|
|
|
/s/ M. Scott Crocco
|
Seifi Ghasemi
|
|
|
|
M. Scott Crocco
|
Chairman, President, and
|
|
|
|
Executive Vice President and
|
Chief Executive Officer
|
|
|
|
Chief Financial Officer
|
20 November 2018
|
|
|
|
20 November 2018
|
Year ended 30 September (Millions of dollars, except for share and per share data)
|
2018
|
|
2017
|
|
2016
|
|
|||
Sales
|
|
$8,930.2
|
|
|
$8,187.6
|
|
|
$7,503.7
|
|
Cost of sales
|
6,189.5
|
|
5,751.5
|
|
5,177.3
|
|
|||
Selling and administrative
|
760.8
|
|
713.5
|
|
683.8
|
|
|||
Research and development
|
64.5
|
|
57.6
|
|
71.8
|
|
|||
Business separation costs
|
—
|
|
32.5
|
|
50.6
|
|
|||
Cost reduction and asset actions
|
—
|
|
151.4
|
|
34.5
|
|
|||
Goodwill and intangible asset impairment charge
|
—
|
|
162.1
|
|
—
|
|
|||
Other income (expense), net
|
50.2
|
|
121.0
|
|
49.4
|
|
|||
Operating Income
|
1,965.6
|
|
1,440.0
|
|
1,535.1
|
|
|||
Equity affiliates' income
|
174.8
|
|
80.1
|
|
147.0
|
|
|||
Interest expense
|
130.5
|
|
120.6
|
|
115.2
|
|
|||
Other non-operating income (expense), net
|
5.1
|
|
16.6
|
|
(5.4
|
)
|
|||
Loss on extinguishment of debt
|
—
|
|
—
|
|
6.9
|
|
|||
Income From Continuing Operations Before Taxes
|
2,015.0
|
|
1,416.1
|
|
1,554.6
|
|
|||
Income tax provision
|
524.3
|
|
260.9
|
|
432.6
|
|
|||
Income From Continuing Operations
|
1,490.7
|
|
1,155.2
|
|
1,122.0
|
|
|||
Income (Loss) From Discontinued Operations, net of tax
|
42.2
|
|
1,866.0
|
|
(460.5
|
)
|
|||
Net Income
|
1,532.9
|
|
3,021.2
|
|
661.5
|
|
|||
Net Income Attributable to Noncontrolling Interests of Continuing Operations
|
35.1
|
|
20.8
|
|
22.5
|
|
|||
Net Income Attributable to Noncontrolling Interests of Discontinued Operations
|
—
|
|
—
|
|
7.9
|
|
|||
Net Income Attributable to Air Products
|
|
$1,497.8
|
|
|
$3,000.4
|
|
|
$631.1
|
|
|
|
|
|
||||||
Net Income Attributable to Air Products
|
|
|
|
||||||
Income from continuing operations
|
|
$1,455.6
|
|
|
$1,134.4
|
|
|
$1,099.5
|
|
Income (Loss) from discontinued operations
|
42.2
|
|
1,866.0
|
|
(468.4
|
)
|
|||
Net Income Attributable to Air Products
|
|
$1,497.8
|
|
|
$3,000.4
|
|
|
$631.1
|
|
Basic Earnings Per Common Share Attributable to Air Products
|
|
|
|
||||||
Income from continuing operations
|
|
$6.64
|
|
|
$5.20
|
|
|
$5.08
|
|
Income (Loss) from discontinued operations
|
.19
|
|
8.56
|
|
(2.16
|
)
|
|||
Net Income Attributable to Air Products
|
|
$6.83
|
|
|
$13.76
|
|
|
$2.92
|
|
Diluted Earnings Per Common Share Attributable to Air Products
|
|
|
|
||||||
Income from continuing operations
|
|
$6.59
|
|
|
$5.16
|
|
|
$5.04
|
|
Income (Loss) from discontinued operations
|
.19
|
|
8.49
|
|
(2.15
|
)
|
|||
Net Income Attributable to Air Products
|
|
$6.78
|
|
|
$13.65
|
|
|
$2.89
|
|
Weighted Average Common Shares — Basic (in millions)
|
219.3
|
|
218.0
|
|
216.4
|
|
|||
Weighted Average Common Shares — Diluted (in millions)
|
220.8
|
|
219.8
|
|
218.3
|
|
Year ended 30 September (Millions of dollars)
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Net Income
|
|
|
$1,532.9
|
|
|
|
$3,021.2
|
|
|
|
$661.5
|
|
Other Comprehensive Income (Loss), net of tax:
|
|
|
|
|
|
|
||||||
Translation adjustments, net of tax of $1.1, ($19.3), and ($19.8)
|
|
(244.6
|
)
|
|
101.9
|
|
|
9.9
|
|
|||
Net gain (loss) on derivatives, net of tax of $9.7, ($11.0), and $9.1
|
|
45.9
|
|
|
(12.6
|
)
|
|
13.7
|
|
|||
Pension and postretirement benefits, net of tax of $55.2, $109.0, and ($157.4)
|
|
179.4
|
|
|
251.6
|
|
|
(335.1
|
)
|
|||
Reclassification adjustments:
|
|
|
|
|
|
|
||||||
Currency translation adjustment
|
|
3.1
|
|
|
57.3
|
|
|
2.7
|
|
|||
Derivatives, net of tax of ($9.2), $11.7, and ($9.4)
|
|
(30.4
|
)
|
|
24.2
|
|
|
(36.0
|
)
|
|||
Pension and postretirement benefits, net of tax of $44.9, $50.7, and $43.0
|
|
133.1
|
|
|
110.7
|
|
|
87.2
|
|
|||
Total Other Comprehensive Income (Loss)
|
|
86.5
|
|
|
533.1
|
|
|
(257.6
|
)
|
|||
Comprehensive Income
|
|
1,619.4
|
|
|
3,554.3
|
|
|
403.9
|
|
|||
Net Income Attributable to Noncontrolling Interests
|
|
35.1
|
|
|
20.8
|
|
|
30.4
|
|
|||
Other Comprehensive Income (Loss) Attributable to Noncontrolling Interests
|
|
(19.0
|
)
|
|
3.7
|
|
|
4.8
|
|
|||
Comprehensive Income Attributable to Air Products
|
|
|
$1,603.3
|
|
|
|
$3,529.8
|
|
|
|
$368.7
|
|
30 September (Millions of dollars, except for share and per share data)
|
2018
|
|
2017
|
|
||
Assets
|
|
|
||||
Current Assets
|
|
|
||||
Cash and cash items
|
|
$2,791.3
|
|
|
$3,273.6
|
|
Short-term investments
|
184.7
|
|
404.0
|
|
||
Trade receivables, net
|
1,207.2
|
|
1,174.0
|
|
||
Inventories
|
396.1
|
|
335.4
|
|
||
Contracts in progress, less progress billings
|
77.5
|
|
84.8
|
|
||
Prepaid expenses
|
129.6
|
|
191.4
|
|
||
Other receivables and current assets
|
295.8
|
|
403.3
|
|
||
Current assets of discontinued operations
|
—
|
|
10.2
|
|
||
Total Current Assets
|
5,082.2
|
|
5,876.7
|
|
||
Investment in net assets of and advances to equity affiliates
|
1,277.2
|
|
1,286.9
|
|
||
Plant and equipment, net
|
9,923.7
|
|
8,440.2
|
|
||
Goodwill, net
|
788.9
|
|
721.5
|
|
||
Intangible assets, net
|
438.5
|
|
368.3
|
|
||
Noncurrent capital lease receivables
|
1,013.3
|
|
1,131.8
|
|
||
Other noncurrent assets
|
654.5
|
|
641.8
|
|
||
Total Noncurrent Assets
|
14,096.1
|
|
12,590.5
|
|
||
Total Assets
|
|
$19,178.3
|
|
|
$18,467.2
|
|
Liabilities and Equity
|
|
|
||||
Current Liabilities
|
|
|
||||
Payables and accrued liabilities
|
|
$1,817.8
|
|
|
$1,814.3
|
|
Accrued income taxes
|
59.6
|
|
98.6
|
|
||
Short-term borrowings
|
54.3
|
|
144.0
|
|
||
Current portion of long-term debt
|
406.6
|
|
416.4
|
|
||
Current liabilities of discontinued operations
|
—
|
|
15.7
|
|
||
Total Current Liabilities
|
2,338.3
|
|
2,489.0
|
|
||
Long-term debt
|
2,967.4
|
|
3,402.4
|
|
||
Long-term debt – related party
|
384.3
|
|
—
|
|
||
Other noncurrent liabilities
|
1,536.9
|
|
1,611.9
|
|
||
Deferred income taxes
|
775.1
|
|
778.4
|
|
||
Total Noncurrent Liabilities
|
5,663.7
|
|
5,792.7
|
|
||
Total Liabilities
|
8,002.0
|
|
8,281.7
|
|
||
Commitments and Contingencies – See Note 17
|
|
|
||||
Air Products Shareholders’ Equity
|
|
|
||||
Common stock (par value $1 per share; issued 2018 and 2017 - 249,455,584 shares)
|
249.4
|
|
249.4
|
|
||
Capital in excess of par value
|
1,029.3
|
|
1,001.1
|
|
||
Retained earnings
|
13,409.9
|
|
12,846.6
|
|
||
Accumulated other comprehensive loss
|
(1,741.9
|
)
|
(1,847.4
|
)
|
||
Treasury stock, at cost (2018 - 29,940,339 shares; 2017 - 31,109,510 shares)
|
(2,089.2
|
)
|
(2,163.5
|
)
|
||
Total Air Products Shareholders' Equity
|
10,857.5
|
|
10,086.2
|
|
||
Noncontrolling Interests
|
318.8
|
|
99.3
|
|
||
Total Equity
|
11,176.3
|
|
10,185.5
|
|
||
Total Liabilities and Equity
|
|
$19,178.3
|
|
|
$18,467.2
|
|
Year ended 30 September (Millions of dollars)
|
2018
|
|
2017
|
|
2016
|
|
|||
Operating Activities
|
|
|
|
||||||
Net income
|
|
$1,532.9
|
|
|
$3,021.2
|
|
|
$661.5
|
|
Less: Net income attributable to noncontrolling interests of continuing operations
|
35.1
|
|
20.8
|
|
22.5
|
|
|||
Less: Net income attributable to noncontrolling interests of discontinued operations
|
—
|
|
—
|
|
7.9
|
|
|||
Net income attributable to Air Products
|
1,497.8
|
|
3,000.4
|
|
631.1
|
|
|||
(Income) Loss from discontinued operations
|
(42.2
|
)
|
(1,866.0
|
)
|
468.4
|
|
|||
Income from continuing operations attributable to Air Products
|
1,455.6
|
|
1,134.4
|
|
1,099.5
|
|
|||
Adjustments to reconcile income to cash provided by operating activities:
|
|
|
|
||||||
Depreciation and amortization
|
970.7
|
|
865.8
|
|
854.6
|
|
|||
Deferred income taxes
|
(55.4
|
)
|
(38.0
|
)
|
61.8
|
|
|||
Loss on extinguishment of debt
|
—
|
|
—
|
|
6.9
|
|
|||
Tax reform repatriation
|
240.6
|
|
—
|
|
—
|
|
|||
Undistributed earnings of unconsolidated affiliates
|
(52.3
|
)
|
(60.1
|
)
|
(51.1
|
)
|
|||
Gain on sale of assets and investments
|
(6.9
|
)
|
(24.3
|
)
|
(7.3
|
)
|
|||
Share-based compensation
|
38.8
|
|
39.9
|
|
31.0
|
|
|||
Noncurrent capital lease receivables
|
97.4
|
|
92.2
|
|
85.5
|
|
|||
Goodwill and intangible asset impairment charge
|
—
|
|
162.1
|
|
—
|
|
|||
Equity method investment impairment charge
|
—
|
|
79.5
|
|
—
|
|
|||
Write-down of long-lived assets associated with cost reduction actions
|
—
|
|
69.2
|
|
—
|
|
|||
Other adjustments
|
131.6
|
|
165.4
|
|
156.7
|
|
|||
Working capital changes that provided (used) cash, excluding effects of acquisitions and divestitures:
|
|
|
|
||||||
Trade receivables
|
(42.8
|
)
|
(73.6
|
)
|
(44.8
|
)
|
|||
Inventories
|
(64.2
|
)
|
6.4
|
|
32.2
|
|
|||
Contracts in progress, less progress billings
|
4.7
|
|
(19.3
|
)
|
28.2
|
|
|||
Other receivables
|
123.6
|
|
124.7
|
|
(6.7
|
)
|
|||
Payables and accrued liabilities
|
(277.7
|
)
|
163.8
|
|
60.1
|
|
|||
Other working capital
|
(9.0
|
)
|
(154.0
|
)
|
(47.8
|
)
|
|||
Cash Provided by Operating Activities
|
2,554.7
|
|
2,534.1
|
|
2,258.8
|
|
|||
Investing Activities
|
|
|
|
||||||
Additions to plant and equipment
|
(1,568.4
|
)
|
(1,039.7
|
)
|
(907.7
|
)
|
|||
Acquisitions, less cash acquired
|
(345.4
|
)
|
(8.2
|
)
|
—
|
|
|||
Investment in and advances to unconsolidated affiliates
|
—
|
|
(8.1
|
)
|
—
|
|
|||
Proceeds from sale of assets and investments
|
48.8
|
|
42.5
|
|
44.6
|
|
|||
Purchases of investments
|
(530.3
|
)
|
(2,692.6
|
)
|
—
|
|
|||
Proceeds from investments
|
748.2
|
|
2,290.7
|
|
—
|
|
|||
Other investing activities
|
(2.0
|
)
|
(2.3
|
)
|
(1.7
|
)
|
|||
Cash Used for Investing Activities
|
(1,649.1
|
)
|
(1,417.7
|
)
|
(864.8
|
)
|
|||
Financing Activities
|
|
|
|
||||||
Long-term debt proceeds
|
.5
|
|
2.4
|
|
386.9
|
|
|||
Payments on long-term debt
|
(418.7
|
)
|
(483.9
|
)
|
(480.4
|
)
|
|||
Net decrease in commercial paper and short-term borrowings
|
(78.5
|
)
|
(798.6
|
)
|
(144.2
|
)
|
|||
Dividends paid to shareholders
|
(897.8
|
)
|
(787.9
|
)
|
(721.2
|
)
|
|||
Proceeds from stock option exercises
|
76.2
|
|
68.4
|
|
141.3
|
|
|||
Other financing activities
|
(41.5
|
)
|
(41.3
|
)
|
(42.6
|
)
|
|||
Cash Used for Financing Activities
|
(1,359.8
|
)
|
(2,040.9
|
)
|
(860.2
|
)
|
|||
Discontinued Operations
|
|
|
|
||||||
Cash (used for) provided by operating activities
|
(12.8
|
)
|
(966.2
|
)
|
401.9
|
|
|||
Cash (used for) provided by investing activities
|
18.6
|
|
3,750.6
|
|
(204.2
|
)
|
|||
Cash provided by financing activities
|
—
|
|
69.5
|
|
555.9
|
|
|||
Cash Provided by Discontinued Operations
|
5.8
|
|
2,853.9
|
|
753.6
|
|
|||
Effect of Exchange Rate Changes on Cash
|
(33.9
|
)
|
13.4
|
|
7.5
|
|
|||
(Decrease) Increase in cash and cash items
|
(482.3
|
)
|
1,942.8
|
|
1,294.9
|
|
|||
Cash and Cash items – Beginning of Year
|
3,273.6
|
|
1,330.8
|
|
206.4
|
|
|||
Cash and Cash Items – End of Period
|
|
$2,791.3
|
|
|
$3,273.6
|
|
|
$1,501.3
|
|
Less: Cash and Cash Items – Discontinued Operations
|
|
$—
|
|
|
$—
|
|
|
$208.1
|
|
Cash and Cash Items – Continuing Operations
|
|
$2,791.3
|
|
|
$3,273.6
|
|
|
$1,293.2
|
|
Year ended 30 September
(Millions of dollars)
|
Common
Stock
|
|
Capital
in Excess
of Par
Value
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury
Stock
|
|
Air Products
Shareholders’
Equity
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
|
||||||||
Balance 30 September 2015
|
|
$249.4
|
|
|
$904.7
|
|
|
$10,580.4
|
|
|
($2,125.9
|
)
|
|
($2,359.6
|
)
|
|
$7,249.0
|
|
|
$132.1
|
|
|
$7,381.1
|
|
Net income
|
—
|
|
—
|
|
631.1
|
|
—
|
|
—
|
|
631.1
|
|
30.4
|
|
661.5
|
|
||||||||
Other comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
(262.4
|
)
|
—
|
|
(262.4
|
)
|
4.8
|
|
(257.6
|
)
|
||||||||
Dividends on common stock (per share $3.39)
|
—
|
|
—
|
|
(733.7
|
)
|
—
|
|
—
|
|
(733.7
|
)
|
—
|
|
(733.7
|
)
|
||||||||
Dividends to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(33.6
|
)
|
(33.6
|
)
|
||||||||
Share-based compensation
|
—
|
|
37.6
|
|
—
|
|
—
|
|
—
|
|
37.6
|
|
—
|
|
37.6
|
|
||||||||
Issuance of treasury shares for stock option and award plans
|
—
|
|
(5.5
|
)
|
—
|
|
—
|
|
132.6
|
|
127.1
|
|
—
|
|
127.1
|
|
||||||||
Tax benefit of stock option and award plans
|
—
|
|
33.2
|
|
—
|
|
—
|
|
—
|
|
33.2
|
|
—
|
|
33.2
|
|
||||||||
Other equity transactions
|
—
|
|
—
|
|
(2.3
|
)
|
—
|
|
—
|
|
(2.3
|
)
|
.1
|
|
(2.2
|
)
|
||||||||
Balance 30 September 2016
|
|
$249.4
|
|
|
$970.0
|
|
|
$10,475.5
|
|
|
($2,388.3
|
)
|
|
($2,227.0
|
)
|
|
$7,079.6
|
|
|
$133.8
|
|
|
$7,213.4
|
|
Net income
|
—
|
|
—
|
|
3,000.4
|
|
—
|
|
—
|
|
3,000.4
|
|
20.8
|
|
3,021.2
|
|
||||||||
Other comprehensive income
|
—
|
|
—
|
|
—
|
|
529.4
|
|
—
|
|
529.4
|
|
3.7
|
|
533.1
|
|
||||||||
Dividends on common stock (per share $3.71)
|
—
|
|
—
|
|
(808.5
|
)
|
—
|
|
—
|
|
(808.5
|
)
|
—
|
|
(808.5
|
)
|
||||||||
Dividends to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(28.0
|
)
|
(28.0
|
)
|
||||||||
Share-based compensation
|
—
|
|
40.7
|
|
—
|
|
—
|
|
—
|
|
40.7
|
|
—
|
|
40.7
|
|
||||||||
Issuance of treasury shares for stock option and award plans
|
—
|
|
(9.6
|
)
|
—
|
|
—
|
|
63.5
|
|
53.9
|
|
—
|
|
53.9
|
|
||||||||
Spin-off of Versum
|
—
|
|
—
|
|
175.0
|
|
11.5
|
|
—
|
|
186.5
|
|
(33.9
|
)
|
152.6
|
|
||||||||
Cumulative change in accounting principle
|
—
|
|
—
|
|
8.8
|
|
—
|
|
—
|
|
8.8
|
|
—
|
|
8.8
|
|
||||||||
Other equity transactions
|
—
|
|
—
|
|
(4.6
|
)
|
—
|
|
—
|
|
(4.6
|
)
|
2.9
|
|
(1.7
|
)
|
||||||||
Balance 30 September 2017
|
|
$249.4
|
|
|
$1,001.1
|
|
|
$12,846.6
|
|
|
($1,847.4
|
)
|
|
($2,163.5
|
)
|
|
$10,086.2
|
|
|
$99.3
|
|
|
$10,185.5
|
|
Net income
|
—
|
|
—
|
|
1,497.8
|
|
—
|
|
—
|
|
1,497.8
|
|
35.1
|
|
1,532.9
|
|
||||||||
Other comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
105.5
|
|
—
|
|
105.5
|
|
(19.0
|
)
|
86.5
|
|
||||||||
Dividends on common stock (per share $4.25)
|
—
|
|
—
|
|
(931.8
|
)
|
—
|
|
—
|
|
(931.8
|
)
|
—
|
|
(931.8
|
)
|
||||||||
Dividends to noncontrolling interests
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
(29.9
|
)
|
(29.9
|
)
|
|||||||||
Share-based compensation
|
—
|
|
38.1
|
|
—
|
|
—
|
|
—
|
|
38.1
|
|
—
|
|
38.1
|
|
||||||||
Issuance of treasury shares for stock option and award plans
|
—
|
|
(11.3
|
)
|
—
|
|
—
|
|
74.3
|
|
63.0
|
|
—
|
|
63.0
|
|
||||||||
Lu'An joint venture
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
227.4
|
|
227.4
|
|
||||||||
Other equity transactions
|
—
|
|
1.4
|
|
(2.7
|
)
|
—
|
|
—
|
|
(1.3
|
)
|
5.9
|
|
4.6
|
|
||||||||
Balance 30 September 2018
|
|
$249.4
|
|
|
$1,029.3
|
|
|
$13,409.9
|
|
|
($1,741.9
|
)
|
|
($2,089.2
|
)
|
|
$10,857.5
|
|
|
$318.8
|
|
|
$11,176.3
|
|
1
|
.
|
|
|
||
2
|
.
|
|
|
||
3
|
.
|
|
|
||
4
|
.
|
|
|
||
5
|
.
|
|
|
||
6
|
.
|
|
|
||
7
|
.
|
|
|
||
8
|
.
|
|
|
||
9
|
.
|
|
|
||
10
|
.
|
|
|
||
11
|
.
|
|
|
||
12
|
.
|
|
|
||
13
|
.
|
|
|
||
14
|
.
|
|
|
||
15
|
.
|
|
|
||
16
|
.
|
|
|
||
17
|
.
|
|
|
||
18
|
.
|
|
|
||
19
|
.
|
|
|
||
20
|
.
|
|
|
||
21
|
.
|
|
|
||
22
|
.
|
|
|
||
23
|
.
|
|
|
||
24
|
.
|
|
|
||
25
|
.
|
|
|
•
|
Changes in the fair value of a derivative that is designated as and meets the cash flow hedge criteria are recorded in accumulated other comprehensive loss (AOCL) to the extent effective and then recognized in earnings when the hedged items affect earnings.
|
•
|
Changes in the fair value of a derivative that is designated as and meets all the required criteria for a fair value hedge, along with the gain or loss on the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings.
|
•
|
Changes in the fair value of a derivative and foreign currency debt that are designated as and meet all the required criteria for a hedge of a net investment are recorded as translation adjustments in AOCL.
|
•
|
Changes in the fair value of a derivative that is not designated as a hedge are recorded immediately in earnings.
|
|
30 September 2018
|
|
New Revenue Standard Adjustments
|
|
1 October 2018
|
|
|||
Assets
|
|
|
|
||||||
Current Assets
|
|
|
|
||||||
Cash and cash items
|
|
$2,791.3
|
|
|
$—
|
|
|
$2,791.3
|
|
Short-term investments
|
184.7
|
|
—
|
|
184.7
|
|
|||
Trade receivables, net
|
1,207.2
|
|
—
|
|
1,207.2
|
|
|||
Inventories
|
396.1
|
|
—
|
|
396.1
|
|
|||
Contracts in progress, less progress billings
|
77.5
|
|
(77.5
|
)
|
—
|
|
|||
Prepaid expenses
|
129.6
|
|
—
|
|
129.6
|
|
|||
Other receivables and current assets
|
295.8
|
|
103.7
|
|
399.5
|
|
|||
Total Current Assets
|
5,082.2
|
|
26.2
|
|
5,108.4
|
|
|||
Total Noncurrent Assets
|
14,096.1
|
|
—
|
|
14,096.1
|
|
|||
Total Assets
|
|
$19,178.3
|
|
|
$26.2
|
|
|
$19,204.5
|
|
Liabilities and Equity
|
|
|
|
||||||
Current Liabilities
|
|
|
|
||||||
Payables and accrued liabilities
|
|
$1,817.8
|
|
|
$26.2
|
|
|
$1,844.0
|
|
Accrued income taxes
|
59.6
|
|
—
|
|
59.6
|
|
|||
Short-term borrowings
|
54.3
|
|
—
|
|
54.3
|
|
|||
Current portion of long-term debt
|
406.6
|
|
—
|
|
406.6
|
|
|||
Total Current Liabilities
|
2,338.3
|
|
26.2
|
|
2,364.5
|
|
|||
Total Noncurrent Liabilities
|
5,663.7
|
|
—
|
|
5,663.7
|
|
|||
Total Liabilities
|
8,002.0
|
|
26.2
|
|
8,028.2
|
|
|||
Total Equity
|
11,176.3
|
|
—
|
|
11,176.3
|
|
|||
Total Liabilities and Equity
|
|
$19,178.3
|
|
|
$26.2
|
|
|
$19,204.5
|
|
|
|
|
Total
|
||||||
|
Performance
|
Energy-from-
|
Discontinued
|
||||||
Year Ended 30 September 2017
|
Materials
|
Waste(A)
|
Operations
|
||||||
Sales
|
|
$254.8
|
|
|
$—
|
|
|
$254.8
|
|
Cost of sales
|
182.3
|
|
13.8
|
|
196.1
|
|
|||
Selling and administrative
|
22.5
|
|
.7
|
|
23.2
|
|
|||
Research and development
|
5.1
|
|
—
|
|
5.1
|
|
|||
Other income (expense), net
|
.3
|
|
(2.0
|
)
|
(1.7
|
)
|
|||
Operating Income (Loss)
|
45.2
|
|
(16.5
|
)
|
28.7
|
|
|||
Equity affiliates’ income
|
.3
|
|
—
|
|
.3
|
|
|||
Income (Loss) Before Taxes
|
45.5
|
|
(16.5
|
)
|
29.0
|
|
|||
Income tax benefit(B)
|
(50.8
|
)
|
(5.7
|
)
|
(56.5
|
)
|
|||
Income (Loss) From Operations of Discontinued Operations, net of tax
|
96.3
|
|
(10.8
|
)
|
85.5
|
|
|||
Gain (Loss) on disposal of business, net of tax(C)
|
1,827.6
|
|
(47.1
|
)
|
1,780.5
|
|
|||
Income (Loss) From Discontinued Operations, net of tax
|
|
$1,923.9
|
|
|
($57.9
|
)
|
|
$1,866.0
|
|
(A)
|
The loss from operations of discontinued operations for EfW primarily relates to costs incurred for ongoing project exit activities, administrative costs, and land lease obligations.
|
(B)
|
As a result of the expected gain on the sale of PMD, we released valuation allowances related to capital loss and net operating loss carryforwards primarily during the first quarter of 2017 that favorably impacted our income tax provision within discontinued operations by approximately $69.
|
(C)
|
After-tax gain on sale of $1,827.6 includes expense for income tax reserves for uncertain tax positions of $28.0 gross ($21.0 net) in various jurisdictions.
|
|
|
|
|
Total
|
||||||||
|
Electronic
|
Performance
|
Energy-from-
|
Discontinued
|
||||||||
Year Ended 30 September 2016
|
Materials
|
Materials
|
Waste(A)
|
Operations
|
||||||||
Sales
|
|
$961.6
|
|
|
$1,059.1
|
|
|
$—
|
|
|
$2,020.7
|
|
Cost of sales
|
521.6
|
|
704.5
|
|
24.6
|
|
1,250.7
|
|
||||
Selling and administrative
|
87.7
|
|
76.6
|
|
2.8
|
|
167.1
|
|
||||
Research and development
|
40.8
|
|
19.6
|
|
.9
|
|
61.3
|
|
||||
Other income (expense), net
|
2.2
|
|
4.2
|
|
(12.7
|
)
|
(6.3
|
)
|
||||
Operating Income (Loss)
|
313.7
|
|
262.6
|
|
(41.0
|
)
|
535.3
|
|
||||
Equity affiliates’ income
|
.2
|
|
1.4
|
|
—
|
|
1.6
|
|
||||
Interest expense
|
.3
|
|
—
|
|
—
|
|
.3
|
|
||||
Income (Loss) Before Taxes(B)
|
313.6
|
|
264.0
|
|
(41.0
|
)
|
536.6
|
|
||||
Income tax provision (benefit)
|
73.4
|
|
80.5
|
|
(3.4
|
)
|
150.5
|
|
||||
Income (Loss) From Operations of Discontinued Operations, net of tax
|
240.2
|
|
183.5
|
|
(37.6
|
)
|
386.1
|
|
||||
Loss on disposal of business, net of tax
|
—
|
|
—
|
|
(846.6
|
)
|
(846.6
|
)
|
||||
Income (Loss) From Discontinued Operations, net of tax
|
240.2
|
|
183.5
|
|
(884.2
|
)
|
(460.5
|
)
|
||||
Net Income Attributable to Noncontrolling Interests of Discontinued Operations
|
7.9
|
|
—
|
|
—
|
|
7.9
|
|
||||
Net Income (Loss) From Discontinued Operations
|
|
$232.3
|
|
|
$183.5
|
|
|
($884.2
|
)
|
|
($468.4
|
)
|
(A)
|
The loss from operations of discontinued operations for EfW primarily relates to project suspension costs, land lease obligations, and administrative costs.
|
(B)
|
In fiscal year 2016, income before taxes from operations of discontinued operations attributable to Air Products was $527.1.
|
|
|
Severance and
Other Benefits
|
|
Asset
Actions/Other
|
|
Total
|
||||||
2016 Charge
|
|
|
$34.5
|
|
|
|
$—
|
|
|
|
$34.5
|
|
Cash expenditures
|
|
(21.6
|
)
|
|
—
|
|
|
(21.6
|
)
|
|||
Amount reflected in pension liability
|
|
(.9
|
)
|
|
—
|
|
|
(.9
|
)
|
|||
Currency translation adjustment
|
|
.3
|
|
|
—
|
|
|
.3
|
|
|||
30 September 2016
|
|
|
$12.3
|
|
|
|
$—
|
|
|
|
$12.3
|
|
2017 Charge
|
|
66.3
|
|
|
88.5
|
|
|
154.8
|
|
|||
Noncash expenses
|
|
—
|
|
|
(84.2
|
)
|
|
(84.2
|
)
|
|||
Cash expenditures
|
|
(35.7
|
)
|
|
(1.2
|
)
|
|
(36.9
|
)
|
|||
Amount reflected in pension liability
|
|
(2.0
|
)
|
|
—
|
|
|
(2.0
|
)
|
|||
Amount reflected in other noncurrent liabilities
|
|
—
|
|
|
(2.2
|
)
|
|
(2.2
|
)
|
|||
Currency translation adjustment
|
|
(.3
|
)
|
|
—
|
|
|
(.3
|
)
|
|||
30 September 2017
|
|
|
$40.6
|
|
|
|
$.9
|
|
|
|
$41.5
|
|
Cash expenditures
|
|
(30.3
|
)
|
|
(.9
|
)
|
|
(31.2
|
)
|
|||
Amount reflected in pension liability
|
|
(.4
|
)
|
|
—
|
|
|
(.4
|
)
|
|||
30 September 2018
|
|
|
$9.9
|
|
|
|
$—
|
|
|
|
$9.9
|
|
30 September
|
|
2018
|
|
|
2017
|
|
||
Finished goods
|
|
|
$125.4
|
|
|
|
$120.0
|
|
Work in process
|
|
21.2
|
|
|
15.7
|
|
||
Raw materials, supplies and other
|
|
249.5
|
|
|
223.0
|
|
||
Total FIFO Cost
|
|
396.1
|
|
|
358.7
|
|
||
Less: Excess of FIFO cost over LIFO cost
|
|
—
|
|
|
(23.3
|
)
|
||
Inventories
|
|
|
$396.1
|
|
|
|
$335.4
|
|
Abdullah Hashim Industrial Gases & Equipment Co., Ltd. (25%);
|
|
INOX Air Products Limited (50%);
|
Air Products South Africa (Proprietary) Limited (50%);
|
|
Jazan Gas Projects Company (25%);
|
Bangkok Cogeneration Company Limited (49%);
|
|
Kulim Industrial Gases Sdn. Bhd. (50%);
|
Bangkok Industrial Gases Co., Ltd. (49%);
|
|
Sapio Produzione Idrogeno Ossigeno S.r.l. (49%);
|
Chengdu Air & Gas Products Ltd. (50%);
|
|
Tecnologia en Nitrogeno S. de R.L. de C.V. (50%);
|
Helios S.p.A. (49%);
|
|
Tyczka Industrie-Gases GmbH (50%);
|
High-Tech Gases (Beijing) Co., Ltd. (50%);
|
|
WuXi Hi-Tech Gas Co., Ltd. (50%);
|
INFRA Group (40%);
|
|
and principally, other industrial gas producers.
|
30 September
|
|
|
|
2018
|
|
|
2017
|
|
||||
Current assets
|
|
|
|
|
$1,556.9
|
|
|
|
$1,333.2
|
|
||
Noncurrent assets
|
|
|
|
4,340.8
|
|
|
4,026.9
|
|
||||
Current liabilities
|
|
|
|
635.7
|
|
|
666.8
|
|
||||
Noncurrent liabilities
|
|
|
|
2,652.5
|
|
|
2,194.3
|
|
||||
|
|
|
|
|
|
|
||||||
Year Ended 30 September
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Net sales
|
|
|
$2,663.1
|
|
|
|
$2,343.3
|
|
|
|
$2,271.6
|
|
Sales less cost of sales
|
|
1,050.6
|
|
|
878.6
|
|
|
871.5
|
|
|||
Operating income
|
|
635.3
|
|
|
509.5
|
|
|
482.1
|
|
|||
Net income
|
|
388.0
|
|
|
343.5
|
|
|
334.1
|
|
30 September
|
|
Useful Life
in years
|
|
2018
|
|
|
2017
|
|
||||
Land
|
|
|
|
|
|
|
$269.4
|
|
|
|
$231.0
|
|
Buildings
|
|
|
|
30
|
|
988.6
|
|
|
977.8
|
|
||
Production facilities(A)
|
|
10
|
to
|
20
|
|
15,082.8
|
|
|
13,577.1
|
|
||
Distribution and other machinery and equipment(B)
|
|
5
|
to
|
25
|
|
4,400.9
|
|
|
3,944.0
|
|
||
Construction in progress
|
|
|
|
|
|
748.5
|
|
|
817.9
|
|
||
Plant and equipment, at cost
|
|
|
|
|
|
21,490.2
|
|
|
19,547.8
|
|
||
Less: Accumulated depreciation
|
|
|
|
|
|
11,566.5
|
|
|
11,107.6
|
|
||
Plant and equipment, net
|
|
|
|
|
|
|
$9,923.7
|
|
|
|
$8,440.2
|
|
(A)
|
Depreciable lives of production facilities related to long-term customer supply contracts are matched to the contract lives.
|
(B)
|
The depreciable lives for various types of distribution equipment are 10 to 25 years for cylinders, depending on the nature and properties of the product; 20 years for tanks; 7.5 years for customer stations; and 5 to 15 years for tractors and trailers.
|
|
Industrial
Gases–
Americas
|
Industrial
Gases–
EMEA
|
Industrial
Gases–
Asia
|
Industrial
Gases–
Global
|
Corporate and other
|
Total
|
||||||||||||
Goodwill, net at 30 September 2016
|
|
$309.1
|
|
|
$380.6
|
|
|
$135.2
|
|
|
$20.2
|
|
|
$—
|
|
|
$845.1
|
|
Impairment loss
|
(145.3
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(145.3
|
)
|
||||||
Acquisitions
|
—
|
|
3.5
|
|
—
|
|
—
|
|
—
|
|
3.5
|
|
||||||
Currency translation
|
(.1
|
)
|
18.3
|
|
—
|
|
—
|
|
—
|
|
18.2
|
|
||||||
Goodwill, net at 30 September 2017
|
|
$163.7
|
|
|
$402.4
|
|
|
$135.2
|
|
|
$20.2
|
|
|
$—
|
|
|
$721.5
|
|
Acquisitions
|
—
|
|
29.5
|
|
38.1
|
|
—
|
|
10.4
|
|
78.0
|
|
||||||
Currency translation
|
(1.6
|
)
|
(7.5
|
)
|
(1.4
|
)
|
(.1
|
)
|
—
|
|
(10.6
|
)
|
||||||
Goodwill, net at 30 September 2018
|
|
$162.1
|
|
|
$424.4
|
|
|
$171.9
|
|
|
$20.1
|
|
|
$10.4
|
|
|
$788.9
|
|
30 September
|
2018
|
|
2017
|
|
2016
|
|
|||
Goodwill, gross
|
|
$1,194.7
|
|
|
$1,138.7
|
|
|
$1,103.7
|
|
Accumulated impairment losses(A)
|
(405.8
|
)
|
(417.2
|
)
|
(258.6
|
)
|
|||
Goodwill, net
|
|
$788.9
|
|
|
$721.5
|
|
|
$845.1
|
|
(A)
|
Accumulated impairment losses include the impacts of currency translation. These losses are attributable to our Latin America reporting unit (LASA) within the Industrial Gases – Americas segment.
|
|
|
30 September 2018
|
|
30 September 2017
|
||||||||||||||||||||
|
|
Gross
|
|
|
Accumulated
Amortization/
Impairment
|
|
|
Net
|
|
|
Gross
|
|
|
Accumulated
Amortization/
Impairment
|
|
|
Net
|
|
||||||
Customer relationships
|
|
|
$491.9
|
|
|
|
($165.5
|
)
|
|
|
$326.4
|
|
|
|
$424.1
|
|
|
|
($142.3
|
)
|
|
|
$281.8
|
|
Patents and technology
|
|
34.0
|
|
|
(11.9
|
)
|
|
22.1
|
|
|
13.4
|
|
|
(10.6
|
)
|
|
2.8
|
|
||||||
Other
|
|
72.6
|
|
|
(33.8
|
)
|
|
38.8
|
|
|
73.4
|
|
|
(36.6
|
)
|
|
36.8
|
|
||||||
Total finite-lived intangibles
|
|
598.5
|
|
|
(211.2
|
)
|
|
387.3
|
|
|
510.9
|
|
|
(189.5
|
)
|
|
321.4
|
|
||||||
Trade names and trademarks, indefinite-lived
|
|
64.8
|
|
|
(13.6
|
)
|
|
51.2
|
|
|
67.8
|
|
|
(20.9
|
)
|
|
46.9
|
|
||||||
Total Intangible Assets
|
|
|
$663.3
|
|
|
|
($224.8
|
)
|
|
|
$438.5
|
|
|
|
$578.7
|
|
|
|
($210.4
|
)
|
|
|
$368.3
|
|
2019
|
|
$32.7
|
|
2020
|
32.4
|
|
|
2021
|
30.5
|
|
|
2022
|
27.8
|
|
|
2023
|
27.3
|
|
|
Thereafter
|
236.6
|
|
|
Total
|
|
$387.3
|
|
|
|
Capital
Leases
|
|
Operating
Leases
|
||||
2019
|
|
|
$1.7
|
|
|
|
$65.9
|
|
2020
|
|
1.4
|
|
|
50.4
|
|
||
2021
|
|
2.9
|
|
|
41.4
|
|
||
2022
|
|
1.3
|
|
|
30.4
|
|
||
2023
|
|
1.2
|
|
|
23.3
|
|
||
Thereafter
|
|
14.3
|
|
|
123.0
|
|
||
Total
|
|
|
$22.8
|
|
|
|
$334.4
|
|
2019
|
|
$261.5
|
|
|
2020
|
259.1
|
|
|
|
2021
|
255.8
|
|
|
|
2022
|
251.5
|
|
|
|
2023
|
244.9
|
|
|
|
Thereafter
|
2,904.8
|
|
|
|
Total
|
|
$4,177.6
|
|
|
30 September
|
|
2018
|
|
|
2017
|
|
||
Gross minimum lease payments receivable
|
|
|
$1,673.7
|
|
|
|
$1,897.0
|
|
Unearned interest income
|
|
(568.3
|
)
|
|
(671.9
|
)
|
||
Lease Receivables, net
|
|
|
$1,105.4
|
|
|
|
$1,225.1
|
|
2019
|
|
$172.5
|
|
2020
|
167.8
|
|
|
2021
|
161.9
|
|
|
2022
|
150.6
|
|
|
2023
|
144.3
|
|
|
Thereafter
|
876.6
|
|
|
Total
|
|
$1,673.7
|
|
|
|
30 September 2018
|
|
30 September 2017
|
||||||||
|
|
US$
Notional
|
|
|
Years
Average
Maturity
|
|
US$
Notional
|
|
|
Years
Average
Maturity
|
||
Forward Exchange Contracts
|
|
|
|
|
|
|
|
|
||||
Cash flow hedges
|
|
|
$2,489.1
|
|
|
0.4
|
|
|
$3,150.2
|
|
|
0.4
|
Net investment hedges
|
|
457.5
|
|
|
1.7
|
|
675.5
|
|
|
3.0
|
||
Not designated
|
|
1,736.1
|
|
|
0.8
|
|
273.8
|
|
|
0.1
|
||
Total Forward Exchange Contracts
|
|
|
$4,682.7
|
|
|
0.7
|
|
|
$4,099.5
|
|
|
0.8
|
|
|
30 September 2018
|
|
30 September 2017
|
||||||||||||||||||||
|
|
US$
Notional
|
|
|
Average Pay %
|
|
|
Average
Receive
%
|
|
|
Years
Average
Maturity
|
|
US$
Notional
|
|
|
Average Pay %
|
|
|
Average
Receive
%
|
|
|
Years
Average
Maturity
|
||
Interest rate swaps (fair value hedge)
|
|
|
$600.0
|
|
|
LIBOR
|
|
|
2.60
|
%
|
|
1.6
|
|
|
$600.0
|
|
|
LIBOR
|
|
|
2.28
|
%
|
|
1.3
|
Cross currency interest rate swaps (net investment hedge)
|
|
|
$201.7
|
|
|
4.42
|
%
|
|
2.97
|
%
|
|
3.1
|
|
|
$539.7
|
|
|
3.27
|
%
|
|
2.59
|
%
|
|
1.9
|
Cross currency interest rate swaps (cash flow hedge)
|
|
|
$1,052.7
|
|
|
4.99
|
%
|
|
2.89
|
%
|
|
2.3
|
|
|
$1,095.7
|
|
|
4.96
|
%
|
|
2.78
|
%
|
|
2.4
|
Cross currency interest rate swaps (not designated)
|
|
|
$80.2
|
|
|
4.88
|
%
|
|
3.43
|
%
|
|
3.9
|
|
|
$41.6
|
|
|
3.28
|
%
|
|
2.32
|
%
|
|
1.7
|
|
|
Balance Sheet
|
|
30 September
|
|
Balance Sheet
|
|
30 September
|
||||||||||||
|
|
Location
|
|
2018
|
|
|
2017
|
|
|
Location
|
|
2018
|
|
|
2017
|
|
||||
Derivatives Designated as Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Forward exchange contracts
|
|
Other receivables
|
|
|
$24.9
|
|
|
|
$81.7
|
|
|
Accrued liabilities
|
|
|
$37.0
|
|
|
|
$82.0
|
|
Interest rate management contracts
|
|
Other receivables
|
|
24.3
|
|
|
11.1
|
|
|
Accrued liabilities
|
|
2.3
|
|
|
10.7
|
|
||||
Forward exchange contracts
|
|
Other noncurrent assets
|
|
19.8
|
|
|
27.1
|
|
|
Other noncurrent
liabilities
|
|
4.6
|
|
|
13.8
|
|
||||
Interest rate management contracts
|
|
Other noncurrent assets
|
|
48.7
|
|
|
102.6
|
|
|
Other noncurrent
liabilities |
|
11.6
|
|
|
22.2
|
|
||||
Total Derivatives Designated as Hedging Instruments
|
|
|
|
|
$117.7
|
|
|
|
$222.5
|
|
|
|
|
|
$55.5
|
|
|
|
$128.7
|
|
Derivatives Not Designated as Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Forward exchange contracts
|
|
Other receivables
|
|
7.9
|
|
|
1.1
|
|
|
Accrued liabilities
|
|
|
$14.9
|
|
|
|
$2.2
|
|
||
Interest rate management contracts
|
|
Other receivables
|
|
4.0
|
|
|
—
|
|
|
Accrued liabilities
|
|
—
|
|
|
1.0
|
|
||||
Forward exchange contracts
|
|
Other noncurrent assets
|
|
16.2
|
|
|
—
|
|
|
Other noncurrent liabilities
|
|
23.7
|
|
|
—
|
|
||||
Interest rate management contracts
|
|
Other noncurrent assets
|
|
.3
|
|
|
4.2
|
|
|
Other noncurrent
liabilities |
|
—
|
|
|
—
|
|
||||
Total Derivatives Not Designated as Hedging Instruments
|
|
|
|
|
$28.4
|
|
|
|
$5.3
|
|
|
|
|
|
$38.6
|
|
|
|
$3.2
|
|
Total Derivatives
|
|
|
|
|
$146.1
|
|
|
|
$227.8
|
|
|
|
|
|
$94.1
|
|
|
|
$131.9
|
|
|
|
Year Ended 30 September
|
||||||||||||||||||||||||||||||
|
|
Forward
Exchange Contracts
|
|
Foreign
Currency
Debt
|
|
Other(A)
|
|
Total
|
||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||
Cash Flow Hedges, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net gain (loss) recognized in OCI (effective portion)
|
|
|
$2.4
|
|
|
|
$.3
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$43.5
|
|
|
|
($12.9
|
)
|
|
|
$45.9
|
|
|
|
($12.6
|
)
|
Net (gain) loss reclassified from OCI to sales/cost of sales (effective portion)
|
|
7.1
|
|
|
18.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.1
|
|
|
18.3
|
|
||||||||
Net (gain) loss reclassified from OCI to other income (expense), net (effective portion)
|
|
(7.8
|
)
|
|
(3.8
|
)
|
|
—
|
|
|
—
|
|
|
(33.8
|
)
|
|
10.5
|
|
|
(41.6
|
)
|
|
6.7
|
|
||||||||
Net (gain) loss reclassified from OCI to interest expense (effective portion)
|
|
1.2
|
|
|
(2.1
|
)
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|
2.9
|
|
|
5.1
|
|
|
.8
|
|
||||||||
Net (gain) loss reclassified from OCI to other income (expense), net (ineffective portion)
|
|
(.5
|
)
|
|
(1.6
|
)
|
|
—
|
|
|
—
|
|
|
(.5
|
)
|
|
—
|
|
|
(1.0
|
)
|
|
(1.6
|
)
|
||||||||
Fair Value Hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net gain (loss) recognized in interest expense(B)
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
($10.1
|
)
|
|
|
($14.7
|
)
|
|
|
($10.1
|
)
|
|
|
($14.7
|
)
|
Net Investment Hedges, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net gain (loss) recognized in OCI
|
|
|
($.6
|
)
|
|
|
($11.1
|
)
|
|
|
$10.2
|
|
|
|
($32.8
|
)
|
|
|
$11.0
|
|
|
|
($15.6
|
)
|
|
|
$20.6
|
|
|
|
($59.5
|
)
|
Derivatives Not Designated as Hedging Instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net gain (loss) recognized in other income (expense), net(C)
|
|
|
($4.0
|
)
|
|
|
$4.1
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
($.8
|
)
|
|
|
($2.4
|
)
|
|
|
($4.8
|
)
|
|
|
$1.7
|
|
(A)
|
Other includes the impact on other comprehensive income (OCI) and earnings primarily related to interest rate and cross currency interest rate swaps.
|
(B)
|
The impact of fair value hedges noted above was largely offset by recognized gains and losses resulting from the impact of changes in related interest rates on outstanding debt.
|
(C)
|
The impact of the non-designated hedges noted above was largely offset by recognized gains and losses resulting from the impact of changes in exchange rates on assets and liabilities denominated in nonfunctional currencies.
|
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).
|
|
|
30 September 2018
|
|
30 September 2017
|
||||||||||||
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
|
||||||||
Forward exchange contracts
|
|
|
$68.8
|
|
|
|
$68.8
|
|
|
|
$109.9
|
|
|
|
$109.9
|
|
Interest rate management contracts
|
|
77.3
|
|
|
77.3
|
|
|
117.9
|
|
|
117.9
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
|
|
|
|
|
|
|
||||||||
Forward exchange contracts
|
|
|
$80.2
|
|
|
|
$80.2
|
|
|
|
$98.0
|
|
|
|
$98.0
|
|
Interest rate management contracts
|
|
13.9
|
|
|
13.9
|
|
|
33.9
|
|
|
33.9
|
|
||||
Long-term debt, including current portion
|
|
3,758.3
|
|
|
3,788.2
|
|
|
3,818.8
|
|
|
3,928.2
|
|
|
|
30 September 2018
|
|
30 September 2017
|
||||||||||||||||||||||||||||
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||
Assets at Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Forward exchange contracts
|
|
|
$68.8
|
|
|
|
$—
|
|
|
|
$68.8
|
|
|
|
$—
|
|
|
|
$109.9
|
|
|
|
$—
|
|
|
|
$109.9
|
|
|
|
$—
|
|
Interest rate management contracts
|
|
77.3
|
|
|
—
|
|
|
77.3
|
|
|
—
|
|
|
117.9
|
|
|
—
|
|
|
117.9
|
|
|
—
|
|
||||||||
Total Assets at Fair Value
|
|
|
$146.1
|
|
|
|
$—
|
|
|
|
$146.1
|
|
|
|
$—
|
|
|
|
$227.8
|
|
|
|
$—
|
|
|
|
$227.8
|
|
|
|
$—
|
|
Liabilities at Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Forward exchange contracts
|
|
|
$80.2
|
|
|
|
$—
|
|
|
|
$80.2
|
|
|
|
$—
|
|
|
|
$98.0
|
|
|
|
$—
|
|
|
|
$98.0
|
|
|
|
$—
|
|
Interest rate management contracts
|
|
13.9
|
|
|
—
|
|
|
13.9
|
|
|
—
|
|
|
33.9
|
|
|
—
|
|
|
33.9
|
|
|
—
|
|
||||||||
Total Liabilities at Fair Value
|
|
|
$94.1
|
|
|
|
$—
|
|
|
|
$94.1
|
|
|
|
$—
|
|
|
|
$131.9
|
|
|
|
$—
|
|
|
|
$131.9
|
|
|
|
$—
|
|
|
30 June 2017
|
2017 Loss
|
||||||||||||||
|
Total
|
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||
Investment in Equity Affiliate(A)
|
|
$68.5
|
|
|
|
$—
|
|
|
$—
|
|
|
$68.5
|
|
|
$79.5
|
|
(A)
|
In fiscal year 2017, we assessed the recoverability of the carrying value of our equity investment in AHG. We estimated the fair value of our investment using weighting of the results of the income and market approaches. An impairment loss was recognized for the difference between the carrying amount and the fair value of the investment as of 30 June 2017. There have been no events during fiscal year 2018 requiring reassessment of our investment. For additional information, see Note 8, Summarized Financial Information of Equity Affiliates.
|
30 September
|
|
2018
|
|
|
2017
|
|
||
Short-term borrowings
|
|
|
$54.3
|
|
|
|
$144.0
|
|
Current portion of long-term debt
|
|
406.6
|
|
|
416.4
|
|
||
Long-term debt
|
|
2,967.4
|
|
|
3,402.4
|
|
||
Long-term debt – related party(A)
|
|
384.3
|
|
|
—
|
|
||
Total Debt
|
|
|
$3,812.6
|
|
|
|
$3,962.8
|
|
(A)
|
Refer to Note 6, Acquisitions, for additional information regarding related party debt.
|
30 September
|
|
Fiscal Year
Maturities
|
|
2018
|
|
|
2017
|
|
||
Payable in U.S. Dollars
|
|
|
|
|
|
|
||||
Debentures
|
|
|
|
|
|
|
||||
8.75%
|
|
2021
|
|
|
$18.4
|
|
|
|
$18.4
|
|
Medium-term Notes (weighted average rate)
|
|
|
|
|
|
|
||||
Series E 7.6%
|
|
2026
|
|
17.2
|
|
|
17.2
|
|
||
Senior Notes
|
|
|
|
|
|
|
||||
Note 1.2%
|
|
2018
|
|
—
|
|
|
400.0
|
|
||
Note 4.375%
|
|
2019
|
|
400.0
|
|
|
400.0
|
|
||
Note 3.0%
|
|
2022
|
|
400.0
|
|
|
400.0
|
|
||
Note 2.75%
|
|
2023
|
|
400.0
|
|
|
400.0
|
|
||
Note 3.35%
|
|
2024
|
|
400.0
|
|
|
400.0
|
|
||
Other (weighted average rate)
|
|
|
|
|
|
|
||||
Variable-rate industrial revenue bonds 1.51%
|
|
2035 to 2050
|
|
631.9
|
|
|
631.9
|
|
||
Other .25%
|
|
2019 to 2022
|
|
.9
|
|
|
10.9
|
|
||
Payable in Other Currencies
|
|
|
|
|
|
|
||||
Eurobonds 2.0%
|
|
2020
|
|
348.1
|
|
|
354.4
|
|
||
Eurobonds .375%
|
|
2021
|
|
406.2
|
|
|
413.5
|
|
||
Eurobonds 1.0%
|
|
2025
|
|
348.1
|
|
|
354.4
|
|
||
Other 4.3%
|
|
2019 to 2023
|
|
8.0
|
|
|
25.8
|
|
||
Related Party(A)
|
|
|
|
|
|
|
||||
Chinese Renminbi 5.5%
|
|
2020 to 2026
|
|
384.3
|
|
|
—
|
|
||
Capital Lease Obligations
|
|
|
|
|
|
|
||||
United States 5.0%
|
|
2018
|
|
—
|
|
|
.2
|
|
||
Foreign 10.4%
|
|
2019 to 2036
|
|
10.5
|
|
|
10.6
|
|
||
Total Principal Amount
|
|
|
|
3,773.6
|
|
|
3,837.3
|
|
||
Less: Unamortized discount and debt issuance costs
|
|
|
|
(15.3
|
)
|
|
(18.5
|
)
|
||
Total Long-term Debt
|
|
|
|
3,758.3
|
|
|
3,818.8
|
|
||
Less: Current portion of long-term debt
|
|
|
|
(406.6
|
)
|
|
(416.4
|
)
|
||
Less: Long-term debt – related party
|
|
|
|
(384.3
|
)
|
|
—
|
|
||
Long-term Debt
|
|
|
|
|
$2,967.4
|
|
|
|
$3,402.4
|
|
(A)
|
Refer to Note 6, Acquisitions, for additional information regarding related party debt.
|
2019
|
|
$406.6
|
|
2020
|
380.9
|
|
|
2021
|
473.9
|
|
|
2022
|
448.3
|
|
|
2023
|
448.8
|
|
|
Thereafter
|
1,615.1
|
|
|
Total
|
|
$3,773.6
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
U.S.
|
|
International
|
|
|
U.S.
|
|
International
|
|
|
U.S.
|
|
International
|
|
||||||
Service cost
|
|
$25.5
|
|
|
$25.5
|
|
|
|
$29.0
|
|
|
$25.9
|
|
|
|
$36.5
|
|
|
$24.3
|
|
Interest cost
|
107.2
|
|
37.3
|
|
|
107.5
|
|
32.2
|
|
|
110.7
|
|
44.3
|
|
||||||
Expected return on plan assets
|
(201.6
|
)
|
(81.7
|
)
|
|
(207.7
|
)
|
(75.2
|
)
|
|
(202.0
|
)
|
(78.3
|
)
|
||||||
Amortization
|
|
|
|
|
|
|
|
|
||||||||||||
Net actuarial loss
|
87.4
|
|
40.2
|
|
|
88.7
|
|
54.7
|
|
|
85.3
|
|
35.6
|
|
||||||
Prior service cost (credit)
|
1.6
|
|
—
|
|
|
2.3
|
|
(.1
|
)
|
|
2.8
|
|
(.2
|
)
|
||||||
Settlements
|
45.0
|
|
3.5
|
|
|
10.5
|
|
1.7
|
|
|
5.1
|
|
1.3
|
|
||||||
Curtailments
|
—
|
|
—
|
|
|
4.3
|
|
(1.3
|
)
|
|
—
|
|
(1.1
|
)
|
||||||
Special termination benefits
|
.4
|
|
—
|
|
|
2.8
|
|
.4
|
|
|
2.0
|
|
—
|
|
||||||
Other
|
—
|
|
1.5
|
|
|
—
|
|
1.1
|
|
|
(.3
|
)
|
2.1
|
|
||||||
Net Periodic Benefit Cost – Total
|
|
$65.5
|
|
|
$26.3
|
|
|
|
$37.4
|
|
|
$39.4
|
|
|
|
$40.1
|
|
|
$28.0
|
|
Less: Discontinued Operations
|
—
|
|
—
|
|
|
(.7
|
)
|
(4.1
|
)
|
|
(7.9
|
)
|
(4.4
|
)
|
||||||
Net Periodic Benefit Cost – Continuing Operations
|
|
$65.5
|
|
|
$26.3
|
|
|
|
$36.7
|
|
|
$35.3
|
|
|
|
$32.2
|
|
|
$23.6
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||||
|
U.S.
|
|
International
|
|
|
U.S.
|
|
International
|
|
|
U.S.
|
|
International
|
|
Discount rate – Service cost
|
3.9
|
%
|
2.6
|
%
|
|
3.6
|
%
|
2.1
|
%
|
|
4.5
|
%
|
3.4
|
%
|
Discount rate – Interest cost
|
3.3
|
%
|
2.2
|
%
|
|
3.0
|
%
|
1.8
|
%
|
|
3.6
|
%
|
2.9
|
%
|
Expected return on plan assets
|
7.5
|
%
|
5.8
|
%
|
|
8.0
|
%
|
6.1
|
%
|
|
8.0
|
%
|
6.3
|
%
|
Rate of compensation increase
|
3.5
|
%
|
3.6
|
%
|
|
3.5
|
%
|
3.5
|
%
|
|
3.5
|
%
|
3.5
|
%
|
|
|
2018
|
|
2017
|
||||||||
|
|
U.S.
|
|
|
International
|
|
|
U.S.
|
|
|
International
|
|
Discount rate
|
|
4.3
|
%
|
|
2.5
|
%
|
|
3.8
|
%
|
|
2.4
|
%
|
Rate of compensation increase
|
|
3.5
|
%
|
|
3.5
|
%
|
|
3.5
|
%
|
|
3.6
|
%
|
|
|
2018
|
|
2017
|
||||||||||||
|
|
U.S.
|
|
|
International
|
|
|
U.S.
|
|
|
International
|
|
||||
Change in Projected Benefit Obligation
|
|
|
|
|
|
|
|
|
||||||||
Obligation at beginning of year
|
|
|
$3,357.7
|
|
|
|
$1,749.5
|
|
|
|
$3,477.7
|
|
|
|
$1,849.6
|
|
Service cost
|
|
25.5
|
|
|
25.5
|
|
|
29.0
|
|
|
25.9
|
|
||||
Interest cost
|
|
107.2
|
|
|
37.3
|
|
|
107.5
|
|
|
32.2
|
|
||||
Amendments
|
|
.1
|
|
|
.7
|
|
|
1.9
|
|
|
—
|
|
||||
Actuarial gain
|
|
(217.8
|
)
|
|
(33.9
|
)
|
|
(68.0
|
)
|
|
(132.4
|
)
|
||||
Divestitures
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34.1
|
)
|
||||
Curtailments
|
|
—
|
|
|
—
|
|
|
(17.3
|
)
|
|
(4.2
|
)
|
||||
Settlements
|
|
(193.0
|
)
|
|
(24.6
|
)
|
|
7.0
|
|
|
—
|
|
||||
Special termination benefits
|
|
.4
|
|
|
—
|
|
|
2.8
|
|
|
—
|
|
||||
Participant contributions
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
1.4
|
|
||||
Benefits paid
|
|
(157.3
|
)
|
|
(51.3
|
)
|
|
(182.9
|
)
|
|
(46.5
|
)
|
||||
Currency translation/other
|
|
—
|
|
|
(44.1
|
)
|
|
—
|
|
|
57.6
|
|
||||
Obligation at End of Year
|
|
|
$2,922.8
|
|
|
|
$1,660.5
|
|
|
|
$3,357.7
|
|
|
|
$1,749.5
|
|
|
|
2018
|
|
2017
|
||||||||||||
|
|
U.S.
|
|
|
International
|
|
|
U.S.
|
|
|
International
|
|
||||
Change in Plan Assets
|
|
|
|
|
|
|
|
|
||||||||
Fair value at beginning of year
|
|
|
$2,869.2
|
|
|
|
$1,540.0
|
|
|
|
$2,705.3
|
|
|
|
$1,411.1
|
|
Actual return on plan assets
|
|
150.2
|
|
|
115.5
|
|
|
319.6
|
|
|
87.9
|
|
||||
Company contributions
|
|
14.6
|
|
|
53.7
|
|
|
27.2
|
|
|
42.2
|
|
||||
Participant contributions
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
1.4
|
|
||||
Divestitures
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.0
|
)
|
||||
Benefits paid
|
|
(157.3
|
)
|
|
(51.3
|
)
|
|
(182.9
|
)
|
|
(46.5
|
)
|
||||
Settlements
|
|
(191.8
|
)
|
|
(24.6
|
)
|
|
—
|
|
|
(5.3
|
)
|
||||
Currency translation/other
|
|
—
|
|
|
(46.5
|
)
|
|
—
|
|
|
52.2
|
|
||||
Fair Value at End of Year
|
|
|
$2,684.9
|
|
|
|
$1,588.2
|
|
|
|
$2,869.2
|
|
|
|
$1,540.0
|
|
Funded Status at End of Year
|
|
|
($237.9
|
)
|
|
|
($72.3
|
)
|
|
|
($488.5
|
)
|
|
|
($209.5
|
)
|
Amounts Recognized
|
|
|
|
|
|
|
|
|
||||||||
Noncurrent assets
|
|
|
$28.2
|
|
|
|
$103.5
|
|
|
|
$5.3
|
|
|
|
$13.1
|
|
Accrued liabilities
|
|
23.5
|
|
|
1.2
|
|
|
12.6
|
|
|
—
|
|
||||
Noncurrent liabilities
|
|
242.6
|
|
|
174.6
|
|
|
481.2
|
|
|
222.6
|
|
||||
Net Liability Recognized
|
|
|
$237.9
|
|
|
|
$72.3
|
|
|
|
$488.5
|
|
|
|
$209.5
|
|
|
|
2018
|
|
2017
|
||||||||||||
|
|
U.S.
|
|
|
International
|
|
|
U.S.
|
|
|
International
|
|
||||
Net actuarial gain arising during the period
|
|
|
($167.7
|
)
|
|
|
($64.6
|
)
|
|
|
($189.8
|
)
|
|
|
($162.0
|
)
|
Amortization of net actuarial loss
|
|
(132.4
|
)
|
|
(43.7
|
)
|
|
(103.3
|
)
|
|
(55.7
|
)
|
||||
Prior service cost arising during the period
|
|
.1
|
|
|
.7
|
|
|
1.9
|
|
|
—
|
|
||||
Amortization of prior service cost
|
|
(1.6
|
)
|
|
—
|
|
|
(2.3
|
)
|
|
.1
|
|
||||
Total
|
|
|
($301.6
|
)
|
|
|
($107.6
|
)
|
|
|
($293.5
|
)
|
|
|
($217.6
|
)
|
|
|
2018
|
|
2017
|
||||||||||||
|
|
U.S.
|
|
|
International
|
|
|
U.S.
|
|
|
International
|
|
||||
Net actuarial loss
|
|
|
$680.4
|
|
|
|
$443.6
|
|
|
|
$980.5
|
|
|
|
$551.9
|
|
Prior service cost (credit)
|
|
6.6
|
|
|
(1.1
|
)
|
|
8.1
|
|
|
(1.8
|
)
|
||||
Net transition liability
|
|
—
|
|
|
.4
|
|
|
—
|
|
|
.4
|
|
||||
Total
|
|
|
$687.0
|
|
|
|
$442.9
|
|
|
|
$988.6
|
|
|
|
$550.5
|
|
|
|
U.S.
|
|
|
International
|
|
||
Net actuarial loss
|
|
|
$65.1
|
|
|
|
$11.2
|
|
Prior service cost (credit)
|
|
1.0
|
|
|
(.2
|
)
|
|
30 September 2018
|
|
30 September 2017
|
||||||||||
|
U.S.
|
|
International
|
|
|
U.S.
|
|
International
|
|
||||
Pension Plans with PBO in Excess of Plan Assets:
|
|
|
|
|
|
||||||||
PBO
|
|
$2,733.6
|
|
|
$452.6
|
|
|
|
$3,116.7
|
|
|
$465.7
|
|
Fair value of plan assets
|
2,467.5
|
|
276.8
|
|
|
2,623.0
|
|
243.1
|
|
||||
Pension Plans with ABO in Excess of Plan Assets:
|
|
|
|
|
|
||||||||
ABO
|
|
$2,608.6
|
|
|
$357.9
|
|
|
|
$2,951.0
|
|
|
$365.6
|
|
Fair value of plan assets
|
2,467.5
|
|
228.2
|
|
|
2,623.0
|
|
197.1
|
|
|
|
2018 Target Allocation
|
|
2018 Actual Allocation
|
|
2017 Actual Allocation
|
||||||||||||||
|
|
U.S.
|
|
International
|
|
U.S.
|
|
|
International
|
|
|
U.S.
|
|
|
International
|
|
||||
Asset Category
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity securities
|
|
38
|
-
|
48%
|
|
40
|
-
|
49%
|
|
41
|
%
|
|
46
|
%
|
|
58
|
%
|
|
53
|
%
|
Debt securities
|
|
44
|
-
|
54%
|
|
50
|
-
|
60%
|
|
50
|
%
|
|
53
|
%
|
|
34
|
%
|
|
46
|
%
|
Real estate/other
|
|
—
|
-
|
10%
|
|
—
|
-
|
—%
|
|
8
|
%
|
|
—
|
%
|
|
7
|
%
|
|
1
|
%
|
Cash
|
|
|
|
—%
|
|
|
|
—%
|
|
1
|
%
|
|
1
|
%
|
|
1
|
%
|
|
—
|
%
|
Total
|
|
|
|
|
|
|
|
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
30 September 2018
|
|
30 September 2017
|
||||||||||||||||||||||
|
Total
|
Level 1
|
Level 2
|
Level 3
|
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||
U.S. Qualified Pension Plans
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash and cash equivalents
|
|
$13.8
|
|
|
$13.8
|
|
|
$—
|
|
|
$—
|
|
|
|
$13.6
|
|
|
$13.6
|
|
|
$—
|
|
|
$—
|
|
Equity securities
|
397.9
|
|
397.9
|
|
—
|
|
—
|
|
|
598.6
|
|
598.6
|
|
—
|
|
—
|
|
||||||||
Equity mutual funds
|
173.8
|
|
173.8
|
|
—
|
|
—
|
|
|
276.5
|
|
276.5
|
|
—
|
|
—
|
|
||||||||
Equity pooled funds
|
545.2
|
|
—
|
|
545.2
|
|
—
|
|
|
787.0
|
|
—
|
|
787.0
|
|
—
|
|
||||||||
Fixed income:
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Bonds (government
and corporate)
|
1,344.6
|
|
—
|
|
1,344.6
|
|
—
|
|
|
985.7
|
|
—
|
|
985.7
|
|
—
|
|
||||||||
Total U.S. Qualified Pension Plans at Fair Value
|
|
$2,475.3
|
|
|
$585.5
|
|
|
$1,889.8
|
|
|
$—
|
|
|
|
$2,661.4
|
|
|
$888.7
|
|
|
$1,772.7
|
|
|
$—
|
|
Real estate pooled funds(A)
|
|
$209.6
|
|
|
|
|
|
|
$207.8
|
|
|
|
|
||||||||||||
Total U.S. Qualified Pension Plans
|
|
$2,684.9
|
|
|
|
|
|
|
|
|
$2,869.2
|
|
|
|
|
|
|
||||||||
International Pension Plans
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash and cash equivalents
|
|
$15.8
|
|
|
$15.8
|
|
|
$—
|
|
|
$—
|
|
|
|
$7.3
|
|
|
$7.3
|
|
|
$—
|
|
|
$—
|
|
Equity pooled funds
|
727.9
|
|
—
|
|
727.9
|
|
—
|
|
|
821.4
|
|
—
|
|
821.4
|
|
—
|
|
||||||||
Fixed income pooled funds
|
615.2
|
|
—
|
|
615.2
|
|
—
|
|
|
651.3
|
|
—
|
|
651.3
|
|
—
|
|
||||||||
Other pooled funds
|
11.6
|
|
—
|
|
11.6
|
|
—
|
|
|
18.6
|
|
—
|
|
10.8
|
|
7.8
|
|
||||||||
Insurance contracts
|
217.7
|
|
—
|
|
—
|
|
217.7
|
|
|
41.4
|
|
—
|
|
—
|
|
41.4
|
|
||||||||
Total International Pension Plans
|
|
$1,588.2
|
|
|
$15.8
|
|
|
$1,354.7
|
|
|
$217.7
|
|
|
|
$1,540.0
|
|
|
$7.3
|
|
|
$1,483.5
|
|
|
$49.2
|
|
(A)
|
Real estate pooled funds consist of funds that invest in properties. Interests in these funds are valued using the net asset value ("NAV") per share practical expedient and are not classified in the fair value hierarchy. During fiscal year 2018, we identified that these investments were improperly included in the fair value hierarchy table of our 2017 Form 10-K. Accordingly, we have updated the prior period to conform with the appropriate current year presentation.
|
|
|
Other
Pooled Funds
|
|
|
Insurance
Contracts
|
|
|
Total
|
|
|||
30 September 2016
|
|
|
$7.3
|
|
|
|
$45.8
|
|
|
|
$53.1
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
||||||
Assets held at end of year
|
|
1.2
|
|
|
(1.0
|
)
|
|
.2
|
|
|||
Assets sold during the period
|
|
.3
|
|
|
—
|
|
|
.3
|
|
|||
Purchases, sales, and settlements, net
|
|
(1.0
|
)
|
|
(3.4
|
)
|
|
(4.4
|
)
|
|||
30 September 2017
|
|
|
$7.8
|
|
|
|
$41.4
|
|
|
|
$49.2
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
||||||
Assets held at end of year
|
|
—
|
|
|
.9
|
|
|
.9
|
|
|||
Assets sold during the period
|
|
.5
|
|
|
—
|
|
|
.5
|
|
|||
Purchases, sales, and settlements, net
|
|
(8.3
|
)
|
|
175.4
|
|
|
167.1
|
|
|||
30 September 2018
|
|
|
$—
|
|
|
|
$217.7
|
|
|
|
$217.7
|
|
|
|
U.S.
|
|
|
International
|
|
||
2019
|
|
|
$165.5
|
|
|
|
$52.8
|
|
2020
|
|
152.4
|
|
|
53.9
|
|
||
2021
|
|
157.0
|
|
|
55.6
|
|
||
2022
|
|
163.7
|
|
|
56.0
|
|
||
2023
|
|
167.9
|
|
|
60.6
|
|
||
2024-2028
|
|
900.2
|
|
|
336.8
|
|
Balance at 30 September 2016
|
|
$119.9
|
|
Additional accruals
|
22.7
|
|
|
Liabilities settled
|
(4.1
|
)
|
|
Accretion expense
|
5.8
|
|
|
Currency translation adjustment
|
.4
|
|
|
Balance at 30 September 2017
|
|
$144.7
|
|
Additional accruals
|
43.8
|
|
|
Liabilities settled
|
(2.6
|
)
|
|
Accretion expense
|
7.2
|
|
|
Currency translation adjustment
|
(2.7
|
)
|
|
Balance at 30 September 2018
|
|
$190.4
|
|
2019
|
|
$851
|
|
2020
|
362
|
|
|
2021
|
342
|
|
|
2022
|
318
|
|
|
2023
|
326
|
|
|
Thereafter
|
5,461
|
|
|
Total
|
|
$7,660
|
|
Year ended 30 September
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
Number of Common Shares Outstanding
|
|
|
|
|
|
|
|||
Balance, beginning of year
|
|
218,346,074
|
|
|
217,350,825
|
|
|
215,359,113
|
|
Issuance of treasury shares for stock option and award plans
|
|
1,169,171
|
|
|
995,249
|
|
|
1,991,712
|
|
Balance, end of year
|
|
219,515,245
|
|
|
218,346,074
|
|
|
217,350,825
|
|
|
2018
|
|
2017
|
|
2016
|
|
|||
Before-Tax Share-Based Compensation Cost – Total
|
|
$38.8
|
|
|
$40.7
|
|
|
$37.6
|
|
Before-Tax Share-Based Compensation Cost – Discontinued Operations
|
—
|
|
.8
|
|
6.6
|
|
|||
Before-Tax Share-Based Compensation Cost – Continuing Operations
|
|
$38.8
|
|
|
$39.9
|
|
|
$31.0
|
|
Income tax benefit – Continuing Operations
|
(9.1
|
)
|
(14.0
|
)
|
(10.8
|
)
|
|||
After-Tax Share-Based Compensation Cost – Continuing Operations
|
|
$29.7
|
|
|
$25.9
|
|
|
$20.2
|
|
|
2018
|
|
2017
|
|
2016
|
|
|||
Deferred stock units
|
|
$38.3
|
|
|
$34.5
|
|
|
$29.9
|
|
Stock options
|
.2
|
|
1.4
|
|
4.2
|
|
|||
Restricted stock
|
.3
|
|
4.8
|
|
3.5
|
|
|||
Before-Tax Share-Based Compensation Cost – Total
|
|
$38.8
|
|
|
$40.7
|
|
|
$37.6
|
|
|
|
2018
|
|
2017
|
2016
|
|||
Expected volatility
|
|
18.7
|
%
|
|
20.6
|
%
|
20.5
|
%
|
Risk-free interest rate
|
|
1.9
|
%
|
|
1.4
|
%
|
1.2
|
%
|
Expected dividend yield
|
|
2.6
|
%
|
|
2.5
|
%
|
2.2
|
%
|
Deferred Stock Units
|
|
Shares (000)
|
|
|
Weighted Average
Grant-Date Fair Value
|
|
|
Outstanding at 30 September 2017
|
|
975
|
|
|
|
$127.29
|
|
Granted
|
|
249
|
|
|
179.21
|
|
|
Paid out
|
|
(237
|
)
|
|
134.99
|
|
|
Forfeited/adjustments
|
|
(47
|
)
|
|
153.57
|
|
|
Outstanding at 30 September 2018
|
|
940
|
|
|
|
$137.78
|
|
Stock Options
|
|
Shares (000)
|
|
|
Weighted Average
Exercise Price
|
|
|
Outstanding at 30 September 2017
|
|
3,202
|
|
|
|
$84.85
|
|
Exercised
|
|
(1,015
|
)
|
|
75.15
|
|
|
Forfeited
|
|
(1
|
)
|
|
124.76
|
|
|
Outstanding and Exercisable at 30 September 2018
|
|
2,186
|
|
|
|
$89.33
|
|
Stock Options
|
|
Weighted Average Remaining Contractual Term (in years)
|
|
Aggregate Intrinsic Value
|
|
|
Outstanding and Exercisable at 30 September 2018
|
|
3.9
|
|
|
$170
|
|
Restricted Stock
|
|
Shares (000)
|
|
|
Weighted Average
Grant-Date Fair Value
|
|
|
Outstanding at 30 September 2017
|
|
56
|
|
|
|
$135.74
|
|
Vested
|
|
(14
|
)
|
|
121.90
|
|
|
Outstanding at 30 September 2018
|
|
42
|
|
|
|
$140.28
|
|
|
|
Derivatives
qualifying
as hedges
|
|
Foreign
currency
translation
adjustments
|
|
Pension and
postretirement
benefits
|
|
Total
|
||||||||
Balance at 30 September 2015
|
|
|
($42.9
|
)
|
|
|
($956.5
|
)
|
|
|
($1,126.5
|
)
|
|
|
($2,125.9
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
13.7
|
|
|
9.9
|
|
|
(335.1
|
)
|
|
(311.5
|
)
|
||||
Amounts reclassified from AOCL
|
|
(36.0
|
)
|
|
2.7
|
|
|
87.2
|
|
|
53.9
|
|
||||
Net current period other comprehensive income (loss)
|
|
|
($22.3
|
)
|
|
|
$12.6
|
|
|
|
($247.9
|
)
|
|
|
($257.6
|
)
|
Amount attributable to noncontrolling interest
|
|
(.2
|
)
|
|
5.4
|
|
|
(.4
|
)
|
|
4.8
|
|
||||
Balance at 30 September 2016
|
|
|
($65.0
|
)
|
|
|
($949.3
|
)
|
|
|
($1,374.0
|
)
|
|
|
($2,388.3
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(12.6
|
)
|
|
101.9
|
|
|
251.6
|
|
|
340.9
|
|
||||
Amounts reclassified from AOCL
|
|
24.2
|
|
|
57.3
|
|
|
110.7
|
|
|
192.2
|
|
||||
Net current period other comprehensive income
|
|
|
$11.6
|
|
|
|
$159.2
|
|
|
|
$362.3
|
|
|
|
$533.1
|
|
Spin-off of Versum
|
|
.2
|
|
|
6.0
|
|
|
5.3
|
|
|
11.5
|
|
||||
Amount attributable to noncontrolling interest
|
|
(.1
|
)
|
|
3.0
|
|
|
.8
|
|
|
3.7
|
|
||||
Balance at 30 September 2017
|
|
|
($53.1
|
)
|
|
|
($787.1
|
)
|
|
|
($1,007.2
|
)
|
|
|
($1,847.4
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
45.9
|
|
|
(244.6
|
)
|
|
179.4
|
|
|
(19.3
|
)
|
||||
Amounts reclassified from AOCL
|
|
(30.4
|
)
|
|
3.1
|
|
|
133.1
|
|
|
105.8
|
|
||||
Net current period other comprehensive income (loss)
|
|
|
$15.5
|
|
|
|
($241.5
|
)
|
|
|
$312.5
|
|
|
|
$86.5
|
|
Amount attributable to noncontrolling interest
|
|
—
|
|
|
(18.8
|
)
|
|
(.2
|
)
|
|
(19.0
|
)
|
||||
Balance at 30 September 2018
|
|
|
($37.6
|
)
|
|
|
($1,009.8
|
)
|
|
|
($694.5
|
)
|
|
|
($1,741.9
|
)
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
(Gain) Loss on Cash Flow Hedges, net of tax
|
|
|
|
|
|
|
||||||
Sales/Cost of sales
|
|
|
$7.1
|
|
|
|
$18.3
|
|
|
|
$.2
|
|
Other income (expense), net
|
|
(42.6
|
)
|
|
5.1
|
|
|
(46.2
|
)
|
|||
Interest expense
|
|
5.1
|
|
|
.8
|
|
|
10.0
|
|
|||
Total (Gain) Loss on Cash Flow Hedges, net of tax
|
|
|
($30.4
|
)
|
|
|
$24.2
|
|
|
|
($36.0
|
)
|
|
|
|
|
|
|
|
||||||
Currency Translation Adjustment
|
|
|
|
|
|
|
||||||
Cost of sales(A)
|
|
|
$3.1
|
|
|
|
$—
|
|
|
|
$—
|
|
Cost reduction and assets actions(B)
|
|
—
|
|
|
8.2
|
|
|
—
|
|
|||
Loss from discontinued operations, net of tax(C)
|
|
—
|
|
|
49.1
|
|
|
2.7
|
|
|||
Total Currency Translation Adjustment
|
|
|
$3.1
|
|
|
|
$57.3
|
|
|
|
$2.7
|
|
|
|
|
|
|
|
|
||||||
Pension and Postretirement Benefits, net of tax(D)
|
|
|
$133.1
|
|
|
|
$110.7
|
|
|
|
$87.2
|
|
(A)
|
The fiscal year 2018 impact relates to an equipment sale resulting from the termination of a contract in the Industrial Gases – Asia segment during the first quarter.
|
(B)
|
The fiscal year 2017 impact relates to the planned sale of a non-industrial gas hardgoods business in the Industrial Gases – Americas segment recorded in the third quarter.
|
(C)
|
The fiscal year 2017 impact relates to the sale of PMD during the second quarter. The fiscal year 2016 impact primarily relates to the sale of an equity affiliate in the first quarter.
|
(D)
|
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 16, Retirement Benefits, for additional information.
|
30 September
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Numerator
|
|
|
|
|
|
|
||||||
Income from continuing operations
|
|
|
$1,455.6
|
|
|
|
$1,134.4
|
|
|
|
$1,099.5
|
|
Income (Loss) from discontinued operations
|
|
42.2
|
|
|
1,866.0
|
|
|
(468.4
|
)
|
|||
Net Income Attributable to Air Products
|
|
|
$1,497.8
|
|
|
|
$3,000.4
|
|
|
|
$631.1
|
|
Denominator (in millions)
|
|
|
|
|
|
|
||||||
Weighted average common shares — Basic
|
|
219.3
|
|
|
218.0
|
|
|
216.4
|
|
|||
Effect of dilutive securities
|
|
|
|
|
|
|
||||||
Employee stock option and other award plans
|
|
1.5
|
|
|
1.8
|
|
|
1.9
|
|
|||
Weighted average common shares — Diluted
|
|
220.8
|
|
|
219.8
|
|
|
218.3
|
|
|||
Basic EPS Attributable to Air Products
|
|
|
|
|
|
|
||||||
Income from continuing operations
|
|
|
$6.64
|
|
|
|
$5.20
|
|
|
|
$5.08
|
|
Income (Loss) from discontinued operations
|
|
.19
|
|
|
8.56
|
|
|
(2.16
|
)
|
|||
Net Income Attributable to Air Products
|
|
|
$6.83
|
|
|
|
$13.76
|
|
|
|
$2.92
|
|
Diluted EPS Attributable to Air Products
|
|
|
|
|
|
|
||||||
Income from continuing operations
|
|
|
$6.59
|
|
|
|
$5.16
|
|
|
|
$5.04
|
|
Income (Loss) from discontinued operations
|
|
.19
|
|
|
8.49
|
|
|
(2.15
|
)
|
|||
Net Income Attributable to Air Products
|
|
|
$6.78
|
|
|
|
$13.65
|
|
|
|
$2.89
|
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Income from Continuing Operations before Taxes
|
|
|
|
|
|
|
||||||
United States
|
|
|
$688.5
|
|
|
|
$669.8
|
|
|
|
$631.7
|
|
Foreign
|
|
1,151.7
|
|
|
666.2
|
|
|
775.9
|
|
|||
Income from equity affiliates
|
|
174.8
|
|
|
80.1
|
|
|
147.0
|
|
|||
Total
|
|
|
$2,015.0
|
|
|
|
$1,416.1
|
|
|
|
$1,554.6
|
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Current Tax Provision
|
|
|
|
|
|
|
||||||
Federal
|
|
|
$305.1
|
|
|
|
$62.8
|
|
|
|
$171.0
|
|
State
|
|
17.7
|
|
|
7.0
|
|
|
21.2
|
|
|||
Foreign
|
|
256.9
|
|
|
229.1
|
|
|
178.6
|
|
|||
|
|
579.7
|
|
|
298.9
|
|
|
370.8
|
|
|||
Deferred Tax Provision
|
|
|
|
|
|
|
||||||
Federal
|
|
(121.7
|
)
|
|
1.4
|
|
|
45.0
|
|
|||
State
|
|
12.5
|
|
|
6.0
|
|
|
2.8
|
|
|||
Foreign
|
|
53.8
|
|
|
(45.4
|
)
|
|
14.0
|
|
|||
|
|
(55.4
|
)
|
|
(38.0
|
)
|
|
61.8
|
|
|||
Income Tax Provision
|
|
|
$524.3
|
|
|
|
$260.9
|
|
|
|
$432.6
|
|
(Percent of income before taxes)
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
U.S. federal statutory tax rate
|
|
24.5
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State taxes, net of federal benefit
|
|
1.0
|
|
|
1.0
|
|
|
1.2
|
|
Income from equity affiliates
|
|
(2.1
|
)
|
|
(2.0
|
)
|
|
(3.3
|
)
|
Foreign tax differentials
|
|
(1.0
|
)
|
|
(7.9
|
)
|
|
(6.6
|
)
|
Tax on foreign repatriated earnings
|
|
(.4
|
)
|
|
(2.2
|
)
|
|
(3.1
|
)
|
Domestic production activities
|
|
(.4
|
)
|
|
(.8
|
)
|
|
(.8
|
)
|
Share-based compensation
|
|
(1.0
|
)
|
|
(1.2
|
)
|
|
—
|
|
Tax reform repatriation
|
|
19.5
|
|
|
—
|
|
|
—
|
|
Tax reform rate change and other
|
|
(11.1
|
)
|
|
—
|
|
|
—
|
|
Tax restructuring benefit
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
Non-deductible goodwill impairment charge
|
|
—
|
|
|
3.6
|
|
|
—
|
|
Non-U.S. subsidiary tax election
|
|
—
|
|
|
(7.7
|
)
|
|
—
|
|
Business separation costs
|
|
—
|
|
|
.2
|
|
|
4.2
|
|
Other
|
|
(1.2
|
)
|
|
.4
|
|
|
1.2
|
|
Effective Tax Rate
|
|
26.0
|
%
|
|
18.4
|
%
|
|
27.8
|
%
|
30 September
|
|
2018
|
|
|
2017
|
|
||
Gross Deferred Tax Assets
|
|
|
|
|
||||
Retirement benefits and compensation accruals
|
|
|
$153.1
|
|
|
|
$370.1
|
|
Tax loss carryforwards
|
|
143.5
|
|
|
64.5
|
|
||
Tax credits and other tax carryforwards
|
|
17.1
|
|
|
76.1
|
|
||
Reserves and accruals
|
|
42.5
|
|
|
88.2
|
|
||
Currency losses
|
|
3.8
|
|
|
20.7
|
|
||
Other
|
|
45.4
|
|
|
37.2
|
|
||
Valuation allowance
|
|
(105.0
|
)
|
|
(107.7
|
)
|
||
Deferred Tax Assets
|
|
300.4
|
|
|
549.1
|
|
||
Gross Deferred Tax Liabilities
|
|
|
|
|
||||
Plant and equipment
|
|
811.8
|
|
|
1,035.6
|
|
||
Unremitted earnings of foreign entities
|
|
36.1
|
|
|
20.9
|
|
||
Partnership and other investments
|
|
16.3
|
|
|
5.4
|
|
||
Intangible assets
|
|
84.3
|
|
|
81.9
|
|
||
Other
|
|
5.6
|
|
|
9.2
|
|
||
Deferred Tax Liabilities
|
|
954.1
|
|
|
1,153.0
|
|
||
Net Deferred Income Tax Liability
|
|
|
$653.7
|
|
|
|
$603.9
|
|
|
|
2018
|
|
|
2017
|
|
||
Deferred Tax Assets
|
|
|
|
|
||||
Other noncurrent assets
|
|
|
$121.4
|
|
|
|
$174.5
|
|
Deferred Tax Liabilities
|
|
|
|
|
||||
Deferred income taxes
|
|
775.1
|
|
|
778.4
|
|
||
Net Deferred Income Tax Liability
|
|
|
$653.7
|
|
|
|
$603.9
|
|
Jurisdiction
|
|
Gross Tax Asset
|
|
|
Expiration Period
|
|
U.S. State
|
|
|
$1.9
|
|
|
2019 - 2034
|
Foreign
|
|
21.6
|
|
|
2019 - 2030; Indefinite
|
Jurisdiction
|
|
Gross Loss Carryforward
|
|
|
Expiration Period
|
|
U.S. State Net Operating Loss
|
|
|
$324.9
|
|
|
2019 - 2034
|
Foreign Net Operating Loss
|
|
340.6
|
|
|
2019 - 2028; Indefinite
|
|
Foreign Capital Loss
|
|
281.9
|
|
|
Indefinite
|
Unrecognized Tax Benefits
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|||
Balance at beginning of year
|
|
|
$146.4
|
|
|
|
$90.2
|
|
|
|
$83.8
|
|
Additions for tax positions of the current year
|
|
26.4
|
|
|
47.5
|
|
|
12.5
|
|
|||
Additions for tax positions of prior years
|
|
119.2
|
|
|
16.1
|
|
|
2.9
|
|
|||
Reductions for tax positions of prior years
|
|
(41.3
|
)
|
|
(4.0
|
)
|
|
—
|
|
|||
Settlements
|
|
(14.2
|
)
|
|
(2.0
|
)
|
|
(5.6
|
)
|
|||
Statute of limitations expiration
|
|
(2.6
|
)
|
|
(3.2
|
)
|
|
(2.9
|
)
|
|||
Foreign currency translation
|
|
(.3
|
)
|
|
1.8
|
|
|
(.5
|
)
|
|||
Balance at End of Year
|
|
|
$233.6
|
|
|
|
$146.4
|
|
|
|
$90.2
|
|
Major Tax Jurisdiction
|
Open Tax Years
|
||
North America
|
|
|
|
United States – Federal
|
2015
|
-
|
2018
|
United States – All States
|
2011
|
-
|
2018
|
Canada
|
2014
|
-
|
2018
|
Europe
|
|
|
|
France
|
2015
|
-
|
2018
|
Germany
|
2013
|
-
|
2018
|
Netherlands
|
2012
|
-
|
2018
|
Spain
|
2015
|
-
|
2018
|
United Kingdom
|
2014
|
-
|
2018
|
Asia
|
|
|
|
China
|
2013
|
-
|
2018
|
South Korea
|
2010
|
-
|
2018
|
Taiwan
|
2013
|
-
|
2018
|
Latin America
|
|
|
|
Chile
|
2015
|
-
|
2018
|
Other Receivables and Current Assets
30 September
|
2018
|
|
2017
|
|
||
Derivative instruments
|
|
$61.1
|
|
|
$93.9
|
|
Other receivables
|
139.0
|
|
188.0
|
|
||
Current capital lease receivables
|
92.1
|
|
93.3
|
|
||
Other
|
3.6
|
|
28.1
|
|
||
Other receivables and current assets
|
|
$295.8
|
|
|
$403.3
|
|
Other Noncurrent Assets
30 September
|
2018
|
|
2017
|
|
||
Derivative instruments
|
|
$85.0
|
|
|
$133.9
|
|
Noncurrent customer receivable
|
92.4
|
|
62.6
|
|
||
Prepaid tax
|
13.2
|
|
5.1
|
|
||
Deferred tax assets
|
121.4
|
|
174.5
|
|
||
Pension benefits
|
131.7
|
|
18.4
|
|
||
Deposits
|
—
|
|
34.8
|
|
||
Other
|
210.8
|
|
212.5
|
|
||
Other noncurrent assets
|
|
$654.5
|
|
|
$641.8
|
|
Payables and Accrued Liabilities
30 September
|
2018
|
|
2017
|
|
||
Trade creditors
|
|
$594.6
|
|
|
$659.5
|
|
Payables associated with Lu'An
|
330.0
|
|
—
|
|
||
Customer advances
|
156.6
|
|
438.9
|
|
||
Accrued payroll and employee benefits
|
201.4
|
|
187.1
|
|
||
Pension and postretirement benefits
|
34.1
|
|
22.6
|
|
||
Dividends payable
|
241.5
|
|
207.5
|
|
||
Outstanding payments in excess of certain cash balances
|
9.1
|
|
4.5
|
|
||
Accrued interest expense
|
49.5
|
|
42.2
|
|
||
Derivative instruments
|
54.2
|
|
95.9
|
|
||
Severance and other costs associated with cost reduction actions
|
9.9
|
|
41.5
|
|
||
Other
|
136.9
|
|
114.6
|
|
||
Payables and accrued liabilities
|
|
$1,817.8
|
|
|
$1,814.3
|
|
Other Noncurrent Liabilities
30 September
|
2018
|
|
2017
|
|
||
Pension benefits
|
|
$417.2
|
|
|
$703.8
|
|
Postretirement benefits
|
47.0
|
|
57.0
|
|
||
Other employee benefits
|
94.4
|
|
99.3
|
|
||
Noncurrent customer liability
|
92.4
|
|
62.6
|
|
||
Long-term accrued income taxes related to U.S. tax reform
|
184.4
|
|
—
|
|
||
Contingencies related to uncertain tax positions
|
113.2
|
|
130.6
|
|
||
Advance payments
|
58.2
|
|
39.0
|
|
||
Environmental liabilities
|
64.6
|
|
72.3
|
|
||
Derivative instruments
|
39.9
|
|
36.0
|
|
||
Asset retirement obligations
|
189.5
|
|
144.0
|
|
||
Obligation for future contribution to an equity affiliate
|
94.4
|
|
94.4
|
|
||
Obligations associated with EfW
|
63.3
|
|
65.3
|
|
||
Other
|
78.4
|
|
107.6
|
|
||
Other noncurrent liabilities
|
|
$1,536.9
|
|
|
$1,611.9
|
|
Other Income (Expense), Net
30 September
|
2018
|
|
2017
|
|
2016
|
|
|||
Technology and royalty income(A)
|
|
$22.8
|
|
|
$20.8
|
|
|
$19.0
|
|
Interest income(B)
|
—
|
|
1.5
|
|
6.1
|
|
|||
Foreign exchange
|
(3.9
|
)
|
4.3
|
|
(7.2
|
)
|
|||
Sale of assets and investments(C)
|
6.9
|
|
24.3
|
|
8.8
|
|
|||
Contract settlements
|
2.9
|
|
14.3
|
|
12.6
|
|
|||
Transition service agreements reimbursement(D)
|
12.7
|
|
38.4
|
|
—
|
|
|||
Other
|
8.8
|
|
17.4
|
|
10.1
|
|
|||
Other income (expense), net
|
|
$50.2
|
|
|
$121.0
|
|
|
$49.4
|
|
(A)
|
Primarily includes related party activity with our equity affiliates.
|
(B)
|
Beginning in the second quarter of fiscal year 2017, interest income associated with our cash and cash items and short-term investments is reflected on the consolidated income statements in "Other non-operating income (expense), net."
|
(C)
|
Includes a gain of $12.2 resulting from the sale of a parcel of land during the fourth quarter of fiscal year 2017.
|
(D)
|
Reflects reimbursement for costs in support of transition services agreements with Versum for EMD and with Evonik for PMD. Refer to Note 4, Materials Technologies Separation, for additional information.
|
Other Non-Operating Income (Expense), Net
30 September
|
2018
|
|
2017
|
|
2016
|
|
|||
Interest income(A)
|
|
$46.3
|
|
|
$29.8
|
|
|
$—
|
|
Pension settlement loss(B)
|
(48.5
|
)
|
(10.5
|
)
|
(5.1
|
)
|
|||
Other non-service pension benefit (costs)
|
7.7
|
|
(1.9
|
)
|
(.3
|
)
|
|||
Other
|
(.4
|
)
|
(.8
|
)
|
—
|
|
|||
Other non-operating income (expense), net
|
|
$5.1
|
|
|
$16.6
|
|
|
($5.4
|
)
|
(A)
|
Prior to the second quarter of fiscal year 2017, interest income associated with our cash and cash items and short-term investments was reflected on the consolidated income statements in "Other income (expense), net."
|
(B)
|
Fiscal year 2018 includes a loss of $43.7 that primarily resulted from the transfer of certain pension payment obligations to an insurer through the purchase of an irrevocable, nonparticipating group annuity contract during the fourth quarter.
|
2018
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
||||||||||
Sales
|
|
$2,216.6
|
|
|
|
$2,155.7
|
|
|
|
$2,259.0
|
|
|
|
$2,298.9
|
|
|
|
$8,930.2
|
|
|
Gross profit
|
644.8
|
|
|
649.2
|
|
|
713.6
|
|
|
733.1
|
|
|
2,740.7
|
|
|
|||||
Operating income
|
460.7
|
|
|
455.4
|
|
|
515.8
|
|
|
533.7
|
|
|
1,965.6
|
|
|
|||||
Equity affiliates income
|
13.8
|
|
(A)
|
43.7
|
|
|
58.1
|
|
|
59.2
|
|
(A)
|
174.8
|
|
(A)
|
|||||
Income tax provision
|
291.8
|
|
(A)
|
56.2
|
|
(B)
|
107.1
|
|
|
69.2
|
|
(A)(B)
|
524.3
|
|
(A)(B)
|
|||||
Net income
|
161.7
|
|
|
423.6
|
|
|
487.9
|
|
|
459.7
|
|
|
1,532.9
|
|
|
|||||
Net income attributable to Air Products
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
155.6
|
|
|
416.4
|
|
|
430.7
|
|
|
452.9
|
|
|
1,455.6
|
|
|
|||||
Income (Loss) from discontinued operations
|
(1.0
|
)
|
|
—
|
|
|
43.2
|
|
(C)
|
—
|
|
|
42.2
|
|
(C)
|
|||||
Net income attributable to Air Products
|
154.6
|
|
|
416.4
|
|
|
473.9
|
|
|
452.9
|
|
|
1,497.8
|
|
|
|||||
Basic Earnings Per Common Share Attributable to Air Products
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
.71
|
|
|
1.90
|
|
|
1.96
|
|
|
2.06
|
|
|
6.64
|
|
|
|||||
Income from discontinued operations
|
—
|
|
|
—
|
|
|
.20
|
|
|
—
|
|
|
.19
|
|
|
|||||
Net income attributable to Air Products
|
.71
|
|
|
1.90
|
|
|
2.16
|
|
|
2.06
|
|
|
6.83
|
|
|
|||||
Diluted Earnings Per Common Share Attributable to Air Products
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
.70
|
|
|
1.89
|
|
|
1.95
|
|
|
2.05
|
|
|
6.59
|
|
|
|||||
Income from discontinued operations
|
—
|
|
|
—
|
|
|
.20
|
|
|
—
|
|
|
.19
|
|
|
|||||
Net income attributable to Air Products
|
.70
|
|
|
1.89
|
|
|
2.15
|
|
|
2.05
|
|
|
6.78
|
|
|
|||||
Weighted Average Common Shares — Diluted (in millions)
|
220.4
|
|
|
220.8
|
|
|
220.9
|
|
|
220.9
|
|
|
220.8
|
|
|
|||||
Dividends declared per common share
|
.95
|
|
|
1.10
|
|
|
1.10
|
|
|
1.10
|
|
|
4.25
|
|
|
|||||
Market price per common share – High
|
164.78
|
|
|
175.17
|
|
|
170.29
|
|
|
171.66
|
|
|
|
|
||||||
Market price per common share – Low
|
150.55
|
|
|
152.71
|
|
|
154.67
|
|
|
153.02
|
|
|
|
|
2017
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Total
|
|
||||||||||
Sales
|
|
$1,882.5
|
|
|
|
$1,980.1
|
|
|
|
$2,121.9
|
|
|
|
$2,203.1
|
|
|
|
$8,187.6
|
|
|
Gross profit
|
565.8
|
|
|
576.3
|
|
|
635.9
|
|
|
658.1
|
|
|
2,436.1
|
|
|
|||||
Business separation costs(D)
|
32.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32.5
|
|
|
|||||
Cost reduction and assets actions(E)
|
50.0
|
|
|
10.3
|
|
|
42.7
|
|
|
48.4
|
|
|
151.4
|
|
|
|||||
Goodwill and intangible asset impairment charge(F)
|
—
|
|
|
—
|
|
|
162.1
|
|
|
—
|
|
|
162.1
|
|
|
|||||
Gain on land sale
|
—
|
|
|
—
|
|
|
—
|
|
|
12.2
|
|
|
12.2
|
|
|
|||||
Operating income
|
328.3
|
|
|
395.6
|
|
|
258.7
|
|
|
457.4
|
|
|
1,440.0
|
|
|
|||||
Equity affiliates income (loss)
|
38.0
|
|
|
34.2
|
|
|
(36.9
|
)
|
(G)
|
44.8
|
|
|
80.1
|
|
(G)
|
|||||
Income tax provision (benefit)
|
78.4
|
|
|
94.5
|
|
|
89.3
|
|
|
(1.3
|
)
|
(H)
|
260.9
|
|
(H)
|
|||||
Net income
|
306.4
|
|
|
2,135.7
|
|
(I)
|
104.1
|
|
|
475.0
|
|
|
3,021.2
|
|
(I)
|
|||||
Net income attributable to Air Products
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
251.6
|
|
|
304.4
|
|
|
104.2
|
|
|
474.2
|
|
|
1,134.4
|
|
|
|||||
Income (Loss) from discontinued operations
|
48.2
|
|
|
1,825.6
|
|
(I)
|
(2.3
|
)
|
|
(5.5
|
)
|
|
1,866.0
|
|
(I)
|
|||||
Net income attributable to Air Products
|
299.8
|
|
|
2,130.0
|
|
|
101.9
|
|
|
468.7
|
|
|
3,000.4
|
|
|
|||||
Basic Earnings Per Common Share Attributable to Air Products
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
1.16
|
|
|
1.40
|
|
|
.48
|
|
|
2.17
|
|
|
5.20
|
|
|
|||||
Income (Loss) from discontinued operations
|
.22
|
|
|
8.38
|
|
|
(.01
|
)
|
|
(.02
|
)
|
|
8.56
|
|
|
|||||
Net income attributable to Air Products
|
1.38
|
|
|
9.78
|
|
|
.47
|
|
|
2.15
|
|
|
13.76
|
|
|
|||||
Diluted Earnings Per Common Share Attributable to Air Products
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations
|
1.15
|
|
|
1.39
|
|
|
.47
|
|
|
2.15
|
|
|
5.16
|
|
|
|||||
Income (Loss) from discontinued operations
|
.22
|
|
|
8.31
|
|
|
(.01
|
)
|
|
(.02
|
)
|
|
8.49
|
|
|
|||||
Net income attributable to Air Products
|
1.37
|
|
|
9.70
|
|
|
.46
|
|
|
2.13
|
|
|
13.65
|
|
|
|||||
Weighted Average Common Shares — Diluted (in millions)
|
219.7
|
|
|
219.7
|
|
|
219.8
|
|
|
220.1
|
|
|
219.8
|
|
|
|||||
Dividends declared per common share
|
.86
|
|
|
.95
|
|
|
.95
|
|
|
.95
|
|
|
3.71
|
|
|
|||||
Market price per common share – High
|
150.45
|
|
|
149.46
|
|
|
147.66
|
|
|
152.26
|
|
|
|
|
||||||
Market price per common share – Low
|
129.00
|
|
|
133.63
|
|
|
134.09
|
|
|
141.88
|
|
|
|
|
(A)
|
Includes the impacts of the Tax Act. For additional information, refer to Note 22, Income Taxes.
|
(B)
|
Includes the impacts of the restructuring of several foreign subsidiaries. For additional information, refer to Note 22, Income Taxes.
|
(C)
|
Primarily includes benefits resulting from the resolution of uncertain tax positions related to the disposition of our former European Homecare business and post-closing adjustments associated with the sale of PMD. For additional information, refer to Note 3, Discontinued Operations.
|
(D)
|
For additional information, refer to Note 4, Materials Technologies Separation.
|
(E)
|
For additional information, refer to Note 5, Cost Reduction and Asset Actions.
|
(F)
|
For additional information, refer to Note 10, Goodwill, and Note 11, Intangible Assets.
|
(G)
|
Includes the impact of an other-than-temporary impairment of an investment in an equity affiliate. For additional information, refer to Note 8, Summarized Financial Information of Equity Affiliates.
|
(H)
|
Includes the impact of a tax election benefit related to a non-U.S. subsidiary. For additional information, see Note 22, Income Taxes.
|
(I)
|
Includes the after-tax gain on the sale of PMD. For additional information, see Note 3, Discontinued Operations.
|
•
|
Industrial Gases – Americas
|
•
|
Industrial Gases – EMEA (Europe, Middle East, and Africa)
|
•
|
Industrial Gases – Asia
|
•
|
Industrial Gases – Global
|
•
|
Corporate and other
|
|
Industrial
Gases–
Americas
|
Industrial
Gases–
EMEA
|
Industrial
Gases–
Asia
|
Industrial
Gases–
Global
|
Corporate
and other
|
Segment
Total
|
||||||||||||
2018
|
|
|
|
|
|
|
||||||||||||
Sales
|
|
$3,758.8
|
|
|
$2,193.3
|
|
|
$2,458.0
|
|
|
$436.1
|
|
|
$84.0
|
|
|
$8,930.2
|
|
Operating income (loss)
|
927.9
|
|
445.8
|
|
689.9
|
|
53.9
|
|
(176.0
|
)
|
1,941.5
|
|
||||||
Depreciation and amortization
|
485.3
|
|
198.6
|
|
265.8
|
|
8.1
|
|
12.9
|
|
970.7
|
|
||||||
Equity affiliates' income
|
82.0
|
|
61.1
|
|
58.3
|
|
1.9
|
|
—
|
|
203.3
|
|
||||||
Expenditures for long-lived assets
|
546.5
|
|
163.1
|
|
791.9
|
|
17.3
|
|
49.6
|
|
1,568.4
|
|
||||||
Investments in net assets of and advances to equity affiliates
|
312.1
|
|
503.3
|
|
445.6
|
|
16.2
|
|
—
|
|
1,277.2
|
|
||||||
Total assets
|
5,904.0
|
|
3,280.4
|
|
5,899.5
|
|
240.1
|
|
3,854.3
|
|
19,178.3
|
|
||||||
2017
|
|
|
|
|
|
|
||||||||||||
Sales
|
|
$3,637.0
|
|
|
$1,780.4
|
|
|
$1,964.7
|
|
|
$722.9
|
|
|
$82.6
|
|
|
$8,187.6
|
|
Operating income (loss)
|
946.1
|
|
395.5
|
|
532.6
|
|
71.1
|
|
(171.5
|
)
|
1,773.8
|
|
||||||
Depreciation and amortization
|
464.4
|
|
177.1
|
|
203.2
|
|
8.9
|
|
12.2
|
|
865.8
|
|
||||||
Equity affiliates' income
|
58.1
|
|
47.1
|
|
53.5
|
|
.9
|
|
—
|
|
159.6
|
|
||||||
Expenditures for long-lived assets
|
427.2
|
|
143.2
|
|
337.8
|
|
25.6
|
|
105.9
|
|
1,039.7
|
|
||||||
Investments in net assets of and advances to equity affiliates
|
287.5
|
|
508.6
|
|
471.8
|
|
19.0
|
|
—
|
|
1,286.9
|
|
||||||
Total assets
|
5,840.8
|
|
3,276.1
|
|
4,412.1
|
|
279.6
|
|
4,648.4
|
|
18,457.0
|
|
||||||
2016
|
|
|
|
|
|
|
||||||||||||
Sales
|
|
$3,344.1
|
|
|
$1,704.4
|
|
|
$1,720.4
|
|
|
$498.8
|
|
|
$236.0
|
|
|
$7,503.7
|
|
Operating income (loss)
|
891.3
|
|
387.0
|
|
452.8
|
|
(21.5
|
)
|
(89.4
|
)
|
1,620.2
|
|
||||||
Depreciation and amortization
|
443.6
|
|
185.7
|
|
197.9
|
|
7.9
|
|
19.5
|
|
854.6
|
|
||||||
Equity affiliates' income
|
52.7
|
|
36.5
|
|
57.8
|
|
—
|
|
—
|
|
147.0
|
|
||||||
Expenditures for long-lived assets
|
406.6
|
|
159.5
|
|
313.3
|
|
6.0
|
|
22.3
|
|
907.7
|
|
||||||
Investments in net assets of and advances to equity affiliates
|
250.6
|
|
580.5
|
|
442.5
|
|
10.0
|
|
—
|
|
1,283.6
|
|
||||||
Total assets
|
5,896.7
|
|
3,178.6
|
|
4,232.7
|
|
367.6
|
|
2,384.5
|
|
16,060.1
|
|
Operating Income
|
2018
|
|
2017
|
|
2016
|
|
|||
Segment total
|
|
$1,941.5
|
|
|
$1,773.8
|
|
|
$1,620.2
|
|
Change in inventory valuation method
|
24.1
|
|
—
|
|
—
|
|
|||
Business separation costs
|
—
|
|
(32.5
|
)
|
(50.6
|
)
|
|||
Cost reduction and asset actions
|
—
|
|
(151.4
|
)
|
(34.5
|
)
|
|||
Goodwill and intangible asset impairment charge
|
—
|
|
(162.1
|
)
|
—
|
|
|||
Gain on land sale
|
—
|
|
12.2
|
|
—
|
|
|||
Consolidated Total
|
|
$1,965.6
|
|
|
$1,440.0
|
|
|
$1,535.1
|
|
Equity Affiliates' Income
|
2018
|
2017
|
2016
|
||||||
Segment total
|
|
$203.3
|
|
|
$159.6
|
|
|
$147.0
|
|
Equity method investment impairment charge
|
—
|
|
(79.5
|
)
|
—
|
|
|||
Tax reform repatriation - equity method investment
|
(28.5
|
)
|
—
|
|
—
|
|
|||
Consolidated Total
|
|
$174.8
|
|
|
$80.1
|
|
|
$147.0
|
|
Total Assets
|
2018
|
|
2017
|
|
2016
|
|
|||
Segment total
|
|
$19,178.3
|
|
|
$18,457.0
|
|
|
$16,060.1
|
|
Discontinued operations
|
—
|
|
10.2
|
|
1,968.5
|
|
|||
Consolidated Total
|
|
$19,178.3
|
|
|
$18,467.2
|
|
|
$18,028.6
|
|
Sales to External Customers
|
2018
|
|
2017
|
|
2016
|
|
|||
United States
|
|
$3,149.6
|
|
|
$2,886.8
|
|
|
$2,911.7
|
|
Europe, including Middle East
|
2,292.5
|
|
2,478.5
|
|
2,186.5
|
|
|||
Asia, excluding China and India
|
904.0
|
|
849.6
|
|
721.4
|
|
|||
China
|
1,585.7
|
|
1,143.4
|
|
1,020.4
|
|
|||
Other(A)
|
998.4
|
|
829.3
|
|
663.7
|
|
|||
Total
|
|
$8,930.2
|
|
|
$8,187.6
|
|
|
$7,503.7
|
|
Long-Lived Assets(B)
|
2018
|
|
2017
|
|
2016
|
|
|||
United States
|
|
$3,512.7
|
|
|
$3,407.4
|
|
|
$3,411.4
|
|
Europe, including Middle East
|
1,283.3
|
|
1,279.0
|
|
1,292.5
|
|
|||
Asia, excluding China and India
|
899.8
|
|
778.5
|
|
707.0
|
|
|||
China
|
3,066.6
|
|
1,737.9
|
|
1,675.8
|
|
|||
Other(A)
|
1,161.3
|
|
1,237.4
|
|
1,173.0
|
|
|||
Total
|
|
$9,923.7
|
|
|
$8,440.2
|
|
|
$8,259.7
|
|
(A)
|
Includes Canada, Latin America, and India.
|
(B)
|
Long-lived assets include plant and equipment, net.
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Plan Category
|
Number of securities to be issued upon exercise of outstanding options, warrants, and rights
|
|
|
Weighted-average exercise price of outstanding options, warrants, and rights
|
|
Number of Securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
|
|
|
|
Equity compensation plans approved by security holders
|
3,181,790
|
|
(1)
|
|
$89.33
|
|
4,869,212
|
|
(2)
|
Equity compensation plans not approved by security holders
|
63,060
|
|
(3)
|
$—
|
|
—
|
|
|
|
Total
|
3,244,850
|
|
|
|
$89.33
|
|
4,869,212
|
|
|
(1)
|
Represents Long-Term Incentive Plan outstanding stock options and deferred stock units that have been granted. Deferred stock units entitle the recipient to one share of Company common stock upon vesting, which is conditioned on continued employment during a deferral period and may also be conditioned on earn-out against certain performance targets. The amount presented assumes the maximum potential payout.
|
(2)
|
Represents authorized shares that were available for future grants as of 30 September 2018. These shares may be used for options, deferred stock units, restricted stock, and other stock-based awards to officers, directors, and key employees. Full value awards such as restricted stock are limited to 20% of cumulative awards after 1 October 2001.
|
(3)
|
This number represents deferred stock units issued under the Deferred Compensation Plan, which are purchased for the fair value of the underlying shares of stock with eligible deferred compensation.
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
(a)
|
The following documents are filed as a part of this report:
|
|
|
|
|
|
|
|
(1)
|
The Company’s 2018 consolidated financial statements and the Report of the Independent Registered Public Accounting Firm are included in Part II, Item 8.
|
|
|
|
|
|
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
|
|
|
(2)
|
Financial Statement Schedules—the following additional information should be read in conjunction with the consolidated financial statements in the Company’s 2018 consolidated financial statements.
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
All other schedules are omitted because the required matter or conditions are not present or because the information required by the Schedules is submitted as part of the consolidated financial statements and notes thereto.
|
|
|
|
|
|
|
(3)
|
Exhibits—The exhibits filed as a part of this Annual Report on Form 10-K are listed in the Index to Exhibits located on page 126 of this Report.
|
|
Exhibit No.
|
Description
|
|
|
(2)
|
Plan of acquisition, reorganization, arrangement, liquidation or succession.
|
|
|
(3)
|
Articles of Incorporation and By-Laws.
|
|
|
3.1
|
|
|
|
3.2
|
Restated Certificate of Incorporation of the Company. (Filed as Exhibit 3.2 to the Company’s Form 10-K Report for the fiscal year ended 30 September 1987.)*
|
|
|
3.3
|
|
|
|
3.4
|
|
|
|
(4)
|
Instruments defining the rights of security holders, including indentures. Upon request of the Securities and Exchange Commission, the Company hereby undertakes to furnish copies of the instruments with respect to its long-term debt.
|
|
|
4.1
|
Indenture, dated as of January 18, 1985, between the Company and The Chase Manhattan Bank (National Association), as Trustee. (Filed as Exhibit 4(a) to the Company’s Registration Statement No. 33-36974.)*
|
|
|
4.2
|
|
|
|
(10)
|
Material Contracts
|
|
|
10.1
|
1990 Deferred Stock Plan of the Company, as amended and restated effective 1 October 1989. (Filed as Exhibit 10.1 to the Company’s Form 10-K Report for the fiscal year ended 30 September 1989.)*†
|
|
|
10.2
|
|
|
|
10.3
|
|
|
|
10.4
|
|
|
|
10.5
|
|
|
|
10.5(a)
|
|
|
|
10.5(b)
|
Exhibit No.
|
Description
|
|
|
10.5(c)
|
|
|
|
10.5(d)
|
|
|
|
10.5(e)
|
|
|
|
10.5(f)
|
|
|
|
10.5(g)
|
|
|
|
10.5(h)
|
|
|
|
10.5(i)
|
|
|
|
10.5(j)
|
|
|
|
10.6
|
|
|
|
10.6(a)
|
|
|
|
10.7
|
|
|
|
10.7(a)
|
|
|
|
10.7(b)
|
|
|
|
10.7(c)
|
|
|
|
Exhibit No.
|
Description
|
10.8
|
|
|
|
10.9
|
|
|
|
10.9(a)
|
|
|
|
10.10
|
|
|
|
10.11
|
|
|
|
10.12
|
|
|
|
10.13
|
|
|
|
10.14
|
|
|
|
10.16
|
|
|
|
16.1
|
|
|
|
14
|
|
|
|
21
|
|
|
|
(23)
|
Consents of Experts and Counsel.
|
|
|
23.1
|
|
|
|
24
|
|
|
|
(31)
|
Rule 13a-14(a)/15d-14(a) Certifications.
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
(32)
|
Section 1350 Certifications.
|
|
|
32.1
|
Exhibit No.
|
Description
|
|
|
99.1
|
|
|
|
101.INS
|
XBRL Instance Document. The XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
*
|
Previously filed as indicated and incorporated herein by reference. Exhibits incorporated by reference are located in SEC File No. 001-04534 unless otherwise indicated.
|
|
|
†
|
Indicated management contract or compensatory arrangement.
|
|
|
††
|
The certification attached as Exhibit 32.1 that accompanies this Annual Report on Form 10-K, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Air Products and Chemicals, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-K, irrespective of any general incorporation language contained in such filing.
|
|
AIR PRODUCTS AND CHEMICALS, INC.
|
|
(Registrant)
|
|
|
By:
|
/s/ M. Scott Crocco
|
|
M. Scott Crocco
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
|
Date:
|
20 November 2018
|
Signature and Title
|
|
Date
|
|
|
|
/s/ Seifi Ghasemi
|
|
20 November 2018
|
(Seifi Ghasemi)
Director, Chairman, President, and
Chief Executive Officer
(Principal Executive Officer)
|
|
|
|
|
|
/s/ Russell A. Flugel
|
|
20 November 2018
|
(Russell A. Flugel)
Vice President and Corporate Controller
(Principal Accounting Officer)
|
|
|
|
|
|
*
|
|
20 November 2018
|
(Susan K. Carter)
Director
|
|
|
|
|
|
*
|
|
20 November 2018
|
(Charles I. Cogut)
Director
|
|
|
|
|
|
*
|
|
20 November 2018
|
(Chad C. Deaton)
Director
|
|
|
|
|
|
*
|
|
20 November 2018
|
(David H. Y. Ho)
Director
|
|
|
|
|
|
*
|
|
20 November 2018
|
(Margaret G. McGlynn)
Director
|
|
|
|
|
|
Signature and Title
|
|
Date
|
*
|
|
20 November 2018
|
(Edward L. Monser)
Director
|
|
|
|
|
|
*
|
|
20 November 2018
|
(Matthew H. Paull)
Director
|
|
|
*
|
Sean D. Major, Executive Vice President, General Counsel and Secretary, by signing his name hereto, does sign this document on behalf of the above noted individuals, pursuant to a power of attorney duly executed by such individuals, which is filed with the Securities and Exchange Commission herewith.
|
|
/s/ Sean D. Major
|
|
Sean D. Major
|
|
Executive Vice President, General Counsel and Secretary
|
|
|
Date:
|
20 November 2018
|
|
Balance at
Beginning
of Period
|
|
Additions
Charged to
Expense
|
|
Additions
Charged to
Other Accounts
|
|
Other
Changes(A)
|
|
Balance
at End of
Period
|
|
|||||
Year Ended 30 September 2018
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
|
$94
|
|
|
$17
|
|
|
$7
|
|
|
($27
|
)
|
|
$91
|
|
Allowance for deferred tax assets
|
108
|
|
3
|
|
4
|
|
(10
|
)
|
105
|
|
|||||
|
|
|
|
|
|
||||||||||
Year Ended 30 September 2017
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
|
$55
|
|
|
$7
|
|
|
$39
|
|
|
($7
|
)
|
|
$94
|
|
Allowance for deferred tax assets (B)
|
165
|
|
6
|
|
7
|
|
(70
|
)
|
108
|
|
|||||
|
|
|
|
|
|
||||||||||
Year Ended 30 September 2016
|
|
|
|
|
|
||||||||||
Allowance for doubtful accounts
|
|
$48
|
|
|
$9
|
|
|
$13
|
|
|
($15
|
)
|
|
$55
|
|
Allowance for deferred tax assets(C)
|
112
|
|
1
|
|
52
|
|
—
|
|
165
|
|
(A)
|
Other changes related to allowance for doubtful accounts primarily includes write-offs of uncollectible trade receivables, net of recoveries. Other Changes also includes the impact of foreign currency translation adjustments.
|
(B)
|
The decrease in the valuation allowance was primarily due to the utilization of federal and state loss carryforwards as a result of recognizing the gain on the sale of our PMD business. This benefit was recorded in discontinued operations. See Note 3, Discontinued Operations, for additional information.
|
(C)
|
The increase in the valuation allowance was primarily due to the loss recorded on the exit from the Energy-from-Waste business. These costs were recorded in discontinued operations. See Note 3, Discontinued Operations, for additional information.
|
|
|
|
Witness
|
|
Executive
|
1.
|
Section 2.67 shall be amended to include a new section (f) to read as follows:
|
2.
|
In all other respects the Plan shall remain in full force and effect.
|
EXHIBIT 10.9(a)
|
EXECUTION VERSION
|
Signature
|
Title
|
Date
|
|
|
|
/s/ Susan K. Carter
|
Director
|
20 November 2018
|
Susan K. Carter
|
|
|
|
|
|
/s/ Charles I. Cogut
|
Director
|
20 November 2018
|
Charles I. Cogut
|
|
|
|
|
|
/s/ Chad C. Deaton
|
Director
|
20 November 2018
|
Chad C. Deaton
|
|
|
|
|
|
/s/ Seifi Ghasemi
|
Director and Chairman of the Board,
President and Chief Executive Officer
(Principal Executive Officer)
|
20 November 2018
|
Seifi Ghasemi
|
|
|
|
|
|
/s/ David H. Y. Ho
|
Director
|
20 November 2018
|
David H. Y. Ho
|
|
|
|
|
|
/s/ Margaret G. McGlynn
|
Director
|
20 November 2018
|
Margaret G. McGlynn
|
|
|
|
|
|
/s/ Edward L. Monser
|
Director
|
20 November 2018
|
Edward l. Monser
|
|
|
|
|
|
/s/ Matthew H. Paull
|
Director
|
20 November 2018
|
Matthew H. Paull
|
|
|
|
|
|
/s/ Seifi Ghasemi
|
Seifi Ghasemi
|
Chairman, President and Chief Executive Officer
|
/s/ M. Scott Crocco
|
M. Scott Crocco
|
Executive Vice President and Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: 20 November 2018
|
|
/s/ Seifi Ghasemi
|
|
|
Seifi Ghasemi
|
|
|
Chairman, President, and Chief Executive Officer
|
|
|
|
|
|
/s/ M. Scott Crocco
|
|
|
M. Scott Crocco
|
|
|
Executive Vice President and Chief Financial Officer
|