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Business and Asset Actions | 9 Months Ended
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Jun. 30, 2025
Restructuring and Related Activities [Abstract] |
Business and Asset Actions | BUSINESS AND ASSET ACTIONS Our consolidated income statements for the periods presented in this report include charges related to business and asset actions that are not reflected in segment results. Charges of $24.1 ($15.4 after tax) and $2,958.8 ($2,306.0 after tax attributable to Air Products) for the three and nine months ended 30 June 2025, respectively, were primarily recognized through operating results for project exit costs related to an ongoing review of our project backlog. The portion of the charge attributable to our noncontrolling partners was $3.5. The nine months ended 30 June 2024 reflect a charge of $57.0 ($43.8 after tax) that was recorded during the second quarter for involuntary termination benefits under our ongoing global cost reduction plan. Project Exit Costs During the second quarter of fiscal year 2025, our Board of Directors and Chief Executive Officer initiated a review of our project portfolio in an effort to streamline our backlog and prioritize resources on projects that we believe will enhance shareholder value. In connection with this review, we decided to exit various projects related to clean energy generation and distribution. As a result of these decisions, we recorded project exit costs of $2,885.9 and $6.8 through operating results and equity affiliates' income, respectively, during the first nine months of fiscal year 2025. The majority of these costs are related to projects in the Americas segment. The $2,885.9 charge recorded to operating results primarily included the write-down of project assets to their estimated net realizable value of $22.5, which was determined using significant unobservable inputs based on our best judgment regarding assumptions we expect market participants would use, as well as estimated costs required to terminate various contractual commitments. The $6.8 charge recorded to equity affiliates' income reflected an other-than-temporary impairment of a joint venture in China that had been formed to develop clean hydrogen infrastructure in the region. The table below provides a reconciliation of the total project exit charges recognized through operating loss with the corresponding accrual remaining within “Payables and Accrued Liabilities” on our balance sheet as of 30 June 2025:
Charge for project exit costs(A) | $2,885.9 |
Noncash expenses(B) | (2,468.2) |
Cash payments(C) | (100.4) |
Currency translation adjustment | 8.5 |
Amount accrued as of 30 June 2025 | $325.8 |
(A)Includes $2,861.8 recorded in the second quarter following the initial decision to exit certain projects. An additional $24.1 was recorded during the third quarter based on updated cost estimates associated with these actions. (B)Primarily attributable to plant and equipment and other noncurrent assets associated with the sustainable aviation fuel expansion project with World Energy. Refer to the nonrecurring fair value measurements table in Note 11, Fair Value Measurements, for additional information regarding the net realizable value of assets to be disposed. (C)Estimated cash expenditures associated with these actions are projected to total approximately $425. The remaining accrual as of 30 June 2025 reflects anticipated costs to settle open purchase commitments and asset retirement obligations. Our estimates related to exiting these projects, including the net realizable value of assets to be disposed and expected future cash obligations, reflect our best judgment based on information available as of 30 June 2025. Final settlement of these items may differ materially from our current estimates, which could impact our consolidated financial statements in future periods. While we expect to complete exit activities within the next twelve months, we cannot predict the occurrence of future events and circumstances that could extend this process beyond one year in certain cases. Additionally, our Board of Directors continues to review the business, which may lead to decisions that could result in additional charges in future periods. Global Cost Reduction Plan In June 2023, we initiated a global cost reduction plan that provides severance and other postemployment benefits to employees designated for involuntary separation. In accordance with our accounting policy, we recognize related costs in the period management formally commits to a defined set of actions under the plan. Benefits are determined based on the terms of our established ongoing benefit arrangements. Since the plan was initiated in 2023, we incurred costs totaling $150.1 for approximately 2,400 employees globally. Of these costs, $66.1 and $57.0 were recorded during the second quarters of fiscal years 2025 and 2024, respectively. No costs were recorded for the plan during the third quarters of fiscal years 2025 or 2024. As of 30 September 2024, the liability for unpaid benefits reflected within "Payables and accrued liabilities" on our consolidated balance sheet was $34.0. The table below reconciles this balance to the remaining liability as of 30 June 2025:
Amount accrued as of 30 September 2024 | $34.0 |
Charge for severance and other benefits | 66.1 |
Cash payments | (40.5) |
Currency translation adjustment | 1.8 |
Amount accrued as of 30 June 2025 | $61.4 |
The remaining liability as of 30 June 2025 primarily relates to employees identified during the second quarter of fiscal year 2025. We expect implementation of these actions to be substantially complete by the end of the second quarter of fiscal year 2026. However, position eliminations are subject to legal requirements that vary by jurisdiction, which may extend this process beyond one year in certain cases.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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