What changed in this filing

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Item 8. Financial Statements and Supplementary Data

2024-11-21 compared with 2023-11-16 · 354 added, 400 removed, 1811 unchanged (29% of the section changed)

9 unchanged sentences

Notes to Consolidated Financial Statements

Table of Conte n t s

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

14 unchanged sentences

Seifi Ghasemi Melissa N.

Chairman, President, and Senior Vice President and

Chairman, President, and Executive Vice President and

Chief Executive Officer Chief Financial Officer

21 November 2024 21 November 2024

Table of Conte n t s

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

24 unchanged sentences

and (3) 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.

Table of Conte n t s

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

9 unchanged sentences

Revenue associated with these contracts is generally recognized over time during the period in which the Company delivers or makes available the agreed upon quantity of gases.

In addition, certain on-site industrial gas contracts contain complex terms and provisions such as tolling arrangements, minimum payment requirements, pricing provisions, and variable components that are specific to a customer arrangement, including certain contracts with related parties.

These arrangements may require greater judgment in determining when contractual requirements have been met, impacting the timing and amount of revenue to be recorded.

7 unchanged sentences

• We inquired of personnel who oversee operations, customer relations, and revenue recognition as to the presence of contract amendments, and interpretation of contract terms.

• We considered the nature of transactions with related parties and any potential impact on revenue recognition.

/s/ Deloitte & Touche LLP

2 unchanged sentences

We have served as the Company's auditor since 2018.

Table of Conte n t s

Air Products and Chemicals, Inc.

6 unchanged sentences

Cost of sales 8,168.7 8,833.0 9,338.5

Facility closure — — 23.2

Selling and administrative expense 942.4 957.0 900.6

957.0 900.6 828.4

Research and development expense 100.2 105.6 102.9

105.6 102.9 93.5

Gain on sale of business

Business and asset actions 57.0 244.6 73.7

Gain on exchange with joint venture partner — — 36.8

Other income (expense), net 58.2 34.8 55.9

6 unchanged sentences

Income From Continuing Operations 3,876.3 2,331.2 2,253.9

Income from discontinued operations, net of tax 7.4 12.6 70.3

(Loss) Income from discontinued operations, net of tax ( 13.9 ) 7.4 12.6

Net Income 3,862.4 2,338.6 2,266.5

3 unchanged sentences

Net income from continuing operations $ 3,842.1 $ 2,292.8 $ 2,243.5

Net income from discontinued operations 7.4 12.6 70.3

Net (loss) income from discontinued operations ( 13.9 ) 7.4 12.6

Net Income Attributable to Air Products $ 3,828.2 $ 2,300.2 $ 2,256.1

4 unchanged sentences

Basic EPS Attributable to Air Products

$ 17.21 $ 10.35 $ 10.16

Diluted EPS from continuing operations $ 17.24 $ 10.30 $ 10.08

6 unchanged sentences

The accompanying notes are an integral part of these statements.

Table of Conte n t s

Air Products and Chemicals, Inc.

8 unchanged sentences

381.5 151.1 ( 1,230.5 )

Net gain (loss) on derivatives, net of tax of $ 48.6 , ($ 63.9 ), and ($ 9.0 )

Net (loss) gain on derivatives, net of tax of $ 10.7 , $ 48.6 , and ($ 63.9 )

( 159.5 ) 369.2 ( 120.3 )

10 unchanged sentences

Net Income Attributable to Noncontrolling Interests 34.2 38.4 10.4

Other Comprehensive Income (Loss) Attributable to Noncontrolling Interests 184.3 ( 29.3 ) 38.8

Other Comprehensive (Loss) Income Attributable to Noncontrolling Interests ( 147.0 ) 184.3 ( 29.3 )

Comprehensive Income Attributable to Air Products $ 4,249.9 $ 2,636.9 $ 985.9

The accompanying notes are an integral part of these statements.

Table of Conte n t s

Air Products and Chemicals, Inc.

42 unchanged sentences

issued 2024 and 2023 - 249,455,584 shares)

$ 249.4 $ 249.4

Capital in excess of par value 1,253.2 1,190.5

12 unchanged sentences

The accompanying notes are an integral part of these statements.

Table of Conte n t s

Air Products and Chemicals, Inc.

8 unchanged sentences

Net income attributable to Air Products 3,828.2 2,300.2 2,256.1

Net income from discontinued operations ( 7.4 ) ( 12.6 ) ( 70.3 )

Net loss (income) from discontinued operations 13.9 ( 7.4 ) ( 12.6 )

Net income from continuing operations attributable to Air Products 3,842.1 2,292.8 2,243.5

2 unchanged sentences

Deferred income taxes ( 69.3 ) ( 24.7 ) 32.3

Facility closure — — 23.2

Gain on sale of business ( 1,575.6 ) — —

Business and asset actions 57.0 244.6 73.7

Undistributed earnings of equity method investments ( 261.2 ) ( 214.7 ) ( 138.2 )

Undistributed earnings to equity method investments ( 206.0 ) ( 261.2 ) ( 214.7 )

Gain on sale of assets and investments ( 31.4 ) ( 15.8 ) ( 24.1 )

22 unchanged sentences

Payments on long-term debt ( 486.2 ) ( 615.4 ) ( 400.0 )

Net increase in commercial paper and short-term borrowings 268.2 17.9 1.0

(Decrease) Increase in commercial paper and short-term borrowings ( 289.9 ) 268.2 17.9

Dividends paid to shareholders ( 1,564.9 ) ( 1,496.6 ) ( 1,383.3 )

10 unchanged sentences

Effect of Exchange Rate Changes on Cash 19.8 6.5 ( 130.3 )

Decrease in cash and cash items ( 1,094.0 ) ( 1,757.9 ) ( 784.1 )

Increase (Decrease) in cash and cash items 1,362.7 ( 1,094.0 ) ( 1,757.9 )

Cash and cash items – Beginning of year 1,617.0 2,711.0 4,468.9

1 unchanged sentence

The accompanying notes are an integral part of these statements.

Table of Conte n t s

Air Products and Chemicals, Inc.

14 unchanged sentences

Net income — — 2,256.1 — — 2,256.1 10.4 2,266.5

Other comprehensive income (loss) — — — 624.2 — 624.2 38.8 663.0

Other comprehensive loss — — — ( 1,270.2 ) — ( 1,270.2 ) ( 29.3 ) ( 1,299.5 )

Dividends on common stock ($ 6.36 per share)

8 unchanged sentences

Net income — — 2,300.2 — — 2,300.2 38.4 2,338.6

Other comprehensive income (loss) — — — ( 1,270.2 ) — ( 1,270.2 ) ( 29.3 ) ( 1,299.5 )

Other comprehensive income — — — 336.7 — 336.7 184.3 521.0

Dividends on common stock ($ 6.87 per share)

3 unchanged sentences

Issuance of treasury shares for stock option and award plans — ( 6.1 ) — — 13.7 7.6 — 7.6

Investments by noncontrolling interests — — — — — — 33.0 33.0

Purchase of noncontrolling interests — — — — — — ( 1.9 ) ( 1.9 )

Investments by noncontrolling interests (A)

— — — — — — 682.2 682.2

Other equity transactions — 0.6 ( 4.6 ) — — ( 4.0 ) — ( 4.0 )

7 unchanged sentences

Issuance of treasury shares for stock option and award plans — 3.9 — — ( 16.8 ) ( 12.9 ) — ( 12.9 )

Investments by noncontrolling interests (A)

— — — — — — 682.2 682.2

Investments by noncontrolling interests — — — — — — 428.5 428.5

Other equity transactions — 0.5 ( 2.5 ) — — ( 2.0 ) ( 0.5 ) ( 2.5 )

3 unchanged sentences

The accompanying notes are an integral part of these statements.

Table of Conte n t s

Air Products and Chemicals, Inc.

6 unchanged sentences

Variable Interest Entities

Gain on Sale of Business

Business and Asset Actions

14 unchanged sentences

Business Segment and Geographic Information

Table of Conte n t s

BASIS OF PRESENTATION AND MAJOR ACCOUNTING POLICIES

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About Air Products

Air Products, a Delaware corporation originally founded in 1940, is a world-leading industrial gases company.

Focused on energy, environmental, and emerging markets, Air Products' core business provides a portfolio of products, and services that include atmospheric gases, process and specialty gases, equipment, and related services to customers in dozens of industries.

Air Products also develops, engineers, builds, owns, and operates some of the world's largest industrial gas and carbon-capture projects, supplying world-scale clean hydrogen that will support the world's transition to lower carbon energy, particularly in the global transportation, and industrial markets.

Air Products trades on the New York Stock Exchange under the symbol "APD."

Air Products manages and reports its operating results through five reportable segments:

Air Products and Chemicals, Inc., a Delaware corporation originally founded in 1940, is a global industrial gases company that has built a reputation for its innovative culture, operational excellence, and commitment to safety and the environment.

Focused on serving energy, environmental, and emerging markets, we are committed to generating a cleaner future by offering products and services that enable our customers to improve their environmental performance, product quality, and productivity.

With sustainability at its core, our two-pillar growth strategy includes the optimization and growth of our core industrial gases business while developing, engineering, building, owning, and operating some of the world’s largest clean hydrogen projects that will advance the transition to low- and zero-carbon energy in the industrial and heavy-duty transportation sectors.

Our regional industrial gases business provides essential gases, related equipment, and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, medical, and food.

Through our sale of equipment businesses, we also provide turbomachinery, membrane systems, and cryogenic containers globally.

We manage our operations, assess performance, and report earnings under five reportable segments:

Americas, Asia, Europe, Middle East and India, and Corporate and other.

The discussion that follows is based on these operations.

Refer to Note 26, Business Segment and Geographic Information , for additional information.

Our results of operations for the periods presented in this Annual Report on Form 10-K include the results of our former liquefied natural gas process technology and equipment business, which we sold to Honeywell International Inc.

on 30 September 2024.

This divestiture, which does not qualify for presentation as a discontinued operation, reflects our commitment to our industrial gases and clean hydrogen growth strategy.

Refer to Note 4, Gain on Sale of Business , for additional information.

Basis of Presentation

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Intercompany transactions and balances are eliminated in consolidation.

Certain prior year information has been reclassified to conform to the fiscal year 2024 presentation.

Discontinued Operations

6 unchanged sentences

Actual results could differ from those estimates.

Reclassifications

Certain prior year information has been reclassified to conform to the fiscal year 2023 presentation.

For example, beginning in the first quarter of fiscal year 2023, we present "Operating lease right-of-use assets, net" and "Noncurrent operating lease liabilities" in separate captions on our consolidated balance sheets.

These balances were previously presented within "Other noncurrent assets" and "Other noncurrent liabilities," respectively.

Consolidation Principles

7 unchanged sentences

For additional information on this joint venture, refer to Note 10, Equity Affiliates .

Table of Conte n t s

Revenue Recognition

2 unchanged sentences

Our contracts within the scope of revenue guidance do not contain payment terms that include a significant financing component.

Sales returns and allowances are not a business practice in the industry.

Consistent with industry business practice, we generally do not accept sales returns or provide return allowances.

Our sale of gas contracts are either accounted for over time during the period in which we deliver or make available the agreed upon quantity of goods or at a point in time when the customer receives and obtains control of the product, which generally occurs upon delivery.

27 unchanged sentences

Refer to Note 16, Fair Value Measurements , and Note 18, Retirement Benefits , for information on the methods and assumptions used in our fair value measurements.

Table of Conte n t s

Financial Instruments

30 unchanged sentences

Foreign exchange gains and losses from the foreign currency remeasurement of balances associated with intercompany and third-party financing transactions, related income tax assets and liabilities, and the impact of related hedges are reflected within “Other non-operating income (expense), net" and were not material for the periods presented.

Table of Conte n t s

In addition, foreign currency forward points and currency swap basis differences that are excluded from the assessment of hedge effectiveness of our cash flow hedges of intercompany loans (“excluded components”) are recorded within “Other non-operating income (expense), net" on a straight-line basis.

1 unchanged sentence

Government Assistance

We receive, or expect to receive in the future, various types of government assistance, primarily in the form of grants or refundable tax credits.

We receive various types of government assistance, primarily in the form of grants or refundable tax credits.

Government assistance is recognized when there is reasonable assurance that we have complied with relevant conditions and the assistance will be received.

2 unchanged sentences

Government assistance that relates to expenses is recognized in the income statement as a reduction of the related expense or as a component of other income (expense), net.

Government assistance did not have a material impact on our financial statements in fiscal year 2023.

Government assistance did not have a material impact on our consolidated financial statements for the periods presented in this Annual Report on Form 10-K.

Environmental Expenditures

3 unchanged sentences

The amounts charged to income from continuing operations related to environmental matters totaled $ 27.0 , $ 24.9 , and $ 22.3 in fiscal years 2024, 2023, and 2022, respectively.

In addition, during the fourth quarter of fiscal year 2024, we recorded a pre-tax expense of $ 19.4 in results from discontinued operations to increase our existing liability for retained environmental remediation obligations associated with the sale of our former Amines business in September 2006.

Refer to the " Pace " discussion within Note 19, Commitments and Contingencies , for additional information.

The measurement of environmental liabilities is based on an evaluation of currently available information with respect to each individual site and considers factors such as existing technology, presently enacted laws and regulations, and prior experience in remediation of contaminated sites.

16 unchanged sentences

Refer to Note 19, Commitments and Contingencies , for additional information on our current legal proceedings.

Table of Conte n t s

Share-Based Compensation

15 unchanged sentences

Our non-service costs primarily include interest cost, expected return on plan assets, amortization of actuarial gains and losses, and settlements.

Additionally, during the third quarter of fiscal year 2024, we discontinued cash flow hedge accounting for certain interest rate swaps associated with financing for the NEOM Green Hydrogen Project.

As a result of the de-designation, unrealized gains and losses are recorded to "Other non-operating income (expense), net" until the instruments re-qualify for cash flow hedge accounting.

Refer to Note 3, Variable Interest Entities , and Note 15, Financial Instruments , for additional information.

Cash and Cash Items

5 unchanged sentences

When extending credit, we evaluate customer creditworthiness based on a combination of qualitative and quantitative factors that include, but are not limited to, the customer’s credit score from external providers, financial condition, and past payment experience.

We assess allowances for credit losses on our trade receivables, lease receivable, and financing receivable portfolios.

We assess allowances for credit losses on our trade receivable, lease receivable, and financing receivable portfolios.

Allowances are evaluated by portfolio on a collective basis where similar characteristics exist.

3 unchanged sentences

We also consider variables that may mitigate the inherent credit risk of a particular transaction, such as the estimated fair value of the collateral, whether by use or sale.

Table of Conte n t s

The use of forward-looking information considers economic conditions that may affect the customers’ ability to pay.

4 unchanged sentences

Balance at 30 September 2021 $ 25.1

Adoption of new credit losses standard 0.5

Provision for credit losses 7.5

11 unchanged sentences

In addition, our lease receivables and financing receivables are presented net of allowances for credit losses.

As of 30 September 2023 and 2022, the credit quality of lease receivables and financing receivables did not require a material allowance for credit losses.

For additional information on our lease arrangements, refer to Note 13, Leases .

As of 30 September 2024 and 2023, the allowance for credit losses on lease receivables and financing receivables were not material.

We carry inventory that is comprised of finished goods, work-in-process, raw materials and supplies.

12 unchanged sentences

In addition, “Equity affiliates’ income” includes interest income from shareholder loans viewed as in-substance common stock.

Table of Conte n t s

Plant and Equipment, net

31 unchanged sentences

Revenue representing interest income from the financing component of the lease receivable is reflected as sales over the life of the contract.

Table of Conte n t s

In cases for which operating lease treatment is appropriate, there is no difference in revenue recognition over the life of the contract as compared to accounting for the contract under a sale of gas agreement.

1 unchanged sentence

We elected to apply this practical expedient and have accounted for the combined component as product sales under the revenue standard as we control the operations and maintenance of the assets that provide the supply of gas to our customers.

As we generally control the operations and maintenance of the assets that provide the supply of gas to our customers, there have been no new arrangements that qualified as a lease in fiscal year 2023.

There have been no new arrangements that qualified as a lease for which we are the lessor in fiscal year 2024.

Financing Receivables

4 unchanged sentences

Related interest income is presented within “Sales” on our consolidated income statements with revenue received to operate the plant.

Interest income on our financing receivables was not material in fiscal year 2023.

Accrued interest is presented within trade receivables, net and was not material as of 30 September 2024 and 2023.

Impairment of Long-Lived Assets

9 unchanged sentences

Our asset retirement obligations are primarily associated with on-site long-term supply contracts under which we have built a facility on land owned by the customer and are obligated to remove the facility at the end of the contract term.

Our asset retirement obligations totaled $ 297.3 and $ 274.7 at 30 September 2023 and 2022, respectively.

Refer to Note 19, Commitments and Contingencies , for further detail.

13 unchanged sentences

In addition, intangible assets are tested more frequently if a change in circumstances or the occurrence of events indicates that potential impairment exists.

Table of Conte n t s

Customer relationships are generally amortized over periods of five to 25 years.

10 unchanged sentences

NEW ACCOUNTING GUIDANCE

Accounting Guidance Implemented in Fiscal Year 2023

Government Assistance

In November 2021, the Financial Accounting Standards Board ("FASB") issued disclosure guidance to increase the transparency of transactions an entity has with a government that are accounted for by applying a grant or contribution accounting model.

We adopted the annual disclosure guidance on a prospective basis in fiscal year 2023.

Refer to Note 1, Basis of Presentation and Major Accounting Policies, for additional information.

Reference Rate Reform

In March 2020, the FASB issued an update to provide practical expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met.

This update is primarily applicable to our contracts and hedging relationships that reference the London Inter-Bank Offered Rate ("LIBOR").

In December 2022, the FASB extended the date through which the amendments may be applied to impacted contracts and hedges to 31 December 2024.

In fiscal year 2023, we amended our remaining interest rate swaps that referenced LIBOR to use a daily compounded Secured Overnight Financing Rate ("SOFR").

There were no financial statement impacts from the amendment.

Table of Conte n t s

New Accounting Guidance to be Implemented

Climate-Related Disclosures

In March 2024, the SEC issued Release No.

33-11275, “The Enhancement and Standardization of Climate-Related Disclosures for Investors", which includes final rules for providing qualitative and quantitative disclosures regarding certain climate-related topics on an annual basis.

As a result of ongoing litigation in the U.S., the SEC issued an order in April 2024 to stay the effectiveness of the rules while judicial review is pending.

If the rules are not overturned and take effect on schedule, prospective adoption will be permitted with phased-in compliance beginning with our Annual Report on Form 10-K for the fiscal year ending 30 September 2026.

We are evaluating the impact these rules will have on our disclosures.

Reportable Segment Disclosures

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No.

2023-07, "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures".

The update includes enhanced disclosures about significant segment expenses and identification of the chief operating decision maker.

The update will be effective in our Annual Report on Form 10-K for the fiscal year ending 30 September 2025 as well as interim periods thereafter, although early adoption is permitted.

The amendments must be applied retrospectively to all prior periods presented.

We are evaluating the impact this update will have on our disclosures.

Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740)—Improvements to Income Tax Disclosures” to expand income tax disclosures, primarily through disaggregation requirements for the rate reconciliation and income taxes paid.

The update will be effective in our Annual Report on Form 10-K for the fiscal year ending 30 September 2026, although early adoption is permitted.

The amendments should be applied on a prospective basis with a retrospective option.

We are evaluating the impact this update will have on our disclosures.

VARIABLE INTEREST ENTITIES

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We are not the primary beneficiary of any other material VIEs.

We account for a VIE for which we exercise significant influence but are not the primary beneficiary, such as the Jazan Integrated Gasification and Power Company joint venture ("JIGPC"), as an equity method investment.

For additional information on JIGPC, refer to Note 9, Equity Affiliates .

We account for a VIE for which we have an equity interest and exercise significant influence but are not the primary beneficiary, such as the Jazan Integrated Gasification and Power Company joint venture ("JIGPC"), as an equity method investment.

During the first quarter of fiscal year 2024, we determined that World Energy, LLC ("World Energy") is a VIE for which we have no equity interest and are not the primary beneficiary.

Our variable interests in NGHC, JIGPC, and World Energy are further discussed below.

NGHC Joint Venture

The NEOM Green Hydrogen Project is a multi-billion dollar green hydrogen-based ammonia production facility that is being constructed in NEOM City, Saudi Arabia.

Owned and operated by NGHC, the facility will be powered by renewable energy to produce green ammonia for Air Products as the exclusive offtaker under a long-term take-if-tendered agreement.

We intend to transport the green ammonia around the world to be dissociated to produce green hydrogen for transportation and industrial markets.

Air Products is an equal owner in NGHC with our joint venture partners, ACWA Power and NEOM Company.

While we only hold one-third of the voting interests in the joint venture, substantially all the activities of the joint venture involve or are conducted on behalf of Air Products.

Since we have disproportionately few voting rights relative to our economic interests in the joint venture, we determined that NGHC is a VIE.

In addition, we determined that we are the primary beneficiary of NGHC since we have the power to unilaterally direct certain significant activities, including key design and construction decisions, and we share power with our joint venture partners related to other activities that are significant to the economic performance of NGHC.

Therefore, we consolidate NGHC within the Middle East and India segment.

Project Financing

In May 2023, NGHC finalized the $ 6.7 billion engineering, procurement, and construction ("EPC") agreement with Air Products named as the main contractor and system integrator for the facility.

NGHC secured non-recourse project financing of approximately $ 6.1 billion, which is expected to fund about 73 % of the project and will be drawn over the construction period.

At the same time, NGHC secured additional non-recourse credit facilities totaling approximately $ 500 primarily for working capital needs.

Under the financing, the assets of NGHC can only be used to settle obligations of the joint venture, and creditors of NGHC do not have recourse to the general credit of Air Products.

A table summarizing balances associated with NGHC as reflected on our consolidated balance sheets is provided on page 78 .

NGHC completed its first drawdown on the project financing in July 2023.

As of 30 September 2024 and 2023, total principal borrowings were $ 3,323.4 and $ 1,364.8 , respectively.

The balance as of 30 September 2024 includes short-term borrowings of $ 51.6 from a 6.21 % variable rate Saudi Riyal facility.

The remaining borrowings include the long-term facilities below, which are reflected net of unamortized discounts and debt issuance costs within "Long-term debt" on our consolidated balance sheets.

30 September Fiscal Year Maturities 2024 2023

Payable in U.S.

Dollar variable-rate facilities 6.17 % (A)

2027 to 2053 $ 1,945.2 $ 1,094.9

Dollar variable-rate facility 5.82 % (A)

Dollar stated-rate facility 5.00 %

2027 to 2053 245.9 138.5

Total Payable in U.S.

$ 2,536.6 $ 1,233.4

Payable in Other Currencies

Saudi Riyal Loan Facility variable-rate 6.69 % (B)

Saudi Riyal Loan Facility stated-rate facility 2.00 %

2028 to 2041 735.2 —

Total Principal Amount

$ 3,271.8 $ 1,364.8

Unamortized discount and debt issuance costs (C)

Total NGHC Long-term Debt $ 3,053.3 $ 1,274.4

(A) Reflects a daily compounded SOFR as of 30 September 2024 plus an annual margin of 1.31 % and 0.96 %, respectively.

These rates do not include the impact of our floating-to-fixed interest rate swaps, which result in an overall lower interest rate for the borrowings.

Additional information is provided below.

(B) Based on the Saudi Arabian Interbank Offered Rate ("SAIBOR") plus an annual margin of 0.80 %.

(C) Our consolidated balance sheets as of 30 September 2024 and 2023 also included $ 4.6 and $ 58.8 , respectively, for remaining project financing fees that were eligible for deferral as a noncurrent asset.

Once additional borrowings are drawn, the unamortized balance is reclassified as an offset to the outstanding debt.

In May 2023, NGHC entered into floating-to-fixed interest rate swaps designed to hedge the long-term variable rate debt facilities available under the project financing during the construction period of the project.

We discontinued cash flow hedge accounting for certain swaps during the third quarter of fiscal year 2024.

As a result of the de-designation, unrealized gains and losses are recorded to "Other non-operating income (expense), net" on our consolidated income statements.

For the fiscal year ended 30 September 2024, unrealized losses were $ 16.3 ($ 4.3 attributable to Air Products after tax).

Unrealized losses attributable to our noncontrolling partners were $ 10.6 .

Refer to Note 15, Financial Instruments , for additional information.

The green hydrogen-based ammonia production facility is being constructed on land owned by our joint venture partner, NEOM Company, for which NGHC signed a 50-year lease agreement.

The land lease commenced during the third quarter of fiscal year 2023.

Accordingly, we recorded an operating lease with a right-of-use asset and corresponding liability of $ 223 , of which $ 209 was paid as a lump-sum in August 2023.

Additional payments under the lease will occur after the first 30 years of the lease term.

NGHC Balance Sheet

The table below summarizes balances associated with NGHC as reflected on our consolidated balance sheets:

For additional information on this joint venture, refer to the "NEOM Green Hydrogen Project" section that follows.

30 September 30 September

Cash and cash items $ 34.5 $ 78.2

10 unchanged sentences

Accrued income taxes 2.0 0.6

Short-term borrowings 51.6 —

Total current liabilities $ 362.0 $ 141.6

Long-term debt 3,053.3 1,274.4

Long-term debt – related party (A)

Noncurrent operating lease liabilities 24.5 18.9

4 unchanged sentences

Accumulated other comprehensive income $ 13.8 $ 77.7

Noncontrolling interests (A)

(A) During the third quarter of fiscal year 2023, outstanding shareholder loans to NGHC were converted to equity in the entity.

Accordingly, related party debt outstanding was reclassified to investments attributable to the noncontrolling partners of NGHC.

This noncash activity is presented within “Investments by noncontrolling interests” on our consolidated statements of equity for the fiscal year ended 30 September 2023.

Table of Conte n t s

NEOM Green Hydrogen Project

In the fourth quarter of fiscal year 2020, we announced the NEOM Green Hydrogen Project (the "NEOM project”), a multi-billion dollar green hydrogen-based ammonia production facility that will be powered by renewable energy in NEOM City, Saudi Arabia.

We, along with our joint venture partners, ACWA Power and NEOM Company, are equal owners in NGHC, which will develop, construct, own, operate, and finance the project.

During the third quarter of fiscal year 2022, we entered into an interim agreement with NGHC under which we commenced construction of the NEOM project.

In addition, we executed an agreement with NGHC under which we will be the exclusive offtaker of green ammonia produced by the NEOM project under a long-term take-if-tendered agreement.

We intend to transport the green ammonia around the world to be dissociated to produce green hydrogen for transportation and industrial markets.

In May 2023, NGHC finalized the $ 6.7 billion engineering, procurement, and construction ("EPC") agreement with Air Products named as the main contractor and system integrator for the facility.

As of 30 September 2023, we had unconditional purchase obligations of approximately $ 5 billion for open purchase orders related to construction of the project.

Air Products has one-third of the voting interests in the NGHC joint venture;

however, substantially all the activities of the joint venture involve or are conducted on behalf of Air Products.

Since we have disproportionately few voting rights relative to our economic interests in the joint venture, we determined that NGHC is a variable interest entity.

Therefore, we consolidate NGHC within the Middle East and India segment.

Project Financing

In May 2023, NGHC secured non-recourse project financing of approximately $ 6.1 billion, which is expected to fund about 73 % of the project and will be drawn over the construction period.

At the same time, NGHC secured additional non-recourse credit facilities totaling approximately $ 500 primarily for working capital needs.

Under the financing, the assets of NGHC can only be used to settle obligations of the joint venture, and creditors of NGHC do not have recourse to the general credit of Air Products.

The joint venture completed its first drawdown on the project financing in July 2023.

The table below summarizes the interest rate, maturity, and carrying amount of borrowings associated with NGHC as of 30 September 2023:

Fiscal Year Maturities

30 September 2023

Payable in U.S.

Dollar variable-rate facilities 6.62 % (A)

Dollar stated-rate facility 5.00 % 2027 to 2053

Total Payable in U.S.

Payable in Other Currencies

Saudi Riyal Loan Facility variable-rate 6.69 % (B)

Total Principal Amount

Unamortized discount and debt issuance costs (C)

Total NGHC Long-term Debt

(A) Reflects a daily compounded SOFR as of 30 September 2023 plus an annual margin of 1.31 %.

This does not include the impact of our floating-to-fixed interest rate swaps, which result in an overall lower interest rate for the borrowings.

These derivative instruments, which had a notional principal amount of $ 1,182.5 and an average pay rate of 2.82 % as of 30 September 2023, are reflected within the table provided in Note 14, Financial Instruments , on page 85 .

(B) Based on the Saudi Arabian Interbank Offered Rate ("SAIBOR") plus an annual margin of 0.8 %.

(C) Our consolidated balance sheet as of 30 September 2023 also includes $ 58.8 for remaining project financing fees that are eligible for deferral as a noncurrent asset until additional borrowings are drawn, at which time the unamortized balance will be reclassified as an offset to the outstanding debt.

The green hydrogen-based ammonia production facility is being constructed on land owned by our joint venture partner, NEOM Company, for which NGHC signed a 50-year lease agreement.

The land lease commenced during the third quarter of fiscal year 2023.

Accordingly, we recorded an operating lease with a right-of-use asset and corresponding liability of $ 223 , of which $ 209 was paid as a lump-sum in August 2023.

Additional payments under the lease will occur after the first 30 years of the lease term.

Table of Conte n t s

Noncontrolling interests 937.6 723.6

JIGPC Joint Venture

JIGPC is a joint venture with Saudi Aramco Power Company (a subsidiary of Aramco), ACWA Power, and Air Products Qudra (“APQ”).

JIGPC entered into project financing to purchase power blocks, gasifiers, air separation units, syngas cleanup assets, and utilities to supply electricity, steam, hydrogen, and utilities to Aramco’s refinery and terminal complex under a 25 -year agreement, which commenced in the first quarter of fiscal year 2022.

JIGPC recorded financing receivables upon acquisition of the assets and recognizes financing income over the supply term.

We determined JIGPC is a VIE for which we exercise significant influence but are not the primary beneficiary as we do not have the power to direct the activities that are most significant to its economic performance.

Instead, these activities, including plant dispatch, operating and maintenance decisions, budgeting, capital expenditures, and financing, require unanimous approval of the owners or are controlled by the customer.

Accordingly, we account for our 55 % investment, which includes 4 % that is attributable to the noncontrolling partner of APQ, under the equity method within the Middle East and India segment.

The carrying value of our investment, including amounts attributable to noncontrolling interests, totaled $ 2,871.2 and $ 2,862.2 as of 30 September 2024 and 30 September 2023, respectively.

Our loss exposure is limited to our investment in the joint venture.

Our investment primarily consists of shareholder loans that qualify as in-substance common stock in the joint venture.

Certain shareholders receive a preferred cash distribution pursuant to the joint venture agreement, which specifies each shareholder’s share of income after considering the amount of cash available for distribution.

As such, the earnings attributable to Air Products may not be proportionate to our ownership interest in the venture.

In November 2023, we finalized an agreement to purchase a sustainable aviation fuel (“SAF”) facility in Paramount, California from World Energy.

We determined the acquisition contains an embedded sales-type lease.

As a result, we are accounting for the transaction as a financing arrangement and recorded a financing receivable, which had a carrying value of approximately $ 300 as of 30 September 2024.

At the time of acquisition, we entered into a Master Project Agreement (“MPA”) containing terms for operation of the acquired facility as well as amended terms for the construction and operation of an SAF expansion project subject to construction at the same location.

The MPA includes a tolling arrangement whereby we will receive feedstock from and produce renewable fuels for World Energy over a term that will conclude 15 years after onstream of the expansion project with the option to renew for two five-year terms.

The SAF expansion project is currently on hold pending receipt of permits.

During the first quarter of fiscal year 2024, we determined that World Energy is a VIE and our financing receivable represents a variable interest in World Energy.

We are not the primary beneficiary as we do not have control over their key operating decisions, including feedstock supply, production of renewable fuels, and negotiating and executing supply agreements with customers.

As of 30 September 2024, our maximum exposure to loss is approximately $ 2 billion.

This includes project-related spending of approximately $ 1.5 billion, of which $ 1.2 billion is capitalized within “Plant and equipment, net” and $ 330 is deferred within "Other noncurrent assets", and approximately $ 215 for open purchase commitments, all of which relate to the SAF expansion project.

Our exposure also includes the financing receivable of $ 300 discussed above, which we begin to collect at the onstream of the expansion project, as well as related accrued interest, which accrues monthly.

Accrued interest was not material as of 30 September 2024.

GAIN ON SALE OF BUSINESS

On 30 September 2024, we completed the sale of our liquefied natural gas ("LNG") process technology and equipment business to Honeywell International Inc.

for approximately $ 1.8 billion in an all-cash transaction.

This divestiture reflects our commitment to our industrial gases and clean hydrogen growth strategy.

As a result of the transaction, we recorded a gain of $ 1,575.6 during the fourth quarter of fiscal year 2024 that is reflected within "Gain on sale of business" on our consolidated income statements ($ 1,198.4 after tax).

This gain was not recorded in segment results.

The LNG business does not qualify for presentation as a discontinued operation because the disposal does not represent a strategic shift that has had or will have a major effect on our operations and financial results.

The LNG business generated operating income for our Corporate and other segment of approximately $ 135 , $ 120 , and $ 95 in fiscal years 2024, 2023, and 2022, respectively.

BUSINESS AND ASSET ACTIONS

The charges we record for business and asset actions are not recorded in segment results.

Fiscal Year 2023

Our consolidated income statement for the fiscal year ended 30 September 2023 includes an expense of $ 244.6 ($ 204.9 attributable to Air Products after tax) resulting from strategic business and asset actions intended to optimize costs and focus resources on our growth projects.

Of the expense, $ 217.6 resulted from noncash charges to write off assets associated with exited projects that were previously under construction in our Asia and Europe segments.

The assets written off included those related to our withdrawal from coal gasification in Indonesia as well as a project in Ukraine that was permanently suspended due to Russia's invasion of the country.

The remaining expense includes $ 27.0 for severance and other benefits payable to approximately 450 employees due to position eliminations and restructuring of certain organizations globally.

The table below summarizes the carrying amount of the accrual for unpaid benefits as of 30 September 2023, which we expect to substantially pay through fiscal year 2024.

Charge for severance and other benefits $ 27.0

Cash expenditures ( 6.8 )

Our consolidated income statements reflect charges for strategic business and asset actions intended to optimize costs and focus resources on our growth projects.

As further discussed below, charges for business and asset actions were $ 57.0 ($ 43.8 after tax), $ 244.6 ($ 204.9 attributable to Air Products after tax), and $ 73.7 ($ 61.0 after tax) in fiscal years 2024, 2023, and 2022, respectively.

These charges were not recorded in segment results.

Global Cost Reduction Plan

During the second quarter of fiscal year 2024, we recognized an expense of $ 57.0 for severance and other postemployment benefits payable to employees identified under a global cost reduction plan.

We originated this plan during the third quarter of fiscal year 2023, which resulted in an initial charge of $ 27.0 .

In total, approximately 1,100 employees globally are eligible to receive benefits under the plan.

We estimated benefits payable according to our ongoing benefit arrangements.

The table below reconciles these charges to the carrying amount of the remaining accrual for unpaid benefits as of 30 September 2024.

This balance primarily relates to the additional actions identified during the second quarter of fiscal year 2024.

We expect to pay the majority of the remaining benefits over the next six months.

Third quarter fiscal year 2023 charge $ 27.0

Cash payments ( 6.8 )

Currency translation adjustment ( 0.4 )

Amount reflected in "Payables and accrued liabilities" as of 30 September 2023 $ 19.8

Fiscal Year 2022

We divested our small industrial gas business in Russia due to Russia's invasion of Ukraine in the fourth quarter of fiscal year 2022.

As a result, we recorded a noncash business and asset actions charge of $ 73.7 , which included transaction costs and cumulative currency translation losses.

Amount accrued as of 30 September 2023 (A)

Second quarter fiscal year 2024 charge 57.0

Cash payments ( 43.6 )

Currency translation adjustment 0.8

Amount accrued as of 30 September 2024 (A)

(A) Reflected within "Payables and accrued liabilities" on our consolidated balance sheets.

Asset Actions

In fiscal year 2023, we recorded a noncash charge of $ 217.6 to write off assets associated with exited projects that were previously under construction in our Asia and Europe segments.

Of the charge, $ 5.0 was attributable to a noncontrolling partner.

Also as a result of the invasion, we divested our small industrial gas business in Russia in fiscal year 2022 and recorded a noncash charge of $ 73.7 that included transaction costs and cumulative currency translation losses.

Prior to the divestiture, this business was reflected in our Europe segment.

Fiscal Year 2023

Uzbekistan Asset Purchase

On 25 May 2023, we entered into an investment agreement with the Government of the Republic of Uzbekistan and Uzbekneftegaz JSC (“UNG”) to purchase a natural gas-to-syngas processing facility in Qashqadaryo Province, Uzbekistan, for $ 1 billion.

Under the agreement, Air Products will acquire, own, and operate the facility and supply all offtake products to UNG under a 15 -year on-site contract, with UNG supplying the feedstock natural gas and utilities.

We are accounting for the transaction as a financing arrangement because UNG has the right to reacquire the facility at the end of the contract term.

Accordingly, progress payments of approximately $ 800 , of which $ 600 was completed during f iscal year 2023, are reflected within "Financing Receivables" on our consolidated balance sheet as of 30 September 2023.

The progress payments are reflected within “Investment in financing receivables” on our consolidated statement of cash flows.

In early fiscal year 2024, we made an additional progress payment of $ 100 .

Table of Conte n t s

Fiscal Year 2021

Gain on Exchange With Joint Venture Partner

We previously held a 50 % ownership interest in Tyczka Industrie-Gases GmbH ("TIG"), a joint venture in Germany with the Tyczka Group that was primarily a merchant gases business.

We accounted for this arrangement as an equity method investment in our former Industrial Gases – EMEA segment.

Effective 23 February 2021 (the "acquisition date"), TIG was separated into two businesses, one of which we acquired on a 100 % basis.

Our partner paid us $ 10.8 to acquire the other business.

The exchange resulted in a gain of $ 36.8 ($ 27.3 after-tax), which is reflected as “Gain on exchange with joint venture partner” on our consolidated income statements for the fiscal year ended 30 September 2021.

The gain included $ 12.7 from the revaluation of our previously held equity interest in the portion of the business that we retained and $ 24.1 from the sale of our equity interest in the remaining business.

The gain was not recorded in segment results.

We estimated an acquisition date fair value of $ 15.4 for our previously held equity interest in the acquired portion of the business using a market approach, which considered historical earnings and the application of a market-based multiple derived from comparable transactions.

We accounted for the acquisition as a business combination.

The results of this business are consolidated within our Europe segment.

Throughout this term, we receive a fixed monthly fee (regardless of whether UNG requires the output) comprised of two components:

a plant capacity fee and an operating and maintenance fee.

We are accounting for the transaction as a financing arrangement as we did not obtain accounting control of the facility due to UNG having the unilateral right to reacquire the facility at the end of the contract term.

The repurchase price on a discounted basis, which consists of the total monthly plant capacity fees received over the term of the arrangement plus the repurchase option price, exceeds our purchase price.

Accordingly, our progress payments of approximately $ 920 , of which $ 120 was paid during fiscal year 2024, are reflected within "Financing receivables" on our consolidated balance sheet as of 30 September 2024.

REVENUE RECOGNITION

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• On-site Gases —Supply mode associated with customers who require large volumes of gases and have relatively constant demand.

Gases are produced and supplied by large facilities on or near the customers’ facilities or by pipeline systems from centrally located production facilities.

These sale of gas contracts generally have 15 - to 20 -year terms.

We also deliver smaller quantities of product through small on-site plants (cryogenic or non-cryogenic generators), typically via 10 - to 15 -year sale of gas contracts.

The contracts within this supply mode generally contain fixed monthly charges and/or minimum purchase requirements with price escalation provisions that are generally based on external indices.

Gases are produced and supplied by large facilities that we construct or acquire on or near the customers’ facilities or by pipeline systems from centrally located production facilities.

These arrangements are generally governed by 15 - to 20 -year sale of gas contracts.

We also deliver smaller quantities of product through small on-site plants (cryogenic or non-cryogenic generators), typically via a 10 - to 15 -year sale of gas contract.

The contracts within this supply mode generally contain fixed monthly charges and/or minimum purchase requirements with price escalation provisions that are typically based on external indices.

Revenue associated with this supply mode is generally recognized over time during the period in which we deliver or make available the agreed upon quantity of goods.

• Merchant Gases —Supply mode associated with liquid bulk and packaged gases customers.

Liquid bulk customers receive delivery of product in liquid or gaseous form by tanker or tube trailer.

The product is stored, usually in its liquid state, in equipment we typically design and install at the customer’s site for vaporizing into a gaseous state as needed.

• Merchant Gases —Supply mode for liquid bulk and packaged gas products.

Liquid bulk product is delivered in bulk in either liquid or gaseous form by tanker or tube trailer and is stored, usually in its liquid state, in equipment that we typically design and install at the customer’s site for vaporizing into a gaseous state as needed.

Packaged gases customers receive small quantities of product delivered in either cylinders or dewars.

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Performance obligations associated with this supply mode are satisfied at a point in time when the customer receives and obtains control of the product, which generally occurs upon delivery.

Table of Conte n t s

The timing of revenue recognition for our regional industrial gases businesses is generally consistent with our right to invoice the customer.

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We mitigate energy and natural gas price risk contractually through pricing formulas, surcharges, and cost pass-through arrangements.

We design and manufacture equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage.

The Corporate and other segment serves our sale of equipment customers.

We design and manufacture equipment for air separation, hydrocarbon recovery and purification, and liquid helium and liquid hydrogen transport and storage.

The Corporate and other segment includes activity related to the sale of cryogenic and gas processing equipment.

Through the end of fiscal year 2024, this segment also reflected sales of natural gas liquefaction equipment associated with the liquefied natural gas process technology and equipment business that was divested on 30 September 2024.

Our sale of equipment contracts are generally comprised of a single performance obligation as the individual promised goods or services contained within the contracts are integrated with or dependent upon other goods or services in the contract for a single output to the customer.

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We recorded changes to project estimates that unfavorably impacted operating income by approximately $ 175 , $ 115 , and $ 30 in fiscal years 2024, 2023, and 2022, respectively.

Table of Conte n t s

Disaggregation of Revenue

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Total $ 5,368.9 $ 3,143.3 $ 3,086.1 $ 129.5 $ 970.8 $ 12,698.6 100 %

Interest income associated with financing and lease arrangements accounted for less than 1% of our total consolidated sales in fiscal years 2023, 2022, and 2021.

Interest income associated with financing and lease arrangements accounted for approximately 1 % of our total consolidated sales in fiscal year 2024 and less than 1 % of our total consolidated sales in fiscal years 2023 and 2022.

Remaining Performance Obligations

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These balances are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each reporting period.

Table of Conte n t s

Contract assets primarily relate to our sale of equipment contracts for which revenue is recognized over time.

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Contract fulfillment costs primarily include deferred costs related to sale of equipment projects that cannot be inventoried and for which we expect to recognize revenue upon transfer of control at project completion or costs related to fulfilling a specific anticipated contract.

Costs to obtain a contract, or "contract acquisition costs," are capitalized only after we have established a contract with the customer.

Costs to obtain a contract, or "contract acquisition costs," are capitalized at the time we establish a contract with the customer.

We elected to apply the practical expedient to expense these costs as they are incurred if the amortization period of the asset that would have otherwise been recognized is one year or less.

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Contract liabilities include advanced payments or right to consideration prior to performance under the contract and are recognized as revenue when or as we perform.

Increases to our current contract liabilities primarily relate to new sale of equipment projects as balances associated with our sale of gas contracts are generally related to fixed charges and are relatively consistent period over period.

Increases to our contract liabilities primarily relate to new sale of equipment projects as balances associated with our sale of gas contracts are generally related to fixed charges and are relatively consistent period over period.

During the fiscal year ended 30 September 2024, we recognized sales of approximately $ 335.0 associated with sale of equipment contracts that were included within our contract liabilities balance as of 30 September 2023.

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DISCONTINUED OPERATIONS

Our consolidated income statements include income from discontinued operations, net of tax, of $ 7.4 , $ 12.6 , and $ 70.3 in fiscal years 2023, 2022, and 2021, respectively, primarily from the release of unrecognized tax benefits on uncertain tax positions for which the statute of limitations expired.

During the fourth quarter of fiscal year 2024, we recorded a pre-tax loss from discontinued operations of $ 19.4 ($ 13.9 after tax) to increase our existing liability for retained environmental remediation obligations associated with the sale of our former Amines business in September 2006.

Refer to the " Pace " discussion within Note 19, Commitments and Contingencies , for additional information.

The loss did not have an impact on our statement of cash flows for the fiscal year ended 30 September 2024.

In fiscal year 2023, income from discontinued operations, net of tax, of $ 7.4 primarily resulted from a net tax benefit recorded in the fourth quarter upon release of tax liabilities for uncertain tax positions taken with respect to the sale of our former Performance Materials Division ("PMD"), which was completed in 2017.

Additionally, our consolidated statement of cash flows for the fiscal year ended 30 September 2023 reflects cash provided by operating activities of discontinued operations of $ 0.6 from income tax refunds associated with the sale.

Additionally, our consolidated statement of cash flows for the fiscal year ended 30 September 2023 reflected cash provided by operating activities of discontinued operations of $ 0.6 from income tax refunds associated with the sale.

In fiscal year 2022, income from discontinued operations, net of tax, of $ 12.6 primarily resulted from a net tax benefit recorded in the fourth quarter upon release of tax liabilities for uncertain tax positions taken with respect to the sale of PMD.

Additionally, our consolidated statement of cash flows for the fiscal year ended 30 September 2022 reflects cash provided by operating activities of discontinued operations of $ 59.6 primarily from income tax refunds associated with the sale.

In fiscal year 2021, income from discontinued operations, net of tax, of $ 70.3 included net tax benefits of $ 60.0 recorded upon release of tax liabilities for uncertain tax positions.

Of this amount, we recorded $ 51.8 in the fourth quarter for liabilities associated with PMD and $ 8.2 in the third quarter for liabilities associated with our former Energy-from-Waste ("EfW") business.

Additionally, we recorded a tax benefit of $ 10.3 in the first quarter of fiscal year 2021 primarily from the settlement of a state tax appeal related to the gain on the sale of PMD.

Our consolidated statement of cash flows for the fiscal year ended 30 September 2021 reflects cash provided by operating activities of discontinued operations of $ 6.7 from cash received as part of the settlement.

Additionally, our consolidated statement of cash flows for the fiscal year ended 30 September 2022 reflected cash provided by operating activities of discontinued operations of $ 59.6 primarily from income tax refunds associated with the sale.

The components of inventories are as follows:

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Inventories $ 766.0 $ 651.8

Table of Conte n t s

EQUITY AFFILIATES

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Substantially all our equity method investments are foreign affiliates.

As of 30 September 2023, our equity affiliates were as follows:

As of 30 September 2024, our equity affiliates and related ownership percentages were as follows:

Abdullah Hashim Industrial Gases & Equipment Co., Ltd.

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(A) Includes financing revenue of $ 1,128.6 , $ 1,011.3 , and $ 674.6 in fiscal years 2024, 2023, and 2022, respectively.

Financing revenue in fiscal years 2023 and 2022 primarily relates to the JIGPC joint venture discussed below.

Investment in Jazan Integrated Gasification and Power Company (“JIGPC”)

During the first quarter of fiscal year 2022, we made an initial investment of $ 1.6 billion to acquire a 55 % ownership interest in the Jazan Integrated Gasification and Power Company ("JIGPC") joint venture of which 4 % is attributable to the noncontrolling partner of Air Products Qudra ("APQ").

Financing revenue primarily relates to the JIGPC joint venture discussed below.

Investment in JIGPC

During the first quarter of fiscal year 2022, we made an initial investment of $ 1.6 billion to acquire a 55 % ownership interest in the JIGPC joint venture, of which 4 % is attributable to the noncontrolling partner of APQ.

During the second quarter of fiscal year 2023, we completed a second investment of $ 908 , which did not change our ownership interest.

Additional information on the JIGPC joint venture is provided below.

Our investments were made primarily in the form of shareholder loans that qualify as in-substance common stock in the joint venture and were executed to align with the timing of the joint venture's purchase of project assets.

Our investments were executed to align with the timing of the joint venture's purchase of project assets.

The amounts invested included approximately $ 130 and $ 73 received from the noncontrolling partner of APQ for the first and second investment, respectively.

As of 30 September 2023, the carrying value of our investment in JIGPC, including amounts attributable to noncontrolling interests, totaled $ 2,862.2 .

We expect to complete a remaining investment of approximately $ 115 for additional assets to be purchased by the joint venture.

Table of Conte n t s

We determined JIGPC is a variable interest entity for which we are not the primary beneficiary as we do not have the power to direct the activities that are most significant to the economic performance of the joint venture.

Since we have the ability to exercise significant influence in the joint venture, we accounted for our investment in JIGPC under the equity method within the Middle East and India segment beginning in the first quarter of fiscal year 2022.

Our loss exposure is limited to our investment in the joint venture.

As such, the earnings attributable to Air Products may not be proportionate to our ownership interest in the venture.

JIGPC Joint Venture

JIGPC is a joint venture with Saudi Aramco Power Company (a subsidiary of Aramco), ACWA Power, and APQ in the Jazan Economic City, Saudi Arabia.

On 27 September 2021, JIGPC signed definitive agreements for the acquisition of project assets from Aramco for $ 12 billion and entered into related project financing for the purchase of the project assets, which include power blocks, gasifiers, air separation units, syngas cleanup assets, and utilities, in multiple phases.

The first phase was completed on 27 October 2021 for $ 7.39 billion, and the second phase was completed for $ 4.15 billion on 19 January 2023.

We expect JIGPC to acquire additional assets totaling approximately $ 525 .

JIGPC will commission, operate, and maintain the project assets to supply electricity, steam, hydrogen, and utilities to Aramco’s refinery and terminal complex under a 25 -year agreement, which commenced in the first quarter of fiscal year 2022.

JIGPC recorded financing receivables upon acquisition of the assets and recognizes financing income over the supply term.

The carrying value of our investment in JIGPC, including amounts attributable to noncontrolling interests, totaled $ 2,871.2 and $ 2,862.2 as of 30 September 2024 and 2023, respectively.

We determined JIGPC is a VIE for which we have an equity interest and exercise significant influence but are not the primary beneficiary.

Refer to Note 3, Variable Interest Entities , for additional information.

Jazan Gas Project Company

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This charge is reflected on our consolidated income statements within “Equity affiliates' income” and was not recorded in segment results.

Table of Conte n t s

PLANT AND EQUIPMENT, NET

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Goodwill, net as of 30 September 2022 $ 143.2 $ 172.7 $ 457.5 $ 15.8 $ 33.8 $ 823.0

Acquisitions (A)

— — 17.0 7.5 — 24.5

Currency translation and other 3.4 ( 0.8 ) 36.0 — 0.1 38.7

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Goodwill, net as of 30 September 2024 $ 146.3 $ 174.7 $ 534.3 $ 15.8 $ 34.0 $ 905.1

(A) Goodwill acquired in fiscal year 2022 was primarily attributable to expected cost synergies associated with small business combinations, of which $ 3.2 was deductible for tax purposes.

30 September 2024 2023 2022

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We review goodwill for impairment annually in the fourth quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying value of goodwill might not be recoverable.

The impairment test for goodwill involves calculating the fair value of each reporting unit and comparing that value to the carrying value.

The impairment test for goodwill involves an optional assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value.

If qualitative factors alone are not sufficient to support this conclusion, we perform quantitative testing that involves calculating the fair value of each reporting unit.

If the fair value of the reporting unit is less than its carrying value, the difference is recorded as a goodwill impairment charge, not to exceed the total amount of goodwill allocated to that reporting unit.

During the fourth quarter of fiscal year 2023, we conducted our annual goodwill impairment test and determined that the fair value of all our reporting units exceeded their carrying value.

Table of Conte n t s

During the fourth quarter of fiscal year 2024, we conducted our annual goodwill impairment test and concluded that it was more likely than not that the fair value of each reporting unit was greater than its carrying value.

INTANGIBLE ASSETS

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Indefinite-lived intangible assets are subject to impairment testing at least annually or more frequently if events or changes in circumstances indicate that potential impairment exists.

The impairment test for indefinite-lived intangible assets involves calculating the fair value of the indefinite-lived intangible assets and comparing the fair value to their carrying value.

If the fair value is less than the carrying value, the difference is recorded as an impairment loss.

During the fourth quarter of fiscal year 2023, we conducted our annual impairment test of indefinite-lived intangible assets and determined that the fair value of all our intangible assets exceeded their carrying value.

Table of Conte n t s

The impairment test for indefinite-lived intangible assets involves an optional assessment of qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying value.

If qualitative factors alone are not sufficient to support this conclusion, we perform quantitative testing that involves calculating the fair value of the indefinite-lived intangible asset.

If the fair value of the asset is less than its carrying value, the difference is recorded as an impairment loss, not to exceed the total carrying value of the asset.

During the fourth quarter of fiscal year 2024, we conducted our annual impairment test and concluded that it was more likely than not that the fair value of each indefinite-lived intangible asset was greater than its carrying value.

Lessee Accounting

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We recorded noncash right-of-use asset additions of approximately $ 159 , $ 150 , and $ 252 in fiscal years 2024, 2023, and 2022, respectively.

Table of Conte n t s

Lessor Accounting

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Fiscal Year Ended 30 September 2024 2023 2022

Payments that reduced the noncurrent lease receivable balance $ 79.6 $ 94.0 $ 98.8

Payments that reduced the lease receivable balance $ 122.1 $ 79.6 $ 94.0

Payments recognized as interest income 42.6 49.6 59.1

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Given the long-term duration of our contracts, there is no assumed residual value for the assets at the end of the lease term.

Table of Conte n t s

FINANCIAL INSTRUMENTS

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The primary objective of these forward exchange contracts is to protect the value of foreign currency-denominated monetary assets and liabilities from the effects of volatility in foreign exchange rates that might occur prior to their receipt or settlement.

This portfolio of forward exchange contracts consists of many different foreign currency pairs, with a profile that changes from time to time depending on our business activity and sourcing decisions.

This portfolio of forward exchange contracts consists of multiple foreign currency pairs, with a profile that changes from time to time depending on our business activity and sourcing decisions.

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

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Total Forward Exchange Contracts $ 6,794.6 0.8 $ 6,036.6 0.9

The increase in the notional value of our forward exchange contracts that are not designated is primarily due to the origination of forward exchange contracts that offset other forward exchange contracts previously designated as cash flow hedges of intercompany loans.

The hedged intercompany loans were repaid early.

We also use foreign currency-denominated debt to hedge the foreign currency exposures of our net investment in certain foreign subsidiaries.

The designated foreign currency-denominated debt and related accrued interest was € 1,905.7 million ($ 2,121.9 ) at 30 September 2024 and € 1,938.6 million ($ 2,049.7 ) at 30 September 2023.

The designated foreign currency-denominated debt is presented within "Long-term debt" on the consolidated balance sheets.

The designated foreign currency-denominated debt is presented within "Long-term debt" and "Current portion of long-term debt" on the consolidated balance sheets.

Debt Portfolio Management

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Reflecting the result of this ongoing review, we manage our debt portfolio and hedging program with the intent to (1) reduce funding risk with respect to borrowings made by us to preserve our access to debt capital and provide debt capital as required for funding and liquidity purposes, and (2) manage the aggregate interest rate risk and the debt portfolio in accordance with certain debt management parameters.

Table of Conte n t s

Interest Rate Management Contracts

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It is our policy not to enter into any interest rate management contracts which lever a move in interest rates on a greater than one-to-one basis.

In May 2023, NGHC entered into floating-to-fixed interest rate swaps that are designated as cash flow hedges in connection with the non-recourse project financing secured by the joint venture.

Refer to Note 3, Variable Interest Entities , for additional information.

Cross Currency Interest Rate Swap Contracts

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Notional Average Pay % Average

Interest rate swaps (fair value hedge) $ 800.0 SOFR 1.64 % 4.0 $ 800.0 Various 1.64 % 5.0

Interest rate swaps (fair value hedge) $ 800.0 SOFR 1.64 % 3.0 $ 800.0 SOFR 1.64 % 4.0

Interest rate swaps

(cash flow hedge) $ 1,182.5 2.82 % SOFR 22.1 $ — — % — % 0.0

(cash flow hedge) (A)

$ 2,159.3 2.72 % SOFR 21.2 $ 1,182.5 2.82 % SOFR 22.1

Interest rate swaps

(not designated) (A)

$ 461.4 3.27 % SOFR 20.5 $ — — % — % 0.0

Cross currency interest rate swaps (net investment hedge) $ 16.7 5.39 % 3.64 % 0.2 $ 80.8 4.60 % 3.65 % 0.9

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Cross currency interest rate swaps (not designated) $ 34.7 5.39 % 3.64 % 0.2 $ 44.5 5.39 % 3.54 % 0.2

The table below provides the amounts recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges:

(A) In May 2023, NGHC entered into floating-to-fixed interest rate swaps designed to hedge long-term variable rate debt facilities available under non-recourse project financing during the construction period of the NEOM Green Hydrogen Project.

During the third quarter of fiscal year 2024, we discontinued cash flow hedge accounting for certain instruments that will remain de-designated until outstanding borrowings from the available financing are commensurate with the notional value of the instruments.

The table below provides the amounts recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges:

Carrying amounts of hedged item Cumulative hedging adjustment, included in carrying amount

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Long-term debt $ 2,057.1 $ 2,011.4 ($ 36.6 ) ($ 80.5 )

Table of Conte n t s

The tables below summarize the fair value and balance sheet location of our outstanding derivatives.

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Forward exchange contracts, excluded components ( 31.2 ) ( 18.7 )

( 260.4 ) 325.4

Total Amount Recognized in OCI ( 148.8 ) 417.8

4 unchanged sentences

Other also includes the recognition of our share of gains and losses, net of tax, related to interest rate swaps held by our equity affiliates .

Table of Conte n t s

The tables below summarize the location and amounts recognized in income related to our cash flow and fair value hedging relationships by contract type:

7 unchanged sentences

Amount reclassified from OCI into income — — — — 3.9 5.5 16.2 ( 5.2 )

Amount reclassified from OCI into income due to de-designation — — — — — — ( 3.1 ) —

Total (Gain) Loss Reclassified from OCI to Income — ( 0.6 ) 2.4 4.9 3.9 5.5 ( 49.7 ) ( 67.3 )

5 unchanged sentences

Total (Gain) Loss Recognized in Income $ — $ — $ — $ — $ — $ — $ — $ —

Table of Conte n t s

The table below summarizes the location and amounts recognized in income related to our derivatives not designated as hedging instruments by contract type:

3 unchanged sentences

Forward exchange contracts $ 0.7 ($ 1.0 ) $ — ($ 2.4 )

De-designated interest rate swaps — — 19.4 —

Other — — 1.5 0.3

23 unchanged sentences

Level 2 measurements were based on current interest rates for similar investments with comparable credit risk and time to maturity.

Table of Conte n t s

The fair value of our interest rate management contracts and forward exchange contracts are quantified using the income approach and are based on estimates using standard pricing models.

18 unchanged sentences

Accordingly, these items have been excluded from the above table.

Table of Conte n t s

The table below summarizes assets and liabilities on the consolidated balance sheets that are measured at fair value on a recurring basis:

17 unchanged sentences

(A) Balances reflect bank obligations with weighted average interest rates of 4.0 % and 5.2 % as of 30 September 2024 and 2023, respectively.

The increase from fiscal year 2022 primarily relates to commercial paper.

The decrease from fiscal year 2023 is primarily due to the repayment of commercial paper.

Related Party Debt

1 unchanged sentence

Total debt owed to related parties was $ 304.4 and $ 328.3 as of 30 September 2024 and 30 September 2023, respectively, of which $ 200.0 and $ 177.6 , respectively, was reflected within "Current portion of long-term debt" on our consolidated balance sheets.

During the third quarter of fiscal year 2023, outstanding shareholder loans to the NGHC joint venture were converted to equity in the entity.

Refer to Note 3, Variable Interest Entities , for additional information on this joint venture.

The remaining related party debt balance as of 30 September 2024 primarily includes a loan with Lu’An Clean Energy Company.

2 unchanged sentences

As of 30 September 2024, we were in compliance with all the financial and other covenants under our debt agreements.

Table of Conte n t s

Summary of Long-Term Debt Instruments

12 unchanged sentences

Note 4.80 % 2033 600.0 600.0

Note 4.85 % 2034 1,150.0 —

Note 2.70 % 2040 750.0 750.0

Note 2.80 % 2050 950.0 950.0

Other (weighted average rate)

Variable-rate industrial revenue bonds 3.38 % 2035 to 2050 618.9 618.9

Other variable-rate 6.78 % 2024 to 2032 41.4 41.4

Other variable-rate 7.11 % 2025 38.8 41.4

Payable in Other Currencies

4 unchanged sentences

Saudi Riyal Loan Facility variable-rate 7.35 % 2027 451.1 451.1

Saudi Riyal Loan Facility variable-rate 7.00 % 2027 451.1 —

Saudi Riyal Loan Facility 2.00 % 2034 192.1 —

Saudi Riyal Loan Facility 2.00 % 2026 to 2034 222.2 192.1

New Taiwan Dollar Loan Facility 1.86 % 2025 to 2028 131.5 167.5

1 unchanged sentence

New Taiwan Dollar Loan Facility variable-rate 2.72 % 2026 to 2030 94.8 3.1

Other 2023 — 0.1

Other 4.07 % (weighted average rate)

2033 to 2034 9.4 —

Related Party Debt

2 unchanged sentences

Non-Recourse Debt Associated With NGHC (A)

2027 to 2053 1,364.8 —

3,271.8 1,364.8

Finance Lease Obligations (weighted average rate)

1 unchanged sentence

Total Principal Amount $ 14,485.5 $ 10,292.5

Related party shareholder loans to NGHC — 447.3

Unamortized discount and debt issuance costs 304.5 165.7

Fair value hedge accounting adjustments (B)

( 80.5 ) ( 77.1 )

Total Long-term Debt $ 14,144.4 $ 10,046.3

2 unchanged sentences

Long-term Debt $ 13,428.6 $ 9,280.6

(A) Refer to the "NEOM Green Hydrogen Project Financing" section below for additional information.

(A) Refer to Note 3, Variable Interest Entities , for additional information.

(B) Refer to Note 15, Financial Instruments , for additional information.

2 unchanged sentences

Total $ 14,485.5

Table of Conte n t s

The table below reconciles interest incurred to interest expense as presented on our consolidated income statements.

5 unchanged sentences

Cash paid for interest, net of amounts capitalized, was $ 198.2 , $ 131.5 , and $ 128.5 in fiscal years 2024, 2023, and 2022, respectively.

Green Financing

On 3 March 2023, we issued our inaugural multi-currency green bonds under our new Green Finance Framework, which was established to further align our financings with our sustainability strategy.

The concurrent offerings included U.S.

Dollar- and Euro-denominated fixed-rate notes with aggregate principal amounts of $ 600 and € 700 million, respectively.

The proceeds from the notes were reduced by deferred financing charges and discounts of approximately $ 15 , which are being amortized over the life of the underlying bonds.

Issuance of Green Senior Notes

In February 2024, we issued green senior notes with an aggregate principal amount of $ 2.5 billion in a registered public offering.

The proceeds from the notes were reduced by deferred financing charges and discounts of approximately $ 20 , which are being amortized through interest expense over the life of the underlying bonds.

We intend to use the net proceeds to finance or refinance existing or future projects that are expected to have environmental benefits as defined under our Green Finance Framework.

The interest rate, maturity, and carrying amount as of 30 September 2024 for each of these notes are summarized in the table below:

Maturities 30 September 2024

Senior Note 4.600 %

Senior Note 4.750 %

Senior Note 4.850 %

Total $ 2,500.0

Credit Facilities

2021 Credit Agreement

We have a five -year $ 2.75 billion revolving credit agreement maturing 31 March 2026 with a syndicate of banks (the “2021 Credit Agreement”), under which senior unsecured debt is available to us and certain of our subsidiaries.

The 2021 Credit Agreement provides a source of liquidity and supports our commercial paper program.

No borrowings were outstanding under the 2021 Credit Agreement as of 30 September 2023.

The only financial covenant in the 2021 Credit Agreement is a maximum ratio of total debt to total capitalization (equal to total debt plus total equity) not to exceed 70 %.

The 2021 Credit Agreement defines total debt as the aggregate principal amount of all indebtedness, excluding limited recourse debt of any project finance subsidiary.

Accordingly, this calculation does not consider borrowings associated with NGHC.

2024 Credit Agreements

In March 2024, we entered into a five-year $ 3.0 billion revolving credit agreement maturing 31 March 2029 (the “2024 Five-Year Credit Agreement”) as well as a 364 -day $ 500.0 revolving credit agreement maturing 27 March 2025 that we have the ability to convert into a term loan maturing 27 March 2026 (the “2024 364-Day Credit Agreement” and, together with the 2024 Five-Year Credit Agreement, the “2024 Credit Agreements”).

Both of the 2024 Credit Agreements are syndicated facilities that provide a source of liquidity and support our commercial paper program through availability of senior unsecured debt to us and certain of our subsidiaries.

As of 30 September 2024, no borrowings were outstanding under either of the 2024 Credit Agreements.

Borrowings under both of the 2024 Credit Agreements bear interest at quoted market rates plus varying spreads based on our public debt ratings.

Each of the 2024 Credit Agreements also requires a commitment fee on unused commitments based on our public debt ratings.

There are no financial maintenance covenants in either of the 2024 Credit Agreements.

The 2024 Five-Year Credit Agreement replaced our previous $ 2.75 billion revolving credit agreement (the “2021 Credit Agreement”), which was terminated upon execution of the 2024 Five-Year Credit Agreement.

No borrowings were outstanding under the 2021 Credit Agreement at the time of its termination, and no early termination penalties were incurred.

Foreign Credit Facilities

1 unchanged sentence

The amount borrowed and outstanding as of 30 September 2023 was $ 1,041.4 .

The increase from 30 September 2022 was driven by borrowings on a new variable-rate Saudi Riyal loan facility that matures in October 2026.

The interest rate on the facility is based on SAIBOR plus an annual margin of 1.35 %.

We entered into this facility in October 2022 and utilized a portion of the proceeds to repay a variable-rate 4.10 % Saudi Riyal loan facility of $ 195.6 , which was presented within long-term debt on our consolidated balance sheet as of 30 September 2022.

NEOM Green Hydrogen Project Financing

In May 2023, NGHC secured non-recourse project financing of approximately $ 6.1 billion, which is expected to fund about 73 % of the NEOM Green Hydrogen Project and will be drawn over the construction period.

At the same time, NGHC secured additional non-recourse credit facilities totaling approximately $ 500 primarily for working capital needs.

As of 30 September 2023, the joint venture had borrowed $ 1.4 billion of the available financing.

For additional information, including details of related debt instruments, refer to Note 3, Variable Interest Entities .

Table of Conte n t s

RETIREMENT BENEFITS

11 unchanged sentences

Pension benefits earned are generally based on years of service and compensation during active employment.

The components of net periodic (benefit) cost for our defined benefit pension plans for fiscal years 2023, 2022, and 2021 were as follows:

The components of net periodic cost (benefit) for our defined benefit pension plans for fiscal years 2024, 2023, and 2022 were as follows:

Fiscal Year Ended 30 September

15 unchanged sentences

The amount of service costs capitalized in fiscal years 2024, 2023 and 2022 were not material.

The non-service related impacts, including pension settlement losses and curtailment gains, are presented outside operating income within " Other non-operating income (expense), net ."

The non-service related impacts are presented outside operating income within " Other non-operating income (expense), net ."

Certain of our pension plans provide for a lump sum benefit payment option at the time of retirement, or for corporate officers, six months after their retirement date.

A participant’s vested benefit is considered settled upon cash payment of the lump sum.

We recognize pension settlement losses when cash payments exceed the sum of the service and interest cost components of net periodic benefit cost of the plan for the fiscal year.

We recognize pension settlement losses when cash payments exceed the sum of the service and interest cost components of net periodic cost (benefit) of the plan for the fiscal year.

We recognized pension settlement losses of $ 1.1 , $ 1.4 and $ 6.0 in fiscal years 2024, 2023 and 2022, respectively, to accelerate recognition of a portion of actuarial losses deferred in accumulated other comprehensive loss associated with the U.S.

supplementary pension plan.

We calculate net periodic benefit cost for a given fiscal year based on assumptions developed at the end of the previous fiscal year.

The following table sets forth the weighted average assumptions used in the calculation of net periodic benefit cost:

We calculate net periodic cost (benefit) for a given fiscal year based on assumptions developed at the end of the previous fiscal year.

The following table sets forth the weighted average assumptions used in the calculation of net periodic cost (benefit):

2024 2023 2022

6 unchanged sentences

Rate of compensation increase 3.5 % 3.4 % 3.5 % 3.4 % 3.5 % 3.3 %

Table of Conte n t s

The projected benefit obligation ("PBO") is the actuarial present value of benefits attributable to employee service rendered to date, including the effects of estimated future salary increases.

12 unchanged sentences

Amendments 1.3 — 0.3 7.0

Actuarial (gain) loss ( 68.3 ) ( 80.1 ) ( 793.8 ) ( 575.2 )

Actuarial loss (gain) 296.2 50.7 ( 68.3 ) ( 80.1 )

Curtailments — — — ( 14.8 )

23 unchanged sentences

Net Liability Recognized ($ 80.1 ) $ 35.8 ($ 49.8 ) ($ 28.4 )

($ 49.8 ) ($ 28.4 ) ($ 46.8 ) ($ 15.5 )

Table of Conte n t s

The changes in plan assets and benefit obligation that have been recognized in other comprehensive income on a pretax basis during fiscal years 2024 and 2023 consist of the following:

1 unchanged sentence

International

Net actuarial (gain) loss arising during the period ($ 2.6 ) $ 7.0 $ 152.8 ($ 9.3 )

Net actuarial loss (gain) arising during the period $ 11.9 ($ 56.5 ) ($ 2.6 ) $ 7.0

Amortization of net actuarial loss ( 58.4 ) ( 14.1 ) ( 61.1 ) ( 12.2 )

3 unchanged sentences

The net actuarial gains and losses represent the actual changes in the estimated obligation and plan assets that have not yet been recognized in the consolidated income statements and are included in accumulated other comprehensive loss.

Actuarial losses arising during fiscal year 2023 are primarily attributable to lower than expected returns on plan assets that were partially offset by higher discount rates.

Actuarial losses arising during fiscal year 2024 are primarily attributable to higher than expected returns on plan assets that were partially offset by lower discount rates.

Accumulated actuarial gains and losses that exceed a corridor are amortized over the average remaining service period of active U.S.

participants, which was approximately seven years as of 30 September 2023.

participants, which was approximately six years as of 30 September 2024.

participants, accumulated actuarial gains and losses that exceed a corridor are amortized over the average remaining life expectancy, which was approximately 22 years as of 30 September 2024.

22 unchanged sentences

The ABO and PBO related to these plans as of 30 September 2024 were $ 55.4 and $ 59.9 , respectively.

Table of Conte n t s

As of 30 September 2024, the U.S.

salaried pension plan had both a PBO and ABO in excess of plan assets.

As of 30 September 2023, the U.S.

salaried pension plan had plan assets in excess of ABO.

Pension Plan Assets

7 unchanged sentences

As of 30 September 2024, the U.S pension plan was at target with respect to the fixed income securities portfolio.

The company continues to monitor the investment portfolio and various investment markets and will take action accordingly.

We continue to monitor the investment portfolio and various investment markets and will take action accordingly.

Assets are routinely rebalanced through contributions, benefit payments, and otherwise as deemed appropriate.

19 unchanged sentences

plan, which represents approximately 80 % of the assets of our International plans, was 4.3 % and was derived from expected equity and debt security returns.

Table of Conte n t s

The table below summarizes pension plan assets measured at fair value by asset class (see Note 16, Fair Value Measurements , for definition of the levels):

40 unchanged sentences

The mutual funds are deemed to be actively traded and are classified as Level 1 assets.

Table of Conte n t s

Equity Pooled Funds

33 unchanged sentences

Actual benefit payments may vary significantly from these estimates.

Table of Conte n t s

Defined Contribution Plans

24 unchanged sentences

We are involved in various legal proceedings, including commercial, competition, environmental, intellectual property, regulatory, product liability, and insurance matters.

We do not currently believe there are any legal proceedings, individually or in the aggregate, that are reasonably possible to have a material impact on our financial condition, results of operations, or cash flows.

We do not currently believe there are any legal proceedings for which it is reasonably possible, individually or in the aggregate, to have a material impact on our financial condition, results of operations, or cash flows.

In September 2010, the Brazilian Administrative Council for Economic Defense ("CADE") issued a decision against our Brazilian subsidiary, Air Products Brasil Ltda., and several other Brazilian industrial gas companies for alleged anticompetitive activities.

CADE imposed a civil fine of R$ 179.2 million (approximately $ 36 at 30 September 2023) on Air Products Brasil Ltda.

CADE imposed a civil fine of R$ 179.2 (approximately $ 33 at 30 September 2024) on Air Products Brasil Ltda.

This fine was based on a recommendation by a unit of the Brazilian Ministry of Justice, following an investigation beginning in 2003, which alleged violation of competition laws with respect to the sale of industrial and medical gases.

6 unchanged sentences

As a result, no provision has been made in the consolidated financial statements.

In the event of an adverse final judgment, we estimate the maximum possible loss to be the full amount of the fine of R$ 179.2 million (approximately $ 36 at 30 September 2023) plus interest accrued thereon until final disposition of the proceedings.

Additionally, in April 2023, we received a favorable ruling from a Texas state court in litigation involving disputed energy management charges related to Winter Storm Uri, a severe winter weather storm that impacted the U.S.

In the event of an adverse final judgment, we estimate the maximum possible loss to be the full amount of the fine of R$ 179.2 (approximately $ 33 at 30 September 2024) plus interest accrued thereon until final disposition of the proceedings.

Additionally, during the third quarter of fiscal year 2024, we settled a dispute regarding energy management charges related to a severe winter weather storm that impacted the U.S.

Gulf Coast in February 2021.

The ruling is subject to appeal and had no impact on our consolidated financial statements for the twelve months ended 30 September 2023.

Table of Conte n t s

As a result of the settlement, we recognized a gain of $ 7.7 that is reflected within "Other income (expense), net" on our consolidated income statements for the twelve months ended 30 September 2024.

We collected the settlement in full in July 2024.

Environmental

In the normal course of business, we are involved in legal proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA," the federal Superfund law), Resource Conservation and Recovery Act ("RCRA"), and similar state and foreign environmental laws relating to the designation of certain sites for investigation or remediation.

Presently, there are 27 sites on which a final settlement or remediation has not been achieved where we, usually along with others, have been designated a potentially responsible party by environmental authorities or are otherwise engaged in investigation or remediation, including cleanup activity at certain of our current and former manufacturing sites.

In the normal course of business, we are involved in legal proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA," the federal Superfund law), Resource Conservation and Recovery Act ("RCRA"), and similar state environmental laws relating to the designation of certain sites for investigation or remediation.

Presently, there are 26 sites on which a final settlement or remediation has not been achieved where we, usually along with others, have been designated a potentially responsible party by environmental authorities or are otherwise engaged in investigation or remediation, including cleanup activity at certain of our former manufacturing sites.

We continually monitor these sites for which we have environmental exposure.

11 unchanged sentences

We recognized a before-tax expense of $ 42 in fiscal year 2006 in results from discontinued operations and recorded an environmental accrual of $ 42 in continuing operations on the consolidated balance sheets.

During the second quarter of fiscal year 2020, we completed an updated cost review of the environmental remediation status at the Pace facility.

The review was completed in conjunction with requirements to maintain financial assurance per the Consent Order issued by the FDEP discussed below.

Based on our review, we expect ongoing activities to continue for 30 years.

Additionally, we will require near-term spending to install new groundwater recovery wells and ancillary equipment, in addition to future capital to consider the extended time horizon for remediation at the site.

As a result of these changes, we increased our environmental accrual for this site by $ 19 in continuing operations on the consolidated balance sheets and recognized a before-tax expense of $ 19 in results from discontinued operations in the second quarter of fiscal year 2020.

There have been no significant changes to the estimated exposure range related to the Pace facility since the second quarter of fiscal year 2020.

We have implemented many of the remedial corrective measures at the Pace facility required under 1995 Consent Orders issued by the FDEP and the USEPA.

In the first quarter of 2015, we entered into a consent order with the FDEP requiring us to continue our remediation efforts at the Pace facility and complete a cost review every five years .

In the fourth quarter of fiscal year 2024, we completed an updated cost review of the environmental remediation status at the Pace facility.

Based on our review, we expect ongoing activities to continue for an additional five years for an aggregate period of 30 years.

Additionally, we increased our estimate of near-term spending for an improved groundwater recovery system and future annual costs due to higher inflation.

As a result of these changes, we increased our environmental accrual for this site by $ 19.4 in continuing operations on the consolidated balance sheets and recognized a before-tax expense of $ 19.4 in results from discontinued operations.

We have implemented many of the remedial corrective measures at the Pace facility required under the 1995 consent orders issued by the FDEP and the USEPA.

Contaminated soils have been bioremediated, and the treated soils have been secured in a lined on-site corrective action management unit.

Several groundwater recovery systems have been installed to contain and remove contamination from groundwater.

We completed an extensive assessment of the site to determine the efficacy of existing measures, what additional corrective measures may be needed, and whether newer remediation technologies that were not available in the 1990s might be suitable to more quickly and effectively remediate groundwater.

Based on assessment results, we completed a focused feasibility study that has identified alternative approaches that may more effectively remove contaminants.

We continue to review alternative remedial approaches with the FDEP and completed additional field work during 2021 to support the design of an improved groundwater recovery network with the objective of targeting areas of higher contaminant concentration and avoiding areas of high groundwater iron which has proven to be a significant operability issue for the project.

The design of the optimized recovery system was initiated in fiscal year 2023 with construction expected to begin in fiscal year 2025.

In the first quarter of 2015, we entered into a new Consent Order with the FDEP requiring us to continue our remediation efforts at the Pace facility, along with the completion of a cost review every 5 years.

Table of Conte n t s

At 30 September 2023, $ 4.5 of the environmental accrual was related to the Piedmont site.

On 30 June 2008, we sold our Elkton, Maryland, and Piedmont, South Carolina, production facilities and the related North American atmospheric emulsions and global pressure sensitive adhesives businesses.

In connection with the sale, we recognized a liability for retained environmental obligations associated with remediation activities at the Piedmont site.

This site is under active remediation for contamination caused by an insolvent prior owner.

We are required by the South Carolina Department of Health and Environmental Control ("SCDHEC") to address both contaminated soil and groundwater.

Numerous areas of soil contamination have been addressed, and contaminated groundwater is being recovered and treated.

The SCDHEC issued its final approval to the site-wide feasibility study on 13 June 2017 and the Record of Decision for the site on 27 June 2018, after which we signed a Consent Agreement Amendment memorializing our obligations to complete the cleanup of the site.

Remediation has started in accordance with the design, which includes in-situ chemical oxidation treatment, as well as soil vapor extraction to remove volatile organic compounds from the unsaturated soils beneath the impacted areas of the plant.

We estimate that source area remediation and groundwater recovery and treatment will continue through 2029.

Thereafter, we expect this site to go into a state of monitored natural attenuation through 2047.

We recognized a before-tax expense of $ 24 in 2008 as a component of income from discontinued operations and recorded an environmental liability of $ 24 in continuing operations on the consolidated balance sheets.

There have been no significant changes to the estimated exposure.

At 30 September 2023, $ 10.5 of the environmental accrual was related to the Pasadena site.

During the fourth quarter of 2012, management committed to permanently shutting down our polyurethane intermediates ("PUI") production facility in Pasadena, Texas.

We continue to review alternative remedial approaches with the FDEP, and we completed additional field work during 2021 to support the design of an improved groundwater recovery system and well network.

This network targets areas of higher contaminant concentration and avoids areas of high groundwater iron which has proven to be a significant operability issue for the project.

In the fourth quarter of fiscal year 2024, we completed an updated cost review which resulted in a change in assumptions regarding future operating costs as discussed above.

The costs we are incurring based on the fiscal year 2024 review are higher than our previous estimates.

The design of the optimized recovery system was completed in 2024 with construction expected to begin in fiscal year 2025.

In fiscal years 2025 and 2026, we expect to connect the additional groundwater recovery wells and ancillary equipment to the existing groundwater recovery system.

At 30 September 2024, $ 10.3 of the environmental accrual was related to a production facility site in Pasadena, Texas.

During fiscal year 2012, management committed to permanently shutting down our polyurethane intermediates ("PUI") production facility in Pasadena, Texas.

In shutting down and dismantling the facility, we have undertaken certain obligations related to soil and groundwater contaminants.

23 unchanged sentences

Balance at 30 September 2024 $ 334.7

Table of Conte n t s

Warranties and Guarantees

8 unchanged sentences

Refer to Note 3, Variable Interest Entities, for additional information regarding the project.

We are party to an equity support agreement and operations guarantee related to an air separation facility constructed in Trinidad for a venture in which we own 50 %.

At 30 September 2023, maximum potential payments under joint and several guarantees were $ 22.0 .

Exposures under the guarantees will be completely extinguished by 2024.

We also have a long-term sale of equipment contract with the JIGPC joint venture to engineer, procure, and construct the industrial gas facilities that will supply gases to Aramco.

18 unchanged sentences

As a result, we do not believe these purchase obligations would have a material effect on our financial condition or results of operations.

Table of Conte n t s

CAPITAL STOCK

3 unchanged sentences

This program does not have a stated expiration date.

If we repurchase shares pursuant to this authorization, we may do so under Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended, through repurchase agreements established with one or more brokers.

We did not purchase any of our outstanding shares during fiscal year 2023.

At 30 September 2023, $ 485.3 in share repurchase authorization remained available.

If we repurchase shares pursuant to this authorization, we may do so under Rules 10b5-1 and 10b-18 under the Securities Exchange Act through repurchase agreements established with one or more brokers.

We have not purchased any of our outstanding shares under this program since fiscal year 2013.

As of 30 September 2024, $ 485.3 in share repurchase authorization remained available.

A summary of the changes in common shares issued and outstanding in fiscal year 2024 is presented below:

24 unchanged sentences

We grant deferred stock unit awards with a two - to five-year deferral period that are subject to payout upon death, disability, or retirement.

Deferred stock units issued to outside directors are paid after service on the Board of Directors ends at the time elected by the director (not to exceed ten years after service ends).

Deferred stock units issued to outside directors are paid after their service on the Board of Directors ends at the time elected by the director (not to exceed ten years after service ends).

We generally expense the grant-date fair value of these awards on a straight-line basis over the vesting period;

2 unchanged sentences

Forfeitures have not been significant historically.

Table of Conte n t s

Market-based deferred stock units vest as long as the employee continues to be employed by the Company and upon the achievement of the performance target.

The performance target, which is approved by the Compensation Committee, is our share price appreciation and dividends paid, or "total shareholder return," in relation to the S&P 500 Index (for fiscal year 2022 and 2023 awards) or a defined peer group (for awards granted prior to fiscal year 2022) over a three-year performance period beginning 1 October of the fiscal year of grant.

The performance target, which is approved by the Compensation Committee, is our share price appreciation and dividends paid, or "total shareholder return," in relation to the S&P 500 Index over a three-year performance period beginning 1 October of the fiscal year of grant.

We granted 102,120 , 85,612 , and 74,364 market-based deferred stock units in fiscal years 2024, 2023, and 2022, respectively.

17 unchanged sentences

Forfeited ( 91 ) 252.23

Adjusted 10 315.33

Deferred stock units outstanding at 30 September 2024 758 $ 293.99

16 unchanged sentences

The intrinsic value of stock options exercised during fiscal years 2024, 2023, and 2022 was $ 35.1 , $ 53.5 , and $ 20.2 , respectively.

Table of Conte n t s

Compensation cost is generally recognized over the stated vesting period consistent with the terms of the arrangement, which is either on a straight-line or graded-vesting basis.

9 unchanged sentences

Balance at 30 September 2021 ($ 28.3 ) ($ 893.8 ) ($ 593.8 ) ($ 1,515.9 )

Other comprehensive income before reclassifications 3.3 267.3 274.3 544.9

Amounts reclassified from AOCL 43.5 — 74.6 118.1

Net current period other comprehensive income $ 46.8 $ 267.3 $ 348.9 $ 663.0

Amount attributable to noncontrolling interests 20.6 18.3 ( 0.1 ) 38.8

Balance at 30 September 2021 ($ 28.3 ) ($ 893.8 ) ($ 593.8 ) ($ 1,515.9 )

Other comprehensive loss before reclassifications ( 120.3 ) ( 1,230.5 ) ( 112.2 ) ( 1,463.0 )

1 unchanged sentence

Net current period other comprehensive loss ($ 28.9 ) ($ 1,223.2 ) ($ 47.4 ) ($ 1,299.5 )

Amount attributable to noncontrolling interest 14.7 ( 44.6 ) 0.6 ( 29.3 )

Amount attributable to noncontrolling interests 14.7 ( 44.6 ) 0.6 ( 29.3 )

Balance at 30 September 2022 ($ 71.9 ) ($ 2,072.4 ) ($ 641.8 ) ($ 2,786.1 )

2 unchanged sentences

Net current period other comprehensive income $ 325.3 $ 150.8 $ 44.9 $ 521.0

Amount attributable to noncontrolling interest 192.3 ( 8.3 ) 0.3 184.3

Amount attributable to noncontrolling interests

192.3 ( 8.3 ) 0.3 184.3

Balance at 30 September 2023 $ 61.1 ($ 1,913.3 ) ($ 597.2 ) ($ 2,449.4 )

Other comprehensive (loss) income before reclassifications ( 159.5 ) 381.5 32.0 254.0

Amounts reclassified from AOCL ( 33.7 ) ( 1.5 ) 55.9 20.7

Net current period other comprehensive (loss) income ($ 193.2 ) $ 380.0 $ 87.9 $ 274.7

Amount attributable to noncontrolling interests

( 159.3 ) 12.0 0.3 ( 147.0 )

Balance at 30 September 2024 $ 27.2 ($ 1,545.3 ) ($ 509.6 ) ($ 2,027.7 )

The table below summarizes the reclassifications out of AOCL and the affected line item on the consolidated income statements:

8 unchanged sentences

Currency Translation Adjustment

Gain on sale of business ($ 1.5 ) $ — $ —

Business and asset actions — ( 0.3 ) 5.1

5 unchanged sentences

Refer to Note 18, Retirement Benefits , for additional information.

Table of Conte n t s

EARNINGS PER SHARE

2 unchanged sentences

Net income from continuing operations $ 3,842.1 $ 2,292.8 $ 2,243.5

Net income from discontinued operations 7.4 12.6 70.3

Net (loss) income from discontinued operations ( 13.9 ) 7.4 12.6

Net Income attributable to Air Products $ 3,828.2 $ 2,300.2 $ 2,256.1

$ 2,300.2 $ 2,256.1 $ 2,099.1

Denominator ( in millions )

6 unchanged sentences

Basic EPS from continuing operations $ 17.27 $ 10.31 $ 10.11

$ 10.31 $ 10.11 $ 9.16

Basic EPS from discontinued operations ( 0.06 ) 0.03 0.06

0.03 0.06 0.32

Basic EPS attributable to Air Products $ 17.21 $ 10.35 $ 10.16

$ 10.35 $ 10.16 $ 9.47

Diluted EPS from continuing operations $ 17.24 $ 10.30 $ 10.08

$ 10.30 $ 10.08 $ 9.12

Diluted EPS from discontinued operations ( 0.06 ) 0.03 0.06

0.03 0.06 0.32

Diluted EPS attributable to Air Products $ 17.18 $ 10.33 $ 10.14

$ 10.33 $ 10.14 $ 9.43

(A) EPS is calculated independently for each component and may not sum to total EPS due to rounding.

3 unchanged sentences

Antidilutive outstanding share-based awards were not material in fiscal years 2024, 2023 and 2022.

Table of Conte n t s

The table below summarizes income from U.S.

17 unchanged sentences

Total Deferred Tax (Benefit) Provision ( 69.3 ) ( 24.7 ) 32.3

( 24.7 ) 32.3 94.0

Total Income Tax Provision $ 944.9 $ 551.2 $ 500.8

$ 551.2 $ 500.8 $ 462.8

Cash Paid for Taxes (Net of Cash Refunds)

1 unchanged sentence

Fiscal year 2023 and 2022 reflect income tax refunds associated with discontinued operations of $ 0.6 and $ 59.6 , respectively.

Income tax payments for fiscal year 2024 include cash paid to purchase $ 50.0 of transferable tax credits that were used to offset estimated tax payments in 2024.

Additional income tax payments related to the gain on the sale of the LNG business will be paid in fiscal year 2025.

Tax Cuts and Jobs Act

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As of 30 September 2024, our outstanding liability for the deemed repatriation tax was $ 101.8 , of which $ 60.8 is presented within noncurrent liabilities on our consolidated balance sheets.

We are paying this obligation in installments over three remaining years.

Inflation Reduction Act and CHIPS and Science Act of 2022

In August 2022, the U.S.

Inflation Reduction Act of 2022 and the CHIPS and Science Act of 2022 were signed into law.

These acts include, among other provisions, a corporate alternative minimum tax of 15%, an excise tax on the repurchase of corporate stock, various climate and energy provisions, and incentives for investment in semiconductor manufacturing.

We expect to realize benefits for carbon sequestration and clean hydrogen production once our new projects in these areas come on-stream in the U.S.

Table of Conte n t s

We are paying this obligation in installments over two remaining years.

Effective Tax Rate

11 unchanged sentences

Effective Tax Rate 19.6 % 19.1 % 18.2 %

The sale of our LNG business resulted in a gain of $ 1,575.6 , which increased our income from continuing operations before taxes.

This increase diluted the impact of recurring effective tax rate reconciling items for fiscal year 2024.

Equity affiliates’ income, which is primarily presented net of income taxes on our consolidated income statements, favorably impacts our effective tax rate.

This impact increased over the years presented primarily due to our phased investment in the JIGPC joint venture.

This impact decreased in fiscal year 2024 despite an overall increase in equity affiliates' income.

The reduced impact is the result of the increase in our income from continuing operations before taxes caused primarily by the sale of our LNG business.

See Note 10, Equity Affiliates , for additional information.

5 unchanged sentences

benefit for related foreign tax credits.

The impact has decreased primarily due to an increase in our U.S.

benefit for foreign tax credits.

Share-based compensation reflects the impact from recognition of $ 3.6 , $ 10.2 , and $ 18.3 of excess tax benefits in our provision for income taxes during fiscal years 2024, 2023, and 2022, respectively.

3 unchanged sentences

Partially offsetting the valuation allowance cost was a $ 15.9 income tax benefit from a tax election related to a non-U.S.

In fiscal year 2021, Other includes net tax benefits of $ 21.5 , including interest, resulting from the release of U.S.

unrecognized tax benefits upon expiration of the statute of limitations on uncertain tax positions taken in prior years.

Table of Conte n t s

Fiscal year 2024 includes business and asset actions recorded at applicable statutory income tax rates.

Deferred Tax Assets and Liabilities

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Gross Deferred Tax Assets

Retirement benefits and compensation accruals $ 75.2 $ 77.2

Tax loss carryforwards $ 132.2 $ 141.8

Tax credits and other tax carryforwards 46.2 39.2

Revenue recognition 100.3 38.8

Reserves and accruals 83.1 65.2

Other 81.3 68.3

Retirement benefits and compensation accruals 62.5 75.2

Tax credits and other tax carryforwards 45.5 46.2

Currency losses 12.6 —

Valuation allowance ( 158.4 ) ( 153.3 )

Other 44.6 42.5

Deferred Tax Assets $ 322.4 $ 256.4

14 unchanged sentences

Net Deferred Income Tax Liability $ 1,032.1 $ 1,106.4

Deferred tax assets for "Tax loss carryforwards" decreased primarily due to the utilization of substantially all U.S.

capital losses carryforwards against the gain on sale of our LNG business.

The deferred tax assets for "Reserves and accruals" were impacted by changes in tax deferred deductions.

Deferred tax assets for "Currency losses" changed from "Currency gains" in the prior year primarily due to movements in unrealized foreign currency losses for income tax purposes.

Deferred tax assets for "Revenue recognition" increased primarily due to timing differences on proceeds associated with the sale of the LNG business.

Deferred tax liabilities related to "Plant and equipment" increased due to the impact of accelerated tax depreciation deductions in excess of book depreciation.

Deferred tax liabilities related to "Intangible assets" decreased primarily due to the impact of capitalizing research and development expenditures for U.S tax purposes.

Deferred tax liabilities related to "Plant and equipment" increased due to the impact of accelerated tax depreciation deductions in excess of book depreciation, primarily in the United States.

The increase was partially offset with book charges in excess of tax related to our business and asset actions that included certain costs for which we could not recognize an income tax benefit and were subject to a valuation allowance.

Deferred tax assets for "Tax loss carryforwards" increased primarily due to losses in certain Chinese subsidiaries.

A portion of these losses were subject to a valuation allowance for which we could not recognize an income tax benefit.

The deferred tax components for "Reserves and accruals" and "Other" were impacted by changes in tax deferred deductions and the timing of revenue recognition for local tax and accounting purposes.

"Unremitted earnings of foreign entities" increased primarily due to the realization of an income tax benefit from a tax election related to a non-U.S.

subsidiary that was a deferred benefit in the prior year.

As of 30 September 2024 , we had the following deferred tax assets for certain tax credits:

4 unchanged sentences

Of the $ 18.1 credits in foreign jurisdictions, $ 18.0 have indefinite carryforward periods.

Table of Conte n t s

As of 30 September 2024, we had the following loss carryforwards:

1 unchanged sentence

State Net Operating Loss $ 206.7 2025 - 2040

State Capital Loss 35.2 2025 - 2027

Federal Capital Loss 86.3 2025 - 2027

Foreign Net Operating Loss 347.3 2025 - 2041;

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The valuation allowance was $ 158.4 and $ 153.3 as of 30 September 2024 and 2023, respectively.

As of 30 September 2023, the balance primarily related to $ 33.6 of foreign credits and loss carryforwards, $ 18.7 of U.S.

federal foreign income tax credits, $ 49.4 related to foreign capital losses, and $ 34.7 related to other charges from our Business and Asset Actions.

As of 30 September 2024, the balance primarily related to $ 43.8 of foreign loss carryforwards and credits, $ 18.2 of U.S.

federal foreign income tax credits, $ 53.5 related to foreign capital losses, and $ 39.9 related to other deferred tax assets including those established during fiscal year 2023 from our Business and Asset Actions.

If events warrant the reversal of the valuation allowance, it would result in a reduction of tax expense.

We believe it is more likely than not that future earnings and reversal of deferred tax liabilities will be sufficient to utilize our deferred tax assets, net of existing valuation allowance, as of 30 September 2024.

federal and U.S.

state capital losses primarily related to a loss realized upon the divestiture of our Russian subsidiary in fiscal year 2022.

We believe it is more likely than not that we will recognize sufficient U.S.

capital gain income in the future to utilize our capital losses before expiration.

We record income taxes on the undistributed earnings of our foreign subsidiaries and corporate joint ventures unless those earnings are indefinitely reinvested.

21 unchanged sentences

This was primarily due to a $ 10.6 reduction caused by changes to income tax rates.

Table of Conte n t s

In fiscal year 2021, reserves for unrecognized tax benefits decreased $ 104.6 due to statute of limitation expirations.

We released reserves of $ 65.6 related to the sale of PMD, $ 8.2 associated with our former Energy-from-Waste business (“EfW”), and $ 27.5 for other reserves, including those associated with a tax election benefit related to a non-U.S.

subsidiary in 2017.

Upon release of the reserves related to PMD and EfW, we recorded income tax benefits of $ 51.8 and $ 8.2 , respectively, as a component of discontinued operations.

The PMD reserve was net of related deferred tax assets of $ 13.8 .

The release of other reserves of $ 27.5 was net of related deferred tax assets of $ 8.4 and resulted in an income tax benefit, including interest, of $ 21.5 .

Interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense and totaled $ 1.8 , $ 5.0 , and $ 1.2 in fiscal years 2024, 2023, and 2022, respectively.

Our 2021 expense reflects a benefit from the reversal of accrued interest on reserves released during the period.

Our accrued balance for interest and penalties was $ 28.5 and $ 26.3 as of 30 September 2024 and 2023, respectively.

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United Kingdom 2021 - 2024

Saudi Arabia 2019 - 2024

China 2011 - 2024

3 unchanged sentences

Chile 2020 - 2024

Table of Conte n t s

SUPPLEMENTAL INFORMATION

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Refer to Note 17, Debt , for information concerning debt owed to related parties.

Facility Closure

During the second quarter of fiscal year 2021, we recorded a charge of $ 23.2 primarily for a noncash write-down of assets associated with a contract termination in the Americas segment.

This charge is reflected as "Facility closure" on our consolidated income statements for the fiscal year ended 30 September 2021 and was not recorded in the results of the Americas segment.

Supplemental Balance Sheet Information

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30 September 2024 2023

World Energy deferred project costs

$ 329.4 $ 202.9

Pension benefits 200.0 120.0

Long-term deposits on plant and equipment — 200.0

Deferred tax assets 127.8 159.6

5 unchanged sentences

Other noncurrent assets $ 1,171.5 $ 1,229.9

Table of Conte n t s

Payables and Accrued Liabilities

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Other noncurrent liabilities $ 1,350.5 $ 1,118.0

Table of Conte n t s

BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION

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Except for the Corporate and other segment, each reportable segment meets the definition of an operating segment and does not include the aggregation of multiple operating segments.

Our Corporate and other segment includes the aggregation of three operating segments that meet the aggregation criteria under GAAP.

Our Corporate and other segment includes the aggregation of two operating segments that meet the aggregation criteria under GAAP.

Industrial Gases – Regional

The results of our regional industrial gas businesses are reflected in the Americas, Asia, Europe, and Middle East and India segments.

These businesses produce and sell gases to diversified customers in dozens of industries, including those in refining, chemicals, metals, electronics, manufacturing, medical, and food.

Our industrial gases business is organized and operated regionally in the Americas, Asia, Europe, and Middle East and India segments.

This business produces and sells gases to diversified customers in dozens of industries, including those in refining, chemicals, metals, electronics, manufacturing, medical, and food.

Our industrial gas portfolio includes atmospheric gases such as oxygen, nitrogen, and argon;

process gases such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas (a mixture of hydrogen and carbon monoxide), and specialty gases.

We offer our industrial gas products through a variety of supply modes as described in Note 6, Revenue Recognition .

We offer our industrial gas products through either the on-site gases supply mode or the merchant gases supply mode, both of which are described in Note 7, Revenue Recognition .

The industrial gases business develops, builds, and operates equipment for the production or processing of gases.

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We mitigate electricity, natural gas, and hydrocarbon price fluctuations contractually through pricing formulas, surcharges, cost pass-through provisions, and tolling arrangements.

Our regional industrial gas segments include our share of the results of several joint ventures accounted for under the equity method.

The largest of these joint ventures operate in China, India, Italy, Mexico, Saudi Arabia, South Africa, and Thailand.

Each of the regional industrial gases segments competes against global industrial gas companies as well as regional competitors.

3 unchanged sentences

The Corporate and other segment includes sales of cryogenic and gas processing equipment for air separation that is sold worldwide to customers in a variety of industries, including chemical and petrochemical manufacturing, oil and gas recovery and processing, and steel and primary metals processing.

Our Corporate and other segment also includes the results of our liquefied natural gas ("LNG"), turbo machinery equipment and services, and distribution sale of equipment businesses.

Competition for our sale of equipment businesses is based primarily on technological performance, service, technical know-how, price, and performance guarantees.

Our Corporate and other segment also includes the results of our turbo machinery and distribution sale of equipment businesses.

Through 30 September 2024, this segment also included the results of the LNG process technology and equipment business that was divested during the fourth quarter of fiscal year 2024.

Refer to Note 4, Gain on Sale of Business , for additional information.

Competition for our sale of equipment businesses is based primarily on plant efficiency and technological performance, service, technical know-how, and price, as well as schedule and plant performance guarantees.

Our Corporate and other segment also incurs costs to provide corporate support functions and global management activities that benefit all segments.

2 unchanged sentences

In addition to assets of the global businesses included in this segment, other assets include cash and cash items, short-term investments, deferred tax assets, and financial instruments.

Equity Affiliates

Our reporting segments include our share of the results of several joint ventures accounted for under the equity method.

The largest of these joint ventures operate in Algeria, China, India, Italy, Mexico, Saudi Arabia, South Africa, and Thailand.

We do not have a homogeneous customer base or end market, and no single customer accounts for more than 10% of our consolidated sales.

Table of Conte n t s

Business Segment Information

28 unchanged sentences

Total $ 2,947.5 $ 2,739.2 $ 2,412.5

Facility closure — — ( 23.2 )

Gain on sale of business

Business and asset actions ( 57.0 ) ( 244.6 ) ( 73.7 )

Gain on exchange with joint venture partner — — 36.8

Consolidated Operating Income $ 4,466.1 $ 2,494.6 $ 2,338.8

2 unchanged sentences

Fiscal Year Ended 30 September 2024 2023 2022

2023 2022 2021

Total $ 647.7 $ 604.3 $ 496.3

1 unchanged sentence

Consolidated Equity Affiliates' Income $ 647.7 $ 604.3 $ 481.5

Table of Conte n t s

Geographic Information

2 unchanged sentences

Fiscal Year Ended 30 September 2024 2023 2022

2023 2022 2021

United States $ 4,914.0 $ 5,234.2 $ 5,230.2

10 unchanged sentences

(A) "Long-lived assets" represents plant and equipment, net.

Table of Conte n t s

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data