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Business Restructuring and Cost Reduction Actions
12 Months Ended
Sep. 30, 2017
Restructuring Charges [Abstract]  
Business Restructuring and Cost Reduction Actions
5.  BUSINESS RESTRUCTURING AND COST REDUCTION ACTIONS
The charges we record for business restructuring and cost reduction actions have been excluded from segment operating income.
Cost Reduction Actions
In fiscal year 2017, we recognized a net expense of $151.4. The year-to-date net expense included a charge of $154.8 for actions taken during fiscal year 2017, partially offset by the favorable settlement of the remaining $3.4 accrued balance associated with business restructuring actions taken in 2015. Asset actions of $88.5 included charges resulting from the write-down of an air separation unit in the Industrial Gases – EMEA segment that was constructed mainly to provide oxygen to one of the Energy-from-Waste plants, the planned sale of a non-industrial gas hardgoods business in the Industrial Gases – Americas segment, and the closure of a facility in the Corporate and other segment that manufactured liquefied natural gas (LNG) heat exchangers. During fiscal year 2017, severance and other benefits totaled $66.3 and related to the elimination or planned elimination of approximately 625 positions, primarily in the Corporate and other segment and in the Industrial Gases – EMEA segment. The actions in the Corporate and other segment were driven by the reorganization of our engineering, manufacturing, and technology functions.
The 2017 charge related to the segments as follows: $39.3 in Industrial Gases – Americas, $77.9 in Industrial Gases – EMEA, $.9 in Industrial Gases – Asia, $2.5 in Industrial Gases – Global, and $34.2 in Corporate and other.
In fiscal year 2016, we recognized an expense of $34.5 for severance and other benefits related to cost reduction actions which resulted in the elimination of approximately 610 positions. The expenses related primarily to the Industrial Gases – Americas segment and the Industrial Gases – EMEA segment.
The following table summarizes the carrying amount of the accrual for cost reduction actions at 30 September 2017:
  
 
Severance and
Other Benefits
 
Asset
Actions/Other
 
Total
2016 Charge
 
$
34.5

 
$

 
$
34.5

Amount reflected in pension liability
 
(.9
)
 

 
(.9
)
Cash expenditures
 
(21.6
)
 

 
(21.6
)
Currency translation adjustment
 
.3

 

 
.3

30 September 2016
 
$
12.3

 
$

 
$
12.3

2017 Charge
 
66.3

 
88.5

 
154.8

Noncash expenses
 

 
(84.2
)
 
(84.2
)
Amount reflected in pension liability
 
(2.0
)
 

 
(2.0
)
Amount reflected in other noncurrent liabilities
 

 
(2.2
)
 
(2.2
)
Cash expenditures
 
(35.7
)
 
(1.2
)
 
(36.9
)
Currency translation adjustment
 
(.3
)
 

 
(.3
)
30 September 2017
 
$
40.6

 
$
.9

 
$
41.5


Business Realignment and Reorganization
On 18 September 2014, we announced plans to reorganize the Company, including realignment of our businesses in new reporting segments and other organizational changes, effective as of 1 October 2014. As a result of this reorganization, we incurred severance and other charges.
In fiscal year 2015, we recognized an expense of $180.1. Severance and other benefits totaled $131.5 and related to the elimination of approximately 1,700 positions. Asset and associated contract actions totaled $48.6 and related primarily to a plant shutdown in the Corporate and other segment and the exit of a product line within the Industrial Gases – Global segment. The 2015 charges related to the segments as follows: $31.7 in Industrial Gases – Americas, $52.2 in Industrial Gases – EMEA, $10.3 in Industrial Gases – Asia, $37.0 in Industrial Gases – Global, and $48.9 in Corporate and other.
During the fourth quarter of 2014, an expense of $11.1 was incurred relating to the elimination of approximately 40 positions.
The following table summarizes the carrying amount of the accrual for the business realignment and reorganization at 30 September 2017:
 
 
Severance and
Other Benefits
 
Asset
Actions/Other
 
Total
2014 Charge
 
$
11.1

 
$

 
$
11.1

Cash expenditures
 
(1.7
)
 

 
(1.7
)
30 September 2014
 
$
9.4

 
$

 
$
9.4

2015 Charge
 
131.5

 
48.6

 
180.1

Amount reflected in pension liability
 
(11.2
)
 

 
(11.2
)
Noncash expenses
 

 
(40.2
)
 
(40.2
)
Cash expenditures
 
(100.3
)
 
(1.2
)
 
(101.5
)
Currency translation adjustment
 
(.4
)
 

 
(.4
)
30 September 2015
 
$
29.0

 
$
7.2

 
$
36.2

Cash expenditures
 
(28.6
)
 
(3.8
)
 
(32.4
)
Currency translation adjustment
 
(.4
)
 

 
(.4
)
30 September 2016
 
$

 
$
3.4

 
$
3.4

Accrual settlement
 

 
(3.4
)
 
(3.4
)
30 September 2017
 
$

 
$

 
$