8. SUMMARIZED FINANCIAL INFORMATION OF EQUITY AFFILIATES

The summarized financial information below is on a combined 100% basis and has been compiled based on financial statements of the companies accounted for by the equity method. The amounts presented include the accounts of the following equity affiliates:



Abdullah Hashim Industrial Gases & Equipment Co., Ltd. (25%);		INOX Air Products Limited (50%);
Air Products South Africa (Proprietary) Limited (50%);		Jazan Gas Projects Company (25%);
Bangkok Cogeneration Company Limited (49%);		Kulim Industrial Gases Sdn. Bhd. (50%);
Bangkok Industrial Gases Co., Ltd. (49%);		Sapio Produzione Idrogeno Ossigeno S.r.l. (49%);
Chengdu Air & Gas Products Ltd. (50%);		Tecnologia en Nitrogeno S. de R.L. de C.V. (50%);
Helios S.p.A. (49%);		Tyczka Industrie-Gases GmbH (50%);
High-Tech Gases (Beijing) Co., Ltd. (50%);		WuXi Hi-Tech Gas Co., Ltd. (50%);
INFRA Group (40%);		and principally, other industrial gas producers.



30 September			2017		2016
Current assets			$	1,333.2	$	1,436.7
Noncurrent assets			4,026.9		3,063.3
Current liabilities			666.8		694.8
Noncurrent liabilities			2,194.3		1,540.4

Year Ended 30 September	2017		2016		2015
Net sales	$	2,343.3	$	2,271.6	$	2,460.5
Sales less cost of sales	878.6		871.5		922.7
Operating income	509.5		482.1		512.4
Net income	343.5		334.1		343.5

The increase in noncurrent assets and noncurrent liabilities is primarily related to Jazan Gas Projects Company.

Dividends received from equity affiliates were $99.5, $95.9, and $50.5 in 2017, 2016, and 2015, respectively.

The investment in net assets of and advances to equity affiliates as of 30 September 2017 and 2016 included investment in foreign affiliates of $1,285.1 and $1,281.5, respectively.

As of 30 September 2017 and 2016, the amount of investment in companies accounted for by the equity method included equity method goodwill in the amount of $45.8 and $109.5, respectively. The decrease was primarily driven by an other-than-temporary impairment of our investment in an equity affiliate in Saudi Arabia discussed below.

Equity Affiliate Impairment Charge

During the third quarter of fiscal year 2017, Abdullah Hashim Industrial Gases & Equipment Co., Ltd. (AHG), a 25%‑owned equity affiliate in our Industrial Gases – EMEA segment, completed a review of its business plan and outlook. As a result of the revised business plan, we determined there was an other-than-temporary impairment of our investment in AHG and, therefore, recorded a noncash impairment charge of $79.5 to reduce the carrying value of our investment. This charge is reflected on our consolidated income statements within “Equity affiliates' income” and was not deductible for tax purposes. This charge has been excluded from segment results.

The decline in value results from expectations for lower future cash flows to be generated by AHG, primarily due to challenging economic conditions in Saudi Arabia, including the impacts of lower prices in the oil and gas industry, increased competition, and capital project growth opportunities not materializing as anticipated. The AHG investment was valued based on the results of the income and market valuation approaches.

The income approach utilized a discount rate based on a market-participant, risk-adjusted weighted average cost of capital, which considers industry required rates of return on debt and equity capital for a target industry capital structure adjusted for risks associated with size and geography. Other significant estimates and assumptions that drive our updated valuation of AHG include revenue growth rates and profit margins that were lower than those upon acquisition and our assessment of AHG's business improvement plan effectiveness.

Under the market approach, we estimated fair value based on market multiples of revenue and earnings derived from publicly-traded industrial gases companies engaged in similar lines of business, adjusted to reflect differences in size and growth prospects.

As of 30 September 2017, the carrying value of our investment in AHG is $66.7 and is reflected in our Industrial Gases – EMEA segment. The investment is reported in “Investment in net assets of and advances to equity affiliates” on our consolidated balance sheets.

There have been no other significant changes to our investments in equity affiliates during fiscal year 2017.

Jazan

On 19 April 2015, a joint venture between Air Products and ACWA Holding entered into a 20-year oxygen and nitrogen supply agreement to supply Saudi Aramco’s oil refinery and power plant being built in Jazan, Saudi Arabia. Air Products owns 25% of the joint venture and guarantees the repayment of its share of an equity bridge loan. ACWA also guarantees their share of the loan. We determined that the joint venture is a variable interest entity, for which we are not the primary beneficiary.

As of 30 September 2017 and 2016, other noncurrent liabilities included $94.4 for our obligation to make future equity contributions based on our proportionate share of the advances received by the joint venture under the loan. During fiscal year 2016 and 2015, we recorded noncash transactions that resulted in an increase of $26.9 and $67.5, respectively, to our investment in net assets of and advances to equity affiliates. These noncash transactions have been excluded from the consolidated statement of cash flows. In total, we expect to invest approximately $100 in this joint venture. There has been no change to our investment during fiscal year 2017.

Air Products has a long-term sale of equipment contract with the joint venture to engineer, procure, and construct the industrial gas facilities that will supply the gases to Saudi Aramco. Sales related to this contract are included in the results of our Industrial Gases – Global segment and were approximately $540 and $300 during fiscal year 2017 and 2016, respectively. Sales related to this contract were not material during fiscal year 2015.