Share-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Recognized Share-Based Compensation Cost

Share-based compensation cost recognized in the consolidated income statements is summarized below:

	2017			2016			2015
Before-Tax Share-Based Compensation Cost – Total	$	40.7		$	37.6		$	45.7
Before-Tax Share-Based Compensation Cost – Discontinued Operations	.8			6.6			6.2
Before-Tax Share-Based Compensation Cost – Continuing Operations	$	39.9		$	31.0		$	39.5
Income tax benefit – Continuing Operations	(14.0		)	(10.8		)	(13.8		)
After-Tax Share-Based Compensation Cost – Continuing Operations	$	25.9		$	20.2		$	25.7

Schedule of Before-Tax Share-Based Compensation Costs by Type of Program

On a total company basis, before-tax share-based compensation cost by type of program was as follows:

	2017		2016		2015
Deferred stock units	$	34.5	$	29.9	$	28.8
Stock options	1.4		4.2		12.6
Restricted stock	4.8		3.5		4.3
Before-Tax Share-Based Compensation Cost – Total	$	40.7	$	37.6	$	45.7

Schedule of Assumptions for Fair Value of Market-Based Deferred Stock Units

The calculation of the fair value of market-based deferred stock units used the following assumptions:

	2017		2016
Expected volatility	20.6	%	20.5	%
Risk-free interest rate	1.4	%	1.2	%
Expected dividend yield	2.5	%	2.2	%

Schedule of Deferred Stock Units and Restricted Stock Activity

Deferred Stock Units	Shares (000)		Weighted Average Grant-Date Fair Value
Outstanding at 30 September 2016	1,001		$	119.44
Equitable adjustment upon separation(A)	65		—
Surrender upon separation(B)	(89	)	132.88
Granted	283		148.89
Paid out	(235	)	83.65
Forfeited/adjustments	(50	)	121.99
Outstanding at 30 September 2017	975		$	127.29

^(A)  Applicable deferred stock units have been adjusted by the conversion ratio of 1.071 to preserve the intrinsic value immediately before and after the spin-off of Versum.

^(B)  In connection with the spin-off of Versum, EMD employees surrendered their outstanding Air Products equity awards, which were converted into Versum equity awards of equivalent fair value.

A summary of restricted stock activity is presented below:

Restricted Stock	Shares (000)		Weighted Average Grant-Date Fair Value
Outstanding at 30 September 2016	85		$	128.16
Vested	(29	)	113.50
Outstanding at 30 September 2017	56		$	135.74

Schedule of Assumptions for Fair Value of Stock Options

Fair values of stock options were estimated using a Black Scholes model that used the assumptions noted in the table below. Expected volatility and expected dividend yield are based on actual historical experience of our stock and dividends over the historical period equal to the expected life. The expected life represents the period of time that options granted are expected to be outstanding based on an analysis of Company-specific historical exercise data. Ranges are used when certain groups of employees exhibit different behavior, such as timing of exercise. The risk-free rate is based on the U.S. Treasury Strips with terms equal to the expected time of exercise as of the grant date.

	2015
Expected volatility	30.3	%
Expected dividend yield	2.6	%
Expected life (in years)	7.5
Risk-free interest rate	2.2	%

Schedule of Stock Option Activity

A summary of stock option activity is presented below:

Stock Options	Shares (000)		Weighted Average Exercise Price
Outstanding at 30 September 2016	3,916		$	90.28
Equitable adjustment upon separation(A)	277		—
Surrender upon separation(B)	(102	)	97.63
Exercised	(886	)	80.76
Forfeited	(3	)	105.28
Outstanding at 30 September 2017	3,202		$	84.85
Exercisable at 30 September 2017	3,149		$	84.00

Stock Options	Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at 30 September 2017	4.3	$	213
Exercisable at 30 September 2017	4.3	$	212

^(A)  Applicable deferred stock units have been adjusted by the conversion ratio of 1.071 to preserve the intrinsic value immediately before and after the spin-off of Versum.

^(B)  In connection with the spin-off of Versum, EMD employees surrendered their outstanding Air Products equity awards, which were converted into Versum equity awards of equivalent fair value.