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Supplemental Information
 3 Months Ended
Dec. 31, 2022
Disclosure Text Block Supplement [Abstract]  
Supplemental Information SUPPLEMENTAL INFORMATION
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 powered by renewable energy located in the NEOM city of the Kingdom of Saudi Arabia. We, along with our joint venture partners, ACWA Power and NEOM Company, are equal owners in the newly formed NEOM Green Hydrogen Company joint venture (“NGHC”) that will develop, construct, own, operate, and finance the NEOM project. The NEOM project is expected to be financed through non-recourse project financing and the partners’ investments.
During the third quarter of fiscal year 2022, we entered into an 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. The NEOM project is expected to be on-stream in 2026. We intend to transport green ammonia around the world to be dissociated to produce green hydrogen, primarily for the transportation market.
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. 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 consolidated NGHC within the Middle East and India segment beginning in the third quarter of fiscal year 2022.
Our consolidated balance sheets include the following balances from the consolidation of NGHC:
31 December30 September
20222022
Cash and cash items$224 $275 
Other receivables and current assets29 23 
Plant and equipment, net332 219 
Payables and accrued liabilities68 58 
Long-term debt – related party447 447 
Noncontrolling interests31 30 
Related Party Transactions
We have related party sales to some of our equity affiliates and joint venture partners as well as other income primarily from fees charged for use of Air Products' patents and technology. Sales to and other income from related parties totaled approximately $80 for each of the three months ended 31 December 2022 and 2021. Sales agreements with related parties include terms that are consistent with those that we believe would have been negotiated at an arm’s length with an independent party. As of 31 December 2022 and 30 September 2022, our consolidated balance sheets included related party trade receivables of approximately $110 and $55, respectively.
Refer to Note 9, Debt, for information concerning debt owed to related parties.
Changes in Estimates
Changes in estimates on projects accounted for under the cost incurred input method are recognized as a cumulative adjustment for the inception-to-date effect of such change. We recorded changes to project cost estimates that unfavorably impacted operating income by approximately $25 in the first three months of fiscal year 2023. The impact of changes in estimates in the first three months of fiscal year 2022 was not material.
Lessee Accounting
During the three months ended 31 December 2022, we recorded noncash right-of-use asset additions of approximately $51, primarily for operating leases that had not yet commenced as of 30 September 2022.