Revenue Recognition

6 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

The majority of our revenue is generated from our sale of gas customers within the regional industrial gases segments. We distribute gases through either our on-site or merchant supply mode depending on various factors, including the customer's volume requirements and location. We also 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.

Disaggregation of Revenue

The tables below present our consolidated sales disaggregated by supply mode for each of our reportable segments for the second quarter and first six months of fiscal years 2024 and 2023. We believe this presentation best depicts the nature, timing, type of customer, and contract terms for our sales.

	Three Months Ended 31 March 2024
	Americas	Asia	Europe	Middle East  and India	Corporate and other	Total	%
On-site	$695.5	$495.9	$194.5	$18.5	$—	$1,404.4	48	%
Merchant	550.3	283.8	473.4	17.2	—	1,324.7	45	%
Sale of equipment	—	—	—	—	201.1	201.1	7	%
Total	$1,245.8	$779.7	$667.9	$35.7	$201.1	$2,930.2	100	%
	Three Months Ended 31 March 2023
	Americas	Asia	Europe	Middle East  and India	Corporate and other	Total	%
On-site	$801.9	$490.3	$259.4	$22.8	$—	$1,574.4	49	%
Merchant	571.2	323.6	493.5	22.0	—	1,410.3	44	%
Sale of equipment	—	—	—	—	215.4	215.4	7	%
Total	$1,373.1	$813.9	$752.9	$44.8	$215.4	$3,200.1	100	%

	Six Months Ended 31 March 2024
	Americas	Asia	Europe	Middle East  and India	Corporate and other	Total	%
On-site	$1,409.6	$999.1	$453.7	$36.0	$—	$2,898.4	48	%
Merchant	1,088.3	574.4	945.4	35.1	—	2,643.2	45	%
Sale of Equipment	—	—	—	—	386.0	386.0	7	%
Total	$2,497.9	$1,573.5	$1,399.1	$71.1	$386.0	$5,927.6	100	%
	Six Months Ended 31 March 2023
	Americas	Asia	Europe	Middle East  and India	Corporate and other	Total	%
On-site	$1,647.7	$948.0	$587.5	$41.6	$—	$3,224.8	51	%
Merchant	1,109.6	643.7	957.3	44.6	—	2,755.2	43	%
Sale of Equipment	—	—	—	—	394.8	394.8	6	%
Total	$2,757.3	$1,591.7	$1,544.8	$86.2	$394.8	$6,374.8	100	%

Interest income associated with financing and lease arrangements accounted for approximately 1% of our total consolidated sales during the three and six months ended 31 March 2024.

Remaining Performance Obligations

As of 31 March 2024, the transaction price allocated to remaining performance obligations is estimated to be approximately $27 billion. This amount includes fixed-charge contract provisions associated with our on-site and sale of equipment supply modes. We estimate that approximately half of this revenue will be recognized over the next five years and the balance thereafter.

Our remaining performance obligations do not include (1) expected revenue associated with new on-site plants that are not yet on-stream; (2) consideration associated with contracts that have an expected duration of less than one year; and (3) variable consideration for which we recognize revenue at the amount to which we have the right to invoice, including energy cost pass-through to customers.

In the future, actual amounts will differ due to events outside of our control, including, but not limited to, inflationary price escalations; currency exchange rates; and amended, terminated, or renewed contracts.

Contract Balances

The table below details balances arising from contracts with customers:

		31 March	30 September
	Balance Sheet Location	2024	2023
Assets
Contract assets – current	Other receivables and current assets	$97.2	$124.7
Contract fulfillment costs – current	Other receivables and current assets	109.8	89.0
Liabilities
Contract liabilities – current	Payables and accrued liabilities	$396.1	$413.0
Contract liabilities – noncurrent	Other noncurrent liabilities	133.1	136.9

During the first six months of fiscal year 2024, we recognized sales of approximately $195 associated with sale of equipment contracts that were included within our current contract liabilities as of 30 September 2023.