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Discontinued Operations
 9 Months Ended
Jun. 30, 2012
Discontinued Operations [Abstract]  
Discontinued Operations

3.       DISCONTINUED OPERATIONS

In January 2012, the Board of Directors authorized the sale of our Homecare business, which had previously been reported as part of the Merchant Gases operating segment.

On 8 January 2012, we reached an agreement for The Linde Group to purchase our Homecare business in Belgium, Germany, France, Portugal and Spain. This business represented approximately 80% of our total Homecare business revenues.

The transaction with Linde closed on 30 April 2012. Total sale proceeds of €590 million ($777) were received in cash at closing. This amount included contingent proceeds of €110 million ($144) related to the outcome of certain retender arrangements. The gain related to the contingent proceeds is deferred in other noncurrent liabilities and will be recognized in the results of discontinued operations when the contingencies are resolved and the final proceeds are realized per the terms of the agreement. We will also be entitled to receive up to €32 million ($42) of additional cash proceeds based upon collection of accounts receivable. A gain of $207.4 ($150.3 after-tax, or $.70 per share) was recognized on the sale of this business in the third quarter of fiscal year 2012.

We are actively marketing the remaining portion of the Homecare business, which is primarily in the United Kingdom. We expect to close on the sale of this business before the end of calendar 2012. In the third quarter of 2012, we recorded an impairment charge of $33.5 ($29.5 after-tax, or $.14 per share) to write down the remaining business to its estimated net realizable value. For additional information, see Note 10, Fair Value Measurements. Additional charges may be recorded in future periods dependent upon the timing and method of ultimate disposition.

The Homecare business is being accounted for as a discontinued operation. The results of operations and cash flows of this business have been removed from the results of continuing operations for all periods presented. The assets and liabilities of discontinued operations have been reclassified and are segregated in the consolidated balance sheets.

    Three Months Ended  Nine Months Ended  
    30 June  30 June  
   2012  2011  20122011  
 Sales$ 45.0 $ 105.8 $ 242.0 $ 303.3  
                
 Income before taxes$ 10.2 $ 29.1 $ 66.3 $ 84.2  
 Income tax provision  3.7   (.4)   20.6   14.9  
 Income from operations of discontinued operations  6.5   29.5   45.7   69.3  
 Gain on sale of business and impairment/write-down, net of tax  120.8   -   120.8   -  
 Income from Discontinued Operations, net of tax$ 127.3 $ 29.5 $ 166.5 $ 69.3  

For the three and nine months ended 30 June 2011, the income tax provision includes a tax benefit of $8.9, or $.04 per share, resulting from the completion of an audit of tax years 2007 and 2008 by the U.S. Internal Revenue Service related to our previously divested U.S. Healthcare business. For additional details on this tax benefit, refer to Note 21, Income Taxes, in our 2011 Form 10-K.

 

Assets and liabilities of discontinued operations consist of the following:

         
   30 June 30 September 
   2012 2011 
 Cash and cash items$ - $ 1.1  
 Trade receivables, net  14.9   213.4  
 Inventories   .8   11.2  
 Other current assets  .2   17.5  
 Total Current Assets$ 15.9 $ 243.2  
         
 Plant and equipment, net$ 25.7 $ 189.3  
 Goodwill  -   96.2  
 Other noncurrent assets  -   3.4  
 Total Noncurrent Assets$ 25.7 $ 288.9  
         
 Payables and accrued liabilities$ 6.1 $ 42.1  
 Accrued income taxes  -   .5  
 Short-term borrowings  -   .7  
 Total Current Liabilities$ 6.1 $ 43.3  
         
 Other noncurrent liabilities$ .3 $ 12.4  
 Deferred income taxes  -   11.9  
 Total Noncurrent Liabilities$ .3 $ 24.3