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Document and Company Information - USD ($) $ in Billions	3 Months Ended
Document and Company Information - USD ($) $ in Billions	Dec. 31, 2009	Jan. 19, 2010	Mar. 31, 2009
Document and Company Information [Abstract]
Entity Registrant Name	AIR PRODUCTS & CHEMICALS INC /DE/
Entity Central Index Key	0000002969
Document Type	10-Q
Document Period End Date	Dec. 31, 2009
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 11.8
Entity Common Stock, Shares Outstanding		212,152,350

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2009	Sep. 30, 2009
Current Assets
Cash and cash items	$ 323.0	$ 488.2
Trade receivables, less allowances for doubtful accounts	1,377.8	1,363.2
Inventories	522.6	509.6
Contracts in progress, less progress billings	132.2	132.3
Prepaid expenses	136.8	99.7
Other receivables and current assets	286.6	399.8
Current assets of discontinued operations	4.2	5.0
Total Current Assets	2,783.2	2,997.8
Investment In Net Assets of and Advances to Equity Affiliates	878.2	868.1
Plant and Equipment, at cost	15,957.2	15,751.3
Less: Accumulated depreciation	9,012.0	8,891.7
Plant and Equipment, net	6,945.2	6,859.6
Goodwill	912.2	916.0
Intangible Assets, net	259.5	262.6
Noncurrent Capital Lease Receivables	717.7	687.0
Other Noncurrent Assets	418.5	438.0
Total Assets	12,914.5	13,029.1
Current Liabilities
Payables and accrued liabilities	1,378.5	1,660.4
Accrued income taxes	43.9	42.9
Short-term borrowings	269.1	333.8
Current portion of long-term debt	444.5	452.1
Current liabilities of discontinued operations	8.9	14.4
Total Current Liabilities	2,144.9	2,503.6
Long-Term Debt	3,705.1	3,715.6
Deferred Income and Other Noncurrent Liabilities	1,509.4	1,522.0
Deferred Income Taxes	371.0	357.9
Total Liabilities	$ 7,730.4	$ 8,099.1
Commitments and Contingencies - See Note 10
Equity
Common stock (par value $1 per share; 2010 and 2009 - 249,455,584 shares)	$ 249.4	$ 249.4
Capital in excess of par value	809.7	822.9
Retained earnings	7,389.8	7,234.6
Accumulated other comprehensive income (loss)	(1,115.2)	(1,161.8)
Treasury stock, at cost (2010 - 37,303,234 shares; 2009 - 38,195,320 shares)	(2,299.8)	(2,353.2)
Total Air Products Shareholders' Equity	5,033.9	4,791.9
Noncontrolling Interests	150.2	138.1
Total Equity	5,184.1	4,930.0
Total Liabilities and Equity	$ 12,914.5	$ 13,029.1

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Dec. 31, 2009	Sep. 30, 2009
Equity
Common stock, par value	$ 1	$ 1
Common stock, issued shares	249,455,584	249,455,584
Treasury stock, shares	37,303,234	38,195,320

Consolidated Income Statements (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Dec. 31, 2009	Dec. 31, 2008
Statement [Line Items]
Sales	$ 2,173.5	$ 2,195.3
Cost of sales	1,568.6	1,629.7
Selling and administrative	244.1	247.0
Research and development	27.2	33.2
Global cost reduction plan	0.0	174.2
Other income, net	11.4	2.9
Operating Income	345.0	114.1
Equity affiliates' income	26.9	24.5
Interest expense	31.6	36.5
Income from Continuing Operations before Taxes	340.3	102.1
Income tax provision	83.5	7.1
Income from Continuing Operations	256.8	95.0
Loss from Discontinued Operations, net of tax	0.0	(21.4)
Net Income	256.8	73.6
Less: Net income attributable to noncontrolling interests	5.0	5.0
Net Income Attributable to Air Products	251.8	68.6
Net Income Attributable to Air Products
Income from continuing operations	251.8	90.0
Loss from Discontinued Operations	0.0	(21.4)
Net Income Attributable to Air Products	$ 251.8	$ 68.6
Basic Earnings Per Common Share Attributable to Air Products
Income from continuing operations	$ 1.19	$ 0.43
Loss from discontinued operations	0	(0.1)
Net Income Attributable to Air Products	1.19	0.33
Diluted Earnings Per Common Share Attributable to Air Products
Income from continuing operations	1.16	0.42
Loss from discontinued operations	0	(0.1)
Net Income Attributable to Air Products	$ 1.16	$ 0.32
Weighted Average of Common Shares Outstanding (in millions)	211.7	209.4
Weighted Average of Common Shares Outstanding Assuming Dilution (in millions)	217.0	212.1
Dividends Declared Per Common Share - Cash	$ 0.45	$ 0.44

Consolidated Comprehensive Income Statements (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2009	Dec. 31, 2008
Statement [Line Items]
Net Income	$ 256.8	$ 73.6
Other Comprehensive Income (Loss), net of tax:
Translation adjustments, net of tax (benefit) of $8.3 and $(16.0)	34.9	(321.0)
Net (loss) gain on derivatives, net of tax (benefit) of $(1.1) and $9.2	(2.4)	11.9
Unrealized holding gain (loss) on available-for-sale securities, net of tax (benefit) of $.1 and $(.6)	0.1	(1.1)
Reclassification adjustments:
Currency translation adjustment	0.0	(3.2)
Derivatives, net of tax (benefit) of $.8 and $(9.7)	2.5	(14.4)
Pension and postretirement benefits, net of tax of $6.5 and $1.3	12.4	2.8
Total Other Comprehensive Income (Loss)	47.5	(325.0)
Comprehensive Income (Loss)	304.3	(251.4)
Comprehensive Income Attributable to Noncontrolling Interests	5.9	1.8
Comprehensive Income (Loss) Attributable to Air Products	$ 298.4	$ (253.2)

Consolidated Comprehensive Income Statements (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2009	Dec. 31, 2008
Other Comprehensive Income (Loss), net of tax:
Tax effect on translation adjustments	$ 8.3	$ (16.0)
Tax effect on net (loss) gain on derivatives	(1.1)	9.2
Tax effect on unrealized holding gain (loss) on available-for-sale securities	0.1	(0.6)
Reclassification adjustments:
Tax effect on derivatives reclassified	0.8	(9.7)
Tax effect on pension and postretirement benefits reclassified	$ 6.5	$ 1.3

Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions

3 Months Ended

Dec. 31, 2009

Dec. 31, 2008

Operating Activities

Net income

$ 256.8

$ 73.6

Less: Net income attributable to noncontrolling interests

5.0

Net income attributable to Air Products

251.8

68.6

Adjustments to reconcile income to cash provided by operating activities:

Depreciation and amortization

217.1

200.6

Impairment of assets of continuing operations

0.6

32.1

Impairment of assets of discontinued operations

0.0

48.7

Deferred income taxes

115.3

(0.6)

Undistributed earnings of unconsolidated affiliates

(8.4)

(10.9)

Loss on sale of assets and investments

0.4

1.9

Share-based compensation

7.7

17.5

Noncurrent capital lease receivables

(30.7)

(37.0)

Other adjustments

30.1

(5.6)

Working capital changes that provided (used) cash, excluding effects of acquisitions and divestitures:

Trade receivables

(27.0)

101.7

Inventories

(18.1)

(53.7)

Contracts in progress

9.3

(6.6)

Other receivables

11.8

(74.2)

Payables and accrued liabilities

(289.9)

(42.9)

Other working capital

(76.1)

(40.4)

Cash Provided by Operating Activities

^[1]

193.9

199.2

Investing Activities

Additions to plant and equipment

(288.8)

(291.7)

Acquisitions, less cash acquired

(9.9)

(1.6)

Investment in and advances to unconsolidated affiliates

(3.0)

(0.1)

Proceeds from sale of assets and investments

13.1

18.9

Proceeds from sale of discontinued operations

0.0

0.9

Change in restricted cash

13.2

(31.7)

Cash Used for Investing Activities

(275.4)

(305.3)

Financing Activities

Long-term debt proceeds

53.1

109.0

Payments on long-term debt

(26.0)

(41.4)

Net (decrease) increase in commercial paper and short-term borrowings

(51.6)

145.7

Dividends paid to shareholders

(95.1)

(92.1)

Proceeds from stock option exercises

27.7

1.1

Excess tax benefit from share-based compensation

8.2

0.6

Cash (Used for) Provided by Financing Activities

(83.7)

122.9

Effect of Exchange Rate Changes on Cash

0.0

(1.8)

(Decrease) Increase in Cash and Cash Items

(165.2)

15.0

Cash and Cash Items-Beginning of Year

488.2

103.5

Cash and Cash Items-End of Period

$ 323.0

$ 118.5

[1]	Pension plan contributions of $255.7 and $42.6, respectively

Basis of Presentation and Major Accounting Policies	3 Months Ended
Basis of Presentation and Major Accounting Policies	Dec. 31, 2009
Basis of Presentation and Major Accounting Policies [Abstract]
BASIS OF PRESENTATION AND MAJOR ACCOUNTING POLICIES	1. BASIS OF PRESENTATION AND MAJOR ACCOUNTING POLICIES Refer to the Company’s 2009 Form 10-K for a description of major accounting policies. There have been no material changes to these accounting policies during the first three months of 2010 other than those detailed in Note 2. The consolidated financial statements of Air Products and Chemicals, Inc. and its subsidiaries (the “Company,” “Air Products,” or “registrant”) included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In the opinion of the Company, the accompanying statements reflect adjustments necessary to present fairly the financial position, results of operations, and cash flows for those periods indicated, and contain adequate disclosure to make the information presented not misleading. Adjustments included herein are of a normal, recurring nature unless otherwise disclosed in the Notes. The interim results for the periods indicated herein, however, do not reflect certain adjustments, such as the valuation of inventories on the LIFO cost basis, which can only be finally determined on an annual basis. The consolidated financial statements and related Notes included herein should be read in conjunction with the financial statements and Notes thereto included in the Company’s latest Form 10-K in order to fully understand the basis of presentation. Results of operations for interim periods are not necessarily indicative of the results of operations for a full year. The Company has evaluated subsequent events for potential recognition and/or disclosure through 26 January 2010, the date the consolidated financial statements included in this report on Form 10-Q were issued. There were no subsequent events required to be recognized or disclosed in the financial statements.

New Accounting Guidance	3 Months Ended
New Accounting Guidance	Dec. 31, 2009
New Accounting Guidance [Abstract]
NEW ACCOUNTING GUIDANCE	2. NEW ACCOUNTING GUIDANCE *Guidance Implemented* Business Combinations In December 2007, the Financial Accounting Standards Board (FASB) issued authoritative guidance to affirm that the acquisition method of accounting (previously referred to as the purchase method) be used for all business combinations and for an acquirer to be identified for each business combination. This guidance defines the acquirer as the entity that obtains control of one or more businesses in the business combination and establishes the acquisition date as the date that the acquirer achieves control. Among other requirements, the guidance requires the acquiring entity in a business combination to recognize at full fair value all the assets acquired and liabilities assumed in the transaction. If a business combination is achieved in stages, the previously-held ownership interest is adjusted to fair value at the acquisition date, and any resulting gain or loss is recognized in earnings. Contingent consideration is recognized at fair value at the acquisition date, and restructuring and acquisition-related costs are expensed as incurred. The fair value of assets and liabilities acquired, including uncertain tax positions, can be adjusted during the measurement period. Any adjustments after the measurement period, which cannot exceed one year, will be recognized in earnings. This guidance was effective for the Company on 1 October 2009 and will be applied prospectively. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. During the three months ended 31 December 2009, the Company did not enter into any significant business combinations. Noncontrolling Interests In December 2007, the FASB issued authoritative guidance that establishes the accounting and reporting standards for the noncontrolling interests in a subsidiary and for the deconsolidation of a subsidiary. It requires entities to report noncontrolling interests in subsidiaries separately within equity in the consolidated balance sheets. It also requires disclosure, on the face of the consolidated statement of income, of the amounts of consolidated net income attributable to the parent and noncontrolling interests. Changes in a parent’s ownership interests while the parent retains control are treated as equity transactions. If a parent loses control of a subsidiary, any retained noncontrolling interests would be measured at fair value with any gain or loss recognized in earnings. This guidance was effective for the Company on 1 October 2009 and will be applied prospectively, except for the presentation and disclosure requirements related to noncontrolling interests, which are applied retrospectively for all periods presented. The Company’s financial statements have been updated to reflect the new presentation. Prior year amounts have been reclassified to conform to the current year presentation. Fair Value Measurements In September 2006, the FASB issued authoritative guidance that defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. Effective 1 October 2008, the Company adopted this guidance for financial assets and liabilities and any other assets and liabilities that are recognized and disclosed at fair value on a recurring basis. The requirement for other nonfinancial assets and liabilities was effective on 1 October 2009 for the Company. The adoption of this guidance did not impact the Company’s consolidated financial statements. During the three months ended 31 December 2009, the Company did not measure any significant nonfinancial assets or nonfinancial liabilities at fair value. *New Guidance to Be Implemented* Employers’ Disclosures about Postretirement Benefit Plan Assets In December 2008, the FASB issued authoritative guidance to require employers to provide additional disclosures about plan assets of a defined benefit or other postretirement plan. Disclosures include information about investment policies and strategies, major categories of plan assets, the inputs and valuation techniques used to measure the fair value of plan assets, and significant concentrations of risk. This guidance is effective for the Company beginning with its fiscal year-end 2010. Upon initial application, this guidance is not required to be applied to earlier periods that are presented for comparative purposes. This guidance only requires additional disclosure and will not have an impact on the Company’s consolidated financial statements upon adoption. Consolidation of Variable Interest Entities In June 2009, the FASB issued authoritative guidance that amends previous guidance for determining whether an entity is a variable interest entity (VIE). It requires an enterprise to perform an analysis to determine whether the Company’s variable interests give it a controlling financial interest in a VIE. A company would be required to assess whether it has an implicit financial responsibility to ensure that a VIE operates as designed when determining whether it has the power to direct the activities of the VIE that most significantly impact the entity’s economic performance. In addition, ongoing reassessments of whether an enterprise is the primary beneficiary of a VIE are required. This guidance is effective for the Company beginning in fiscal year 2011. The Company is currently evaluating the impact of this guidance. Multiple-Deliverable Revenue Arrangements In October 2009, the FASB issued authoritative guidance on multiple-deliverable revenue arrangements. This new guidance amends the existing criteria for separating consideration received in multiple-deliverable arrangements and requires that arrangement consideration be allocated at the inception of the arrangement to all deliverables based on their relative selling price. The guidance establishes a hierarchy for determining the selling price of a deliverable which is based on vendor-specific objective evidence, third-party evidence, or management estimates. Expanded disclosures related to multiple-deliverable revenue arrangements are also required. This guidance is effective for the Company beginning fiscal year 2011, with early adoption permitted. Upon adoption, the guidance may be applied either prospectively from the beginning of the fiscal year for new or materially modified arrangements, or it may be applied retrospectively. The Company is currently evaluating the impact of this guidance.

Global Cost Reduction Plan

3 Months Ended

Dec. 31, 2009

Global Cost Reduction Plan [Abstract]

GLOBAL COST REDUCTION PLAN

3. GLOBAL COST REDUCTION PLAN

In the first quarter of 2009, the results from continuing operations included a charge of $174.2 ($116.1 after-tax, or $.55 per share) for the global cost reduction plan. For additional information on this charge, as well as a subsequent charge for the plan in the third quarter of 2009, refer to the Company’s 2009 Form 10-K.

The planned actions associated with the global cost reduction plan are expected to be substantially completed within one year of when the related charges were recognized. As of 31 December 2009, the majority of the planned actions associated with the first quarter 2009 charge were completed, with the exception of certain position eliminations and/or associated benefit payments. These actions are expected to be completed in the second quarter of 2010.

During the first quarter of 2010, the Company revised its estimate of the costs associated with the 2009 global cost reduction plan. The unfavorable impact of additional severance and other benefits was offset by a favorable variance related to completed business exits and asset management actions. The adjustment to the charge was excluded from segment operating profit and did not have a material impact on any individual segment.

The following table summarizes changes to the carrying amount of the accrual for the global cost reduction plan:


				Asset
	Severance and			Impairments/
	Other Benefits			Other Costs			Total

First quarter 2009 charge	$	120.0		$	54.2		$	174.2
Third quarter 2009 charge		90.0			34.0			124.0
Environmental charge (a)		—			(16.0	)		(16.0	)
Noncash items		(33.8	) (b)		(66.1	)		(99.9	)
Cash expenditures		(75.3	)		(.9	)		(76.2	)
Currency translation adjustment		4.3			—			4.3

30 September 2009	$	105.2		$	5.2		$	110.4
Adjustment to charge		6.6			(6.6	)		—
Noncash items		(3.5	) (b)		2.4			(1.1	)
Cash expenditures		(34.4	)		—			(34.4	)
Currency translation adjustment		(1.1	)		—			(1.1	)

31 December 2009	$	72.8		$	1.0	(c)	$	73.8


(a)		Reflected in accrual for environmental obligations. See Note 10.

(b)		Primarily pension-related costs which are reflected in the accrual for pension benefits.

(c)		Relates to costs associated with the sale of an asset which is expected to be paid in the second quarter of 2010.

Discontinued Operations	3 Months Ended
Discontinued Operations	Dec. 31, 2009
Discontinued Operations [Abstract]
DISCONTINUED OPERATIONS	4. DISCONTINUED OPERATIONS In fiscal 2009, the Company completed the divestiture of its U.S. Healthcare business which has been accounted for as discontinued operations. For additional historical information on this divestiture, refer to the Company’s 2009 Form 10-K. In the first quarter of 2009, the U.S. Healthcare business generated sales of $48.2 and income from operations, net of tax, of $.7. In addition, the Company recorded an impairment charge of $48.7 ($30.9 after-tax, or $.15 per share) reflecting a revision in the estimated net realizable value of the U.S. Healthcare business. Also, a tax benefit of $8.8, or $.04 per share, was recorded to revise the estimated tax benefit related to previously recognized impairment charges. Assets and liabilities classified as discontinued operations for the U.S. Healthcare business were $4.2 and $8.9, respectively, at 31 December 2009 and $5.0 and $14.4, respectively, at 30 September 2009.

Inventories

3 Months Ended

Dec. 31, 2009

Inventories [Abstract]

INVENTORIES

5. INVENTORIES

The components of inventories are as follows:


	31 December			30 September
	2009			2009

Inventories at FIFO Cost
Finished goods	$	410.4		$	405.5
Work in process		24.1			20.9
Raw materials and supplies		155.8			151.1

		590.3			577.5
Less: Excess of FIFO cost over LIFO cost		(67.7	)		(67.9	)

	$	522.6		$	509.6

FIFO cost approximates replacement cost. The Company’s inventories have a high turnover, and as a result, there is little difference between the original cost of an item and its current replacement cost.

Goodwill

3 Months Ended

Dec. 31, 2009

Goodwill [Abstract]

GOODWILL

6. GOODWILL

Changes to the carrying amount of consolidated goodwill by segment for the three months ended 31 December 2009 are as follows:



	30 September		Currency			31 December
	2009		Translation			2009

Merchant Gases	$	601.3	$	(4.7	)	$	596.6
Tonnage Gases		16.3		.1			16.4
Electronics and Performance Materials		298.4		.8			299.2

	$	916.0	$	(3.8	)	$	912.2

Goodwill is subject to impairment testing at least annually. In addition, goodwill is tested more frequently if a change in circumstances or the occurrence of events indicates that potential impairment exists.

Financial Instruments

3 Months Ended

Dec. 31, 2009

Financial Instruments [Abstract]

FINANCIAL INSTRUMENTS

7. FINANCIAL INSTRUMENTS

Currency Price Risk Management

The Company’s earnings, cash flows, and financial position are exposed to foreign currency risk from foreign currency denominated transactions and net investments in foreign operations. It is the policy of the Company to minimize its cash flow volatility to changes in currency exchange rates. This is accomplished by identifying and evaluating the risk that the Company’s cash flows will change in value due to changes in exchange rates and by determining the appropriate strategies necessary to manage such exposures. The Company’s objective is to maintain economically balanced currency risk management strategies that provide adequate downside protection.

Forward Exchange Contracts

The Company enters into forward exchange contracts to reduce the cash flow exposure to foreign currency fluctuations associated with highly anticipated cash flows and certain firm commitments such as the purchase of plant and equipment. Forward exchange contracts are also used to hedge the value of investments in certain foreign subsidiaries and affiliates by creating a liability in a currency in which the Company has a net equity position.

In addition to the foreign exchange contracts that are designated as hedges, the Company also hedges foreign currency exposures utilizing forward exchange contracts that are not designated as hedges. These contracts are used to hedge foreign currency-denominated monetary assets and liabilities, primarily working capital. The primary objective of these forward contracts is to protect the value of foreign currency-denominated monetary assets and liabilities from the effects of volatility in foreign exchange rates that might occur prior to their receipt or settlement.

Option Contracts

In certain limited situations, the Company enters into option contracts to manage cash flow exposures to foreign currency fluctuations. Similar to forward contracts, these instruments are evaluated for hedge accounting treatment and are recognized on the balance sheet at fair value. As of 31 December 2009 and 30 September 2009, there were no outstanding option contracts.

The table below summarizes the Company’s outstanding currency price risk management instruments:


	31 December 2009				30 September 2009
	US$		Years Average		US$		Years Average
	Notional		Maturity		Notional		Maturity

Forward exchange contracts:
Cash flow hedges	$	1,809.8		.5	$	1,799.3		.8
Net investment hedges		902.1		2.9		873.6		3.5
Fair value hedges		—		—		2.7		.4
Hedges not designated		349.4		.3		330.3		.6

Total Forward Exchange Contracts	$	3,061.3		1.2	$	3,005.9		1.6

In addition to the above, the Company uses foreign currency denominated debt and qualifying intercompany loans to hedge the foreign currency exposures of the Company’s net investment in certain foreign affiliates. The designated foreign currency denominated debt includes €1,013.0 at 31 December 2009 and 30 September 2009. The designated intercompany loans include €437.0 at 31 December 2009 and 30 September 2009.

Debt Portfolio Management

It is the policy of the Company to identify on a continuing basis the need for debt capital and evaluate the financial risks inherent in funding the Company with debt capital. Reflecting the result of this ongoing review, the debt portfolio and hedging program of the Company are managed with the objectives and intent to (1) reduce funding risk with respect to borrowings made by the Company to preserve the Company’s access to debt capital and provide debt capital as required for funding and liquidity purposes, and (2) manage the aggregate interest rate risk and the debt portfolio in accordance with certain debt management parameters.

Interest Rate Swap Contracts

The Company enters into interest rate swap contracts to change the fixed/variable interest rate mix of its debt portfolio in order to maintain the percentage of fixed- and variable-rate debt within the parameters set by management. In accordance with these parameters, the agreements are used to optimize interest rate risks and costs inherent in the Company’s debt portfolio. In addition, the Company also uses interest rate swap agreements to hedge the interest rate on anticipated fixed-rate debt issuance. The notional amount of the interest rate swap agreements are equal to or less than the designated debt instrument being hedged. When variable-rate debt is hedged, the variable-rate indices of the swap instruments and the debt to which they are designated are the same. It is the Company’s policy not to enter into any interest rate swap contracts which lever a move in interest rates on a greater than one-to-one basis.

Cross Currency Interest Rate Swap Contracts

The Company also enters into cross currency interest rate swap contracts. These contracts may entail both the exchange of fixed- and floating-rate interest payments periodically over the life of the agreement and the exchange of one currency for another currency at inception and at a specified future date. These contracts effectively convert the currency denomination of a debt instrument into another currency in which the Company has a net equity position while changing the interest rate characteristics of the instrument. The contracts are used to hedge intercompany and third-party borrowing transactions and certain net investments in foreign operations.

The following table summarizes the Company’s outstanding interest rate swaps and cross currency interest rate swaps:


	31 December 2009								30 September 2009
	US$					Average			US$					Average
	Notional		Pay %			Receive %			Notional		Pay %			Receive %

Interest rate swaps (fair value hedge)	$	424.2	6 month LIBOR				3.99	%	$	327.2	6 month LIBOR				4.47	%

Cross currency interest rate swaps (net investment hedge)	$	32.2		5.54	%		5.48	%	$	32.2		5.54	%		5.48	%

Commodity Price Risk Management

The Company has entered into a limited number of commodity swap contracts in order to reduce the cash flow exposure to changes in the price of natural gas relative to certain oil-based feedstocks. As of 31 December 2009, the Company did not have outstanding commodity swap contracts. At 30 September 2009, the Company had outstanding contracts hedging the changes in the market price of energy with a notional value of $18.5 and with an average maturity of .2 years.

The table below summarizes the fair value and balance sheet location of the Company’s outstanding derivatives:


		31 December		30 September			31 December		30 September
		2009		2009			2009		2009
	Balance Sheet					Balance Sheet
	Location	Fair Value		Fair Value		Location	Fair Value		Fair Value

Derivatives Designated as Hedging Instruments:
Foreign exchange contracts	Other receivables	$	31.1	$	48.8	Accrued liabilities	$	34.0	$	55.1
Interest rate swap contracts	Other receivables		6.9		—	Accrued liabilities		.9		.4
Commodity swap contracts	Other receivables		—		4.3	Accrued liabilities		—		2.4
Foreign exchange contracts	Other noncurrent assets		10.1		10.0	Other noncurrent liabilities		36.1		45.4
Interest rate swap contracts	Other noncurrent assets		6.7		15.1	Other noncurrent liabilities		3.5		3.0

Total Derivatives Designated as Hedging Instruments		$	54.8	$	78.2		$	74.5	$	106.3

Derivatives Not Designated as Hedging Instruments:
Foreign exchange contracts	Other receivables	$	2.4	$	1.0	Accrued liabilities	$	1.0	$	3.4

Total Derivatives		$	57.2	$	79.2		$	75.5	$	109.7

Refer to Note 8, Fair Value Measurements, which defines fair value, describes the method for measuring fair value, provides additional disclosures regarding fair value measurements, and discusses the Company’s counterparty risk.

The table below summarizes the gain or loss related to the Company’s cash flow, net investment, and non-designated hedges. The amounts of gain or loss associated with the outstanding fair value hedges are not material.


	Three Months Ended 31 December
	Forward Exchange Contract						Foreign Currency Debt						Other (a)					Total
	2009			2008			2009			2008			2009		2008			2009			2008

Cash Flow Hedges:
Net (gain) loss recognized in OCI (effective portion)	$	2.2		$	(14.9	)	$	—		$	—		$	.2	$	3.0		$	2.4		$	(11.9	)
Net gain (loss) reclassified from OCI to sales/cost of sales (effective portion)		(2.8	)		(3.7	)		—			—			1.8		.5			(1.0	)		(3.2	)
Net gain (loss) reclassified from OCI to other (income) expense (effective portion)		(1.5	)		17.6			—			—			—		—			(1.5	)		17.6

Net Investment Hedges:
Net (gain) loss recognized in OCI	$	(8.6	)	$	(13.7	)	$	(18.7	)	$	(15.3	)	$	.3	$	(4.5	)	$	(27.0	)	$	(33.5	)

Derivatives Not Designated as Hedging Instruments:
Net loss recognized in other (income) expense (b)	$	1.0		$	2.0		$	—		$	—		$	—	$	—		$	1.0		$	2.0


(a)		Other includes the impact on other comprehensive income (OCI) and earnings related to commodity swap contracts, interest rate swaps, and currency option contracts.

(b)		The impact of the non-designated hedges noted above was largely offset by gains and losses, respectively, resulting from the impact of changes in exchange rates on recognized assets and liabilities denominated in nonfunctional currencies.

Credit Risk-Related Contingent Features

Certain derivative instruments are executed under agreements that require the Company to maintain a credit rating of at least A- from Standard & Poor’s and A3 from Moody’s. If the Company’s credit rating falls below these levels, the counterparty to the derivative instruments has the right to request full collateralization on the derivatives’ net liability position. The net liability position of derivatives with credit risk-related contingent features was $23.0 as of 31 December 2009 and $35.0 as of 30 September 2009. Because of the Company’s current credit rating of A from Standard & Poor’s and A2 from Moody’s, no collateral has been posted on these liability positions.

Counterparty Credit Risk Management

The Company executes all derivative transactions with counterparties that are highly rated financial institutions and all of which are investment grade at this time. Some of the Company’s underlying derivative agreements give the Company the right to require the institution to post collateral if its credit rating falls below A- from Standard & Poor’s or A3 from Moody’s. These are the same agreements referenced in Credit Risk-Related Contingent Features above. The collateral that the counterparties would be required to post was $4.3 as of 31 December 2009 and $14.7 as of 30 September 2009. No financial institution is required to post collateral at this time, as all have credit ratings at or above the threshold.

Fair Value Measurements

3 Months Ended

Dec. 31, 2009

Fair Value Measurements [Abstract]

FAIR VALUE MEASUREMENTS

8. FAIR VALUE MEASUREMENTS

Fair value is defined as an exit price (i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date). The methods and assumptions used to measure the fair value of financial instruments are as follows:

Derivatives

The fair value of the Company’s interest rate swap agreements and foreign exchange contracts are based on estimates using standard pricing models that take into account the present value of future cash flows as of the balance sheet date. The computation of the fair values of these instruments is generally performed by the Company. These standard pricing models utilize inputs which are derived from or corroborated by observable market data such as interest rate yield curves and currency spot and forward rates. In addition, on an ongoing basis, the Company randomly tests a subset of its valuations against valuations received from the counterparty to the transaction to validate the accuracy of its standard pricing models. The fair value of commodity swaps is based on current market price as provided by the financial institutions with which the commodity swaps have been executed. Counterparties to these derivative contracts are highly rated financial institutions.

Other Investments

The fair value of other investments is based on quoted market prices in publicly traded companies from the New York and Tokyo Stock Exchanges. Other investments are reported within other noncurrent assets on the balance sheet.

Long-term Debt

The fair value of the Company’s debt is based on estimates using standard pricing models that take into account the present value of future cash flows as of the balance sheet date, and these standard valuation models utilize observable market data such as interest rate yield curves and currency spot rates. The computation of the fair value of these instruments is generally performed by the Company.

The carrying values and fair values of financial instruments were as follows:


	31 December 2009				30 September 2009
	Carrying Value		Fair Value		Carrying Value		Fair Value

Assets
Derivatives
Foreign exchange contracts	$	43.6	$	43.6	$	59.8	$	59.8
Interest rate swap contracts		13.6		13.6		15.1		15.1
Commodity swap contracts		—		—		4.3		4.3
Other investments		19.5		19.5		19.4		19.4


Liabilities
Derivatives
Foreign exchange contracts	$	71.1	$	71.1	$	103.9	$	103.9
Interest rate swap contracts		4.4		4.4		3.4		3.4
Commodity swap contracts		—		—		2.4		2.4
Long-term debt, including current portion		4,149.6		4,344.0		4,167.7		4,479.5

The carrying amounts reported in the balance sheet for cash and cash items, trade receivables, payables and accrued liabilities, accrued income taxes, and short-term borrowings approximate fair value due to the short-term nature of these instruments. Accordingly, these items have been excluded from the above table.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows:


Level 1	—	Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2	—	Inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability.

Level 3	—	Inputs that are unobservable for the asset or liability based on the Company’s own assumptions (about the assumptions market participants would use in pricing the asset or liability).

The following table summarizes assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheets:


31 December 2009	Total		Level 1		Level 2		Level 3

Assets at Fair Value
Derivatives
Foreign exchange contracts	$	43.6	$	—	$	43.6	$	—
Interest rate swap contracts		13.6		—		13.6		—
Other investments		19.5		19.5		—		—

Total Assets at Fair Value	$	76.7	$	19.5	$	57.2	$	—


Liabilities at Fair Value
Derivatives
Foreign exchange contracts	$	71.1	$	—	$	71.1	$	—
Interest rate swap contracts		4.4		—		4.4		—

Total Liabilities at Fair Value	$	75.5	$	—	$	75.5	$	—

Refer to Note 1 in the Company’s 2009 Form 10-K and Note 7 in this quarterly filing for additional information on the Company’s accounting and reporting of the fair value of financial instruments.

Retirement Benefits

3 Months Ended

Dec. 31, 2009

Retirement Benefits [Abstract]

RETIREMENT BENEFITS

9. RETIREMENT BENEFITS

The components of net pension cost for the defined benefit pension plans and other postretirement benefit cost for the three months ended 31 December 2009 and 2008 were as follows:


	Three Months Ended 31 December
	2009						2008						2009		2008
	Pension Benefits												Other Benefits
	U.S.			International			U.S.			International

Service cost	$	10.6		$	6.2		$	8.5		$	6.6		$	1.2	$	1.5
Interest cost		30.9			15.9			30.7			15.1			1.1		1.4
Expected return on plan assets		(41.1	)		(16.8	)		(35.5	)		(13.5	)		—		—
Prior service cost (credit) amortization		.7			.2			.6			.4			—		(.3	)
Actuarial loss amortization		11.7			5.1			1.5			2.3			.7		.4
Settlement and curtailment charges		—			.5			—			—			—		—
Special termination benefits		—			3.5			4.4			10.0			—		—
Other		—			.8			—			.1			—		—

Net periodic benefit cost	$	12.8		$	15.4		$	10.2		$	21.0		$	3.0	$	3.0

Special termination benefits for the three months ended 31 December 2009 and 2008 included $3.5 and $14.2 for the global cost reduction plan, respectively.

For the three months ended 31 December 2009 and 2008, the Company’s cash contributions to funded plans and benefit payments under unfunded plans were $255.7 and $42.6, respectively. Total contributions for fiscal 2010 are expected to be approximately $360. During fiscal 2009, total contributions were $184.8.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Dec. 31, 2009
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	10. COMMITMENTS AND CONTINGENCIES Litigation The Company is involved in various legal proceedings, including competition, environmental, health, safety, product liability, and insurance matters. During the third quarter of 2008, a unit of the Brazilian Ministry of Justice issued a report (previously issued in January 2007, and then withdrawn) on its investigation of the Company’s Brazilian subsidiary, Air Products Brasil Ltda., and several other Brazilian industrial gas companies. The report recommended that the Brazilian Administrative Council for Economic Defense impose sanctions on Air Products Brasil Ltda. and the other industrial gas companies for alleged anticompetitive activities. The Company is actively defending this action and cannot, at this time, reasonably predict the ultimate outcome of the proceedings or sanctions, if any, that will be imposed. While the Company does not expect that any sums it may have to pay in connection with this or any other legal proceeding would have a materially adverse effect on its consolidated financial position or net cash flows, a future charge for regulatory fines or damage awards could have a significant impact on the Company’s net income in the period in which it is recorded. Environmental Accruals for environmental loss contingencies are recorded when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The consolidated balance sheets at 31 December 2009 and 30 September 2009 included an accrual of $93.3 and $95.0, respectively, primarily as part of other noncurrent liabilities. The environmental liabilities will be paid over a period of up to 30 years. The Company estimates the exposure for environmental loss contingencies to range from $93 to a reasonably possible upper exposure of $107 as of 31 December 2009. During the first quarter of 2009, management committed to a plan to sell the production facility in Paulsboro, New Jersey and recognized a $16.0 environmental liability associated with this site. In December 2009, the Company completed the sale of this facility. The Company is required by the New Jersey state law to investigate and, if contaminated, remediate a site upon its sale. The Company estimates that it will take at least several years to complete the investigation/remediation efforts at this site. Refer to Note 16 to the consolidated financial statements in the Company’s 2009 Form 10-K for information on the Company’s environmental accruals related to the Pace, Florida, Piedmont, S.C., and Paulsboro, N.J. facilities. At 31 December 2009, the accrual balances associated with the Pace, Florida, Piedmont, S.C., and Paulsboro, N.J. facilities totaled $37.7, $22.1, and $15.7, respectively.

Share-Based Compensation	3 Months Ended
Share-Based Compensation	Dec. 31, 2009
Share-Based Compensation [Abstract]
SHARE-BASED COMPENSATION	11. SHARE-BASED COMPENSATION The Company has various share-based compensation programs, which include stock options, deferred stock units, and restricted shares. During the three months ended 31 December 2009, the Company granted 1.0 million stock options at a weighted-average exercise price of $83.60 and an estimated fair value of $25.94 per option. The fair value of these options was estimated using a lattice-based option valuation model that used the following assumptions: expected volatility of 32.6%; expected dividend yield of 2.1%; expected life in years of 6.7-8.0; and a risk-free interest rate of 2.9%-3.3%. In addition, the Company granted 241,606 deferred stock units at a weighted-average grant-date fair value of $83.58 and 30,886 restricted shares at a weighted-average grant-date fair value of $83.60. Refer to Note 18 in the Company’s 2009 Form 10-K for information on the valuation and accounting for these programs. Share-based compensation cost charged against income in the three months ended 31 December 2009 was $7.7 ($4.8 after-tax). Of the share-based compensation cost recognized, $5.7 was a component of selling and administrative expense, $1.6 a component of cost of sales, and $.4 a component of research and development. Share-based compensation cost charged against income in the three months ended 31 December 2008 was $17.5 ($10.7 after-tax). The amount of share-based compensation cost capitalized in 2010 and 2009 was not material.

Equity

3 Months Ended

Dec. 31, 2009

Equity [Abstract]

EQUITY

12. EQUITY

The following is a summary of the changes in total equity for the three months ended 31 December:


	2009									2008
				Non-									Non-
	Air			controlling			Total			Air			controlling			Total
	Products			Interests			Equity			Products			Interests			Equity

Balance at 30 September	$	4,791.9		$	138.1		$	4,930.0		$	5,030.7		$	136.2		$	5,166.9
Defined benefit plans measurement date change, net of tax of $14.0		—			—			—			27.7			—			27.7

Adjusted Balance at 30 September	$	4,791.9		$	138.1		$	4,930.0		$	5,058.4		$	136.2		$	5,194.6
Net Income		251.8			5.0			256.8			68.6			5.0			73.6
Components of Other Comprehensive Income (Loss), net of tax:
Translation adjustments, net of tax (benefit) of $8.3 and $(16.0)		34.2			.7			34.9			(317.8	)		(3.2	)		(321.0	)
Net (loss) gain on derivatives, net of tax (benefit) of $(1.1) and $9.2		(2.4	)		—			(2.4	)		11.9			—			11.9
Unrealized holding gain (loss) on available-for-sale securities, net of tax (benefit) of $.1 and $(.6)		.1			—			.1			(1.1	)		—			(1.1	)
Reclassification adjustments:
Currency translation adjustment		—			—			—			(3.2	)		—			(3.2	)
Derivatives, net of tax (benefit) of $.8 and $(9.7)		2.5			—			2.5			(14.4	)		—			(14.4	)
Pension and postretirement benefits, net of tax of $6.5 and $1.3		12.2			.2			12.4			2.8			—			2.8

Total Other Comprehensive Income (Loss)		46.6			.9			47.5			(321.8	)		(3.2	)		(325.0	)

Comprehensive Income (Loss)		298.4			5.9			304.3			(253.2	)		1.8			(251.4	)

Dividends on common stock (per share $.45, $.44)		(95.5	)		—			(95.5	)		(92.2	)		—			(92.2	)
Dividends to noncontrolling interests		—			(.2	)		(.2	)		—			—			—
Share-based compensation expense		7.7			—			7.7			17.5			—			17.5
Issuance of treasury shares for stock option and award plans		20.6			—			20.6			(4.5	)		—			(4.5	)
Tax benefits of stock option and award plans		11.9			—			11.9			.9			—			.9
Contribution from noncontrolling interests		—			6.5			6.5			—			—			—
Other equity transactions		(1.1	)		(.1	)		(1.2	)		(.8	)		(.1	)		(.9	)

Balance at 31 December	$	5,033.9		$	150.2		$	5,184.1		$	4,726.1		$	137.9		$	4,864.0

Earnings Per Share

3 Months Ended

Dec. 31, 2009

Earnings Per Share [Abstract]

EARNINGS PER SHARE

13. EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share (EPS):


	Three Months Ended
	31 December
	2009		2008

NUMERATOR
Net Income Attributable to Air Products (used in basic and diluted EPS)
Income from continuing operations	$	251.8	$	90.0
Loss from discontinued operations		—		(21.4	)

Net Income Attributable to Air Products	$	251.8	$	68.6

DENOMINATOR (in millions)
Weighted average number of common shares used in basic EPS		211.7		209.4
Effect of dilutive securities
Employee stock options		4.4		1.7
Other award plans		.9		1.0

		5.3		2.7

Weighted average number of common shares and dilutive potential common shares used in diluted EPS		217.0		212.1

BASIC EPS ATTRIBUTABLE TO AIR PRODUCTS
Income from continuing operations	$	1.19	$	.43
Loss from discontinued operations		—		(.10	)

Net Income Attributable to Air Products	$	1.19	$	.33

DILUTED EPS ATTRIBUTABLE TO AIR PRODUCTS
Income from continuing operations	$	1.16	$	.42
Loss from discontinued operations		—		(.10	)

Net Income Attributable to Air Products	$	1.16	$	.32

Options on 2.2 million shares and 8.8 million shares were antidilutive and therefore excluded from the computation of diluted earnings per share for the three months ended 31 December 2009 and 2008, respectively.

Supplemental Information	3 Months Ended
Supplemental Information	Dec. 31, 2009
Supplemental Information [Abstract]
SUPPLEMENTAL INFORMATION	14. SUPPLEMENTAL INFORMATION 2009 Customer Bankruptcy As a result of events which occurred during the third quarter of 2009, the Company recognized a $22.2 charge primarily for the write-off of certain receivables due to a customer bankruptcy. This customer, who principally receives product from the Tonnage Gases segment, began operating under Chapter 11 bankruptcy protection on 6 January 2009. Sales and operating income associated with this customer are not material to the Tonnage Gases segment’s results. At 31 December 2009, the Company had remaining outstanding receivables with the customer of $16.3. At the present time, the Company does not expect to recognize additional charges related to this customer. Share Repurchase Program On 20 September 2007, the Board of Directors authorized the repurchase of up to $1,000 of the Company’s outstanding common stock. In the first quarter of 2010, the Company did not purchase any shares under this authorization. At 31 December 2009, $649.2 in share repurchase authorization remains.

Business Segment and Geographic Information

3 Months Ended

Dec. 31, 2009

Business Segment and Geographic Information [Abstract]

BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION

15. BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION

The Company’s segments are organized based on differences in product and/or type of customer. The Company has four business segments consisting of Merchant Gases, Tonnage Gases, Electronics and Performance Materials, and Equipment and Energy.

Business Segment Information


	Three Months Ended
	31 December
	2009			2008

Revenues from External Customers
Merchant Gases	$	933.6		$	925.2
Tonnage Gases		697.9			744.0
Electronics and Performance Materials		433.4			406.6
Equipment and Energy		108.6			119.5

Segment and Consolidated Totals	$	2,173.5		$	2,195.3


Operating Income
Merchant Gases	$	189.6		$	170.5
Tonnage Gases		100.2			108.8
Electronics and Performance Materials		48.4			24.6
Equipment and Energy		7.8			7.0

Segment Totals	$	346.0		$	310.9
Global cost reduction plan		—			(174.2	)
Other		(1.0	)		(22.6	)

Consolidated Totals	$	345.0		$	114.1


	31 December			30 September
	2009			2009

Identifiable Assets (a)
Merchant Gases	$	4,916.5		$	4,917.0
Tonnage Gases		3,752.3			3,597.8
Electronics and Performance Materials		2,234.6			2,249.5
Equipment and Energy		307.1			303.3

Segment Totals	$	11,210.5		$	11,067.6
Other		821.6			1,088.4
Discontinued operations		4.2			5.0

Consolidated Totals	$	12,036.3		$	12,161.0


(a)		Identifiable assets are equal to total assets less investments in and advances to equity affiliates.

Geographic Information


	Three Months Ended
	31 December
	2009		2008

Revenues from External Customers
North America	$	1,027.9	$	1,110.5
Europe		724.3		717.4
Asia		371.5		325.6
Latin America		49.8		41.8

Total	$	2,173.5	$	2,195.3

Geographic information is based on country of origin. The Europe segment operates principally in Belgium, France, Germany, the Netherlands, Poland, the U.K., and Spain. The Asia segment operates principally in China, Japan, Korea, and Taiwan.