Income Statement

Beginner level

The income statement presents information on the financial results of a company’s business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Air Products & Chemicals Inc., consolidated income statement

US$ in thousands

12 months ended:	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015	Sep 30, 2014
Sales	8,918,900	8,930,200	8,187,600	9,524,400	9,894,900	10,439,000
Cost of sales	(5,975,500)	(6,189,500)	(5,753,400)	(6,402,700)	(6,944,100)	(7,634,600)
Facility closure	(29,000)	—	—	—	—	—
Gross profit	2,914,400	2,740,700	2,434,200	3,121,700	2,950,800	2,804,400
Selling and administrative	(750,000)	(760,800)	(715,600)	(849,300)	(941,700)	(1,059,300)
Research and development	(72,900)	(64,500)	(57,800)	(132,000)	(138,800)	(141,400)
Business separation costs	—	—	(30,200)	(52,200)	(7,500)	—
Cost reduction and asset actions	(25,500)	—	(151,400)	(33,900)	(207,700)	(12,700)
Pension settlement loss	—	—	(10,500)	(6,400)	(21,200)	(5,500)
Goodwill and intangible asset impairment charge	—	—	(162,100)	—	—	(310,100)
Gain on exchange of equity affiliate investments	29,100	—	—	—	17,900	—
Other income (expense), net	49,300	50,200	121,000	58,100	47,300	52,800
Operating income	2,144,400	1,965,600	1,427,600	2,106,000	1,699,100	1,328,200
Equity affiliates’ income	215,400	174,800	80,100	148,600	154,500	151,400
Interest expense	(137,000)	(130,500)	(120,600)	(115,500)	(103,500)	(125,100)
Other non-operating income (expense), net	66,700	5,100	29,000	—	—	—
Loss on extinguishment of debt	—	—	—	(6,900)	(16,600)	—
Income from continuing operations before taxes	2,289,500	2,015,000	1,416,100	2,132,200	1,733,500	1,354,500
Income tax provision	(480,100)	(524,300)	(260,900)	(586,500)	(415,900)	(366,000)
Income from continuing operations	1,809,400	1,490,700	1,155,200	1,545,700	1,317,600	988,500
Income (loss) from discontinued operations, net of tax	—	42,200	1,866,000	(884,200)	—	4,600
Net income	1,809,400	1,532,900	3,021,200	661,500	1,317,600	993,100
Net income attributable to noncontrolling interests	(49,400)	(35,100)	(20,800)	(30,400)	(39,700)	(1,400)
Net income attributable to Air Products	1,760,000	1,497,800	3,000,400	631,100	1,277,900	991,700

Based on: 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-20), 10-K (filing date: 2017-11-16), 10-K (filing date: 2016-11-21), 10-K (filing date: 2015-11-24), 10-K (filing date: 2014-11-24).

Income statement item	Description	The company
Sales	Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.	Air Products & Chemicals Inc.’s sales increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Operating income	The net result for the period of deducting operating expenses from operating revenues.	Air Products & Chemicals Inc.’s operating income increased from 2017 to 2018 and from 2018 to 2019.
Income from continuing operations before taxes	Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.	Air Products & Chemicals Inc.’s income from continuing operations before taxes increased from 2017 to 2018 and from 2018 to 2019.
Net income attributable to Air Products	The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.	Air Products & Chemicals Inc.’s net income attributable to Air Products decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Air Products & Chemicals Inc. (NYSE:APD)

Income Statement