Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Air Products & Chemicals Inc., consolidated statement of comprehensive income

US$ in thousands

12 months ended:	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017	Sep 30, 2016	Sep 30, 2015
Net income	1,931,100)	1,809,400)	1,532,900)	3,021,200)	661,500)	1,317,600)
Translation adjustments, net of tax	233,400)	(356,200)	(244,600)	101,900)	9,900)	(699,300)
Net gain (loss) on derivatives, net of tax	43,500)	(44,100)	45,900)	(12,600)	13,700)	(35,000)
Pension and postretirement benefits, net of tax	(68,200)	(326,200)	179,400)	251,600)	(335,100)	(278,500)
Currency translation adjustment	—)	(2,600)	3,100)	57,300)	2,700)	—)
Derivatives, net of tax	(57,700)	12,300)	(30,400)	24,200)	(36,000)	20,800)
Pension and postretirement benefits, net of tax	82,500)	63,200)	133,100)	110,700)	87,200)	97,000)
Reclassification adjustments	24,800)	72,900)	105,800)	192,200)	53,900)	117,800)
Other comprehensive income (loss), net of tax	233,500)	(653,600)	86,500)	533,100)	(257,600)	(895,000)
Comprehensive income	2,164,600)	1,155,800)	1,619,400)	3,554,300)	403,900)	422,600)
Comprehensive income attributable to noncontrolling interests	(42,400)	(29,500)	(16,100)	(24,500)	(35,200)	(28,700)
Comprehensive income attributable to Air Products	2,122,200)	1,126,300)	1,603,300)	3,529,800)	368,700)	393,900)

Based on: 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30).

Net Income: Net income exhibited significant fluctuations over the observed periods. Starting at 1,317,600 thousand USD in 2015, it declined sharply to 661,500 thousand USD in 2016. Thereafter, a pronounced increase occurred in 2017, reaching 3,021,200 thousand USD, followed by a decrease to 1,532,900 thousand USD in 2018. The values then showed a moderate upward trend in 2019 and 2020, with net incomes of 1,809,400 and 1,931,100 thousand USD respectively.
Translation Adjustments, Net of Tax: This item showed considerable volatility. It started with a large negative balance of -699,300 thousand USD in 2015, followed by a small positive adjustment in 2016 (9,900 thousand USD) and a larger positive in 2017 (101,900 thousand USD). Subsequently, it swung back into negative territory in 2018 and 2019 with values of -244,600 and -356,200 thousand USD, before reversing again to a positive 233,400 thousand USD in 2020. The alternating pattern suggests exposure to currency fluctuation risks and the impact of foreign operations.
Net Gain (Loss) on Derivatives, Net of Tax: The net gains or losses on derivatives demonstrated inconsistency and were relatively small compared to other items. Negative values were recorded in 2015 (-35,000 thousand USD), 2017 (-12,600), and 2019 (-44,100), while positive gains appeared in 2016 (13,700), 2018 (45,900), and 2020 (43,500), indicating a fluctuating performance in hedging or speculative activities involving derivatives.
Pension and Postretirement Benefits, Net of Tax: This item displayed marked variability. Initial negative amounts in 2015 and 2016 (-278,500 and -335,100 thousand USD) were followed by positive values in 2017 and 2018 (251,600 and 179,400 thousand USD), then a return to negative in 2019 (-326,200) and a smaller negative in 2020 (-68,200). This inconsistency hints at changing actuarial assumptions, plan amendments, or market conditions affecting pension obligations and postretirement benefit liabilities.
Currency Translation Adjustment: Recorded data for this item was largely absent, except for small positive values in 2016 (2,700 thousand USD), 2017 (57,300), and 2018 (3,100), and a slight negative in 2019 (-2,600), with no entry in 2020. These modest amounts suggest limited direct impact or recording inconsistencies within this sub-component.
Derivatives, Net of Tax: Values fluctuated between positive and negative across the years, reaching 20,800 thousand USD in 2015 but moving to negative results in several years such as -36,000 in 2016 and -30,400 in 2018, and the largest negative in 2020 (-57,700). This variability indicates an uncertain and potentially increasing exposure to derivative instruments over time.
Pension and Postretirement Benefits, Net of Tax (Secondary Row): This possibly related but distinct line showed steady positive values throughout, increasing from 97,000 thousand USD in 2015 to 110,700 in 2017, peaking at 133,100 in 2018, then declining to 63,200 in 2019, before rising again to 82,500 in 2020. This upward trajectory until 2018 followed by a slight decrease may reflect ongoing pension asset valuations or plan funding status adjustments.
Reclassification Adjustments: Reclassification adjustments trended downward over time. Beginning at 117,800 thousand USD in 2015, this figure steadily decreased each year to reach 24,800 thousand USD in 2020. This indicates a reduction in adjustments reclassified from accumulated other comprehensive income to net income or other accounts.
Other Comprehensive Income (Loss), Net of Tax: This component demonstrated considerable volatility. An initial large negative value of -895,000 thousand USD in 2015 improved to -257,600 in 2016, then switched to positive territory in 2017 (533,100) and 2018 (86,500). However, it again moved negative in 2019 (-653,600) and returned positive in 2020 (233,500). These swings indicate significant influence from foreign currency translation adjustments, derivative gains or losses, pension-related adjustments, or other comprehensive income components.
Comprehensive Income: Comprehensive income followed the trends of net income and other comprehensive income but with less extreme fluctuations. Starting at 422,600 thousand USD in 2015, it rose slightly to 403,900 in 2016, surged to 3,554,300 in 2017, then decreased to 1,619,400 in 2018. The subsequent years showed a decline to 1,155,800 in 2019 before recovering to 2,164,600 thousand USD in 2020. This overall pattern reflects the combined effects of operational performance and other comprehensive income changes.
Comprehensive Income Attributable to Noncontrolling Interests: The amounts attributable to noncontrolling interests were consistently negative, ranging from -28,700 thousand USD in 2015 to -42,400 in 2020, with minor fluctuations in between. This stable negative attribution indicates ongoing minority interests absorbing a share of losses or reduced income.
Comprehensive Income Attributable to Air Products: The majority of comprehensive income was attributable to Air Products itself. Values rose substantially from 393,900 thousand USD in 2015 to 3,529,800 in 2017, then declined to 1,603,300 in 2018 and continued downward to 1,126,300 in 2019. A significant recovery to 2,122,200 thousand USD occurred in 2020. This trend closely mirrors that of overall comprehensive income, emphasizing the core company's financial performance.

Download chart

Air Products & Chemicals Inc. (NYSE:APD)

Statement of Comprehensive Income