Noncash adjustment for reduction of contractual obligation

[Table of Contents](#ic4907372b5a74ad699ec049e915a6266_10)Jazan Gas Project Company Jazan Gas Project Company (“JGPC”), a joint venture between Air Products and ACWA Holding, entered into a 20-year oxygen and nitrogen supply agreement in 2015 to supply Aramco’s oil refinery and power plant in Jazan, Saudi Arabia. We own 26% of the joint venture.In October 2021, the supply agreement between JGPC and Aramco was terminated, and JGPC sold its air separation units to Aramco. We initially sold these assets to JGPC and deferred revenue and profit equal to our ownership percentage in the joint venture. With the termination of the supply agreement and sale of the air separation units complete, we recognized the remaining deferred profit, net of other project finalization costs, in equity affiliates’ income in the first quarter of fiscal year 2022.As of 30 September 2021, our consolidated balance sheets included $94.4 reflected within "Payables and accrued liabilities" for our obligation to make equity contributions based on our proportionate share of advances received by the joint venture under an equity bridge loan. The joint venture utilized a portion of the proceeds from the sale of the air separation units to repay its outstanding debt, including the equity bridge loan. Accordingly, we recorded a noncash adjustment of $94.4 in the first quarter of fiscal year 2022 to reduce our obligation to zero with a corresponding reduction to the carrying value of our investment in the joint venture.  
7. GOODWILLChanges to the carrying amount of consolidated goodwill by segment for the three months ended 31 December 2021 are as follows:

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|  | Americas |  | Asia |  | Europe |  | Middle East and India |  | Corporateand other |  | Total |
| Goodwill, net at 30 September 2021 | $151.0  |  |  | $184.3  |  |  | $533.5  |  |  | $8.0  |  |  | $34.7  |  |  | $911.5  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |
| Acquisitions(A) | —  |  |  | —  |  |  | 17.0  |  |  | —  |  |  | —  |  |  | 17.0  |  |
| Currency translation and other | (2.3) |  |  | 0.8  |  |  | (3.7) |  |  | —  |  |  | —  |  |  | (5.2) |  |
| Goodwill, net at 31 December 2021 | $148.7  |  |  | $185.1  |  |  | $546.8  |  |  | $8.0  |  |  | $34.7  |  |  | $923.3  |  |

(A)We recognized goodwill in the first quarter of fiscal year 2022 for expected cost synergies associated with a small business combination in Europe. The goodwill, which we do not expect to be deductible for tax purposes, is based on a preliminary purchase price allocation as of 31 December 2021.

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|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 31 December |  | 30 September |
|  |  | 2021 |  | 2021 |
| Goodwill, gross |  | $1,234.6  |  |  | $1,239.2  |  |
| Accumulated impairment losses(A) |  | (311.3) |  |  | (327.7) |  |
| Goodwill, net |  | $923.3  |  |  | $911.5  |  |

(A)Accumulated impairment losses include the impacts of currency translation. These losses are attributable to our Latin America reporting unit ("LASA") within the Americas segment.We review goodwill for impairment annually in the fourth quarter of the fiscal year and whenever events or changes in circumstances indicate that the carrying value of goodwill might not be recoverable.  
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