Acquisitions, less cash acquired

[Table of Contents](#ic4907372b5a74ad699ec049e915a6266_10)Air Products and Chemicals, Inc. and SubsidiariesCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)

|  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
|  | Three Months Ended |
|   | 31 December |
| (Millions of dollars) | 2021 | 2020 |
| Operating Activities |  |  |
| Net income | $549.6  |  | $486.7  |  |
| Less: Net (loss) income attributable to noncontrolling interests of continuing operations | (10.8) |  | 4.7  |  |
|  |  |  |
| Net income attributable to Air Products | 560.4  |  | 482.0  |  |
| Income from discontinued operations | —  |  | (10.3) |  |
| Income from continuing operations attributable to Air Products | 560.4  |  | 471.7  |  |
| Adjustments to reconcile income to cash provided by operating activities: |  |  |
| Depreciation and amortization | 332.3  |  | 323.7  |  |
| Deferred income taxes | 15.7  |  | 47.6  |  |
|  |  |  |
|  |  |  |
| Undistributed earnings of equity method investments | (117.3) |  | (10.8) |  |
| Gain on sale of assets and investments | (0.8) |  | (1.1) |  |
| Share-based compensation | 15.8  |  | 9.8  |  |
| Noncurrent lease receivables | 21.8  |  | 21.9  |  |
|  |  |  |
|  |  |  |
|  |  |  |
| Other adjustments | (49.4) |  | 19.3  |  |
| Working capital changes that provided (used) cash, excluding effects of acquisitions: |  |  |
| Trade receivables | (132.7) |  | (44.1) |  |
| Inventories | (33.7) |  | (9.9) |  |
| Other receivables | 14.0  |  | (30.1) |  |
| Payables and accrued liabilities | 167.6  |  | 24.2  |  |
| Other working capital | (8.5) |  | (47.5) |  |
| Cash Provided by Operating Activities | 785.2  |  | 774.7  |  |
| Investing Activities |  |  |
| Additions to plant and equipment, including long-term deposits | (663.8) |  | (664.2) |  |
| Acquisitions, less cash acquired | (34.6) |  | —  |  |
| Investment in and advances to unconsolidated affiliates | (1,632.7) |  | (20.0) |  |
| Proceeds from sale of assets and investments | 1.1  |  | 2.6  |  |
| Purchases of investments | (727.4) |  | (158.5) |  |
| Proceeds from investments | 1,331.9  |  | 855.0  |  |
|  |  |  |
| Other investing activities | 6.4  |  | 3.3  |  |
| Cash (Used for) Provided by Investing Activities | (1,719.1) |  | 18.2  |  |
| Financing Activities |  |  |
| Long-term debt proceeds | 51.6  |  | —  |  |
| Payments on long-term debt | (400.0) |  | (1.1) |  |
| Net increase in commercial paper and short-term borrowings | 113.1  |  | 4.5  |  |
|  |  |  |
| Dividends paid to shareholders | (332.1) |  | (296.2) |  |
|  |  |  |
| Proceeds from stock option exercises  | 13.3  |  | 1.6  |  |
|  |  |  |
| Other financing activities | (31.0) |  | (15.9) |  |
| Cash Used for Financing Activities | (585.1) |  | (307.1) |  |
|  |  |  |
|  |  |  |
|  |  |  |
|  |  |  |
|  |  |  |
| Effect of Exchange Rate Changes on Cash | 3.8  |  | 49.2  |  |
| (Decrease) Increase in cash and cash items | (1,515.2) |  | 535.0  |  |
| Cash and Cash items – Beginning of year | 4,468.9  |  | 5,253.0  |  |
| Cash and Cash Items – End of Period | $2,953.7  |  | $5,788.0  |  |
|  |  |  |
|  |  |  |

The accompanying notes are an integral part of these statements.8
