Risk-free interest rate

[Table of Contents](#ic4907372b5a74ad699ec049e915a6266_10)12. SHARE-BASED COMPENSATION We have various share-based compensation programs, which include deferred stock units, stock options, and restricted stock. During the three months ended 31 December 2021, we granted market-based and time-based deferred stock units. Under all programs, the terms of the awards are fixed at the grant date. We issue shares from treasury stock upon the payout of deferred stock units, the exercise of stock options, and the issuance of restricted stock awards. As of 31 December 2021, there were 1.3 million shares available for future grant under our Long-Term Incentive Plan ("LTIP").Share-based compensation cost recognized on the consolidated income statements is summarized below:

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|  |  | Three Months Ended |  |  |
|  |  | 31 December |  |  |
|  |  | 2021 |  | 2020 |  |  |  |  |
| Before-tax share-based compensation cost |  | $16.8  |  |  | $9.5  |  |  |  |  |  |
| Income tax benefit |  | (4.1) |  |  | (2.3) |  |  |  |  |  |
| After-tax share-based compensation cost |  | $12.7  |  |  | $7.2  |  |  |  |  |  |

Before-tax share-based compensation cost is primarily included in "Selling and administrative" on our consolidated income statements. The amount of share-based compensation cost capitalized in the first three months of fiscal years 2022 and 2021 was not material.Deferred Stock UnitsDuring the three months ended 31 December 2021, we granted 74,079 market-based deferred stock units. The market-based deferred stock units are earned over the performance period beginning 1 October 2021 and ending 30 September 2024, conditioned on the level of our total shareholder return in relation to a defined peer group over the three-year performance period.The market-based deferred stock units had an estimated grant-date fair value of $427.23 per unit, which was estimated using a Monte Carlo simulation model. The model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the grant and calculates the fair value of the awards. We generally expense the grant-date fair value of these awards on a straight-line basis over the vesting period. The calculation of the fair value of market-based deferred stock units used the following assumptions:

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| Expected volatility |  | 30.5  | % |
| Risk-free interest rate |  | 0.8  | % |
| Expected dividend yield |  | 2.1  | % |

In addition, during the three months ended 31 December 2021, we granted 94,892 time-based deferred stock units at a weighted average grant-date fair value of $285.92.  
13. ACCUMULATED OTHER COMPREHENSIVE LOSS The table below summarizes changes in accumulated other comprehensive loss ("AOCL"), net of tax, attributable to Air Products for the three months ended 31 December 2021:

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|  | Derivativesqualifyingas hedges | Foreigncurrencytranslationadjustments | Pension andpostretirementbenefits | Total |
| Balance at 30 September 2021 | ($28.3) |  | ($893.8) |  | ($593.8) |  | ($1,515.9) |  |
| Other comprehensive (loss) income before reclassifications | (0.5) |  | 40.6  |  | —  |  | 40.1  |  |
| Amounts reclassified from AOCL | 18.7  |  | —  |  | 16.0  |  | 34.7  |  |
| Net current period other comprehensive income | 18.2  |  | 40.6  |  | 16.0  |  | 74.8  |  |
|  |  |  |  |  |
| Amount attributable to noncontrolling interests | 7.4  |  | 3.8  |  | —  |  | 11.2  |  |
| Balance at 31 December 2021 | ($17.5) |  | ($857.0) |  | ($577.8) |  | ($1,452.3) |  |



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