Air Products & Chemicals, Inc. (APD) – Company response
2026-02-05 · Re: · Accession 0000002969-26-000011 · Responded
Responds to staff letter of 2026-01-27.
2026-01-27 · Form 10-K for Fiscal Year Ended September 30, 2025 Filed November 20, 2025 · Comment 1 · Effective Tax Rate, page 136 Responded
Staff comment: We note that you attributed a (49.0)% income tax benefit to the business and asset actions in the effective tax rate reconciliation. We further note your statement that the tax benefit from the $3.7 billion pre-tax charges for business and asset actions is $695.2 million. Please provide us with a reconciliation of the tax benefit included in the effective tax rate reconciliation and the stated tax benefit with those costs. Please also consider the need to provide enhanced disclosures explaining the components of the business and asset actions line item in the effective tax rate reconciliation. letter →
Company response: Because we incurred a loss from continuing operations before taxes of $440.7 million in our Fiscal Year 2025 Consolidated Income Statement, negative percentages within the Effective Tax Rate Reconciliation Table reflect an increase to our Effective Tax Rate. The (49.0%) impact on our Effective Tax Rate primarily represents the portion of such costs included in our pre-tax charge for which we recognized a tax benefit, offset by a corresponding valuation allowance as such benefits were not more likely than not to be realized and therefore had a negative impact on our Effective Tax Rate. During our fiscal year 2025, we incurred pre-tax charges of $3,747.0 million for business and asset actions… response letter →
Full letter on EDGAR → · Filing index · All Air Products & Chemicals, Inc. (APD) correspondence
Income Taxes – what to check: Explain valuation allowance positive/negative evidence and the drivers of effective rate changes.
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