Air Products & Chemicals, Inc.

15. SUPPLEMENTAL INFORMATION

Related Party Transactions

We have related party sales to some of our equity affiliates and joint venture partners as well as other income primarily from fees charged for use of Air Products' patents and technology. Sales to and other income from related parties totaled approximately $85 and $80 for the three months ended 31 December 2025 and 2024, respectively. Sales agreements with related parties include terms that are consistent with those that we believe would have been negotiated at an arm’s length with an independent party. As of 31 December 2025 and 30 September 2025, our consolidated balance sheets included related party trade receivables of approximately $160 and $105, respectively.

As of 31 December 2025, total debt owed to related parties was $240.7, consisting of shareholder loans with our joint venture partner, Lu’An Clean Energy Company. As of 30 September 2025, total debt owed to related parties was $236.5. These amounts included $60.0 and $59.0, respectively, presented within "Current portion of long-term debt" on the consolidated balance sheets.

During the first quarter of fiscal year 2025, we recorded shareholder activism-related costs of $29.9 ($21.9 after tax) in connection with a proxy contest. These costs included legal and other professional service fees and proxy solicitation expenses.

Income Taxes

Effective Tax Rate

Our effective tax rate was 18.7% and 17.8% for the three months ended 31 December 2025 and 2024, respectively.

Cash Paid for Taxes, Net of Refunds

Income tax payments, net of refunds, were $109.1 and $123.6 for the three months ended 31 December 2025 and 2024, respectively.

Debt Repayment

During the first quarter of fiscal year 2026, we repaid at maturity $550.0 aggregate principal amount of our 1.50% senior notes due October 2025, plus accumulated and unpaid interest through the maturity date.

Changes in Estimates

Changes in estimates on sale of equipment projects accounted for under the cost incurred input method are recognized as a cumulative adjustment for the inception-to-date effect of such change. Changes to project revenue and cost estimates unfavorably impacted operating results by approximately $33 and $28 for the first three months of fiscal years 2026 and 2025, respectively.