{"url_path":"/sec/apd/8-k/2026-06-30/item-2-06","section_key":"item-2-06","section_title":"Item 2.06 Material Impairments.","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-06-30","source_url":"https://www.sec.gov/Archives/edgar/data/2969/0001193125-26-289427-index.html","accession_number":"0001193125-26-289427","cik":"0000002969","ticker":"APD","issuer_name":"Air Products & Chemicals, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/2969/0001193125-26-289427-index.html","primary_entity_key":"0000002969","primary_entity_name":"Air Products & Chemicals, Inc."},"word_count":364,"has_tables":true,"body_markdown":"Item 2.06.\n\nMaterial Impairments.\n\nOn June 26, 2026, Air Products and Chemicals, Inc. (the “Company”) determined that, as part of a review initiated by its Board of Directors and Chief Executive Officer, it would exit projects to develop a clean energy complex to produce low carbon hydrogen and ammonia in Louisiana (the “Louisiana Clean Energy Complex”), a facility to produce green hydrogen in Arizona (the “Casa Grande Project”) and other smaller scale projects supporting clean energy distribution. As a result of these decisions, the Company expects to record a pre-tax charge of up to $2.9 billion, or $2.2 billion on an after-tax basis, in its fiscal 2026 third quarter, primarily to write down assets and terminate contractual commitments. Cash expenditures related to these charges are currently estimated not to exceed $925 million based on contractual terms and commitments; however, the Company anticipates lower cash spend once negotiations and ultimate settlements are finalized with third parties.\n\nThe Company previously disclosed that it would not make a final investment decision with respect to the Louisiana Clean Energy Complex unless it determined that it would be able to execute a de-risking strategy that included signing firm offtake agreements for hydrogen and nitrogen supply and achieving construction and capital costs in line with its return expectations, including divesting ammonia production assets and carbon sequestration elements. After a detailed review, the Company determined that the expected financial returns from the project would not meet its return criteria. As a consequence, the Company determined that it would exit the project.\n\nIn addition, on June 26, 2026 the Company determined that it would exit the Casa Grande Project and other smaller scale projects supporting clean energy distribution. These project exits were driven by challenging commercial conditions, project-specific economic factors, and slower than expected development in certain markets, largely hydrogen for mobility.\n\nEstimated contract cancellation and other project cancellation costs for these projects are subject to further refinement and may ultimately differ materially from actual costs recorded in the Company’s fiscal 2026 third quarter and beyond. Updates regarding the charges and estimated cash expenditures will be provided in the Company’s Quarterly Report on Form 10-Q for the period ending June 30, 2026."}