Summary
Air Products & Chemicals, Inc. (APD) has filed an 8-K detailing a reorganization of its industrial gas reporting segments, effective October 1, 2021. This change will affect how the company presents its financial results starting in the first quarter of fiscal year 2022. The primary impact for investors is a clearer, more granular view of geographic performance, with the former EMEA segment being split into distinct Europe and Middle East segments. Additionally, certain affiliate results previously under the Asia segment will now be reported within the Middle East segment. The company is providing unaudited historical financial information to allow for retrospective comparability with the new segment structure. While this reorganization does not alter previously reported consolidated financial statements or overall results of operations, it is crucial for investors to understand the new reporting framework to better analyze segment-level performance and trends moving forward. APD will also be presenting certain non-GAAP measures like adjusted EBITDA and adjusted EBITDA margin on a segment basis, which management utilizes for internal performance evaluation.
Key Highlights
- 1Reorganization of industrial gas segments effective October 1, 2021.
- 2New reporting structure will feature five segments: Industrial Gases – Americas, Asia, Europe, Middle East, and Corporate and other.
- 3The former EMEA segment is now separated into distinct Europe and Middle East segments.
- 4Results of an affiliate previously in the Asia segment will now be reported in the Middle East segment.
- 5Company is providing unaudited historical financial data for retrospective comparability with the new segment structure.
- 6Segment results will be presented retrospectively in the Form 10-Q for the first quarter of fiscal year 2022.
- 7Non-GAAP measures such as adjusted EBITDA and adjusted EBITDA margin will be reported on a segment basis.