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On a non-GAAP basis, income from continuing operations of $322.0 increased 10%, or $29.1, and diluted earnings per share of $1.47 increased 9%, or $0.12. A summary table of changes in diluted earnings per share is presented below. We completed the spin-off of EMD as Versum Materials, Inc. on 1 October 2016. Higher volumes in the Industrial Gases - Global segment resulted from our Jazan sale-of-equipment project. Unfavorable currency impacts, primarily from the British Pound Sterling and the Chinese Renminbi, reduced sales by 3%. Higher energy and natural gas contractual cost pass-through to customers increased sales by 2%. Operating Income and Margin Cost of Sales and Gross Margin Interest Expense Three Months Ended 31 December 2016 2015 Interest incurred $ 35.8 $ 35.8 Less: capitalized interest 6.3 13.6 Interest expense $ 29.5 $ 22.2 Interest incurred was flat as the impact from a higher average interest rate on the debt portfolio was offset by the impact from a lower average debt balance and a stronger U.S. dollar on the translation of foreign currency interest. The change in capitalized interest was driven by a decrease in the carrying value of projects under construction, primarily as a result of our decision to exit from the Energy-from-Waste business in the second quarter of fiscal year 2016.


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