Document And Entity Information
Document And Entity Information | 3 Months Ended |
Dec. 31, 2021shares | |
Cover [Abstract] | |
Entity Registrant Name | ASHLAND GLOBAL HOLDINGS INC. |
Entity Central Index Key | 0001674862 |
Current Fiscal Year End Date | --09-30 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity File Number | 333-211719 |
Entity Tax Identification Number | 81-2587835 |
Entity Address, Address Line One | 8145 Blazer Drive |
Entity Address, City or Town | Wilmington |
Entity Address, State or Province | DE |
Entity Address, Postal Zip Code | 19808 |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Document Quarterly Report | true |
Document Transition Report | false |
City Area Code | 302 |
Local Phone Number | 995-3000 |
Entity Common Stock, Shares Outstanding | 56,923,767 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | ASH |
Title of 12(b) Security | Common Stock, par value $.01 per share |
Security Exchange Name | NYSE |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Entity Incorporation, State or Country Code | DE |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Sales | $ 512 | $ 468 |
Cost of sales | 351 | 321 |
Gross profit | 161 | 147 |
Selling, general and administrative expense | 82 | 101 |
Research and development expense | 13 | 13 |
Intangibles amortization expense | 24 | 21 |
Equity and other income | 0 | 5 |
Operating income | 42 | 17 |
Net interest and other expense (income) | 5 | (7) |
Net income on acquisitions and divestitures | 0 | 14 |
Income from continuing operations before income taxes | 37 | 38 |
Income tax expense (benefit) | 5 | (5) |
Income from continuing operations | 32 | 43 |
Income from discontinued operations (net of income taxes) - Note C | 16 | 13 |
Net income | $ 48 | $ 56 |
Basic earnings per share - Note M | ||
Income from continuing operations | $ 0.56 | $ 0.71 |
Income from discontinued operations | 0.29 | 0.22 |
Net income | 0.85 | 0.93 |
Diluted earnings per share - Note M | ||
Income from continuing operations | 0.55 | 0.70 |
Income from discontinued operations | 0.28 | 0.22 |
Net income | $ 0.83 | $ 0.92 |
COMPREHENSIVE INCOME | ||
Net income | $ 48 | $ 56 |
Other comprehensive income, net of tax | ||
Unrealized translation gain (loss) | (17) | 48 |
Unrealized loss on commodity hedges | (3) | 0 |
Other comprehensive income (loss), net of tax | (20) | 48 |
Comprehensive income | $ 28 | $ 104 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 | |
Current assets | |||
Cash and cash equivalents | $ 194 | $ 210 | |
Accounts receivable - Note H | [1] | 340 | 369 |
Inventories - Note F | 530 | 473 | |
Other assets | 66 | 68 | |
Current assets held for sale - Note B | 604 | 597 | |
Total current assets | 1,734 | 1,717 | |
Property, plant and equipment | |||
Cost | 3,070 | 3,066 | |
Accumulated depreciation | 1,669 | 1,639 | |
Net property, plant and equipment | 1,401 | 1,427 | |
Goodwill - Note G | 1,411 | 1,430 | |
Intangibles - Note G | 1,068 | 1,099 | |
Operating lease assets, net - Note I | 117 | 124 | |
Restricted investments - Note E | 390 | 384 | |
Asbestos insurance receivable - Note L | [2] | 132 | 134 |
Deferred income taxes | 30 | 30 | |
Other assets | 266 | 267 | |
Total noncurrent assets | 4,815 | 4,895 | |
Total assets | 6,549 | 6,612 | |
Current liabilities | |||
Short-term debt - Note H | 376 | 365 | |
Current portion of long-term debt - Note H | 13 | 9 | |
Trade and other payables | 236 | 236 | |
Accrued expenses and other liabilities | 214 | 251 | |
Current operating lease obligations - Note I | 22 | 23 | |
Current liabilities held for sale - Note B | 47 | 50 | |
Total current liabilities | 908 | 934 | |
Noncurrent liabilities | |||
Long-term debt - Note H | 1,580 | 1,596 | |
Asbestos litigation reserve - Note L | 472 | 490 | |
Deferred income taxes | 238 | 237 | |
Employee benefit obligations - Note K | 145 | 144 | |
Operating lease obligations - Note I | 104 | 110 | |
Other liabilities | 339 | 349 | |
Total noncurrent liabilities | 2,878 | 2,926 | |
Commitments and contingencies - Note L | |||
Stockholders' equity - Note N | 2,763 | 2,752 | |
Total liabilities and stockholders' equity | $ 6,549 | $ 6,612 | |
[1] | Accounts receivable includes an allowance for credit losses of $ 2 million at both December 31, 2021 and September 30, 2021 . | ||
[2] | Asbestos insurance receivable includes an allowance for credit losses of $ 3 million at both December 31, 2021 and September 30, 2021 . |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Current assets | ||
Allowance for credit losses on Accounts receivables | $ 2 | $ 2 |
Noncurrent assets | ||
Allowance for credit losses on Asbestos insurance receivable | $ 3 | $ 3 |
STATEMENTS OF CONDENSED CONSOLI
STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS (unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | |||
Net income | $ 48 | $ 56 | |
Income from discontinued operations (net of income taxes) | 16 | 13 | |
Adjustments to reconcile income from continuing operations to cash flows from operating activities: | |||
Depreciation and amortization | 60 | 59 | |
Original issue discount and debt issuance costs amortization | 1 | 1 | |
Deferred income taxes | 3 | (5) | |
Gain from sales of property and equipment | (4) | ||
Stock based compensation expense | 4 | 4 | |
Income from restricted investments | (13) | (23) | |
Income on acquisitions and divestitures | (14) | ||
Impairments | 9 | ||
Pension contributions | (1) | (2) | |
Change in operating assets and liabilities | [1] | (72) | 13 |
Total cash flows provided by operating activities from continuing operations | 14 | 81 | |
CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES FROM CONTINUING OPERATIONS | |||
Additions to property, plant and equipment | (15) | (30) | |
Proceeds from disposal of property, plant and equipment | 1 | 5 | |
Proceeds from sale or restructuring of operations | 14 | ||
Net purchase of funds restricted for specific transactions | (1) | ||
Reimbursements from restricted investments | 7 | 8 | |
Proceeds from sale of securities | 4 | 42 | |
Purchases of securities | (4) | (42) | |
Total cash flows used by investing activities from continuing operations | (7) | (4) | |
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS | |||
Proceeds from (repayment of) short-term debt | 11 | (187) | |
Cash dividends paid | (17) | (17) | |
Stock based compensation employee withholding taxes paid in cash | (5) | (3) | |
Total cash flows used by financing activities from continuing operations | (11) | (207) | |
CASH USED BY CONTINUING OPERATIONS | (4) | (130) | |
Cash provided (used) by discontinued operations | |||
Operating cash flows | (8) | 11 | |
Investing cash flows | (1) | (3) | |
Total cash provided by discontinued operations | (9) | 8 | |
Effect of currency exchange rate changes on cash and cash equivalents | (3) | 3 | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (16) | (119) | |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 210 | 454 | |
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 194 | $ 335 | |
[1] | Excludes changes resulting from operations acquired, sold or held for sale. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies | NOTE A – SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and Securities and Exchange Commission (SEC) regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. These statements omit certain information and footnote disclosures required for complete annual financial statements and, therefore, should be read in conjunction with Ashland Global Holdings Inc. and consolidated subsidiaries (Ashland) Annual Report on Form 10-K for the fiscal year ended September 30, 2021. Results of operations for the period ended December 31, 2021 are not necessarily indicative of the expected results for the remaining quarters in the fiscal year. On August 31, 2021, Ashland announced that it had signed a definitive agreement to sell substantially all of the assets and liabilities of its Performance Adhesives segment to Arkema, a French société anonyme. This expected divestiture represents a strategic shift in Ashland's business and qualified as a discontinued operation. As a result, the assets, liabilities, operating results and cash flows related to Performance Adhesives have been classified as discontinued operations for all periods presented within the Consolidated Financial Statements. See Notes B and C for additional information on this expected divestiture. As a result of classifying the Performance Adhesives reporting segment as a discontinued operation, Ashland is now comprised of the following reportable segments: Life Sciences, Personal Care (formerly Personal Care and Household), Specialty Additives and Intermediates (formerly Intermediates and Solvents). Unallocated and Other includes corporate governance activities and certain legacy matters. For additional information, see Note Q. Use of estimates, risks and uncertainties The preparation of Ashland’s Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. Significant items that are subject to such estimates and assumptions include, but are not limited to, long-lived assets (including goodwill and other intangible assets), income taxes and liabilities and receivables associated with asbestos litigation and environmental remediation. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ significantly from the estimates under different assumptions or conditions. Ashland’s results are affected by domestic and international economic, political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies and changes in the prices of certain key raw materials, can have a significant effect on operations. While Ashland maintains reserves for anticipated liabilities and carries various levels of insurance, Ashland could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings relating to asbestos, environmental remediation or other matters. New accounting pronouncements A description of new U.S. GAAP accounting standards issued or adopted during the current year is required in interim financial reporting. A detailed listing of new accounting standards relevant to Ashland is included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2021 . There were no new standards that were either issued or adopted in the current fiscal year that will have a material impact on Ashland's consolidated financial statements. |
Divestitures
Divestitures | 3 Months Ended |
Dec. 31, 2021 | |
Divestitures [Abstract] | |
Divestitures | NOTE B – DIVESTITURES Performance Adhesives On August 31, 2021, Ashland announced that it had signed a definitive agreement to sell substantially all of the assets and liabilities of its Performance Adhesives segment in a transaction valued at $ 1.65 billion. The transaction is expected to close prior to the end of the March 31, 2022 quarter, contingent on certain customary regulatory approvals, standard closing conditions and completion of required employee information and consultation processes. Upon the closing of this transaction, Ashland expects to recognize a gain within the Statements of Consolidated Comprehensive Income (Loss). Since this transaction represents a strategic shift in Ashland’s business and had a major effect on Ashland’s operations and financial results, the operating results and cash flows related to Performance Adhesives have been reflected as discontinued operations in the Statements of Consolidated Comprehensive Income (Loss) and Statements of Condensed Consolidated Cash Flows, while the assets and liabilities that are to be sold have been classified within the Condensed Consolidated Balance Sheets under a held for sale designation. See Note C for the results of operations for Performance Adhesives for all periods presented. Certain indirect corporate costs included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) that were previously allocated to the Performance Adhesives segment do not qualify for classification within discontinued operations and are now reported as selling, general and administrative expense within continuing operations on a consolidated basis and within the Unallocated and other segment. These costs were $ 4 million for both the three months ended December 31, 2021 and 2020, respectively. Subsequent to the completion of the sale, Ashland expects to provide certain transition services to Arkema for a fee. While the transition services are expected to vary in duration depending upon the type of service provided, Ashland does not expect these transition services will be significant. Other manufacturing facility sales During the three months ended December 31, 2020, Ashland completed the sale of a Specialty Additives facility, the assets and liabilities of which were classified as held for sale as of September 30, 2020. Net proceeds received from the sale were approximately $ 14 million in the December 31, 2020 quarter ($ 20 million in total including a deposit received in fiscal year 2020). Ashland recognized a pre-tax gain of $ 14 million recorded within the Net income on acquisitions and divestitures caption in the Statements of Consolidated Comprehensive Income (Loss). |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE C– DISCONTINUED OPERATIONS Ashland has divested certain businesses that have qualified as discontinued operations. The operating results from these divested businesses and subsequent adjustments related to ongoing assessments of certain retained liabilities and tax items have been recorded within the discontinued operations caption in the Statements of Consolidated Comprehensive Income (Loss) for all periods presented. Components of amounts reflected in the Statements of Consolidated Comprehensive Income (Loss) related to discontinued operations are presented in the following table for the three months ended December 31, 2021 and 2020. Three months ended December 31 (In millions) 2021 2020 Income (loss) from discontinued operations (net of tax) Performance Adhesives $ 17 $ 18 Distribution ( 1 ) ( 1 ) Gain (loss) on disposal of discontinued operations (net of taxes) Composites/Marl facility — ( 4 ) $ 16 $ 13 The following table presents a reconciliation of the captions within Ashland's Statements of Consolidated Comprehensive Income (Loss) for the income (loss) from discontinued operations attributable to Performance Adhesives for the three months ended December 31, 2021 and 2020. Three months ended December 31 (In millions) 2021 2020 Income (loss) from discontinued operations attributable Sales $ 96 $ 84 Cost of sales ( 67 ) ( 53 ) Selling, general and administrative expense ( 5 ) ( 5 ) Research and development expense ( 2 ) ( 2 ) Pretax income of discontinued operations 22 24 Income tax expense ( 5 ) ( 6 ) Income from discontinued operations $ 17 $ 18 |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | NOTE D – RESTRUCTURING ACTIVITIES Company-wide restructuring activities Ashland periodically implements company-wide restructuring programs related to acquisitions, divestitures and other cost reduction programs in order to enhance profitability through streamlined operations and an improved overall cost structure. Fiscal 2020 and 2021 restructuring program Ashland recorded severance income of $ 1 million and expense of $ 8 million during the three months ended December 31, 2021 and 2020, respectively, attributable to executive management changes and business management changes within the organization. As of December 31, 2021 , the severance reserve associated with this transition was $ 3 million. The following table details at December 31, 2021 and 2020, the amount of restructuring severance reserves related to this program. The severance reserves were primarily recorded within accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet as of December 31, 2021 and 2020. (In millions) Severance costs Balance at of September 30, 2021 $ 6 Restructuring reserve ( 1 ) Utilization (cash paid) ( 2 ) Balance at December 31, 2021 $ 3 (In millions) Severance costs Balance at of September 30, 2020 $ 39 Restructuring reserve 8 Utilization (cash paid) ( 11 ) Balance at December 31, 2020 $ 36 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE E – FAIR VALUE MEASUREMENTS As required by U.S. GAAP, Ashland uses applicable guidance for defining fair value, the initial recording and periodic remeasurement of certain assets and liabilities measured at fair value and related disclosures for instruments measured at fair value. Fair value accounting guidance establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). An instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows. Level 1 – Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect Ashland’s own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include Ashland’s own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment. For assets that are measured using quoted prices in active markets (Level 1), the total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs (Level 2) are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability. For all other assets and liabilities for which unobservable inputs are used (Level 3), fair value is derived using fair value models, such as a discounted cash flow model or other standard pricing models that Ashland deems reasonable. The following table summarizes financial instruments subject to recurring fair value measurements as of December 31, 2021. Carrying Total Quoted prices Significant Significant (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 194 $ 194 $ 194 $ — $ — Restricted investments (a) (b) 426 426 426 — — Investment of captive insurance company (c) 9 9 9 — — Foreign currency derivatives (d) 2 2 — 2 — Commodity derivatives (d) 2 2 — 2 — Total assets at fair value $ 633 $ 633 $ 629 $ 4 $ — Liabilities Foreign currency derivatives (e) $ 1 $ 1 $ — $ 1 $ — Commodity derivatives (e) 1 1 — 1 — Total liabilities at fair value $ 2 $ 2 $ — $ 2 $ — (a) Included in restricted investments and $ 36 million within other current assets in the Condensed Consolidated Balance Sheets . (b) Includes $ 335 million related to the Asbestos trust and $ 91 million related to the Environmental trust . (c) Included in other noncurrent assets in the Condensed Consolidated Balance Sheets . (d) Included in accounts receivable in the Condensed Consolidated Balance Sheets . (e) Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets . The following table summarizes financial asset instruments subject to recurring fair value measurements as of September 30, 2021. Carrying Total Quoted prices Significant Significant (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 210 $ 210 $ 210 $ — $ — Restricted investments (a) (b) 421 421 421 — — Investment of captive insurance company (c) 8 8 8 — — Foreign currency derivatives (d) 1 1 — 1 — Commodity derivatives (d) 5 5 — 5 — Total assets at fair value $ 645 $ 645 $ 639 $ 6 $ — Liabilities Foreign currency derivatives (e) $ 2 $ 2 $ — $ 2 $ — (a) Included in restricted investments and $ 37 million within other current assets in the Condensed Consolidated Balance Sheets . (b) Includes $ 333 million related to the Asbestos trust and $ 88 million related to the Environmental trust . (c) Included in other noncurrent assets in the Condensed Consolidated Balance Sheets . (d) Included in accounts receivable in the Condensed Consolidated Balance Sheets . (e) Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets . Restricted investments Investment income and realized gains and losses on these company-restricted investments are reported within the net interest and other expense caption on the Statements of Consolidated Comprehensive Income (Loss). The following table provides a summary of the activity within the investment portfolio as of December 31, 2021 and September 30, 2021: (In millions) December 31 September 30 Original cost $ 335 $ 335 Accumulated adjustments, net 37 ( 50 ) Adjusted cost, beginning of year (a) 372 285 Investment income (b) 8 12 Net unrealized gain (c) 53 49 Realized gains (c) — 17 Funds restricted for specific transactions (d) — 91 Disbursements ( 7 ) ( 33 ) Fair value $ 426 $ 421 (a) The adjusted cost of the demand deposits includes accumulated investment income, realized gains, additional funds restricted for specific transactions and disbursements recorded in previous periods. The adjusted cost as of December 31, 2021 includes the $ 90 million funding to establish the environmental trust . (b) Investment income relates to the demand deposit and includes interest income as well as dividend income transferred from the equity and fixed income mutual funds . (c) Presented under the original cost method . (d) The September 30, 2021 period included $ 90 million to establish the environmental trust . The following table presents gross unrealized gains and losses for the restricted investment securities as of December 31, 2021 and September 30, 2021: Gross Gross (In millions) Adjusted Cost Unrealized Gain Unrealized Loss Fair Value As of December 31, 2021 Demand deposit $ 11 $ — $ — $ 11 Equity mutual fund 139 51 — 190 Fixed income mutual fund 223 4 ( 2 ) 225 Fair value $ 373 $ 55 $ ( 2 ) $ 426 As of September 30, 2021 Demand deposit $ 6 $ — $ — $ 6 Equity mutual fund 143 44 ( 1 ) 186 Fixed income mutual fund 223 7 ( 1 ) 229 Fair value $ 372 $ 51 $ ( 2 ) $ 421 The following table presents the investment income, net gains and losses realized and disbursements related to the investments within the portfolio for the three months ended December 31, 2021 and 2020. Three months ended December 31 (In millions) 2021 2020 Investment income $ 8 $ 5 Net gains (losses) (a) 4 18 Disbursements ( 7 ) ( 8 ) (a) Ashland determined that all gains and (losses) were related to investment securities with readily determinable fair values. Due to the accounting guidance adopted in the first quarter of fiscal year 2019, the net unrealized gains and (losses) during fiscal September 30, 2019 and forward were recorded within the net interest and other expense caption in the Statements of Consolidated Income (Loss). Foreign currency derivatives Ashland conducts business in a variety of foreign currencies. Accordingly, Ashland regularly uses foreign currency derivative instruments to manage exposure on certain transactions denominated in foreign currencies to curtail potential earnings volatility effects on certain assets and liabilities, including short-term inter-company loans, denominated in currencies other than Ashland’s functional currency of an entity. These derivative contracts generally require exchange of one foreign currency for another at a fixed rate at a future date and generally have maturities of less than twelve months. The impacts of these contracts were largely offset by gains and losses resulting from the impact of changes in exchange rates on transactions denominated in non-functional currencies. The following table summarizes the net gains and losses recognized during the three months ended December 31, 2021 and 2020 within the Statements of Consolidated Comprehensive Income (Loss). Three months ended December 31 (In millions) 2021 2020 Foreign currency derivative gains $ 2 $ 3 The following table summarizes the fair values of the outstanding foreign currency derivatives as of December 31, 2021 and September 30, 2021 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets. December 31 September 30 (In millions) 2021 2021 Foreign currency derivative assets $ 2 $ 1 Notional contract values 252 150 Foreign currency derivative liabilities $ 1 $ 2 Notional contract values 156 212 Commodity derivatives To manage its exposure to the market price volatility of natural gas consumed by its US plants during the manufacturing process, Ashland regularly enters into forward contracts that are designated as cash flow hedges. Ashland recognized gains of $ 2 million and zero during the three months ended December 31, 2021 and 2020, respectively, within the Statements of Consolidated Comprehensive Income (Loss). The following table summarizes the fair values of the outstanding commodity derivatives as of December 31, 2021, and September 30, 2021 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets. December 31 September 30 (In millions) 2021 2021 Commodity derivative assets $ 2 $ 11 Notional contract values 5 6 Commodity derivative liabilities $ 1 $ — Notional contract values 7 — Other financial instruments At December 31, 2021 and September 30, 2021 , Ashland's long-term debt (including the current portion and excluding debt issuance cost discounts) had a carrying value of $ 1,610 million and $ 1,622 million, respectively, compared to a fair value of $ 1,752 million and $ 1,794 million, respectively. The fair values of long-term debt are based on quoted market prices or, if market prices are not available, the present values of the underlying cash flows discounted at Ashland’s incremental borrowing rates. |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE F – INVENTORIES Inventories are carried at the lower of cost or net realizable value. Inventories are primarily stated at cost using the weighted-average cost method. In addition, certain inventories are valued at cost using the last-in, first-out (LIFO) method. The following table summarizes Ashland’s inventories as of the reported Condensed Consolidated Balance Sheet dates. December 31 September 30 (In millions) 2021 2021 Finished products $ 319 $ 282 Raw materials, supplies and work in process 211 191 $ 530 $ 473 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | NOTE G – GOODWILL AND OTHER INTANGIBLES Goodwill Ashland tests goodwill and other indefinite-lived intangible assets for impairment annually as of July 1 and when events and circumstances indicate an impairment may have occurred. Ashland tests goodwill and other indefinite-lived intangible assets for impairment by comparing the estimated fair value of the reporting units (for goodwill) and other indefinite-lived intangible assets to the related carrying value. If the carrying amount of a reporting unit or other indefinite-lived intangible asset exceeds its estimated fair value, Ashland records an impairment loss based on the difference between fair value and carrying amount, in the case of reporting units, not to exceed to the associated carrying amount of goodwill. N o indicators of impairment were identified in the three months ended December 31, 2021. Ashland’s assessment of an impairment on any of these assets classified currently as having indefinite lives, including goodwill, could change in future periods if significant events happen and/or circumstances change that effect the previously mentioned assumptions such as: a significant change in projected business results, a divestiture decision, increase in Ashland’s weighted-average cost of capital rates, decrease in growth rates or assumptions, economic deterioration that is more severe or of a longer duration than anticipated, or another significant economic event. The following is a progression of goodwill by reportable segment for the three months ended December 31, 2021. Life Personal Specialty (In millions) Sciences Care (a) Additives (a) Intermediates (a) Total Balance at September 30, 2021 $ 856 $ 129 $ 445 $ — $ 1,430 Currency translation ( 12 ) ( 2 ) ( 5 ) — ( 19 ) Balance at December 31, 2021 $ 844 $ 127 $ 440 $ — $ 1,411 (a) As of December 31, 2021 and September 30, 2021, there were accumulated impairments of $ 356 million, $ 174 million and $ 90 million related to the Personal Care, Specialty Additives and Intermediates reportable segments, respectively. Other intangible assets Intangible assets principally consist of trademarks and trade names, intellectual property and customer and supplier relationships. Intangible assets classified as finite are amortized on a straight-line basis over their estimated useful lives. The cost of trademarks and trade names is amortized principally over 3 to 25 years , intellectual property over 5 to 25 years , and customer and supplier relationships over 3 to 24 years . Ashland annually reviews, as of July 1, indefinite-lived intangible assets for possible impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No indicators of impairment were identified in the three months ended December 31, 2021 . Intangible assets were comprised of the following as of December 31, 2021 and September 30, 2021. December 31, 2021 Gross Net carrying Accumulated carrying (In millions) amount amortization amount Definite-lived intangibles Trademarks and trade names $ 100 $ ( 34 ) $ 66 Intellectual property 745 ( 504 ) 241 Customer and supplier relationships 842 ( 359 ) 483 Total definite-lived intangibles 1,687 ( 897 ) 790 Indefinite-lived intangibles Trademarks and trade names 278 — 278 Total intangible assets $ 1,965 $ ( 897 ) $ 1,068 September 30, 2021 Gross Net carrying Accumulated carrying (In millions) amount amortization amount Definite-lived intangibles Trademarks and trade names $ 101 $ ( 32 ) $ 69 Intellectual property 750 ( 495 ) 255 Customer and supplier relationships 849 ( 352 ) 497 Total definite-lived intangibles 1,700 ( 879 ) 821 Indefinite-lived intangibles Trademarks and trade names 278 — 278 Total intangible assets $ 1,978 $ ( 879 ) $ 1,099 Amortization expense recognized on intangible assets was $ 24 million and $ 21 million for the three months ended December 31, 2021 and 2020, respectively, and is included in the intangibles amortization expense caption of the Statements of Consolidated Comprehensive Income (Loss). Estimated amortization expense for future periods is $ 94 million in 2022 (includes three months actual and nine months estimated), $ 93 million in 2023, $ 80 million in 2024, $ 78 million in 2025 and $ 75 million in 2026. Actual amounts may change from such estimated amounts due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions and divestitures, potential impairment, accelerated amortization, or other events. |
Debt and Other Financing Activi
Debt and Other Financing Activities | 3 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Activities | NOTE H – DEBT AND OTHER FINANCING ACTIVITIES The following table summarizes Ashland’s current and long-term debt as of the dates reported in the Condensed Consolidated Balance Sheets. (In millions) December 31, 2021 September 30, 2021 3.375 % Senior Notes, due 2031 $ 450 $ 450 2.00 % Senior Notes, due 2028 (Euro 500 million principal) 566 580 6.875 % notes, due 2043 282 282 Term loan A 250 250 Accounts receivable securitizations 113 117 6.50 % junior subordinated notes, due 2029 58 57 Revolving credit facility 240 225 Other (a) 10 9 Total debt 1,969 1,970 Short-term debt (includes current portion of long-term debt) ( 389 ) ( 374 ) Long-term debt (less current portion) $ 1,580 $ 1,596 (a) Includes $ 17 million of debt issuance cost discounts as of both December 31, 2021 and September 30, 2021. Additionally, as of both December 31, 2021 and September 30, 2021 , Other includes a European short-term loan facility with an outstanding balance $ 23 million. The scheduled aggregate maturities of long-term debt by year (including the current portion and excluding debt issuance costs) are as follows as of December 31, 2021 : $ 9 million remaining in 2022, $ 22 million in 2023, $ 44 million in 2024, $ 175 million in 2025 and zero in 2026. Accounts Receivable Facilities and Off-Balance Sheet Arrangements U.S. Accounts Receivable Sales Program Ashland continues to maintain its U.S. Accounts Receivable Sales Program entered into during fiscal 2021. Ashland accounts for the receivables transferred to buyers as sales. Ashland recognizes any gains or losses based on the excess of proceeds received net of buyer’s discounts and fees compared to the carrying value of the assets. Proceeds received, net of buyer’s discounts and fees, are recorded within the operating activities of the Statement of Condensed Consolidated Cash Flows. Losses on sale of assets, including related transaction expenses are recorded within the Net interest and other expense (income) caption of the Statement of Consolidated Comprehensive Income (Loss). Ashland regularly assesses its servicing obligations and records them as assets or liabilities when appropriate. Ashland also monitors its obligation with regards to the limited guarantee and records the resulting guarantee liability when warranted. When applicable, Ashland discloses the amount of the receivable that serves as over-collateralization as a restricted asset. Ashland recognized a loss of less then $ 1 million within its Statement of Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2021 within the net interest and other expense (income) caption associated with sales under the program. Ashland has recorded $ 100 million of sales at December 31, 2021 against the buyer’s limit, which was $ 100 million at December 31, 2021 compared to $ 113 million of sales at September 30, 2021 against the buyer's limit, which was $ 125 million at September 30, 2021. Ashland transferred $ 143 million and $ 167 million in receivables to the special purpose entity (SPE) as of December 31, 2021 and September 30, 2021, respectively. Ashland recorded liabilities related to its service obligations and limited guarantee as of December 31, 2021 and September 30, 2021 of less than $ 1 million. As of December 31, 2021 , the year-to-date gross cash proceeds received for receivables transferred and derecognized was $ 124 million, of which $ 137 million was collected, which includes collections from the sales in prior year transferred to the buyer. The difference of $ 13 million for receivables transferred and derecognized versus collected represents the impact of a reduction in sales volume during the current quarter, of which $ 3 million related to Performance Adhesives. Foreign Accounts Receivable Securitization Facility Ashland continues to maintain its Foreign 2018 Accounts Receivable Securitization Facility. Ashland accounts for the Foreign 2018 Accounts Receivable Securitization Facility as secured borrowings, and the receivables sold pursuant to the facility are included in the Consolidated Balance Sheets as accounts receivable. At December 31, 2021 and September 30, 2021, the outstanding amount of accounts receivable transferred by Ashland was $ 138 million and $ 152 million, respectively, and there were $ 113 million and $ 117 million, respectively, of borrowings (denominated in multiple currencies) under the facility. Available borrowing capacity and liquidity The borrowing capacity remaining under the 2020 Credit Agreement which included the $ 600 million Revolving Credit Facility was $ 341 million due to an outstanding balance of $ 240 million, as well as a reduction of $ 19 million for letters of credit outstanding as of December 31, 2021. Ashland's total borrowing capacity at December 31, 2021 was $ 341 million, which included zero of available capacity from the foreign 2018 Accounts Receivable Securitization Facility. Additionally, Ashland had no available liquidity under its current U.S. Accounts Receivable Sales Program as of December 31, 2021. Covenants related to current Ashland debt agreements Ashland's debt contains usual and customary representations, warranties and affirmative and negative covenants, including financial covenants for leverage and interest coverage ratios, limitations on liens, additional subsidiary indebtedness, restrictions on subsidiary distributions, investments, mergers, sale of assets and restricted payments and other customary limitations. As of December 31, 2021, Ashland is in compliance with all debt agreement covenant restrictions. The maximum consolidated net leverage ratio permitted under Ashland's current credit agreement (the 2020 Credit Agreement) is 4.0 . At December 31, 2021 , Ashland’s calculation of the consolidated net leverage ratio was 3.1 . The minimum required consolidated interest coverage ratio under the 2020 Credit Agreement during its entire duration is 3.0 . At December 31, 2021 , Ashland’s calculation of the interest coverage ratio was 9.4 . |
Leasing Arrangements
Leasing Arrangements | 3 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leasing Arrangements | NOTE I – LEASING ARRANGEMENTS Ashland leases certain office buildings, transportation equipment, warehouses and storage facilities, and equipment. Substantially all of Ashland’s leases are operating leases or short-term leases. Real estate leases represented over 80 % of the total lease liability at December 31, 2021 and September 30, 2021, respectively. The components of lease cost recognized within the Statements of Consolidated Comprehensive Income (Loss) were as follows: Three months ended December 31 (In millions) Location 2021 2020 Lease cost: Operating lease cost Selling, General & Administrative $ 3 $ 3 Operating lease cost Cost of Sales 4 4 Variable lease cost Selling, General & Administrative 1 — Variable lease cost Cost of Sales 1 1 Short-term leases Cost of Sales 1 1 Total lease cost $ 10 $ 9 The following table summarizes Ashland’s lease assets and liabilities as presented in the Condensed Consolidated Balance Sheet: (In millions) December 31 September 30 Assets Operating lease assets, net $ 117 $ 124 Total lease assets $ 117 $ 124 Liabilities Current operating lease obligations $ 22 $ 23 Non-current operating lease obligations 104 110 Total lease liabilities $ 126 $ 133 Ashland often has options to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at Ashland’s sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at Ashland’s discretion. Ashland evaluates renewal and termination options at the lease commencement date to determine if it is reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for operating leases as of both December 31, 2021 and September 30, 2021 was approximately 15 years . Residual value guarantees are not common within Ashland’s lease agreements nor are restrictions or covenants imposed by leases. Ashland has elected the practical expedient to combine lease and non-lease components. The discount rate implicit within the leases is generally not determinable. Therefore, Ashland determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate is determined using a buildup method resulting in an estimated range of secured borrowing rates matching the lease term and the currency of the jurisdiction in which lease payments are made, adjusted for impacts of collateral. Consideration was given to Ashland’s own relevant debt issuances as well as debt instruments of comparable companies with similar credit characteristics. The weighted average discount rate used to measure operating lease liabilities as of December 31, 2021 and September 30, 2021 was 2.8 %, respectively. There are no leases that have not yet commenced but that create significant rights and obligations. Right-of-use assets exchanged for new operating lease obligations was $ 1 million and $ 2 million for the three months ended December 31, 2021 and 2020, respectively. The following table provides cash paid for amounts included in the measurement of operating lease liabilities: Three months ended December 31 (In millions) 2021 2020 Operating cash flows from operating leases $ 7 $ 7 The following table summarizes Ashland's maturities of lease liabilities as of December 31, 2021 and September 30, 2021: (In millions) December 31 September 30 Remainder of 2022 $ 32 $ 39 2023 20 20 2024 16 16 2025 11 11 2026 9 9 Thereafter 77 78 Total lease payments 165 173 Less amount of lease payment representing interest ( 39 ) ( 40 ) Total present value of lease payments $ 126 $ 133 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE J – INCOME TAXES Current fiscal year Ashland’s effective tax rate in any interim period is subject to adjustments related to discrete items and the mix of domestic and foreign operating results. The overall effective tax rate was 13 % for the three months ended December 31, 2021. The current quarter tax rate was impacted by jurisdictional income mix, as well as $ 3 million from favorable tax discrete items. Prior fiscal year The overall effective tax rate was a benefit of 13 % for the three months ended December 31, 2020 . The quarter tax rate was primarily impacted by jurisdictional income mix, as well as $ 13 million from favorable tax discrete items primarily related to the Specialty Additives facility sale. Unrecognized tax benefits Changes in unrecognized tax benefits are summarized as follows for the three months ended December 31, 2021. (In millions) Balance at October 1, 2021 $ 82 Increases related to positions taken in the current year 1 Lapse of statute of limitations ( 1 ) Balance at December 31, 2021 $ 82 From a combination of statute expirations and audit settlements in the next twelve months, Ashland expects a decrease in the amount accrued for uncertain tax positions of between $ 6 million and $ 16 million for continuing operations. It is reasonably possible that there could be other material changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues or the reassessment of existing uncertain tax positions; however, Ashland is not able to estimate the impact of these items at this time. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | NOTE K - EMPLOYEE BENEFIT PLANS Plan contributions For the three months ended December 31, 2021 , Ashland contributed $ 1 million to its non-U.S. pension plans and zero to its U.S. pension plans. Ashland expects to make additional contributions of approximately $ 4 million to its non-U.S. and less than $ 1 million to its U.S. pension plans during the remainder of fiscal 2022. Components of net periodic benefit costs (income) The following table details the components of pension and other postretirement benefit costs for continuing operations. Pension benefits Other postretirement (In millions) 2021 2020 2021 2020 Three months ended December 31 Service cost $ 1 $ 1 $ — $ — Interest cost 2 2 — — Expected return on plan assets ( 2 ) ( 2 ) — — Total net periodic benefit costs $ 1 $ 1 $ — $ — For segment reporting purposes, service cost is proportionately allocated to each segment, excluding the Unallocated and other segment, and is recorded within the selling, general and administrative expense and cost of sales captions on the Statements of Consolidated Comprehensive Loss (Income). All other components are recorded within the other net periodic benefit income caption on the Statements of Consolidated Comprehensive Loss (Income), which netted to zero for the three months ended December 31, 2021 and 2020 . |
Litigation, Claims and Continge
Litigation, Claims and Contingencies | 3 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation, Claims and Contingencies | NOTE L – LITIGATION, CLAIMS AND CONTINGENCIES Asbestos litigation Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation (Riley) and the acquisition of Hercules in November 2008. Although Riley, a former subsidiary, was neither a producer nor a manufacturer of asbestos, its industrial boilers contained some asbestos-containing components provided by other companies. Hercules, an indirect wholly-owned subsidiary of Ashland, has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products sold by one of Hercules’ former subsidiaries to a limited industrial market. To assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs given various assumptions for Ashland and Hercules asbestos claims, Ashland retained third party actuarial experts Gnarus. The methodology used by Gnarus to project future asbestos costs is based largely on recent experience, including claim-filing and settlement rates, disease mix, enacted legislation, open claims and litigation defense. The claim experience of Ashland and Hercules are separately compared to the results of previously conducted third party epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, Gnarus estimates a range of the number of future claims that may be filed, as well as the related costs that may be incurred in resolving those claims. Changes in asbestos-related liabilities and receivables are recorded on an after-tax basis within the discontinued operations caption in the Statements of Consolidated Comprehensive Income (Loss). Ashland asbestos-related litigation The claims alleging personal injury caused by exposure to asbestos asserted against Ashland result primarily from indemnification obligations undertaken in 1990 in connection with the sale of Riley. The amount and timing of settlements and number of open claims can fluctuate from period to period. A summary of Ashland asbestos claims activity, excluding Hercules claims, follows. Three months ended December 31 Years ended September 30 (In thousands) 2021 2020 2021 2020 2019 Open claims - beginning of year 46 49 49 53 53 New claims filed — 1 2 2 2 Claims settled — — ( 1 ) ( 1 ) ( 1 ) Claims dismissed ( 1 ) ( 1 ) ( 4 ) ( 5 ) ( 1 ) Open claims - end of period 45 49 46 49 53 Ashland asbestos-related liability From the range of estimates, Ashland records the amount it believes to be the best estimate of future payments for litigation defense and claim settlement costs, which generally approximates the mid-point of the estimated range of exposure from model results. Ashland reviews this estimate and related assumptions quarterly and annually updates the results of a non-inflated, non-discounted approximate 50-year model developed with the assistance of Gnarus. During the most recent annual update of this estimate completed during fiscal year 2021, it was determined that the liability for Ashland asbestos-related claims should be increased by $ 12 million. Total reserves for asbestos claims were $ 307 million at December 31, 2021 compared to $ 320 million at September 30, 2021. A progression of activity in the asbestos reserve is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2021 2020 2021 2020 2019 Asbestos reserve - beginning of year $ 320 $ 335 $ 335 $ 352 $ 380 Reserve adjustment — — 12 13 1 Amounts paid ( 13 ) ( 10 ) ( 27 ) ( 30 ) ( 29 ) Asbestos reserve - end of period (a) $ 307 $ 325 $ 320 $ 335 $ 352 (a) Included $ 29 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . Ashland asbestos-related receivables Ashland has insurance coverage for certain litigation defense and claim settlement costs incurred in connection with its asbestos claims, and coverage-in-place agreements exist with the insurance companies that provide substantially all of the coverage that will be accessed. For the Ashland asbestos-related obligations, Ashland has estimated the value of probable insurance recoveries associated with its asbestos reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage, including an assumption that all solvent insurance carriers remain solvent. A substantial portion of the estimated receivables from insurance companies are expected to be due from domestic insurers. At December 31, 2021, Ashland’s receivable for recoveries of litigation defense and claim settlement costs from insurers amounted to $ 99 million (excluding the Hercules receivable for asbestos claims) compared to $ 100 million at September 30, 2021 . During fiscal year 2021, the annual update of the model used for purposes of valuing the asbestos reserve and its impact on valuation of future recoveries from insurers was completed. This model update resulted in a $ 8 million increase in the receivable for probable insurance recoveries. A progression of activity in the Ashland insurance receivable is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2021 2020 2021 2020 2019 Insurance receivable - beginning of year $ 100 $ 103 $ 103 $ 123 $ 140 Receivable adjustment (a) — ( 2 ) 6 1 ( 5 ) Insurance settlement — — — ( 10 ) — Amounts collected ( 1 ) ( 3 ) ( 9 ) ( 11 ) ( 12 ) Insurance receivable - end of period (b) $ 99 $ 98 $ 100 $ 103 $ 123 (a) The three months ended December 31, 2020 includes a reserve adjustment of $ 2 million related to allowances for credit losses as a result of Ashland’s adoption of the new credit measurement standard. The total allowance for credit losses was $ 2 million as of December 31, 2021. (b) Includes $ 12 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . Hercules asbestos-related litigation Hercules has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products which were sold by one of Hercules’ former subsidiaries to a limited industrial market. The amount and timing of settlements and number of open claims can fluctuate from period to period. A summary of Hercules’ asbestos claims activity follows. Three months ended December 31 Years ended September 30 (In thousands) 2021 2020 2021 2020 2019 Open claims - beginning of year 12 12 12 13 13 New claims filed 1 1 1 1 1 Claims dismissed ( 1 ) ( 1 ) ( 1 ) ( 2 ) ( 1 ) Open claims - end of period 12 12 12 12 13 Hercules asbestos-related liability From the range of estimates, Ashland records the amount it believes to be the best estimate of future payments for litigation defense and claim settlement costs, which generally approximates the mid-point of the estimated range of exposure from model results. Ashland reviews this estimate, and related assumptions quarterly and annually updates the results of a non-inflated, non-discounted approximate 50-year model developed with the assistance of Gnarus. As a result of the most recent annual update of this estimate, completed during fiscal year 2021, it was determined that the liability for Hercules asbestos-related claims should be increased by $ 8 million. Total reserves for asbestos claims were $ 211 million at December 31, 2021 compared to $ 217 million at September 30, 2021. A progression of activity in the asbestos reserve is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2021 2020 2021 2020 2019 Asbestos reserve - beginning of year $ 217 $ 229 $ 229 $ 252 $ 282 Reserve adjustments — — 8 ( 3 ) ( 10 ) Amounts paid ( 6 ) ( 5 ) ( 20 ) ( 20 ) ( 20 ) Asbestos reserve - end of period (a) $ 211 $ 224 $ 217 $ 229 $ 252 (a) Included $ 17 million and $ 18 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 , respectively. Hercules asbestos-related receivables For the Hercules asbestos-related obligations, certain reimbursement obligations pursuant to coverage-in-place agreements with insurance carriers exist. Ashland has estimated the value of probable insurance recoveries associated with its asbestos reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage, including an assumption that all solvent insurance carriers remain solvent. The estimated receivable consists exclusively of solvent domestic insurers. As of December 31, 2021 , Ashland’s receivable for recoveries of litigation defense and claims costs from insurers with respect to Hercules amounted to $ 47 million. During fiscal year 2021, the annual update of the model used for purposes of valuing the asbestos reserve and its impact on valuation of future recoveries from insurers was completed. This model update resulted in an increase of $ 2 million in the receivable for probable insurance recoveries. A progression of activity in the Hercules insurance receivable is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2021 2020 2021 2020 2019 Insurance receivable - beginning of year $ 47 $ 47 $ 47 $ 49 $ 54 Receivable adjustment (a) — ( 1 ) 1 ( 2 ) ( 5 ) Amounts collected — — ( 1 ) — — Insurance receivable - end of period (b) $ 47 $ 46 $ 47 $ 47 $ 49 (a) The three months ended December 31, 2020 includes a reserve adjustment of $ 1 million related to allowances for credit losses as a result of Ashland’s adoption of the new credit measurement standard. The total allowance for credit losses was $ 1 million as of December 31, 2021 . (b) Includes $ 1 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . Asbestos litigation cost projection Projecting future asbestos costs is subject to numerous variables that are extremely difficult to predict. In addition to the significant uncertainties surrounding the number of claims that might be received, other variables include the type and severity of the disease alleged by each claimant, the long latency period associated with asbestos exposure, mortality rates, dismissal rates, costs of medical treatment, the impact of bankruptcies of other companies that are co-defendants in claims, uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, and the impact of potential changes in legislative or judicial standards. Furthermore, any predictions with respect to these variables are subject to even greater uncertainty as the projection period lengthens. Considering these inherent uncertainties, Ashland believes that the asbestos reserves for Ashland and Hercules represent the best estimate within a range of possible outcomes. As a part of the process to develop these estimates of future asbestos costs, a range of long-term cost models was developed. These models are based on national studies that predict the number of people likely to develop asbestos-related diseases and are heavily influenced by assumptions regarding long-term inflation rates for indemnity payments and legal defense costs, as well as other variables mentioned previously. Ashland has currently estimated in various models ranging from approximately 40 to 50 year periods that it is reasonably possible that total future litigation defense and claim settlement costs on an inflated and undiscounted basis could range as high as approximately $ 482 million for the Ashland asbestos-related litigation (current reserve of $ 307 million) and approximately $ 334 million for the Hercules asbestos-related litigation (current reserve of $ 211 million), depending on the combination of assumptions selected in the various models. If actual experience is worse than projected, relative to the number of claims filed, the severity of alleged disease associated with those claims or costs incurred to resolve those claims, or actuarial refinement or improvements to the assumptions used within these models are initiated, Ashland may need to further increase the estimates of the costs associated with asbestos claims and these increases could be material over time. Environmental remediation and asset retirement obligations Ashland is subject to various federal, state and local environmental laws and regulations that require environmental assessment or remediation efforts (collectively, environmental remediation) at multiple locations. At December 31, 2021 , such locations included 80 sites where Ashland has been identified as a potentially responsible party under Superfund or similar state laws, 112 current and former operating facilities (including certain operating facilities conveyed as part of previous divestitures) and about 1,225 service station properties, of which 17 are being actively remediated. Ashland’s reserves for environmental remediation and related environmental litigation amounted to $ 197 million at December 31, 2021 compared to $ 207 million at September 30, 2021 , of which $ 142 million at December 31, 2021 and $ 152 million at September 30, 2021 were classified in other noncurrent liabilities on the Condensed Consolidated Balance Sheets. The remaining reserves were classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. The following table provides a reconciliation of the changes in the environmental remediation reserves during the three months ended December 31, 2021 and 2020. Three months ended December 31 (In millions) 2021 2020 Reserve - beginning of period $ 207 $ 200 Disbursements ( 14 ) ( 10 ) Revised obligation estimates and accretion 4 5 Reserve - end of period $ 197 $ 195 The total reserves for environmental remediation reflect Ashland’s estimates of the most likely costs that will be incurred over an extended period to remediate identified conditions for which the costs are reasonably estimable, without regard to any third-party recoveries. Engineering studies, probability techniques, historical experience and other factors are used to identify and evaluate remediation alternatives and their related costs in determining the estimated reserves for environmental remediation. Ashland continues to discount certain environmental sites and regularly adjusts its reserves as environmental remediation continues. Ashland has estimated the value of its probable insurance recoveries associated with its environmental reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage. At December 31, 2021 and September 30, 2021 , Ashland’s recorded receivable for these probable insurance recoveries was $ 15 million and $ 16 million, of which $ 13 million at December 31, 2021 and September 30, 2021 was classified in other noncurrent assets on the Condensed Consolidated Balance Sheets. Components of environmental remediation expense included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) are presented in the following table for the three ended December 31, 2021 and 2020. Three months ended December 31 (In millions) 2021 2020 Environmental expense $ 3 $ 5 Legal expense 1 1 Total expense 4 6 Insurance receivable — ( 1 ) Total expense, net of receivable activity (a) $ 4 $ 5 (a) Net expense of $ 1 million for the three months ended December 31, 2021 and 2020, relates to divested businesses which qualified for treatment as discontinued operations for which certain environmental liabilities were retained by Ashland. These amounts are classified within the income from discontinued operations caption of the Statements of Consolidated Comprehensive Income (loss). Environmental remediation reserves are subject to numerous inherent uncertainties that affect Ashland’s ability to estimate its share of the costs. Such uncertainties involve the nature and extent of contamination at each site, the extent of required cleanup efforts under existing environmental regulations, widely varying costs of alternate cleanup methods, changes in environmental regulations, the potential effect of continuing improvements in remediation technology, and the number and financial strength of other potentially responsible parties at multiparty sites. Although it is not possible to predict with certainty the ultimate costs of environmental remediation, Ashland currently estimates that the upper end of the reasonably possible range of future costs for identified sites could be as high as approximately $ 465 million. The largest reserve for any site is 14 % of the remediation reserve. Other legal proceedings and claims In addition to the matters described above, there are other various claims, lawsuits and administrative proceedings pending or threatened against Ashland and its current and former subsidiaries. Such actions are with respect to commercial matters, product liability, toxic tort liability, and other environmental matters, which seek remedies or damages, some of which are for substantial amounts. While Ashland cannot predict with certainty the outcome of such actions, it believes that adequate reserves have been recorded and losses already recognized with respect to such actions were immaterial as of December 31, 2021 and September 30, 2021. There is a reasonable possibility that a loss exceeding amounts already recognized may be incurred related to these actions; however, Ashland believes that such potential losses were immaterial as of December 31, 2021 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE M – EARNINGS PER SHARE The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Stock appreciation rights (SARs), stock options and warrants available to purchase shares outstanding for each reporting period whose grant price was greater than the average market price of Ashland Common Stock for each applicable period were not included in the computation of income from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was approximately 1 million and 2 million at December 31, 2021 and 2020 , respectively. Earnings per share is reported under the treasury stock method. Three months ended December 31 (In millions, except per share data) 2021 2020 Numerator Numerator for basic and diluted EPS - Income (loss) from continuing operations $ 32 $ 43 Denominator Denominator for basic EPS - Weighted- 57 60 Share based awards convertible to common shares 1 1 Denominator for diluted EPS - Adjusted weighted- 58 61 EPS from continuing operations Basic $ 0.56 $ 0.71 Diluted 0.55 0.70 |
Equity Items
Equity Items | 3 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity Items | NOTE N – EQUITY ITEMS Stockholder dividends Dividends of 30 cents per share were paid in the first quarter of fiscal 2022 and 27.5 cents per share were paid in the first quarter of fiscal 2021. Accumulated other comprehensive income (loss) Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented below, before tax and net of tax effects. 2021 2020 (In millions) Before Tax Net of Before Tax Net of Three months ended December 31 Other comprehensive income (loss) Unrealized translation gain (loss) $ ( 18 ) $ 1 $ ( 17 ) $ 48 $ — $ 48 Unrealized gain (loss) on commodity hedges ( 4 ) 1 ( 3 ) — — — Total other comprehensive income (loss) $ ( 22 ) $ 2 $ ( 20 ) $ 48 $ — $ 48 Summary of stockholders’ equity A reconciliation of changes in stockholders’ equity are as follows: Three months ended December 31 (In millions) 2021 2020 Common stock and paid in capital Balance, beginning of period $ 328 $ 770 Common shares issued under stock incentive and other plans (a) — 1 Balance, end of period 328 771 Retained earnings Balance, beginning of period 2,796 2,649 Adoption of new accounting pronouncements — ( 2 ) Net income 48 56 Regular dividends ( 17 ) ( 17 ) Balance, end of period 2,827 2,686 Accumulated other comprehensive income (loss) Balance, beginning of period ( 372 ) ( 383 ) Unrealized translation gain (loss) ( 17 ) 48 Unrealized loss on commodity hedges ( 3 ) — Balance, end of period ( 392 ) ( 335 ) Total stockholders' equity $ 2,763 $ 3,122 Cash dividends declared per common share $ 0.300 $ 0.275 (a) Common shares issued were 94,715 shares and 99,194 for the three months ended December 31, 2021 and 2020 , respectively. |
Stock Incentive Plans
Stock Incentive Plans | 3 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Incentive Plans | NOTE O – STOCK INCENTIVE PLANS The components of Ashland’s pre-tax stock-based compensation expense included in continuing operations are as follows: Three months ended December 31 (In millions) 2021 (a) 2020 (b) SARs $ — $ 1 Nonvested stock awards 4 2 Performance share awards 2 2 $ 6 $ 5 (a) Included $ 2 million of expense related to cash-settled nonvested restricted stock awards during the three months ended December 31, 2021 . (b) Included $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three months ended December 31, 2020. |
Revenue
Revenue | 3 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE P – REVENUE Disaggregation of revenue Ashland disaggregates its revenue by segment and geographical region as Ashland believes these categories best depict how management reviews the financial performance of its operations. See the following tables for details. See Note Q for additional information. Sales by geography Three months ended December 31 (In millions) 2021 2020 Life Sciences North America $ 53 $ 51 Europe 55 54 Asia Pacific 46 47 Latin America & other 16 18 $ 170 $ 170 Three months ended December 31 (In millions) 2021 2020 Personal Care North America $ 41 $ 41 Europe 57 46 Asia Pacific 32 21 Latin America & other 17 18 $ 147 $ 126 Three months ended December 31 (In millions) 2021 2020 Specialty Additives North America $ 52 $ 45 Europe 55 52 Asia Pacific 41 41 Latin America & other 8 9 $ 156 $ 147 Three months ended December 31 (In millions) 2021 2020 Intermediates North America $ 32 $ 21 Europe 10 4 Asia Pacific 9 7 Latin America & other 2 1 $ 53 $ 33 Trade receivables Trade receivables are defined as receivables arising from contracts with customers and are recorded within the accounts receivable caption within the Condensed Consolidated Balance Sheets. Ashland’s trade receivables were $ 288 million and $ 308 million as of December 31, 2021 and September 30, 2021 , respectively. See Note H for additional information on Ashland’s program to sell certain receivables on a revolving basis to third party banks up to an aggregate purchase limit (U.S Accounts Receivable Sales Program). |
Reportable Segment Information
Reportable Segment Information | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | NOTE Q – REPORTABLE SEGMENT INFORMATION Ashland determines its reportable segments based on how operations are managed internally for the products and services sold to customers, including how the results are reviewed by the chief operating decision maker, which includes determining resource allocation methodologies used for reportable segments. Operating income and EBITDA are the primary measures of performance that are reviewed by the chief operating decision maker in assessing each reportable segment's financial performance. Ashland does not aggregate operating segments to arrive at these reportable segments. Change in reportable segments As previously described in Note B, Ashland announced that it had signed a definitive agreement on August 30, 2021 to sell its Performance Adhesives segment. The operating results and cash flows for the Performance Adhesives segment have been classified as discontinued operations within the Consolidated Financial Statements for all periods presented. As a result, Ashland's reportable segments included Life Sciences, Personal Care, Specialty Additives and Intermediates. Unallocated and Other includes corporate governance activities and certain legacy matters. The historical segment information has been recast to conform to the current segment structure. Reportable segment business descriptions Life Sciences is comprised of pharmaceuticals, nutrition, nutraceuticals, agricultural chemicals, advanced materials and fine chemicals. Pharmaceutical solutions include controlled release polymers, disintegrants, film coatings, solubilizers, and tablet binders. Nutrition solutions include for thickeners, stabilizers, emulsifiers and additives for enhancing mouthfeel, controlling moisture migration, reducing oil uptake and controlling color. Nutraceutical solutions include products for weight management, joint comfort, stomach and intestinal health, sports nutrition and general wellness, and provide custom formulation, toll processing and particle engineering solutions. Customers include pharmaceutical, food, beverage, nutraceuticals and supplements manufacturers, hospitals and radiologists and industrial manufacturers. Personal Care (formerly Personal Care & Household) is comprised of biofunctionals, preservatives, skin care, sun care, oral care, hair care and household. These businesses have a broad range of nature-based, biodegradable, and performance ingredients for customer-driven solutions to help protect, renew, moisturize and revitalize skin and hair, and provide solutions for toothpastes, mouth washes and rinses, denture cleaning and care for teeth. Household supplies nature-derived rheology ingredients, biodegradable surface wetting agents, performance encapsulates, and specialty polymers for household, industrial and institutional cleaning products. Customers include formulators at large multinational branded consumer products companies and smaller, independent boutique companies. Specialty Additives is comprised of rheology- and performance-enhancing additives serving the coatings, construction, energy, automotive and various industrial markets. Solutions include coatings additives for architectural paints, finishes and lacquers, cement- and gypsum- based dry mortars, ready-mixed joint compounds, synthetic plasters for commercial and residential construction, and specialty materials for industrial applications. Products include rheology modifiers (cellulosic and associative thickeners), foam control agents, surfactants and wetting agents, pH neutralizers, advanced ceramics used in catalytic converters, and environmental filters, ingredients that aid the manufacturing process of ceramic capacitors, plasma display panels and solar cells, ingredients for textile printing, thermoplastic metals and alloys for welding. Products help improve desired functional outcomes through rheology modification and control, water retention, workability, adhesive strength, binding power, film formation, deposition and suspension and emulsification. Customers include global paint manufacturers, electronics and automotive manufacturers, textile mills, the construction industry, and welders. Intermediates (formerly Intermediates and Solvents) is comprised of the production of 1,4 butanediol (BDO) and related derivatives, including n-methylpyrrolidone. These products are used as chemical intermediates in the production of engineering polymers and polyurethanes, and as specialty process solvents in a wide array of applications including electronics, pharmaceuticals, water filtration membranes and more. Butanediol is also provided as a feedstock to Life Sciences, Personal Care, and Specialty Additives for use as a raw material. Unallocated and Other generally includes items such as certain significant company-wide restructuring activities, corporate governance costs and legacy costs or activities that relate to divested businesses that are no longer operated by Ashland. Reportable segment results Results of Ashland’s reportable segments are presented based on its management and internal accounting structure. The structure is specific to Ashland; therefore, the financial results of Ashland’s reportable segments are not necessarily comparable with similar information for other comparable companies. Ashland allocates all significant costs to its reportable segments except for certain significant company-wide restructuring activities, certain corporate governance costs and other costs or activities that relate to former businesses that Ashland no longer operates. The service cost component of pension and other postretirement benefits costs is allocated to each reportable segment on a ratable basis; while the remaining components of pension and other postretirement benefits costs are recorded within the other net periodic benefit income caption on the Statements of Consolidated Comprehensive Income (Loss). Ashland refines its expense allocation methodologies to the reportable segments from time to time as internal accounting practices are improved, more refined information becomes available and the industry or market changes. Significant revisions to Ashland’s methodologies are adjusted for all segments on a retrospective basis. The following table presents various financial information for each reportable segment for the three months ended December 31, 2021 and 2020. Three months ended December 31 (In millions - unaudited) 2021 2020 SALES Life Sciences $ 170 $ 170 Personal Care 147 126 Specialty Additives 156 147 Intermediates 53 33 Intersegment sales (a) ( 14 ) ( 8 ) $ 512 $ 468 OPERATING INCOME (LOSS) Life Sciences $ 21 $ 29 Personal Care 15 15 Specialty Additives (b) 17 2 Intermediates 16 2 Unallocated and other ( 27 ) ( 31 ) $ 42 $ 17 DEPRECIATION EXPENSE Life Sciences $ 8 $ 9 Personal Care 9 10 Specialty Additives 16 16 Intermediates 3 3 $ 36 $ 38 AMORTIZATION EXPENSE Life Sciences $ 7 $ 7 Personal Care 12 9 Specialty Additives 5 5 Intermediates — — $ 24 $ 21 EBITDA (c) Life Sciences $ 36 $ 45 Personal Care 36 34 Specialty Additives 38 23 Intermediates 19 5 Unallocated and other ( 27 ) ( 31 ) $ 102 $ 76 December 31 September 30 (In millions - unaudited) 2021 2021 TOTAL ASSETS Life Sciences $ 1,922 $ 1,945 Personal Care 1,110 1,145 Specialty Additives 1,618 1,636 Intermediates 163 160 Unallocated and other 1,736 1,726 $ 6,549 $ 6,612 (a) Intersegment sales from Intermediates are accounted for at prices that approximate fair value. All other intersegment sales are accounted for at cost. (b) Includes a capital project impairment of $ 9 million for the three months ended December 20, 2020 relating to a long-term capital project plan change at a plant facility. (c) Excludes income (loss) from discontinued operations, other net periodic benefit income (expense) and net income (loss) on divestitures. See the Statement of Consolidated Comprehensive Income (Loss) for applicable amounts excluded. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and Securities and Exchange Commission (SEC) regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. These statements omit certain information and footnote disclosures required for complete annual financial statements and, therefore, should be read in conjunction with Ashland Global Holdings Inc. and consolidated subsidiaries (Ashland) Annual Report on Form 10-K for the fiscal year ended September 30, 2021. Results of operations for the period ended December 31, 2021 are not necessarily indicative of the expected results for the remaining quarters in the fiscal year. On August 31, 2021, Ashland announced that it had signed a definitive agreement to sell substantially all of the assets and liabilities of its Performance Adhesives segment to Arkema, a French société anonyme. This expected divestiture represents a strategic shift in Ashland's business and qualified as a discontinued operation. As a result, the assets, liabilities, operating results and cash flows related to Performance Adhesives have been classified as discontinued operations for all periods presented within the Consolidated Financial Statements. See Notes B and C for additional information on this expected divestiture. As a result of classifying the Performance Adhesives reporting segment as a discontinued operation, Ashland is now comprised of the following reportable segments: Life Sciences, Personal Care (formerly Personal Care and Household), Specialty Additives and Intermediates (formerly Intermediates and Solvents). Unallocated and Other includes corporate governance activities and certain legacy matters. For additional information, see Note Q. |
Use of Estimates, Risks and Uncertainties | Use of estimates, risks and uncertainties The preparation of Ashland’s Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. Significant items that are subject to such estimates and assumptions include, but are not limited to, long-lived assets (including goodwill and other intangible assets), income taxes and liabilities and receivables associated with asbestos litigation and environmental remediation. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ significantly from the estimates under different assumptions or conditions. Ashland’s results are affected by domestic and international economic, political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies and changes in the prices of certain key raw materials, can have a significant effect on operations. While Ashland maintains reserves for anticipated liabilities and carries various levels of insurance, Ashland could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings relating to asbestos, environmental remediation or other matters. |
New Accounting Pronouncements | New accounting pronouncements A description of new U.S. GAAP accounting standards issued or adopted during the current year is required in interim financial reporting. A detailed listing of new accounting standards relevant to Ashland is included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2021 . There were no new standards that were either issued or adopted in the current fiscal year that will have a material impact on Ashland's consolidated financial statements. |
Fair Value of Financial Instruments Policy | As required by U.S. GAAP, Ashland uses applicable guidance for defining fair value, the initial recording and periodic remeasurement of certain assets and liabilities measured at fair value and related disclosures for instruments measured at fair value. Fair value accounting guidance establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). An instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows. Level 1 – Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect Ashland’s own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include Ashland’s own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment. For assets that are measured using quoted prices in active markets (Level 1), the total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs (Level 2) are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability. For all other assets and liabilities for which unobservable inputs are used (Level 3), fair value is derived using fair value models, such as a discounted cash flow model or other standard pricing models that Ashland deems reasonable. |
Inventories | Inventories are carried at the lower of cost or net realizable value. Inventories are primarily stated at cost using the weighted-average cost method. In addition, certain inventories are valued at cost using the last-in, first-out (LIFO) method. |
Goodwill and Intangible Assets, Goodwill | Ashland tests goodwill and other indefinite-lived intangible assets for impairment annually as of July 1 and when events and circumstances indicate an impairment may have occurred. Ashland tests goodwill and other indefinite-lived intangible assets for impairment by comparing the estimated fair value of the reporting units (for goodwill) and other indefinite-lived intangible assets to the related carrying value. If the carrying amount of a reporting unit or other indefinite-lived intangible asset exceeds its estimated fair value, Ashland records an impairment loss based on the difference between fair value and carrying amount, in the case of reporting units, not to exceed to the associated carrying amount of goodwill. N o indicators of impairment were identified in the three months ended December 31, 2021. Ashland’s assessment of an impairment on any of these assets classified currently as having indefinite lives, including goodwill, could change in future periods if significant events happen and/or circumstances change that effect the previously mentioned assumptions such as: a significant change in projected business results, a divestiture decision, increase in Ashland’s weighted-average cost of capital rates, decrease in growth rates or assumptions, economic deterioration that is more severe or of a longer duration than anticipated, or another significant economic event. |
Finite-Lived Intangible Asset | Intangible assets principally consist of trademarks and trade names, intellectual property and customer and supplier relationships. Intangible assets classified as finite are amortized on a straight-line basis over their estimated useful lives. The cost of trademarks and trade names is amortized principally over 3 to 25 years , intellectual property over 5 to 25 years , and customer and supplier relationships over 3 to 24 years . |
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived | Ashland annually reviews, as of July 1, indefinite-lived intangible assets for possible impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No indicators of impairment were identified in the three months ended December 31, 2021 . |
Commitments and Contingencies Policy | Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation (Riley) and the acquisition of Hercules in November 2008. Although Riley, a former subsidiary, was neither a producer nor a manufacturer of asbestos, its industrial boilers contained some asbestos-containing components provided by other companies. Hercules, an indirect wholly-owned subsidiary of Ashland, has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products sold by one of Hercules’ former subsidiaries to a limited industrial market. To assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs given various assumptions for Ashland and Hercules asbestos claims, Ashland retained third party actuarial experts Gnarus. The methodology used by Gnarus to project future asbestos costs is based largely on recent experience, including claim-filing and settlement rates, disease mix, enacted legislation, open claims and litigation defense. The claim experience of Ashland and Hercules are separately compared to the results of previously conducted third party epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, Gnarus estimates a range of the number of future claims that may be filed, as well as the related costs that may be incurred in resolving those claims. Changes in asbestos-related liabilities and receivables are recorded on an after-tax basis within the discontinued operations caption in the Statements of Consolidated Comprehensive Income (Loss). |
Environmental Cost Policy | The total reserves for environmental remediation reflect Ashland’s estimates of the most likely costs that will be incurred over an extended period to remediate identified conditions for which the costs are reasonably estimable, without regard to any third-party recoveries. Engineering studies, probability techniques, historical experience and other factors are used to identify and evaluate remediation alternatives and their related costs in determining the estimated reserves for environmental remediation. Ashland continues to discount certain environmental sites and regularly adjusts its reserves as environmental remediation continues. Ashland has estimated the value of its probable insurance recoveries associated with its environmental reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage. At December 31, 2021 and September 30, 2021 , Ashland’s recorded receivable for these probable insurance recoveries was $ 15 million and $ 16 million, of which $ 13 million at December 31, 2021 and September 30, 2021 was classified in other noncurrent assets on the Condensed Consolidated Balance Sheets. |
Earnings Per Share | The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Stock appreciation rights (SARs), stock options and warrants available to purchase shares outstanding for each reporting period whose grant price was greater than the average market price of Ashland Common Stock for each applicable period were not included in the computation of income from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was approximately 1 million and 2 million at December 31, 2021 and 2020 , respectively. Earnings per share is reported under the treasury stock method. |
Segment Reporting | Ashland determines its reportable segments based on how operations are managed internally for the products and services sold to customers, including how the results are reviewed by the chief operating decision maker, which includes determining resource allocation methodologies used for reportable segments. Operating income and EBITDA are the primary measures of performance that are reviewed by the chief operating decision maker in assessing each reportable segment's financial performance. Ashland does not aggregate operating segments to arrive at these reportable segments. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Components of Amounts in the Statements of Consolidated Income (Loss) Related To Discontinued Operations | Components of amounts reflected in the Statements of Consolidated Comprehensive Income (Loss) related to discontinued operations are presented in the following table for the three months ended December 31, 2021 and 2020. Three months ended December 31 (In millions) 2021 2020 Income (loss) from discontinued operations (net of tax) Performance Adhesives $ 17 $ 18 Distribution ( 1 ) ( 1 ) Gain (loss) on disposal of discontinued operations (net of taxes) Composites/Marl facility — ( 4 ) $ 16 $ 13 |
Performance Adhesives [Member] | |
Components of Amounts in the Statements of Consolidated Income (Loss) Related To Discontinued Operations | The following table presents a reconciliation of the captions within Ashland's Statements of Consolidated Comprehensive Income (Loss) for the income (loss) from discontinued operations attributable to Performance Adhesives for the three months ended December 31, 2021 and 2020. Three months ended December 31 (In millions) 2021 2020 Income (loss) from discontinued operations attributable Sales $ 96 $ 84 Cost of sales ( 67 ) ( 53 ) Selling, general and administrative expense ( 5 ) ( 5 ) Research and development expense ( 2 ) ( 2 ) Pretax income of discontinued operations 22 24 Income tax expense ( 5 ) ( 6 ) Income from discontinued operations $ 17 $ 18 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of Amount of Restructuring Reserves Related to Program | The following table details at December 31, 2021 and 2020, the amount of restructuring severance reserves related to this program. The severance reserves were primarily recorded within accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet as of December 31, 2021 and 2020. (In millions) Severance costs Balance at of September 30, 2021 $ 6 Restructuring reserve ( 1 ) Utilization (cash paid) ( 2 ) Balance at December 31, 2021 $ 3 (In millions) Severance costs Balance at of September 30, 2020 $ 39 Restructuring reserve 8 Utilization (cash paid) ( 11 ) Balance at December 31, 2020 $ 36 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Instruments Subject to Recurring Fair Value Measurements | The following table summarizes financial instruments subject to recurring fair value measurements as of December 31, 2021. Carrying Total Quoted prices Significant Significant (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 194 $ 194 $ 194 $ — $ — Restricted investments (a) (b) 426 426 426 — — Investment of captive insurance company (c) 9 9 9 — — Foreign currency derivatives (d) 2 2 — 2 — Commodity derivatives (d) 2 2 — 2 — Total assets at fair value $ 633 $ 633 $ 629 $ 4 $ — Liabilities Foreign currency derivatives (e) $ 1 $ 1 $ — $ 1 $ — Commodity derivatives (e) 1 1 — 1 — Total liabilities at fair value $ 2 $ 2 $ — $ 2 $ — (a) Included in restricted investments and $ 36 million within other current assets in the Condensed Consolidated Balance Sheets . (b) Includes $ 335 million related to the Asbestos trust and $ 91 million related to the Environmental trust . (c) Included in other noncurrent assets in the Condensed Consolidated Balance Sheets . (d) Included in accounts receivable in the Condensed Consolidated Balance Sheets . (e) Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets . The following table summarizes financial asset instruments subject to recurring fair value measurements as of September 30, 2021. Carrying Total Quoted prices Significant Significant (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 210 $ 210 $ 210 $ — $ — Restricted investments (a) (b) 421 421 421 — — Investment of captive insurance company (c) 8 8 8 — — Foreign currency derivatives (d) 1 1 — 1 — Commodity derivatives (d) 5 5 — 5 — Total assets at fair value $ 645 $ 645 $ 639 $ 6 $ — Liabilities Foreign currency derivatives (e) $ 2 $ 2 $ — $ 2 $ — (a) Included in restricted investments and $ 37 million within other current assets in the Condensed Consolidated Balance Sheets . (b) Includes $ 333 million related to the Asbestos trust and $ 88 million related to the Environmental trust . (c) Included in other noncurrent assets in the Condensed Consolidated Balance Sheets . (d) Included in accounts receivable in the Condensed Consolidated Balance Sheets . (e) Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets . |
Summary of Investment Portfolio | The following table provides a summary of the activity within the investment portfolio as of December 31, 2021 and September 30, 2021: (In millions) December 31 September 30 Original cost $ 335 $ 335 Accumulated adjustments, net 37 ( 50 ) Adjusted cost, beginning of year (a) 372 285 Investment income (b) 8 12 Net unrealized gain (c) 53 49 Realized gains (c) — 17 Funds restricted for specific transactions (d) — 91 Disbursements ( 7 ) ( 33 ) Fair value $ 426 $ 421 (a) The adjusted cost of the demand deposits includes accumulated investment income, realized gains, additional funds restricted for specific transactions and disbursements recorded in previous periods. The adjusted cost as of December 31, 2021 includes the $ 90 million funding to establish the environmental trust . (b) Investment income relates to the demand deposit and includes interest income as well as dividend income transferred from the equity and fixed income mutual funds . (c) Presented under the original cost method . (d) The September 30, 2021 period included $ 90 million to establish the environmental trust . The following table presents gross unrealized gains and losses for the restricted investment securities as of December 31, 2021 and September 30, 2021: Gross Gross (In millions) Adjusted Cost Unrealized Gain Unrealized Loss Fair Value As of December 31, 2021 Demand deposit $ 11 $ — $ — $ 11 Equity mutual fund 139 51 — 190 Fixed income mutual fund 223 4 ( 2 ) 225 Fair value $ 373 $ 55 $ ( 2 ) $ 426 As of September 30, 2021 Demand deposit $ 6 $ — $ — $ 6 Equity mutual fund 143 44 ( 1 ) 186 Fixed income mutual fund 223 7 ( 1 ) 229 Fair value $ 372 $ 51 $ ( 2 ) $ 421 |
Summary of Investment Income, Net Gains and Losses Realized and Disbursements Related to Investments | The following table presents the investment income, net gains and losses realized and disbursements related to the investments within the portfolio for the three months ended December 31, 2021 and 2020. Three months ended December 31 (In millions) 2021 2020 Investment income $ 8 $ 5 Net gains (losses) (a) 4 18 Disbursements ( 7 ) ( 8 ) (a) Ashland determined that all gains and (losses) were related to investment securities with readily determinable fair values. Due to the accounting guidance adopted in the first quarter of fiscal year 2019, the net unrealized gains and (losses) during fiscal September 30, 2019 and forward were recorded within the net interest and other expense caption in the Statements of Consolidated Income (Loss). |
Summary of Net Gains and Losses on Foreign Currency Derivatives | The following table summarizes the net gains and losses recognized during the three months ended December 31, 2021 and 2020 within the Statements of Consolidated Comprehensive Income (Loss). Three months ended December 31 (In millions) 2021 2020 Foreign currency derivative gains $ 2 $ 3 |
Summary of Fair Values of Outstanding Foreign Currency Derivatives | The following table summarizes the fair values of the outstanding foreign currency derivatives as of December 31, 2021 and September 30, 2021 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets. December 31 September 30 (In millions) 2021 2021 Foreign currency derivative assets $ 2 $ 1 Notional contract values 252 150 Foreign currency derivative liabilities $ 1 $ 2 Notional contract values 156 212 |
Summary of Fair Values of Outstanding Commodity Derivatives | The following table summarizes the fair values of the outstanding commodity derivatives as of December 31, 2021, and September 30, 2021 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets. December 31 September 30 (In millions) 2021 2021 Commodity derivative assets $ 2 $ 11 Notional contract values 5 6 Commodity derivative liabilities $ 1 $ — Notional contract values 7 — |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following table summarizes Ashland’s inventories as of the reported Condensed Consolidated Balance Sheet dates. December 31 September 30 (In millions) 2021 2021 Finished products $ 319 $ 282 Raw materials, supplies and work in process 211 191 $ 530 $ 473 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Reportable Segment | The following is a progression of goodwill by reportable segment for the three months ended December 31, 2021. Life Personal Specialty (In millions) Sciences Care (a) Additives (a) Intermediates (a) Total Balance at September 30, 2021 $ 856 $ 129 $ 445 $ — $ 1,430 Currency translation ( 12 ) ( 2 ) ( 5 ) — ( 19 ) Balance at December 31, 2021 $ 844 $ 127 $ 440 $ — $ 1,411 (a) As of December 31, 2021 and September 30, 2021, there were accumulated impairments of $ 356 million, $ 174 million and $ 90 million related to the Personal Care, Specialty Additives and Intermediates reportable segments, respectively. |
Summary of Intangible Assets | Intangible assets were comprised of the following as of December 31, 2021 and September 30, 2021. December 31, 2021 Gross Net carrying Accumulated carrying (In millions) amount amortization amount Definite-lived intangibles Trademarks and trade names $ 100 $ ( 34 ) $ 66 Intellectual property 745 ( 504 ) 241 Customer and supplier relationships 842 ( 359 ) 483 Total definite-lived intangibles 1,687 ( 897 ) 790 Indefinite-lived intangibles Trademarks and trade names 278 — 278 Total intangible assets $ 1,965 $ ( 897 ) $ 1,068 September 30, 2021 Gross Net carrying Accumulated carrying (In millions) amount amortization amount Definite-lived intangibles Trademarks and trade names $ 101 $ ( 32 ) $ 69 Intellectual property 750 ( 495 ) 255 Customer and supplier relationships 849 ( 352 ) 497 Total definite-lived intangibles 1,700 ( 879 ) 821 Indefinite-lived intangibles Trademarks and trade names 278 — 278 Total intangible assets $ 1,978 $ ( 879 ) $ 1,099 |
Debt and Other Financing Acti_2
Debt and Other Financing Activities (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Current and Long-term Debt | The following table summarizes Ashland’s current and long-term debt as of the dates reported in the Condensed Consolidated Balance Sheets. (In millions) December 31, 2021 September 30, 2021 3.375 % Senior Notes, due 2031 $ 450 $ 450 2.00 % Senior Notes, due 2028 (Euro 500 million principal) 566 580 6.875 % notes, due 2043 282 282 Term loan A 250 250 Accounts receivable securitizations 113 117 6.50 % junior subordinated notes, due 2029 58 57 Revolving credit facility 240 225 Other (a) 10 9 Total debt 1,969 1,970 Short-term debt (includes current portion of long-term debt) ( 389 ) ( 374 ) Long-term debt (less current portion) $ 1,580 $ 1,596 (a) Includes $ 17 million of debt issuance cost discounts as of both December 31, 2021 and September 30, 2021. Additionally, as of both December 31, 2021 and September 30, 2021 , Other includes a European short-term loan facility with an outstanding balance $ 23 million. |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Cost Recognized | The components of lease cost recognized within the Statements of Consolidated Comprehensive Income (Loss) were as follows: Three months ended December 31 (In millions) Location 2021 2020 Lease cost: Operating lease cost Selling, General & Administrative $ 3 $ 3 Operating lease cost Cost of Sales 4 4 Variable lease cost Selling, General & Administrative 1 — Variable lease cost Cost of Sales 1 1 Short-term leases Cost of Sales 1 1 Total lease cost $ 10 $ 9 |
Summary of Lease Assets and Liabilities | The following table summarizes Ashland’s lease assets and liabilities as presented in the Condensed Consolidated Balance Sheet: (In millions) December 31 September 30 Assets Operating lease assets, net $ 117 $ 124 Total lease assets $ 117 $ 124 Liabilities Current operating lease obligations $ 22 $ 23 Non-current operating lease obligations 104 110 Total lease liabilities $ 126 $ 133 |
Schedule of Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities | The following table provides cash paid for amounts included in the measurement of operating lease liabilities: Three months ended December 31 (In millions) 2021 2020 Operating cash flows from operating leases $ 7 $ 7 |
Schedule of Maturities Analysis of Lease Liabilities | The following table summarizes Ashland's maturities of lease liabilities as of December 31, 2021 and September 30, 2021: (In millions) December 31 September 30 Remainder of 2022 $ 32 $ 39 2023 20 20 2024 16 16 2025 11 11 2026 9 9 Thereafter 77 78 Total lease payments 165 173 Less amount of lease payment representing interest ( 39 ) ( 40 ) Total present value of lease payments $ 126 $ 133 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Changes in Unrecognized Tax Benefits | Changes in unrecognized tax benefits are summarized as follows for the three months ended December 31, 2021. (In millions) Balance at October 1, 2021 $ 82 Increases related to positions taken in the current year 1 Lapse of statute of limitations ( 1 ) Balance at December 31, 2021 $ 82 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Pension and Other Postretirement Benefit Costs for Continuing Operation | The following table details the components of pension and other postretirement benefit costs for continuing operations. Pension benefits Other postretirement (In millions) 2021 2020 2021 2020 Three months ended December 31 Service cost $ 1 $ 1 $ — $ — Interest cost 2 2 — — Expected return on plan assets ( 2 ) ( 2 ) — — Total net periodic benefit costs $ 1 $ 1 $ — $ — |
Litigation, Claims and Contin_2
Litigation, Claims and Contingencies (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Loss Contingencies [Line Items] | |
Reconciliation of Changes in Environmental Contingencies and Asset Retirement Obligations Reserve | The following table provides a reconciliation of the changes in the environmental remediation reserves during the three months ended December 31, 2021 and 2020. Three months ended December 31 (In millions) 2021 2020 Reserve - beginning of period $ 207 $ 200 Disbursements ( 14 ) ( 10 ) Revised obligation estimates and accretion 4 5 Reserve - end of period $ 197 $ 195 |
Components of Environmental Remediation Expense | Components of environmental remediation expense included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) are presented in the following table for the three ended December 31, 2021 and 2020. Three months ended December 31 (In millions) 2021 2020 Environmental expense $ 3 $ 5 Legal expense 1 1 Total expense 4 6 Insurance receivable — ( 1 ) Total expense, net of receivable activity (a) $ 4 $ 5 (a) Net expense of $ 1 million for the three months ended December 31, 2021 and 2020, relates to divested businesses which qualified for treatment as discontinued operations for which certain environmental liabilities were retained by Ashland. These amounts are classified within the income from discontinued operations caption of the Statements of Consolidated Comprehensive Income (loss). |
Ashland [Member] | |
Loss Contingencies [Line Items] | |
Summary of Asbestos Claims Activity | A summary of Ashland asbestos claims activity, excluding Hercules claims, follows. Three months ended December 31 Years ended September 30 (In thousands) 2021 2020 2021 2020 2019 Open claims - beginning of year 46 49 49 53 53 New claims filed — 1 2 2 2 Claims settled — — ( 1 ) ( 1 ) ( 1 ) Claims dismissed ( 1 ) ( 1 ) ( 4 ) ( 5 ) ( 1 ) Open claims - end of period 45 49 46 49 53 |
Progression of Activity in Asbestos Reserve Accounts | A progression of activity in the asbestos reserve is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2021 2020 2021 2020 2019 Asbestos reserve - beginning of year $ 320 $ 335 $ 335 $ 352 $ 380 Reserve adjustment — — 12 13 1 Amounts paid ( 13 ) ( 10 ) ( 27 ) ( 30 ) ( 29 ) Asbestos reserve - end of period (a) $ 307 $ 325 $ 320 $ 335 $ 352 (a) Included $ 29 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . |
Progression of Insurance Receivable | A progression of activity in the Ashland insurance receivable is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2021 2020 2021 2020 2019 Insurance receivable - beginning of year $ 100 $ 103 $ 103 $ 123 $ 140 Receivable adjustment (a) — ( 2 ) 6 1 ( 5 ) Insurance settlement — — — ( 10 ) — Amounts collected ( 1 ) ( 3 ) ( 9 ) ( 11 ) ( 12 ) Insurance receivable - end of period (b) $ 99 $ 98 $ 100 $ 103 $ 123 (a) The three months ended December 31, 2020 includes a reserve adjustment of $ 2 million related to allowances for credit losses as a result of Ashland’s adoption of the new credit measurement standard. The total allowance for credit losses was $ 2 million as of December 31, 2021. (b) Includes $ 12 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . |
Hercules [Member] | |
Loss Contingencies [Line Items] | |
Summary of Asbestos Claims Activity | A summary of Hercules’ asbestos claims activity follows. Three months ended December 31 Years ended September 30 (In thousands) 2021 2020 2021 2020 2019 Open claims - beginning of year 12 12 12 13 13 New claims filed 1 1 1 1 1 Claims dismissed ( 1 ) ( 1 ) ( 1 ) ( 2 ) ( 1 ) Open claims - end of period 12 12 12 12 13 |
Progression of Activity in Asbestos Reserve Accounts | A progression of activity in the asbestos reserve is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2021 2020 2021 2020 2019 Asbestos reserve - beginning of year $ 217 $ 229 $ 229 $ 252 $ 282 Reserve adjustments — — 8 ( 3 ) ( 10 ) Amounts paid ( 6 ) ( 5 ) ( 20 ) ( 20 ) ( 20 ) Asbestos reserve - end of period (a) $ 211 $ 224 $ 217 $ 229 $ 252 (a) Included $ 17 million and $ 18 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 , respectively. |
Progression of Insurance Receivable | A progression of activity in the Hercules insurance receivable is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2021 2020 2021 2020 2019 Insurance receivable - beginning of year $ 47 $ 47 $ 47 $ 49 $ 54 Receivable adjustment (a) — ( 1 ) 1 ( 2 ) ( 5 ) Amounts collected — — ( 1 ) — — Insurance receivable - end of period (b) $ 47 $ 46 $ 47 $ 47 $ 49 (a) The three months ended December 31, 2020 includes a reserve adjustment of $ 1 million related to allowances for credit losses as a result of Ashland’s adoption of the new credit measurement standard. The total allowance for credit losses was $ 1 million as of December 31, 2021 . (b) Includes $ 1 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Stock appreciation rights (SARs), stock options and warrants available to purchase shares outstanding for each reporting period whose grant price was greater than the average market price of Ashland Common Stock for each applicable period were not included in the computation of income from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was approximately 1 million and 2 million at December 31, 2021 and 2020 , respectively. Earnings per share is reported under the treasury stock method. Three months ended December 31 (In millions, except per share data) 2021 2020 Numerator Numerator for basic and diluted EPS - Income (loss) from continuing operations $ 32 $ 43 Denominator Denominator for basic EPS - Weighted- 57 60 Share based awards convertible to common shares 1 1 Denominator for diluted EPS - Adjusted weighted- 58 61 EPS from continuing operations Basic $ 0.56 $ 0.71 Diluted 0.55 0.70 |
Equity Items (Tables)
Equity Items (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented below, before tax and net of tax effects. 2021 2020 (In millions) Before Tax Net of Before Tax Net of Three months ended December 31 Other comprehensive income (loss) Unrealized translation gain (loss) $ ( 18 ) $ 1 $ ( 17 ) $ 48 $ — $ 48 Unrealized gain (loss) on commodity hedges ( 4 ) 1 ( 3 ) — — — Total other comprehensive income (loss) $ ( 22 ) $ 2 $ ( 20 ) $ 48 $ — $ 48 |
Summary of Reconciliation of Changes in Stockholders' Equity | A reconciliation of changes in stockholders’ equity are as follows: Three months ended December 31 (In millions) 2021 2020 Common stock and paid in capital Balance, beginning of period $ 328 $ 770 Common shares issued under stock incentive and other plans (a) — 1 Balance, end of period 328 771 Retained earnings Balance, beginning of period 2,796 2,649 Adoption of new accounting pronouncements — ( 2 ) Net income 48 56 Regular dividends ( 17 ) ( 17 ) Balance, end of period 2,827 2,686 Accumulated other comprehensive income (loss) Balance, beginning of period ( 372 ) ( 383 ) Unrealized translation gain (loss) ( 17 ) 48 Unrealized loss on commodity hedges ( 3 ) — Balance, end of period ( 392 ) ( 335 ) Total stockholders' equity $ 2,763 $ 3,122 Cash dividends declared per common share $ 0.300 $ 0.275 (a) Common shares issued were 94,715 shares and 99,194 for the three months ended December 31, 2021 and 2020 , respectively. |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Components of Pretax Stock-Based Compensation Expense Included in Continuing Operations | The components of Ashland’s pre-tax stock-based compensation expense included in continuing operations are as follows: Three months ended December 31 (In millions) 2021 (a) 2020 (b) SARs $ — $ 1 Nonvested stock awards 4 2 Performance share awards 2 2 $ 6 $ 5 (a) Included $ 2 million of expense related to cash-settled nonvested restricted stock awards during the three months ended December 31, 2021 . (b) Included $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three months ended December 31, 2020. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Ashland disaggregates its revenue by segment and geographical region as Ashland believes these categories best depict how management reviews the financial performance of its operations. See the following tables for details. See Note Q for additional information. Sales by geography Three months ended December 31 (In millions) 2021 2020 Life Sciences North America $ 53 $ 51 Europe 55 54 Asia Pacific 46 47 Latin America & other 16 18 $ 170 $ 170 Three months ended December 31 (In millions) 2021 2020 Personal Care North America $ 41 $ 41 Europe 57 46 Asia Pacific 32 21 Latin America & other 17 18 $ 147 $ 126 Three months ended December 31 (In millions) 2021 2020 Specialty Additives North America $ 52 $ 45 Europe 55 52 Asia Pacific 41 41 Latin America & other 8 9 $ 156 $ 147 Three months ended December 31 (In millions) 2021 2020 Intermediates North America $ 32 $ 21 Europe 10 4 Asia Pacific 9 7 Latin America & other 2 1 $ 53 $ 33 Trade receivables Trade receivables are defined as receivables arising from contracts with customers and are recorded within the accounts receivable caption within the Condensed Consolidated Balance Sheets. Ashland’s trade receivables were $ 288 million and $ 308 million as of December 31, 2021 and September 30, 2021 , respectively. See Note H for additional information on Ashland’s program to sell certain receivables on a revolving basis to third party banks up to an aggregate purchase limit (U.S Accounts Receivable Sales Program). |
Reportable Segment Information
Reportable Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Financial Information for Each Reportable Segment | The following table presents various financial information for each reportable segment for the three months ended December 31, 2021 and 2020. Three months ended December 31 (In millions - unaudited) 2021 2020 SALES Life Sciences $ 170 $ 170 Personal Care 147 126 Specialty Additives 156 147 Intermediates 53 33 Intersegment sales (a) ( 14 ) ( 8 ) $ 512 $ 468 OPERATING INCOME (LOSS) Life Sciences $ 21 $ 29 Personal Care 15 15 Specialty Additives (b) 17 2 Intermediates 16 2 Unallocated and other ( 27 ) ( 31 ) $ 42 $ 17 DEPRECIATION EXPENSE Life Sciences $ 8 $ 9 Personal Care 9 10 Specialty Additives 16 16 Intermediates 3 3 $ 36 $ 38 AMORTIZATION EXPENSE Life Sciences $ 7 $ 7 Personal Care 12 9 Specialty Additives 5 5 Intermediates — — $ 24 $ 21 EBITDA (c) Life Sciences $ 36 $ 45 Personal Care 36 34 Specialty Additives 38 23 Intermediates 19 5 Unallocated and other ( 27 ) ( 31 ) $ 102 $ 76 December 31 September 30 (In millions - unaudited) 2021 2021 TOTAL ASSETS Life Sciences $ 1,922 $ 1,945 Personal Care 1,110 1,145 Specialty Additives 1,618 1,636 Intermediates 163 160 Unallocated and other 1,736 1,726 $ 6,549 $ 6,612 (a) Intersegment sales from Intermediates are accounted for at prices that approximate fair value. All other intersegment sales are accounted for at cost. (b) Includes a capital project impairment of $ 9 million for the three months ended December 20, 2020 relating to a long-term capital project plan change at a plant facility. (c) Excludes income (loss) from discontinued operations, other net periodic benefit income (expense) and net income (loss) on divestitures. See the Statement of Consolidated Comprehensive Income (Loss) for applicable amounts excluded. |
Divestitures - Additional Infor
Divestitures - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Aug. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net income on acquisitions and divestitures | $ 0 | $ 14 | ||
Specialty Ingredients Facility [Member] | Specialty Ingredients [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net proceeds from sale of business | 14 | |||
Net income on acquisitions and divestitures | 14 | |||
Proceeds from sale of businesses including deposits received in previous fiscal year | $ 20 | |||
Performance Adhesives [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Transaction value in sale of business | $ 1,650 | |||
Stranded divestitures costs | $ 4 | $ 4 |
Discontinued Operations - Compo
Discontinued Operations - Components of Consolidated Comprehensive Income (Loss) Related to Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations (net of tax) | $ 16 | $ 13 |
Performance Adhesives [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations (net of tax) | 17 | 18 |
Distribution [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations (net of tax) | (1) | (1) |
Composites/Marl facility [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain (loss) on disposal of discontinued operations (net of taxes) | $ 0 | $ (4) |
Discontinued Operations - Recon
Discontinued Operations - Reconciliation of Consolidated Income (Loss) From Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income (loss) from discontinued operations attributable to Performance Adhesives | ||
Income from discontinued operations | $ 16 | $ 13 |
Performance Adhesives [Member] | ||
Income (loss) from discontinued operations attributable to Performance Adhesives | ||
Sales | 96 | 84 |
Cost of sales | (67) | (53) |
Selling, general and administrative expense | (5) | (5) |
Research and development expense | (2) | (2) |
Pretax income of discontinued operations | 22 | 24 |
Income tax expense | (5) | (6) |
Income from discontinued operations | $ 17 | $ 18 |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Details) - Fiscal 2020 and 2021 Restructuring Severance Costs [Member] - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||||
Severance income (expenses) | $ 1 | $ (8) | ||
Restructuring reserve | $ 3 | $ 36 | $ 6 | $ 39 |
Restructuring Activities - Summ
Restructuring Activities - Summary of Severance Reserves and Facility Cost Reserves (Details) - Fiscal 2020 and 2021 Restructuring Severance Costs [Member] - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | $ 6 | $ 39 |
Restructuring reserve | (1) | 8 |
Utilization (cash paid) | (2) | (11) |
Ending balance | $ 3 | $ 36 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments Subject to Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||||
Assets | |||||
Cash and cash equivalents | $ 194 | $ 210 | |||
Restricted investments | 426 | [1],[2] | 421 | [3],[4] | |
Investment of captive insurance company | 9 | [5] | 8 | [6] | |
Foreign currency derivatives | 2 | [7] | 1 | [8] | |
Commodity derivatives | 2 | [7] | 5 | [8] | |
Total assets at fair value | 633 | 645 | |||
Liabilities | |||||
Foreign currency derivatives | 1 | [9] | 2 | [10] | |
Commodity derivatives | [9] | 1 | |||
Total liabilities at fair value | 2 | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | |||||
Assets | |||||
Cash and cash equivalents | 194 | 210 | |||
Restricted investments | 426 | [1],[2] | 421 | [3],[4] | |
Investment of captive insurance company | 9 | [5] | 8 | [6] | |
Foreign currency derivatives | 2 | [7] | 1 | [8] | |
Commodity derivatives | 2 | [7] | 5 | [8] | |
Total assets at fair value | 633 | 645 | |||
Liabilities | |||||
Foreign currency derivatives | 1 | [9] | 2 | [10] | |
Commodity derivatives | [9] | 1 | |||
Total liabilities at fair value | 2 | ||||
Fair Value, Inputs, Level 1 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 194 | 210 | |||
Restricted investments | 426 | [1],[2] | 421 | [3],[4] | |
Investment of captive insurance company | 9 | [5] | 8 | [6] | |
Foreign currency derivatives | 0 | [7] | 0 | [8] | |
Commodity derivatives | 0 | [7] | 0 | [8] | |
Total assets at fair value | 629 | 639 | |||
Liabilities | |||||
Foreign currency derivatives | 0 | [9] | 0 | [10] | |
Commodity derivatives | [9] | 0 | |||
Total liabilities at fair value | 0 | ||||
Fair Value, Inputs, Level 2 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted investments | 0 | [1],[2] | 0 | [3],[4] | |
Investment of captive insurance company | 0 | [5] | 0 | [6] | |
Foreign currency derivatives | 2 | [7] | 1 | [8] | |
Commodity derivatives | 2 | [7] | 5 | [8] | |
Total assets at fair value | 4 | 6 | |||
Liabilities | |||||
Foreign currency derivatives | 1 | [9] | 2 | [10] | |
Commodity derivatives | [9] | 1 | |||
Total liabilities at fair value | 2 | ||||
Fair Value, Inputs, Level 3 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted investments | 0 | [1],[2] | 0 | [3],[4] | |
Investment of captive insurance company | 0 | [5] | 0 | [6] | |
Foreign currency derivatives | 0 | [7] | 0 | [8] | |
Commodity derivatives | 0 | [7] | 0 | [8] | |
Total assets at fair value | 0 | 0 | |||
Liabilities | |||||
Foreign currency derivatives | 0 | [9] | $ 0 | [10] | |
Commodity derivatives | [9] | 0 | |||
Total liabilities at fair value | $ 0 | ||||
[1] | Included in restricted investments and $ 36 million within other current assets in the Condensed Consolidated Balance Sheets | ||||
[2] | Includes $ 335 million related to the Asbestos trust and $ 91 million related to the Environmental trust | ||||
[3] | Included in restricted investments and $ 37 million within other current assets in the Condensed Consolidated Balance Sheets | ||||
[4] | Includes $ 333 million related to the Asbestos trust and $ 88 million related to the Environmental trust | ||||
[5] | Included in other noncurrent assets in the Condensed Consolidated Balance Sheets | ||||
[6] | Included in other noncurrent assets in the Condensed Consolidated Balance Sheets | ||||
[7] | Included in accounts receivable in the Condensed Consolidated Balance Sheets | ||||
[8] | Included in accounts receivable in the Condensed Consolidated Balance Sheets | ||||
[9] | Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets | ||||
[10] | Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Financial Instruments Subject to Recurring Fair Value Measurements (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Restricted Investments, Current | $ 36 | $ 37 |
Available-for-sale securities, fair value | 426 | 421 |
Asbestos Trust [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value | 335 | 333 |
Environmental Trust [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value | $ 91 | $ 88 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Investment Portfolio (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | ||||
Fair Value Disclosures [Abstract] | ||||||
Original cost | $ 335 | $ 335 | ||||
Accumulated adjustments, net | 37 | (50) | ||||
Adjusted cost | [1] | 372 | 285 | |||
Investment income | 8 | [2] | $ 5 | 12 | [2] | |
Net unrealized gain | [3] | 53 | 49 | |||
Realized gains | [3] | 0 | 17 | |||
Funds restricted for specific transactions | [4] | 0 | 91 | |||
Disbursements | (7) | $ (8) | (33) | |||
Fair value | $ 426 | $ 421 | ||||
[1] | The adjusted cost of the demand deposits includes accumulated investment income, realized gains, additional funds restricted for specific transactions and disbursements recorded in previous periods. The adjusted cost as of December 31, 2021 includes the $ 90 million funding to establish the environmental trust | |||||
[2] | Investment income relates to the demand deposit and includes interest income as well as dividend income transferred from the equity and fixed income mutual funds | |||||
[3] | Presented under the original cost method | |||||
[4] | The September 30, 2021 period included $ 90 million to establish the environmental trust |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary of Investment Portfolio (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2021 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Funds restricted for specific transactions | [1] | $ 0 | $ 91 |
Environmental Trust [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Funds restricted for specific transactions | $ 90 | $ 90 | |
[1] | The September 30, 2021 period included $ 90 million to establish the environmental trust |
Fair Value Measurements - Sum_5
Fair Value Measurements - Summary of Available-for-sale Securities Portfolio (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Adjusted cost | [1] | $ 372 | $ 285 |
Fair Value | 426 | 421 | |
Restricted Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Adjusted cost | 373 | 372 | |
Gross Unrealized Gain | 55 | 51 | |
Gross Unrealized Loss | (2) | (2) | |
Fair Value | 426 | 421 | |
Fixed Income Mutual Fund [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Adjusted cost | 223 | 223 | |
Gross Unrealized Gain | 4 | 7 | |
Gross Unrealized Loss | (2) | (1) | |
Fair Value | 225 | 229 | |
Equity Mutual Fund [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Adjusted cost | 139 | 143 | |
Gross Unrealized Gain | 51 | 44 | |
Gross Unrealized Loss | 0 | (1) | |
Fair Value | 190 | 186 | |
Demand Deposit [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Adjusted cost | 11 | 6 | |
Gross Unrealized Gain | 0 | 0 | |
Gross Unrealized Loss | 0 | 0 | |
Fair Value | $ 11 | $ 6 | |
[1] | The adjusted cost of the demand deposits includes accumulated investment income, realized gains, additional funds restricted for specific transactions and disbursements recorded in previous periods. The adjusted cost as of December 31, 2021 includes the $ 90 million funding to establish the environmental trust |
Fair Value Measurements - Sum_6
Fair Value Measurements - Summary of Investment Income, Net Gains and Losses Realized and Disbursements Related to Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | ||||
Fair Value Disclosures [Abstract] | ||||||
Investment income | $ 8 | [1] | $ 5 | $ 12 | [1] | |
Net gains (losses) | [2] | 4 | 18 | |||
Disbursements | $ (7) | $ (8) | $ (33) | |||
[1] | Investment income relates to the demand deposit and includes interest income as well as dividend income transferred from the equity and fixed income mutual funds | |||||
[2] | Ashland determined that all gains and (losses) were related to investment securities with readily determinable fair values. Due to the accounting guidance adopted in the first quarter of fiscal year 2019, the net unrealized gains and (losses) during fiscal September 30, 2019 and forward were recorded within the net interest and other expense caption in the Statements of Consolidated Income (Loss). |
Fair Value Measurements - Sum_7
Fair Value Measurements - Summary of Net Gains and Losses on Foreign Currency Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative gains | $ 2 | $ 3 |
Fair Value Measurements - Sum_8
Fair Value Measurements - Summary of Fair Values of Outstanding Foreign Currency Derivatives (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Accounts Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative assets | $ 2 | $ 1 |
Notional contract values | 252 | 150 |
Accrued Expenses and Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional contract values | 156 | 212 |
Foreign currency derivative liabilities | $ 1 | $ 2 |
Fair Value Measurements - Sum_9
Fair Value Measurements - Summary of Fair Values of Outstanding Commodity Derivatives (Details) - Commodity Contract [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Accounts Receivable [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Commodity derivative assets | $ 2 | $ 11 |
Notional contract values | 5 | $ 6 |
Accrued Expenses and Other Liabilities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Notional contract values | 7 | |
Commodity derivative liabilities | $ 1 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Long-term debt, carrying value | $ 1,610 | $ 1,622 | |
Long-term debt, fair value | 1,752 | $ 1,794 | |
Commodity Derivatives [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Commodity derivative gain | $ 2 | $ 0 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 319 | $ 282 |
Raw materials, supplies and work in process | 211 | 191 |
Total | $ 530 | $ 473 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Summary of Goodwill by Reportable Segment (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2021USD ($) | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 1,430 | |
Currency translation | (19) | |
Balance at end of period | 1,411 | |
Life Sciences [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 856 | |
Currency translation | (12) | |
Balance at end of period | 844 | |
Personal Care [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 129 | [1] |
Currency translation | (2) | [1] |
Balance at end of period | 127 | [1] |
Specialty Additives [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 445 | [1] |
Currency translation | (5) | [1] |
Balance at end of period | 440 | [1] |
Intermediates [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 0 | [1] |
Currency translation | 0 | [1] |
Balance at end of period | $ 0 | [1] |
[1] | As of December 31, 2021 and September 30, 2021, there were accumulated impairments of $ 356 million, $ 174 million and $ 90 million related to the Personal Care, Specialty Additives and Intermediates reportable segments, respectively. |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Summary of Goodwill by Reportable Segment (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Personal Care [Member] | ||
Goodwill [Line Items] | ||
Accumulated impairment | $ 356 | $ 356 |
Specialty Additives [Member] | ||
Goodwill [Line Items] | ||
Accumulated impairment | 174 | 174 |
Intermediates [Member] | ||
Goodwill [Line Items] | ||
Accumulated impairment | $ 90 | $ 90 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangibles amortization expense | $ 24 | $ 21 |
Expected future amortization expense [Abstract] | ||
2022 (includes three months actual and nine months estimated) | 94 | |
2023 | 93 | |
2024 | 80 | |
2025 | 78 | |
2026 | $ 75 | |
Minimum [Member] | Trademarks and Trade Names [Member] | ||
Intangible Assets, Net [Abstract] | ||
Useful life (in years) | 3 years | |
Minimum [Member] | Intellectual Property [Member] | ||
Intangible Assets, Net [Abstract] | ||
Useful life (in years) | 5 years | |
Minimum [Member] | Customer and Supplier Relationships [Member] | ||
Intangible Assets, Net [Abstract] | ||
Useful life (in years) | 3 years | |
Maximum [Member] | Trademarks and Trade Names [Member] | ||
Intangible Assets, Net [Abstract] | ||
Useful life (in years) | 25 years | |
Maximum [Member] | Intellectual Property [Member] | ||
Intangible Assets, Net [Abstract] | ||
Useful life (in years) | 25 years | |
Maximum [Member] | Customer and Supplier Relationships [Member] | ||
Intangible Assets, Net [Abstract] | ||
Useful life (in years) | 24 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 1,687 | $ 1,700 |
Accumulated amortization | (897) | (879) |
Net carrying amount | 790 | 821 |
Intangible Assets, Net [Abstract] | ||
Gross carrying amount | 1,965 | 1,978 |
Net carrying amount | 1,068 | 1,099 |
Trademarks and Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 100 | 101 |
Accumulated amortization | (34) | (32) |
Net carrying amount | 66 | 69 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Indefinite-lived intangible assets | 278 | 278 |
Intellectual Property [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 745 | 750 |
Accumulated amortization | (504) | (495) |
Net carrying amount | 241 | 255 |
Customer and Supplier Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 842 | 849 |
Accumulated amortization | (359) | (352) |
Net carrying amount | $ 483 | $ 497 |
Debt and Other Financing Acti_3
Debt and Other Financing Activities - Summary of Current and Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | |||
Carrying value of debt | $ 1,610 | $ 1,622 | |
Other | [1] | 10 | 9 |
Total debt | 1,969 | 1,970 | |
Short-term debt (includes current portion of long-term debt) | (389) | (374) | |
Long-term debt (less current portion) | 1,580 | 1,596 | |
3.375% Senior Notes, due 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | 450 | 450 | |
2.00% Senior Notes Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | 566 | 580 | |
6.875% Notes due 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | 282 | 282 | |
Term Loan A [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | 250 | 250 | |
Accounts Receivable Securitization [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | 113 | 117 | |
6.50% Junior Subordinated Notes, Due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | 58 | 57 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | $ 240 | $ 225 | |
[1] | Includes $ 17 million of debt issuance cost discounts as of both December 31, 2021 and September 30, 2021. Additionally, as of both December 31, 2021 and September 30, 2021 , Other includes a European short-term loan facility with an outstanding balance $ 23 million. |
Debt and Other Financing Acti_4
Debt and Other Financing Activities - Summary of Current and Long-term Debt (Parenthetical) (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Dec. 31, 2021EUR (€) | Sep. 30, 2021EUR (€) | |
Debt Instrument [Line Items] | ||||
Unamortized debt issuance expense, long-term debt | $ 17 | $ 17 | ||
Short-term Debt | $ 376 | $ 365 | ||
3.375% Senior Notes, due 2031 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 3.375% | 3.375% | ||
Debt instrument, maturity year | 2031 | 2031 | ||
2.00% Senior Notes Due 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.00% | 2.00% | ||
Debt instrument, maturity year | 2028 | 2028 | ||
Principal amount | € | € 500 | € 500 | ||
6.875% Notes due 2043 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 6.875% | 6.875% | ||
Debt instrument, maturity year | 2043 | 2043 | ||
6.50% Junior Subordinated Notes, Due 2029 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 6.50% | 6.50% | ||
Debt instrument, maturity year | 2029 | |||
European Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Short-term Debt | $ 23 | $ 23 |
Debt and Other Financing Acti_5
Debt and Other Financing Activities - Summary of Current and Long-term Debt - Additional Information (Details) $ in Millions | Dec. 31, 2021USD ($) |
Scheduled aggregate debt maturities by fiscal year [Abstract] | |
Remaining in 2022 | $ 9 |
2023 | 22 |
2024 | 44 |
2025 | 175 |
2026 | $ 0 |
Debt and Other Financing Acti_6
Debt and Other Financing Activities - U.S. Accounts Receivable Sales Program - Additional Information (Details) - U.S. Accounts Receivable Sales Program [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Sep. 30, 2021 | |
Disclosure Of Sales Program Of Receivable [Line Items] | ||
Maximum limit of receivables can transfer | $ 100 | $ 125 |
Sales against the buyers limit | 100 | 113 |
Amount transferred in receivables | 143 | 167 |
Gross cash proceeds received for receivables transferred and derecognized | 124 | |
Cash proceeds collected | 137 | |
Payments for (proceeds from) new transfers of receivables | 13 | |
Maximum [Member] | ||
Disclosure Of Sales Program Of Receivable [Line Items] | ||
Gain (loss) on sale of receivables | (1) | |
Recorded liabilities related to service obligations and limited guarantee | 1 | $ 1 |
Performance Adhesives [Member] | ||
Disclosure Of Sales Program Of Receivable [Line Items] | ||
Payments for (proceeds from) new transfers of receivables | $ 3 |
Debt and Other Financing Acti_7
Debt and Other Financing Activities - Foreign Accounts Receivable Securitization Facility - Additional Information (Details) - 2018 Accounts Receivable Securitization [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Debt Instrument [Line Items] | ||
Outstanding amount of receivables sold to affiliate | $ 138 | $ 152 |
Debt instrument, outstanding principal amount | $ 113 | $ 117 |
Debt and Other Financing Acti_8
Debt and Other Financing Activities - Financing Activity and Covenants - Additional Information (Details) $ in Millions | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Liquidity under accounts receivable sales program | $ 0 |
Covenant restrictions [Abstract] | |
Maximum consolidated leverage ratio | 4 |
Consolidated net leverage ratio | 3.1 |
Minimum required consolidated interest coverage ratio | 3 |
Consolidated interest coverage ratio | 9.4 |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 600 |
Line of credit facility, remaining borrowing capacity | 341 |
Debt instrument, outstanding principal amount | 240 |
Letters of credit outstanding, amount | 19 |
2018 Accounts Receivable Securitization [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | $ 0 |
Leasing Arrangements - Addition
Leasing Arrangements - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Lessee Lease Description [Line Items] | |||
Weighted average remaining operating lease term | 15 years | 15 years | |
Weighted average operating discount rate, percent | 2.80% | 2.80% | |
Right-of-use assets exchanged for new operating lease obligations | $ 1 | $ 2 | |
Real Estate [Member] | |||
Lessee Lease Description [Line Items] | |||
Lease liability percentage | 80.00% | 80.00% |
Leasing Arrangements - Componen
Leasing Arrangements - Components of Lease Cost Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lease cost: | ||
Total lease cost | $ 10 | $ 9 |
Selling General and Administrative Expenses {Member] | ||
Lease cost: | ||
Operating lease cost | 3 | 3 |
Variable lease cost | 1 | 0 |
Cost of Sales [Member] | ||
Lease cost: | ||
Operating lease cost | 4 | 4 |
Variable lease cost | 1 | 1 |
Short-term leases | $ 1 | $ 1 |
Leasing Arrangements - Summary
Leasing Arrangements - Summary of Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Assets | ||
Operating lease assets, net | $ 117 | $ 124 |
Total lease assets | 117 | 124 |
Liabilities | ||
Current operating lease obligations | 22 | 23 |
Non-current operating lease obligations | 104 | 110 |
Total lease liabilities | $ 126 | $ 133 |
Leasing Arrangements - Schedule
Leasing Arrangements - Schedule of Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 7 | $ 7 |
Leasing Arrangements - Schedu_2
Leasing Arrangements - Schedule of Maturities Analysis of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Leases [Abstract] | ||
Remainder of 2022 | $ 32 | $ 39 |
2023 | 20 | 20 |
2024 | 16 | 16 |
2025 | 11 | 11 |
2026 | 9 | 9 |
Thereafter | 77 | 78 |
Total lease payments | 165 | 173 |
Less amount of lease payment representing interest | (39) | (40) |
Total present value of lease payments | $ 126 | $ 133 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Minimum [Member] | ||
Income Tax Contingency [Line Items] | ||
Decrease in unrecognized tax benefits is reasonably possible | $ 6 | |
Maximum [Member] | ||
Income Tax Contingency [Line Items] | ||
Decrease in unrecognized tax benefits is reasonably possible | $ 16 | |
Current Fiscal Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Effective tax rate (in hundredths) | 13.00% | |
Tax reform (benefit) and expense | $ (3) | |
Prior Fiscal Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Effective tax rate (in hundredths) | (13.00%) | |
Tax reform (benefit) and expense | $ (13) |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Unrecognized Tax Benefits (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
Balance at beginning of period | $ 82 |
Increases related to positions taken in the current year | 1 |
Lapse of statute of limitations | (1) |
Balance at end of period | $ 82 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Foreign Pension Plans, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actual contributions to benefit plans in period | $ 1 |
Estimated future contributions in current fiscal year | 4 |
United States Pension Plans of US Entity, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actual contributions to benefit plans in period | 0 |
United States Pension Plans of US Entity, Defined Benefit [Member] | Maximum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future contributions in current fiscal year | $ 1 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Components of Pension and Other Postretirement Benefit Costs for Continuing Operation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1 | $ 1 |
Interest cost | 2 | 2 |
Expected return on plan assets | (2) | (2) |
Total net periodic benefit costs | 1 | 1 |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 0 | 0 |
Expected return on plan assets | 0 | 0 |
Total net periodic benefit costs | $ 0 | $ 0 |
Litigation, Claims and Contin_3
Litigation, Claims and Contingencies - Summary of Asbestos Claims Activity (Details) - Claim Claim in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | |
Ashland [Member] | |||||
Asbestos claims [Roll Forward] | |||||
Open claims - beginning of year | 46 | 49 | 49 | 53 | 53 |
New claims filed | 0 | 1 | 2 | 2 | 2 |
Claims settled | 0 | 0 | (1) | (1) | (1) |
Claims dismissed | (1) | (1) | (4) | (5) | (1) |
Open claims - end of period | 45 | 49 | 46 | 49 | 53 |
Hercules [Member] | |||||
Asbestos claims [Roll Forward] | |||||
Open claims - beginning of year | 12 | 12 | 12 | 13 | 13 |
New claims filed | 1 | 1 | 1 | 1 | 1 |
Claims dismissed | (1) | (1) | (1) | (2) | (1) |
Open claims - end of period | 12 | 12 | 12 | 12 | 13 |
Litigation, Claims and Contin_4
Litigation, Claims and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($)ServiceStationPropertyFacilityWasteTreatmentOrDisposalSite | Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | ||||||
Environmental Remediation Costs Recognized [Abstract] | |||||||||||
Number of waste treatment or disposal sites were company is identified as a potentially responsible party under the superfund or similar state laws | WasteTreatmentOrDisposalSite | 80 | ||||||||||
Number of current and former operating facilities subject to various environmental laws | Facility | 112 | ||||||||||
Total number of service station properties subject to various environmental laws | ServiceStationProperty | 1,225 | ||||||||||
Number of service stations being actively remediated | ServiceStationProperty | 17 | ||||||||||
Accrual for environmental loss contingencies | $ 197 | $ 195 | $ 207 | $ 200 | |||||||
Accrued environmental loss contingencies, noncurrent | 142 | 152 | |||||||||
Recorded third-party environmental recoveries receivable | 15 | 16 | |||||||||
Recorded third-party environmental recoveries, noncurrent | 13 | 13 | |||||||||
Environmental exit costs, reasonably possible additional loss | $ 465 | ||||||||||
Maximum reserve for remediation reserve related to any one site (in hundredths) | 14.00% | ||||||||||
Minimum [Member] | |||||||||||
Asbestos litigation cost projection [Abstract] | |||||||||||
Number of Years Included in Asbestos Assumption | 40 years | ||||||||||
Maximum [Member] | |||||||||||
Asbestos litigation cost projection [Abstract] | |||||||||||
Number of Years Included in Asbestos Assumption | 50 years | ||||||||||
Ashland [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Increase (decrease) in asbestos related reserve | $ 0 | 0 | 12 | 13 | $ 1 | ||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |||||||||||
Insurance receivable | 99 | [1] | 98 | [1] | 100 | [1] | 103 | [1] | 123 | [1] | $ 140 |
Receivable adjustment | 8 | ||||||||||
Asbestos litigation cost projection [Abstract] | |||||||||||
Possible total future litigation defense and claim settlement costs | 482 | ||||||||||
Total reserves for asbestos claims | 307 | [2] | 325 | [2] | 320 | [2] | 335 | [2] | 352 | [2] | 380 |
Hercules [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Increase (decrease) in asbestos related reserve | 0 | 0 | 8 | (3) | (10) | ||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |||||||||||
Insurance receivable | 47 | [3] | 46 | [3] | 47 | [3] | 47 | [3] | 49 | [3] | 54 |
Receivable adjustment | 2 | ||||||||||
Asbestos litigation cost projection [Abstract] | |||||||||||
Possible total future litigation defense and claim settlement costs | 334 | ||||||||||
Total reserves for asbestos claims | $ 211 | [4] | $ 224 | [4] | $ 217 | [4] | $ 229 | [4] | $ 252 | [4] | $ 282 |
[1] | Includes $ 12 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . | ||||||||||
[2] | Included $ 29 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . | ||||||||||
[3] | Includes $ 1 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . | ||||||||||
[4] | Included $ 17 million and $ 18 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 , respectively. |
Litigation, Claims and Contin_5
Litigation, Claims and Contingencies - Schedule of Progression of Activity in the Asbestos Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||||||
Ashland [Member] | ||||||||||
Asbestos reserve [Roll Forward] | ||||||||||
Asbestos reserve - beginning of year | $ 320 | [1] | $ 335 | [1] | $ 335 | [1] | $ 352 | [1] | $ 380 | |
Reserve adjustment | 0 | 0 | 12 | 13 | 1 | |||||
Amounts paid | (13) | (10) | (27) | (30) | (29) | |||||
Asbestos reserve - end of period | [1] | 307 | 325 | 320 | 335 | 352 | ||||
Hercules [Member] | ||||||||||
Asbestos reserve [Roll Forward] | ||||||||||
Asbestos reserve - beginning of year | 217 | [2] | 229 | [2] | 229 | [2] | 252 | [2] | 282 | |
Reserve adjustment | 0 | 0 | 8 | (3) | (10) | |||||
Amounts paid | (6) | (5) | (20) | (20) | (20) | |||||
Asbestos reserve - end of period | [2] | $ 211 | $ 224 | $ 217 | $ 229 | $ 252 | ||||
[1] | Included $ 29 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . | |||||||||
[2] | Included $ 17 million and $ 18 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 , respectively. |
Litigation, Claims and Contin_6
Litigation, Claims and Contingencies - Schedule of Progression of Activity in the Asbestos Reserve (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |||||
Ashland [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Asbestos reserve | $ 307 | [1] | $ 320 | [1] | $ 325 | [1] | $ 335 | [1] | $ 352 | [1] | $ 380 |
Ashland [Member] | Other Current Liabilities [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Asbestos reserve | 29 | 29 | |||||||||
Hercules [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Asbestos reserve | 211 | [2] | 217 | [2] | $ 224 | [2] | $ 229 | [2] | $ 252 | [2] | $ 282 |
Hercules [Member] | Other Current Liabilities [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Asbestos reserve | $ 17 | $ 18 | |||||||||
[1] | Included $ 29 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . | ||||||||||
[2] | Included $ 17 million and $ 18 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 , respectively. |
Litigation, Claims and Contin_7
Litigation, Claims and Contingencies - Summary of Progression of Insurance Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | ||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||||
Insurance settlement | $ 0 | $ 1 | ||||||||
Ashland [Member] | ||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||||
Insurance receivable - beginning of year | 100 | [1] | 103 | [1] | $ 103 | [1] | $ 123 | [1] | $ 140 | |
Receivable adjustment | [2] | 0 | (2) | 6 | 1 | (5) | ||||
Insurance settlement | 0 | 0 | 0 | (10) | 0 | |||||
Amounts collected | (1) | (3) | (9) | (11) | (12) | |||||
Insurance receivable - end of period | [1] | 99 | 98 | 100 | 103 | 123 | ||||
Hercules [Member] | ||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||||
Insurance receivable - beginning of year | 47 | [3] | 47 | [3] | 47 | [3] | 49 | [3] | 54 | |
Receivable adjustment | [4] | 0 | (1) | 1 | (2) | (5) | ||||
Amounts collected | 0 | 0 | (1) | 0 | 0 | |||||
Insurance receivable - end of period | [3] | $ 47 | $ 46 | $ 47 | $ 47 | $ 49 | ||||
[1] | Includes $ 12 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . | |||||||||
[2] | The three months ended December 31, 2020 includes a reserve adjustment of $ 2 million related to allowances for credit losses as a result of Ashland’s adoption of the new credit measurement standard. The total allowance for credit losses was $ 2 million as of December 31, 2021. | |||||||||
[3] | Includes $ 1 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . | |||||||||
[4] | The three months ended December 31, 2020 includes a reserve adjustment of $ 1 million related to allowances for credit losses as a result of Ashland’s adoption of the new credit measurement standard. The total allowance for credit losses was $ 1 million as of December 31, 2021 . |
Litigation, Claims and Contin_8
Litigation, Claims and Contingencies - Summary of Progression of Insurance Receivable (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |||||||||||
Dec. 31, 2020 | Dec. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |||||||
Ashland [Member] | ||||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||||||
Insurance receivable | $ 98 | [1] | $ 99 | [1] | $ 100 | [1] | $ 103 | [1] | $ 123 | [1] | $ 140 | |
Allowance for credit losses | 2 | |||||||||||
Total allowance for credit losses | 2 | |||||||||||
Ashland [Member] | Accounts Receivable [Member] | ||||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||||||
Insurance receivable | [1] | 12 | 12 | |||||||||
Hercules [Member] | ||||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||||||
Insurance receivable | 46 | [2] | 47 | [2] | 47 | [2] | $ 47 | [2] | $ 49 | [2] | $ 54 | |
Allowance for credit losses | $ 1 | |||||||||||
Total allowance for credit losses | 1 | |||||||||||
Hercules [Member] | Accounts Receivable [Member] | ||||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||||||
Insurance receivable | $ 1 | $ 1 | ||||||||||
[1] | Includes $ 12 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . | |||||||||||
[2] | Includes $ 1 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 . |
Litigation, Claims and Contin_9
Litigation, Claims and Contingencies - Summary of Reconciliation of Changes in Environmental Remediation Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||
Reserve - beginning of period | $ 207 | $ 200 |
Disbursements | (14) | (10) |
Revised obligation estimates and accretion | 4 | 5 |
Reserve - end of period | $ 197 | $ 195 |
Litigation, Claims and Conti_10
Litigation, Claims and Contingencies - Summary of Components of Environmental Remediation Expense Included within Selling, General and Administrative Expense (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Loss Contingencies [Line Items] | |||
Environmental expense | $ 3 | $ 5 | |
Legal expense | 1 | 1 | |
Total expense | 4 | 6 | |
Insurance receivable | 0 | (1) | |
Total expense, net of receivable activity | [1] | $ 4 | $ 5 |
[1] | Net expense of $ 1 million for the three months ended December 31, 2021 and 2020, relates to divested businesses which qualified for treatment as discontinued operations for which certain environmental liabilities were retained by Ashland. These amounts are classified within the income from discontinued operations caption of the Statements of Consolidated Comprehensive Income (loss). |
Litigation, Claims and Conti_11
Litigation, Claims and Contingencies - Summary of Components of Environmental Remediation Expense Included within Selling, General and Administrative Expense (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||
Net expense relates to divested businesses | $ 1 | $ 1 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from calculation of earnings per share | 1 | 2 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator | ||
Numerator for basic and diluted EPS - Income (loss) from continuing operations | $ 32 | $ 43 |
Denominator | ||
Denominator for basic EPS - Weighted-average common shares outstanding | 57 | 60 |
Share based awards convertible to common shares | 1 | 1 |
Denominator for diluted EPS - Adjusted weighted-average shares and assumed conversions | 58 | 61 |
EPS from continuing operations | ||
Basic | $ 0.56 | $ 0.71 |
Diluted | $ 0.55 | $ 0.70 |
Equity Items - Additional Infor
Equity Items - Additional Information (Details) - $ / shares | 3 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | |
Equity [Abstract] | |||||
Dividend per common share | $ 0.30 | $ 0.275 | $ 0.275 | $ 0.275 | $ 0.275 |
Equity Items - Components of Ac
Equity Items - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
Unrealized translation gain (loss), before tax | $ (18) | $ 48 |
Unrealized translation gain (loss), tax | 1 | 0 |
Unrealized translation gain (loss), net of tax | (17) | 48 |
Unrealized gain (loss) on commodity hedges, before tax | (4) | 0 |
Unrealized gain (loss) on commodity hedges, tax | 1 | 0 |
Unrealized gain (loss) on commodity hedges, net of tax | (3) | 0 |
Total other comprehensive income (loss), before tax | (22) | 48 |
Total other comprehensive income (loss), tax | 2 | 0 |
Other comprehensive income (loss), net of tax | $ (20) | $ 48 |
Equity Items - Summary of Recon
Equity Items - Summary of Reconciliation of Changes in Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Balance, end of period | $ 2,763 | $ 3,122 | |
Cash dividends declared per common share | $ 0.300 | $ 0.275 | |
Common Stock and Paid in Capital [Member] | |||
Balance, beginning of period | $ 328 | $ 770 | |
Common shares issued under stock incentive and other plans | [1] | 0 | 1 |
Balance, end of period | 328 | 771 | |
Retained earnings [Member] | |||
Balance, beginning of period | 2,796 | 2,649 | |
Adoption of new accounting pronouncements | 0 | (2) | |
Net income | 48 | 56 | |
Regular dividends | (17) | (17) | |
Balance, end of period | 2,827 | 2,686 | |
Accumulated other comprehensive income (loss) [Member] | |||
Balance, beginning of period | (372) | (383) | |
Unrealized translation gain (loss) | (17) | 48 | |
Unrealized loss on commodity hedges | (3) | 0 | |
Balance, end of period | $ (392) | $ (335) | |
[1] | Common shares issued were 94,715 shares and 99,194 for the three months ended December 31, 2021 and 2020 , respectively. |
Equity Items - Summary of Rec_2
Equity Items - Summary of Reconciliation of Changes in Stockholders' Equity (Parenthetical) (Details) - shares | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
Common shares issued | 94,715 | 99,194 |
Stock Incentive Plans - Compone
Stock Incentive Plans - Components of Pre-Tax Stock-Based Compensation Expense Included in Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2021 | [1] | Dec. 31, 2020 | [2] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 6 | $ 5 | ||
Stock Appreciation Rights (SARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 0 | 1 | ||
Nonvested Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 4 | 2 | ||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 2 | $ 2 | ||
[1] | Included $ 2 million of expense related to cash-settled nonvested restricted stock awards during the three months ended December 31, 2021 . | |||
[2] | Included $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three months ended December 31, 2020. |
Stock Incentive Plans - Compo_2
Stock Incentive Plans - Components of Pre-Tax Stock-Based Compensation Expense Included in Continuing Operations (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 6 | [1] | $ 5 | [2] |
Cash-settled Nonvested Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 2 | $ 1 | ||
[1] | Included $ 2 million of expense related to cash-settled nonvested restricted stock awards during the three months ended December 31, 2021 . | |||
[2] | Included $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three months ended December 31, 2020. |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Sales | $ 512 | $ 468 |
Life Sciences [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 170 | 170 |
Life Sciences [Member] | North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 53 | 51 |
Life Sciences [Member] | Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 55 | 54 |
Life Sciences [Member] | Asia Pacific [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 46 | 47 |
Life Sciences [Member] | Latin America & Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 16 | 18 |
Personal Care [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 147 | 126 |
Personal Care [Member] | North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 41 | 41 |
Personal Care [Member] | Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 57 | 46 |
Personal Care [Member] | Asia Pacific [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 32 | 21 |
Personal Care [Member] | Latin America & Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 17 | 18 |
Specialty Additives [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 156 | 147 |
Specialty Additives [Member] | North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 52 | 45 |
Specialty Additives [Member] | Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 55 | 52 |
Specialty Additives [Member] | Asia Pacific [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 41 | 41 |
Specialty Additives [Member] | Latin America & Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 8 | 9 |
Intermediates [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 53 | 33 |
Intermediates [Member] | North America [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 32 | 21 |
Intermediates [Member] | Europe [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 10 | 4 |
Intermediates [Member] | Asia Pacific [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | 9 | 7 |
Intermediates [Member] | Latin America & Other [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Sales | $ 2 | $ 1 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Trade Receivable [Member] | ||
Revenue From Contracts With Customers [Line Items] | ||
Trade receivables | $ 288 | $ 308 |
Reportable Segment Informatio_2
Reportable Segment Information - Summary of Financial Information for Each Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | ||
Segment Reporting Information [Line Items] | ||||
SALES | $ 512 | $ 468 | ||
OPERATING INCOME (LOSS) | 42 | 17 | ||
DEPRECIATION EXPENSE | 36 | 38 | ||
AMORTIZATION EXPENSE | 24 | 21 | ||
EBITDA | [1] | 102 | 76 | |
TOTAL ASSETS | 6,549 | $ 6,612 | ||
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | [2] | (14) | (8) | |
Life Sciences [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 170 | 170 | ||
OPERATING INCOME (LOSS) | 21 | 29 | ||
DEPRECIATION EXPENSE | 8 | 9 | ||
AMORTIZATION EXPENSE | 7 | 7 | ||
EBITDA | [1] | 36 | 45 | |
TOTAL ASSETS | 1,922 | 1,945 | ||
Personal Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 147 | 126 | ||
OPERATING INCOME (LOSS) | 15 | 15 | ||
DEPRECIATION EXPENSE | 9 | 10 | ||
AMORTIZATION EXPENSE | 12 | 9 | ||
EBITDA | [1] | 36 | 34 | |
TOTAL ASSETS | 1,110 | 1,145 | ||
Specialty Additives [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 156 | 147 | ||
OPERATING INCOME (LOSS) | [3] | 17 | 2 | |
DEPRECIATION EXPENSE | 16 | 16 | ||
AMORTIZATION EXPENSE | 5 | 5 | ||
EBITDA | [1] | 38 | 23 | |
TOTAL ASSETS | 1,618 | 1,636 | ||
Intermediates [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 53 | 33 | ||
OPERATING INCOME (LOSS) | 16 | 2 | ||
DEPRECIATION EXPENSE | 3 | 3 | ||
AMORTIZATION EXPENSE | 0 | 0 | ||
EBITDA | [1] | 19 | 5 | |
TOTAL ASSETS | 163 | 160 | ||
Unallocated and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
OPERATING INCOME (LOSS) | (27) | (31) | ||
EBITDA | [1] | (27) | $ (31) | |
TOTAL ASSETS | $ 1,736 | $ 1,726 | ||
[1] | Excludes income (loss) from discontinued operations, other net periodic benefit income (expense) and net income (loss) on divestitures. See the Statement of Consolidated Comprehensive Income (Loss) for applicable amounts excluded. | |||
[2] | Intersegment sales from Intermediates are accounted for at prices that approximate fair value. All other intersegment sales are accounted for at cost. | |||
[3] | Includes a capital project impairment of $ 9 million for the three months ended December 20, 2020 relating to a long-term capital project plan change at a plant facility. |
Reportable Segment Informatio_3
Reportable Segment Information - Summary of Financial Information for Each Reportable Segment (Parenthetical) (Details) $ in Millions | 3 Months Ended |
Dec. 20, 2020USD ($) | |
Specialty Additives [Member] | |
Segment Reporting Information [Line Items] | |
Capital project impairment | $ 9 |