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ASH Ashland Global

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of report (Date of earliest event reported):  April 28, 2020

ASHLAND GLOBAL HOLDINGS INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation) 

 

333-211719

 

81-2587835

(Commission File Number)

 

(I.R.S. Employer Identification No.)

 

8145 Blazer Drive

Wilmington, DE 19808

Registrant’s telephone number, including area code (302) 995-3000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock (par value $.01)

 

ASH

 

NYSE

 

 

 

 

 


Item 7.01.  Regulation FD Disclosure.

 

During the second quarter of fiscal year 2020, Ashland Global Holdings Inc. (“Ashland”) changed the manner in which it manages the business, moving from a functionally-led to a business-led organization.  As a result, Ashland’s operations are now managed by the chief operating decision maker within the following five reportable segments:

 

 

Life Sciences: this segment is comprised of pharmaceuticals, nutrition, nutraceuticals, agricultural chemicals, advanced materials and fine chemicals.

 

 

Personal Care & Household: this segment is comprised of biofunctionals, preservatives, skin care, sun care, oral care, hair care and household.

 

 

Specialty Additives: this segment is comprised of rheology- and performance-enhancing additives serving the coatings, construction, energy, automotive and various industrial markets.

 

 

Performance Adhesives: this segment is comprised of adhesives used in packaging, converting and structural applications.

 

 

Intermediates & Solvents: this segment is comprised of the production of 1,4 butanediol (BDO) and related derivatives serving diverse end markets as well as providing feedstocks for the Life Sciences and Personal Care segments.  

 

 

Unallocated and Other generally includes items such as certain significant company-wide restructuring activities, corporate governance costs and legacy costs or adjustments that relate to divested businesses that are no longer operated by Ashland.

 

Ashland is providing summary historical financial information for the four quarters of fiscal year 2019 and the first quarter of fiscal year 2020 based upon the new segment reporting adopted during the second quarter of fiscal year 2020 within Tables 1 through 6.

 

These segment changes have no impact on our historical consolidated balance sheets, statements of earnings or cash flows. The recast unaudited information related to Ashland’s previously issued historical financial information that is provided in this Current Report on Form 8-K is revised on a basis that is consistent with the reorganization of Ashland’s reportable segments.  This Current Report on Form 8-K should be read in conjunction with Ashland’s Quarterly Reports on Form 10-Q for the four quarters of fiscal year 2019 and the first quarter of fiscal year 2020 filed with the Securities and Exchange Commission.

 

2

 


Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

Table 1

 

ADJUSTED RESULTS SUMMARY (a)

 

 

 

 

 

 

 

 

 

(in millions except percentages - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

December 31, 2018

 

 

March 30,

2019

 

 

June 30,

2019

 

 

September 30, 2019

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$

170

 

 

$

196

 

 

$

190

 

 

$

176

 

 

$

155

 

Adjusted EBITDA

 

38

 

 

 

48

 

 

 

47

 

 

 

41

 

 

 

37

 

     Adjusted EBITDA Margin

 

22.4

%

 

 

24.5

%

 

 

24.7

%

 

 

23.3

%

 

 

23.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal Care & Household

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$

154

 

 

$

183

 

 

$

158

 

 

$

157

 

 

$

137

��

Adjusted EBITDA

 

37

 

 

 

44

 

 

 

37

 

 

 

47

 

 

 

30

 

     Adjusted EBITDA Margin

 

24.0

%

 

 

24.0

%

 

 

23.4

%

 

 

29.9

%

 

 

21.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Specialties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$

324

 

 

$

379

 

 

$

348

 

 

$

333

 

 

$

292

 

Adjusted EBITDA

 

75

 

 

 

92

 

 

 

84

 

 

 

88

 

 

 

67

 

     Adjusted EBITDA Margin

 

23.1

%

 

 

24.3

%

 

 

24.1

%

 

 

26.4

%

 

 

22.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Specialty Additives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$

148

 

 

$

169

 

 

$

177

 

 

$

161

 

 

$

139

 

Adjusted EBITDA

 

26

 

 

 

38

 

 

 

42

 

 

 

44

 

 

 

29

 

     Adjusted EBITDA Margin

 

17.6

%

 

 

22.5

%

 

 

23.7

%

 

 

27.3

%

 

 

20.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Adhesives

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$

81

 

 

$

89

 

 

$

88

 

 

$

85

 

 

$

74

 

Adjusted EBITDA

 

13

 

 

 

21

 

 

 

20

 

 

 

19

 

 

 

15

 

     Adjusted EBITDA Margin

 

16.0

%

 

 

23.6

%

 

 

22.7

%

 

 

22.4

%

 

 

20.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial Specialties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$

229

 

 

$

258

 

 

$

265

 

 

$

246

 

 

$

213

 

Adjusted EBITDA

 

39

 

 

 

59

 

 

 

62

 

 

 

63

 

 

 

44

 

     Adjusted EBITDA Margin

 

17.0

%

 

 

22.9

%

 

 

23.4

%

 

 

25.6

%

 

 

20.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intermediates & Solvents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$

33

 

 

$

44

 

 

$

41

 

 

$

42

 

 

$

28

 

Adjusted EBITDA

 

5

 

 

 

12

 

 

 

12

 

 

 

13

 

 

 

(9

)

     Adjusted EBITDA Margin

 

15.2

%

 

 

27.3

%

 

 

29.3

%

 

 

31.0

%

 

 

-32.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate & Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$

(10

)

 

$

(14

)

 

$

(13

)

 

$

(12

)

 

$

-

 

Adjusted EBITDA

 

(19

)

 

 

(21

)

 

 

(18

)

 

 

(14

)

 

 

(14

)

     Adjusted EBITDA Margin

N/M

 

 

N/M

 

 

N/M

 

 

N/M

 

 

N/M

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ashland Global Holdings Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

$

576

 

 

$

667

 

 

$

641

 

 

$

609

 

 

$

533

 

Adjusted EBITDA

 

100

 

 

 

142

 

 

 

140

 

 

 

150

 

 

 

88

 

     Adjusted EBITDA Margin

 

17.4

%

 

 

21.3

%

 

 

21.8

%

 

 

24.6

%

 

 

16.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) All figures are presented on an adjusted basis except Sales.  Tables 2 through 6 reconcile adjusted amounts to amounts reported under GAAP, including reconciliations of Net Income to Adjusted EBITDA.  Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Sales.

 

 

3


Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 2

 

STATEMENTS OF CONSOLIDATED INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2018

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

Sales

$

170

 

 

$

154

 

 

$

324

 

 

$

148

 

 

$

81

 

 

$

229

 

 

$

33

 

 

$

(10

)

 

$

576

 

Cost of sales

 

 

 

 

 

 

 

 

 

208

 

 

 

 

 

 

 

 

 

 

 

198

 

 

 

28

 

 

 

(10

)

 

 

424

 

GROSS PROFIT

 

 

 

 

 

 

 

 

 

116

 

 

 

 

 

 

 

 

 

 

 

31

 

 

 

5

 

 

 

-

 

 

 

152

 

Selling, general and administrative expense

 

 

 

 

 

 

 

 

 

48

 

 

 

 

 

 

 

 

 

 

 

34

 

 

 

3

 

 

 

37

 

 

 

122

 

Research and development expense

 

 

 

 

 

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

-

 

 

 

-

 

 

 

17

 

Intangible amortization expense

 

 

 

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

21

 

Equity and Other Income

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

1

 

 

 

1

 

OPERATING INCOME (LOSS)

 

23

 

 

 

18

 

 

 

41

 

 

 

(23

)

 

 

9

 

 

 

(14

)

 

 

2

 

 

 

(36

)

 

 

(7

)

Net interest and other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

55

 

 

 

55

 

Other net periodic benefit income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18

 

 

 

18

 

Net income (loss) on divestitures

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

(3

)

 

 

(3

)

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

23

 

 

 

18

 

 

 

41

 

 

 

(23

)

 

 

9

 

 

 

(14

)

 

 

2

 

 

 

(76

)

 

 

(47

)

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24

 

 

 

24

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

23

 

 

 

18

 

 

 

41

 

 

 

(23

)

 

 

9

 

 

 

(14

)

 

 

2

 

 

 

(100

)

 

 

(71

)

Income (loss) from discontinued operations (net of income taxes)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23

 

 

 

23

 

NET INCOME (LOSS)

$

23

 

 

$

18

 

 

$

41

 

 

$

(23

)

 

$

9

 

 

$

(14

)

 

$

2

 

 

$

(77

)

 

$

(48

)

 

 

4

 


Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

 

 

 

 

Table 2 - Continued

 

SEGMENT COMPONENTS OF KEY ITEMS FOR APPLICABLE INCOME STATEMENT CAPTIONS

 

 

 

 

 

 

 

 

 

(In millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2018

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating key items

$

-

 

 

$

-

 

 

$

-

 

 

$

(28

)

 

$

-

 

 

$

(28

)

 

$

-

 

 

$

(17

)

 

$

(45

)

All other operating income (loss)

 

23

 

 

 

18

 

 

 

41

 

 

 

5

 

 

 

9

 

 

 

14

 

 

 

2

 

 

 

(19

)

 

 

38

 

Operating income (loss)

 

23

 

 

 

18

 

 

 

41

 

 

 

(23

)

 

 

9

 

 

 

(14

)

 

 

2

 

 

 

(36

)

 

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST AND OTHER EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30

 

 

 

30

 

All other net interest and other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25

 

 

 

25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ON DIVESTITURES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX EXPENSE (BENEFIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax effect of key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8

)

 

 

(8

)

Tax specific key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Deferred tax rate changes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

     One-time transition tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22

 

 

 

22

 

     Restructuring and separation activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

��

 

 

1

 

 

 

1

 

     Other tax reform related activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

3

 

All other income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER NET PERIODIC BENEFIT INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18

 

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

$

23

 

 

$

18

 

 

$

41

 

 

$

(23

)

 

$

9

 

 

$

(14

)

 

$

2

 

 

$

(100

)

 

$

(71

)

 

5

 


Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2 - Continued

 

RECONCILIATION OF NON-GAAP DATA - ADJUSTED EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2018

 

 

Life Sciences

 

 

Personal Care & Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) (as reported)

$

23

 

 

$

18

 

 

$

41

 

 

$

(23

)

 

$

9

 

 

$

(14

)

 

$

2

 

 

$

(77

)

 

$

(48

)

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

24

 

 

 

24

 

Net interest and other expense

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

55

 

 

 

55

 

Subtotal

 

23

 

 

 

18

 

 

 

41

 

 

 

(23

)

 

 

9

 

 

 

(14

)

 

 

2

 

 

 

2

 

 

 

31

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Depreciation and amortization (a)

 

15

 

 

 

19

 

 

 

34

 

 

 

21

 

 

 

4

 

 

 

25

 

 

 

3

 

 

 

-

 

 

 

62

 

     Operating key items

 

-

 

 

 

-

 

 

 

-

 

 

 

28

 

 

 

-

 

 

 

28

 

 

 

-

 

 

 

17

 

 

 

45

 

     Net income (loss) on divestitures key items

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

3

 

 

 

3

 

     Income (loss) from discontinued operations

     (net of taxes)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

(23

)

 

 

(23

)

     Gain on pension and other postretirement

     plan remeasurements

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

(18

)

 

 

(18

)

Adjusted EBITDA (non-GAAP)

$

38

 

 

$

37

 

 

$

75

 

 

$

26

 

 

$

13

 

 

$

39

 

 

$

5

 

 

$

(19

)

 

$

100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Depreciation and amortization excludes accelerated depreciation of $19 million for Specialty Additives for the three months ended December 31, 2018 which is included as a key item within this table.

 

 

6

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 2 - Continued

 

RECONCILIATION OF CERTAIN NON-GAAP DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2018

 

 

Life Sciences

 

 

Personal Care & Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from continuing operations (as reported)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(1.14

)

Key items, before tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Restructuring, separation and other costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.71

 

     Gain on pension and other postretirement

     plan measurements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.29

)

     Unrealized (gain) loss on securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.47

 

     Net loss on acquisitions and divestitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.05

 

Key items, before tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.94

 

Tax effect of key items (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.11

)

Key items, after tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.83

 

Tax specific key items (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Deferred tax rate changes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.03

 

     One-time transition tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.35

 

     Restructuring and separation activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.02

 

     Other tax reform related activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.05

 

Tax specific key items:

 

 

 

 

 

 

 

 

 

 

 

0.45

 

Total key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.28

 

Adjusted diluted EPS from continuing operations (non-GAAP)

 

 

 

 

 

 

 

 

 

 

$

0.14

 

Amortization expense, after tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.26

 

Adjusted diluted EPS from continuing operations excluding intangible amortization expense (non-GAAP)

 

 

 

 

 

 

 

 

 

 

$

0.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Diluted Common Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Represents the tax effect of the key items that are previously identified above.

 

(b) Represents key items resulting from tax specific financial transactions, tax law changes or other matters that fall within the definition of tax specific key items.

 

 

 

 

7

 


Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 3

 

STATEMENTS OF CONSOLIDATED INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

Sales

$

196

 

 

$

183

 

 

$

379

 

 

$

169

 

 

$

89

 

 

$

258

 

 

$

44

 

 

$

(14

)

 

$

667

 

Cost of sales

 

 

 

 

 

 

 

 

 

249

 

 

 

 

 

 

 

 

 

 

 

201

 

 

 

33

 

 

 

(14

)

 

 

469

 

GROSS PROFIT

 

 

 

 

 

 

 

 

 

130

 

 

 

 

 

 

 

 

 

 

 

57

 

 

 

11

 

 

 

-

 

 

 

198

 

Selling, general and administrative expense

 

 

 

 

 

 

 

 

 

45

 

 

 

 

 

 

 

 

 

 

 

31

 

 

 

2

 

 

 

37

 

 

 

115

 

Research and development expense

 

 

 

 

 

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

-

 

 

 

-

 

 

 

17

 

Intangible amortization expense

 

 

 

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

21

 

Equity and Other Income

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

(1

)

 

 

(1

)

OPERATING INCOME (LOSS)

 

33

 

 

 

25

 

 

 

58

 

 

 

(2

)

 

 

17

 

 

 

15

 

 

 

9

 

 

 

(38

)

 

 

44

 

Net interest and other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

(3

)

Other net periodic benefit income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

Net income (loss) on divestitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

33

 

 

 

25

 

 

 

58

 

 

 

(2

)

 

 

17

 

 

 

15

 

 

 

9

 

 

 

(36

)

 

 

46

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

33

 

 

 

25

 

 

 

58

 

 

 

(2

)

 

 

17

 

 

 

15

 

 

 

9

 

 

 

(37

)

 

 

45

 

Income (loss) from discontinued operations (net of income taxes)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

 

 

 

31

 

NET INCOME (LOSS)

$

33

 

 

$

25

 

 

$

58

 

 

$

(2

)

 

$

17

 

 

$

15

 

 

$

9

 

 

$

(6

)

 

$

76

 

 

 

8

 


 

Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 3 - Continued

 

SEGMENT COMPONENTS OF KEY ITEMS FOR APPLICABLE INCOME STATEMENT CAPTIONS

 

 

 

 

 

 

 

 

 

(In millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating key items

$

-

 

 

$

-

 

 

$

-

 

 

$

(20

)

 

$

-

 

 

$

(20

)

 

$

-

 

 

$

(17

)

 

$

(37

)

All other operating income (loss)

 

33

 

 

 

25

 

 

 

58

 

 

 

18

 

 

 

17

 

 

 

35

 

 

 

9

 

 

 

(21

)

 

 

81

 

Operating income (loss)

 

33

 

 

 

25

 

 

 

58

 

 

 

(2

)

 

 

17

 

 

 

15

 

 

 

9

 

 

 

(38

)

 

 

44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST AND OTHER EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

��

 

(27

)

 

 

(27

)

All other net interest and other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24

 

 

 

24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ON DIVESTITURES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX EXPENSE (BENEFIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax effect of key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

Tax specific key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Deferred tax rate changes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

     One-time transition tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

     Restructuring and separation activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

(2

)

     Other tax reform related activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

(3

)

All other income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER NET PERIODIC BENEFIT INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

$

33

 

 

$

25

 

 

$

58

 

 

$

(2

)

 

$

17

 

 

$

15

 

 

$

9

 

 

$

(37

)

 

$

45

 

 

9

 


Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 3 - Continued

 

RECONCILIATION OF NON-GAAP DATA - ADJUSTED EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) (as reported)

$

33

 

 

$

25

 

 

$

58

 

 

$

(2

)

 

$

17

 

 

$

15

 

 

$

9

 

 

$

(6

)

 

$

76

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

1

 

 

 

1

 

Net interest and other expense

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

(3

)

 

 

(3

)

Subtotal

 

33

 

 

 

25

 

 

 

58

 

 

 

(2

)

 

 

17

 

 

 

15

 

 

 

9

 

 

 

(8

)

 

 

74

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Depreciation and amortization (a)

 

15

 

 

 

19

 

 

 

34

 

 

 

20

 

 

 

4

 

 

 

24

 

 

 

3

 

 

 

1

 

 

 

62

 

     Operating key items

 

-

 

 

 

-

 

 

 

-

 

 

 

20

 

 

 

-

 

 

 

20

 

 

 

-

 

 

 

17

 

 

 

37

 

     Net income (loss) on divestitures key items

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

-

 

 

 

-

 

     Income (loss) from discontinued operations

     (net of taxes)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

(31

)

 

 

(31

)

     Gain on pension and other postretirement

    plan remeasurements

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

-

 

 

 

-

 

Adjusted EBITDA (non-GAAP)

$

48

 

 

$

44

 

 

$

92

 

 

$

38

 

 

$

21

 

 

$

59

 

 

$

12

 

 

$

(21

)

 

$

142

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Depreciation and amortization exclude accelerated depreciation of $19 million for Specialty Additives for the three months ended March 31, 2019 and $1 million for Unallocated and Other for the three months ended March 31, 2019, which are included as a key item within this table.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 3 - Continued

 

RECONCILIATION OF CERTAIN NON-GAAP DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from continuing operations (as reported)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0.71

 

Key items, before tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Restructuring, separation and other costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.58

 

     Gain on pension and other postretirement

     plan measurements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

     Unrealized (gain) loss on securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.42

)

     Net loss on acquisitions and divestitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Key items, before tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.16

 

Tax effect of key items (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.04

 

Key items, after tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.20

 

Tax specific key items (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

��

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Deferred tax rate changes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

     One-time transition tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

     Restructuring and separation activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.03

)

     Other tax reform related activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.05

)

Tax specific key items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.08

)

Total key items

 

 

 

 

 

 

 

 

 

 

 

0.12

 

Adjusted diluted EPS from continuing

operations (non-GAAP)

 

 

 

 

 

 

 

 

 

 

$

0.83

 

Amortization expense, after tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.25

 

Adjusted diluted EPS from continuing operations excluding intangible amortization expense (non-GAAP)

 

 

 

 

 

 

 

 

 

 

$

1.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Diluted Common Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Represents the tax effect of the key items that are previously identified above.

 

(b) Represents key items resulting from tax specific financial transactions, tax law changes or other matters that fall within the definition of tax specific key items.

 

 

 

 

11

 


 

Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 4

 

STATEMENTS OF CONSOLIDATED INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

Sales

$

190

 

 

$

158

 

 

$

348

 

 

$

177

 

 

$

88

 

 

$

265

 

 

$

41

 

 

$

(13

)

 

$

641

 

Cost of sales

 

 

 

 

 

 

 

 

 

227

 

 

 

 

 

 

 

 

 

 

 

190

 

 

 

30

 

 

 

(13

)

 

 

434

 

GROSS PROFIT

 

 

 

 

 

 

 

 

 

121

 

 

 

 

 

 

 

 

 

 

 

75

 

 

 

11

 

 

 

-

 

 

 

207

 

Selling, general and administrative expense

 

 

 

 

 

 

 

 

 

45

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

2

 

 

 

53

 

 

 

129

 

Research and development expense

 

 

 

 

 

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

-

 

 

 

-

 

 

 

17

 

Intangible amortization expense

 

 

 

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

21

 

Equity and Other Income

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

3

 

 

 

3

 

OPERATING INCOME (LOSS)

 

32

 

 

 

17

 

 

 

49

 

 

 

19

 

 

 

16

 

 

 

35

 

 

 

9

 

 

 

(50

)

 

 

43

 

Net interest and other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21

 

 

 

21

 

Other net periodic benefit income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

Net income (loss) on divestitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

32

 

 

 

17

 

 

 

49

 

 

 

19

 

 

 

16

 

 

 

35

 

 

 

9

 

 

 

(71

)

 

 

22

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

32

 

 

 

17

 

 

 

49

 

 

 

19

 

 

 

16

 

 

 

35

 

 

 

9

 

 

 

(70

)

 

 

23

 

Income (loss) from discontinued operations (net of income taxes)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43

 

 

 

43

 

NET INCOME (LOSS)

$

32

 

 

$

17

 

 

$

49

 

 

$

19

 

 

$

16

 

 

$

35

 

 

$

9

 

 

$

(27

)

 

$

66

 

 

 

12

 


Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 4 - Continued

 

SEGMENT COMPONENTS OF KEY ITEMS FOR APPLICABLE INCOME STATEMENT CAPTIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating key items

$

-

 

 

$

-

 

 

$

-

 

 

$

(3

)

 

$

-

 

 

$

(3

)

 

$

-

 

 

$

(32

)

 

$

(35

)

All other operating income (loss)

 

32

 

 

 

17

 

 

 

49

 

 

 

22

 

 

 

16

 

 

 

38

 

 

 

9

 

 

 

(18

)

 

 

78

 

Operating income (loss)

 

32

 

 

 

17

 

 

 

49

 

 

 

19

 

 

 

16

 

 

 

35

 

 

 

9

 

 

 

(50

)

 

 

43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST AND OTHER EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6

)

 

 

(6

)

All other net interest and other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27

 

 

 

27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ON DIVESTITURES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX EXPENSE (BENEFIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax effect of key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5

)

 

 

(5

)

Tax specific key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Deferred tax rate changes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

     One-time transition tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

6

 

     Uncertain tax positions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8

)

 

 

(8

)

     Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

3

 

All other income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER NET PERIODIC BENEFIT INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

$

32

 

 

$

17

 

 

$

49

 

 

$

19

 

 

$

16

 

 

$

35

 

 

$

9

 

 

$

(70

)

 

$

23

 

 

13

 


Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 4 - Continued

 

RECONCILIATION OF NON-GAAP-DATA - ADJUSTED EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) (as Reported)

$

32

 

 

$

17

 

 

$

49

 

 

$

19

 

 

$

16

 

 

$

35

 

 

$

9

 

 

$

(27

)

 

$

66

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

(1

)

 

 

(1

)

Net interest and other expense

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

21

 

 

 

21

 

Subtotal

 

32

 

 

 

17

 

 

 

49

 

 

 

19

 

 

 

16

 

 

 

35

 

 

 

9

 

 

 

(7

)

 

 

86

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Depreciation and amortization

 

15

 

 

 

20

 

 

 

35

 

 

 

20

 

 

 

4

 

 

 

24

 

 

 

3

 

 

 

-

 

 

 

62

 

     Operating key items

 

-

 

 

 

-

 

 

 

-

 

 

 

3

 

 

 

-

 

 

 

3

 

 

 

-

 

 

 

32

 

 

 

35

 

     Net income (loss) on divestitures key items

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

-

 

 

 

-

 

     Income (loss) from discontinued operations

     (net of taxes)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

(43

)

 

 

(43

)

     Gain on pension and other postretirement

     plan remeasurements

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

-

 

 

 

-

 

Adjusted EBITDA (non-GAAP)

$

47

 

 

$

37

 

 

$

84

 

 

$

42

 

 

$

20

 

 

$

62

 

 

$

12

 

 

$

(18

)

 

$

140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 4 - Continued

 

RECONCILIATION OF NON-GAAP-DATA - ADJUSTED EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from continuing operations (as reported)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0.37

 

Key items, before tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Restructuring, separation and other costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.19

 

     Tax indemnity expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.10

 

     Environmental reserve adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.24

 

     Unplanned plant shutdowns

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.03

 

     Unrealized (gain) loss on securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.10

)

Key items, before tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.46

 

Tax effect of key items (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.08

)

Key items, after tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.38

 

Tax specific key items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Deferred tax rate changes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

     One-time transition tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.10

 

     Restructuring and separation activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.13

)

     Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.05

 

Tax specific key items (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.02

 

Total key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.40

 

Adjusted diluted EPS from continuing operations (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0.77

 

Amortization expense, after tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.25

 

Adjusted diluted EPS from continuing operations excluding intangible amortization expense (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Diluted Common Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Represents the tax effect of the key items that are previously identified above.

 

(b) Represents key items resulting from tax specific financial transactions, tax law changes or other matters that fall within the definition of tax specific key items.

 

 

 

 

15

 


 

Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 5

 

STATEMENTS OF CONSOLIDATED INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

Sales

$

176

 

 

$

157

 

 

$

333

 

 

$

161

 

 

$

85

 

 

$

246

 

 

$

42

 

 

$

(12

)

 

$

609

 

Cost of sales

 

 

 

 

 

 

 

 

 

212

 

 

 

 

 

 

 

 

 

 

 

170

 

 

 

30

 

 

 

(12

)

 

 

400

 

GROSS PROFIT

 

 

 

 

 

 

 

 

 

121

 

 

 

 

 

 

 

 

 

 

 

76

 

 

 

12

 

 

 

-

 

 

 

209

 

Selling, general and administrative expense

 

 

 

 

 

 

 

 

 

42

 

 

 

 

 

 

 

 

 

 

 

28

 

 

 

3

 

 

 

15

 

 

 

88

 

Research and development expense

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

15

 

Intangible amortization expense

 

 

 

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

21

 

Equity and Other Income

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

OPERATING INCOME (LOSS)

 

26

 

 

 

27

 

 

 

53

 

 

 

23

 

 

 

15

 

 

 

38

 

 

 

9

 

 

 

(15

)

 

 

85

 

Net interest and other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26

 

 

 

26

 

Other net periodic benefit income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11

)

 

 

(11

)

Net income (loss) on divestitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

26

 

 

 

27

 

 

 

53

 

 

 

23

 

 

 

15

 

 

 

38

 

 

 

9

 

 

 

(51

)

 

 

49

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22

 

 

 

22

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

26

 

 

 

27

 

 

 

53

 

 

 

23

 

 

 

15

 

 

 

38

 

 

 

9

 

 

 

(73

)

 

 

27

 

Income (loss) from discontinued operations (net of income taxes)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

384

 

 

 

384

 

NET INCOME (LOSS)

$

26

 

 

$

27

 

 

$

53

 

 

$

23

 

 

$

15

 

 

$

38

 

 

$

9

 

 

$

311

 

 

$

411

 

 

 

16

 


 

Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 5 - Continued

 

SEGMENT COMPONENTS OF KEY ITEMS FOR APPLICABLE INCOME STATEMENT CAPTIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating key items

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

All other operating income (loss)

 

26

 

 

 

27

 

 

 

53

 

 

 

23

 

 

 

15

 

 

 

38

 

 

 

9

 

 

 

(15

)

 

 

85

 

Operating income (loss)

 

26

 

 

 

27

 

 

 

53

 

 

 

23

 

 

 

15

 

 

 

38

 

 

 

9

 

 

 

(15

)

 

 

85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST AND OTHER EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

All other net interest and other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25

 

 

 

25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ON DIVESTITURES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX EXPENSE (BENEFIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax effect of key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

(3

)

Tax specific key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Uncertain tax positions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

     Restructuring and separation activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13

 

 

 

13

 

     Other tax reform related activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4

)

 

 

(4

)

All other income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14

 

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER NET PERIODIC BENEFIT INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(11

)

 

 

(11

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

$

26

 

 

$

27

 

 

$

53

 

 

$

23

 

 

$

15

 

 

$

38

 

 

$

9

 

 

$

(73

)

 

$

27

 

 

17

 


Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 5 - Continued

 

RECONCILIATION OF NON-GAAP DATA - ADJUSTED EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) (as Reported)

$

26

 

 

$

27

 

 

$

53

 

 

$

23

 

 

$

15

 

 

$

38

 

 

$

9

 

 

$

311

 

 

$

411

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

22

 

 

 

22

 

Net interest and other expense

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

26

 

 

 

26

 

Subtotal

 

26

 

 

 

27

 

 

 

53

 

 

 

23

 

 

 

15

 

 

 

38

 

 

 

9

 

 

 

359

 

 

 

459

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Depreciation and amortization

 

15

 

 

 

20

 

 

 

35

 

 

 

21

 

 

 

4

 

 

 

25

 

 

 

4

 

 

 

-

 

 

 

64

 

     Operating key items

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Net income (loss) on divestitures key items

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

-

 

 

 

-

 

     Income (loss) from discontinued operations

     (net of taxes)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

(384

)

 

 

(384

)

     Gain on pension and other postretirement

     plan remeasurements

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

11

 

 

 

11

 

Adjusted EBITDA (non-GAAP)

$

41

 

 

$

47

 

 

$

88

 

 

$

44

 

 

$

19

 

 

$

63

 

 

$

13

 

 

$

(14

)

 

$

150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 5 - Continued

 

RECONCILIATION OF CERTAIN NON-GAAP DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from continuing operations (as reported)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0.44

 

Key items, before tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Restructuring, separation and other costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

     Gain on pension and other postretirement

     plan measurements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.18

 

     Unrealized (gain) loss on securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.07

)

     Debt Refinancing Costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.09

 

Key items, before tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.20

 

Tax effect of key items (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.05

)

Key items, after tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.15

 

Tax specific key items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Uncertain tax positions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.03

 

     Restructuring and separation activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.21

 

     Other tax reform related activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.06

)

Tax specific key items (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.18

 

Total key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.33

 

Adjusted diluted EPS from continuing operations (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0.77

 

Amortization expense, after tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.26

 

Adjusted diluted EPS from continuing operations excluding

intangible amortization expense (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Diluted Common Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Represents the tax effect of the key items that are previously identified above.

 

(b) Represents key items resulting from tax specific financial transactions, tax law changes or other matters that fall within the definition of tax specific key items.

 

 

 

 

19

 


 

Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 6

 

STATEMENTS OF CONSOLIDATED INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

Sales

$

155

 

 

$

137

 

 

$

292

 

 

$

139

 

 

$

74

 

 

$

213

 

 

$

28

 

 

$

-

 

 

$

533

 

Cost of sales

 

 

 

 

 

 

 

 

 

189

 

 

 

 

 

 

 

 

 

 

 

154

 

 

 

37

 

 

 

-

 

 

 

380

 

GROSS PROFIT

 

 

 

 

 

 

 

 

 

103

 

 

 

 

 

 

 

 

 

 

 

59

 

 

 

(9

)

 

 

-

 

 

 

153

 

Selling, general and administrative expense

 

 

 

 

 

 

 

 

 

44

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

2

 

 

 

24

 

 

 

99

 

Research and development expense

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

-

 

 

 

-

 

 

 

16

 

Intangible amortization expense

 

 

 

 

 

 

 

 

 

16

 

 

 

 

 

 

 

 

 

 

 

5

 

 

 

-

 

 

 

-

 

 

 

21

 

Equity and Other Income

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

OPERATING INCOME (LOSS)

 

22

 

 

 

11

 

 

 

33

 

 

 

8

 

 

 

11

 

 

 

19

 

 

 

(11

)

 

 

(24

)

 

 

17

 

Net interest and other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

10

 

Other net periodic benefit income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

Net income (loss) on divestitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

3

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

22

 

 

 

11

 

 

 

33

 

 

 

8

 

 

 

11

 

 

 

19

 

 

 

(11

)

 

 

(31

)

 

 

10

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(24

)

 

 

(24

)

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

22

 

 

 

11

 

 

 

33

 

 

 

8

 

 

 

11

 

 

 

19

 

 

 

(11

)

 

 

(7

)

 

 

34

 

Income (loss) from discontinued operations (net of income taxes)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

(2

)

NET INCOME (LOSS)

$

22

 

 

$

11

 

 

$

33

 

 

$

8

 

 

$

11

 

 

$

19

 

 

$

(11

)

 

$

(9

)

 

$

32

 

 

 

 

20

 


 

Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 6 - Continued

 

SEGMENT COMPONENTS OF KEY ITEMS FOR APPLICABLE INCOME STATEMENT CAPTIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

(In millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating key items

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

(7

)

 

$

(7

)

All other operating income (loss)

 

22

 

 

 

11

 

 

 

33

 

 

 

8

 

 

 

11

 

 

 

19

 

 

 

(11

)

 

 

(17

)

 

 

24

 

Operating income (loss)

 

22

 

 

 

11

 

 

 

33

 

 

 

8

 

 

 

11

 

 

 

19

 

 

 

(11

)

 

 

(24

)

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST AND OTHER EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9

)

 

 

(9

)

All other net interest and other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

19

 

 

 

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS) ON DIVESTITURES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

All other net income (loss) on divestitures key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX EXPENSE (BENEFIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax effect of key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

1

 

Tax specific key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Deferred tax rate changes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

     One-time transition tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

     Restructuring and separation activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

     Other tax reform related activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25

)

 

 

(25

)

All other income tax expense (benefit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER NET PERIODIC BENEFIT INCOME (COSTS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

$

22

 

 

$

11

 

 

$

33

 

 

$

8

 

 

$

11

 

 

$

19

 

 

$

(11

)

 

$

(7

)

 

$

34

 

 

21

 


Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 6 - Continued

 

RECONCILATION OF NON-GAAP DATA - ADJUSTED EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) (as reported)

$

22

 

 

$

11

 

 

$

33

 

 

$

8

 

 

$

11

 

 

$

19

 

 

$

(11

)

 

$

(9

)

 

$

32

 

Income tax expense (benefit)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

(24

)

 

 

(24

)

Net interest and other expense

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

10

 

 

 

10

 

Subtotal

 

22

 

 

 

11

 

 

 

33

 

 

 

8

 

 

 

11

 

 

 

19

 

 

 

(11

)

 

 

(23

)

 

 

18

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Depreciation and amortization

 

15

 

 

 

19

 

 

 

34

 

 

 

21

 

 

 

4

 

 

 

25

 

 

 

2

 

 

 

-

 

 

 

61

 

     Operating key items

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7

 

 

 

7

 

     Net income (loss) on divestitures key items

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

-

 

 

 

-

 

     Income (loss) from discontinued operations

     (net of taxes)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

2

 

 

 

2

 

     Gain on pension and other postretirement

     plan remeasurements

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

-

 

 

 

 

 

 

 

-

 

 

 

-

 

Adjusted EBITDA (non-GAAP)

$

37

 

 

$

30

 

 

$

67

 

 

$

29

 

 

$

15

 

 

$

44

 

 

$

(9

)

 

$

(14

)

 

$

88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

��

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ashland Global Holdings Inc. and Consolidated Subsidiaries

 

 

 

 

 

 

Table 6 - Continued

 

RECONCILATION OF CERTAIN NON-GAAP DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in millions except per share data - preliminary and unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2019

 

 

Life Sciences

 

 

Personal Care

& Household

 

 

Consumer Specialties

 

 

Specialty Additives

 

 

Performance Adhesives

 

 

Industrial Specialties

 

 

Intermediates & Solvents

 

 

Corporate & Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS from continuing operations (as reported)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0.56

 

Key items, before tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Restructuring, separation and other costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.12

 

     Gain on pension and other postretirement

     plan measurements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

     Unrealized (gain) loss on securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.15

)

     Net loss on acquisitions and divestitures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Key items, before tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.03

)

Tax effect of key items (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.02

 

Key items, after tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.01

)

Tax specific key items (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Deferred tax rate changes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

     One-time transition tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

     Restructuring and separation activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

     Other tax reform related activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.42

)

Tax specific key items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.42

)

Total key items

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(0.43

)

Adjusted diluted EPS from continuing operations (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0.13

 

Amortization expense, after tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.28

 

Adjusted diluted EPS from continuing operations

excluding intangible amortization expense (non-GAAP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

0.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Diluted Common Shares Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Represents the tax effect of the key items that are previously identified above.

 

(b) Represents key items resulting from tax specific financial transactions, tax law changes or other matters that fall within the definition of tax specific key items.

 

 

 

 

23

 


 

Use of Non-GAAP Measures

 

Ashland has included within this document the following non-GAAP measures, on both a consolidated and reportable segment basis, which are not defined within U.S. GAAP and do not purport to be alternatives to net income or cash flows from operating activities as a measure of operating performance or cash flows:

 

 

EBITDA – net income (loss), plus income tax expense (benefit), net interest and other expenses, and depreciation and amortization.

 

 

 

Adjusted EBITDA – EBITDA adjusted for noncontrolling interests, discontinued operations, net income (loss) on acquisitions and divestitures, other income and (expense) and key items (including the remeasurement gains and losses related to pension and other postretirement plans).

 

 

 

Adjusted EBITDA margin – Adjusted EBITDA divided by sales.

 

 

 

Adjusted diluted earnings per share (EPS) – income (loss) from continuing operations, adjusted for key items, net of tax, divided by the average outstanding diluted shares for the applicable period.

 

 

 

Adjusted diluted earnings per share (EPS) excluding intangibles amortization expense – Adjusted earnings per share adjusted for intangibles amortization expense net of tax, divided by the average outstanding diluted shares for the applicable period.

 

 

Management believes the use of EBITDA and Adjusted EBITDA measures on a consolidated and reportable segment basis assists investors in understanding the ongoing operating performance by presenting comparable financial results between periods. Ashland believes that by removing the impact of depreciation and amortization and excluding certain non-cash charges, amounts spent on interest and taxes and certain other charges that are highly variable from year to year, EBITDA and Adjusted EBITDA provide Ashland’s investors with performance measures that reflect the impact to operations from trends in changes in sales, margin and operating expenses, providing a perspective not immediately apparent from net income and operating income. The adjustments Ashland makes to derive the non-GAAP measures of EBITDA and Adjusted EBITDA exclude items which may cause short-term fluctuations in net income and operating income and which Ashland does not consider to be the fundamental attributes or primary drivers of its business. EBITDA and Adjusted EBITDA provide disclosure on the same basis as that used by Ashland’s management to evaluate financial performance on a consolidated and reportable segment basis and provide consistency in our financial reporting, facilitate internal and external comparisons of Ashland’s historical operating performance and its business units and provide continuity to investors for comparability purposes.

 

The Adjusted diluted EPS metric enables Ashland to demonstrate what effect key items have on an earnings per diluted share basis by taking income (loss) from continuing operations, adjusted for key items after tax that have been identified in the Adjusted EBITDA table, and dividing by the average outstanding diluted shares for the applicable period. Ashland’s management believes this presentation is helpful to illustrate how the key items have impacted this metric during the applicable period.

 

The Adjusted diluted EPS, excluding intangibles amortization expense metric enables Ashland to demonstrate the impact of non-cash intangibles amortization expense on EPS. Ashland’s management believes this presentation is helpful to illustrate how previous acquisitions have impacted applicable period results.

 

These non-GAAP measures should be considered supplemental in nature and should not be construed as more significant than comparable measures defined by U.S. GAAP. Limitations associated with the use of these non-GAAP measures include that these measures do not present all of the amounts associated with our results as determined in accordance with U.S. GAAP. The non-GAAP measures provided are used by Ashland’s management and may not be determined in a manner consistent with the methodologies used by other companies. EBITDA and Adjusted EBITDA provide a supplemental presentation of Ashland’s operating performance on a consolidated and reportable segment basis.

 

 

24

 


 

™ Trademark, Ashland or its subsidiaries, registered in various countries.

 

The information in this Current Report on Form 8-K is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

 

25


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

ASHLAND GLOBAL HOLDINGS INC.

 

(Registrant)

 

 

April 28, 2020

/s/ J. Kevin Willis

 

J. Kevin Willis

 

Senior Vice President and Chief Financial Officer

 

26