Exhibit 99.1
Ashland Inc. and Consolidated Subsidiaries | |||||||||||||||||||||
Statements of Consolidated Income | |||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||
(In millions except per share data) | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Revenues | |||||||||||||||||||||
Sales and operating revenues | $ | 7,785 | $ | 7,233 | $ | 6,731 | $ | 5,776 | $ | 5,165 | |||||||||||
Equity income | 15 | 11 | 525 | 412 | 292 | ||||||||||||||||
Other income | 34 | 33 | 39 | 26 | 46 | ||||||||||||||||
7,834 | 7,277 | 7,295 | 6,214 | 5,503 | |||||||||||||||||
Costs and expenses | |||||||||||||||||||||
Cost of sales and operating expenses | 6,447 | 6,030 | 5,545 | 4,721 | 4,189 | ||||||||||||||||
Selling, general and administrative expenses | 1,171 | 1,077 | 1,079 | 968 | 1,031 | ||||||||||||||||
7,618 | 7,107 | 6,624 | 5,689 | 5,220 | |||||||||||||||||
Operating income | 216 | 170 | 671 | 525 | 283 | ||||||||||||||||
(Loss) gain on the MAP Transaction (a) | (3 | ) | (5 | ) | 1,284 | - | - | ||||||||||||||
Loss on early retirement of debt | - | - | (145 | ) | - | - | |||||||||||||||
Net interest and other financing income (costs) | 46 | 47 | (82 | ) | (114 | ) | (128 | ) | |||||||||||||
Income from continuing operations before income taxes | 259 | 212 | 1,728 | 411 | 155 | ||||||||||||||||
Income tax (expense) benefit | (58 | ) | (29 | ) | 230 | (100 | ) | (52 | ) | ||||||||||||
Income from continuing operations | 201 | 183 | 1,958 | 311 | 103 | ||||||||||||||||
Income from discontinued operations (net of income taxes) | 29 | 224 | 46 | 67 | (23 | ) | |||||||||||||||
Income before cumulative effect of accounting changes | 230 | 407 | 2,004 | 378 | 80 | ||||||||||||||||
Cumulative effect of accounting changes (net of income taxes) | - | - | - | - | (5 | ) | |||||||||||||||
Net income | $ | 230 | $ | 407 | $ | 2,004 | $ | 378 | $ | 75 | |||||||||||
Earnings per share | |||||||||||||||||||||
Basic | |||||||||||||||||||||
Income from continuing operations | $ | 3.20 | $ | 2.57 | $ | 26.85 | $ | 4.44 | $ | 1.51 | |||||||||||
Income from discontinued operations | .46 | 3.16 | .64 | .97 | (.33 | ) | |||||||||||||||
Cumulative effect of accounting changes | - | - | - | - | (.08 | ) | |||||||||||||||
Net income | $ | 3.66 | $ | 5.73 | $ | 27.49 | $ | 5.41 | $ | 1.10 | |||||||||||
Diluted | |||||||||||||||||||||
Income from continuing operations | $ | 3.15 | $ | 2.53 | $ | 26.23 | $ | 4.36 | $ | 1.50 | |||||||||||
Income from discontinued operations | .45 | 3.11 | .62 | .95 | (.33 | ) | |||||||||||||||
Cumulative effect of accounting changes | - | - | - | - | (.07 | ) | |||||||||||||||
Net income | $ | 3.60 | $ | 5.64 | $ | 26.85 | $ | 5.31 | $ | 1.10 | |||||||||||
(a) | “MAP Transaction” refers to the June 30, 2005 transfer of Ashland’s 38% interest in Marathon Ashland Petroleum LLC (MAP), Ashland's maleic anhydride business and 60 Valvoline Instant Oil Change centers in Michigan and northwest Ohio to Marathon Oil Corporation in a transaction valued at approximately $3.7 billion. |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||||||||||
Consolidated Balance Sheets | ||||||||||||||||||||
September 30 | ||||||||||||||||||||
(In millions) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Assets | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 897 | $ | 1,820 | $ | 985 | $ | 243 | $ | 223 | ||||||||||
Available-for-sale securities | 155 | 349 | 403 | - | - | |||||||||||||||
Accounts receivable | 1,467 | 1,401 | 1,242 | 953 | 804 | |||||||||||||||
Inventories | 610 | 532 | 439 | 383 | 371 | |||||||||||||||
Deferred income taxes | 69 | 93 | 104 | 96 | 125 | |||||||||||||||
Other current assets | 78 | 55 | 22 | 111 | 49 | |||||||||||||||
Current assets of discontinued operations | - | - | 562 | 516 | 513 | |||||||||||||||
3,276 | 4,250 | 3,757 | 2,302 | 2,085 | ||||||||||||||||
Investments and other assets | ||||||||||||||||||||
Investment in Marathon Ashland Petroleum LLC (MAP) | - | - | - | 2,713 | 2,448 | |||||||||||||||
Goodwill and other intangibles | 377 | 310 | 235 | 116 | 109 | |||||||||||||||
Asbestos insurance receivable (noncurrent portion) | 458 | 444 | 370 | 399 | 399 | |||||||||||||||
Deferred income taxes | 157 | 186 | 228 | - | - | |||||||||||||||
Other noncurrent assets | 435 | 450 | 419 | 286 | 252 | |||||||||||||||
Noncurrent assets of discontinued operations | - | - | 976 | 909 | 966 | |||||||||||||||
1,427 | 1,390 | 2,228 | 4,423 | 4,174 | ||||||||||||||||
Property, plant and equipment | ||||||||||||||||||||
Cost | ||||||||||||||||||||
Performance Materials | 701 | 637 | 573 | 613 | 567 | |||||||||||||||
Distribution | 434 | 407 | 378 | 355 | 357 | |||||||||||||||
Valvoline | 488 | 489 | 488 | 466 | 452 | |||||||||||||||
Water Technologies | 272 | 255 | 184 | 167 | 156 | |||||||||||||||
Unallocated and other | 230 | 219 | 207 | 201 | 178 | |||||||||||||||
2,125 | 2,007 | 1,830 | 1,802 | 1,710 | ||||||||||||||||
Accumulated depreciation and amortization | (1,142 | ) | (1,057 | ) | (1,000 | ) | (1,025 | ) | (963 | ) | ||||||||||
983 | 950 | 830 | 777 | 747 | ||||||||||||||||
$ | 5,686 | $ | 6,590 | $ | 6,815 | $ | 7,502 | $ | 7,006 | |||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Debt due within one year | ||||||||||||||||||||
Short-term debt | $ | - | $ | - | $ | - | $ | 40 | $ | - | ||||||||||
Current portion of long-term debt | 5 | 12 | 12 | 399 | 102 | |||||||||||||||
Dividends payable | - | 674 | - | - | - | |||||||||||||||
Trade and other payables | 1,141 | 1,302 | 1,239 | 1,106 | 1,111 | |||||||||||||||
Income taxes | 6 | 53 | 13 | 14 | 11 | |||||||||||||||
Current liabilities of discontinued operations | - | - | 281 | 256 | 260 | |||||||||||||||
1,152 | 2,041 | 1,545 | 1,815 | 1,484 | ||||||||||||||||
Noncurrent liabilities | ||||||||||||||||||||
Long-term debt (less current portion) | 64 | 70 | 82 | 1,109 | 1,512 | |||||||||||||||
Employee benefit obligations | 255 | 313 | 358 | 428 | 385 | |||||||||||||||
Deferred income taxes | - | - | - | 286 | 215 | |||||||||||||||
Asbestos litigation reserve (noncurrent portion) | 560 | 585 | 521 | 568 | 560 | |||||||||||||||
Other noncurrent liabilities and deferred credits | 501 | 485 | 482 | 429 | 449 | |||||||||||||||
Noncurrent liabilities of discontinued operations | - | - | 88 | 161 | 148 | |||||||||||||||
1,380 | 1,453 | 1,531 | 2,981 | 3,269 | ||||||||||||||||
Stockholders’ equity | ||||||||||||||||||||
Common stock | 1 | 1 | 1 | 72 | 68 | |||||||||||||||
Paid-in capital | 16 | 240 | 605 | 478 | 350 | |||||||||||||||
Retained earnings | 3,040 | 2,899 | 3,251 | 2,262 | 1,961 | |||||||||||||||
Accumulated other comprehensive income (loss) | 97 | (44 | ) | (118 | ) | (106 | ) | (126 | ) | |||||||||||
3,154 | 3,096 | 3,739 | 2,706 | 2,253 | ||||||||||||||||
$ | 5,686 | $ | 6,590 | $ | 6,815 | $ | 7,502 | $ | 7,006 |
Statements of Consolidated Cash Flows | |||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||
(In millions) | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Cash flows from operating activities from continuing operations | |||||||||||||||||||||
Net income | $ | 230 | $ | 407 | $ | 2,004 | $ | 378 | $ | 75 | |||||||||||
Results from discontinued operations (net of income taxes) | (29 | ) | (224 | ) | (46 | ) | (67 | ) | 23 | ||||||||||||
Cumulative effect of accounting changes | - | - | - | - | 5 | ||||||||||||||||
Adjustments to reconcile income from continuing operations to cash flows from operating activities | |||||||||||||||||||||
Depreciation and amortization | 133 | 111 | 100 | 98 | 96 | ||||||||||||||||
Deferred income taxes | 22 | (1 | ) | (500 | ) | 104 | 66 | ||||||||||||||
Equity income from affiliates | (15 | ) | (11 | ) | (525 | ) | (412 | ) | (292 | ) | |||||||||||
Distributions from equity affiliates | 10 | 5 | 279 | 152 | 203 | ||||||||||||||||
Loss (gain) on the MAP Transaction | 3 | 5 | (1,284 | ) | - | - | |||||||||||||||
Loss on early retirement of debt | - | - | 145 | - | - | ||||||||||||||||
Change in operating assets and liabilities (a) | (156 | ) | (141 | ) | (232 | ) | (210 | ) | 25 | ||||||||||||
Other items | - | (3 | ) | (5 | ) | - | - | ||||||||||||||
198 | 148 | (64 | ) | 43 | 201 | ||||||||||||||||
Cash flows from financing activities from continuing operations | |||||||||||||||||||||
Proceeds from issuance of common stock | 19 | 18 | 115 | 108 | 2 | ||||||||||||||||
Excess tax benefits related to share-based payments | 9 | 6 | 20 | 3 | - | ||||||||||||||||
Repayment of long-term debt | (13 | ) | (13 | ) | (1,552 | ) | (100 | ) | (216 | ) | |||||||||||
Repurchase of common stock | (288 | ) | (405 | ) | (100 | ) | - | - | |||||||||||||
(Decrease) increase in revolving credit facility | - | - | (40 | ) | 40 | (10 | ) | ||||||||||||||
Cash dividends paid | (743 | ) | (78 | ) | (79 | ) | (77 | ) | (75 | ) | |||||||||||
(1,016 | ) | (472 | ) | (1,636 | ) | (26 | ) | (299 | ) | ||||||||||||
Cash flows from investing activities from continuing operations | |||||||||||||||||||||
Additions to property, plant and equipment | (154 | ) | (175 | ) | (180 | ) | (137 | ) | (65 | ) | |||||||||||
Purchase of operations - net of cash acquired | (75 | ) | (183 | ) | (135 | ) | (5 | ) | - | ||||||||||||
Proceeds from sale of operations | - | - | 3,303 | - | - | ||||||||||||||||
Purchases of available-for-sale securities | (484 | ) | (824 | ) | (402 | ) | - | - | |||||||||||||
Proceeds from sales and maturities of available-for-sale securities | 680 | 876 | 1 | - | - | ||||||||||||||||
Purchase of accounts receivable | - | - | (150 | ) | - | - | |||||||||||||||
Collections of accounts receivable purchased | - | - | 150 | - | - | ||||||||||||||||
Other items | 23 | 20 | 9 | 23 | (5 | ) | |||||||||||||||
(10 | ) | (286 | ) | 2,596 | (119 | ) | (70 | ) | |||||||||||||
Cash (used) provided by continuing operations | (828 | ) | (610 | ) | 896 | (102 | ) | (168 | ) | ||||||||||||
Cash (used) provided by discontinued operations | |||||||||||||||||||||
Operating cash flows | (3 | ) | 197 | 53 | 143 | 41 | |||||||||||||||
Investing cash flows | (92 | ) | 1,248 | (207 | ) | (21 | ) | 260 | |||||||||||||
(Decrease) increase in cash and cash equivalents | (923 | ) | 835 | 742 | 20 | 133 | |||||||||||||||
Cash and cash equivalents - beginning of year | 1,820 | 985 | 243 | 223 | 90 | ||||||||||||||||
Cash and cash equivalents - end of year | $ | 897 | $ | 1,820 | $ | 985 | $ | 243 | $ | 223 | |||||||||||
(Increase) decrease in operating assets (a) | |||||||||||||||||||||
Accounts receivable | $ | (54 | ) | $ | (76 | ) | $ | (291 | ) | $ | (149 | ) | $ | (51 | ) | ||||||
Inventories | (74 | ) | (56 | ) | (72 | ) | (9 | ) | 13 | ||||||||||||
Other current assets | (22 | ) | 21 | 94 | (60 | ) | 31 | ||||||||||||||
Investments and other assets | 90 | (2 | ) | (247 | ) | (15 | ) | 17 | |||||||||||||
Increase (decrease) in operating liabilities (a) | |||||||||||||||||||||
Trade and other payables | (101 | ) | 42 | 106 | (3 | ) | 102 | ||||||||||||||
Other current liabilities | (20 | ) | (90 | ) | (27 | ) | (11 | ) | (45 | ) | |||||||||||
Noncurrent liabilities | 25 | 20 | 205 | 37 | (42 | ) | |||||||||||||||
Change in operating assets and liabilities | $ | (156 | ) | $ | (141 | ) | $ | (232 | ) | $ | (210 | ) | $ | 25 | |||||||
(a) | Excludes changes resulting from operations acquired or sold. |
Ashland Inc. and Consolidated Subsidiaries | |||||||||||||||||||||
Information by Industry Segment | |||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||
(In millions) | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Revenues | |||||||||||||||||||||
Sales and operating revenues | |||||||||||||||||||||
Performance Materials | $ | 1,580 | $ | 1,425 | $ | 1,369 | $ | 1,026 | $ | 875 | |||||||||||
Distribution | 4,031 | 4,070 | 3,810 | 3,199 | 2,810 | ||||||||||||||||
Valvoline | 1,525 | 1,409 | 1,326 | 1,297 | 1,235 | ||||||||||||||||
Water Technologies | 818 | 502 | 394 | 360 | 337 | ||||||||||||||||
Intersegment sales (a) | |||||||||||||||||||||
Performance Materials | (154 | ) | (145 | ) | (143 | ) | (85 | ) | (68 | ) | |||||||||||
Distribution | (12 | ) | (23 | ) | (22 | ) | (19 | ) | (21 | ) | |||||||||||
Valvoline | (1 | ) | (3 | ) | (2 | ) | (1 | ) | (2 | ) | |||||||||||
Water Technologies | (2 | ) | (2 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||||
7,785 | 7,233 | 6,731 | 5,776 | 5,165 | |||||||||||||||||
Equity income | |||||||||||||||||||||
Performance Materials | 10 | 10 | 7 | 7 | 7 | ||||||||||||||||
Valvoline | 4 | 1 | 1 | - | - | ||||||||||||||||
Water Technologies | 1 | - | - | - | - | ||||||||||||||||
Refining and Marketing | - | - | 517 | 405 | 285 | ||||||||||||||||
15 | 11 | 525 | 412 | 292 | |||||||||||||||||
Other income | |||||||||||||||||||||
Performance Materials | 4 | 4 | 17 | 8 | 4 | ||||||||||||||||
Distribution | 3 | 4 | 7 | 9 | 19 | ||||||||||||||||
Valvoline | 8 | 7 | 6 | 4 | 5 | ||||||||||||||||
Water Technologies | 3 | 4 | 4 | 8 | 6 | ||||||||||||||||
Refining and Marketing | - | - | 3 | (6 | ) | 2 | |||||||||||||||
Unallocated and other | 16 | 14 | 2 | 3 | 10 | ||||||||||||||||
34 | 33 | 39 | 26 | 46 | |||||||||||||||||
$ | 7,834 | $ | 7,277 | $ | 7,295 | $ | 6,214 | $ | 5,503 | ||||||||||||
Operating income | |||||||||||||||||||||
Performance Materials | $ | 89 | $ | 112 | $ | 88 | $ | 42 | $ | (1 | ) | ||||||||||
Distribution | 41 | 120 | 99 | 56 | 12 | ||||||||||||||||
Valvoline | 86 | (21 | ) | 59 | 77 | 61 | |||||||||||||||
Water Technologies | 16 | 14 | 11 | 14 | 3 | ||||||||||||||||
Refining and Marketing (b) | - | - | 486 | 383 | 263 | ||||||||||||||||
Unallocated and other | (16 | ) | (55 | ) | (72 | ) | (47 | ) | (55 | ) | |||||||||||
$ | 216 | $ | 170 | $ | 671 | $ | 525 | $ | 283 | ||||||||||||
Depreciation and amortization | |||||||||||||||||||||
Performance Materials | $ | 36 | $ | 31 | $ | 31 | $ | 30 | $ | 30 | |||||||||||
Distribution | 22 | 21 | 18 | 18 | 19 | ||||||||||||||||
Valvoline | 31 | 28 | 27 | 27 | 26 | ||||||||||||||||
Water Technologies | 27 | 17 | 13 | 11 | 10 | ||||||||||||||||
Unallocated and other | 17 | 14 | 11 | 12 | 11 | ||||||||||||||||
$ | 133 | $ | 111 | $ | 100 | $ | 98 | $ | 96 |
(a) | Intersegment sales are accounted for at prices that approximate market value. |
(b) | Includes Ashland's equity income from MAP through June 30, 2005, amortization related to Ashland's excess investment in MAP, and other activities associated with refining and marketing. |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||||||||||||
Information by Industry Segment | ||||||||||||||||||||||
Years Ended September 30 | ||||||||||||||||||||||
(In millions) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||
Assets | ||||||||||||||||||||||
Performance Materials | $ | 997 | $ | 841 | $ | 764 | $ | 640 | $ | 563 | ||||||||||||
Distribution | 1,218 | 1,148 | 1,057 | 922 | 856 | |||||||||||||||||
Valvoline | 751 | 742 | 723 | 658 | 667 | |||||||||||||||||
Water Technologies | 514 | 468 | 233 | 202 | 186 | |||||||||||||||||
Refining and Marketing | - | - | - | 2,742 | 2,484 | |||||||||||||||||
Discontinued operations | - | - | 1,569 | 1,428 | 1,481 | |||||||||||||||||
Unallocated and other (a) | 2,206 | 3,391 | 2,469 | 910 | 769 | |||||||||||||||||
$ | 5,686 | $ | 6,590 | $ | 6,815 | $ | 7,502 | $ | 7,006 | |||||||||||||
Capital employed | ||||||||||||||||||||||
Performance Materials | $ | 682 | $ | 505 | $ | 466 | $ | 373 | $ | 335 | ||||||||||||
Distribution | 672 | 564 | 513 | 449 | 418 | |||||||||||||||||
Valvoline | 501 | 489 | 483 | 388 | 399 | |||||||||||||||||
Water Technologies | 359 | 322 | 146 | 116 | 103 | |||||||||||||||||
Return on investment (b) | ||||||||||||||||||||||
Performance Materials | 9.2 | % | 15.9 | % | 10.8 | % | (c) | 8.0 | % | (0.1 | )% | |||||||||||
Distribution | 4.1 | % | 13.5 | % | 12.0 | % | 7.7 | % | 1.4 | % | ||||||||||||
Valvoline | 10.2 | % | (2.6 | )% | 9.0 | % | (c) | 11.5 | % | 9.9 | % | |||||||||||
Water Technologies | 4.9 | % | 6.4 | % | 7.6 | % | 9.0 | % | 3.5 | % | ||||||||||||
Additions to property, plant and equipment | ||||||||||||||||||||||
Performance Materials | $ | 56 | $ | 58 | $ | 45 | $ | 45 | $ | 23 | ||||||||||||
Distribution | 29 | 36 | 26 | 10 | 5 | |||||||||||||||||
Valvoline | 28 | 38 | 66 | 26 | 18 | |||||||||||||||||
Water Technologies | 24 | 23 | 19 | 17 | 11 | |||||||||||||||||
Unallocated and other | 17 | 20 | 24 | 39 | 8 | |||||||||||||||||
$ | 154 | $ | 175 | $ | 180 | $ | 137 | $ | 65 | |||||||||||||
(a) | Includes cash, cash equivalents and other unallocated assets. |
(b) | Calculated as income from continuing operations divided by average quarterly capital employed. |
(c) | On June 30, 2005, Ashland transferred its 38% interest in Marathon Ashland Petroleum LLC and two other businesses to Marathon Oil Corporation (the "MAP Transaction"). Amounts for 2005 exclude the respective portions of the net gain on the MAP Transaction of $43 million for Performance Materials and $24 million for Valvoline. For further information, see Note C of Notes to Consolidated Financial Statements in Ashland's annual report of Form 10-K for the year ended September 30, 2007. Including these amounts, the return on investment would have been 20.3% for Performance Materials and 14.4% for Valvoline. |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||||||||||
Information by Industry Segment | ||||||||||||||||||||
Years Ended September 30 | ||||||||||||||||||||
(In millions) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Operating information | ||||||||||||||||||||
Performance Materials (a) (b) | ||||||||||||||||||||
Sales per shipping day | $ | 6.1 | $ | 5.7 | $ | 5.4 | $ | 4.0 | $ | 3.5 | ||||||||||
Pounds sold per shipping day | 4.9 | 4.9 | 5.4 | 5.1 | 4.7 | |||||||||||||||
Gross profit as a percent of sales | 20.5 | % | 22.5 | % | 20.4 | % | 20.4 | % | 22.1 | % | ||||||||||
Distribution (a) (b) | ||||||||||||||||||||
Sales per shipping day | $ | 15.9 | $ | 16.2 | $ | 15.1 | $ | 12.6 | $ | 11.2 | ||||||||||
Pounds sold per shipping day | 19.6 | 20.3 | 21.0 | 21.0 | 19.6 | |||||||||||||||
Gross profit as a percent of sales | 7.9 | % | 9.5 | % | 9.7 | % | 9.6 | % | 9.9 | % | ||||||||||
Valvoline (a) (b) | ||||||||||||||||||||
Lubricant sales (gallons) | 167.1 | 168.7 | 175.4 | 191.6 | 193.5 | |||||||||||||||
Premium lubricants (percent of U.S. branded volumes) | 23.3 | % | 23.1 | % | 23.4 | % | 21.5 | % | 18.5 | % | ||||||||||
Gross profit as a percent of sales | 24.8 | % | 19.9 | % | 26.6 | % | 28.2 | % | 27.8 | % | ||||||||||
Water Technologies (a) (b) | ||||||||||||||||||||
Sales per shipping day | $ | 3.1 | $ | 2.0 | $ | 1.6 | $ | 1.4 | $ | 1.3 | ||||||||||
Gross profit as a percent of sales | 39.2 | % | 43.7 | % | 47.8 | % | 49.3 | % | 50.4 | % | ||||||||||
(a) | Sales are defined as sales and operating revenues. Gross profit is defined as sales and operating revenues, less cost of sales and operating expenses. | ||||||||||||||||||
(b) | Excludes amounts resulting from the elimination of the previous one month financial reporting lag for wholly owned entities outside North America, which was recorded during fiscal 2007. | ||||||||||||||||||
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||||||||||
International Operations | ||||||||||||||||||||
Years Ended September 30 | ||||||||||||||||||||
(In millions) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
International assets (a) | ||||||||||||||||||||
Performance Materials | $ | 535 | $ | 463 | $ | 396 | $ | 333 | $ | 269 | ||||||||||
Distribution | 319 | 264 | 216 | 184 | 152 | |||||||||||||||
Valvoline | 186 | 158 | 146 | 132 | 121 | |||||||||||||||
Water Technologies | 312 | 268 | 88 | 83 | 83 | |||||||||||||||
1,352 | 1,153 | 846 | 732 | 625 | ||||||||||||||||
International liabilities (a) | ||||||||||||||||||||
Performance Materials | 148 | 130 | 102 | 94 | 71 | |||||||||||||||
Distribution | 103 | 127 | 94 | 88 | 59 | |||||||||||||||
Valvoline | 51 | 44 | 42 | 54 | 45 | |||||||||||||||
Water Technologies | 109 | 89 | 31 | 34 | 33 | |||||||||||||||
411 | 390 | 269 | 270 | 208 | ||||||||||||||||
Net international investment (a) | ||||||||||||||||||||
Performance Materials | 387 | 333 | 294 | 239 | 198 | |||||||||||||||
Distribution | 216 | 137 | 122 | 96 | 93 | |||||||||||||||
Valvoline | 135 | 114 | 104 | 78 | 76 | |||||||||||||||
Water Technologies | 203 | 179 | 57 | 49 | 50 | |||||||||||||||
$ | 941 | $ | 763 | $ | 577 | $ | 462 | $ | 417 | |||||||||||
International income before income taxes (a) (b) | ||||||||||||||||||||
Performance Materials | $ | 64 | $ | 68 | $ | 64 | $ | 43 | $ | 30 | ||||||||||
Distribution | 6 | 12 | 17 | 14 | 8 | |||||||||||||||
Valvoline | 29 | 19 | 26 | 20 | 16 | |||||||||||||||
Water Technologies | 62 | 41 | 37 | 30 | 24 | |||||||||||||||
$ | 161 | $ | 140 | $ | 144 | $ | 107 | $ | 78 | |||||||||||
International revenues (a) (c) | ||||||||||||||||||||
Performance Materials | $ | 732 | $ | 608 | $ | 601 | $ | 387 | $ | 307 | ||||||||||
Distribution | 846 | 729 | 663 | 537 | 432 | |||||||||||||||
Valvoline | 392 | 310 | 287 | 249 | 208 | |||||||||||||||
Water Technologies | 545 | 309 | 229 | 202 | 178 | |||||||||||||||
$ | 2,515 | $ | 1,956 | $ | 1,780 | $ | 1,375 | $ | 1,125 |
(a) | Excludes amounts resulting from the elimination of the previous one month financial reporting lag for wholly owned entities outside North America, which was recorded during fiscal 2007. |
(b) | Amounts represent income recorded by international subsidiaries, equity and dividend income from international affiliates, and international source royalty and other income recorded by U.S. subsidiaries. Amounts do not reflect intercompany items eliminated in consolidation (e.g., interest) or any allocation of unallocated expenses incurred in the U.S. (e.g., research and development, advertising or administrative expenses) for the benefit of both U.S. and international operations. |
(c) | Includes sales and operating revenues, equity income and other income. |
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||||||||||
International Operations | ||||||||||||||||||||
Years Ended September 30 | ||||||||||||||||||||
(In millions) | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
International assets (a) | ||||||||||||||||||||
Europe | $ | 842 | $ | 715 | $ | 499 | $ | 432 | $ | 372 | ||||||||||
Canada | 205 | 193 | 189 | 164 | 142 | |||||||||||||||
Asia | 168 | 131 | 72 | 58 | 43 | |||||||||||||||
Australia and New Zealand | 64 | 55 | 46 | 48 | 42 | |||||||||||||||
Other | 73 | 59 | 40 | 30 | 26 | |||||||||||||||
1,352 | 1,153 | 846 | 732 | 625 | ||||||||||||||||
International liabilities (a) | ||||||||||||||||||||
Europe | 283 | 287 | 181 | 180 | 138 | |||||||||||||||
Canada | 63 | 48 | 48 | 52 | 40 | |||||||||||||||
Asia | 27 | 22 | 9 | 11 | 10 | |||||||||||||||
Australia and New Zealand | 21 | 19 | 17 | 17 | 11 | |||||||||||||||
Other | 17 | 14 | 14 | 10 | 9 | |||||||||||||||
411 | 390 | 269 | 270 | 208 | ||||||||||||||||
Net international investment (a) | ||||||||||||||||||||
Europe | 559 | 428 | 318 | 252 | 234 | |||||||||||||||
Canada | 142 | 145 | 141 | 112 | 102 | |||||||||||||||
Asia | 141 | 109 | 63 | 47 | 33 | |||||||||||||||
Australia and New Zealand | 43 | 36 | 29 | 31 | 31 | |||||||||||||||
Other | 56 | 45 | 26 | 20 | 17 | |||||||||||||||
$ | 941 | $ | 763 | $ | 577 | $ | 462 | $ | 417 | |||||||||||
International income before income taxes (a) (b) | ||||||||||||||||||||
Europe | $ | 82 | $ | 67 | $ | 61 | $ | 41 | $ | 24 | ||||||||||
Canada | 13 | 29 | 40 | 32 | 25 | |||||||||||||||
Asia | 29 | 18 | 14 | 14 | 13 | |||||||||||||||
Australia and New Zealand | 11 | 6 | 10 | 11 | 8 | |||||||||||||||
Other | 26 | 20 | 19 | 9 | 8 | |||||||||||||||
$ | 161 | $ | 140 | $ | 144 | $ | 107 | $ | 78 | |||||||||||
International revenues (a) (c) | ||||||||||||||||||||
Europe | $ | 1,530 | $ | 1,118 | $ | 999 | $ | 757 | $ | 626 | ||||||||||
Canada | 405 | 421 | 422 | 344 | 292 | |||||||||||||||
Asia | 231 | 143 | 114 | 87 | 70 | |||||||||||||||
Australia and New Zealand | 142 | 107 | 105 | 95 | 75 | |||||||||||||||
Other | 207 | 167 | 140 | 92 | 62 | |||||||||||||||
$ | 2,515 | $ | 1,956 | $ | 1,780 | $ | 1,375 | $ | 1,125 |
(a) | Excludes amounts resulting from the elimination of the previous one month financial reporting lag for wholly owned entities outside North America, which was recorded during fiscal 2007. |
(b) | Amounts represent income recorded by international subsidiaries, equity and dividend income from international affiliates, and international source royalty and other income recorded by U.S. subsidiaries. Amounts do not reflect intercompany items eliminated in consolidation (e.g., interest) or any allocation of unallocated expenses incurred in the U.S. (e.g., research and development, advertising or administrative expenses) for the benefit of both U.S. and international operations. |
(c) | Includes sales and operating revenues, equity income and other income. |