EXHIBIT 99.1
| Ashland Inc. and Consolidated Subsidiaries | |||||||||||||||||||
| Statements of Consolidated Income | |||||||||||||||||||
| Years Ended September 30 | |||||||||||||||||||
| (In millions except per share data) | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
| Sales and operating revenues | $ | 8,381 | $ | 7,785 | $ | 7,233 | $ | 6,731 | $ | 5,776 | |||||||||
| Costs and expenses | |||||||||||||||||||
| Cost of sales and operating expenses | 7,056 | 6,447 | 6,030 | 5,545 | 4,721 | ||||||||||||||
| Selling, general and administrative expenses | 1,166 | 1,171 | 1,077 | 1,079 | 968 | ||||||||||||||
| 8,222 | 7,618 | 7,107 | 6,624 | 5,689 | |||||||||||||||
| Equity and other income | 54 | 49 | 44 | 564 | 438 | ||||||||||||||
| Operating income | 213 | 216 | 170 | 671 | 525 | ||||||||||||||
Gain (loss) on the MAP Transaction (a) | 20 | (3 | ) | (5 | ) | 1,284 | - | ||||||||||||
| Loss on early retirement of debt | - | - | - | (145 | ) | - | |||||||||||||
| Net interest and other financing income (costs) | 28 | 46 | 47 | (82 | ) | (114 | ) | ||||||||||||
| Income from continuing operations before income taxes | 261 | 259 | 212 | 1,728 | 411 | ||||||||||||||
| Income tax (expense) benefit | (86 | ) | (58 | ) | (29 | ) | 230 | (100 | ) | ||||||||||
| Income from continuing operations | 175 | 201 | 183 | 1,958 | 311 | ||||||||||||||
Income (loss) from discontinued operations (net of income taxes) | (8 | ) | 29 | 224 | 46 | 67 | |||||||||||||
| Net income | $ | 167 | $ | 230 | $ | 407 | $ | 2,004 | $ | 378 | |||||||||
| Earnings per share | |||||||||||||||||||
| Basic | |||||||||||||||||||
| Income from continuing operations | $ | 2.78 | $ | 3.20 | $ | 2.57 | $ | 26.85 | $ | 4.44 | |||||||||
| Income (loss) from discontinued operations | (.13 | ) | .46 | 3.16 | .64 | .97 | |||||||||||||
| Net income | $ | 2.65 | $ | 3.66 | $ | 5.73 | $ | 27.49 | $ | 5.41 | |||||||||
| Diluted | |||||||||||||||||||
| Income from continuing operations | $ | 2.76 | $ | 3.15 | $ | 2.53 | $ | 26.23 | $ | 4.36 | |||||||||
| Income (loss) from discontinued operations | (.13 | ) | .45 | 3.11 | .62 | .95 | |||||||||||||
| Net income | $ | 2.63 | $ | 3.60 | $ | 5.64 | $ | 26.85 | $ | 5.31 | |||||||||
| (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) | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
| Assets | |||||||||||||||||||
| Current assets | |||||||||||||||||||
| Cash and cash equivalents | $ | 886 | $ | 897 | $ | 1,820 | $ | 985 | $ | 243 | |||||||||
| Available-for-sale securities | - | 155 | 349 | 403 | - | ||||||||||||||
| Accounts receivable | 1,469 | 1,467 | 1,401 | 1,242 | 953 | ||||||||||||||
| Inventories | 494 | 610 | 532 | 439 | 383 | ||||||||||||||
| Deferred income taxes | 97 | 69 | 93 | 104 | 96 | ||||||||||||||
| Other current assets | 86 | 78 | 55 | 22 | 111 | ||||||||||||||
| Current assets of discontinued operations | - | - | - | 562 | 516 | ||||||||||||||
| 3,032 | 3,276 | 4,250 | 3,757 | 2,302 | |||||||||||||||
| Investments and other assets | |||||||||||||||||||
| Investment in Marathon Ashland Petroleum LLC (MAP) | - | - | - | - | 2,713 | ||||||||||||||
| Auction rate securities | 243 | - | - | - | - | ||||||||||||||
| Goodwill and other intangibles | 408 | 377 | 310 | 235 | 116 | ||||||||||||||
| Asbestos insurance receivable (noncurrent portion) | 428 | 458 | 444 | 370 | 399 | ||||||||||||||
| Deferred income taxes | 154 | 157 | 186 | 228 | - | ||||||||||||||
| Other noncurrent assets | 394 | 435 | 450 | 419 | 286 | ||||||||||||||
| Noncurrent assets of discontinued operations | - | - | - | 976 | 909 | ||||||||||||||
| 1,627 | 1,427 | 1,390 | 2,228 | 4,423 | |||||||||||||||
| Property, plant and equipment | |||||||||||||||||||
| Cost | |||||||||||||||||||
| Performance Materials | 756 | 701 | 637 | 573 | 613 | ||||||||||||||
| Distribution | 436 | 434 | 407 | 378 | 355 | ||||||||||||||
| Valvoline | 502 | 488 | 489 | 488 | 466 | ||||||||||||||
| Water Technologies | 244 | 272 | 255 | 184 | 167 | ||||||||||||||
| Unallocated and other | 359 | 230 | 219 | 207 | 201 | ||||||||||||||
| 2,297 | 2,125 | 2,007 | 1,830 | 1,802 | |||||||||||||||
| Accumulated depreciation and amortization | (1,185 | ) | (1,142 | ) | (1,057 | ) | (1,000 | ) | (1,025 | ) | |||||||||
| 1,112 | 983 | 950 | 830 | 777 | |||||||||||||||
| $ | 5,771 | $ | 5,686 | $ | 6,590 | $ | 6,815 | $ | 7,502 | ||||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current liabilities | |||||||||||||||||||
| Debt due within one year | |||||||||||||||||||
| Short-term debt | $ | - | $ | - | $ | - | $ | - | $ | 40 | |||||||||
| Current portion of long-term debt | 21 | 5 | 12 | 12 | 399 | ||||||||||||||
| Dividends payable | - | - | 674 | - | - | ||||||||||||||
| Trade and other payables | 1,209 | 1,141 | 1,302 | 1,239 | 1,106 | ||||||||||||||
| Income taxes | - | 6 | 53 | 13 | 14 | ||||||||||||||
| Current liabilities of discontinued operations | - | - | - | 281 | 256 | ||||||||||||||
| 1,230 | 1,152 | 2,041 | 1,545 | 1,815 | |||||||||||||||
| Noncurrent liabilities | |||||||||||||||||||
| Long-term debt (noncurrent portion) | 45 | 64 | 70 | 82 | 1,109 | ||||||||||||||
| Employee benefit obligations | 344 | 255 | 313 | 358 | 428 | ||||||||||||||
| Deferred income taxes | - | - | - | - | 286 | ||||||||||||||
| Asbestos litigation reserve (noncurrent portion) | 522 | 560 | 585 | 521 | 568 | ||||||||||||||
| Other noncurrent liabilities | 428 | 501 | 485 | 482 | 429 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - | - | - | 88 | 161 | ||||||||||||||
| 1,339 | 1,380 | 1,453 | 1,531 | 2,981 | |||||||||||||||
| Stockholders’ equity | |||||||||||||||||||
| Common stock | 1 | 1 | 1 | 1 | 72 | ||||||||||||||
| Paid-in capital | 33 | 16 | 240 | 605 | 478 | ||||||||||||||
| Retained earnings | 3,138 | 3,040 | 2,899 | 3,251 | 2,262 | ||||||||||||||
| Accumulated other comprehensive income (loss) | 30 | 97 | (44 | ) | (118 | ) | (106 | ) | |||||||||||
| 3,202 | 3,154 | 3,096 | 3,739 | 2,706 | |||||||||||||||
| $ | 5,771 | $ | 5,686 | $ | 6,590 | $ | 6,815 | $ | 7,502 | ||||||||||
Ashland Inc. and Consolidated Subsidiaries | ||||||||||||||||||||
| Statements of Consolidated Cash Flows | ||||||||||||||||||||
| Years Ended September 30 | ||||||||||||||||||||
| (In millions) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||
| Cash flows from operating activities from continuing operations | ||||||||||||||||||||
| Net income | $ | 167 | $ | 230 | $ | 407 | $ | 2,004 | $ | 378 | ||||||||||
| Loss (income) from discontinued operations (net of income taxes) | 8 | (29 | ) | (224 | ) | (46 | ) | (67 | ) | |||||||||||
| Adjustments to reconcile income from continuing operations | ||||||||||||||||||||
| to cash flows from operating activities | ||||||||||||||||||||
| Depreciation and amortization | 145 | 133 | 111 | 100 | 98 | |||||||||||||||
| Deferred income taxes | 44 | 22 | (1 | ) | (500 | ) | 104 | |||||||||||||
| Equity income from affiliates | (23 | ) | (15 | ) | (11 | ) | (525 | ) | (412 | ) | ||||||||||
| Distributions from equity affiliates | 13 | 10 | 5 | 279 | 152 | |||||||||||||||
| Gain from the sale of property and equipment | (2 | ) | (4 | ) | (1 | ) | (9 | ) | (8 | ) | ||||||||||
| Stock based compensation expense | 12 | 16 | 25 | 25 | 15 | |||||||||||||||
| (Gain) loss on the MAP Transaction | (20 | ) | 3 | 5 | (1,284 | ) | - | |||||||||||||
| Loss on early retirement of debt | - | - | - | 145 | - | |||||||||||||||
| Change in operating assets and liabilities (a) | 134 | (177 | ) | (168 | ) | (260 | ) | (227 | ) | |||||||||||
| Other items | - | - | (3 | ) | (5 | ) | - | |||||||||||||
| 478 | 189 | 145 | (76 | ) | 33 | |||||||||||||||
| Cash flows from investing activities from continuing operations | ||||||||||||||||||||
| Additions to property, plant and equipment | (205 | ) | (154 | ) | (175 | ) | (180 | ) | (137 | ) | ||||||||||
| Proceeds from the disposal of property, plant and equipment | 10 | 27 | 21 | 18 | 31 | |||||||||||||||
| Purchase of operations - net of cash acquired | (129 | ) | (75 | ) | (183 | ) | (135 | ) | (5 | ) | ||||||||||
| Proceeds from sale of operations | 26 | - | - | 3,303 | - | |||||||||||||||
| Purchases of available-for-sale securities | (435 | ) | (484 | ) | (824 | ) | (402 | ) | - | |||||||||||
| Proceeds from sales and maturities of | ||||||||||||||||||||
| available-for-sale securities | 315 | 680 | 876 | 1 | - | |||||||||||||||
| Purchase of accounts receivable | - | - | - | (150 | ) | - | ||||||||||||||
| Collections of accounts receivable purchased | - | - | - | 150 | - | |||||||||||||||
| (418 | ) | (6 | ) | (285 | ) | 2,605 | (111 | ) | ||||||||||||
| Cash flows from financing activities from continuing operations | ||||||||||||||||||||
| Proceeds from the exercise of stock options | 3 | 19 | 18 | 115 | 108 | |||||||||||||||
| Excess tax benefits related to share-based payments | 1 | 9 | 6 | 20 | 3 | |||||||||||||||
| Repayment of long-term debt | (5 | ) | (13 | ) | (13 | ) | (1,552 | ) | (100 | ) | ||||||||||
| Repurchase of common stock | - | (288 | ) | (405 | ) | (100 | ) | - | ||||||||||||
| (Decrease) increase in revolving credit facility | - | - | - | (40 | ) | 40 | ||||||||||||||
| Cash dividends paid | (69 | ) | (743 | ) | (78 | ) | (79 | ) | (77 | ) | ||||||||||
| (70 | ) | (1,016 | ) | (472 | ) | (1,636 | ) | (26 | ) | |||||||||||
| Cash (used) provided by continuing operations | (10 | ) | (833 | ) | (612 | ) | 893 | (104 | ) | |||||||||||
| Cash (used) provided by discontinued operations | ||||||||||||||||||||
| Operating cash flows | (8 | ) | (3 | ) | 197 | 53 | 143 | |||||||||||||
| Investing cash flows | - | (92 | ) | 1,248 | (207 | ) | (21 | ) | ||||||||||||
| (8 | ) | (95 | ) | 1,445 | (154 | ) | 122 | |||||||||||||
| Effect of currency exchange rate changes on cash and cash equivalents | 7 | 5 | 2 | 3 | 2 | |||||||||||||||
| (Decrease) increase in cash and cash equivalents | (11 | ) | (923 | ) | 835 | 742 | 20 | |||||||||||||
| Cash and cash equivalents - beginning of year | 897 | 1,820 | 985 | 243 | 223 | |||||||||||||||
| Cash and cash equivalents - end of year | $ | 886 | $ | 897 | $ | 1,820 | $ | 985 | $ | 243 | ||||||||||
(Increase) decrease in operating assets (a) | ||||||||||||||||||||
| Accounts receivable | $ | 10 | $ | (56 | ) | $ | (77 | ) | $ | (292 | ) | $ | (150 | ) | ||||||
| Inventories | 126 | (75 | ) | (56 | ) | (73 | ) | (9 | ) | |||||||||||
| Other current assets | (53 | ) | (22 | ) | 21 | 94 | (60 | ) | ||||||||||||
| Investments and other assets | 78 | 90 | (2 | ) | (247 | ) | (15 | ) | ||||||||||||
Increase (decrease) in operating liabilities (a) | ||||||||||||||||||||
| Trade and other payables | 57 | (103 | ) | 41 | 105 | (4 | ) | |||||||||||||
| Other current liabilities | (7 | ) | (20 | ) | (90 | ) | (27 | ) | (11 | ) | ||||||||||
| Pension contributions | (25 | ) | (58 | ) | (111 | ) | (121 | ) | (137 | ) | ||||||||||
| Noncurrent liabilities | (52 | ) | 67 | 106 | 301 | 159 | ||||||||||||||
| Change in operating assets and liabilities | $ | 134 | $ | (177 | ) | $ | (168 | ) | $ | (260 | ) | $ | (227 | ) | ||||||
| (a) | Excludes changes resulting from operations acquired or sold. | |||||||||||||||||||
Ashland Inc. and Consolidated Subsidiaries | |||||||||||||||||||||
Information by Industry Segment | |||||||||||||||||||||
Years Ended September 30 | |||||||||||||||||||||
(In millions) | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
| Sales and operating revenues | |||||||||||||||||||||
| Performance Materials | $ | 1,621 | $ | 1,580 | $ | 1,425 | $ | 1,369 | $ | 1,026 | |||||||||||
| Distribution | 4,374 | 4,031 | 4,070 | 3,810 | 3,199 | ||||||||||||||||
| Valvoline | 1,662 | 1,525 | 1,409 | 1,326 | 1,297 | ||||||||||||||||
| Water Technologies | 893 | 818 | 502 | 394 | 360 | ||||||||||||||||
Intersegment sales (a) | |||||||||||||||||||||
| Performance Materials | (151 | ) | (154 | ) | (145 | ) | (143 | ) | (85 | ) | |||||||||||
Distribution | (12 | ) | (12 | ) | (23 | ) | (22 | ) | (19 | ) | |||||||||||
| Valvoline | (6 | ) | (1 | ) | (3 | ) | (2 | ) | (1 | ) | |||||||||||
| Water Technologies | - | (2 | ) | (2 | ) | (1 | ) | (1 | ) | ||||||||||||
| $ | 8,381 | $ | 7,785 | $ | 7,233 | $ | 6,731 | $ | 5,776 | ||||||||||||
| Equity income | |||||||||||||||||||||
| Performance Materials | $ | 16 | $ | 10 | $ | 10 | $ | 7 | $ | 7 | |||||||||||
| Valvoline | 5 | 4 | 1 | 1 | - | ||||||||||||||||
| Water Technologies | 1 | 1 | - | - | - | ||||||||||||||||
| Refining and Marketing | - | - | - | 517 | 405 | ||||||||||||||||
| Unallocated and other | 1 | - | - | - | - | ||||||||||||||||
| 23 | 15 | 11 | 525 | 412 | |||||||||||||||||
| Other income | |||||||||||||||||||||
| Performance Materials | 3 | 4 | 4 | 17 | 8 | ||||||||||||||||
| Distribution | 3 | 3 | 4 | 7 | 9 | ||||||||||||||||
| Valvoline | 7 | 8 | 7 | 6 | 4 | ||||||||||||||||
| Water Technologies | 2 | 3 | 4 | 4 | 8 | ||||||||||||||||
| Refining and Marketing | - | - | - | 3 | (6 | ) | |||||||||||||||
| Unallocated and other | 16 | 16 | 14 | 2 | 3 | ||||||||||||||||
| 31 | 34 | 33 | 39 | 26 | |||||||||||||||||
| $ | 54 | $ | 49 | $ | 44 | $ | 564 | $ | 438 | ||||||||||||
| Operating income | |||||||||||||||||||||
| Performance Materials | $ | 52 | $ | 89 | $ | 112 | $ | 88 | $ | 42 | |||||||||||
| Distribution | 51 | 41 | 120 | 99 | 56 | ||||||||||||||||
| Valvoline | 83 | 86 | (21 | ) | 59 | 77 | |||||||||||||||
| Water Technologies | 10 | 16 | 14 | 11 | 14 | ||||||||||||||||
Refining and Marketing (b) | - | - | - | 486 | 383 | ||||||||||||||||
| Unallocated and other | 17 | (16 | ) | (55 | ) | (72 | ) | (47 | ) | ||||||||||||
| $ | 213 | $ | 216 | $ | 170 | $ | 671 | $ | 525 | ||||||||||||
| Depreciation and amortization | |||||||||||||||||||||
| Performance Materials | $ | 42 | $ | 36 | $ | 31 | $ | 31 | $ | 30 | |||||||||||
| Distribution | 24 | 22 | 21 | 18 | 18 | ||||||||||||||||
| Valvoline | 32 | 31 | 28 | 27 | 27 | ||||||||||||||||
| Water Technologies | 26 | 27 | 17 | 13 | 11 | ||||||||||||||||
| Unallocated and other | 21 | 17 | 14 | 11 | 12 | ||||||||||||||||
| $ | 145 | $ | 133 | $ | 111 | $ | 100 | $ | 98 | ||||||||||||
| (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) | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
| Assets | |||||||||||||||||||
| Performance Materials | $ | 1,080 | $ | 997 | $ | 841 | $ | 764 | $ | 640 | |||||||||
| Distribution | 1,090 | 1,218 | 1,148 | 1,057 | 922 | ||||||||||||||
| Valvoline | 750 | 751 | 742 | 723 | 658 | ||||||||||||||
| Water Technologies | 495 | 514 | 468 | 233 | 202 | ||||||||||||||
| Refining and Marketing | - | - | - | - | 2,742 | ||||||||||||||
| Discontinued operations | - | - | - | 1,569 | 1,428 | ||||||||||||||
Unallocated and other (a) | 2,356 | 2,206 | 3,391 | 2,469 | 910 | ||||||||||||||
| $ | 5,771 | $ | 5,686 | $ | 6,590 | $ | 6,815 | $ | 7,502 | ||||||||||
| Capital employed | |||||||||||||||||||
| Performance Materials | $ | 795 | $ | 682 | $ | 505 | $ | 466 | $ | 373 | |||||||||
| Distribution | 521 | 672 | 564 | 513 | 449 | ||||||||||||||
| Valvoline | 485 | 501 | 489 | 483 | 388 | ||||||||||||||
| Water Technologies | 333 | 359 | 322 | 146 | 116 | ||||||||||||||
| Return on investment (b) | |||||||||||||||||||
| Performance Materials | 4.6 | % | 9.2 | % | 15.9 | % | 10.8 | % | (c) | 8.0 | % | ||||||||
| Distribution | 5.8 | % | 4.1 | % | 13.5 | % | 12.0 | % | 7.7 | % | |||||||||
| Valvoline | 11.7 | % | 10.2 | % | (2.6 | )% | 9.0 | % | (c) | 11.5 | % | ||||||||
| Water Technologies | 1.8 | % | 4.9 | % | 6.4 | % | 7.6 | % | 9.0 | % | |||||||||
| Additions to property, plant and equipment | |||||||||||||||||||
| Performance Materials | $ | 48 | $ | 56 | $ | 58 | $ | 45 | $ | 45 | |||||||||
| Distribution | 27 | 29 | 36 | 26 | 10 | ||||||||||||||
| Valvoline | 42 | 28 | 38 | 66 | 26 | ||||||||||||||
| Water Technologies | 17 | 24 | 23 | 19 | 17 | ||||||||||||||
| Unallocated and other | 71 | 17 | 20 | 24 | 39 | ||||||||||||||
| $ | 205 | $ | 154 | $ | 175 | $ | 180 | $ | 137 | ||||||||||
| (a) | Includes cash, cash equivalents, available-for-sale securities, property and other 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. 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) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||
| Operating information | ||||||||||||||||||||
Performance Materials (a) (b) | ||||||||||||||||||||
| Sales per shipping day | $ | 6.4 | $ | 6.1 | $ | 5.7 | $ | 5.4 | $ | 4.0 | ||||||||||
| Pounds sold per shipping day | 4.9 | 4.9 | 4.9 | 5.4 | 5.1 | |||||||||||||||
| Gross profit as a percent of sales | 17.0 | % | 20.5 | % | 22.5 | % | 20.4 | % | 20.4 | % | ||||||||||
Distribution (a) (b) | ||||||||||||||||||||
| Sales per shipping day | $ | 17.3 | $ | 15.9 | $ | 16.2 | $ | 15.1 | $ | 12.6 | ||||||||||
| Pounds sold per shipping day | 18.8 | 19.6 | 20.3 | 21.0 | 21.0 | |||||||||||||||
| Gross profit as a percent of sales | 7.8 | % | 7.9 | % | 9.5 | % | 9.7 | % | 9.6 | % | ||||||||||
Valvoline (a) (b) | ||||||||||||||||||||
| Lubricant sales (gallons) | 169.2 | 167.1 | 168.7 | 175.4 | 191.6 | |||||||||||||||
| Premium lubricants (percent of U.S. branded volumes) | 24.9 | % | 23.3 | % | 23.1 | % | 23.4 | % | 21.5 | % | ||||||||||
| Gross profit as a percent of sales | 23.0 | % | 24.8 | % | 19.9 | % | 26.6 | % | 28.2 | % | ||||||||||
Water Technologies (a) (b) | ||||||||||||||||||||
| Sales per shipping day | $ | 3.5 | $ | 3.1 | $ | 2.0 | $ | 1.6 | $ | 1.4 | ||||||||||
| Gross profit as a percent of sales | 36.7 | % | 39.2 | % | 43.7 | % | 47.8 | % | 49.3 | % | ||||||||||
| (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) | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
International assets (a) | |||||||||||||||||||
| Performance Materials | $ | 553 | $ | 535 | $ | 463 | $ | 396 | $ | 333 | |||||||||
| Distribution | 265 | 319 | 264 | 216 | 184 | ||||||||||||||
| Valvoline | 186 | 186 | 158 | 146 | 132 | ||||||||||||||
| Water Technologies | 322 | 312 | 268 | 88 | 83 | ||||||||||||||
| 1,326 | 1,352 | 1,153 | 846 | 732 | |||||||||||||||
International liabilities (a) | |||||||||||||||||||
| Performance Materials | 115 | 148 | 130 | 102 | 94 | ||||||||||||||
| Distribution | 120 | 103 | �� | 127 | 94 | 88 | |||||||||||||
| Valvoline | 57 | 51 | 44 | 42 | 54 | ||||||||||||||
| Water Technologies | 96 | 109 | 89 | 31 | 34 | ||||||||||||||
| 388 | 411 | 390 | 269 | 270 | |||||||||||||||
Net international investment (a) | |||||||||||||||||||
| Performance Materials | 438 | 387 | 333 | 294 | 239 | ||||||||||||||
| Distribution | 145 | 216 | 137 | 122 | 96 | ||||||||||||||
| Valvoline | 129 | 135 | 114 | 104 | 78 | ||||||||||||||
| Water Technologies | 226 | 203 | 179 | 57 | 49 | ||||||||||||||
| $ | 938 | $ | 941 | $ | 763 | $ | 577 | $ | 462 | ||||||||||
International income before income taxes (a) (b) | |||||||||||||||||||
| Performance Materials | $ | 68 | $ | 64 | $ | 68 | $ | 64 | $ | 43 | |||||||||
| Distribution | 7 | 6 | 12 | 17 | 14 | ||||||||||||||
| Valvoline | 37 | 29 | 19 | 26 | 20 | ||||||||||||||
| Water Technologies | 61 | 62 | 41 | 37 | 30 | ||||||||||||||
| $ | 173 | $ | 161 | $ | 140 | $ | 144 | $ | 107 | ||||||||||
International revenues (a) (c) | |||||||||||||||||||
| Performance Materials | $ | 861 | $ | 732 | $ | 608 | $ | 601 | $ | 387 | |||||||||
| Distribution | 967 | 846 | 729 | 663 | 537 | ||||||||||||||
| Valvoline | 418 | 392 | 310 | 287 | 249 | ||||||||||||||
| Water Technologies | 661 | 545 | 309 | 229 | 202 | ||||||||||||||
| $ | 2,907 | $ | 2,515 | $ | 1,956 | $ | 1,780 | $ | 1,375 | ||||||||||
| (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) | 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||
International assets (a) | |||||||||||||||||||
| Europe | $ | 779 | $ | 842 | $ | 715 | $ | 499 | $ | 432 | |||||||||
| Canada | 189 | 205 | 193 | 189 | 164 | ||||||||||||||
| Asia | 205 | 168 | 131 | 72 | 58 | ||||||||||||||
| Australia and New Zealand | 59 | 64 | 55 | 46 | 48 | ||||||||||||||
| Other | 94 | 73 | 59 | 40 | 30 | ||||||||||||||
| 1,326 | 1,352 | 1,153 | 846 | 732 | |||||||||||||||
International liabilities (a) | |||||||||||||||||||
| Europe | 252 | 283 | 287 | 181 | 180 | ||||||||||||||
| Canada | 46 | 63 | 48 | 48 | 52 | ||||||||||||||
| Asia | 47 | 27 | 22 | 9 | 11 | ||||||||||||||
| Australia and New Zealand | 23 | 21 | 19 | 17 | 17 | ||||||||||||||
| Other | 20 | 17 | 14 | 14 | 10 | ||||||||||||||
| 388 | 411 | 390 | 269 | 270 | |||||||||||||||
Net international investment (a) | |||||||||||||||||||
| Europe | 527 | 559 | 428 | 318 | 252 | ||||||||||||||
| Canada | 143 | 142 | 145 | 141 | 112 | ||||||||||||||
| Asia | 158 | 141 | 109 | 63 | 47 | ||||||||||||||
| Australia and New Zealand | 36 | 43 | 36 | 29 | 31 | ||||||||||||||
| Other | 74 | 56 | 45 | 26 | 20 | ||||||||||||||
| $ | 938 | $ | 941 | $ | 763 | $ | 577 | $ | 462 | ||||||||||
International income before income taxes (a) (b) | |||||||||||||||||||
| Europe | $ | 69 | $ | 82 | $ | 67 | $ | 61 | $ | 41 | |||||||||
| Canada | 19 | 13 | 29 | 40 | 32 | ||||||||||||||
| Asia | 31 | 29 | 18 | 14 | 14 | ||||||||||||||
| Australia and New Zealand | 17 | 11 | 6 | 10 | 11 | ||||||||||||||
| Other | 37 | 26 | 20 | 19 | 9 | ||||||||||||||
| $ | 173 | $ | 161 | $ | 140 | $ | 144 | $ | 107 | ||||||||||
International revenues (a) (c) | |||||||||||||||||||
| Europe | $ | 1,745 | $ | 1,530 | $ | 1,118 | $ | 999 | $ | 757 | |||||||||
| Canada | 431 | 405 | 421 | 422 | 344 | ||||||||||||||
| Asia | 312 | 231 | 143 | 114 | 87 | ||||||||||||||
| Australia and New Zealand | 159 | 142 | 107 | 105 | 95 | ||||||||||||||
| Other | 260 | 207 | 167 | 140 | 92 | ||||||||||||||
| $ | 2,907 | $ | 2,515 | $ | 1,956 | $ | 1,780 | $ | 1,375 | ||||||||||
| (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. |