Document And Entity Information
Document And Entity Information | 3 Months Ended |
Dec. 31, 2019shares | |
Cover [Abstract] | |
Entity Registrant Name | ASHLAND GLOBAL HOLDINGS INC. |
Entity Central Index Key | 0001674862 |
Current Fiscal Year End Date | --09-30 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity File Number | 333-211719 |
Entity Tax Identification Number | 81-2587835 |
Entity Address, Address Line One | 8145 Blazer Drive |
Entity Address, City or Town | Wilmington |
Entity Address, State or Province | DE |
Entity Address, Postal Zip Code | 19808 |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Document Quarterly Report | true |
Document Transition Report | false |
City Area Code | 302 |
Local Phone Number | 995-3000 |
Entity Common Stock, Shares Outstanding | 60,247,475 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | ASH |
Title of 12(b) Security | Common Stock, par value $.01 per share |
Security Exchange Name | NYSE |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Entity Incorporation, State or Country Code | DE |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Sales | $ 533 | $ 576 |
Cost of sales | 380 | 424 |
Gross profit | 153 | 152 |
Selling, general and administrative expense | 120 | 143 |
Research and development expense | 16 | 17 |
Equity and other income | 0 | 1 |
Operating income (loss) | 17 | (7) |
Net interest and other expense | 10 | 55 |
Other net periodic benefit income | 0 | 18 |
Net income (loss) on divestitures | 3 | (3) |
Income (loss) from continuing operations before income taxes | 10 | (47) |
Income tax expense (benefit) | (24) | 24 |
Income (loss) from continuing operations | 34 | (71) |
Income (loss) from discontinued operations (net of income taxes) | (2) | 23 |
Net income (loss) | $ 32 | $ (48) |
Basic earnings per share - Note M | ||
Income (loss) from continuing operations | $ 0.57 | $ (1.14) |
Income (loss) from discontinued operations | (0.03) | 0.38 |
Net income (loss) | 0.54 | (0.76) |
Diluted earnings per share - Note M | ||
Income (loss) from continuing operations | 0.56 | (1.14) |
Income (loss) from discontinued operations | (0.03) | 0.38 |
Net income (loss) | $ 0.53 | $ (0.76) |
COMPREHENSIVE INCOME (LOSS) | ||
Net income (loss) | $ 32 | $ (48) |
Other comprehensive income (loss), net of tax | ||
Unrealized translation gain (loss) | 38 | (31) |
Pension and postretirement obligation adjustment | 0 | (6) |
Other comprehensive income (loss) | 38 | (37) |
Comprehensive income (loss) | $ 70 | $ (85) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 | |
Current assets | |||
Cash and cash equivalents | $ 157 | $ 232 | |
Accounts receivable | [1] | 441 | 481 |
Inventories - Note F | 633 | 597 | |
Other assets | 53 | 64 | |
Current assets held for sale - Note B | 60 | 59 | |
Total current assets | 1,344 | 1,433 | |
Property, plant and equipment | |||
Cost | 3,155 | 3,165 | |
Accumulated depreciation | 1,580 | 1,588 | |
Net property, plant and equipment | 1,575 | 1,577 | |
Goodwill - Note G | 2,274 | 2,253 | |
Intangibles - Note G | 1,072 | 1,088 | |
Operating lease assets, net - Note I | 157 | ||
Restricted investments - Note E | 314 | 310 | |
Asbestos insurance receivable - Note L | 156 | 157 | |
Deferred income taxes | 23 | 23 | |
Other assets | 411 | 410 | |
Total noncurrent assets | 5,982 | 5,818 | |
Total assets | 7,326 | 7,251 | |
Current liabilities | |||
Short-term debt - Note H | 179 | 166 | |
Trade and other payables | 234 | 313 | |
Accrued expenses and other liabilities | 245 | 271 | |
Current operating lease obligations - Note I | 24 | ||
Current liabilities held for sale - Note B | 6 | 7 | |
Total current liabilities | 688 | 757 | |
Noncurrent liabilities | |||
Long-term debt - Note H | 1,502 | 1,501 | |
Asbestos litigation reserve - Note L | 540 | 555 | |
Deferred income taxes | 250 | 264 | |
Employee benefit obligations - Note K | 152 | 150 | |
Operating lease obligations - Note I | 143 | ||
Other liabilities | 426 | 453 | |
Total noncurrent liabilities | 3,013 | 2,923 | |
Commitments and contingencies - Note L | |||
Stockholders’ equity | 3,625 | 3,571 | |
Total liabilities and stockholders' equity | $ 7,326 | $ 7,251 | |
[1] | Accounts receivable includes an allowance for doubtful accounts of $3 million at both December 31, 2019 and September 30, 2019. |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Current assets | ||
Allowance for doubtful accounts | $ 3 | $ 3 |
STATEMENT OF CONSOLIDATED EQUIT
STATEMENT OF CONSOLIDATED EQUITY (Unaudited) - 3 months ended Dec. 31, 2019 - USD ($) $ in Millions | Total | Common stock [Member] | Paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss) [Member] | [1] | |
Balance at Sep. 30, 2019 | $ 3,571 | $ 1 | $ 756 | $ 3,224 | $ (410) | ||
Total comprehensive income (loss) | |||||||
Net Income | 32 | 32 | |||||
Other comprehensive income | 38 | 38 | |||||
Regular dividends, $0.275 per common share | (17) | (17) | |||||
Common shares issued under stock incentive and other plans | [2] | 1 | 1 | ||||
Balance at Dec. 31, 2019 | $ 3,625 | $ 1 | $ 757 | $ 3,239 | $ (372) | ||
[1] | At December 31, 2019 and September 30, 2019, the after-tax accumulated other comprehensive loss of $372 million and $410 million, respectively, was each comprised of net unrealized translation losses of $370 million and $408 million, respectively, and unrecognized prior service costs of $2 | ||||||
[2] | Common shares issued were 70,461 for the three months ended December 31, 2019. |
STATEMENT OF CONSOLIDATED EQU_2
STATEMENT OF CONSOLIDATED EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Dividend per common share | $ 0.275 | |
Accumulated other comprehensive loss | $ (372) | $ (410) |
Unrecognized prior service costs | 2 | 2 |
Net unrealized translation loss | $ (370) | $ (408) |
Common shares issued (in shares) | 70,461 |
STATEMENTS OF CONDENSED CONSOLI
STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS (unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | |||
Net income (loss) | $ 32 | $ (48) | |
Income (loss) from discontinued operations (net of income taxes) | 2 | (23) | |
Adjustments to reconcile income from continuing operations to cash flows from operating activities | |||
Depreciation and amortization | 61 | 81 | |
Original issue discount and debt issuance costs amortization | 2 | 2 | |
Deferred income taxes | (12) | 3 | |
Stock based compensation expense | 4 | 7 | |
(Income) loss from restricted investments | (13) | 28 | |
Excess tax benefit on stock based compensation | 1 | ||
Net (income) loss on divestitures | 3 | ||
Pension contributions | (1) | (1) | |
Gain on pension and other postretirement plan remeasurements | (18) | ||
Change in operating assets and liabilities | [1] | (109) | (44) |
Total cash flows used by operating activities from continuing operations | (34) | (9) | |
CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES FROM CONTINUING OPERATIONS | |||
Additions to property, plant and equipment | (29) | (33) | |
Proceeds from disposal of property, plant and equipment | 4 | ||
Net purchase of funds restricted for specific transactions | (1) | (2) | |
Reimbursement from restricted investments | 10 | 8 | |
Proceeds from sales of securities | 4 | ||
Purchase of securities | (4) | ||
Proceeds from the settlement of derivative instruments | 1 | ||
Payments for the settlement of derivative instruments | (2) | ||
Total cash flows used by investing activities from continuing operations | (20) | (24) | |
CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS | |||
Repayment of long-term debt | (1) | ||
Proceeds from (repayment of) short-term debt | 14 | (26) | |
Cash dividends paid | (16) | (16) | |
Stock based compensation employee withholding taxes paid in cash | (5) | (7) | |
Total cash flows used by financing activities from continuing operations | (7) | (50) | |
CASH PROVIDED (USED) BY CONTINUING OPERATIONS | (61) | (83) | |
Cash provided (used) by discontinued operations | |||
Operating cash flows | (17) | (58) | |
Investing cash flows | 2 | (2) | |
Total cash used by discontinued operations | (15) | (60) | |
Effect of currency exchange rate changes on cash and cash equivalents | 1 | (2) | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (75) | (145) | |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 232 | 294 | |
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 157 | $ 149 | |
[1] | Excludes changes resulting from operations acquired, sold or held for sale. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Significant Accounting Policies | NOTE A – SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and Securities and Exchange Commission (SEC) regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Additionally, certain prior period data, primarily related to discontinued operations, have been reclassified in the Consolidated Financial Statements and accompanying notes to conform to the current period presentation, as further described in this section. These statements omit certain information and footnote disclosures required for complete annual financial statements and, therefore, should be read in conjunction with Ashland Global Holdings Inc. and consolidated subsidiaries (Ashland) Annual Report on Form 10-K for the fiscal year ended September 30, 2019. Results of operations for the period ended December 31, 2019 are not necessarily indicative of the expected results for the remaining quarters in the fiscal year. On August 30, 2019, Ashland completed the sale of its Composites business (excluding Ashland’s maleic anhydride business (Maleic business)) and its butanediol facility in Marl, Germany (Marl facility). This disposal group represented a strategic shift in Ashland’s business and in accordance with U.S. GAAP, qualified as a discontinued operation. Accordingly, Composites (including the Maleic business) and the Marl facility assets, liabilities, operating results and cash flows for all periods presented have been classified as discontinued operations within the Consolidated Financial Statements. See Notes B and C for additional information on this divestiture. As a result of classifying the Composites reporting segment as a discontinued operation, Ashland is now comprised of two reportable segments: Specialty Ingredients and Intermediates and Solvents. The financial information reported for Intermediates and Solvents excludes the activity from the Marl facility due to the divestiture. Use of estimates, risks and uncertainties The preparation of Ashland’s Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. Significant items that are subject to such estimates and assumptions include, but are not limited to, long-lived assets (including goodwill and other intangible assets), income taxes and liabilities and receivables associated with asbestos litigation and environmental remediation. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ significantly from the estimates under different assumptions or conditions. Ashland’s results are affected by domestic and international economic, political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies and changes in the prices of certain key raw materials, can have a significant effect on operations. While Ashland maintains reserves for anticipated liabilities and carries various levels of insurance, Ashland could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings relating to asbestos, environmental remediation or other matters. New accounting pronouncements A description of new U.S. GAAP accounting standards issued or adopted during the current year is required in interim financial reporting. A detailed listing of new accounting standards relevant to Ashland is included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2019. The following standards relevant to Ashland were either issued or adopted in the current period or will become effective in a subsequent period. Leases Effective October 1, 2019, Ashland adopted new accounting guidance related to lease transactions. The adoption of the new lease guidance resulted in the recognition of right-of-use assets and operating lease liabilities of $174 million as of October 1, 2019. The adoption did not have a material impact on Ashland’s results of operations, cash flows or debt covenants. Results for reporting periods beginning after October 1, 2019 are presented under the new accounting guidance for leases, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting treatment. Ashland elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed it to carry forward the historical lease classification. Ashland determines if an arrangement contains a lease at inception. Ashland recognizes right-of-use assets and liabilities associated with leases based on the present value of the future minimum lease payments over the lease term at the later of the commencement date of the lease or the October 1, 2019 implementation date. Ashland uses its incremental borrowing rate at the recognition date in determining the present value of future payments for leases that do not have a readily determinable implicit rate. Lease terms reflect options to extend or terminate the lease when it is reasonably certain that the option will be exercised. For leases that include residual value guarantees or payments for terminating the lease, Ashland includes these costs in the lease liability when it is probable that we will incur them. Right-of-use assets and obligations for short-term leases (leases with an initial term of 12 months or less) are not recognized in the condensed consolidated balance sheet. Lease expense for short-term leases is recognized on a straight-line basis over the lease term. When contracts contain lease and non-lease components, the Company generally accounted for both components as a single lease component. For additional information, see Note I. Other accounting pronouncements In February 2018, the FASB issued guidance which permits entities to reclassify tax effects stranded in accumulated other comprehensive income (AOCI) as a result of U.S. tax reform legislation to retained earnings. Additionally, this guidance requires entities to disclose whether they made an election to reclassify the tax effects and to disclose their accounting policy for releasing income tax effects from AOCI. This guidance became effective for Ashland on October 1, 2019. Ashland did not elect to reclassify the disproportionate amount in AOCI to retained earnings. Ashland estimated the impact of this guidance to be approximately $3 million. Ashland’s accounting policy for releasing income tax effects from AOCI is under the individual units of account method for items sold, terminated or extinguished from AOCI. In August 2017, the FASB issued accounting guidance amending the existing hedge accounting model to simplify various hedge documentation requirements while also expanding hedging abilities for certain nonfinancial and financial risk components. This guidance became effective for Ashland on October 1, 2019 and had no impact on the Consolidated Financial Statements. In June 2016, the FASB issued amended accounting guidance related to the measurement of credit losses on financial instruments. The amended accounting guidance changes the impairment model for most financial assets to require measurement and recognition of expected credit losses for financial assets held. The amended accounting guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This guidance will become effective for Ashland on October 1, 2020. Ashland is in the process of evaluating the effect this amended accounting guidance will have on our consolidated financial position and results of operations; however, we do not expect the amended accounting guidance to have a material impact to Ashland’s Consolidated Financial Statements. |
Divestitures
Divestitures | 3 Months Ended |
Dec. 31, 2019 | |
Divestitures [Abstract] | |
Divestitures | NOTE B Composites and Marl facility On November 15, 2018, Ashland announced that it had signed a definitive agreement to sell its Composites segment and Intermediates and Solvents Marl facility to INEOS Enterprises in a transaction valued at $1.1 billion. Ashland retained the remaining Intermediates and Solvents facility in Lima, Ohio primarily for its own internal business use. In late July of 2019, Ashland and INEOS agreed to certain additional changes to the sale agreement. As part of the proposed changes, the purchase price was adjusted to $1.015 billion while Ashland retained the right to the Maleic business, including the retention of any subsequent sale proceeds. On August 30, 2019 Ashland completed the sale of its Composites business (excluding the Maleic business) and butanediol manufacturing facility in Marl, Germany to INEOS. Since this disposal group signifies a strategic shift in Ashland’s business and had a major effect on Ashland’s operations and financial results, the operating results and cash flows related to Composites and the Marl facility, including the Maleic business, have been reflected as discontinued operations in the Statements of Consolidated Comprehensive Income (Loss) and Statements of Condensed Consolidated Cash Flows. See Note C of the Notes to Condensed Consolidated Financial Statements for the results of operations for Composites and the Marl facility, including the Maleic business, for all periods presented. Certain indirect corporate costs included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) that were previously allocated to the Composites segment and Marl facility do not qualify for classification within discontinued operations and are now reported as selling, general and administrative expense within continuing operations on a consolidated basis and within the Unallocated and other segment. These costs were zero and $12 million Subsequent to the completion of the sale, Ashland is providing certain transition services to INEOS for a fee. While the transition services are expected to vary in duration depending upon the type of service provided, Ashland expects to reduce costs as the transition services are completed. Ashland recognized transition service fee income of $3 million during the three month period ending December 31, 2019. Held for sale classification The assets and liabilities of the Maleic business, along with other planned corporate asset divestitures as of December 31, 2019 and September 30, 2019 have been reflected as assets and liabilities held for sale. As a result, in accordance with U.S. GAAP standards, depreciation and amortization were not being recorded within the Statements of Consolidated Comprehensive Income (Loss) and the Condensed Consolidated Balance Sheets. These assets and liabilities are comprised of the following components: December 31 September 30 (In millions) 2019 2019 Accounts receivable, net $ 4 $ 5 Inventories 3 3 Net property, plant and equipment 34 34 Goodwill 14 14 Other assets 5 3 Current assets held for sale $ 60 $ 59 Trade and other payables $ 5 $ 6 Accrued expenses and other liabilities 1 1 Current liabilities held for sale $ 6 $ 7 |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | NOTE C– DISCONTINUED OPERATIONS Ashland has divested certain businesses that have qualified as discontinued operations. The operating results from these divested businesses and subsequent adjustments related to ongoing assessments of certain retained liabilities and tax items have been recorded within the discontinued operations caption in the Statements of Consolidated Comprehensive Income (Loss) for all periods presented and are discussed further within this note. As previously described in Note B, Ashland has completed the previously announced sale of its Composites business (excluding the Maleic business) and butanediol manufacturing facility in Marl, Germany to INEOS . Ashland determined that this disposal group qualified as a discontinued operation, in accordance with U.S. GAAP, since it represents a strategic shift for Ashland and had a major effect on Ashland's operations and financial results. Accordingly, the operating results and cash flows for Composites business (including the Maleic business) and the Marl facility have been classified as discontinued operations within the Condensed Consolidated Financial Statements for all periods presented. Components of amounts reflected in the Statements of Consolidated Comprehensive Income (Loss) related to discontinued operations are presented in the following table for the three months ended December 31, 2019 and 2018. Three months ended December 31 (In millions) 2019 2018 Income (loss) from discontinued operations (net of tax) Composites/Marl facility $ — $ 25 Valvoline (1 ) — Water Technologies (1 ) (1 ) Distribution — (1 ) $ (2 ) $ 23 The following table presents a reconciliation of the captions within Ashland's Statements of Consolidated Comprehensive Income (Loss) for the income (loss) from discontinued operations attributable to Composites and the Marl facility for the three months ended December 31, 2019 and 2018. Interest expense was allocated to discontinued operations based on Ashland’s mandatory debt prepayments upon the disposition of Composites and the Marl facility for applicable periods only. Although the Maleic business was not sold to INEOS, this business was operated under the Composites business and Marl facility disposal group and will continue to be reported in discontinued operations. Three months ended December 31 (In millions) 2019 2018 Income (loss) from discontinued operations attributable to Composites/Marl facility Sales $ 12 $ 275 Cost of sales (10 ) (217 ) Selling, general and administrative expense (2 ) (22 ) Research and development expense — (3 ) Equity and other income 2 3 Pretax operating income of discontinued operations 2 36 Net interest and other financing expense — (6 ) Pretax income of discontinued operations 2 30 Income tax expense (2 ) (5 ) Income from discontinued operations $ — $ 25 |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Activities | NOTE D – RESTRUCTURING ACTIVITIES Company-wide restructuring activities Ashland periodically implements company-wide restructuring programs related to acquisitions, divestitures and other cost reduction programs in order to enhance profitability through streamlined operations and an improved overall cost structure. Severance costs During fiscal 2018, Ashland initiated a company-wide cost reduction program as a result of ongoing strategic asset plans and activities. As part of this restructuring program, Ashland announced a voluntary severance offer (VSO) to certain qualifying employees that was formally approved during 2018. Additionally, during fiscal 2018, an involuntary program for employees was also initiated as part of the restructuring program. During the three months ended December 31, 2019 and 2018, these programs resulted in additional severance expense of $1 million and $4 million, respectively, which was primarily recorded within the selling, general and administrative expense caption of the Statement of Consolidated Comprehensive Income (Loss). As of December 31, 2019, the severance reserve for the company-wide restructuring program was $5 million. Facility costs Ashland incurred zero and $7 million of lease abandonment charges during the three months ended December 31, 2019 and 2018, respectively, due to the exit from certain office facilities in conjunction with the company-wide cost reduction program. The costs related to this reserve were recorded within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) and are paid over the remaining lease terms. As of December 31, 2019, the reserve for facility costs was $6 million. The following table details at December 31, 2019, the amount of restructuring reserves related to the programs discussed above, and the related activity in these reserves during the three months ended December 31, 2019. The severance and facility cost reserves were primarily recorded within accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet as of December 31, 2019 and December 31, 2018. (In millions) Severance costs Facility costs Total Balance at of September 30, 2019 7 7 14 Restructuring reserve 1 — 1 Utilization (cash paid) (3 ) (1 ) (4 ) Balance at December 31, 2019 $ 5 $ 6 11 (In millions) Severance costs Facility costs Total Balance at of September 30, 2018 36 7 43 Restructuring reserve 4 7 11 Utilization (cash paid) (8 ) (3 ) (11 ) Balance at December 31, 2018 $ 32 $ 11 43 Other restructuring activities Plant restructuring During the three months ended December 31, 2018, Specialty Ingredients committed to a cost reduction plan within an existing manufacturing facility. As a result, restructuring charges of $27 million were recorded for the three months ended December 31, 2018 primarily within the cost of sales caption of the Statements of Consolidated Comprehensive Income (Loss) consisting of $19 million in accelerated depreciation and amortization, $5 million in severance and $3 million of plant closure costs. As of December 31, 2019, there was no restructuring reserve related to this plant restructuring. Executive transition severance costs During the three months ended December 31, 2019, Ashland incurred severance expense of $3 million attributable to executive management changes within the organization. As of December 31, 2019, the severance reserve associated with this transition was $3 million. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE E – FAIR VALUE MEASUREMENTS As required by U.S. GAAP, Ashland uses applicable guidance for defining fair value, the initial recording and periodic remeasurement of certain assets and liabilities measured at fair value and related disclosures for instruments measured at fair value. Fair value accounting guidance establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). An instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows. Level 1 – Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect Ashland’s own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include Ashland’s own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment. For assets that are measured using quoted prices in active markets (Level 1), the total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs (Level 2) are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability. For all other assets and liabilities for which unobservable inputs are used (Level 3), fair value is derived using fair value models, such as a discounted cash flow model or other standard pricing models that Ashland deems reasonable. The following table summarizes financial instruments subject to recurring fair value measurements as of December 31, 2019. Carrying Total fair Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 157 $ 157 $ 157 $ — $ — Restricted investments (a) 338 338 338 — — Investment of captive insurance company (b) 6 6 6 — — Foreign currency derivatives 1 1 — 1 — Total assets at fair value $ 502 $ 502 $ 501 $ 1 $ — Liabilities Foreign currency derivatives $ 2 $ 2 $ — $ 2 $ — (a) Included in restricted investments is $24 million classified in the other current assets caption on the Condensed Consolidated Balance Sheets. (b) Included in other noncurrent assets in the Condensed Consolidated Balance Sheets. The following table summarizes financial asset instruments subject to recurring fair value measurements as of September 30, 2019 . Carrying Total fair Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 232 $ 232 $ 232 $ — $ — Restricted investments (a) 334 334 334 — — Investment of captive insurance company (b) 5 5 5 — — Foreign currency derivatives 2 2 — 2 — Total assets at fair value $ 573 $ 573 $ 571 $ 2 $ — Liabilities Foreign currency derivatives $ 2 $ 2 $ — $ 2 $ — (a) Included in restricted investments is $24 million classified in the other current assets caption on the Condensed Consolidated Balance Sheets. (b) Included in other noncurrent assets in the Condensed Consolidated Balance Sheets. Restricted investments Investment income and realized gains and losses on these company-restricted investments are reported within the net interest and other expense caption on the Statements of Consolidated Comprehensive Income (Loss). The following table provides a summary of the activity within the investment portfolio as of December 31, 2019 and September 30, 2019: (In millions) December 31 2019 September 30 2019 Original cost $ 335 $ 335 Accumulated adjustments, net (a) (30 ) (47 ) Adjusted cost, beginning of year 305 288 Investment income (b) 4 10 Net unrealized gain (c) 38 29 Realized gains (c) — 32 Settlement funds 1 7 Disbursements (10 ) (32 ) Fair value $ 338 $ 334 (a) The accumulated adjustments include investment income, realized gains, disbursements and settlements recorded in previous periods. (b) Investment income for the demand deposit includes interest income as well as dividend income transferred from the equity and corporate bond mutual funds. (c) Presented under the original cost method. The following table presents gross unrealized gains and losses for the restricted investment securities as of December 31, 2019 and September 30, 2019: Gross Gross (In millions) Adjusted Cost Unrealized Gain Unrealized Loss Fair Value As of December 31, 2019 Demand deposit $ 8 $ — $ — $ 8 Equity mutual fund 120 33 — 153 Corporate bond mutual fund 172 5 — 177 Fair value $ 300 $ 38 $ — $ 338 As of September 30, 2019 Demand deposit $ 9 $ — $ — $ 9 Equity mutual fund 120 24 (2 ) 142 Corporate bond mutual fund 176 7 — 183 Fair value $ 305 $ 31 $ (2 ) $ 334 The following table presents the investment income, net unrealized gains and losses, realized gains and disbursements related to the investments within the portfolio for the three months ended December 31, 2019 and 2018. Three months ended December 31 (In millions) 2019 2018 Investment income $ 4 $ 3 Net gains (losses) realized (a) 9 (30 ) Disbursements (10 ) (8 ) (a) Ashland determined that all unrealized gains and losses were related to equity securities with readily determinable fair values. Due to the new accounting guidance adopted in the first quarter of fiscal 2019, the net unrealized gains (losses) during the three months ended December 31, 2018 and forward were recorded within the net interest and other expense caption in the Statements of Consolidated Comprehensive Income (Loss). Foreign currency derivatives Ashland conducts business in a variety of foreign currencies. Accordingly, Ashland regularly uses foreign currency derivative instruments to manage exposure on certain transactions denominated in foreign currencies to curtail potential earnings volatility effects on certain assets and liabilities, including short-term inter-company loans, denominated in currencies other than Ashland’s functional currency of an entity. These derivative contracts generally require exchange of one foreign currency for another at a fixed rate at a future date and generally have maturities of less than twelve months. All contracts are valued at fair value with net changes in fair value recorded within the selling, general and administrative expense caption. The impacts of these contracts were largely offset by gains and losses resulting from the impact of changes in exchange rates on transactions denominated in non-functional currencies. The following table summarizes the net gains and losses recognized during the three months ended December 31, 2019 and 2018 within the Statements of Consolidated Comprehensive Income (Loss). Three months ended December 31 (In millions) 2019 2018 Foreign currency derivative gains (losses) $ 1 $ 1 The following table summarizes the fair values of the outstanding foreign currency derivatives as of December 31, 2019 and September 30, 2019 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets. December 31 September 30 (In millions) 2019 2019 Foreign currency derivative assets $ 1 $ 2 Notional contract values 160 271 Foreign currency derivative liabilities $ 2 $ 2 Notional contract values 330 168 Other financial instruments At both December 31, 2019 and September 30, 2019, Ashland's long-term debt (including the current portion and excluding debt issuance cost discounts) had a carrying value of |
Inventories
Inventories | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE F – INVENTORIES Inventories are carried at the lower of cost or net realizable value. Inventories are primarily stated at cost using the weighted-average cost method. In addition, certain inventories are valued at cost using the last-in, first-out (LIFO) method. The following table summarizes Ashland’s inventories as of the reported Condensed Consolidated Balance Sheet dates. (In millions) December 31, 2019 September 30, 2019 Finished products $ 443 $ 400 Raw materials, supplies and work in process 190 197 $ 633 $ 597 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | NOTE G – GOODWILL AND OTHER INTANGIBLES Goodwill Ashland reviews goodwill and indefinite-lived intangible assets for impairment annually or when events and circumstances indicate an impairment may have occurred. This annual assessment is performed as of July 1 and consists of Ashland determining each reporting unit’s current fair value compared to its current carrying value. For its July 1, 2019 assessment, Ashland determined that its reporting units for the allocation of goodwill were its two reportable segments: Specialty Ingredients and Intermediates and Solvents. At that time, Ashland determined no additional impairment existed. The following is a progression of goodwill by reportable segment for the three months ended December 31, 2019. Specialty Intermediates (In millions) Ingredients and Solvents (a) Total Balance at September 30, 2019 $ 2,253 $ — $ 2,253 Currency translation 21 — 21 Balance at December 31, 2019 $ 2,274 $ — $ 2,274 (a) As of December 31, 2019 and September 30, 2019, there was accumulated impairment of $90 million related to the Intermediates and Solvents reportable segment. Other intangible assets Intangible assets principally consist of trademarks and trade names, intellectual property and customer and supplier relationships. Intangible assets classified as finite are amortized on a straight-line basis over their estimated useful lives. The cost of trademarks and trade names is amortized principally over 3 to 25 years, intellectual property over 5 to 25 years, and customer and supplier relationships over 3 to 24 years. Ashland annually reviews indefinite-lived intangible assets for possible impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. Intangible assets were comprised of the following as of December 31, 2019 and September 30, 2019. December 31, 2019 Gross Net carrying Accumulated carrying (In millions) amount amortization amount Definite-lived intangibles Trademarks and trade names $ 66 $ (30 ) $ 36 Intellectual property 717 (405 ) 312 Customer and supplier relationships 750 (304 ) 446 Total definite-lived intangibles 1,533 (739 ) 794 Indefinite-lived intangibles Trademarks and trade names 278 — 278 Total intangible assets $ 1,811 $ (739 ) $ 1,072 September 30, 2019 Gross Net carrying Accumulated carrying (In millions) amount amortization amount Definite-lived intangibles Trademarks and trade names $ 66 $ (29 ) $ 37 Intellectual property 712 (391 ) 321 Customer and supplier relationships 744 (292 ) 452 Total definite-lived intangibles 1,522 (712 ) 810 Indefinite-lived intangibles Trademarks and trade names 278 — 278 Total intangible assets $ 1,800 $ (712 ) $ 1,088 Amortization expense recognized on intangible assets was $21 million and $22 million for the three months ended December 31, 2019 and 2018, respectively, and is included in the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss). Estimated amortization expense for future periods is $85 million in 2020 (includes three months actual and nine months estimated), $85 million in 2021, $84 million in 2022, $84 million in 2023 and $70 million in 2024. The amortization expense for future periods is an estimate. Actual amounts may change from such estimated amounts due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions and divestitures, potential impairment, accelerated amortization, or other events. |
Debt
Debt | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | NOTE H – DEBT The following table summarizes Ashland’s current and long-term debt as of the dates reported in the Condensed Consolidated Balance Sheets. (In millions) December 31, 2019 September 30, 2019 4.750% notes, due 2022 $ 1,081 $ 1,080 6.875% notes, due 2043 374 374 Accounts receivable securitizations 157 144 6.50% junior subordinated notes, due 2029 55 54 Other (a) 14 15 Total debt 1,681 1,667 Short-term debt (includes current portion of long-term debt) (179 ) (166 ) Long-term debt (less current portion) $ 1,502 $ 1,501 (a) Includes $11 million and $12 million of debt issuance cost discounts as of December 31, 2019 and September 30, 2019, respectively. Additionally, as December 31, 2019 and September 30, 2019, Other included a European short-term loan facility with an outstanding balance of $22 million for each period. The scheduled aggregate maturities of long-term debt by year (including the current portion and excluding debt issuance costs) are as follows as of December 31, 2019: zero remaining in 2020, zero in 2021, $1,083 million in 2022, zero in 2023 and zero in 2024. See Note R for subsequent events related to Ashland’s debt. Available borrowing capacity The borrowing capacity remaining under the 2017 $800 million Revolving Credit Facility was $766 million due to a reduction of $34 million for letters of credit outstanding as of December 31, 2019. Ashland's total borrowing capacity at December 31, 2019 was $793 million, which included $27 million of available capacity from the two accounts receivable securitization facilities. Covenants related to current Ashland debt agreements Ashland's debt contains usual and customary representations, warranties and affirmative and negative covenants, including financial covenants for leverage and interest coverage ratios, limitations on liens, additional subsidiary indebtedness, restrictions on subsidiary distributions, investments, mergers, sale of assets and restricted payments and other customary limitations. As of December 31, 2019, Ashland is in compliance with all debt agreement covenant restrictions. The maximum consolidated net leverage ratio permitted under Ashland's most recent credit agreement (the 2017 Credit Agreement) is 4.5. At December 31, 2019, Ashland’s calculation of the consolidated net leverage ratio was 2.9. The minimum required consolidated interest coverage ratio under the 2017 Credit Agreement during its entire duration is 3.0. At December 31, 2019, Ashland’s calculation of the interest coverage ratio was 5.9. |
Leasing Arrangements
Leasing Arrangements | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leasing Arrangements | NOTE I – LEASING ARRANGEMENTS Ashland determines if an arrangement is or contains a lease at contract inception and determine its classification as an operating or finance lease at lease commencement. Ashland leases certain office buildings, transportation equipment, warehouses and storage facilities, and equipment. All of Ashland’s leases are operating leases. Real estate leases represent approximately 87% of the total lease liability. Operating lease assets and obligations are reflected within operating lease assets, net, current operating lease obligations, and non-current operating lease obligations captions on the Condensed Consolidated Balance Sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The components of lease cost recognized within our Statements of Consolidated Comprehensive Income (Loss) were as follows: (In millions) Location Three months ended December 31, 2019 Lease cost: Operating lease cost Selling, General & Administrative $ 5 Operating lease cost Cost of Sales 4 Variable lease cost Selling, General & Administrative — Variable lease cost Cost of Sales 1 Short-term leases Selling, General & Administrative — Total operating lease cost $ 10 The following table summarizes Ashland’s lease assets and liabilities as presented in the December 31, 2019 Condensed Consolidated Balance Sheet: (In millions) December 31 2019 Assets Operating lease assets $ 157 Total lease assets 157 Liabilities Current operating lease obligations $ 24 Non-current operating lease obligations 143 Total lease liabilities $ 167 Ashland often has options to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at our sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at our discretion. Ashland evaluates renewal and termination options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for our operating leases as of December 31, 2019 was 16 years. Residual value guarantees are not common within Ashland’s lease agreements nor are restrictions or covenants imposed by leases. Ashland has elected the practical expedient to combine lease and non-lease components. The discount rate implicit within our leases is generally not determinable. Therefore, Ashland determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate is determined using a buildup method resulting in an estimated range of secured borrowing rates matching the lease term and the currency of the jurisdiction in which lease payments are made, adjusted for impacts of collateral. Consideration was given to Ashland’s own relevant debt issuances as well as debt instruments of comparable companies with similar credit characteristics. The weighted average discount rate used to measure our operating lease liabilities as of December 31, 2019 was 2.9%. There are no leases that have not yet commenced but that create significant rights and obligations for Ashland. Right-of-use assets exchanged for new operating lease obligations was less than $1 million for the three months ended December 31, 2019. Cash paid for amounts included in the measurement of operating lease liabilities: (In millions) As of December 31, 2019 Operating cash flows from operating leases $ 9 Maturity Analysis of Lease Liabilities Maturities of lease liabilities are shown below as of December 31, 2019: (In millions) As of December 31, 2019 Remainder of 2020 $ 21 2021 27 2022 34 2023 15 2024 13 Thereafter $ 110 Total lease payments 220 Less amount of lease payment representing interest (53 ) Total present value of lease payments $ 167 As of September 30, 2019, under the previous guidance, the future minimum rental payments are as follows: (In millions) As of September 30, 2019 2020 $ 29 2021 27 2022 34 2023 15 2024 13 Thereafter 110 Total lease payments $ 228 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE J – INCOME TAXES Current fiscal year Ashland’s effective tax rate in any interim period is subject to adjustments related to discrete items and the mix of domestic and foreign operating results. The overall effective tax rate was a benefit of 240% for the three months ended December 31, 2019. The current quarter tax rate was impacted by income mix, as well as $27 million from favorable tax discrete items primarily from the tax benefit related to the Swiss Tax Reform enacted in the current quarter. Prior fiscal year The overall effective tax rate was negative 51% for the three months ended December 31, 2018 and was primarily impacted by income mix, certain nondeductible restructuring costs, as well as, $30 million from unfavorable tax discrete items including the 2017 Tax Cuts and Jobs Act. Unrecognized tax benefits Changes in unrecognized tax benefits are summarized as follows for the three months ended December 31, 2019. (In millions) Balance at October 1, 2019 $ 165 Increases related to positions taken on items from prior years $ 2 Decreases related to positions taken on items from prior years (1 ) Increases related to positions taken in the current year 1 Lapse of statute of limitations (1 ) Balance at December 31, 2019 $ 166 From a combination of statute expirations and audit settlements in the next twelve months, Ashland expects a decrease in the amount accrued for uncertain tax positions of between $1 million and $3 million for continuing operations. It is reasonably possible that there could be other material changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues or the reassessment of existing uncertain tax positions; however, Ashland is not able to estimate the impact of these items at this time. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE K - EMPLOYEE BENEFIT PLANS Plan contributions For the three months ended December 31, 2019, Ashland contributed $1 million to its non-U.S. pension plans and zero to its U.S. pension plans. Ashland expects to make additional contributions of approximately $4 million to its non-U.S. plans during the remainder of 2020. Plan remeasurement Ashland settled a non-U.S. pension plan during the three months ended December 31, 2018, which required the plan to be remeasured. This remeasurement resulted in a curtailment gain of $18 million. Components of net periodic benefit costs (income) The following table details the components of pension and other postretirement benefit costs for continuing operations. Pension benefits Other postretirement benefits (In millions) 2019 2018 2019 2018 Three months ended December 31 Service cost $ 1 $ 2 $ — $ — Interest cost 2 3 1 — Expected return on plan assets (3 ) (3 ) — — Curtailment — (18 ) — — Actuarial (gain) loss — — — — Total net periodic benefit costs $ — $ (16 ) $ 1 $ — For segment reporting purposes, service cost is proportionately allocated to each segment, excluding the Unallocated and other segment, and is recorded within the selling, general and administrative expense and cost of sales captions on the Statements of Consolidated Comprehensive Loss (Income). All other components are recorded within the other net periodic benefit income caption on the Statements of Consolidated Comprehensive Loss (Income). |
Litigation, Claims and Continge
Litigation, Claims and Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation, Claims and Contingencies | NOTE L Asbestos litigation Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation (Riley) and the acquisition of Hercules in November 2008. Although Riley, a former subsidiary, was neither a producer nor a manufacturer of asbestos, its industrial boilers contained some asbestos-containing components provided by other companies. Hercules, an indirect wholly-owned subsidiary of Ashland, has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products sold by one of Hercules’ former subsidiaries to a limited industrial market. To assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs gi ven various assumptions for Ashland and Hercules asbestos claims , Ashland retained Nathan Associates Inc. (Nathan) . The methodology used by Nathan to project future asbestos costs is based largely on recent experience, including claim-filing and settlement rates, disease mix, enacted legislation, open claims and litigation defense. The claim experience of Ashland and Hercules are separately compared to the results of previously conducted third party epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, Nathan estimates a range of the number of future claims that may be filed, as well as the related costs that may be incurred in resolving those claims. Changes in asbestos-related liabilities and receivables are recorded on an after-tax basis within the discontinued operations caption in the Statements of Consolidated Comprehensive Income (Loss). Ashland asbestos-related litigation The claims alleging personal injury caused by exposure to asbestos asserted against Ashland result primarily from indemnification obligations undertaken in 1990 in connection with the sale of Riley. The amount and timing of settlements and number of open claims can fluctuate from period to period. A summary of Ashland asbestos claims activity, excluding Hercules claims, follows. Three months ended December 31 Years ended September 30 (In thousands) 2019 2018 2019 2018 2017 Open claims - beginning of year 53 53 53 54 57 New claims filed — 1 2 2 2 Claims settled — (1 ) (1 ) (1 ) (1 ) Claims dismissed (2 ) — (1 ) (2 ) (4 ) Open claims - end of period 51 53 53 53 54 Ashland asbestos-related liability From the range of estimates, Ashland records the amount it believes to be the best estimate of future payments for litigation defense and claim settlement costs, which generally approximates the mid-point of the estimated range of exposure from model results. Ashland reviews this estimate and related assumptions quarterly and annually updates the results of a non-inflated, non-discounted approximate 50-year model developed with the assistance of Nathan. During the most recent annual update of this estimate completed during the June 2019 quarter, it was determined that the liability for Ashland asbestos-related claims should be increased by $1 million. Total reserves for asbestos claims were $342 million at December 31, 2019 compared to $352 million at September 30, 2019. A progression of activity in the asbestos reserve is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2019 2018 2019 2018 2017 Asbestos reserve - beginning of year $ 352 $ 380 $ 380 $ 419 $ 415 Reserve adjustment — — 1 (8 ) 36 Amounts paid (10 ) (11 ) (29 ) (31 ) (32 ) Asbestos reserve - end of period (a) $ 342 $ 369 $ 352 $ 380 $ 419 (a) Included Ashland asbestos-related receivables Ashland has insurance coverage for certain litigation defense and claim settlement costs incurred in connection with its asbestos claims, and coverage-in-place agreements exist with the insurance companies that provide substantially all of the coverage that will be accessed. For the Ashland asbestos-related obligations, Ashland has estimated the value of probable insurance recoveries associated with its asbestos reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage, including an assumption that all solvent insurance carriers remain solvent. A substantial portion of the estimated receivables from insurance companies are expected to be due from domestic insurers. At December 31, 2019, Ashland’s receivable for recoveries of litigation defense and claim settlement costs from insurers amounted to $122 million (excluding the Hercules receivable for asbestos claims) compared to $123 million at September 30, 2019. During the June 2019 quarter, the annual update of the model used for purposes of valuing the asbestos reserve and its impact on valuation of future recoveries from insurers was completed. This model update resulted in a $5 million decrease in the receivable for probable insurance recoveries. A progression of activity in the Ashland insurance receivable is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2019 2018 2019 2018 2017 Insurance receivable - beginning of year $ 123 $ 140 $ 140 $ 155 $ 151 Receivable adjustment — — (5 ) (5 ) 15 Insurance settlement — — — — (5 ) Amounts collected (1 ) (1 ) (12 ) (10 ) (6 ) Insurance receivable - end of period (a) $ 122 $ 139 $ 123 $ 140 $ 155 (a) Included $15 Hercules asbestos-related litigation Hercules has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products which were sold by one of Hercules’ former subsidiaries to a limited industrial market. The amount and timing of settlements and number of open claims can fluctuate from period to period. A summary of Hercules’ asbestos claims activity follows. Three months ended December 31 Years ended September 30 (In thousands) 2019 2018 2019 2018 2017 Open claims - beginning of year 13 13 13 12 15 New claims filed — — 1 2 1 Claims dismissed — (1 ) (1 ) (1 ) (4 ) Open claims - end of period 13 12 13 13 12 Hercules asbestos-related liability From the range of estimates, Ashland records the amount it believes to be the best estimate of future payments for litigation defense and claim settlement costs, which generally approximates the mid-point of the estimated range of exposure from model results. Ashland reviews this estimate and related assumptions quarterly and annually updates the results of a non-inflated, non-discounted approximate 50-year model developed with the assistance of Nathan. As a result of the most recent annual update of this estimate, completed during the June 2019 quarter, it was determined that the liability for Hercules asbestos-related claims should be decreased by $10 million. Total reserves for asbestos claims were $247 million at December 31, 2019 compared to A progression of activity in the asbestos reserve is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2019 2018 2019 2018 2017 Asbestos reserve - beginning of year $ 252 $ 282 $ 282 $ 323 $ 321 Reserve adjustments — — (10 ) (19 ) 16 Amounts paid (5 ) (6 ) (20 ) (22 ) (14 ) Asbestos reserve - end of period (a) $ 247 $ 276 $ 252 $ 282 $ 323 (a) Included Hercules asbestos-related receivables For the Hercules asbestos-related obligations, certain reimbursement obligations pursuant to coverage-in-place agreements with insurance carriers exist. As a result, any increases in the asbestos reserve have been partially offset by probable insurance recoveries. Ashland has estimated the value of probable insurance recoveries associated with its asbestos reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage, including an assumption that all solvent insurance carriers remain solvent. The estimated receivable consists exclusively of solvent domestic insurers. As of December 31, 2019, Ashland’s receivable for recoveries of litigation defense and claims costs from insurers with respect to Hercules amounted to $49 million. During the June 2019 quarter, the annual update of the model used for purposes of valuing the asbestos reserve and its impact on valuation of future recoveries from insurers was completed. This model update resulted in a decrease of $5 million in the receivable for probable insurance recoveries. A progression of activity in the Hercules insurance receivable is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2019 2018 2019 2018 2017 Insurance receivable - beginning of year $ 49 $ 54 $ 54 $ 68 $ 63 Receivable adjustment — — (5 ) (14 ) 5 Insurance receivable - end of period $ 49 $ 54 $ 49 $ 54 $ 68 Asbestos litigation cost projection Projecting future asbestos costs is subject to numerous variables that are extremely difficult to predict. In addition to the significant uncertainties surrounding the number of claims that might be received, other variables include the type and severity of the disease alleged by each claimant, the long latency period associated with asbestos exposure, mortality rates, dismissal rates, costs of medical treatment, the impact of bankruptcies of other companies that are co-defendants in claims, uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, and the impact of potential changes in legislative or judicial standards. Furthermore, any predictions with respect to these variables are subject to even greater uncertainty as the projection period lengthens. Considering these inherent uncertainties, Ashland believes that the asbestos reserves for Ashland and Hercules represent the best estimate within a range of possible outcomes. As a part of the process to develop these estimates of future asbestos costs, a range of long-term cost models was developed. These models are based on national studies that predict the number of people likely to develop asbestos-related diseases and are heavily influenced by assumptions regarding long-term inflation rates for indemnity payments and legal defense costs, as well as other variables mentioned previously. Ashland has currently estimated in various models ranging from approximately 40 to 50 year periods that it is reasonably possible that total future litigation defense and claim settlement costs on an inflated and undiscounted basis could range as high as approximately $600 million for the Ashland asbestos-related litigation (current reserve of $342 million) and approximately $450 million for the Hercules asbestos-related litigation (current reserve of $247 million), depending on the combination of assumptions selected in the various models. If actual experience is worse than projected, relative to the number of claims filed, the severity of alleged disease associated with those claims or costs incurred to resolve those claims, or actuarial refinement or improvements to the assumptions used within these models are initiated, Ashland may need to further increase the estimates of the costs associated with asbestos claims and these increases could be material over time. Environmental remediation and asset retirement obligations Ashland is subject to various federal, state and local environmental laws and regulations that require environmental assessment or remediation efforts (collectively, environmental remediation) at multiple locations. At December 31, 2019, such locations included 80 waste treatment or disposal sites where Ashland has been identified as a potentially responsible party under Superfund or similar state laws, 113 current and former operating facilities (including certain operating facilities conveyed as part of the MAP Transaction) and about 1,225 service station properties, of which 29 are being actively remediated. Ashland’s reserves for environmental remediation and related environmental litigation amounted to $179 million at December 31, 2019 compared to $186 million at September 30, 2019, of which $137 million at December 31, 2019 and $143 million at September 30, 2019 were classified in other noncurrent liabilities on the Condensed Consolidated Balance Sheets. The remaining reserves were classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. The following table provides a reconciliation of the changes in the environmental remediation reserves during the three months ended December 31, 2019 and 2018. Three months ended December 31 (In millions) 2019 2018 Reserve - beginning of period $ 186 $ 187 Disbursements (9 ) (6 ) Revised obligation estimates and accretion 2 3 Reserve - end of period $ 179 $ 184 The total reserves for environmental remediation reflect Ashland’s estimates of the most likely costs that will be incurred over an extended period to remediate identified conditions for which the costs are reasonably estimable, without regard to any third-party recoveries. Engineering studies, probability techniques, historical experience and other factors are used to identify and evaluate remediation alternatives and their related costs in determining the estimated reserves for environmental remediation. Ashland continues to discount certain environmental sites and regularly adjusts its reserves as environmental remediation continues. Ashland has estimated the value of its probable insurance recoveries associated with its environmental reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage. At December 31, 2019 and September 30, 2019, Ashland’s recorded receivable for these probable insurance recoveries was $12 million and $13 million, Components of environmental remediation expense included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) are presented in the following table for the three months ended December 31, 2019 and 2018. Three months ended December 31 (In millions) 2019 2018 Environmental expense $ 2 $ 3 Accretion — — Legal expense 2 1 Total expense 4 4 Insurance receivable (a) — (1 ) Total expense, net of receivable activity $ 4 $ 3 (a) Activity of $0 denotes value less than $1 million. Environmental remediation reserves are subject to numerous inherent uncertainties that affect Ashland’s ability to estimate its share of the costs. Such uncertainties involve the nature and extent of contamination at each site, the extent of required cleanup efforts under existing environmental regulations, widely varying costs of alternate cleanup methods, changes in environmental regulations, the potential effect of continuing improvements in remediation technology, and the number and financial strength of other potentially responsible parties at multiparty sites. Although it is not possible to predict with certainty the ultimate costs of environmental remediation, Ashland currently estimates that the upper end of the reasonably possible range of future costs for identified sites could be as high as approximately $430 million. The largest reserve for any site is 15% of the remediation reserve. Other legal proceedings and claims In addition to the matters described above, there are other various claims, lawsuits and administrative proceedings pending or threatened against Ashland and its current and former subsidiaries. Such actions are with respect to commercial matters, product liability, toxic tort liability, and other environmental matters, which seek remedies or damages, some of which are for substantial amounts. While Ashland cannot predict with certainty the outcome of such actions, it believes that adequate reserves have been recorded and losses already recognized with respect to such actions were immaterial as of December 31, 2019 and September 30, 2019. There is a reasonable possibility that a loss exceeding amounts already recognized may be incurred related to these actions; however, Ashland believes that such potential losses were immaterial as of December 31, 2019. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE M The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Stock appreciation rights (SARs), stock options and warrants available to purchase shares outstanding for each reporting period whose grant price was greater than the average market price of Ashland Common Stock for each applicable period were not included in the computation of income from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was approximately 2 million and 1 million at December 31, 2019 and 2018, respectively. Earnings per share is reported under the treasury stock method. Three months ended December 31 (In millions, except per share data) 2019 2018 Numerator Numerator for basic and diluted EPS - Income (loss) from continuing operations $ 34 $ (71 ) Denominator Denominator for basic EPS - Weighted- average common shares outstanding 60 63 Share based awards convertible to common shares (a) 1 — Denominator for diluted EPS - Adjusted weighted- average shares and assumed conversions 61 63 EPS from continuing operations Basic $ 0.57 $ (1.14 ) Diluted 0.56 (1.14 ) (a) As a result of the loss from continuing operations attributable to Ashland during the three months ended December 31, 2018, the effect of the share-based awards convertible to common shares would be antidilutive. In accordance with U.S. GAAP, they have been excluded from the diluted EPS calculation. |
Equity Items
Equity Items | 3 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity Items | NOTE N Stockholder dividends In May 2019, the Board of Directors of Ashland announced a quarterly cash dividend of 27.5 cents per share to eligible stockholders at record, which represented an increase from previous quarterly cash dividend of 25.0 cents per share. This dividend was paid in the third and fourth quarter of fiscal 2019 and the first quarter of fiscal 2020. Accumulated other comprehensive income (loss) Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented below, before tax and net of tax effects. 2019 2018 (In millions) Before tax Tax (expense) benefit Net of tax Before tax Tax (expense) benefit Net of tax Three months ended December 31 Other comprehensive income (loss) Unrealized translation gain (loss) $ 38 $ — $ 38 $ (31 ) $ — $ (31 ) Pension and postretirement obligation adjustment: Adjustment of unrecognized prior service costs — — — (7 ) 1 (6 ) Total other comprehensive income (loss) $ 38 $ — $ 38 $ (38 ) $ 1 $ (37 ) Summary of stockholders’ equity A reconciliation of changes in stockholders’ equity are as follows: Three months ended December 31 (In millions) 2019 2018 Common stock and paid in capital Balance, beginning of period $ 757 $ 947 Common shares issued under stock incentive and other plans (a) 1 1 Balance, end of period 758 948 Retained earnings Balance, beginning of period 3,224 2,750 Adoption of new accounting pronouncements (b) — 33 Net income (loss) 32 (48 ) Regular dividends (17 ) (16 ) Balance, end of period 3,239 2,719 Accumulated other comprehensive income (loss) Balance, beginning of period (410 ) (291 ) Adoption of new accounting pronouncements (b) — (34 ) Unrealized translation gain (loss) 38 (31 ) Pension and postretirement obligation adjustment — (6 ) Net change in investment securities — — Balance, end of period (372 ) (362 ) Total stockholders' equity $ 3,625 $ 3,305 Cash dividends declared per common share 0.275 0.250 (a) Common shares issued were 70,461 shares and 140,614 shares for the three months ended December 31, 2019 and 2018, respectively. (b) Represents the cumulative-effect adjustment related to the adoption of the new guidance related to the accounting for equity securities and tax effects of intercompany transfers during fiscal 2019. |
Stock Incentive Plans
Stock Incentive Plans | 3 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Incentive Plans | NOTE O – STOCK INCENTIVE PLANS Ashland has stock incentive plans under which key employees or directors are granted stock appreciation rights (SARs), performance awards or nonvested stock awards. Each program is typically a long-term incentive plan designed to link employee compensation with increased shareholder value or reward superior performance and encourage continued employment with Ashland. Ashland recognizes compensation expense for the grant date fair value of stock-based awards over the applicable vesting period. The components of Ashland’s pre-tax stock-based compensation expense included in continuing operations are as follows: Three months ended December 31 (In millions) 2019 (a) 2018 (b) SARs $ 2 $ 2 Nonvested stock awards 2 4 Performance share awards 1 — $ 5 $ 6 (a) Included $1 million of expense related to cash-settled nonvested restricted stock awards and zero (b) Included $1 million of expense related to cash-settled nonvested restricted stock awards and $2 million of income related to cash-settled performance units during the three months ended December 31, 2018. SARs SARs are granted to employees or directors at a price equal to the fair market value of the stock on the date of grant and typically become exercisable over periods of one to three years. Unexercised SARs generally lapse ten years after the date of grant. SARs granted for the three months ended December 31, 2019 and 2018 were 231 thousand and 300 thousand, respectively. As of December 31, 2019, there was $7 million of total unrecognized compensation costs related to SARs. That cost is expected to be recognized over a weighted-average period of 2.2 years. Ashland estimates the fair value of SARs granted using the Black-Scholes option-pricing model. This model requires several assumptions, which Ashland has developed and updates based on historical trends and current market observations. The accuracy of these assumptions is critical to the estimate of fair value for these equity instruments. Nonvested stock awards Nonvested stock awards are granted to employees or directors at a price equal to the fair market value of the stock on the date of grant and generally vest over a one-to- three-year Stock-settled nonvested stock awards Nonvested stock awards granted in the form of shares were 86 thousand and 81 thousand for the three months ended December 31, 2019 and 2018, respectively. As of December 31, 2019, there was $10 million of total unrecognized compensation costs related to these nonvested stock awards. That cost is expected to be recognized over a weighted-average period of 2.1 years. Cash-settled nonvested stock awards Certain nonvested stock awards are granted to employees and are settled in cash upon vesting. As of December 31, 2019, 92 thousand cash-settled nonvested stock awards were outstanding. The value of these cash-settled nonvested stock awards changes in connection with changes in the fair market value of the Ashland Common Stock. These awards generally vest over a period of three years. The expense recognized related to cash-settled nonvested stock awards was $1 million and $1 million during the three months ended December 31, 2019 and 2018, respectively. Executive performance incentive and retention program During 2016, certain executives were granted performance-based restricted shares of Ashland in order to provide an incentive to remain employed in the period after the full separation of Ashland and Valvoline. At December 31, 2019, all shares outstanding in connection with these awards were paid. The expense recognition for these awards commenced upon completing the full separation of Valvoline which occurred on May 12, 2017 and resulted in zero Performance awards Ashland sponsors a long-term incentive plan that awards performance shares/units to certain key employees that are partially tied to Ashland’s overall financial performance relative to internal targets. Additionally, certain outstanding performance awards are tied to Ashland's overall financial performance relative to the financial performance of selected industry peer groups. Awards are granted annually, with each award covering a three-year The performance measure used to determine the actual number of performance shares/units issuable upon vesting is the financial performance of Ashland compared to award targets. The financial performance award metric is considered a performance condition under applicable U.S. GAAP. Additionally, the actual number of performance shares/units issuable upon vesting for some grants can be potentially increased or decreased based on a TSR performance modifier relative to peers of Ashland. For awards granted in fiscal 2018, 2019 and 2020, each performance share/unit is convertible to one share of Ashland Common Stock. Nonvested performance shares/units do not entitle employees to vote the shares or to receive any dividends thereon. Performance shares/units granted for the three months ended December 31, 2019 and 2018 were 51 thousand and 78 thousand, respectively. As of December 31, 2019, there was $8 million of total unrecognized compensation costs related to performance shares/units. That cost is expected to be recognized over a weighted-average period of 2.5 years. |
Revenue
Revenue | 3 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | NOTE P – REVENUE Revenue recognition Ashland’s revenue is measured as the amount of consideration it expects to receive in exchange for transferring goods or providing services and is recognized when performance obligations are satisfied under the terms of contracts with customers. Ashland generally utilizes standardized language for the terms of contracts, unless a separate agreement has been entered into with a customer that supersedes the standard language. A performance obligation is deemed to be satisfied by Ashland when control of the product or service is transferred to the customer. The transaction price of a contract, or the amount Ashland expects to receive upon satisfaction of all performance obligations, is determined by reference to the contract’s terms and includes adjustments, if applicable, for any variable consideration, such as volume discounts, rebates, refunds and right to return. Where a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on the standalone selling price of each performance obligation, although these situations do not occur frequently and are generally not included within Ashland’s contracts. Any unsatisfied performance obligations are not material. Standalone selling prices are based on prices Ashland charges to customers, which in some cases is based on established market prices. Ashland generally collects the cash from its customers within 60 days of the product delivery date. Sales and other similar taxes collected from customers on behalf of third parties are excluded from the contract price. All of Ashland’s revenue is derived from contracts with customers, and nearly all contracts with customers contain one performance obligation for the transfer of goods where such performance obligation is satisfied at a point in time. Control of a product is deemed to be transferred to the customer generally upon shipment or delivery. Costs for shipping and handling activities, whether performed before or after the customer obtains control of the goods, are accounted for as fulfillment costs when not reimbursed. Costs incurred to obtain contracts with customers have historically not been significant and are expensed immediately as the amortization period is generally one year or less. Ashland record s bad debt expense in specific situations when it is determine d that the customer is unable to meet its financial obligation. Trade receivables Trade receivables are defined as receivables arising from contracts with customers and are recorded within the accounts receivable caption within the Condensed Consolidated Balance Sheets. Ashland’s trade receivables were $409 million and $435 million as of December 31, 2019 and September 30, 2019, respectively. Disaggregation of revenue Ashland disaggregates its revenue from contracts with customers by segment, geographical region and product category, as Ashland believes these categories best depict how management reviews the financial performance of its operations. See the following tables for details: Sales by geography for the three months ended December 31 (In millions) Specialty Ingredients Intermediates and Solvents Geography 2019 2018 2019 2018 North America $ 198 $ 219 $ 15 $ 11 Europe 161 170 5 5 Asia Pacific 103 116 7 6 Latin America & other 43 48 1 1 $ 505 $ 553 $ 28 $ 23 Sales by product category for the three months ended December 31 (In millions) 2019 2018 Specialty Ingredients Cellulosics $ 178 $ 189 Poly-vinyl pyrrolidones 93 95 Adhesives 74 82 Actives 37 37 Vinyl ethers 20 24 Pharmachem 40 59 Other (a) 63 67 $ 505 $ 553 Intermediates and Solvents Derivatives $ 23 $ 20 Butanediol 5 3 $ 28 $ 23 (a) Other includes no product category in excess of 10% of sales. |
Reportable Segment Information
Reportable Segment Information | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | NOTE Q – REPORTABLE SEGMENT INFORMATION Ashland determines its reportable segments based on how operations are managed internally for the products and services sold to customers, including how the results are reviewed by the chief operating decision maker, which includes determining resource allocation methodologies used for reportable segments. Operating income is the primary measure on the Statements of Consolidated Comprehensive Income (Loss) that is reviewed by the chief operating decision maker in assessing each reportable segment's financial performance. Ashland does not aggregate operating segments to arrive at these reportable segments. Change in Reportable Segments Ashland’s reportable segments were impacted during fiscal year 2019 due to the disposal of the Composites reportable segment and Intermediates and Solvents Marl facility and reclassification to discontinued operations. As a result, Ashland’s operations are managed by the chief operating decision maker within the following two reportable segments: Specialty Ingredients and Intermediates and Solvents. Reportable segment business descriptions Specialty Ingredients offers industry-leading products, technologies and resources for solving formulation and product-performance challenges. Using natural, synthetic and semisynthetic polymers derived from cellulose ethers, vinyl pyrrolidones, acrylic polymers, polyester and polyurethane-based adhesives, and plant and seed extract, Specialty Ingredients offers comprehensive and innovative solutions for consumer and industrial applications. Key customers include pharmaceutical companies; makers of personal care products, food and beverages; makers of nutraceuticals and supplements; manufacturers of paint, coatings and construction materials; packaging and converting; and oilfield service companies. Intermediates and Solvents is a leading producer of 1,4 butanediol and related derivatives, including tetrahydrofuran and n-methylpyrrolidone. These products are used as chemical intermediates in the production of engineering polymers and polyurethanes, and as specialty process solvents in a wide array of applications including electronics, pharmaceuticals, water filtration membranes and more. Butanediol is also supplied to Ashland’s Specialty Ingredients business for use as a raw material. On August 30, 2019, Ashland completed the sale if its Composites segment (excluding the Maleic business) and Intermediates and Solvents Marl facility. As a result, the financial information for Intermediates and Solvents excludes the activity from the Marl facility due to the divestiture and have been restated in prior periods Unallocated and Other generally includes items such as certain significant company-wide restructuring activities, including internal separation costs, and legacy costs or adjustments that relate to divested businesses that are no longer operated by Ashland. Reportable segment results Results of Ashland’s reportable segments are presented based on its management and internal accounting structure. The structure is specific to Ashland; therefore, the financial results of Ashland’s reportable segments are not necessarily comparable with similar information for other comparable companies. Ashland allocates all significant costs to its reportable segments except for certain significant company-wide restructuring activities and other costs or adjustments that relate to former businesses that Ashland no longer operates. The service cost component of pension and other postretirement benefits costs is allocated to each reportable segment on a ratable basis; while the remaining components of pension and other postretirement benefits costs are recorded within the other net periodic benefit income caption on the Statements of Consolidated Comprehensive Income (Loss). Ashland refines its expense allocation methodologies to the reportable segments from time to time as internal accounting practices are improved, more refined information becomes available and the industry or market changes. Significant revisions to Ashland’s methodologies are adjusted for all segments on a retrospective basis. The following table presents various financial information for each reportable segment for the three months ended December 31, 2019 and 2018. Three months ended December 31 (In millions - unaudited) 2019 2018 SALES Specialty Ingredients $ 505 $ 553 Intermediates and Solvents 28 23 $ 533 $ 576 OPERATING INCOME (LOSS) Specialty Ingredients $ 44 $ 26 Intermediates and Solvents (12 ) — Unallocated and other (15 ) (33 ) $ 17 $ (7 ) |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE R – SUBSEQUENT EVENTS Credit Agreements and Refinancing During January 2020, Ashland LLC and Ashland Services B.V., indirect wholly owned subsidiaries of Ashland, entered into a new senior unsecured credit agreement (the 2020 Credit Agreement) with a group of lenders, replacing the 2017 Credit Agreement. The 2020 Credit Agreement provides for (i) a $600 million unsecured five-year five-year The agreement contains financial covenants for leverage and interest coverage ratios akin to those in effect under the 2017 Credit Agreement. The maximum net leverage ratio permitted under the 2020 Credit Agreement is 4.0. The minimum required consolidated interest coverage ratio under the 2020 Credit Agreement is 3.0. The Credit Agreement contains usual and customary representations, warranties and affirmative and negative covenants, including financial covenants for leverage and interest coverage ratios, limitations on liens, additional indebtedness, further negative pledges, investments, mergers, sale of assets and restricted payments, and other customary limitations. Note Issuance During January 2020, Ashland Services B.V. completed the issuance of 2.00% senior unsecured notes due 2028 with an aggregate principal amount of €500 million (the 2028 Notes). The notes are senior unsecured obligations of Ashland Services B.V and initially guaranteed on an unsecured basis by each of Ashland Global Holdings Inc. and Ashland LLC. Ashland used the net proceeds of the offering (after deducting initial purchasers’ discounts and other fees and expenses), together with the proceeds of the new term loan facility and other funds of Ashland LLC or its subsidiaries, to purchase the existing notes described below in cash tender offers, and to pay fees and expenses associated therewith. Existing Notes Tender Proceeds from the new senior unsecured notes, together with the proceeds of the unsecured delayed draw term loan facility and other funds, were used to fund a cash tender offers for Ashland LLC’s 4.750% Senior Notes due 2022 (the 2022 Notes), Ashland LLC’s 6.875% Senior Notes due 2043 (the 2043 Notes), Hercules LLC’s 6.600% Debentures due 2027 (the 2027 Debentures), and Hercules LLC’s 6.500% Junior Subordinated Debentures due 2029 (the 2029 Junior Debentures), and to pay associated fees and expenses. In January, Ashland exercised its early settlement of the tender offers resulting in $671 million principal amount of 2022 Notes being tendered for an aggregate purchase price of up to $712 million, $92 million principal amount of 2043 Notes being tendered, less than $1 million principal amount of 2027 Debentures being tendered and $3 million principal amount of 2029 Junior Debentures being tendered. The aggregate purchase price for the 2043 Notes, 2027 Debentures and 2029 Junior Debentures was up to $113 million. In connection with the tender, Ashland expects to recognize greater than $60 million in expense related to accelerated amortization of debt issuance costs, accelerated accretion on debt discounts and premiums, and bond tender premiums. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and Securities and Exchange Commission (SEC) regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Additionally, certain prior period data, primarily related to discontinued operations, have been reclassified in the Consolidated Financial Statements and accompanying notes to conform to the current period presentation, as further described in this section. These statements omit certain information and footnote disclosures required for complete annual financial statements and, therefore, should be read in conjunction with Ashland Global Holdings Inc. and consolidated subsidiaries (Ashland) Annual Report on Form 10-K for the fiscal year ended September 30, 2019. Results of operations for the period ended December 31, 2019 are not necessarily indicative of the expected results for the remaining quarters in the fiscal year. On August 30, 2019, Ashland completed the sale of its Composites business (excluding Ashland’s maleic anhydride business (Maleic business)) and its butanediol facility in Marl, Germany (Marl facility). This disposal group represented a strategic shift in Ashland’s business and in accordance with U.S. GAAP, qualified as a discontinued operation. Accordingly, Composites (including the Maleic business) and the Marl facility assets, liabilities, operating results and cash flows for all periods presented have been classified as discontinued operations within the Consolidated Financial Statements. See Notes B and C for additional information on this divestiture. As a result of classifying the Composites reporting segment as a discontinued operation, Ashland is now comprised of two reportable segments: Specialty Ingredients and Intermediates and Solvents. The financial information reported for Intermediates and Solvents excludes the activity from the Marl facility due to the divestiture. |
Use of Estimates, Risk and Uncertainties | Use of estimates, risks and uncertainties The preparation of Ashland’s Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. Significant items that are subject to such estimates and assumptions include, but are not limited to, long-lived assets (including goodwill and other intangible assets), income taxes and liabilities and receivables associated with asbestos litigation and environmental remediation. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ significantly from the estimates under different assumptions or conditions. Ashland’s results are affected by domestic and international economic, political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies and changes in the prices of certain key raw materials, can have a significant effect on operations. While Ashland maintains reserves for anticipated liabilities and carries various levels of insurance, Ashland could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings relating to asbestos, environmental remediation or other matters. |
New Accounting Pronouncements | New accounting pronouncements A description of new U.S. GAAP accounting standards issued or adopted during the current year is required in interim financial reporting. A detailed listing of new accounting standards relevant to Ashland is included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2019. The following standards relevant to Ashland were either issued or adopted in the current period or will become effective in a subsequent period. Leases Effective October 1, 2019, Ashland adopted new accounting guidance related to lease transactions. The adoption of the new lease guidance resulted in the recognition of right-of-use assets and operating lease liabilities of $174 million as of October 1, 2019. The adoption did not have a material impact on Ashland’s results of operations, cash flows or debt covenants. Results for reporting periods beginning after October 1, 2019 are presented under the new accounting guidance for leases, while prior period amounts have not been adjusted and continue to be reported in accordance with our historical accounting treatment. Ashland elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed it to carry forward the historical lease classification. Ashland determines if an arrangement contains a lease at inception. Ashland recognizes right-of-use assets and liabilities associated with leases based on the present value of the future minimum lease payments over the lease term at the later of the commencement date of the lease or the October 1, 2019 implementation date. Ashland uses its incremental borrowing rate at the recognition date in determining the present value of future payments for leases that do not have a readily determinable implicit rate. Lease terms reflect options to extend or terminate the lease when it is reasonably certain that the option will be exercised. For leases that include residual value guarantees or payments for terminating the lease, Ashland includes these costs in the lease liability when it is probable that we will incur them. Right-of-use assets and obligations for short-term leases (leases with an initial term of 12 months or less) are not recognized in the condensed consolidated balance sheet. Lease expense for short-term leases is recognized on a straight-line basis over the lease term. When contracts contain lease and non-lease components, the Company generally accounted for both components as a single lease component. For additional information, see Note I. Other accounting pronouncements In February 2018, the FASB issued guidance which permits entities to reclassify tax effects stranded in accumulated other comprehensive income (AOCI) as a result of U.S. tax reform legislation to retained earnings. Additionally, this guidance requires entities to disclose whether they made an election to reclassify the tax effects and to disclose their accounting policy for releasing income tax effects from AOCI. This guidance became effective for Ashland on October 1, 2019. Ashland did not elect to reclassify the disproportionate amount in AOCI to retained earnings. Ashland estimated the impact of this guidance to be approximately $3 million. Ashland’s accounting policy for releasing income tax effects from AOCI is under the individual units of account method for items sold, terminated or extinguished from AOCI. In August 2017, the FASB issued accounting guidance amending the existing hedge accounting model to simplify various hedge documentation requirements while also expanding hedging abilities for certain nonfinancial and financial risk components. This guidance became effective for Ashland on October 1, 2019 and had no impact on the Consolidated Financial Statements. In June 2016, the FASB issued amended accounting guidance related to the measurement of credit losses on financial instruments. The amended accounting guidance changes the impairment model for most financial assets to require measurement and recognition of expected credit losses for financial assets held. The amended accounting guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This guidance will become effective for Ashland on October 1, 2020. Ashland is in the process of evaluating the effect this amended accounting guidance will have on our consolidated financial position and results of operations; however, we do not expect the amended accounting guidance to have a material impact to Ashland’s Consolidated Financial Statements. |
Fair Value of Financial Instruments Policy | As required by U.S. GAAP, Ashland uses applicable guidance for defining fair value, the initial recording and periodic remeasurement of certain assets and liabilities measured at fair value and related disclosures for instruments measured at fair value. Fair value accounting guidance establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). An instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows. Level 1 – Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect Ashland’s own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include Ashland’s own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment. For assets that are measured using quoted prices in active markets (Level 1), the total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs (Level 2) are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability. For all other assets and liabilities for which unobservable inputs are used (Level 3), fair value is derived using fair value models, such as a discounted cash flow model or other standard pricing models that Ashland deems reasonable. |
Inventories | Inventories are carried at the lower of cost or net realizable value. Inventories are primarily stated at cost using the weighted-average cost method. In addition, certain inventories are valued at cost using the last-in, first-out (LIFO) method. |
Goodwill and Intangible Assets, Goodwill | Ashland reviews goodwill and indefinite-lived intangible assets for impairment annually or when events and circumstances indicate an impairment may have occurred. This annual assessment is performed as of July 1 and consists of Ashland determining each reporting unit’s current fair value compared to its current carrying value. For its July 1, 2019 assessment, Ashland determined that its reporting units for the allocation of goodwill were its two reportable segments: Specialty Ingredients and Intermediates and Solvents. At that time, Ashland determined no additional impairment existed. |
Finite-Lived Intangible Asset | Intangible assets principally consist of trademarks and trade names, intellectual property and customer and supplier relationships. Intangible assets classified as finite are amortized on a straight-line basis over their estimated useful lives. The cost of trademarks and trade names is amortized principally over 3 to 25 years, intellectual property over 5 to 25 years, and customer and supplier relationships over 3 to 24 years. |
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived | Ashland annually reviews indefinite-lived intangible assets for possible impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. |
Commitments and Contingencies Policy | Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation (Riley) and the acquisition of Hercules in November 2008. Although Riley, a former subsidiary, was neither a producer nor a manufacturer of asbestos, its industrial boilers contained some asbestos-containing components provided by other companies. Hercules, an indirect wholly-owned subsidiary of Ashland, has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products sold by one of Hercules’ former subsidiaries to a limited industrial market. To assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs gi ven various assumptions for Ashland and Hercules asbestos claims , Ashland retained Nathan Associates Inc. (Nathan) . The methodology used by Nathan to project future asbestos costs is based largely on recent experience, including claim-filing and settlement rates, disease mix, enacted legislation, open claims and litigation defense. The claim experience of Ashland and Hercules are separately compared to the results of previously conducted third party epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, Nathan estimates a range of the number of future claims that may be filed, as well as the related costs that may be incurred in resolving those claims. Changes in asbestos-related liabilities and receivables are recorded on an after-tax basis within the discontinued operations caption in the Statements of Consolidated Comprehensive Income (Loss). |
Environmental Cost Policy | The total reserves for environmental remediation reflect Ashland’s estimates of the most likely costs that will be incurred over an extended period to remediate identified conditions for which the costs are reasonably estimable, without regard to any third-party recoveries. Engineering studies, probability techniques, historical experience and other factors are used to identify and evaluate remediation alternatives and their related costs in determining the estimated reserves for environmental remediation. Ashland continues to discount certain environmental sites and regularly adjusts its reserves as environmental remediation continues. Ashland has estimated the value of its probable insurance recoveries associated with its environmental reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage. At December 31, 2019 and September 30, 2019, Ashland’s recorded receivable for these probable insurance recoveries was $12 million and $13 million, |
Earnings Per Share | The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Stock appreciation rights (SARs), stock options and warrants available to purchase shares outstanding for each reporting period whose grant price was greater than the average market price of Ashland Common Stock for each applicable period were not included in the computation of income from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was approximately 2 million and 1 million at December 31, 2019 and 2018, respectively. Earnings per share is reported under the treasury stock method. |
Stock Incentive Plan Policy | Ashland has stock incentive plans under which key employees or directors are granted stock appreciation rights (SARs), performance awards or nonvested stock awards. Each program is typically a long-term incentive plan designed to link employee compensation with increased shareholder value or reward superior performance and encourage continued employment with Ashland. Ashland recognizes compensation expense for the grant date fair value of stock-based awards over the applicable vesting period. |
Segment Reporting | Ashland determines its reportable segments based on how operations are managed internally for the products and services sold to customers, including how the results are reviewed by the chief operating decision maker, which includes determining resource allocation methodologies used for reportable segments. Operating income is the primary measure on the Statements of Consolidated Comprehensive Income (Loss) that is reviewed by the chief operating decision maker in assessing each reportable segment's financial performance. Ashland does not aggregate operating segments to arrive at these reportable segments. |
Divestitures (Tables)
Divestitures (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Divestitures [Abstract] | |
Summary of Assets and Liabilities Held for Sale | The assets and liabilities of the Maleic business, along with other planned corporate asset divestitures as of December 31, 2019 and September 30, 2019 have been reflected as assets and liabilities held for sale. As a result, in accordance with U.S. GAAP standards, depreciation and amortization were not being recorded within the Statements of Consolidated Comprehensive Income (Loss) and the Condensed Consolidated Balance Sheets. These assets and liabilities are comprised of the following components: December 31 September 30 (In millions) 2019 2019 Accounts receivable, net $ 4 $ 5 Inventories 3 3 Net property, plant and equipment 34 34 Goodwill 14 14 Other assets 5 3 Current assets held for sale $ 60 $ 59 Trade and other payables $ 5 $ 6 Accrued expenses and other liabilities 1 1 Current liabilities held for sale $ 6 $ 7 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Components of Amounts in the Statements of Consolidated Income (Loss) Related To Discontinued Operations | Components of amounts reflected in the Statements of Consolidated Comprehensive Income (Loss) related to discontinued operations are presented in the following table for the three months ended December 31, 2019 and 2018. Three months ended December 31 (In millions) 2019 2018 Income (loss) from discontinued operations (net of tax) Composites/Marl facility $ — $ 25 Valvoline (1 ) — Water Technologies (1 ) (1 ) Distribution — (1 ) $ (2 ) $ 23 |
Composites/Marl facility [Member] | |
Components of Amounts in the Statements of Consolidated Income (Loss) Related To Discontinued Operations | The following table presents a reconciliation of the captions within Ashland's Statements of Consolidated Comprehensive Income (Loss) for the income (loss) from discontinued operations attributable to Composites and the Marl facility for the three months ended December 31, 2019 and 2018. Interest expense was allocated to discontinued operations based on Ashland’s mandatory debt prepayments upon the disposition of Composites and the Marl facility for applicable periods only. Although the Maleic business was not sold to INEOS, this business was operated under the Composites business and Marl facility disposal group and will continue to be reported in discontinued operations. Three months ended December 31 (In millions) 2019 2018 Income (loss) from discontinued operations attributable to Composites/Marl facility Sales $ 12 $ 275 Cost of sales (10 ) (217 ) Selling, general and administrative expense (2 ) (22 ) Research and development expense — (3 ) Equity and other income 2 3 Pretax operating income of discontinued operations 2 36 Net interest and other financing expense — (6 ) Pretax income of discontinued operations 2 30 Income tax expense (2 ) (5 ) Income from discontinued operations $ — $ 25 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Summary of Amount of Restructuring Reserves Related to Program | The following table details at December 31, 2019, the amount of restructuring reserves related to the programs discussed above, and the related activity in these reserves during the three months ended December 31, 2019. The severance and facility cost reserves were primarily recorded within accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet as of December 31, 2019 and December 31, 2018. (In millions) Severance costs Facility costs Total Balance at of September 30, 2019 7 7 14 Restructuring reserve 1 — 1 Utilization (cash paid) (3 ) (1 ) (4 ) Balance at December 31, 2019 $ 5 $ 6 11 (In millions) Severance costs Facility costs Total Balance at of September 30, 2018 36 7 43 Restructuring reserve 4 7 11 Utilization (cash paid) (8 ) (3 ) (11 ) Balance at December 31, 2018 $ 32 $ 11 43 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Instruments Subject to Recurring Fair Value Measurements | The following table summarizes financial instruments subject to recurring fair value measurements as of December 31, 2019. Carrying Total fair Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 157 $ 157 $ 157 $ — $ — Restricted investments (a) 338 338 338 — — Investment of captive insurance company (b) 6 6 6 — — Foreign currency derivatives 1 1 — 1 — Total assets at fair value $ 502 $ 502 $ 501 $ 1 $ — Liabilities Foreign currency derivatives $ 2 $ 2 $ — $ 2 $ — (a) Included in restricted investments is $24 million classified in the other current assets caption on the Condensed Consolidated Balance Sheets. (b) Included in other noncurrent assets in the Condensed Consolidated Balance Sheets. The following table summarizes financial asset instruments subject to recurring fair value measurements as of September 30, 2019 . Carrying Total fair Quoted prices in active markets for identical assets Significant other observable inputs Significant unobservable inputs (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 232 $ 232 $ 232 $ — $ — Restricted investments (a) 334 334 334 — — Investment of captive insurance company (b) 5 5 5 — — Foreign currency derivatives 2 2 — 2 — Total assets at fair value $ 573 $ 573 $ 571 $ 2 $ — Liabilities Foreign currency derivatives $ 2 $ 2 $ — $ 2 $ — (a) Included in restricted investments is $24 million classified in the other current assets caption on the Condensed Consolidated Balance Sheets. (b) Included in other noncurrent assets in the Condensed Consolidated Balance Sheets. |
Summary of Investment Portfolio | The following table provides a summary of the activity within the investment portfolio as of December 31, 2019 and September 30, 2019: (In millions) December 31 2019 September 30 2019 Original cost $ 335 $ 335 Accumulated adjustments, net (a) (30 ) (47 ) Adjusted cost, beginning of year 305 288 Investment income (b) 4 10 Net unrealized gain (c) 38 29 Realized gains (c) — 32 Settlement funds 1 7 Disbursements (10 ) (32 ) Fair value $ 338 $ 334 (a) The accumulated adjustments include investment income, realized gains, disbursements and settlements recorded in previous periods. (b) Investment income for the demand deposit includes interest income as well as dividend income transferred from the equity and corporate bond mutual funds. (c) Presented under the original cost method. The following table presents gross unrealized gains and losses for the restricted investment securities as of December 31, 2019 and September 30, 2019: Gross Gross (In millions) Adjusted Cost Unrealized Gain Unrealized Loss Fair Value As of December 31, 2019 Demand deposit $ 8 $ — $ — $ 8 Equity mutual fund 120 33 — 153 Corporate bond mutual fund 172 5 — 177 Fair value $ 300 $ 38 $ — $ 338 As of September 30, 2019 Demand deposit $ 9 $ — $ — $ 9 Equity mutual fund 120 24 (2 ) 142 Corporate bond mutual fund 176 7 — 183 Fair value $ 305 $ 31 $ (2 ) $ 334 |
Summary of Investment Income, Net Unrealized Gains and Losses, Realized Gains and Disbursements Related to Investments | The following table presents the investment income, net unrealized gains and losses, realized gains and disbursements related to the investments within the portfolio for the three months ended December 31, 2019 and 2018. Three months ended December 31 (In millions) 2019 2018 Investment income $ 4 $ 3 Net gains (losses) realized (a) 9 (30 ) Disbursements (10 ) (8 ) (a) Ashland determined that all unrealized gains and losses were related to equity securities with readily determinable fair values. Due to the new accounting guidance adopted in the first quarter of fiscal 2019, the net unrealized gains (losses) during the three months ended December 31, 2018 and forward were recorded within the net interest and other expense caption in the Statements of Consolidated Comprehensive Income (Loss). |
Summary of Net Gains and Losses on Foreign Currency Derivatives | The following table summarizes the net gains and losses recognized during the three months ended December 31, 2019 and 2018 within the Statements of Consolidated Comprehensive Income (Loss). Three months ended December 31 (In millions) 2019 2018 Foreign currency derivative gains (losses) $ 1 $ 1 |
Summary of Fair Values of Outstanding Foreign Currency Derivatives | The following table summarizes the fair values of the outstanding foreign currency derivatives as of December 31, 2019 and September 30, 2019 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets. December 31 September 30 (In millions) 2019 2019 Foreign currency derivative assets $ 1 $ 2 Notional contract values 160 271 Foreign currency derivative liabilities $ 2 $ 2 Notional contract values 330 168 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following table summarizes Ashland’s inventories as of the reported Condensed Consolidated Balance Sheet dates. (In millions) December 31, 2019 September 30, 2019 Finished products $ 443 $ 400 Raw materials, supplies and work in process 190 197 $ 633 $ 597 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Reportable Segment | The following is a progression of goodwill by reportable segment for the three months ended December 31, 2019. Specialty Intermediates (In millions) Ingredients and Solvents (a) Total Balance at September 30, 2019 $ 2,253 $ — $ 2,253 Currency translation 21 — 21 Balance at December 31, 2019 $ 2,274 $ — $ 2,274 (a) As of December 31, 2019 and September 30, 2019, there was accumulated impairment of $90 million related to the Intermediates and Solvents reportable segment. |
Summary of Intangible Assets | Intangible assets were comprised of the following as of December 31, 2019 and September 30, 2019. December 31, 2019 Gross Net carrying Accumulated carrying (In millions) amount amortization amount Definite-lived intangibles Trademarks and trade names $ 66 $ (30 ) $ 36 Intellectual property 717 (405 ) 312 Customer and supplier relationships 750 (304 ) 446 Total definite-lived intangibles 1,533 (739 ) 794 Indefinite-lived intangibles Trademarks and trade names 278 — 278 Total intangible assets $ 1,811 $ (739 ) $ 1,072 September 30, 2019 Gross Net carrying Accumulated carrying (In millions) amount amortization amount Definite-lived intangibles Trademarks and trade names $ 66 $ (29 ) $ 37 Intellectual property 712 (391 ) 321 Customer and supplier relationships 744 (292 ) 452 Total definite-lived intangibles 1,522 (712 ) 810 Indefinite-lived intangibles Trademarks and trade names 278 — 278 Total intangible assets $ 1,800 $ (712 ) $ 1,088 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Current and Long-term Debt | The following table summarizes Ashland’s current and long-term debt as of the dates reported in the Condensed Consolidated Balance Sheets. (In millions) December 31, 2019 September 30, 2019 4.750% notes, due 2022 $ 1,081 $ 1,080 6.875% notes, due 2043 374 374 Accounts receivable securitizations 157 144 6.50% junior subordinated notes, due 2029 55 54 Other (a) 14 15 Total debt 1,681 1,667 Short-term debt (includes current portion of long-term debt) (179 ) (166 ) Long-term debt (less current portion) $ 1,502 $ 1,501 (a) Includes $11 million and $12 million of debt issuance cost discounts as of December 31, 2019 and September 30, 2019, respectively. Additionally, as December 31, 2019 and September 30, 2019, Other included a European short-term loan facility with an outstanding balance of $22 million for each period. |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Cost Recognized | The components of lease cost recognized within our Statements of Consolidated Comprehensive Income (Loss) were as follows: (In millions) Location Three months ended December 31, 2019 Lease cost: Operating lease cost Selling, General & Administrative $ 5 Operating lease cost Cost of Sales 4 Variable lease cost Selling, General & Administrative — Variable lease cost Cost of Sales 1 Short-term leases Selling, General & Administrative — Total operating lease cost $ 10 |
Summary of Lease Assets and Liabilities | The following table summarizes Ashland’s lease assets and liabilities as presented in the December 31, 2019 Condensed Consolidated Balance Sheet: (In millions) December 31 2019 Assets Operating lease assets $ 157 Total lease assets 157 Liabilities Current operating lease obligations $ 24 Non-current operating lease obligations 143 Total lease liabilities $ 167 |
Schedule of Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities | (In millions) As of December 31, 2019 Operating cash flows from operating leases $ 9 |
Schedule of Maturities Analysis of Lease Liabilities | Maturities of lease liabilities are shown below as of December 31, 2019: (In millions) As of December 31, 2019 Remainder of 2020 $ 21 2021 27 2022 34 2023 15 2024 13 Thereafter $ 110 Total lease payments 220 Less amount of lease payment representing interest (53 ) Total present value of lease payments $ 167 |
Schedule of Future Minimum Rental Payments | As of September 30, 2019, under the previous guidance, the future minimum rental payments are as follows: (In millions) As of September 30, 2019 2020 $ 29 2021 27 2022 34 2023 15 2024 13 Thereafter 110 Total lease payments $ 228 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Changes in Unrecognized Tax Benefits | Changes in unrecognized tax benefits are summarized as follows for the three months ended December 31, 2019. (In millions) Balance at October 1, 2019 $ 165 Increases related to positions taken on items from prior years $ 2 Decreases related to positions taken on items from prior years (1 ) Increases related to positions taken in the current year 1 Lapse of statute of limitations (1 ) Balance at December 31, 2019 $ 166 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Components of Pension and Other Postretirement Benefit Costs for Continuing Operation | The following table details the components of pension and other postretirement benefit costs for continuing operations. Pension benefits Other postretirement benefits (In millions) 2019 2018 2019 2018 Three months ended December 31 Service cost $ 1 $ 2 $ — $ — Interest cost 2 3 1 — Expected return on plan assets (3 ) (3 ) — — Curtailment — (18 ) — — Actuarial (gain) loss — — — — Total net periodic benefit costs $ — $ (16 ) $ 1 $ — |
Litigation, Claims and Contin_2
Litigation, Claims and Contingencies (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Loss Contingencies [Line Items] | |
Reconciliation of Changes in Environmental Contingencies and Asset Retirement Obligations Reserve | The following table provides a reconciliation of the changes in the environmental remediation reserves during the three months ended December 31, 2019 and 2018. Three months ended December 31 (In millions) 2019 2018 Reserve - beginning of period $ 186 $ 187 Disbursements (9 ) (6 ) Revised obligation estimates and accretion 2 3 Reserve - end of period $ 179 $ 184 |
Components of Environmental Remediation Expense | Components of environmental remediation expense included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) are presented in the following table for the three months ended December 31, 2019 and 2018. Three months ended December 31 (In millions) 2019 2018 Environmental expense $ 2 $ 3 Accretion — — Legal expense 2 1 Total expense 4 4 Insurance receivable (a) — (1 ) Total expense, net of receivable activity $ 4 $ 3 (a) Activity of $0 denotes value less than $1 million. |
Ashland [Member] | |
Loss Contingencies [Line Items] | |
Summary of Asbestos Claims Activity | A summary of Ashland asbestos claims activity, excluding Hercules claims, follows. Three months ended December 31 Years ended September 30 (In thousands) 2019 2018 2019 2018 2017 Open claims - beginning of year 53 53 53 54 57 New claims filed — 1 2 2 2 Claims settled — (1 ) (1 ) (1 ) (1 ) Claims dismissed (2 ) — (1 ) (2 ) (4 ) Open claims - end of period 51 53 53 53 54 |
Progression of Activity in Asbestos Reserve Accounts | A progression of activity in the asbestos reserve is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2019 2018 2019 2018 2017 Asbestos reserve - beginning of year $ 352 $ 380 $ 380 $ 419 $ 415 Reserve adjustment — — 1 (8 ) 36 Amounts paid (10 ) (11 ) (29 ) (31 ) (32 ) Asbestos reserve - end of period (a) $ 342 $ 369 $ 352 $ 380 $ 419 (a) Included |
Progression of Insurance Receivable | A progression of activity in the Ashland insurance receivable is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2019 2018 2019 2018 2017 Insurance receivable - beginning of year $ 123 $ 140 $ 140 $ 155 $ 151 Receivable adjustment — — (5 ) (5 ) 15 Insurance settlement — — — — (5 ) Amounts collected (1 ) (1 ) (12 ) (10 ) (6 ) Insurance receivable - end of period (a) $ 122 $ 139 $ 123 $ 140 $ 155 $15 |
Hercules [Member] | |
Loss Contingencies [Line Items] | |
Summary of Asbestos Claims Activity | A summary of Hercules’ asbestos claims activity follows. Three months ended December 31 Years ended September 30 (In thousands) 2019 2018 2019 2018 2017 Open claims - beginning of year 13 13 13 12 15 New claims filed — — 1 2 1 Claims dismissed — (1 ) (1 ) (1 ) (4 ) Open claims - end of period 13 12 13 13 12 |
Progression of Activity in Asbestos Reserve Accounts | A progression of activity in the asbestos reserve is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2019 2018 2019 2018 2017 Asbestos reserve - beginning of year $ 252 $ 282 $ 282 $ 323 $ 321 Reserve adjustments — — (10 ) (19 ) 16 Amounts paid (5 ) (6 ) (20 ) (22 ) (14 ) Asbestos reserve - end of period (a) $ 247 $ 276 $ 252 $ 282 $ 323 (a) Included |
Progression of Insurance Receivable | A progression of activity in the Hercules insurance receivable is presented in the following table. Three months ended December 31 Years ended September 30 (In millions) 2019 2018 2019 2018 2017 Insurance receivable - beginning of year $ 49 $ 54 $ 54 $ 68 $ 63 Receivable adjustment — — (5 ) (14 ) 5 Insurance receivable - end of period $ 49 $ 54 $ 49 $ 54 $ 68 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Stock appreciation rights (SARs), stock options and warrants available to purchase shares outstanding for each reporting period whose grant price was greater than the average market price of Ashland Common Stock for each applicable period were not included in the computation of income from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was approximately 2 million and 1 million at December 31, 2019 and 2018, respectively. Earnings per share is reported under the treasury stock method. Three months ended December 31 (In millions, except per share data) 2019 2018 Numerator Numerator for basic and diluted EPS - Income (loss) from continuing operations $ 34 $ (71 ) Denominator Denominator for basic EPS - Weighted- average common shares outstanding 60 63 Share based awards convertible to common shares (a) 1 — Denominator for diluted EPS - Adjusted weighted- average shares and assumed conversions 61 63 EPS from continuing operations Basic $ 0.57 $ (1.14 ) Diluted 0.56 (1.14 ) (a) As a result of the loss from continuing operations attributable to Ashland during the three months ended December 31, 2018, the effect of the share-based awards convertible to common shares would be antidilutive. In accordance with U.S. GAAP, they have been excluded from the diluted EPS calculation. |
Equity Items (Tables)
Equity Items (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented below, before tax and net of tax effects. 2019 2018 (In millions) Before tax Tax (expense) benefit Net of tax Before tax Tax (expense) benefit Net of tax Three months ended December 31 Other comprehensive income (loss) Unrealized translation gain (loss) $ 38 $ — $ 38 $ (31 ) $ — $ (31 ) Pension and postretirement obligation adjustment: Adjustment of unrecognized prior service costs — — — (7 ) 1 (6 ) Total other comprehensive income (loss) $ 38 $ — $ 38 $ (38 ) $ 1 $ (37 ) |
Summary of Reconciliation of Changes in Stockholders' Equity | Summary of stockholders’ equity A reconciliation of changes in stockholders’ equity are as follows: Three months ended December 31 (In millions) 2019 2018 Common stock and paid in capital Balance, beginning of period $ 757 $ 947 Common shares issued under stock incentive and other plans (a) 1 1 Balance, end of period 758 948 Retained earnings Balance, beginning of period 3,224 2,750 Adoption of new accounting pronouncements (b) — 33 Net income (loss) 32 (48 ) Regular dividends (17 ) (16 ) Balance, end of period 3,239 2,719 Accumulated other comprehensive income (loss) Balance, beginning of period (410 ) (291 ) Adoption of new accounting pronouncements (b) — (34 ) Unrealized translation gain (loss) 38 (31 ) Pension and postretirement obligation adjustment — (6 ) Net change in investment securities — — Balance, end of period (372 ) (362 ) Total stockholders' equity $ 3,625 $ 3,305 Cash dividends declared per common share 0.275 0.250 (a) Common shares issued were 70,461 shares and 140,614 shares for the three months ended December 31, 2019 and 2018, respectively. (b) Represents the cumulative-effect adjustment related to the adoption of the new guidance related to the accounting for equity securities and tax effects of intercompany transfers during fiscal 2019. |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Components of Stock-Based Compensation Expense Included in Continuing Operations | The components of Ashland’s pre-tax stock-based compensation expense included in continuing operations are as follows: Three months ended December 31 (In millions) 2019 (a) 2018 (b) SARs $ 2 $ 2 Nonvested stock awards 2 4 Performance share awards 1 — $ 5 $ 6 (a) Included $1 million of expense related to cash-settled nonvested restricted stock awards and zero (b) Included $1 million of expense related to cash-settled nonvested restricted stock awards and $2 million of income related to cash-settled performance units during the three months ended December 31, 2018. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue | Ashland disaggregates its revenue from contracts with customers by segment, geographical region and product category, as Ashland believes these categories best depict how management reviews the financial performance of its operations. See the following tables for details: Sales by geography for the three months ended December 31 (In millions) Specialty Ingredients Intermediates and Solvents Geography 2019 2018 2019 2018 North America $ 198 $ 219 $ 15 $ 11 Europe 161 170 5 5 Asia Pacific 103 116 7 6 Latin America & other 43 48 1 1 $ 505 $ 553 $ 28 $ 23 Sales by product category for the three months ended December 31 (In millions) 2019 2018 Specialty Ingredients Cellulosics $ 178 $ 189 Poly-vinyl pyrrolidones 93 95 Adhesives 74 82 Actives 37 37 Vinyl ethers 20 24 Pharmachem 40 59 Other (a) 63 67 $ 505 $ 553 Intermediates and Solvents Derivatives $ 23 $ 20 Butanediol 5 3 $ 28 $ 23 (a) Other includes no product category in excess of 10% of sales. |
Reportable Segment Information
Reportable Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Financial Information for Each Reportable Segment | The following table presents various financial information for each reportable segment for the three months ended December 31, 2019 and 2018. Three months ended December 31 (In millions - unaudited) 2019 2018 SALES Specialty Ingredients $ 505 $ 553 Intermediates and Solvents 28 23 $ 533 $ 576 OPERATING INCOME (LOSS) Specialty Ingredients $ 44 $ 26 Intermediates and Solvents (12 ) — Unallocated and other (15 ) (33 ) $ 17 $ (7 ) |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) $ in Millions | Jul. 01, 2018ReportableSegment | Dec. 31, 2019USD ($)ReportableSegment | Oct. 01, 2019USD ($) |
Significant Accounting Policies [Line Items] | |||
Number of reportable segments | ReportableSegment | 2 | 2 | |
Operating lease liabilities | $ 167 | $ 174 | |
Operating lease right of use asset | $ 157 | $ 174 | |
Lessee, Operating Lease, Existence of Option to Extend | true | ||
Lessee, Operating Lease, Existence of Option to Terminate | true | ||
Operating lease description | Lease terms reflect options to extend or terminate the lease when it is reasonably certain that the option will be exercised. | ||
Accounting Standards Update 2018-02 [Member] | Retained earnings [Member] | |||
Significant Accounting Policies [Line Items] | |||
New accounting pronouncement or change in accounting principle effect of adoption quantification amount | $ 3 |
Divestitures - Additional Infor
Divestitures - Additional Information (Details) - USD ($) $ in Millions | Jul. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 15, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Stranded divestitures costs | $ 0 | $ 12 | ||
Composites Segment and the Intermediates and Solvents Facility [Member] | INEOS Enterprises [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Transaction value in sale of business | $ 1,100 | |||
Adjusted purchase price from additional proposed changes to sale agreement | $ 1,015 | |||
Transition service fee income recognized | $ 3 |
Divestitures - Summary of Asset
Divestitures - Summary of Assets and Liabilities Held for Sale (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Divestitures [Abstract] | ||
Accounts receivable, net | $ 4 | $ 5 |
Inventories | 3 | 3 |
Net property, plant and equipment | 34 | 34 |
Goodwill | 14 | 14 |
Other assets | 5 | 3 |
Current assets held for sale | 60 | 59 |
Trade and other payables | 5 | 6 |
Accrued expenses and other liabilities | 1 | 1 |
Current liabilities held for sale | $ 6 | $ 7 |
Discontinued Operations - Compo
Discontinued Operations - Components of Consolidated Comprehensive Income (Loss) Related to Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations (net of tax) | $ (2) | $ 23 |
Composites/Marl facility [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations (net of tax) | 25 | |
Valvoline [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations (net of tax) | (1) | |
Water Technologies [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations (net of tax) | $ (1) | (1) |
Distribution [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income (loss) from discontinued operations (net of tax) | $ (1) |
Discontinued Operations - Recon
Discontinued Operations - Reconciliation of Consolidated Income (Loss) From Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income (loss) from discontinued operations attributable to Composites/Marl facility | ||
Sales | $ 12 | |
Cost of sales | (10) | |
Selling, general and administrative expense | (2) | |
Equity and other income | 2 | |
Pretax operating income of discontinued operations | 2 | |
Pretax income of discontinued operations | 2 | |
Income tax expense | (2) | |
Income from discontinued operations | $ (2) | $ 23 |
Composites/Marl facility [Member] | ||
Income (loss) from discontinued operations attributable to Composites/Marl facility | ||
Sales | 275 | |
Cost of sales | (217) | |
Selling, general and administrative expense | (22) | |
Research and development expense | (3) | |
Equity and other income | 3 | |
Pretax operating income of discontinued operations | 36 | |
Net interest and other financing expense | (6) | |
Pretax income of discontinued operations | 30 | |
Income tax expense | (5) | |
Income from discontinued operations | $ 25 |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring reserve | $ 11,000,000 | $ 43,000,000 | $ 14,000,000 | $ 43,000,000 |
Severance Costs [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring reserve | 5,000,000 | 32,000,000 | 7,000,000 | 36,000,000 |
Facility Costs [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring reserve | 6,000,000 | 11,000,000 | $ 7,000,000 | $ 7,000,000 |
Restructuring costs | 0 | 7,000,000 | ||
Executive Transition Severance Costs [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Severance costs | 3,000,000 | |||
Restructuring reserve | 3,000,000 | |||
Voluntary Severance Offer [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Severance costs | 1,000,000 | 4,000,000 | ||
Plant Restructuring [Member] | Specialty Ingredients [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring reserve | $ 0 | |||
Plant Restructuring [Member] | Severance Costs [Member] | Specialty Ingredients [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 5,000,000 | |||
Plant Restructuring [Member] | Accelerated Depreciation and Amortization [Member] | Specialty Ingredients [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 19,000,000 | |||
Plant Restructuring [Member] | Plant Closure Costs [Member] | Specialty Ingredients [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 3,000,000 | |||
Plant Restructuring [Member] | Cost of Sales [Member] | Specialty Ingredients [Member] | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 27,000,000 |
Restructuring Activities - Summ
Restructuring Activities - Summary of Severance Reserves and Facility Cost Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | $ 14 | $ 43 |
Restructuring reserve | 1 | 11 |
Utilization (cash paid) | (4) | (11) |
Ending balance | 11 | 43 |
Severance Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | 7 | 36 |
Restructuring reserve | 1 | 4 |
Utilization (cash paid) | (3) | (8) |
Ending balance | 5 | 32 |
Facility Costs [Member] | ||
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | 7 | 7 |
Restructuring reserve | 0 | 7 |
Utilization (cash paid) | (1) | (3) |
Ending balance | $ 6 | $ 11 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Instruments Subject to Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
ASSETS | |||
Cash and cash equivalents | $ 157 | $ 232 | |
Restricted investments | [1] | 338 | 334 |
Investment of captive insurance company | [2] | 6 | 5 |
Foreign currency derivatives | 1 | 2 | |
Total assets at fair value | 502 | 573 | |
Liabilities | |||
Foreign currency derivatives | 2 | 2 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | |||
ASSETS | |||
Cash and cash equivalents | 157 | 232 | |
Restricted investments | [1] | 338 | 334 |
Investment of captive insurance company | [2] | 6 | 5 |
Foreign currency derivatives | 1 | 2 | |
Total assets at fair value | 502 | 573 | |
Liabilities | |||
Foreign currency derivatives | 2 | 2 | |
Fair Value, Inputs, Level 1 [Member] | |||
ASSETS | |||
Cash and cash equivalents | 157 | 232 | |
Restricted investments | [1] | 338 | 334 |
Investment of captive insurance company | [2] | 6 | 5 |
Foreign currency derivatives | 0 | 0 | |
Total assets at fair value | 501 | 571 | |
Liabilities | |||
Foreign currency derivatives | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
ASSETS | |||
Cash and cash equivalents | 0 | 0 | |
Restricted investments | [1] | 0 | 0 |
Investment of captive insurance company | [2] | 0 | 0 |
Foreign currency derivatives | 1 | 2 | |
Total assets at fair value | 1 | 2 | |
Liabilities | |||
Foreign currency derivatives | 2 | 2 | |
Fair Value, Inputs, Level 3 [Member] | |||
ASSETS | |||
Cash and cash equivalents | 0 | 0 | |
Restricted investments | [1] | 0 | 0 |
Investment of captive insurance company | [2] | 0 | 0 |
Foreign currency derivatives | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Liabilities | |||
Foreign currency derivatives | $ 0 | $ 0 | |
[1] | Included in restricted investments is $24 million classified in the other current assets caption on the Condensed Consolidated Balance Sheets. | ||
[2] | Included in other noncurrent assets in the Condensed Consolidated Balance Sheets. |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Financial Instruments Subject to Recurring Fair Value Measurements (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Fair Value Disclosures [Abstract] | ||
Restricted Investments, Current | $ 24 | $ 24 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Investment Portfolio (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Original cost | $ 335 | $ 335 | ||||
Accumulated adjustments, net | [1] | (30) | (47) | |||
Adjusted cost | 305 | 288 | ||||
Investment income | 4 | [2] | $ 3 | 10 | [2] | |
Net unrealized gain | [3] | 38 | 29 | |||
Realized gains | [3] | 0 | 32 | |||
Settlement funds | 1 | 7 | ||||
Disbursements | (10) | $ (8) | (32) | |||
Fair value | 338 | 334 | ||||
Available-for-sale Securities [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Adjusted cost | 300 | 305 | ||||
Fair value | 338 | 334 | ||||
Gross Unrealized Gain | 38 | 31 | ||||
Gross Unrealized Loss | 0 | (2) | ||||
Corporate Bond Mutual Fund [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Adjusted cost | 172 | 176 | ||||
Fair value | 177 | 183 | ||||
Gross Unrealized Gain | 5 | 7 | ||||
Gross Unrealized Loss | 0 | 0 | ||||
Equity Mutual Fund [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Adjusted cost | 120 | 120 | ||||
Fair value | 153 | 142 | ||||
Gross Unrealized Gain | 33 | 24 | ||||
Gross Unrealized Loss | 0 | (2) | ||||
Demand Deposit [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Demand deposit | $ 8 | $ 9 | ||||
[1] | The accumulated adjustments include investment income, realized gains, disbursements and settlements recorded in previous periods. | |||||
[2] | Investment income for the demand deposit includes interest income as well as dividend income transferred from the equity and corporate bond mutual funds. | |||||
[3] | Presented under the original cost method. |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary of Investment Income, Net Unrealized Gains and Losses, Realized Gains and Disbursements Related to Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | ||||
Fair Value Disclosures [Abstract] | ||||||
Investment income | $ 4 | [1] | $ 3 | $ 10 | [1] | |
Net gains (losses) realized | [2] | 9 | (30) | |||
Disbursements | $ (10) | $ (8) | $ (32) | |||
[1] | Investment income for the demand deposit includes interest income as well as dividend income transferred from the equity and corporate bond mutual funds. | |||||
[2] | Ashland determined that all unrealized gains and losses were related to equity securities with readily determinable fair values. Due to the new accounting guidance adopted in the first quarter of fiscal 2019, the net unrealized gains (losses) during the three months ended December 31, 2018 and forward were recorded within the net interest and other expense caption in the Statements of Consolidated Comprehensive Income (Loss). |
Fair Value Measurements - Sum_5
Fair Value Measurements - Summary of Net Gains and Losses on Foreign Currency Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative gains (losses) | $ 1 | $ 1 |
Fair Value Measurements - Sum_6
Fair Value Measurements - Summary of Fair Values of Outstanding Foreign Currency Derivatives (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Accounts Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative assets | $ 1 | $ 2 |
Notional contract values | 160 | 271 |
Accrued Expenses and Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional contract values | 330 | 168 |
Foreign currency derivative liabilities | $ 2 | $ 2 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Other financial instruments [Abstract] | ||
Long-term debt, carrying value | $ 1,513 | $ 1,513 |
Long-term debt, fair value | $ 1,681 | $ 1,680 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 443 | $ 400 |
Raw materials, supplies and work in process | 190 | 197 |
Total | $ 633 | $ 597 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Additional Information (Details) $ in Millions | Jul. 01, 2018ReportableSegment | Dec. 31, 2019USD ($)ReportableSegment | Dec. 31, 2018USD ($) |
Finite Lived Intangible Assets [Line Items] | |||
Number of reportable segments | ReportableSegment | 2 | 2 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization expense recognized on intangible assets | $ 21 | $ 22 | |
Expected future amortization expense [Abstract] | |||
2020 (includes three months actual and nine months estimated) | 85 | ||
2021 | 85 | ||
2022 | 84 | ||
2023 | 84 | ||
2024 | $ 70 | ||
Minimum [Member] | Trademarks and Trade Names [Member] | |||
Intangible Assets, Net [Abstract] | |||
Useful life (in years) | 3 years | ||
Minimum [Member] | Intellectual Property [Member] | |||
Intangible Assets, Net [Abstract] | |||
Useful life (in years) | 5 years | ||
Minimum [Member] | Customer and supplier relationships [Member] | |||
Intangible Assets, Net [Abstract] | |||
Useful life (in years) | 3 years | ||
Maximum [Member] | Trademarks and Trade Names [Member] | |||
Intangible Assets, Net [Abstract] | |||
Useful life (in years) | 25 years | ||
Maximum [Member] | Intellectual Property [Member] | |||
Intangible Assets, Net [Abstract] | |||
Useful life (in years) | 25 years | ||
Maximum [Member] | Customer and supplier relationships [Member] | |||
Intangible Assets, Net [Abstract] | |||
Useful life (in years) | 24 years |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Summary of Goodwill by Reportable Segment (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2019USD ($) | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 2,253 | |
Currency translation | 21 | |
Balance at end of period | 2,274 | |
Specialty Ingredients [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 2,253 | |
Currency translation | 21 | |
Balance at end of period | 2,274 | |
Intermediates and Solvents [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 0 | [1] |
Currency translation | 0 | [1] |
Balance at end of period | $ 0 | [1] |
[1] | As of December 31, 2019 and September 30, 2019, there was accumulated impairment of $90 million related to the Intermediates and Solvents reportable segment. |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Summary of Goodwill by Reportable Segment (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Intermediates and Solvents [Member] | ||
Goodwill [Line Items] | ||
Accumulated impairment | $ 90 | $ 90 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 1,533 | $ 1,522 |
Accumulated amortization | (739) | (712) |
Net carrying amount | 794 | 810 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Gross carrying amount | 1,811 | 1,800 |
Net carrying amount | 1,072 | 1,088 |
Trademarks and Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 66 | 66 |
Accumulated amortization | (30) | (29) |
Net carrying amount | 36 | 37 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | ||
Indefinite-lived intangible assets | 278 | 278 |
Intellectual Property [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 717 | 712 |
Accumulated amortization | (405) | (391) |
Net carrying amount | 312 | 321 |
Customer and supplier relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 750 | 744 |
Accumulated amortization | (304) | (292) |
Net carrying amount | $ 446 | $ 452 |
Debt - Summary of Current and L
Debt - Summary of Current and Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | |||
Carrying value of debt | $ 1,513 | $ 1,513 | |
Other | [1] | 14 | 15 |
Total debt | 1,681 | 1,667 | |
Short-term debt (includes current portion of long-term debt) | (179) | (166) | |
Long-term debt (less current portion) | 1,502 | 1,501 | |
Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | 1,081 | 1,080 | |
Notes due 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | 374 | 374 | |
Accounts Receivable Securitization [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | 157 | 144 | |
Junior Subordinated Debt [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | $ 55 | $ 54 | |
[1] | Includes $11 million and $12 million of debt issuance cost discounts as of December 31, 2019 and September 30, 2019, respectively. Additionally, as December 31, 2019 and September 30, 2019, Other included a European short-term loan facility with an outstanding balance of $22 million for each period. |
Debt - Summary of Current and_2
Debt - Summary of Current and Long-term Debt (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Debt Instrument [Line Items] | ||
Unamortized debt issuance expense, long-term debt | $ 11 | $ 12 |
Short-term debt outstanding balance | $ 179 | 166 |
Junior Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 6.50% | |
Debt instrument, maturity year | 2029 | |
Notes due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 4.75% | |
Debt instrument, maturity year | 2022 | |
Notes due 2043 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate, stated percentage | 6.875% | |
Debt instrument, maturity year | 2043 | |
European Facility [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt outstanding balance | $ 22 | $ 22 |
Debt - Summary of Current and_3
Debt - Summary of Current and Long-term Debt - Additional Information (Details) $ in Millions | Dec. 31, 2019USD ($) |
Scheduled aggregate debt maturities by fiscal year [Abstract] | |
2020 | $ 0 |
2021 | 0 |
2022 | 1,083 |
2023 | 0 |
2024 | $ 0 |
Debt - Financing Activity and C
Debt - Financing Activity and Covenants - Additional Information (Details) $ in Millions | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | $ 793 |
Covenant restrictions [Abstract] | |
Maximum consolidated leverage ratio | 4.5 |
Consolidated net leverage ratio | 2.9 |
Minimum required consolidated interest coverage ratio | 3 |
Consolidated interest coverage ratio | 5.9 |
2017 Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | $ 800 |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | 766 |
Letters of credit outstanding, amount | 34 |
Accounts Receivable Securitization [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | $ 27 |
Leasing Arrangements - Addition
Leasing Arrangements - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee Lease Description [Line Items] | |
Weighted average remaining operating lease term | 16 years |
Weighted average operating discount rate, percent | 2.90% |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Right-of-use assets exchanged for new operating lease obligations | $ 1,000,000 |
Real Estate [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease liability percentage | 87.00% |
Leasing Arrangements - Componen
Leasing Arrangements - Components of Lease Cost Recognized (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Lease cost: | |
Total operating lease cost | $ 10 |
Selling, General and Administrative Expenses [Member] | |
Lease cost: | |
Operating lease cost | 5 |
Cost of Sales [Member] | |
Lease cost: | |
Operating lease cost | 4 |
Variable lease cost | $ 1 |
Leasing Arrangements - Summary
Leasing Arrangements - Summary of Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Oct. 01, 2019 |
ASSETS | ||
Total lease assets | $ 157 | $ 174 |
Liabilities | ||
Current operating lease obligations | 24 | |
Non-current operating lease obligations | 143 | |
Total lease liabilities | $ 167 | $ 174 |
Leasing Arrangements - Schedule
Leasing Arrangements - Schedule of Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 9 |
Leasing Arrangements - Schedu_2
Leasing Arrangements - Schedule of Maturities Analysis of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Oct. 01, 2019 |
Leases [Abstract] | ||
Remainder of 2020 | $ 21 | |
2021 | 27 | |
2022 | 34 | |
2023 | 15 | |
2024 | 13 | |
Thereafter | 110 | |
Total lease payments | 220 | |
Less amount of lease payment representing interest | (53) | |
Total present value of lease payments | $ 167 | $ 174 |
Leasing Arrangements - Schedu_3
Leasing Arrangements - Schedule of Future Minimum Rental Payments (Details) $ in Millions | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 29 |
2021 | 27 |
2022 | 34 |
2023 | 15 |
2024 | 13 |
Thereafter | 110 |
Total lease payments | $ 228 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Minimum [Member] | ||
Income Tax Contingency [Line Items] | ||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 1 | |
Maximum [Member] | ||
Income Tax Contingency [Line Items] | ||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 3 | |
Current Fiscal Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Effective tax rate (in hundredths) | 240.00% | |
Current Fiscal Year [Member] | Foreign Country [Member] | Swiss Tax Reform [Member] | ||
Income Tax Contingency [Line Items] | ||
Income tax rate reconciliation, valuation allowances | $ (27) | |
Prior Fiscal Year [Member] | ||
Income Tax Contingency [Line Items] | ||
Effective tax rate (in hundredths) | (51.00%) | |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ (30) |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Unrecognized Tax Benefits (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Income Tax Disclosure [Abstract] | |
Balance at beginning of period | $ 165 |
Increases related to positions taken on items from prior years | 2 |
Decreases related to positions taken on items from prior years | (1) |
Increases related to positions taken in the current year | 1 |
Lapse of statute of limitations | (1) |
Balance at end of period | $ 166 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Foreign Pension Plans, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actual contributions to benefit plans in period | $ 1,000,000 |
Estimated future contributions in current fiscal year | 4,000,000 |
Remeasurement due to curtailment gain | 18,000,000 |
United States Pension Plans of US Entity, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actual contributions to benefit plans in period | $ 0 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Components of Pension and Other Postretirement Benefit Costs for Continuing Operation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1 | $ 2 |
Interest cost | 2 | 3 |
Expected return on plan assets | (3) | (3) |
Curtailment | 0 | (18) |
Actuarial (gain) loss | 0 | 0 |
Total net periodic benefit costs | 0 | (16) |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 1 | 0 |
Expected return on plan assets | 0 | 0 |
Curtailment | 0 | 0 |
Actuarial (gain) loss | 0 | 0 |
Total net periodic benefit costs | $ 1 | $ 0 |
Litigation, Claims and Contin_3
Litigation, Claims and Contingencies - Summary of Asbestos Claims Activity (Details) - Claim Claim in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Ashland [Member] | |||||
Asbestos claims [Roll Forward] | |||||
Open claims - beginning of year | 53 | 53 | 53 | 54 | 57 |
New claims filed | 0 | 1 | 2 | 2 | 2 |
Claims settled | 0 | (1) | (1) | (1) | (1) |
Claims dismissed | (2) | 0 | (1) | (2) | (4) |
Open claims - end of period | 51 | 53 | 53 | 53 | 54 |
Hercules [Member] | |||||
Asbestos claims [Roll Forward] | |||||
Open claims - beginning of year | 13 | 13 | 13 | 12 | 15 |
New claims filed | 1 | 2 | 1 | ||
Claims dismissed | (1) | (1) | (1) | (4) | |
Open claims - end of period | 13 | 12 | 13 | 13 | 12 |
Litigation, Claims and Contin_4
Litigation, Claims and Contingencies - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019USD ($)WasteTreatmentorDisposalSiteFacilityServiceStationProperty | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | ||||||
Environmental Remediation Costs Recognized [Abstract] | ||||||||||||
Number of waste treatment or disposal sites were company is identified as a potentially responsible party under the superfund or similar state laws | WasteTreatmentorDisposalSite | 80 | |||||||||||
Number of current and former operating facilities subject to various environmental laws | Facility | 113 | |||||||||||
Total number of service station properties subject to various environmental laws | ServiceStationProperty | 1,225 | |||||||||||
Number of service stations being actively remediated | ServiceStationProperty | 29 | |||||||||||
Accrual for environmental loss contingencies | $ 179 | $ 184 | $ 186 | $ 187 | ||||||||
Accrued environmental loss contingencies, noncurrent | 137 | 143 | ||||||||||
Recorded third-party environmental recoveries receivable | 12 | 13 | ||||||||||
Recorded third-party environmental recoveries, noncurrent | $ 11 | 12 | ||||||||||
Maximum reserve for remediation reserve related to any one site (in hundredths) | 15.00% | |||||||||||
Minimum [Member] | ||||||||||||
Asbestos litigation cost projection [Abstract] | ||||||||||||
Number of Years Included in Asbestos Assumption | 40 years | |||||||||||
Maximum [Member] | ||||||||||||
Asbestos litigation cost projection [Abstract] | ||||||||||||
Number of Years Included in Asbestos Assumption | 50 years | |||||||||||
Environmental Remediation Costs Recognized [Abstract] | ||||||||||||
Environmental exit costs, reasonably possible additional loss | $ 430 | |||||||||||
Ashland [Member] | ||||||||||||
Asbestos claims [Roll Forward] | ||||||||||||
Increase (Decrease) in asbestos-related claims | 0 | $ 1 | 0 | 1 | (8) | $ 36 | ||||||
Total reserves for asbestos claims | 342 | [1] | 369 | [1] | 352 | [1] | 380 | [1] | 419 | [1] | $ 415 | |
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||||||
Insurance receivable | 122 | [2] | 139 | [2] | 123 | [2] | 140 | [2] | 155 | [2] | 151 | |
Receivable adjustment | 0 | (5) | 0 | (5) | (5) | 15 | ||||||
Asbestos litigation cost projection [Abstract] | ||||||||||||
Possible total future litigation defense and claim settlement costs | 600 | |||||||||||
Total reserves for asbestos claims | 342 | [1] | 369 | [1] | 352 | [1] | 380 | [1] | 419 | [1] | 415 | |
Hercules [Member] | ||||||||||||
Asbestos claims [Roll Forward] | ||||||||||||
Increase (Decrease) in asbestos-related claims | 0 | (10) | 0 | (10) | (19) | 16 | ||||||
Total reserves for asbestos claims | 247 | [3] | 276 | [3] | 252 | [3] | 282 | [3] | 323 | [3] | 321 | |
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||||||
Insurance receivable | 49 | 54 | 49 | 54 | 68 | 63 | ||||||
Receivable adjustment | 0 | $ (5) | 0 | (5) | (14) | 5 | ||||||
Asbestos litigation cost projection [Abstract] | ||||||||||||
Possible total future litigation defense and claim settlement costs | 450 | |||||||||||
Total reserves for asbestos claims | $ 247 | [3] | $ 276 | [3] | $ 252 | [3] | $ 282 | [3] | $ 323 | [3] | $ 321 | |
[1] | Included | |||||||||||
[2] | Included $15 | |||||||||||
[3] | Included |
Litigation, Claims and Contin_5
Litigation, Claims and Contingencies - Schedule of Progression of Activity in the Asbestos Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | ||||||
Ashland [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Asbestos reserve - beginning of year | $ 352 | [1] | $ 380 | [1] | $ 380 | [1] | $ 419 | [1] | $ 415 | ||
Reserve adjustment | 0 | $ 1 | 0 | 1 | (8) | 36 | |||||
Amounts paid | (10) | (11) | (29) | (31) | (32) | ||||||
Asbestos reserve - end of period | [1] | 342 | 369 | 352 | 380 | 419 | |||||
Hercules [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Asbestos reserve - beginning of year | 252 | [2] | 282 | [2] | 282 | [2] | 323 | [2] | 321 | ||
Reserve adjustment | 0 | $ (10) | 0 | (10) | (19) | 16 | |||||
Amounts paid | (5) | (6) | (20) | (22) | (14) | ||||||
Asbestos reserve - end of period | [2] | $ 247 | $ 276 | $ 252 | $ 282 | $ 323 | |||||
[1] | Included | ||||||||||
[2] | Included |
Litigation, Claims and Contin_6
Litigation, Claims and Contingencies - Schedule of Progression of Activity in the Asbestos Reserve (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |||||
Ashland [Member] | |||||||||||
Asbestos claims [Roll Forward] | |||||||||||
Asbestos reserve | $ 342 | [1] | $ 352 | [1] | $ 369 | [1] | $ 380 | [1] | $ 419 | [1] | $ 415 |
Ashland [Member] | Other Current Liabilities [Member] | |||||||||||
Asbestos claims [Roll Forward] | |||||||||||
Asbestos reserve | 28 | 28 | |||||||||
Hercules [Member] | |||||||||||
Asbestos claims [Roll Forward] | |||||||||||
Asbestos reserve | 247 | [2] | 252 | [2] | $ 276 | [2] | $ 282 | [2] | $ 323 | [2] | $ 321 |
Hercules [Member] | Other Current Liabilities [Member] | |||||||||||
Asbestos claims [Roll Forward] | |||||||||||
Asbestos reserve | $ 21 | $ 21 | |||||||||
[1] | Included | ||||||||||
[2] | Included |
Litigation, Claims and Contin_7
Litigation, Claims and Contingencies - Summary of Progression of Insurance Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | ||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |||||||||||
Insurance settlement | [1] | $ 0 | $ 1 | ||||||||
Ashland [Member] | |||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |||||||||||
Insurance receivable - beginning of year | 123 | [2] | 140 | [2] | $ 140 | [2] | $ 155 | [2] | $ 151 | ||
Receivable adjustment | 0 | $ (5) | 0 | (5) | (5) | 15 | |||||
Insurance settlement | 0 | 0 | 0 | 0 | (5) | ||||||
Amounts collected | (1) | (1) | (12) | (10) | (6) | ||||||
Insurance receivable - end of period | [2] | 122 | 139 | 123 | 140 | 155 | |||||
Hercules [Member] | |||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |||||||||||
Insurance receivable - beginning of year | 49 | 54 | 54 | 68 | 63 | ||||||
Receivable adjustment | 0 | $ (5) | 0 | (5) | (14) | 5 | |||||
Insurance receivable - end of period | $ 49 | $ 54 | $ 49 | $ 54 | $ 68 | ||||||
[1] | Activity of $0 denotes value less than $1 million. | ||||||||||
[2] | Included $15 |
Litigation, Claims and Contin_8
Litigation, Claims and Contingencies - Summary of Progression of Insurance Receivable (Parenthetical) (Details) - Ashland [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | [1] | Sep. 30, 2018 | [1] | Sep. 30, 2017 | [1] | Sep. 30, 2016 | ||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |||||||||||
Insurance receivable | $ 122 | [1] | $ 123 | [1] | $ 139 | $ 140 | $ 155 | $ 151 | |||
Accounts Receivable [Member] | |||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |||||||||||
Insurance receivable | $ 15 | $ 15 | |||||||||
[1] | Included $15 |
Litigation, Claims and Contin_9
Litigation, Claims and Contingencies - Summary of Reconciliation of Changes in Environmental Remediation Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Environmental Remediation Obligations [Abstract] | ||
Reserve - beginning of period | $ 186 | $ 187 |
Disbursements | (9) | (6) |
Revised obligation estimates and accretion | 2 | 3 |
Reserve - end of period | $ 179 | $ 184 |
Litigation, Claims and Conti_10
Litigation, Claims and Contingencies - Summary of Components of Environmental Remediation Expense Included within Selling, General and Administrative Expense (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Environmental Expense And Liabilities [Abstract] | |||
Environmental expense | $ 2 | $ 3 | |
Accretion | 0 | 0 | |
Legal expense | 2 | 1 | |
Total expense | 4 | 4 | |
Insurance receivable | [1] | 0 | (1) |
Total expense, net of receivable activity | $ 4 | $ 3 | |
[1] | Activity of $0 denotes value less than $1 million. |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from calculation of earnings per share | 2 | 1 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Numerator | |||
Numerator for basic and diluted EPS - Income (loss) from continuing operations | $ 34 | $ (71) | |
Denominator | |||
Denominator for basic EPS - Weighted-average common shares outstanding | 60 | 63 | |
Share based awards convertible to common shares | [1] | 1 | 0 |
Denominator for diluted EPS - Adjusted weighted-average shares and assumed conversions | 61 | 63 | |
PER SHARE DATA | |||
Basic | $ 0.57 | $ (1.14) | |
Diluted | $ 0.56 | $ (1.14) | |
[1] | As a result of the loss from continuing operations attributable to Ashland during the three months ended December 31, 2018, the effect of the share-based awards convertible to common shares would be antidilutive. In accordance with U.S. GAAP, they have been excluded from the diluted EPS calculation. |
Equity Items - Additional Infor
Equity Items - Additional Information (Details) - $ / shares | 3 Months Ended | ||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | |
Equity [Abstract] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.250 | $ 0.275 | $ 0.275 |
Equity Items - Components of Ac
Equity Items - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Unrealized translation gain (loss), before tax | $ 38 | $ (31) |
Unrealized translation gain (loss), net of tax | 38 | (31) |
Adjustment of unrecognized prior service cost (credit), before tax | (7) | |
Adjustment of unrecognized prior service cost (credit), tax | 1 | |
Adjustment of unrecognized prior service cost (credit), net of tax | (6) | |
Total other comprehensive income (loss), before tax | 38 | (38) |
Total other comprehensive income (loss), tax | 1 | |
Other comprehensive income (loss) | $ 38 | $ (37) |
Equity Items - Summary of Recon
Equity Items - Summary of Reconciliation of Changes in Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Balance, end of period | $ 3,625 | $ 3,305 | |
Cash dividends declared per common share | $ 0.275 | $ 0.250 | |
Common Stock and Paid in Capital [Member] | |||
Balance, beginning of period | $ 757 | $ 947 | |
Common shares issued under stock incentive and other plans | [1] | 1 | 1 |
Balance, end of period | 758 | 948 | |
Retained earnings [Member] | |||
Balance, beginning of period | 3,224 | 2,750 | |
Adoption of new accounting pronouncements | [2] | 33 | |
Net income (loss) | 32 | (48) | |
Regular dividends | (17) | (16) | |
Balance, end of period | 3,239 | 2,719 | |
Accumulated other comprehensive income (loss) [Member] | |||
Balance, beginning of period | (410) | (291) | |
Adoption of new accounting pronouncements | [2] | (34) | |
Unrealized translation gain (loss) | 38 | (31) | |
Pension and postretirement obligation adjustment | (6) | ||
Balance, end of period | $ (372) | $ (362) | |
[1] | Common shares issued were 70,461 shares and 140,614 shares for the three months ended December 31, 2019 and 2018, respectively. | ||
[2] | Represents the cumulative-effect adjustment related to the adoption of the new guidance related to the accounting for equity securities and tax effects of intercompany transfers during fiscal 2019. |
Equity Items - Summary of Rec_2
Equity Items - Summary of Reconciliation of Changes in Stockholders' Equity (Parenthetical) (Details) - shares | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||
Common shares issued | 70,461 | 140,614 |
Stock Incentive Plans - Compone
Stock Incentive Plans - Components of Stock-Based Compensation Expense Included in Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | [2] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ 5 | [1] | $ 6 | ||
Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | 2 | [1] | 2 | ||
Nonvested Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | 2 | [1] | $ 4 | ||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | [1] | $ 1 | |||
[1] | Included $1 million of expense related to cash-settled nonvested restricted stock awards and zero | ||||
[2] | Included $1 million of expense related to cash-settled nonvested restricted stock awards and $2 million of income related to cash-settled performance units during the three months ended December 31, 2018. |
Stock Incentive Plans - Compo_2
Stock Incentive Plans - Components of Stock-Based Compensation Expense Included in Continuing Operations (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 5 | [1] | $ 6 | [2] |
Cash-settled Nonvested Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1 | 1 | ||
Cash-settled Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 0 | $ (2) | ||
[1] | Included $1 million of expense related to cash-settled nonvested restricted stock awards and zero | |||
[2] | Included $1 million of expense related to cash-settled nonvested restricted stock awards and $2 million of income related to cash-settled performance units during the three months ended December 31, 2018. |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ 5 | [1] | $ 6 | [2] | |
Number of common shares for each converted performance share | 1 | ||||
Stock Appreciation Rights (SARs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unexercised SARs generally lapse expiration period | 10 years | ||||
Grants of share-based payment awards in period | 231,000 | 300,000 | |||
Total unrecognized compensation costs | $ 7 | ||||
Model to fair value share-based payment awards | Black-Scholes option-pricing model | ||||
Unrecognized cost expected to be recognized over a weighted-average period (in years) | 2 years 2 months 12 days | ||||
Stock-based compensation | $ 2 | [1] | $ 2 | [2] | |
Stock Appreciation Rights (SARs) [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period of share-based payment award | 1 year | ||||
Stock Appreciation Rights (SARs) [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period of share-based payment award | 3 years | ||||
Nonvested Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants of share-based payment awards in period | 86,000 | 81,000 | |||
Total unrecognized compensation costs | $ 10 | ||||
Unrecognized cost expected to be recognized over a weighted-average period (in years) | 2 years 1 month 6 days | ||||
Stock-based compensation | $ 2 | [1] | $ 4 | [2] | |
Nonvested Stock Awards [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period of share-based payment award | 1 year | ||||
Nonvested Stock Awards [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period of share-based payment award | 3 years | ||||
Cash-settled Nonvested Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period of share-based payment award | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 92,000 | ||||
Stock-based compensation | $ 1 | 1 | |||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation | $ 0 | $ 1 | |||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period of share-based payment award | 3 years | ||||
Grants of share-based payment awards in period | 51,000 | 78,000 | |||
Total unrecognized compensation costs | $ 8 | ||||
Unrecognized cost expected to be recognized over a weighted-average period (in years) | 2 years 6 months | ||||
Stock-based compensation | [1] | $ 1 | |||
[1] | Included $1 million of expense related to cash-settled nonvested restricted stock awards and zero | ||||
[2] | Included $1 million of expense related to cash-settled nonvested restricted stock awards and $2 million of income related to cash-settled performance units during the three months ended December 31, 2018. |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Revenue From Contracts With Customers [Line Items] | ||
Maximum cash collection period from customer | 60 days | |
Trade Receivable [Member] | ||
Revenue From Contracts With Customers [Line Items] | ||
Trade receivables | $ 409 | $ 435 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disaggregation Of Revenue [Line Items] | |||
Sales | $ 533 | $ 576 | |
Specialty Ingredients [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 505 | 553 | |
Intermediates and Solvents [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 28 | 23 | |
North America [Member] | Specialty Ingredients [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 198 | 219 | |
North America [Member] | Intermediates and Solvents [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 15 | 11 | |
Europe [Member] | Specialty Ingredients [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 161 | 170 | |
Europe [Member] | Intermediates and Solvents [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 5 | 5 | |
Asia Pacific [Member] | Specialty Ingredients [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 103 | 116 | |
Asia Pacific [Member] | Intermediates and Solvents [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 7 | 6 | |
Latin America & Other [Member] | Specialty Ingredients [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 43 | 48 | |
Latin America & Other [Member] | Intermediates and Solvents [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 1 | 1 | |
Cellulosics [Member] | Specialty Ingredients [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 178 | 189 | |
Poly-vinyl pyrrolidones [Member] | Specialty Ingredients [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 93 | 95 | |
Adhesives [Member] | Specialty Ingredients [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 74 | 82 | |
Actives [Member] | Specialty Ingredients [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 37 | 37 | |
Vinyl Ethers [Member] | Specialty Ingredients [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 20 | 24 | |
Pharmachem [Member] | Specialty Ingredients [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 40 | 59 | |
Other [Member] | Specialty Ingredients [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | [1] | 63 | 67 |
Derivatives [Member] | Intermediates and Solvents [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 23 | 20 | |
Butanediol [Member] | Intermediates and Solvents [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | $ 5 | $ 3 | |
[1] | Other includes no product category in excess of 10% of sales |
Reportable Segment Informatio_2
Reportable Segment Information - Additional Information (Details) - ReportableSegment | Jul. 01, 2018 | Dec. 31, 2019 |
Segment Reporting [Abstract] | ||
Number of reportable segments | 2 | 2 |
Reportable Segment Informatio_3
Reportable Segment Information - Summary of Financial Information for Each Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 533 | $ 576 |
Operating Income (Loss) | 17 | (7) |
Specialty Ingredients [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 505 | 553 |
Operating Income (Loss) | 44 | 26 |
Intermediates and Solvents [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 28 | 23 |
Operating Income (Loss) | (12) | |
Unallocated and other [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating Income (Loss) | $ (15) | $ (33) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Jan. 31, 2020USD ($) | Jan. 31, 2020USD ($) | Dec. 31, 2019 | Jan. 31, 2020EUR (€) |
Subsequent Event [Line Items] | ||||
Maximum consolidated leverage ratio | 4.5 | |||
Minimum required consolidated interest coverage ratio | 3 | |||
Notes due 2022 [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 4.75% | |||
Debt instrument, maturity year | 2022 | |||
Notes due 2043 [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 6.875% | |||
Debt instrument, maturity year | 2043 | |||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Maximum consolidated leverage ratio | 4 | 4 | 4 | |
Minimum required consolidated interest coverage ratio | 3 | 3 | 3 | |
Subsequent Event [Member] | Minimum [Member] | ||||
Subsequent Event [Line Items] | ||||
Accelerated amortization of debt issuance costs, accretion on debt discounts and premiums and bond tender premium | $ 60,000,000 | $ 60,000,000 | ||
Subsequent Event [Member] | Senior Unsecured Notes Due 2028 [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 2.00% | 2.00% | 2.00% | |
Aggregate principal amount | € | € 500,000,000 | |||
Subsequent Event [Member] | Notes due 2022 [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 4.75% | 4.75% | 4.75% | |
Debt instrument, maturity year | 2022 | |||
Early settlement of principal amount | $ 671,000,000 | |||
Subsequent Event [Member] | Notes due 2022 [Member] | Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregate purchase price | $ 712,000,000 | $ 712,000,000 | ||
Subsequent Event [Member] | Notes due 2043 [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 6.875% | 6.875% | 6.875% | |
Debt instrument, maturity year | 2043 | |||
Early settlement of principal amount | $ 92,000,000 | |||
Subsequent Event [Member] | Notes due 2043 [Member] | Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregate purchase price | $ 113,000,000 | $ 113,000,000 | ||
Subsequent Event [Member] | Debentures due 2027 [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 6.60% | 6.60% | 6.60% | |
Debt instrument, maturity year | 2027 | |||
Subsequent Event [Member] | Debentures due 2027 [Member] | Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Early settlement of principal amount | $ 1,000,000 | |||
Aggregate purchase price | $ 113,000,000 | $ 113,000,000 | ||
Subsequent Event [Member] | Junior Subordinated Debentures due 2029 [Member] | ||||
Subsequent Event [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 6.50% | 6.50% | 6.50% | |
Debt instrument, maturity year | 2029 | |||
Early settlement of principal amount | $ 3,000,000 | |||
Subsequent Event [Member] | Junior Subordinated Debentures due 2029 [Member] | Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregate purchase price | 113,000,000 | $ 113,000,000 | ||
Unsecured Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Unsecured line of credit | 600,000,000 | $ 600,000,000 | ||
Debt instrument, term | 5 years | |||
Unsecured Delayed Draw Term Loan Facility [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Unsecured line of credit | $ 250,000,000 | $ 250,000,000 | ||
Debt instrument, term | 5 years |