Document And Entity Information
Document And Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 30, 2023 | Oct. 31, 2023 | Mar. 31, 2023 | |
Cover [Abstract] | |||
Entity Registrant Name | ASHLAND INC. | ||
Entity Central Index Key | 0001674862 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Public Float | $ 5.4 | ||
Entity Common Stock, Shares Outstanding | 51,259,852 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ASH | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2023 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Security Exchange Name | NYSE | ||
Entity File Number | 333-211719 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 81-2587835 | ||
Entity Address, Address Line One | 8145 Blazer Drive | ||
Entity Address, City or Town | Wilmington | ||
Entity Address, State or Province | DE | ||
Entity Address, Postal Zip Code | 19808 | ||
City Area Code | 302 | ||
Local Phone Number | 995-3000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of Registrant’s Proxy Statement (Proxy Statement) for its 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent described herein. | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Location | Grandview Heights, Ohio | ||
Auditor Firm ID | 42 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Sales | $ 2,191 | $ 2,391 | $ 2,111 |
Cost of sales | 1,523 | 1,561 | 1,441 |
Gross profit | 668 | 830 | 670 |
Selling, general and administrative expense | 365 | 393 | 358 |
Research and development expense | 51 | 55 | 50 |
Intangibles amortization expense - Note G | 93 | 94 | 90 |
Equity and other income | 7 | 3 | 9 |
Income on acquisitions and divestitures, net - Note B | 6 | 42 | 11 |
Operating income | 172 | 333 | 192 |
Net interest and other expense - Note H | 6 | 149 | 56 |
Other net periodic benefit loss (income) - Note L | (6) | 22 | (1) |
Income from continuing operations before income taxes | 160 | 206 | 135 |
Income tax expense (benefit) - Note K | (8) | 25 | (38) |
Income from continuing operations | 168 | 181 | 173 |
Income from discontinued operations, net of income taxes - Note C | 10 | 746 | 47 |
Net income | $ 178 | $ 927 | $ 220 |
Basic earnings per share | |||
Income from continuing operations | $ 3.18 | $ 3.26 | $ 2.85 |
Income from discontinued operations | 0.18 | 13.45 | 0.78 |
Net income | 3.36 | 16.71 | 3.63 |
Diluted earnings per share | |||
Income from continuing operations | 3.13 | 3.2 | 2.82 |
Income from discontinued operations | 0.18 | 13.21 | 0.77 |
Net income | $ 3.31 | $ 16.41 | $ 3.59 |
COMPREHENSIVE INCOME | |||
Net income | $ 178 | $ 927 | $ 220 |
Other comprehensive income (loss), net of tax | |||
Unrealized translation gain (loss) | 72 | (197) | 7 |
Unrealized gain (loss) on commodity hedges | (6) | (1) | 4 |
Pension and postretirement obligation adjustment | 0 | 1 | 0 |
Other comprehensive income (loss) | 66 | (197) | 11 |
Comprehensive income | $ 244 | $ 730 | $ 231 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | |
Current assets | |||
Cash and cash equivalents | $ 417 | $ 646 | |
Accounts receivable - Notes A and H | [1] | 338 | 402 |
Inventories - Note A | 626 | 629 | |
Other assets | 125 | 91 | |
Total current assets | 1,506 | 1,768 | |
Property, plant and equipment - Note F | |||
Cost | 3,211 | 3,050 | |
Accumulated depreciation | 1,838 | 1,712 | |
Net property, plant and equipment | 1,373 | 1,338 | |
Goodwill - Note G | 1,362 | 1,312 | |
Intangibles - Note G | 886 | 963 | |
Operating lease assets, net - Note J | 122 | 107 | |
Restricted investments - Note E | 290 | 313 | |
Asbestos insurance receivable - Notes A and M | [2] | 127 | 138 |
Deferred income taxes - Note K | 22 | 20 | |
Other assets - Note I | 251 | 254 | |
Total noncurrent assets | 4,433 | 4,445 | |
Total assets | 5,939 | 6,213 | |
Current liabilities | |||
Short-term debt | 16 | 0 | |
Current portion of long-term debt | 0 | 0 | |
Trade and other payables | 210 | 265 | |
Accrued expenses and other liabilities | 208 | 269 | |
Current operating lease obligations - Note J | 22 | 19 | |
Total current liabilities | 456 | 553 | |
Noncurrent liabilities | |||
Long-term debt (less debt issuance costs) | 1,314 | 1,270 | |
Asbestos litigation reserve - Note M | 427 | 472 | |
Deferred income taxes - Note K | 148 | 176 | |
Employee benefit obligations - Note L | 100 | 103 | |
Operating lease obligations - Note J | 106 | 94 | |
Other liabilities - Note I | 291 | 325 | |
Total noncurrent liabilities | 2,386 | 2,440 | |
Commitments and contingencies - Notes J and M | |||
Equity - Notes N and O | |||
Common stock, par value $.01 per share, 200 million shares authorized Issued 51 million and 54 million shares in 2023 and 2022 | 1 | 1 | |
Paid-in capital | 4 | 135 | |
Retained earnings | 3,595 | 3,653 | |
Accumulated other comprehensive loss | (503) | (569) | |
Total equity | 3,097 | 3,220 | |
Total liabilities and equity | $ 5,939 | $ 6,213 | |
[1] Accounts receivable includes an allowance for credit losses of $ 3 million and $ 4 million at September 30, 2023 and 2022 , respectively. Asbestos insurance receivable includes an allowance for credit losses of $ 2 million and $ 3 million at September 30, 2023 and 2022 , respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Current assets | ||
Allowance for credit losses on Accounts receivables | $ 3 | $ 4 |
Noncurrent assets | ||
Allowance for credit losses on Asbestos insurance receivable | $ 2 | $ 3 |
Stockholders' Equity | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value per share (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 51,000,000 | 54,000,000 |
Statements of Consolidated Equi
Statements of Consolidated Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | [5] | Common stock [Member] | Paid-in capital [Member] | Retained earnings [Member] | Retained earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | [5] | Accumulated other comprehensive income (loss) [Member] | [1] | |
Balance at Sep. 30, 2020 | $ 3,036 | $ 1 | $ 769 | $ 2,649 | $ (383) | ||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | ||||||||||
Total comprehensive income (loss) | |||||||||||
Net income | $ 220 | 220 | |||||||||
Other comprehensive income (loss) | 11 | 11 | |||||||||
Dividends | (71) | (71) | |||||||||
Compensation expense and common shares issued under stock incentive and other plans | [2],[3] | 8 | 8 | ||||||||
Repurchase of common stock | [4] | (450) | (450) | ||||||||
Balance at Sep. 30, 2021 | 2,752 | $ (2) | 1 | 327 | 2,796 | $ (2) | (372) | ||||
Total comprehensive income (loss) | |||||||||||
Net income | 927 | 927 | |||||||||
Other comprehensive income (loss) | (197) | (197) | |||||||||
Dividends | (70) | (70) | |||||||||
Compensation expense and common shares issued under stock incentive and other plans | [2],[3] | 8 | 8 | ||||||||
Repurchase of common stock | [4] | (200) | (200) | ||||||||
Balance at Sep. 30, 2022 | 3,220 | 1 | 135 | 3,653 | (569) | ||||||
Total comprehensive income (loss) | |||||||||||
Net income | 178 | 178 | |||||||||
Other comprehensive income (loss) | 66 | 66 | |||||||||
Dividends | (76) | (76) | |||||||||
Compensation expense and common shares issued under stock incentive and other plans | [2],[3] | 12 | 12 | ||||||||
Repurchase of common stock | [4],[6] | (303) | (143) | (160) | |||||||
Balance at Sep. 30, 2023 | $ 3,097 | $ 1 | $ 4 | $ 3,595 | $ (503) | ||||||
[1] At September 30, 2023 and 2022 , the net of tax accumulated other comprehensive loss of $ 503 million and $ 569 million, respectively, was comprised of net unrealized translation losses of $ 499 million and $ 571 million, respectively, unrecognized prior service costs as a result of certain employee benefit plan amendments of $ 1 million and $ 1 million, respectively, and unrealized losses on commodity hedges of $ 3 million and unrealized gains on commodity hedges of $ 3 million, respectively. Common shares issued were 193,767 , 168,270 , and 183,281 for 2023, 2022 and 2021 , respectively. Includes income tax expense resulting from the exercise of stock appreciation rights of zero in 2023 and 2022 and $ 1 million in 2021 . Also includes a benefit of $ 11 million, $ 9 million and $ 7 million for 2023, 2022 and 2021, respectively, for stock based compensation employee withholding taxes paid in cash. Common shares repurchased were 3,082,928 , 2,853,312 , and 3,922,423 for 2023, 2022 and 2021, respectively. Represents the cumulative-effect adjustment related to the adoption of the new guidance related to the measurement of credit losses on financial instruments during fiscal 2021. See Note A for more information. Includes $ 3 million of accrued excise taxes on stock repurchases for 2023. |
Statements of Consolidated Eq_2
Statements of Consolidated Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||||
Dividend per common share | $ 0.385 | $ 0.335 | $ 1.44 | $ 1.27 | $ 1.15 |
Accumulated other comprehensive loss, net of tax | $ 503 | $ 569 | $ 503 | $ 569 | |
Unrecognized prior service costs | 1 | 1 | 1 | 1 | |
Net unrealized translation loss | 499 | 571 | 499 | 571 | |
Unrealized gains on commodity hedges | $ (3) | $ 3 | (3) | 3 | |
Income tax benefits resulting from the exercise of stock options | 0 | 0 | $ 1 | ||
Benefit from stock based compensation employee withholding taxes paid | $ 11 | $ 9 | $ 7 | ||
Common shares issued (in shares) | 193,767 | 168,270 | 183,281 | ||
Common shares repurchased (in shares) | 3,082,928 | 2,853,312 | 3,922,423 | ||
Excise taxes on stock repurchase accrued | $ 3 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Cash flows provided (used) by operating activities from continuing operations | ||||
Net income | $ 178 | $ 927 | $ 220 | |
Income from discontinued operations, net of income taxes | (10) | (746) | (47) | |
Adjustments to reconcile income from continuing operations to cash flows from operating activities | ||||
Depreciation and amortization | 243 | 241 | 244 | |
Original issue discount and debt issuance cost amortization | 6 | 7 | 7 | |
Deferred income taxes | (32) | (35) | (26) | |
Distributions from equity affiliates | 0 | 0 | 1 | |
Gain from sales of property and equipment | (1) | 0 | (4) | |
Stock based compensation expense - Note O | 22 | 18 | 15 | |
Excess tax benefits on stock based compensation | 2 | 1 | 2 | |
Loss on early retirement of debt | 0 | 0 | 16 | |
Loss (income) from restricted investments | (43) | 86 | (33) | |
Income on acquisitions and divestitures, net - Notes B | (7) | (42) | (15) | |
Asset impairments | 4 | 0 | 13 | |
Pension contributions | (8) | (5) | (8) | |
Loss (gain) on pension and other postretirement plan remeasurements | (2) | (22) | 1 | |
Change in operating assets and liabilities | [1] | (58) | (237) | 80 |
Total cash flows provided by operating activities from continuing operations | 294 | 193 | 466 | |
Cash flows provided (used) by investing activities from continuing operations | ||||
Additions to property, plant and equipment | (170) | (113) | (105) | |
Proceeds from disposal of property, plant and equipment | 11 | 51 | 5 | |
Purchase of operations - net of cash acquired | 0 | 0 | (309) | |
Proceeds from sale or restructuring of operations | 0 | 0 | 14 | |
Proceeds from settlement of company-owned life insurance contracts | 6 | 3 | 91 | |
Company-owned life insurance payments | (5) | (4) | (6) | |
Funds restricted for specific transactions | (9) | (74) | (91) | |
Reimbursement from restricted investments | 58 | 35 | 33 | |
Proceeds from sale of securities | 47 | 87 | 149 | |
Purchase of securities | (47) | (87) | (149) | |
Proceeds from the settlement of derivative instruments | 0 | 0 | 1 | |
Total cash flows used by investing activities from continuing operations | (109) | (102) | (367) | |
Cash flows provided (used) by financing activities from continuing operations | ||||
Proceeds from issuance of long-term debt | 0 | 0 | 450 | |
Repayment of long-term debt | 0 | (250) | (411) | |
Premium on long-term debt repayment | 0 | 0 | (16) | |
Proceeds from (repayment of) short-term debt | 16 | (365) | 84 | |
Repurchase of common stock | (300) | (200) | (450) | |
Debt issuance costs | 0 | (2) | (6) | |
Cash dividends paid | (76) | (70) | (70) | |
Stock based compensation employee withholding taxes paid in cash | (11) | (9) | (7) | |
Total cash flows used by financing activities from continuing operations | (371) | (896) | (426) | |
Cash used by continuing operations | (186) | (805) | (327) | |
Cash provided (used) by discontinued operations | ||||
Operating cash flows | (51) | (406) | 94 | |
Investing cash flows | 0 | 1,658 | (14) | |
Total cash provided (used) by discontinued operations | (51) | 1,252 | 80 | |
Effect of currency exchange rate changes on cash and cash equivalents | 8 | (11) | 3 | |
Increase (decrease) in cash and cash equivalents | (229) | 436 | (244) | |
Cash and cash equivalents - beginning of year | 646 | 210 | 454 | |
Cash and cash equivalents - end of year | 417 | 646 | 210 | |
Changes in assets and liabilities | ||||
Accounts receivable | 58 | (23) | 72 | |
Inventories | (7) | (141) | 41 | |
Trade and other payables | (112) | 34 | 3 | |
Other assets and liabilities | 3 | (107) | (36) | |
Change in operating assets and liabilities | [1] | (58) | (237) | 80 |
Supplemental disclosures | ||||
Interest paid | 53 | 56 | 62 | |
Income taxes paid (including discontinued operations) | $ 63 | $ 406 | $ 1 | |
[1] Excludes changes resulting from operations acquired or sold. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies | NOTE A – SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation and basis of presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and U.S. Securities and Exchange Commission (SEC) regulations. The Consolidated Financial Statements include the accounts of Ashland Inc. (Ashland) and its majority owned subsidiaries and, when applicable, entities for which Ashland has a controlling financial interest or is the primary beneficiary. Investments in joint ventures and 20 % to 50 % owned affiliates where Ashland has the ability to exert significant influence are accounted for under the equity method. Ashland has no significant equity method investments as of September 30, 2023. All intercompany transactions and balances have been eliminated. Ashland is comprised of the following reportable segments: Life Sciences, Personal Care, Specialty Additives and Intermediates. Unallocated and Other includes corporate governance activities and certain legacy matters. See Note Q for more information. Use of estimates, risks and uncertainties The preparation of Ashland’s 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, environmental remediation, asbestos litigation, the accounting for goodwill and other indefinite-lived intangible assets and income taxes. 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, income taxes or other matters. Cash and cash equivalents Cash and cash equivalents include cash on hand and highly liquid investments maturing within three months after purchase. Allowance for credit losses on accounts receivable Ashland records an allowance for credit losses using the expected credit loss model. Ashland estimates expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. When measuring expected credit losses, Ashland pools assets with similar country risk and credit risk characteristics. Each period the allowance for credit losses is adjusted through earnings to reflect expected credit losses over the remaining lives of the assets. No significant credit losses were incurred in 2023, 2022 and 2021. A progression of activity in the allowance for credit losses is presented in the following table. (In millions) 2023 2022 2021 Allowance for credit losses - beginning of year $ 4 $ 3 $ 3 Adjustments to allowances for credit losses 1 2 1 Reserves utilized ( 2 ) ( 1 ) ( 1 ) Allowance for credit losses - end of year $ 3 $ 4 $ 3 Inventories Inventories are carried at the lower of cost or net realizable value. Inventories are stated at cost using the weighted-average cost method. This method values inventories using average costs for raw materials and most recent production costs for labor and overhead. The following summarizes Ashland’s inventories as of the Consolidated Balance Sheet dates. (In millions) 2023 2022 Finished products $ 390 $ 391 Raw materials, supplies and work in process 236 238 $ 626 $ 629 A progression of activity in the inventory reserves for obsolete and slow moving inventories, which reduce the amounts of finished products and raw materials, supplies and work in process reported, is presented in the following table. (In millions) 2023 2022 2021 Inventory reserves - beginning of year $ 13 $ 13 $ 16 Adjustments to inventory reserves 11 3 2 Reserves utilized ( 3 ) ( 3 ) ( 5 ) Inventory reserves - end of year $ 21 $ 13 $ 13 Property, plant and equipment The cost of property, plant and equipment is depreciated by the straight-line method over the estimated useful lives of the assets. Buildings are depreciated principally over 12 to 35 years and machinery and equipment principally over 2 to 25 years . Such costs are periodically reviewed for recoverability when impairment indicators are present. Such indicators include, among other factors, operating losses, unused capacity, market value declines and technological obsolescence. Recorded values of asset groups of property, plant and equipment that are not expected to be recovered through undiscounted future net cash flows are written down to current fair value, which generally is determined from estimated discounted future net cash flows (assets held for use) or net realizable value (assets held for sale). See Note F for additional information related to property, plant and equipment. Leasing arrangements Ashland determines if an arrangement contains a lease at inception based on whether or not it has the right to control the asset during the contract period and other facts and circumstances. Operating lease right-of-use assets represent Ashland’s right to use an underlying asset for the lease term and lease liabilities represent Ashland’s obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a lease term of 12 months or less at inception are not recorded within the Consolidated Balance Sheet and are expensed on a straight-line basis over the lease term within the Statements of Consolidated Comprehensive Income (Loss). The lease term is determined by assuming the exercise of renewal options that are reasonably certain. As most leases do not provide an implicit interest rate, Ashland used its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. When contracts contain lease and non-lease components, Ashland generally accounts for both components as a single lease component. For additional information on leasing arrangements, see Note J. Goodwill and other intangibles Ashland tests goodwill and other indefinite-lived intangible assets for impairment annually as of July 1 and when events and circumstances indicate an impairment may have occurred. Ashland reviews goodwill for impairment based on its identified reporting units. Ashland determined that its reporting units are Life Sciences, Personal Care, Specialty Additives and Intermediates. Ashland tests goodwill for impairment by comparing the carrying value to the estimated fair value of its reporting units. If the fair value of the reporting unit is lower than its carrying amount, goodwill is written down for the amount by which the carrying amount exceeds the fair value. However, the loss recognized cannot exceed the carrying amount of goodwill. Using the quantitative approach, Ashland makes various estimates and assumptions in determining the estimated fair value of each reporting unit using a combination of discounted cash flow models and valuations based on earnings multiples for guideline public companies in each reporting unit’s industry peer group, when externally quoted market prices are not readily available. Discounted cash flow models are reliant on various assumptions, including projected business results, long-term growth factors and weighted-average cost of capital. Management judgment is involved in estimating these variables, and they include uncertainties since they are forecasting future events. Ashland performs sensitivity analyses by using a range of inputs to confirm the reasonableness of the long-term growth rate and weighted average cost of capital. Additionally, Ashland compares the indicated equity value to Ashland’s market capitalization and evaluates the resulting implied control premium/discount to determine if the estimated enterprise value is reasonable. Ashland tests at least annually its indefinite-lived intangible assets, principally trademarks and trade names. If the carrying value of an individual indefinite-lived intangible asset exceeds its fair value, such individual indefinite-lived intangible asset is written down by an amount equal to such excess. Ashland performs a quantitative impairment test for the trademarks and trade names during which, trademarks and trade names are valued using a “relief-from-royalty” valuation method compared to the carrying value. Assumptions inherent in the valuation methodologies include, but are not limited to, such estimates as future projected business results, growth rates, the weighted-average cost of capital for a market participant, and royalty rates. Finite-lived intangible assets principally consist of certain trademarks and trade names, intellectual property, and customer lists. These intangible assets 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 20 years , intellectual property over 3 to 20 years and customer and supplier relationships over 10 to 24 years . Ashland reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Ashland monitors these changes and events on at least a quarterly basis. The intangibles amortization expense caption within the Statement of Consolidated Comprehensive Income (Loss) includes amortization expense related to 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. For further information on goodwill and other intangible assets, see Note G. Derivative instruments Ashland regularly uses derivative instruments to manage its exposure to fluctuations in foreign currencies and certain commodities. All derivative instruments are recognized as either assets or liabilities on the balance sheet and are measured at fair value. Changes in the fair value of all derivatives are recognized immediately in the Statements of Consolidated Comprehensive Income (Loss) unless the derivative qualifies as a hedge of future cash flows or a hedge of a net investment in a foreign operation. Gains and losses related to an instrument that qualifies for hedge accounting are either recognized in the Statements of Consolidated Comprehensive Income (Loss) immediately to offset the gain or loss on the hedged item, or deferred and recorded in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income and subsequently recognized in the Statements of Consolidated Comprehensive Income (Loss) when the hedged item affects net income. For additional information on derivative instruments, see Note E. Restricted investments During 2015, Ashland placed $ 335 million of insurance proceeds into a renewable annual trust for asbestos (Asbestos trust) that Ashland determined is restricted for the purpose of paying ongoing and future litigation defense and claim settlement costs incurred in conjunction with asbestos claims. As of September 30, 2023 and 2022 , the funds within the Asbestos trust had a balance of $ 243 million and $ 245 million, respectively, and were primarily invested in public equity, U.S. government bonds and investment grade corporate bond investments with a portion maintained in demand deposits. These funds are presented primarily as noncurrent assets within the restricted investments caption of the Consolidated Balance Sheets, with $ 37 million and $ 27 million classified within other current assets in the Consolidated Balance Sheets as of September 30, 2023 and 2022, respectively. During 2021, Ashland established a renewable annual trust for environmental remediation (Environmental trust) that Ashland determined is restricted for ongoing and future environmental remediation and related litigation costs. As of September 30, 2023 and 2022 , the funds within the Environmental trust had a balance of $ 124 million and $ 129 million, respectively, and were primarily invested in public equity, U.S. government bonds and investment grade corporate bond investments with a portion maintained in demand deposits. These funds are presented primarily as noncurrent assets within the restricted investments caption of the Consolidated Balance Sheets, with $ 40 million and $ 34 million classified within other current assets in the Consolidated Balance Sheets as of September 30, 2023 and 2022, respectively. The funds within these trusts are classified as investment securities reported at fair value. Interest income and gains and losses (realized and unrealized) on the investment securities are reported in the net interest and other expense caption in the Statements of Consolidated Comprehensive Income (Loss). See Note E for additional information regarding the fair value of these investments within the trusts. Revenue recognition Ashland’s revenue is measured as the amount of consideration it expects to receive in exchange for transferring goods and is recognized when performance obligations are satisfied under the terms of contracts or purchase orders with customers. Ashland generally utilizes standardized language for the terms of contracts or purchase orders. 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 purchase order, or the amount Ashland expects to receive upon satisfaction of all performance obligations, is determined by reference to the applicable terms. 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 or purchase orders with customers, and nearly all contracts or purchase orders with customers contain a single 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 are not significant and are expensed immediately as the period of performance is generally one year or less. Ashland records credit losses in specific situations when it is determined that the customer is unable to meet its financial obligation. Expense recognition Cost of sales include material and production costs, as well as the costs of inbound and outbound freight, purchasing and receiving, inspection, warehousing, internal transfers and all other distribution network costs. Selling, general and administrative expense includes sales and marketing costs, advertising, customer support, environmental remediation, corporate and divisional administrative and other costs. Advertising costs ($ 2 million in 2023 , $ 2 million in 2022 and $ 1 million in 2021) and research and development costs ( $ 51 million in 2023, $ 55 million in 2022 and $ 50 million in 2021 ) are expensed as incurred. Income taxes Ashland is subject to income taxes in the United States and numerous foreign jurisdictions. The provision for income taxes includes income taxes paid, currently payable or receivable, and deferred taxes. Ashland recognizes the income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Ashland evaluates and adjusts these accruals based on changing facts and circumstances. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities, and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Deferred tax assets are also recognized for the estimated future effects of tax loss and credit carryforwards. The effect on deferred taxes of changes in tax rates is recognized in the period in which the enactment date occurs. Taxes due on future Global Intangible Low-Taxed Income (GILTI) inclusions in U.S. are recognized as a current period expense when incurred. Valuation allowances are established when necessary on a jurisdictional basis to reduce deferred tax assets to the amounts expected to be realized. In the event that the actual outcome of future tax consequences differs from Ashland’s estimates and assumptions due to changes or future events such as tax legislation, geographic mix of earnings, completion of tax audits or earnings repatriation plans, the resulting change to the provision for income taxes could have a material effect on the Statements of Consolidated Comprehensive Income (Loss) and Consolidated Balance Sheets. For additional information on income taxes, see Note K. A progression of activity in the tax valuation allowances is presented in the following table. (In millions) 2023 2022 2021 Tax valuation allowances - beginning of year $ 56 $ 74 $ 75 Adjustments to valuation allowances ( 1 ) ( 19 ) 9 Reserves utilized 1 1 ( 10 ) Tax valuation allowances - end of year $ 56 $ 56 $ 74 Asbestos-related 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. Ashland retained Gnarus Advisors LLC (Gnarus) to assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs given various assumptions. The methodology used to project future asbestos costs is based largely on Ashland’s recent experience, including claim-filing and settlement rates, disease mix, open claims, and litigation defense. Ashland’s claim experience is compared to the results of previously conducted epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, Gnarus estimates a range of the number of future claims that may be filed, as well as the related costs that may be incurred in resolving those claims. Ashland records the amount it believes to be the best estimate of future payments for litigation defense and claim settlement costs using the results of a non-inflated, non-discounted approximate 40-year model. For additional information on asbestos-related litigation, see Note M. Environmental remediation Accruals for environmental remediation are recognized when it is probable a liability has been incurred and the amount of that liability can be reasonably estimated. Such costs are charged to expense if they relate to the remediation of conditions caused by past operations or are not expected to mitigate or prevent contamination from future operations. Accruals for environmental remediation reflect Ashland's estimates of the most likely costs that will be incurred over an extended period of time to remediate identified conditions for which costs are reasonably estimatible and probable of being incurred, without regard to any third-party recoveries, and are regularly adjusted as environmental assessments and remediation efforts continue. For additional information on environmental remediation, see Note M. Pension and other postretirement benefits The funded status of Ashland’s pension and other postretirement benefit plans is recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at September 30, the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (PBO) and for the other postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation (APBO). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The measurement of the benefit obligation is based on Ashland’s estimates and actuarial valuations. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain assumptions that require judgment, including, but not limited to, estimates of discount rates, rate of compensation increases, interest rates and mortality rates. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. For additional information regarding plan assumptions and the current financial position of the pension and other postretirement plans, see Note L. Ashland recognizes the change in the fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for a remeasurement. The remaining components of pension and other postretirement benefits expense are recorded ratably on a quarterly basis. Pension and other postretirement benefits adjustments charged directly to cost of sales that are applicable to inactive participants are excluded from inventoriable costs. The service cost component of pension and other postretirement benefits costs is allocated to each reportable segment; while the remaining components of pension and other postretirement benefits costs are recorded within the other net periodic benefit loss (income) caption on the Statements of Consolidated Comprehensive Income (Loss). Foreign currency translation Subsidiaries outside the United States primarily use the local currency as the functional currency. Upon consolidation, the results of operations of the subsidiaries and affiliates whose functional currency is other than the U.S. dollar are translated into U.S. dollars at the average exchange rates for the year while assets and liabilities are translated at year-end exchange rates. Adjustments to translate assets and liabilities into U.S. dollars are recorded in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income (loss) and are included in net earnings only upon sale or substantial liquidation of the underlying foreign subsidiary or affiliated company. Stock incentive plans Ashland recognizes compensation expense for stock incentive plans awarded to key employees and directors over the requisite service period based upon the grant-date fair value. Stock incentive awards are primarily in the form of restricted stock and restricted stock units, performance shares and other non-vested stock awards. Ashland utilizes several industry accepted valuation models to determine grant-date fair value. For further information concerning stock incentive plans, see Note O. Earnings per share The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Earnings per share are reported under the treasury stock method. SARs and warrants for each reported year whose grant price was greater than the market price of Ashland Common Stock at the end of each fiscal year were not included in the computation of earnings per share from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was 1.2 million for 2023, 2022 and 2021 . The majority of these shares are for warrants with a strike price of $ 128.66 . (In millions except per share data) 2023 2022 2021 Numerator Numerator for basic and diluted EPS - Income (loss) from continuing operations, net of tax $ 168 $ 181 $ 173 Denominator Denominator for basic EPS - Weighted-average common shares outstanding 53 55 60 Share based awards convertible to common shares 1 1 1 Denominator for diluted EPS - Adjusted weighted - average shares and assumed conversions 54 56 61 EPS from continuing operations Basic $ 3.18 $ 3.26 $ 2.85 Diluted $ 3.13 $ 3.20 $ 2.82 Other accounting pronouncements In December 2022, the Financial Accounting Standards Board (FASB) issued ASU No. 2022-06 "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." The ASU was issued to provide an update on ASU 2020-04 and ASU 2021-01 that were issued in March 2020 and January 2021, respectively, which provided practical expedients simplifying the U.S. GAAP treatment of certain reference rate related contract modifications including hedging relationships and other agreements. Specifically, the guidance eased the accounting burden of the modification of the reference rate of contracts where the underlying reference rate was the London Interbank Offered Rate (LIBOR). With the issuance of ASU 2022-06, the sunset date of Topic 848 has been deferred from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. This guidance did not have a material impact on Ashland's Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13 "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The ASU 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. This guidance became effective for Ashland on October 1, 2020 . As a result, Ashland recorded a $ 3 million increase in its allowance for credit losses, primarily related to asbestos receivables, and a $ 2 million decrease to retained earnings, net of tax, reflecting the cumulative effect on retained earnings. |
Divestitures
Divestitures | 12 Months Ended |
Sep. 30, 2023 | |
Divestitures [Abstract] | |
Divestitures | NOTE B – DIVESTITURES Performance Adhesives On February 28, 2022, Ashland completed the sale of its Performance Adhesives business to Arkema, a French société anonyme. Proceeds from the sale were approximately $ 1.7 billion, net of transaction costs. Ashland recognized a $ 726 million after-tax gain on sale within the Income (loss) from Discontinued Operations caption of the Statements of Consolidated Comprehensive Income (Loss) for the twelve months ended September 30, 2022. The transaction represented a strategic shift in Ashland’s business and had a major effect on Ashland’s operations and financial results. Accordingly, the operating results and cash flows related to Performance Adhesives have been reflected as discontinued operations in the Statements of Consolidated Comprehensive Income (Loss) and Statements of Consolidated Cash Flows, while the assets and liabilities that were sold have been classified within the Consolidated Balance Sheets as held for sale in periods preceding the sale. See Note C for the results of operations for Performance Adhesives for all periods presented. Certain indirect corporate costs included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) that were previously allocated to the Performance Adhesives segment do not qualify for classification within discontinued operations and are now reported as selling, general and administrative expense within continuing operations on a consolidated basis and within the Unallocated and other segment. These costs were zero , $ 9 million and $ 15 million during the twelve months ended September 30, 2023, 2022 and 2021 respectively. Other manufacturing facility sales During 2023, Ashland entered into and completed a definitive sale agreement to sell a Specialty Additives manufacturing facility for less than $ 1 million. The net asset value related to this site was $ 4 million at September 30, 2022. Ashland recorded a $ 4 million impairment charge within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) during the twelve months ended September 30, 2023 related to this site. During 2020, Ashland entered into a definitive sale agreement to sell a Specialty Additives facility, the assets and liabilities of which were classified as held for sale as of September 30, 2020. During 2021, Ashland completed the sale of the Specialty Additives facility. Net proceeds received from the sale were approximately $ 20 million ($ 14 million of which was received during the twelve months September 30, 2021). The company recognized a pre-tax gain of $ 14 million recorded within the income on acquisition and divestitures, net caption in the Statements of Consolidated Comprehensive Income (Loss) for the twelve months ended September 30, 2021. Ashland determined that these transactions did not qualify for discontinued operations treatment since neither represented a strategic shift that had or will have a major effect on Ashland’s operations and financial results. Other corporate assets During 2023, Ashland completed the sale of two excess land properties with a net book value of $ 2 million. Ashland received net proceeds of approximately $ 9 million and recorded a pre-tax gain of $ 7 million within the income on acquisitions and divestitures caption within the Statement of Consolidated Comprehensive Income (Loss) for 2023. During 2022, Ashland completed the sale of two excess land properties with a net book value of $ 8 million as of September 30, 2021. Ashland received net proceeds of approximately $ 50 million and recorded pre-tax gain of $ 42 million within the income on acquisitions and divestitures caption within the Statement of Consolidated Comprehensive Income (Loss) for 2022. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Sep. 30, 2023 | |
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 and activities 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. Due to the ongoing assessment of certain matters associated with previous divestitures, subsequent adjustments to these divestitures may continue in future periods in the discontinued operations caption in the Statements of Consolidated Comprehensive Income (Loss). The following divested businesses represent disposal groups that qualified as discontinued operations in previous periods and impacted discontinued operations: • The Performance Adhesives business divested in 2022; • The Composites business and Marl facility (Composites/Marl facility) divested in 2019; • The separation of Valvoline Inc. (Valvoline) business divested in 2017; • The sale of Ashland Water Technologies (Water Technologies) business divested in 2014; and • The sale of the Ashland Distribution (Distribution) business divested in 2011. Additionally, Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result primarily from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation (Riley), a former subsidiary, which qualified as a discontinued operation and from the acquisition during 2009 of Hercules LLC (formerly Hercules Incorporated), an indirect wholly-owned subsidiary of Ashland. Adjustments to the recorded litigation reserves and related insurance receivables are recorded within the discontinued operations caption. See Note M for more information related to the adjustments on asbestos liabilities and receivables. Components of amounts reflected in the Statements of Consolidated Comprehensive Income (Loss) related to discontinued operations are presented in the following table for each of the years ended September 30. (In millions) 2023 2022 2021 Income (loss) from discontinued operations Performance Adhesives $ ( 1 ) $ 33 $ 83 Composites/Marl facility ( 1 ) — ( 1 ) Valvoline 15 ( 7 ) ( 33 ) Water Technologies — 5 ( 4 ) Distribution ( 5 ) ( 9 ) ( 6 ) Asbestos-related litigation ( 6 ) ( 17 ) ( 11 ) Gain on disposal of discontinued operations Performance Adhesives — 1,063 — Composites/Marl facility — — ( 4 ) Water Technologies — — 1 Income before taxes 2 1,068 25 Income tax benefit (expense) Benefit (expense) related to income (loss) from discontinued operations Performance Adhesives 6 8 ( 19 ) Composites/Marl facility — 2 1 Valvoline — 1 36 Water Technologies — ( 1 ) 1 Distribution 1 2 1 Asbestos-related litigation 1 3 2 Expense related to gain on disposal of discontinued operations Performance Adhesives — ( 337 ) — Income from discontinued operations, net of income taxes $ 10 $ 746 $ 47 Performance Adhesives divestiture The following table presents a reconciliation of the captions within Ashland’s Statements of Consolidated Income (Loss) for the income from discontinued operations attributable to the Performance Adhesives segment for each of the years ended September 30. (In millions) 2022 2021 Income(loss) from discontinued operations attributable to Performance Adhesives Sales $ 171 $ 372 Cost of sales ( 122 ) ( 256 ) Selling, general and administrative expense ( 12 ) ( 25 ) Research and development expense ( 4 ) ( 8 ) Intangible amortization expense — ( 1 ) Pretax operating income of discontinued operations 33 82 Other net periodic benefit loss (income) — ( 1 ) Pretax income of discontinued operations 33 83 Income tax expense 8 ( 19 ) Income from discontinued operations $ 41 $ 64 |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | NOTE D – RESTRUCTURING ACTIVITIES Restructuring activities Ashland periodically implements company-wide and targeted restructuring programs related to acquisitions, divestitures and other cost reduction programs in order to enhance profitability through streamlined operations and an improved overall cost structure. Fiscal 2023 restructuring costs During fiscal 2023, Ashland implemented targeted organizational restructuring actions to reduce costs. Ashland recorded severance expense of $ 5 million during 2023 within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss). As of September 30, 2023 , the severance reserve associated with this program was $ 3 million within accrued expenses and other liabilities in the Consolidated Balance Sheets. Fiscal 2023 Life Sciences restructuring program During 2023, Ashland implemented a restructuring program within the Nutraceuticals business of the Life Sciences segment. Ashland recorded severance expense of $ 1 million during 2023 within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss). As of September 30, 2023 , the severance reserve associated with this program was zero . Fiscal 2020 restructuring costs During 2022 and 2021, Ashland realized severance income of $ 2 million and $ 1 million, respectively, attributable to executive management changes and business management changes within the organization initiated in fiscal 2020 within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss). As of September 30, 2023 and 2022 the severance reserve associated with this transition was zero and $ 1 million, respectively. The following table details at September 30, 2023, the amount of restructuring severance reserves related to this program. The severance reserves were primarily recorded within accrued expenses and other liabilities in the Consolidated Balance Sheet as of September 30, 2022. (In millions) Severance costs Balance as of September 30, 2021 $ 6 Restructuring reserve ( 2 ) Utilization (cash paid) ( 3 ) Balance as of September 30, 2022 $ 1 Restructuring reserve ( 1 ) Utilization (cash paid) — Balance as of September 30, 2023 $ — Impairments During 2021, Ashland incurred $ 3 million of asset impairment charges related to restructuring activities at a plant originating from the shutdown of a product line recorded within the cost of sales caption of the Statements of Consolidated Comprehensive Income (Loss). In addition, Ashland incurred a $ 10 million capital project impairment recorded within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss). |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2023 | |
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 through the use of 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 September 30, 2023. For additional information on fair value hierarchy measurements of pension plan asset holdings, see Note L. Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying Total fair assets inputs inputs (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 417 $ 417 $ 417 $ — $ — Restricted investments (a) (b) 367 367 367 — — Investments of captive insurance company (c) 6 6 6 — — Foreign currency derivatives (d) 1 1 — 1 — Total assets at fair value $ 791 $ 791 $ 790 $ 1 $ — Liabilities Foreign currency derivatives (e) $ 1 $ 1 $ — $ 1 $ — Commodity derivatives (e) 4 4 — 4 — Total liabilities at fair value $ 5 $ 5 $ — $ 5 $ — (a) Included in restricted investments and $ 77 million within other current assets in the Consolidated Balance Sheets. (b) Includes $ 243 million related to the Asbestos trust and $ 124 million related to the Environmental trust. See Note A for additional details. (c) Included in other noncurrent assets in the Consolidated Balance Sheets. (d) Included in accounts receivable in the Consolidated Balance Sheets. (e) Included in accrued expenses and other liabilities in the Consolidated Balance Sheets. The following table summarizes financial instruments subject to recurring fair value measurements as of September 30, 2022. Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying Total fair assets inputs inputs (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 646 $ 646 $ 646 $ — $ — Restricted investments (a) (b) 374 374 374 — — Investments of captive insurance company (c) 9 9 9 — — Foreign currency derivatives 1 1 — 1 — Commodity derivatives (d) 4 4 — 4 — Total assets at fair value $ 1,034 $ 1,034 $ 1,029 $ 5 $ — Liabilities Foreign currency derivatives (e) $ 9 $ 9 $ — $ 9 $ — Commodity derivatives (e) 1 1 — 1 — Total liabilities at fair value $ 10 $ 10 $ — $ 10 $ — (a) Included in restricted investments and $ 61 million within other current assets in the Consolidated Balance Sheets. (b) Includes $ 245 million related to the Asbestos trust and $ 129 million related to the Environmental trust. See Note A for additional details. (c) Included in other noncurrent assets in the Consolidated Balance Sheets. (d) Included in accounts receivable in the Consolidated Balance Sheets. (e) Included in accrued expenses and other liabilities in the Consolidated Balance Sheets. Restricted investments As discussed in Note A, Ashland maintains certain investments in a company restricted renewable annual trusts for the purpose of paying future asbestos indemnity and defense costs and future environmental remediation and related litigation costs. The financial instruments are designated as investment securities, primarily classified as Level 1 measurements within the fair value hierarchy. These securities were classified primarily as noncurrent restricted investment assets, with $ 77 million and $ 61 million classified within other current assets, in the Consolidated Balance Sheets for the periods ended in September 30, 2023, and 2022, respectively. The following table presents gross unrealized gains and losses for the restricted securities as of September 30, 2023 and 2022: Gross Gross (In millions) Adjusted Cost Unrealized Gain Unrealized Loss Fair Value As of September 30, 2023 Demand deposit $ 12 $ — $ — $ 12 Equity mutual fund 155 24 ( 2 ) 177 Fixed income mutual fund 226 — ( 48 ) 178 Fair value $ 393 $ 24 $ ( 50 ) $ 367 As of September 30, 2022 Demand deposit $ 6 $ — $ — $ 6 Equity mutual fund 186 20 ( 25 ) 181 Fixed income mutual fund 234 — ( 47 ) 187 Fair value $ 426 $ 20 $ ( 72 ) $ 374 The following table presents the investment income, net gains and losses realized, funds restricted for specific transactions, and disbursements related to the investments within the restricted investments portfolio during 2023, 2022 and 2021. (In millions) 2023 2022 2021 Investment income (a) $ 13 $ 16 $ 12 Net gains (losses) (a) 29 ( 102 ) 21 Funds restricted for specific transactions 9 74 91 Disbursements ( 58 ) ( 35 ) ( 33 ) (a) Included in the net interest and other expense caption within 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 of certain assets and liabilities, including short-term intercompany 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 gains and losses recognized during 2023, 2022 and 2021 within the Statements of Consolidated Comprehensive Income (Loss). (In millions) 2023 2022 2021 Foreign currency derivative gains (losses) (a) $ 10 $ ( 40 ) $ 4 (a) Includes a $ 1 million gain reported within the income on acquisitions and divestitures, net caption for fiscal 2021. The following table summarizes the fair values of the outstanding foreign currency derivatives as of September 30, 2023, and 2022 included in accounts receivable and accrued expenses and other liabilities of the Consolidated Balance Sheets. (In millions) 2023 2022 Foreign currency derivative assets $ 1 $ 1 Notional contract values 147 133 Foreign currency derivative liabilities $ 1 $ 9 Notional contract values 103 535 Commodity derivatives To manage its exposure to the market price volatility of natural gas consumed by its U.S. plants during the manufacturing process, Ashland regularly enters into forward contracts that are designated as cash flow hedges. See Note A for more information. The following table summarizes the gains and losses recognized during 2023, 2022, 2021 within the cost of sales caption of the Statements of Consolidated Comprehensive Income (Loss). (In millions) 2023 2022 2021 Commodity derivative gains (losses) $ ( 3 ) $ 10 $ 1 The following table summarizes the fair values of the outstanding commodity derivatives as of September 30, 2023 and 2022 included in accounts receivable and accrued expenses and other liabilities of the Consolidated Balance Sheets. (In millions) 2023 2022 Commodity derivative assets $ — $ 4 Notional contract values 2 13 Commodity derivative liabilities $ 4 $ 1 Notional contract values 16 9 Other financial instruments At September 30, 2023 and 2022 , Ashland’s long-term debt (including the current portion and excluding debt issuance cost discounts) had carrying values of $ 1,327 million and $ 1,284 million, respectively, compared to a fair value of $ 1,160 million and $ 1,102 million, respectively. The fair values of long-term debt are based on quoted market prices. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | NOTE F – PROPERTY, PLANT AND EQUIPMENT The following table describes the various components of property, plant and equipment within the Consolidated Balance Sheets as of September 30, 2023 and 2022. (In millions) 2023 2022 Land $ 146 $ 138 Buildings 467 458 Machinery and equipment 2,371 2,324 Construction in progress 227 130 Total property, plant and equipment (gross) 3,211 3,050 Accumulated depreciation ( 1,838 ) ( 1,712 ) Total property, plant and equipment (net) $ 1,373 $ 1,338 The following table summarizes various property, plant and equipment charges recognized during 2023, 2022, 2021 within the Statements of Consolidated Comprehensive Income. (In millions) 2023 2022 2021 Depreciation $ 150 $ 147 $ 154 Capitalized interest 4 1 2 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | NOTE G – GOODWILL AND OTHER INTANGIBLES Goodwill Ashland performed its annual goodwill impairment test using the quantitative approach as of July 1, 2023, and concluded that the reporting unit fair values for all reporting units exceeded their carrying values. No impairment existed as of that date and no subsequent impairment indicators have been identified. The following is a progression of goodwill by reportable segment for the years ended September 30, 2023 and 2022. (In millions) Life Personal Care (a) Specialty (a) Intermediates (a) Total Balance at September 30, 2021 $ 856 $ 129 $ 445 $ — $ 1,430 Currency translation and other ( 69 ) ( 11 ) ( 38 ) — ( 118 ) Balance at September 30, 2022 787 118 407 — 1,312 Currency translation and other 32 4 14 — 50 Balance at September 30, 2023 $ 819 $ 122 $ 421 $ — $ 1,362 (a) As of September 30, 2023 and 2022, there were accumulated impairme nts of $ 356 million, $ 174 million, and $ 90 million rel ated to the Personal Care, Specialty Additives, and Intermediates reportable segments, respectively. Other intangible assets Intangible assets principally consist of trademarks and trade names, intellectual property and customer and supplier relationships. Intangible assets classified as finite are amortized on a straight-line basis over their estimated useful lives. The cost of trademarks and trade names is amortized principally over 3 to 20 years , intellectual property over 3 to 20 years , and customer and supplier relationships over 10 to 24 years . Ashland performed its annual impairment test for other indefinite lived intangible assets using the quantitative approach as of July 1, 2023 and concluded that the assets fair values exceeded their carrying values. No impairment existed as of that date. Other intangible assets were comprised of the following as of September 30, 2023 and 2022. 2023 2022 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying (In millions) amount amortization amount amount amortization amount Definite-lived intangible assets Trademarks and trade names $ 97 $ ( 43 ) $ 54 $ 95 $ ( 37 ) $ 58 Intellectual property 731 ( 581 ) 150 718 ( 523 ) 195 Customer and supplier relationships 821 ( 417 ) 404 801 ( 369 ) 432 Total definite-lived intangible assets 1,649 ( 1,041 ) 608 1,614 ( 929 ) 685 Indefinite-lived intangible assets Trademarks and trade names 278 — 278 278 — 278 Total intangible assets $ 1,927 $ ( 1,041 ) $ 886 $ 1,892 $ ( 929 ) $ 963 Amortization expense recognized on intangible assets was $ 93 million for 2023 , $ 94 million for 2022 and $ 90 million for 2021, and is included in the intangibles amortization expense caption of the Statements of Consolidated Comprehensive Income (Loss). As of September 30, 2023 , all of Ashland’s intangible assets that had a carrying value were being amortized except for certain trademarks and trade names that have been determined to have indefinite lives. Estimated amortization expense for future periods is $ 80 million in 2024, $ 76 million in 2025, $ 74 million in 2026, $ 52 million in 2027 and $ 50 million in 2028. 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. Goodwill and Other Intangible assets Ashland’s assessment of an impairment on any of these assets classified currently as having indefinite lives, including goodwill, could change in future periods if significant events happen and/or circumstances change that effect the previously mentioned assumptions such as: a significant change in projected business results, a divestiture decision, increase in Ashland’s weighted-average cost of capital rates, decrease in growth rates or assumptions, economic deterioration that is more severe or of a longer duration than anticipated, or another significant economic event. |
Debt
Debt | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | NOTE H – DEBT The following table summarizes Ashland’s current and long-term debt at September 30, 2023 and 2022. (In millions) 2023 2022 3.375 % Senior Notes, due 2031 $ 450 $ 450 2.00 % Senior Notes, due 2028 (Euro 500 million principal) 528 489 6.875 % notes, due 2043 282 282 6.50 % junior subordinated notes, due 2029 64 60 Other (a) 6 ( 11 ) Total debt 1,330 1,270 Short-term debt 16 — Long-term debt (less debt issuance costs) $ 1,314 $ 1,270 (a) Other includes $ 13 million and $ 14 million of debt issuance costs as of September 30, 2023 and 2022 , respectively. The current portion of the long-term debt was zero for both September 30, 2023 and 2022. At September 30, 2023 , Ashland’s total debt had an outstanding principal balance of $ 1,376 million, discounts of $ 33 million and debt issuance costs of $ 13 million. As of September 30, 2023 , Ashland had no long-term debt (excluding debt issuance costs) maturing within the next 3 years, $ 4 million due in fiscal 2027 and $ 528 million in 2028. Credit Agreements and Refinancing Note Issuances During August 2021, Ashland, through one of its subsidiaries, completed the issuance of 3.375 % senior unsecured notes due 2031 with an aggregate principal amount of $ 450 million (the 2031 Notes). The notes are guaranteed on an unsecured basis by Ashland. Ashland used the net proceeds of the offering (after deducting initial purchasers' discounts and other fees and expenses) to redeem its obligations under the existing 4.750 % senior notes due 2022 described below in debt repayments, and to pay fees and expenses associated therewith. Ashland incurred $ 6 million of new debt issuance costs in connection with the 2031 Notes, which is amortized using the effective interest method over the 2031 Notes' term and was included in the net interest and other expense caption of the Statements of Consolidated Comprehensive Income (Loss) during 2021. 2022 Credit Agreement During July 2022, Ashland, through two of its subsidiaries, enacted an amendment to the 2020 credit agreement. The amended credit agreement (the 2022 Credit Agreement) provides for a $ 600 million five-year revolving credit facility (the 2022 Revolving Credit Facility). The 2022 Credit Agreement and the obligations of Ashland Services B.V. under the 2022 Revolving Credit Facility are guaranteed by Ashland. At Ashland’s option, loans issued under the 2022 Credit Agreement will bear interest at (a) in the case of loans denominated in U.S. dollars, either Term SOFR or an alternate base rate and (b) in the case of loans denominated in Euros, EURIBOR, in each case plus the applicable interest rate margin. Loans will initially bear interest at Term SOFR or EURIBOR plus 1.250 % per annum, in the case of Term SOFR borrowings or EURIBOR borrowings, respectively, or at the alternate base rate plus 0.250 % per annum, in the case of alternate base rate borrowings, through and including the date of delivery of a quarterly compliance certificate and thereafter the interest rate will fluctuate between Term SOFR or EURIBOR plus 1.250 % per annum and Term SOFR or EURIBOR plus 1.750 % per annum (or between the alternate base rate plus 0.250 % per annum and the alternate base rate plus 0.750 % per annum), based upon the Consolidated Net Leverage Ratio (as defined in the 2022 Credit Agreement) at such time. Term SOFR borrowings are subject to a credit spread adjustment of 0.10 % per annum. In addition, the Company will initially be required to pay fees of 0.125 % per annum on the daily unused amount of the 2022 Revolving Credit Facility through and including the date of delivery of a quarterly compliance certificate, and thereafter the fee rate will fluctuate between 0.125 % and 0.275 % per annum, based upon the Consolidated Net Leverage Ratio. Borrowings under the 2022 Credit Agreement may be prepaid at any time without premiums. As a result of the amendment of the 2020 Credit Agreement, Ashland recognized a $ 1 million charge for accelerated amortization of previously capitalized debt issuance costs during 2022, which is included in the net interest and other expense caption of the Statements of Consolidated Comprehensive Income (Loss). Ashland also incurred $ 2 million of new debt issuance costs in connection with the 2022 Credit Agreement, of which $ 1 million was expensed immediately during 2022 within the net interest and other expense caption of the Statements of Consolidated Comprehensive Income (Loss). The remaining balance is amortized using the straight-line method. The 2022 Credit Agreement contains financial covenants for leverage and interest coverage ratios akin to those in effect under the 2020 Credit Agreement. The 2022 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. Debt repayments and repurchases Cash repatriation During 2023 and 2022 , Ashland repatriated approximately $ 92 million and $ 250 million, respectively, in cash. In 2022 the repatriation was primarily used to repay existing debt, principally the prepayment of the Term loan A in 2022. 2022 Debt repayments and repurchases 2020 Credit Agreement During 2022, Ashland prepaid its Term loan A principal balance of $ 250 million. Other Debt During 2022, Ashland repaid the outstanding balance on its European short-term loan facility for $ 23 million. 2021 Debt repayments and repurchases Redemption of 4.750% senior notes due 2022 During 2021, Ashland redeemed all of its outstanding 4.750 % senior notes due 2022 (the 2022 Notes), of which approximately $ 411 million were outstanding. Ashland recognized a $ 1 million charge related to accelerated accretion on debt discounts and accelerated amortization of previously capitalized debt issuance costs, which is included in the net interest and other expense caption of the Statements of Consolidated Comprehensive Income (Loss). Total premiums paid for all the tender offers in 2021 noted above were $ 16 million, which is included in the net interest and other expense caption of the Statements of Consolidated Comprehensive Income (Loss). Accounts receivable facilities and off-balance sheet arrangements U.S. accounts receivable sales program On March 17, 2021, a wholly-owned, bankruptcy-remote special purpose entity and consolidated Ashland subsidiary (SPE) entered into an agreement with a group of entities (buyers) to sell certain trade receivables, without recourse beyond the pledged receivables, of two other U.S. based Ashland subsidiaries. Under the agreement, Ashland can transfer whole receivables up to a limit established by the buyer, which was set at $ 125 million between February and October of each year and up to $ 100 million all other times. Ashland’s continuing involvement is limited to servicing the receivables, including billing, collections and remittance of payments to the buyers as well as a limited guarantee on over-collateralization. The arrangement was set to terminate on May 31, 2023. On April 14, 2023, Ashland entered into Second and Third Amendments associated with this current program. As part of this amendment the buyer's limit was reduced to $ 115 million between April and October of each year, and up to $ 100 million at all other times. Additionally, the scheduled termination date was extended from May 31, 2023 to April 14, 2025. Ashland determined that any receivables transferred under this agreement are put presumptively beyond the reach of Ashland and its creditors, even in bankruptcy or other receivership. Ashland received a true sale at law and non-consolidation opinions to support the legal isolation of these receivables. Ashland accounts for the receivables transferred to buyers as sales. Ashland recognizes any gains or losses based on the excess of proceeds received net of buyer’s discounts and fees compared to the carrying value of the assets. Proceeds received, net of buyer’s discounts and fees, are recorded within the operating activities of the Statements of Consolidated Cash Flows. Losses on sale of assets, including related transaction expenses are recorded within the net interest and other expense caption of the Statements of Consolidated Comprehensive Income (Loss). Ashland regularly assesses its servicing obligations and records them as assets or liabilities when appropriate. Ashland also monitors its obligation with regards to the limited guarantee and records the resulting guarantee liability when warranted. When applicable, Ashland discloses the amount of the receivable that serves as over-collateralization as a restricted asset. Ashland recognized a $ 3 million and $ 1 million loss within the Statements of Consolidated Comprehensive Income (Loss) for 2023 and 2022 , respectively, within the net interest and other expense caption associated with sales under the program. Ashland has recorded $ 86 million of sales against the buyer’s limit, which was $ 115 million at September 30, 2023 , compared to $ 110 million of sales against the buyer's limit, which was $ 125 million at September 30, 2022 . Ashland transferred $ 106 million and $ 136 million in receivables to the SPE as of September 30, 2023 and 2022, respectively. Ashland recorded liabilities related to its service obligations and limited guarantee as of September 30, 2023 and 2022 of less than $ 1 million. As of September 30, 2023 and 2022, the year-to-date gross cash proceeds received for receivables transferred and derecognized were $ 217 million and $ 312 million, respectively, of which $ 241 million and $ 315 million were collected by Ashland in our capacity as a servicer of the receivables and remitted to the buyer. The difference between receivables transferred and derecognized versus collected of $ 24 million and $ 3 million for the periods ended September 30, 2023 and 2022, respectively, represents the impact of a net reduction in account receivable sales volume during each year. The prior year period included the impact of a $ 21 million net reduction in accounts receivables sales volume attributable to the Adhesives business sold in 2022. 2018 foreign accounts receivable securitization During July 2018, Ashland entered into a € 115 million accounts receivable securitization facility (the Program) for the transfer by certain subsidiaries of Ashland (the Sellers) directly or indirectly to Ester Finance Titrisation (the Purchaser), a wholly-owned subsidiary of Crédit Agricole Corporate and Investment Bank (the Arranger), of certain receivables and/or collections originated by the Sellers towards certain corporate debtors located in multiple European jurisdictions and denominated in multiple currencies. The Program originally had a term of two years , but was extended to August 2021 in September 2019. During July 2021, the termination date of the Program was extended to July 2023 . During July 2020, the available funding for qualified receivables under the accounts receivable securitization facility decreased from € 115 million to € 100 million. The program was extended on July 12, 2023 to September 30, 2023. Under the Program, each Seller assigns, on an ongoing basis, certain of its accounts receivable and the right to the collections on those accounts receivable to the Purchaser. Under the terms of the Program, the Sellers could, from time to time, obtain up to € 100 million from the Purchaser through the sale of an undivided interest in such accounts receivable and collections. Ashland accounts for the securitization facility as secured borrowings, and the receivables sold pursuant to the facility are included in the Consolidated Balance Sheets as accounts receivable. Fundings under the Program will be repaid as accounts receivable are collected, with new fundings being advanced (through daily advanced purchase price) as new accounts receivable are originated by the Sellers and assigned to the Purchaser, with settlement occurring monthly. Ashland classifies any borrowings under this facility as a short-term debt instrument within the Consolidated Balance Sheets. Once sold to the Purchaser, the accounts receivable and rights to collection described above are separate and distinct from each Sellers’ own assets and are not available to its creditors should such Sellers become insolvent. At September 30, 2023 and 2022, the outstanding amounts of accounts receivable transferred by Ashland to the Purchaser were $ 124 million and $ 162 million, respectively and there were no borrowings (denominated in multiple currencies) under the facility for either period. The weighted-average interest rate for this instrument was 0.5 % for 2023 and 2022, respectively. Other debt At September 30, 2023 and 2022 , Ashland held other debt totaling $ 83 million and $ 63 million, respectively, comprised primarily of the 6.50 % notes due 2029 and other notes. 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 September 30, 2023, Ashland was in compliance with all debt agreement covenant restrictions. The maximum consolidated net leverage ratio permitted under Ashland’s most recent credit agreement (the 2022 Credit Agreement) is 4.0 . The 2022 Credit Agreement defines the consolidated net leverage ratio as the ratio of consolidated indebtedness minus unrestricted cash and cash equivalents to consolidated EBITDA (Covenant Adjusted EBITDA) for any measurement period. In general, the 2022 Credit Agreement defines Covenant Adjusted EBITDA as net income plus consolidated interest charges, taxes, depreciation and amortization expense, fees and expenses related to capital market transactions and proposed or actual acquisitions and divestitures, restructuring and integration charges, certain environmental charges, non-cash stock and equity compensation expense, and any other nonrecurring expenses or losses that do not represent a cash item in such period or any future period; less any non-cash gains or other items increasing net income. In general, consolidated indebtedness includes debt plus all purchase money indebtedness, banker’s acceptances and bank guaranties, deferred purchase price of property or services, attributable indebtedness and guarantees. At September 30, 2023 , Ashland’s calculation of the consolidated net leverage ratio was 1.9 . The minimum required consolidated interest coverage ratio under the 2022 Credit Agreement is 3.0 . The 2022 Credit Agreement defines the consolidated interest coverage ratio as the ratio of Covenant Adjusted EBITDA to consolidated interest charges for any measurement period. At September 30, 2023 , Ashland’s calculation of the consolidated interest coverage ratio was 8.6 . Net interest and other expense (income) (In millions) 2023 2022 2021 Interest expense (a) $ 54 $ 62 $ 69 Interest income ( 12 ) ( 4 ) ( 1 ) Loss on the accounts receivables sale program 3 1 1 Investment securities loss (income) (b) ( 42 ) 86 ( 33 ) Other financing costs (c) 3 4 20 $ 6 $ 149 $ 56 (a) Includes $ 1 million and $ 1 million of accelerated accretion and/or amortization for original issue discounts and debt issuance costs during 2022 and 2021 , respectively. (b) Represents investment loss (income) related to the restricted investments discussed in Note E. (c) Includes costs of $ 16 million related to early redemption premium payments for the 2022 notes during 2021. The following table details the debt issuance cost and original issue discount amortization included in interest expense during 2023, 2022 and 2021. (In millions) 2023 2022 2021 Normal amortization $ 6 $ 6 $ 6 Accelerated amortization (a) — 1 1 Total $ 6 $ 7 $ 7 (a) Fiscal year 2022 includes $ 1 million of accelerated debt issuance costs for the 2020 credit agreement. 2021 includes $ 1 million of accelerated debt issuance cost for the 2022 Notes. |
Other Noncurrent Assets and Lia
Other Noncurrent Assets and Liabilities | 12 Months Ended |
Sep. 30, 2023 | |
Other Noncurrent Assets And Liabilities [Abstract] | |
Other Noncurrent Assets and Liabilities | NOTE I – OTHER NONCURRENT ASSETS AND LIABILITIES The following table provides the components of other noncurrent assets in the Consolidated Balance Sheets as of September 30. (In millions) 2023 2022 Deferred compensation investments $ 87 $ 85 Tax and tax indemnity receivables 6 2 Life insurance policies 76 73 Manufacturing catalyst supplies 24 25 Defined benefit plan assets 17 21 Equity and other unconsolidated investments 3 3 Land use rights 6 6 Environmental insurance receivables 15 17 Debt issuance costs 2 2 Other 15 20 $ 251 $ 254 Deferred compensation investments Deferred compensation investments consist of insurance policies valued at cash surrender value. Gains and losses related to deferred compensation investments are immediately recognized within the selling, general and administrative expense caption on the Statements of Consolidated Comprehensive Income (Loss). These investments had gains of $ 5 million during 2023, losses of $ 2 million during 2022, and gains of $ 10 million during 2021. During 2021, Ashland liquidated $ 90 million of deferred compensation investments to fund the Environmental trust. These cash inflows exclude company-owned life insurance death benefits of $ 6 million, $ 3 million and $ 1 million for 2023, 2022 and 2021, respectively. See Note A for additional details. The following table provides the components of other noncurrent liabilities in the Consolidated Balance Sheets as of September 30. (In millions) 2023 2022 Tax liabilities $ 79 $ 127 Environmental remediation reserves 165 157 Deferred compensation 25 25 Other 22 16 $ 291 $ 325 |
Leasing Arrangements
Leasing Arrangements | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leasing Arrangements | NOTE J – LEASING ARRANGEMENTS Ashland leases certain office buildings, transportation equipment, warehouses and storage facilities, and equipment. Substantially all of Ashland’s leases are operating leases or short-term leases. Real estate leases represented over 85 % of the total lease liability at September 30, 2023 and 2022, respectively. See Note A for additional information related to Ashland’s leasing policies. The components of lease cost recognized within the Statements of Consolidated Comprehensive Income (Loss) were as follows: (In millions) Location 2023 2022 2021 Lease cost: Operating lease cost Selling, General & Administrative $ 13 $ 13 $ 13 Operating lease cost Cost of Sales 15 16 15 Variable lease cost Selling, General & Administrative 4 5 3 Variable lease cost Cost of Sales 6 4 3 Short-term leases Cost of Sales 2 3 3 Total lease cost (a) $ 40 $ 41 $ 37 (a) Includes $ 2 million lease termination fee in fiscal 2022 . The following table summarizes Ashland’s lease assets and liabilities as presented in the Consolidated Balance Sheet at September 30: (In millions) 2023 2022 Assets Operating lease assets, net $ 122 $ 107 Total lease assets $ 122 $ 107 Liabilities Current operating lease obligations $ 22 $ 19 Non-current operating lease obligations 106 94 Total lease liabilities $ 128 $ 113 Ashland often has options to renew lease terms for buildings and other assets. The exercise of lease renewal options are generally at Ashland's sole discretion. In addition, certain lease arrangements may be terminated prior to their original expiration date at Ashland's discretion. Ashland evaluates renewal and termination options at the lease commencement date to determine if it is reasonably certain to exercise the option on the basis of economic factors. The weighted average remaining lease term for operating leases as of September 30, 2023 and 2022 was approximately 17 years in both periods. Residual value guarantees are not common within Ashland's lease agreements nor are restrictions or covenants imposed by leases. Ashland has elected the practical expedient to combine lease and non-lease components. The discount rate implicit within the leases is generally not determinable. Therefore, Ashland determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate is determined using a buildup method resulting in an estimated range of secured borrowing rates matching the lease term and the currency of the jurisdiction in which lease payments are made, adjusted for impacts of collateral. Consideration was given to Ashland’s own relevant debt issuances as well as debt instruments of comparable companies with similar credit characteristics. The weighted average discount rate used to measure operating lease liabilities as of September 30, 2023 and 2022 was 3.5 % and 2.6 %, respectively. 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 $ 32 million and $ 14 million for the twelve months ended September 30, 2023 and 2022, respectively. The following table provides cash paid for amounts included in the measurement of operating lease liabilities for during 2023, 2022 and 2021: (In millions) 2023 2022 2021 Operating cash flows from operating leases $ 27 $ 29 $ 29 The following table summarizes Ashland's maturities of lease liabilities as of September 30, 2023: (In millions) 2023 2024 $ 24 2025 20 2026 15 2027 13 2028 10 Thereafter 85 Total lease payments 167 Less amount of lease payment representing interest ( 39 ) Total present value of lease payments $ 128 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE K – INCOME TAXES Income Tax Provision A summary of the provision for income taxes related to continuing operations follows. (In millions) 2023 2022 2021 Current Federal $ ( 17 ) $ 3 $ ( 35 ) State ( 5 ) 7 ( 2 ) Foreign 46 50 25 24 60 ( 12 ) Deferred ( 32 ) ( 35 ) ( 26 ) Income tax expense (benefit) $ ( 8 ) $ 25 $ ( 38 ) Temporary differences that give rise to significant deferred tax assets and liabilities as of September 30 are presented in the following table. (In millions) 2023 2022 Deferred tax assets Foreign net operating loss carryforwards (a) $ 24 $ 23 Employee benefit obligations 17 18 Environmental, self-insurance and litigation reserves (net of receivables) 110 116 State net operating loss carryforwards (net of unrecognized tax benefits) (b) 18 19 Compensation accruals 25 29 Credit carryforwards (net of unrecognized tax benefits) (c) 18 20 Other items 25 21 Other lease liability 13 17 Valuation allowances (d) ( 56 ) ( 56 ) Total deferred tax assets 194 207 Deferred tax liabilities Goodwill and other intangibles (e) 150 169 Property, plant and equipment 158 175 Right of use assets 12 16 Other — 3 Total deferred tax liabilities 320 363 Net deferred tax liability $ ( 126 ) $ ( 156 ) (a) Gross net operating loss carryforwards of $ 99 million will expire in future years beyond 2024 or have no expiration, and primarily relate to European and Asian subsidiaries. (b) Apportioned net operating loss carryforwards generated of $ 462 million will expire in future years as follows: $ 78 million in 2024, $ 56 million in 2025 and the remaining balance in other future years. (c) Credit carryforwards consist primarily of foreign tax credits of $ 17 million expiring in future years, and state tax credits of $ 1 million that will expire in 2026 and other future years. (d) Valuation allowances primarily relate to certain state and foreign net operating loss carryforwards and certain federal credit carryforwards. (e) The total gross amount of goodwill as of September 30, 2023 expected to be deductible for tax purposes is $ 42 million. The U.S. and foreign components of income from continuing operations before income taxes and a reconciliation of the statutory federal income tax with the provision for income taxes follow. The foreign components of income from continuing operations disclosed in the following table exclude any allocations of certain corporate expenses incurred in the U.S. (In millions) 2023 2022 2021 Income (loss) from continuing operations before income taxes United States $ ( 112 ) $ ( 133 ) $ ( 96 ) Foreign 272 339 231 Income from continuing operations before income taxes $ 160 $ 206 $ 135 Income taxes computed at U.S. statutory rate $ 34 $ 43 $ 28 Increase (decrease) in amount computed resulting from Uncertain tax positions ( 26 ) ( 6 ) ( 49 ) Deemed inclusions, foreign dividends and other restructuring (a) 32 40 25 Foreign tax credits ( 22 ) ( 32 ) ( 20 ) Valuation allowance changes (b) ( 7 ) ( 4 ) 4 Research and development credits ( 3 ) ( 2 ) ( 3 ) State taxes ( 1 ) ( 4 ) ( 5 ) Goodwill impairment — — 2 International rate differential ( 16 ) ( 27 ) ( 18 ) Other items (c) 1 17 ( 2 ) Income tax expense (benefit) $ ( 8 ) $ 25 $ ( 38 ) (a) 2023 includes $ 19 million related to GILTI permanent adjustments and $ 12 million related to Subpart F. 2022 includes $ 31 million primarily related to GILTI permanent adjustment. 2021 includes $ 17 million primarily related to GILTI permanent adjustments. (b) 2023 includes net $ 2 million related to deferred taxes and foreign tax credits. 2022 includes $ 4 million related to state NOL's. 2021 includes $ 13 million related to certain foreign tax credits partially offset by $ 5 million related to state NOL's and $ 4 million related to foreign jurisdictions. (c) 2023 includes miscellaneous items of $ 1 million. 2022 includes $ 8 million related to withholding tax. 2021 includes $ 14 million related to the sale of a Specialty Additives facility partially offset by miscellaneous other items. Unrecognized tax benefits U.S. GAAP prescribes a recognition threshold and measurement attribute for the accounting and financial statement disclosure of tax positions taken or expected to be taken in a tax return. The evaluation of a tax position is a two-step process. The first step requires Ashland to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. The second step requires Ashland to recognize in the financial statements each tax position that meets the more likely than not criteria, measured at the amount of benefit that has a greater than 50% likelihood of being realized. Ashland had $ 59 million and $ 84 million of unrecognized tax benefits at September 30, 2023 and 2022, respectively, recorded within other noncurrent liabilities. As of September 30, 2023 , the total amount of unrecognized tax benefits that, if recognized, would affect the tax rate for continuing and discontinued operations was $ 48 million. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits would not have an impact on the effective tax rate. Ashland recognizes interest and penalties related to uncertain tax positions as a component of income tax expense (benefit) in the Statements of Consolidated Comprehensive Income (Loss). Such interest and penalties totaled a $ 1 million benefit in 2023 , $ 3 million expense in 2022 and $ 15 million benefit in 2021 . Ashland had $ 10 million in interest and penalties related to unrecognized tax benefits accrued as of September 30, 2023 and 2022. Changes in unrecognized tax benefits were as follows: (In millions) Balance at September 30, 2021 $ 82 Decreases related to positions taken on items from prior years ( 5 ) Increases related to positions taken in the current year 19 Lapse of statute of limitations ( 12 ) Balance at September 30, 2022 $ 84 Decreases related to positions taken on items from prior years ( 30 ) Increases related to positions taken in the current year 8 Increases related to positions taken in the prior year 1 Lapse of statute of limitations ( 4 ) Balance at September 30, 2023 $ 59 From a combination of statute expirations and audit settlements in the next twelve months, Ashland expects a decrease in the amount of accrual for uncertain tax positions of between $ 3 million and $ 5 million for continuing operations. For the remaining balance as of September 30, 2023, it is reasonably possible that there could be material changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues, reassessment of existing uncertain tax positions or the expiration of applicable statute of limitations; however, Ashland is not able to estimate the impact of these items at this time. Ashland or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. Foreign taxing jurisdictions significant to Ashland include Belgium, Brazil, China, Germany, Mexico, Netherlands, Spain, Switzerland and the United Kingdom. Ashland is subject to U.S. federal income tax examinations by tax authorities for periods after September 30, 2019 and U.S. state income tax examinations by tax authorities for periods after September 30, 2017. With respect to countries outside of the United States, with certain exceptions, Ashland’s foreign subsidiaries are subject to income tax audits for years after 2017. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | NOTE L – EMPLOYEE BENEFIT PLANS Pension plans Ashland and its subsidiaries have several contributory and noncontributory qualified defined benefit pension plans that generally cover international employees and a small portion of certain U.S. manufacturing union employees. Pension obligations for applicable employees of non-U.S. consolidated subsidiaries are provided for in accordance with local practices and regulations of the respective countries. The majority of these foreign pension plans are closed to new participants while those that remain open relate to areas where jurisdictions require plans to operate within the applicable country. Benefits for those eligible for Ashland’s U.S. pension plans generally are based on employees’ years of service and compensation during the years immediately preceding their retirement. The remaining U.S. plans are still open for enrollment for qualifying union employees within certain manufacturing sites. Other postretirement benefit plans Ashland and its subsidiaries maintain limited health care for certain eligible employees in the U.S. who are retired or disabled. Ashland shares the costs of providing health care coverage with certain eligible retired employees through premiums, deductibles and coinsurance provisions. Ashland funds its share of the costs of the postretirement benefit plans as the benefits are paid. Postretirement health care plans include a limit on Ashland’s share of costs for recent and future retirees. The assumed pre-65 health care cost increase trend rate as of September 30, 2023 was 6.6 % and continues to be reduced to 4.5 % in 2040 and thereafter. The assumptions used to project the liability anticipate future cost-sharing changes to the written plans that are consistent with the increase in health care costs. Plan Amendments and Remeasurements Following the completion of the sale of its Performance Adhesives business segment on February 28, 2022, the post-retirement benefits for approximately 40 employees transferred to Arkema, all of whom participated in a non-contributory defined benefit plan in the U.S., were frozen. This resulted in a decrease in total expected future years of service within the plan and required Ashland to remeasure the plan as February 28, 2022. As a result, Ashland recorded a $ 1 million actuarial gain within the other net periodic benefit loss (income) caption of the Statements of Consolidated Comprehensive Income (Loss) for fiscal 2022. Net periodic benefit loss (income) allocation Consistent with Ashland’s historical accounting policies, service cost for continuing operations is allocated to each reportable segment, excluding the Unallocated and other segment, while all other costs for continuing operations are recorded within the Unallocated and other segment. The following table summarizes the components of pension and other postretirement benefit costs for continuing operations and the assumptions used to determine net periodic benefit loss (income) for the plans. Pension benefits Other postretirement benefits (In millions) 2023 2022 2021 2023 2022 2021 Net periodic benefit loss (income) Service cost (a) $ 3 $ 4 $ 5 $ 1 $ 1 $ 1 Interest cost (b) 13 8 6 2 2 2 Curtailment, settlement and other (b) — ( 1 ) — — — — Expected return on plan assets (b) ( 7 ) ( 7 ) ( 8 ) — — — Actuarial (gain) loss (b) — ( 16 ) 3 ( 2 ) ( 8 ) ( 2 ) $ 9 $ ( 12 ) $ 6 $ 1 $ ( 5 ) $ 1 Weighted-average plan assumptions (c) Discount rate for service cost 4.56 % 2.99 % 1.81 % 5.80 % 3.19 % 3.15 % Discount rate for interest cost 5.44 % 3.33 % 1.69 % 5.54 % 2.10 % 1.93 % Rate of compensation increase 3.07 % 2.50 % 2.53 % Expected long-term rate of return on plan assets 4.25 % 2.89 % 2.43 % (a) Service cost is classified within the selling, general and administrative expense and cost of sales captions on the Statements of Consolidated Comprehensive Income (Loss). (b) These components are classified within the other net periodic benefit loss (income) caption on the Statements of Consolidated Comprehensive Income (Loss). (c) The plan assumptions discussed are a blended weighted-average rate for Ashland’s U.S. and non-U.S. plans. The changes in prior service credit recognized in accumulated other comprehensive income during both 2023 and 2022 were less than $ 1 million each. At September 30, 2023 , Ashland expects to recognize less than $ 1 million of the prior service credit in accumulated other comprehensive income as net periodic benefit loss (income) during the next fiscal year. At September 30, 2023 and 2022, the amounts included in accumulated other comprehensive income are shown in the following table. Pension Postretirement (In millions) 2023 2022 2023 2022 Prior service cost $ 2 $ 2 $ — $ — Obligations and funded status Actuarial valuations are performed for the pension and other postretirement benefit plans to determine Ashland’s obligation for each plan. In accordance with U.S. GAAP, Ashland recognizes the unfunded status of the plans as a liability in the Consolidated Balance Sheets. Summaries of the change in benefit obligations, plan assets, funded status of the plans, amounts recognized in the balance sheet, and assumptions used to determine the benefit obligations for 2023 and 2022 are as follows: Other postretirement Pension plans benefit plans (In millions) 2023 2022 2023 2022 Change in benefit obligations Benefit obligations at October 1 $ 250 $ 422 $ 36 $ 47 Service cost 3 4 1 1 Interest cost 13 8 2 2 Participant contributions — — — — Benefits paid ( 16 ) ( 16 ) ( 4 ) ( 6 ) Actuarial (gain) loss ( 10 ) ( 123 ) ( 1 ) ( 8 ) Curtailments — ( 1 ) — — Foreign currency exchange rate changes 15 ( 38 ) — — Other (including acquisitions) — ( 1 ) — — Settlements — ( 5 ) — — Benefit obligations at September 30 $ 255 $ 250 $ 34 $ 36 Change in plan assets Value of plan assets at October 1 $ 201 $ 351 $ — $ — Actual return on plan assets ( 2 ) ( 100 ) — — Employer contributions 8 5 — — Participant contributions — — — — Benefits paid ( 16 ) ( 16 ) — — Foreign currency exchange rate changes 14 ( 33 ) — — Settlements — ( 5 ) — — Other ( 2 ) ( 1 ) — — Value of plan assets at September 30 $ 203 $ 201 $ — $ — Unfunded status of the plans $ ( 52 ) $ ( 49 ) $ ( 34 ) $ ( 36 ) Amounts recognized in the balance sheet Other assets (noncurrent) $ 17 $ 21 $ — $ — Accrued expenses and other liabilities ( 4 ) ( 3 ) ( 3 ) ( 4 ) Employee benefit obligations ( 65 ) ( 67 ) ( 31 ) ( 32 ) Net amount recognized $ ( 52 ) $ ( 49 ) $ ( 34 ) $ ( 36 ) Weighted-average plan assumptions Discount rate 5.43 % 5.09 % 5.72 % 2.98 % Rate of compensation increase 3.07 % 2.50 % The accumulated benefit obligation for all pension plans was $ 250 million at September 30, 2023 and $ 245 million at September 30, 2022. All Ashland pension plans are either qualified U.S. or non-US plans. Information for pension plans with an accumulated benefit obligation in excess of plan assets follows: (In millions) 2023 2022 Projected benefit obligation $ 149 $ 146 Accumulated benefit obligation 144 141 Fair value of plan assets 80 76 Plan assets The expected long-term rate of return on pension plan assets was 4.25 % and 2.89 % for September 30, 2023 and 2022, respectively. The basis for determining the expected long-term rate of return is a combination of future return assumptions for various asset classes in Ashland’s investment portfolio, historical analysis of previous returns, market indices and a projection of inflation. The following table summarizes the various investment categories that the pension plan assets are invested in and the applicable fair value hierarchy that the financial instruments are classified within these investment categories as of September 30, 2023. For additional information and a detailed description of each level within the fair value hierarchy, see Note E. Quoted prices in active Significant markets for other Significant identical observable unobservable Total fair assets inputs inputs (In millions) value Level 1 Level 2 Level 3 Cash and cash equivalents $ 11 $ 11 $ — $ — U.S. Government securities 6 — 6 — Non-U.S. Government securities 39 — 39 — Corporate debt instruments 80 — 80 — Listed real assets 9 — 9 — Asset-backed securities 7 — 7 — Corporate stocks 25 — 25 — Insurance contracts 26 — 26 — Total assets at fair value $ 203 $ 11 $ 192 $ — The following table summarizes the various investment categories that the pension plan assets are invested in and the applicable fair value hierarchy that the financial instruments are classified within these investment categories as of September 30, 2022. Quoted prices in active Significant markets for other Significant identical observable unobservable Total fair assets inputs inputs (In millions) value Level 1 Level 2 Level 3 Cash and cash equivalents $ 1 $ 1 $ — $ — U.S. Government securities 10 — 10 — Non-U.S. Government securities 24 — 24 — Corporate debt instruments 90 — 90 — Listed real assets 9 — 9 — Asset-backed securities 17 — 17 — Corporate stocks 27 — 27 — Insurance contracts 23 — 23 — Total assets at fair value $ 201 $ 1 $ 200 $ — Ashland’s pension plan holds a variety of investments designed to diversify risk. Investments classified as a Level 1 fair value measure principally represent marketable securities priced in active markets. Cash and cash equivalents and public equity and debt securities are well diversified and invested in U.S. and international small-to-large companies across various asset managers and styles. Investments classified as a Level 2 fair value measure principally represents fixed-income securities and other investment grade corporate bonds and debt obligations. Investments and Strategy In developing an investment strategy for its defined benefit plans, Ashland has considered the following factors: the nature of the plans’ liabilities, the allocation of liabilities between active, deferred and retired members, the funded status of the plans, the applicable investment horizon, the respective size of the plans and historical and expected capital market returns. Ashland’s U.S. pension plan assets are managed by outside investment managers, which are monitored against investment return benchmarks and Ashland’s established investment strategy. Investment managers are selected based on an analysis of, among other things, their investment process, historical investment results, frequency of management turnover, cost structure and assets under management. Assets are periodically reallocated between investment managers to maintain an appropriate asset mix and diversification of investments and to optimize returns. The current asset allocation for the U.S. plans is 47.6 % fixed income securities, 38.8 % equity securities and 13.6 % other securities. Fixed income securities primarily include cash and cash equivalents, long duration corporate debt obligations and U.S. government debt obligations. In addition, Ashland’s non-U.S. plan fixed income securities include insurance contracts. Equity securities are comprised solely of traditional public equity investments. Investment managers may employ a limited use of derivatives to gain efficient exposure to markets. Ashland’s investment strategy and management practices relative to plan assets of non-U.S. plans generally are consistent with those for U.S. plans, except in those countries where investment of plan assets is dictated by applicable regulations. Although the investment allocation may vary based on funding percentages and whether plans are still accruing additional liabilities, the weighted-average asset allocations for Ashland’s U.S. and non-U.S. plans at September 30, 2023 and 2022 by asset category follow. Actual at September 30 (In millions) Target 2023 2022 Plan assets allocation Equity securities 5 - 45 % 18 % 14 % Fixed income securities 55 - 95 % 78 % 81 % Other 0 - 5 % 4 % 5 % 100 % 100 % Cash flows During 2023 and 2022 , Ashland contributed $ 3 million and less than $ 1 million to its U.S. pension plans, respectively, and $ 5 million in each year to its non-U.S. pension plans, respectively. Ashland expects to contribute approximately $ 6 million to its U.S. pension plans and expects to contribute approximately $ 5 million to its non-U.S. pension plans during 2024. The following benefit payments, which reflect future service expectations, are projected to be paid from plan assets in each of the next five years and in aggregate for five years thereafter. Other Pension postretirement (In millions) benefits benefits 2024 $ 15 $ 3 2025 16 3 2026 17 3 2027 18 3 2028 17 3 2029 - 2033 90 15 Other plans Ashland sponsors savings plans to assist eligible employees in providing for retirement or other future needs. Under such plans, company contributions amounted to $ 23 million in 2023 and 2022 , respectively, and $ 21 million in 2021 . Ashland also sponsors various other employee benefit plans, some of which are required by different countries. The total noncurrent liabilities associated with these plans was $ 4 million for September 30, 2023 and 2022 , respectively. |
Litigation, Claims and Continge
Litigation, Claims and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation, Claims and Contingencies | NOTE M – LITIGATION, CLAIMS AND CONTINGENCIES Asbestos litigation Ashland and Hercules have liabilities from claims alleging personal injury caused by exposure to asbestos. To assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs, Ashland has retained third party actuarial experts Gnarus. The methodology used by Gnarus to project future asbestos costs is based largely on recent experience, including claim-filing and settlement rates, disease mix, open claims and litigation defense. The claim experience of Ashland and Hercules are separately compared to the results of previously conducted third party epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, Gnarus estimates a range of the number of future claims that may be filed, as well as the related costs that may be incurred in resolving those claims. Changes in asbestos-related liabilities and receivables are recorded on an after-tax basis within the discontinued operations caption in the Statements of Consolidated Comprehensive Income (Loss). Ashland asbestos-related litigation The claims alleging personal injury caused by exposure to asbestos asserted against Ashland result primarily from indemnification obligations undertaken in 1990 in connection with the sale of Riley, a former subsidiary. 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. (In thousands) 2023 2022 2021 Open claims - beginning of year 44 46 49 New claims filed 2 2 2 Claims settled ( 1 ) ( 1 ) ( 1 ) Claims dismissed ( 3 ) ( 3 ) ( 4 ) Open claims - end of year 42 44 46 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. Ashland reviews this estimate and related assumptions quarterly and annually updates the results of a non-inflated, non-discounted approximate 40-year model developed with the assistance of Gnarus. During the most recent update completed during 2023 , it was determined that the liability for Ashland asbestos-related claims should be increased by $ 9 million. Total reserves for asbestos claims w ere $ 281 m illion at September 30, 2023 compared to $ 305 million at September 30, 2022. A progression of activity in the asbestos reserve is presented in the following table. (In millions) 2023 2022 2021 Asbestos reserve - beginning of year $ 305 $ 320 $ 335 Reserve adjustment 9 16 12 Amounts paid ( 33 ) ( 31 ) ( 27 ) Asbestos reserve - end of year (a) $ 281 $ 305 $ 320 (a) Included $ 28 million and $ 29 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. 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. Substantially all of the estimated receivables from insurance companies are expected to be due from domestic insurers, all of which are solvent. At September 30, 2023, Ashland’s receivable for recoveries of litigation defense and claim settlement costs from insurers amounted to $ 95 million (excluding the Hercules receivable for asbestos claims discussed below). Receivables from insurers amounted to $ 101 million at September 30, 2022. During 2023 , 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 $ 3 million increase in the receivable for probable insurance recoveries. A progression of activity in the Ashland insurance receivable is presented in the following table. (In millions) 2023 2022 2021 Insurance receivable - beginning of year $ 101 $ 100 $ 103 Receivable adjustment (a) 3 7 6 Insurance settlement — — — Amounts collected ( 9 ) ( 6 ) ( 9 ) Insurance receivable - end of year (b) $ 95 $ 101 $ 100 (a) 2021 includes a $ 2 million reserve adjustment related to allowances for credit losses as a result of Ashland's adoption of the new credit measurement standard described in Note A. The total allowance for credit losses were $ 1 million and $ 2 million as of September 30, 2023 and 2022. (b) Included $ 11 million and $ 12 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. 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. (In thousands) 2023 2022 2021 Open claims - beginning of year 11 12 12 New claims filed 1 1 1 Claims dismissed — ( 2 ) ( 1 ) Open claims - end of year 12 11 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. Ashland reviews this estimate and related assumptions quarterly and annually updates the results of a non-inflated, non-discounted approximate 40-year model developed with the assistance of Gnarus. As a result of the most recent annual update of this estimate, completed during 2023 , it was determined that the liability for Hercules asbestos-related claims should be decreased by $ 2 million. Total reserves for asbestos claims wer e $ 191 million at September 30, 2023 compared to $ 213 million at September 30, 2022. A progression of activity in the asbestos reserve is presented in the following table. (In millions) 2023 2022 2021 Asbestos reserve - beginning of year $ 213 $ 217 $ 229 Reserve adjustments ( 2 ) 15 8 Amounts paid ( 20 ) ( 19 ) ( 20 ) Asbestos reserve - end of year (a) $ 191 $ 213 $ 217 (a) Included $ 17 million and $ 18 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. 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 September 30, 2023 and 2022, the receivables from insurers amounted to $ 47 million and $ 52 million, respectively. During 2023 , 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 $ 3 million decrease in the receivable for probable insurance recoveries. A progression of activity in the Hercules insurance receivable is presented in the following table. (In millions) 2023 2022 2021 Insurance receivable - beginning of year $ 52 $ 47 $ 47 Receivable adjustment (a) ( 3 ) 7 1 Amounts collected ( 2 ) ( 2 ) ( 1 ) Insurance receivable - end of year (b) $ 47 $ 52 $ 47 (a) 2021 includes a $ 1 million reserve adjustment related to allowances for credit losses as a result of Ashland's adoption of the new credit measurement standard described in Note A. The total allowance for credit losses was $ 1 million as of September 30, 2023 and 2022 , respectively. (b) Included $ 4 million and $ 3 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. Asbestos litigation cost projection Projecting future asbestos costs is subject to numerous variables that are difficult to predict. In addition to the uncertainties surrounding the number of claims that might be received, other variables include the type and severity of the disease alleged by each claimant and the related costs incurred in resolving those claims, mortality rates, dismissal rates, uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case. Furthermore, any predictions with respect to these variables are subject to even greater uncertainty as the projection period lengthens. In light of 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 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 $ 422 million for the Ashland asbestos-related litigation (current reserve of $ 281 million) and approximately $ 288 million for the Hercules asbestos-related litigation (current reserve of $ 191 million), depending on the combination of assumptions selected in the various models. While the timeframe used in Ashland's models for projecting asbestos liabilities generally decreases over time based on the expected lifetime of the liabilities, these models have been consistently applied within all periods presented. 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 September 30, 2023 , such locations included 57 sites where Ashland has been identified as a potentially responsible party under Superfund or similar state laws, 108 current and former operating facilities and about 1,225 service station properties, of which 14 are being actively remediated. Ashland’s reserves for environmental remediation and related environmental litigation amounted to $ 214 million at September 30, 2023 compared to $ 211 million at September 30, 2022 , of which $ 165 million at September 30, 2023 and $ 157 million at September 30, 2022 were classified in other noncurrent liabilities on the Consolidated Balance Sheets. The remaining reserves were classified in accrued expenses and other liabilities on the Consolidated Balance Sheets. The following table provides a reconciliation of the changes in the environmental remediation reserves during 2023 and 2022. (In millions) 2023 2022 Environmental remediation reserve - beginning of year $ 211 $ 207 Disbursements ( 54 ) ( 63 ) Revised obligation estimates and accretion 57 67 Environmental remediation reserve - end of year $ 214 $ 211 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, 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 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 September 30, 2023 and 2022 , Ashland’s recorded receivable for these probable insurance recoveries was $ 17 million and $ 21 million, respectively, of which $ 15 million and $ 17 million was classified in other noncurrent assets in the respective Consolidated Balance Sheets. During 2023, 2022 and 2021 , Ashland recognized $ 56 million, $ 66 million and $ 50 million of expense, respectively, for certain environmental liabilities related to normal ongoing remediation cost estimate updates for sites, which is consistent with Ashland’s historical environmental accounting policy. 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 years ended September 30, 2023, 2022 and 2021. (In millions) 2023 2022 2021 Environmental expense $ 56 $ 66 $ 50 Accretion 1 1 1 Legal expense 3 4 4 Total expense 60 71 55 Insurance receivable ( 1 ) ( 5 ) ( 4 ) Total expense, net of receivable activity (a) $ 59 $ 66 $ 51 (a) Net expense of $ 5 million, $ 13 million and $ 6 million for the fiscal years ended September 30, 2023, 2022 and 2021 , respectively, related to divested businesses which qualified for treatment as discontinued operations and for which certain environmental liabilities were retained by Ashland. These amounts are classified within the income from discontinued operations caption of the Statements of Consolidated Comprehensive Income (Loss). Environmental remediation reserves are subject to 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 and the extent of required cleanup efforts under existing environmental regulations. Although it is not possible to predict with certainty the ultimate costs of environmental remediation, Ashland currently estimates that the upper end of the reasonably possible range of future costs for identified sites could be as high as approximately $ 465 million. The largest reserve for any site is 21 % of the remediation reserve. Brazil tax credits In March 2017, the Federal Supreme Court of Brazil (Brazil Supreme Court) ruled in a leading case that a Brazilian value-added tax (ICMS) should not be included in the base used to calculate a taxpayer’s federal contribution on total revenue known as PIS/COFINS (2017 Decision). As a result, two of Ashland’s Brazilian subsidiaries filed lawsuits challenging the inclusion of ICMS in Ashland’s calculation of PIS/COFINs, seeking recovery of excess taxes paid plus interest. In response to the 2017 Decision, the Brazilian tax authority filed an appeal of the 2017 Decision seeking clarification of the amount of ICMS tax to exclude from the calculation of PIS/COFINS. In May 2021, the Brazil Supreme Court ruled that the ICMS tax be excluded from the calculation of PIS/COFINS. In May 2023, Law 14592/23 was passed in Brazil, converting the 2017 Decision provisional measure effective for PIS/COFINS legislation excluding ICMS from the calculation basis. As of September 30, 2023 , Ashland had received all favorable court rulings for previously filed suits, completed its analysis of certain prior year overpayments related to ICMS and received acknowledgment from the Brazilian tax authority that allows Ashland to begin the process to recover the taxes. As a result, Ashland recorded a pre-tax gain of $ 12 million for period ended September 30, 2023 for certain excess PIS/COFINS paid from 2012 to February 2023 plus interest. The gain was recognized within the selling, general and administrative expense caption of the Statement of Consolidated Comprehensive Income (Loss). Ashland plans to start utilizing these credits in December 2023. 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 September 30, 2023 and 2022. 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 September 30, 2023 . |
Equity Items
Equity Items | 12 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Equity Items | NOTE N – EQUITY ITEMS Stock repurchase programs On June 28, 2023, Ashland's board of directors authorized a new evergreen $ 1 billion common share repurchase program (2023 stock repurchase program). The new authorization terminates and replaces the company's 2022 stock repurchase program, which had $ 200 million outstanding at the date of termination. In 2022, the 2022 stock repurchase program replaced and terminated the 2018 $ 1 billion share repurchase program, which had $ 150 million outstanding at its date of termination on May 22, 2022. As of September 30, 2023 , $ 1 billion remained available for repurchase under the 2023 stock repurchase program. Stock repurchase program agreements During May 2023, under the 2022 stock repurchase program, Ashland initiated a Rule 10b5-1 trading plan agreement to repurchase up to $ 100 million of its outstanding shares. The program was completed during June 2023, when Ashland paid a total of $ 100 million and received a delivery of 1.1 million shares of common stock. During March 2023, under the 2022 stock repurchase program, Ashland initiated a Rule 10b5-1 trading plan agreement to repurchase up to $ 100 million of its outstanding shares. The program was completed during April 2023, when Ashland paid a total of $ 100 million and received a delivery of 1.0 million shares of common stock. During February 2023, under the 2022 stock repurchase program, Ashland initiated a Rule 10b5-1 trading plan agreement to repurchase up to $ 100 million of its outstanding shares. The program was completed during February 2023, when Ashland paid a total of $ 100 million and received a delivery of 1.0 million shares of common stock. On March 1, 2022, under the 2018 stock repurchase program, Ashland entered into an agreement to repurchase an aggregate amount of $ 200 million of Ashland common stock using open-market purchases under rule 10b-18. On April 8, 2022, Ashland completed repurchases under this agreement repurchasing a total of 2.15 million shares for a total amount of $ 200 million. In September 2021, under the 2018 stock repurchase program, Ashland announced that it entered into an accelerated share repurchase agreement (2021 ASR Agreement). Under the 2021 ASR Agreement, Ashland paid an initial purchase price of $ 450 million and received an initial delivery of 3.9 million shares of common stock during September 2021. The bank exercised its early termination option under the 2021 ASR Agreement in February 2022, and an additional 0.7 million shares were repurchased, bringing the total shares repurchased upon settlement to 4.6 million. Stockholder dividends Ashland paid dividends per common share of $ 1.44 , $ 1.27 and $ 1.15 during 2023, 2022 and 2021, respectively. In May 2023, the Board of Directors of Ashland announced a quarterly cash dividend of 38.5 cents per share to eligible stockholders at record, which represented an increase from the previous quarterly cash dividend of 33.5 cents per share. The dividend was paid in the third and fourth quarter of fiscal 2023. In May 2022, the Board of Directors of Ashland announced a quarterly cash dividend of 33.5 cents per share to eligible stockholders at record, which represented an increase from the previous quarterly cash dividend of 30.0 cents per share. This dividend was paid in the third and fourth quarters of fiscal 2022 and the first and second quarters of fiscal 2023. In May 2021, the Board of Directors of Ashland announced a quarterly cash dividend of 30.0 cents per share to eligible stockholders at record, which represented an increase from the previous quarterly cash dividend of 27.5 cents per share. This dividend was paid in the third and fourth quarters of fiscal 2021 and the first and second quarters of fiscal 2022. 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 the previous quarterly cash dividend of 25.0 cents per share. This dividend was paid in the first and second quarters of fiscal 2021. Shares reserved for issuance At September 30, 2023 , 17.3 million common shares were reserved for issuance under stock incentive and deferred compensation plans. Other comprehensive income (loss) Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented in the following table, before tax and net of tax effects. Tax Before (expense) Net of (In millions) tax benefit tax Year ended September 30, 2023 Other comprehensive income (loss) Unrealized translation gain $ 72 $ — $ 72 Unrealized loss on commodity hedges ( 8 ) 2 ( 6 ) Total other comprehensive income (loss) $ 64 $ 2 $ 66 Year ended September 30, 2022 Other comprehensive income (loss) Unrealized translation loss $ ( 199 ) $ 2 $ ( 197 ) Unrealized loss on commodity hedges ( 2 ) 1 ( 1 ) Pension and postretirement obligation adjustment 1 — 1 Total other comprehensive income (loss) $ ( 200 ) $ 3 $ ( 197 ) Year ended September 30, 2021 Other comprehensive income (loss) Unrealized translation gain $ 8 $ ( 1 ) $ 7 Unrealized gain on commodity hedges 5 ( 1 ) 4 Total other comprehensive income (loss) $ 13 $ ( 2 ) $ 11 Summary of Stockholders’ Equity A reconciliation of changes in stockholders’ equity are as follows: (In millions) 2023 2022 2021 Common stock and paid in capital Balance, beginning of period $ 136 $ 328 $ 770 Common shares issued under stock incentive and other plans (a) 12 8 8 Common shares purchased under repurchase program (b) (c) ( 143 ) ( 200 ) ( 450 ) Balance, end of period 5 136 328 Retained earnings Balance, beginning of period 3,653 2,796 2,649 Adoption of new accounting pronouncements (d) — — ( 2 ) Common shares purchased under repurchase program (b) ( 160 ) — — Net income 178 927 220 Regular dividends ( 76 ) ( 70 ) ( 71 ) Balance, end of period 3,595 3,653 2,796 Accumulated other comprehensive income (loss) Balance, beginning of period ( 569 ) ( 372 ) ( 383 ) Unrealized translation gain (loss) 72 ( 197 ) 7 Unrealized gain (loss) on commodity hedges ( 6 ) ( 1 ) 4 Pension and postretirement obligation adjustment — 1 — Balance, end of period ( 503 ) ( 569 ) ( 372 ) Total stockholders' equity $ 3,097 $ 3,220 $ 2,752 Cash dividends declared per common share $ 1.44 $ 1.27 $ 1.15 (a) Common shares issued were 193,767 , 168,270 and 183,281 for 2023, 2022 and 2021 , respectively. (b) Common shares repurchased were 3,082,928 , 2,853,312 and 3,922,423 for 2023, 2022 and 2021 , respectively. (c) Includes $ 3 million in excise tax on stock repurchases for 2023. (d) Represents the cumulative-effect adjustment related to the adoption of the new guidance related to the measurement of credit losses on financial instruments during fiscal 2021. See Note A for more information. |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Incentive Plans | NOTE O – STOCK INCENTIVE PLANS Ashland has stock incentive plans under which key employees or directors are granted performance share 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 requisite service period and accounts for forfeitures when they occur across all stock-based awards. The components of Ashland's pretax compensation expense for stock-based awards (net of forfeitures) and associated income tax benefits are as follows. (In millions) 2023 (a) 2022 (b) 2021 (c) SARs $ — $ 1 $ 2 Nonvested stock awards 11 12 10 Performance share awards 11 11 6 $ 22 $ 24 $ 18 Income tax benefit $ 5 $ 6 $ 4 (a) The year ended September 30, 2023 included $ 1 million of expense and $ 1 million of income related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. (b) The year ended September 30, 2022 included $ 4 million and $ 2 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. (c) The year ended September 30, 2021 included $ 3 million and zero of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. Stock Appreciation Rights SARs were 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 lapse ten years after the date of grant. Ashland estimated the fair value of SARs granted using the Black-Scholes option-pricing model. Ashland has not granted any SARs since August 2020. A progression of activity and various other information relative to SARs and previously issued and vested stock options is presented in the following table. 2023 2022 2021 Number Weighted- Number Weighted- Number Weighted- of average of average of average (In thousands except per common exercise price common exercise price common exercise price share data) shares per share shares per share shares per share Outstanding - beginning of year 1,142 $ 63.85 1,543 $ 62.14 1,993 $ 61.11 Exercised ( 114 ) 52.31 ( 392 ) 57.32 ( 386 ) 54.44 Forfeitures and expirations ( 5 ) 46.67 ( 9 ) 54.70 ( 64 ) 77.17 Outstanding - end of year (a) 1,023 65.22 1,142 63.85 1,543 62.14 Exercisable - end of year 1,023 65.22 1,094 63.24 1,415 60.68 (a) Exercise prices per share for SARs outstanding at September 30, 2023 ranged from $ 47.63 to $ 59.95 for 521 thousand shares and from $ 67.16 to $ 82.34 for 502 thousand shares. The weighted-average remaining contractual life of outstanding and exercisable SARs and stock options was 3.7 years. The total intrinsic value of SARs exercised was $ 6 million in 2023 , $ 19 million in 2022 and $ 12 million in 2021. The actual tax benefit realized from the exercised SARs was $ 1 million in 2023 , $ 4 million in 2022 and $ 3 million in 2021. The total grant date fair value of SARs that vested during 2023, 2022 and 2021 was $ 1 million each year. As of September 30, 2023 , there was zero unrecognized compensation costs related to SARs. As of September 30, 2023 , the aggregate intrinsic value of outstanding and exercisable SARs was $ 17 million. 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 period. However, such shares or units are subject to forfeiture upon termination of service before the vesting period ends. Beginning in 2016, these awards were primarily granted as stock units that will convert to shares upon vesting, while the grants in prior years were generally made in nonvested shares. Only nonvested stock awards granted in the form of shares entitle employees or directors to vote the shares. Dividends on nonvested stock awards granted are in the form of additional units or shares of nonvested stock awards, which are subject to vesting and forfeiture provisions. A progression of activity and various other information relative to nonvested stock awards is presented in the following table. 2023 2022 2021 Number Weighted- Number Weighted- Number Weighted- of average of average of average (In thousands except per common grant date common grant date common grant date share data) shares fair value shares fair value shares fair value Nonvested - beginning of year 209 $ 82.55 211 $ 76.10 199 $ 74.57 Granted 92 105.72 80 92.34 93 78.96 Vested ( 106 ) 82.04 ( 72 ) 78.81 ( 69 ) 75.10 Forfeitures ( 7 ) 106.25 ( 10 ) 80.06 ( 12 ) 79.02 Nonvested - end of year 188 97.66 209 82.55 211 76.10 The total grant date fair value of nonvested stock awards that vested during 2023, 2022 and 2021 was $ 8 million, $ 6 million and $ 5 million, respectively. As of September 30, 2023 , there was $ 6 million of total unrecognized compensation costs related to nonvested stock awards. That cost is expected to be recognized over a weighted-average period of 1.3 years. Cash-settled nonvested stock awards Certain nonvested stock awards are granted to employees and are settled in cash upon vesting. As of September 30, 2023 , 54 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 zero , $ 6 million, and $ 3 million during 2023, 2022 and 2021, respectively. Performance awards Ashland sponsors a long-term incentive plan that awards performance shares/units to certain key employees that are tied to Ashland’s overall financial performance relative to the financial performance of selected industry peer groups and/or internal targets. Awards are granted annually, with each award covering a three-year measurement period and vesting over a one to three year period. Nonvested performance shares/units do not entitle employees to vote the shares or to receive any dividends thereon. Each awarded performance share is convertible to one share of Ashland Common Stock and recorded as a component of stockholders’ equity. Performance measures used to determine the actual number of performance shares issuable upon vesting includes 60 :40 weighting of Ashland’s total shareholder return (TSR) performance and Ashland’s return on net assets (RONA) performance as compared to internal targets. TSR relative to peers is considered a market condition while RONA is considered a performance condition in accordance with U.S. GAAP. The following table shows the performance shares/units granted for all plans that award Ashland Common Stock. Weighted- Target average shares/units fair value per (In thousands) Vesting period granted (a) share/unit (a) Fiscal Year 2023 October 1, 2022 - September 30, 2025 98 $ 135.93 Fiscal Year 2022 October 1, 2021 - September 30, 2024 110 $ 131.33 Fiscal Year 2021 October 1, 2020 - September 30, 2023 122 $ 90.44 (a) At the end of the performance period, the actual number of shares/units awarded can range from zero to 200 % of the target shares/units granted, which is assumed to be 100 %. Both the shares granted and weighted-average fair value per share/unit are as of the grant date. For these awards, the fair value of the performance unit awards is equal to the fair market value of Ashland’s Common Stock as of the end of each reporting period. Compensation cost is recognized over the requisite service period if it is probable that the performance condition will be satisfied. The fair values of the TSR portion of the performance share awards and TSR modifier of the performance unit awards are calculated using a Monte Carlo simulation valuation model using key assumptions included in the following table. Compensation cost is recognized over the requisite service period regardless of whether the market condition is satisfied. 2023 2022 2021 Risk-free interest rate 4.22 % 1.18 % 0.2 % Expected dividend yield 1.3 % 1.3 % 1.6 % Expected life (in years) 3 3 3 Expected volatility 35.1 % 33.4 % 32.7 % The following table shows changes in nonvested performance shares/units for all plans that award Ashland Common Stock. 2023 2022 2021 Weighted- Weighted- Weighted- average average average (In thousands except per Shares/ grant date Shares/ grant date Shares/ grant date share data) Units fair value Units fair value Units fair value Nonvested - beginning of year 310 $ 105.78 253 $ 88.66 227 $ 80.86 Granted 98 135.93 110 131.33 122 90.44 Vested ( 88 ) 84.33 ( 1 ) 96.32 ( 79 ) 68.93 Forfeitures ( 33 ) 94.53 ( 52 ) 85.78 ( 17 ) 89.36 Nonvested - end of year 287 118.43 310 105.78 253 88.66 As of September 30, 2023 , there was $ 10 million of total unrecognized compensation costs related to nonvested performance share/unit awards. That cost is expected to be recognized over a weighted-average period of approximately 1.5 years. |
Revenue
Revenue | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE P – REVENUE Trade receivables Trade receivables are defined as receivables arising from contracts with customers and are recorded within the accounts receivable caption within the Consolidated Balance Sheets. Ashland’s trade receivables were $ 288 million and $ 369 million as of September 30, 2023 and September 30, 2022, respectively. See Note H for additional information on Ashland's program to sell certain receivables on a revolving basis to third party banks up to an aggregate purchase limit. Disaggregation of revenue Ashland disaggregates its revenue from contracts with customers by segment and geographical region, as Ashland believes these categories best depict how management reviews the financial performance of its operations for the twelve months ended September 30, 2023, 2022 and 2021. Ashland includes only U.S. and Canada in its North America designation and includes Europe, the Middle East and Africa in its Europe designation. See the following tables for details (Intersegment sales eliminations have been excluded. See Note Q for additional information.): Sales by geography (In millions) 2023 2022 2021 Life Sciences North America $ 228 $ 244 $ 229 Europe 305 267 242 Asia Pacific 233 218 192 Latin America & other 103 86 74 $ 869 $ 815 $ 737 (In millions) 2023 2022 2021 Personal Care North America $ 176 $ 198 $ 180 Europe 233 270 240 Asia Pacific 105 126 100 Latin America & other 84 84 72 $ 598 $ 678 $ 592 (In millions) 2023 2022 2021 Specialty Additives North America $ 203 $ 247 $ 203 Europe 214 258 246 Asia Pacific 153 182 171 Latin America & other 30 32 35 $ 600 $ 719 $ 655 (In millions) 2023 2022 2021 Intermediates North America $ 128 $ 163 $ 114 Europe 27 39 28 Asia Pacific 22 43 29 Latin America & other 8 11 7 $ 185 $ 256 $ 178 For fiscal 2023, Ashland had two product categories that represented 10 % or greater of Ashland's total consolidated sales which were cellulosics representing 37 % of total consolidated sales and polyvinylprrolidones (PVP) representing 25 % of total consolidated sales. |
Reportable Segment Information
Reportable Segment Information | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | NOTE Q – REPORTABLE SEGMENT INFORMATION Ashland determines its reportable segments based on how operations are managed internally for the products and services sold to customers, including how the results are reviewed by the chief operating decision maker, which includes determining resource allocation methodologies used for reportable segments. Operating income and EBITDA are the primary measures of performance that are reviewed by the chief operating decision maker in assessing each reportable segment's financial performance. Ashland does not aggregate operating segments to arrive at these reportable segments. Change in reportable segments On February 28, 2022, Ashland completed the sale of its Performance Adhesives segment. The operating results and cash flows for the Performance Adhesives segment have been classified as discontinued operations within the Consolidated Financial Statements for all periods presented. As a result, Ashland’s reportable segments include Life Sciences, Personal Care, Specialty Additives, and Intermediates. Unallocated and Other includes corporate governance activities and certain legacy matters. The historical segment information has been recast to conform to the current segment structure. Reportable segment business descriptions Life Sciences is comprised of pharmaceuticals, nutrition, nutraceuticals, agricultural chemicals, diagnostic films (formerly known as advanced materials) and fine chemicals. Pharmaceutical solutions include controlled release polymers, disintegrants, film coatings, solubilizers, and tablet binders. Nutrition solutions include thickeners, stabilizers, emulsifiers and additives for enhancing mouthfeel, controlling moisture migration, reducing oil uptake and controlling color. Nutraceutical solutions include products for weight management, joint comfort, stomach and intestinal health, sports nutrition and general wellness, and provide custom formulation, toll processing and particle engineering solutions. Customers include pharmaceutical, food, beverage, nutraceuticals and supplements manufacturers, hospitals and radiologists and industrial manufacturers. Personal Care is comprised of biofunctionals, microbial protectants (preservatives), skin care, sun care, oral care, hair care and household. These businesses have a broad range of natural, nature-derived, biodegradable, and high-performance ingredients for customer-driven solutions to help protect, renew, moisturize and revitalize skin and hair, and provide solutions for toothpastes, mouth washes and rinses, denture cleaning and care for teeth. Household supplies nature-derived rheology ingredients, biodegradable surface wetting agents, performance encapsulates, and specialty polymers for household, industrial and institutional cleaning products. Customers include formulators at large multinational branded consumer products companies and smaller, independent boutique companies. Specialty Additives is comprised of rheology and performance-enhancing additives serving the architectural coatings, construction, energy, automotive and various industrial markets. Solutions include coatings additives for architectural paints, finishes and lacquers, cement and gypsum based dry mortars, ready-mixed joint compounds, synthetic plasters for commercial and residential construction, and specialty materials for industrial applications. Products include rheology modifiers (cellulosic and associative thickeners), foam control agents, surfactants and wetting agents, pH neutralizers, advanced ceramics used in catalytic converters, and environmental filters, ingredients that aid the manufacturing process of ceramic capacitors, plasma display panels and solar cells, ingredients for textile printing, thermoplastic metals and alloys for welding. Products help improve desired functional outcomes through rheology modification and control, water retention, workability, adhesive strength, binding power, film formation, deposition and suspension and emulsification. Customers include global paint manufacturers, electronics and automotive manufacturers, textile mills, the construction industry, and welders. Intermediates is comprised of the production of 1,4 butanediol (BDO) and related derivatives, including n-methylpyrrolidone. These products are used as chemical intermediates in the production of engineering polymers and polyurethanes, and as specialty process solvents in a wide array of applications including electronics, pharmaceuticals, water filtration membranes and more. Butanediol is also supplied to Life Sciences, Personal Care, and Specialty Additives for use as a raw material. Unallocated and Other generally includes items such as certain significant company-wide restructuring activities, corporate governance costs and legacy costs or activities that relate to divested businesses that are no longer operated by Ashland. International data Information about Ashland’s domestic and international operations follows. Ashland has no operations in any individual international country or single customer that represented more than 10% of sales in 2023, 2022 and 2021. Sales to external Net assets Property, plant and (In millions) 2023 2022 2021 2023 2022 2023 2022 United States $ 634 $ 731 $ 637 $ 1,532 $ 1,857 $ 1,032 $ 1,042 International 1,557 1,660 1,474 1,565 1,363 341 296 $ 2,191 $ 2,391 $ 2,111 $ 3,097 $ 3,220 $ 1,373 $ 1,338 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 costs to its reportable segments except for certain significant company-wide restructuring activities, certain corporate governance costs and other costs or activities that relate to former businesses that Ashland no longer operates. The service cost component of pension and other postretirement benefits costs is allocated to each reportable segment on a ratable basis; while the remaining components of pension and other postretirement benefits costs are recorded within the other net periodic benefit loss (income) caption of the Statement 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. This includes changes in prior years for indirect corporate costs previously allocated to Performance Adhesives. These costs are now reflected in Unallocated and Other for all periods presented. Ashland determined that disclosing sales by specific product was impracticable due to the highly customized and extensive portfolio of products offered to customers and since no one product or a small group of products could be aggregated together to represent a majority of revenue within a reportable segment. The following table presents various financial information for each reportable segment for the years ended September 30, 2023, 2022 and 2021. Ashland Inc. and Consolidated Subsidiaries Reportable Segment Information Years Ended September 30 (In millions) 2023 2022 2021 Sales Life Sciences $ 869 $ 815 $ 737 Personal Care 598 678 592 Specialty Additives 600 719 655 Intermediates 185 256 178 Intersegment sales (a) ( 61 ) ( 77 ) ( 51 ) $ 2,191 $ 2,391 $ 2,111 Equity income Life Sciences $ — $ — $ — Personal Care 1 1 — Specialty Additives — — — Intermediates — — — $ 1 $ 1 $ — Other income Life Sciences $ — $ — $ — Personal Care — — 2 Specialty Additives — — — Intermediates — — — Unallocated and Other 6 2 7 $ 6 $ 2 $ 9 Equity and other income $ 7 $ 3 $ 9 Operating income (loss) Life Sciences $ 172 $ 155 $ 130 Personal Care (b) 52 102 73 Specialty Additives (b) 10 103 61 Intermediates 50 87 35 Unallocated and Other (b) ( 112 ) ( 114 ) ( 107 ) $ 172 $ 333 $ 192 (In millions) 2023 2022 2021 Depreciation expense Life Sciences $ 41 $ 35 $ 36 Personal Care 38 37 39 Specialty Additives 58 63 66 Intermediates 13 12 12 Unallocated and Other — — 1 $ 150 $ 147 $ 154 Amortization expense Life Sciences $ 28 $ 28 $ 28 Personal Care 47 47 42 Specialty Additives 18 18 19 Intermediates — 1 1 Unallocated and Other — — — $ 93 $ 94 $ 90 EBITDA (c) Life Sciences $ 241 $ 218 $ 194 Personal Care 137 186 154 Specialty Additives 86 184 146 Intermediates 63 100 48 Unallocated and Other ( 112 ) ( 114 ) ( 106 ) $ 415 $ 574 $ 436 Additions to property, plant and equipment Life Sciences $ 46 $ 28 $ 27 Personal Care 20 14 7 Specialty Additives 99 61 67 Intermediates 3 7 2 Unallocated and Other 2 3 2 $ 170 $ 113 $ 105 (In millions) 2023 2022 Assets Life Sciences $ 1,904 $ 1,905 Personal Care 1,004 1,073 Specialty Additives 1,580 1,567 Intermediates 136 170 Unallocated and Other 1,315 1,498 $ 5,939 $ 6,213 Property, plant and equipment - net Life Sciences $ 419 $ 422 Personal Care 160 153 Specialty Additives 642 603 Intermediates 47 56 Unallocated and Other 105 104 $ 1,373 $ 1,338 (a) Intersegment sales from Intermediates are accounted for at prices that approximate fair value. All other intersegment sales are accounted for at cost. (b) Includes income on acquisitions and divestitures, net for fiscal 2023, 2022 and 2021 within Unallocated and Other. Includes a $ 4 million impairment charge related to a Specialty Additives facility in 2023. Includes a fixed asset impairment of $ 3 million related to Personal Care and a capital project impairment of $ 10 million related to Specialty Additives in 2021. (c) Excludes income from discontinued operations and other net periodic benefit loss (income). See the Statement of Consolidated Comprehensive Income (Loss) for applicable amounts excluded. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE R – SUBSEQUENT EVENTS On October 19, 2023, Ashland entered, through an Ireland based, wholly-owned, bankruptcy-remote consolidated special purpose entity (SPE), into a three-year agreement with a group of entities (buyers) to sell certain trade receivables, without recourse beyond the pledged receivables, of certain wholly-owned Ashland subsidiaries (foreign accounts receivable sales program) in Europe. Under the agreement, Ashland can transfer whole receivables up to a limit established by the buyer, which is currently set at € 125 million. Ashland’s continuing involvement is limited to servicing the receivables, including billing, collections and remittance of payments to the buyers as well as a limited guarantee on over-collateralization. Ashland determined that any receivables transferred under this agreement are put presumptively beyond the reach of Ashland and its creditors, even in bankruptcy or other receivership. Ashland received true sale at law and non-consolidation opinions from independent qualified legal advisors in the jurisdiction of each originating subsidiary to support the legal isolation of these receivables. Consequently, Ashland will account for receivables transferred to buyers as part of this agreement as sales. In addition, the 2018 foreign accounts receivable securitization was not extended in October 2023 with the initiation of the foreign accounts receivable sales program. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of consolidation and basis of presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and U.S. Securities and Exchange Commission (SEC) regulations. The Consolidated Financial Statements include the accounts of Ashland Inc. (Ashland) and its majority owned subsidiaries and, when applicable, entities for which Ashland has a controlling financial interest or is the primary beneficiary. Investments in joint ventures and 20 % to 50 % owned affiliates where Ashland has the ability to exert significant influence are accounted for under the equity method. Ashland has no significant equity method investments as of September 30, 2023. All intercompany transactions and balances have been eliminated. Ashland is comprised of the following reportable segments: Life Sciences, Personal Care, Specialty Additives and Intermediates. Unallocated and Other includes corporate governance activities and certain legacy matters. See Note Q for more information. |
Use of Estimates, Risks and Uncertainties | Use of estimates, risks and uncertainties The preparation of Ashland’s 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, environmental remediation, asbestos litigation, the accounting for goodwill and other indefinite-lived intangible assets and income taxes. 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, income taxes or other matters. |
Cash and Cash Equivalents | Cash and cash equivalents Cash and cash equivalents include cash on hand and highly liquid investments maturing within three months after purchase. |
Allowance for Credit Losses on Accounts Receivable | Allowance for credit losses on accounts receivable Ashland records an allowance for credit losses using the expected credit loss model. Ashland estimates expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. When measuring expected credit losses, Ashland pools assets with similar country risk and credit risk characteristics. Each period the allowance for credit losses is adjusted through earnings to reflect expected credit losses over the remaining lives of the assets. No significant credit losses were incurred in 2023, 2022 and 2021. A progression of activity in the allowance for credit losses is presented in the following table. (In millions) 2023 2022 2021 Allowance for credit losses - beginning of year $ 4 $ 3 $ 3 Adjustments to allowances for credit losses 1 2 1 Reserves utilized ( 2 ) ( 1 ) ( 1 ) Allowance for credit losses - end of year $ 3 $ 4 $ 3 |
Inventories | Inventories Inventories are carried at the lower of cost or net realizable value. Inventories are stated at cost using the weighted-average cost method. This method values inventories using average costs for raw materials and most recent production costs for labor and overhead. The following summarizes Ashland’s inventories as of the Consolidated Balance Sheet dates. (In millions) 2023 2022 Finished products $ 390 $ 391 Raw materials, supplies and work in process 236 238 $ 626 $ 629 A progression of activity in the inventory reserves for obsolete and slow moving inventories, which reduce the amounts of finished products and raw materials, supplies and work in process reported, is presented in the following table. (In millions) 2023 2022 2021 Inventory reserves - beginning of year $ 13 $ 13 $ 16 Adjustments to inventory reserves 11 3 2 Reserves utilized ( 3 ) ( 3 ) ( 5 ) Inventory reserves - end of year $ 21 $ 13 $ 13 |
Property, Plant and Equipment | Property, plant and equipment The cost of property, plant and equipment is depreciated by the straight-line method over the estimated useful lives of the assets. Buildings are depreciated principally over 12 to 35 years and machinery and equipment principally over 2 to 25 years . Such costs are periodically reviewed for recoverability when impairment indicators are present. Such indicators include, among other factors, operating losses, unused capacity, market value declines and technological obsolescence. Recorded values of asset groups of property, plant and equipment that are not expected to be recovered through undiscounted future net cash flows are written down to current fair value, which generally is determined from estimated discounted future net cash flows (assets held for use) or net realizable value (assets held for sale). See Note F for additional information related to property, plant and equipment. |
Leasing Arrangements | Leasing arrangements Ashland determines if an arrangement contains a lease at inception based on whether or not it has the right to control the asset during the contract period and other facts and circumstances. Operating lease right-of-use assets represent Ashland’s right to use an underlying asset for the lease term and lease liabilities represent Ashland’s obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a lease term of 12 months or less at inception are not recorded within the Consolidated Balance Sheet and are expensed on a straight-line basis over the lease term within the Statements of Consolidated Comprehensive Income (Loss). The lease term is determined by assuming the exercise of renewal options that are reasonably certain. As most leases do not provide an implicit interest rate, Ashland used its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. When contracts contain lease and non-lease components, Ashland generally accounts for both components as a single lease component. For additional information on leasing arrangements, see Note J. |
Goodwill and Other Intangibles | Goodwill and other intangibles Ashland tests goodwill and other indefinite-lived intangible assets for impairment annually as of July 1 and when events and circumstances indicate an impairment may have occurred. Ashland reviews goodwill for impairment based on its identified reporting units. Ashland determined that its reporting units are Life Sciences, Personal Care, Specialty Additives and Intermediates. Ashland tests goodwill for impairment by comparing the carrying value to the estimated fair value of its reporting units. If the fair value of the reporting unit is lower than its carrying amount, goodwill is written down for the amount by which the carrying amount exceeds the fair value. However, the loss recognized cannot exceed the carrying amount of goodwill. Using the quantitative approach, Ashland makes various estimates and assumptions in determining the estimated fair value of each reporting unit using a combination of discounted cash flow models and valuations based on earnings multiples for guideline public companies in each reporting unit’s industry peer group, when externally quoted market prices are not readily available. Discounted cash flow models are reliant on various assumptions, including projected business results, long-term growth factors and weighted-average cost of capital. Management judgment is involved in estimating these variables, and they include uncertainties since they are forecasting future events. Ashland performs sensitivity analyses by using a range of inputs to confirm the reasonableness of the long-term growth rate and weighted average cost of capital. Additionally, Ashland compares the indicated equity value to Ashland’s market capitalization and evaluates the resulting implied control premium/discount to determine if the estimated enterprise value is reasonable. Ashland tests at least annually its indefinite-lived intangible assets, principally trademarks and trade names. If the carrying value of an individual indefinite-lived intangible asset exceeds its fair value, such individual indefinite-lived intangible asset is written down by an amount equal to such excess. Ashland performs a quantitative impairment test for the trademarks and trade names during which, trademarks and trade names are valued using a “relief-from-royalty” valuation method compared to the carrying value. Assumptions inherent in the valuation methodologies include, but are not limited to, such estimates as future projected business results, growth rates, the weighted-average cost of capital for a market participant, and royalty rates. Finite-lived intangible assets principally consist of certain trademarks and trade names, intellectual property, and customer lists. These intangible assets 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 20 years , intellectual property over 3 to 20 years and customer and supplier relationships over 10 to 24 years . Ashland reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Ashland monitors these changes and events on at least a quarterly basis. The intangibles amortization expense caption within the Statement of Consolidated Comprehensive Income (Loss) includes amortization expense related to 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. For further information on goodwill and other intangible assets, see Note G. |
Derivative Instruments | Derivative instruments Ashland regularly uses derivative instruments to manage its exposure to fluctuations in foreign currencies and certain commodities. All derivative instruments are recognized as either assets or liabilities on the balance sheet and are measured at fair value. Changes in the fair value of all derivatives are recognized immediately in the Statements of Consolidated Comprehensive Income (Loss) unless the derivative qualifies as a hedge of future cash flows or a hedge of a net investment in a foreign operation. Gains and losses related to an instrument that qualifies for hedge accounting are either recognized in the Statements of Consolidated Comprehensive Income (Loss) immediately to offset the gain or loss on the hedged item, or deferred and recorded in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income and subsequently recognized in the Statements of Consolidated Comprehensive Income (Loss) when the hedged item affects net income. For additional information on derivative instruments, see Note E. |
Restricted Investments | Restricted investments During 2015, Ashland placed $ 335 million of insurance proceeds into a renewable annual trust for asbestos (Asbestos trust) that Ashland determined is restricted for the purpose of paying ongoing and future litigation defense and claim settlement costs incurred in conjunction with asbestos claims. As of September 30, 2023 and 2022 , the funds within the Asbestos trust had a balance of $ 243 million and $ 245 million, respectively, and were primarily invested in public equity, U.S. government bonds and investment grade corporate bond investments with a portion maintained in demand deposits. These funds are presented primarily as noncurrent assets within the restricted investments caption of the Consolidated Balance Sheets, with $ 37 million and $ 27 million classified within other current assets in the Consolidated Balance Sheets as of September 30, 2023 and 2022, respectively. During 2021, Ashland established a renewable annual trust for environmental remediation (Environmental trust) that Ashland determined is restricted for ongoing and future environmental remediation and related litigation costs. As of September 30, 2023 and 2022 , the funds within the Environmental trust had a balance of $ 124 million and $ 129 million, respectively, and were primarily invested in public equity, U.S. government bonds and investment grade corporate bond investments with a portion maintained in demand deposits. These funds are presented primarily as noncurrent assets within the restricted investments caption of the Consolidated Balance Sheets, with $ 40 million and $ 34 million classified within other current assets in the Consolidated Balance Sheets as of September 30, 2023 and 2022, respectively. The funds within these trusts are classified as investment securities reported at fair value. Interest income and gains and losses (realized and unrealized) on the investment securities are reported in the net interest and other expense caption in the Statements of Consolidated Comprehensive Income (Loss). See Note E for additional information regarding the fair value of these investments within the trusts. |
Revenue Recognition | Revenue recognition Ashland’s revenue is measured as the amount of consideration it expects to receive in exchange for transferring goods and is recognized when performance obligations are satisfied under the terms of contracts or purchase orders with customers. Ashland generally utilizes standardized language for the terms of contracts or purchase orders. 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 purchase order, or the amount Ashland expects to receive upon satisfaction of all performance obligations, is determined by reference to the applicable terms. 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 or purchase orders with customers, and nearly all contracts or purchase orders with customers contain a single 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 are not significant and are expensed immediately as the period of performance is generally one year or less. Ashland records credit losses in specific situations when it is determined that the customer is unable to meet its financial obligation. |
Expense Recognition | Expense recognition Cost of sales include material and production costs, as well as the costs of inbound and outbound freight, purchasing and receiving, inspection, warehousing, internal transfers and all other distribution network costs. Selling, general and administrative expense includes sales and marketing costs, advertising, customer support, environmental remediation, corporate and divisional administrative and other costs. Advertising costs ($ 2 million in 2023 , $ 2 million in 2022 and $ 1 million in 2021) and research and development costs ( $ 51 million in 2023, $ 55 million in 2022 and $ 50 million in 2021 ) are expensed as incurred. |
Income Taxes | Income taxes Ashland is subject to income taxes in the United States and numerous foreign jurisdictions. The provision for income taxes includes income taxes paid, currently payable or receivable, and deferred taxes. Ashland recognizes the income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Ashland evaluates and adjusts these accruals based on changing facts and circumstances. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities, and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Deferred tax assets are also recognized for the estimated future effects of tax loss and credit carryforwards. The effect on deferred taxes of changes in tax rates is recognized in the period in which the enactment date occurs. Taxes due on future Global Intangible Low-Taxed Income (GILTI) inclusions in U.S. are recognized as a current period expense when incurred. Valuation allowances are established when necessary on a jurisdictional basis to reduce deferred tax assets to the amounts expected to be realized. In the event that the actual outcome of future tax consequences differs from Ashland’s estimates and assumptions due to changes or future events such as tax legislation, geographic mix of earnings, completion of tax audits or earnings repatriation plans, the resulting change to the provision for income taxes could have a material effect on the Statements of Consolidated Comprehensive Income (Loss) and Consolidated Balance Sheets. For additional information on income taxes, see Note K. A progression of activity in the tax valuation allowances is presented in the following table. (In millions) 2023 2022 2021 Tax valuation allowances - beginning of year $ 56 $ 74 $ 75 Adjustments to valuation allowances ( 1 ) ( 19 ) 9 Reserves utilized 1 1 ( 10 ) Tax valuation allowances - end of year $ 56 $ 56 $ 74 |
Asbestos-related Litigation | Asbestos-related 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. Ashland retained Gnarus Advisors LLC (Gnarus) to assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs given various assumptions. The methodology used to project future asbestos costs is based largely on Ashland’s recent experience, including claim-filing and settlement rates, disease mix, open claims, and litigation defense. Ashland’s claim experience is compared to the results of previously conducted epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, Gnarus estimates a range of the number of future claims that may be filed, as well as the related costs that may be incurred in resolving those claims. Ashland records the amount it believes to be the best estimate of future payments for litigation defense and claim settlement costs using the results of a non-inflated, non-discounted approximate 40-year model. For additional information on asbestos-related litigation, see Note M. Ashland and Hercules have liabilities from claims alleging personal injury caused by exposure to asbestos. To assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs, Ashland has retained third party actuarial experts Gnarus. The methodology used by Gnarus to project future asbestos costs is based largely on recent experience, including claim-filing and settlement rates, disease mix, open claims and litigation defense. The claim experience of Ashland and Hercules are separately compared to the results of previously conducted third party epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, Gnarus estimates a range of the number of future claims that may be filed, as well as the related costs that may be incurred in resolving those claims. Changes in asbestos-related liabilities and receivables are recorded on an after-tax basis within the discontinued operations caption in the Statements of Consolidated Comprehensive Income (Loss). |
Environmental Remediation | Environmental remediation Accruals for environmental remediation are recognized when it is probable a liability has been incurred and the amount of that liability can be reasonably estimated. Such costs are charged to expense if they relate to the remediation of conditions caused by past operations or are not expected to mitigate or prevent contamination from future operations. Accruals for environmental remediation reflect Ashland's estimates of the most likely costs that will be incurred over an extended period of time to remediate identified conditions for which costs are reasonably estimatible and probable of being incurred, without regard to any third-party recoveries, and are regularly adjusted as environmental assessments and remediation efforts continue. For additional information on environmental remediation, see Note M. 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, 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 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. |
Pension and Other Postretirement Benefits | Pension and other postretirement benefits The funded status of Ashland’s pension and other postretirement benefit plans is recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at September 30, the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (PBO) and for the other postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation (APBO). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The measurement of the benefit obligation is based on Ashland’s estimates and actuarial valuations. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain assumptions that require judgment, including, but not limited to, estimates of discount rates, rate of compensation increases, interest rates and mortality rates. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. For additional information regarding plan assumptions and the current financial position of the pension and other postretirement plans, see Note L. Ashland recognizes the change in the fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for a remeasurement. The remaining components of pension and other postretirement benefits expense are recorded ratably on a quarterly basis. Pension and other postretirement benefits adjustments charged directly to cost of sales that are applicable to inactive participants are excluded from inventoriable costs. The service cost component of pension and other postretirement benefits costs is allocated to each reportable segment; while the remaining components of pension and other postretirement benefits costs are recorded within the other net periodic benefit loss (income) caption on the Statements of Consolidated Comprehensive Income (Loss). |
Foreign Currency Translation | Foreign currency translation Subsidiaries outside the United States primarily use the local currency as the functional currency. Upon consolidation, the results of operations of the subsidiaries and affiliates whose functional currency is other than the U.S. dollar are translated into U.S. dollars at the average exchange rates for the year while assets and liabilities are translated at year-end exchange rates. Adjustments to translate assets and liabilities into U.S. dollars are recorded in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income (loss) and are included in net earnings only upon sale or substantial liquidation of the underlying foreign subsidiary or affiliated company. |
Stock Incentive Plans | Stock incentive plans Ashland recognizes compensation expense for stock incentive plans awarded to key employees and directors over the requisite service period based upon the grant-date fair value. Stock incentive awards are primarily in the form of restricted stock and restricted stock units, performance shares and other non-vested stock awards. Ashland utilizes several industry accepted valuation models to determine grant-date fair value. For further information concerning stock incentive plans, see Note O. |
Earnings Per Share | Earnings per share The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Earnings per share are reported under the treasury stock method. SARs and warrants for each reported year whose grant price was greater than the market price of Ashland Common Stock at the end of each fiscal year were not included in the computation of earnings per share from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was 1.2 million for 2023, 2022 and 2021 . The majority of these shares are for warrants with a strike price of $ 128.66 . (In millions except per share data) 2023 2022 2021 Numerator Numerator for basic and diluted EPS - Income (loss) from continuing operations, net of tax $ 168 $ 181 $ 173 Denominator Denominator for basic EPS - Weighted-average common shares outstanding 53 55 60 Share based awards convertible to common shares 1 1 1 Denominator for diluted EPS - Adjusted weighted - average shares and assumed conversions 54 56 61 EPS from continuing operations Basic $ 3.18 $ 3.26 $ 2.85 Diluted $ 3.13 $ 3.20 $ 2.82 |
Other Accounting Pronouncements | Other accounting pronouncements In December 2022, the Financial Accounting Standards Board (FASB) issued ASU No. 2022-06 "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848." The ASU was issued to provide an update on ASU 2020-04 and ASU 2021-01 that were issued in March 2020 and January 2021, respectively, which provided practical expedients simplifying the U.S. GAAP treatment of certain reference rate related contract modifications including hedging relationships and other agreements. Specifically, the guidance eased the accounting burden of the modification of the reference rate of contracts where the underlying reference rate was the London Interbank Offered Rate (LIBOR). With the issuance of ASU 2022-06, the sunset date of Topic 848 has been deferred from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. This guidance did not have a material impact on Ashland's Consolidated Financial Statements. In June 2016, the FASB issued ASU No. 2016-13 "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The ASU 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. This guidance became effective for Ashland on October 1, 2020 . As a result, Ashland recorded a $ 3 million increase in its allowance for credit losses, primarily related to asbestos receivables, and a $ 2 million decrease to retained earnings, net of tax, reflecting the cumulative effect on retained earnings. |
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 through the use of fair value models, such as a discounted cash flow model or other standard pricing models that Ashland deems reasonable. |
Goodwill and Intangible Assets, Goodwill | Goodwill Ashland performed its annual goodwill impairment test using the quantitative approach as of July 1, 2023, and concluded that the reporting unit fair values for all reporting units exceeded their carrying values. No impairment existed as of that date and no subsequent impairment indicators have been identified. |
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 20 years , intellectual property over 3 to 20 years , and customer and supplier relationships over 10 to 24 years . |
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived | Ashland performed its annual impairment test for other indefinite lived intangible assets using the quantitative approach as of July 1, 2023 and concluded that the assets fair values exceeded their carrying values. No impairment existed as of that date. |
Segment Reporting | Ashland determines its reportable segments based on how operations are managed internally for the products and services sold to customers, including how the results are reviewed by the chief operating decision maker, which includes determining resource allocation methodologies used for reportable segments. Operating income and EBITDA are the primary measures of performance that are reviewed by the chief operating decision maker in assessing each reportable segment's financial performance. Ashland does not aggregate operating segments to arrive at these reportable segments. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Significant Accounting Policies [Line Items] | |
Summary of Inventories | The following summarizes Ashland’s inventories as of the Consolidated Balance Sheet dates. (In millions) 2023 2022 Finished products $ 390 $ 391 Raw materials, supplies and work in process 236 238 $ 626 $ 629 |
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. Earnings per share are reported under the treasury stock method. SARs and warrants for each reported year whose grant price was greater than the market price of Ashland Common Stock at the end of each fiscal year were not included in the computation of earnings per share from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was 1.2 million for 2023, 2022 and 2021 . The majority of these shares are for warrants with a strike price of $ 128.66 . (In millions except per share data) 2023 2022 2021 Numerator Numerator for basic and diluted EPS - Income (loss) from continuing operations, net of tax $ 168 $ 181 $ 173 Denominator Denominator for basic EPS - Weighted-average common shares outstanding 53 55 60 Share based awards convertible to common shares 1 1 1 Denominator for diluted EPS - Adjusted weighted - average shares and assumed conversions 54 56 61 EPS from continuing operations Basic $ 3.18 $ 3.26 $ 2.85 Diluted $ 3.13 $ 3.20 $ 2.82 |
Allowance for Credit Losses [Member] | |
Significant Accounting Policies [Line Items] | |
Schedule of Valuation and Qualifying Accounts Disclosure | A progression of activity in the allowance for credit losses is presented in the following table. (In millions) 2023 2022 2021 Allowance for credit losses - beginning of year $ 4 $ 3 $ 3 Adjustments to allowances for credit losses 1 2 1 Reserves utilized ( 2 ) ( 1 ) ( 1 ) Allowance for credit losses - end of year $ 3 $ 4 $ 3 |
Inventory Reserve [Member] | |
Significant Accounting Policies [Line Items] | |
Schedule of Valuation and Qualifying Accounts Disclosure | A progression of activity in the inventory reserves for obsolete and slow moving inventories, which reduce the amounts of finished products and raw materials, supplies and work in process reported, is presented in the following table. (In millions) 2023 2022 2021 Inventory reserves - beginning of year $ 13 $ 13 $ 16 Adjustments to inventory reserves 11 3 2 Reserves utilized ( 3 ) ( 3 ) ( 5 ) Inventory reserves - end of year $ 21 $ 13 $ 13 |
Valuation Allowance of Deferred Tax Assets [Member] | |
Significant Accounting Policies [Line Items] | |
Schedule of Valuation and Qualifying Accounts Disclosure | A progression of activity in the tax valuation allowances is presented in the following table. (In millions) 2023 2022 2021 Tax valuation allowances - beginning of year $ 56 $ 74 $ 75 Adjustments to valuation allowances ( 1 ) ( 19 ) 9 Reserves utilized 1 1 ( 10 ) Tax valuation allowances - end of year $ 56 $ 56 $ 74 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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 each of the years ended September 30. (In millions) 2023 2022 2021 Income (loss) from discontinued operations Performance Adhesives $ ( 1 ) $ 33 $ 83 Composites/Marl facility ( 1 ) — ( 1 ) Valvoline 15 ( 7 ) ( 33 ) Water Technologies — 5 ( 4 ) Distribution ( 5 ) ( 9 ) ( 6 ) Asbestos-related litigation ( 6 ) ( 17 ) ( 11 ) Gain on disposal of discontinued operations Performance Adhesives — 1,063 — Composites/Marl facility — — ( 4 ) Water Technologies — — 1 Income before taxes 2 1,068 25 Income tax benefit (expense) Benefit (expense) related to income (loss) from discontinued operations Performance Adhesives 6 8 ( 19 ) Composites/Marl facility — 2 1 Valvoline — 1 36 Water Technologies — ( 1 ) 1 Distribution 1 2 1 Asbestos-related litigation 1 3 2 Expense related to gain on disposal of discontinued operations Performance Adhesives — ( 337 ) — Income from discontinued operations, net of income taxes $ 10 $ 746 $ 47 |
Performance Adhesives [Member] | |
Components of Amounts in the Statements of Consolidated Income (Loss) Related To Discontinued Operations | The following table presents a reconciliation of the captions within Ashland’s Statements of Consolidated Income (Loss) for the income from discontinued operations attributable to the Performance Adhesives segment for each of the years ended September 30. (In millions) 2022 2021 Income(loss) from discontinued operations attributable to Performance Adhesives Sales $ 171 $ 372 Cost of sales ( 122 ) ( 256 ) Selling, general and administrative expense ( 12 ) ( 25 ) Research and development expense ( 4 ) ( 8 ) Intangible amortization expense — ( 1 ) Pretax operating income of discontinued operations 33 82 Other net periodic benefit loss (income) — ( 1 ) Pretax income of discontinued operations 33 83 Income tax expense 8 ( 19 ) Income from discontinued operations $ 41 $ 64 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Amount of Restructuring Reserves Related to Program | The following table details at September 30, 2023, the amount of restructuring severance reserves related to this program. The severance reserves were primarily recorded within accrued expenses and other liabilities in the Consolidated Balance Sheet as of September 30, 2022. (In millions) Severance costs Balance as of September 30, 2021 $ 6 Restructuring reserve ( 2 ) Utilization (cash paid) ( 3 ) Balance as of September 30, 2022 $ 1 Restructuring reserve ( 1 ) Utilization (cash paid) — Balance as of September 30, 2023 $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |
Summary of Financial Instruments Subject to Recurring Fair Value Measurements | The following table summarizes financial instruments subject to recurring fair value measurements as of September 30, 2023. For additional information on fair value hierarchy measurements of pension plan asset holdings, see Note L. Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying Total fair assets inputs inputs (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 417 $ 417 $ 417 $ — $ — Restricted investments (a) (b) 367 367 367 — — Investments of captive insurance company (c) 6 6 6 — — Foreign currency derivatives (d) 1 1 — 1 — Total assets at fair value $ 791 $ 791 $ 790 $ 1 $ — Liabilities Foreign currency derivatives (e) $ 1 $ 1 $ — $ 1 $ — Commodity derivatives (e) 4 4 — 4 — Total liabilities at fair value $ 5 $ 5 $ — $ 5 $ — (a) Included in restricted investments and $ 77 million within other current assets in the Consolidated Balance Sheets. (b) Includes $ 243 million related to the Asbestos trust and $ 124 million related to the Environmental trust. See Note A for additional details. (c) Included in other noncurrent assets in the Consolidated Balance Sheets. (d) Included in accounts receivable in the Consolidated Balance Sheets. (e) Included in accrued expenses and other liabilities in the Consolidated Balance Sheets. The following table summarizes financial instruments subject to recurring fair value measurements as of September 30, 2022. Quoted prices in active Significant markets for other Significant identical observable unobservable Carrying Total fair assets inputs inputs (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 646 $ 646 $ 646 $ — $ — Restricted investments (a) (b) 374 374 374 — — Investments of captive insurance company (c) 9 9 9 — — Foreign currency derivatives 1 1 — 1 — Commodity derivatives (d) 4 4 — 4 — Total assets at fair value $ 1,034 $ 1,034 $ 1,029 $ 5 $ — Liabilities Foreign currency derivatives (e) $ 9 $ 9 $ — $ 9 $ — Commodity derivatives (e) 1 1 — 1 — Total liabilities at fair value $ 10 $ 10 $ — $ 10 $ — (a) Included in restricted investments and $ 61 million within other current assets in the Consolidated Balance Sheets. (b) Includes $ 245 million related to the Asbestos trust and $ 129 million related to the Environmental trust. See Note A for additional details. (c) Included in other noncurrent assets in the Consolidated Balance Sheets. (d) Included in accounts receivable in the Consolidated Balance Sheets. (e) Included in accrued expenses and other liabilities in the Consolidated Balance Sheets. |
Summary of Restricted Investment Portfolio | The following table presents gross unrealized gains and losses for the restricted securities as of September 30, 2023 and 2022: Gross Gross (In millions) Adjusted Cost Unrealized Gain Unrealized Loss Fair Value As of September 30, 2023 Demand deposit $ 12 $ — $ — $ 12 Equity mutual fund 155 24 ( 2 ) 177 Fixed income mutual fund 226 — ( 48 ) 178 Fair value $ 393 $ 24 $ ( 50 ) $ 367 As of September 30, 2022 Demand deposit $ 6 $ — $ — $ 6 Equity mutual fund 186 20 ( 25 ) 181 Fixed income mutual fund 234 — ( 47 ) 187 Fair value $ 426 $ 20 $ ( 72 ) $ 374 |
Summary of Investment Income, Net Gains and Losses, Funds restricted for Specific Transactions and Disbursements Related to Investments | The following table presents the investment income, net gains and losses realized, funds restricted for specific transactions, and disbursements related to the investments within the restricted investments portfolio during 2023, 2022 and 2021. (In millions) 2023 2022 2021 Investment income (a) $ 13 $ 16 $ 12 Net gains (losses) (a) 29 ( 102 ) 21 Funds restricted for specific transactions 9 74 91 Disbursements ( 58 ) ( 35 ) ( 33 ) (a) Included in the net interest and other expense caption within the Statements of Consolidated Comprehensive Income (Loss). |
Summary of Net Gains and Losses on Foreign Currency Derivatives | The following table summarizes the gains and losses recognized during 2023, 2022 and 2021 within the Statements of Consolidated Comprehensive Income (Loss). (In millions) 2023 2022 2021 Foreign currency derivative gains (losses) (a) $ 10 $ ( 40 ) $ 4 (a) Includes a $ 1 million gain reported within the income on acquisitions and divestitures, net caption for fiscal 2021. |
Summary of Fair Values of Outstanding Foreign Currency Derivatives | The following table summarizes the fair values of the outstanding foreign currency derivatives as of September 30, 2023, and 2022 included in accounts receivable and accrued expenses and other liabilities of the Consolidated Balance Sheets. (In millions) 2023 2022 Foreign currency derivative assets $ 1 $ 1 Notional contract values 147 133 Foreign currency derivative liabilities $ 1 $ 9 Notional contract values 103 535 |
Commodity Derivatives [Member] | |
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |
Summary of Net Gains and Losses on Derivatives | The following table summarizes the gains and losses recognized during 2023, 2022, 2021 within the cost of sales caption of the Statements of Consolidated Comprehensive Income (Loss). (In millions) 2023 2022 2021 Commodity derivative gains (losses) $ ( 3 ) $ 10 $ 1 |
Summary of Fair Values of Outstanding Derivatives | The following table summarizes the fair values of the outstanding commodity derivatives as of September 30, 2023 and 2022 included in accounts receivable and accrued expenses and other liabilities of the Consolidated Balance Sheets. (In millions) 2023 2022 Commodity derivative assets $ — $ 4 Notional contract values 2 13 Commodity derivative liabilities $ 4 $ 1 Notional contract values 16 9 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment in Consolidated Balance Sheets | The following table describes the various components of property, plant and equipment within the Consolidated Balance Sheets as of September 30, 2023 and 2022. (In millions) 2023 2022 Land $ 146 $ 138 Buildings 467 458 Machinery and equipment 2,371 2,324 Construction in progress 227 130 Total property, plant and equipment (gross) 3,211 3,050 Accumulated depreciation ( 1,838 ) ( 1,712 ) Total property, plant and equipment (net) $ 1,373 $ 1,338 |
Summary of Property, Plant and Equipment Charges Included in Statements of Consolidated Comprehensive Income | The following table summarizes various property, plant and equipment charges recognized during 2023, 2022, 2021 within the Statements of Consolidated Comprehensive Income. (In millions) 2023 2022 2021 Depreciation $ 150 $ 147 $ 154 Capitalized interest 4 1 2 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Reportable Segment | The following is a progression of goodwill by reportable segment for the years ended September 30, 2023 and 2022. (In millions) Life Personal Care (a) Specialty (a) Intermediates (a) Total Balance at September 30, 2021 $ 856 $ 129 $ 445 $ — $ 1,430 Currency translation and other ( 69 ) ( 11 ) ( 38 ) — ( 118 ) Balance at September 30, 2022 787 118 407 — 1,312 Currency translation and other 32 4 14 — 50 Balance at September 30, 2023 $ 819 $ 122 $ 421 $ — $ 1,362 (a) As of September 30, 2023 and 2022, there were accumulated impairme nts of $ 356 million, $ 174 million, and $ 90 million rel ated to the Personal Care, Specialty Additives, and Intermediates reportable segments, respectively. |
Summary of Other Intangible Assets | Other intangible assets were comprised of the following as of September 30, 2023 and 2022. 2023 2022 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying (In millions) amount amortization amount amount amortization amount Definite-lived intangible assets Trademarks and trade names $ 97 $ ( 43 ) $ 54 $ 95 $ ( 37 ) $ 58 Intellectual property 731 ( 581 ) 150 718 ( 523 ) 195 Customer and supplier relationships 821 ( 417 ) 404 801 ( 369 ) 432 Total definite-lived intangible assets 1,649 ( 1,041 ) 608 1,614 ( 929 ) 685 Indefinite-lived intangible assets Trademarks and trade names 278 — 278 278 — 278 Total intangible assets $ 1,927 $ ( 1,041 ) $ 886 $ 1,892 $ ( 929 ) $ 963 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Current and Long-term Debt | The following table summarizes Ashland’s current and long-term debt at September 30, 2023 and 2022. (In millions) 2023 2022 3.375 % Senior Notes, due 2031 $ 450 $ 450 2.00 % Senior Notes, due 2028 (Euro 500 million principal) 528 489 6.875 % notes, due 2043 282 282 6.50 % junior subordinated notes, due 2029 64 60 Other (a) 6 ( 11 ) Total debt 1,330 1,270 Short-term debt 16 — Long-term debt (less debt issuance costs) $ 1,314 $ 1,270 (a) Other includes $ 13 million and $ 14 million of debt issuance costs as of September 30, 2023 and 2022 , respectively. The current portion of the long-term debt was zero for both September 30, 2023 and 2022. |
Summary of Net Interest and Other Expense (Income) | Net interest and other expense (income) (In millions) 2023 2022 2021 Interest expense (a) $ 54 $ 62 $ 69 Interest income ( 12 ) ( 4 ) ( 1 ) Loss on the accounts receivables sale program 3 1 1 Investment securities loss (income) (b) ( 42 ) 86 ( 33 ) Other financing costs (c) 3 4 20 $ 6 $ 149 $ 56 (a) Includes $ 1 million and $ 1 million of accelerated accretion and/or amortization for original issue discounts and debt issuance costs during 2022 and 2021 , respectively. (b) Represents investment loss (income) related to the restricted investments discussed in Note E. (c) Includes costs of $ 16 million related to early redemption premium payments for the 2022 notes during 2021. |
Summary of Debt Issuance Cost Amortization | The following table details the debt issuance cost and original issue discount amortization included in interest expense during 2023, 2022 and 2021. (In millions) 2023 2022 2021 Normal amortization $ 6 $ 6 $ 6 Accelerated amortization (a) — 1 1 Total $ 6 $ 7 $ 7 (a) Fiscal year 2022 includes $ 1 million of accelerated debt issuance costs for the 2020 credit agreement. 2021 includes $ 1 million of accelerated debt issuance cost for the 2022 Notes. |
Other Noncurrent Assets and L_2
Other Noncurrent Assets and Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Other Noncurrent Assets And Liabilities [Abstract] | |
Schedule of Other Assets and Other Liabilities | The following table provides the components of other noncurrent assets in the Consolidated Balance Sheets as of September 30. (In millions) 2023 2022 Deferred compensation investments $ 87 $ 85 Tax and tax indemnity receivables 6 2 Life insurance policies 76 73 Manufacturing catalyst supplies 24 25 Defined benefit plan assets 17 21 Equity and other unconsolidated investments 3 3 Land use rights 6 6 Environmental insurance receivables 15 17 Debt issuance costs 2 2 Other 15 20 $ 251 $ 254 The following table provides the components of other noncurrent liabilities in the Consolidated Balance Sheets as of September 30. (In millions) 2023 2022 Tax liabilities $ 79 $ 127 Environmental remediation reserves 165 157 Deferred compensation 25 25 Other 22 16 $ 291 $ 325 |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Components of Lease Cost Recognized | The components of lease cost recognized within the Statements of Consolidated Comprehensive Income (Loss) were as follows: (In millions) Location 2023 2022 2021 Lease cost: Operating lease cost Selling, General & Administrative $ 13 $ 13 $ 13 Operating lease cost Cost of Sales 15 16 15 Variable lease cost Selling, General & Administrative 4 5 3 Variable lease cost Cost of Sales 6 4 3 Short-term leases Cost of Sales 2 3 3 Total lease cost (a) $ 40 $ 41 $ 37 (a) Includes $ 2 million lease termination fee in fiscal 2022 . |
Summary of Lease Assets and Liabilities | The following table summarizes Ashland’s lease assets and liabilities as presented in the Consolidated Balance Sheet at September 30: (In millions) 2023 2022 Assets Operating lease assets, net $ 122 $ 107 Total lease assets $ 122 $ 107 Liabilities Current operating lease obligations $ 22 $ 19 Non-current operating lease obligations 106 94 Total lease liabilities $ 128 $ 113 |
Schedule of Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities | The following table provides cash paid for amounts included in the measurement of operating lease liabilities for during 2023, 2022 and 2021: (In millions) 2023 2022 2021 Operating cash flows from operating leases $ 27 $ 29 $ 29 |
Schedule of Maturities Analysis of Lease Liabilities | The following table summarizes Ashland's maturities of lease liabilities as of September 30, 2023: (In millions) 2023 2024 $ 24 2025 20 2026 15 2027 13 2028 10 Thereafter 85 Total lease payments 167 Less amount of lease payment representing interest ( 39 ) Total present value of lease payments $ 128 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision for Income Taxes Related to Continuing Operations | A summary of the provision for income taxes related to continuing operations follows. (In millions) 2023 2022 2021 Current Federal $ ( 17 ) $ 3 $ ( 35 ) State ( 5 ) 7 ( 2 ) Foreign 46 50 25 24 60 ( 12 ) Deferred ( 32 ) ( 35 ) ( 26 ) Income tax expense (benefit) $ ( 8 ) $ 25 $ ( 38 ) |
Summary of Temporary Differences of Deferred Tax Assets and Liabilities | Temporary differences that give rise to significant deferred tax assets and liabilities as of September 30 are presented in the following table. (In millions) 2023 2022 Deferred tax assets Foreign net operating loss carryforwards (a) $ 24 $ 23 Employee benefit obligations 17 18 Environmental, self-insurance and litigation reserves (net of receivables) 110 116 State net operating loss carryforwards (net of unrecognized tax benefits) (b) 18 19 Compensation accruals 25 29 Credit carryforwards (net of unrecognized tax benefits) (c) 18 20 Other items 25 21 Other lease liability 13 17 Valuation allowances (d) ( 56 ) ( 56 ) Total deferred tax assets 194 207 Deferred tax liabilities Goodwill and other intangibles (e) 150 169 Property, plant and equipment 158 175 Right of use assets 12 16 Other — 3 Total deferred tax liabilities 320 363 Net deferred tax liability $ ( 126 ) $ ( 156 ) (a) Gross net operating loss carryforwards of $ 99 million will expire in future years beyond 2024 or have no expiration, and primarily relate to European and Asian subsidiaries. (b) Apportioned net operating loss carryforwards generated of $ 462 million will expire in future years as follows: $ 78 million in 2024, $ 56 million in 2025 and the remaining balance in other future years. (c) Credit carryforwards consist primarily of foreign tax credits of $ 17 million expiring in future years, and state tax credits of $ 1 million that will expire in 2026 and other future years. (d) Valuation allowances primarily relate to certain state and foreign net operating loss carryforwards and certain federal credit carryforwards. (e) The total gross amount of goodwill as of September 30, 2023 expected to be deductible for tax purposes is $ 42 million. |
Summary of Income from Continuing Operations Before Income Taxes and Reconciliation of Provision for Income Taxes | The U.S. and foreign components of income from continuing operations before income taxes and a reconciliation of the statutory federal income tax with the provision for income taxes follow. The foreign components of income from continuing operations disclosed in the following table exclude any allocations of certain corporate expenses incurred in the U.S. (In millions) 2023 2022 2021 Income (loss) from continuing operations before income taxes United States $ ( 112 ) $ ( 133 ) $ ( 96 ) Foreign 272 339 231 Income from continuing operations before income taxes $ 160 $ 206 $ 135 Income taxes computed at U.S. statutory rate $ 34 $ 43 $ 28 Increase (decrease) in amount computed resulting from Uncertain tax positions ( 26 ) ( 6 ) ( 49 ) Deemed inclusions, foreign dividends and other restructuring (a) 32 40 25 Foreign tax credits ( 22 ) ( 32 ) ( 20 ) Valuation allowance changes (b) ( 7 ) ( 4 ) 4 Research and development credits ( 3 ) ( 2 ) ( 3 ) State taxes ( 1 ) ( 4 ) ( 5 ) Goodwill impairment — — 2 International rate differential ( 16 ) ( 27 ) ( 18 ) Other items (c) 1 17 ( 2 ) Income tax expense (benefit) $ ( 8 ) $ 25 $ ( 38 ) (a) 2023 includes $ 19 million related to GILTI permanent adjustments and $ 12 million related to Subpart F. 2022 includes $ 31 million primarily related to GILTI permanent adjustment. 2021 includes $ 17 million primarily related to GILTI permanent adjustments. (b) 2023 includes net $ 2 million related to deferred taxes and foreign tax credits. 2022 includes $ 4 million related to state NOL's. 2021 includes $ 13 million related to certain foreign tax credits partially offset by $ 5 million related to state NOL's and $ 4 million related to foreign jurisdictions. (c) 2023 includes miscellaneous items of $ 1 million. 2022 includes $ 8 million related to withholding tax. 2021 includes $ 14 million related to the sale of a Specialty Additives facility partially offset by miscellaneous other items. |
Summary of Changes in Unrecognized Tax Benefits | Changes in unrecognized tax benefits were as follows: (In millions) Balance at September 30, 2021 $ 82 Decreases related to positions taken on items from prior years ( 5 ) Increases related to positions taken in the current year 19 Lapse of statute of limitations ( 12 ) Balance at September 30, 2022 $ 84 Decreases related to positions taken on items from prior years ( 30 ) Increases related to positions taken in the current year 8 Increases related to positions taken in the prior year 1 Lapse of statute of limitations ( 4 ) Balance at September 30, 2023 $ 59 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Costs of Retirement Plans | The following table summarizes the components of pension and other postretirement benefit costs for continuing operations and the assumptions used to determine net periodic benefit loss (income) for the plans. Pension benefits Other postretirement benefits (In millions) 2023 2022 2021 2023 2022 2021 Net periodic benefit loss (income) Service cost (a) $ 3 $ 4 $ 5 $ 1 $ 1 $ 1 Interest cost (b) 13 8 6 2 2 2 Curtailment, settlement and other (b) — ( 1 ) — — — — Expected return on plan assets (b) ( 7 ) ( 7 ) ( 8 ) — — — Actuarial (gain) loss (b) — ( 16 ) 3 ( 2 ) ( 8 ) ( 2 ) $ 9 $ ( 12 ) $ 6 $ 1 $ ( 5 ) $ 1 Weighted-average plan assumptions (c) Discount rate for service cost 4.56 % 2.99 % 1.81 % 5.80 % 3.19 % 3.15 % Discount rate for interest cost 5.44 % 3.33 % 1.69 % 5.54 % 2.10 % 1.93 % Rate of compensation increase 3.07 % 2.50 % 2.53 % Expected long-term rate of return on plan assets 4.25 % 2.89 % 2.43 % (a) Service cost is classified within the selling, general and administrative expense and cost of sales captions on the Statements of Consolidated Comprehensive Income (Loss). (b) These components are classified within the other net periodic benefit loss (income) caption on the Statements of Consolidated Comprehensive Income (Loss). (c) The plan assumptions discussed are a blended weighted-average rate for Ashland’s U.S. and non-U.S. plans. |
Total Prior Service Credits Recognized In Accumulated Other Comprehensive Income | At September 30, 2023 and 2022, the amounts included in accumulated other comprehensive income are shown in the following table. Pension Postretirement (In millions) 2023 2022 2023 2022 Prior service cost $ 2 $ 2 $ — $ — |
Schedule of Defined Benefit Plans Disclosures | Actuarial valuations are performed for the pension and other postretirement benefit plans to determine Ashland’s obligation for each plan. In accordance with U.S. GAAP, Ashland recognizes the unfunded status of the plans as a liability in the Consolidated Balance Sheets. Summaries of the change in benefit obligations, plan assets, funded status of the plans, amounts recognized in the balance sheet, and assumptions used to determine the benefit obligations for 2023 and 2022 are as follows: Other postretirement Pension plans benefit plans (In millions) 2023 2022 2023 2022 Change in benefit obligations Benefit obligations at October 1 $ 250 $ 422 $ 36 $ 47 Service cost 3 4 1 1 Interest cost 13 8 2 2 Participant contributions — — — — Benefits paid ( 16 ) ( 16 ) ( 4 ) ( 6 ) Actuarial (gain) loss ( 10 ) ( 123 ) ( 1 ) ( 8 ) Curtailments — ( 1 ) — — Foreign currency exchange rate changes 15 ( 38 ) — — Other (including acquisitions) — ( 1 ) — — Settlements — ( 5 ) — — Benefit obligations at September 30 $ 255 $ 250 $ 34 $ 36 Change in plan assets Value of plan assets at October 1 $ 201 $ 351 $ — $ — Actual return on plan assets ( 2 ) ( 100 ) — — Employer contributions 8 5 — — Participant contributions — — — — Benefits paid ( 16 ) ( 16 ) — — Foreign currency exchange rate changes 14 ( 33 ) — — Settlements — ( 5 ) — — Other ( 2 ) ( 1 ) — — Value of plan assets at September 30 $ 203 $ 201 $ — $ — Unfunded status of the plans $ ( 52 ) $ ( 49 ) $ ( 34 ) $ ( 36 ) Amounts recognized in the balance sheet Other assets (noncurrent) $ 17 $ 21 $ — $ — Accrued expenses and other liabilities ( 4 ) ( 3 ) ( 3 ) ( 4 ) Employee benefit obligations ( 65 ) ( 67 ) ( 31 ) ( 32 ) Net amount recognized $ ( 52 ) $ ( 49 ) $ ( 34 ) $ ( 36 ) Weighted-average plan assumptions Discount rate 5.43 % 5.09 % 5.72 % 2.98 % Rate of compensation increase 3.07 % 2.50 % |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The accumulated benefit obligation for all pension plans was $ 250 million at September 30, 2023 and $ 245 million at September 30, 2022. All Ashland pension plans are either qualified U.S. or non-US plans. Information for pension plans with an accumulated benefit obligation in excess of plan assets follows: (In millions) 2023 2022 Projected benefit obligation $ 149 $ 146 Accumulated benefit obligation 144 141 Fair value of plan assets 80 76 |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect future service expectations, are projected to be paid from plan assets in each of the next five years and in aggregate for five years thereafter. Other Pension postretirement (In millions) benefits benefits 2024 $ 15 $ 3 2025 16 3 2026 17 3 2027 18 3 2028 17 3 2029 - 2033 90 15 |
Plan Asset Fair Value Heirarchy [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the various investment categories that the pension plan assets are invested in and the applicable fair value hierarchy that the financial instruments are classified within these investment categories as of September 30, 2023. For additional information and a detailed description of each level within the fair value hierarchy, see Note E. Quoted prices in active Significant markets for other Significant identical observable unobservable Total fair assets inputs inputs (In millions) value Level 1 Level 2 Level 3 Cash and cash equivalents $ 11 $ 11 $ — $ — U.S. Government securities 6 — 6 — Non-U.S. Government securities 39 — 39 — Corporate debt instruments 80 — 80 — Listed real assets 9 — 9 — Asset-backed securities 7 — 7 — Corporate stocks 25 — 25 — Insurance contracts 26 — 26 — Total assets at fair value $ 203 $ 11 $ 192 $ — The following table summarizes the various investment categories that the pension plan assets are invested in and the applicable fair value hierarchy that the financial instruments are classified within these investment categories as of September 30, 2022. Quoted prices in active Significant markets for other Significant identical observable unobservable Total fair assets inputs inputs (In millions) value Level 1 Level 2 Level 3 Cash and cash equivalents $ 1 $ 1 $ — $ — U.S. Government securities 10 — 10 — Non-U.S. Government securities 24 — 24 — Corporate debt instruments 90 — 90 — Listed real assets 9 — 9 — Asset-backed securities 17 — 17 — Corporate stocks 27 — 27 — Insurance contracts 23 — 23 — Total assets at fair value $ 201 $ 1 $ 200 $ — |
Plan Asset Allocation by Asset Type [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Allocation of Plan Assets | Ashland’s investment strategy and management practices relative to plan assets of non-U.S. plans generally are consistent with those for U.S. plans, except in those countries where investment of plan assets is dictated by applicable regulations. Although the investment allocation may vary based on funding percentages and whether plans are still accruing additional liabilities, the weighted-average asset allocations for Ashland’s U.S. and non-U.S. plans at September 30, 2023 and 2022 by asset category follow. Actual at September 30 (In millions) Target 2023 2022 Plan assets allocation Equity securities 5 - 45 % 18 % 14 % Fixed income securities 55 - 95 % 78 % 81 % Other 0 - 5 % 4 % 5 % 100 % 100 % |
Litigation, Claims and Contin_2
Litigation, Claims and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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 2023 and 2022. (In millions) 2023 2022 Environmental remediation reserve - beginning of year $ 211 $ 207 Disbursements ( 54 ) ( 63 ) Revised obligation estimates and accretion 57 67 Environmental remediation reserve - end of year $ 214 $ 211 |
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 years ended September 30, 2023, 2022 and 2021. (In millions) 2023 2022 2021 Environmental expense $ 56 $ 66 $ 50 Accretion 1 1 1 Legal expense 3 4 4 Total expense 60 71 55 Insurance receivable ( 1 ) ( 5 ) ( 4 ) Total expense, net of receivable activity (a) $ 59 $ 66 $ 51 (a) Net expense of $ 5 million, $ 13 million and $ 6 million for the fiscal years ended September 30, 2023, 2022 and 2021 , respectively, related to divested businesses which qualified for treatment as discontinued operations and for which certain environmental liabilities were retained by Ashland. These amounts are classified within the income from discontinued operations caption of the Statements of Consolidated Comprehensive Income (Loss). |
Ashland [Member] | |
Loss Contingencies [Line Items] | |
Summary of Asbestos Claims Activity | A summary of Ashland asbestos claims activity, excluding Hercules claims, follows. (In thousands) 2023 2022 2021 Open claims - beginning of year 44 46 49 New claims filed 2 2 2 Claims settled ( 1 ) ( 1 ) ( 1 ) Claims dismissed ( 3 ) ( 3 ) ( 4 ) Open claims - end of year 42 44 46 |
Progression of Activity in Asbestos Reserve Accounts | A progression of activity in the asbestos reserve is presented in the following table. (In millions) 2023 2022 2021 Asbestos reserve - beginning of year $ 305 $ 320 $ 335 Reserve adjustment 9 16 12 Amounts paid ( 33 ) ( 31 ) ( 27 ) Asbestos reserve - end of year (a) $ 281 $ 305 $ 320 (a) Included $ 28 million and $ 29 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. |
Progression of Insurance Receivable | A progression of activity in the Ashland insurance receivable is presented in the following table. (In millions) 2023 2022 2021 Insurance receivable - beginning of year $ 101 $ 100 $ 103 Receivable adjustment (a) 3 7 6 Insurance settlement — — — Amounts collected ( 9 ) ( 6 ) ( 9 ) Insurance receivable - end of year (b) $ 95 $ 101 $ 100 (a) 2021 includes a $ 2 million reserve adjustment related to allowances for credit losses as a result of Ashland's adoption of the new credit measurement standard described in Note A. The total allowance for credit losses were $ 1 million and $ 2 million as of September 30, 2023 and 2022. (b) Included $ 11 million and $ 12 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. |
Hercules [Member] | |
Loss Contingencies [Line Items] | |
Summary of Asbestos Claims Activity | 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. (In thousands) 2023 2022 2021 Open claims - beginning of year 11 12 12 New claims filed 1 1 1 Claims dismissed — ( 2 ) ( 1 ) Open claims - end of year 12 11 12 |
Progression of Activity in Asbestos Reserve Accounts | A progression of activity in the asbestos reserve is presented in the following table. (In millions) 2023 2022 2021 Asbestos reserve - beginning of year $ 213 $ 217 $ 229 Reserve adjustments ( 2 ) 15 8 Amounts paid ( 20 ) ( 19 ) ( 20 ) Asbestos reserve - end of year (a) $ 191 $ 213 $ 217 (a) Included $ 17 million and $ 18 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. |
Progression of Insurance Receivable | A progression of activity in the Hercules insurance receivable is presented in the following table. (In millions) 2023 2022 2021 Insurance receivable - beginning of year $ 52 $ 47 $ 47 Receivable adjustment (a) ( 3 ) 7 1 Amounts collected ( 2 ) ( 2 ) ( 1 ) Insurance receivable - end of year (b) $ 47 $ 52 $ 47 (a) 2021 includes a $ 1 million reserve adjustment related to allowances for credit losses as a result of Ashland's adoption of the new credit measurement standard described in Note A. The total allowance for credit losses was $ 1 million as of September 30, 2023 and 2022 , respectively. (b) Included $ 4 million and $ 3 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. |
Equity Items (Tables)
Equity Items (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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 in the following table, before tax and net of tax effects. Tax Before (expense) Net of (In millions) tax benefit tax Year ended September 30, 2023 Other comprehensive income (loss) Unrealized translation gain $ 72 $ — $ 72 Unrealized loss on commodity hedges ( 8 ) 2 ( 6 ) Total other comprehensive income (loss) $ 64 $ 2 $ 66 Year ended September 30, 2022 Other comprehensive income (loss) Unrealized translation loss $ ( 199 ) $ 2 $ ( 197 ) Unrealized loss on commodity hedges ( 2 ) 1 ( 1 ) Pension and postretirement obligation adjustment 1 — 1 Total other comprehensive income (loss) $ ( 200 ) $ 3 $ ( 197 ) Year ended September 30, 2021 Other comprehensive income (loss) Unrealized translation gain $ 8 $ ( 1 ) $ 7 Unrealized gain on commodity hedges 5 ( 1 ) 4 Total other comprehensive income (loss) $ 13 $ ( 2 ) $ 11 |
Summary of Reconciliation of Changes in Stockholders' Equity | A reconciliation of changes in stockholders’ equity are as follows: (In millions) 2023 2022 2021 Common stock and paid in capital Balance, beginning of period $ 136 $ 328 $ 770 Common shares issued under stock incentive and other plans (a) 12 8 8 Common shares purchased under repurchase program (b) (c) ( 143 ) ( 200 ) ( 450 ) Balance, end of period 5 136 328 Retained earnings Balance, beginning of period 3,653 2,796 2,649 Adoption of new accounting pronouncements (d) — — ( 2 ) Common shares purchased under repurchase program (b) ( 160 ) — — Net income 178 927 220 Regular dividends ( 76 ) ( 70 ) ( 71 ) Balance, end of period 3,595 3,653 2,796 Accumulated other comprehensive income (loss) Balance, beginning of period ( 569 ) ( 372 ) ( 383 ) Unrealized translation gain (loss) 72 ( 197 ) 7 Unrealized gain (loss) on commodity hedges ( 6 ) ( 1 ) 4 Pension and postretirement obligation adjustment — 1 — Balance, end of period ( 503 ) ( 569 ) ( 372 ) Total stockholders' equity $ 3,097 $ 3,220 $ 2,752 Cash dividends declared per common share $ 1.44 $ 1.27 $ 1.15 (a) Common shares issued were 193,767 , 168,270 and 183,281 for 2023, 2022 and 2021 , respectively. (b) Common shares repurchased were 3,082,928 , 2,853,312 and 3,922,423 for 2023, 2022 and 2021 , respectively. (c) Includes $ 3 million in excise tax on stock repurchases for 2023. (d) Represents the cumulative-effect adjustment related to the adoption of the new guidance related to the measurement of credit losses on financial instruments during fiscal 2021. See Note A for more information. |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Components of Pretax Compensation Expense Associated With Income Tax Benefits | The components of Ashland's pretax compensation expense for stock-based awards (net of forfeitures) and associated income tax benefits are as follows. (In millions) 2023 (a) 2022 (b) 2021 (c) SARs $ — $ 1 $ 2 Nonvested stock awards 11 12 10 Performance share awards 11 11 6 $ 22 $ 24 $ 18 Income tax benefit $ 5 $ 6 $ 4 (a) The year ended September 30, 2023 included $ 1 million of expense and $ 1 million of income related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. (b) The year ended September 30, 2022 included $ 4 million and $ 2 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. (c) The year ended September 30, 2021 included $ 3 million and zero of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. |
Stock Appreciation Rights (SARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock appreciation rights award activity | A progression of activity and various other information relative to SARs and previously issued and vested stock options is presented in the following table. 2023 2022 2021 Number Weighted- Number Weighted- Number Weighted- of average of average of average (In thousands except per common exercise price common exercise price common exercise price share data) shares per share shares per share shares per share Outstanding - beginning of year 1,142 $ 63.85 1,543 $ 62.14 1,993 $ 61.11 Exercised ( 114 ) 52.31 ( 392 ) 57.32 ( 386 ) 54.44 Forfeitures and expirations ( 5 ) 46.67 ( 9 ) 54.70 ( 64 ) 77.17 Outstanding - end of year (a) 1,023 65.22 1,142 63.85 1,543 62.14 Exercisable - end of year 1,023 65.22 1,094 63.24 1,415 60.68 (a) Exercise prices per share for SARs outstanding at September 30, 2023 ranged from $ 47.63 to $ 59.95 for 521 thousand shares and from $ 67.16 to $ 82.34 for 502 thousand shares. The weighted-average remaining contractual life of outstanding and exercisable SARs and stock options was 3.7 years. |
Nonvested Stock Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested stock awards and performance shares activity | A progression of activity and various other information relative to nonvested stock awards is presented in the following table. 2023 2022 2021 Number Weighted- Number Weighted- Number Weighted- of average of average of average (In thousands except per common grant date common grant date common grant date share data) shares fair value shares fair value shares fair value Nonvested - beginning of year 209 $ 82.55 211 $ 76.10 199 $ 74.57 Granted 92 105.72 80 92.34 93 78.96 Vested ( 106 ) 82.04 ( 72 ) 78.81 ( 69 ) 75.10 Forfeitures ( 7 ) 106.25 ( 10 ) 80.06 ( 12 ) 79.02 Nonvested - end of year 188 97.66 209 82.55 211 76.10 |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average of key assumptions used in pricing model | The fair values of the TSR portion of the performance share awards and TSR modifier of the performance unit awards are calculated using a Monte Carlo simulation valuation model using key assumptions included in the following table. Compensation cost is recognized over the requisite service period regardless of whether the market condition is satisfied. 2023 2022 2021 Risk-free interest rate 4.22 % 1.18 % 0.2 % Expected dividend yield 1.3 % 1.3 % 1.6 % Expected life (in years) 3 3 3 Expected volatility 35.1 % 33.4 % 32.7 % |
Nonvested stock awards and performance shares activity | The following table shows changes in nonvested performance shares/units for all plans that award Ashland Common Stock. 2023 2022 2021 Weighted- Weighted- Weighted- average average average (In thousands except per Shares/ grant date Shares/ grant date Shares/ grant date share data) Units fair value Units fair value Units fair value Nonvested - beginning of year 310 $ 105.78 253 $ 88.66 227 $ 80.86 Granted 98 135.93 110 131.33 122 90.44 Vested ( 88 ) 84.33 ( 1 ) 96.32 ( 79 ) 68.93 Forfeitures ( 33 ) 94.53 ( 52 ) 85.78 ( 17 ) 89.36 Nonvested - end of year 287 118.43 310 105.78 253 88.66 |
Performance shares/units granted | The following table shows the performance shares/units granted for all plans that award Ashland Common Stock. Weighted- Target average shares/units fair value per (In thousands) Vesting period granted (a) share/unit (a) Fiscal Year 2023 October 1, 2022 - September 30, 2025 98 $ 135.93 Fiscal Year 2022 October 1, 2021 - September 30, 2024 110 $ 131.33 Fiscal Year 2021 October 1, 2020 - September 30, 2023 122 $ 90.44 (a) At the end of the performance period, the actual number of shares/units awarded can range from zero to 200 % of the target shares/units granted, which is assumed to be 100 %. Both the shares granted and weighted-average fair value per share/unit are as of the grant date. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Ashland disaggregates its revenue from contracts with customers by segment and geographical region, as Ashland believes these categories best depict how management reviews the financial performance of its operations for the twelve months ended September 30, 2023, 2022 and 2021. Ashland includes only U.S. and Canada in its North America designation and includes Europe, the Middle East and Africa in its Europe designation. See the following tables for details (Intersegment sales eliminations have been excluded. See Note Q for additional information.): Sales by geography (In millions) 2023 2022 2021 Life Sciences North America $ 228 $ 244 $ 229 Europe 305 267 242 Asia Pacific 233 218 192 Latin America & other 103 86 74 $ 869 $ 815 $ 737 (In millions) 2023 2022 2021 Personal Care North America $ 176 $ 198 $ 180 Europe 233 270 240 Asia Pacific 105 126 100 Latin America & other 84 84 72 $ 598 $ 678 $ 592 (In millions) 2023 2022 2021 Specialty Additives North America $ 203 $ 247 $ 203 Europe 214 258 246 Asia Pacific 153 182 171 Latin America & other 30 32 35 $ 600 $ 719 $ 655 (In millions) 2023 2022 2021 Intermediates North America $ 128 $ 163 $ 114 Europe 27 39 28 Asia Pacific 22 43 29 Latin America & other 8 11 7 $ 185 $ 256 $ 178 |
Reportable Segment Information
Reportable Segment Information (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Information About Domestic and International Operations | Information about Ashland’s domestic and international operations follows. Ashland has no operations in any individual international country or single customer that represented more than 10% of sales in 2023, 2022 and 2021. Sales to external Net assets Property, plant and (In millions) 2023 2022 2021 2023 2022 2023 2022 United States $ 634 $ 731 $ 637 $ 1,532 $ 1,857 $ 1,032 $ 1,042 International 1,557 1,660 1,474 1,565 1,363 341 296 $ 2,191 $ 2,391 $ 2,111 $ 3,097 $ 3,220 $ 1,373 $ 1,338 |
Summary of Financial Information for Each Reportable Segment | The following table presents various financial information for each reportable segment for the years ended September 30, 2023, 2022 and 2021. Ashland Inc. and Consolidated Subsidiaries Reportable Segment Information Years Ended September 30 (In millions) 2023 2022 2021 Sales Life Sciences $ 869 $ 815 $ 737 Personal Care 598 678 592 Specialty Additives 600 719 655 Intermediates 185 256 178 Intersegment sales (a) ( 61 ) ( 77 ) ( 51 ) $ 2,191 $ 2,391 $ 2,111 Equity income Life Sciences $ — $ — $ — Personal Care 1 1 — Specialty Additives — — — Intermediates — — — $ 1 $ 1 $ — Other income Life Sciences $ — $ — $ — Personal Care — — 2 Specialty Additives — — — Intermediates — — — Unallocated and Other 6 2 7 $ 6 $ 2 $ 9 Equity and other income $ 7 $ 3 $ 9 Operating income (loss) Life Sciences $ 172 $ 155 $ 130 Personal Care (b) 52 102 73 Specialty Additives (b) 10 103 61 Intermediates 50 87 35 Unallocated and Other (b) ( 112 ) ( 114 ) ( 107 ) $ 172 $ 333 $ 192 (In millions) 2023 2022 2021 Depreciation expense Life Sciences $ 41 $ 35 $ 36 Personal Care 38 37 39 Specialty Additives 58 63 66 Intermediates 13 12 12 Unallocated and Other — — 1 $ 150 $ 147 $ 154 Amortization expense Life Sciences $ 28 $ 28 $ 28 Personal Care 47 47 42 Specialty Additives 18 18 19 Intermediates — 1 1 Unallocated and Other — — — $ 93 $ 94 $ 90 EBITDA (c) Life Sciences $ 241 $ 218 $ 194 Personal Care 137 186 154 Specialty Additives 86 184 146 Intermediates 63 100 48 Unallocated and Other ( 112 ) ( 114 ) ( 106 ) $ 415 $ 574 $ 436 Additions to property, plant and equipment Life Sciences $ 46 $ 28 $ 27 Personal Care 20 14 7 Specialty Additives 99 61 67 Intermediates 3 7 2 Unallocated and Other 2 3 2 $ 170 $ 113 $ 105 (In millions) 2023 2022 Assets Life Sciences $ 1,904 $ 1,905 Personal Care 1,004 1,073 Specialty Additives 1,580 1,567 Intermediates 136 170 Unallocated and Other 1,315 1,498 $ 5,939 $ 6,213 Property, plant and equipment - net Life Sciences $ 419 $ 422 Personal Care 160 153 Specialty Additives 642 603 Intermediates 47 56 Unallocated and Other 105 104 $ 1,373 $ 1,338 (a) Intersegment sales from Intermediates are accounted for at prices that approximate fair value. All other intersegment sales are accounted for at cost. (b) Includes income on acquisitions and divestitures, net for fiscal 2023, 2022 and 2021 within Unallocated and Other. Includes a $ 4 million impairment charge related to a Specialty Additives facility in 2023. Includes a fixed asset impairment of $ 3 million related to Personal Care and a capital project impairment of $ 10 million related to Specialty Additives in 2021. (c) Excludes income from discontinued operations and other net periodic benefit loss (income). See the Statement of Consolidated Comprehensive Income (Loss) for applicable amounts excluded. |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2015 | |
Leases [Abstract] | ||||
Operating lease term | 12 months | |||
Restricted Cash and Investments [Abstract] | ||||
Restricted Investments, Current | $ 77,000,000 | $ 61,000,000 | ||
Revenue from Contract with Customer [Abstract] | ||||
Maximum cash collection period from customer | 60 days | |||
Expense Recognition [Abstract] | ||||
Advertising costs | $ 2,000,000 | 2,000,000 | $ 1,000,000 | |
Research and development expense | $ 51,000,000 | $ 55,000,000 | $ 50,000,000 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from calculation of earnings per share | 1.2 | 1.2 | 1.2 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||
Net decrease to retained earnings | $ (3,097,000,000) | $ (3,220,000,000) | ||
Shares of warrants with a strike price | $ 128.66 | |||
Allowance for credit losses on accounts receivable incurred | $ 0 | 0 | $ 0 | |
Asbestos Trust [Member] | ||||
Restricted Cash and Investments [Abstract] | ||||
Increase (Decrease) in Restricted Cash | $ 335,000,000 | |||
Restricted Investments, Current | 37,000,000 | 27,000,000 | ||
Available-for-sale securities, fair value | 243,000,000 | 245,000,000 | ||
Environmental Trust [Member] | ||||
Restricted Cash and Investments [Abstract] | ||||
Restricted Investments, Current | 40,000,000 | 34,000,000 | ||
Available-for-sale securities, fair value | $ 124,000,000 | $ 129,000,000 | ||
Accounting Standards Update 2016-13 [Member] | ||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||
Change in accounting principle, accounting standards update, adoption date | Oct. 01, 2020 | |||
Increase in allowance in credit losses | $ 3,000,000 | |||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update 2016-13 [Member] | Retained Earnings [Member] | ||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||
Net decrease to retained earnings | $ 2,000,000 | |||
Minimum [Member] | Affiliates [Member] | ||||
Principles of consolidation and basis of presentation [Abstract] | ||||
Percentage of ownership under equity method | 20% | |||
Minimum [Member] | Trademarks and Trade Names [Member] | ||||
Goodwill and other intangibles [Abstract] | ||||
Useful life (in years) | 3 years | |||
Minimum [Member] | Intellectual Property [Member] | ||||
Goodwill and other intangibles [Abstract] | ||||
Useful life (in years) | 3 years | |||
Minimum [Member] | Customer and Supplier Relationships [Member] | ||||
Goodwill and other intangibles [Abstract] | ||||
Useful life (in years) | 10 years | |||
Minimum [Member] | Buildings [Member] | ||||
Property, Plant and Equipment [Abstract] | ||||
Property, Plant and Equipment, Useful Life | 12 years | |||
Minimum [Member] | Machinery and Equipment [Member] | ||||
Property, Plant and Equipment [Abstract] | ||||
Property, Plant and Equipment, Useful Life | 2 years | |||
Maximum [Member] | Affiliates [Member] | ||||
Principles of consolidation and basis of presentation [Abstract] | ||||
Percentage of ownership under equity method | 50% | |||
Maximum [Member] | Trademarks and Trade Names [Member] | ||||
Goodwill and other intangibles [Abstract] | ||||
Useful life (in years) | 20 years | |||
Maximum [Member] | Intellectual Property [Member] | ||||
Goodwill and other intangibles [Abstract] | ||||
Useful life (in years) | 20 years | |||
Maximum [Member] | Customer and Supplier Relationships [Member] | ||||
Goodwill and other intangibles [Abstract] | ||||
Useful life (in years) | 24 years | |||
Maximum [Member] | Buildings [Member] | ||||
Property, Plant and Equipment [Abstract] | ||||
Property, Plant and Equipment, Useful Life | 35 years | |||
Maximum [Member] | Machinery and Equipment [Member] | ||||
Property, Plant and Equipment [Abstract] | ||||
Property, Plant and Equipment, Useful Life | 25 years |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Activity in Allowance for Credit Losses (Details) - Allowance for Credit Losses [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reserves deducted from asset accounts [Roll Forward] | |||
Beginning balance | $ 4 | $ 3 | $ 3 |
Adjustments to allowances for credit losses | 1 | 2 | 1 |
Reserves utilized | (2) | (1) | (1) |
Ending balance | $ 3 | $ 4 | $ 3 |
Significant Accounting Polici_6
Significant Accounting Policies - Summary of Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Inventories [Abstract] | ||
Finished products | $ 390 | $ 391 |
Raw materials, supplies and work in process | 236 | 238 |
Total | $ 626 | $ 629 |
Significant Accounting Polici_7
Significant Accounting Policies - Summary of Activity in Inventory Reserves (Details) - Inventory Reserve [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reserves deducted from asset accounts [Roll Forward] | |||
Beginning balance | $ 13 | $ 13 | $ 16 |
Adjustments to inventory reserves | 11 | 3 | 2 |
Reserves utilized | (3) | (3) | (5) |
Ending balance | $ 21 | $ 13 | $ 13 |
Significant Accounting Polici_8
Significant Accounting Policies - Summary of Activity in Tax Valuation Allowances (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reserves deducted from asset accounts [Roll Forward] | |||
Beginning balance | $ 56 | $ 74 | $ 75 |
Adjustments to allowances for credit losses | (1) | (19) | 9 |
Reserves utilized | 1 | 1 | (10) |
Ending balance | $ 56 | $ 56 | $ 74 |
Significant Accounting Polici_9
Significant Accounting Policies - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator | |||
Income (loss) from continuing operations attributable to Ashland, net of tax | $ 168 | $ 181 | $ 173 |
Denominator | |||
Denominator for basic EPS - Weighted-average common shares outstanding | 53 | 55 | 60 |
Share based awards convertible to common shares | 1 | 1 | 1 |
Denominator for diluted EPS - Adjusted weighted - average shares and assumed conversions | 54 | 56 | 61 |
Earnings Per Share from Continuing Operations [Abstract] | |||
Basic | $ 3.18 | $ 3.26 | $ 2.85 |
Diluted | $ 3.13 | $ 3.2 | $ 2.82 |
Significant Accounting Polic_10
Significant Accounting Policies - Computation of Basic and Diluted Earnings per Share (Parenthetical) (Details) - shares shares in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from diluted EPS calculation | 1.2 | 1.2 | 1.2 |
Divestitures - Additional Infor
Divestitures - Additional Information (Details) | 12 Months Ended | |||
Feb. 28, 2022 USD ($) | Sep. 30, 2023 USD ($) Property | Sep. 30, 2022 USD ($) Property | Sep. 30, 2021 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net proceeds from sale of business | $ 1,700,000,000 | |||
Gain on divestitures after-tax recognized in comprehensive income (loss) | $ 726,000,000 | |||
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | |||
Income (loss) on acquisitions and divestitures | $ 6,000,000 | $ 42,000,000 | $ 11,000,000 | |
Performance Adhesives [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Stranded divestitures costs | 0 | 9,000,000 | 15,000,000 | |
Specialty Additives facility [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment charge | 4,000,000 | |||
Specialty Additives facility [Member] | Discontinued Operations, Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Transaction value in sale of business | 4,000,000 | |||
Specialty Additives facility [Member] | Discontinued Operations, Held-for-sale [Member] | Selling, General and Administrative Expenses [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment charge | 4,000,000 | |||
Specialty Additives facility [Member] | Maximum [Member] | Discontinued Operations, Held-for-sale [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Transaction value in sale of business | 1,000,000 | |||
Composites Segment and the Intermediates and Solvents Marl Facility [Member] | Land and Buildings [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net proceeds from sale of business | 9,000,000 | 50,000,000 | ||
Sale of properties with net book value | 2,000,000 | 8,000,000 | ||
Income (loss) on acquisitions and divestitures | $ 7,000,000 | $ 42,000,000 | ||
Number of properties | Property | 2 | 2 | ||
Specialty Ingredients Facility [Member] | Specialty Ingredients [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net proceeds from sale of business | 14,000,000 | |||
Proceeds from sale of businesses including deposits received in previous fiscal year | 20,000,000 | |||
Income (loss) on acquisitions and divestitures | $ 14,000,000 |
Discontinued Operations - Compo
Discontinued Operations - Components of Consolidated Comprehensive Income (Loss) Related to Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) before taxes | $ 2 | $ 1,068 | $ 25 |
Income from discontinued operations | 10 | 746 | 47 |
Income from discontinued operations, net of income taxes | 10 | 746 | 47 |
Performance Adhesives [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) before taxes | (1) | 33 | 83 |
Income from discontinued operations | 41 | 64 | |
Gain on disposal of discontinued operations | 0 | 1,063 | 0 |
Benefit (expense) related to income (loss) from discontinued operations | 6 | 8 | (19) |
Expense related to gain on disposal of discontinued operations | 0 | (337) | 0 |
Income from discontinued operations, net of income taxes | 41 | 64 | |
Composites Or Marl Facility [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) before taxes | (1) | 0 | (1) |
Gain on disposal of discontinued operations | 0 | 0 | (4) |
Benefit (expense) related to income (loss) from discontinued operations | 0 | 2 | 1 |
Valvoline [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) before taxes | 15 | (7) | (33) |
Benefit (expense) related to income (loss) from discontinued operations | 0 | 1 | 36 |
Water Technologies [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) before taxes | 0 | 5 | (4) |
Gain on disposal of discontinued operations | 0 | 0 | 1 |
Benefit (expense) related to income (loss) from discontinued operations | 0 | (1) | 1 |
Distribution [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) before taxes | (5) | (9) | (6) |
Benefit (expense) related to income (loss) from discontinued operations | 1 | 2 | 1 |
Asbestos [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) before taxes | (6) | (17) | (11) |
Benefit (expense) related to income (loss) from discontinued operations | $ 1 | $ 3 | $ 2 |
Discontinued Operations - Recon
Discontinued Operations - Reconciliation of Consolidated Income (Loss) From Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income(loss) from discontinued operations attributable to Composites/Marl facility disposal group | |||
Pretax income of discontinued operations | $ 2 | $ 1,068 | $ 25 |
Income from discontinued operations | 10 | 746 | 47 |
Performance Adhesives [Member] | |||
Income(loss) from discontinued operations attributable to Composites/Marl facility disposal group | |||
Sales | 171 | 372 | |
Cost of sales | (122) | (256) | |
Selling, general and administrative expense | (12) | (25) | |
Research and development expense | (4) | (8) | |
Intangible amortization expense | 0 | (1) | |
Pretax operating income of discontinued operations | 33 | 82 | |
Other net periodic benefit loss (income) | 0 | (1) | |
Pretax income of discontinued operations | (1) | 33 | 83 |
Benefit (expense) related to income (loss) from discontinued operations | 6 | 8 | (19) |
Income from discontinued operations | 41 | 64 | |
Composites/Marl facility [Member] | |||
Income(loss) from discontinued operations attributable to Composites/Marl facility disposal group | |||
Pretax income of discontinued operations | (1) | 0 | (1) |
Benefit (expense) related to income (loss) from discontinued operations | $ 0 | $ 2 | $ 1 |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring Cost And Reserve [Line Items] | |||
Asset impairments | $ 4 | $ 0 | $ 13 |
Cost of Sales [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Asset impairments | 3 | ||
Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Asset impairments | 10 | ||
Fiscal 2023 Restructuring Severance Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring reserve | 0 | 1 | 6 |
Fiscal 2023 Restructuring Severance Costs [Member] | Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance income (expenses) | (5) | ||
Fiscal 2023 Restructuring Severance Costs [Member] | Accrued Expenses and Other Liabilities [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring reserve | 3 | ||
Fiscal 2023 Life Sciences Restructuring Program [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring reserve | 0 | ||
Fiscal 2023 Life Sciences Restructuring Program [Member] | Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance income (expenses) | (1) | ||
Fiscal 2020 Restructuring Severance Costs [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Restructuring reserve | $ 0 | 1 | |
Fiscal 2020 Restructuring Severance Costs [Member] | Selling, General and Administrative Expenses [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance income (expenses) | $ 2 | $ 1 |
Restructuring Activities - Summ
Restructuring Activities - Summary of Severance Reserves and Facility Cost Reserves (Details) - Fiscal 2023 Restructuring Severance Costs [Member] - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost And Reserve [Line Items] | ||
Beginning balance | $ 1 | $ 6 |
Restructuring reserve | (1) | (2) |
Utilization (cash paid) | 0 | (3) |
Ending balance | $ 0 | $ 1 |
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 | Sep. 30, 2023 | Sep. 30, 2022 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||||
Assets | |||||
Cash and cash equivalents | $ 417 | $ 646 | |||
Restricted investments | 367 | [1],[2] | 374 | [3],[4] | |
Investments of captive insurance company | 6 | [5] | 9 | [6] | |
Foreign currency derivatives | 1 | [7] | 1 | ||
Total assets at fair value | 791 | 1,034 | |||
Liabilities | |||||
Foreign currency derivatives | 1 | [8] | 9 | [9] | |
Total liabilities at fair value | 5 | 10 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Commodity Derivatives [Member] | |||||
Assets | |||||
Commodity derivatives | [10] | $ 4 | |||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Accounts Receivable, after Allowance for Credit Loss, Current | ||||
Liabilities | |||||
Commodity derivatives | $ 4 | [8] | $ 1 | [9] | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current | |||
Estimate of Fair Value, Fair Value Disclosure [Member] | |||||
Assets | |||||
Cash and cash equivalents | $ 417 | $ 646 | |||
Restricted investments | 367 | [1],[2] | 374 | [3],[4] | |
Investments of captive insurance company | 6 | [5] | 9 | [6] | |
Foreign currency derivatives | 1 | [7] | 1 | ||
Total assets at fair value | 791 | 1,034 | |||
Liabilities | |||||
Foreign currency derivatives | 1 | [8] | 9 | [9] | |
Total liabilities at fair value | 5 | 10 | |||
Estimate of Fair Value, Fair Value Disclosure [Member] | Commodity Derivatives [Member] | |||||
Assets | |||||
Commodity derivatives | [10] | $ 4 | |||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Accounts Receivable, after Allowance for Credit Loss, Current | ||||
Liabilities | |||||
Commodity derivatives | $ 4 | [8] | $ 1 | [9] | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current | |||
Fair Value, Inputs, Level 1 [Member] | |||||
Assets | |||||
Cash and cash equivalents | $ 417 | $ 646 | |||
Restricted investments | 367 | [1],[2] | 374 | [3],[4] | |
Investments of captive insurance company | 6 | [5] | 9 | [6] | |
Foreign currency derivatives | 0 | [7] | 0 | ||
Total assets at fair value | 790 | 1,029 | |||
Liabilities | |||||
Foreign currency derivatives | 0 | [8] | 0 | [9] | |
Total liabilities at fair value | 0 | 0 | |||
Fair Value, Inputs, Level 1 [Member] | Commodity Derivatives [Member] | |||||
Assets | |||||
Commodity derivatives | [10] | 0 | |||
Liabilities | |||||
Commodity derivatives | 0 | [8] | 0 | [9] | |
Fair Value, Inputs, Level 2 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted investments | 0 | [1],[2] | 0 | [3],[4] | |
Investments of captive insurance company | 0 | [5] | 0 | [6] | |
Foreign currency derivatives | 1 | [7] | 1 | ||
Total assets at fair value | 1 | 5 | |||
Liabilities | |||||
Foreign currency derivatives | 1 | [8] | 9 | [9] | |
Total liabilities at fair value | 5 | 10 | |||
Fair Value, Inputs, Level 2 [Member] | Commodity Derivatives [Member] | |||||
Assets | |||||
Commodity derivatives | [10] | 4 | |||
Liabilities | |||||
Commodity derivatives | 4 | [8] | 1 | [9] | |
Fair Value, Inputs, Level 3 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted investments | 0 | [1],[2] | 0 | [3],[4] | |
Investments of captive insurance company | 0 | [5] | 0 | [6] | |
Foreign currency derivatives | 0 | [7] | 0 | ||
Total assets at fair value | 0 | 0 | |||
Liabilities | |||||
Foreign currency derivatives | 0 | [8] | 0 | [9] | |
Total liabilities at fair value | 0 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | Commodity Derivatives [Member] | |||||
Assets | |||||
Commodity derivatives | [10] | 0 | |||
Liabilities | |||||
Commodity derivatives | $ 0 | [8] | $ 0 | [9] | |
[1] Included in restricted investments and $ 77 million within other current assets in the Consolidated Balance Sheets. Includes $ 243 million related to the Asbestos trust and $ 124 million related to the Environmental trust. See Note A for additional details. Included in restricted investments and $ 61 million within other current assets in the Consolidated Balance Sheets. Includes $ 245 million related to the Asbestos trust and $ 129 million related to the Environmental trust. See Note A for additional details. Included in other noncurrent assets in the Consolidated Balance Sheets. Included in other noncurrent assets in the Consolidated Balance Sheets. Included in accounts receivable in the Consolidated Balance Sheets. Included in accrued expenses and other liabilities in the Consolidated Balance Sheets. Included in accrued expenses and other liabilities in the Consolidated Balance Sheets. Included in accounts receivable in the 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 | Sep. 30, 2023 | Sep. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Investments, Current | $ 77 | $ 61 |
Asbestos Trust [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Investments, Current | 37 | 27 |
Available-for-sale securities, fair value | 243 | 245 |
Environmental Trust [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Investments, Current | 40 | 34 |
Available-for-sale securities, fair value | $ 124 | $ 129 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Fair Value Disclosures [Abstract] | ||
Restricted Investments, Current | $ 77 | $ 61 |
Long-term debt, carrying value | 1,327 | 1,284 |
Long-term debt, fair value | $ 1,160 | $ 1,102 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Restricted Investment Portfolio (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Demand Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted cost | $ 12 | $ 6 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | 12 | 6 |
Fixed Income Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted cost | 226 | 234 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (48) | (47) |
Fair Value | 178 | 187 |
Equity Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted cost | 155 | 186 |
Gross Unrealized Gain | 24 | 20 |
Gross Unrealized Loss | (2) | (25) |
Fair Value | 177 | 181 |
Restricted Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted cost | 393 | 426 |
Gross Unrealized Gain | 24 | 20 |
Gross Unrealized Loss | (50) | (72) |
Fair Value | $ 367 | $ 374 |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary of Investment Income, Net Gains and Losses, Funds Restricted for Specific Transactions and Disbursements Related to Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |||
Investment income | $ 13 | $ 16 | $ 12 |
Net gains (losses) | 29 | (102) | 21 |
Funds restricted for specific transactions | 9 | 74 | 91 |
Disbursements | $ (58) | $ (35) | $ (33) |
Fair Value Measurements - Sum_5
Fair Value Measurements - Summary of Gains and Losses on Foreign Currency Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
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 gain (losses) | [1] | $ 10 | $ (40) | $ 4 |
[1] Includes a $ 1 million gain reported within the income on acquisitions and divestitures, net caption for fiscal 2021. |
Fair Value Measurements - Sum_6
Fair Value Measurements - Summary of Gains and Losses on Foreign Currency Derivatives (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Income on acquisitions and divestitures | $ 6 | $ 42 | $ 11 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Income on acquisitions and divestitures | $ 1 |
Fair Value Measurements - Sum_7
Fair Value Measurements - Summary of Fair Values of Outstanding Foreign Currency Derivatives (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Accounts Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative assets | $ 1 | $ 1 |
Notional contract values | 147 | 133 |
Accrued Expenses and Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional contract values | 103 | 535 |
Foreign currency derivative liabilities | $ 1 | $ 9 |
Fair Value Measurements - Sum_8
Fair Value Measurements - Summary of Gains and Losses on Commodity Derivatives (Details) - Commodity Derivatives [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Commodity derivative gains (losses) | $ 3 | $ 10 | $ 1 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Revenue | Cost of Revenue | Cost of Revenue |
Fair Value Measurements - Sum_9
Fair Value Measurements - Summary of Fair Values of Outstanding Commodity Derivatives (Details) - Commodity Contract [Member] - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Accounts Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets | $ 0 | $ 4 |
Notional contract values | 2 | 13 |
Accrued Expenses and Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional contract values | 16 | 9 |
Commodity derivative liabilities | $ 4 | $ 1 |
Property, Plant and Equipment -
Property, Plant and Equipment - Components of Property, Plant and Equipment in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 3,211 | $ 3,050 |
Accumulated depreciation | (1,838) | (1,712) |
Net property, plant and equipment | 1,373 | 1,338 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 146 | 138 |
Buildings [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 467 | 458 |
Machinery and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 2,371 | 2,324 |
Construction in Progress [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 227 | $ 130 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Summary of Property, Plant and Equipment Charges Included in Statements of Consolidated Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property Plant and Equipment Income Statement Disclosures [Abstract] | |||
Depreciation | $ 150 | $ 147 | $ 154 |
Capitalized interest | $ 4 | $ 1 | $ 2 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Intangibles amortization expense | $ 93 | $ 94 | $ 90 |
Expected future amortization expense [Abstract] | |||
2024 | 80 | ||
2025 | 76 | ||
2026 | 74 | ||
2027 | 52 | ||
2028 | $ 50 | ||
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) | 3 years | ||
Minimum [Member] | Customer and Supplier Relationships [Member] | |||
Intangible Assets, Net [Abstract] | |||
Useful life (in years) | 10 years | ||
Maximum [Member] | Trademarks and Trade Names [Member] | |||
Intangible Assets, Net [Abstract] | |||
Useful life (in years) | 20 years | ||
Maximum [Member] | Intellectual Property [Member] | |||
Intangible Assets, Net [Abstract] | |||
Useful life (in years) | 20 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) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Goodwill [Roll Forward] | |||
Balance at beginning of period | $ 1,312 | $ 1,430 | |
Currency translation and other | 50 | (118) | |
Balance at end of period | 1,362 | 1,312 | |
Life Sciences [Member] | |||
Goodwill [Roll Forward] | |||
Balance at beginning of period | 787 | 856 | |
Currency translation and other | 32 | (69) | |
Balance at end of period | 819 | 787 | |
Personal Care [Member] | |||
Goodwill [Roll Forward] | |||
Balance at beginning of period | [1] | 118 | 129 |
Currency translation and other | [1] | 4 | (11) |
Balance at end of period | [1] | 122 | 118 |
Specialty Additives [Member] | |||
Goodwill [Roll Forward] | |||
Balance at beginning of period | [1] | 407 | 445 |
Currency translation and other | [1] | 14 | (38) |
Balance at end of period | [1] | 421 | 407 |
Intermediates [Member] | |||
Goodwill [Roll Forward] | |||
Balance at beginning of period | [1] | 0 | 0 |
Currency translation and other | [1] | 0 | 0 |
Balance at end of period | [1] | $ 0 | $ 0 |
[1] As of September 30, 2023 and 2022, there were accumulated impairme nts of $ 356 million, $ 174 million, and $ 90 million rel ated to the Personal Care, Specialty Additives, and Intermediates reportable segments, respectively. |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Summary of Goodwill by Reportable Segment (Parenthetical) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Personal Care [Member] | ||
Goodwill [Line Items] | ||
Accumulated impairment | $ 356 | $ 356 |
Specialty Additives [Member] | ||
Goodwill [Line Items] | ||
Accumulated impairment | 174 | 174 |
Intermediates [Member] | ||
Goodwill [Line Items] | ||
Accumulated impairment | $ 90 | $ 90 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles - Summary of Other Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 1,649 | $ 1,614 |
Accumulated amortization | (1,041) | (929) |
Net carrying amount | 608 | 685 |
Intangible Assets, Net [Abstract] | ||
Gross carrying amount | 1,927 | 1,892 |
Net carrying amount | 886 | 963 |
Trademarks and Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 97 | 95 |
Accumulated amortization | (43) | (37) |
Net carrying amount | 54 | 58 |
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 | 731 | 718 |
Accumulated amortization | (581) | (523) |
Net carrying amount | 150 | 195 |
Customer and Supplier Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 821 | 801 |
Accumulated amortization | (417) | (369) |
Net carrying amount | $ 404 | $ 432 |
Debt - Summary of Current and L
Debt - Summary of Current and Long-term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | |||
Carrying value of debt | $ 1,327 | $ 1,284 | |
Other | [1] | 6 | (11) |
Total debt | 1,330 | 1,270 | |
Short-term debt | 16 | 0 | |
Long-term debt (less debt issuance costs) | 1,314 | 1,270 | |
3.375% Senior Notes, due 2031 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | 450 | 450 | |
2.00% Senior Notes Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | 528 | 489 | |
6.875% Notes due 2043 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | 282 | 282 | |
6.50% Junior Subordinated Notes, Due 2029 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying value of debt | $ 64 | $ 60 | |
[1] Other includes $ 13 million and $ 14 million of debt issuance costs as of September 30, 2023 and 2022 , respectively. The current portion of the long-term debt was zero for both September 30, 2023 and 2022. |
Debt - Summary of Current and_2
Debt - Summary of Current and Long-term Debt (Parenthetical) (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2021 USD ($) | Sep. 30, 2023 EUR (€) | Sep. 30, 2022 EUR (€) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||
Unamortized debt issuance expense, long-term debt | $ 13 | $ 14 | |||
Current portion of long-term debt | $ 0 | $ 0 | |||
3.375% Senior Notes, due 2031 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 3.375% | 3.375% | 3.375% | 3.375% | 3.375% |
Debt instrument, maturity year | 2031 | 2031 | 2031 | ||
Principal amount | $ 450 | ||||
2.00% Senior Notes Due 2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 2% | 2% | 2% | 2% | |
Debt instrument, maturity year | 2028 | 2028 | |||
Principal amount | € | € 500 | € 500 | |||
6.875% Notes due 2043 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 6.875% | 6.875% | 6.875% | 6.875% | |
Debt instrument, maturity year | 2043 | 2043 | |||
6.50% Junior Subordinated Notes, Due 2029 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 6.50% | 6.50% | 6.50% | 6.50% | |
Debt instrument, maturity year | 2029 | 2029 |
Debt - Summary of Current and_3
Debt - Summary of Current and Long-term Debt - Additional Information (Details) - USD ($) | Sep. 30, 2023 | Sep. 30, 2022 |
Debt Disclosure [Abstract] | ||
Total debt outstanding principal balance | $ 1,376,000,000 | |
Discounts on outstanding debt balance | 33,000,000 | |
Unamortized debt issuance expense, long-term debt | 13,000,000 | $ 14,000,000 |
Scheduled aggregate debt maturities by fiscal year [Abstract] | ||
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 4,000,000 | |
2028 | $ 528,000,000 |
Debt - Credit Agreement and Ref
Debt - Credit Agreement and Refinancing - Additional Information (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2022 USD ($) | Aug. 31, 2021 USD ($) | Jan. 31, 2020 | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2023 EUR (€) | Sep. 30, 2022 EUR (€) | |
Debt Instrument [Line Items] | ||||||||
Payments of debt issuance costs | $ 0 | $ 2 | $ 6 | |||||
2020 Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of debt, accelerated accretion | 1 | |||||||
2022 Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Payments of debt issuance costs | 2 | |||||||
Debt issuance costs immediately recognized | $ 1 | |||||||
Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.125% | |||||||
Credit Agreement [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.125% | |||||||
Credit Agreement [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.275% | |||||||
Credit Agreement [Member] | SOFR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instruments, percentage points added to variable rate | 1.25% | |||||||
Debt instrument credit spread adjustment rate | 0.10% | |||||||
Credit Agreement [Member] | SOFR [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instruments, percentage points added to variable rate | 1.25% | |||||||
Credit Agreement [Member] | SOFR [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instruments, percentage points added to variable rate | 1.75% | |||||||
Credit Agreement [Member] | EURIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instruments, percentage points added to variable rate | 1.25% | |||||||
Credit Agreement [Member] | EURIBOR [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instruments, percentage points added to variable rate | 1.25% | |||||||
Credit Agreement [Member] | EURIBOR [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instruments, percentage points added to variable rate | 1.75% | |||||||
Credit Agreement [Member] | Alternate base rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instruments, percentage points added to variable rate | 0.25% | |||||||
Credit Agreement [Member] | Alternate base rate [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instruments, percentage points added to variable rate | 0.25% | |||||||
Credit Agreement [Member] | Alternate base rate [Member] | Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instruments, percentage points added to variable rate | 0.75% | |||||||
3.375% Senior Notes, due 2031 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 3.375% | 3.375% | 3.375% | |||||
Debt instrument, maturity year | 2031 | 2031 | 2031 | |||||
Aggregate principal amount | $ 450 | |||||||
Payments of debt issuance costs | $ 6 | |||||||
2.00% Senior Notes Due 2028 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 2% | 2% | ||||||
Debt instrument, maturity year | 2028 | 2028 | ||||||
Aggregate principal amount | € | € 500 | € 500 | ||||||
4.750% Senior Notes Due 2022 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 4.75% | |||||||
Debt instrument, maturity year | 2022 | |||||||
Unsecured Revolving Credit Facility [Member] | 2022 Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured line of credit | $ 600 | |||||||
Debt instrument, term | 5 years |
Debt - Financing Activity and C
Debt - Financing Activity and Covenants - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||||||
Apr. 14, 2023 USD ($) | Mar. 17, 2021 USD ($) | Jul. 31, 2018 EUR (€) | Jul. 31, 2021 | Sep. 30, 2019 | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2023 EUR (€) | Jul. 31, 2020 EUR (€) | |
Debt Instrument [Line Items] | ||||||||||
Cash repatriation | $ 92,000,000 | $ 250,000,000 | ||||||||
Premiums paid | $ 16,000,000 | |||||||||
Repayment of outstanding principal balance | 0 | 250,000,000 | 411,000,000 | |||||||
Gain (loss) on sale of receivables | $ 3,000,000 | 1,000,000 | $ 1,000,000 | |||||||
Covenant restrictions [Abstract] | ||||||||||
Maximum consolidated leverage ratio | 4 | 4 | ||||||||
Consolidated net leverage ratio | 1.9 | 1.9 | ||||||||
Minimum required consolidated interest coverage ratio | 3 | 3 | ||||||||
Consolidated interest coverage ratio | 8.6 | 8.6 | ||||||||
2018 Accounts Receivable Securitization [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | € | € 115,000,000 | € 100,000,000 | € 100,000,000 | |||||||
Debt instrument, term | 2 years | |||||||||
Extended maturity period | 2023-07 | 2021-08 | ||||||||
Outstanding amount of receivables sold to affiliate | $ 124,000,000 | 162,000,000 | ||||||||
Debt instrument, outstanding principal amount | $ 0 | $ 0 | ||||||||
Debt, weighted average interest rate | 0.50% | 0.50% | 0.50% | |||||||
U.S. Accounts Receivable Sales Program [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum limit of receivables can transfer | $ 100,000,000 | $ 100,000,000 | $ 115,000,000 | $ 125,000,000 | ||||||
Gain (loss) on sale of receivables | 3,000,000 | 1,000,000 | ||||||||
Sales against the buyers limit | 86,000,000 | 110,000,000 | ||||||||
Amount transferred in receivables | 106,000,000 | 136,000,000 | ||||||||
Gross cash proceeds received for receivables transferred and derecognized | 217,000,000 | 312,000,000 | ||||||||
Cash proceeds collected | 241,000,000 | 315,000,000 | ||||||||
Payments for (proceeds from) new transfers of receivables | 24,000,000 | 3,000,000 | ||||||||
U.S. Accounts Receivable Sales Program [Member] | Performance Adhesives [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Payments for (proceeds from) new transfers of receivables | 21,000,000 | |||||||||
U.S. Accounts Receivable Sales Program [Member] | Between February and October of Each Year [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum limit of receivables can transfer | $ 125,000,000 | |||||||||
U.S. Accounts Receivable Sales Program [Member] | Between April and October of Each Year [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum limit of receivables can transfer | $ 115,000,000 | |||||||||
Maximum [Member] | U.S. Accounts Receivable Sales Program [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Recorded liabilities related to service obligations and limited guarantee | $ 1,000,000 | 1,000,000 | ||||||||
2017 Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of debt, accelerated amortization | $ 1,000,000 | |||||||||
2.00% Senior Notes Due 2028 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage | 2% | 2% | 2% | |||||||
Debt instrument, maturity year | 2028 | 2028 | ||||||||
4.750% Notes due 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage | 4.75% | |||||||||
Debt instrument, maturity year | 2022 | |||||||||
Repayments of debt | $ 411,000,000 | |||||||||
Repayment of debt, accelerated amortization | $ 1,000,000 | |||||||||
6.875% Notes due 2043 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage | 6.875% | 6.875% | 6.875% | |||||||
Debt instrument, maturity year | 2043 | 2043 | ||||||||
6.50% Junior Subordinated Notes, Due 2029 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate, stated percentage | 6.50% | 6.50% | 6.50% | |||||||
Debt instrument, maturity year | 2029 | 2029 | ||||||||
Term Loan A [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of outstanding principal balance | $ 250,000,000 | |||||||||
European Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of outstanding principal balance | 23,000,000 | |||||||||
Other Debt [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, outstanding principal amount | $ 83,000,000 | $ 63,000,000 |
Debt - Summary of Net Interest
Debt - Summary of Net Interest and Other Expense (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Debt Disclosure [Abstract] | ||||
Interest expense | [1] | $ 54 | $ 62 | $ 69 |
Interest income | (12) | (4) | (1) | |
Loss on the accounts receivables sale program | 3 | 1 | 1 | |
Investment securities income | [2] | (42) | 86 | (33) |
Other financing costs | [3] | 3 | 4 | 20 |
Interest Income (Expense), Net | $ 6 | $ 149 | $ 56 | |
[1] Includes $ 1 million and $ 1 million of accelerated accretion and/or amortization for original issue discounts and debt issuance costs during 2022 and 2021 , respectively. Represents investment loss (income) related to the restricted investments discussed in Note E. Includes costs of $ 16 million related to early redemption premium payments for the 2022 notes during 2021. |
Debt - Summary of Net Interes_2
Debt - Summary of Net Interest and Other Expense (Income) (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Debt Instrument [Line Items] | |||
Accelerated amortization | [1] | $ 1 | $ 1 |
Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Loss on early retirement of debt | $ 16 | ||
[1] Fiscal year 2022 includes $ 1 million of accelerated debt issuance costs for the 2020 credit agreement. 2021 includes $ 1 million of accelerated debt issuance cost for the 2022 Notes. |
Debt - Summary of Debt Issuance
Debt - Summary of Debt Issuance Cost Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Debt Disclosure [Abstract] | ||||
Normal amortization | $ 6 | $ 6 | $ 6 | |
Accelerated amortization | [1] | 1 | 1 | |
Total | $ 6 | $ 7 | $ 7 | |
[1] Fiscal year 2022 includes $ 1 million of accelerated debt issuance costs for the 2020 credit agreement. 2021 includes $ 1 million of accelerated debt issuance cost for the 2022 Notes. |
Debt - Summary of Debt Issuan_2
Debt - Summary of Debt Issuance Cost Amortization (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
2020 Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Repayment of debt, accelerated accretion | $ 1 | |
Notes due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Repayment of debt, accelerated accretion | $ 1 |
Other Noncurrent Assets and L_3
Other Noncurrent Assets and Liabilities - Components of Other Noncurrent Assets in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Other Assets, Noncurrent [Abstract] | ||
Deferred compensation investments | $ 87 | $ 85 |
Tax and tax indemnity receivables | 6 | 2 |
Life insurance policies | 76 | 73 |
Manufacturing catalyst supplies | 24 | 25 |
Defined benefit plan assets | 17 | 21 |
Equity and other unconsolidated investments | 3 | 3 |
Land use rights | 6 | 6 |
Environmental insurance receivables | 15 | 17 |
Debt issuance costs | 2 | 2 |
Other | 15 | 20 |
Other noncurrent assets, Total | $ 251 | $ 254 |
Other Noncurrent Assets and L_4
Other Noncurrent Assets and Liabilities - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Assets, Noncurrent [Abstract] | |||
Gains (losses) related to deferred compensation investments | $ 5 | $ (2) | $ 10 |
Liquidation of deferred compensation investments | 90 | ||
Bank Owned Life Insurance Death Benefits | $ 6 | $ 3 | $ 1 |
Other Noncurrent Assets and L_5
Other Noncurrent Assets and Liabilities - Components of Other Noncurrent Liabilities in Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Other Liabilities, Noncurrent [Abstract] | ||
Tax liabilities | $ 79 | $ 127 |
Environmental remediation reserves | $ 165 | $ 157 |
Environmental Loss Contingency, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Deferred compensation | $ 25 | $ 25 |
Other | 22 | 16 |
Other noncurrent liabilities, Total | $ 291 | $ 325 |
Leasing Arrangements - Addition
Leasing Arrangements - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Lessee Lease Description [Line Items] | ||
Weighted average remaining operating lease term | 17 years | 17 years |
Weighted average operating discount rate, percent | 3.50% | 2.60% |
Right-of-use assets exchanged for new operating lease obligations | $ 32 | $ 14 |
Operating lease obligations | 128 | 113 |
Operating lease right-of-use assets | $ 122 | $ 107 |
Real Estate [Member] | ||
Lessee Lease Description [Line Items] | ||
Lease liability percentage | 85% | 85% |
Leasing Arrangements - Componen
Leasing Arrangements - Components of Lease Cost Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Lease cost: | ||||
Total lease cost | [1] | $ 40 | $ 41 | $ 37 |
Selling, General and Administrative Expenses [Member] | ||||
Lease cost: | ||||
Operating lease cost | 13 | 13 | 13 | |
Variable lease cost | 4 | 5 | 3 | |
Cost of Sales [Member] | ||||
Lease cost: | ||||
Operating lease cost | 15 | 16 | 15 | |
Variable lease cost | 6 | 4 | 3 | |
Short-term leases | $ 2 | $ 3 | $ 3 | |
[1] Includes $ 2 million lease termination fee in fiscal 2022 |
Leasing Arrangements - Compon_2
Leasing Arrangements - Components of Lease Cost Recognized (Parenthetical) - (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Leases [Abstract] | |
Lease termination fee | $ 2 |
Leasing Arrangements - Summary
Leasing Arrangements - Summary of Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Assets | ||
Operating lease assets, net | $ 122 | $ 107 |
Operating lease right-of-use assets | 122 | 107 |
Liabilities | ||
Current operating lease obligations | 22 | 19 |
Non-current operating lease obligations | 106 | 94 |
Total lease liabilities | $ 128 | $ 113 |
Leasing Arrangements - Schedule
Leasing Arrangements - Schedule of Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 27 | $ 29 | $ 29 |
Leasing Arrangements - Schedu_2
Leasing Arrangements - Schedule of Maturities Analysis of Lease Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Leases [Abstract] | ||
2024 | $ 24 | |
2025 | 20 | |
2026 | 15 | |
2027 | 13 | |
2028 | 10 | |
Thereafter | 85 | |
Total lease payments | 167 | |
Less amount of lease payment representing interest | (39) | |
Total present value of lease payments | $ 128 | $ 113 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | $ 59 | $ 84 | $ 82 |
Total amount of unrecognized tax benefits that, if recognized, would affect the tax rate for continuing and discontinued operations | 48 | ||
Interest and penalties related to uncertain tax positions | (1) | 3 | $ (15) |
Interest and penalties related to unrecognized tax benefits accrued | 10 | $ 10 | |
Minimum [Member] | |||
Income Tax Contingency [Line Items] | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 3 | ||
Maximum [Member] | |||
Income Tax Contingency [Line Items] | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 5 |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes Related to Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Current | |||
Federal | $ (17) | $ 3 | $ (35) |
State | (5) | 7 | (2) |
Foreign | 46 | 50 | 25 |
Total current income tax expense (benefit) | 24 | 60 | (12) |
Deferred | (32) | (35) | (26) |
Income tax expense (benefit) | $ (8) | $ 25 | $ (38) |
Income Taxes - Summary of Tempo
Income Taxes - Summary of Temporary Differences of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | |
Deferred tax assets | |||
Foreign net operating loss carryforwards | [1] | $ 24 | $ 23 |
Employee benefit obligations | 17 | 18 | |
Environmental, self-insurance and litigation reserves (net of receivables) | 110 | 116 | |
State net operating loss carryforwards (net of unrecognized tax benefits) | [2] | 18 | 19 |
Compensation accruals | 25 | 29 | |
Credit carryforwards (net of unrecognized tax benefits) | [3] | 18 | 20 |
Other items | 25 | 21 | |
Other lease liability | 13 | 17 | |
Valuation allowances | [4] | (56) | (56) |
Total deferred tax assets | 194 | 207 | |
Deferred tax liabilities | |||
Goodwill and other intangibles | [5] | 150 | 169 |
Property, plant and equipment | 158 | 175 | |
Right of use assets | 12 | 16 | |
Other | 0 | 3 | |
Total deferred tax liabilities | 320 | 363 | |
Net deferred tax liability | $ (126) | $ (156) | |
[1] Gross net operating loss carryforwards of $ 99 million will expire in future years beyond 2024 or have no expiration, and primarily relate to European and Asian subsidiaries. Apportioned net operating loss carryforwards generated of $ 462 million will expire in future years as follows: $ 78 million in 2024, $ 56 million in 2025 and the remaining balance in other future years. Credit carryforwards consist primarily of foreign tax credits of $ 17 million expiring in future years, and state tax credits of $ 1 million that will expire in 2026 and other future years. Valuation allowances primarily relate to certain state and foreign net operating loss carryforwards and certain federal credit carryforwards. The total gross amount of goodwill as of September 30, 2023 expected to be deductible for tax purposes is $ 42 million. |
Income Taxes - Summary of Tem_2
Income Taxes - Summary of Temporary Differences of Deferred Tax Assets and Liabilities (Parenthetical) (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Tax Credit Carryforward [Line Items] | |
Goodwill expected to be deductible for tax purposes | $ 42 |
Foreign Tax Authority [Member] | |
Tax Credit Carryforward [Line Items] | |
Operating Loss Carryforwards | 99 |
Tax credits | 17 |
State and Local Jurisdiction [Member] | |
Tax Credit Carryforward [Line Items] | |
Operating Loss Carryforwards | 462 |
Operating loss carryforwards expiring in next fiscal year | 78 |
Operating loss carry forwards expiring 2025 | 56 |
Tax credits | $ 1 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income from Continuing Operations Before Income Taxes and Reconciliation of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Income Tax Expense (Benefit), Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
United States | $ (112) | $ (133) | $ (96) | |
Foreign | 272 | 339 | 231 | |
Income from continuing operations before income taxes | 160 | 206 | 135 | |
Income taxes computed at U.S. statutory rate | 34 | 43 | 28 | |
Uncertain tax positions | (26) | (6) | (49) | |
Deemed inclusions, foreign dividends and other restructuring | [1] | 32 | 40 | 25 |
Foreign tax credits | (22) | (32) | (20) | |
Valuation allowance changes | [2] | (7) | (4) | 4 |
Research and development credits | (3) | (2) | (3) | |
State taxes | (1) | (4) | (5) | |
Goodwill impairment | 0 | 0 | 2 | |
International rate differential | (16) | (27) | (18) | |
Other items | [3] | 1 | 17 | (2) |
Income tax expense (benefit) | $ (8) | $ 25 | $ (38) | |
[1] 2023 includes $ 19 million related to GILTI permanent adjustments and $ 12 million related to Subpart F. 2022 includes $ 31 million primarily related to GILTI permanent adjustment. 2021 includes $ 17 million primarily related to GILTI permanent adjustments. 2023 includes net $ 2 million related to deferred taxes and foreign tax credits. 2022 includes $ 4 million related to state NOL's. 2021 includes $ 13 million related to certain foreign tax credits partially offset by $ 5 million related to state NOL's and $ 4 million related to foreign jurisdictions. 2023 includes miscellaneous items of $ 1 million. 2022 includes $ 8 million related to withholding tax. 2021 includes $ 14 million related to the sale of a Specialty Additives facility partially offset by miscellaneous other items. |
Income Taxes - Summary of Inc_2
Income Taxes - Summary of Income from Continuing Operations Before Income Taxes and Reconciliation of Provision for Income Taxes (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Tax Credit Carryforward [Line Items] | ||||
Valuation allowance charges | [1] | $ (7) | $ (4) | $ 4 |
Other items | [2] | 1 | 17 | (2) |
Uncertain tax positions | (26) | (6) | (49) | |
Withholding tax included in other items | 8 | |||
Miscellaneous items | 1 | |||
Sale of a Specialty Additives facility | 14 | |||
GILTI [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Other items | 19 | 31 | 17 | |
Subpart F [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Other items | 12 | |||
Foreign Tax Authority [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Valuation allowance charges | 4 | |||
Tax credit valuation allowance | 2 | 13 | ||
State and Local Jurisdiction [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Valuation allowance charges | $ 4 | $ 5 | ||
Tax credit valuation allowance | $ 2 | |||
[1] 2023 includes net $ 2 million related to deferred taxes and foreign tax credits. 2022 includes $ 4 million related to state NOL's. 2021 includes $ 13 million related to certain foreign tax credits partially offset by $ 5 million related to state NOL's and $ 4 million related to foreign jurisdictions. 2023 includes miscellaneous items of $ 1 million. 2022 includes $ 8 million related to withholding tax. 2021 includes $ 14 million related to the sale of a Specialty Additives facility partially offset by miscellaneous other items. |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Balance at beginning of period | $ 84 | $ 82 |
Decreases related to positions taken on items from prior years | (30) | (5) |
Increases related to positions taken in the current year | 8 | 19 |
Increases related to positions taken on items from prior years | 1 | |
Lapse of statute of limitations | (4) | (12) |
Balance at end of period | $ 59 | $ 84 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) Employee | Sep. 30, 2021 USD ($) | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pre-65 health care cost increase trend rate | 6.60% | |||
Future Pre-65 health care cost trend rate | 4.50% | |||
Number of employees transferred upon divestiture | Employee | 40 | |||
Actuarial gain | $ 1 | |||
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||||
Historical investment strategy asset mix, fixed income (in hundredths) | 47.60% | |||
Historical investment strategy asset mix, risk assets (in hundredths) | 38.80% | |||
Historical investment strategy asset mix, other securities assets (in hundredths) | 13.60% | |||
United States Pension Plans of US Entity, Defined Benefit [Member] | ||||
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||||
Actual contributions to benefit plans in period | $ 3 | |||
Estimated future contributions in current next fiscal year | 6 | |||
Foreign Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||||
Actual contributions to benefit plans in period | 5 | 5 | ||
Estimated future contributions in current next fiscal year | 5 | |||
Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, expects to recognize of prior service credit in accumulated other comprehensive income as next fiscal year | 1 | |||
Prior service credit recognized in accumulated other comprehensive income | 1 | 1 | ||
Maximum [Member] | United States Pension Plans of US Entity, Defined Benefit [Member] | ||||
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||||
Actual contributions to benefit plans in period | 1 | |||
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain | [1] | 0 | 16 | $ (3) |
Prior service credit recognized in accumulated other comprehensive income | 2 | 2 | ||
Weighted-Average Plan Assumptions [Abstract] | ||||
Defined benefit plan, accumulated benefit obligation | $ 250 | $ 245 | ||
Expected long-term rate of return on plan assets | 4.25% | 2.89% | 2.43% | |
Other Pension Plan, Postretirement or Supplemental Plans [Member] | ||||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||||
Company contributions to other employee benefit savings plans | $ 23 | $ 23 | $ 21 | |
Postemployment benefits liability, noncurrent | $ 4 | $ 4 | ||
[1] These components are classified within the other net periodic benefit loss (income) caption on the Statements of Consolidated Comprehensive Income (Loss). |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Loss (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Net Periodic Benefit Costs [Abstract] | ||||
Actuarial (gain) loss | $ (1) | |||
Pension Plans [Member] | ||||
Net Periodic Benefit Costs [Abstract] | ||||
Service cost | [1] | $ 3 | 4 | $ 5 |
Interest cost | [2] | 13 | 8 | 6 |
Curtailment, settlement and other | [2] | 0 | (1) | 0 |
Expected return on plan assets | [2] | $ (7) | $ (7) | $ (8) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Defined Benefit Plan Net Periodic Benefit Income Expense | Other Defined Benefit Plan Net Periodic Benefit Income Expense | Other Defined Benefit Plan Net Periodic Benefit Income Expense | |
Actuarial (gain) loss | [2] | $ 0 | $ (16) | $ 3 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Immediate Recognition of Actuarial Gain (Loss), Statement of Income or Comprehensive Income [Extensible List] | Other net periodic benefit loss (income) - Note L | Other net periodic benefit loss (income) - Note L | Other net periodic benefit loss (income) - Note L | |
Total net periodic benefit cost (income) | $ 9 | $ (12) | $ 6 | |
Weighted-Average Plan Assumptions [Abstract] | ||||
Discount rate for service cost | [3] | 4.56% | 2.99% | 1.81% |
Discount rate for interest cost | [3] | 5.44% | 3.33% | 1.69% |
Rate of compensation increase | [3] | 3.07% | 2.50% | 2.53% |
Expected long-term rate of return on plan assets | 4.25% | 2.89% | 2.43% | |
Other Postretirement Benefit Plan [Member] | ||||
Net Periodic Benefit Costs [Abstract] | ||||
Service cost | [1] | $ 1 | $ 1 | $ 1 |
Interest cost | [2] | 2 | 2 | 2 |
Curtailment, settlement and other | [2] | 0 | 0 | 0 |
Expected return on plan assets | [2] | $ 0 | $ 0 | $ 0 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Defined Benefit Plan Net Periodic Benefit Income Expense | Other Defined Benefit Plan Net Periodic Benefit Income Expense | Other Defined Benefit Plan Net Periodic Benefit Income Expense | |
Actuarial (gain) loss | [2] | $ (2) | $ (8) | $ (2) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Immediate Recognition of Actuarial Gain (Loss), Statement of Income or Comprehensive Income [Extensible List] | Other net periodic benefit loss (income) - Note L | Other net periodic benefit loss (income) - Note L | Other net periodic benefit loss (income) - Note L | |
Total net periodic benefit cost (income) | $ 1 | $ (5) | $ 1 | |
Weighted-Average Plan Assumptions [Abstract] | ||||
Discount rate for service cost | [3] | 5.80% | 3.19% | 3.15% |
Discount rate for interest cost | [3] | 5.54% | 2.10% | 1.93% |
[1] Service cost is classified within the selling, general and administrative expense and cost of sales captions on the Statements of Consolidated Comprehensive Income (Loss). These components are classified within the other net periodic benefit loss (income) caption on the Statements of Consolidated Comprehensive Income (Loss). The plan assumptions discussed are a blended weighted-average rate for Ashland’s U.S. and non-U.S. plans. |
Employee Benefit Plans - Prior
Employee Benefit Plans - Prior Service Credits Recognized in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Pension [Member] | ||
Prior service credit recognized in accumulated other comprehensive income [Abstract] | ||
Prior service credit | $ 2 | $ 2 |
Postretirement [Member] | ||
Prior service credit recognized in accumulated other comprehensive income [Abstract] | ||
Prior service credit | $ 0 | $ 0 |
Employee Benefit Plans - Obliga
Employee Benefit Plans - Obligations and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Change in plan assets | ||||
Value of plan assets at October 1 | $ 201 | |||
Value of plan assets at September 30 | 203 | $ 201 | ||
Amounts recognized in the balance sheet | ||||
Other assets (noncurrent) | 17 | 21 | ||
Employee benefit obligations | (100) | (103) | ||
Pension Plans [Member] | ||||
Change in benefit obligations | ||||
Service cost | [1] | 3 | 4 | $ 5 |
Interest cost | [2] | 13 | 8 | 6 |
Other Postretirement Benefit Plan [Member] | ||||
Change in benefit obligations | ||||
Service cost | [1] | 1 | 1 | 1 |
Interest cost | [2] | 2 | 2 | 2 |
Continuing Operations [Member] | Pension Plans [Member] | ||||
Change in benefit obligations | ||||
Benefit obligations at October 1 | 250 | 422 | ||
Service cost | 3 | 4 | ||
Interest cost | $ 13 | $ 8 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Defined Benefit Plan Net Periodic Benefit Income Expense | Other Defined Benefit Plan Net Periodic Benefit Income Expense | ||
Benefits paid | $ (16) | $ (16) | ||
Actuarial (gain) loss | (10) | (123) | ||
Curtailments | (1) | |||
Foreign currency exchange rate changes | $ 15 | (38) | ||
Other (including acquisitions) | (1) | |||
Settlements | $ (5) | |||
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Settlement Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Defined Benefit Plan Net Periodic Benefit Income Expense | Other Defined Benefit Plan Net Periodic Benefit Income Expense | ||
Benefit obligations at September 30 | $ 255 | $ 250 | 422 | |
Change in plan assets | ||||
Value of plan assets at October 1 | 201 | 351 | ||
Actual return on plan assets | (2) | (100) | ||
Employer contributions | 8 | 5 | ||
Benefits paid | (16) | (16) | ||
Foreign currency exchange rate changes | 14 | (33) | ||
Settlements | (5) | |||
Other | (2) | (1) | ||
Value of plan assets at September 30 | 203 | 201 | 351 | |
Unfunded status of the plans | (52) | (49) | ||
Amounts recognized in the balance sheet | ||||
Other assets (noncurrent) | 17 | 21 | ||
Accrued expenses and other liabilities | (4) | (3) | ||
Employee benefit obligations | (65) | (67) | ||
Net amount recognized | $ (52) | $ (49) | ||
Weighted-average plan assumptions | ||||
Discount rate | 5.43% | 5.09% | ||
Rate of compensation increase | 3.07% | 2.50% | ||
Continuing Operations [Member] | Other Postretirement Benefit Plan [Member] | ||||
Change in benefit obligations | ||||
Benefit obligations at October 1 | $ 36 | $ 47 | ||
Service cost | 1 | 1 | ||
Interest cost | $ 2 | $ 2 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Defined Benefit Plan Net Periodic Benefit Income Expense | Other Defined Benefit Plan Net Periodic Benefit Income Expense | ||
Benefits paid | $ (4) | $ (6) | ||
Actuarial (gain) loss | (1) | (8) | ||
Benefit obligations at September 30 | 34 | 36 | $ 47 | |
Change in plan assets | ||||
Unfunded status of the plans | (34) | (36) | ||
Amounts recognized in the balance sheet | ||||
Accrued expenses and other liabilities | (3) | (4) | ||
Employee benefit obligations | (31) | (32) | ||
Net amount recognized | $ (34) | $ (36) | ||
Weighted-average plan assumptions | ||||
Discount rate | 5.72% | 2.98% | ||
[1] Service cost is classified within the selling, general and administrative expense and cost of sales captions on the Statements of Consolidated Comprehensive Income (Loss). These components are classified within the other net periodic benefit loss (income) caption on the Statements of Consolidated Comprehensive Income (Loss). |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets (Details) - Pension Plans [Member] - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | ||
Projected benefit obligation | $ 149 | $ 146 |
Accumulated benefit obligation | 144 | 141 |
Fair value of plan assets | $ 80 | $ 76 |
Employee Benefit Plans - Plan A
Employee Benefit Plans - Plan Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | $ 203 | $ 201 |
Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 11 | 1 |
Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 192 | 200 |
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 11 | 1 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 11 | 1 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
U.S. Government Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 6 | 10 |
U.S. Government Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
U.S. Government Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 6 | 10 |
U.S. Government Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Non-U.S. Government Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 39 | 24 |
Non-U.S. Government Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Non-U.S. Government Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 39 | 24 |
Non-U.S. Government Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Corporate Debt Instruments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 80 | 90 |
Corporate Debt Instruments [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Corporate Debt Instruments [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 80 | 90 |
Corporate Debt Instruments [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Listed Real Assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 9 | 9 |
Listed Real Assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Listed Real Assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 9 | 9 |
Listed Real Assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Asset-backed Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 7 | 17 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 7 | 17 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Corporate Stocks [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 25 | 27 |
Corporate Stocks [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Corporate Stocks [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 25 | 27 |
Corporate Stocks [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Insurance Contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 26 | 23 |
Insurance Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 0 | 0 |
Insurance Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | 26 | 23 |
Insurance Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, assets for plan benefits | $ 0 | $ 0 |
Employee Benefit Plans - Plan_2
Employee Benefit Plans - Plan Assets Allocations (Details) | Sep. 30, 2023 | Sep. 30, 2022 |
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||
Asset target allocation, actual | 100% | 100% |
Equity Securities [Member] | ||
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||
Asset target allocation, actual | 18% | 14% |
Equity Securities [Member] | Minimum [Member] | ||
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||
Asset target allocation, minimum | 5% | |
Equity Securities [Member] | Maximum [Member] | ||
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||
Asset target allocation, minimum | 45% | |
Fixed Income Securities [Member] | ||
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||
Asset target allocation, actual | 78% | 81% |
Fixed Income Securities [Member] | Minimum [Member] | ||
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||
Asset target allocation, minimum | 55% | |
Fixed Income Securities [Member] | Maximum [Member] | ||
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||
Asset target allocation, minimum | 95% | |
Other [Member] | ||
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||
Asset target allocation, actual | 4% | 5% |
Other [Member] | Minimum [Member] | ||
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||
Asset target allocation, minimum | 0% | |
Other [Member] | Maximum [Member] | ||
Defined Benefit Plan, Plan Assets Allocation [Abstract] | ||
Asset target allocation, minimum | 5% |
Employee Benefit Plans - Cash F
Employee Benefit Plans - Cash Flows (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2024 | $ 15 |
2025 | 16 |
2026 | 17 |
2027 | 18 |
2028 | 17 |
2029 - 2033 | 90 |
Other Postretirement Benefit Plan [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2024 | 3 |
2025 | 3 |
2026 | 3 |
2027 | 3 |
2028 | 3 |
2029 - 2033 | $ 15 |
Litigation, Claims and Contin_3
Litigation, Claims and Contingencies - Summary of Asbestos Claims Activity (Details) - Claim Claim in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Ashland [Member] | |||
Asbestos claims [Roll Forward] | |||
Open claims - beginning of year | 44 | 46 | 49 |
New claims filed | 2 | 2 | 2 |
Claims settled | (1) | (1) | (1) |
Claims dismissed | (3) | (3) | (4) |
Open claims - end of year | 42 | 44 | 46 |
Hercules [Member] | |||
Asbestos claims [Roll Forward] | |||
Open claims - beginning of year | 11 | 12 | 12 |
New claims filed | 1 | 1 | 1 |
Claims dismissed | 0 | (2) | (1) |
Open claims - end of year | 12 | 11 | 12 |
Litigation, Claims and Contin_4
Litigation, Claims and Contingencies - Additional Information (Details) $ in Millions | 12 Months Ended | |||||||
Sep. 30, 2023 USD ($) ServiceStationProperty Facility Site | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||
Insurance receivable | [1] | $ 47 | ||||||
Asbestos litigation cost projection [Abstract] | ||||||||
Number of Years Included in Asbestos Assumption | 40 years | |||||||
Environmental Remediation Costs Recognized [Abstract] | ||||||||
Number of sites were company is identified as a potentially responsible party under the superfund or similar state law | Site | 57 | |||||||
Number of current and former operating facilities subject to various environmental laws | Facility | 108 | |||||||
Total number of service station properties subject to various environmental laws | ServiceStationProperty | 1,225 | |||||||
Number of service stations being actively remediated | ServiceStationProperty | 14 | |||||||
Accrual for environmental loss contingencies | $ 214 | $ 211 | 207 | |||||
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | ||||||
Accrued environmental loss contingencies, noncurrent | $ 165 | $ 157 | ||||||
Recorded third-party environmental recoveries receivable | 17 | 21 | ||||||
Recorded third-party environmental recoveries, noncurrent | 15 | 17 | ||||||
Environmental liabilities recognized | 56 | 66 | 50 | |||||
Environmental exit costs, reasonably possible additional loss | $ 465 | |||||||
Maximum reserve for remediation reserve related to any one site (in hundredths) | 21% | |||||||
Brazil Tax Credits [Abstract] | ||||||||
Pre-tax gain | $ (6) | (42) | (11) | |||||
Ashland [Member] | ||||||||
Asbestos reserve [Roll Forward] | ||||||||
Increase (decrease) in asbestos related reserve | 9 | 16 | 12 | |||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||
Insurance receivable | 95 | [2] | 101 | [2] | 100 | [2] | $ 103 | |
Receivable adjustment | 3 | |||||||
Asbestos litigation cost projection [Abstract] | ||||||||
Possible total future litigation defense and claim settlement costs | 422 | |||||||
Total reserves for asbestos claims | 281 | [3] | 305 | [3] | 320 | [3] | 335 | |
Brazil Tax Credits [Abstract] | ||||||||
Pre-tax gain | (12) | |||||||
Hercules [Member] | ||||||||
Asbestos reserve [Roll Forward] | ||||||||
Increase (decrease) in asbestos related reserve | (2) | 15 | 8 | |||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||
Insurance receivable | 47 | [1] | 52 | [1] | 47 | 47 | ||
Receivable adjustment | 3 | |||||||
Asbestos litigation cost projection [Abstract] | ||||||||
Possible total future litigation defense and claim settlement costs | 288 | |||||||
Total reserves for asbestos claims | $ 191 | [4] | $ 213 | [4] | $ 217 | [4] | $ 229 | |
[1] Included $ 4 million and $ 3 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. Included $ 11 million and $ 12 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. Included $ 28 million and $ 29 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. Included $ 17 million and $ 18 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. |
Litigation, Claims and Contin_5
Litigation, Claims and Contingencies - Schedule of Progression of Activity in the Asbestos Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||||
Ashland [Member] | ||||||
Asbestos reserve [Roll Forward] | ||||||
Beginning balance | $ 305 | [1] | $ 320 | [1] | $ 335 | |
Reserve adjustment | 9 | 16 | 12 | |||
Amounts paid | (33) | (31) | (27) | |||
Ending balance | [1] | 281 | 305 | 320 | ||
Hercules [Member] | ||||||
Asbestos reserve [Roll Forward] | ||||||
Beginning balance | 213 | [2] | 217 | [2] | 229 | |
Reserve adjustment | (2) | 15 | 8 | |||
Amounts paid | (20) | (19) | (20) | |||
Ending balance | [2] | $ 191 | $ 213 | $ 217 | ||
[1] Included $ 28 million and $ 29 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. Included $ 17 million and $ 18 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. |
Litigation, Claims and Contin_6
Litigation, Claims and Contingencies - Schedule of Progression of Activity in the Asbestos Reserve (Parenthetical) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |||
Ashland [Member] | |||||||
Asbestos reserve [Roll Forward] | |||||||
Asbestos reserve | $ 281 | [1] | $ 305 | [1] | $ 320 | [1] | $ 335 |
Ashland [Member] | Other Current Liabilities [Member] | |||||||
Asbestos reserve [Roll Forward] | |||||||
Asbestos reserve | 28 | 29 | |||||
Hercules [Member] | |||||||
Asbestos reserve [Roll Forward] | |||||||
Asbestos reserve | 191 | [2] | 213 | [2] | $ 217 | [2] | $ 229 |
Hercules [Member] | Other Current Liabilities [Member] | |||||||
Asbestos reserve [Roll Forward] | |||||||
Asbestos reserve | $ 17 | $ 18 | |||||
[1] Included $ 28 million and $ 29 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. Included $ 17 million and $ 18 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. |
Litigation, Claims and Contin_7
Litigation, Claims and Contingencies - Summary of Progression of Insurance Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||
Insurance receivable - beginning of year | [1] | $ 47 | ||||
Insurance settlement | $ 1 | 5 | $ 4 | |||
Insurance receivable - end of year | [1] | 47 | ||||
Ashland [Member] | ||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||
Insurance receivable - beginning of year | 101 | [2] | 100 | [2] | 103 | |
Receivable adjustment | [3] | 3 | 7 | 6 | ||
Amounts collected | (9) | (6) | (9) | |||
Insurance receivable - end of year | [2] | 95 | 101 | 100 | ||
Hercules [Member] | ||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||
Insurance receivable - beginning of year | 52 | [1] | 47 | 47 | ||
Receivable adjustment | [4] | (3) | 7 | 1 | ||
Amounts collected | (2) | (2) | (1) | |||
Insurance receivable - end of year | $ 47 | [1] | $ 52 | [1] | $ 47 | |
[1] Included $ 4 million and $ 3 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. Included $ 11 million and $ 12 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. 2021 includes a $ 2 million reserve adjustment related to allowances for credit losses as a result of Ashland's adoption of the new credit measurement standard described in Note A. The total allowance for credit losses were $ 1 million and $ 2 million as of September 30, 2023 and 2022. 2021 includes a $ 1 million reserve adjustment related to allowances for credit losses as a result of Ashland's adoption of the new credit measurement standard described in Note A. The total allowance for credit losses was $ 1 million as of September 30, 2023 and 2022 , respectively. |
Litigation, Claims and Contin_8
Litigation, Claims and Contingencies - Summary of Progression of Insurance Receivable (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Sep. 30, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2020 | |||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||
Insurance receivable | [1] | $ 47 | ||||||
Ashland [Member] | ||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||
Insurance receivable | 100 | [2] | $ 95 | [2] | $ 101 | [2] | $ 103 | |
Allowance for credit losses | 2 | |||||||
Total allowance for credit losses | 1 | 2 | ||||||
Ashland [Member] | Accounts Receivable [Member] | ||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||
Insurance receivable | 11 | 12 | ||||||
Hercules [Member] | ||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||
Insurance receivable | 47 | 47 | [1] | 52 | [1] | $ 47 | ||
Allowance for credit losses | $ 1 | |||||||
Total allowance for credit losses | 1 | 1 | ||||||
Hercules [Member] | Accounts Receivable [Member] | ||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||
Insurance receivable | $ 4 | $ 3 | ||||||
[1] Included $ 4 million and $ 3 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. Included $ 11 million and $ 12 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2023 and 2022 , respectively. |
Litigation, Claims and Contin_9
Litigation, Claims and Contingencies - Summary of Reconciliation of Changes in Environmental Remediation Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Loss Contingencies [Line Items] | ||
Environmental remediation reserve - beginning of year | $ 211 | $ 207 |
Disbursements | (54) | (63) |
Revised obligation estimates and accretion | 57 | 67 |
Environmental remediation reserve - end of year | $ 214 | $ 211 |
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 | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Loss Contingencies [Line Items] | ||||
Environmental expense | $ 56 | $ 66 | $ 50 | |
Accretion | 1 | 1 | 1 | |
Legal expense | 3 | 4 | 4 | |
Total expense | $ 60 | $ 71 | $ 55 | |
Environmental Remediation Expense, before Recovery, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, General and Administrative Expense | Selling, General and Administrative Expense | Selling, General and Administrative Expense | |
Insurance receivable | $ (1) | $ (5) | $ (4) | |
Total expense, net of receivable activity | [1] | $ 59 | $ 66 | $ 51 |
[1] Net expense of $ 5 million, $ 13 million and $ 6 million for the fiscal years ended September 30, 2023, 2022 and 2021 , respectively, related to divested businesses which qualified for treatment as discontinued operations and for which certain environmental liabilities were retained by Ashland. These amounts are classified within the income from discontinued operations caption of the Statements of Consolidated Comprehensive Income (Loss). |
Litigation, Claims and Conti_11
Litigation, Claims and Contingencies - Summary of Components of Environmental Remediation Expense Included within Selling, General and Administrative Expense (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Loss Contingencies [Line Items] | |||
Net expense relates to divested businesses | $ 5 | $ 13 | $ 6 |
Equity Items - Additional Infor
Equity Items - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||
Mar. 01, 2022 | Jun. 30, 2023 | Mar. 31, 2023 | Feb. 28, 2023 | Feb. 28, 2022 | Sep. 30, 2021 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 28, 2023 | May 31, 2023 | |||
Accelerated Share Repurchases [Line Items] | ||||||||||||||||||||||||||||||||
Stock repurchase during period value | [1] | $ 303 | [2] | $ 200 | $ 450 | |||||||||||||||||||||||||||
Common shares repurchased | 3,082,928 | 2,853,312 | 3,922,423 | |||||||||||||||||||||||||||||
Dividend per common share | $ 0.385 | $ 0.385 | $ 0.335 | $ 0.335 | $ 1.44 | $ 1.27 | $ 1.15 | |||||||||||||||||||||||||
Common stock, dividends, per share, declared | $ 0.385 | $ 0.385 | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.335 | $ 0.300 | $ 0.300 | $ 0.300 | $ 0.300 | $ 0.275 | $ 0.275 | $ 0.275 | $ 0.275 | $ 0.275 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | |||||||||||||
Common shares reserved (in shares) | 17,300,000 | 17,300,000 | ||||||||||||||||||||||||||||||
2022 Stock Repurchase Program [Member] | ||||||||||||||||||||||||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||||||||||||||||||||||||
Stock repurchase during period value | $ 100 | $ 100 | $ 100 | |||||||||||||||||||||||||||||
Aggregate amount of common stock to be repurchased | $ 100 | $ 1,000 | $ 1,000 | $ 100 | ||||||||||||||||||||||||||||
Stock repurchase program amount outstanding | $ 150 | $ 150 | $ 200 | |||||||||||||||||||||||||||||
Stock repurchased and retired during period shares | 1,100,000 | 1,000,000 | 1,000,000 | |||||||||||||||||||||||||||||
2023 Stock Repurchase Program [Member] | ||||||||||||||||||||||||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||||||||||||||||||||||||
Aggregate amount of common stock to be repurchased | $ 1,000 | |||||||||||||||||||||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,000 | $ 1,000 | ||||||||||||||||||||||||||||||
2018 Stock Repurchase Program [Member] | ||||||||||||||||||||||||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||||||||||||||||||||||||
Stock repurchase during period value | $ 200 | |||||||||||||||||||||||||||||||
Aggregate amount of common stock to be repurchased | $ 200 | |||||||||||||||||||||||||||||||
Stock repurchased and retired during period shares | 2,150,000 | |||||||||||||||||||||||||||||||
2021 Accelerated Share Repurchase Agreement [Member] | ||||||||||||||||||||||||||||||||
Accelerated Share Repurchases [Line Items] | ||||||||||||||||||||||||||||||||
Stock repurchase during period value | $ 450 | |||||||||||||||||||||||||||||||
Stock repurchased and retired during period shares | 3,900,000 | 4,600,000 | ||||||||||||||||||||||||||||||
Common shares repurchased | 700,000 | |||||||||||||||||||||||||||||||
[1] Common shares repurchased were 3,082,928 , 2,853,312 , and 3,922,423 for 2023, 2022 and 2021, respectively. Includes $ 3 million of accrued excise taxes on stock repurchases for 2023. |
Equity Items - Components of Ac
Equity Items - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | |||
Unrealized translation gain (loss), before tax | $ 72 | $ (199) | $ 8 |
Unrealized translation gain (loss), tax | 0 | 2 | (1) |
Unrealized translation gain (loss), net of tax | 72 | (197) | 7 |
Unrealized gain (loss) on commodity hedges, before Tax | (8) | (2) | 5 |
Unrealized gain (loss) on commodity hedges, tax | 2 | 1 | (1) |
Unrealized gain (loss) on commodity hedges, net of tax | (6) | (1) | 4 |
Pension and postretirement obligation adjustment, before tax | 1 | ||
Pension and postretirement obligation adjustment, tax | 0 | ||
Pension and postretirement obligation adjustment, net of tax | 1 | ||
Total other comprehensive gain (loss), before tax | 64 | (200) | 13 |
Total other comprehensive gain (loss), tax | 2 | 3 | (2) |
Other comprehensive income (loss) | $ 66 | $ (197) | $ 11 |
Equity Items - Summary of Recon
Equity Items - Summary of Reconciliation of Changes in Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Balance, beginning of period | $ 3,220 | $ 2,752 | ||
Balance, end of period | $ 3,097 | $ 3,220 | $ 2,752 | |
Cash dividends declared per common share | $ 1.44 | $ 1.27 | $ 1.15 | |
Common Stock and Paid in Capital [Member] | ||||
Balance, beginning of period | $ 136 | $ 328 | $ 770 | |
Common shares issued under stock incentive and other plans | [1] | 12 | 8 | 8 |
Common shares purchased under repurchase program | [2],[3] | (143) | (200) | (450) |
Balance, end of period | 5 | 136 | 328 | |
Retained earnings [Member] | ||||
Balance, beginning of period | 3,653 | 2,796 | 2,649 | |
Adoption of new accounting pronouncements | [4] | 0 | 0 | (2) |
Net income | 178 | 927 | 220 | |
Regular dividends | (76) | (70) | (71) | |
Common shares purchased under repurchase program | [2] | (160) | 0 | 0 |
Balance, end of period | 3,595 | 3,653 | 2,796 | |
Accumulated other comprehensive income (loss) [Member] | ||||
Balance, beginning of period | (569) | (372) | (383) | |
Unrealized translation gain (loss) | 72 | (197) | 7 | |
Unrealized gain (loss) on commodity hedges | (6) | (1) | 4 | |
Pension and postretirement obligation adjustment | 0 | 1 | 0 | |
Balance, end of period | $ (503) | $ (569) | $ (372) | |
[1] Common shares issued were 193,767 , 168,270 and 183,281 for 2023, 2022 and 2021 , respectively. Common shares repurchased were 3,082,928 , 2,853,312 and 3,922,423 for 2023, 2022 and 2021 , respectively. Includes $ 3 million in excise tax on stock repurchases for 2023. Represents the cumulative-effect adjustment related to the adoption of the new guidance related to the measurement of credit losses on financial instruments during fiscal 2021. See Note A for more information. |
Equity Items - Summary of Rec_2
Equity Items - Summary of Reconciliation of Changes in Stockholders' Equity (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | |||
Common shares issued | 193,767 | 168,270 | 183,281 |
Common shares repurchased | 3,082,928 | 2,853,312 | 3,922,423 |
Excise tax on stock repurchases | $ 3 |
Stock Incentive Plans - Compone
Stock Incentive Plans - Components of Pretax Compensation Expense for Stock-Based Awards (Net of Forfeitures) and Associated Income Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Sep. 30, 2023 | [1] | Sep. 30, 2022 | [2] | Sep. 30, 2021 | [3] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | $ 22 | $ 24 | $ 18 | |||
Income tax benefit | 5 | 6 | 4 | |||
Stock Appreciation Rights (SARs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | 0 | 1 | 2 | |||
Nonvested Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | 11 | 12 | 10 | |||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | $ 11 | $ 11 | $ 6 | |||
[1] The year ended September 30, 2023 included $ 1 million of expense and $ 1 million of income related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. The year ended September 30, 2022 included $ 4 million and $ 2 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. The year ended September 30, 2021 included $ 3 million and zero of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. |
Stock Incentive Plans - Compo_2
Stock Incentive Plans - Components of Pretax Compensation Expense for Stock-Based Awards (Net of Forfeitures) and Associated Income Tax Benefits (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | $ 22 | [1] | $ 24 | [2] | $ 18 | [3] |
Cash-settled Nonvested Restricted Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | 1 | 4 | 3 | |||
Cash-settled Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | $ 1 | $ 2 | $ 0 | |||
[1] The year ended September 30, 2023 included $ 1 million of expense and $ 1 million of income related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. The year ended September 30, 2022 included $ 4 million and $ 2 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. The year ended September 30, 2021 included $ 3 million and zero of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. |
Stock Incentive Plans - Additio
Stock Incentive Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation | $ 22 | [1] | $ 24 | [2] | $ 18 | [3] | |
Stock Appreciation Rights (SARs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unexercised SARs lapse expiration period | 10 years | ||||||
Intrinsic value of stock appreciation rights and stock options exercised | $ 6 | 19 | 12 | ||||
Tax benefit realized from the exercised stock appreciation rights and stock options | 1 | 4 | 3 | ||||
Total grant date fair value of SARs and stock options that vested | 1 | $ 1 | $ 1 | ||||
Total unrecognized compensation costs | 0 | ||||||
Aggregate intrinsic value of outstanding stock appreciation rights and stock options | 17 | ||||||
Aggregate intrinsic value of exercisable stock appreciation rights and stock options | $ 17 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,023,000 | [4] | 1,142,000 | [4] | 1,543,000 | [4] | 1,993,000 |
Stock-based compensation | $ 0 | [1] | $ 1 | [2] | $ 2 | [3] | |
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] | |||||||
Total unrecognized compensation costs | $ 6 | ||||||
Unrecognized cost expected to be recognized over a weighted-average period (in years) | 1 year 3 months 18 days | ||||||
Total grant date fair value of nonvested stock awards that vested | $ 8 | 6 | 5 | ||||
Stock-based compensation | $ 11 | [1] | 12 | [2] | 10 | [3] | |
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 | 54,000 | ||||||
Stock-based compensation | $ 0 | 6 | 3 | ||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Measurement period of share-based payment award | 3 years | ||||||
Model to fair value share-based payment awards | Monte Carlo simulation valuation model | ||||||
Total unrecognized compensation costs | $ 10 | ||||||
Unrecognized cost expected to be recognized over a weighted-average period (in years) | 1 year 6 months | ||||||
Stock-based compensation | $ 11 | [1] | $ 11 | [2] | $ 6 | [3] | |
Number of common shares for each converted performance share | 1 | ||||||
Percentage of performance measures used to determine actual number of performance shares issuable upon vesting includes weighting of total shareholder return performance and return on net assets performance | 1.50% | ||||||
Performance Shares [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period of share-based payment award | 1 year | ||||||
Performance Shares [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period of share-based payment award | 3 years | ||||||
[1] The year ended September 30, 2023 included $ 1 million of expense and $ 1 million of income related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. The year ended September 30, 2022 included $ 4 million and $ 2 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. The year ended September 30, 2021 included $ 3 million and zero of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively. Exercise prices per share for SARs outstanding at September 30, 2023 ranged from $ 47.63 to $ 59.95 for 521 thousand shares and from $ 67.16 to $ 82.34 for 502 thousand shares. The weighted-average remaining contractual life of outstanding and exercisable SARs and stock options was 3.7 years. |
Stock Incentive Plans - Stock A
Stock Incentive Plans - Stock Appreciation Rights (Details) - $ / shares shares in Thousands | 12 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||||
Assumptions (weighted-average) [Abstract] | ||||||
Risk-free interest rate | 4.22% | 1.18% | 0.20% | |||
Expected dividend yield | 1.30% | 1.30% | 1.60% | |||
Expected volatility | 35.10% | 33.40% | 32.70% | |||
Expected life (in years) | 3 years | 3 years | 3 years | |||
Stock Appreciation Rights (SARs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Outstanding - beginning of year (in shares) | 1,142 | [1] | 1,543 | [1] | 1,993 | |
Exercised (in shares) | (114) | (392) | (386) | |||
Forfeitures and expirations (in shares) | (5) | (9) | (64) | |||
Outstanding - end of year (in shares) | [1] | 1,023 | 1,142 | 1,543 | ||
Exercisable - end of year (in shares) | 1,023 | 1,094 | 1,415 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Weighted-average exercise price per share, outstanding - beginning of year (in usd per share) | $ 63.85 | [1] | $ 62.14 | [1] | $ 61.11 | |
Weighted-average exercise price per share, exercised (in usd per share) | 52.31 | 57.32 | 54.44 | |||
Weighted-average exercise price per share, forfeitures and expirations (in usd per share) | 46.67 | 54.7 | 77.17 | |||
Weighted-average exercise price per share, outstanding - end of year (in usd per share) | [1] | 65.22 | 63.85 | 62.14 | ||
Weighted-average exercise price per share, exercisable - end of year (in usd per share) | $ 65.22 | $ 63.24 | $ 60.68 | |||
[1] Exercise prices per share for SARs outstanding at September 30, 2023 ranged from $ 47.63 to $ 59.95 for 521 thousand shares and from $ 67.16 to $ 82.34 for 502 thousand shares. The weighted-average remaining contractual life of outstanding and exercisable SARs and stock options was 3.7 years. |
Stock Incentive Plans - Stock_2
Stock Incentive Plans - Stock Appreciation Rights (Parenthetical) (Details) shares in Thousands | 12 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Exercise Price Range 1 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price per share range, minimum (in usd per share) | $ 47.63 |
Exercise price per share range, maximum (in usd per share) | $ 59.95 |
Exercise price per share range, number of exercisable SARs and options | shares | 521 |
Exercise Price Range 2 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price per share range, minimum (in usd per share) | $ 67.16 |
Exercise price per share range, maximum (in usd per share) | $ 82.34 |
Exercise price per share range, number of exercisable SARs and options | shares | 502 |
Stock Appreciation Rights (SARs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average remaining contractual life of outstanding SARs and stock options (in years) | 3 years 8 months 12 days |
Weighted-average remaining contractual life of outstanding, exercisable SARs and stock options (in years) | 3 years 8 months 12 days |
Stock Incentive Plans - Summary
Stock Incentive Plans - Summary of Progression of Activity and Various Other Information Relative Nonvested Stock Awards (Details) - Nonvested Stock Awards [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested - beginning of year | 209 | 211 | 199 |
Granted | 92 | 80 | 93 |
Vested | (106) | (72) | (69) |
Forfeitures | (7) | (10) | (12) |
Nonvested - end of year | 188 | 209 | 211 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-average grant date fair value, nonvested - beginning of year | $ 82.55 | $ 76.10 | $ 74.57 |
Weighted-average grant date fair value, granted | 105.72 | 92.34 | 78.96 |
Weighted-average grant date fair value, vested | 82.04 | 78.81 | 75.1 |
Weighted-average grant date fair value, forfeitures | 106.25 | 80.06 | 79.02 |
Weighted-average grant date fair value, nonvested - end of year | $ 97.66 | $ 82.55 | $ 76.10 |
Stock Incentive Plans - Summa_2
Stock Incentive Plans - Summary of Performance Shares/units Granted (Details) - Performance Shares [Member] - $ / shares shares in Thousands | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, start date | Oct. 01, 2022 | Oct. 01, 2021 | Oct. 01, 2020 | |
Vesting period, end date | Sep. 30, 2025 | Sep. 30, 2024 | Sep. 30, 2023 | |
Target shares granted | [1] | 98 | 110 | 122 |
Weighted-average fair value per share | [1] | $ 135.93 | $ 131.33 | $ 90.44 |
[1] At the end of the performance period, the actual number of shares/units awarded can range from zero to 200 % of the target shares/units granted, which is assumed to be 100 %. Both the shares granted and weighted-average fair value per share/unit are as of the grant date. |
Stock Incentive Plans - Summa_3
Stock Incentive Plans - Summary of Performance Shares/units Granted (Parenthetical) (Details) - Performance Shares [Member] | 12 Months Ended |
Sep. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Actual to Target Number of Shares Issued Percentage, Minimum | 0% |
Actual to Target Number of Shares Issued Percentage, Maximum | 200% |
Target Number of Shares Issued Percentage | 100% |
Stock Incentive Plans - Summa_4
Stock Incentive Plans - Summary of Fair Values Assumptions Using Monte Carlo Simulation Valuation Model (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Assumptions (weighted-average) [Abstract] | |||
Risk-free interest rate | 4.22% | 1.18% | 0.20% |
Expected dividend yield | 1.30% | 1.30% | 1.60% |
Expected life (in years) | 3 years | 3 years | 3 years |
Expected volatility | 35.10% | 33.40% | 32.70% |
Stock Incentive Plans - Summa_5
Stock Incentive Plans - Summary of Nonvested Stock Awards and Performance Shares Activity (Details) - Performance Shares [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested - beginning of year | 310 | 253 | 227 |
Granted | 98 | 110 | 122 |
Vested | (88) | (1) | (79) |
Forfeitures | (33) | (52) | (17) |
Nonvested - end of year | 287 | 310 | 253 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-average grant date fair value, nonvested - beginning of year | $ 105.78 | $ 88.66 | $ 80.86 |
Weighted-average grant date fair value, granted | 135.93 | 131.33 | 90.44 |
Weighted-average grant date fair value, vested | 84.33 | 96.32 | 68.93 |
Weighted-average grant date fair value, forfeitures | 94.53 | 85.78 | 89.36 |
Weighted-average grant date fair value, nonvested - end of year | $ 118.43 | $ 105.78 | $ 88.66 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Product Concentration Risk [Member] | Sales Revenue [Member] | Minimum [Member] | ||
Revenue From Contracts With Customers [Line Items] | ||
Concentration risk percentage | 10% | |
Cellulosics [Member] | Product Concentration Risk [Member] | Sales Revenue [Member] | ||
Revenue From Contracts With Customers [Line Items] | ||
Concentration risk percentage | 37% | |
Polyvinylpyrrolidones (PVP) [Member] | Product Concentration Risk [Member] | Sales Revenue [Member] | ||
Revenue From Contracts With Customers [Line Items] | ||
Concentration risk percentage | 25% | |
Trade Receivable [Member] | ||
Revenue From Contracts With Customers [Line Items] | ||
Trade receivables | $ 288 | $ 369 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | |||
Sales | $ 2,191 | $ 2,391 | $ 2,111 |
Life Sciences [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 869 | 815 | 737 |
Life Sciences [Member] | North America [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 228 | 244 | 229 |
Life Sciences [Member] | Europe [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 305 | 267 | 242 |
Life Sciences [Member] | Asia Pacific [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 233 | 218 | 192 |
Life Sciences [Member] | Latin America & Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 103 | 86 | 74 |
Personal Care [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 598 | 678 | 592 |
Personal Care [Member] | North America [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 176 | 198 | 180 |
Personal Care [Member] | Europe [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 233 | 270 | 240 |
Personal Care [Member] | Asia Pacific [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 105 | 126 | 100 |
Personal Care [Member] | Latin America & Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 84 | 84 | 72 |
Specialty Additives [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 600 | 719 | 655 |
Specialty Additives [Member] | North America [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 203 | 247 | 203 |
Specialty Additives [Member] | Europe [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 214 | 258 | 246 |
Specialty Additives [Member] | Asia Pacific [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 153 | 182 | 171 |
Specialty Additives [Member] | Latin America & Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 30 | 32 | 35 |
Intermediates [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 185 | 256 | 178 |
Intermediates [Member] | North America [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 128 | 163 | 114 |
Intermediates [Member] | Europe [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 27 | 39 | 28 |
Intermediates [Member] | Asia Pacific [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | 22 | 43 | 29 |
Intermediates [Member] | Latin America & Other [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Sales | $ 8 | $ 11 | $ 7 |
Reportable Segment Informatio_2
Reportable Segment Information - Schedule of Information About Domestic and International Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales to external customers | $ 2,191 | $ 2,391 | $ 2,111 |
Net assets (liabilities) | 3,097 | 3,220 | |
Property, plant and equipment, net | 1,373 | 1,338 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales to external customers | 634 | 731 | 637 |
Net assets (liabilities) | 1,532 | 1,857 | |
Property, plant and equipment, net | 1,032 | 1,042 | |
International [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales to external customers | 1,557 | 1,660 | $ 1,474 |
Net assets (liabilities) | 1,565 | 1,363 | |
Property, plant and equipment, net | $ 341 | $ 296 |
Reportable Segment Informatio_3
Reportable Segment Information - Summary of Financial Information for Each Reportable Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Segment Reporting Information [Line Items] | ||||
Sales | $ 2,191 | $ 2,391 | $ 2,111 | |
Equity income | 1 | 1 | 0 | |
Other income | 6 | 2 | 9 | |
Equity and other income | 7 | 3 | 9 | |
Operating income (loss) | 172 | 333 | 192 | |
Depreciation | 150 | 147 | 154 | |
Amortization expense | 93 | 94 | 90 | |
EBITDA | [1] | 415 | 574 | 436 |
Additions to property, plant and equipment | 170 | 113 | 105 | |
Assets | 5,939 | 6,213 | ||
Property, plant and equipment, net | 1,373 | 1,338 | ||
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [2] | (61) | (77) | (51) |
Life Sciences [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 869 | 815 | 737 | |
Equity income | 0 | 0 | 0 | |
Other income | 0 | 0 | 0 | |
Operating income (loss) | 172 | 155 | 130 | |
Depreciation | 41 | 35 | 36 | |
Amortization expense | 28 | 28 | 28 | |
EBITDA | [1] | 241 | 218 | 194 |
Additions to property, plant and equipment | 46 | 28 | 27 | |
Assets | 1,904 | 1,905 | ||
Property, plant and equipment, net | 419 | 422 | ||
Life Sciences [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 869 | 815 | 737 | |
Personal Care [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity income | 1 | 1 | 0 | |
Other income | 0 | 0 | 2 | |
Operating income (loss) | [3] | 52 | 102 | 73 |
Depreciation | 38 | 37 | 39 | |
Amortization expense | 47 | 47 | 42 | |
EBITDA | [1] | 137 | 186 | 154 |
Additions to property, plant and equipment | 20 | 14 | 7 | |
Assets | 1,004 | 1,073 | ||
Property, plant and equipment, net | 160 | 153 | ||
Personal Care [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 598 | 678 | 592 | |
Specialty Additives [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 600 | 719 | 655 | |
Equity income | 0 | 0 | 0 | |
Other income | 0 | 0 | 0 | |
Operating income (loss) | [3] | 10 | 103 | 61 |
Depreciation | 58 | 63 | 66 | |
Amortization expense | 18 | 18 | 19 | |
EBITDA | [1] | 86 | 184 | 146 |
Additions to property, plant and equipment | 99 | 61 | 67 | |
Assets | 1,580 | 1,567 | ||
Property, plant and equipment, net | 642 | 603 | ||
Specialty Additives [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 600 | 719 | 655 | |
Intermediates [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity income | 0 | 0 | 0 | |
Other income | 0 | 0 | 0 | |
Operating income (loss) | 50 | 87 | 35 | |
Depreciation | 13 | 12 | 12 | |
Amortization expense | 0 | 1 | 1 | |
EBITDA | [1] | 63 | 100 | 48 |
Additions to property, plant and equipment | 3 | 7 | 2 | |
Assets | 136 | 170 | ||
Property, plant and equipment, net | 47 | 56 | ||
Intermediates [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 185 | 256 | 178 | |
Unallocated and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Other income | 6 | 2 | 7 | |
Operating income (loss) | [3] | (112) | (114) | (107) |
Depreciation | 0 | 0 | 1 | |
Amortization expense | 0 | 0 | 0 | |
EBITDA | [1] | (112) | (114) | (106) |
Additions to property, plant and equipment | 2 | 3 | $ 2 | |
Assets | 1,315 | 1,498 | ||
Property, plant and equipment, net | $ 105 | $ 104 | ||
[1] Excludes income from discontinued operations and other net periodic benefit loss (income). See the Statement of Consolidated Comprehensive Income (Loss) for applicable amounts excluded. Intersegment sales from Intermediates are accounted for at prices that approximate fair value. All other intersegment sales are accounted for at cost. Includes income on acquisitions and divestitures, net for fiscal 2023, 2022 and 2021 within Unallocated and Other. Includes a $ 4 million impairment charge related to a Specialty Additives facility in 2023. Includes a fixed asset impairment of $ 3 million related to Personal Care and a capital project impairment of $ 10 million related to Specialty Additives in 2021. |
Reportable Segment Informatio_4
Reportable Segment Information - Summary of Financial Information for Each Reportable Segment (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2021 | |
Specialty Additives facility [Member] | ||
Segment Reporting Information [Line Items] | ||
Impairment charge | $ 4 | |
Personal Care [Member] | ||
Segment Reporting Information [Line Items] | ||
Fixed asset impairment | $ 3 | |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating Income (Loss) | |
Specialty Additives [Member] | ||
Segment Reporting Information [Line Items] | ||
Capital project impairment | $ 10 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event [Member] - Ashland [Member] € in Millions | Oct. 19, 2023 EUR (€) |
Subsequent Event [Line Items] | |
Maximum limit of receivables can transfer | € 125 |
Agreement term to sell trade receivables | 3 years |