Document And Entity Information
Document And Entity Information | 6 Months Ended |
Mar. 31, 2024 shares | |
Cover [Abstract] | |
Entity Registrant Name | ASHLAND INC. |
Entity Central Index Key | 0001674862 |
Current Fiscal Year End Date | --09-30 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity File Number | 333-211719 |
Entity Tax Identification Number | 81-2587835 |
Entity Address, Address Line One | 8145 Blazer Drive |
Entity Address, City or Town | Wilmington |
Entity Address, State or Province | DE |
Entity Address, Postal Zip Code | 19808 |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Document Quarterly Report | true |
Document Transition Report | false |
City Area Code | 302 |
Local Phone Number | 995-3000 |
Entity Common Stock, Shares Outstanding | 50,127,444 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | ASH |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Security Exchange Name | NYSE |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2024 |
Entity Incorporation, State or Country Code | DE |
STATEMENTS OF CONSOLIDATED COMP
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Sales | $ 575 | $ 603 | $ 1,048 | $ 1,128 |
Cost of sales | 414 | 406 | 789 | 766 |
Gross profit | 161 | 197 | 259 | 362 |
Selling, general and administrative expense | 106 | 79 | 189 | 172 |
Research and development expense | 14 | 12 | 26 | 25 |
Intangibles amortization expense - Note F | 20 | 23 | 40 | 46 |
Equity and other income | 0 | 0 | 2 | 1 |
Loss on acquisitions and divestitures, net | 0 | 0 | (2) | 0 |
Operating income | 21 | 83 | 4 | 120 |
Net interest and other expense (income) | 2 | (10) | (21) | (24) |
Other net periodic benefit loss - Note J | 2 | 2 | 4 | 3 |
Income from continuing operations before income taxes | 17 | 91 | 21 | 141 |
Income tax expense (benefit) - Note I | (104) | (1) | (128) | 7 |
Income from continuing operations | 121 | 92 | 149 | 134 |
Loss from discontinued operations, net of income taxes - Note B | (1) | (1) | (2) | (2) |
Net income | $ 120 | $ 91 | $ 147 | $ 132 |
Basic earnings per share - Note L | ||||
Income from continuing operations | $ 2.43 | $ 1.71 | $ 2.95 | $ 2.47 |
Loss from discontinued operations | (0.01) | (0.01) | (0.04) | (0.04) |
Net income | 2.42 | 1.7 | 2.91 | 2.43 |
Diluted earnings per share - Note L | ||||
Income from continuing operations | 2.4 | 1.68 | 2.92 | 2.43 |
Loss from discontinued operations | (0.01) | (0.01) | (0.04) | (0.04) |
Net income | $ 2.39 | $ 1.67 | $ 2.88 | $ 2.39 |
COMPREHENSIVE INCOME | ||||
Net income | $ 120 | $ 91 | $ 147 | $ 132 |
Other comprehensive income (loss), net of tax | ||||
Unrealized translation gain (loss) | (27) | 27 | 27 | 109 |
Unrealized gain (loss) on commodity hedges | 1 | (3) | 0 | (7) |
Other comprehensive income (loss) - Note M | (26) | 24 | 27 | 102 |
Comprehensive income | $ 94 | $ 115 | $ 174 | $ 234 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 | |
Current assets | |||
Cash and cash equivalents | $ 439 | $ 417 | |
Accounts receivable - Note G | [1] | 260 | 338 |
Inventories - Note E | 550 | 626 | |
Other assets | 178 | 125 | |
Total current assets | 1,427 | 1,506 | |
Property, plant and equipment | |||
Cost | 3,299 | 3,211 | |
Accumulated depreciation | 1,959 | 1,838 | |
Net property, plant and equipment | 1,340 | 1,373 | |
Goodwill - Note F | 1,379 | 1,362 | |
Intangibles - Note F | 851 | 886 | |
Operating lease assets, net - Note H | 117 | 122 | |
Restricted investments - Note D | 306 | 290 | |
Asbestos insurance receivable - Note K | [2] | 121 | 127 |
Deferred income taxes | 150 | 22 | |
Other assets | 257 | 251 | |
Total noncurrent assets | 4,521 | 4,433 | |
Total assets | 5,948 | 5,939 | |
Current liabilities | |||
Short-term debt - Note G | 0 | 16 | |
Trade and other payables | 207 | 210 | |
Accrued expenses and other liabilities | 225 | 208 | |
Current operating lease obligations - Note H | 21 | 22 | |
Total current liabilities | 453 | 456 | |
Noncurrent liabilities | |||
Long-term debt - Note G | 1,328 | 1,314 | |
Asbestos litigation reserve - Note K | 399 | 427 | |
Deferred income taxes | 148 | 148 | |
Employee benefit obligations - Note J | 97 | 100 | |
Operating lease obligations - Note H | 101 | 106 | |
Other liabilities | 288 | 291 | |
Total noncurrent liabilities | 2,361 | 2,386 | |
Commitments and contingencies - Note K | |||
Stockholders' equity - Note M | 3,134 | 3,097 | |
Total liabilities and stockholders' equity | $ 5,948 | $ 5,939 | |
[1] Accounts receivable includes an allowance for credit losses of $ 3 million at both March 31, 2024 and September 30, 2023 . Asbestos insurance receivable includes an allowance for credit losses of $ 2 million at both March 31, 2024 and September 30, 2023 . |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 |
Current assets | ||
Allowance for credit losses on Accounts receivables | $ 3 | $ 3 |
Noncurrent assets | ||
Allowance for credit losses on Asbestos insurance receivable | $ 2 | $ 2 |
STATEMENTS OF CONDENSED CONSOLI
STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | ||
Net income | $ 147 | $ 132 |
Loss from discontinued operations, net of income taxes | 2 | 2 |
Adjustments to reconcile income from continuing operations to cash flows from operating activities: | ||
Depreciation and amortization | 160 | 120 |
Original issue discount and debt issuance costs amortization | 3 | 3 |
Deferred income taxes | (136) | 15 |
Stock based compensation expense | 7 | 12 |
Excess tax benefit on stock based compensation | 0 | 2 |
Income from restricted investments | (47) | (48) |
Asset impairments | 0 | 4 |
Pension contributions | (11) | (3) |
Change in operating assets and liabilities | 130 | (212) |
Total cash flows provided by operating activities from continuing operations | 255 | 27 |
CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES FROM CONTINUING OPERATIONS | ||
Additions to property, plant and equipment | (70) | (58) |
Proceeds from settlement of company-owned life insurance contracts | 0 | 3 |
Company-owned life insurance payments | (1) | (1) |
Funds restricted for specific transactions | (5) | (5) |
Other investing cash flows | (10) | |
Reimbursements from restricted investments | 37 | 16 |
Proceeds from sale of securities | 20 | 15 |
Purchases of securities | (20) | (15) |
Total cash flows used by investing activities from continuing operations | (49) | (45) |
CASH FLOWS USED BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS | ||
Repurchase of common stock | (100) | (142) |
Repayment of short-term debt | (16) | 0 |
Cash dividends paid | (39) | (36) |
Stock based compensation employee withholding taxes paid in cash | (4) | (10) |
Total cash flows used by financing activities from continuing operations | (159) | (188) |
CASH PROVIDED (USED) BY CONTINUING OPERATIONS | 47 | (206) |
Cash used by discontinued operations | ||
Operating cash flows | (27) | (47) |
Total cash used by discontinued operations | (27) | (47) |
Effect of currency exchange rate changes on cash and cash equivalents | 2 | 6 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 22 | (247) |
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 417 | 646 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 439 | $ 399 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Securities Trading Plans of Directors and Executive Officers On February 16, 2024 , Eric N. Boni , Ashland’s Vice President, Finance and Principal Accounting Officer , entered into a Rule 10b5-1 trading arrangement, to exercise up to 2,730 stock appreciation rights related to Ashland’s common stock. The duration of the trading arrangement is until the earlier of (1) December 5, 2024 , (2) the date on which all transactions under the trading arrangement are completed, or (3) at such time as the trading arrangement is otherwise terminated or expires according to its terms. Ashland Securities Trading Plans None. |
Rule 10b5-1 Trading Plan [Member] | Eric N Boni [Member] | |
Trading Arrangements, by Individual | |
Name | Eric N. Boni |
Title | Vice President, Finance and Principal Accounting Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | February 16, 2024 |
Rule 10b5-1 Arrangement Terminated | true |
Termination Date | December 5, 2024 |
Aggregate Available | 2,730 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies | NOTE A – SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting ("U.S. GAAP") and Securities and Exchange Commission ("SEC") regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. These statements omit certain information and footnote disclosures required for complete annual financial statements and, therefore, should be read in conjunction with the Ashland Inc. and consolidated subsidiaries ("Ashland" or the "Company") Annual Report on Form 10-K for the fiscal year ended September 30, 2023. Results of operations for the period ended March 31, 2024 are not necessarily indicative of the expected results for the remainder of the fiscal year. 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. For additional information about Ashland's reportable segments, see Note P. Use of estimates, risks and uncertainties The preparation of Ashland’s Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. Significant items that are subject to such estimates and assumptions include, but are not limited to, 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. New accounting pronouncements A description of new U.S. GAAP accounting standards issued or adopted during the current year is required in interim financial reporting. A detailed listing of new accounting standards relevant to Ashland is included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2023 . There were no new standards that were either issued or adopted in the current fiscal year that will have a material impact on Ashland's Condensed Consolidated Financial Statements. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Mar. 31, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE B – DISCONTINUED OPERATIONS Ashland has divested certain businesses that have qualified as discontinued operations. The operating results from these divested businesses and subsequent adjustments related to ongoing assessments of certain retained liabilities and tax items have been recorded within the discontinued operations caption in the Statements of Consolidated Comprehensive Income (Loss) for all periods presented. The following divested businesses represent disposal groups that qualified as discontinued operations in previous periods and impacted discontinued operations for the three and six months ended March 31, 2024 and 2023: • 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; and • The sale of the Ashland Distribution (Distribution) business divested in 2011. Components of amounts reflected in the Statements of Consolidated Comprehensive Income (Loss) related to discontinued operations are presented in the following table for the three and six months ended March 31, 2024 and 2023. Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Income (loss) from discontinued operations, net of income taxes Performance Adhesives $ — $ — $ ( 3 ) $ — Composites/Marl facility ( 2 ) ( 1 ) ( 1 ) ( 1 ) Distribution ( 1 ) — — ( 1 ) Valvoline 2 — 2 — $ ( 1 ) $ ( 1 ) $ ( 2 ) $ ( 2 ) |
Restructuring Activities
Restructuring Activities | 6 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activities | NOTE C – RESTRUCTURING ACTIVITIES Ashland periodically implements 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 2024 and 2023 restructuring costs During fiscal 2023, Ashland implemented targeted organizational restructuring actions to reduce costs. This program continued into fiscal 2024. Severance costs Ashland recorded severance expense of $ 18 million and zero during the three months ended March 31, 2024 and 2023 and $ 21 million and zero during the six months ended March 31, 2024 and 2023, respectively, within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss). As of March 31, 2024 , the severance liability associated with this program was $ 20 million and is recorded within accrued expenses and other liabilities in the Consolidated Balance Sheets. The following table details at March 31, 2024 the amount of restructuring severance reserves related to this program. (In millions) Severance reserves Balance at of September 30, 2023 $ 3 Severance expense 21 Utilization (cash paid) ( 4 ) Balance at March 31, 2024 $ 20 Plant optimization actions During the three and six months ended March 31, 2024 , Ashland incurred $ 27 million and $ 49 million, respectively, of accelerated depreciation for product line optimization activities associated with two Specialty Additives manufacturing facilities, which was recorded within the cost of sales caption of the Statements of Consolidated Comprehensive Income (Loss). Ashland's portfolio optimization actions include the consolidation of Ashland's carboxymethylcellulose (CMC) and industrial methylcellulose (MC) capacity and rebalancing of the hydroxyethylcellulose (HEC) network. Fiscal 2023 Life Sciences restructuring program During the three months ended December 31, 2022, Ashland implemented a restructuring program within the Nutraceuticals business of the Life Sciences segment. Ashland recorded severance expense of $ 1 million during the three months ended December 31, 2022, within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss). As of March 31, 2024 , the severance reserve associated with this program was zero . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE D – FAIR VALUE MEASUREMENTS 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. 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 March 31, 2024. Carrying Total Quoted prices Significant Significant (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 439 $ 439 $ 439 $ — $ — Restricted investments (a)(b) 383 383 383 — — Investment of captive insurance company (c) 8 8 8 — — Total assets at fair value $ 830 $ 830 $ 830 $ — $ — Liabilities Foreign currency derivatives (d) $ 1 $ 1 $ — $ 1 $ — Commodity derivatives (d ) 4 4 — 4 — Total liabilities at fair value $ 5 $ 5 $ — $ 5 $ — (a) Includes $ 306 million within restricted investments and $ 77 million within other current assets in the Condensed Consolidated Balance Sheets . (b) Includes $ 255 million related to the Asbestos trust and $ 128 million related to the Environmental trust . (c) Included in other noncurrent assets in the Condensed Consolidated Balance Sheets . (d) Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets. The following table summarizes financial asset instruments subject to recurring fair value measurements as of September 30, 2023. Carrying Total Quoted prices Significant Significant (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 — — Investment 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) Includes $ 290 million within restricted investments and $ 77 million within other current assets in the Condensed Consolidated Balance Sheets . (b) Includes $ 243 million related to the Asbestos trust and $ 124 million related to the Environmental trust . (c) Included in other noncurrent assets in the Condensed Consolidated Balance Sheets . (d) Included in accounts receivable in the Condensed Consolidated Balance Sheets . (e) Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets. Restricted investments Ashland maintains certain investments in 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, classified as Level 1 measurements within the fair value hierarchy. These securities were classified primarily as noncurrent restricted investment assets, with $ 77 million classified within other current assets, in the Condensed Consolidated Balance Sheets at both March 31, 2024 and September 30, 2023. The following table presents gross unrealized gains and losses for the restricted securities as of March 31, 2024 and September 30, 2023: Gross Gross (In millions) Adjusted Cost Unrealized Gain Unrealized Loss Fair Value As of March 31, 2024 Demand deposit $ 9 $ — $ — $ 9 Equity mutual fund 141 46 — 187 Fixed income mutual fund 223 — ( 36 ) 187 Fair value $ 373 $ 46 $ ( 36 ) $ 383 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 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 for the three and six months ended March 31, 2024 and 2023. Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Investment income (a) $ 3 $ 3 $ 9 $ 6 Net gains (a) 9 19 39 41 Funds restricted for specific transactions — — 5 5 Disbursements ( 21 ) ( 16 ) ( 37 ) ( 16 ) (a) Included in the net interest and other expense (income) 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 the three and six months ended March 31, 2024 and 2023 within the Statements of Consolidated Comprehensive Income (Loss). Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Foreign currency derivative gains (losses) $ ( 2 ) $ 1 $ 1 $ 9 The following table summarizes the fair values of the outstanding foreign currency derivatives as of March 31, 2024 and September 30, 2023 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets. March 31 September 30 (In millions) 2024 2023 Foreign currency derivative assets $ — $ 1 Notional contract values 40 147 Foreign currency derivative liabilities $ 1 $ 1 Notional contract values 198 103 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. The following table summarizes the net gai ns and losses recognized during the three and six months ended March 31, 2024 and 2023 within the cost of sales caption of the Statements of Consolidated Comprehensive Income (Loss). Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Commodity derivative losses $ ( 2 ) $ ( 1 ) $ ( 3 ) $ — The following table summarizes the fair values of the outstanding commodity derivatives as of March 31, 2024, and September 30, 2023 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets. March 31 September 30 (In millions) 2024 2023 Commodity derivative assets $ — $ — Notional contract values 1 2 Commodity derivative liabilities $ 4 $ 4 Notional contract values 14 16 Other financial instruments At March 31, 2024 and September 30, 2023 , Ashland's long-term debt (including the current portion and excluding debt issuance cost discounts) had a carrying value of $ 1,340 million and $ 1,327 million, respectively, compared to a fair value of $ 1,266 million and $ 1,160 million, respectively. The fair values of long-term debt are based on quoted market prices. |
Inventories
Inventories | 6 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE E – 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 table summarizes Ashland’s inventories as of the reported Condensed Consolidated Balance Sheets dates. March 31 September 30 (In millions) 2024 2023 Finished products $ 352 $ 390 Raw materials, supplies and work in process 198 236 $ 550 $ 626 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 6 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | NOTE F – GOODWILL AND OTHER INTANGIBLES Goodwill 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. N o indicators of impairment were identified in the three and six months ended March 31, 2024 . The following is a progression of goodwill by reportable segment for the six months ended March 31, 2024. Life Personal Specialty (In millions) Sciences Care (a) Additives (a) Intermediates (a) Total Balance at September 30, 2023 $ 819 $ 122 $ 421 $ — $ 1,362 Currency translation 11 1 5 — 17 Balance at March 31, 2024 $ 830 $ 123 $ 426 $ — $ 1,379 (a) As of March 31, 2024 and September 30, 2023 , there were accumulated impairments of $ 356 million, $ 174 million and $ 90 million related 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 annually reviews, as of July 1, indefinite-lived intangible assets for possible impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No indicators of impairment were identified in the three and six months ended March 31, 2024 . Other intangible assets were comprised of the following as of March 31, 2024 and September 30, 2023. March 31, 2024 September 30, 2023 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying (In millions) amount amortization amount amount amortization amount Definite-lived intangibles Trademarks and trade names $ 98 $ ( 45 ) $ 53 $ 97 $ ( 43 ) $ 54 Intellectual property 736 ( 602 ) 134 731 ( 581 ) 150 Customer and supplier relationships 827 ( 441 ) 386 821 ( 417 ) 404 Total definite-lived intangibles 1,661 ( 1,088 ) 573 1,649 ( 1,041 ) 608 Indefinite-lived intangibles Trademarks and trade names 278 — 278 278 — 278 Total intangible assets $ 1,939 $ ( 1,088 ) $ 851 $ 1,927 $ ( 1,041 ) $ 886 Amortization expense recognized on intangible assets was $ 20 million and $ 23 million for the three months ended March 31, 2024 and 2023 , respectively, and $ 40 million and $ 46 million for the six months ended March 31, 2024 and 2023 , respectively, and is included in the intangibles amortization expense caption of the Statements of Consolidated Comprehensive Income (Loss). Estimated amortization expense for future periods is $ 79 million in 2024 (includes six months actual and six months estimated), $ 77 million in 2025, $ 75 million in 2026, $ 53 million in 2027 and $ 50 million in 2028. Actual amounts may change from such estimated amounts due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions and divestitures, potential impairment, accelerated amortization, or other events. |
Debt and Other Financing Activi
Debt and Other Financing Activities | 6 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Activities | NOTE G – DEBT AND OTHER FINANCING ACTIVITIES The following table summarizes Ashland’s current and long-term debt as of the dates reported in the Condensed Consolidated Balance Sheets. (In millions) March 31, 2024 September 30, 2023 3.375 % Senior Notes, due 2031 $ 450 $ 450 2.00 % Senior Notes, due 2028 (Euro 500 million principal) 540 528 6.875 % Notes, due 2043 282 282 6.50 % Junior Subordinated Notes, due 2029 65 64 Other (a) ( 9 ) 6 Total debt 1,328 1,330 Short-term debt — 16 Long-term debt (less debt issuance costs) $ 1,328 $ 1,314 (a) Other includes $ 12 million and $ 13 million of debt issuance costs as of March 31, 2024 and September 30, 2023 , respectively. The current portion of the long-term debt was zero for both March 31, 2024 and September 30, 2023. The scheduled aggregate maturities to 2028 for long-term debt by year (including the current portion and excluding debt issuance costs) are as follows as of March 31, 2024 : zero in the next 3 years, $ 4 million in 2027, and $ 540 million in 2028. Accounts Receivable Facilities and Off-Balance Sheet Arrangements U.S. Accounts Receivable Sales Program Ashland continues to maintain its U.S. Accounts Receivable Sales Program, which was entered into during fiscal 2021. 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 Condensed Consolidated Cash Flows. Losses on sale of assets, including related transaction expenses are recorded within the net interest and other expense (income) 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 loss of $ 1 million and less than $ 1 million within the Statements of Consolidated Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023, respectively, and $ 2 million and $ 1 million for the six months ended March 31, 2024 and 2023, respectively, within the net interest and other expense (income) caption associated with sales under the program. Ashland has recorded $ 84 million in sales at March 31, 2024 against the buyer’s limit, which was $ 100 million at March 31, 2024 compared to $ 86 million of sales at September 30, 2023 against the buyer's limit, which was $ 115 million at September 30, 2023 . Ashland transferred $ 102 million and $ 106 million in receivables to the special purpose entity as of March 31, 2024 and September 30, 2023, respectively. Ashland recorded liabilities related to its service obligations and limited guarantee as of March 31, 2024 and September 30, 2023 of less than $ 1 million. As of March 31, 2024 and 2023, the year-to-date gross cash proceeds received for receivables transferred and derecognized were $ 174 million and $ 99 million, respectively, of which $ 159 million and $ 122 million were collected, which includes collections from sales in prior years transferred to the buyer. The difference between receivables transferred and derecognized versus collected of $ 15 million and $ 22 million for the periods ended March 31, 2024 and 2023, respectively, represents the impact of a net increase and a net reduction in accounts receivable sales volume during each period, respectively. 2018 Foreign Accounts Receivable Securitization Facility In October 2023, Ashland terminated its 2018 Foreign Accounts Receivable Securitization Facility. The program had no outstanding borrowings at its termination. This program did not meet criteria for sale accounting and was reported as secured borrowing under ASC 860. At September 30, 2023 , the outstanding amount of accounts receivable transferred by Ashland to the purchaser was $ 124 million. Foreign Accounts Receivable Sales Program On October 19, 2023, Ashland entered, through an Ireland based, wholly-owned, bankruptcy-remote consolidated special purpose entity (the "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 ) primarily 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 accounts for receivables transferred to buyers as part of this agreement as sales. Through March 31, 2024 , Ashland has sold $ 122 million in receivables under this agreement. Accordingly, Ashland recognized $ 1 million and $ 2 million in losses within the net interest and other expense (income) caption of the Statements of Consolidated Income (Loss) for the three and six months ended March 31, 2024 , respectively. Ashland recorded $ 122 million in sales and gross proceeds received against the buyer's limit, which was $ 122 million at March 31, 2024 . Ashland transferred $ 168 million in receivables to the SPE as of March 31, 2024 . Ashland recorded less than $ 1 million in liabilities related to its service obligations and limited guarantee as of March 31, 2024. Available borrowing capacity and liquidity The borrowing capacity remaining under the 2022 Credit Agreement was $ 596 million, which reflects the full $ 600 million Revolving Credit Facility less a reduction of $ 4 million for letters of credit outstanding as of March 31, 2024. Ashland's total borrowing capacity at March 31, 2024 was $ 596 million. Ashland had zero of available liquidity under its current U.S. and Foreign Accounts Receivable Sales Programs as of March 31, 2024. 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 March 31, 2024, Ashland is in compliance with all debt agreement covenant restrictions. The maximum consolidated net leverage ratio permitted under Ashland's current credit agreement (the 2022 Credit Agreement) is 4.0 . At March 31, 2024 , Ashland’s calculation of the consolidated net leverage ratio was 2.1 . The minimum required consolidated interest coverage ratio under the 2022 Credit Agreement during its entire duration is 3.0 . At March 31, 2024 , Ashland’s calculation of the interest coverage ratio was 7.3 . |
Leasing Arrangements
Leasing Arrangements | 6 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leasing Arrangements | NOTE H – LEASING ARRANGEMENTS The components of lease cost recognized within the Statements of Consolidated Comprehensive Income (Loss) were as follows: Three months ended Six months ended March 31 March 31 (In millions) Location 2024 2023 2024 2023 Lease cost: Operating lease cost Selling, General & Administrative (a) $ 3 $ 3 $ 7 $ 6 Operating lease cost Cost of Sales 4 4 7 8 Variable lease cost Selling, General & Administrative 2 1 3 2 Variable lease cost Cost of Sales 1 1 2 2 Short-term leases Cost of Sales — 1 1 1 Total lease cost $ 10 $ 10 $ 20 $ 19 (a) Includes zero and $ 1 million charges for the impairment of an abandoned right of use office building asset for the three and six months ended March 31, 2024 , respectively. Right-of-use assets exchanged for new operating lease obligations were $ 2 million and $ 20 million for the three months ended March 31, 2024 and 2023 , respectively, and $ 3 million and $ 23 million for the six months ended March 31, 2024 and 2023 , respectively. During the second quarter of fiscal 2024, Ashland acquired a favorable lease asset for $ 10 million, which was recorded in the property, plant and equipment caption of the Condensed Consolidated Balance Sheets as of March 31, 2024. The following table provides cash paid for amounts included in the measurement of lease liabilities: Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Operating cash flows from operating leases $ 7 $ 6 $ 14 $ 13 Investing cash flows from finance leases 10 — 10 — |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE I – INCOME TAXES Current fiscal year Ashland’s effective tax rate in any interim period is subject to adjustments related to discrete items and the mix of domestic and foreign operating results. The overall effective tax rate was a benefit of 612 % and 610 % for the three and six months ended March 31, 2024. The current quarter's tax rate was impacted by jurisdictional income mix, as well as a net $ 102 million from favorable tax discrete items primarily related to changes in foreign tax activity. The current six month tax rate was impacted by jurisdictional income mix, as well as net $ 126 million from favorable tax discrete items primarily related to changes in foreign tax activity. Prior fiscal year The overall effective tax rate was a benefit of 1 % and 5 % for the three and six months ended March 31, 2023 . The quarter tax rate was impacted by jurisdictional income mix, as well as net $ 20 million from favorable tax discrete items primarily related to changes in uncertain tax positions. The six months tax rate was impacted by jurisdictional income mix, as well as net $ 23 million from favorable tax discrete items primarily related to changes in uncertain tax positions resulting primarily from a combination of state expirations and audit settlements. Unrecognized tax benefits Changes in unrecognized tax benefits are summarized as follows for the six months ended March 31, 2024. (In millions) Balance at October 1, 2023 $ 59 Increases related to positions taken in prior years 2 Decreases related to positions taken in prior years ( 1 ) Increases related to positions taken in current year 3 Lapse of statute of limitations ( 1 ) Balance at March 31, 2024 $ 62 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 $ 4 million and $ 5 million for continuing operations. For the remaining balance as of March 31, 2024 , 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. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | NOTE J - EMPLOYEE BENEFIT PLANS Plan contributions For the six months ended March 31, 2024 , Ashland contributed $ 6 million to its non-U.S. pension plans and $ 5 million to its U.S. pension plans. Ashland expects to make additional contributions of $ 1 million to its U.S. pension plans and $ 2 million to its non-U.S. pension plans during the remainder of fiscal 2024. Components of net periodic benefit costs (income) The following table details the components of pension and other postretirement benefit costs for continuing operations. Pension benefits Other postretirement (In millions) 2024 2023 2024 2023 Three months ended March 31 Service cost $ 1 $ 1 $ — $ — Interest cost 2 3 1 1 Expected return on plan assets ( 1 ) ( 2 ) — — Total net periodic benefit costs $ 2 $ 2 $ 1 $ 1 Six months ended March 31 Service cost $ 1 $ 2 $ — $ — Interest cost 7 6 1 1 Expected return on plan assets ( 4 ) ( 4 ) — — Total net periodic benefit costs $ 4 $ 4 $ 1 $ 1 For segment reporting purposes, service cost is proportionately allocated to each segment, excluding the Unallocated and other segment, and is recorded within the selling, general and administrative expense and cost of sales captions on the Statements of Consolidated Comprehensive Income (Loss). All other components are recorded within the other net periodic benefit loss caption on the Statements of Consolidated Comprehensive Income (Loss), which netted to expense of $ 2 million and $ 4 million for the three and six months ended March 31, 2024 , respectively, and expense of $ 2 million and $ 3 million for the three and six months ended March 31, 2023 , respectively. |
Litigation, Claims and Continge
Litigation, Claims and Contingencies | 6 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation, Claims and Contingencies | NOTE K – LITIGATION, CLAIMS AND CONTINGENCIES Asbestos litigation Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation (Riley) and the acquisition of Hercules in November 2008. Although Riley, a former subsidiary, was neither a producer nor a manufacturer of asbestos, its industrial boilers contained some asbestos-containing components provided by other companies. Hercules, an indirect wholly-owned subsidiary of Ashland, has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products sold by one of Hercules’ former subsidiaries to a limited industrial market. To assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs given various assumptions for Ashland and Hercules asbestos claims, Ashland 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. 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. Six months ended March 31 Years ended September 30 (In thousands) 2024 2023 2023 2022 2021 Open claims - beginning of year 42 44 44 46 49 New claims filed 1 1 2 2 2 Claims settled — — ( 1 ) ( 1 ) ( 1 ) Claims dismissed ( 1 ) ( 2 ) ( 3 ) ( 3 ) ( 4 ) Open claims - end of period 42 43 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 in fiscal 2023, it was determined that the liability for Ashland asbestos-related claims should be increased by $ 9 million. Total reserves for asbestos claims were $ 263 million at March 31, 2024 compared to $ 281 million at September 30, 2023. A progression of activity in the asbestos reserve is presented in the following table. Six months ended March 31 Years ended September 30 (In millions) 2024 2023 2023 2022 2021 Asbestos reserve - beginning of year $ 281 $ 305 $ 305 $ 320 $ 335 Reserve adjustment — — 9 16 12 Amounts paid ( 18 ) ( 20 ) ( 33 ) ( 31 ) ( 27 ) Asbestos reserve - end of period (a) $ 263 $ 285 $ 281 $ 305 $ 320 (a) Included $ 28 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023. 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 March 31, 2024 , Ashland’s receivable for recoveries of litigation defense and claim settlement costs from insurers amounted to $ 91 million (excluding the Hercules receivable for asbestos claims discussed below) compared to $ 95 million at September 30, 2023 . In fiscal 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. Six months ended March 31 Years ended September 30 (In millions) 2024 2023 2023 2022 2021 Insurance receivable - beginning of year $ 95 $ 101 $ 101 $ 100 $ 103 Receivable adjustment (a) — — 3 7 6 Amounts collected ( 4 ) ( 5 ) ( 9 ) ( 6 ) ( 9 ) Insurance receivable - end of period (b) $ 91 $ 96 $ 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 credit measurement standard. The total allowance for credit losses was $ 1 million as of March 31, 2024 and September 30, 2023. (b) Includes $ 11 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 . 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. Six months ended March 31 Years ended September 30 (In thousands) 2024 2023 2023 2022 2021 Open claims - beginning of year 12 11 11 12 12 New claims filed 1 1 1 1 1 Claims dismissed ( 1 ) — — ( 2 ) ( 1 ) Open claims - end of period 12 12 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. During the most recent update completed in fiscal 2023, it was determined that the liability for Hercules asbestos-related claims should be decreased by $ 2 million. Total reserves for asbestos claims were $ 180 million at March 31, 2024 compared to $ 191 million at September 30, 2023. A progression of activity in the asbestos reserve is presented in the following table. Six months ended March 31 Years ended September 30 (In millions) 2024 2023 2023 2022 2021 Asbestos reserve - beginning of year $ 191 $ 213 $ 213 $ 217 $ 229 Reserve adjustments — — ( 2 ) 15 8 Amounts paid ( 11 ) ( 8 ) ( 20 ) ( 19 ) ( 20 ) Asbestos reserve - end of period (a) $ 180 $ 205 $ 191 $ 213 $ 217 (a) Included $ 16 million and $ 17 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 , 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 March 31, 2024 , Ashland’s receivable for recoveries of litigation defense and claims costs from insurers with respect to Hercules amounted to $ 45 million compared to $ 47 million at September 30, 2023 . In fiscal 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 decrease of $ 3 million in the receivable for probable insurance recoveries. A progression of activity in the Hercules insurance receivable is presented in the following table. Six months ended March 31 Years ended September 30 (In millions) 2024 2023 2023 2022 2021 Insurance receivable - beginning of year $ 47 $ 52 $ 52 $ 47 $ 47 Receivable adjustment (a) — — ( 3 ) 7 1 Amounts collected ( 2 ) ( 1 ) ( 2 ) ( 2 ) ( 1 ) Insurance receivable - end of period (b) $ 45 $ 51 $ 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 credit measurement standard. The total allowance for credit losses was $ 1 million as of March 31, 2024 and September 30, 2023 . (b) Includes $ 4 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 . 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 $ 263 million) and approximately $ 288 million for the Hercules asbestos-related litigation (current reserve of $ 180 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 between 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 March 31, 2024 , such locations included 53 sites where Ashland has been identified as a potentially responsible party under Superfund or similar state laws, 107 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 $ 198 million at March 31, 2024 compared to $ 214 million at September 30, 2023 , of which $ 149 million at March 31, 2024 and $ 165 million at September 30, 2023 were classified in other noncurrent liabilities on the Condensed Consolidated Balance Sheets. The remaining reserves were classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets. The following table provides a reconciliation of the changes in the environmental remediation reserves during the six months ended March 31, 2024 and 2023. Six months ended March 31 (In millions) 2024 2023 Reserve - beginning of period $ 214 $ 211 Disbursements ( 23 ) ( 29 ) Revised obligation estimates and accretion 7 11 Reserve - end of period $ 198 $ 193 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 March 31, 2024 and September 30, 2023 , Ashland’s recorded receivables for these probable insurance recoveries were $ 15 million and $ 17 million, respectively, of which $ 12 million and $ 15 million at March 31, 2024 and September 30, 2023 were classified in other noncurrent assets on the Condensed Consolidated Balance Sheets. Components of environmental remediation expense included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) are presented in the following table for the three and six months ended March 31, 2024 and 2023. Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Environmental expense $ 3 $ 3 $ 7 $ 11 Legal expense — 1 2 2 Total expense 3 4 9 13 Insurance receivable — — ( 1 ) — Total expense, net of receivable activity (a) $ 3 $ 4 $ 8 $ 13 (a) Net expense of zero and $ 1 million for the three and six months ended March 31, 2024 , respectively, and zero and $ 1 million for the three and six months ended March 31, 2023 , respectively, relates to divested businesses which qualified for treatment as discontinued operations for which certain environmental liabilities were retained by Ashland. These amounts are classified within the loss from discontinued operations, net of income taxes 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 $ 450 million. The largest reserve for any site is 23 % of the remediation reserve as of March 31, 2024. 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 March 31, 2024. 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 March 31, 2024 . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE L – EARNINGS PER SHARE The following is the computation of basic and diluted earnings per share ("EPS") from continuing operations attributable to Ashland. Stock appreciation rights and warrants available to purchase shares outstanding for each reporting period whose exercise price was greater than the average market price of Ashland Common Stock for each applicable period were not included in the computation of income from continuing operations per diluted share because the effect of these instruments would be antidilutive . The total number of these shares outstanding was approximately 1 million at March 31, 2024 and 2023 , respectively. The majority of these shares are for warrants with a strike price of $ 128.66 . Earnings per share is reported under the treasury stock method. Three months ended Six months ended March 31 March 31 (In millions, except per share data) 2024 2023 2024 2023 Numerator Numerator for basic and diluted EPS - Income from continuing operations, net of tax $ 121 $ 92 $ 149 $ 134 Denominator Denominator for basic EPS - Weighted-average common shares outstanding 50 54 50 54 Share based awards convertible to common shares 1 1 1 1 Denominator for diluted EPS - Adjusted weighted-average shares and assumed conversions 51 55 51 55 EPS from continuing operations Basic $ 2.43 $ 1.71 $ 2.95 $ 2.47 Diluted 2.40 1.68 2.92 2.43 |
Equity Items
Equity Items | 6 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Equity Items | NOTE M – EQUITY ITEMS 2023 Stock repurchase program 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 terminated and replaced the 2022 Stock Repurchase Program, which had $ 200 million outstanding at the date of termination. As of March 31, 2024 , $ 900 million remained available for repurchase under this authorization. Stock repurchase program agreements During November 2023, under the 2023 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 December 2023, when Ashland paid a total of $ 100 million and received a delivery of 1.2 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. As of March 31, 2023, Ashland purchased a total of $ 52 million (of which $ 42 million was cash settled and $ 10 million was accrued within the accrued expenses and other liabilities caption for authorized and executed share repurchases pending settlement as of period end) and received a delivery of 0.5 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. Stockholder dividends Dividends of 38.5 cents per share were paid in the first and second quarters of fiscal 2024 and 33.5 cents per share were paid in the first and second quarters of fiscal 2023. Accumulated other comprehensive income (loss) Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented below, before tax and net of tax effects. 2024 2023 (In millions) Before Tax Net of Before Tax Net of Three months ended March 31 Other comprehensive income (loss) Unrealized translation gain (loss) $ ( 27 ) $ — $ ( 27 ) $ 27 $ — $ 27 Unrealized gain (loss) on commodity hedges 1 — 1 ( 4 ) 1 ( 3 ) Total other comprehensive income $ ( 26 ) $ — $ ( 26 ) $ 23 $ 1 $ 24 Six months ended March 31 Other comprehensive income (loss) Unrealized translation gain (loss) $ 27 $ — $ 27 $ 110 $ ( 1 ) $ 109 Unrealized gain (loss) on commodity hedges — — — ( 9 ) 2 ( 7 ) Total other comprehensive income (loss) $ 27 $ — $ 27 $ 101 $ 1 $ 102 Summary of stockholders’ equity A reconciliation of changes in stockholders’ equity are as follows: Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Common stock and paid in capital Balance, beginning of period $ 1 $ 134 $ 5 $ 136 Common shares issued under stock incentive and other plans (a) 5 4 3 2 Common shares purchased under repurchase program (b)(c) — ( 138 ) ( 2 ) ( 138 ) Balance, end of period 6 — 6 — Retained earnings Balance, beginning of period 3,502 3,675 3,595 3,653 Net income 120 91 147 132 Regular dividends ( 19 ) ( 18 ) ( 39 ) ( 36 ) Common shares purchased under repurchase program (b)(c) — ( 15 ) ( 99 ) ( 15 ) Other 1 1 — — Balance, end of period 3,604 3,734 3,604 3,734 Accumulated other comprehensive income (loss) Balance, beginning of period ( 450 ) ( 491 ) ( 503 ) ( 569 ) Unrealized translation gain (loss) ( 27 ) 27 27 109 Unrealized gain (loss) on commodity hedges 1 ( 3 ) — ( 7 ) Balance, end of period ( 476 ) ( 467 ) ( 476 ) ( 467 ) Total stockholders' equity $ 3,134 $ 3,267 $ 3,134 $ 3,267 Cash dividends declared per common share $ 0.385 $ 0.335 $ 0.770 $ 0.670 (a) Common shares issued were 32,458 and 16,935 for the three months ended March 31, 2024 and 2023 , respectively, and 110,807 and 144,514 for the six months ended March 31, 2024 and 2023 , respectively. Includes $ 1 million for the three months ended March 31, 2024 and 2023 , respectively, and $ 4 million and $ 10 million for the six months ended March 31, 2024 and 2023 , respectively, associated with stock-based compensation employee withholding taxes. (b) Common shares repurchased were zero and 1,238,212 for the three and six months ended March 31, 2024 , and 1,488,251 for the three and six months ended March 31, 2023 . (c) Includes zero and $ 1 million in excise tax on stock repurchases for the three and six months ended March 31, 2024 , respectively, and $ 1 million for both the three and six months ended March 31, 2023 . |
Stock Incentive Plans
Stock Incentive Plans | 6 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Incentive Plans | NOTE N – STOCK INCENTIVE PLANS The components of Ashland’s pre-tax stock-based compensation expense included in continuing operations are as follows: Three months ended Six months ended March 31 March 31 (In millions) 2024 (a) 2023 (b) 2024 (a) 2023 (b) Nonvested stock awards $ 3 $ 4 $ 7 $ 7 Performance share awards 4 2 1 7 $ 7 $ 6 $ 8 $ 14 (a) Included zero and $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three and six months ended March 31, 2024 , respectively, and $ 1 million of expense and zero related to cash-settled performance units during the three and six months ended March 31, 2024 , respectively. (b) Included $ 1 million and $ 2 million of expense related to cash-settled nonvested restricted stock awards during the three and six months ended March 31, 2023 . |
Revenue
Revenue | 6 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE O – REVENUE Disaggregation of revenue Ashland disaggregates its revenue by segment and geographical region as Ashland believes these categories best depict how management reviews the financial performance of its operations. 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. See Note P for additional information. Sales by geography Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Life Sciences North America $ 73 $ 61 $ 140 $ 109 Europe 72 87 136 160 Asia Pacific 57 62 107 122 Latin America & other 20 30 39 56 $ 222 $ 240 $ 422 $ 447 Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Personal Care North America $ 45 $ 48 $ 85 $ 90 Europe 69 69 116 120 Asia Pacific 31 28 57 56 Latin America & other 24 22 40 39 $ 169 $ 167 $ 298 $ 305 Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Specialty Additives North America $ 46 $ 52 $ 88 $ 105 Europe 63 61 103 109 Asia Pacific 40 39 74 74 Latin America & other 8 9 14 16 $ 157 $ 161 $ 279 $ 304 Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Intermediates North America $ 27 $ 36 $ 52 $ 70 Europe 6 7 10 16 Asia Pacific 6 6 9 14 Latin America & other 1 2 2 5 $ 40 $ 51 $ 73 $ 105 For the six months ending March 31, 2024, 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 polyvinylpyrrolidones (PVP) representing 23 % of total consolidated sales. Trade receivables Trade receivables are defined as receivables arising from contracts with customers and are recorded within the accounts receivable caption within the Condensed Consolidated Balance Sheets. Ashland’s trade receivables were $ 225 million and $ 288 million as of March 31, 2024 and September 30, 2023 , respectively. See Note G for additional information on Ashland’s programs to sell certain receivables on a revolving basis to third party banks up to an aggregate purchase limit (U.S and Foreign Accounts Receivable Sales Programs). |
Reportable Segment Information
Reportable Segment Information | 6 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | NOTE P – 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. 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. BDO 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. Reportable segment results Results of Ashland’s reportable segments are presented based on its management and internal accounting structure. The structure is specific to Ashland; therefore, the financial results of Ashland’s reportable segments are not necessarily comparable with similar information for other comparable companies. Ashland allocates all significant costs to its reportable segments except for certain significant company-wide restructuring activities, 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 caption on the Statements of Consolidated Comprehensive Income (Loss). Ashland refines its expense allocation methodologies to the reportable segments from time to time as internal accounting practices are improved, more refined information becomes available and the industry or market changes. Significant revisions to Ashland’s methodologies are adjusted for all segments on a retrospective basis. The following table presents various financial information for each reportable segment for the three and six months ended March 31, 2024 and 2023. Three months ended Six months ended March 31 March 31 (In millions - unaudited) 2024 2023 2024 2023 SALES Life Sciences $ 222 $ 240 $ 422 $ 447 Personal Care 169 167 298 305 Specialty Additives 157 161 279 304 Intermediates 40 51 73 105 Intersegment sales (a) ( 13 ) ( 16 ) ( 24 ) ( 33 ) $ 575 $ 603 $ 1,048 $ 1,128 OPERATING INCOME (LOSS) Life Sciences $ 50 $ 58 $ 82 $ 92 Personal Care 25 14 28 25 Specialty Additives ( 18 ) 15 ( 50 ) 16 Intermediates 9 17 16 37 Unallocated and other ( 45 ) ( 21 ) ( 72 ) ( 50 ) $ 21 $ 83 $ 4 $ 120 DEPRECIATION EXPENSE Life Sciences $ 11 $ 10 $ 20 $ 20 Personal Care 9 10 17 20 Specialty Additives (b) 40 14 77 28 Intermediates 3 3 6 6 $ 63 $ 37 $ 120 $ 74 AMORTIZATION EXPENSE Life Sciences $ 5 $ 7 $ 12 $ 14 Personal Care 11 11 22 22 Specialty Additives 4 5 6 9 Intermediates — — — 1 $ 20 $ 23 $ 40 $ 46 EBITDA (c) Life Sciences $ 66 $ 75 $ 114 $ 126 Personal Care 45 35 67 67 Specialty Additives 26 34 33 53 Intermediates 12 20 22 44 Unallocated and other ( 45 ) ( 21 ) ( 72 ) ( 50 ) $ 104 $ 143 $ 164 $ 240 March 31 September 30 (In millions - unaudited) 2024 2023 TOTAL ASSETS Life Sciences $ 1,915 $ 1,904 Personal Care 982 1,004 Specialty Additives 1,526 1,580 Intermediates 135 136 Unallocated and other 1,390 1,315 $ 5,948 $ 5,939 (a) Intersegment sales from Intermediates are accounted for at prices that approximate fair value. All other intersegment sales are accounted for at cost. (b) Depreciation includes accelerated depreciation of $ 27 million and $ 49 million for Specialty Additives for the three and six months ended March 31, 2024 , respectively. (c) Excludes loss from discontinued operations and other net periodic benefit loss. See the Statements of Consolidated Comprehensive Income (Loss) for applicable amounts excluded. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting ("U.S. GAAP") and Securities and Exchange Commission ("SEC") regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. These statements omit certain information and footnote disclosures required for complete annual financial statements and, therefore, should be read in conjunction with the Ashland Inc. and consolidated subsidiaries ("Ashland" or the "Company") Annual Report on Form 10-K for the fiscal year ended September 30, 2023. Results of operations for the period ended March 31, 2024 are not necessarily indicative of the expected results for the remainder of the fiscal year. 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. For additional information about Ashland's reportable segments, see Note P. |
Use of Estimates, Risks and Uncertainties | Use of estimates, risks and uncertainties The preparation of Ashland’s Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. Significant items that are subject to such estimates and assumptions include, but are not limited to, 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. |
New Accounting Pronouncements | New accounting pronouncements A description of new U.S. GAAP accounting standards issued or adopted during the current year is required in interim financial reporting. A detailed listing of new accounting standards relevant to Ashland is included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2023 . There were no new standards that were either issued or adopted in the current fiscal year that will have a material impact on Ashland's Condensed Consolidated Financial Statements. |
Fair Value of Financial Instruments Policy | 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. |
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. |
Goodwill and Intangible Assets, Goodwill | 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. N o indicators of impairment were identified in the three and six months ended March 31, 2024 . |
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 annually reviews, as of July 1, indefinite-lived intangible assets for possible impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No indicators of impairment were identified in the three and six months ended March 31, 2024 . |
Commitments and Contingencies Policy | Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation (Riley) and the acquisition of Hercules in November 2008. Although Riley, a former subsidiary, was neither a producer nor a manufacturer of asbestos, its industrial boilers contained some asbestos-containing components provided by other companies. Hercules, an indirect wholly-owned subsidiary of Ashland, has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products sold by one of Hercules’ former subsidiaries to a limited industrial market. To assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs given various assumptions for Ashland and Hercules asbestos claims, Ashland 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 Cost Policy | The total reserves for environmental remediation reflect Ashland’s estimates of the most likely costs that will be incurred over an extended period to remediate identified conditions for which the costs are reasonably estimable, without regard to any third-party recoveries. Engineering studies, 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 March 31, 2024 and September 30, 2023 , Ashland’s recorded receivables for these probable insurance recoveries were $ 15 million and $ 17 million, respectively, of which $ 12 million and $ 15 million at March 31, 2024 and September 30, 2023 were classified in other noncurrent assets on the Condensed Consolidated Balance Sheets. |
Earnings Per Share | . The total number of these shares outstanding was approximately 1 million at March 31, 2024 and 2023 , respectively. The majority of these shares are for warrants with a strike price of $ 128.66 . Earnings per share is reported under the treasury stock method. |
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. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Components of Amounts in the Statements of Consolidated Income (Loss) Related To Discontinued Operations | Components of amounts reflected in the Statements of Consolidated Comprehensive Income (Loss) related to discontinued operations are presented in the following table for the three and six months ended March 31, 2024 and 2023. Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Income (loss) from discontinued operations, net of income taxes Performance Adhesives $ — $ — $ ( 3 ) $ — Composites/Marl facility ( 2 ) ( 1 ) ( 1 ) ( 1 ) Distribution ( 1 ) — — ( 1 ) Valvoline 2 — 2 — $ ( 1 ) $ ( 1 ) $ ( 2 ) $ ( 2 ) |
Restructuring Activities (Table
Restructuring Activities (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Summary of Amount of Restructuring Reserves Related to Program | The following table details at March 31, 2024 the amount of restructuring severance reserves related to this program. (In millions) Severance reserves Balance at of September 30, 2023 $ 3 Severance expense 21 Utilization (cash paid) ( 4 ) Balance at March 31, 2024 $ 20 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024. Carrying Total Quoted prices Significant Significant (In millions) value value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 439 $ 439 $ 439 $ — $ — Restricted investments (a)(b) 383 383 383 — — Investment of captive insurance company (c) 8 8 8 — — Total assets at fair value $ 830 $ 830 $ 830 $ — $ — Liabilities Foreign currency derivatives (d) $ 1 $ 1 $ — $ 1 $ — Commodity derivatives (d ) 4 4 — 4 — Total liabilities at fair value $ 5 $ 5 $ — $ 5 $ — (a) Includes $ 306 million within restricted investments and $ 77 million within other current assets in the Condensed Consolidated Balance Sheets . (b) Includes $ 255 million related to the Asbestos trust and $ 128 million related to the Environmental trust . (c) Included in other noncurrent assets in the Condensed Consolidated Balance Sheets . (d) Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets. The following table summarizes financial asset instruments subject to recurring fair value measurements as of September 30, 2023. Carrying Total Quoted prices Significant Significant (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 — — Investment 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) Includes $ 290 million within restricted investments and $ 77 million within other current assets in the Condensed Consolidated Balance Sheets . (b) Includes $ 243 million related to the Asbestos trust and $ 124 million related to the Environmental trust . (c) Included in other noncurrent assets in the Condensed Consolidated Balance Sheets . (d) Included in accounts receivable in the Condensed Consolidated Balance Sheets . (e) Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets. |
Summary of Restricted Investment Portfolio | The following table presents gross unrealized gains and losses for the restricted securities as of March 31, 2024 and September 30, 2023: Gross Gross (In millions) Adjusted Cost Unrealized Gain Unrealized Loss Fair Value As of March 31, 2024 Demand deposit $ 9 $ — $ — $ 9 Equity mutual fund 141 46 — 187 Fixed income mutual fund 223 — ( 36 ) 187 Fair value $ 373 $ 46 $ ( 36 ) $ 383 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 |
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 for the three and six months ended March 31, 2024 and 2023. Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Investment income (a) $ 3 $ 3 $ 9 $ 6 Net gains (a) 9 19 39 41 Funds restricted for specific transactions — — 5 5 Disbursements ( 21 ) ( 16 ) ( 37 ) ( 16 ) (a) Included in the net interest and other expense (income) 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 the three and six months ended March 31, 2024 and 2023 within the Statements of Consolidated Comprehensive Income (Loss). Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Foreign currency derivative gains (losses) $ ( 2 ) $ 1 $ 1 $ 9 |
Summary of Fair Values of Outstanding Foreign Currency Derivatives | The following table summarizes the fair values of the outstanding foreign currency derivatives as of March 31, 2024 and September 30, 2023 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets. March 31 September 30 (In millions) 2024 2023 Foreign currency derivative assets $ — $ 1 Notional contract values 40 147 Foreign currency derivative liabilities $ 1 $ 1 Notional contract values 198 103 |
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 net gai ns and losses recognized during the three and six months ended March 31, 2024 and 2023 within the cost of sales caption of the Statements of Consolidated Comprehensive Income (Loss). Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Commodity derivative losses $ ( 2 ) $ ( 1 ) $ ( 3 ) $ — |
Summary of Fair Values of Outstanding Derivatives | The following table summarizes the fair values of the outstanding commodity derivatives as of March 31, 2024, and September 30, 2023 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets. March 31 September 30 (In millions) 2024 2023 Commodity derivative assets $ — $ — Notional contract values 1 2 Commodity derivative liabilities $ 4 $ 4 Notional contract values 14 16 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following table summarizes Ashland’s inventories as of the reported Condensed Consolidated Balance Sheets dates. March 31 September 30 (In millions) 2024 2023 Finished products $ 352 $ 390 Raw materials, supplies and work in process 198 236 $ 550 $ 626 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill by Reportable Segment | The following is a progression of goodwill by reportable segment for the six months ended March 31, 2024. Life Personal Specialty (In millions) Sciences Care (a) Additives (a) Intermediates (a) Total Balance at September 30, 2023 $ 819 $ 122 $ 421 $ — $ 1,362 Currency translation 11 1 5 — 17 Balance at March 31, 2024 $ 830 $ 123 $ 426 $ — $ 1,379 (a) As of March 31, 2024 and September 30, 2023 , there were accumulated impairments of $ 356 million, $ 174 million and $ 90 million related to the Personal Care, Specialty Additives and Intermediates reportable segments, respectively. |
Summary of Intangible Assets | Other intangible assets were comprised of the following as of March 31, 2024 and September 30, 2023. March 31, 2024 September 30, 2023 Gross Net Gross Net carrying Accumulated carrying carrying Accumulated carrying (In millions) amount amortization amount amount amortization amount Definite-lived intangibles Trademarks and trade names $ 98 $ ( 45 ) $ 53 $ 97 $ ( 43 ) $ 54 Intellectual property 736 ( 602 ) 134 731 ( 581 ) 150 Customer and supplier relationships 827 ( 441 ) 386 821 ( 417 ) 404 Total definite-lived intangibles 1,661 ( 1,088 ) 573 1,649 ( 1,041 ) 608 Indefinite-lived intangibles Trademarks and trade names 278 — 278 278 — 278 Total intangible assets $ 1,939 $ ( 1,088 ) $ 851 $ 1,927 $ ( 1,041 ) $ 886 |
Debt and Other Financing Acti_2
Debt and Other Financing Activities (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Current and Long-term Debt | The following table summarizes Ashland’s current and long-term debt as of the dates reported in the Condensed Consolidated Balance Sheets. (In millions) March 31, 2024 September 30, 2023 3.375 % Senior Notes, due 2031 $ 450 $ 450 2.00 % Senior Notes, due 2028 (Euro 500 million principal) 540 528 6.875 % Notes, due 2043 282 282 6.50 % Junior Subordinated Notes, due 2029 65 64 Other (a) ( 9 ) 6 Total debt 1,328 1,330 Short-term debt — 16 Long-term debt (less debt issuance costs) $ 1,328 $ 1,314 (a) Other includes $ 12 million and $ 13 million of debt issuance costs as of March 31, 2024 and September 30, 2023 , respectively. The current portion of the long-term debt was zero for both March 31, 2024 and September 30, 2023. |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Components of Lease Cost Recognized | The components of lease cost recognized within the Statements of Consolidated Comprehensive Income (Loss) were as follows: Three months ended Six months ended March 31 March 31 (In millions) Location 2024 2023 2024 2023 Lease cost: Operating lease cost Selling, General & Administrative (a) $ 3 $ 3 $ 7 $ 6 Operating lease cost Cost of Sales 4 4 7 8 Variable lease cost Selling, General & Administrative 2 1 3 2 Variable lease cost Cost of Sales 1 1 2 2 Short-term leases Cost of Sales — 1 1 1 Total lease cost $ 10 $ 10 $ 20 $ 19 (a) Includes zero and $ 1 million charges for the impairment of an abandoned right of use office building asset for the three and six months ended March 31, 2024 , respectively. |
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 lease liabilities: Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Operating cash flows from operating leases $ 7 $ 6 $ 14 $ 13 Investing cash flows from finance leases 10 — 10 — |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Summary of Changes in Unrecognized Tax Benefits | Changes in unrecognized tax benefits are summarized as follows for the six months ended March 31, 2024. (In millions) Balance at October 1, 2023 $ 59 Increases related to positions taken in prior years 2 Decreases related to positions taken in prior years ( 1 ) Increases related to positions taken in current year 3 Lapse of statute of limitations ( 1 ) Balance at March 31, 2024 $ 62 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Pension and Other Postretirement Benefit Costs for Continuing Operation | The following table details the components of pension and other postretirement benefit costs for continuing operations. Pension benefits Other postretirement (In millions) 2024 2023 2024 2023 Three months ended March 31 Service cost $ 1 $ 1 $ — $ — Interest cost 2 3 1 1 Expected return on plan assets ( 1 ) ( 2 ) — — Total net periodic benefit costs $ 2 $ 2 $ 1 $ 1 Six months ended March 31 Service cost $ 1 $ 2 $ — $ — Interest cost 7 6 1 1 Expected return on plan assets ( 4 ) ( 4 ) — — Total net periodic benefit costs $ 4 $ 4 $ 1 $ 1 |
Litigation, Claims and Contin_2
Litigation, Claims and Contingencies (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Loss Contingencies [Line Items] | |
Reconciliation of Changes in Environmental Contingencies and Asset Retirement Obligations Reserve | The following table provides a reconciliation of the changes in the environmental remediation reserves during the six months ended March 31, 2024 and 2023. Six months ended March 31 (In millions) 2024 2023 Reserve - beginning of period $ 214 $ 211 Disbursements ( 23 ) ( 29 ) Revised obligation estimates and accretion 7 11 Reserve - end of period $ 198 $ 193 |
Components of Environmental Remediation Expense | Components of environmental remediation expense included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) are presented in the following table for the three and six months ended March 31, 2024 and 2023. Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Environmental expense $ 3 $ 3 $ 7 $ 11 Legal expense — 1 2 2 Total expense 3 4 9 13 Insurance receivable — — ( 1 ) — Total expense, net of receivable activity (a) $ 3 $ 4 $ 8 $ 13 (a) Net expense of zero and $ 1 million for the three and six months ended March 31, 2024 , respectively, and zero and $ 1 million for the three and six months ended March 31, 2023 , respectively, relates to divested businesses which qualified for treatment as discontinued operations for which certain environmental liabilities were retained by Ashland. These amounts are classified within the loss from discontinued operations, net of income taxes 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. Six months ended March 31 Years ended September 30 (In thousands) 2024 2023 2023 2022 2021 Open claims - beginning of year 42 44 44 46 49 New claims filed 1 1 2 2 2 Claims settled — — ( 1 ) ( 1 ) ( 1 ) Claims dismissed ( 1 ) ( 2 ) ( 3 ) ( 3 ) ( 4 ) Open claims - end of period 42 43 42 44 46 |
Progression of Activity in Asbestos Reserve Accounts | A progression of activity in the asbestos reserve is presented in the following table. Six months ended March 31 Years ended September 30 (In millions) 2024 2023 2023 2022 2021 Asbestos reserve - beginning of year $ 281 $ 305 $ 305 $ 320 $ 335 Reserve adjustment — — 9 16 12 Amounts paid ( 18 ) ( 20 ) ( 33 ) ( 31 ) ( 27 ) Asbestos reserve - end of period (a) $ 263 $ 285 $ 281 $ 305 $ 320 (a) Included $ 28 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023. |
Progression of Insurance Receivable | A progression of activity in the Ashland insurance receivable is presented in the following table. Six months ended March 31 Years ended September 30 (In millions) 2024 2023 2023 2022 2021 Insurance receivable - beginning of year $ 95 $ 101 $ 101 $ 100 $ 103 Receivable adjustment (a) — — 3 7 6 Amounts collected ( 4 ) ( 5 ) ( 9 ) ( 6 ) ( 9 ) Insurance receivable - end of period (b) $ 91 $ 96 $ 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 credit measurement standard. The total allowance for credit losses was $ 1 million as of March 31, 2024 and September 30, 2023. (b) Includes $ 11 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 . |
Hercules [Member] | |
Loss Contingencies [Line Items] | |
Summary of Asbestos Claims Activity | A summary of Hercules’ asbestos claims activity follows. Six months ended March 31 Years ended September 30 (In thousands) 2024 2023 2023 2022 2021 Open claims - beginning of year 12 11 11 12 12 New claims filed 1 1 1 1 1 Claims dismissed ( 1 ) — — ( 2 ) ( 1 ) Open claims - end of period 12 12 12 11 12 |
Progression of Activity in Asbestos Reserve Accounts | A progression of activity in the asbestos reserve is presented in the following table. Six months ended March 31 Years ended September 30 (In millions) 2024 2023 2023 2022 2021 Asbestos reserve - beginning of year $ 191 $ 213 $ 213 $ 217 $ 229 Reserve adjustments — — ( 2 ) 15 8 Amounts paid ( 11 ) ( 8 ) ( 20 ) ( 19 ) ( 20 ) Asbestos reserve - end of period (a) $ 180 $ 205 $ 191 $ 213 $ 217 (a) Included $ 16 million and $ 17 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 , respectively. |
Progression of Insurance Receivable | A progression of activity in the Hercules insurance receivable is presented in the following table. Six months ended March 31 Years ended September 30 (In millions) 2024 2023 2023 2022 2021 Insurance receivable - beginning of year $ 47 $ 52 $ 52 $ 47 $ 47 Receivable adjustment (a) — — ( 3 ) 7 1 Amounts collected ( 2 ) ( 1 ) ( 2 ) ( 2 ) ( 1 ) Insurance receivable - end of period (b) $ 45 $ 51 $ 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 credit measurement standard. The total allowance for credit losses was $ 1 million as of March 31, 2024 and September 30, 2023 . (b) Includes $ 4 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following is the computation of basic and diluted earnings per share ("EPS") from continuing operations attributable to Ashland. Stock appreciation rights and warrants available to purchase shares outstanding for each reporting period whose exercise price was greater than the average market price of Ashland Common Stock for each applicable period were not included in the computation of income from continuing operations per diluted share because the effect of these instruments would be antidilutive . The total number of these shares outstanding was approximately 1 million at March 31, 2024 and 2023 , respectively. The majority of these shares are for warrants with a strike price of $ 128.66 . Earnings per share is reported under the treasury stock method. Three months ended Six months ended March 31 March 31 (In millions, except per share data) 2024 2023 2024 2023 Numerator Numerator for basic and diluted EPS - Income from continuing operations, net of tax $ 121 $ 92 $ 149 $ 134 Denominator Denominator for basic EPS - Weighted-average common shares outstanding 50 54 50 54 Share based awards convertible to common shares 1 1 1 1 Denominator for diluted EPS - Adjusted weighted-average shares and assumed conversions 51 55 51 55 EPS from continuing operations Basic $ 2.43 $ 1.71 $ 2.95 $ 2.47 Diluted 2.40 1.68 2.92 2.43 |
Equity Items (Tables)
Equity Items (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented below, before tax and net of tax effects. 2024 2023 (In millions) Before Tax Net of Before Tax Net of Three months ended March 31 Other comprehensive income (loss) Unrealized translation gain (loss) $ ( 27 ) $ — $ ( 27 ) $ 27 $ — $ 27 Unrealized gain (loss) on commodity hedges 1 — 1 ( 4 ) 1 ( 3 ) Total other comprehensive income $ ( 26 ) $ — $ ( 26 ) $ 23 $ 1 $ 24 Six months ended March 31 Other comprehensive income (loss) Unrealized translation gain (loss) $ 27 $ — $ 27 $ 110 $ ( 1 ) $ 109 Unrealized gain (loss) on commodity hedges — — — ( 9 ) 2 ( 7 ) Total other comprehensive income (loss) $ 27 $ — $ 27 $ 101 $ 1 $ 102 |
Summary of Reconciliation of Changes in Stockholders' Equity | A reconciliation of changes in stockholders’ equity are as follows: Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Common stock and paid in capital Balance, beginning of period $ 1 $ 134 $ 5 $ 136 Common shares issued under stock incentive and other plans (a) 5 4 3 2 Common shares purchased under repurchase program (b)(c) — ( 138 ) ( 2 ) ( 138 ) Balance, end of period 6 — 6 — Retained earnings Balance, beginning of period 3,502 3,675 3,595 3,653 Net income 120 91 147 132 Regular dividends ( 19 ) ( 18 ) ( 39 ) ( 36 ) Common shares purchased under repurchase program (b)(c) — ( 15 ) ( 99 ) ( 15 ) Other 1 1 — — Balance, end of period 3,604 3,734 3,604 3,734 Accumulated other comprehensive income (loss) Balance, beginning of period ( 450 ) ( 491 ) ( 503 ) ( 569 ) Unrealized translation gain (loss) ( 27 ) 27 27 109 Unrealized gain (loss) on commodity hedges 1 ( 3 ) — ( 7 ) Balance, end of period ( 476 ) ( 467 ) ( 476 ) ( 467 ) Total stockholders' equity $ 3,134 $ 3,267 $ 3,134 $ 3,267 Cash dividends declared per common share $ 0.385 $ 0.335 $ 0.770 $ 0.670 (a) Common shares issued were 32,458 and 16,935 for the three months ended March 31, 2024 and 2023 , respectively, and 110,807 and 144,514 for the six months ended March 31, 2024 and 2023 , respectively. Includes $ 1 million for the three months ended March 31, 2024 and 2023 , respectively, and $ 4 million and $ 10 million for the six months ended March 31, 2024 and 2023 , respectively, associated with stock-based compensation employee withholding taxes. (b) Common shares repurchased were zero and 1,238,212 for the three and six months ended March 31, 2024 , and 1,488,251 for the three and six months ended March 31, 2023 . (c) Includes zero and $ 1 million in excise tax on stock repurchases for the three and six months ended March 31, 2024 , respectively, and $ 1 million for both the three and six months ended March 31, 2023 . |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Components of Pretax Stock-Based Compensation Expense Included in Continuing Operations | The components of Ashland’s pre-tax stock-based compensation expense included in continuing operations are as follows: Three months ended Six months ended March 31 March 31 (In millions) 2024 (a) 2023 (b) 2024 (a) 2023 (b) Nonvested stock awards $ 3 $ 4 $ 7 $ 7 Performance share awards 4 2 1 7 $ 7 $ 6 $ 8 $ 14 (a) Included zero and $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three and six months ended March 31, 2024 , respectively, and $ 1 million of expense and zero related to cash-settled performance units during the three and six months ended March 31, 2024 , respectively. (b) Included $ 1 million and $ 2 million of expense related to cash-settled nonvested restricted stock awards during the three and six months ended March 31, 2023 . |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Sales by geography Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Life Sciences North America $ 73 $ 61 $ 140 $ 109 Europe 72 87 136 160 Asia Pacific 57 62 107 122 Latin America & other 20 30 39 56 $ 222 $ 240 $ 422 $ 447 Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Personal Care North America $ 45 $ 48 $ 85 $ 90 Europe 69 69 116 120 Asia Pacific 31 28 57 56 Latin America & other 24 22 40 39 $ 169 $ 167 $ 298 $ 305 Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Specialty Additives North America $ 46 $ 52 $ 88 $ 105 Europe 63 61 103 109 Asia Pacific 40 39 74 74 Latin America & other 8 9 14 16 $ 157 $ 161 $ 279 $ 304 Three months ended Six months ended March 31 March 31 (In millions) 2024 2023 2024 2023 Intermediates North America $ 27 $ 36 $ 52 $ 70 Europe 6 7 10 16 Asia Pacific 6 6 9 14 Latin America & other 1 2 2 5 $ 40 $ 51 $ 73 $ 105 For the six months ending March 31, 2024, 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 polyvinylpyrrolidones (PVP) representing 23 % of total consolidated sales. Trade receivables Trade receivables are defined as receivables arising from contracts with customers and are recorded within the accounts receivable caption within the Condensed Consolidated Balance Sheets. Ashland’s trade receivables were $ 225 million and $ 288 million as of March 31, 2024 and September 30, 2023 , respectively. See Note G for additional information on Ashland’s programs to sell certain receivables on a revolving basis to third party banks up to an aggregate purchase limit (U.S and Foreign Accounts Receivable Sales Programs). |
Reportable Segment Information
Reportable Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Summary of Financial Information for Each Reportable Segment | The following table presents various financial information for each reportable segment for the three and six months ended March 31, 2024 and 2023. Three months ended Six months ended March 31 March 31 (In millions - unaudited) 2024 2023 2024 2023 SALES Life Sciences $ 222 $ 240 $ 422 $ 447 Personal Care 169 167 298 305 Specialty Additives 157 161 279 304 Intermediates 40 51 73 105 Intersegment sales (a) ( 13 ) ( 16 ) ( 24 ) ( 33 ) $ 575 $ 603 $ 1,048 $ 1,128 OPERATING INCOME (LOSS) Life Sciences $ 50 $ 58 $ 82 $ 92 Personal Care 25 14 28 25 Specialty Additives ( 18 ) 15 ( 50 ) 16 Intermediates 9 17 16 37 Unallocated and other ( 45 ) ( 21 ) ( 72 ) ( 50 ) $ 21 $ 83 $ 4 $ 120 DEPRECIATION EXPENSE Life Sciences $ 11 $ 10 $ 20 $ 20 Personal Care 9 10 17 20 Specialty Additives (b) 40 14 77 28 Intermediates 3 3 6 6 $ 63 $ 37 $ 120 $ 74 AMORTIZATION EXPENSE Life Sciences $ 5 $ 7 $ 12 $ 14 Personal Care 11 11 22 22 Specialty Additives 4 5 6 9 Intermediates — — — 1 $ 20 $ 23 $ 40 $ 46 EBITDA (c) Life Sciences $ 66 $ 75 $ 114 $ 126 Personal Care 45 35 67 67 Specialty Additives 26 34 33 53 Intermediates 12 20 22 44 Unallocated and other ( 45 ) ( 21 ) ( 72 ) ( 50 ) $ 104 $ 143 $ 164 $ 240 March 31 September 30 (In millions - unaudited) 2024 2023 TOTAL ASSETS Life Sciences $ 1,915 $ 1,904 Personal Care 982 1,004 Specialty Additives 1,526 1,580 Intermediates 135 136 Unallocated and other 1,390 1,315 $ 5,948 $ 5,939 (a) Intersegment sales from Intermediates are accounted for at prices that approximate fair value. All other intersegment sales are accounted for at cost. (b) Depreciation includes accelerated depreciation of $ 27 million and $ 49 million for Specialty Additives for the three and six months ended March 31, 2024 , respectively. (c) Excludes loss from discontinued operations and other net periodic benefit loss. See the Statements of Consolidated Comprehensive Income (Loss) for applicable amounts excluded. |
Discontinued Operations - Compo
Discontinued Operations - Components of Consolidated Comprehensive Income (Loss) Related to Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations (net of tax) | $ (1) | $ (1) | $ (2) | $ (2) |
Performance Adhesives [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations (net of tax) | 0 | 0 | (3) | 0 |
Composites/Marl facility [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations (net of tax) | (2) | (1) | (1) | (1) |
Distribution [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations (net of tax) | (1) | 0 | 0 | (1) |
Valvoline [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income (loss) from discontinued operations (net of tax) | $ 2 | $ 0 | $ 2 | $ 0 |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | |
Restructuring Cost And Reserve [Line Items] | ||||||
Accelerated depreciation | $ 27 | $ 49 | ||||
Fiscal 2024 and 2023 Restructuring Severance Costs [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Severance income (expenses) | 21 | |||||
Severance Liability | 20 | 20 | $ 3 | |||
Accelerated depreciation | 27 | 49 | ||||
Fiscal 2024 and 2023 Restructuring Severance Costs [Member] | Accrued Expenses and Other Liabilities [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Severance Liability | 20 | 20 | ||||
Fiscal 2024 and 2023 Restructuring Severance Costs [Member] | Selling, General and Administrative Expenses [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Severance income (expenses) | 18 | $ 0 | 21 | $ 0 | ||
Fiscal 2023 Life Sciences Restructuring Program [Member] | Accrued Expenses and Other Liabilities [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Severance Liability | $ 0 | $ 0 | ||||
Fiscal 2023 Life Sciences Restructuring Program [Member] | Selling, General and Administrative Expenses [Member] | ||||||
Restructuring Cost And Reserve [Line Items] | ||||||
Severance income (expenses) | $ 1 |
Restructuring Activities - Summ
Restructuring Activities - Summary of Severance Reserves and Facility Cost Reserves (Details) - Fiscal 2024 and 2023 Restructuring Severance Costs [Member] $ in Millions | 6 Months Ended |
Mar. 31, 2024 USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Beginning balance | $ 3 |
Severance expense | 21 |
Utilization (cash paid) | (4) |
Ending balance | $ 20 |
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 | Mar. 31, 2024 | Sep. 30, 2023 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||||
Assets | |||||
Cash and cash equivalents | $ 439 | $ 417 | |||
Restricted investments | 383 | [1],[2] | 367 | [3],[4] | |
Investment of captive insurance company | 8 | [5] | 6 | [6] | |
Foreign currency derivatives | [7] | 1 | |||
Total assets at fair value | 830 | 791 | |||
Liabilities | |||||
Foreign currency derivatives | 1 | [8] | 1 | [9] | |
Total liabilities at fair value | 5 | 5 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Commodity Derivatives [Member] | |||||
Liabilities | |||||
Commodity derivatives | [8] | $ 4 | $ 4 | ||
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 | $ 439 | $ 417 | |||
Restricted investments | 383 | [1],[2] | 367 | [3],[4] | |
Investment of captive insurance company | 8 | [5] | 6 | [6] | |
Foreign currency derivatives | [7] | 1 | |||
Total assets at fair value | 830 | 791 | |||
Liabilities | |||||
Foreign currency derivatives | 1 | [8] | 1 | [9] | |
Total liabilities at fair value | 5 | 5 | |||
Estimate of Fair Value, Fair Value Disclosure [Member] | Commodity Derivatives [Member] | |||||
Liabilities | |||||
Commodity derivatives | [8] | $ 4 | $ 4 | ||
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 | $ 439 | $ 417 | |||
Restricted investments | 383 | [1],[2] | 367 | [3],[4] | |
Investment of captive insurance company | 8 | [5] | 6 | [6] | |
Foreign currency derivatives | [7] | 0 | |||
Total assets at fair value | 830 | 790 | |||
Liabilities | |||||
Foreign currency derivatives | 0 | [8] | 0 | [9] | |
Total liabilities at fair value | 0 | 0 | |||
Fair Value, Inputs, Level 1 [Member] | Commodity Derivatives [Member] | |||||
Liabilities | |||||
Commodity derivatives | [8] | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted investments | 0 | [1],[2] | 0 | [3],[4] | |
Investment of captive insurance company | 0 | [5] | 0 | [6] | |
Foreign currency derivatives | [7] | 1 | |||
Total assets at fair value | 0 | 1 | |||
Liabilities | |||||
Foreign currency derivatives | 1 | [8] | 1 | [9] | |
Total liabilities at fair value | 5 | 5 | |||
Fair Value, Inputs, Level 2 [Member] | Commodity Derivatives [Member] | |||||
Liabilities | |||||
Commodity derivatives | [8] | 4 | 4 | ||
Fair Value, Inputs, Level 3 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted investments | 0 | [1],[2] | 0 | [3],[4] | |
Investment of captive insurance company | 0 | [5] | 0 | [6] | |
Foreign currency derivatives | [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] | |||||
Liabilities | |||||
Commodity derivatives | [8] | $ 0 | $ 0 | ||
[1] Includes $ 255 million related to the Asbestos trust and $ 128 million related to the Environmental trust Includes $ 306 million within restricted investments and $ 77 million within other current assets in the Condensed Consolidated Balance Sheets Includes $ 243 million related to the Asbestos trust and $ 124 million related to the Environmental trust Includes $ 290 million within restricted investments and $ 77 million within other current assets in the Condensed Consolidated Balance Sheets Included in other noncurrent assets in the Condensed Consolidated Balance Sheets Included in other noncurrent assets in the Condensed Consolidated Balance Sheets Included in accounts receivable in the Condensed Consolidated Balance Sheets Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets. Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets. |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Financial Instruments Subject to Recurring Fair Value Measurements (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted Investments | $ 306 | $ 290 |
Restricted Investments, Current | 77 | 77 |
Asbestos Trust [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value | 255 | 243 |
Environmental Trust [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, fair value | $ 128 | $ 124 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Restricted Investment Portfolio (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 |
Restricted Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted cost | $ 373 | $ 393 |
Gross Unrealized Gain | 46 | 24 |
Gross Unrealized Loss | (36) | (50) |
Fair Value | 383 | 367 |
Fixed Income Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted cost | 223 | 226 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | (36) | (48) |
Fair Value | 187 | 178 |
Equity Mutual Fund [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted cost | 141 | 155 |
Gross Unrealized Gain | 46 | 24 |
Gross Unrealized Loss | 0 | (2) |
Fair Value | 187 | 177 |
Demand Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Adjusted cost | 9 | 12 |
Gross Unrealized Gain | 0 | 0 |
Gross Unrealized Loss | 0 | 0 |
Fair Value | $ 9 | $ 12 |
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 | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | ||
Fair Value Disclosures [Abstract] | |||||
Investment income | [1] | $ 3 | $ 3 | $ 9 | $ 6 |
Net gains | [1] | 9 | 19 | 39 | 41 |
Funds restricted for specific transactions | 5 | 5 | |||
Disbursements | $ (21) | $ (16) | $ (37) | $ (16) | |
[1] Included in the net interest and other expense (income) caption within the Statements of Consolidated Comprehensive Income (Loss). |
Fair Value Measurements - Sum_5
Fair Value Measurements - Summary of Net Gains and Losses on Foreign Currency Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Foreign currency derivative gains | $ (2) | $ 1 | $ 1 | $ 9 |
Fair Value Measurements - Sum_6
Fair Value Measurements - Summary of Fair Values of Outstanding Foreign Currency Derivatives (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 |
Accounts Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative assets | $ 0 | $ 1 |
Notional contract values | 40 | 147 |
Accrued Expenses and Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional contract values | 198 | 103 |
Foreign currency derivative liabilities | $ 1 | $ 1 |
Fair Value Measurements - Sum_7
Fair Value Measurements - Summary of Net Gains and Losses on Derivatives (Details) - Commodity Derivatives [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Commodity derivative losses | $ (2) | $ (1) | $ (3) | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Revenue | Cost of Revenue | Cost of Revenue | Cost of Revenue |
Fair Value Measurements - Sum_8
Fair Value Measurements - Summary of Fair Values of Outstanding Commodity Derivatives (Details) - Commodity Contract [Member] - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 |
Accounts Receivable [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity derivative assets | $ 0 | $ 0 |
Notional contract values | 1 | 2 |
Accrued Expenses and Other Liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional contract values | 14 | 16 |
Commodity derivative liabilities | $ 4 | $ 4 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Restricted Investments, Current | $ 77 | $ 77 |
Long-term debt, carrying value | 1,340 | 1,327 |
Long-term debt, fair value | $ 1,266 | $ 1,160 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 352 | $ 390 |
Raw materials, supplies and work in process | 198 | 236 |
Total | $ 550 | $ 626 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Summary of Goodwill by Reportable Segment (Details) $ in Millions | 6 Months Ended | |
Mar. 31, 2024 USD ($) | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | $ 1,362 | |
Currency translation | 17 | |
Balance at end of period | 1,379 | |
Life Sciences [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 819 | |
Currency translation | 11 | |
Balance at end of period | 830 | |
Personal Care [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 122 | [1] |
Currency translation | 1 | [1] |
Balance at end of period | 123 | [1] |
Specialty Additives [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 421 | [1] |
Currency translation | 5 | [1] |
Balance at end of period | 426 | [1] |
Intermediates [Member] | ||
Goodwill [Roll Forward] | ||
Balance at beginning of period | 0 | [1] |
Currency translation | 0 | [1] |
Balance at end of period | $ 0 | [1] |
[1] As of March 31, 2024 and September 30, 2023 , there were accumulated impairments of $ 356 million, $ 174 million and $ 90 million related to the Personal Care, Specialty Additives and Intermediates reportable segments, respectively. |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Summary of Goodwill by Reportable Segment (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 |
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_4
Goodwill and Other Intangibles - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Intangibles amortization expense - Note F | $ 20 | $ 23 | $ 40 | $ 46 |
Expected future amortization expense [Abstract] | ||||
2024 (includes six months actual and six months estimated) | 79 | 79 | ||
2025 | 77 | 77 | ||
2026 | 75 | 75 | ||
2027 | 53 | 53 | ||
2028 | $ 50 | $ 50 | ||
Minimum [Member] | Trademarks and Trade Names [Member] | ||||
Intangible Assets, Net [Abstract] | ||||
Useful life (in years) | 3 years | 3 years | ||
Minimum [Member] | Intellectual Property [Member] | ||||
Intangible Assets, Net [Abstract] | ||||
Useful life (in years) | 3 years | 3 years | ||
Minimum [Member] | Customer and Supplier Relationships [Member] | ||||
Intangible Assets, Net [Abstract] | ||||
Useful life (in years) | 10 years | 10 years | ||
Maximum [Member] | Trademarks and Trade Names [Member] | ||||
Intangible Assets, Net [Abstract] | ||||
Useful life (in years) | 20 years | 20 years | ||
Maximum [Member] | Intellectual Property [Member] | ||||
Intangible Assets, Net [Abstract] | ||||
Useful life (in years) | 20 years | 20 years | ||
Maximum [Member] | Customer and Supplier Relationships [Member] | ||||
Intangible Assets, Net [Abstract] | ||||
Useful life (in years) | 24 years | 24 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles - Summary of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 |
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 1,661 | $ 1,649 |
Accumulated amortization | (1,088) | (1,041) |
Net carrying amount | 573 | 608 |
Intangible Assets, Net [Abstract] | ||
Gross carrying amount | 1,939 | 1,927 |
Net carrying amount | 851 | 886 |
Trademarks and Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 98 | 97 |
Accumulated amortization | (45) | (43) |
Net carrying amount | 53 | 54 |
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 | 736 | 731 |
Accumulated amortization | (602) | (581) |
Net carrying amount | 134 | 150 |
Customer and Supplier Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 827 | 821 |
Accumulated amortization | (441) | (417) |
Net carrying amount | $ 386 | $ 404 |
Debt and Other Financing Acti_3
Debt and Other Financing Activities - Summary of Current and Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 | |
Debt Instrument [Line Items] | |||
Carrying value of debt | $ 1,340 | $ 1,327 | |
Other | [1] | (9) | 6 |
Total debt | 1,328 | 1,330 | |
Short-term debt | 0 | 16 | |
Long-term debt (less debt issuance costs) | 1,328 | 1,314 | |
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 | 540 | 528 | |
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 | $ 65 | $ 64 | |
[1] Other includes $ 12 million and $ 13 million of debt issuance costs as of March 31, 2024 and September 30, 2023 , respectively. The current portion of the long-term debt was zero for both March 31, 2024 and September 30, 2023. |
Debt and Other Financing Acti_4
Debt and Other Financing Activities - Summary of Current and Long-term Debt (Parenthetical) (Details) € in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) | Sep. 30, 2023 USD ($) | Mar. 31, 2024 EUR (€) | Sep. 30, 2023 EUR (€) | |
Debt Instrument [Line Items] | ||||
Unamortized debt issuance expense, long-term debt | $ 12 | $ 13 | ||
Current portion of long-term debt | 0 | 0 | ||
Short-Term Debt | $ 0 | $ 16 | ||
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% |
Debt instrument, maturity year | 2031 | 2031 | ||
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 and Other Financing Acti_5
Debt and Other Financing Activities - Summary of Current and Long-term Debt - Additional Information (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Scheduled aggregate debt maturities by fiscal year [Abstract] | |
Remaining in 2024 | $ 0 |
2025 | 0 |
2026 | 0 |
2027 | 4 |
2028 | $ 540 |
Debt and Other Financing Acti_6
Debt and Other Financing Activities - U.S. Accounts Receivable Sales Program - Additional Information (Details) - U.S. Accounts Receivable Sales Program [Member] - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | |
Disclosure Of Sales Program Of Receivable [Line Items] | |||||
Maximum limit of receivables can transfer | $ 100,000,000 | $ 115,000,000 | |||
Gain (loss) on sale of receivables | $ 1,000,000 | 2,000,000 | $ 1,000,000 | ||
Sales against the buyers limit | 84,000,000 | 86,000,000 | |||
Amount transferred in receivables | 102,000,000 | 106,000,000 | |||
Gross cash proceeds received for receivables transferred and derecognized | 174,000,000 | 99,000,000 | |||
Cash proceeds collected | 159,000,000 | 122,000,000 | |||
Payments for (proceeds from) new transfers of receivables | 15,000,000 | $ 22,000,000 | |||
Maximum [Member] | |||||
Disclosure Of Sales Program Of Receivable [Line Items] | |||||
Gain (loss) on sale of receivables | $ 1,000,000 | ||||
Recorded liabilities related to service obligations and limited guarantee | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 |
Debt and Other Financing Acti_7
Debt and Other Financing Activities - 2018 Foreign Accounts Receivable Securitization Facility - Additional Information (Details) $ in Millions | Sep. 30, 2023 USD ($) |
2018 Accounts Receivable Securitization [Member] | |
Debt Instrument [Line Items] | |
Outstanding amount of receivables sold to affiliate | $ 124 |
Debt and Other Financing Acti_8
Debt and Other Financing Activities - Foreign Accounts Receivable Sales Program -Additional Information (Details) € in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Oct. 19, 2023 EUR (€) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | |
U.S. Accounts Receivable Sales Program [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum limit of receivables can transfer | $ 100,000,000 | $ 115,000,000 | ||||
Gain (loss) on sale of receivables | $ 1,000,000 | 2,000,000 | $ 1,000,000 | |||
Amount transferred in receivables | 102,000,000 | 106,000,000 | ||||
Maximum [Member] | U.S. Accounts Receivable Sales Program [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Gain (loss) on sale of receivables | $ 1,000,000 | |||||
Recorded liabilities related to service obligations and limited guarantee | 1,000,000 | 1,000,000 | $ 1,000,000 | |||
Ashland [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Agreement term to sell trade receivables | 3 years | |||||
Maximum limit of receivables can transfer | € | € 125 | |||||
Receivables sold under agreement | 122,000,000 | |||||
Gain (loss) on sale of receivables | 1,000,000 | 2,000,000 | ||||
Amount transferred in receivables | 168,000,000 | |||||
Ashland [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Recorded liabilities related to service obligations and limited guarantee | $ 1,000,000 | $ 1,000,000 |
Debt and Other Financing Acti_9
Debt and Other Financing Activities - Financing Activity and Covenants - Additional Information (Details) | Mar. 31, 2024 USD ($) |
Debt Instrument [Line Items] | |
Line of credit facility, remaining borrowing capacity | $ 596,000,000 |
Covenant restrictions [Abstract] | |
Maximum consolidated leverage ratio | 4 |
Consolidated net leverage ratio | 2.1 |
Minimum required consolidated interest coverage ratio | 3 |
Consolidated interest coverage ratio | 7.3 |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 600,000,000 |
Line of credit facility, remaining borrowing capacity | 596,000,000 |
Letters of credit outstanding, amount | $ 4,000,000 |
Leasing Arrangements - Componen
Leasing Arrangements - Components of Lease Cost Recognized (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | ||
Lease cost: | |||||
Total lease cost | $ 10 | $ 10 | $ 20 | $ 19 | |
Selling General and Administrative Expenses [Member] | |||||
Lease cost: | |||||
Operating lease cost | [1] | 3 | 3 | 7 | 6 |
Variable lease cost | 2 | 1 | 3 | 2 | |
Cost of Sales [Member] | |||||
Lease cost: | |||||
Operating lease cost | 4 | 4 | 7 | 8 | |
Variable lease cost | 1 | 1 | 2 | 2 | |
Short-term leases | $ 0 | $ 1 | $ 1 | $ 1 | |
[1] Includes zero and $ 1 million charges for the impairment of an abandoned right of use office building asset for the three and six months ended March 31, 2024 , respectively. |
Leasing Arrangements - Compon_2
Leasing Arrangements - Components of Lease Cost Recognized (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | |
Leases [Abstract] | ||
Lease termination fee | $ 0 | $ 1 |
Leasing Arrangements - Addition
Leasing Arrangements - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Lessee Lease Description [Line Items] | ||||
Right-of-use assets exchanged for new operating lease obligations | $ 2 | $ 20 | $ 3 | $ 23 |
Property, Plant and Equipment [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Lease asset | $ 10 | $ 10 |
Leasing Arrangements - Schedule
Leasing Arrangements - Schedule of Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||||
Operating cash flows from operating leases | $ 7 | $ 6 | $ 14 | $ 13 |
Investing cash flows from finance leases | $ 10 | $ 0 | $ 10 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Minimum [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Decrease in unrecognized tax benefits is reasonably possible | $ 4 | $ 4 | ||
Maximum [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Decrease in unrecognized tax benefits is reasonably possible | $ 5 | $ 5 | ||
Current Fiscal Year [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Effective tax rate (in hundredths) | 612% | 610% | ||
Tax (benefit) and expense | $ 102 | $ 126 | ||
Prior Fiscal Year [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Effective tax rate (in hundredths) | 1% | 5% | ||
Tax (benefit) and expense | $ 20 | $ 23 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Unrecognized Tax Benefits (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2024 USD ($) | |
Income Tax Disclosure [Abstract] | |
Balance at beginning of period | $ 59 |
Increases related to positions taken in prior years | 2 |
Decreases related to positions taken in prior years | (1) |
Increases related to positions taken in the current year | 3 |
Lapse of statute of limitations | (1) |
Balance at end of period | $ 62 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual contributions to benefit plans in period | $ 5 | |||
Estimated future contributions in current fiscal year | $ 1 | 1 | ||
Other net periodic benefit (loss) income | (2) | $ (2) | (4) | $ (3) |
Foreign Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual contributions to benefit plans in period | 6 | |||
Estimated future contributions in current fiscal year | $ 2 | $ 2 |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Components of Pension and Other Postretirement Benefit Costs for Continuing Operation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1 | $ 1 | $ 1 | $ 2 |
Interest cost | 2 | 3 | 7 | 6 |
Expected return on plan assets | (1) | (2) | (4) | (4) |
Total net periodic benefit costs | 2 | 2 | 4 | 4 |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 1 | 1 | 1 | 1 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Total net periodic benefit costs | $ 1 | $ 1 | $ 1 | $ 1 |
Litigation, Claims and Contin_3
Litigation, Claims and Contingencies - Summary of Asbestos Claims Activity (Details) - Claim Claim in Thousands | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Ashland [Member] | |||||
Asbestos claims [Roll Forward] | |||||
Open claims - beginning of year | 42 | 44 | 44 | 46 | 49 |
New claims filed | 1 | 1 | 2 | 2 | 2 |
Claims settled | 0 | 0 | (1) | (1) | (1) |
Claims dismissed | (1) | (2) | (3) | (3) | (4) |
Open claims - end of period | 42 | 43 | 42 | 44 | 46 |
Hercules [Member] | |||||
Asbestos claims [Roll Forward] | |||||
Open claims - beginning of year | 12 | 11 | 11 | 12 | 12 |
New claims filed | 1 | 0 | 1 | 1 | 1 |
Claims dismissed | (1) | 0 | 0 | (2) | (1) |
Open claims - end of period | 12 | 12 | 12 | 11 | 12 |
Litigation, Claims and Contin_4
Litigation, Claims and Contingencies - Additional Information (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2024 USD ($) ServiceStationProperty Site Facility | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | ||||||
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 | 53 | ||||||||||
Number of current and former operating facilities subject to various environmental laws | Facility | 107 | ||||||||||
Total number of service station properties subject to various environmental laws | ServiceStationProperty | 1,225 | ||||||||||
Number of service stations being actively remediated | ServiceStationProperty | 14 | ||||||||||
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other liabilities | ||||||||||
Accrual for environmental loss contingencies | $ 198 | $ 193 | $ 214 | $ 211 | |||||||
Accrued environmental loss contingencies, noncurrent | 149 | 165 | |||||||||
Recorded third-party environmental recoveries receivables | 15 | 17 | |||||||||
Recorded third-party environmental recoveries, noncurrent | 12 | 15 | |||||||||
Environmental exit costs, reasonably possible additional loss | $ 450 | ||||||||||
Maximum reserve for remediation reserve related to any one site (in hundredths) | 23% | ||||||||||
Ashland [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Increase (decrease) in asbestos related reserve | $ 0 | 0 | 9 | 16 | $ 12 | ||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |||||||||||
Insurance receivable | 91 | [1] | 96 | [1] | 95 | [1] | 101 | [1] | 100 | [1] | $ 103 |
Receivable adjustment | 3 | ||||||||||
Asbestos litigation cost projection [Abstract] | |||||||||||
Possible total future litigation defense and claim settlement costs | 422 | ||||||||||
Total reserves for asbestos claims | 263 | [2] | 285 | [2] | 281 | [2] | 305 | [2] | 320 | [2] | 335 |
Hercules [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Increase (decrease) in asbestos related reserve | 0 | 0 | (2) | 15 | 8 | ||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |||||||||||
Insurance receivable | 45 | [3] | 51 | [3] | 47 | [3] | 52 | [3] | 47 | [3] | 47 |
Receivable adjustment | (3) | ||||||||||
Asbestos litigation cost projection [Abstract] | |||||||||||
Possible total future litigation defense and claim settlement costs | 288 | ||||||||||
Total reserves for asbestos claims | $ 180 | [4] | $ 205 | [4] | $ 191 | [4] | $ 213 | [4] | $ 217 | [4] | $ 229 |
[1] Includes $ 11 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 . Included $ 28 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023. Includes $ 4 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 . Included $ 16 million and $ 17 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 , respectively. |
Litigation, Claims and Contin_5
Litigation, Claims and Contingencies - Schedule of Progression of Activity in the Asbestos Reserve (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||||||
Ashland [Member] | ||||||||||
Asbestos reserve [Roll Forward] | ||||||||||
Asbestos reserve - beginning of year | $ 281 | [1] | $ 305 | [1] | $ 305 | [1] | $ 320 | [1] | $ 335 | |
Reserve adjustment | 0 | 0 | 9 | 16 | 12 | |||||
Amounts paid | (18) | (20) | (33) | (31) | (27) | |||||
Asbestos reserve - end of period | [1] | 263 | 285 | 281 | 305 | 320 | ||||
Hercules [Member] | ||||||||||
Asbestos reserve [Roll Forward] | ||||||||||
Asbestos reserve - beginning of year | 191 | [2] | 213 | [2] | 213 | [2] | 217 | [2] | 229 | |
Reserve adjustment | 0 | 0 | (2) | 15 | 8 | |||||
Amounts paid | (11) | (8) | (20) | (19) | (20) | |||||
Asbestos reserve - end of period | [2] | $ 180 | $ 205 | $ 191 | $ 213 | $ 217 | ||||
[1] Included $ 28 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023. Included $ 16 million and $ 17 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 , respectively. |
Litigation, Claims and Contin_6
Litigation, Claims and Contingencies - Schedule of Progression of Activity in the Asbestos Reserve (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |||||
Ashland [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Asbestos reserve | $ 263 | [1] | $ 281 | [1] | $ 285 | [1] | $ 305 | [1] | $ 320 | [1] | $ 335 |
Ashland [Member] | Other Current Liabilities [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Asbestos reserve | 28 | 28 | |||||||||
Hercules [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Asbestos reserve | 180 | [2] | 191 | [2] | $ 205 | [2] | $ 213 | [2] | $ 217 | [2] | $ 229 |
Hercules [Member] | Other Current Liabilities [Member] | |||||||||||
Asbestos reserve [Roll Forward] | |||||||||||
Asbestos reserve | $ 16 | $ 17 | |||||||||
[1] Included $ 28 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023. Included $ 16 million and $ 17 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 , respectively. |
Litigation, Claims and Contin_7
Litigation, Claims and Contingencies - Summary of Progression of Insurance Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||||||
Insurance settlement | $ 0 | $ 0 | $ 1 | $ 0 | ||||||||
Ashland [Member] | ||||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||||||
Insurance receivable - beginning of year | 95 | [1] | 101 | [1] | $ 101 | [1] | $ 100 | [1] | $ 103 | |||
Receivable adjustment | [2] | 0 | 0 | 3 | 7 | 6 | ||||||
Amounts collected | (4) | (5) | (9) | (6) | (9) | |||||||
Insurance receivable - end of period | [1] | 91 | 96 | 91 | 96 | 95 | 101 | 100 | ||||
Hercules [Member] | ||||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||||||||||||
Insurance receivable - beginning of year | 47 | [3] | 52 | [3] | 52 | [3] | 47 | [3] | 47 | |||
Receivable adjustment | [4] | 0 | 0 | (3) | 7 | 1 | ||||||
Amounts collected | (2) | (1) | (2) | (2) | (1) | |||||||
Insurance receivable - end of period | [3] | $ 45 | $ 51 | $ 45 | $ 51 | $ 47 | $ 52 | $ 47 | ||||
[1] Includes $ 11 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 . 2021 includes a $ 2 million reserve adjustment related to allowances for credit losses as a result of Ashland's adoption of the credit measurement standard. The total allowance for credit losses was $ 1 million as of March 31, 2024 and September 30, 2023. Includes $ 4 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 . 2021 includes a $ 1 million reserve adjustment related to allowances for credit losses as a result of Ashland's adoption of the credit measurement standard. The total allowance for credit losses was $ 1 million as of March 31, 2024 and September 30, 2023 . |
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 | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2020 | ||||||
Ashland [Member] | |||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |||||||||||
Insurance receivable | $ 100 | [1] | $ 91 | [1] | $ 95 | [1] | $ 96 | [1] | $ 101 | [1] | $ 103 |
Allowance for credit losses | 2 | ||||||||||
Total allowance for credit losses | 1 | 1 | |||||||||
Ashland [Member] | Accounts Receivable [Member] | |||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |||||||||||
Insurance receivable | 11 | 11 | |||||||||
Hercules [Member] | |||||||||||
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | |||||||||||
Insurance receivable | 47 | [2] | 45 | [2] | 47 | [2] | $ 51 | [2] | $ 52 | [2] | $ 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 | $ 4 | |||||||||
[1] Includes $ 11 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 . Includes $ 4 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of March 31, 2024 and September 30, 2023 . |
Litigation, Claims and Contin_9
Litigation, Claims and Contingencies - Summary of Reconciliation of Changes in Environmental Remediation Reserves (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Loss Contingencies [Line Items] | ||
Reserve - beginning of period | $ 214 | $ 211 |
Disbursements | (23) | (29) |
Revised obligation estimates and accretion | 7 | 11 |
Reserve - end of period | $ 198 | $ 193 |
Litigation, Claims and Conti_10
Litigation, Claims and Contingencies - Summary of Components of Environmental Remediation Expense Included within Selling, General and Administrative Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | ||
Loss Contingencies [Line Items] | |||||
Environmental expense | $ 3 | $ 3 | $ 7 | $ 11 | |
Legal expense | 0 | 1 | 2 | 2 | |
Total expense | 3 | 4 | 9 | 13 | |
Insurance receivable | 0 | 0 | (1) | 0 | |
Total expense, net of receivable activity | [1] | $ 3 | $ 4 | $ 8 | $ 13 |
[1] Net expense of zero and $ 1 million for the three and six months ended March 31, 2024 , respectively, and zero and $ 1 million for the three and six months ended March 31, 2023 , respectively, relates to divested businesses which qualified for treatment as discontinued operations for which certain environmental liabilities were retained by Ashland. These amounts are classified within the loss from discontinued operations, net of income taxes 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 | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Loss Contingencies [Line Items] | ||||
Net expense relates to divested businesses | $ 0 | $ 0 | $ 1 | $ 1 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - $ / shares shares in Millions | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Shares, Outstanding | 1 | 1 |
Shares of warrants with a strike price | $ 128.66 | $ 128.66 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator | ||||
Numerator for basic and diluted EPS - Income from continuing operations, net of tax | $ 121 | $ 92 | $ 149 | $ 134 |
Denominator | ||||
Denominator for basic EPS - Weighted-average common shares outstanding | 50 | 54 | 50 | 54 |
Share based awards convertible to common shares | 1 | 1 | 1 | 1 |
Denominator for diluted EPS - Adjusted weighted-average shares and assumed conversions | 51 | 55 | 51 | 55 |
Earnings Per Share from Continuing Operations [Abstract] | ||||
Basic | $ 2.43 | $ 1.71 | $ 2.95 | $ 2.47 |
Diluted | $ 2.4 | $ 1.68 | $ 2.92 | $ 2.43 |
Equity Items - Additional Infor
Equity Items - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | |||||||||
Dec. 31, 2023 | Apr. 30, 2023 | Mar. 31, 2023 | Feb. 28, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Nov. 30, 2023 | Sep. 30, 2023 | Jun. 28, 2023 | |
Accelerated Share Repurchases [Line Items] | |||||||||||
Accrued expenses and other liabilities | $ 225 | $ 208 | |||||||||
Dividend per common share | $ 38.5 | $ 38.5 | $ 33.5 | $ 33.5 | |||||||
2022 Stock Repurchase Program [Member] | |||||||||||
Accelerated Share Repurchases [Line Items] | |||||||||||
Stock repurchase during period value | $ 100 | $ 52 | $ 100 | ||||||||
Aggregate amount of common stock to be repurchased | 100 | $ 100 | $ 100 | ||||||||
Cash settled | 42 | ||||||||||
Accrued expenses and other liabilities | $ 10 | $ 10 | |||||||||
Stock repurchased and retired during period shares | 1 | 0.5 | 1 | ||||||||
Stock repurchase program amount outstanding | $ 200 | ||||||||||
2023 Stock Repurchase Program [Member] | |||||||||||
Accelerated Share Repurchases [Line Items] | |||||||||||
Stock repurchase during period value | $ 100 | ||||||||||
Aggregate amount of common stock to be repurchased | $ 100 | $ 1,000 | |||||||||
Stock repurchased and retired during period shares | 1.2 | ||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 900 |
Equity Items - Components of Ac
Equity Items - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||||
Unrealized translation gain (loss), before tax | $ (27) | $ 27 | $ 27 | $ 110 |
Unrealized translation gain (loss), tax | 0 | 0 | 0 | (1) |
Unrealized translation gain (loss), net of tax | (27) | 27 | 27 | 109 |
Unrealized gain (loss) on commodity hedges, before tax | 1 | (4) | 0 | (9) |
Unrealized gain (loss) on commodity hedges, tax | 0 | 1 | 0 | 2 |
Unrealized gain (loss) on commodity hedges, net of tax | 1 | (3) | 0 | (7) |
Total other comprehensive income (loss), before tax | (26) | 23 | 27 | 101 |
Total other comprehensive income (loss), tax | 0 | 1 | 0 | 1 |
Other comprehensive income (loss) - Note M | $ (26) | $ 24 | $ 27 | $ 102 |
Equity Items - Summary of Recon
Equity Items - Summary of Reconciliation of Changes in Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | ||
Balance, end of period | $ 3,134 | $ 3,267 | $ 3,134 | $ 3,267 | |
Cash dividends declared per common share | $ 0.385 | $ 0.335 | $ 0.77 | $ 0.67 | |
Common Stock and Paid in Capital [Member] | |||||
Balance, beginning of period | $ 1 | $ 134 | $ 5 | $ 136 | |
Common shares issued under stock incentive and other plans | [1] | 5 | 4 | 3 | 2 |
Common shares purchased under repurchase program | [2],[3] | 0 | (138) | (2) | (138) |
Balance, end of period | 6 | 0 | 6 | 0 | |
Retained earnings [Member] | |||||
Balance, beginning of period | 3,502 | 3,675 | 3,595 | 3,653 | |
Net income | 120 | 91 | 147 | 132 | |
Regular dividends | (19) | (18) | (39) | (36) | |
Common shares purchased under repurchase program | [2],[3] | 0 | (15) | (99) | (15) |
Other | 1 | 1 | 0 | 0 | |
Balance, end of period | 3,604 | 3,734 | 3,604 | 3,734 | |
Accumulated other comprehensive income (loss) [Member] | |||||
Balance, beginning of period | (450) | (491) | (503) | (569) | |
Unrealized translation gain (loss) | (27) | 27 | 27 | 109 | |
Unrealized gain (loss) on commodity hedges | 1 | (3) | 0 | (7) | |
Balance, end of period | $ (476) | $ (467) | $ (476) | $ (467) | |
[1] Common shares issued were 32,458 and 16,935 for the three months ended March 31, 2024 and 2023 , respectively, and 110,807 and 144,514 for the six months ended March 31, 2024 and 2023 , respectively. Includes $ 1 million for the three months ended March 31, 2024 and 2023 , respectively, and $ 4 million and $ 10 million for the six months ended March 31, 2024 and 2023 , respectively, associated with stock-based compensation employee withholding taxes. Common shares repurchased were zero and 1,238,212 for the three and six months ended March 31, 2024 , and 1,488,251 for the three and six months ended March 31, 2023 . Includes zero and $ 1 million in excise tax on stock repurchases for the three and six months ended March 31, 2024 , respectively, and $ 1 million for both the three and six months ended March 31, 2023 . |
Equity Items - Summary of Rec_2
Equity Items - Summary of Reconciliation of Changes in Stockholders' Equity (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Accelerated Share Repurchases [Line Items] | ||||
Common shares issued | 32,458 | 16,935 | 110,807 | 144,514 |
Stock based compensation employee withholding taxes | $ 1 | $ 1 | $ 4 | $ 10 |
Common shares repurchased | 0 | 1,488,251 | 1,238,212 | 1,488,251 |
Excise tax on stock repurchases | $ 0 | $ 1 | $ 1 | $ 1 |
Stock Incentive Plans - Compone
Stock Incentive Plans - Components of Pre-Tax Stock-Based Compensation Expense Included in Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2024 | [1] | Mar. 31, 2023 | [2] | Mar. 31, 2024 | [1] | Mar. 31, 2023 | [2] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation | $ 7 | $ 6 | $ 8 | $ 14 | ||||
Nonvested Stock Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation | 3 | 4 | 7 | 7 | ||||
Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation | $ 4 | $ 2 | $ 1 | $ 7 | ||||
[1] Included zero and $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three and six months ended March 31, 2024 , respectively, and $ 1 million of expense and zero related to cash-settled performance units during the three and six months ended March 31, 2024 , respectively. Included $ 1 million and $ 2 million of expense related to cash-settled nonvested restricted stock awards during the three and six months ended March 31, 2023 . |
Stock Incentive Plans - Compo_2
Stock Incentive Plans - Components of Pre-Tax Stock-Based Compensation Expense Included in Continuing Operations (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation | $ 7 | [1] | $ 6 | [2] | $ 8 | [1] | $ 14 | [2] |
Cash-settled Nonvested Restricted Stock Awards [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation | 0 | $ 1 | 1 | $ 2 | ||||
Cash-settled Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation | $ 1 | $ 0 | ||||||
[1] Included zero and $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three and six months ended March 31, 2024 , respectively, and $ 1 million of expense and zero related to cash-settled performance units during the three and six months ended March 31, 2024 , respectively. Included $ 1 million and $ 2 million of expense related to cash-settled nonvested restricted stock awards during the three and six months ended March 31, 2023 . |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ 575 | $ 603 | $ 1,048 | $ 1,128 |
Life Sciences [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 222 | 240 | 422 | 447 |
Life Sciences [Member] | North America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 73 | 61 | 140 | 109 |
Life Sciences [Member] | Europe [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 72 | 87 | 136 | 160 |
Life Sciences [Member] | Asia Pacific [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 57 | 62 | 107 | 122 |
Life Sciences [Member] | Latin America & Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 20 | 30 | 39 | 56 |
Personal Care [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 169 | 167 | 298 | 305 |
Personal Care [Member] | North America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 45 | 48 | 85 | 90 |
Personal Care [Member] | Europe [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 69 | 69 | 116 | 120 |
Personal Care [Member] | Asia Pacific [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 31 | 28 | 57 | 56 |
Personal Care [Member] | Latin America & Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 24 | 22 | 40 | 39 |
Specialty Additives [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 157 | 161 | 279 | 304 |
Specialty Additives [Member] | North America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 46 | 52 | 88 | 105 |
Specialty Additives [Member] | Europe [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 63 | 61 | 103 | 109 |
Specialty Additives [Member] | Asia Pacific [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 40 | 39 | 74 | 74 |
Specialty Additives [Member] | Latin America & Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 8 | 9 | 14 | 16 |
Intermediates [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 40 | 51 | 73 | 105 |
Intermediates [Member] | North America [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 27 | 36 | 52 | 70 |
Intermediates [Member] | Europe [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 6 | 7 | 10 | 16 |
Intermediates [Member] | Asia Pacific [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | 6 | 6 | 9 | 14 |
Intermediates [Member] | Latin America & Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Sales | $ 1 | $ 2 | $ 2 | $ 5 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Mar. 31, 2024 | Sep. 30, 2023 | |
Sales Revenue [Member] | Cellulosics [Member] | Product Concentration Risk [Member] | ||
Revenue From Contracts With Customers [Line Items] | ||
Concentration risk percentage | 37% | |
Sales Revenue [Member] | Polyvinylpyrrolidones (PVP) [Member] | Product Concentration Risk [Member] | ||
Revenue From Contracts With Customers [Line Items] | ||
Concentration risk percentage | 23% | |
Sales Revenue [Member] | Minimum [Member] | Product Concentration Risk [Member] | ||
Revenue From Contracts With Customers [Line Items] | ||
Concentration risk percentage | 10% | |
Trade Receivable [Member] | ||
Revenue From Contracts With Customers [Line Items] | ||
Trade receivables | $ 225 | $ 288 |
Reportable Segment Informatio_2
Reportable Segment Information - Summary of Financial Information for Each Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2023 | ||
Segment Reporting Information [Line Items] | ||||||
SALES | $ 575 | $ 603 | $ 1,048 | $ 1,128 | ||
OPERATING INCOME (LOSS) | 21 | 83 | 4 | 120 | ||
DEPRECIATION EXPENSE | 63 | 37 | 120 | 74 | ||
AMORTIZATION EXPENSE | 20 | 23 | 40 | 46 | ||
EBITDA | [1] | 104 | 143 | 164 | 240 | |
TOTAL ASSETS | 5,948 | 5,948 | $ 5,939 | |||
Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
SALES | [2] | (13) | (16) | (24) | (33) | |
Life Sciences [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
SALES | 222 | 240 | 422 | 447 | ||
OPERATING INCOME (LOSS) | 50 | 58 | 82 | 92 | ||
DEPRECIATION EXPENSE | 11 | 10 | 20 | 20 | ||
AMORTIZATION EXPENSE | 5 | 7 | 12 | 14 | ||
EBITDA | [1] | 66 | 75 | 114 | 126 | |
TOTAL ASSETS | 1,915 | 1,915 | 1,904 | |||
Life Sciences [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
SALES | 222 | 240 | 422 | 447 | ||
Personal Care [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
OPERATING INCOME (LOSS) | 25 | 14 | 28 | 25 | ||
DEPRECIATION EXPENSE | 9 | 10 | 17 | 20 | ||
AMORTIZATION EXPENSE | 11 | 11 | 22 | 22 | ||
EBITDA | [1] | 45 | 35 | 67 | 67 | |
TOTAL ASSETS | 982 | 982 | 1,004 | |||
Personal Care [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
SALES | 169 | 167 | 298 | 305 | ||
Specialty Additives [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
SALES | 157 | 161 | 279 | 304 | ||
OPERATING INCOME (LOSS) | (18) | 15 | (50) | 16 | ||
DEPRECIATION EXPENSE | [3] | 40 | 14 | 77 | 28 | |
AMORTIZATION EXPENSE | 4 | 5 | 6 | 9 | ||
EBITDA | [1] | 26 | 34 | 33 | 53 | |
TOTAL ASSETS | 1,526 | 1,526 | 1,580 | |||
Specialty Additives [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
SALES | 157 | 161 | 279 | 304 | ||
Intermediates [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
OPERATING INCOME (LOSS) | 9 | 17 | 16 | 37 | ||
DEPRECIATION EXPENSE | 3 | 3 | 6 | 6 | ||
AMORTIZATION EXPENSE | 0 | 0 | 0 | 1 | ||
EBITDA | [1] | 12 | 20 | 22 | 44 | |
TOTAL ASSETS | 135 | 135 | 136 | |||
Intermediates [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
SALES | 40 | 51 | 73 | 105 | ||
Unallocated and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
OPERATING INCOME (LOSS) | [1] | (45) | (21) | (72) | (50) | |
EBITDA | (45) | $ (21) | (72) | $ (50) | ||
TOTAL ASSETS | $ 1,390 | $ 1,390 | $ 1,315 | |||
[1] Excludes loss from discontinued operations and other net periodic benefit loss. See the Statements 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. Depreciation includes accelerated depreciation of $ 27 million and $ 49 million for Specialty Additives for the three and six months ended March 31, 2024 , respectively. |
Reportable Segment Informatio_3
Reportable Segment Information - Summary of Financial Information for Each Reportable Segment (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2024 | Mar. 31, 2024 | |
Segment Reporting Information [Line Items] | ||
Accelerated depreciation | $ 27 | $ 49 |