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Fair Value Measurements (Tables) | 12 Months Ended
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Sep. 30, 2019
Fair Value Disclosures [Abstract] |
Summary of Financial Instruments Subject to Recurring Fair Value Measurements | The following table summarizes financial instruments subject to recurring fair value measurements as of September 30, 2019. For additional information on fair value hierarchy measurements of pension plan asset holdings, see Note N.
|  |  |  |  |  |  |  |  |  | Quoted prices |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | in active |  |  | Significant |  |  |  |  |
|  |  |  |  |  |  |  |  |  | markets for |  |  | other |  |  | Significant |
|  |  |  |  |  |  |  |  |  | identical |  |  | observable |  |  | unobservable |
|  | Carrying |  |  | Total fair |  |  | assets |  |  | inputs |  |  | inputs |
(In millions) |  | value |  |  | value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 232 |  |  | $ | 232 |  |  | $ | 232 |  |  | $ | — |  |  | $ | — |
Restricted investments (a) |  |  | 334 |  |  |  | 334 |  |  |  | 334 |  |  |  | — |  |  |  | — |
Investments of captive insurance company (b) |  |  | 5 |  |  |  | 5 |  |  |  | 5 |  |  |  | — |  |  |  | — |
Foreign currency derivatives |  |  | 2 |  |  |  | 2 |  |  |  | — |  |  |  | 2 |  |  |  | — |
Total assets at fair value |  | $ | 573 |  |  | $ | 573 |  |  | $ | 571 |  |  | $ | 2 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency derivatives |  | $ | 2 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |
(a) | Included in restricted investments and $24 million within other current assets in the Consolidated Balance Sheets.
(b) | Included in other noncurrent assets in the Consolidated Balance Sheets.
The following table summarizes financial instruments subject to recurring fair value measurements as of September 30, 2018.
|  |  |  |  |  |  |  |  |  | Quoted prices |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | in active |  |  | Significant |  |  |  |  |
|  |  |  |  |  |  |  |  |  | markets for |  |  | other |  |  | Significant |
|  |  |  |  |  |  |  |  |  | identical |  |  | observable |  |  | unobservable |
|  | Carrying |  |  | Total fair |  |  | assets |  |  | inputs |  |  | inputs |
(In millions) |  | value |  |  | value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 294 |  |  | $ | 294 |  |  | $ | 294 |  |  | $ | — |  |  | $ | — |
Restricted investments (a) |  |  | 342 |  |  |  | 342 |  |  |  | 342 |  |  |  | — |  |  |  | — |
Investments of captive insurance company (b) |  |  | 3 |  |  |  | 3 |  |  |  | 3 |  |  |  | — |  |  |  | — |
Foreign currency derivatives |  |  | 11 |  |  |  | 11 |  |  |  | — |  |  |  | 11 |  |  |  | — |
Total assets at fair value |  | $ | 650 |  |  | $ | 650 |  |  | $ | 639 |  |  | $ | 11 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency derivatives |  | $ | 3 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 3 |  |  | $ | — |
(a) | Included in restricted investments and $30 million within other current assets in the Consolidated Balance Sheets.
(b) | Included in other noncurrent assets in the Consolidated Balance Sheets.
Summary of Available-for-sale Securities Portfolio | The following table provides a summary of the activity within the available-for-sale securities portfolio as of September 30, 2019 and 2018:
(In millions) |  | 2019 |  |  | 2018 |
Original cost |  | $ | 335 |  |  | $ | 335 |
Accumulated adjustments, net |  |  | (47 | ) |  |  | (38 | )
Adjusted cost, beginning of year (a) |  |  | 288 |  |  |  | 297 |
Investment income (b) |  |  | 10 |  |  |  | 8 |
Net unrealized gain (c) |  |  | 29 |  |  |  | 54 |
Realized gain (c) |  |  | 32 |  |  |  | 6 |
Settlement funds |  |  | 7 |  |  |  | 10 |
Disbursements |  |  | (32 | ) |  |  | (33 | )
Fair value |  | $ | 334 |  |  | $ | 342 |
(a) | The adjusted cost of the demand deposit includes accumulated investment income, realized gains, disbursements and settlements recorded in previous periods.
(b) | Investment income relates to the demand deposit and includes interest income as well as dividend income transferred from the equity and corporate bond mutual funds.
(c) | Presented under the original cost method.
The following table presents gross unrealized gains and losses for the available-for-sale securities as of September 30, 2019 and 2018:
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(In millions) |  | Adjusted Cost |  |  | Unrealized Gain |  |  | Unrealized Loss |  |  | Fair Value |
As of September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand Deposit |  | $ | 9 |  |  | $ | — |  |  | $ | — |  |  | $ | 9 |
Equity Mutual Fund |  |  | 120 |  |  |  | 24 |  |  |  | (2 | ) |  |  | 142 |
Bond Mutual Fund |  |  | 176 |  |  |  | 7 |  |  |  | — |  |  |  | 183 |
Fair value |  | $ | 305 |  |  | $ | 31 |  |  | $ | (2 | ) |  | $ | 334 |
As of September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand Deposit |  | $ | 20 |  |  | $ | — |  |  | $ | — |  |  | $ | 20 |
Equity Mutual Fund |  |  | 148 |  |  |  | 59 |  |  |  | — |  |  |  | 207 |
Bond Mutual Fund |  |  | 120 |  |  |  | — |  |  |  | (5 | ) |  |  | 115 |
Fair value |  | $ | 288 |  |  | $ | 59 |  |  | $ | (5 | ) |  | $ | 342 |
Summary of Investment Income, Net Unrealized Gains and Losses, Realized Gains and Disbursements Related to Investments | The following table presents the investment income, net unrealized gains and losses, realized gains and disbursements related to the investments within the portfolio during 2019, 2018 and 2017.
(In millions) |  | 2019 |  |  | 2018 |  |  | 2017 |
Investment income |  | $ | 10 |  |  | $ | 8 |  |  | $ | 9 |
Net unrealized gains (losses) (a) |  |  | 7 |  |  |  | 18 |  |  |  | 25 |
Realized gains (b) |  |  | — |  |  |  | 6 |  |  |  | 2 |
Disbursements |  |  | (32 | ) |  |  | (33 | ) |  |  | (27 | )
(a) | Ashland determined that all unrealized gains and losses were related to equity securities with readily determinable fair values. Due to the new accounting guidance adopted in the first quarter of fiscal year 2019, the net unrealized losses during the year ended September 30, 2019 were recorded within the net interest and other expense (income) caption in the Statements of Consolidated Income (Loss). In 2018 and 2017 these net unrealized gains (losses) were in AOCI.
(b) | Relates only to the years ended September 30, 2018 and 2017 prior to adoption of the new accounting guidance for equity securities.
Summary of Net Gains and Losses on Foreign Currency Derivatives | The following table summarizes the gains and losses recognized during 2019, 2018 and 2017 within the Statements of Consolidated Comprehensive Income (Loss).
(In millions) |  | 2019 |  |  | 2018 |  |  | 2017 |
Foreign currency derivative gain (loss) |  | $ | 2 |  |  | $ | (32 | ) |  | $ | 3 |
Summary of Fair Values of Outstanding Foreign Currency Derivatives | The following table summarizes the fair values of the outstanding foreign currency derivatives as of September 30, 2019 and 2018 included in accounts receivable and accrued expenses and other liabilities of the Consolidated Balance Sheets.
(In millions) |  | 2019 |  |  | 2018 |
Foreign currency derivative assets |  | $ | 2 |  |  | $ | 11 |
Notional contract values |  |  | 271 |  |  |  | 1,209 |
Foreign currency derivative liabilities |  | $ | 2 |  |  | $ | 3 |
Notional contract values |  |  | 168 |  |  |  | 755 |

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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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