XML 38 R28.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Fair Value Measurements (Tables) | 3 Months Ended
--- | ---
Dec. 31, 2018
Fair Value Disclosures [Abstract] |
Summary of Financial Instruments Subject to Recurring Fair Value Measurements | The following table summarizes financial instruments subject to recurring fair value measurements as of December 31, 2018.
| Carrying |  |  | Total fair |  |  | Quoted prices in active markets for identical assets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
(In millions) | value |  |  | value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 149 |  |  | $ | 149 |  |  | $ | 149 |  |  | $ | — |  |  | $ | — |
Restricted investments (a) |  | 309 |  |  |  | 309 |  |  |  | 309 |  |  |  | — |  |  |  | — |
Deferred compensation investments (b) |  | 161 |  |  |  | 161 |  |  |  | — |  |  |  | 161 |  |  |  | — |
Investment of captive insurance company |  | 3 |  |  |  | 3 |  |  |  | 3 |  |  |  | — |  |  |  | — |
Foreign currency derivatives |  | 2 |  |  |  | 2 |  |  |  | — |  |  |  | 2 |  |  |  | — |
Total assets at fair value | $ | 624 |  |  | $ | 624 |  |  | $ | 461 |  |  | $ | 163 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency derivatives | $ | 1 |  |  | $ | 1 |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |
| (a) | Included in restricted investments is $30 million classified in the other current assets caption on the Condensed Consolidated Balance Sheets.
| (b) | Included in other noncurrent assets in the Condensed Consolidated Balance Sheets.
The following table summarizes financial asset instruments subject to recurring fair value measurements as of September 30, 2018.
| Carrying |  |  | Total fair |  |  | Quoted prices in active markets for identical assets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
(In millions) | value |  |  | value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 294 |  |  | $ | 294 |  |  | $ | 294 |  |  | $ | — |  |  | $ | — |
Restricted investments (a) |  | 342 |  |  |  | 342 |  |  |  | 342 |  |  |  | — |  |  |  | — |
Deferred compensation investments (b) |  | 165 |  |  |  | 165 |  |  |  | — |  |  |  | 165 |  |  |  | — |
Investment of captive insurance company |  | 3 |  |  |  | 3 |  |  |  | 3 |  |  |  | — |  |  |  | — |
Foreign currency derivatives |  | 11 |  |  |  | 11 |  |  |  | — |  |  |  | 11 |  |  |  | — |
Total assets at fair value | $ | 815 |  |  | $ | 815 |  |  | $ | 639 |  |  | $ | 176 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency derivatives | $ | 3 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 3 |  |  | $ | — |
| (a) | Included in restricted investments is $30 million classified in the other current assets caption on the Condensed Consolidated Balance Sheets.
| (b) | Included in other noncurrent assets in the Condensed Consolidated Balance Sheets.
Summary of Investment Portfolio | The following table provides a summary of the activity within the investment portfolio as of December 31, 2018 and September 30, 2018:
(In millions) | December 31 2018 |  |  | September 30 2018 |
Original cost | $ | 335 |  |  | $ | 335 |
Accumulated adjustments, net |  | (47 | ) |  |  | (38 | )
Adjusted cost, beginning of year (a) |  | 288 |  |  |  | 297 |
Investment income (b) |  | 3 |  |  |  | 8 |
Net unrealized gain |  | 24 |  |  |  | 54 |
Realized gains |  | — |  |  |  | 6 |
Settlement funds |  | 2 |  |  |  | 10 |
Disbursements |  | (8 | ) |  |  | (33 | )
Fair value | $ | 309 |  |  | $ | 342 |
| (a) | The accumulated adjustments include investment income, realized gains, disbursements and settlements recorded in previous periods.
| (b) | Investment income for the demand deposit includes interest income as well as dividend income transferred from the equity and corporate bond mutual funds.
The following table presents gross unrealized gains and losses for the restricted investment securities as of December 31, 2018 and September 30, 2018:
|  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(In millions) | Adjusted Cost |  |  | Unrealized Gain |  |  | Unrealized Loss |  |  | Fair Value |
As of December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand deposit | $ | 17 |  |  | $ | — |  |  | $ | — |  |  | $ | 17 |
Equity mutual fund |  | 148 |  |  |  | 30 |  |  |  | — |  |  |  | 178 |
Corporate bond mutual fund |  | 120 |  |  |  | — |  |  |  | (6 | ) |  |  | 114 |
Fair value | $ | 285 |  |  | $ | 30 |  |  | $ | (6 | ) |  | $ | 309 |
As of September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand deposit | $ | 20 |  |  | $ | — |  |  | $ | — |  |  | $ | 20 |
Equity mutual fund |  | 148 |  |  |  | 59 |  |  |  | — |  |  |  | 207 |
Corporate bond mutual fund |  | 120 |  |  |  | — |  |  |  | (5 | ) |  |  | 115 |
Fair value | $ | 288 |  |  | $ | 59 |  |  | $ | (5 | ) |  | $ | 342 |
Summary of Investment Income, Realized Gains and Disbursements Related to Investments | The following table presents the investment income, net unrealized gains and losses, realized gains and disbursements related to the investments within the portfolio for the three months ended December 31, 2018 and 2017.
| Three months ended |
| December 31 |
(In millions) | 2018 |  |  | 2017 |
Investment income | $ | 3 |  |  | $ | 2 |
Realized gains |  | — |  |  |  | 1 |
Net unrealized gains (losses) (a) |  | (30 | ) |  |  | 10 |
Disbursements |  | (8 | ) |  |  | (5 | )
| (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 current quarter, the net unrealized losses during the three months ended December 31, 2018 were recorded within the net interest and other financing expense caption in the Statements of Consolidated Comprehensive Income (Loss).
Summary of Net Gains and Losses on Foreign Currency Derivatives | The following table summarizes the net gains and losses recognized during the three months ended December 31, 2018 and 2017 within the Statements of Consolidated Comprehensive Income (Loss).
| Three months ended |
| December 31 |
(In millions) | 2018 |  |  | 2017 |
Foreign currency derivative gains (losses) | $ | 1 |  |  | $ | (11 | )
Summary of Fair Values of Outstanding Foreign Currency Derivatives | The following table summarizes the fair values of the outstanding foreign currency derivatives as of December 31, 2018 and September 30, 2018 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets.
| December 31 |  |  | September 30 |
(In millions) | 2018 |  |  | 2018 |
Foreign currency derivative assets | $ | 2 |  |  | $ | 11 |
Notional contract values |  | 399 |  |  |  | 1,209 |
Foreign currency derivative liabilities | $ | 1 |  |  | $ | 3 |
Notional contract values |  | 304 |  |  |  | 755 |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of investment income, including, but not limited to, interest and dividend income and amortization of discount (premium) derived from debt and equity securities. Excludes realized and unrealized gain (loss) on investments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.9) -URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 220 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-04.2) -URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.7(a),(b)) -URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.8) -URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227 + Details
Name: | us-gaap_InvestmentIncomeTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets. + References No definition available. + Details
Name: | us-gaap_MarketableSecuritiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19190-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the presentation of foreign exchange contracts on the statement of financial position, including the fair value amounts and location of such amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfForeignExchangeContractsStatementOfFinancialPositionTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration