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Fair Value Measurements (Tables) | 9 Months Ended
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Jun. 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 June 30, 2019.
| Carrying |  |  | Total fair |  |  | Quoted prices in active markets for identical assets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
(In millions) | value |  |  | value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 132 |  |  | $ | 132 |  |  | $ | 132 |  |  | $ | — |  |  | $ | — |
Restricted investments (a) |  | 329 |  |  |  | 329 |  |  |  | 329 |  |  |  | — |  |  |  | — |
Deferred compensation investments (b) |  | 168 |  |  |  | 168 |  |  |  | — |  |  |  | 168 |  |  |  | — |
Investment of captive insurance company |  | 4 |  |  |  | 4 |  |  |  | 4 |  |  |  | — |  |  |  | — |
Foreign currency derivatives |  | 3 |  |  |  | 3 |  |  |  | — |  |  |  | 3 |  |  |  | — |
Total assets at fair value | $ | 636 |  |  | $ | 636 |  |  | $ | 465 |  |  | $ | 171 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency derivatives | $ | 3 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 3 |  |  | $ | — |
(a) Included in restricted investments is $19 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 June 30, 2019 and September 30, 2018:
(In millions) | June 30 2019 |  |  | September 30 2018 |
Original cost | $ | 335 |  |  | $ | 335 |
Accumulated adjustments, net |  | (47 | ) |  |  | (38 | )
Adjusted cost, beginning of year (a) |  | 288 |  |  |  | 297 |
Investment income (b) |  | 7 |  |  |  | 8 |
Net unrealized gain (c) |  | 31 |  |  |  | 54 |
Realized gains (c) |  | 26 |  |  |  | 6 |
Settlement funds |  | 2 |  |  |  | 10 |
Disbursements |  | (25 | ) |  |  | (33 | )
Fair value | $ | 329 |  |  | $ | 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.
| (c) | Presented under the original cost method.
The following table presents gross unrealized gains and losses for the restricted investment securities as of June 30, 2019 and September 30, 2018:
|  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(In millions) | Adjusted Cost |  |  | Unrealized Gain |  |  | Unrealized Loss |  |  | Fair Value |
As of June 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand deposit | $ | 161 |  |  | $ | — |  |  | $ | — |  |  | $ | 161 |
Equity mutual fund |  | 71 |  |  |  | 29 |  |  |  | — |  |  |  | 100 |
Corporate bond mutual fund |  | 66 |  |  |  | 2 |  |  |  | — |  |  |  | 68 |
Fair value | $ | 298 |  |  | $ | 31 |  |  | $ | — |  |  | $ | 329 |
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 and nine months ended June 30, 2019 and 2018.
| Three months ended |  |  | Nine months ended |
| June 30 |  |  | June 30 |
(In millions) | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Investment income | $ | 2 |  |  | $ | 2 |  |  | $ | 7 |  |  | $ | 6 |
Net unrealized gains (losses) (a) |  | 6 |  |  |  | 4 |  |  |  | 3 |  |  |  | 6 |
Realized gains (b) |  | — |  |  |  | — |  |  |  | — |  |  |  | 4 |
Disbursements |  | (5 | ) |  |  | (7 | ) |  |  | (25 | ) |  |  | (25 | )
| (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 three and nine months ended June 30, 2019 were recorded within the net interest and other expense (income) caption in the Statements of Consolidated Comprehensive Income (Loss). In 2018 these net unrealized gains (losses) were in AOCI.
| (b) | Relates only to the three and nine months ended June 30, 2018 prior to the adoption of the new accounting guidance for equity securities.
Summary of Net Gains and Losses on Foreign Currency Derivatives | The following table summarizes the net gains and losses recognized during the three and nine months ended June 30, 2019 and 2018 within the Statements of Consolidated Comprehensive Income (Loss).
| Three months ended |  |  | Nine months ended |
| June 30 |  |  | June 30 |
(In millions) | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Foreign currency derivative gains (losses) | $ | (4 | ) |  | $ | (9 | ) |  | $ | — |  |  | $ | (36 | )
Summary of Fair Values of Outstanding Foreign Currency Derivatives | The following table summarizes the fair values of the outstanding foreign currency derivatives as of June 30, 2019 and September 30, 2018 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets.
| June 30 |  |  | September 30 |
(In millions) | 2019 |  |  | 2018 |
Foreign currency derivative assets | $ | 3 |  |  | $ | 11 |
Notional contract values |  | 254 |  |  |  | 1,209 |
Foreign currency derivative liabilities | $ | 3 |  |  | $ | 3 |
Notional contract values |  | 297 |  |  |  | 755 |

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