XML 44 R22.htm IDEA: XBRL DOCUMENT
v3.19.2

Revenue | 9 Months Ended
--- | ---
Jun. 30, 2019
Revenue From Contract With Customer [Abstract] |
Revenue | NOTE O – REVENUE Effective October 1, 2018, Ashland adopted accounting guidance outlining a single comprehensive five step model for entities to use in accounting for revenue arising from contracts with customers (ASC 606 Revenue from Contracts with Customers). As a result of the adoption, there was no material impact to Ashland’s Condensed Consolidated Financial Statements. The additional disclosures that Ashland is required to disclose on an interim and annual basis are contained within this Note O. Revenue recognition Ashland’s revenue is measured as the amount of consideration it expects to receive in exchange for transferring goods or providing services and is recognized when performance obligations are satisfied under the terms of contracts with customers. Ashland generally utilizes standardized language for the terms of contracts within each purchase order, unless a separate agreement has been entered into with a customer that supersedes the standard language within the purchase order. A performance obligation is deemed to be satisfied by Ashland when control of the product or service is transferred to the customer. The transaction price of a contract, or the amount Ashland expects to receive upon satisfaction of all performance obligations, is determined by reference to the contract’s terms and includes adjustments, if applicable, for any variable consideration, such as volume discounts, rebates, refunds and rights to return. Where a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on the standalone selling price of each performance obligation, although these situations do not occur frequently and are generally not included within Ashland’s contracts. Any unsatisfied performance obligations were not material. Standalone selling prices are based on prices Ashland charges to customers, which in some cases are based on established market prices. Ashland generally collects the cash from its customers within 60 days of the product delivery date. Sales and other similar taxes collected from customers on behalf of third parties are excluded from the contract price. All of Ashland’s revenue is derived from contracts with customers, and nearly all contracts with customers contain one performance obligation for the transfer of goods where such performance obligation is satisfied at a point in time. Control of a product is deemed to be transferred to the customer generally upon shipment or delivery. Costs for shipping and handling activities, whether performed before or after the customer obtains control of the goods, are accounted for as fulfillment costs when not reimbursed. Costs incurred to obtain contracts with customers have historically not been significant and are expensed immediately as the period of performance is generally one year or less. Ashland records bad debt expense in specific situations when it is determined that the customer is unable to meet its financial obligation. Practical expedients Upon adoption, Ashland utilized the following applicable practical expedients, as permitted by ASC 606, Revenue from Contracts with Customers:
| • | Sales and other similar taxes collected from customers on behalf of third parties are excluded from the contract price; |
| • | Costs for shipping and handling activities, whether performed before or after the customer obtains control of the goods, are accounted for as fulfillment costs when not reimbursed; and |
| • | Costs incurred to obtain contracts with customers are expensed immediately when the amortization period is one year or less. |
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 $472 million and $482 million as of June 30, 2019 and September 30, 2018, respectively. Disaggregation of revenue Ashland disaggregates its revenue from contracts with customers by segment, geographical region and product category, as Ashland believes these categories best depict how management reviews the financial performance of its operations for the three and nine months ended June 30, 2018 and 2019. See the following tables for details:
Sales by geography |
(In millions) | Specialty Ingredients |  |  | Intermediates and Solvents |
Geography | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Three months ended June 30 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America | $ | 246 |  |  | $ | 253 |  |  | $ | 15 |  |  | $ | 14 |
Europe |  | 204 |  |  |  | 208 |  |  |  | 5 |  |  |  | 6 |
Asia Pacific |  | 117 |  |  |  | 121 |  |  |  | 7 |  |  |  | 9 |
Latin America & other |  | 46 |  |  |  | 56 |  |  |  | 1 |  |  |  | 1 |
| $ | 613 |  |  | $ | 638 |  |  | $ | 28 |  |  | $ | 30 |
Nine months ended June 30 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
North America | $ | 712 |  |  | $ | 733 |  |  | $ | 42 |  |  | $ | 42 |
Europe |  | 594 |  |  |  | 597 |  |  |  | 16 |  |  |  | 19 |
Asia Pacific |  | 348 |  |  |  | 339 |  |  |  | 20 |  |  |  | 23 |
Latin America & other |  | 149 |  |  |  | 165 |  |  |  | 3 |  |  |  | 4 |
| $ | 1,803 |  |  | $ | 1,834 |  |  | $ | 81 |  |  | $ | 88 |
Sales by product category |
(In millions) | 2019 |  |  |  | 2018 |
Three months ended June 30 |  |  |  |  |  |  |  |
Ashland Specialty Ingredients |  |  |  |  |  |  |  |
Cellulosics | $ | 219 |  |  |  | $ | 223 |
Poly-vinyl pyrrolidones |  | 108 |  |  |  |  | 110 |
Adhesives |  | 88 |  |  |  |  | 90 |
Actives |  | 36 |  |  |  |  | 36 |
Vinyl ethers |  | 25 |  |  |  |  | 39 |
Pharmachem |  | 59 |  |  |  |  | 55 |
Other |  | 78 |  |  |  |  | 85 |
| $ | 613 |  |  |  | $ | 638 |
Intermediates and Solvents |  |  |  |  |  |  |  |
Derivatives | $ | 22 |  |  |  | $ | 25 |
Butanediol |  | 6 |  |  |  |  | 5 |
| $ | 28 |  |  |  | $ | 30 |
Total | $ | 641 |  |  |  | $ | 668 |
Sales by product category |
(In millions) | 2019 |  |  |  | 2018 |
Nine months ended June 30 |  |  |  |  |  |  |  |
Ashland Specialty Ingredients |  |  |  |  |  |  |  |
Cellulosics | $ | 633 |  |  |  | $ | 616 |
Poly-vinyl pyrrolidones |  | 312 |  |  |  |  | 320 |
Adhesives |  | 259 |  |  |  |  | 259 |
Actives |  | 116 |  |  |  |  | 116 |
Vinyl ethers |  | 80 |  |  |  |  | 106 |
Pharmachem |  | 182 |  |  |  |  | 176 |
Other |  | 221 |  |  |  |  | 241 |
| $ | 1,803 |  |  |  | $ | 1,834 |
Intermediates and Solvents |  |  |  |  |  |  |  |
Derivatives | $ | 67 |  |  |  | $ | 73 |
Butanediol |  | 14 |  |  |  |  | 15 |
| $ | 81 |  |  |  | $ | 88 |
Total | $ | 1,884 |  |  |  | $ | 1,922 |

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

X
- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
Name: | us-gaap_RevenueFromContractWithCustomerTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration