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Fair Value Measurements (Tables) | 9 Months Ended
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Jun. 30, 2020
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, 2020.
|  | 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 |  | $ | 416 |  |  | $ | 416 |  |  | $ | 416 |  |  | $ | — |  |  | $ | — |
Restricted investments (a) |  |  | 327 |  |  |  | 327 |  |  |  | 327 |  |  |  | — |  |  |  | — |
Investment of captive insurance company (b) |  |  | 7 |  |  |  | 7 |  |  |  | 7 |  |  |  | — |  |  |  | — |
Foreign currency derivatives |  |  | 1 |  |  |  | 1 |  |  |  | — |  |  |  | 1 |  |  |  | — |
Total assets at fair value |  | $ | 751 |  |  | $ | 751 |  |  | $ | 750 |  |  | $ | 1 |  |  | $ | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency derivatives |  | $ | 2 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |
| (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, 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 |  | $ | 232 |  |  | $ | 232 |  |  | $ | 232 |  |  | $ | — |  |  | $ | — |
Restricted investments (a) |  |  | 334 |  |  |  | 334 |  |  |  | 334 |  |  |  | — |  |  |  | — |
Investment 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 is $24 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, 2020 and September 30, 2019:
(In millions) |  | June 30 2020 |  |  | September 30 2019 |
Original cost |  | $ | 335 |  |  | $ | 335 |
Accumulated adjustments, net (a) |  |  | (30 | ) |  |  | (47 | )
Adjusted cost, beginning of year |  |  | 305 |  |  |  | 288 |
Investment income (b) |  |  | 8 |  |  |  | 10 |
Net unrealized gain (c) |  |  | 37 |  |  |  | 29 |
Realized gains (c) |  |  | — |  |  |  | 32 |
Settlement funds |  |  | 3 |  |  |  | 7 |
Disbursements |  |  | (26 | ) |  |  | (32 | )
Fair value |  | $ | 327 |  |  | $ | 334 |
| (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 fixed income 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, 2020 and September 30, 2019:
|  |  |  |  |  | Gross |  |  | Gross |  |  |  |  |
(In millions) |  | Adjusted Cost |  |  | Unrealized Gain |  |  | Unrealized Loss |  |  | Fair Value |
As of June 30, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand deposit |  | $ | 10 |  |  | $ | — |  |  | $ | — |  |  | $ | 10 |
Equity mutual fund |  |  | 116 |  |  |  | 24 |  |  |  | (4 | ) |  |  | 136 |
Fixed income mutual fund |  |  | 166 |  |  |  | 15 |  |  |  | — |  |  |  | 181 |
|  | $ | 292 |  |  | $ | 39 |  |  | $ | (4 | ) |  | $ | 327 |
As of September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand deposit |  | $ | 9 |  |  | $ | — |  |  | $ | — |  |  | $ | 9 |
Equity mutual fund |  |  | 120 |  |  |  | 24 |  |  |  | (2 | ) |  |  | 142 |
Fixed income mutual fund |  |  | 176 |  |  |  | 7 |  |  |  | — |  |  |  | 183 |
|  | $ | 305 |  |  | $ | 31 |  |  | $ | (2 | ) |  | $ | 334 |
Summary of Investment Income, Net Gains and Losses Realized and Disbursements Related to Investments | The following table presents the investment income, net gains and losses realized and disbursements related to the investments within the portfolio for the three and nine months ended June 30, 2020 and 2019.
|  | Three months ended |  |  | Nine months ended |
|  | June 30 |  |  | June 30 |
(In millions) |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Investment income |  | $ | 2 |  |  | $ | 2 |  |  | $ | 8 |  |  | $ | 7 |
Net gains (losses) unrealized (a) |  |  | 31 |  |  |  | 6 |  |  |  | 9 |  |  |  | 3 |
Disbursements |  |  | (7 | ) |  |  | (5 | ) |  |  | (26 | ) |  |  | (25 | )
| (a) | Ashland determined that all unrealized gains and losses were related to securities with readily determinable fair values. Due to the new accounting guidance adopted in the first quarter of fiscal 2019, the net unrealized gains (losses) during the three months ended December 31, 2018 and forward were recorded within the net interest and other 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 and nine months ended June 30, 2020 and 2019 within the Statements of Consolidated Comprehensive Income (Loss).
|  | Three months ended |  |  | Nine months ended |
|  | June 30 |  |  | June 30 |
(In millions) |  | 2020 |  |  | 2019 |  |  | 2020 |  |  | 2019 |
Foreign currency derivative gains (losses) |  | $ | 1 |  |  | $ | (4 | ) |  | $ | 5 |  |  | $ | — |
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, 2020 and September 30, 2019 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets.
|  | June 30 |  |  | September 30 |
(In millions) |  | 2020 |  |  | 2019 |
Foreign currency derivative assets |  | $ | 1 |  |  | $ | 2 |
Notional contract values |  |  | 178 |  |  |  | 271 |
Foreign currency derivative liabilities |  | $ | 2 |  |  | $ | 2 |
Notional contract values |  |  | 149 |  |  |  | 168 |

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