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, unless a separate agreement has been entered into with a customer that supersedes the standard language.

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 right 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 are not material. Standalone selling prices are based on prices Ashland charges to customers, which in some cases is 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 amortization period 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.

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 $415 million and $435 million as of June 30, 2020 and September 30, 2019, respectively.

Ashland disaggregates its revenue by segment and geographical region as Ashland believes these categories best depict how management reviews the financial performance of its operations. See the following tables for details (intersegment sales eliminations have been excluded). See Note Q for additional information.

Sales by geography
	Three months ended				Nine months ended
	June 30				June 30
(In millions)	2020		2019		2020		2019
Life Sciences
North America	$	58	$	67	$	166	$	193
Europe		62		60		174		170
Asia Pacific		50		45		135		140
Latin America & other		19		18		53		53
	$	189	$	190	$	528	$	556

	Three months ended				Nine months ended
	June 30				June 30
(In millions)	2020		2019		2020		2019
Personal Care & Household
North America	$	42	$	44	$	133	$	135
Europe		65		68		190		217
Asia Pacific		28		28		74		83
Latin America & other		20		18		54		60
	$	155	$	158	$	451	$	495

	Three months ended				Nine months ended
	June 30				June 30
(In millions)	2020		2019		2020		2019
Specialty Additives
North America	$	50	$	59	$	148	$	165
Europe		48		68		157		180
Asia Pacific		29		42		97		120
Latin America & other		8		8		27		29
	$	135	$	177	$	429	$	494

	Three months ended				Nine months ended
	June 30				June 30
(In millions)	2020		2019		2020		2019
Performance Adhesives
North America	$	59	$	76	$	196	$	220
Europe		8		8		24		27
Asia Pacific		2		2		5		5
Latin America & other		1		2		4		6
	$	70	$	88	$	229	$	258

	Three months ended				Nine months ended
	June 30				June 30
(In millions)	2020		2019		2020		2019
Intermediates and Solvents
North America	$	21	$	28	$	59	$	78
Europe		6		5		17		16
Asia Pacific		8		7		21		20
Latin America & other		2		1		5		4
	$	37	$	41	$	102	$	118