Ashland determines its reportable segments based on how operations are managed internally for the products and services sold to customers, including how the results are reviewed by the chief operating decision maker, which includes determining resource allocation methodologies used for reportable segments. Operating income and EBITDA are the primary measures of performance that are reviewed by the chief operating decision maker in assessing each reportable segment's financial performance. Ashland does not aggregate operating segments to arrive at these reportable segments.

During the second quarter of fiscal year 2020, Ashland changed the manner in which it manages the business moving from a functionally led to a business led organization. This change recognizes that Ashland has a diverse portfolio of businesses with different value propositions for the markets Ashland serves. The organizational change allows Ashland to align its business models, resources and cost structure to the specific needs of each business and enables greater ownership and accountability for both short- and long-term performance. Ashland has realigned its segment reporting structure commensurate with this organizational change. As a result, Ashland’s five reportable segments include the consumer specialty businesses: Life Sciences and Personal Care & Household; the industrial specialty businesses: Specialty Additives and Performance Adhesives; and Intermediates and Solvents. Corporate includes corporate governance activities and certain legacy matters. The historical segment information has been recast to conform to the current segment structure.

Life Sciences is comprised of pharmaceuticals, nutrition, nutraceuticals, agricultural chemicals, advanced materials and fine chemicals. Pharmaceutical solutions include controlled release polymers, disintegrants, film coatings, solubilizers, and tablet binders. Nutrition solutions include thickeners, stabilizers, emulsifiers and additives for enhancing mouthfeel, controlling moisture migration, reducing oil uptake and controlling color. Nutraceutical solutions include products for weight management, joint comfort, stomach and intestinal health, sports nutrition and general wellness, and providing custom formulation, toll processing and particle engineering solutions. Customers include pharmaceutical, food, beverage, nutraceuticals and supplements manufacturers, hospitals and radiologists and industrial manufacturers.

Personal Care & Household is comprised of biofunctionals, preservatives, skin care, sun care, oral care, hair care and household. These businesses have a broad range of nature-based, biodegradable, and performance-enhancing ingredients for customer-driven solutions to help protect, renew, moisturize and revitalize skin and hair, and provide solutions for toothpastes, mouth washes and rinses, denture cleaning and care for teeth. Household supplies nature-derived rheology ingredients, biodegradable surface wetting agents, performance encapsulates, and specialty polymers for household, industrial and institutional cleaning products. Customers include formulators at large multinational branded consumer products companies and smaller, independent boutique companies.

Specialty Additives is comprised of rheology- and performance-enhancing additives serving the coatings, construction, energy, automotive and various industrial markets. Solutions include coatings additives for architectural paints, finishes and lacquers, cement- and gypsum- based dry mortars, ready-mixed joint compounds, synthetic plasters for commercial and residential construction, and specialty materials for industrial applications. Products include rheology modifiers (cellulosic and associative thickeners), foam-control agents, surfactants and wetting agents, pH neutralizers, advanced ceramics used in catalytic converters, and environmental filters, ingredients that aid the manufacturing process of ceramic capacitors, plasma display panels and solar cells, ingredients for textile printing, thermoplastic metals and alloys for welding. Products help improve desired functional outcomes through rheology modification and control, water retention, workability, adhesive strength, binding power, film formation, deposition and suspension and emulsification. Customers include global paint manufacturers, electronics and automotive manufacturers, textile mills, the construction industry, and welders.

Performance Adhesives is comprised of adhesives used in packaging, converting and structural applications. Packaging adhesives has an extensive line of pressure sensitive adhesives, functional coatings and primers combined with innovative technology solutions for narrow-, mid- and wide-web applications. Products meet stringent requirements in food and beverage safety, shipping, transportation, health and beauty, industrial, postage and security printing. Structural adhesives include light weighting vehicles and eliminating VOCs in buildings. Customers include converters of packaging materials, manufacturers of building materials and tier one suppliers to transportation industry.

Intermediates and Solvents is comprised of the production of 1,4 butanediol (BDO) and related derivatives, including n-methylpyrrolidone. These products are used as chemical intermediates in the production of engineering polymers and polyurethanes, and as specialty process solvents in a wide array of applications including electronics, pharmaceuticals, water filtration membranes and more. Butanediol is also provided to Life Sciences, Personal Care, and Specialty Additives for use as a raw material.

Unallocated and Other generally includes items such as certain significant company-wide restructuring activities, corporate governance costs and legacy costs or activities that relate to divested businesses that are no longer operated by Ashland.

Results of Ashland’s reportable segments are presented based on its management and internal accounting structure. The structure is specific to Ashland; therefore, the financial results of Ashland’s reportable segments are not necessarily comparable with similar information for other comparable companies. Ashland allocates all significant costs to its reportable segments except for certain significant company-wide restructuring activities, certain corporate governance costs and other costs or activities that relate to former businesses that Ashland no longer operates. The service cost component of pension and other postretirement benefits costs is allocated to each reportable segment on a ratable basis; while the remaining components of pension and other postretirement benefits costs are recorded within the other net periodic benefit income caption on the Statements of Consolidated Comprehensive Income (Loss). Ashland refines its expense allocation methodologies to the reportable segments from time to time as internal accounting practices are improved, more refined information becomes available and the industry or market changes. Significant revisions to Ashland’s methodologies are adjusted for all segments on a retrospective basis. This includes charges in the current fiscal year for certain corporate governance costs, which were previously allocated. These costs are now reflected in Unallocated and Other for all periods presented.

The following table presents various financial information for each reportable segment for the three and nine months ended June 30, 2020 and 2019.

	Three months ended						Nine months ended
	June 30						June 30
(In millions - unaudited)	2020			2019			2020			2019
SALES
Life Sciences	$	189		$	190		$	528		$	556
Personal Care & Household		155			158			451			495
Consumer Specialties		344			348			979			1,051
Specialty Additives		135			177			429			494
Performance Adhesives		70			88			229			258
Industrial Specialties		205			265			658			752
Intermediates and Solvents		37			41			102			118
Intersegment sales (a)
Intermediates and Solvents		(12	)		(13	)		(22	)		(37	)
	$	574		$	641		$	1,717		$	1,884
OPERATING INCOME (LOSS)
Life Sciences	$	40		$	32		$	97		$	88
Personal Care & Household		16			17			(309	)		60
Consumer Specialties		56			49			(212	)		148
Specialty Additives		15			19			(137	)		(5	)
Performance Adhesives		13			16			40			42
Industrial Specialties		28			35			(97	)		37
Intermediates and Solvents		7			8			(7	)		20
Unallocated and other		(43	)		(49	)		(87	)		(125	)
	$	48		$	43		$	(403	)	$	80
DEPRECIATION EXPENSE
Life Sciences	$	8		$	8		$	24		$	24
Personal Care & Household		10			10			30			30
Consumer Specialties		18			18			54			54
Specialty Additives		15			15			46			84
Performance Adhesives		4			4			10			11
Industrial Specialties		19			19			56			95
Intermediates and Solvents		4			3			10			8
Unallocated and other		—			—			—			3
	$	41		$	40		$	120		$	160

AMORTIZATION EXPENSE
Life Sciences	$	7		$	7		$	21		$	21
Personal Care & Household		9			10			27			28
Consumer Specialties		16			17			48			49
Specialty Additives		5			5			14			14
Performance Adhesives		—			—			1			1
Industrial Specialties		5			5			15			15
Intermediates and Solvents		—			—			—			1
	$	21		$	22		$	63		$	65
EBITDA (b) (c)
Life Sciences	$	55		$	47		$	142		$	133
Personal Care & Household		35			37			(252	)		118
Consumer Specialties		90			84			(110	)		251
Specialty Additives		35			39			(77	)		93
Performance Adhesives		17			20			51			54
Industrial Specialties		52			59			(26	)		147
Intermediates and Solvents		11			11			3			29
Unallocated and other		(43	)		(49	)		(83	)		(122	)
	$	110		$	105		$	(216	)	$	305

							June 30, 2020			September 30, 2019
TOTAL ASSETS
Life Sciences							$	1,979		$	1,946
Personal Care & Household								979			1,366
Consumer Specialties								2,958			3,312
Specialty Additives								1,642			1,775
Performance Adhesives								595			618
Industrial Specialties								2,237			2,393
Intermediates and Solvents								164			185
Unallocated and other								1,627			1,361
							$	6,986		$	7,251