XML 21 R12.htm IDEA: XBRL DOCUMENT
v3.22.1

Goodwill and Other Intangibles | 6 Months Ended
--- | ---
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangibles | NOTE G – GOODWILL AND OTHER INTANGIBLES Goodwill Ashland tests goodwill and other indefinite-lived intangible assets for impairment annually as of July 1 and when events and circumstances indicate an impairment may have occurred. Ashland tests goodwill and other indefinite-lived intangible assets for impairment by comparing the estimated fair value of the reporting units (for goodwill) and other indefinite-lived intangible assets to the related carrying value. If the carrying amount of a reporting unit or other indefinite-lived intangible asset exceeds its estimated fair value, Ashland records an impairment loss based on the difference between fair value and carrying amount, not to exceed the associated carrying amount of goodwill per reporting unit. N o indicators of impairment were identified in the three and six months ended March 31, 2022. Ashland’s assessment of an impairment on any of these assets classified currently as having indefinite lives, including goodwill, could change in future periods if significant events happen and/or circumstances change that effect the previously mentioned assumptions such as: a significant change in projected business results, a divestiture decision, increase in Ashland’s weighted-average cost of capital rates, decrease in growth rates or assumptions, economic deterioration that is more severe or of a longer duration than anticipated, or another significant economic event. The following is a progression of goodwill by reportable segment for the six months ended March 31, 2022.
| Life |  |  | Personal |  |  | Specialty |  |  |  |  |  |  |
(In millions) | Sciences |  |  | Care (a) |  |  | Additives (a) |  |  | Intermediates (a) |  |  | Total |
Balance at September 30, 2021 | $ | 856 |  |  | $ | 129 |  |  | $ | 445 |  |  | $ | — |  |  | $ | 1,430 |
Currency translation |  | (16 | ) |  |  | (3 | ) |  |  | (7 | ) |  |  | — |  |  |  | (26 | )
Balance at March 31, 2022 | $ | 840 |  |  | $ | 126 |  |  | $ | 438 |  |  | $ | — |  |  | $ | 1,404 |
(a) As of March 31, 2022 and September 30, 2021, there were accumulated impairments of $356 million, $174 million and $90 million related to the Personal Care, Specialty Additives and Intermediates reportable segments, respectively. Other intangible assets Intangible assets principally consist of trademarks and trade names, intellectual property and customer and supplier relationships. Intangible assets classified as finite are amortized on a straight-line basis over their estimated useful lives. The cost of trademarks and trade names is amortized principally over 3 to 25 years, intellectual property over 5 to 25 years, and customer and supplier relationships over 3 to 24 years. Ashland annually reviews, as of July 1, indefinite-lived intangible assets for possible impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No indicators of impairment were identified in the three and six months ended March 31, 2022. Intangible assets were comprised of the following as of March 31, 2022 and September 30, 2021.
| March 31, 2022 |
| Gross |  |  |  |  |  | Net |
| carrying |  |  | Accumulated |  |  | carrying |
(In millions) | amount |  |  | amortization |  |  | amount |
Definite-lived intangibles |  |  |  |  |  |  |  |
Trademarks and trade names | $ | 99 |  |  | $ | (35 | ) |  | $ | 64 |
Intellectual property |  | 744 |  |  |  | (516 | ) |  |  | 228 |
Customer and supplier relationships |  | 839 |  |  |  | (368 | ) |  |  | 471 |
Total definite-lived intangibles |  | 1,682 |  |  |  | (919 | ) |  |  | 763 |
Indefinite-lived intangibles |  |  |  |  |  |  |  |
Trademarks and trade names |  | 278 |  |  |  | — |  |  |  | 278 |
Total intangible assets | $ | 1,960 |  |  | $ | (919 | ) |  | $ | 1,041 |
| September 30, 2021 |
| Gross |  |  |  |  |  | Net |
| carrying |  |  | Accumulated |  |  | carrying |
(In millions) | amount |  |  | amortization |  |  | amount |
Definite-lived intangibles |  |  |  |  |  |  |  |
Trademarks and trade names | $ | 101 |  |  | $ | (32 | ) |  | $ | 69 |
Intellectual property |  | 750 |  |  |  | (495 | ) |  |  | 255 |
Customer and supplier relationships |  | 849 |  |  |  | (352 | ) |  |  | 497 |
Total definite-lived intangibles |  | 1,700 |  |  |  | (879 | ) |  |  | 821 |
Indefinite-lived intangibles |  |  |  |  |  |  |  |
Trademarks and trade names |  | 278 |  |  |  | — |  |  |  | 278 |
Total intangible assets | $ | 1,978 |  |  | $ | (879 | ) |  | $ | 1,099 |
Amortization expense recognized on intangible assets was $24 million and $22 million for the three months ended March 31, 2022 and 2021, respectively, and $47 million and $43 million for the six months ended March 31, 2022 and 2021, respectively, and is included in the intangibles amortization expense caption of the Statements of Consolidated Comprehensive Income (Loss). Estimated amortization expense for future periods is $95 million in 2022 (includes six months actual and six months estimated), $95 million in 2023, $81 million in 2024, $76 million in 2025 and $72 million in 2026. Actual amounts may change from such estimated amounts due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions and divestitures, potential impairment, accelerated amortization, or other events.

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

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration