XML 29 R23.htm IDEA: XBRL DOCUMENT v3.25.1
Reportable Segment Information
 6 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Reportable Segment Information

NOTE Q – REPORTABLE SEGMENT INFORMATION

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 (loss) and EBITDA (EBITDA is defined as net income (loss), plus income tax expense (benefit), net interest and other expense (income), and depreciation and amortization) 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 segments to arrive at these reportable segments.

Reportable segment business descriptions

Life Sciences is comprised of pharmaceuticals, nutrition, agricultural chemicals, diagnostic films (formerly known as advanced materials) and fine chemicals. Pharmaceutical solutions include controlled release polymers, disintegrants, tablet coatings, thickeners, solubilizers and tablet binders. Nutrition solutions include thickeners, stabilizers, emulsifiers and additives for enhancing mouthfeel, controlling moisture migration, reducing oil uptake and binding structured foods. Customers include pharmaceutical, food, beverage, hospitals and radiologists and industrial manufacturers. The Nutraceutical business was sold in August 2024.

Personal Care is comprised of biofunctionals, microbial protectants (preservatives), skin care, sun care, oral care, hair care and household. These businesses have a broad range of natural, nature-derived, biodegradable, and high-performance 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. Personal Care 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. The Avoca business was sold in March 2025.

Specialty Additives is comprised of rheology and performance-enhancing additives serving the architectural 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.

Intermediates 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 supplied 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.

Reportable segment results

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 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 loss caption of the Statements of Condensed 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 reportable segments on a retrospective basis.

The following table presents various financial information for each reportable segment:

 

Three months ended

 

 

Six months ended

 

 

March 31

 

 

March 31

 

(In millions - unaudited)

2025

 

 

2024

 

 

2025

 

 

2024

 

SALES

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

172

 

 

$

222

 

 

$

306

 

 

$

422

 

Personal Care

 

146

 

 

 

169

 

 

 

279

 

 

 

298

 

Specialty Additives

 

134

 

 

 

157

 

 

 

249

 

 

 

279

 

Intermediates

 

37

 

 

 

40

 

 

 

71

 

 

 

73

 

Intersegment sales(a)

 

(10

)

 

 

(13

)

 

 

(21

)

 

 

(24

)

$

479

 

 

$

575

 

 

$

884

 

 

$

1,048

 

OPERATING INCOME (LOSS)

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

28

 

 

$

50

 

 

$

42

 

 

$

82

 

Personal Care

 

28

 

 

 

25

 

 

 

39

 

 

 

28

 

Specialty Additives

 

7

 

 

 

(18

)

 

 

2

 

 

 

(50

)

Intermediates

 

(1

)

 

 

9

 

 

 

2

 

 

 

16

 

Unallocated and other(b)

 

(11

)

 

 

(45

)

 

 

(213

)

 

 

(72

)

 

$

51

 

 

$

21

 

 

$

(128

)

 

$

4

 

DEPRECIATION EXPENSE

 

 

 

 

 

 

 

 

 

 

 

Life Sciences(c)

$

22

 

 

$

11

 

 

$

31

 

 

$

20

 

Personal Care

 

7

 

 

 

9

 

 

 

15

 

 

 

17

 

Specialty Additives(d)

 

13

 

 

 

40

 

 

 

27

 

 

 

77

 

Intermediates

 

3

 

 

 

3

 

 

 

6

 

 

 

6

 

 

$

45

 

 

$

63

 

 

$

79

 

 

$

120

 

AMORTIZATION EXPENSE

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

4

 

 

$

5

 

 

$

8

 

 

$

12

 

Personal Care

 

8

 

 

 

11

 

 

 

19

 

 

 

22

 

Specialty Additives

 

3

 

 

 

4

 

 

 

5

 

 

 

6

 

Intermediates

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

$

15

 

 

$

20

 

 

$

32

 

 

$

40

 

EBITDA(e)

 

 

 

 

 

 

 

 

 

 

 

Life Sciences

$

54

 

 

$

66

 

 

$

81

 

 

$

114

 

Personal Care

 

43

 

 

 

45

 

 

 

73

 

 

 

67

 

Specialty Additives

 

23

 

 

 

26

 

 

 

34

 

 

 

33

 

Intermediates

 

2

 

 

 

12

 

 

 

8

 

 

 

22

 

Unallocated and other

 

(11

)

 

 

(45

)

 

 

(213

)

 

 

(72

)

 

$

111

 

 

$

104

 

 

$

(17

)

 

$

164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

 

September 30

 

(In millions - unaudited)

2025

 

 

2024

 

TOTAL ASSETS

 

 

 

 

 

Life Sciences

$

1,876

 

 

$

1,778

 

Personal Care

 

702

 

 

 

950

 

Specialty Additives

 

1,355

 

 

 

1,516

 

Intermediates

 

119

 

 

 

127

 

Unallocated and other

 

1,181

 

 

 

1,274

 

 

$

5,233

 

 

$

5,645

 

 

 

 

 

 

 
(a)
Intersegment sales from Intermediates are accounted for at prices that approximate fair value. All other intersegment sales are accounted for at cost.
(b)
Includes a $8 million gain on sale for the three and six months ended March 31, 2025 and a $183 million impairment charge for the six months ended March 31, 2025, both related to the sale of the Avoca business within income (loss) on acquisitions and divestitures, net caption of the Statements of Condensed Consolidated Income (Loss).
(c)
Depreciation includes accelerated depreciation of $13 million for Life Sciences for the three and six months ended March 31, 2025.
(d)
Depreciation includes accelerated depreciation of $27 million and $49 million for Specialty Additives for the three and six months ended March 31, 2024, respectively.
(e)
Excludes income (loss) from discontinued operations and other net periodic benefit loss. See the Statements of Condensed Consolidated Comprehensive Income (Loss) for applicable amounts excluded.