Income from discontinued operations (net of tax) - Note E

105

(105)

(283)

133

255

Net income attributable to noncontrolling interest

114

(28)

^[2]

Net income (loss) attributable to Ashland

$ 114

$ 1

$ (29)

Basic earnings per share

Income from discontinued operations attributable to Ashland

$ 1.68

$ (1.69)

$ (4.51)

0.14

1.70

4.04

Net income (loss) attributable to Ashland

1.82

0.01

(0.47)

Diluted earnings per share

Income from discontinued operations attributable to Ashland

1.66

(1.69)

(4.51)

0.13

1.70

4.04

Net income (loss) attributable to Ashland

$ 1.79

$ 0.01

$ (0.47)

COMPREHENSIVE INCOME (LOSS)

Other comprehensive income (loss), net of tax

$ 114

$ 28

$ (28)

Unrealized translation gain (loss)

(82)

(14)

Pension and postretirement obligation adjustment

(4)

Net change in available-for-sale securities

Comprehensive income (loss)

(69)

120

(11)

Comprehensive income attributable to noncontrolling interest

Comprehensive income (loss) attributable to Ashland

$ 45

$ 93

$ (12)

[1]	During 2016, selling, general and administrative expense included an impairment charge of $181 million related to the Intermediates and Solvents reportable segment. See Note I for more information.
[2]	Represents the income attributable to the previous noncontrolling interest in Valvoline Inc., whose results are now included within discontinued operations. See Note B for more information.

Consolidated Balance Sheets - USD ($)
$ in Millions

Sep. 30, 2018

Sep. 30, 2017

Current assets

Property, plant and equipment - Note H

$ 294

$ 566

Accounts receivable

^[1]

681

612

Inventories - Note A

663

634

Other assets

Total current assets

1,712

1,903

Cost

3,847

3,762

Accumulated depreciation

1,948

1,792

Net property, plant and equipment

1,899

1,970

Goodwill - Note I

2,449

2,465

Intangibles - Note I

1,225

1,319

Restricted investments - Note G

312

302

Asbestos insurance receivable - Note O

179

209

Deferred income taxes - Note M

Other assets - Note K

448

422

Total noncurrent assets

6,540

6,715

Total assets

8,252

8,618

Current liabilities

Short-term debt - Note J

254

235

Accrued expenses and other liabilities

483

409

338

324

Total current liabilities

1,075

968

Noncurrent liabilities

Long-term debt - Note J

2,275

2,584

Asbestos litigation reserve - Note O

612

694

Deferred income taxes - Note M

279

375

Employee benefit obligations - Note N

179

191

Other liabilities - Note K

426

400

Total noncurrent liabilities

3,771

4,244

Commitments and contingencies - Notes L and O

Equity - Notes P and Q

Common stock, par value $.01 per share, 200 million shares authorized Issued 62 million shares in 2018 and 2017

Paid-in capital

946

931

Retained earnings

2,750

2,696

Accumulated other comprehensive loss

(291)

(222)

Total equity

3,406

Total liabilities and equity

$ 8,252

$ 8,618

[1]	Accounts receivable includes an allowance for doubtful accounts of $6 million and $9 million at September 30, 2018 and 2017, respectively.

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Current assets
Allowance for doubtful accounts	$ 6	$ 9
Stockholders' Equity
Common stock, shares authorized	200,000,000	200,000,000
Common stock, par value per share (usd per share)	$ 0.01	$ 0.01
Common stock, shares, issued	62,000,000	62,000,000

Statement of Consolidated Equity - USD ($)
$ in Millions

Total

Common stock [Member]

Paid-in capital [Member]

Retained earnings [Member]

Accumulated other comprehensive income (loss) [Member]

^[1]

Noncontrolling Interest [Member]

Balance at Sep. 30, 2015

$ 3,037

$ 1

$ 46

$ 3,281

$ (291)

Total comprehensive income (loss)

(28)

(29)

$ 1

^[2]

Dividends, ($1.56, $1.23, $0.95 per common share for 2016, 2017, 2018)

(97)

Common shares issued under stock incentive and other plans

^[3],[4]

Repurchase of common shares

^[5]

(500)

(49)

(451)

Valvoline Inc. initial public offering

^[2]

712

902

(7)

(183)

Balance at Sep. 30, 2016

3,165

923

2,704

(281)

(182)

^[2]

Total comprehensive income (loss)

^[2]

Dividends, ($1.56, $1.23, $0.95 per common share for 2016, 2017, 2018)

(77)

Common shares issued under stock incentive and other plans

^[3],[4]

Distribution of Valvoline Inc.

^[2]

187

(33)

152

Distributions to noncontrolling interest

(7)

^[2]

(4)

$ (4)

^[2]

Balance at Sep. 30, 2017

3,406

931

2,696

(222)

Total comprehensive income (loss)

114

Dividends, ($1.56, $1.23, $0.95 per common share for 2016, 2017, 2018)

(69)

(60)

Common shares issued under stock incentive and other plans

^[3],[4]

Balance at Sep. 30, 2018

$ 3,406

$ 1

$ 946

$ 2,750

$ (291)

[1]	At September 30, 2018 and 2017, the accumulated other comprehensive loss of $291 million and $222 million, respectively, was comprised of net unrealized translation losses of $328 million and $246 million, respectively, net unrealized gains on available for sale securities of $34 million and $21 million, respectively, and unrecognized prior service credits as a result of certain employee benefit plan amendments of $3 million for each period.
[2]	See Note B for discussion of the noncontrolling interest and the initial public offering and distribution of Valvoline Inc.
[3]	Common shares issued were 360,468, 42,861 and 417,584 for 2018, 2017 and 2016, respectively.
[4]	Includes income tax expense resulting from the exercise of stock options of $1 million in 2018 and income tax benefits of $4 million in both 2017 and 2016.
[5]	Common shares repurchased were 5,049,911 for 2016.

Statement of Consolidated Equity (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Statement Of Stockholders Equity [Abstract]
Dividend per common share	$ 0.95	$ 1.23	$ 1.56
Accumulated other comprehensive loss	$ (291)	$ (222)
Unrecognized prior service credits	3	3
Net unrealized translation loss	(328)	(246)
Available-for-sale securities unrealized gain	34	21
Income tax benefits resulting from the exercise of stock options	$ 1	$ 4	$ 4
Common shares issued (in shares)	360,468	42,861	417,584
Common shares repurchased (in shares)			5,049,911

Statement of Consolidated Cash Flows - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Cash flows provided (used) by operating activities from continuing operations

Income from discontinued operations (net of tax)

$ 114

$ 28

$ (28)

(9)

(133)

(255)

Adjustments to reconcile income from continuing operations to cash flows from operating activities

Depreciation and amortization

312

301

302

Original issue discount and debt issuance cost amortization

109

Deferred income taxes

(97)

(30)

(29)

Equity income from affiliates

(1)

Distributions from equity affiliates

Stock based compensation expense - Note Q

Excess tax benefits on stock based compensation

Loss on early retirement of debt

Realized gains and investment income on available-for-sale securities

^[1]

(14)

(11)

(8)

Net loss on acquisitions and divestitures - Notes C and D

Impairments

181

Pension contributions

(9)

(7)

(33)

Loss (gain) on pension and other postretirement plan remeasurements

(12)

142

Change in operating assets and liabilities

^[2]

(27)

Total cash flows provided by operating activities from continuing operations

344

273

385

Cash flows provided (used) by investing activities from continuing operations

Additions to property, plant and equipment

(185)

(199)

(231)

Proceeds from disposal of property, plant and equipment

Purchase of operations - net of cash acquired

(11)

(680)

Proceeds from sale of operations or equity investments

Life insurance payments

(37)

Net purchases of funds restricted for specific transactions

(10)

(2)

(4)

Reimbursement from restricted investments

Proceeds from sale of available-for-sale securities

Purchase of available-for-sale securities

(26)

(19)

(10)

Proceeds from the settlement of derivative instruments

Payments for the settlement of derivative instruments

(3)

(5)

Total cash flows used by investing activities from continuing operations

(202)

(829)

(177)

Cash flows provided (used) by financing activities from continuing operations

Proceeds from issuance of long-term debt

1,100

Repayment of long-term debt

(311)

(915)

(1,095)

Premium on long-term debt repayment

(17)

Proceeds from (repayment of) short-term debt

(156)

Repurchase of common stock

(500)

Debt issuance costs

(2)

(15)

Cash dividends paid

(60)

(77)

(97)

Stock based compensation employee withholding taxes paid in cash

(10)

(15)

(10)

Total cash flows provided (used) by financing activities from continuing operations

(368)

136

(1,858)

Cash used by continuing operations

(226)

(420)

(1,650)

Cash provided (used) by discontinued operations

Operating cash flows

(47)

110

293

Investing cash flows

(290)

(155)

Financing cash flows

(17)

1,451

Total cash provided (used) by discontinued operations

(47)

(197)

1,589

Effect of currency exchange rate changes on cash and cash equivalents

(5)

(8)

Decrease in cash and cash equivalents

(272)

(622)

(69)

Cash and cash equivalents - beginning of year

566

1,017

1,257

Change in cash and cash equivalents held by Valvoline

171

(171)

Cash and cash equivalents - end of year

294

566

1,017

Changes in assets and liabilities

Accounts receivable

(70)

(64)

Inventories

(29)

(23)

Other assets and liabilities

(99)

Change in operating assets and liabilities

^[2]

(27)

Supplemental disclosures

Interest paid

126

132

162

Income taxes paid

$ 77

$ 79

$ 108

[1]	Represents investment income related to the restricted investments discussed in Note G.
[2]	Excludes changes resulting from operations acquired or sold.

Significant Accounting Policies

12 Months Ended

Sep. 30, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Significant Accounting Policies

NOTE A – SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation and basis of presentation

On September 20, 2016, Ashland was reincorporated under the laws of the State of Delaware through a tax-free reorganization under a new holding company structure (the Reorganization). As a result of the Reorganization, Ashland Global Holdings Inc. replaced Ashland Inc. as the publicly held corporation and, through its subsidiaries, now conducts all of the operations that historically were conducted by Ashland Inc. Pursuant to the terms of the Reorganization, each outstanding share of Ashland common stock was automatically converted into one share of Ashland Global Holdings Inc. common stock. Following consummation of the Reorganization, (i) Ashland Inc. was converted into Ashland LLC, an indirect, wholly owned subsidiary of Ashland Global Holdings Inc., and (ii) Ashland Global Holdings Inc., as the new holding company, through its subsidiaries, conducts all of the operations conducted by Ashland Inc. immediately prior to the Reorganization. The Consolidated Financial Statements include the accounts of Ashland Global Holdings Inc. and its majority owned subsidiaries and, when applicable, entities for which Ashland has a controlling financial interest or is the primary beneficiary (Ashland). For entities for which Ashland has a controlling financial interest but owns less than 100%, the outside stockholders’ interests are shown as noncontrolling interests. Investments in joint ventures and 20% to 50% owned affiliates where Ashland has the ability to exert significant influence are accounted for under the equity method.

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and U.S. Securities and Exchange Commission (SEC) regulations. All intercompany transactions and balances have been eliminated. Additionally, certain prior period data, primarily related to discontinued operations, have been reclassified in the Consolidated Financial Statements and accompanying notes to conform to the current period presentation, as further described in this section.

On May 12, 2017, Ashland completed the distribution of its remaining 170 million shares of common stock of Valvoline Inc. which represented approximately 83% of the total outstanding shares of Valvoline Inc.'s common stock. This distribution of Valvoline represented a strategic shift in Ashland's business and, in accordance with U.S. GAAP, qualified as a discontinued operation. Accordingly, Valvoline's assets, liabilities, operating results and cash flows for all periods presented have been classified as discontinued operations within the Consolidated Financial Statements. See Note B for additional information on the separation of Valvoline Inc. The term Valvoline as used herein, depending on context, refers to either Valvoline Inc. or Valvoline as a previous reportable segment of Ashland.

Subsequent to completing the separation from Valvoline Inc., Ashland's operations are managed within the following three reportable segments: Specialty Ingredients, Composites and Intermediates and Solvents.

During the periods presented in the Consolidated Financial Statements, Ashland sold certain assets in its portfolio of businesses which, in accordance with U.S. GAAP, were not reflected as discontinued operations. See Notes D and R for additional information on these transactions as well as Ashland’s current reportable segment results.

Use of estimates, risks and uncertainties

The preparation of Ashland’s Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. Significant items that are subject to such estimates and assumptions include, but are not limited to, long-lived assets (including goodwill and other intangible assets), income taxes and liabilities and receivables associated with asbestos litigation and environmental remediation. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ significantly from the estimates under different assumptions or conditions.

Ashland’s results are affected by domestic and international economic, political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies and changes in the prices of certain key raw materials, can have a significant effect on operations. While Ashland maintains reserves for anticipated liabilities and carries various levels of insurance, Ashland could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings relating to asbestos, environmental remediation or other matters.

Cash and cash equivalents

Cash and cash equivalents include cash on hand and highly liquid investments maturing within three months after purchase.

Allowance for doubtful accounts

Ashland records an allowance for doubtful accounts as a best estimate of the amount of probable credit losses for accounts receivable. Ashland reviews this allowance and considers factors such as customer credit, past transaction history with the customer and changes in customer payment terms when determining whether the collection of a receivable is reasonably assured. Past due balances over 90 days and over a specified amount are reviewed individually for collectibility. The allowance for doubtful accounts is adjusted when it becomes probable a receivable will not be recovered.

A progression of activity in the allowance for doubtful accounts is presented in the following table.

(In millions)	2018			2017			2016
Allowance for doubtful accounts - beginning of year	$	9		$	10		$	7
Adjustments to net income		2			4			4
Reserves utilized		(5	)		(4	)		(2	)
Other changes		—			(1	)		1
Allowance for doubtful accounts - end of year	$	6		$	9		$	10

Inventories

Inventories are carried at the lower of cost or net realizable value. Inventories are primarily stated at cost using the weighted-average cost method. In addition, certain chemicals with a replacement cost of $124 million at September 30, 2018 and $108 million at September 30, 2017 are valued at cost using the last-in, first-out (LIFO) method.

The following summarizes Ashland’s inventories as of the Consolidated Balance Sheet dates.

(In millions)	2018			2017
Finished products	$	402		$	390
Raw materials, supplies and work in process		268			245
LIFO reserves		(7	)		(1	)
	$	663		$	634

A progression of activity in the inventory reserves, which reduce the amounts of finished products and raw materials, supplies and work in process reported, is presented in the following table.

(In millions)	2018			2017			2016
Inventory reserves - beginning of year	$	29		$	31		$	31
Adjustments to net income		5			6			6
Reserves utilized		(10	)		(8	)		(6	)
Inventory reserves - end of year	$	24		$	29		$	31

Property, plant and equipment

The cost of property, plant and equipment is depreciated by the straight-line method over the estimated useful lives of the assets. Buildings are depreciated principally over 12 to 35 years and machinery and equipment principally over 2 to 25 years. Such costs are periodically reviewed for recoverability when impairment indicators are present. Such indicators include, among other factors, operating losses, unused capacity, market value declines and technological obsolescence. Recorded values of asset groups of property, plant and equipment that are not expected to be recovered through undiscounted future net cash flows are written down to current fair value, which generally is determined from estimated discounted future net cash flows (assets held for use) or net realizable value (assets held for sale).

Goodwill and other intangibles

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 reviews goodwill for impairment based on its identified reporting units, which are defined as operating segments or groupings of businesses one level below the operating segment level. Ashland tests goodwill for impairment by comparing the carrying value to the estimated fair value of its reporting units.

In prior years, Ashland performed a quantitative goodwill impairment test and determined the fair value of its reporting units using a combination of discounted cash flow models and valuations based on earnings multiples for guideline public companies in each reporting unit’s industry peer group, when externally quoted market prices are not readily available. If this comparison indicates that a reporting unit’s estimated fair value is less than its carrying value, it is adjusted to its calculated fair value and the adjustment represents the impairment charge.

In the current year for its July 1, 2018 goodwill impairment test, Ashland performed an extensive qualitative analysis in order to determine whether it was necessary to perform a quantitative goodwill impairment test. In performing this analysis, Ashland considered relevant events and circumstances such as macroeconomic conditions, industry and market considerations, overall financial performance and changes in management and business strategy, changes in carrying value, among others. Ashland considered how these relevant events and circumstances have changed since its most recent quantitative goodwill impairment test performed in the prior year as of July 1, 2017. After weighting the significance of these factors, Ashland determined that it was more likely than not that the fair value of its reporting units exceeds the carrying value and that a quantitative impairment test was not necessary to perform.

Ashland tests its indefinite-lived intangible assets, principally trademarks and trade names. If the carrying value of an individual indefinite-lived intangible asset exceeds its fair value, such individual indefinite-lived intangible asset is written down by an amount equal to such excess. Similar to goodwill, Ashland first performs a qualitative analysis in order to determine whether it is necessary to perform a quantitative goodwill impairment test for the trademarks and trade names. If a quantitative analysis is deemed necessary, trademarks and trade names are valued using a “relief-from-royalty” valuation method compared to the carrying value. Significant assumptions inherent in the valuation methodologies include, but are not limited to, such estimates as future projected business results, growth rates, the weighted-average cost of capital for a market participant, and royalty and discount rates.

Finite-lived intangible assets principally consist of certain trademarks and trade names, intellectual property, and customer lists. These intangible assets 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 reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Ashland monitors these changes and events on at least a quarterly basis. For further information on goodwill and other intangible assets, see Note I.

Derivative instruments

Ashland regularly uses derivative instruments to manage its exposure to fluctuations in foreign currencies and certain commodities. All derivative instruments are recognized as either assets or liabilities on the balance sheet and are measured at fair value. Changes in the fair value of all derivatives are recognized immediately in the Statements of Consolidated Comprehensive Income (Loss) unless the derivative qualifies as a hedge of future cash flows or a hedge of a net investment in a foreign operation. Gains and losses related to an instrument that qualifies for hedge accounting are either recognized in the Statements of Consolidated Comprehensive Income (Loss) immediately to offset the gain or loss on the hedged item, or deferred and recorded in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income and subsequently recognized in the Statements of Consolidated Comprehensive Income (Loss) when the hedged item affects net income. The ineffective portion of the change in fair value of a hedge is recognized in income immediately. For additional information on derivative instruments, see Note G.

Restricted investments

On January 13, 2015, Ashland and Hercules LLC (formerly Hercules Incorporated), an indirect wholly-owned subsidiary of Ashland that was acquired in 2009, entered into a comprehensive settlement agreement related to certain insurance coverage for asbestos bodily injury claims with Underwriters at Lloyd’s, certain London companies and Chartis (AIG) member companies, along with National Indemnity Company and Resolute Management, Inc., under which Ashland and Hercules received a total of $398 million (the January 2015 asbestos insurance settlement). During 2015, Ashland placed $335 million of the settlement funds into a renewable annual trust that Ashland determined is restricted for the purpose of paying ongoing and future litigation defense and claim settlement costs incurred in conjunction with asbestos claims. These funds are presented primarily as noncurrent assets, with $30 million classified within other current assets in the Consolidated Balance Sheets as of September 30, 2018 and 2017.

As of September 30, 2018 and 2017, the funds within the trust had a balance of $342 million and $332 million, respectively, and were primarily invested in equity and corporate bond investments with a portion maintained in demand deposits. The funds within the trust are classified as available-for-sale securities. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of related deferred income taxes, included in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income. Interest income and realized gains and losses on the available-for-sale securities are reported in the net interest and other financing expense caption in the Statements of Consolidated Comprehensive Income (Loss). See Note G for additional information regarding fair value of these investments within the trust.

Revenue recognition

Sales generally are recognized when persuasive evidence of an arrangement exists, products are received or services are provided to customers, the sales price is fixed or determinable and collectibility is reasonably assured. For consignment inventory, title and risk of loss are transferred when the products have been consumed or used in the customer’s production process. The percentage of Ashland’s sales recognized from consignment inventory sales was 5% during 2018, and 6% during 2017 and 2016. Ashland reports all sales net of tax assessed by qualifying governmental authorities. Certain shipping and handling costs paid by the customer are recorded in sales, while those costs paid by Ashland are recorded in cost of sales.

In May 2014, the FASB issued accounting guidance effective on October 1, 2018 that will change Ashland’s policy and disclosure requirements for revenue recognition treatment. See the new accounting pronouncements section within this Note A for further information.

Expense recognition

Cost of sales include material and production costs, as well as the costs of inbound and outbound freight, purchasing and receiving, inspection, warehousing, internal transfers and all other distribution network costs. Selling, general and administrative expense includes sales and marketing costs, advertising, customer support, environmental remediation, corporate and divisional administrative and other costs. Advertising costs ($5 million in 2018 and $6 million in both 2017 and 2016) and research and development costs ($85 million in 2018, $83 million in 2017 and $87 million in 2016) are expensed as incurred.

Income taxes

Ashland is subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment in the forecasting of taxable income using historical and projected future operating results is required in determining Ashland’s provision for income taxes and the related assets and liabilities. The provision for income taxes includes income taxes paid, currently payable or receivable, and deferred taxes. Ashland recognizes the income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Ashland evaluates and adjusts these accruals based on changing facts and circumstances. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities, and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Deferred tax assets are also recognized for the estimated future effects of tax loss and credit carryforwards. The effect on deferred taxes of changes in tax rates is recognized in the period in which the enactment date occurs. Valuation allowances are established when necessary on a jurisdictional basis to reduce deferred tax assets to the amounts expected to be realized. In the event that the actual outcome of future tax consequences differs from Ashland’s estimates and assumptions due to changes or future events such as tax legislation, geographic mix of earnings, completion of tax audits or earnings repatriation plans, the resulting change to the provision for income taxes could have a material effect on the Statements of Consolidated Comprehensive Income (Loss) and Consolidated Balance Sheets. For additional information on income taxes, see Note M.

A progression of activity in the tax valuation allowances is presented in the following table.

(In millions)	2018			2017			2016
Tax valuation allowances - beginning of year	$	122		$	136		$	103
Adjustments to income tax expense (benefit)		(5	)		27			43
Reserves utilized		(38	)		(41	)		(10	)
Tax valuation allowances - end of year	$	79		$	122		$	136

Asbestos-related litigation

Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation (Riley) and the acquisition of Hercules in November 2008. Although Riley, a former subsidiary, was neither a producer nor a manufacturer of asbestos, its industrial boilers contained some asbestos-containing components provided by other companies. Hercules, an indirect wholly-owned subsidiary of Ashland, has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products sold by one of Hercules’ former subsidiaries to a limited industrial market.

Prior to 2018, Ashland retained Hamilton, Rabinovitz & Associates, Inc. (HR&A) to assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs given various assumptions. During 2018, Ashland transitioned these responsibilities to Nathan Associates, Inc. (Nathan). The processes and methodologies used by Nathan are consistent with the ones historically employed by HR&A. The methodology used by Nathan to project future asbestos costs is based largely on Ashland’s recent experience, including claim-filing and settlement rates, disease mix, enacted legislation, open claims, and litigation defense. Ashland’s claim experience is compared to the results of previously conducted epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, Nathan estimates a range of the number of future claims that may be filed, as well as the related costs that may be incurred in resolving those claims. From the range of estimates, Ashland records the amount it believes to be the best estimate of future payments for litigation defense and claim settlement costs. For additional information on asbestos-related litigation, see Note O.

Environmental remediation

Accruals for environmental remediation are recognized when it is probable a liability has been incurred and the amount of that liability can be reasonably estimated. Such costs are charged to expense if they relate to the remediation of conditions caused by past operations or are not expected to mitigate or prevent contamination from future operations. Liabilities are recorded at estimated cost values based on experience, assessments and current technology, without regard to any third-party recoveries and are regularly adjusted as environmental assessments and remediation efforts continue. For additional information on environmental remediation, see Note O.

Pension and other postretirement benefits

The funded status of Ashland’s pension and other postretirement benefit plans is recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at September 30, the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (PBO) and for the other postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation (APBO). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The measurement of the benefit obligation is based on Ashland’s estimates and actuarial valuations. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain key assumptions that require significant judgment, including, but not limited to, estimates of discount rates, expected return on plan assets, rate of compensation increases, interest rates and mortality rates. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. For additional information regarding plan assumptions and the current financial position of the pension and other postretirement plans, see Note N.

Ashland recognizes the change in the fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for a remeasurement. The remaining components of pension and other postretirement benefits expense are recorded ratably on a quarterly basis. Pension and other postretirement benefits adjustments charged directly to cost of sales that are applicable to inactive participants are excluded from inventoriable costs. 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 (costs) caption on the Statements of Consolidated Comprehensive Income (Loss).

Foreign currency translation

Operations outside the United States are measured primarily using the local currency as the functional currency. Upon consolidation, the results of operations of the subsidiaries and affiliates whose functional currency is other than the U.S. dollar are translated into U.S. dollars at the average exchange rates for the year while assets and liabilities are translated at year-end exchange rates. Consistent with U.S. GAAP standards, adjustments to translate assets and liabilities into U.S. dollars are recorded in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income and are included in net earnings only upon sale or substantial liquidation of the underlying foreign subsidiary or affiliated company.

Stock incentive plans

Ashland recognizes compensation expense for stock incentive plans awarded to key employees and directors, primarily in the form of stock appreciation rights (SARs), restricted stock and restricted stock units, performance shares and other non-vested stock awards, that are generally based upon the grant-date fair value over the appropriate vesting period. Ashland utilizes several industry accepted valuation models to determine the fair value. For further information concerning stock incentive plans, see Note Q.

Earnings per share

The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Earnings per share are reported under the treasury stock method. Stock options and SARs for each reported year whose grant price was greater than the market price of Ashland Common Stock at the end of each fiscal year were not included in the computation of loss from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was 0.7 million for 2018, 1.1 million for 2017 and 1.2 million for 2016.

(In millions except per share data)	2018		2017			2016
Numerator
Numerator for basic and diluted EPS -
Income (loss) from continuing operations, net of tax	$	105	$	(105	)	$	(283	)
Denominator
Denominator for basic EPS - Weighted-average
common shares outstanding		63		62			63
Share based awards convertible to common shares (a)		1		—			—
Denominator for diluted EPS - Adjusted weighted -
average shares and assumed conversions		64		62			63
EPS from continuing operations
Basic	$	1.68	$	(1.69	)	$	(4.51	)
Diluted		1.66		(1.69	)		(4.51	)

(a)	As a result of the loss from continuing operations for 2017 and 2016, the effect of the share-based awards convertible to common shares would be antidilutive. In accordance with U.S. GAAP, they have been excluded from the diluted EPS calculation.

New accounting pronouncements

Revenue recognition

In May 2014, the FASB issued accounting guidance outlining a single comprehensive five step model for entities to use in accounting for revenue arising from contracts with customers (ASC 606 Revenue from Contracts with Customers). The new guidance and subsequent amendments to it supersedes most current revenue recognition guidance, in an effort to converge the revenue recognition principles within U.S. GAAP. This new guidance also requires entities to disclose certain quantitative and qualitative information regarding the nature, amount, timing and uncertainty of qualifying revenue and cash flows arising from contracts with customers. Entities have the option of using a full retrospective or a modified retrospective approach to adopt the new guidance. This guidance became effective for Ashland on October 1, 2018.

Ashland formed an implementation team that evaluated the impact of the new standard on the Consolidated Financial Statements and the adoption method options available as well as the overall impact the new guidance will have on the organization. The assessment process consisted of categorizing Ashland’s revenue streams and reviewing the current internal accounting policies and practices to determine potential differences that would result from applying the requirements of the new standard to revenue contracts. Additional discussions and meetings with each revenue stream team occurred to solicit input, identify potential impacts and appropriate changes to Ashland’s business processes, systems and controls to support the revenue recognition and disclosure requirements under the new standard. Based on various assessments conducted, Ashland identified agreements with customers that contained elements of material rights and/or variable consideration. Ashland determined that these elements do not result in a material change to how revenue would be recognized for these agreements.

Ashland has elected to adopt this standard using the modified retrospective approach. Ashland has finalized its assessment of the standard and determined that the overall impact will not be material to the Consolidated Financial Statements but does expect there to be significant additional disclosures within the Notes to Consolidated Financial Statements moving forward. Further, Ashland does not expect a significant change to its internal controls or the manner and timing of recognizing revenue.

Leases

In February 2016, the FASB issued new accounting guidance related to lease transactions. The main objective of this guidance is to increase transparency and comparability among organizations by requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by leases and to disclose key information about leasing arrangements. The presentation of the Statements of Consolidated Comprehensive Income (Loss) and the Statements of Consolidated Cash Flows is largely unchanged under this guidance. This guidance retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the current accounting literature. The guidance will become effective for Ashland on October 1, 2019 and it will have a significant effect on Ashland’s Consolidated Balance Sheet and disclosures.

Ashland has formed an implementation team and is currently evaluating implementation options and quantifying the impact that this guidance will have within its Consolidated Financial Statements. In July 2018, the FASB amended this guidance to give entities the option to apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Ashland currently intends to utilize this transition method upon adopting the guidance.

Other pronouncements

In August 2018, the FASB issued guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Under the new guidance, the deferred implementation costs are amortized to expense over the term of the hosting arrangement. The term of the hosting arrangement includes the non-cancellable period of the cloud computing arrangement plus any optional renewal periods that are reasonably certain to be exercised by the customer. Additionally, an entity should present the capitalized implementation costs in the same line item that a prepayment for fees of the associated hosting arrangement are presented, and an entity should classify the cash flows from capitalized implementation costs in the same manner as the cash flows for the fees paid for the associated hosting arrangement. Ashland elected to early adopt this guidance immediately and apply it prospectively as permitted by the guidance. This guidance did not have a material impact on Ashland’s Consolidated Financial Statements during 2018.

In February 2018, the FASB issued guidance which permits entities to reclassify tax effects stranded in accumulated other comprehensive income (AOCI) as a result of U.S. tax reform legislation to retained earnings. Additionally, this guidance requires entities to disclose whether they made an election to reclassify the tax effects and to disclose their accounting policy for releasing income tax effects from AOCI. This guidance becomes effective for Ashland on October 1, 2019. Ashland is currently evaluating the impact this guidance may have on Ashland’s Consolidated Financial Statements.

In August 2017, the FASB issued accounting guidance amending the existing hedge accounting model to simplify various hedge documentation requirements while also expanding hedging abilities for certain nonfinancial and financial risk components. This guidance will become effective for Ashland on October 1, 2019. Ashland is currently evaluating the impact this guidance may have on Ashland's Consolidated Financial Statements.

In March 2017, the FASB issued accounting guidance that changes how employers who sponsor defined benefit pension and/or postretirement benefit plans present the net periodic benefit cost in the Statement of Consolidated Comprehensive Income. This guidance requires employers to present the service cost component of net periodic benefit cost in the same caption within the Statement of Consolidated Comprehensive Income (Loss) as other employee compensation costs from services rendered during the period. All other components of the net periodic benefit cost will be presented separately outside of the operating income caption. This guidance must be applied retrospectively. Ashland elected to early adopt this guidance on October 1, 2017, which resulted in a reclassification of $4 million and $77 million from the selling, general and administrative expense and cost of sales captions to the other net periodic benefit income (costs) caption in the Statement of Consolidated Comprehensive Income (Loss) for 2017 and 2016, respectively. The components of net periodic benefit income (costs) reclassified primarily relate to interest cost, expected return on assets, curtailments, settlements and actuarial gains and losses. Ashland did not have to adjust the classification of service cost since it previously was recorded within the caption required by the new guidance. See Note K for additional information on net periodic benefit income (costs).

In January 2017, the FASB issued accounting guidance which simplifies the subsequent measurement of goodwill by eliminating the second step of the two-step impairment test under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The guidance instead requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value. Ashland elected to early adopt this guidance in conjunction with its annual assessment of goodwill performed as of July 1, 2017.

In March 2016, the FASB issued new accounting guidance for certain aspects of share-based payments to employees. This guidance requires all excess tax benefits and tax deficiencies related to share-based payments to be recognized as income tax expense in the Statements of Consolidated Comprehensive Income (Loss) instead of additional paid in capital, and changes the classification of excess tax benefits from a financing activity to an operating activity within the statement of cash flows. This guidance also allows entities to make an accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. In addition, this guidance increases the amount an employer can withhold to cover income taxes on awards and still qualify for equity classification and requires that cash paid by an employer when directly withholding shares for tax-withholding purposes be classified as a financing activity within Statements of Consolidated Cash Flows. The guidance became effective for Ashland and was adopted on October 1, 2017. The guidance specifically related to the Statements of Consolidated Comprehensive Income (Loss) was adopted prospectively while the guidance related to the Statements of Consolidated Cash Flows was adopted retrospectively, as required by the guidance. Additionally, Ashland made a policy election to account for forfeitures when they occur across all share-based awards. Upon adoption, the overall impact on Ashland's Consolidated Financial Statements was not significant.

In January 2016, the FASB issued accounting guidance related to the recognition and measurement as well as the presentation and disclosures for certain financial instruments. Most notably, the guidance requires entities to measure equity investments at fair value and to recognize any changes in fair value in net income rather than accumulated other comprehensive income. The guidance does not change the recognition and measurement of investments in debt securities or loans. As a result of the implementation of this guidance, unrealized gains and losses from Ashland’s available-for-sale equity securities will be recorded within the Statements of Consolidated Comprehensive Income (Loss) instead of the accumulated other comprehensive income section of equity within the Consolidated Balance Sheets. The impact of implementing this new guidance could have a significant impact on Ashland’s Statements of Consolidated Comprehensive Income (Loss) in prospective periods depending on the fluctuations of unrealized gains and losses within the available-for-sale equity securities portfolio. The guidance will become effective for Ashland on October 1, 2018. For further information on Ashland’s available-for-sale investment securities see Note G.

Valvoline

12 Months Ended

Sep. 30, 2018

Discontinued Operations And Disposal Groups [Abstract]

Valvoline

NOTE B – VALVOLINE

Ashland Separation of Valvoline

On September 22, 2015, Ashland announced that the Board of Directors approved proceeding with a plan to separate Ashland into two independent, publicly traded companies comprising of the new Ashland (now known as Ashland Global Holdings Inc.) and Valvoline Inc. The initial step of the separation, the initial public offering (IPO) of Valvoline Inc., closed on September 28, 2016. As discussed further within the Final Separation section of this Note B, Ashland completed the distribution of its remaining shares in Valvoline Inc. on May 12, 2017. The new Ashland is a premier global leader in providing specialty chemical solutions to customers in a wide range of consumer and industrial markets. Key markets and applications include adhesives, architectural coatings, automotive, construction, energy, food and beverage, nutraceuticals, personal care and pharmaceutical.

After completing the IPO on September 28, 2016 and before the distribution of its remaining shares on May 12, 2017, Ashland owned 170 million shares of Valvoline Inc.’s common stock which represented approximately 83% of the total outstanding shares of Valvoline Inc.’s common stock. As a result, Ashland continued to consolidate Valvoline within the Consolidated Financial Statements up until the distribution of the remaining shares. The resulting outside stockholders’ interests in Valvoline Inc., which were approximately 17%, was presented separately as a noncontrolling interest within Ashland’s equity in the Consolidated Balance Sheets up until the distribution of the remaining shares. The amount of consolidated net income attributed to these previous minority holders is presented as a separate caption on the Statements of Consolidated Comprehensive Income (Loss) for 2017 and 2016.

Final Separation

Ashland completed the distribution of its remaining 170 million shares of common stock of Valvoline Inc. as a pro rata dividend on shares of Ashland common stock outstanding at the close of business on the record date of May 5, 2017. Based on the shares of Ashland common stock outstanding as of May 5, 2017, the record date for the distribution, each share of Ashland common stock received 2.745338 shares of Valvoline common stock in the distribution. The distribution was recorded at the carrying amount of Valvoline Inc.'s net assets which was a deficit of $187 million as of May 12, 2017, as follows:

	May 12
(In millions)	2017
ASSETS
Current assets
Cash		179
Accounts receivable, net		385
Inventories		153
Other current assets		24
Total current assets		741
Noncurrent assets
Net property, plant and equipment		357
Goodwill		329
Equity and other unconsolidated investments		31
Deferred income taxes		391
Other noncurrent assets		93
Total noncurrent assets		1,201
Total assets	$	1,942
LIABILITIES AND EQUITY
Current liabilities
Short-term debt		75
Current portion of long-term debt		16
Trade and other payables		353
Other current liabilities		34
Total current liabilities		478
Noncurrent liabilities
Long-term debt		662
Employee benefit obligations		826
Other long-term liabilities		163
Total noncurrent liabilities		1,651
Total liabilities	$	2,129
Net deficit	$	(187	)

A Tax Matters Agreement between Ashland and Valvoline Inc. governs the rights and obligations after the separation regarding certain income taxes and other taxes, including certain tax liabilities and benefits, attributes, returns and contests.

Discontinued Operations Assessment

Valvoline met the criteria to qualify as a discontinued operation and accordingly, its operating results and cash flows have been classified as discontinued operations within the Consolidated Financial Statements. See Note E for more information.

In 2016, certain indirect corporate costs included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) that were previously allocated to the Valvoline reportable segment do not qualify for classification within discontinued operations and continue to be reported as selling, general and administrative expense within continuing operations on a consolidated basis and within the Unallocated and other segment. These costs were $22 million during 2016.

Costs of transaction

Ashland recognized separation costs of $10 million, $95 million and $88 million during 2018, 2017 and 2016, respectively, which were primarily related to transaction, consulting and legal fees. During 2017 and 2016, $13 million and $7 million, respectively, of the separation costs directly related to Valvoline were included within the discontinued operations caption of the Statements of Consolidated Comprehensive Income (Loss). Otherwise, separation costs are primarily recorded within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss).

Acquisitions

12 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Acquisitions

NOTE C – ACQUISITIONS

Pharmachem

On May 17, 2017, Ashland completed its acquisition of the stock of Pharmachem Laboratories, Inc. (Pharmachem), a leading provider of quality ingredients to the global health and wellness industries and high-value differentiated products to fragrance and flavor houses. At the acquisition date, Pharmachem had approximately $300 million in annual revenues and 14 manufacturing facilities located in the United States and Mexico. New Jersey-based Pharmachem develops, manufactures and supplies custom and branded nutritional and fragrance products. Ashland has included Pharmachem within the Specialty Ingredients reporting segment.

Purchase price allocation

The acquisition was recorded by Ashland using the purchase method of accounting in accordance with U.S. GAAP whereby the total purchase price was allocated to tangible and intangible assets and liabilities acquired based on respective fair values. Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The factors contributing to the recognition of goodwill were based on strategic benefits that are expected to be realized from the acquisition. None of the goodwill is expected to be deductible for income tax purposes.

The all-cash purchase price of Pharmachem was $680 million which included working capital adjustments of approximately $20 million. Ashland incurred $5 million of transaction costs during 2017 related to the acquisition, which was recorded within the net loss on acquisitions and divestitures caption in the Statement of Consolidated Comprehensive Income (Loss). The purchase price allocation was finalized during 2018 and the following table summarizes the values of the assets acquired and liabilities assumed at the date of acquisition.

	At
	May 17, 2017
Purchase price allocation (in millions)	As Adjusted
Assets:
Accounts receivable		52
Inventory		74
Other current assets		4
Intangible assets		330
Goodwill		288
Property, plant and equipment		94
Other noncurrent assets		17
Liabilities:
Accounts payable		(33	)
Deferred tax - net		(132	)
Other noncurrent liabilities		(14	)
Total purchase price	$	680

Subsequent adjustments to initial purchase price allocation

During the September 2017 quarter, Ashland updated certain valuations and reserve estimates as part of the purchase accounting process and procedures. As a result of these updates, Ashland increased the intangible assets associated with the purchase by $18 million. The remaining updates to the Consolidated Balance Sheet during the September 2017 quarter related to certain liabilities that in total, along with the intangible assets impact, increased goodwill by $11 million. These adjustments did not have a significant effect on the Statement of Consolidated Comprehensive Income (Loss) during 2017.

During 2018, there were subsequent adjustments of $6 million to deferred tax liabilities, $3 million to property, plant and equipment, $3 million to other noncurrent assets and $1 million to accounts payable. The combined impact of these adjustments resulted in an increase to goodwill of $1 million. These adjustments did not have a significant effect on the Statement of Consolidated Comprehensive Income (Loss) during 2018.

Intangible assets identified

The purchase price allocation included $330 million of certain definite-lived intangible assets which are being amortized over the estimated useful life in proportion to the economic benefits consumed. The determination of the useful lives is based upon various industry studies, historical acquisition experience, economic factors, and future cash flows of the combined company. In addition, Ashland reviewed certain technological trends and also considered the current Pharmachem customer base.

The following details the total intangible assets identified as of May 17, 2017.

			Weighted-average
			amortization period
Intangible asset type (in millions)	Value		(years)
Trademarks and trade names	$	26		15
Intellectual property		68		22
Customer and supplier relationships		236		20
Total	$	330

Impact on operating results

The results of Pharmachem’s operations have been included in Ashland’s Consolidated Financial Statements since the May 17, 2017 closing date. The following table provides sales and operating income from the acquired Pharmachem operations included in Ashland’s 2017 results.

Pharmachem results of operations
(In millions)	2017 (a)
Sales	$	104
Operating income		7

(a)	Amounts represent the sales and results of operations for the period May 17, 2017 through September 30, 2017, the period for which Pharmachem was owned during 2017.

The following unaudited pro forma information for 2017 and 2016 assumes the acquisition of Pharmachem occurred at the beginning of the respective periods presented.

Unaudited pro forma information
(In millions)	2017		2016
Sales	$	3,434	$	3,321
Net income (loss)		31		(27	)

These amounts have been calculated after applying Ashland’s accounting policies and adjusting the results of Pharmachem to reflect the additional depreciation, amortization and interest expense that would have been charged assuming the fair value adjustments to tangible and intangible assets, and the related debt incurred had been applied on October 1, 2015, together with an estimate of the various tax effects.

The unaudited pro forma information presented above is for illustrative purposes only and does not purport to be indicative of the results of future operations of Ashland or the results that would have been attained had the operations been combined during the periods presented.

Vornia Limited

In January 2018, Ashland completed the acquisition of Vornia Limited for $12 million, of which $1 million will be paid in future periods. Vornia Limited’s principal activity is the design, development and fabrication of customized biomaterial solutions. The purchase price allocation primarily included $8 million of intellectual property and $4 million of goodwill and has been included within the Specialty Ingredients reportable segment.

Divestitures

12 Months Ended

Sep. 30, 2018

Divestitures [Abstract]

Divestitures

NOTE D – DIVESTITURES

Specialty Ingredients Facility

During 2017, Ashland committed to a plan to reorganize certain operations within the Specialty Ingredients reportable segment resulting in the closure of a manufacturing facility that was previously operational. As a result of this closure, Ashland recorded accelerated depreciation of $13 million for the remaining value of the machinery and equipment related to this facility, as well as an additional $1 million reserve for employee costs associated with the facility closure during 2017.

During 2018, Ashland entered into a definitive sale agreement to sell the facility and recognized a loss of $2 million before tax. The loss was reported within the net loss on acquisitions and divestitures caption within the Statement of Consolidated Comprehensive Income (Loss) for 2018.

Ashland determined this transaction did not qualify for discontinued operations treatment since it did not represent a strategic shift that had or will have a major effect on Ashland’s operations and financial results.

Specialty Ingredients Joint Venture

During September 2016, Ashland entered into a definitive sale agreement to sell its ownership interest in a Specialty Ingredients consolidated joint venture. Ashland recognized a loss of $12 million before tax in 2016 to recognize the assets at fair value less cost to sell, using Level 2 nonrecurring fair value measurements.

During 2017, Ashland completed the transfer of its ownership interest in the joint venture and recognized an additional loss of $4 million primarily related to a license fee and tax adjustments.

The losses in 2017 and 2016 were reported within the net loss on acquisitions and divestitures caption within the Statements of Consolidated Comprehensive Income (Loss).

Discontinued Operations

12 Months Ended

Sep. 30, 2018

Discontinued Operations

NOTE E – DISCONTINUED OPERATIONS

In previous periods, Ashland has divested certain businesses that have qualified as discontinued operations. The operating results from these divested businesses and subsequent adjustments related to ongoing assessments and activities of certain retained liabilities and tax items have been recorded within the discontinued operations caption in the Statements of Consolidated Comprehensive Income (Loss) for all periods presented and are discussed further within this note.

As previously discussed in Notes A and B, Ashland completed the distribution of its remaining 170 million shares of common stock of Valvoline Inc. on May 12, 2017. Ashland determined that the Valvoline separation qualified as a discontinued operation, in accordance with U.S. GAAP, since it represents a strategic shift for Ashland and has a major effect on Ashland's operations and financial results. Accordingly, Valvoline's operating results and cash flows for all periods presented have been classified as discontinued operations within the Consolidated Financial Statements. The activity during 2018 generally represents subsequent adjustments that were made in conjunction with the Tax Matters Agreement.

Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result primarily from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation (Riley), a former subsidiary, which qualified as a discontinued operation and from the acquisition during 2009 of Hercules LLC (formerly Hercules Incorporated), an indirect wholly-owned subsidiary of Ashland. Adjustments to the recorded litigation reserves and related insurance receivables are recorded within the discontinued operations caption. See Note O for more information related to the adjustments on asbestos liabilities and receivables.

During 2014, Ashland completed the sale of the Ashland Water Technologies (Water Technologies) business. Ashland determined that this sale qualified as a discontinued operation, in accordance with U.S. GAAP, since Ashland does not have significant continuing involvement in the Water Technologies business. Ashland has made subsequent adjustments to the discontinued operations caption related to the sale.

During 2011, Ashland completed the sale of substantially all of the assets and certain liabilities of its global distribution business, which previously comprised the Ashland Distribution (Distribution) reportable segment. Ashland determined that this sale qualified as a discontinued operation, in accordance with U.S. GAAP, since Ashland does not have significant continuing involvement in the Distribution business. Ashland has made subsequent adjustments to the discontinued operations caption related to the sale.

Due to the ongoing assessment of certain matters associated with previous divestitures, subsequent adjustments to these divestitures may continue in future periods in the discontinued operations caption in the Statements of Consolidated Comprehensive Income (Loss). Components of amounts reflected in the Statements of Consolidated Comprehensive Income (Loss) related to discontinued operations are presented in the following table for each of the years ended September 30.

(In millions)	2018			2017			2016
Income (loss) from discontinued operations
Valvoline	$	(1	)	$	240		$	444
Asbestos-related litigation		14			(31	)		(37	)
Water Technologies		—			1			7
Distribution		(11	)		(5	)		(2	)
Income before taxes		2			205			412
Income tax benefit (expense)
Benefit (expense) related to income (loss) from discontinued operations
Valvoline		—			(81	)		(158	)
Asbestos-related litigation		(1	)		6			7
Water Technologies		3			1			(7	)
Distribution		5			2			1
Income from discontinued operations (net of taxes)	$	9		$	133		$	255

Valvoline Separation

The following table presents a reconciliation of the captions within Ashland's Statements of Consolidated Income for the income from discontinued operations attributable to Valvoline for each of the years ended September 30.

(In millions)	2017 (a)			2016
Income from discontinued operations attributable to Valvoline
Sales	$	1,237		$	1,929
Cost of sales		(750	)		(1,168	)
Selling, general and administrative expense		(234	)		(314	)
Research and development expense		(8	)		(13	)
Equity and other income		17			20
Operating income of discontinued operations		262			454
Net loss on acquisitions and divestitures		—			(1	)
Net interest and other financing expense		(22	)		(9	)
Pretax income of discontinued operations		240			444
Income tax expense		(81	)		(158	)
Income from discontinued operations	$	159		$	286

(a)	Results in 2017 reflect activity through May 12, 2017 when Valvoline was fully separated, as previously discussed.

Restructuring Activities

12 Months Ended

Sep. 30, 2018

Restructuring And Related Activities [Abstract]

Restructuring Activities

NOTE F – RESTRUCTURING ACTIVITIES

Ashland periodically implements company-wide restructuring programs related to acquisitions, divestitures and other cost reduction programs in order to enhance profitability through streamlined operations and an improved overall cost structure.

Severance costs

During 2018, Ashland announced and initiated a company-wide restructuring program as a result of ongoing strategic asset plans and activities. As part of this restructuring program, Ashland announced a voluntary severance offer (VSO) to certain qualifying employees that were formally approved during 2018. Additionally, during 2018, an involuntary program for employees was also initiated as part of the restructuring program. The VSO and involuntary programs resulted in expense of $36 million being recognized during 2018, which was primarily recorded within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss). As of September 30, 2018, the severance reserve for the company-wide restructuring program was $36 million.

Facility costs

Ashland incurred $9 million of lease abandonment charges during 2018 due to the exit from certain office facilities in conjunction with the company-wide restructuring program. The costs related to this reserve were recorded within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) and will be paid over the remaining lease terms. As of September 30, 2018, the remaining restructuring reserve for all qualifying facility costs totaled $7 million.

The following table details at September 30, 2018, the amount of restructuring reserves related to the programs discussed above, and the related activity in these reserves during 2018. The severance reserves and facility cost reserves were primarily included in accrued expenses and other liabilities in the Consolidated Balance Sheet as of September 30, 2018.

(In millions)	Severance costs		Facility costs			Total
Balance as of September 30, 2017	$	—	$	—		$	—
Reserve adjustments		36		9			45
Utilization (cash paid)		—		(2	)		(2	)
Balance as of September 30, 2018	$	36	$	7		$	43

Impairments

During 2018, Ashland incurred $16 million of asset impairment charges primarily related to restructuring activities which were recorded within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss). Of these impairment charges, $12 million was related to the sale of an office facility. Consistent with historical policies and U.S. GAAP provisions, Ashland recognized the building at fair value using Level 2 nonrecurring fair value measurements.

Fair Value Measurements

12 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE G – FAIR VALUE MEASUREMENTS

As required by U.S. GAAP, Ashland uses applicable guidance for defining fair value, the initial recording and periodic remeasurement of certain assets and liabilities measured at fair value and related disclosures for instruments measured at fair value. Fair value accounting guidance establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). An instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows.

Level 1 – Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect Ashland’s own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include Ashland’s own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment.

For assets that are measured using quoted prices in active markets (Level 1), the total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs (Level 2) are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability. For all other assets and liabilities for which unobservable inputs are used (Level 3), fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models that Ashland deems reasonable.

The following table summarizes financial instruments subject to recurring fair value measurements as of September 30, 2018. For additional information on fair value hierarchy measurements of pension plan asset holdings, see Note N.

					Quoted prices
					in active		Significant
					markets for		other		Significant
					identical		observable		unobservable
	Carrying		Total fair		assets		inputs		inputs
(In millions)	value		value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	294	$	294	$	294	$	—	$	—
Restricted investments (a)		342		342		342		—		—
Deferred compensation investments (b)		165		165		—		165		—
Investments of captive insurance company (b)		3		3		3		—		—
Foreign currency derivatives		11		11		—		11		—
Total assets at fair value	$	815	$	815	$	639	$	176	$	—

Liabilities
Foreign currency derivatives	$	3	$	3	$	—	$	3	$	—

(a)	Included in restricted investments and $30 million within other current assets in the Consolidated Balance Sheets.

(b)	Included in other noncurrent assets in the Consolidated Balance Sheets.

The following table summarizes financial instruments subject to recurring fair value measurements as of September 30, 2017.

					Quoted prices
					in active		Significant
					markets for		other		Significant
					identical		observable		unobservable
	Carrying		Total fair		assets		inputs		inputs
(In millions)	value		value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	566	$	566	$	566	$	—	$	—
Restricted investments (a)		332		332		332		—		—
Deferred compensation investments (b)		158		158		—		158		—
Investments of captive insurance company (b)		3		3		3		—		—
Foreign currency derivatives		2		2		—		2		—
Total assets at fair value	$	1,061	$	1,061	$	901	$	160	$	—

Liabilities
Foreign currency derivatives	$	36	$	36	$	—	$	36	$	—

(a)	Included in restricted investments and $30 million within other current assets in the Consolidated Balance Sheets.

(b)	Included in other noncurrent assets in the Consolidated Balance Sheets.

Restricted investments

As discussed in Note A, Ashland maintains certain investments in a company restricted renewable annual trust for the purpose of paying future asbestos indemnity and defense costs. The investments are designated as available-for-sale securities, classified as Level 1 measurements within the fair value hierarchy. These securities were classified primarily as noncurrent restricted investment assets, with $30 million classified within other current assets, in the Consolidated Balance Sheets. The following table provides a summary of the activity within the available-for-sale securities portfolio as of September 30, 2018 and 2017:

(In millions)	2018			2017
Original cost	$	335		$	335
Accumulated adjustments, net		(38	)		(24	)
Adjusted cost, beginning of year (a)		297			311
Investment income (b)		8			9
Net unrealized gain		54			35
Realized gain		6			2
Settlement funds		10			2
Disbursements		(33	)		(27	)
Fair value	$	342		$	332

(a)	The adjusted cost of the demand deposit includes accumulated investment income, realized gains, disbursements and settlements recorded in previous periods.

(b)	Investment income relates to the demand deposit and includes interest income as well as dividend income transferred from the equity and corporate bond mutual funds.

The following table presents gross unrealized gains and losses for the available-for-sale securities as of September 30, 2018 and 2017:

			Gross		Gross
(In millions)	Adjusted Cost		Unrealized Gain		Unrealized Loss			Fair Value
As of September 30, 2018
Demand Deposit	$	20	$	—	$	—		$	20
Equity Mutual Fund		148		59		—			207
Corporate bond Mutual Fund		120		—		(5	)		115
Fair value	$	288	$	59	$	(5	)	$	342

As of September 30, 2017
Demand Deposit	$	9	$	—	$	—		$	9
Equity Mutual Fund		168		34		—			202
Corporate bond Mutual Fund		120		1		—			121
Fair value	$	297	$	35	$	—		$	332

The unrealized gains and losses as of September 30, 2018 and 2017 were recognized within accumulated other comprehensive income (AOCI). No other-than-temporary impairment was recognized in AOCI during 2018 and 2017.

The following table presents the investment income, realized gains and disbursements related to the investments within the portfolio during 2018, 2017 and 2016.

(In millions)	2018			2017			2016
Investment income	$	8		$	9		$	8
Realized gains		6			2			—
Disbursements		(33	)		(27	)		(33	)

Deferred compensation investments

Deferred compensation investments consist of Level 2 measurements within the fair value hierarchy which are comprised primarily of a guaranteed interest fund, a common stock index fund and an intermediate investment grade bond fund. Gains and losses related to deferred compensation investments are immediately recognized within the selling, general and administrative expense caption on the Statements of Consolidated Comprehensive Income (Loss). The gains on these investments were $10 million, $11 million and $10 million during 2018, 2017 and 2016, respectively.

Foreign currency derivatives

Ashland conducts business in a variety of foreign currencies. Accordingly, Ashland regularly uses foreign currency derivative instruments to manage exposure on certain transactions denominated in foreign currencies to curtail potential earnings volatility effects of certain assets and liabilities, including short-term inter-company loans denominated in currencies other than Ashland’s functional currency of an entity. These derivative contracts generally require exchange of one foreign currency for another at a fixed rate at a future date and generally have maturities of less than twelve months. All contracts are valued at fair value with net changes in fair value recorded within the selling, general and administrative expense caption. The impacts of these contracts were largely offset by gains and losses resulting from the impact of changes in exchange rates on transactions denominated in non-functional currencies. The following table summarizes the gains and losses recognized during 2018, 2017 and 2016 within the Statements of Consolidated Comprehensive Income (Loss).

(In millions)		2018				2017				2016
Foreign currency derivative gain (loss)		$	(32	)		$	3			$	6

The following table summarizes the fair values of the outstanding foreign currency derivatives as of September 30, 2018 and 2017 included in accounts receivable and accrued expenses and other liabilities of the Consolidated Balance Sheets.

(In millions)	2018		2017
Foreign currency derivative assets	$	11	$	2
Notional contract values		1,209		79

Foreign currency derivative liabilities	$	3	$	36
Notional contract values		755		1,601

Other financial instruments

At September 30, 2018 and 2017, Ashland’s long-term debt (including current portion and excluding debt issuance cost discounts) had a carrying value of $2,307 million and $2,615 million, respectively, compared to a fair value of $2,372 million and $2,768 million, respectively. The fair values of long-term debt are based on quoted market prices or, if market prices are not available, the present values of the underlying cash flows discounted at Ashland’s incremental borrowing rates, which are deemed to be Level 2 measurements within the fair value hierarchy.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

12 Months Ended

Sep. 30, 2018

Property, Plant and Equipment

NOTE H – PROPERTY, PLANT AND EQUIPMENT

The following table describes the various components of property, plant and equipment within the Consolidated Balance Sheets.

(In millions)	2018			2017
Land	$	159		$	150
Buildings		603			547
Machinery and equipment		2,880			2,840
Construction in progress		205			225
Total property, plant and equipment (gross)		3,847			3,762
Accumulated depreciation		(1,948	)		(1,792	)
Total property, plant and equipment (net)	$	1,899		$	1,970

The following table summarizes various property, plant and equipment charges included within the Statements of Consolidated Comprehensive Income.

(In millions)	2018		2017		2016
Depreciation	$	217	$	219	$	226
Capitalized interest		—		1		1

Accelerated Depreciation

During 2018 and 2017, the termination of a contract at a manufacturing facility resulted in $6 million and $1 million, respectively, of accelerated depreciation for the remaining value of the related machinery and equipment. These charges related to the Specialty Ingredients reportable segment and were recorded within the equity and other income (loss) caption of the Statements of Consolidated Comprehensive Income (Loss).

During 2017, Ashland committed to a plan to reorganize certain operations which resulted in the closure of a manufacturing facility that was previously operational. Due to this closure, depreciation included $13 million of accelerated depreciation for the remaining value of this facility primarily related to machinery and equipment. See Note D for additional information related to this facility. This charge related to the Specialty Ingredients reportable segment and was recorded within the cost of sales caption of the Statement of Consolidated Comprehensive Income (Loss) for 2017.

During 2016, depreciation included $4 million of accelerated depreciation related to the restructuring plan of an existing manufacturing facility. This charge related to the Specialty Ingredients reportable segment and was recorded within the cost of sales caption of the Statement of Consolidated Comprehensive Income (Loss) for 2016.

During 2018, 2017 and 2016, depreciation also included $8 million, $5 million and $2 million, respectively, of accelerated depreciation within Unallocated and other and was recorded within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income.

Goodwill and Other Intangibles

12 Months Ended

Sep. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

NOTE I – GOODWILL AND OTHER INTANGIBLES

Goodwill

Ashland reviews goodwill for impairment annually or when events and circumstances indicate an impairment may have occurred. This annual assessment is performed as of July 1 and consists of Ashland determining each reporting unit’s current fair value compared to its current carrying value. Ashland determined that its reporting units for the allocation of goodwill are its three reportable segments: Specialty Ingredients, Composites and Intermediates and Solvents.

As part of the goodwill impairment assessment, Ashland compares the carrying value of each reporting unit to its respective estimated fair value. For its July 1, 2018 annual goodwill impairment assessment, Ashland performed an extensive qualitative analysis in order to determine whether it was necessary to perform a quantitative goodwill impairment test. In performing this analysis, Ashland considered relevant events and circumstances such as macroeconomic conditions, industry and market considerations, overall financial performance and changes in management and business strategy, changes in carrying value, among others. Ashland considered how these relevant events and circumstances have changed since its most recent quantitative goodwill impairment test performed in the prior year as of July 1, 2017. After weighting the significance of these factors, Ashland determined that it was more likely than not that the fair value of its reporting units exceeds the current carrying value and that a quantitative impairment test was not necessary to perform. Thus, Ashland concluded no impairment existed for any of its reporting units for its July 1, 2018 annual assessment.

During 2016, due to the deterioration in the butanediol commodity in which Intermediates and Solvents operates, Ashland determined that the carrying value of the Intermediates and Solvents reporting unit exceeded its fair value at July 1, 2016 which resulted in the reporting unit failing the first step of the goodwill impairment test. Ashland then performed the second step of the goodwill impairment test, which involved, among other things, obtaining third-party appraisals of substantially all of Intermediates and Solvents tangible and intangible assets. Based on the results of its goodwill impairment testing as of July 1, 2016, Ashland recorded a pre-tax goodwill impairment charge of $171 million in the fourth quarter of 2016, which in addition to a $10 million impairment related to Intermediates and Solvents property, plant and equipment, resulted in a total $181 million impairment charge for Intermediates and Solvents during 2016. A portion of the goodwill impairment was nondeductible for tax purposes.

Ashland’s assessment of an impairment charge on any of these remaining assets currently classified as having indefinite lives, including goodwill, could result in additional impairment charges in future periods if any or all of the following events were to occur with respect to a particular reporting unit: 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 other 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 years ended September 30, 2018 and 2017.

	Specialty						Intermediates
(In millions)	Ingredients			Composites			and Solvents		(a)	Total
Balance at September 30, 2016	$	1,991		$	147		$	—		$	2,138
Acquisition (b)		287			—			—			287
Currency translation		37			3			—			40
Balance at September 30, 2017		2,315			150			—			2,465
Acquisition (c)		5			—			—			5
Currency translation		(16	)		(5	)		—			(21	)
Balance at September 30, 2018	$	2,304		$	145		$	—		$	2,449

(a)	As of September 30, 2018 and 2017, there was accumulated impairment of $171 million related to the Intermediates and Solvents reportable segment.

(b)	Relates to the acquisition of Pharmachem during 2017. See Note C for more information.

(c)	Relates to the acquisition of Vornia Limited and subsequent adjustments to the initial purchase price allocation of Pharmachem during 2018. See Note C for more information.

Other intangible assets

Intangible assets principally consist of trademarks and trade names, intellectual property, and customer 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.

As of September 30, 2018 and 2017, certain intangible assets within trademarks and tradenames were classified as indefinite-lived and had a balance of $301 million. Ashland annually reviews indefinite-lived intangible assets for possible impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. In conjunction with the July 1, 2018 annual assessment of indefinite-lived intangible assets, Ashland’s qualitative and/or quantitative analysis did not indicate any impairment for indefinite-lived intangible assets. Intangible assets were comprised of the following as of September 30, 2018 and 2017.

	2018							2017
	Gross					Net		Gross					Net
	carrying		Accumulated			carrying		carrying		Accumulated			carrying
(In millions)	amount		amortization			amount		amount		amortization			amount
Definite-lived intangible assets
Trademarks and trade names	$	67	$	(25	)	$	42	$	67	$	(22	)	$	45
Intellectual property		759		(373	)		386		757		(326	)		431
Customer and supplier relationships		770		(274	)		496		777		(235	)		542
Total definite-lived intangible assets		1,596		(672	)		924		1,601		(583	)		1,018

Indefinite-lived intangible assets
Trademarks and trade names		301		—			301		301		—			301
Total intangible assets	$	1,897	$	(672	)	$	1,225	$	1,902	$	(583	)	$	1,319

Amortization expense recognized on intangible assets was $95 million for 2018, $82 million for 2017 and $76 million for 2016, and is primarily included in the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income. As of September 30, 2018, all of Ashland’s intangible assets that had a carrying value were being amortized except for certain trademarks and trade names that have been determined to have indefinite lives. Estimated amortization expense for future periods is $91 million in 2019, $89 million in 2020, $89 million in 2021, $88 million in 2022 and $88 million in 2023. The amortization expense for future periods is an estimate. 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.

Debt

12 Months Ended

Sep. 30, 2018

Other Noncurrent Assets And Liabilities [Abstract]

Debt

NOTE J – DEBT

The following table summarizes Ashland’s current and long-term debt at September 30, 2018 and 2017.

(In millions)	2018			2017
4.750% notes, due 2022	$	1,083		$	1,082
Term loan B, due 2024		593			599
6.875% notes, due 2043		376			376
Term loan A, due 2022		195			250
Accounts receivable securitizations		195			56
6.50% junior subordinated notes, due 2029		52			51
Revolving credit facility		25			173
Medium-term notes, due 2019, interest of 9.4% at September 30, 2018		5			5
Term loan A, due 2020		—			250
Other (a)		5			(23	)
Total debt		2,529			2,819
Short-term debt (includes current portion of long-term debt)		(254	)		(235	)
Long-term debt (less current portion and debt issuance costs)	$	2,275		$	2,584

(a)	Other includes $21 million and $25 million of debt issuance costs as of September 30, 2018 and 2017, respectively. Additionally, as of September 30, 2018, other included a European short-term loan facility with an outstanding balance of $23 million.

At September 30, 2018, Ashland’s total debt had an outstanding principal balance of $2,600 million, discounts of $50 million and debt issuance costs of $21 million. The scheduled aggregate maturities of long-term debt for the next five fiscal years (including the current portion and excluding debt issuance costs) are as follows: $11 million in 2019, $19 million in 2020, $56 million in 2021, $1,224 million in 2022 and $6 million in 2023.

Credit Agreements and Refinancing

2017 Credit Agreement

On May 17, 2017, in conjunction with the closing of the Pharmachem acquisition, Ashland entered into a secured credit agreement (the 2017 Credit Agreement) with a group of lenders. The 2017 Credit Agreement provided for (i) a $250 million three-year term loan A facility (the Three-Year TLA Facility), (ii) a $250 million five-year term loan A facility (the Five-Year TLA Facility and together with the Three-Year TLA Facility, the TLA Facilities) and (iii) a $680 million five-year revolving credit facility (including a $125 million letter of credit sublimit) (the 2017 Revolving Credit Facility). Proceeds of borrowings under the TLA Facilities were used solely to finance the acquisition of Pharmachem, while the proceeds of the 2017 Revolving Credit Facility were used to finance, in part, the acquisition of Pharmachem, to refinance the 2015 Senior Credit Agreement and for general corporate purposes. On May 19, 2017, Ashland entered into Amendment No. 1 to the 2017 Credit Agreement, which increased the aggregate commitments under the 2017 Revolving Credit Facility from $680 million to $800 million.

At Ashland’s option, loans issued under the 2017 Credit Agreement bear interest at either LIBOR or an alternate base rate, in each case plus the applicable interest rate margin. Loans bear interest at LIBOR plus 1.75% per annum, in the case of LIBOR borrowings, or at the alternate base rate plus 0.75%, in the alternative, through and including the date of delivery of a quarterly compliance certificate and thereafter the interest rate will fluctuate between LIBOR plus 1.375% per annum and LIBOR plus 2.500% per annum (or between the alternate base rate plus 0.375% per annum and the alternate base rate plus 1.500% per annum), based upon Ashland’s secured facilities ratings or the consolidated net leverage ratio (as defined in the 2017 Credit Agreement) (whichever yields a lower applicable interest rate margin) at such time. In addition, Ashland was required to pay fees of 0.25% per annum on the daily unused amount of the 2017 Revolving Credit Facility through and including the date of delivery of a compliance certificate, and thereafter the fee fluctuates between 0.175% and 0.40% per annum, based upon Ashland’s secured facilities rating or the consolidated net leverage ratio (whichever yields a lower applicable rate). The TLA Facilities may be prepaid at any time without premium. The Three-Year TLA Facility will not amortize and had a due date of May 17, 2020. The Five-Year TLA Facility will not amortize in each of the first, second and third years and will amortize at a rate of 20% per annum in each of the fourth and fifth years (payable in equal quarterly installments), with the outstanding balance of the Five-Year TLA Facility to be paid on May 17, 2022.

On June 14, 2017, Ashland entered into Amendment No. 2 to the 2017 Credit Agreement, which provided for a new $600 million seven-year senior secured term loan B facility (the 2017 TLB Facility). At Ashland’s option, loans issued under the 2017 TLB Facility bear interest at either (x) LIBOR plus 2.00% per annum or (y) an alternate base rate plus 1.00% per annum. The 2017 TLB Facility may be prepaid at any time. The 2017 TLB Facility amortizes at a rate of 1.00% per annum (payable in equal quarterly installments) with the outstanding balance to be paid on May 17, 2024.

Ashland incurred $15 million of new debt issuance costs in connection with the 2017 Credit Agreement, of which $2 million was expensed immediately during 2017 within the net interest and other financing expense caption of the Statements of Consolidated Comprehensive Income (Loss). The remaining balance is amortized using the effective interest method. Additionally, as a result of the termination of the 2015 Senior Credit Agreement, Ashland recognized a $5 million charge for the accelerated amortization of previously capitalized debt issuance costs during 2017, which is included in the net interest and other financing expense caption of the Statements of Consolidated Comprehensive Income (Loss).

The credit facilities under the 2017 Credit Agreement are guaranteed by Ashland Global Holdings Inc., Ashland Chemco Inc. and Ashland LLC's existing and future subsidiaries (other than certain immaterial subsidiaries, joint ventures, special purpose financing subsidiaries, regulated subsidiaries, foreign subsidiaries and certain other subsidiaries) and are secured by a first-priority security interest in substantially all of the personal property assets of Ashland and the guarantors, including all or a portion of the equity interests of certain of Ashland’s domestic subsidiaries and first-tier foreign subsidiaries and, in certain cases, a portion of the equity interests of other foreign subsidiaries. The guarantees by Ashland’s subsidiaries and pledge of security interests by such guarantors may, at Ashland’s option, be released upon and during the occurrence of a Collateral Release Event (as defined in the 2017 Credit Agreement).

2018 financing activity related to the 2017 Credit Agreement

On May 22, 2018, Ashland entered into Amendment No. 3 to the 2017 Credit Agreement which provided for the re-pricing of the 2017 TLB Facility. Due to this amendment, loans issued under the 2017 TLB Facility bear interest at LIBOR plus 1.75% per annum (previously LIBOR plus 2.00% per annum). All other significant terms of the agreement remained unchanged. Ashland incurred $1 million of new debt issuance costs in connection with the re-pricing, which was expensed during 2018 within the net interest and other financing expense caption of the Statements of Consolidated Comprehensive Income (Loss).

During 2018, Ashland utilized cash primarily from repatriations and borrowings from the accounts receivable securitization facilities to fully repay the $250 million outstanding balance of the Three-Year TLA Facility and to repay $55 million of the Five-Year TLA Facility. As a result of these repayments, Ashland recognized accelerated amortization of previously capitalized debt issuance costs of less than $1 million during 2018, which was included in the net interest and other financing expense caption of the Statements of Consolidated Comprehensive Income (Loss).

Senior notes refinancing, 2015 Senior Credit Agreement and 2016 Amendment

During July 2016, Ashland amended its previous credit agreement (the 2015 Senior Credit Agreement) to permit the Reorganization and series of events relating to the separation of Valvoline Inc. As a result of the July 2016 amendment and the Valvoline debt borrowings in connection with the separation, Ashland reduced its revolving borrowing capacity to $800 million. The outstanding balance of a previous term loan facility (the 2015 Term Loan Facility) was repaid in full in connection with the combined Ashland and Valvoline financing activities during September 2016. In connection with these transactions, Ashland recognized a $6 million charge for the accelerated amortization of previously capitalized debt issuance costs, which is included in the net interest and other financing expense caption of the Statements of Consolidated Comprehensive Income (Loss) in 2016.

Debt repayments and repurchases

Cash repatriation

During 2018, Ashland repatriated approximately $590 million in cash that was primarily used to repay existing debt, principally the 2017 Revolving Credit Facility and the outstanding balance of the Three-Year TLA Facility (as previously discussed).

Redemption of 3.875% notes due 2018

During 2017, Ashland redeemed all of its outstanding 3.875% senior notes due 2018 (2018 Senior Notes), of which approximately $659 million were outstanding. Proceeds of borrowings under the 2017 TLB Facility, together with cash on hand, were used to pay for the redemption. Ashland recognized a $13 million charge related to premiums paid and accelerated amortization of previously capitalized debt issuance costs during 2017, which is included in the net interest and other financing expense caption of the Statement of Consolidated Comprehensive Income (Loss).

Open market repurchases of 4.750% notes due 2022 and 3.875% notes due 2018

During 2017, Ashland executed open market repurchases of its 4.750% notes due 2022 (2022 Senior Notes) and its 3.875% notes due 2018 (2018 Senior Notes). As a result of these repurchases, the carrying values of the 2022 and 2018 Senior Notes were reduced by $39 million and $41 million, respectively. Ashland recognized a $3 million charge related to premiums paid in the open market repurchases and accelerated amortization of previously capitalized debt issuance costs during 2017, which is included in the net interest and other financing expense caption of the Statement of Consolidated Comprehensive Income (Loss). As previously discussed, the remaining outstanding amount of the 2018 Senior Notes was redeemed during 2017.

6.50% junior subordinated notes due 2029

In December 2016, Hercules, an indirect wholly-owned subsidiary of Ashland, repurchased, through a cash tender offer, $182 million of the aggregate principal par value amount of its 6.50% junior subordinated notes due 2029 (2029 Notes) for an aggregate purchase price of $177 million. As a result, the carrying value of the 2029 Notes was reduced by $90 million and Ashland recognized a $92 million charge related to accelerated accretion of the recorded debt discount (compared to the total par value) and $5 million of a net gain related to the repayment of the debt during 2017. The charge and net gain are included in the net interest and other financing expense caption of the Statement of Consolidated Comprehensive Income (Loss).

Accounts receivable securitizations

2018 accounts receivable securitization

During July 2018, Ashland entered into a €115 million accounts receivable securitization facility (the Program) for the transfer by certain subsidiaries of Ashland (the Sellers) directly or indirectly to Ester Finance Titrisation (the Purchaser), a wholly-owned subsidiary of Crédit Agricole Corporate and Investment Bank (the Arranger), of certain receivables and/or collections originated by the Sellers towards certain corporate debtors located in multiple European jurisdictions and denominated in multiple currencies. The Program has a term of two years.

Under the Program, each Seller will assign, on an ongoing basis, certain of its accounts receivable and the right to the collections on those accounts receivable to the Purchaser. Under the terms of the Program, the Sellers could, from time to time, obtain up to €115 million from the Purchaser through the sale of an undivided interest in such accounts receivable and collections. Ashland accounts for the securitization facility as secured borrowings, and the receivables sold pursuant to the facility are included in the Consolidated Balance Sheets as accounts receivable. Fundings under the Program will be repaid as accounts receivable are collected, with new fundings being advanced (through daily advanced purchase price) as new accounts receivable are originated by the Sellers and assigned to the Purchaser, with settlement occurring monthly. Ashland classifies any borrowings under this facility as a short-term debt instrument within the Consolidated Balance Sheets. Once sold to the Purchaser, the accounts receivable and rights to collection described above are separate and distinct from each Sellers’ own assets and are not available to its creditors should such Sellers become insolvent.

At September 30, 2018, the outstanding amount of accounts receivable transferred by Ashland to the Purchaser was $153 million and there were $109 million of borrowings (denominated in multiple currencies) under the facility. The weighted-average interest rate for this instrument was 1.8% for 2018.

2012 accounts receivable securitization

On August 31, 2012, Ashland entered into a $350 million accounts receivable securitization facility pursuant to (i) a Sale Agreement, among Ashland and certain of its direct and indirect subsidiaries (each an Originator and collectively, the Originators) and CVG Capital III LLC, a wholly-owned “bankruptcy remote” special purpose subsidiary of the Originators (CVG) and (ii) a Transfer and Administration Agreement, among CVG, each Originator, Ashland, as Master Servicer, certain Conduit Investors, Uncommitted Investors, Letter of Credit Issuers, Managing Agents, Administrators and Committed Investors, and The Bank of Nova Scotia, as agent for various secured parties (the Agent). The Transfer and Administration Agreement had a term of three years, but was extendable at the discretion of Ashland and the Investors.

Under the Sale Agreement, each Originator will transfer, on an ongoing basis, certain of its accounts receivable, certain related assets and the right to the collections on those accounts receivable to CVG. Ashland accounts for the securitization facility as secured borrowings, and the receivables sold pursuant to the facility are included in the Consolidated Balance Sheets as accounts receivable. Fundings under the Transfer and Administration Agreement will be repaid as accounts receivable are collected, with new fundings being advanced (through daily reinvestments) as new accounts receivable are originated by the Originators and transferred to CVG, with settlement generally occurring monthly. Ashland continues to classify any borrowings under this facility as a short-term debt instrument within the Consolidated Balance Sheets. Once sold to CVG, the accounts receivable, related assets and rights to collection described above are separate and distinct from each Originator’s own assets and are not available to its creditors should such Originator become insolvent. Substantially all of CVG’s assets have been pledged to the Agent in support of its obligations under the Transfer and Administration Agreement.

During 2016, the termination date of the commitments under the Transfer and Administration Agreement was extended from December 31, 2015, the previous termination extension date, to March 22, 2017. During March 2017, this facility was extended for an additional year with similar terms as the previous facility agreement. During March 2018, the termination date of the accounts receivable securitization facility was extended from March 2018 to March 2020. The available funding for qualified receivables under the accounts receivable securitization facility increased from $100 million to $115 million. No other changes to the agreement are expected to have a significant impact to Ashland's results of operations and financial position.

At September 30, 2018 and 2017, the outstanding amount of accounts receivable transferred by Ashland to CVG was $166 million and $155 million, respectively. There were $86 million of borrowings under the facility as of September 30, 2018, while Ashland had $56 million of borrowings under the facility as of September 30, 2017. The weighted-average interest rate for this instrument was 2.7% for 2018 and 2.8% for 2017.

Other debt

At September 30, 2018 and 2017, Ashland held other debt totaling $83 million and $58 million, respectively, comprised primarily of a European short-term loan facility, the 6.50% notes due 2029 and a medium-term note.

Available borrowing capacity

The borrowing capacity remaining under the 2017 Revolving Credit Facility was $725 million due to an outstanding balance of $25 million, as well as a reduction of $50 million for letters of credit outstanding at September 30, 2018. Ashland's total borrowing capacity at September 30, 2018 was $754 million, which included $29 million of available capacity under the two accounts receivable securitization facilities.

Covenants related to current Ashland debt agreements

Ashland’s debt contains usual and customary representations, warranties and affirmative and negative covenants, including financial covenants for leverage and interest coverage ratios, limitations on liens, additional subsidiary indebtedness, restrictions on subsidiary distributions, investments, mergers, sale of assets and restricted payments and other customary limitations. As of September 30, 2018, Ashland was in compliance with all debt agreement covenant restrictions.

The maximum consolidated net leverage ratio permitted under Ashland’s most recent credit agreement (the 2017 Credit Agreement) is 4.5. The 2017 Credit Agreement defines the consolidated net leverage ratio as the ratio of consolidated indebtedness minus unrestricted cash and cash equivalents to consolidated EBITDA (Covenant Adjusted EBITDA) for any measurement period. In general, the 2017 Credit Agreement defines Covenant Adjusted EBITDA as net income plus consolidated interest charges, taxes, depreciation and amortization expense, fees and expenses related to capital market transactions and proposed or actual acquisitions and divestitures, restructuring and integration charges, non-cash stock and equity compensation expense, and any other nonrecurring expenses or losses that do not represent a cash item in such period or any future period; less any non-cash gains or other items increasing net income. The computation of Covenant Adjusted EBITDA differs from the calculation of EBITDA and Adjusted EBITDA, which have been reconciled on page M-7. In general, consolidated indebtedness includes debt plus all purchase money indebtedness, banker’s acceptances and bank guaranties, deferred purchase price of property or services, attributable indebtedness and guarantees. At September 30, 2018, Ashland’s calculation of the consolidated net leverage ratio was 3.4.

The minimum required consolidated interest coverage ratio under the 2017 Credit Agreement during is 3.0. The 2017 Credit Agreement defines the consolidated interest coverage ratio as the ratio of Covenant Adjusted EBITDA to consolidated interest charges for any measurement period. At September 30, 2018, Ashland’s calculation of the consolidated interest coverage ratio was 5.4.

Guarantee of senior notes

Ashland Global Holdings Inc. fully and unconditionally guaranteed the 3.875% notes due 2018 (which were fully repaid during 2017), 4.750% notes due 2022 and 6.875% notes due 2043 and has no significant independent assets or operations.

Net interest and other financing expense (income)

(In millions)	2018			2017			2016
Interest expense (a)	$	136		$	232		$	180
Interest income		(4	)		(4	)		(5	)
Available-for-sale securities income (b)		(14	)		(11	)		(8	)
Other financing costs (c)		4			17			6
	$	122		$	234		$	173

(a)	Includes $1 million, $101 million and $6 million of accelerated accretion and/or amortization for original issue discounts and debt issuance costs during 2018, 2017 and 2016, respectively.

(b)	Represents investment income related to the restricted investments discussed in Note G.

(c)	Includes costs of $16 million related to early redemption premium payments and bondholder consent fees for the 2022 and 2018 Senior Notes and a net gain of $5 million related to the repayment of the 2029 Notes during 2017.

The following table details the debt issuance cost and original issue discount amortization included in interest expense during 2018, 2017 and 2016.

(In millions)	2018		2017		2016
Normal amortization	$	8	$	8	$	12
Accelerated amortization (a)		1		101		6
Total	$	9	$	109	$	18

(a)	Fiscal year 2017 includes $92 million of accelerated accretion of the recorded debt discount for the 2029 Notes, while the remaining amounts in each year related to the accelerated amortization of debt issuance costs.

Other Noncurrent Assets and Liabilities

12 Months Ended

Sep. 30, 2018

Other Noncurrent Assets and Liabilities

NOTE K – OTHER NONCURRENT ASSETS AND LIABILITIES

The following table provides the components of other noncurrent assets in the Consolidated Balance Sheets as of September 30.

(In millions)	2018		2017
Deferred compensation investments	$	165	$	158
Tax and tax indemnity receivables		74		86
Life insurance policies (a)		52		15
Manufacturing catalyst supplies		40		37
Defined benefit plan assets		35		27
Equity and other unconsolidated investments		29		32
Land use rights		15		16
Environmental insurance receivables		11		14
Debt issuance costs		6		6
Notes receivable		2		5
Other		19		26
	$	448	$	422

(a)	The increase in life insurance policies during 2018 was primarily due to a $37 million repayment of a corporate-owned life insurance policy loan.

The following table provides the components of other noncurrent liabilities in the Consolidated Balance Sheets as of September 30.

(In millions)	2018		2017
Tax liabilities	$	176	$	179
Environmental remediation reserves		147		121
Deferred compensation		47		50
Other		56		50
	$	426	$	400

Lease Commitments

12 Months Ended

Sep. 30, 2018

Leases [Abstract]

Lease Commitments

NOTE L – LEASE COMMITMENTS

Ashland and its subsidiaries are lessees of office buildings, transportation equipment, warehouses and storage facilities, other equipment, facilities and properties under leasing agreements that expire at various dates. Capitalized lease obligations are not significant and are included in long-term debt while capital lease assets are included in property, plant and equipment. Future minimum rental payments at September 30, 2018 were $31 million in 2019, $24 million in 2020, $19 million in 2021, $14 million in 2022, $11 million in 2023 and $88 million in 2024 and later years. Rental expense under operating leases for continuing operations was as follows:

(In millions)	2018			2017			2016
Minimum rentals (including rentals under short-term leases)	$	54		$	48		$	50
Contingent rentals		—			—			1
Sublease rental income		(1	)		(1	)		(1	)
	$	53		$	47		$	50

Income Taxes

12 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

NOTE M – INCOME TAXES

Tax Law Changes

The Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017. The Tax Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. At September 30, 2018, Ashland has not completed the internal accounting assessment for the tax effects of enactment of the Tax Act; however, Ashland determined a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax. Ashland recognized a provisional amount during 2018, which is included as a component of income tax expense from continuing operations. Ashland recorded net unfavorable tax adjustments of $2 million during 2018 primarily related to deferred tax rate changes and a one-time transition tax assessed on foreign cash and unremitted earnings.

Provisional amounts - Deferred tax assets and liabilities

Ashland remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. However, Ashland is still analyzing certain aspects of the Tax Act and refining certain calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded related to the remeasurement of the deferred tax balance was a favorable tax adjustment of $139 million during 2018.

Provisional amounts - Foreign tax effects

The one-time transition tax is based on Ashland's total post-1986 earnings and profits (E&P) of foreign subsidiaries that were previously deferred from U.S. income taxes. Ashland recorded a provisional amount for this one-time transition tax of $128 million during 2018. Ashland has not yet completed its calculation of the total post-1986 E&P for these foreign subsidiaries. In addition, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when Ashland finalizes the calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation and finalizes the amounts held in cash or other specified assets. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as management intends to indefinitely reinvest all foreign earnings. Ashland determined that estimating the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis difference in these entities (i.e., basis difference in excess of that subject to the one-time transition tax) is not practicable at this time.

Global Intangible Low-Taxed Income

Regarding new Global Intangible Low-Taxed Income (GILTI) tax rules, Ashland is allowed to make an accounting policy election to either treat taxes due on future GILTI exclusions in U.S. taxable income as a current period expense when incurred or reflect such portion of the future GILTI exclusions in U.S. taxable income that relate to existing basis differences in our measurement of deferred taxes. Ashland’s analysis of the new GILTI rules is incomplete. Accordingly, Ashland has not made a policy election regarding the treatment of the GILTI tax.

Income Tax Provision

A summary of the provision for income taxes related to continuing operations follows.

(In millions)	2018			2017			2016
Current
Federal	$	29		$	(10	)	$	(56	)
State		(1	)		—			(8	)
Foreign		78			46			68
		106			36			4
Deferred		(97	)		(29	)		(29	)
Income tax expense (benefit)	$	9		$	7		$	(25	)

Foreign net operating loss carryforwards primarily relate to certain European and Asian Pacific operations and generally may be carried forward. U.S. state net operating loss carryforwards relate to losses within certain states and generally may be carried forward. Temporary differences that give rise to significant deferred tax assets and liabilities as of September 30 are presented in the following table.

(In millions)	2018			2017
Deferred tax assets
Foreign net operating loss carryforwards (a)	$	43		$	69
Employee benefit obligations		31			47
Environmental, self-insurance and litigation reserves (net of receivables)		120			192
State net operating loss carryforwards (net of unrecognized tax benefits) (b)		48			62
Compensation accruals		31			72
Credit carryforwards (net of unrecognized tax benefits) (c)		10			26
Other items		33			47
Valuation allowances (d)		(79	)		(122	)
Total deferred tax assets		237			393
Deferred tax liabilities
Goodwill and other intangibles (e)		273			432
Property, plant and equipment		215			302
Unremitted earnings		—			6
Total deferred tax liabilities		488			740
Net deferred tax liability	$	(251	)	$	(347	)

(a)	Gross net operating loss carryforwards of $141 million will expire in future years beyond 2020 or have no expiration.

(b)	Apportioned net operating loss carryforwards generated of $1.1 billion will expire in future years as follows: $69 million in 2019, $82 million in 2020 and the remaining balance in other future years.

(c)	Credit carryforwards consist primarily of foreign tax credits of $4 million expiring in future years beyond 2020, and miscellaneous tax credits that will expire in 2024 or other future years.

(d)	Valuation allowances primarily relate to certain state and foreign net operating loss carryforwards.

(e)	The total gross amount of goodwill as of September 30, 2018 expected to be deductible for tax purposes is $29 million.

The U.S. and foreign components of income from continuing operations before income taxes and a reconciliation of the statutory federal income tax with the provision for income taxes follow. The foreign components of income from continuing operations disclosed in the following table exclude any allocations of certain corporate expenses incurred in the U.S.

(In millions)	2018			2017			2016
Income (loss) from continuing operations before income taxes
United States	$	(163	)	$	(376	)	$	(557	)
Foreign		277			278			249
Loss from continuing operations before income taxes	$	114		$	(98	)	$	(308	)

Income taxes computed at U.S. statutory rate (a)	$	28		$	(34	)	$	(108	)
Increase (decrease) in amount computed resulting from
Tax reform (b)		44			—			—
Uncertain tax positions		(12	)		12			24
Foreign dividends, deemed inclusions and other restructuring (c)		48			124			111
Foreign tax credits		(54	)		(29	)		(93	)
Valuation allowance changes (d)		(5	)		(3	)		33
Research and development credits		(5	)		(6	)		(9	)
State taxes (e)		(2	)		(15	)		(3	)
Goodwill impairment		—			—			55
International rate differential		(55	)		(63	)		(57	)
Other items (f)		22			21			22
Income tax expense (benefit)	$	9		$	7		$	(25	)

(a)	The domestic tax rates are 35% for 2016 and 2017, and 24.5% for 2018. For 2019 and forward, the domestic tax rate is expected to be 21%.

(b)

2018 includes expense of $187 million related to the one-time transition tax and a benefit of $143 million related to the deferred rate change. The related foreign tax credits are included within the foreign tax credits caption, the state tax impact of the federal rate change is included within the state taxes caption and the remeasurement of the federal tax effect of uncertain tax positions is included within the uncertain tax positions caption.

(c)	2018 includes a gain recognition of $6 million, deemed inclusions of $13 million and tax restructuring costs of $23 million.

(d)

2018 includes a $5 million benefit for the release of a foreign tax credit valuation allowance; 2017 includes $25 million of benefit for the release of a foreign tax credit valuation allowance and $22 million of expense for state, foreign and domestic federal deferred tax asset valuation allowances net of a NOL write-off offset; 2016 relates to foreign tax credit carryforward and state deferred tax asset valuation allowance establishments.

(e)	2018 includes a $27 million tax benefit for a valuation reserve release against state net operating losses and $26 million of tax expense for state tax rate changes; 2017 includes $6 million of benefit for state tax rate changes primarily related to the final distribution of Valvoline.

(f)

2018 includes $22 million related to foreign withholding taxes; 2017 includes $7 million of expense related to foreign withholding taxes, $5 million of expense for the write-off of a prepaid asset related to an intercompany transaction with a Valvoline legal entity, $4 million of expense for non-deductible transaction costs primarily related to the Valvoline spin-off and $6 million of benefit for certain other domestic permanent items; 2016 includes $25 million of expense for costs associated with the separation of Valvoline.

The 2018 effective tax rate was impacted by jurisdictional income mix and restructuring activities, while U.S. tax reform and other items netted together to have an insignificant tax impact.

The 2017 effective tax rate was impacted by jurisdictional income mix, tax expense related to deemed dividend inclusions and a tax benefit for the reversal of a valuation allowance related to the utilization of foreign tax credits.

The 2016 effective tax rate was impacted by jurisdictional income mix and net unfavorable adjustments primarily related to a nondeductible goodwill impairment for the Intermediates and Solvents division, valuation allowances for domestic attributes, accruals for unrecognized tax benefits and items related to the separation of Valvoline.

Unrecognized tax benefits

U.S. GAAP prescribes a recognition threshold and measurement attribute for the accounting and financial statement disclosure of tax positions taken or expected to be taken in a tax return. The evaluation of a tax position is a two-step process. The first step requires Ashland to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. The second step requires Ashland to recognize in the financial statements each tax position that meets the more likely than not criteria, measured at the amount of benefit that has a greater than 50% likelihood of being realized. Ashland had $164 million and $194 million of unrecognized tax benefits at September 30, 2018 and 2017, respectively. As of September 30, 2018, the total amount of unrecognized tax benefits that, if recognized, would affect the tax rate for continuing and discontinued operations was $152 million. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits would not have an impact on the effective tax rate.

Ashland recognizes interest and penalties related to uncertain tax positions as a component of income tax expense (benefit) in the Statements of Consolidated Comprehensive Income. Such interest and penalties totaled a $1 million benefit in 2018, $3 million expense in 2017 and $5 million expense in 2016. Ashland had $25 million and $26 million in interest and penalties related to unrecognized tax benefits accrued as of September 30, 2018 and 2017, respectively.

Changes in unrecognized tax benefits were as follows:

(In millions)
Balance at September 30, 2016	$	168
Increases related to positions taken on items from prior years		8
Decreases related to positions taken on items from prior years		(3	)
Increases related to positions taken in the current year		14
Lapse of statute of limitations		(3	)
Acquisition of Pharmachem		11
Settlement of uncertain tax positions with tax authorities		(1	)
Balance at September 30, 2017 (a)		194
Increases related to positions taken on items from prior years		5
Decreases related to positions taken on items from prior years		(40	)
Increases related to positions taken in the current year		14
Lapse of statute of limitations		(5	)
Settlement of uncertain tax positions with tax authorities		(4	)
Balance at September 30, 2018 (a)	$	164

(a)	Ashland has indemnity receivables from Valvoline and Pharmachem for $39 million and $48 million of the gross unrecognized tax benefits at September 30, 2018 and 2017, respectively.

From a combination of statute expirations and audit settlements in the next twelve months, Ashland expects a decrease in the amount of accrual for uncertain tax positions of between $1 million and $2 million for continuing operations. For the remaining balance as of September 30, 2018, it is reasonably possible that there could be material changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues, reassessment of existing uncertain tax positions or the expiration of applicable statute of limitations; however, Ashland is not able to estimate the impact of these items at this time.

Ashland or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. Foreign taxing jurisdictions significant to Ashland include Brazil, Canada, China, Germany, Mexico, Netherlands, Spain, Switzerland and United Kingdom. Ashland is subject to U.S. federal income tax examinations by tax authorities for periods after September 30, 2013 and U.S. state income tax examinations by tax authorities for periods after September 30, 2005. With respect to countries outside of the United States, with certain exceptions, Ashland’s foreign subsidiaries are subject to income tax audits for years after 2007.

Employee Benefit Plans

12 Months Ended

Sep. 30, 2018

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

NOTE N – EMPLOYEE BENEFIT PLANS

Pension plans

Ashland and its subsidiaries have several contributory and noncontributory qualified defined benefit pension plans that generally cover international employees and a small portion of certain U.S. manufacturing union employees. Pension obligations for applicable employees of non-U.S. consolidated subsidiaries are provided for in accordance with local practices and regulations of the respective countries. The majority of these foreign pension plans are closed to new participants while those that remain open relate to areas where jurisdictions require plans to operate within the applicable country.

Benefits for those eligible for Ashland’s U.S. pension plans generally are based on employees’ years of service and compensation during the years immediately preceding their retirement. The remaining U.S. plans are still open for enrollment for qualifying union employees within certain manufacturing sites.

Other postretirement benefit plans

Ashland and its subsidiaries maintain limited health care for certain eligible employees in the U.S. who are retired or disabled. Ashland shares the costs of providing health care coverage with certain eligible retired employees through premiums, deductibles and coinsurance provisions. Ashland funds its share of the costs of the postretirement benefit plans as the benefits are paid. This benefit obligation was significantly reduced due to the transfer of a substantial portion to Valvoline.

Postretirement health care plans include a limit on Ashland’s share of costs for recent and future retirees. The assumed pre-65 health care cost trend rate as of September 30, 2018 was 7.5% and continues to be reduced to 4.5% in 2037 and thereafter. The assumptions used to project the liability anticipate future cost-sharing changes to the written plans that are consistent with the increase in health care cost.

Change in applying discount rate to measure benefit costs

During 2016, Ashland changed the method used to estimate the service and interest cost components of net periodic benefit cost for pension and other postretirement benefits. This change compared to the previous method resulted in a decrease in the service and interest cost components for pension and other postretirement benefit costs during the quarter. Historically, Ashland estimated these service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. Ashland elected during 2016 to utilize a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. Ashland made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. This change did not impact the measurement of Ashland’s total benefit obligations or annual net periodic benefit costs as the change in the service and interest costs will be offset in the actuarial gain or loss reported, which typically occurs during the fourth fiscal quarter. Ashland accounted for this change as a change in accounting estimate that is inseparable from a change in accounting principle and accordingly has accounted for it prospectively.

The impact of this discount rate change compared to the previous method decreased the estimated pension and other postretirement benefits service and interest cost by $27 million for 2016. Ashland’s total projected benefit obligation was not impacted by these reductions in service and interest costs as the decrease was substantially offset within the actuarial gain or loss caption when the plans were remeasured during the fiscal year.

Plan Amendments and Remeasurements

During 2017, Ashland discontinued certain post-employment health and life insurance benefits which resulted in a remeasurement gain of $2 million within the Statements of Consolidated Comprehensive Income.

During 2016, Ashland was required to remeasure certain U.S. pension plans and postretirement benefit plans due to various plan amendments. As a result of these remeasurements, Ashland recognized a loss of $18 million within the Statements of Consolidated Comprehensive Income.

Plan Transfers

During September 2016, Ashland transferred a substantial portion of its largest U.S. qualified pension and non-qualified U.S. pension plans as well as certain other postretirement obligations to Valvoline Inc. As of September 30, 2016, the net pension and other postretirement plan liabilities that transferred to Valvoline Inc. totaled $886 million.

The disclosures within this footnote exclude these amounts that were transferred and only relate to plans Ashland currently records within continuing operations, except for the net periodic benefit cost and weighted-average plan assumptions table which, in accordance with U.S. GAAP, required certain amounts of the transferred plans to be included in continuing operations.

Net periodic benefit costs (income) allocation

Consistent with Ashland’s historical accounting policies, service cost for continuing operations is proportionately allocated to each reportable segment, excluding the Unallocated and other segment, while all other costs for continuing operations are recorded within the Unallocated and other segment.

The following table summarizes the components of pension and other postretirement benefit costs for continuing operations and the assumptions used to determine net periodic benefit costs (income) for the plans. During 2016, certain curtailments and actuarial adjustments related to plans that transferred to Valvoline Inc. were required, in accordance with US GAAP, to be recorded within Ashland’s continuing operations within the Statements of Consolidated Comprehensive Income (Loss) and totaled $78 million. As a result, comparisons between fiscal years within the components of pension and other postretirement benefit cost table, including weighted-average plan assumptions, are significantly impacted by the inclusion of these costs and plans within continuing operations during 2016.

	Pension benefits									Other postretirement benefits
(In millions)	2018			2017			2016			2018			2017			2016
Net periodic benefit costs (income)
Service cost (a)	$	9		$	8		$	21		$	1		$	1		$	1
Interest cost (b)		10			8			94			1			2			3
Curtailment, settlement and other (b)		—			—			(64	)		—			—			(34	)
Expected return on plan assets (b)		(12	)		(11	)		(149	)		—			—			—
Amortization of prior service credit (b)		—			—			(1	)		—			—			(11	)
Actuarial (gain) loss (b)		(12	)		—			208			—			6			32
	$	(5	)	$	5		$	109		$	2		$	9		$	(9	)
Weighted-average plan assumptions (c)
Discount rate for service cost		2.51	%		1.92	%		3.95	%		3.93	%		3.93	%		4.07	%
Discount rate for interest cost		2.52	%		2.22	%		3.30	%		3.13	%		2.86	%		2.57	%
Rate of compensation increase		2.55	%		2.80	%		3.04	%
Expected long-term rate of return
on plan assets		3.33	%		3.41	%		6.71	%

(a)	Service cost was not impacted by new accounting guidance adopted in 2018 and is therefore still classified within the selling, general and administrative expense and cost of sales captions on the Statements of Consolidated Comprehensive Income (Loss). See Note A for additional information.

(b)	These components are now classified within the other net periodic benefit income (costs) caption on the Statements of Consolidated Comprehensive Income (Loss) due to the adoption of new accounting guidance in 2018. See Note A for additional information.

(c)	The plan assumptions discussed are a blended weighted-average rate for Ashland’s U.S. and non-U.S. plans.

There were no changes in prior service credit recognized in accumulated other comprehensive income during both 2018 and 2017. At September 30, 2018, Ashland expects to recognize $1 million of the prior service credit in accumulated other comprehensive income as net periodic benefit cost (income) during the next fiscal year.

At September 30, 2018 and 2017, the amounts included in accumulated other comprehensive income are shown in the following table.

	Pension						Postretirement
(In millions)	2018			2017			2018		2017
Prior service credit	$	(4	)	$	(3	)	$	—	$	—

Obligations and funded status

Actuarial valuations are performed for the pension and other postretirement benefit plans to determine Ashland’s obligation for each plan. In accordance with U.S. GAAP, Ashland recognizes the unfunded status of the plans as a liability in the Consolidated Balance Sheets. Summaries of the change in benefit obligations, plan assets, funded status of the plans, amounts recognized in the balance sheet, and assumptions used to determine the benefit obligations for 2018 and 2017 are as follows.

							Other postretirement
	Pension plans						benefit plans
(In millions)	2018			2017			2018			2017
Change in benefit obligations
Benefit obligations at October 1	$	455		$	448		$	62		$	59
Service cost		9			8			1			1
Interest cost		10			8			1			2
Participant contributions		1			1			—			—
Benefits paid		(14	)		(12	)		(6	)		(6	)
Actuarial (gain) loss		(14	)		(20	)		—			6
Foreign currency exchange rate changes		(6	)		13			—			—
Other		(2	)		17			—			—
Curtailment and settlement		(8	)		(8	)		—			—
Benefit obligations at September 30	$	431		$	455		$	58		$	62
Change in plan assets
Value of plan assets at October 1	$	355		$	353		$	—		$	—
Actual return on plan assets		10			(9	)		—			—
Employer contributions		9			7			—			—
Participant contributions		1			1			—			—
Benefits paid		(14	)		(12	)		—			—
Foreign currency exchange rate changes		(6	)		8			—			—
Other		(9	)		7			—			—
Value of plan assets at September 30	$	346		$	355		$	—		$	—

Unfunded status of the plans	$	(85	)	$	(100	)	$	(58	)	$	(62	)

Amounts recognized in the balance sheet
Noncurrent benefit assets	$	35		$	27		$	—		$	—
Current benefit liabilities		(3	)		(3	)		(4	)		(4	)
Noncurrent benefit liabilities		(117	)		(124	)		(54	)		(58	)
Net amount recognized	$	(85	)	$	(100	)	$	(58	)	$	(62	)

Weighted-average plan assumptions
Discount rate		2.92	%		2.66	%		4.24	%		3.66	%
Rate of compensation increase		2.55	%		2.80	%

The accumulated benefit obligation for all pension plans was $420 million at September 30, 2018 and $441 million at September 30, 2017. All Ashland pension plans are either qualified U.S. or non-US plans. Information for pension plans with an accumulated benefit obligation in excess of plan assets follows:

(In millions)	2018		2017
Projected benefit obligation	$	254	$	254
Accumulated benefit obligation		244		239
Fair value of plan assets		134		126

Plan assets

The expected long-term rate of return on pension plan assets was 3.33% and 3.41% for 2018 and 2017, respectively. The basis for determining the expected long-term rate of return is a combination of future return assumptions for various asset classes in Ashland’s investment portfolio, historical analysis of previous returns, market indices and a projection of inflation.

The following table summarizes the various investment categories that the pension plan assets are invested in and the applicable fair value hierarchy that the financial instruments are classified within these investment categories as of September 30, 2018. For additional information and a detailed description of each level within the fair value hierarchy, see Note G.

			Quoted prices
			in active		Significant
			markets for		other		Significant
			identical		observable		unobservable
	Total fair		assets		inputs		inputs
(In millions)	value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	6	$	6	$	—	$	—
U.S. Government securities		19		—		19		—
Non-U.S. Government securities		56		—		56		—
Corporate debt instruments		147		—		147		—
Listed real assets		10		—		10		—
Asset-backed securities		22		—		22		—
Corporate stocks		31		—		31		—
Insurance contracts		55		—		55		—
Total assets at fair value	$	346	$	6	$	340	$	—

			Quoted prices
			in active		Significant
			markets for		other		Significant
			identical		observable		unobservable
	Total fair		assets		inputs		inputs
(In millions)	value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	18	$	18	$	—	$	—
Non-U.S. Government securities		103		—		103		—
Corporate debt instruments		123		—		123		—
Corporate stocks		67		—		67		—
Insurance contracts		44		—		44		—
Total assets at fair value	$	355	$	18	$	337	$	—

Ashland’s pension plan holds a variety of investments designed to diversify risk. Investments classified as a Level 1 fair value measure principally represent marketable securities priced in active markets. Cash and cash equivalents and public equity and debt securities are well diversified and invested in U.S. and international small-to-large companies across various asset managers and styles. Investments classified as a Level 2 fair value measure principally represents fixed-income securities and other investment grade corporate bonds and debt obligations.

Investments and Strategy

In developing an investment strategy for its defined benefit plans, Ashland has considered the following factors: the nature of the plans’ liabilities, the allocation of liabilities between active, deferred and retired members, the funded status of the plans, the applicable investment horizon, the respective size of the plans and historical and expected capital market returns. Ashland’s U.S. pension plan assets are managed by outside investment managers, which are monitored against investment return benchmarks and Ashland’s established investment strategy. Investment managers are selected based on an analysis of, among other things, their investment process, historical investment results, frequency of management turnover, cost structure and assets under management. Assets are periodically reallocated between investment managers to maintain an appropriate asset mix and diversification of investments and to optimize returns.

The current target asset allocation for the U.S. plans is 49% fixed securities, 38% equity securities and 13% other securities. Fixed income securities primarily includes cash and cash equivalents, long duration corporate debt obligations and U.S. government debt obligations. In addition, Ashland’s non-U.S. plan fixed income securities include insurance contracts. Equity securities are comprised solely of traditional public equity investments. Investment managers may employ a limited use of derivatives to gain efficient exposure to markets.

Ashland’s investment strategy and management practices relative to plan assets of non-U.S. plans generally are consistent with those for U.S. plans, except in those countries where investment of plan assets is dictated by applicable regulations. Although the investment allocation may vary based on funding percentages and whether plans are still accruing additional liabilities, the weighted-average asset allocations for Ashland’s U.S. and non-U.S. plans at September 30, 2018 and 2017 by asset category follow.

		Actual at September 30
(In millions)	Target	2018			2017
Plan assets allocation
Equity securities	5 - 45%		9	%		19	%
Fixed income securities	55 - 95%		88	%		81	%
Other	0 - 5%		3	%		0	%
			100	%		100	%

Cash flows

During 2018 and 2017, Ashland contributed $1 million to its U.S. pension plans each year and $8 million and $6 million, respectively, to its non-U.S. pension plans. Ashland expects to contribute approximately $1 million to its U.S. pension plans and $8 million to its non-U.S. pension plans during 2019.

The following benefit payments, which reflect future service expectations, are projected to be paid from plan assets in each of the next five years and in aggregate for five years thereafter.

			Other
	Pension		postretirement
(In millions)	benefits		benefits
2019	$	20	$	4
2020		17		4
2021		17		4
2022		18		4
2023		19		4
2024 - 2028		104		20

Other plans

Ashland sponsors savings plans to assist eligible employees in providing for retirement or other future needs. Under such plans, company contributions amounted to $25 million in 2018, $26 million in 2017 and $35 million in 2016. Ashland also sponsors various other employee benefit plans, some of which are required by different countries. The total noncurrent liabilities associated with these plans were $8 million and $9 million as of September 30, 2018 and 2017, respectively.

Litigation, Claims and Contingencies

12 Months Ended

Sep. 30, 2018

Commitments And Contingencies Disclosure [Abstract]

Litigation, Claims and Contingencies

NOTE O – LITIGATION, CLAIMS AND CONTINGENCIES

Asbestos litigation

Ashland and Hercules have liabilities from claims alleging personal injury caused by exposure to asbestos. To assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs given various assumptions, Ashland retained third party actuarial experts. Prior to 2018, Ashland retained Hamilton, Rabinovitz & Associates, Inc. (HR&A). During 2018, Ashland transitioned these responsibilities to Nathan Associates, Inc. (Nathan). The processes and methodologies used by Nathan are consistent with the ones historically employed by HR&A. The methodology used by Nathan to project future asbestos costs is based largely on recent experience, including claim-filing and settlement rates, disease mix, enacted legislation, open claims and litigation defense. The claim experience of Ashland and Hercules are separately compared to the results of previously conducted third party epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, Nathan estimates a range of the number of future claims that may be filed, as well as the related costs that may be incurred in resolving those claims. Changes in asbestos-related liabilities and receivables are recorded on an after-tax basis within the discontinued operations caption in the Statements of Consolidated Comprehensive Income (Loss).

Ashland asbestos-related litigation

The claims alleging personal injury caused by exposure to asbestos asserted against Ashland result primarily from indemnification obligations undertaken in 1990 in connection with the sale of Riley, a former subsidiary. The amount and timing of settlements and number of open claims can fluctuate from period to period. A summary of Ashland asbestos claims activity, excluding Hercules claims, follows.

(In thousands)	2018			2017			2016
Open claims - beginning of year		54			57			60
New claims filed		2			2			2
Claims settled		(1	)		(1	)		—
Claims dismissed		(2	)		(4	)		(5	)
Open claims - end of year		53			54			57

Ashland asbestos-related liability

During the most recent update completed during 2018, it was determined that the liability for Ashland asbestos-related claims should be decreased by $8 million. Total reserves for asbestos claims were $380 million at September 30, 2018 compared to $419 million at September 30, 2017.

A progression of activity in the asbestos reserve is presented in the following table.

(In millions)	2018			2017			2016
Asbestos reserve - beginning of year	$	419		$	415		$	409
Reserve adjustment		(8	)		36			37
Amounts paid		(31	)		(32	)		(31	)
Asbestos reserve - end of year (a)	$	380		$	419		$	415

(a)	Included $30 million and $34 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.

Ashland asbestos-related receivables

Ashland has insurance coverage for certain litigation defense and claim settlement costs incurred in connection with its asbestos claims, and coverage-in-place agreements exist with the insurance companies that provide substantially all of the coverage that will be accessed.

For the Ashland asbestos-related obligations, Ashland has estimated the value of probable insurance recoveries associated with its asbestos reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage, including an assumption that all solvent insurance carriers remain solvent. Substantially all of the estimated receivables from insurance companies are expected to be due from domestic insurers, all of which are solvent.

At September 30, 2018, Ashland’s receivable for recoveries of litigation defense and claim settlement costs from insurers amounted to $140 million (excluding the Hercules receivable for asbestos claims). Receivables from insurers amounted to $155 million at September 30, 2017. During 2018, the annual update of the model used for purposes of valuing the asbestos reserve and its impact on valuation of future recoveries from insurers, was completed. This model update resulted in a $5 million decrease in the receivable for probable insurance recoveries.

A progression of activity in the Ashland insurance receivable is presented in the following table.

(In millions)	2018			2017			2016
Insurance receivable - beginning of year	$	155		$	151		$	150
Receivable adjustment		(5	)		15			16
Insurance settlement		—			(5	)		(4	)
Amounts collected		(10	)		(6	)		(11	)
Insurance receivable - end of year (a)	$	140		$	155		$	151

(a)	Included $15 million and $14 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.

Hercules asbestos-related litigation

Hercules has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products which were sold by one of Hercules’ former subsidiaries to a limited industrial market. The amount and timing of settlements and number of open claims can fluctuate from period to period. A summary of Hercules’ asbestos claims activity follows.

(In thousands)	2018			2017			2016
Open claims - beginning of year		12			15			20
New claims filed		2			1			1
Claims dismissed		(1	)		(4	)		(6	)
Open claims - end of year		13			12			15

Hercules asbestos-related liability

From the range of estimates, Ashland records the amount it believes to be the best estimate of future payments for litigation defense and claim settlement costs, which generally approximates the mid-point of the estimated range of exposure from model results. Ashland reviews this estimate and related assumptions quarterly and annually updates the results of a non-inflated, non-discounted approximate 50-year model developed with the assistance of Nathan. As a result of the most recent annual update of this estimate, completed during 2018, it was determined that the liability for Hercules asbestos-related claims should be decreased by $19 million. Total reserves for asbestos claims were $282 million at September 30, 2018 compared to $323 million at September 30, 2017.

A progression of activity in the asbestos reserve is presented in the following table.

(In millions)	2018			2017			2016
Asbestos reserve - beginning of year	$	323		$	321		$	311
Reserve adjustments		(19	)		16			25
Amounts paid		(22	)		(14	)		(15	)
Asbestos reserve - end of year (a)	$	282		$	323		$	321

(a)	Included $20 million and $14 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.

Hercules asbestos-related receivables

For the Hercules asbestos-related obligations, certain reimbursement obligations pursuant to coverage-in-place agreements with insurance carriers exist. As a result, any increases in the asbestos reserve have been partially offset by probable insurance recoveries. Ashland has estimated the value of probable insurance recoveries associated with its asbestos reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage, including an assumption that all solvent insurance carriers remain solvent. The estimated receivable consists exclusively of solvent domestic insurers.

As of September 30, 2018 and 2017, the receivables from insurers amounted to $54 million and $68 million, respectively. During 2018, the annual update of the model used for purposes of valuing the asbestos reserve and its impact on valuation of future recoveries from insurers was completed. This model update resulted in a $14 million decrease in the receivable for probable insurance recoveries.

A progression of activity in the Hercules insurance receivable is presented in the following table.

(In millions)	2018			2017		2016
Insurance receivable - beginning of year	$	68		$	63	$	56
Receivable adjustment		(14	)		5		7
Insurance receivable - end of year	$	54		$	68	$	63

Asbestos litigation cost projection

Projecting future asbestos costs is subject to numerous variables that are extremely difficult to predict. In addition to the significant uncertainties surrounding the number of claims that might be received, other variables include the type and severity of the disease alleged by each claimant, the long latency period associated with asbestos exposure, mortality rates, dismissal rates, costs of medical treatment, the impact of bankruptcies of other companies that are co-defendants in claims, uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, and the impact of potential changes in legislative or judicial standards. Furthermore, any predictions with respect to these variables are subject to even greater uncertainty as the projection period lengthens. In light of these inherent uncertainties, Ashland believes that the asbestos reserves for Ashland and Hercules represent the best estimate within a range of possible outcomes. As a part of the process to develop these estimates of future asbestos costs, a range of long-term cost models was developed. These models are based on national studies that predict the number of people likely to develop asbestos-related diseases and are heavily influenced by assumptions regarding long-term inflation rates for indemnity payments and legal defense costs, as well as other variables mentioned previously. Ashland has currently estimated in various models ranging from approximately 40 to 50 year periods that it is reasonably possible that total future litigation defense and claim settlement costs on an inflated and undiscounted basis could range as high as approximately $600 million for the Ashland asbestos-related litigation (current reserve of $380 million) and approximately $450 million for the Hercules asbestos-related litigation (current reserve of $282 million), depending on the combination of assumptions selected in the various models. If actual experience is worse than projected, relative to the number of claims filed, the severity of alleged disease associated with those claims or costs incurred to resolve those claims, or actuarial refinement or improvements to the assumptions used within these models are initiated, Ashland may need to further increase the estimates of the costs associated with asbestos claims and these increases could be material over time.

Environmental remediation and asset retirement obligations

Ashland is subject to various federal, state and local environmental laws and regulations that require environmental assessment or remediation efforts (collectively environmental remediation) at multiple locations. At September 30, 2018, such locations included 81 waste treatment or disposal sites where Ashland has been identified as a potentially responsible party under Superfund or similar state laws, 116 current and former operating facilities and about 1,225 service station properties, of which 35 are being actively remediated.

Ashland’s reserves for environmental remediation and related environmental litigation amounted to $187 million at September 30, 2018 compared to $163 million at September 30, 2017, of which $147 million at September 30, 2018 and $121 million at September 30, 2017 were classified in other noncurrent liabilities on the Consolidated Balance Sheets. The remaining reserves were classified in accrued expenses and other liabilities on the Consolidated Balance Sheets.

The following table provides a reconciliation of the changes in the environmental remediation reserves during 2018 and 2017.

(In millions)	2018			2017
Environmental remediation reserve - beginning of year	$	163		$	177
Disbursements		(37	)		(32	)
Revised obligation estimates and accretion		61			18
Environmental remediation reserve - end of year	$	187		$	163

The total reserves for environmental remediation reflect Ashland’s estimates of the most likely costs that will be incurred over an extended period to remediate identified conditions for which the costs are reasonably estimable, without regard to any third-party recoveries. Engineering studies, probability techniques, historical experience and other factors are used to identify and evaluate remediation alternatives and their related costs in determining the estimated reserves for environmental remediation. Ashland continues to discount certain environmental sites and regularly adjusts its reserves as environmental remediation continues. Ashland has estimated the value of its probable insurance recoveries associated with its environmental reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage. At September 30, 2018 and 2017, Ashland’s recorded receivable for these probable insurance recoveries was $12 million and $15 million, respectively, of which $11 million and $14 million, respectively, were classified in other noncurrent assets in the Consolidated Balance Sheets.

During 2018, Ashland recognized $60 million of expense for certain environmental liabilities. Of that amount, $18 million related to one site where, after significant research and analysis as part of Ashland’s normal process and protocol for these matters, the estimated cost for the ongoing remediation was finalized. As such, Ashland recorded the expense for this remediation project during 2018 since a reasonable estimate that is in accordance with U.S. GAAP provisions could be determined. The remaining charges in 2018 related to normal ongoing remediation cost estimate updates for sites, which is consistent with Ashland’s historical environmental accounting policy.

Components of environmental remediation expense included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) are presented in the following table for the years ended September 30, 2018, 2017 and 2016.

(In millions)	2018			2017			2016
Environmental expense	$	60		$	17		$	33
Accretion		1			1			2
Legal expense		6			8			8
Total expense		67			26			43

Insurance receivable		(2	)		(2	)		(3	)
Total expense, net of receivable activity (a)	$	65		$	24		$	40

(a)

Net expense of $5 million, $3 million and $2 million for the fiscal years ended September 30, 2018, 2017 and 2016, respectively, related to divested businesses which qualified for treatment as discontinued operations and for which certain environmental liabilities were retained by Ashland. These amounts are classified within the income from discontinued operations caption of the Statements of Consolidated Comprehensive Income (Loss).

Environmental remediation reserves are subject to numerous inherent uncertainties that affect Ashland’s ability to estimate its share of the costs. Such uncertainties involve the nature and extent of contamination at each site, the extent of required cleanup efforts under existing environmental regulations, widely varying costs of alternate cleanup methods, changes in environmental regulations, the potential effect of continuing improvements in remediation technology, and the number and financial strength of other potentially responsible parties at multiparty sites. Although it is not possible to predict with certainty the ultimate costs of environmental remediation, Ashland currently estimates that the upper end of the reasonably possible range of future costs for identified sites could be as high as approximately $430 million. The largest reserve for any site is 14% of the remediation reserve.

Other legal proceedings and claims

In addition to the matters described above, there are other various claims, lawsuits and administrative proceedings pending or threatened against Ashland and its current and former subsidiaries. Such actions are with respect to commercial matters, product liability, toxic tort liability, and other environmental matters, which seek remedies or damages, some of which are for substantial amounts. While Ashland cannot predict with certainty the outcome of such actions, it believes that adequate reserves have been recorded and losses already recognized with respect to such actions were immaterial as of September 30, 2018 and 2017. There is a reasonable possibility that a loss exceeding amounts already recognized may be incurred related to these actions; however, Ashland believes that such potential losses were immaterial as of September 30, 2018 and 2017.

Equity Items

12 Months Ended

Sep. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity Items

NOTE P – EQUITY ITEMS

Stock repurchase programs

In April 2015, Ashland’s Board of Directors approved a $1 billion share repurchase authorization (the 2015 stock repurchase program) that was set to expire on December 31, 2017. In September 2017, Ashland’s Board of Directors extended the 2015 stock repurchase program indefinitely, at which point $500 million of share repurchase authorization remained under the 2015 stock repurchase program.

During March 2018, Ashland’s Board of Directors approved a new $1 billion stock repurchase program, which replaced the 2015 stock repurchase program. Under the new program, Ashland’s common shares may be repurchased in open market transactions, privately negotiated transactions or pursuant to one or more accelerated stock repurchase programs or Rule 10b5-1 plans. As of September 30, 2018, $1 billion remained available for repurchase under this authorization.

Stock repurchase program agreements

In November 2015, under the 2015 stock repurchase program, Ashland announced that it entered into an accelerated share repurchase agreement (2016 ASR Agreement) with Goldman Sachs & Co. Under the 2016 ASR Agreement, Ashland paid an initial purchase price of $500 million and received an initial delivery of approximately 3.9 million shares of common stock during November 2015. In February 2016, Goldman Sachs & Co. exercised their early termination option under the 2016 ASR Agreement and the pricing period was closed. The settlement price, which represents the weighted average price of Ashland’s common stock over the pricing period less a discount, was $99.01 per share. Based on this settlement price, the final number of shares repurchased by Ashland that were delivered by Goldman Sachs & Co. under the 2016 ASR Agreement was 5.1 million shares. Ashland received the additional 1.2 million shares during 2016 to settle the difference between the initial share delivery and the total number of shares repurchased.

Stockholder dividends

Ashland paid dividends per common share of $0.95, $1.23 and $1.56 during 2018, 2017 and 2016, respectively.

In May 2018, the Board of Directors of Ashland announced a quarterly cash dividend of 25 cents per share to eligible stockholders at record, which represented an increase from the previous quarterly cash dividend of 22.5 cents per share. This dividend was paid in the third quarter and fourth quarters of fiscal 2018.

During May 2017, subsequent to the final distribution of Valvoline Inc.’s common stock, the Board of Directors announced a quarterly cash dividend of 22.5 cents per share to eligible shareholders at record, which was paid for quarterly dividends in the first and second quarter quarters of fiscal 2018 and the third and fourth quarters of fiscal 2017. This represented a reduction from the previous quarterly dividend of 39 cents per share paid during the first and second quarters of fiscal 2017 and each quarter of fiscal 2016.

Shares reserved for issuance

At September 30, 2018, 15.7 million common shares were reserved for issuance under stock incentive and deferred compensation plans.

Other comprehensive income (loss)

Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented in the following table, before tax and net of tax effects.

				Tax
	Before			(expense)			Net of
(In millions)	tax			benefit			tax
Year ended September 30, 2018
Other comprehensive income (loss)
Unrealized translation loss	$	(82	)	$	—		$	(82	)
Net change in available-for-sale securities:
Unrealized gain on available-for-sale securities		24			(7	)		17
Reclassification adjustment for gains
included in net income		(6	)		2			(4	)
Total other comprehensive loss	$	(64	)	$	(5	)	$	(69	)

Year ended September 30, 2017
Other comprehensive income (loss)
Unrealized translation gain	$	80		$	1		$	81
Amortization of unrecognized prior service
credits included in net income (a)		(7	)	3				(4	)
Net change in available-for-sale securities:
Unrealized gain on available-for-sale securities		24			(8	)		16
Reclassification adjustment for gains
included in net income		(2	)		1			(1	)
Total other comprehensive income	$	95		$	(3	)	$	92

Year ended September 30, 2016
Other comprehensive income (loss)
Unrealized translation loss	$	(15	)	$	1		$	(14	)
Pension and postretirement obligation adjustment:
Adjustment of unrecognized prior service cost		86			(31	)		55
Amortization of unrecognized prior service
credits included in net income (a)		(60	)		19			(41	)
Unrealized gain on available-for-sale securities		28			(11	)		17
Total other comprehensive income	$	39		$	(22	)	$	17

(a)	Amortization of unrecognized prior service credits are included in the calculation of net periodic benefit costs (income) for pension and other postretirement plans. For specific financial statement captions impacted by the amortization see the table below.

In accordance with U.S. GAAP, as disclosed in the table above, certain pension and other postretirement costs (income) are amortized from accumulated other comprehensive income and recognized in net income. The captions on the Statements of Consolidated Comprehensive Income (Loss) impacted by the amortization of unrecognized prior service credits for pension and other postretirement plans are disclosed below. During 2016, the amortization of unrecognized prior service credits included the curtailment impact of certain pension and other postretirement plan remeasurements related to plan amendments of $40 million.

(In millions)	2018		2017			2016
Cost of sales	$	—	$	—		$	(22	)
Selling, general and administrative expense		—		—			(31	)
Discontinued operations		—		(7	)		(7	)
Total amortization of unrecognized prior service credits	$	—	$	(7	)	$	(60	)

Stock Incentive Plans

12 Months Ended

Sep. 30, 2018

Stock Incentive Plans

NOTE Q – STOCK INCENTIVE PLANS

Ashland has stock incentive plans under which key employees or directors are granted stock appreciation rights (SARs), performance share awards or nonvested stock awards. Each program is typically a long-term incentive plan designed to link employee compensation with increased shareholder value or reward superior performance and encourage continued employment with Ashland. Ashland recognizes compensation expense for the grant date fair value of stock-based awards over the applicable vesting period and accounts for forfeitures when they occur across all stock-based awards.

The components of Ashland’s pretax stock-based awards (net of forfeitures) and associated income tax benefits are as follows:

(In millions)	2018		(a)	2017		(b)	2016		(c)
SARs	$	7		$	5		$	9
Nonvested stock awards		25			15			17
Performance share awards		13			8			8
	$	45		$	28		$	34

Income tax benefit	$	14		$	11		$	13

(a)	The year ended September 30, 2018 included $9 million and $8 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.

(b)	The year ended September 30, 2017 included $5 million and $3 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.

(c)	The year ended September 30, 2016 included $4 million of expense related primarily to cash-settled nonvested restricted stock awards.

Conversion of Equity Awards Outstanding from Valvoline Distribution

On May 12, 2017, the date of the final distribution of Valvoline common stock, certain of Ashland's outstanding equity awards held by Valvoline Inc. employees were converted to equivalent equity awards, as applicable, with respect to Valvoline Inc.’s common stock. These modified awards otherwise retained substantially the same terms and conditions, including term and vesting provisions, as the existing Ashland equity awards had at the time of conversion. Ashland transferred all Valvoline awards and will not incur any future compensation cost related to the conversion of Ashland equity awards held by Valvoline Inc. employees and directors in connection with the final Valvoline Inc. distribution.

Additionally, in connection with this transaction, Ashland proportionately adjusted the number and exercise prices of SARS, nonvested stock awards and performance awards granted to Ashland employees and directors that were outstanding at the time of this transaction to maintain the approximate aggregate intrinsic value of such awards. To calculate the exchange ratio for all outstanding stock based compensation awards, Ashland utilized a 10-day volume weighted average stock price (VWAP), using the 10 consecutive trading days following the distribution. The ratio used to adjust these awards differs slightly from the exchange ratio that would have resulted had the ratio been calculated based on Ashland's stock price immediately following the transaction.

On the date of the final distribution, and in accordance with U.S. GAAP, Ashland reassessed all outstanding equity awards to determine if additional compensation expense had been incurred due to the transaction causing a modification to the outstanding equity awards. The additional stock compensation expense as a result of this modification and assessment performed during 2017 for all outstanding equity awards was not significant.

Stock Appreciation Rights

SARs are granted to employees or directors at a price equal to the fair market value of the stock on the date of grant and typically become exercisable over periods of one to three years. Unexercised SARs lapse ten years and one month after the date of grant. Ashland estimates the fair value of SARs granted using the Black-Scholes option-pricing model. This model requires several assumptions, which Ashland has developed and updates based on historical trends and current market observations. The accuracy of these assumptions is critical to the estimate of fair value for these equity instruments. The following table illustrates the weighted-average of key assumptions used within the Black-Scholes option-pricing model. The risk-free interest rate assumption was based on the U.S. Treasury yield curve in effect at the time of the grant for the expected term of the instrument. The dividend yield reflects the assumption that the current dividend payout will continue with no anticipated increases. The volatility assumption was calculated by utilizing an unbiased standard deviation of Ashland’s Common Stock closing price for the past five years. The expected life is based on historical data and is not necessarily indicative of exercise patterns that may occur.

(In millions except per share data)	2018			2017			2016
Weighted-average fair value per share of SARs granted (a)	$	19.62		$	21.25		$	26.24
Assumptions (weighted-average)
Risk-free interest rate		2.1	%		1.8	%		1.8	%
Expected dividend yield		1.3	%		1.4	%		1.4	%
Expected volatility		31.8	%		22.8	%		27.7	%
Expected life (in years)		6			5			5

(a)	The weighted-average fair values per share are as of the grant date and have not been adjusted for the Valvoline separation if the SARs were granted prior to the final distribution on May 12, 2017.

A progression of activity and various other information relative to SARs and previously issued and vested stock options is presented in the following table.

	2018					2017					2016
	Number			Weighted-		Number			Weighted-		Number			Weighted-
	of			average		of			average		of			average
	common			exercise price		common			exercise price		common			exercise price
(In thousands except per share data)	shares			per share		shares			per share		shares			per share
Outstanding - beginning of year		2,261		$	47.98		1,511		$	83.64		1,383		$	73.18
Granted		470			67.16		422			109.15		362			111.89
Exercised		(421	)		40.10		(330	)		70.55		(196	)		59.69
Forfeitures and expirations		(47	)		58.73		(70	)		105.98		(38	)		95.65
Transfer to Valvoline Inc. (a)		—			—		(352	)		94.28		—			—
Conversion adjustment (b)		—			—		1,080			—		—			—
Outstanding - end of year (c)		2,263			53.21		2,261			47.98		1,511			83.64
Exercisable - end of year		1,472			47.76		1,456			42.10		991			69.68

(a)	Represents the transfer of SARs held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution in 2017.

(b)	The number and exercise prices of SARs outstanding at the time of the final Valvoline Inc. distribution in 2017 were proportionately adjusted to maintain the aggregate intrinsic value before and after the transaction.

(c)

Exercise prices per share for SARs outstanding at September 30, 2018 ranged from $5.04 to $5.70 for 27 thousand shares, from $20.02 to $29.50 for 260 thousand shares, from $34.47 to $47.63 for 419 thousand shares, and from $57.96 to $67.16 for 1,557 thousand shares. The weighted-average remaining contractual life of outstanding SARs and stock options was 6.7 years and exercisable SARs and stock options was 5.6 years.

The total intrinsic value of SARs exercised was $15 million in 2018, $14 million in 2017 and $11 million in 2016. The actual tax benefit realized from the exercised SARs was $5 million in 2018, $2 million in 2017 and $2 million in 2016. The total grant date fair value of SARs that vested during 2018, 2017 and 2016 was $4 million, $8 million and $9 million, respectively. As of September 30, 2018, there was $7 million of total unrecognized compensation costs related to SARs. That cost is expected to be recognized over a weighted-average period of 1.8 years. As of September 30, 2018, the aggregate intrinsic value of outstanding SARs was $69 million and exercisable SARs was $53 million.

Nonvested stock awards

Nonvested stock awards are granted to employees or directors at a price equal to the fair market value of the stock on the date of grant and generally vest over a one-to-five-year period. However, such shares or units are subject to forfeiture upon termination of service before the vesting period ends. Beginning in 2016, these awards were primarily granted as stock units that will convert to shares upon vesting, while the grants in prior years were generally made in nonvested shares. Only nonvested stock awards granted in the form of shares entitle employees or directors to vote the shares. Dividends on nonvested stock awards granted are in the form of additional units or shares of nonvested stock awards, which are subject to vesting and forfeiture provisions.

A progression of activity and various other information relative to nonvested stock awards is presented in the following table.

	2018					2017					2016
	Number			Weighted-		Number			Weighted-		Number			Weighted-
	of			average		of			average		of			average
	common			grant date		common			grant date		common			grant date
(In thousands except per share data)	shares			fair value		shares			fair value		shares			fair value
Nonvested - beginning of year		219		$	59.16		293		$	109.12		298		$	106.41
Granted		192			71.36		92			105.10		107			111.76
Vested		(107	)		59.46		(189	)		99.69		(93	)		104.44
Forfeitures		(13	)		62.22		(24	)		104.19		(19	)		104.66
Transfer to Valvoline Inc. (a)		—			—		(71	)		111.97		—			—
Conversion adjustment (b)		—			—		118			—		—			—
Nonvested - end of year		291			66.98		219			59.16		293			109.12

(a)	Represents the transfer of nonvested stock awards held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution in 2017.

(b)	The number and exercise prices of nonvested stock awards outstanding at the time of the final Valvoline Inc. distribution in 2017 were proportionately adjusted to maintain the aggregate intrinsic value before and after the transaction.

The total fair value of nonvested stock awards that vested during 2018, 2017 and 2016 was $6 million, $19 million and $10 million, respectively. As of September 30, 2018, there was $9 million of total unrecognized compensation costs related to nonvested stock awards. That cost is expected to be recognized over a weighted-average period of 1.9 years.

Executive performance incentive and retention program

During 2016, certain executives were granted 260 thousand performance-based restricted shares of Ashland in order to provide an incentive to remain employed in the period after the full separation of Ashland and Valvoline. At September 30, 2018, total nonvested shares outstanding were 61 thousand shares, which include forfeitures and the cumulative value of forfeitable dividends. The expense recognition for these awards commenced upon completing the full separation of Valvoline which occurred on May 12, 2017, as discussed further in Note B, and resulted in expense of $6 million and $3 million during 2018 and 2017, respectively. As of September 30, 2018, there was $3 million of total unrecognized compensation costs related to these awards.

Cash-settled nonvested stock awards

Certain nonvested stock awards are granted to employees and are settled in cash upon vesting. As of September 30, 2018, 215 thousand cash-settled nonvested stock awards were outstanding. The value of these cash-settled nonvested stock awards changes in connection with changes in the fair market value of the Ashland Common Stock. These awards generally vest over a period of three years. The expense recognized related to cash-settled nonvested stock awards was $9 million, $5 million, and $4 million during 2018, 2017 and 2016, respectively.

Performance awards

Ashland sponsors a long-term incentive plan that awards performance shares/units to certain key employees that are tied to Ashland’s overall financial performance relative to the financial performance of selected industry peer groups and/or internal targets. Awards are granted annually, with each award covering a three-year vesting period. Nonvested performance shares/units do not entitle employees to vote the shares or to receive any dividends thereon.

For awards granted in 2016, each performance share is convertible to one share of Ashland Common Stock. These plans are recorded as a component of stockholders’ equity in the Consolidated Balance Sheets. Performance measures used to determine the actual number of performance shares issuable upon vesting include an equal weighting of Ashland’s total shareholder return (TSR) performance and Ashland’s return on investment (ROI) performance as compared to the internal targets. TSR relative to peers is considered a market condition while ROI is considered a performance condition in accordance with U.S. GAAP.

For awards granted in 2018 and 2017, upon vesting, each performance unit will be settled in stock or cash based on the fair market value of Ashland common stock. The awards granted in 2018 are settled in stock and recorded as a component of stockholders’ equity while the awards granted in 2017 are settled in cash and recorded within the other liabilities caption in the Consolidated Balance Sheets. For these awards, the performance measure used to determine the actual number of performance units issuable upon vesting is the financial performance of Ashland compared to award targets. The financial performance award metric is considered a performance condition under applicable U.S. GAAP. Additionally, the actual number of performance units issuable upon vesting can be potentially increased or decreased based on a TSR performance modifier relative to peers for Ashland.

The following table shows the performance shares/units granted for all plans that award Ashland Common Stock or cash.

					Weighted-
		Target			average
		shares/units			fair value per
(In thousands)	Vesting period	granted		(a)	share/unit		(a)
Fiscal Year 2018	October 1, 2017 - September 30, 2020		101		$	68.93
Fiscal Year 2017	October 1, 2016 - September 30, 2019		56		$	103.72
Fiscal Year 2016	October 1, 2015 - September 30, 2018		73		$	110.03

(a)

At the end of the performance period, the actual number of shares/units awarded can range from zero to 200% of the target shares/units granted, which is assumed to be 100%. Both the shares granted and weighted-average fair value per share/unit are as of the grant date and have not been adjusted for the Valvoline separation that occurred during 2017.

For awards granted in 2016, the fair value of the ROI portion of the performance share awards is equal to the fair market value of Ashland’s Common Stock on the date of the grant discounted for the dividends forgone during the vesting period of the three-year performance cycle. For awards granted in 2018 and 2017, the fair value of the performance unit awards is equal to the fair market value of Ashland’s Common Stock as of the end of each reporting period. Compensation cost is recognized over the requisite service period if it is probable that the performance condition will be satisfied.

The fair values of the TSR portion of the performance share awards and TSR modifier of the performance unit awards are calculated using a Monte Carlo simulation valuation model using key assumptions included in the following table. Compensation cost is recognized over the requisite service period regardless of whether the market condition is satisfied.

	2018			2017			2016
Risk-free interest rate	1.6% - 1.8%			1.3% - 1.4%			0.5% - 1.2%
Expected dividend yield		1.4	%		1.4	%		1.2	%
Expected life (in years)		3			3			3
Expected volatility		25.0	%		25.1	%		21.1	%

The following table shows changes in nonvested performance shares/units for all plans that award Ashland Common Stock or cash.

	2018					2017					2016
				Weighted-					Weighted-					Weighted-
				average					average					average
	Shares/			grant date		Shares/			grant date		Shares/			grant date
(In thousands except per share data)	Units			fair value		Units			fair value		Units			fair value
Nonvested - beginning of year		268		$	63.00		199		$	106.91		204		$	93.79
Granted (a)		101			68.93		71			99.86		73			110.03
Vested (a)		(104	)		65.53		(69	)		85.86		(72	)		76.26
Forfeitures (b)		(5	)		66.24		(54	)		75.52		(6	)		114.83
Transfer to Valvoline Inc. (c)		—			—		(21	)		115.68		—			—
Conversion adjustment (d)		—			—		142			—		—			—
Nonvested - end of year		260			64.55		268			63.00		199			106.91

(a)	2017 includes 15 thousand additional shares from the fiscal year 2014 since a portion of the payouts for this plan was in excess of the initial 100% target.

(b)	During 2017, Ashland determined that zero percent of the TSR portion of the fiscal year 2016 plan will be paid out upon vesting which resulted in the forfeiture of 35 thousand shares.

(c)	Represents the transfer of performance shares from the fiscal year 2016 plans held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution in 2017.

(d)	The number and exercise prices of performance shares/units outstanding at the time of the final Valvoline Inc. distribution in 2017 were proportionately adjusted to maintain the aggregate intrinsic value before and after the transaction.

As of September 30, 2018, there was $12 million of total unrecognized compensation costs related to nonvested performance share/unit awards. That cost is expected to be recognized over a weighted-average period of approximately 1.5 years.

Reportable Segment Information

12 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Reportable Segment Information

NOTE R – 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 is the primary measure on the Statements of Consolidated Comprehensive Income (Loss) that is reviewed by the chief operating decision maker in assessing each reportable segment’s financial performance.

Ashland's operations are managed by the chief operating decision maker within the following three reportable segments: Specialty Ingredients, Composites and Intermediates and Solvents. Ashland does not aggregate operating segments to arrive at these reportable segments.

Reportable segment business descriptions

Specialty Ingredients offers industry-leading products, technologies and resources for solving formulation and product-performance challenges. Using natural, synthetic and semisynthetic polymers derived from cellulose ethers, vinyl pyrrolidones, acrylic polymers, polyester and polyurethane-based adhesives, and plant and seed extract, Specialty Ingredients offers comprehensive and innovative solutions for consumer and industrial applications. Key customers include pharmaceutical companies; makers of personal care products, food and beverages; makers of nutraceuticals and supplements; manufacturers of paint, coatings and construction materials; packaging and converting; and oilfield service companies. Certain customer relationships are significant, and the loss of any one of those customers could have a material adverse effect on the Specialty Ingredients reportable segment. On May 17, 2017, Ashland completed its acquisition of the stock of Pharmachem, a leading provider of quality ingredients to the global health and wellness industries and high-value differentiated products to fragrance and flavor houses. At the acquisition date, Pharmachem had 14 manufacturing facilities located in the United States and Mexico. New Jersey-based Pharmachem develops, manufactures and supplies custom and branded nutritional and fragrance products. See Note C for more information.

Composites is a global leader in unsaturated polyester resins, vinyl ester resins and gelcoats. The Composites business manufactures and sells a broad range of general-purpose and high-performance grades of unsaturated polyester and vinyl ester resins, gelcoats and low-profile additives for the reinforced plastics industry. The products in the Composites business provide an array of functional properties including corrosion resistance, fire retardance, ultraviolet resistance, water and chemical resistance, high mechanical strength, impact and scratch resistance and high strength-to-weight ratios. Key end markets include transportation, construction, marine and infrastructure. In addition, the business manufactures and sells molten maleic anhydride for the manufacture of a variety of products such as unsaturated polyester resins, copolymers, lubricating oil additives, alkenyl succinic anhydrides, malic acid, fumaric acid and numerous derivative chemicals. Key markets include composites, personal care, dispersants and combustion engine oil.

Intermediates and Solvents is a leading producer of 1,4 butanediol and related derivatives, including tetrahydrofuran and 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 Ashland’s Specialty Ingredients business for use as a raw material.

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

International data

Information about Ashland’s domestic and international operations follows. Ashland has no operations in any individual international country or single customer that represented more than 10% of sales in 2018, 2017 or 2016.

	Sales to										Property, plant
	external customers						Net assets (liabilities)				and equipment - net
(In millions)	2018		2017		2016		2018		2017		2018		2017
United States	$	1,420	$	1,248	$	1,165	$	1,142	$	674	$	1,371	$	1,417
International		2,323		2,012		1,854		2,264		2,732		528		553
	$	3,743	$	3,260	$	3,019	$	3,406	$	3,406	$	1,899	$	1,970

Reportable segment results

The following tables present various financial information for each reportable segment for the years ended September 30, 2018, 2017 and 2016 and as of September 30, 2018, 2017 and 2016. 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 and other costs or adjustments 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 to Unallocated and other. 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.

Ashland determined that disclosing sales by specific product was impracticable due to the highly customized and extensive portfolio of products offered to customers and since no one product or a small group of products could be aggregated together to represent a majority of revenue within a reportable segment. As such, the following table provides a summary of 2018 sales by product category for each reportable segment:

Sales by product category for 2018
Specialty Ingredients			Composites			Intermediates and Solvents
Cellulosics	34	%	UPR/VER (a)	85	%	Derivatives	55	%
Poly vinyl pyrrolidones	17	%	Gelcoats and other	15	%	Butanediol	45	%
Adhesives	14	%		100	%		100	%
Pharmachem	10	%
Actives	6	%
Vinyl ethers	6	%
Other	13	%
	100	%

(a)	UPR stands for unsaturated polyester resins and VER stands for vinyl ester resins.

The following table presents various financial information for each reportable segment. The operating results of divested divisions and assets during 2018, 2017 and 2016 that did not qualify for discontinued operations accounting treatment are included in the financial information until the date of sale.

Ashland Global Holdings Inc. and Consolidated Subsidiaries
Reportable Segment Information
Years Ended September 30
(In millions)	2018			2017			2016
Sales
Specialty Ingredients	$	2,470		$	2,216		$	2,089
Composites		942			779			669
Intermediates and Solvents		331			265			261
	$	3,743		$	3,260		$	3,019
Equity income
Specialty Ingredients	$	—		$	—		$	—
Composites		1			—			1
Intermediates and Solvents		—			—			—
Unallocated and other		—			—			—
		1			—			1
Other income (expense)
Specialty Ingredients		(5	)		(2	)		(1	)
Composites		4			4			5
Intermediates and Solvents		—			—			—
Unallocated and other		8			5			3
		7			7			7
	$	8		$	7		$	8
Operating income (loss)
Specialty Ingredients	$	314		$	233		$	237
Composites		73			67			63
Intermediates and Solvents		31			(12	)		(181	)
Unallocated and other		(191	)		(142	)		(169	)
	$	227		$	146		$	(50	)
Assets
Specialty Ingredients	$	5,955		$	6,050		$	5,235
Composites		589			586			520
Intermediates and Solvents		301			292			311
Unallocated and other		1,407			1,690			3,934
	$	8,252		$	8,618		$	10,000

Ashland Global Holdings Inc. and Consolidated Subsidiaries
Reportable Segment Information (continued)
Years Ended September 30
(In millions)	2018		2017		2016
Depreciation and amortization
Specialty Ingredients	$	252	$	243	$	243
Composites		22		22		22
Intermediates and Solvents		30		31		31
Unallocated and other		8		5		6
	$	312	$	301	$	302
Property, plant and equipment - net
Specialty Ingredients	$	1,434	$	1,470	$	1,388
Composites		192		189		175
Intermediates and Solvents		130		146		160
Unallocated and other		143		165		177
	$	1,899	$	1,970	$	1,900
Additions to property, plant and equipment
Specialty Ingredients	$	138	$	148	$	179
Composites		24		26		23
Intermediates and Solvents		9		10		13
Unallocated and other		14		15		16
	$	185	$	199	$	231

Subsequent Event

12 Months Ended

Sep. 30, 2018

Subsequent Events [Abstract]

Subsequent Event

NOTE S – SUBSEQUENT EVENT

On November 15, 2018, Ashland announced that it had signed a definitive agreement to sell its Composites segment and Intermediates and Solvents facility in Marl, Germany to INEOS Enterprises in a transaction valued at $1.1 billion. Ashland will retain the remaining Intermediates and Solvents facility in Lima, Ohio for its own internal business use.

Ashland currently expects net proceeds from the sale to total approximately $1 billion and anticipates that the proceeds will be primarily used to reduce outstanding debt.

The transaction is expected to close prior to the end of the June 2019 quarter, contingent on certain customary regulatory approvals, standard closing conditions and completion of required employee information and consultation processes. Upon the closing of this transaction, Ashland currently expects to recognize a gain within the Statements of Consolidated Comprehensive Income (Loss).

Significant Accounting Policies (Policies)	12 Months Ended
Significant Accounting Policies (Policies)	Sep. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Principles of consolidation and basis of presentation	Principles of consolidation and basis of presentation On September 20, 2016, Ashland was reincorporated under the laws of the State of Delaware through a tax-free reorganization under a new holding company structure (the Reorganization). As a result of the Reorganization, Ashland Global Holdings Inc. replaced Ashland Inc. as the publicly held corporation and, through its subsidiaries, now conducts all of the operations that historically were conducted by Ashland Inc. Pursuant to the terms of the Reorganization, each outstanding share of Ashland common stock was automatically converted into one share of Ashland Global Holdings Inc. common stock. Following consummation of the Reorganization, (i) Ashland Inc. was converted into Ashland LLC, an indirect, wholly owned subsidiary of Ashland Global Holdings Inc., and (ii) Ashland Global Holdings Inc., as the new holding company, through its subsidiaries, conducts all of the operations conducted by Ashland Inc. immediately prior to the Reorganization. The Consolidated Financial Statements include the accounts of Ashland Global Holdings Inc. and its majority owned subsidiaries and, when applicable, entities for which Ashland has a controlling financial interest or is the primary beneficiary (Ashland). For entities for which Ashland has a controlling financial interest but owns less than 100%, the outside stockholders’ interests are shown as noncontrolling interests. Investments in joint ventures and 20% to 50% owned affiliates where Ashland has the ability to exert significant influence are accounted for under the equity method. The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and U.S. Securities and Exchange Commission (SEC) regulations. All intercompany transactions and balances have been eliminated. Additionally, certain prior period data, primarily related to discontinued operations, have been reclassified in the Consolidated Financial Statements and accompanying notes to conform to the current period presentation, as further described in this section. On May 12, 2017, Ashland completed the distribution of its remaining 170 million shares of common stock of Valvoline Inc. which represented approximately 83% of the total outstanding shares of Valvoline Inc.'s common stock. This distribution of Valvoline represented a strategic shift in Ashland's business and, in accordance with U.S. GAAP, qualified as a discontinued operation. Accordingly, Valvoline's assets, liabilities, operating results and cash flows for all periods presented have been classified as discontinued operations within the Consolidated Financial Statements. See Note B for additional information on the separation of Valvoline Inc. The term Valvoline as used herein, depending on context, refers to either Valvoline Inc. or Valvoline as a previous reportable segment of Ashland. Subsequent to completing the separation from Valvoline Inc., Ashland's operations are managed within the following three reportable segments: Specialty Ingredients, Composites and Intermediates and Solvents. During the periods presented in the Consolidated Financial Statements, Ashland sold certain assets in its portfolio of businesses which, in accordance with U.S. GAAP, were not reflected as discontinued operations. See Notes D and R for additional information on these transactions as well as Ashland’s current reportable segment results.
Use of estimates, risks and uncertainties	Use of estimates, risks and uncertainties The preparation of Ashland’s Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. Significant items that are subject to such estimates and assumptions include, but are not limited to, long-lived assets (including goodwill and other intangible assets), income taxes and liabilities and receivables associated with asbestos litigation and environmental remediation. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ significantly from the estimates under different assumptions or conditions. Ashland’s results are affected by domestic and international economic, political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies and changes in the prices of certain key raw materials, can have a significant effect on operations. While Ashland maintains reserves for anticipated liabilities and carries various levels of insurance, Ashland could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings relating to asbestos, environmental remediation or other matters.
Cash and cash equivalents	Cash and cash equivalents Cash and cash equivalents include cash on hand and highly liquid investments maturing within three months after purchase.
Allowance for doubtful accounts	Allowance for doubtful accounts Ashland records an allowance for doubtful accounts as a best estimate of the amount of probable credit losses for accounts receivable. Ashland reviews this allowance and considers factors such as customer credit, past transaction history with the customer and changes in customer payment terms when determining whether the collection of a receivable is reasonably assured. Past due balances over 90 days and over a specified amount are reviewed individually for collectibility. The allowance for doubtful accounts is adjusted when it becomes probable a receivable will not be recovered.
Inventories	Inventories Inventories are carried at the lower of cost or net realizable value. Inventories are primarily stated at cost using the weighted-average cost method. In addition, certain chemicals with a replacement cost of $124 million at September 30, 2018 and $108 million at September 30, 2017 are valued at cost using the last-in, first-out (LIFO) method.
Property, Plant and Equipment	Property, plant and equipment The cost of property, plant and equipment is depreciated by the straight-line method over the estimated useful lives of the assets. Buildings are depreciated principally over 12 to 35 years and machinery and equipment principally over 2 to 25 years. Such costs are periodically reviewed for recoverability when impairment indicators are present. Such indicators include, among other factors, operating losses, unused capacity, market value declines and technological obsolescence. Recorded values of asset groups of property, plant and equipment that are not expected to be recovered through undiscounted future net cash flows are written down to current fair value, which generally is determined from estimated discounted future net cash flows (assets held for use) or net realizable value (assets held for sale).
Goodwill and other intangibles	Goodwill and other intangibles 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 reviews goodwill for impairment based on its identified reporting units, which are defined as operating segments or groupings of businesses one level below the operating segment level. Ashland tests goodwill for impairment by comparing the carrying value to the estimated fair value of its reporting units. In prior years, Ashland performed a quantitative goodwill impairment test and determined the fair value of its reporting units using a combination of discounted cash flow models and valuations based on earnings multiples for guideline public companies in each reporting unit’s industry peer group, when externally quoted market prices are not readily available. If this comparison indicates that a reporting unit’s estimated fair value is less than its carrying value, it is adjusted to its calculated fair value and the adjustment represents the impairment charge. In the current year for its July 1, 2018 goodwill impairment test, Ashland performed an extensive qualitative analysis in order to determine whether it was necessary to perform a quantitative goodwill impairment test. In performing this analysis, Ashland considered relevant events and circumstances such as macroeconomic conditions, industry and market considerations, overall financial performance and changes in management and business strategy, changes in carrying value, among others. Ashland considered how these relevant events and circumstances have changed since its most recent quantitative goodwill impairment test performed in the prior year as of July 1, 2017. After weighting the significance of these factors, Ashland determined that it was more likely than not that the fair value of its reporting units exceeds the carrying value and that a quantitative impairment test was not necessary to perform. Ashland tests its indefinite-lived intangible assets, principally trademarks and trade names. If the carrying value of an individual indefinite-lived intangible asset exceeds its fair value, such individual indefinite-lived intangible asset is written down by an amount equal to such excess. Similar to goodwill, Ashland first performs a qualitative analysis in order to determine whether it is necessary to perform a quantitative goodwill impairment test for the trademarks and trade names. If a quantitative analysis is deemed necessary, trademarks and trade names are valued using a “relief-from-royalty” valuation method compared to the carrying value. Significant assumptions inherent in the valuation methodologies include, but are not limited to, such estimates as future projected business results, growth rates, the weighted-average cost of capital for a market participant, and royalty and discount rates. Finite-lived intangible assets principally consist of certain trademarks and trade names, intellectual property, and customer lists. These intangible assets 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 reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Ashland monitors these changes and events on at least a quarterly basis. For further information on goodwill and other intangible assets, see Note I.
Derivative instruments	Derivative instruments Ashland regularly uses derivative instruments to manage its exposure to fluctuations in foreign currencies and certain commodities. All derivative instruments are recognized as either assets or liabilities on the balance sheet and are measured at fair value. Changes in the fair value of all derivatives are recognized immediately in the Statements of Consolidated Comprehensive Income (Loss) unless the derivative qualifies as a hedge of future cash flows or a hedge of a net investment in a foreign operation. Gains and losses related to an instrument that qualifies for hedge accounting are either recognized in the Statements of Consolidated Comprehensive Income (Loss) immediately to offset the gain or loss on the hedged item, or deferred and recorded in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income and subsequently recognized in the Statements of Consolidated Comprehensive Income (Loss) when the hedged item affects net income. The ineffective portion of the change in fair value of a hedge is recognized in income immediately. For additional information on derivative instruments, see Note G.
Restricted investments	Restricted investments On January 13, 2015, Ashland and Hercules LLC (formerly Hercules Incorporated), an indirect wholly-owned subsidiary of Ashland that was acquired in 2009, entered into a comprehensive settlement agreement related to certain insurance coverage for asbestos bodily injury claims with Underwriters at Lloyd’s, certain London companies and Chartis (AIG) member companies, along with National Indemnity Company and Resolute Management, Inc., under which Ashland and Hercules received a total of $398 million (the January 2015 asbestos insurance settlement). During 2015, Ashland placed $335 million of the settlement funds into a renewable annual trust that Ashland determined is restricted for the purpose of paying ongoing and future litigation defense and claim settlement costs incurred in conjunction with asbestos claims. These funds are presented primarily as noncurrent assets, with $30 million classified within other current assets in the Consolidated Balance Sheets as of September 30, 2018 and 2017. As of September 30, 2018 and 2017, the funds within the trust had a balance of $342 million and $332 million, respectively, and were primarily invested in equity and corporate bond investments with a portion maintained in demand deposits. The funds within the trust are classified as available-for-sale securities. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of related deferred income taxes, included in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income. Interest income and realized gains and losses on the available-for-sale securities are reported in the net interest and other financing expense caption in the Statements of Consolidated Comprehensive Income (Loss). See Note G for additional information regarding fair value of these investments within the trust.
Revenue recognition	Revenue recognition Sales generally are recognized when persuasive evidence of an arrangement exists, products are received or services are provided to customers, the sales price is fixed or determinable and collectibility is reasonably assured. For consignment inventory, title and risk of loss are transferred when the products have been consumed or used in the customer’s production process. The percentage of Ashland’s sales recognized from consignment inventory sales was 5% during 2018, and 6% during 2017 and 2016. Ashland reports all sales net of tax assessed by qualifying governmental authorities. Certain shipping and handling costs paid by the customer are recorded in sales, while those costs paid by Ashland are recorded in cost of sales. In May 2014, the FASB issued accounting guidance effective on October 1, 2018 that will change Ashland’s policy and disclosure requirements for revenue recognition treatment. See the new accounting pronouncements section within this Note A for further information.
Expense recognition	Expense recognition Cost of sales include material and production costs, as well as the costs of inbound and outbound freight, purchasing and receiving, inspection, warehousing, internal transfers and all other distribution network costs. Selling, general and administrative expense includes sales and marketing costs, advertising, customer support, environmental remediation, corporate and divisional administrative and other costs. Advertising costs ($5 million in 2018 and $6 million in both 2017 and 2016) and research and development costs ($85 million in 2018, $83 million in 2017 and $87 million in 2016) are expensed as incurred.
Income taxes	Income taxes Ashland is subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment in the forecasting of taxable income using historical and projected future operating results is required in determining Ashland’s provision for income taxes and the related assets and liabilities. The provision for income taxes includes income taxes paid, currently payable or receivable, and deferred taxes. Ashland recognizes the income tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Ashland evaluates and adjusts these accruals based on changing facts and circumstances. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities, and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Deferred tax assets are also recognized for the estimated future effects of tax loss and credit carryforwards. The effect on deferred taxes of changes in tax rates is recognized in the period in which the enactment date occurs. Valuation allowances are established when necessary on a jurisdictional basis to reduce deferred tax assets to the amounts expected to be realized. In the event that the actual outcome of future tax consequences differs from Ashland’s estimates and assumptions due to changes or future events such as tax legislation, geographic mix of earnings, completion of tax audits or earnings repatriation plans, the resulting change to the provision for income taxes could have a material effect on the Statements of Consolidated Comprehensive Income (Loss) and Consolidated Balance Sheets. For additional information on income taxes, see Note M.
Asbestos-related litigation	Asbestos-related litigation Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation (Riley) and the acquisition of Hercules in November 2008. Although Riley, a former subsidiary, was neither a producer nor a manufacturer of asbestos, its industrial boilers contained some asbestos-containing components provided by other companies. Hercules, an indirect wholly-owned subsidiary of Ashland, has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products sold by one of Hercules’ former subsidiaries to a limited industrial market. Prior to 2018, Ashland retained Hamilton, Rabinovitz & Associates, Inc. (HR&A) to assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs given various assumptions. During 2018, Ashland transitioned these responsibilities to Nathan Associates, Inc. (Nathan). The processes and methodologies used by Nathan are consistent with the ones historically employed by HR&A. The methodology used by Nathan to project future asbestos costs is based largely on Ashland’s recent experience, including claim-filing and settlement rates, disease mix, enacted legislation, open claims, and litigation defense. Ashland’s claim experience is compared to the results of previously conducted epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, Nathan estimates a range of the number of future claims that may be filed, as well as the related costs that may be incurred in resolving those claims. From the range of estimates, Ashland records the amount it believes to be the best estimate of future payments for litigation defense and claim settlement costs. For additional information on asbestos-related litigation, see Note O.
Environmental remediation	Environmental remediation Accruals for environmental remediation are recognized when it is probable a liability has been incurred and the amount of that liability can be reasonably estimated. Such costs are charged to expense if they relate to the remediation of conditions caused by past operations or are not expected to mitigate or prevent contamination from future operations. Liabilities are recorded at estimated cost values based on experience, assessments and current technology, without regard to any third-party recoveries and are regularly adjusted as environmental assessments and remediation efforts continue. For additional information on environmental remediation, see Note O.
Pension and other postretirement benefits	Pension and other postretirement benefits The funded status of Ashland’s pension and other postretirement benefit plans is recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at September 30, the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (PBO) and for the other postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation (APBO). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The measurement of the benefit obligation is based on Ashland’s estimates and actuarial valuations. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain key assumptions that require significant judgment, including, but not limited to, estimates of discount rates, expected return on plan assets, rate of compensation increases, interest rates and mortality rates. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. For additional information regarding plan assumptions and the current financial position of the pension and other postretirement plans, see Note N. Ashland recognizes the change in the fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for a remeasurement. The remaining components of pension and other postretirement benefits expense are recorded ratably on a quarterly basis. Pension and other postretirement benefits adjustments charged directly to cost of sales that are applicable to inactive participants are excluded from inventoriable costs. 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 (costs) caption on the Statements of Consolidated Comprehensive Income (Loss).
Foreign currency translation	Foreign currency translation Operations outside the United States are measured primarily using the local currency as the functional currency. Upon consolidation, the results of operations of the subsidiaries and affiliates whose functional currency is other than the U.S. dollar are translated into U.S. dollars at the average exchange rates for the year while assets and liabilities are translated at year-end exchange rates. Consistent with U.S. GAAP standards, adjustments to translate assets and liabilities into U.S. dollars are recorded in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income and are included in net earnings only upon sale or substantial liquidation of the underlying foreign subsidiary or affiliated company.
Stock incentive plans	Stock incentive plans Ashland recognizes compensation expense for stock incentive plans awarded to key employees and directors, primarily in the form of stock appreciation rights (SARs), restricted stock and restricted stock units, performance shares and other non-vested stock awards, that are generally based upon the grant-date fair value over the appropriate vesting period. Ashland utilizes several industry accepted valuation models to determine the fair value. For further information concerning stock incentive plans, see Note Q.
Earnings per share	Earnings per share The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Earnings per share are reported under the treasury stock method. Stock options and SARs for each reported year whose grant price was greater than the market price of Ashland Common Stock at the end of each fiscal year were not included in the computation of loss from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was 0.7 million for 2018, 1.1 million for 2017 and 1.2 million for 2016.
New accounting pronouncements	New accounting pronouncements Revenue recognition In May 2014, the FASB issued accounting guidance outlining a single comprehensive five step model for entities to use in accounting for revenue arising from contracts with customers (ASC 606 Revenue from Contracts with Customers). The new guidance and subsequent amendments to it supersedes most current revenue recognition guidance, in an effort to converge the revenue recognition principles within U.S. GAAP. This new guidance also requires entities to disclose certain quantitative and qualitative information regarding the nature, amount, timing and uncertainty of qualifying revenue and cash flows arising from contracts with customers. Entities have the option of using a full retrospective or a modified retrospective approach to adopt the new guidance. This guidance became effective for Ashland on October 1, 2018. Ashland formed an implementation team that evaluated the impact of the new standard on the Consolidated Financial Statements and the adoption method options available as well as the overall impact the new guidance will have on the organization. The assessment process consisted of categorizing Ashland’s revenue streams and reviewing the current internal accounting policies and practices to determine potential differences that would result from applying the requirements of the new standard to revenue contracts. Additional discussions and meetings with each revenue stream team occurred to solicit input, identify potential impacts and appropriate changes to Ashland’s business processes, systems and controls to support the revenue recognition and disclosure requirements under the new standard. Based on various assessments conducted, Ashland identified agreements with customers that contained elements of material rights and/or variable consideration. Ashland determined that these elements do not result in a material change to how revenue would be recognized for these agreements. Ashland has elected to adopt this standard using the modified retrospective approach. Ashland has finalized its assessment of the standard and determined that the overall impact will not be material to the Consolidated Financial Statements but does expect there to be significant additional disclosures within the Notes to Consolidated Financial Statements moving forward. Further, Ashland does not expect a significant change to its internal controls or the manner and timing of recognizing revenue. Leases In February 2016, the FASB issued new accounting guidance related to lease transactions. The main objective of this guidance is to increase transparency and comparability among organizations by requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by leases and to disclose key information about leasing arrangements. The presentation of the Statements of Consolidated Comprehensive Income (Loss) and the Statements of Consolidated Cash Flows is largely unchanged under this guidance. This guidance retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the current accounting literature. The guidance will become effective for Ashland on October 1, 2019 and it will have a significant effect on Ashland’s Consolidated Balance Sheet and disclosures. Ashland has formed an implementation team and is currently evaluating implementation options and quantifying the impact that this guidance will have within its Consolidated Financial Statements. In July 2018, the FASB amended this guidance to give entities the option to apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Ashland currently intends to utilize this transition method upon adopting the guidance. Other pronouncements In August 2018, the FASB issued guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Under the new guidance, the deferred implementation costs are amortized to expense over the term of the hosting arrangement. The term of the hosting arrangement includes the non-cancellable period of the cloud computing arrangement plus any optional renewal periods that are reasonably certain to be exercised by the customer. Additionally, an entity should present the capitalized implementation costs in the same line item that a prepayment for fees of the associated hosting arrangement are presented, and an entity should classify the cash flows from capitalized implementation costs in the same manner as the cash flows for the fees paid for the associated hosting arrangement. Ashland elected to early adopt this guidance immediately and apply it prospectively as permitted by the guidance. This guidance did not have a material impact on Ashland’s Consolidated Financial Statements during 2018. In February 2018, the FASB issued guidance which permits entities to reclassify tax effects stranded in accumulated other comprehensive income (AOCI) as a result of U.S. tax reform legislation to retained earnings. Additionally, this guidance requires entities to disclose whether they made an election to reclassify the tax effects and to disclose their accounting policy for releasing income tax effects from AOCI. This guidance becomes effective for Ashland on October 1, 2019. Ashland is currently evaluating the impact this guidance may have on Ashland’s Consolidated Financial Statements. In August 2017, the FASB issued accounting guidance amending the existing hedge accounting model to simplify various hedge documentation requirements while also expanding hedging abilities for certain nonfinancial and financial risk components. This guidance will become effective for Ashland on October 1, 2019. Ashland is currently evaluating the impact this guidance may have on Ashland's Consolidated Financial Statements. In March 2017, the FASB issued accounting guidance that changes how employers who sponsor defined benefit pension and/or postretirement benefit plans present the net periodic benefit cost in the Statement of Consolidated Comprehensive Income. This guidance requires employers to present the service cost component of net periodic benefit cost in the same caption within the Statement of Consolidated Comprehensive Income (Loss) as other employee compensation costs from services rendered during the period. All other components of the net periodic benefit cost will be presented separately outside of the operating income caption. This guidance must be applied retrospectively. Ashland elected to early adopt this guidance on October 1, 2017, which resulted in a reclassification of $4 million and $77 million from the selling, general and administrative expense and cost of sales captions to the other net periodic benefit income (costs) caption in the Statement of Consolidated Comprehensive Income (Loss) for 2017 and 2016, respectively. The components of net periodic benefit income (costs) reclassified primarily relate to interest cost, expected return on assets, curtailments, settlements and actuarial gains and losses. Ashland did not have to adjust the classification of service cost since it previously was recorded within the caption required by the new guidance. See Note K for additional information on net periodic benefit income (costs). In January 2017, the FASB issued accounting guidance which simplifies the subsequent measurement of goodwill by eliminating the second step of the two-step impairment test under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The guidance instead requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value. Ashland elected to early adopt this guidance in conjunction with its annual assessment of goodwill performed as of July 1, 2017. In March 2016, the FASB issued new accounting guidance for certain aspects of share-based payments to employees. This guidance requires all excess tax benefits and tax deficiencies related to share-based payments to be recognized as income tax expense in the Statements of Consolidated Comprehensive Income (Loss) instead of additional paid in capital, and changes the classification of excess tax benefits from a financing activity to an operating activity within the statement of cash flows. This guidance also allows entities to make an accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. In addition, this guidance increases the amount an employer can withhold to cover income taxes on awards and still qualify for equity classification and requires that cash paid by an employer when directly withholding shares for tax-withholding purposes be classified as a financing activity within Statements of Consolidated Cash Flows. The guidance became effective for Ashland and was adopted on October 1, 2017. The guidance specifically related to the Statements of Consolidated Comprehensive Income (Loss) was adopted prospectively while the guidance related to the Statements of Consolidated Cash Flows was adopted retrospectively, as required by the guidance. Additionally, Ashland made a policy election to account for forfeitures when they occur across all share-based awards. Upon adoption, the overall impact on Ashland's Consolidated Financial Statements was not significant. In January 2016, the FASB issued accounting guidance related to the recognition and measurement as well as the presentation and disclosures for certain financial instruments. Most notably, the guidance requires entities to measure equity investments at fair value and to recognize any changes in fair value in net income rather than accumulated other comprehensive income. The guidance does not change the recognition and measurement of investments in debt securities or loans. As a result of the implementation of this guidance, unrealized gains and losses from Ashland’s available-for-sale equity securities will be recorded within the Statements of Consolidated Comprehensive Income (Loss) instead of the accumulated other comprehensive income section of equity within the Consolidated Balance Sheets. The impact of implementing this new guidance could have a significant impact on Ashland’s Statements of Consolidated Comprehensive Income (Loss) in prospective periods depending on the fluctuations of unrealized gains and losses within the available-for-sale equity securities portfolio. The guidance will become effective for Ashland on October 1, 2018. For further information on Ashland’s available-for-sale investment securities see Note G.
Fair Value of Financial Instruments Policy	As required by U.S. GAAP, Ashland uses applicable guidance for defining fair value, the initial recording and periodic remeasurement of certain assets and liabilities measured at fair value and related disclosures for instruments measured at fair value. Fair value accounting guidance establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). An instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument’s fair value measurement. The three levels within the fair value hierarchy are described as follows. Level 1 – Observable inputs such as unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect Ashland’s own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include Ashland’s own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment. For assets that are measured using quoted prices in active markets (Level 1), the total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs (Level 2) are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability. For all other assets and liabilities for which unobservable inputs are used (Level 3), fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models that Ashland deems reasonable.
Goodwill and Intangible Assets, Goodwill	Ashland reviews goodwill for impairment annually or when events and circumstances indicate an impairment may have occurred. This annual assessment is performed as of July 1 and consists of Ashland determining each reporting unit’s current fair value compared to its current carrying value. Ashland determined that its reporting units for the allocation of goodwill are its three reportable segments: Specialty Ingredients, Composites and Intermediates and Solvents. As part of the goodwill impairment assessment, Ashland compares the carrying value of each reporting unit to its respective estimated fair value. For its July 1, 2018 annual goodwill impairment assessment, Ashland performed an extensive qualitative analysis in order to determine whether it was necessary to perform a quantitative goodwill impairment test. In performing this analysis, Ashland considered relevant events and circumstances such as macroeconomic conditions, industry and market considerations, overall financial performance and changes in management and business strategy, changes in carrying value, among others. Ashland considered how these relevant events and circumstances have changed since its most recent quantitative goodwill impairment test performed in the prior year as of July 1, 2017. After weighting the significance of these factors, Ashland determined that it was more likely than not that the fair value of its reporting units exceeds the current carrying value and that a quantitative impairment test was not necessary to perform. Thus, Ashland concluded no impairment existed for any of its reporting units for its July 1, 2018 annual assessment. During 2016, due to the deterioration in the butanediol commodity in which Intermediates and Solvents operates, Ashland determined that the carrying value of the Intermediates and Solvents reporting unit exceeded its fair value at July 1, 2016 which resulted in the reporting unit failing the first step of the goodwill impairment test. Ashland then performed the second step of the goodwill impairment test, which involved, among other things, obtaining third-party appraisals of substantially all of Intermediates and Solvents tangible and intangible assets. Based on the results of its goodwill impairment testing as of July 1, 2016, Ashland recorded a pre-tax goodwill impairment charge of $171 million in the fourth quarter of 2016, which in addition to a $10 million impairment related to Intermediates and Solvents property, plant and equipment, resulted in a total $181 million impairment charge for Intermediates and Solvents during 2016. A portion of the goodwill impairment was nondeductible for tax purposes. Ashland’s assessment of an impairment charge on any of these remaining assets currently classified as having indefinite lives, including goodwill, could result in additional impairment charges in future periods if any or all of the following events were to occur with respect to a particular reporting unit: 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 other assumptions, economic deterioration that is more severe or of a longer duration than anticipated, or another significant economic event.
Intangible Assets Finite Lived Policy	Intangible assets principally consist of trademarks and trade names, intellectual property, and customer 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.
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived	Ashland annually reviews indefinite-lived intangible assets for possible impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable.
Segment Reporting	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 is the primary measure on the Statements of Consolidated Comprehensive Income (Loss) that is reviewed by the chief operating decision maker in assessing each reportable segment’s financial performance.

Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2018

Valuation and Qualifying Accounts Disclosure [Line Items]

Summary of Inventories

The following summarizes Ashland’s inventories as of the Consolidated Balance Sheet dates.

(In millions)	2018			2017
Finished products	$	402		$	390
Raw materials, supplies and work in process		268			245
LIFO reserves		(7	)		(1	)
	$	663		$	634

Computation of Basic and Diluted Earnings per Share

(In millions except per share data)	2018		2017			2016
Numerator
Numerator for basic and diluted EPS -
Income (loss) from continuing operations, net of tax	$	105	$	(105	)	$	(283	)
Denominator
Denominator for basic EPS - Weighted-average
common shares outstanding		63		62			63
Share based awards convertible to common shares (a)		1		—			—
Denominator for diluted EPS - Adjusted weighted -
average shares and assumed conversions		64		62			63
EPS from continuing operations
Basic	$	1.68	$	(1.69	)	$	(4.51	)
Diluted		1.66		(1.69	)		(4.51	)

(a)	As a result of the loss from continuing operations for 2017 and 2016, the effect of the share-based awards convertible to common shares would be antidilutive. In accordance with U.S. GAAP, they have been excluded from the diluted EPS calculation.

Allowance for Doubtful Accounts [Member]

Valuation and Qualifying Accounts Disclosure [Line Items]

Schedule of Valuation and Qualifying Accounts Disclosure

A progression of activity in the allowance for doubtful accounts is presented in the following table.

(In millions)	2018			2017			2016
Allowance for doubtful accounts - beginning of year	$	9		$	10		$	7
Adjustments to net income		2			4			4
Reserves utilized		(5	)		(4	)		(2	)
Other changes		—			(1	)		1
Allowance for doubtful accounts - end of year	$	6		$	9		$	10

Inventory Reserve [Member]

Valuation and Qualifying Accounts Disclosure [Line Items]

Schedule of Valuation and Qualifying Accounts Disclosure

A progression of activity in the inventory reserves, which reduce the amounts of finished products and raw materials, supplies and work in process reported, is presented in the following table.

(In millions)	2018			2017			2016
Inventory reserves - beginning of year	$	29		$	31		$	31
Adjustments to net income		5			6			6
Reserves utilized		(10	)		(8	)		(6	)
Inventory reserves - end of year	$	24		$	29		$	31

Valuation Allowance of Deferred Tax Assets [Member]

Valuation and Qualifying Accounts Disclosure [Line Items]

Schedule of Valuation and Qualifying Accounts Disclosure

A progression of activity in the tax valuation allowances is presented in the following table.

(In millions)	2018			2017			2016
Tax valuation allowances - beginning of year	$	122		$	136		$	103
Adjustments to income tax expense (benefit)		(5	)		27			43
Reserves utilized		(38	)		(41	)		(10	)
Tax valuation allowances - end of year	$	79		$	122		$	136

Valvoline (Tables)

12 Months Ended

Sep. 30, 2018

Valvoline [Abstract]

Condensed Balance Sheet, Valvoline at Date of Distribution

The distribution was recorded at the carrying amount of Valvoline Inc.'s net assets which was a deficit of $187 million as of May 12, 2017, as follows:

	May 12
(In millions)	2017
ASSETS
Current assets
Cash		179
Accounts receivable, net		385
Inventories		153
Other current assets		24
Total current assets		741
Noncurrent assets
Net property, plant and equipment		357
Goodwill		329
Equity and other unconsolidated investments		31
Deferred income taxes		391
Other noncurrent assets		93
Total noncurrent assets		1,201
Total assets	$	1,942
LIABILITIES AND EQUITY
Current liabilities
Short-term debt		75
Current portion of long-term debt		16
Trade and other payables		353
Other current liabilities		34
Total current liabilities		478
Noncurrent liabilities
Long-term debt		662
Employee benefit obligations		826
Other long-term liabilities		163
Total noncurrent liabilities		1,651
Total liabilities	$	2,129
Net deficit	$	(187	)

Acquisitions (Tables)

12 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Schedule of Recognized Assets Acquired and Liabilities Assumed

The purchase price allocation was finalized during 2018 and the following table summarizes the values of the assets acquired and liabilities assumed at the date of acquisition.

	At
	May 17, 2017
Purchase price allocation (in millions)	As Adjusted
Assets:
Accounts receivable		52
Inventory		74
Other current assets		4
Intangible assets		330
Goodwill		288
Property, plant and equipment		94
Other noncurrent assets		17
Liabilities:
Accounts payable		(33	)
Deferred tax - net		(132	)
Other noncurrent liabilities		(14	)
Total purchase price	$	680

Schedule of Finite-Lived Intangible Assets as Part of Business Combination

The following details the total intangible assets identified as of May 17, 2017.

			Weighted-average
			amortization period
Intangible asset type (in millions)	Value		(years)
Trademarks and trade names	$	26		15
Intellectual property		68		22
Customer and supplier relationships		236		20
Total	$	330

Results of Operations

The following table provides sales and operating income from the acquired Pharmachem operations included in Ashland’s 2017 results.

Pharmachem results of operations
(In millions)	2017 (a)
Sales	$	104
Operating income		7

(a)	Amounts represent the sales and results of operations for the period May 17, 2017 through September 30, 2017, the period for which Pharmachem was owned during 2017.

Business Acquisition, Pro Forma Information

The following unaudited pro forma information for 2017 and 2016 assumes the acquisition of Pharmachem occurred at the beginning of the respective periods presented.

Unaudited pro forma information
(In millions)	2017		2016
Sales	$	3,434	$	3,321
Net income (loss)		31		(27	)

Discontinued Operations (Tables)

12 Months Ended

Sep. 30, 2018

Discontinued Operations And Disposal Groups [Abstract]

Components of Consolidated Comprehensive Income (Loss) Related to Discontinued Operations

Components of amounts reflected in the Statements of Consolidated Comprehensive Income (Loss) related to discontinued operations are presented in the following table for each of the years ended September 30.

(In millions)	2018			2017			2016
Income (loss) from discontinued operations
Valvoline	$	(1	)	$	240		$	444
Asbestos-related litigation		14			(31	)		(37	)
Water Technologies		—			1			7
Distribution		(11	)		(5	)		(2	)
Income before taxes		2			205			412
Income tax benefit (expense)
Benefit (expense) related to income (loss) from discontinued operations
Valvoline		—			(81	)		(158	)
Asbestos-related litigation		(1	)		6			7
Water Technologies		3			1			(7	)
Distribution		5			2			1
Income from discontinued operations (net of taxes)	$	9		$	133		$	255

Valvoline Separation

(In millions)	2017 (a)			2016
Income from discontinued operations attributable to Valvoline
Sales	$	1,237		$	1,929
Cost of sales		(750	)		(1,168	)
Selling, general and administrative expense		(234	)		(314	)
Research and development expense		(8	)		(13	)
Equity and other income		17			20
Operating income of discontinued operations		262			454
Net loss on acquisitions and divestitures		—			(1	)
Net interest and other financing expense		(22	)		(9	)
Pretax income of discontinued operations		240			444
Income tax expense		(81	)		(158	)
Income from discontinued operations	$	159		$	286

(a)	Results in 2017 reflect activity through May 12, 2017 when Valvoline was fully separated, as previously discussed.

Restructuring And Related Activities [Abstract]

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

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+ Details

Restructuring Activities (Tables)

12 Months Ended

Sep. 30, 2018

Summary of Amount of Restructuring Reserves Related to Program

(In millions)	Severance costs		Facility costs			Total
Balance as of September 30, 2017	$	—	$	—		$	—
Reserve adjustments		36		9			45
Utilization (cash paid)		—		(2	)		(2	)
Balance as of September 30, 2018	$	36	$	7		$	43

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Summary of Financial Instruments Subject to Recurring Fair Value Measurements

					Quoted prices
					in active		Significant
					markets for		other		Significant
					identical		observable		unobservable
	Carrying		Total fair		assets		inputs		inputs
(In millions)	value		value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	294	$	294	$	294	$	—	$	—
Restricted investments (a)		342		342		342		—		—
Deferred compensation investments (b)		165		165		—		165		—
Investments of captive insurance company (b)		3		3		3		—		—
Foreign currency derivatives		11		11		—		11		—
Total assets at fair value	$	815	$	815	$	639	$	176	$	—

Liabilities
Foreign currency derivatives	$	3	$	3	$	—	$	3	$	—

(a)	Included in restricted investments and $30 million within other current assets in the Consolidated Balance Sheets.

(b)	Included in other noncurrent assets in the Consolidated Balance Sheets.

The following table summarizes financial instruments subject to recurring fair value measurements as of September 30, 2017.

					Quoted prices
					in active		Significant
					markets for		other		Significant
					identical		observable		unobservable
	Carrying		Total fair		assets		inputs		inputs
(In millions)	value		value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	566	$	566	$	566	$	—	$	—
Restricted investments (a)		332		332		332		—		—
Deferred compensation investments (b)		158		158		—		158		—
Investments of captive insurance company (b)		3		3		3		—		—
Foreign currency derivatives		2		2		—		2		—
Total assets at fair value	$	1,061	$	1,061	$	901	$	160	$	—

Liabilities
Foreign currency derivatives	$	36	$	36	$	—	$	36	$	—

(a)	Included in restricted investments and $30 million within other current assets in the Consolidated Balance Sheets.

(b)	Included in other noncurrent assets in the Consolidated Balance Sheets.

Summary of Available-for-sale Securities Portfolio

The following table provides a summary of the activity within the available-for-sale securities portfolio as of September 30, 2018 and 2017:

(In millions)	2018			2017
Original cost	$	335		$	335
Accumulated adjustments, net		(38	)		(24	)
Adjusted cost, beginning of year (a)		297			311
Investment income (b)		8			9
Net unrealized gain		54			35
Realized gain		6			2
Settlement funds		10			2
Disbursements		(33	)		(27	)
Fair value	$	342		$	332

(a)	The adjusted cost of the demand deposit includes accumulated investment income, realized gains, disbursements and settlements recorded in previous periods.

(b)	Investment income relates to the demand deposit and includes interest income as well as dividend income transferred from the equity and corporate bond mutual funds.

The following table presents gross unrealized gains and losses for the available-for-sale securities as of September 30, 2018 and 2017:

			Gross		Gross
(In millions)	Adjusted Cost		Unrealized Gain		Unrealized Loss			Fair Value
As of September 30, 2018
Demand Deposit	$	20	$	—	$	—		$	20
Equity Mutual Fund		148		59		—			207
Corporate bond Mutual Fund		120		—		(5	)		115
Fair value	$	288	$	59	$	(5	)	$	342

As of September 30, 2017
Demand Deposit	$	9	$	—	$	—		$	9
Equity Mutual Fund		168		34		—			202
Corporate bond Mutual Fund		120		1		—			121
Fair value	$	297	$	35	$	—		$	332

Summary of Investment Income, Realized Gains and Disbursements Related to Investments

The following table presents the investment income, realized gains and disbursements related to the investments within the portfolio during 2018, 2017 and 2016.

(In millions)	2018			2017			2016
Investment income	$	8		$	9		$	8
Realized gains		6			2			—
Disbursements		(33	)		(27	)		(33	)

Summary of Net Gains and Losses on Foreign Currency Derivatives

The following table summarizes the gains and losses recognized during 2018, 2017 and 2016 within the Statements of Consolidated Comprehensive Income (Loss).

(In millions)		2018				2017				2016
Foreign currency derivative gain (loss)		$	(32	)		$	3			$	6

Summary of Fair Values of Outstanding Foreign Currency Derivatives

(In millions)	2018		2017
Foreign currency derivative assets	$	11	$	2
Notional contract values		1,209		79

Foreign currency derivative liabilities	$	3	$	36
Notional contract values		755		1,601

Property, Plant and Equipment (Tables)

12 Months Ended

Sep. 30, 2018

Property Plant And Equipment [Abstract]

Components of Property, Plant and Equipment in Consolidated Balance Sheets

The following table describes the various components of property, plant and equipment within the Consolidated Balance Sheets.

(In millions)	2018			2017
Land	$	159		$	150
Buildings		603			547
Machinery and equipment		2,880			2,840
Construction in progress		205			225
Total property, plant and equipment (gross)		3,847			3,762
Accumulated depreciation		(1,948	)		(1,792	)
Total property, plant and equipment (net)	$	1,899		$	1,970

Summary of Property, Plant and Equipment Charges Included in Statements of Consolidated Comprehensive Income

The following table summarizes various property, plant and equipment charges included within the Statements of Consolidated Comprehensive Income.

(In millions)	2018		2017		2016
Depreciation	$	217	$	219	$	226
Capitalized interest		—		1		1

Goodwill and Other Intangibles (Tables)

12 Months Ended

Sep. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Goodwill by Reportable Segment

The following is a progression of goodwill by reportable segment for the years ended September 30, 2018 and 2017.

	Specialty						Intermediates
(In millions)	Ingredients			Composites			and Solvents		(a)	Total
Balance at September 30, 2016	$	1,991		$	147		$	—		$	2,138
Acquisition (b)		287			—			—			287
Currency translation		37			3			—			40
Balance at September 30, 2017		2,315			150			—			2,465
Acquisition (c)		5			—			—			5
Currency translation		(16	)		(5	)		—			(21	)
Balance at September 30, 2018	$	2,304		$	145		$	—		$	2,449

(a)	As of September 30, 2018 and 2017, there was accumulated impairment of $171 million related to the Intermediates and Solvents reportable segment.

(b)	Relates to the acquisition of Pharmachem during 2017. See Note C for more information.

(c)	Relates to the acquisition of Vornia Limited and subsequent adjustments to the initial purchase price allocation of Pharmachem during 2018. See Note C for more information.

Summary of Intangible Assets

Intangible assets were comprised of the following as of September 30, 2018 and 2017.

	2018							2017
	Gross					Net		Gross					Net
	carrying		Accumulated			carrying		carrying		Accumulated			carrying
(In millions)	amount		amortization			amount		amount		amortization			amount
Definite-lived intangible assets
Trademarks and trade names	$	67	$	(25	)	$	42	$	67	$	(22	)	$	45
Intellectual property		759		(373	)		386		757		(326	)		431
Customer and supplier relationships		770		(274	)		496		777		(235	)		542
Total definite-lived intangible assets		1,596		(672	)		924		1,601		(583	)		1,018

Indefinite-lived intangible assets
Trademarks and trade names		301		—			301		301		—			301
Total intangible assets	$	1,897	$	(672	)	$	1,225	$	1,902	$	(583	)	$	1,319

Debt (Tables)

12 Months Ended

Sep. 30, 2018

Summary of Current and Long-term Debt

The following table summarizes Ashland’s current and long-term debt at September 30, 2018 and 2017.

(In millions)	2018			2017
4.750% notes, due 2022	$	1,083		$	1,082
Term loan B, due 2024		593			599
6.875% notes, due 2043		376			376
Term loan A, due 2022		195			250
Accounts receivable securitizations		195			56
6.50% junior subordinated notes, due 2029		52			51
Revolving credit facility		25			173
Medium-term notes, due 2019, interest of 9.4% at September 30, 2018		5			5
Term loan A, due 2020		—			250
Other (a)		5			(23	)
Total debt		2,529			2,819
Short-term debt (includes current portion of long-term debt)		(254	)		(235	)
Long-term debt (less current portion and debt issuance costs)	$	2,275		$	2,584

(a)	Other includes $21 million and $25 million of debt issuance costs as of September 30, 2018 and 2017, respectively. Additionally, as of September 30, 2018, other included a European short-term loan facility with an outstanding balance of $23 million.

Summary of Net Interest and Other Financing Expense (Income)

Net interest and other financing expense (income)

(In millions)	2018			2017			2016
Interest expense (a)	$	136		$	232		$	180
Interest income		(4	)		(4	)		(5	)
Available-for-sale securities income (b)		(14	)		(11	)		(8	)
Other financing costs (c)		4			17			6
	$	122		$	234		$	173

(a)	Includes $1 million, $101 million and $6 million of accelerated accretion and/or amortization for original issue discounts and debt issuance costs during 2018, 2017 and 2016, respectively.

(b)	Represents investment income related to the restricted investments discussed in Note G.

(c)	Includes costs of $16 million related to early redemption premium payments and bondholder consent fees for the 2022 and 2018 Senior Notes and a net gain of $5 million related to the repayment of the 2029 Notes during 2017.

Summary of Debt Issuance Cost Amortization

The following table details the debt issuance cost and original issue discount amortization included in interest expense during 2018, 2017 and 2016.

(In millions)	2018		2017		2016
Normal amortization	$	8	$	8	$	12
Accelerated amortization (a)		1		101		6
Total	$	9	$	109	$	18

(a)	Fiscal year 2017 includes $92 million of accelerated accretion of the recorded debt discount for the 2029 Notes, while the remaining amounts in each year related to the accelerated amortization of debt issuance costs.

Other Noncurrent Assets and Liabilities (Tables)

12 Months Ended

Sep. 30, 2018

Other Noncurrent Assets And Liabilities [Abstract]

Schedule of Other Assets and Other Liabilities

The following table provides the components of other noncurrent assets in the Consolidated Balance Sheets as of September 30.

(In millions)	2018		2017
Deferred compensation investments	$	165	$	158
Tax and tax indemnity receivables		74		86
Life insurance policies (a)		52		15
Manufacturing catalyst supplies		40		37
Defined benefit plan assets		35		27
Equity and other unconsolidated investments		29		32
Land use rights		15		16
Environmental insurance receivables		11		14
Debt issuance costs		6		6
Notes receivable		2		5
Other		19		26
	$	448	$	422

(a)	The increase in life insurance policies during 2018 was primarily due to a $37 million repayment of a corporate-owned life insurance policy loan.

The following table provides the components of other noncurrent liabilities in the Consolidated Balance Sheets as of September 30.

(In millions)	2018		2017
Tax liabilities	$	176	$	179
Environmental remediation reserves		147		121
Deferred compensation		47		50
Other		56		50
	$	426	$	400

Lease Commitments (Tables)

12 Months Ended

Sep. 30, 2018

Leases [Abstract]

Schedule of Rent Expense

Rental expense under operating leases for continuing operations was as follows:

(In millions)	2018			2017			2016
Minimum rentals (including rentals under short-term leases)	$	54		$	48		$	50
Contingent rentals		—			—			1
Sublease rental income		(1	)		(1	)		(1	)
	$	53		$	47		$	50

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Summary of Provision for Income Taxes Related to Continuing Operations

A summary of the provision for income taxes related to continuing operations follows.

(In millions)	2018			2017			2016
Current
Federal	$	29		$	(10	)	$	(56	)
State		(1	)		—			(8	)
Foreign		78			46			68
		106			36			4
Deferred		(97	)		(29	)		(29	)
Income tax expense (benefit)	$	9		$	7		$	(25	)

Summary of Temporary Differences of Deferred Tax Assets and Liabilities

Temporary differences that give rise to significant deferred tax assets and liabilities as of September 30 are presented in the following table.

(In millions)	2018			2017
Deferred tax assets
Foreign net operating loss carryforwards (a)	$	43		$	69
Employee benefit obligations		31			47
Environmental, self-insurance and litigation reserves (net of receivables)		120			192
State net operating loss carryforwards (net of unrecognized tax benefits) (b)		48			62
Compensation accruals		31			72
Credit carryforwards (net of unrecognized tax benefits) (c)		10			26
Other items		33			47
Valuation allowances (d)		(79	)		(122	)
Total deferred tax assets		237			393
Deferred tax liabilities
Goodwill and other intangibles (e)		273			432
Property, plant and equipment		215			302
Unremitted earnings		—			6
Total deferred tax liabilities		488			740
Net deferred tax liability	$	(251	)	$	(347	)

(a)	Gross net operating loss carryforwards of $141 million will expire in future years beyond 2020 or have no expiration.

(b)	Apportioned net operating loss carryforwards generated of $1.1 billion will expire in future years as follows: $69 million in 2019, $82 million in 2020 and the remaining balance in other future years.

(c)	Credit carryforwards consist primarily of foreign tax credits of $4 million expiring in future years beyond 2020, and miscellaneous tax credits that will expire in 2024 or other future years.

(d)	Valuation allowances primarily relate to certain state and foreign net operating loss carryforwards.

(e)	The total gross amount of goodwill as of September 30, 2018 expected to be deductible for tax purposes is $29 million.

Summary of Income from Continuing Operations Before Income Taxes and Reconciliation of Provision for Income Taxes

(In millions)	2018			2017			2016
Income (loss) from continuing operations before income taxes
United States	$	(163	)	$	(376	)	$	(557	)
Foreign		277			278			249
Loss from continuing operations before income taxes	$	114		$	(98	)	$	(308	)

Income taxes computed at U.S. statutory rate (a)	$	28		$	(34	)	$	(108	)
Increase (decrease) in amount computed resulting from
Tax reform (b)		44			—			—
Uncertain tax positions		(12	)		12			24
Foreign dividends, deemed inclusions and other restructuring (c)		48			124			111
Foreign tax credits		(54	)		(29	)		(93	)
Valuation allowance changes (d)		(5	)		(3	)		33
Research and development credits		(5	)		(6	)		(9	)
State taxes (e)		(2	)		(15	)		(3	)
Goodwill impairment		—			—			55
International rate differential		(55	)		(63	)		(57	)
Other items (f)		22			21			22
Income tax expense (benefit)	$	9		$	7		$	(25	)

(a)	The domestic tax rates are 35% for 2016 and 2017, and 24.5% for 2018. For 2019 and forward, the domestic tax rate is expected to be 21%.

(b)

(c)	2018 includes a gain recognition of $6 million, deemed inclusions of $13 million and tax restructuring costs of $23 million.

(d)

(e)	2018 includes a $27 million tax benefit for a valuation reserve release against state net operating losses and $26 million of tax expense for state tax rate changes; 2017 includes $6 million of benefit for state tax rate changes primarily related to the final distribution of Valvoline.

(f)

Summary of Changes in Unrecognized Tax Benefits

Changes in unrecognized tax benefits were as follows:

(In millions)
Balance at September 30, 2016	$	168
Increases related to positions taken on items from prior years		8
Decreases related to positions taken on items from prior years		(3	)
Increases related to positions taken in the current year		14
Lapse of statute of limitations		(3	)
Acquisition of Pharmachem		11
Settlement of uncertain tax positions with tax authorities		(1	)
Balance at September 30, 2017 (a)		194
Increases related to positions taken on items from prior years		5
Decreases related to positions taken on items from prior years		(40	)
Increases related to positions taken in the current year		14
Lapse of statute of limitations		(5	)
Settlement of uncertain tax positions with tax authorities		(4	)
Balance at September 30, 2018 (a)	$	164

(a)	Ashland has indemnity receivables from Valvoline and Pharmachem for $39 million and $48 million of the gross unrecognized tax benefits at September 30, 2018 and 2017, respectively.

Employee Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2018

Schedule of Costs of Retirement Plans

	Pension benefits									Other postretirement benefits
(In millions)	2018			2017			2016			2018			2017			2016
Net periodic benefit costs (income)
Service cost (a)	$	9		$	8		$	21		$	1		$	1		$	1
Interest cost (b)		10			8			94			1			2			3
Curtailment, settlement and other (b)		—			—			(64	)		—			—			(34	)
Expected return on plan assets (b)		(12	)		(11	)		(149	)		—			—			—
Amortization of prior service credit (b)		—			—			(1	)		—			—			(11	)
Actuarial (gain) loss (b)		(12	)		—			208			—			6			32
	$	(5	)	$	5		$	109		$	2		$	9		$	(9	)
Weighted-average plan assumptions (c)
Discount rate for service cost		2.51	%		1.92	%		3.95	%		3.93	%		3.93	%		4.07	%
Discount rate for interest cost		2.52	%		2.22	%		3.30	%		3.13	%		2.86	%		2.57	%
Rate of compensation increase		2.55	%		2.80	%		3.04	%
Expected long-term rate of return
on plan assets		3.33	%		3.41	%		6.71	%

(a)	Service cost was not impacted by new accounting guidance adopted in 2018 and is therefore still classified within the selling, general and administrative expense and cost of sales captions on the Statements of Consolidated Comprehensive Income (Loss). See Note A for additional information.

(b)	These components are now classified within the other net periodic benefit income (costs) caption on the Statements of Consolidated Comprehensive Income (Loss) due to the adoption of new accounting guidance in 2018. See Note A for additional information.

(c)	The plan assumptions discussed are a blended weighted-average rate for Ashland’s U.S. and non-U.S. plans.

Total Prior Service Credits Recognized In Accumulated Other Comprehensive Income

At September 30, 2018 and 2017, the amounts included in accumulated other comprehensive income are shown in the following table.

	Pension						Postretirement
(In millions)	2018			2017			2018		2017
Prior service credit	$	(4	)	$	(3	)	$	—	$	—

Schedule of Defined Benefit Plans Disclosures

							Other postretirement
	Pension plans						benefit plans
(In millions)	2018			2017			2018			2017
Change in benefit obligations
Benefit obligations at October 1	$	455		$	448		$	62		$	59
Service cost		9			8			1			1
Interest cost		10			8			1			2
Participant contributions		1			1			—			—
Benefits paid		(14	)		(12	)		(6	)		(6	)
Actuarial (gain) loss		(14	)		(20	)		—			6
Foreign currency exchange rate changes		(6	)		13			—			—
Other		(2	)		17			—			—
Curtailment and settlement		(8	)		(8	)		—			—
Benefit obligations at September 30	$	431		$	455		$	58		$	62
Change in plan assets
Value of plan assets at October 1	$	355		$	353		$	—		$	—
Actual return on plan assets		10			(9	)		—			—
Employer contributions		9			7			—			—
Participant contributions		1			1			—			—
Benefits paid		(14	)		(12	)		—			—
Foreign currency exchange rate changes		(6	)		8			—			—
Other		(9	)		7			—			—
Value of plan assets at September 30	$	346		$	355		$	—		$	—

Unfunded status of the plans	$	(85	)	$	(100	)	$	(58	)	$	(62	)

Amounts recognized in the balance sheet
Noncurrent benefit assets	$	35		$	27		$	—		$	—
Current benefit liabilities		(3	)		(3	)		(4	)		(4	)
Noncurrent benefit liabilities		(117	)		(124	)		(54	)		(58	)
Net amount recognized	$	(85	)	$	(100	)	$	(58	)	$	(62	)

Weighted-average plan assumptions
Discount rate		2.92	%		2.66	%		4.24	%		3.66	%
Rate of compensation increase		2.55	%		2.80	%

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

(In millions)	2018		2017
Projected benefit obligation	$	254	$	254
Accumulated benefit obligation		244		239
Fair value of plan assets		134		126

Schedule of Expected Benefit Payments

The following benefit payments, which reflect future service expectations, are projected to be paid from plan assets in each of the next five years and in aggregate for five years thereafter.

			Other
	Pension		postretirement
(In millions)	benefits		benefits
2019	$	20	$	4
2020		17		4
2021		17		4
2022		18		4
2023		19		4
2024 - 2028		104		20

Plan Asset Fair Value Heirarchy [Member]

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

			Quoted prices
			in active		Significant
			markets for		other		Significant
			identical		observable		unobservable
	Total fair		assets		inputs		inputs
(In millions)	value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	6	$	6	$	—	$	—
U.S. Government securities		19		—		19		—
Non-U.S. Government securities		56		—		56		—
Corporate debt instruments		147		—		147		—
Listed real assets		10		—		10		—
Asset-backed securities		22		—		22		—
Corporate stocks		31		—		31		—
Insurance contracts		55		—		55		—
Total assets at fair value	$	346	$	6	$	340	$	—

			Quoted prices
			in active		Significant
			markets for		other		Significant
			identical		observable		unobservable
	Total fair		assets		inputs		inputs
(In millions)	value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	18	$	18	$	—	$	—
Non-U.S. Government securities		103		—		103		—
Corporate debt instruments		123		—		123		—
Corporate stocks		67		—		67		—
Insurance contracts		44		—		44		—
Total assets at fair value	$	355	$	18	$	337	$	—

Plan Asset Allocation by Asset Type [Member]

Schedule of Allocation of Plan Assets

		Actual at September 30
(In millions)	Target	2018			2017
Plan assets allocation
Equity securities	5 - 45%		9	%		19	%
Fixed income securities	55 - 95%		88	%		81	%
Other	0 - 5%		3	%		0	%
			100	%		100	%

Litigation, Claims and Contingencies (Tables)

12 Months Ended

Sep. 30, 2018

Loss Contingencies [Line Items]

Reconciliation of Changes in the Environmental Contingencies and Asset Retirement Obligations Reserve

The following table provides a reconciliation of the changes in the environmental remediation reserves during 2018 and 2017.

(In millions)	2018			2017
Environmental remediation reserve - beginning of year	$	163		$	177
Disbursements		(37	)		(32	)
Revised obligation estimates and accretion		61			18
Environmental remediation reserve - end of year	$	187		$	163

Components of Environmental Remediation Expense

(In millions)	2018			2017			2016
Environmental expense	$	60		$	17		$	33
Accretion		1			1			2
Legal expense		6			8			8
Total expense		67			26			43

Insurance receivable		(2	)		(2	)		(3	)
Total expense, net of receivable activity (a)	$	65		$	24		$	40

(a)

Summary of Asbestos Claims Activity

Loss Contingencies [Line Items]

A summary of Ashland asbestos claims activity, excluding Hercules claims, follows.

(In thousands)	2018			2017			2016
Open claims - beginning of year		54			57			60
New claims filed		2			2			2
Claims settled		(1	)		(1	)		—
Claims dismissed		(2	)		(4	)		(5	)
Open claims - end of year		53			54			57

Progression of Activity in the Asbestos Reserve Accounts

A progression of activity in the asbestos reserve is presented in the following table.

(In millions)	2018			2017			2016
Asbestos reserve - beginning of year	$	419		$	415		$	409
Reserve adjustment		(8	)		36			37
Amounts paid		(31	)		(32	)		(31	)
Asbestos reserve - end of year (a)	$	380		$	419		$	415

(a)	Included $30 million and $34 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.

Progression of Insurance Receivable

A progression of activity in the Ashland insurance receivable is presented in the following table.

(In millions)	2018			2017			2016
Insurance receivable - beginning of year	$	155		$	151		$	150
Receivable adjustment		(5	)		15			16
Insurance settlement		—			(5	)		(4	)
Amounts collected		(10	)		(6	)		(11	)
Insurance receivable - end of year (a)	$	140		$	155		$	151

(a)	Included $15 million and $14 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.

Summary of Asbestos Claims Activity

Loss Contingencies [Line Items]

A summary of Hercules’ asbestos claims activity follows.

(In thousands)	2018			2017			2016
Open claims - beginning of year		12			15			20
New claims filed		2			1			1
Claims dismissed		(1	)		(4	)		(6	)
Open claims - end of year		13			12			15

Progression of Activity in the Asbestos Reserve Accounts

A progression of activity in the asbestos reserve is presented in the following table.

(In millions)	2018			2017			2016
Asbestos reserve - beginning of year	$	323		$	321		$	311
Reserve adjustments		(19	)		16			25
Amounts paid		(22	)		(14	)		(15	)
Asbestos reserve - end of year (a)	$	282		$	323		$	321

(a)	Included $20 million and $14 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.

Progression of Insurance Receivable

A progression of activity in the Hercules insurance receivable is presented in the following table.

(In millions)	2018			2017		2016
Insurance receivable - beginning of year	$	68		$	63	$	56
Receivable adjustment		(14	)		5		7
Insurance receivable - end of year	$	54		$	68	$	63

Equity Items (Tables)

12 Months Ended

Sep. 30, 2018

Components of Accumulated Other Comprehensive Income (Loss)

Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented in the following table, before tax and net of tax effects.

				Tax
	Before			(expense)			Net of
(In millions)	tax			benefit			tax
Year ended September 30, 2018
Other comprehensive income (loss)
Unrealized translation loss	$	(82	)	$	—		$	(82	)
Net change in available-for-sale securities:
Unrealized gain on available-for-sale securities		24			(7	)		17
Reclassification adjustment for gains
included in net income		(6	)		2			(4	)
Total other comprehensive loss	$	(64	)	$	(5	)	$	(69	)

Year ended September 30, 2017
Other comprehensive income (loss)
Unrealized translation gain	$	80		$	1		$	81
Amortization of unrecognized prior service
credits included in net income (a)		(7	)	3				(4	)
Net change in available-for-sale securities:
Unrealized gain on available-for-sale securities		24			(8	)		16
Reclassification adjustment for gains
included in net income		(2	)		1			(1	)
Total other comprehensive income	$	95		$	(3	)	$	92

Year ended September 30, 2016
Other comprehensive income (loss)
Unrealized translation loss	$	(15	)	$	1		$	(14	)
Pension and postretirement obligation adjustment:
Adjustment of unrecognized prior service cost		86			(31	)		55
Amortization of unrecognized prior service
credits included in net income (a)		(60	)		19			(41	)
Unrealized gain on available-for-sale securities		28			(11	)		17
Total other comprehensive income	$	39		$	(22	)	$	17

(a)	Amortization of unrecognized prior service credits are included in the calculation of net periodic benefit costs (income) for pension and other postretirement plans. For specific financial statement captions impacted by the amortization see the table below.

Income Statement Location of Prior Service Credits Recognized in Accumulated Other Comprehensive Income

The captions on the Statements of Consolidated Comprehensive Income (Loss) impacted by the amortization of unrecognized prior service credits for pension and other postretirement plans are disclosed below. During 2016, the amortization of unrecognized prior service credits included the curtailment impact of certain pension and other postretirement plan remeasurements related to plan amendments of $40 million.

(In millions)	2018		2017			2016
Cost of sales	$	—	$	—		$	(22	)
Selling, general and administrative expense		—		—			(31	)
Discontinued operations		—		(7	)		(7	)
Total amortization of unrecognized prior service credits	$	—	$	(7	)	$	(60	)

Stock Incentive Plans (Tables)

12 Months Ended

Sep. 30, 2018

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Components of Stock-Based Compensation Expense Associated With Income Tax Benefits

The components of Ashland’s pretax stock-based awards (net of forfeitures) and associated income tax benefits are as follows:

(In millions)	2018		(a)	2017		(b)	2016		(c)
SARs	$	7		$	5		$	9
Nonvested stock awards		25			15			17
Performance share awards		13			8			8
	$	45		$	28		$	34

Income tax benefit	$	14		$	11		$	13

(a)	The year ended September 30, 2018 included $9 million and $8 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.

(b)	The year ended September 30, 2017 included $5 million and $3 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.

(c)	The year ended September 30, 2016 included $4 million of expense related primarily to cash-settled nonvested restricted stock awards.

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted-average of key assumptions used in pricing model

The following table illustrates the weighted-average of key assumptions used within the Black-Scholes option-pricing model. The risk-free interest rate assumption was based on the U.S. Treasury yield curve in effect at the time of the grant for the expected term of the instrument. The dividend yield reflects the assumption that the current dividend payout will continue with no anticipated increases. The volatility assumption was calculated by utilizing an unbiased standard deviation of Ashland’s Common Stock closing price for the past five years. The expected life is based on historical data and is not necessarily indicative of exercise patterns that may occur.

(In millions except per share data)	2018			2017			2016
Weighted-average fair value per share of SARs granted (a)	$	19.62		$	21.25		$	26.24
Assumptions (weighted-average)
Risk-free interest rate		2.1	%		1.8	%		1.8	%
Expected dividend yield		1.3	%		1.4	%		1.4	%
Expected volatility		31.8	%		22.8	%		27.7	%
Expected life (in years)		6			5			5

(a)	The weighted-average fair values per share are as of the grant date and have not been adjusted for the Valvoline separation if the SARs were granted prior to the final distribution on May 12, 2017.

Stock appreciation rights award activity

A progression of activity and various other information relative to SARs and previously issued and vested stock options is presented in the following table.

	2018					2017					2016
	Number			Weighted-		Number			Weighted-		Number			Weighted-
	of			average		of			average		of			average
	common			exercise price		common			exercise price		common			exercise price
(In thousands except per share data)	shares			per share		shares			per share		shares			per share
Outstanding - beginning of year		2,261		$	47.98		1,511		$	83.64		1,383		$	73.18
Granted		470			67.16		422			109.15		362			111.89
Exercised		(421	)		40.10		(330	)		70.55		(196	)		59.69
Forfeitures and expirations		(47	)		58.73		(70	)		105.98		(38	)		95.65
Transfer to Valvoline Inc. (a)		—			—		(352	)		94.28		—			—
Conversion adjustment (b)		—			—		1,080			—		—			—
Outstanding - end of year (c)		2,263			53.21		2,261			47.98		1,511			83.64
Exercisable - end of year		1,472			47.76		1,456			42.10		991			69.68

(a)	Represents the transfer of SARs held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution in 2017.

(b)	The number and exercise prices of SARs outstanding at the time of the final Valvoline Inc. distribution in 2017 were proportionately adjusted to maintain the aggregate intrinsic value before and after the transaction.

(c)

Nonvested Stock Awards [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Nonvested stock awards and performance shares activity

A progression of activity and various other information relative to nonvested stock awards is presented in the following table.

	2018					2017					2016
	Number			Weighted-		Number			Weighted-		Number			Weighted-
	of			average		of			average		of			average
	common			grant date		common			grant date		common			grant date
(In thousands except per share data)	shares			fair value		shares			fair value		shares			fair value
Nonvested - beginning of year		219		$	59.16		293		$	109.12		298		$	106.41
Granted		192			71.36		92			105.10		107			111.76
Vested		(107	)		59.46		(189	)		99.69		(93	)		104.44
Forfeitures		(13	)		62.22		(24	)		104.19		(19	)		104.66
Transfer to Valvoline Inc. (a)		—			—		(71	)		111.97		—			—
Conversion adjustment (b)		—			—		118			—		—			—
Nonvested - end of year		291			66.98		219			59.16		293			109.12

(a)	Represents the transfer of nonvested stock awards held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution in 2017.

(b)	The number and exercise prices of nonvested stock awards outstanding at the time of the final Valvoline Inc. distribution in 2017 were proportionately adjusted to maintain the aggregate intrinsic value before and after the transaction.

Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted-average of key assumptions used in pricing model

	2018			2017			2016
Risk-free interest rate	1.6% - 1.8%			1.3% - 1.4%			0.5% - 1.2%
Expected dividend yield		1.4	%		1.4	%		1.2	%
Expected life (in years)		3			3			3
Expected volatility		25.0	%		25.1	%		21.1	%

Nonvested stock awards and performance shares activity

The following table shows changes in nonvested performance shares/units for all plans that award Ashland Common Stock or cash.

	2018					2017					2016
				Weighted-					Weighted-					Weighted-
				average					average					average
	Shares/			grant date		Shares/			grant date		Shares/			grant date
(In thousands except per share data)	Units			fair value		Units			fair value		Units			fair value
Nonvested - beginning of year		268		$	63.00		199		$	106.91		204		$	93.79
Granted (a)		101			68.93		71			99.86		73			110.03
Vested (a)		(104	)		65.53		(69	)		85.86		(72	)		76.26
Forfeitures (b)		(5	)		66.24		(54	)		75.52		(6	)		114.83
Transfer to Valvoline Inc. (c)		—			—		(21	)		115.68		—			—
Conversion adjustment (d)		—			—		142			—		—			—
Nonvested - end of year		260			64.55		268			63.00		199			106.91

(a)	2017 includes 15 thousand additional shares from the fiscal year 2014 since a portion of the payouts for this plan was in excess of the initial 100% target.

(b)	During 2017, Ashland determined that zero percent of the TSR portion of the fiscal year 2016 plan will be paid out upon vesting which resulted in the forfeiture of 35 thousand shares.

(c)	Represents the transfer of performance shares from the fiscal year 2016 plans held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution in 2017.

(d)	The number and exercise prices of performance shares/units outstanding at the time of the final Valvoline Inc. distribution in 2017 were proportionately adjusted to maintain the aggregate intrinsic value before and after the transaction.

Performance shares/units granted

The following table shows the performance shares/units granted for all plans that award Ashland Common Stock or cash.

					Weighted-
		Target			average
		shares/units			fair value per
(In thousands)	Vesting period	granted		(a)	share/unit		(a)
Fiscal Year 2018	October 1, 2017 - September 30, 2020		101		$	68.93
Fiscal Year 2017	October 1, 2016 - September 30, 2019		56		$	103.72
Fiscal Year 2016	October 1, 2015 - September 30, 2018		73		$	110.03

(a)

Reportable Segment Information (Tables)

12 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

Information About Domestic and International Operations

	Sales to										Property, plant
	external customers						Net assets (liabilities)				and equipment - net
(In millions)	2018		2017		2016		2018		2017		2018		2017
United States	$	1,420	$	1,248	$	1,165	$	1,142	$	674	$	1,371	$	1,417
International		2,323		2,012		1,854		2,264		2,732		528		553
	$	3,743	$	3,260	$	3,019	$	3,406	$	3,406	$	1,899	$	1,970

Revenue from External Customers by Products and Services

Sales by product category for 2018
Specialty Ingredients			Composites			Intermediates and Solvents
Cellulosics	34	%	UPR/VER (a)	85	%	Derivatives	55	%
Poly vinyl pyrrolidones	17	%	Gelcoats and other	15	%	Butanediol	45	%
Adhesives	14	%		100	%		100	%
Pharmachem	10	%
Actives	6	%
Vinyl ethers	6	%
Other	13	%
	100	%

(a)	UPR stands for unsaturated polyester resins and VER stands for vinyl ester resins.

Schedule of segment reporting information, by segment

Ashland Global Holdings Inc. and Consolidated Subsidiaries
Reportable Segment Information
Years Ended September 30
(In millions)	2018			2017			2016
Sales
Specialty Ingredients	$	2,470		$	2,216		$	2,089
Composites		942			779			669
Intermediates and Solvents		331			265			261
	$	3,743		$	3,260		$	3,019
Equity income
Specialty Ingredients	$	—		$	—		$	—
Composites		1			—			1
Intermediates and Solvents		—			—			—
Unallocated and other		—			—			—
		1			—			1
Other income (expense)
Specialty Ingredients		(5	)		(2	)		(1	)
Composites		4			4			5
Intermediates and Solvents		—			—			—
Unallocated and other		8			5			3
		7			7			7
	$	8		$	7		$	8
Operating income (loss)
Specialty Ingredients	$	314		$	233		$	237
Composites		73			67			63
Intermediates and Solvents		31			(12	)		(181	)
Unallocated and other		(191	)		(142	)		(169	)
	$	227		$	146		$	(50	)
Assets
Specialty Ingredients	$	5,955		$	6,050		$	5,235
Composites		589			586			520
Intermediates and Solvents		301			292			311
Unallocated and other		1,407			1,690			3,934
	$	8,252		$	8,618		$	10,000

Ashland Global Holdings Inc. and Consolidated Subsidiaries
Reportable Segment Information (continued)
Years Ended September 30
(In millions)	2018		2017		2016
Depreciation and amortization
Specialty Ingredients	$	252	$	243	$	243
Composites		22		22		22
Intermediates and Solvents		30		31		31
Unallocated and other		8		5		6
	$	312	$	301	$	302
Property, plant and equipment - net
Specialty Ingredients	$	1,434	$	1,470	$	1,388
Composites		192		189		175
Intermediates and Solvents		130		146		160
Unallocated and other		143		165		177
	$	1,899	$	1,970	$	1,900
Additions to property, plant and equipment
Specialty Ingredients	$	138	$	148	$	179
Composites		24		26		23
Intermediates and Solvents		9		10		13
Unallocated and other		14		15		16
	$	185	$	199	$	231

Significant Accounting Policies - Additional Information (Details) shares in Millions, $ in Millions		7 Months Ended	12 Months Ended
	May 05, 2017 shares	May 12, 2017 shares	Sep. 30, 2018 USD ($) ReportableSegment shares	Sep. 30, 2017 USD ($) shares	Sep. 30, 2016 USD ($) shares	Sep. 30, 2015 USD ($)
Principles of consolidation and basis of presentation [Abstract]
Ownership Percentage			100.00%
Valvoline Shares Owned by Ashland \| shares	170.0	170.0
Sale of Stock, Percentage of Ownership after Transaction	83.00%	83.00%
Number of reportable segments \| ReportableSegment			3
Allowance for doubtful accounts [Abstract]
Past due balances reviewed individually (in days)			90 days
Inventories [Abstract]
Inventory replacement cost			$ 124	$ 108
Restricted Cash and Investments [Abstract]
Litigation Settlement, Amount						$ 398
Increase (Decrease) in Restricted Cash						$ 335
Restricted Investments, Current			30	30
Available-for-sale securities, fair value			$ 342	$ 332
Revenue Recognition [Abstract]
Percentage of consignment inventory sales			5.00%	6.00%	6.00%
Expense Recognition [Abstract]
Advertising costs			$ 5	$ 6	$ 6
Research and development expense			$ 85	$ 83	$ 87
Earnings Per Share [Abstract]
Antidilutive securities excluded from calculation of earnings per share \| shares			0.7	1.1	1.2
Expenses reclassified to other net periodic benefit income				$ 4	$ 77
Minimum [Member]
Principles of consolidation and basis of presentation [Abstract]
Percentage of ownership under equity method			20.00%
Minimum [Member] \| Trademarks and Trade Names [Member]
Goodwill and other intangibles [Abstract]
Useful life (in years)			3 years
Minimum [Member] \| Intellectual Property [Member]
Goodwill and other intangibles [Abstract]
Useful life (in years)			5 years
Minimum [Member] \| Customer and supplier relationships [Member]
Goodwill and other intangibles [Abstract]
Useful life (in years)			3 years
Minimum [Member] \| Buildings [Member]
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Useful Life			12 years
Minimum [Member] \| Machinery and Equipment [Member]
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Useful Life			2 years
Maximum [Member]
Principles of consolidation and basis of presentation [Abstract]
Percentage of ownership under equity method			50.00%
Maximum [Member] \| Trademarks and Trade Names [Member]
Goodwill and other intangibles [Abstract]
Useful life (in years)			25 years
Maximum [Member] \| Intellectual Property [Member]
Goodwill and other intangibles [Abstract]
Useful life (in years)			25 years
Maximum [Member] \| Customer and supplier relationships [Member]
Goodwill and other intangibles [Abstract]
Useful life (in years)			24 years
Maximum [Member] \| Buildings [Member]
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Useful Life			35 years
Maximum [Member] \| Machinery and Equipment [Member]
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Useful Life			25 years

Significant Accounting Policies - Summary of Activity in Allowance for Doubtful Accounts (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Reserves deducted from asset accounts [Roll Forward]
Beginning balance	$ 9	$ 10	$ 7
Adjustments to net income	2	4	4
Reserves utilized	(5)	(4)	(2)
Other changes	0	(1)	1
Ending balance	$ 6	$ 9	$ 10

Significant Accounting Policies - Summary of Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Inventories [Abstract]
Finished products	$ 402	$ 390
Raw materials, supplies and work in process	268	245
LIFO reserves	(7)	(1)
Total	$ 663	$ 634

Significant Accounting Policies - Summary of Activity in Inventory Reserves (Details) - Inventory Reserve [Member] - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Reserves deducted from asset accounts [Roll Forward]
Beginning balance	$ 29	$ 31	$ 31
Adjustments to net income	5	6	6
Reserves utilized	(10)	(8)	(6)
Ending balance	$ 24	$ 29	$ 31

Significant Accounting Policies - Summary of Activity in Tax Valuation Allowances (Details) - Valuation Allowance of Deferred Tax Assets [Member] - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Reserves deducted from asset accounts [Roll Forward]
Beginning balance	$ 122	$ 136	$ 103
Adjustments to net income	(5)	27	43
Reserves utilized	(38)	(41)	(10)
Ending balance	$ 79	$ 122	$ 136

Significant Accounting Policies - Computation of Basic and Diluted Earnings per Share (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Numerator

Income (loss) from continuing operations attributable to Ashland, net of tax

$ 105

$ (105)

$ (283)

Denominator

Denominator for basic EPS - Weighted-average common shares outstanding

Share based awards convertible to common shares

^[1]

Denominator for diluted EPS - Adjusted weighted - average shares and assumed conversions

PER SHARE DATA - NOTE A

$ 1.68

$ (1.69)

$ (4.51)

$ 1.66

$ (1.69)

$ (4.51)

[1]	As a result of the loss from continuing operations for 2017 and 2016, the effect of the share-based awards convertible to common shares would be antidilutive. In accordance with U.S. GAAP, they have been excluded from the diluted EPS calculation.

The amount of net income (loss) from continuing operations per each share of common stock or unit outstanding during the reporting period.

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+ Details

Net property, plant and equipment

The amount of net income (loss) derived from continuing operations during the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

Valvoline - Additional Information (Details) - USD ($) shares in Millions, $ in Millions		7 Months Ended	12 Months Ended
	May 05, 2017	May 12, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Distribution of Valvoline [Line Items]
Valvoline Shares Owned by Ashland	170	170
Sale of Stock, Percentage of Ownership after Transaction	83.00%	83.00%
Distribution of common stock shares		170
Dividends Payable, fate of record			May 05, 2017
Stockholders' Equity Note, Stock Split, Conversion Ratio		2.745338
Net assets deficit			$ 3,406	$ 3,406
Stranded divestitures costs					$ 22
Discontinued Operations [Member]
Distribution of Valvoline [Line Items]
Separation costs				13	7
Selling, General and Administrative Expense [Member]
Distribution of Valvoline [Line Items]
Separation costs			$ 10	$ 95	$ 88
Valvoline Inc. [Member]
Distribution of Valvoline [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners					17.00%
Net assets deficit		$ (187)

Valvoline - Condensed Balance Sheet, Valvoline at Date of Distribution (Details) - USD ($)
$ in Millions

Sep. 30, 2018

Sep. 30, 2017

May 17, 2017

May 12, 2017

Sep. 30, 2016

Current assets

Accounts receivable, net

^[1]

$ 681

$ 612

Inventories

663

634

Other current assets

Total current assets

1,712

1,903

Noncurrent assets

1,899

1,970

Goodwill

2,449

2,465

$ 288

$ 2,138

Equity and other unconsolidated investments

Deferred income taxes

Other noncurrent assets

448

422

Total noncurrent assets

6,540

6,715

Total assets

8,252

8,618

$ 10,000

Current liabilities

Short-term debt

254

235

Other current liabilities

483

409

338

324

Total current liabilities

1,075

968

Noncurrent liabilities

Long-term debt

2,275

2,584

Employee benefit obligations

179

191

Other long-term liabilities

426

400

Total noncurrent liabilities

3,771

4,244

Net deficit

$ 3,406

Net property, plant and equipment

Current assets

Cash

$ 179

Accounts receivable, net

385

Inventories

153

Other current assets

Total current assets

741

Noncurrent assets

357

Goodwill

329

Equity and other unconsolidated investments

Deferred income taxes

391

Other noncurrent assets

Total noncurrent assets

1,201

Total assets

1,942

Current liabilities

Short-term debt

Current portion of long-term debt

Other current liabilities

353

Total current liabilities

478

Noncurrent liabilities

Long-term debt

662

Employee benefit obligations

826

Other long-term liabilities

163

Total noncurrent liabilities

1,651

Total liabilities

2,129

Net deficit

$ (187)

[1]	Accounts receivable includes an allowance for doubtful accounts of $6 million and $9 million at September 30, 2018 and 2017, respectively.

Acquisitions - Additional Information (Details) $ in Millions		1 Months Ended	3 Months Ended	12 Months Ended
	May 17, 2017 USD ($) Facility	Jan. 31, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2016 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Business acquisition, revenue reported by acquired entity for last annual period	$ 300
Number of manufacturing facilities \| Facility	14
Business acquisition, purchase price	$ 680
Working capital adjustments	20
Business acquisition, transaction costs			$ 5
Finite-lived intangible assets, purchase accounting adjustments			18
Goodwill, purchase accounting adjustments			11	$ 1
Property, plant and equipment, purchase accounting adjustments				3
Accounts payable, purchase accounting adjustments				1
Deferred tax liabilities, purchase accounting adjustments				6
Other non current asset, purchase accounting adjustments				3
Intangible assets	330
Goodwill	$ 288		$ 2,465	$ 2,449	$ 2,138
Vornia Limited [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Business combination, consideration transferred		$ 12
Business acquisition future payment		1
Intellectual property		8
Goodwill		$ 4

Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017	May 17, 2017	Sep. 30, 2016
Business Combinations [Abstract]
Accounts receivable			$ 52
Inventory			74
Other current assets			4
Intangible assets			330
Goodwill	$ 2,449	$ 2,465	288	$ 2,138
Property, plant and equipment			94
Other noncurrent assets			17
Accounts payable			(33)
Deferred tax - net			(132)
Other noncurrent liabilities			(14)
Total purchase price			$ 680

Acquisitions - Summary of Intangible Assets Identified (Details) $ in Millions	May 17, 2017 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total intangible assets	$ 330
Trademarks and Trade Names [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total intangible assets	$ 26
Weighted-average amortization period	15 years
Intellectual Property [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total intangible assets	$ 68
Weighted-average amortization period	22 years
Customer and supplier relationships [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total intangible assets	$ 236
Weighted-average amortization period	20 years

Acquisitions - Summary of Sales and Operating Income from Acquired Operations (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Operating income

$ 227

$ 146

$ (50)

Pharmachem [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Revenues

^[1]

104

Operating income

^[1]

$ 7

[1]	Amounts represent the sales and results of operations for the period May 17, 2017 through September 30, 2017, the period for which Pharmachem was owned during 2017

Acquisitions - Summary of Unaudited Proforma Information (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Unaudited pro forma information
Business acquisition, pro forma revenue	$ 3,434	$ 3,321
Business acquisition, pro forma net income (loss)	$ 31	$ (27)

Divestitures - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Restructuring and related cost, accelerated depreciation		$ 13
Restructuring charges		1
Net loss on divestitures	$ (4)	(6)	$ (8)
Specialty Ingredients [Member] \| Specialty Ingredients Facility [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net loss on divestitures	$ (2)
Specialty Ingredients [Member] \| Specialty Ingredients Joint Venture [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net loss on divestitures		$ (4)	$ (12)

Discontinued Operations - Components of Consolidated Comprehensive Income (Loss) Related to Discontinued Operations (Details) - USD ($)
$ in Millions

7 Months Ended

12 Months Ended

May 12, 2017

^[1]

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Income from discontinued operations (net of taxes)

$ 2

$ 205

$ 412

133

255

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Benefit (expense) related to income (loss) from discontinued operations

$ 240

(1)

240

444

(81)

(158)

Income from discontinued operations (net of taxes)

$ 159

286

Asbestos [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Benefit (expense) related to income (loss) from discontinued operations

(31)

(37)

(1)

Water Technologies [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Benefit (expense) related to income (loss) from discontinued operations

(7)

Distribution [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Benefit (expense) related to income (loss) from discontinued operations

(11)

(5)

(2)

$ 5

$ 2

$ 1

[1]	Results in 2017 reflect activity through May 12, 2017 when Valvoline was fully separated, as previously discussed.

Amount before tax of income (loss) from a discontinued operation. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

Amount after tax of income (loss) from a discontinued operation including the portion attributable to the noncontrolling interest. Includes, but is not limited to, the income (loss) from operations during the phase-out period, gain (loss) on disposal, gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and adjustments to a prior period gain (loss) on disposal.

Income from discontinued operations attributable to Valvoline

Discontinued Operations - Reconciliation of Consolidated Income From Discontinued Operations (Details) - USD ($)
$ in Millions

7 Months Ended

12 Months Ended

May 12, 2017

^[1]

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Research and development expense

$ (85)

$ (83)

$ (87)

Pretax income of discontinued operations

205

412

Income tax expense

(9)

(7)

Income from discontinued operations

133

255

Income from discontinued operations attributable to Valvoline

Sales

$ 1,237

1,929

Cost of sales

(750)

(1,168)

Selling, general and administrative expense

(234)

(314)

Research and development expense

(8)

(13)

Equity and other income

Operating income of discontinued operations

262

454

Net loss on acquisitions and divestitures

(1)

Net interest and other financing expense

(22)

(9)

Pretax income of discontinued operations

240

$ (1)

$ 240

444

Income tax expense

(81)

(158)

Income from discontinued operations

$ 159

$ 286

[1]	Results in 2017 reflect activity through May 12, 2017 when Valvoline was fully separated, as previously discussed.

Restructuring Activities - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2016	Sep. 30, 2017
Restructuring Cost And Reserve [Line Items]
Restructuring reserve	$ 43		$ 0
Asset impairment charges	16	$ 181
Severance Costs [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring reserve	36		0
Facility Costs [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring reserve	7		$ 0
Restructuring costs	9
Selling, General and Administrative Expense [Member]
Restructuring Cost And Reserve [Line Items]
Asset impairment charges	16
Selling, General and Administrative Expense [Member] \| Facility Costs [Member]
Restructuring Cost And Reserve [Line Items]
Asset impairment charges	12
Voluntary Severance Offer [Member] \| Selling, General and Administrative Expense [Member]
Restructuring Cost And Reserve [Line Items]
Severance costs	$ 36

Restructuring Activities - Summary of Severance Reserves and Facility Cost Reserves (Details) $ in Millions	12 Months Ended
	Sep. 30, 2018 USD ($)
Restructuring Cost And Reserve [Line Items]
Beginning balance	$ 0
Reserve adjustments	45
Utilization (cash paid)	(2)
Ending balance	43
Severance Costs [Member]
Restructuring Cost And Reserve [Line Items]
Beginning balance	0
Reserve adjustments	36
Utilization (cash paid)	0
Ending balance	36
Facility Costs [Member]
Restructuring Cost And Reserve [Line Items]
Beginning balance	0
Reserve adjustments	9
Utilization (cash paid)	(2)
Ending balance	$ 7

Fair Value Measurements - Summary of Financial Instruments Subject to Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)
$ in Millions

Sep. 30, 2018

Sep. 30, 2017

Carrying (Reported) Amount, Fair Value Disclosure [Member]

Assets

$ 294

$ 566

^[1]

342

332

^[2]

165

158

^[2]

815

1,061

Estimate of Fair Value, Fair Value Disclosure [Member]

Assets

294

566

^[1]

342

332

^[2]

165

158

^[2]

815

1,061

Fair Value, Inputs, Level 1 [Member]

Assets

294

566

^[1]

342

332

^[2]

^[2]

639

901

Fair Value, Inputs, Level 2 [Member]

Assets

^[1]

^[2]

165

158

^[2]

176

160

Fair Value, Inputs, Level 3 [Member]

Assets

^[1]

^[2]

^[2]

Schedule of Available-for-sale Securities [Line Items]

$ 0

[1]	Included in restricted investments and $30 million within other current assets in the Consolidated Balance Sheets.
[2]	Included in other noncurrent assets in the Consolidated Balance Sheets.

Fair Value Measurements - Additional Information (Details) - USD ($)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Restricted Investments, Current	$ 30,000,000	$ 30,000,000
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	0	0
Other financial instruments [Abstract]
Long-term Debt, Carrying Value	2,307,000,000	2,615,000,000
Long-term Debt, Fair Value	$ 2,372,000,000	$ 2,768,000,000

Fair Value Measurements - Summary of Available-for-sale Securities Portfolio (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Original cost

$ 335

Accumulated adjustments, net

(38)

(24)

Available-for-sale Securities [Member]

^[1]

297

311

Investment income

^[2]

$ 8

(33)

(27)

$ (33)

Fair value

342

332

Schedule of Available-for-sale Securities [Line Items]

Corporate bond mutual fund [Member]

288

297

Fair value

342

332

Unrealized gain

Unrealized loss

(5)

Schedule of Available-for-sale Securities [Line Items]

Corporate bond mutual fund, unrealized gain

120

Corporate bond mutual fund, unrealized loss

(5)

Corporate bond mutual fund, Fair value

115

121

Equity mutual fund [Member]

Schedule of Available-for-sale Securities [Line Items]

Equity mutual fund, unrealized gain

148

168

Equity mutual fund, unrealized loss

Equity mutual fund, Fair value

207

202

Demand Deposits [Member]

Schedule of Available-for-sale Securities [Line Items]

Demand Deposit

$ 20

$ 9

[1]	The adjusted cost of the demand deposit includes accumulated investment income, realized gains, disbursements and settlements recorded in previous periods.
[2]	Investment income relates to the demand deposit and includes interest income as well as dividend income transferred from the equity and corporate bond mutual funds.

Fair Value Measurements - Summary of Gains and Losses on Foreign Currency Derivatives (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Foreign Exchange Contract [Member] \| Not Designated as Hedging Instrument [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency derivative gain (loss)	$ (32)	$ 3	$ 6

Fair Value Measurements - Summary of Fair Values of Outstanding Foreign Currency Derivatives (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Accounts Receivable [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency derivative assets	$ 11	$ 2
Notional contract values	1,209	79
Accrued Expenses and Other Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional contract values	755	1,601
Foreign currency derivative liabilities	$ 3	$ 36

Property, Plant and Equipment - Components of Property, Plant and Equipment in Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 3,847	$ 3,762
Accumulated depreciation	(1,948)	(1,792)
Net property, plant and equipment	1,899	1,970
Land [Member]
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Gross	159	150
Buildings [Member]
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Gross	603	547
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Gross	2,880	2,840
Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 205	$ 225

Property, Plant and Equipment - Summary of Property, Plant and Equipment Charges Included in Statements of Consolidated Comprehensive Income (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Property Plant and Equipment Income Statement Disclosures [Abstract]
Depreciation	$ 217	$ 219	$ 226
Capitalized interest	$ 0	$ 1	$ 1

Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Property Plant And Equipment [Line Items]
Accelerated depreciation		$ 13
Cost of Sales [Member] \| Specialty Ingredients [Member]
Property Plant And Equipment [Line Items]
Accelerated depreciation			$ 4
Selling, General and Administrative Expense [Member] \| Unallocated and other [Member]
Property Plant And Equipment [Line Items]
Accelerated depreciation	$ 8	5	$ 2
Machinery and Equipment [Member] \| Equity and Other Income (Expense) [Member] \| Specialty Ingredients [Member]
Property Plant And Equipment [Line Items]
Accelerated depreciation	$ 6	1
Machinery and Equipment [Member] \| Cost of Sales [Member] \| Specialty Ingredients [Member]
Property Plant And Equipment [Line Items]
Accelerated depreciation		$ 13

Goodwill and Other Intangibles - Additional Information (Details) $ in Millions	12 Months Ended
	Sep. 30, 2018 USD ($) ReportableSegment	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)
Finite Lived Intangible Assets [Line Items]
Number of reportable segments \| ReportableSegment	3
Asset impairment charges	$ 16		$ 181
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Indefinite-lived intangible assets (excluding goodwill)	301	$ 301
Finite-Lived Intangible Assets, Net [Abstract]
Amortization expense recognized on intangible assets	95	82	76
Expected future amortization expense [Abstract]
2019	91
2020	89
2021	89
2022	88
2023	88
Trademarks and Trade Names [Member]
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Indefinite-lived intangible assets (excluding goodwill)	$ 301	$ 301
Minimum [Member] \| Trademarks and Trade Names [Member]
Intangible Assets, Net [Abstract]
Useful life (in years)	3 years
Minimum [Member] \| Intellectual Property [Member]
Intangible Assets, Net [Abstract]
Useful life (in years)	5 years
Minimum [Member] \| Customer and supplier relationships [Member]
Intangible Assets, Net [Abstract]
Useful life (in years)	3 years
Maximum [Member] \| Trademarks and Trade Names [Member]
Intangible Assets, Net [Abstract]
Useful life (in years)	25 years
Maximum [Member] \| Intellectual Property [Member]
Intangible Assets, Net [Abstract]
Useful life (in years)	25 years
Maximum [Member] \| Customer and supplier relationships [Member]
Intangible Assets, Net [Abstract]
Useful life (in years)	24 years
Intermediates and Solvents [Member]
Finite Lived Intangible Assets [Line Items]
Goodwill Impairment			171
Property, plant and equipment, impairment charges			10
Asset impairment charges			$ 181

Goodwill and Other Intangibles - Summary of Goodwill by Reportable Segment (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

$ 2,465

$ 2,138

^[1]

287

^[2]

(21)

Specialty Ingredients [Member]

2,449

2,465

2,315

1,991

^[1]

287

^[2]

(16)

2,304

2,315

Composites [Member]

150

147

^[1]

^[2]

(5)

Intermediates and Solvents [Member]

145

150

^[3]

^[3]

^[1]

^[2]

^[3]

^[3]

$ 0

[1]	Relates to the acquisition of Vornia Limited and subsequent adjustments to the initial purchase price allocation of Pharmachem during 2018. See Note C for more information.
[2]	Relates to the acquisition of Pharmachem during 2017. See Note C for more information.
[3]	As of September 30, 2018 and 2017, there was accumulated impairment of $171 million related to the Intermediates and Solvents reportable segment.

Goodwill and Other Intangibles - Summary of Intangible Assets (Details) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	$ 1,596	$ 1,601
Accumulated amortization	(672)	(583)
Net carrying amount	924	1,018
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Trademarks and trade names	301	301
Intangible Assets, Gross (Excluding Goodwill)	1,897	1,902
Intangibles	1,225	1,319
Trademarks and Trade Names [Member]
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	67	67
Accumulated amortization	(25)	(22)
Net carrying amount	42	45
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Trademarks and trade names	301	301
Intellectual Property [Member]
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	759	757
Accumulated amortization	(373)	(326)
Net carrying amount	386	431
Customer and supplier relationships [Member]
Finite Lived Intangible Assets [Line Items]
Gross carrying amount	770	777
Accumulated amortization	(274)	(235)
Net carrying amount	$ 496	$ 542

Debt - Summary of Current and Long-term Debt (Details) - USD ($)
$ in Millions

Sep. 30, 2018

Sep. 30, 2017

$ 2,307

$ 2,615

Short-term debt (includes current portion of long-term debt)

^[1]

(23)

Total debt

2,529

2,819

(254)

(235)

Long-term debt (less current portion and debt issuance costs)

2,275

2,584

Notes due 2022 [Member]

Term Loan A due 2022 [Member]

1,083

1,082

Term Loan B due 2024 [Member]

195

250

593

599

Notes due 2043 [Member]

Term Loan A due 2020 [Member]

376

2017 Revolving Credit Facility [Member]

250

Accounts Receivable Securitization [Member]

173

Junior Subordinated Debt [Member]

195

Medium-term Notes [Member]

$ 5

[1]	Other includes $21 million and $25 million of debt issuance costs as of September 30, 2018 and 2017, respectively. Additionally, as of September 30, 2018, other included a European short-term loan facility with an outstanding balance of $23 million.

Debt - Summary of Current and Long-term Debt (Parenthetical) (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense, Long-Term Debt	$ 21	$ 25
Short-term debt outstanding balance	$ 254	$ 235
Junior Subordinated Debt [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.50%
Debt Instrument, Maturity Date	Dec. 31, 2029
Medium-term Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	9.40%
Debt Instrument, Maturity Date	Dec. 31, 2019
Notes due 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.75%	4.75%
Debt Instrument, Maturity Date	Aug. 15, 2022
Term Loan B due 2024 [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date	May 17, 2024
Debt Instrument, maturity year	2024
Notes due 2043 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.875%
Debt Instrument, Maturity Date	May 15, 2043
Term Loan A due 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date	May 17, 2022
Debt Instrument, maturity year	2022
Term Loan A due 2020 [Member]
Debt Instrument [Line Items]
Debt Instrument, Maturity Date	May 17, 2020
Debt Instrument, maturity year	2020
European Facility [Member]
Debt Instrument [Line Items]
Short-term debt outstanding balance	$ 23

Debt - Summary of Current and Long-term Debt - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Debt Disclosure [Abstract]
Total debt outstanding principal balance	$ 2,600
Discounts on outstanding debt balance	50
Unamortized Debt Issuance Expense, Long-Term Debt	21	$ 25
Scheduled aggregate debt maturities by fiscal year [Abstract]
2019	11
2020	19
2021	56
2022	1,224
2023	$ 6

Debt - Financing Activity and Covenants - Additional Information (Details)
€ in Millions

3 Months Ended

12 Months Ended

Jul. 31, 2018

EUR (€)

Aug. 31, 2012

USD ($)

Dec. 31, 2016

USD ($)

Sep. 30, 2018

USD ($)

Sep. 30, 2017

USD ($)

Sep. 30, 2016

USD ($)

Mar. 31, 2018

USD ($)

May 17, 2017

USD ($)

Payments of Debt Issuance Costs

$ 2,000,000

$ 15,000,000

Repayment of Debt, Accelerated Amortization

13,000,000

^[1]

1,000,000

101,000,000

$ 6,000,000

Cash repatriation

590,000,000

Line of Credit Facility, Remaining Borrowing Capacity

2,307,000,000

2,615,000,000

$ 754,000,000

Covenant restrictions [Abstract]

Maximum consolidated leverage ratio

4.5

Consolidated net leverage ratio

3.4

Minimum required consolidated interest coverage ratio

3.0

Consolidated interest coverage ratio

5.4

Junior Subordinated Debt [Member]

Dec. 31, 2029

6.50%

$ 52,000,000

51,000,000

Par value of debt repurchases

5,000,000

$ 182,000,000

Aggregate purchase price of debt

$ 177,000,000

Reduction in carrying value of debt

90,000,000

Repayment of debt, accelerated accretion

92,000,000

2018 Accounts Receivable Securitization [Member]

Outstanding amount of receivables sold to affiliate

109,000,000

$ 153,000,000

Debt, Weighted Average Interest Rate

1.80%

Accounts Receivable Securitization [Member]

$ 109,000,000

Line of Credit Facility, Remaining Borrowing Capacity

195,000,000

56,000,000

29,000,000

2018 Accounts Receivable Securitization [Member]

Line of Credit Facility, Maximum Borrowing Capacity | €

2 years

€ 115

2012 Accounts Receivable Securitization [Member]

86,000,000

56,000,000

Line of Credit Facility, Maximum Borrowing Capacity

3 years

$ 350,000,000

$ 115,000,000

Outstanding amount of receivables sold to affiliate

$ 166,000,000

$ 155,000,000

Debt, Weighted Average Interest Rate

2.70%

2.80%

2017 Revolving Credit Facility [Member]

$ 86,000,000

$ 56,000,000

Line of Credit Facility, Remaining Borrowing Capacity

25,000,000

725,000,000

Letters of Credit Outstanding, Amount

25,000,000

50,000,000

Term Loan A due 2020 [Member]

Debt Instrument, Face Amount

250,000,000

$ 250,000,000

3 years

May 17, 2020

2020

$ 0

250,000,000

Term Loan A due 2022 [Member]

250,000,000

Debt Instrument, Face Amount

250,000,000

$ 250,000,000

5 years

Debt Instrument, amortization percentage per annum (payable in equal quarterly installments)

May 17, 2022

20.00%

2022

$ 195,000,000

$ 250,000,000

2017 Revolving Credit Facility [Member]

$ 250,000,000

Line of Credit Facility, Maximum Borrowing Capacity

5 years

$ 800,000,000

$ 680,000,000

Line of credit facility, letter of credit sublimit

125,000,000

Line of Credit Facility, Unused Capacity, Commitment Fee Percentage

0.25%

Payments of Debt Issuance Costs

1,000,000

$ 15,000,000

Debt issuance costs immediately recognized

2,000,000

Repayments of debt

55,000,000

2017 Revolving Credit Facility [Member] | Accounts Receivable Securitization [Member]

25,000,000

$ 173,000,000

Line of Credit Facility, Maximum Borrowing Capacity

250,000,000

2017 Revolving Credit Facility [Member] | Minimum [Member]

Line of Credit Facility, Unused Capacity, Commitment Fee Percentage

0.175%

2017 Revolving Credit Facility [Member] | Maximum [Member]

Line of Credit Facility, Unused Capacity, Commitment Fee Percentage

0.40%

2017 Revolving Credit Facility [Member] | Maximum [Member] | Accounts Receivable Securitization [Member]

Repayment of Debt, Accelerated Amortization

$ 1,000,000

2017 Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]

Debt instruments, percentage points added to variable rate

1.75%

2017 Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]

Debt instruments, percentage points added to variable rate

1.75%

1.375%

2017 Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member]

Debt instruments, percentage points added to variable rate

2.00%

2.50%

2017 Revolving Credit Facility [Member] | Alternate base rate [Member]

Debt instruments, percentage points added to variable rate

0.75%

2017 Revolving Credit Facility [Member] | Alternate base rate [Member] | Minimum [Member]

Debt instruments, percentage points added to variable rate

0.375%

2017 Revolving Credit Facility [Member] | Alternate base rate [Member] | Maximum [Member]

Debt instruments, percentage points added to variable rate

1.50%

Term Loan B due 2024 [Member]

Debt Instrument, Face Amount

$ 600,000,000

Debt Instrument, amortization percentage per annum (payable in equal quarterly installments)

May 17, 2024

1.00%

2024

Term Loan B due 2024 [Member] | London Interbank Offered Rate (LIBOR) [Member]

$ 593,000,000

$ 599,000,000

Debt instruments, percentage points added to variable rate

2.00%

Term Loan B due 2024 [Member] | Alternate base rate [Member]

Debt instruments, percentage points added to variable rate

1.00%

2015 Revolving Credit Facility [Member]

Line of Credit Facility, Maximum Borrowing Capacity

$ 800,000,000

Repayment of Debt, Accelerated Amortization

$ 5,000,000

Senior Notes due 2018 [Member]

$ 6,000,000

3.875%

2018

$ 659,000,000

Notes due 2022 [Member]

Aug. 15, 2022

Repayments of debt

$ 39,000,000

4.75%

$ 1,083,000,000

$ 1,082,000,000

Notes due 2018 [Member]

Repayments of debt

$ 41,000,000

Notes due 2018 and 2022 [Member]

3.875%

$ (3,000,000)

Other Debt [Member]

$ 83,000,000

58,000,000

$ 83,000,000

58,000,000

Notes due 2043 [Member]

May 15, 2043

6.875%

$ 376,000,000

[1]	Fiscal year 2017 includes $92 million of accelerated accretion of the recorded debt discount for the 2029 Notes, while the remaining amounts in each year related to the accelerated amortization of debt issuance costs.

Debt - Summary of Net Interest and Other Financing Expense (Income) (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Realized gains and investment income on available-for-sale securities

Interest expense

^[1]

$ 136

$ 232

$ 180

Interest income

(4)

(5)

^[2]

(14)

(11)

(8)

Other financing costs

^[3]

Interest Income (Expense), Net

$ 122

$ 234

$ 173

[1]	Includes $1 million, $101 million and $6 million of accelerated accretion and/or amortization for original issue discounts and debt issuance costs during 2018, 2017 and 2016, respectively.
[2]	Represents investment income related to the restricted investments discussed in Note G.
[3]	Includes costs of $16 million related to early redemption premium payments and bondholder consent fees for the 2022 and 2018 Senior Notes and a net gain of $5 million related to the repayment of the 2029 Notes during 2017.

Debt - Summary of Net Interest and Other Financing Expense (Income) (Parenthetical) (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Notes due 2018 and 2022 [Member]

^[1]

$ 1

$ 101

$ 6

Loss on early retirement of debt

Junior Subordinated Debt [Member]

$ (3)

$ 5

[1]	Fiscal year 2017 includes $92 million of accelerated accretion of the recorded debt discount for the 2029 Notes, while the remaining amounts in each year related to the accelerated amortization of debt issuance costs.

Debt - Summary of Debt Issuance Cost Amortization (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Normal amortization

$ 8

$ 12

^[1]

101

Total

$ 9

$ 109

$ 18

[1]	Fiscal year 2017 includes $92 million of accelerated accretion of the recorded debt discount for the 2029 Notes, while the remaining amounts in each year related to the accelerated amortization of debt issuance costs.

Other Noncurrent Assets and Liabilities - Components of Other Noncurrent Assets in Consolidated Balance Sheets (Details) - USD ($)
$ in Millions

Sep. 30, 2018

Sep. 30, 2017

Other Assets Noncurrent [Abstract]

Tax and tax indemnity receivables

$ 165

$ 158

Life insurance policies

^[1]

Manufacturing catalyst supplies

Equity and other unconsolidated investments

Land use rights

Environmental insurance receivables

Debt issuance costs

Notes receivable

Other noncurrent assets, Total

$ 448

$ 422

[1]	The increase in life insurance policies during 2018 was primarily due to a $37 million repayment of a corporate-owned life insurance policy loan.

Other Noncurrent Assets and Liabilities - Components of Other Noncurrent Liabilities in Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Other Liabilities Noncurrent [Abstract]
Tax liabilities	$ 176	$ 179
Environmental remediation reserves	147	121
Deferred compensation	47	50
Other	56	50
Other noncurrent liabilties, Total	$ 426	$ 400

Lease Commitments - Additional Information (Details) $ in Millions	Sep. 30, 2018 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019	$ 31
2020	24
2021	19
2022	14
2023	11
2024 and later years	$ 88

Lease Commitments - Schedule of Rent Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Operating Leases, Rent Expense [Abstract]
Minimum rentals (including rentals under short-term leases)	$ 54	$ 48	$ 50
Contingent rentals	0	0	1
Sublease rental income	(1)	(1)	(1)
Rent expense	$ 53	$ 47	$ 50

The increases or decreases in lease payments that result from changes occurring after the inception of the lease in the factors (other than the passage of time) on which lease payments are based, except that any escalation of minimum lease payments relating to increases in construction or acquisition cost of the leased property or for increases in some measure of cost or value during the construction or preconstruction period, are excluded from contingent rentals. Contingent rentals also may include amounts for which the triggering events have not yet occurred or the specified targets for which have not yet been achieved (such as sales based percentage rent), but which events are considered probable of occurring or which specified targets are considered probable of being achieved.

Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent

Income Taxes - Additional Information (Details) - USD ($)
$ in Millions

9 Months Ended

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Income Tax Contingency [Line Items]

21.00%

24.50%

35.00%

Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount

$ 2

$ 5

Increase (Decrease) in Deferred Income Taxes

$ 139

Increase (Decrease) in Deferred Liabilities

128

Unrecognized tax benefits

164

^[1]

164

^[1]

194

^[1]

$ 168

Total amount of unrecognized tax benefits that, if recognized, would affect the tax rate for continuing and discontinued operations

152

Interest and penalties related to uncertain tax positions

(1)

$ 5

Interest and penalties related to unrecognized tax benefits accrued

$ 26

Minimum [Member]

Income Tax Contingency [Line Items]

Decrease in Unrecognized Tax Benefits is Reasonably Possible

Maximum [Member]

Income Tax Contingency [Line Items]

Decrease in Unrecognized Tax Benefits is Reasonably Possible

$ 2

[1]	Ashland has indemnity receivables from Valvoline and Pharmachem for $39 million and $48 million of the gross unrecognized tax benefits at September 30, 2018 and 2017, respectively.

Income Taxes - Summary of Provision for Income Taxes Related to Continuing Operations (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Current
Federal	$ 29	$ (10)	$ (56)
State	(1)	0	(8)
Foreign	78	46	68
Total current income tax expense (benefit)	106	36	4
Deferred	(97)	(29)	(29)
Income tax expense (benefit)	$ 9	$ 7	$ (25)

Income Taxes - Summary of Temporary Differences of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions

Sep. 30, 2018

Sep. 30, 2017

Deferred tax assets

Foreign net operating loss carryforwards

^[1]

$ 43

$ 69

Employee benefit obligations

Environmental, self-insurance and litigation reserves (net of receivables)

120

192

State net operating loss carryforwards (net of unrecognized tax benefits)

^[2]

Compensation accruals

Credit carryforwards (net of unrecognized tax benefits)

^[3]

Total deferred tax assets

Valuation allowances

^[4]

(79)

(122)

237

393

Deferred tax liabilities

Goodwill and other intangibles

^[5]

273

432

Property, plant and equipment

215

302

Unremitted earnings

Total deferred tax liabilities

488

740

Net deferred tax liability

$ (251)

$ (347)

[1]	Gross net operating loss carryforwards of $141 million will expire in future years beyond 2020 or have no expiration.
[2]	Apportioned net operating loss carryforwards generated of $1.1 billion will expire in future years as follows: $69 million in 2019, $82 million in 2020 and the remaining balance in other future years.
[3]	Credit carryforwards consist primarily of foreign tax credits of $4 million expiring in future years beyond 2020, and miscellaneous tax credits that will expire in 2024 or other future years.
[4]	Valuation allowances primarily relate to certain state and foreign net operating loss carryforwards.
[5]	The total gross amount of goodwill as of September 30, 2018 expected to be deductible for tax purposes is $29 million.

Income Taxes - Summary of Temporary Differences of Deferred Tax Assets and Liabilities (Parenthetical) (Details) $ in Millions	Sep. 30, 2018 USD ($)
Tax Credit Carryforward [Line Items]
Goodwill expected to be deductible for tax purposes	$ 29
Foreign Tax Authority [Member]
Tax Credit Carryforward [Line Items]
Operating Loss Carryforwards	141
Tax credits	4
State and Local Jurisdiction [Member]
Tax Credit Carryforward [Line Items]
Operating Loss Carryforwards	1,100
Operating loss carryforwards expiring in next fiscal year	69
Operating loss carryforwards expiring in fiscal year two	$ 82

Income Taxes - Summary of Income from Continuing Operations Before Income Taxes and Reconciliation of Provision for Income Taxes (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract]

United States

$ (163)

$ (376)

$ (557)

Foreign

277

278

249

Loss from continuing operations before income taxes

114

(98)

(308)

Income taxes computed at U.S. statutory rate

^[1]

(34)

(108)

Tax reform

^[2]

Uncertain tax positions

(12)

Foreign dividends, deemed inclusions and other restructuring

^[3]

124

111

Foreign tax credits

(54)

(29)

(93)

Research and development credits

^[4]

(5)

(3)

(5)

(6)

(9)

State taxes

^[5]

(2)

(15)

(3)

Goodwill impairment

International rate differential

(55)

(63)

(57)

Income tax expense (benefit)

^[6]

$ 9

$ 7

$ (25)

[1]	The domestic tax rates are 35% for 2016 and 2017, and 24.5% for 2018. For 2019 and forward, the domestic tax rate is expected to be 21%.
[2]	2018 includes expense of $187 million related to the one-time transition tax and a benefit of $143 million related to the deferred rate change. The related foreign tax credits are included within the foreign tax credits caption, the state tax impact of the federal rate change is included within the state taxes caption and the remeasurement of the federal tax effect of uncertain tax positions is included within the uncertain tax positions caption.
[3]	2018 includes a gain recognition of $6 million, deemed inclusions of $13 million and tax restructuring costs of $23 million.
[4]	2018 includes a $5 million benefit for the release of a foreign tax credit valuation allowance; 2017 includes $25 million of benefit for the release of a foreign tax credit valuation allowance and $22 million of expense for state, foreign and domestic federal deferred tax asset valuation allowances net of a NOL write-off offset; 2016 relates to foreign tax credit carryforward and state deferred tax asset valuation allowance establishments.
[5]	2018 includes a $27 million tax benefit for a valuation reserve release against state net operating losses and $26 million of tax expense for state tax rate changes; 2017 includes $6 million of benefit for state tax rate changes primarily related to the final distribution of Valvoline.
[6]	2018 includes $22 million related to foreign withholding taxes; 2017 includes $7 million of expense related to foreign withholding taxes, $5 million of expense for the write-off of a prepaid asset related to an intercompany transaction with a Valvoline legal entity, $4 million of expense for non-deductible transaction costs primarily related to the Valvoline spin-off and $6 million of benefit for certain other domestic permanent items; 2016 includes $25 million of expense for costs associated with the separation of Valvoline.

Income Taxes - Summary of Income from Continuing Operations Before Income Taxes and Reconciliation of Provision for Income Taxes (Parenthetical) (Details) - USD ($)
$ in Millions

9 Months Ended

12 Months Ended

Sep. 30, 2018

Sep. 30, 2019

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

^[1]

$ (5)

$ (3)

$ 33

State taxes

^[2]

(2)

(15)

(3)

Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount

^[3]

$ 2

Domestic items

^[4]

$ 28

$ (34)

$ (108)

Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent

21.00%

24.50%

35.00%

Gain recognition in foreign dividend and other restructuring

$ 6

Deemed inclusions

Tax restructuring costs

Scenario Plan [Member]

Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent

21.00%

State taxes

$ 6

Foreign Tax Authority [Member]

$ 25

State and Local Jurisdiction [Member]

Domestic Tax Authority [Member]

Domestic items

$ 6

Transition Tax

Tax reform expense

187

Deferred Rate

Tax reform expense

$ 143

[1]	2018 includes a $5 million benefit for the release of a foreign tax credit valuation allowance; 2017 includes $25 million of benefit for the release of a foreign tax credit valuation allowance and $22 million of expense for state, foreign and domestic federal deferred tax asset valuation allowances net of a NOL write-off offset; 2016 relates to foreign tax credit carryforward and state deferred tax asset valuation allowance establishments.
[2]	2018 includes a $27 million tax benefit for a valuation reserve release against state net operating losses and $26 million of tax expense for state tax rate changes; 2017 includes $6 million of benefit for state tax rate changes primarily related to the final distribution of Valvoline.
[3]	2018 includes $22 million related to foreign withholding taxes; 2017 includes $7 million of expense related to foreign withholding taxes, $5 million of expense for the write-off of a prepaid asset related to an intercompany transaction with a Valvoline legal entity, $4 million of expense for non-deductible transaction costs primarily related to the Valvoline spin-off and $6 million of benefit for certain other domestic permanent items; 2016 includes $25 million of expense for costs associated with the separation of Valvoline.
[4]	The domestic tax rates are 35% for 2016 and 2017, and 24.5% for 2018. For 2019 and forward, the domestic tax rate is expected to be 21%.

Income Taxes - Summary of Changes in Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Lapse of statute of limitations

$ 194

^[1]

$ 168

(40)

(3)

(5)

(3)

Acquisition of Pharmachem

Settlement of uncertain tax positions with tax authorities

(4)

(1)

^[1]

$ 164

$ 194

[1]	Ashland has indemnity receivables from Valvoline and Pharmachem for $39 million and $48 million of the gross unrecognized tax benefits at September 30, 2018 and 2017, respectively.

Employee Benefit Plans - Additional Information (Details) - USD ($)

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Pre-65 health care cost trend rate

7.50%

Future Pre-65 health care cost trend rate

4.50%

Decrease in estimated service and interest cost

$ 27,000,000

Defined benefit plan, expects to recognize of prior service credit in accumulated other comprehensive income as next fiscal year

$ 1,000,000

Prior service credit recognized in accumulated other comprehensive income

$ 0

Defined Benefit Plan, Plan Assets Allocation [Abstract]

Historical investment strategy asset mix, fixed income (in hundredths)

49.00%

Historical investment strategy asset mix, risk assets (in hundredths)

38.00%

Historical investment strategy asset mix, other securities assets (in hundredths)

13.00%

United States Pension Plans of US Entity, Defined Benefit [Member]

Defined Benefit Plan, Plan Assets Allocation [Abstract]

Actual contributions to benefit plans in period

$ 1,000,000

1,000,000

Estimated future contributions in current next fiscal year

1,000,000

Foreign Pension Plans, Defined Benefit [Member]

Defined Benefit Plan, Plan Assets Allocation [Abstract]

Actual contributions to benefit plans in period

8,000,000

6,000,000

Estimated future contributions in current next fiscal year

8,000,000

886,000,000

Other Postretirement Benefit Plans [Member]

78,000,000

Prior service credit recognized in accumulated other comprehensive income

2,000,000

9,000,000

(9,000,000)

Pension Plans [Member]

Prior service credit recognized in accumulated other comprehensive income

(5,000,000)

5,000,000

$ 109,000,000

(4,000,000)

(3,000,000)

Defined benefit plan, accumulated benefit obligation

$ 420,000,000

$ 441,000,000

Expected long-term rate of return on plan assets

^[1]

3.33%

3.41%

6.71%

U.S. Benefit Plans [Member]

Expected long-term rate of return on plan assets

3.33%

3.41%

Other Pension Plan, Postretirement or Supplemental Plans [Member]

Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]

Company contributions to other employee benefit savings plans

$ 25,000,000

$ 26,000,000

$ 35,000,000

Postemployment benefits liability, noncurrent

$ 8,000,000

9,000,000

Amendments to Plan [Member]

Amendments to Plan [Member] | Other Postretirement Benefit Plans [Member]

$ 18,000,000

Net Periodic Benefit Costs [Abstract]

$ 2,000,000

[1]	The plan assumptions discussed are a blended weighted-average rate for Ashland’s U.S. and non-U.S. plans.

Employee Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Pension Plans [Member]

^[1]

$ 9

$ 8

$ 21

Curtailment, settlement and other

^[2]

^[2]

(64)

Expected return on plan assets

^[2]

(12)

(11)

(149)

Amortization of prior service credit

^[2]

(1)

Actuarial (gain) loss

^[2]

$ (12)

$ 0

$ 208

Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Immediate Recognition of Actuarial Gain (Loss), Statement of Income or Comprehensive Income [Extensible List]

ash:OtherNetPeriodicBenefitIncomeCostsMember

$ (5)

$ 5

$ 109

Discount rate for service cost

^[3]

2.51%

1.92%

3.95%

Discount rate for interest cost

^[3]

2.52%

2.22%

3.30%

Rate of compensation increase

^[3]

2.55%

2.80%

3.04%

Expected long-term rate of return on plan assets

^[3]

3.33%

3.41%

6.71%

Other Postretirement Benefit Plans [Member]

Net Periodic Benefit Costs [Abstract]

^[1]

$ 1

Curtailment, settlement and other

^[2]

^[2]

(34)

Expected return on plan assets

^[2]

Amortization of prior service credit

^[2]

(11)

Actuarial (gain) loss

^[2]

$ 0

$ 6

$ 32

Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Immediate Recognition of Actuarial Gain (Loss), Statement of Income or Comprehensive Income [Extensible List]

ash:OtherNetPeriodicBenefitIncomeCostsMember

$ 2

$ 9

$ (9)

Discount rate for service cost

^[3]

3.93%

4.07%

Discount rate for interest cost

^[3]

3.13%

2.86%

2.57%

[1]	Service cost was not impacted by new accounting guidance adopted in 2018 and is therefore still classified within the selling, general and administrative expense and cost of sales captions on the Statements of Consolidated Comprehensive Income (Loss). See Note A for additional information.
[2]	These components are now classified within the other net periodic benefit income (costs) caption on the Statements of Consolidated Comprehensive Income (Loss) due to the adoption of new accounting guidance in 2018. See Note A for additional information.
[3]	The plan assumptions discussed are a blended weighted-average rate for Ashland’s U.S. and non-U.S. plans.

Employee Benefit Plans - Prior Service Credits Recognized in Accumulated Other Comprehensive Income (Details) - USD ($)	Sep. 30, 2018	Sep. 30, 2017
Prior service credit recognized in accumulated other comprehensive income [Abstract]
Prior service credit	$ 0	$ 0
Pension [Member]
Prior service credit recognized in accumulated other comprehensive income [Abstract]
Prior service credit	(4,000,000)	(3,000,000)
Postretirement [Member]
Prior service credit recognized in accumulated other comprehensive income [Abstract]
Prior service credit	$ 0	$ 0

Employee Benefit Plans - Obligations and Funded Status (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Change in plan assets

Value of plan assets at October 1

$ 355

Value of plan assets at September 30

346

$ 355

Amounts recognized in the balance sheet

Noncurrent benefit liabilities

(179)

(191)

Pension Plans [Member]

^[1]

$ 21

Other Postretirement Benefit Plans [Member]

^[2]

^[1]

Continuing Operations [Member] | Pension Plans [Member]

^[2]

Benefit obligations at October 1

455

448

(14)

(12)

(14)

(20)

(6)

Curtailment and settlement

(2)

(8)

Benefit obligations at September 30

431

455

448

Change in plan assets

Value of plan assets at October 1

355

353

Actual return on plan assets

(9)

Employer contributions

(14)

(12)

(6)

Value of plan assets at September 30

(9)

346

355

353

Unfunded status of the plans

(85)

(100)

Amounts recognized in the balance sheet

Current benefit liabilities

(3)

Noncurrent benefit liabilities

(117)

(124)

Net amount recognized

$ (85)

$ (100)

Weighted-average plan assumptions

Discount rate

2.92%

2.66%

Rate of compensation increase

2.55%

2.80%

Continuing Operations [Member] | Other Postretirement Benefit Plans [Member]

Benefit obligations at October 1

$ 62

$ 59

(6)

Curtailment and settlement

Benefit obligations at September 30

Change in plan assets

Value of plan assets at October 1

Actual return on plan assets

Employer contributions

Value of plan assets at September 30

$ 0

Unfunded status of the plans

(58)

(62)

Amounts recognized in the balance sheet

Current benefit liabilities

(4)

Noncurrent benefit liabilities

(54)

(58)

Net amount recognized

$ (58)

$ (62)

Weighted-average plan assumptions

Discount rate

4.24%

3.66%

[1]	Service cost was not impacted by new accounting guidance adopted in 2018 and is therefore still classified within the selling, general and administrative expense and cost of sales captions on the Statements of Consolidated Comprehensive Income (Loss). See Note A for additional information.
[2]	These components are now classified within the other net periodic benefit income (costs) caption on the Statements of Consolidated Comprehensive Income (Loss) due to the adoption of new accounting guidance in 2018. See Note A for additional information.

Employee Benefit Plans - Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets (Details) - Pension Plans [Member] - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017
Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets [Abstract]
Projected benefit obligation	$ 254	$ 254
Accumulated benefit obligation	244	239
Fair value of plan assets	$ 134	$ 126

Employee Benefit Plans - Plan Assets Allocations (Details)	Sep. 30, 2018	Sep. 30, 2017
Defined Benefit Plan, Plan Assets Allocation [Abstract]
Asset target allocation, actual	100.00%	100.00%
Equity Securities [Member]
Defined Benefit Plan, Plan Assets Allocation [Abstract]
Asset target allocation, actual	9.00%	19.00%
Equity Securities [Member] \| Minimum [Member]
Defined Benefit Plan, Plan Assets Allocation [Abstract]
Asset target allocation, minimum	5.00%
Equity Securities [Member] \| Maximum [Member]
Defined Benefit Plan, Plan Assets Allocation [Abstract]
Asset target allocation, minimum	45.00%
Fixed Income Securities [Member]
Defined Benefit Plan, Plan Assets Allocation [Abstract]
Asset target allocation, actual	88.00%	81.00%
Fixed Income Securities [Member] \| Minimum [Member]
Defined Benefit Plan, Plan Assets Allocation [Abstract]
Asset target allocation, minimum	55.00%
Fixed Income Securities [Member] \| Maximum [Member]
Defined Benefit Plan, Plan Assets Allocation [Abstract]
Asset target allocation, minimum	95.00%
Other [Member]
Defined Benefit Plan, Plan Assets Allocation [Abstract]
Asset target allocation, actual	3.00%	0.00%
Other [Member] \| Minimum [Member]
Defined Benefit Plan, Plan Assets Allocation [Abstract]
Asset target allocation, minimum	0.00%
Other [Member] \| Maximum [Member]
Defined Benefit Plan, Plan Assets Allocation [Abstract]
Asset target allocation, minimum	5.00%

Employee Benefit Plans - Cash Flows (Details) - Valvoline [Member] $ in Millions	Sep. 30, 2018 USD ($)
Pension Plans [Member]
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
2019	$ 20
2020	17
2021	17
2022	18
2023	19
2024 - 2028	104
Other Postretirement Benefit Plans [Member]
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
2019	4
2020	4
2021	4
2022	4
2023	4
2024 - 2028	$ 20

Litigation, Claims and Contingencies - Summary of Asbestos Claims Activity (Details) - Claim Claim in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Ashland [Member]
Asbestos claims [Roll Forward]
Open claims - beginning of year	54	57	60
New claims filed	2	2	2
Claims settled	(1)	(1)	0
Claims dismissed	(2)	(4)	(5)
Open claims - end of year	53	54	57
Hercules [Member]
Asbestos claims [Roll Forward]
Open claims - beginning of year	12	15	20
New claims filed	2	1	1
Claims dismissed	(1)	(4)	(6)
Open claims - end of year	13	12	15

Litigation, Claims and Contingencies - Additional Information (Details)
$ in Millions

12 Months Ended

Sep. 30, 2018

USD ($)

Facility

WasteTreatmentorDisposalSite

ServiceStationProperty

Sep. 30, 2017

USD ($)

Sep. 30, 2016

USD ($)

Sep. 30, 2015

USD ($)

Environmental Remediation Costs Recognized [Abstract]

Number of waste treatment or disposal sites were company is identified as a potentially responsible party under the superfund or similar state laws | WasteTreatmentorDisposalSite

Number of current and former operating facilities subject to various environmental laws | Facility

116

Total number of service station properties subject to various environmental laws | ServiceStationProperty

1,225

Number of service stations being actively remediated | ServiceStationProperty

Accrual for environmental loss contingencies

$ 187

$ 163

$ 177

Accrued environmental loss contingencies, noncurrent

147

121

Recorded third-party environmental recoveries receivable

Recorded third-party environmental recoveries, noncurrent

Environmental liabilities recognized

Environmental expense related to one site after significant research and analysis

$ 18

Maximum reserve for remediation reserve related to any one site (in hundredths)

14.00%

Minimum [Member]

Number of Years Included in Asbestos Assumption

40 years

Maximum [Member]

Number of Years Included in Asbestos Assumption

50 years

Environmental Remediation Costs Recognized [Abstract]

Environmental exit costs, reasonably possible additional loss

$ 430

Decrease in asbestos-related claims

(36)

(37)

Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward]

380

^[1]

419

^[1]

415

^[1]

$ 409

Insurance receivable

140

^[2]

155

^[2]

151

^[2]

150

(5)

Possible total future litigation defense and claim settlement costs

600

380

^[1]

419

^[1]

415

^[1]

409

Decrease in asbestos-related claims

(16)

(25)

Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward]

282

^[3]

323

^[3]

321

^[3]

311

Insurance receivable

(14)

Possible total future litigation defense and claim settlement costs

450

$ 282

^[3]

$ 323

^[3]

$ 321

^[3]

$ 311

[1]	Included $30 million and $34 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.
[2]	Included $15 million and $14 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.
[3]	Included $20 million and $14 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.

Litigation, Claims and Contingencies - Schedule of Progression of Activity in the Asbestos Reserve (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Asbestos reserve [Roll Forward]

Beginning balance

$ 419

^[1]

$ 415

^[1]

$ 409

Reserve adjustment

(8)

Amounts paid

(31)

(32)

(31)

Ending balance

^[1]

380

419

415

Asbestos reserve [Roll Forward]

Beginning balance

323

^[2]

321

^[2]

311

Reserve adjustment

(19)

Amounts paid

(22)

(14)

(15)

Ending balance

^[2]

$ 282

$ 323

$ 321

[1]	Included $30 million and $34 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.
[2]	Included $20 million and $14 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.

Litigation, Claims and Contingencies - Schedule of Progression of Activity in the Asbestos Reserve (Parenthetical) (Details) - USD ($)
$ in Millions

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

Ashland [Member] | Other Current Liabilities [Member]

$ 380

^[1]

$ 419

^[1]

$ 415

^[1]

$ 409

Hercules [Member] | Other Current Liabilities [Member]

282

^[2]

323

^[2]

$ 321

^[2]

$ 311

Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward]

$ 20

$ 14

[1]	Included $30 million and $34 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.
[2]	Included $20 million and $14 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.

Litigation, Claims and Contingencies - Summary of Progression of Insurance Receivable (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Insurance settlement

$ 2

$ 3

Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward]

Insurance receivable - beginning of year

155

^[1]

151

^[1]

150

Insurance receivable - end of year

(5)

Insurance settlement

(5)

(4)

Amounts collected

(10)

(6)

(11)

^[1]

140

155

151

Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward]

Insurance receivable - beginning of year

Insurance receivable - end of year

(14)

$ 54

$ 68

$ 63

[1]	Included $15 million and $14 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2018 and 2017, respectively.

Litigation, Claims and Contingencies - Summary of Reconciliation of Changes in Environmental Remediation Reserves (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Environmental Remediation Obligations [Abstract]
Environmental remediation reserve - beginning of year	$ 163	$ 177
Disbursements	(37)	(32)
Revised obligation estimates and accretion	61	18
Environmental remediation reserve - end of year	$ 187	$ 163

Litigation, Claims and Contingencies - Summary of Components of Environmental Remediation Expense Included within Selling, General and Administrative Expense (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Environmental Expense And Liabilities [Abstract]

Environmental expense

$ 60

$ 17

$ 33

(2)

(3)

Total expense, net of receivable activity

^[1]

$ 65

$ 24

$ 40

[1]

Equity Items - Additional Information (Details) - USD ($)
$ / shares in Units, shares in Millions

3 Months Ended

12 Months Ended

Sep. 30, 2018

Jun. 30, 2018

Mar. 31, 2018

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Apr. 30, 2015

Stock Repurchase Program, Remaining Authorized Repurchase Amount

$ 500,000,000

Payments for Repurchase of Common Stock

$ 500,000,000

Dividend per common share

$ 0.95

$ 1.23

$ 1.56

Common Stock, Dividends, Per Share, Declared

$ 0.25

$ 0.225

$ 0.39

Common shares reserved (in shares)

15.7

Amortization unrecognized prior service credit included in net income, before Tax

$ 0

$ (7,000,000)

^[1]

$ (60,000,000)

^[1]

Amendments to Plan [Member]

Amortization unrecognized prior service credit included in net income, before Tax

40,000,000

2015 Stock Repurchase Program [Member]

Stock Repurchase Program, Authorized Amount

$ 1,000,000,000

Stock Repurchase Program, Remaining Authorized Repurchase Amount

$ 500,000,000

2018 Stock Repurchase Program [Member]

Stock Repurchase Program, Authorized Amount

$ 1,000,000,000

Stock Repurchase Program, Remaining Authorized Repurchase Amount

$ 1,000,000,000

2016 Accelerated Share Repurchase Agreement [Member]

Payments for Repurchase of Common Stock

$ 500,000,000

Stock Repurchased and Retired During Period, Shares

1.2

3.9

5.1

Accelerated Share Repurchases, Final Price Paid Per Share

$ 99.01

[1]	Amortization of unrecognized prior service credits are included in the calculation of net periodic benefit costs (income) for pension and other postretirement plans. For specific financial statement captions impacted by the amortization see the table below.

Equity Items - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Unrealized translation gain (loss), before tax

$ (82)

$ 80

$ (15)

Unrealized translation gain (loss), tax

Unrealized translation gain (loss), net of tax

(82)

(14)

Amortization unrecognized prior service credit included in net income, before Tax

(7)

^[1]

(60)

^[1]

Amortization of unrecognized prior service credits included in net income, tax

^[1]

Amortization of unrecognized prior service credits included in net income, net of tax

^[1]

(4)

(41)

Unrealized gain (loss) on available-for-sale securities, before tax

Unrealized gain (loss) on available-for-sale securities, tax

(7)

(8)

(11)

Unrealized translation gain (loss), net of tax

Reclassification adjustment for gains included in net income, before tax

(6)

(2)

Reclassification adjustment for gains included in net income, tax

Reclassification adjustment for gains included in net income, net of tax

(4)

(1)

Adjustment of unrecognized prior service cost (credit), before tax

Adjustment of unrecognized prior service cost (credit), tax

(31)

Adjustment of unrecognized prior service cost (credit), net of tax

Total other comprehensive income (loss), before tax

(64)

Total other comprehensive income (loss), tax

(5)

(3)

(22)

$ (69)

$ 92

$ 17

[1]	Amortization of unrecognized prior service credits are included in the calculation of net periodic benefit costs (income) for pension and other postretirement plans. For specific financial statement captions impacted by the amortization see the table below.

Equity Items - Income Statement Location of Prior Service Credits Recognized in Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Amortization unrecognized prior service credit included in net income, before Tax

$ 0

$ (7)

^[1]

$ (60)

^[1]

Cost of Sales [Member]

Amortization unrecognized prior service credit included in net income, before Tax

(22)

Selling, General and Administrative Expense [Member]

Amortization unrecognized prior service credit included in net income, before Tax

(31)

Discontinued Operations [Member]

Amortization unrecognized prior service credit included in net income, before Tax

$ 0

$ (7)

[1]	Amortization of unrecognized prior service credits are included in the calculation of net periodic benefit costs (income) for pension and other postretirement plans. For specific financial statement captions impacted by the amortization see the table below.

Stock Incentive Plans - Components of Pretax Stock-Based Award (Net of Forfeitures) and Associated Income Tax Benefits (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

^[1]

Sep. 30, 2017

^[2]

Sep. 30, 2016

^[3]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

$ 45

$ 28

$ 34

Income tax benefit

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Nonvested Stock Awards [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

$ 13

$ 8

[1]	The year ended September 30, 2018 included $9 million and $8 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.
[2]	The year ended September 30, 2017 included $5 million and $3 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.
[3]	The year ended September 30, 2016 included $4 million of expense related primarily to cash-settled nonvested restricted stock awards.

Stock Incentive Plans - Components of Pretax Stock-Based Award (Net of Forfeitures) and Associated Income Tax Benefits (Parenthetical) (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Cash-settled Nonvested Stock Awards [Member]

$ 45

^[1]

$ 28

^[2]

$ 34

^[3]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Cash-settled Performance Shares [Member]

$ 4

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

$ 8

$ 3

[1]	The year ended September 30, 2018 included $9 million and $8 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.
[2]	The year ended September 30, 2017 included $5 million and $3 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.
[3]	The year ended September 30, 2016 included $4 million of expense related primarily to cash-settled nonvested restricted stock awards.

Stock Incentive Plans - Additional Information (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

Number of common shares for each converted performance share

$ 45

^[1]

$ 28

^[2]

$ 34

^[3]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Unexercised SARs lapse expiration period

10 years 1 month

Model to fair value share-based payment awards

Black-Scholes option-pricing model

Intrinsic value of stock appreciation rights and stock options exercised

$ 15

Tax benefit realized from the exercised stock appreciation rights and stock options

Total grant date fair value of SARs and stock options that vested

$ 8

$ 9

Unrecognized cost expected to be recognized over a weighted-average period (in years)

$ 7

1 year 9 months 18 days

Aggregate intrinsic value of outstanding stock appreciation rights and stock options

$ 69

Aggregate intrinsic value of exercisable stock appreciation rights and stock options

$ 53

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number

2,263,000

^[4]

2,261,000

1,511,000

1,383,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]

$ 7

^[1]

$ 5

^[2]

$ 9

^[3]

Unrecognized cost expected to be recognized over a weighted-average period (in years)

$ 7

1 year 9 months 18 days

Stock Appreciation Rights (SARs) [Member] | Minimum [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock Appreciation Rights (SARs) [Member] | Maximum [Member]

1 year

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Nonvested Stock Awards [Member]

3 years

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Unrecognized cost expected to be recognized over a weighted-average period (in years)

$ 9

1 year 10 months 24 days

Total fair value of nonvested stock awards that vested

$ 6

$ 19

$ 10

192,000

92,000

107,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]

$ 25

^[1]

$ 15

^[2]

$ 17

^[3]

Unrecognized cost expected to be recognized over a weighted-average period (in years)

$ 9

1 year 10 months 24 days

Nonvested Stock Awards [Member] | Minimum [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Nonvested Stock Awards [Member] | Maximum [Member]

1 year

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Restricted Stock [Member]

5 years

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

$ 3

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number

260,000

61,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]

$ 6

Cash-settled Nonvested Stock Awards [Member]

$ 3

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number

3 years

215,000

Performance Shares [Member]

$ 9

$ 5

$ 4

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Model to fair value share-based payment awards

3 years

Monte Carlo simulation valuation model

Unrecognized cost expected to be recognized over a weighted-average period (in years)

$ 12

1 year 6 months

101,000

71,000

73,000

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]

$ 13

^[1]

$ 8

^[2]

$ 8

^[3]

Unrecognized cost expected to be recognized over a weighted-average period (in years)

$ 12

1 year 6 months

[1]	The year ended September 30, 2018 included $9 million and $8 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.
[2]	The year ended September 30, 2017 included $5 million and $3 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.
[3]	The year ended September 30, 2016 included $4 million of expense related primarily to cash-settled nonvested restricted stock awards.
[4]	Exercise prices per share for SARs outstanding at September 30, 2018 ranged from $5.04 to $5.70 for 27 thousand shares, from $20.02 to $29.50 for 260 thousand shares, from $34.47 to $47.63 for 419 thousand shares, and from $57.96 to $67.16 for 1,557 thousand shares. The weighted-average remaining contractual life of outstanding SARs and stock options was 6.7 years and exercisable SARs and stock options was 5.6 years.

Stock Incentive Plans - Stock Appreciation Rights (Details) - $ / shares
shares in Thousands

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Assumptions (weighted-average) [Abstract]

Expected dividend yield

1.40%

1.20%

Expected volatility

25.00%

25.10%

21.10%

Expected life (in years)

3 years

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]

Weighted-average fair value per share of SARs granted

^[1]

$ 19.62

$ 21.25

$ 26.24

Assumptions (weighted-average) [Abstract]

Risk-free interest rate

2.10%

1.80%

Expected dividend yield

1.30%

1.40%

Expected volatility

31.80%

22.80%

27.70%

Expected life (in years)

6 years

5 years

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]

Outstanding - beginning of year (in shares)

2,261

1,511

1,383

Forfeitures and expirations (in shares)

470

422

362

Exercised (in shares)

(421)

(330)

(196)

(47)

(70)

(38)

Transfer to Valvoline Inc.

^[2]

(352)

Conversion adjustment (in shares)

^[3]

1,080

Outstanding - end of year (in shares)

2,263

^[4]

2,261

1,511

Exercisable - end of year (in shares)

1,472

1,456

991

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]

Weighted-average exercise price per share, outstanding - beginning of year (in usd per share)

$ 47.98

$ 83.64

$ 73.18

Weighted-average exercise price per share, granted (in usd per share)

67.16

109.15

111.89

Weighted-average exercise price per share, exercised (in usd per share)

40.10

70.55

59.69

Weighted-average exercise price per share, forfeitures and expirations (in usd per share)

58.73

105.98

95.65

Weighted-average exercise price per share, transfer to Valvoline Inc. (in usd per share)

^[2]

94.28

Weighted-average exercise price per share, outstanding - end of year (in usd per share)

53.21

^[4]

47.98

83.64

Weighted-average exercise price per share, exercisable - end of year (in usd per share)

$ 47.76

$ 42.10

$ 69.68

[1]	The weighted-average fair values per share are as of the grant date and have not been adjusted for the Valvoline separation if the SARs were granted prior to the final distribution on May 12, 2017.
[2]	Represents the transfer of SARs held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution in 2017.
[3]	The number and exercise prices of SARs outstanding at the time of the final Valvoline Inc. distribution in 2017 were proportionately adjusted to maintain the aggregate intrinsic value before and after the transaction.
[4]	Exercise prices per share for SARs outstanding at September 30, 2018 ranged from $5.04 to $5.70 for 27 thousand shares, from $20.02 to $29.50 for 260 thousand shares, from $34.47 to $47.63 for 419 thousand shares, and from $57.96 to $67.16 for 1,557 thousand shares. The weighted-average remaining contractual life of outstanding SARs and stock options was 6.7 years and exercisable SARs and stock options was 5.6 years.

Stock Incentive Plans - Stock Appreciation Rights (Parenthetical) (Details) - Stock Appreciation Rights (SARs) [Member]	12 Months Ended
	Sep. 30, 2018 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average remaining contractual life of outstanding SARs and stock options (in years)	6 years 8 months 12 days
Weighted-average remaining contractual life of outstanding, exercisable SARs and stock options (in years)	5 years 7 months 6 days
Exercise Price Range 1 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share range, minimum (in usd per share)	$ 5.04
Exercise price per share range, maximum (in usd per share)	$ 5.70
Exercise price per share range, number of exercisable SARs and options \| shares	27,000
Exercise Price Range 2 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share range, minimum (in usd per share)	$ 20.02
Exercise price per share range, maximum (in usd per share)	$ 29.50
Exercise price per share range, number of exercisable SARs and options \| shares	260,000
Exercise Price Range 3 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share range, minimum (in usd per share)	$ 34.47
Exercise price per share range, maximum (in usd per share)	$ 47.63
Exercise price per share range, number of exercisable SARs and options \| shares	419,000
Exercise Price Range 4 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price per share range, minimum (in usd per share)	$ 57.96
Exercise price per share range, maximum (in usd per share)	$ 67.16
Exercise price per share range, number of exercisable SARs and options \| shares	1,557,000

Stock Incentive Plans - Summary of Progression of Activity and Various Other Information Relative Nonvested Stock Awards (Details) - Nonvested Stock Awards [Member] - $ / shares
shares in Thousands

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]

Nonvested - beginning of year

219

293

298

Granted

192

107

Vested

(107)

(189)

(93)

Forfeitures

(13)

(24)

(19)

Transfer to Valvoline Inc.

^[1]

(71)

Conversion adjustment

^[2]

118

Nonvested - end of year

291

219

293

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]

Weighted-average grant date fair value, nonvested - beginning of year

$ 59.16

$ 109.12

$ 106.41

Weighted-average grant date fair value, granted

71.36

105.10

111.76

Weighted-average grant date fair value, vested

59.46

99.69

104.44

Weighted-average grant date fair value, forfeitures

62.22

104.19

104.66

Weighted-average grant date fair value, transfer to Valvoline Inc.

^[1]

111.97

Weighted-average grant date fair value, nonvested - end of year

$ 66.98

$ 59.16

$ 109.12

[1]	Represents the transfer of nonvested stock awards held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution in 2017.
[2]	The number and exercise prices of nonvested stock awards outstanding at the time of the final Valvoline Inc. distribution in 2017 were proportionately adjusted to maintain the aggregate intrinsic value before and after the transaction.

Stock Incentive Plans - Sumamry of Performance Shares/units Granted (Details) - Performance Shares [Member] - $ / shares
shares in Millions

12 Months Ended

Sep. 30, 2018

Sep. 30, 2017

Sep. 30, 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period, start date

Oct. 01, 2017

Oct. 01, 2016

Oct. 01, 2015

Vesting period, end date

Sep. 30, 2020

Sep. 30, 2019

Sep. 30, 2018

Target shares granted

^[1]

101

Weighted-average fair value per share

^[1]

$ 68.93

$ 103.72

$ 110.03

[1]

Stock Incentive Plans - Sumamry of Performance Shares/units Granted (Parenthetical) (Details) - Performance Shares [Member]	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Actual to Target Number of Shares Issued Percentage, Minimum	0.00%
Actual to Target Number of Shares Issued Percentage, Maximum	200.00%
Target Number of Shares Issued Percentage	100.00%	100.00%

Stock Incentive Plans - Summary of Fair Values Assumptions Using Monte Carlo Simulation Valuation Model (Details)	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Assumptions (weighted-average) [Abstract]
Risk-free interest rate, Minimum	1.60%	1.30%	0.50%
Risk-free interest rate, Maximum	1.80%	1.40%	1.20%
Expected dividend yield	1.40%	1.40%	1.20%
Expected life (in years)	3 years	3 years	3 years
Expected volatility	25.00%	25.10%	21.10%

Stock Incentive Plans - Summary of Nonvested Stock Awards and Performance Shares Activity (Details) - Performance Shares [Member] - $ / shares shares in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested - beginning of year	268	199	204
Granted	101	71	73
Vested	(104)	(69)	(72)
Forfeitures	(5)	(54)	(6)
Transfer to Valvoline Inc.		(21)
Conversion adjustment		142
Nonvested - end of year	260	268	199
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted-average grant date fair value, nonvested - beginning of year	$ 63.00	$ 106.91	$ 93.79
Weighted-average grant date fair value, granted	68.93	99.86	110.03
Weighted-average grant date fair value, vested	65.53	85.86	76.26
Weighted-average grant date fair value, forfeitures	66.24	75.52	114.83
Weighted-average grant date fair value, transfer to Valvoline Inc.		115.68
Weighted-average grant date fair value, nonvested - end of year	$ 64.55	$ 63.00	$ 106.91

Stock Incentive Plans - Summary of Nonvested Stock Awards and Performance Shares Activity (Parenthetical) (Details) - Performance Shares [Member] - shares shares in Thousands	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options, Grants In Perior Relating to Prior Periods		15
Shares forfeiture	5	54	6
Target Number of Shares Issued Percentage	100.00%	100.00%
Total Shareholder Return (TSR)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Payment upon vesting precentage on 2016 plan		0.00%
Shares forfeiture		35

Reportable Segment Information - Schedule of Information About Domestic and International Operations (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales from external customers	$ 3,743	$ 3,260	$ 3,019
Net assets (liabilities)	3,406	3,406
Property, plant and equipment, net	1,899	1,970
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales from external customers	1,420	1,248	1,165
Net assets (liabilities)	1,142	674
Property, plant and equipment, net	1,371	1,417
Non-US [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales from external customers	2,323	2,012	$ 1,854
Net assets (liabilities)	2,264	2,732
Property, plant and equipment, net	$ 528	$ 553

Reportable Segment Information - Sales by Product Category (Details)

Sep. 30, 2018

Specialty Ingredients [Member]

Specialty Ingredients [Member] | Cellulosics [Member]

100.00%

Specialty Ingredients [Member] | Poly vinyl pyrrolidones [Member]

34.00%

Specialty Ingredients [Member] | Adhesives [Member]

17.00%

Specialty Ingredients [Member] | Pharmachem [Member]

14.00%

Specialty Ingredients [Member] | Actives [Member]

10.00%

Specialty Ingredients [Member] | Vinyl Ethers [Member]

6.00%

Specialty Ingredients [Member] | Other Products [Member]

6.00%

13.00%

Composites [Member]

Composites [Member] | UPR/VER [Member]

100.00%

Composites [Member] | Gelcoats and other [Member]

85.00%

^[1]

Intermediates and Solvents [Member]

15.00%

Intermediates and Solvents [Member] | Derivatives [Member]

100.00%

Intermediates and Solvents [Member] | Butanediol [Member]

55.00%