$ 704

$ 1,188

^[1]

858

894

Inventories - Note F

666

671

106

113

Net property, plant and equipment

2,334

2,866

Property, plant and equipment

Cost

4,283

4,343

Accumulated depreciation

2,097

2,119

2,186

2,224

Goodwill - Note G

2,348

2,401

Intangibles - Note G

1,026

1,064

Restricted investments - Note E

297

292

Asbestos insurance receivable - Note K

194

196

199

177

419

420

6,729

6,831

9,063

9,697

Current portion of long-term debt - Note H

Short-term debt - Note H

170

Trade and other payables

458

541

Accrued expenses and other liabilities

451

486

1,016

1,216

Employee benefit obligations - Note J

Long-term debt - Note H

2,825

3,055

1,040

1,080

Asbestos litigation reserve - Note K

674

686

438

426

Commitments and contingencies - Note K

5,046

5,316

Equity

Total Ashland stockholders' equity

3,175

3,347

Noncontrolling interest

(174)

(182)

3,001

3,165

Beginning Balance at Sep. 30, 2016

$ 9,063

$ 9,697

[1]	Accounts receivable includes an allowance for doubtful accounts of $14 million at December 31, 2016 and September 30, 2016.

STATEMENT OF CONSOLIDATED EQUITY (unaudited) - 3 months ended Dec. 31, 2016 - USD ($)
$ in Millions

Total

Common stock [Member]

Paid-in capital [Member]

Retained earnings [Member]

Accumulated other comprehensive income (loss) [Member]

Noncontrolling Interest [Member]

$ 3,165

$ 1

$ 923

$ 2,704

$ (281)

^[1]

$ (182)

^[2]

Net income (loss)

(1)

Other comprehensive loss

(147)

(146)

(1)

Regular dividends, $0.39 per common share

(24)

Common shares issued under stock incentive and other plans

^[3]

(1)

Distributions to noncontrolling interest

(2)

Ending Balance at Dec. 31, 2016

$ 3,001

$ 1

$ 922

$ 2,679

$ (427)

^[1]

$ (174)

^[2]

[1]	At December 31, 2016 and September 30, 2016, the after-tax accumulated other comprehensive loss attributable to Ashland of $427 million and $281 million, respectively, was comprised of unrecognized prior service credits as a result of certain employee benefit plan amendments of $45 million and $46 million, respectively, net unrealized translation losses of $478 million and $333 million, respectively, and net unrealized gain on available-for-sale securities of $6 million. At December 31, 2016 and September 30, 2016, amounts attributable to noncontrolling interest included unrecognized prior service credits of $9 million and net unrealized translation losses of $3 million and $2 million, respectively.
[2]	See Note B for discussion of Valvoline Inc. noncontrolling interest.
[3]	Common shares issued were 56,590 for the three months ended December 31, 2016.

STATEMENT OF CONSOLIDATED EQUITY (unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Sep. 30, 2016
Dividends on common stock	$ 0.39
Accumulated other comprehensive loss	$ (427)	$ (281)
Unrecognized prior service credits	45	46
Net unrealized translation loss	(478)	(333)
Available-for-sale securities unrealized gain	$ 6	6
Common shares issued (in shares)	56,590
Noncontrolling Interest [Member]
Unrecognized prior service credits	$ 9	9
Net unrealized translation loss	$ (3)	$ (2)

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

CASH FLOWS PROVIDED (USED) BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS

STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS (unaudited) - USD ($)
$ in Millions

3 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Net income

$ 10

$ 89

Loss from discontinued operations (net of tax)

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

Depreciation and amortization

Original issue discount and debt issuance cost amortization

Equity income from affiliates

(4)

Distributions from equity affiliates

Stock based compensation expense

Gain on early retirement of debt

(3)

Gain on available-for-sale securities

(3)

^[1]

(2)

Net loss (gain) on divestitures

(2)

Pension contributions

(3)

(4)

Defined Benefit Plan, Actuarial Gain (Loss)

(10)

Change in operating assets and liabilities

^[2]

(156)

(115)

Total cash flows provided by operating activities from continuing operations

CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES FROM CONTINUING OPERATIONS

Additions to property, plant and equipment

(43)

(53)

Proceeds from disposal of property, plant and equipment

Purchase of operations - net of cash acquired

(4)

Proceeds (uses) from sale of operations or equity investments

(2)

Net purchase of funds restricted for specific transactions

(2)

Reimbursements from restricted investments

Proceeds from the settlement of derivative instruments

Total cash flows used by investing activities from continuing operations

(41)

(44)

CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS

Repayment of long-term debt

(318)

(14)

Premium on long-term debt repayment

(5)

Proceeds (repayment) from short-term debt

(78)

319

Repurchase of common stock

(500)

Debt issuance costs

(4)

Cash dividends paid

(24)

Distributions to noncontrolling interest

(2)

Excess tax benefits related to share-based payments

(4)

Total cash flows used by financing activities from continuing operations

(435)

(219)

CASH USED BY CONTINUING OPERATIONS

(464)

(197)

Cash used by discontinued operations

Operating cash flows

(12)

(10)

Investing cash flows

Total cash used by discontinued operations

(12)

(10)

Effect of currency exchange rate changes on cash and cash equivalents

(8)

(11)

DECREASE IN CASH AND CASH EQUIVALENTS

(484)

(218)

CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD

1,188

1,257

CASH AND CASH EQUIVALENTS - END OF PERIOD

$ 704

$ 1,039

[1]	{F\|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjVkNWExZjRhZmIwYzRhYzk4YmE0YWYzYmVmZGUzYWM5fFRleHRTZWxlY3Rpb246RUNFQTAwNjk3QTZDNTBCNkIwMDk1NzlGNzNENEIyRTMM}
[2]	Excludes changes resulting from operations acquired or sold.

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	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 2016 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. The Condensed 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). The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and Securities and Exchange Commission (SEC) regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. These statements omit certain information and footnote disclosures required for complete annual financial statements and, therefore, should be read in conjunction with Ashland’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016. Results of operations for the period ended December 31, 2016 are not necessarily indicative of the expected results for the remaining quarter in the fiscal year. Ashland is composed of three reportable segments: Ashland Specialty Ingredients (Specialty Ingredients), Ashland Performance Materials (Performance Materials) and Valvoline. As of December 31, 2016, Ashland maintains an approximately 83% controlling interest in Valvoline Inc., which holds the Valvoline reportable segment. See Note B for additional information. The term Valvoline as used herein, depending on context, refers to either Valvoline Inc. or Valvoline as a reportable segment of Ashland. Use of estimates, risks and uncertainties The preparation of Ashland’s Condensed 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), employee benefit obligations, 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. New accounting standards A description of new U.S. GAAP accounting standards issued or adopted during the current year is required in interim financial reporting. A detailed listing of new accounting standards relevant to Ashland is included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2016. The following standard relevant to Ashland was adopted in the current period. In April 2015, the FASB issued accounting guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. Cloud computing arrangements represent the delivery of hosted services over the internet which includes software, platforms, infrastructure and other hosting arrangements. Under the guidance, customers that gain access to software in a cloud computing arrangement account for the software as internal-use software only if the arrangement includes a software license. This guidance became effective prospectively for Ashland on October 1, 2016.

VALVOLINE	3 Months Ended
VALVOLINE	Dec. 31, 2016
Business Combinations [Abstract]
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. The new Ashland is a premier global leader in providing specialty chemical solutions to customers in a wide range of consumer and industrial markets. These markets are currently served by Specialty Ingredients and Performance Materials. Key markets and applications include pharmaceutical, personal care, food and beverage, architectural coatings, adhesives, automotive, construction and energy. Valvoline Inc., a controlled subsidiary, operates on a stand-alone basis as a premium consumer-branded lubricant supplier. After completing the IPO on September 28, 2016, Ashland owns 170 million shares of Valvoline Inc.’s common stock, representing approximately 83% of the total outstanding shares of Valvoline Inc.’s common stock. Ashland presently intends to distribute the remaining Valvoline Inc. shares in 2017 following the release of March-quarter earnings results by both Ashland and Valvoline Inc. The resulting outside stockholders’ interests in Valvoline Inc., which was approximately 17% as of December 31, 2016 and September 30, 2016, are presented separately as a noncontrolling interest within Ashland’s equity in the Condensed Consolidated Balance Sheets. As of December 31, 2016 and September 30, 2016, the noncontrolling interest was $174 million and $182 million, respectively. The amount of consolidated net income attributable to these minority holders is presented as a separate caption on the Statement of Consolidated Comprehensive Income. During the three months ended December 31, 2016 and 2015, Ashland recognized separation costs of $28 million and $6 million, respectively, which are primarily related to transaction and legal fees. Separation costs are primarily recorded within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income. Transferred Assets and Liabilities As of September 30, 2016, Valvoline Inc. included substantially all of the Valvoline business as historically reported by Ashland, as well as certain other assets and liabilities transferred to Valvoline Inc. by Ashland as a part of the separation process. The largest transferred liabilities were the net pension and other postretirement plan liabilities, which include a substantial portion of the largest U.S. qualified pension plans and non-qualified U.S. pension plans. As of September 30, 2016, Valvoline Inc.’s net pension and other postretirement plan liabilities totaled approximately $900 million. Other transferred assets and liabilities primarily consist of deferred compensation, certain Ashland legacy business insurance reserves, tax attributes and certain trade payables. The impact of these other transferring assets and liabilities during 2016 was approximately $15 million of net assets. Additionally, any deferred tax assets and liabilities that relate specifically to these assets and liabilities have been transferred to Valvoline Inc. as well as certain other tax liabilities as a result of the Tax Matters Agreement. For purposes of Ashland’s 2017 segment reporting and consistent with prior periods, these transferred assets and liabilities remain included within Unallocated and other. Time-It Lube On January 4, 2017, Valvoline announced that it signed a definitive agreement to acquire the business assets related to 28 quick-lube stores from Time-It Lube L.L.C. and Time-It Lube of Texas, LP (together, Time-It Lube) for $48 million. The stores are located in Louisiana and eastern Texas. The acquisition is expected to be completed in the second quarter of fiscal 2017. Oil Can Henry's On December 11, 2015, Ashland announced that it signed a definitive agreement to acquire OCH International, Inc. (Oil Can Henry's), which was the 13^th largest quick-lube network in the United States, servicing approximately 1 million vehicles annually with 89 quick-lube stores, consisting of 47 company-owned stores and 42 franchise locations, in Oregon, Washington, California, Arizona, Idaho and Colorado. On February 1, 2016, Ashland completed the acquisition. The acquisition of Oil Can Henry's was valued at $72 million, which included acquired indebtedness of $11 million and other working capital adjustments. Net of acquired indebtedness and certain purchase price adjustments, the net cash outlay was $62 million during 2016. The purchase price allocation primarily included $83 million of goodwill.

DIVESTITURES	3 Months Ended
DIVESTITURES	Dec. 31, 2016
DIVESTITURES [Abstract]
DIVESTITURES	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. The loss was reported within the net gain (loss) on divestitures caption within the Statement of Consolidated Comprehensive Income. The net assets held for sale are not material to Ashland’s Condensed Consolidated Balance Sheets. 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. Any additional gain or loss recognized as a result of the transaction is expected to be nominal and would be recognized in the period incurred. The disposition is expected to be completed during fiscal 2017.

DISCONTINUED OPERATIONS

3 Months Ended

Dec. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

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 of certain retained liabilities and tax items have been recorded within the discontinued operations caption in the Statements of Consolidated Comprehensive Income for all periods presented and are discussed further within this note.

On July 31, 2014, Ashland completed the sale of the Ashland Water Technologies (Water Technologies) business to Clayton, Dubilier & Rice. Ashland made subsequent post-closing adjustments to the discontinued operations caption as defined by the definitive agreement during the three months ended December 31, 2016 and 2015.

Components of amounts reflected in the Statements of Consolidated Comprehensive Income related to discontinued operations are presented in the following table for the three months ended December 31, 2016 and 2015.



	Three months ended
	December 31
(In millions)	2016		2015
Loss on disposal of discontinued operations (net of tax)
Water Technologies	$	—	$	(2	)
Total loss from discontinued operations (net of tax)	$	—	$	(2	)

The entire disclosure 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.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Topic 205
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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FAIR VALUE MEASUREMENTS

3 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

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 December 31, 2016.



(In millions)	Carrying value		Total fair value		Quoted prices in active markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Assets
Cash and cash equivalents	$	704	$	704	$	704	$	—	$	—
Restricted investments (a)	327		327		327		—		—
Deferred compensation investments (b)	184		184		34		150		—
Investments of captive insurance company (b)	2		2		2		—		—
Foreign currency derivatives	17		17		—		17		—
Total assets at fair value	$	1,234	$	1,234	$	1,067	$	167	$	—

Liabilities
Foreign currency derivatives	$	12	$	12	$	—	$	12	$	—


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


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

The following table summarizes financial asset instruments subject to recurring fair value measurements as of September 30, 2016.



(In millions)	Carrying value		Total fair value		Quoted prices in active markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Assets
Cash and cash equivalents	$	1,188	$	1,188	$	1,188	$	—	$	—
Restricted investments (a)	322		322		322		—		—
Deferred compensation investments (b)	185		185		35		150		—
Investments of captive insurance company (b)	4		4		4		—		—
Foreign currency derivatives	3		3		—		3		—
Total assets at fair value	$	1,702	$	1,702	$	1,549	$	153	$	—

Liabilities
Foreign currency derivatives	$	5	$	5	$	—	$	5	$	—


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


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

Restricted investments

On January 13, 2015, Ashland and Hercules 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 the March 2015 quarter, Ashland placed $335 million of the settlement funds from the January 2015 asbestos insurance settlement into a renewable annual trust restricted for the purpose of paying ongoing and future litigation defense and claim settlement costs incurred in conjunction with asbestos claims. These funds were classified primarily as noncurrent restricted investment assets, with $30 million classified within other current assets, in the Condensed Consolidated Balance Sheets as of December 31, 2016 and September 30, 2016.

During 2015, Ashland diversified the restricted investments received from the January 2015 asbestos insurance settlement into primarily equity and corporate bond mutual funds that are designated as available-for-sale securities, classified as Level 1 measurements within the fair value hierarchy. 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 Condensed Consolidated Balance Sheets as a component of accumulated other comprehensive income (AOCI). Investment 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. The following table provides a summary of the available-for-sale securities portfolio as of December 31, 2016 and September 30, 2016:



	December 31			September 30
(In millions)	2016			2016
Original cost	$	335		$	335
Accumulated investment income, settlement funds,
and disbursements, net	(24		)	(3		)
Adjusted cost (a)	311			332
Investment income (b)	3			8
Unrealized gain	13			11
Unrealized loss	(2		)	—
Settlement funds	2			4
Disbursements	—			(33		)
Fair value	$	327		$	322


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


(b)	Investment income for the demand deposit 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 December 31, 2016 and September 30, 2016:



			Gross		Gross
(In millions)	Adjusted Cost		Unrealized Gain		Unrealized Loss			Fair Value
As of December 31, 2016
Demand Deposit	$	11	$	—	$	—		$	11
Equity Mutual Fund	185		13		—			198
Corporate bond Mutual Fund	120		—		(2		)	118
Fair value	$	316	$	13	$	(2	)	$	327

As of September 30, 2016
Demand Deposit	$	6	$	—	$	—		$	6
Equity Mutual Fund	185		8		—			193
Corporate bond Mutual Fund	120		3		—			123
Fair value	$	311	$	11	$	—		$	322

The unrealized gains and losses as of December 31, 2016 and September 30, 2016 were recognized within AOCI. Ashland invests in highly-rated investment grade mutual funds. No realized gain or loss was reclassified out of AOCI and no other-than-temporary impairment was recognized in AOCI during the three months ended December 31, 2016 and 2015.

The following table presents the investment income and disbursements related to the investments within the portfolio for the three months ended December 31, 2016 and 2015.



	Three months ended
	December 31
(In millions)	2016		2015
Investment income	$	3	$	2
Disbursements	—		(7		)

Deferred compensation investments

Deferred compensation investments consist of Level 1 and Level 2 measurements within the fair value hierarchy. Level 1 investments consist primarily of fixed income U.S. government bonds while Level 2 investments are comprised primarily of a guaranteed interest fund, a common stock index fund and an intermediate government bond fund. Gains and losses related to deferred compensation investments are immediately recognized within the Statements of Consolidated Comprehensive Income.

Derivative and hedging activities

Currency hedges

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 the three months ended December 31, 2016 and 2015 within the Statements of Consolidated Comprehensive Income.



	Three months ended
	December 31
(In millions)	2016		2015
Foreign currency derivative gain	$	2	$	3

The following table summarizes the fair values of the outstanding foreign currency derivatives as of December 31, 2016 and September 30, 2016 included in accounts receivable and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets.



	December 31		September 30
(In millions)	2016		2016
Foreign currency derivative assets	$	15	$	3
Notional contract values	678		333

Foreign currency derivative liabilities	$	12	$	4
Notional contract values	629		530

Net investment hedges

Since 2014, Ashland has entered into foreign currency contracts in order to manage the foreign currency exposure of the net investment in certain foreign operations. These foreign currency contracts were primarily the result of certain proceeds from the sale of Water Technologies being received in non-U.S. denominated currencies during 2014 and ongoing management of the volatility in foreign currency exchange rates. Ashland designated the foreign currency contracts as hedges of net investments in its foreign subsidiaries. As a result, Ashland records these hedges at fair value using forward rates, with the effective portion of the gain or loss reported as a component of the cumulative translation adjustment within AOCI and subsequently recognized in the Statements of Consolidated Comprehensive Income when the hedged item affects net income. During the three months ended December 31, 2016 and 2015, these foreign currency contracts were settled and for certain hedges Ashland entered into new foreign currency contracts designated as hedges of net investments in foreign subsidiaries. These settlements resulted in net gains, recorded within the cumulative translation adjustment within AOCI, of $4 million and $7 million for the three months ended December 31, 2016 and 2015, respectively.

As of December 31, 2016 and September 30, 2016, the total notional value of foreign currency contracts equaled $69 million and $94 million, respectively. The fair value of Ashland's net investment hedge assets and liabilities are calculated using forward rates. Accordingly, these instruments are deemed to be Level 2 measurements within the fair value hierarchy. Counterparties to these net investment hedges are highly rated financial institutions which Ashland believes carry only a nominal risk of nonperformance. The following table summarizes the fair value of the outstanding net investment hedge instruments as of December 31, 2016 and September 30, 2016.



		December 31		September 30
(In millions)	Consolidated balance sheet caption	2016		2016
Net investment hedge assets (a)	Accounts receivable	$	2	$	—
Net investment hedge liabilities (a)	Accrued expenses and other liabilities	—		1


(a)	Fair value of $0 denotes a value less than $1 million.

The following table summarizes the change in the unrealized gain (loss) on the net investment hedge instruments recognized within the cumulative translation adjustment within AOCI during the three months ended December 31, 2016 and 2015. No portion of the gain or loss was reclassified to income during the three months ended December 31, 2016 and 2015. There was no hedge ineffectiveness with these instruments during the three months ended December 31, 2016 and 2015.



	Three months ended
	December 31
(In millions)	2016			2015
Change in unrealized gain in AOCI (a)	$	2		$	—
Tax impact of change in unrealized gain in AOCI (a)	(1		)	—


(a)	$0 denotes a value less than $1 million.

Other financial instruments

At December 31, 2016 and September 30, 2016, Ashland’s consolidated long-term debt (including the current portion and excluding debt issuance cost discounts) had a carrying value of $2,869 million and $3,103 million, respectively, compared to a fair value of $3,020 million and $3,336 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.

Goodwill and Intangible Assets Disclosure [Abstract]

INVENTORIES

3 Months Ended

Dec. 31, 2016

Inventory Disclosure [Abstract]

INVENTORIES

Inventories are carried at the lower of cost or market. Inventories are primarily stated at cost using the weighted-average cost method. In addition, certain chemicals, plastics and lubricants are valued at cost using the last-in, first-out (LIFO) method.

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



	December 31			September 30
(In millions)	2016			2016
Finished products	$	512		$	516
Raw materials, supplies and work in process	182			184
LIFO reserves	(28		)	(29		)
	$	666		$	671

GOODWILL AND OTHER INTANGIBLES

3 Months Ended

Dec. 31, 2016

GOODWILL AND OTHER INTANGIBLES

Goodwill

Ashland reviews goodwill and indefinite-lived intangible assets 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. For its July 1, 2016 assessment, Ashland determined that its reporting units for the allocation of goodwill include the Specialty Ingredients reportable segment, the Composites and Intermediates/Solvents reporting units within the Performance Materials reportable segment, and the Core North America, Quick Lubes and International reporting units within the Valvoline reportable segment. 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 for Intermediates/Solvents during the fourth quarter of 2016.

The following is a progression of goodwill by reportable segment for the three months ended December 31, 2016.



	Specialty			Performance
(In millions)	Ingredients			Materials			(a)	Valvoline		(b)	Total
Balance as of September 30, 2016	$	1,991		$	147			$	263		$	2,401
Acquisitions (c)	—			—				4			4
Currency translation adjustment	(54		)	(3		)		—			(57		)
Balance as of December 31, 2016	$	1,937		$	144			$	267		$	2,348


(a)	As of December 31, 2016, goodwill was completely attributable to the Composites reporting unit due to the full impairment of the goodwill for the Intermediates/Solvents reporting unit during the fourth quarter of 2016.


(b)	As of December 31, 2016, goodwill consisted of $89 million for the Core North America reporting unit, $139 million for the Quick Lubes reporting unit and $39 million for the International reporting unit.


(c)	Relates to Valvoline Instant Oil Change^SM center acquisitions during the three months ended December 31, 2016.

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 20 years, and customer relationships over 3 to 24 years.

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.

Intangible assets were comprised of the following as of December 31, 2016 and September 30, 2016.



	December 31, 2016
	Gross					Net
	carrying		Accumulated			carrying
(In millions)	amount		amortization			amount
Definite-lived intangible assets
Trademarks and trade names	$	42	$	(20	)	$	22
Intellectual property	659		(284		)	375
Customer relationships	530		(202		)	328
Total definite-lived intangible assets	1,231		(506		)	725

Indefinite-lived intangible assets
Trademarks and trade names	301		—			301
Total intangible assets	$	1,532	$	(506	)	$	1,026



	September 30, 2016
	Gross					Net
	carrying		Accumulated			carrying
(In millions)	amount		amortization			amount
Definite-lived intangible assets
Trademarks and trade names	$	42	$	(19	)	$	23
Intellectual property	667		(273		)	394
Customer relationships	546		(200		)	346
Total definite-lived intangible assets	1,255		(492		)	763

Indefinite-lived intangible assets
Trademarks and trade names	301		—			301
Total intangible assets	$	1,556	$	(492	)	$	1,064

Amortization expense recognized on intangible assets was $19 million for each of the three months ended December 31, 2016 and 2015, and is included in the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income. Estimated amortization expense for future periods is $75 million in 2017 (includes three months actual and nine months estimated), $75 million in 2018, $70 million in 2019, $70 million in 2020 and $69 million in 2021. 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.

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

Compensation and Retirement Disclosure [Abstract]

DEBT

3 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

DEBT

The following table summarizes Ashland’s current and long-term debt as of the dates reported in the Condensed Consolidated Balance Sheets.



	December 31			September 30
(In millions)	2016			2016
4.750% notes, due 2022	$	1,085		$	1,121
3.875% notes, due 2018	671			700
6.875% notes, due 2043	376			376
5.500% notes, due 2024 (a)	375			375
Term Loan, due 2021 (a)	296			375
2017 accounts receivable securitization facility (a)	75			—
6.50% junior subordinated notes, due 2029	50			140
Other international loans, interest at a weighted-
average rate of 4.9% at December 31, 2016 (4.8% to 5.0%)	17			20
Medium-term notes, due 2019, interest of 9.4% at December 31, 2016	5			5
Term Loan, due 2017	—			150
Other (b)	(18		)	(18		)
Total debt	2,932			3,244
Short-term debt	(92		)	(170		)
Current portion of long-term debt	(15		)	(19		)
Long-term debt (less current portion and debt issuance cost discounts)	$	2,825		$	3,055


(a)	These debt instruments were issued by Valvoline during 2016 and 2017 in connection with the separation process.


(b)	Other includes $29 million of debt issuance cost discounts as of December 31, 2016 and September 30, 2016.

The scheduled aggregate maturities of long-term debt by year (including the current portion and excluding debt issuance costs) are as follows: $11 million remaining in 2017, $686 million in 2018, $35 million in 2019, $30 million in 2020 and $210 million in 2021.

Ashland Financing Activities

6.50% junior subordinated notes due 2029

In December 2016, Hercules LLC (Hercules) (formerly Hercules Incorporated), an indirect wholly-owned subsidiary of Ashland, repurchased, through a cash tender offer (the 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 of the Tender Offer, 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. The charge and net gain are included in the net interest and other financing expense caption of the Statements of Consolidated Comprehensive Income for the three months ended December 31, 2016.

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

During the first quarter of 2017, Ashland executed open market repurchases of its 4.750% notes due 2022 (2022 notes) and its 3.875% notes due 2018 (2018 notes). As a result of these repurchases, the carrying values of the 2022 notes and 2018 notes were reduced by $36 million and $29 million, respectively. Ashland recognized a $2 million charge related to premiums paid in the open market repurchases and 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 for the three months ended December 31, 2016.

Subsidiary senior unsecured term loan

During August 2016, a wholly owned foreign subsidiary of Ashland entered into a credit agreement which provided for an aggregate principal amount of $150 million in a senior unsecured term loan facility. This term loan was drawn in full as of September 30, 2016 and was fully repaid during the three months ended December 31, 2016.

Remaining borrowing capacity

The borrowing capacity remaining under Ashland's 2015 revolving credit facility was $742 million, due to a reduction of $58 million for letters of credit outstanding at December 31, 2016. Ashland's total borrowing capacity at December 31, 2016 (excluding Valvoline) was $817 million, which included $75 million of available capacity from the accounts receivable securitization facility.

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 December 31, 2016, Ashland is in compliance with all debt covenant restrictions.

The maximum consolidated leverage ratios permitted under Ashland's most recent credit agreement (the 2015 Senior Credit Agreement) are as follows: 3.75 from June 30, 2015 through December 31, 2016 and 3.5 from March 31, 2017 and each fiscal quarter thereafter. At December 31, 2016, Ashland’s calculation of the consolidated leverage ratio was 3.1, which is below the maximum consolidated leverage ratio of 3.75.

The minimum required consolidated interest coverage ratio under the 2015 Senior Credit Agreement during its entire duration is 3.0. At December 31, 2016, Ashland’s calculation of the interest coverage ratio was 4.4, which exceeds the minimum required consolidated ratio of 3.0.

Valvoline Financing Activities

Accounts receivable securitization

In November 2016, Valvoline entered into a $125 million accounts receivable securitization facility (the 2017 accounts receivable securitization facility) pursuant to (i) a Sale Agreement, between Valvoline and LEX Capital LLC, a wholly-owned “bankruptcy remote” special purpose subsidiary of Valvoline (Lex) and (ii) a Transfer and Administration Agreement, among Lex, Valvoline, as Master Servicer, a certain Conduit Investor, Uncommitted Investor, and Letter of Credit Issuer, certain Managing Agents, Administrators and Committed Investors, and PNC Bank National Association, as agent for various secured parties (the Agent).

Under the Sale Agreement, Valvoline will sell, on an ongoing basis, substantially all of its accounts receivable, certain related assets and the right to the collections on those accounts receivable to Lex. Under the terms of the Transfer and Administration Agreement, Lex may, from time to time, obtain up to $125 million (in the form of cash or letters of credit for the benefit of Valvoline) from the Conduit Investor, the Uncommitted Investor and/or the Committed Investors (together the “Investors”) through the sale of an undivided interest in such accounts receivable, related assets and collections. The Transfer and Administration Agreement has a term of one year but is extendable at the discretion of the Investors. Valvoline accounts for the 2017 accounts receivable securitization facility as secured borrowings, and the receivables sold pursuant to the facility are included in Ashland's Condensed Consolidated Balance Sheet as accounts receivable. Valvoline classifies any borrowings under this facility as short-term debt within Ashland's Condensed Consolidated Balance Sheet.

During the first quarter of 2017, Valvoline borrowed $75 million under the 2017 accounts receivable securitization facility and used the net proceeds to repay an equal amount of the 2016 term loan facility. As a result, Valvoline recognized a $1 million charge related to 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 for the three months ended December 31, 2016.

Remaining borrowing capacity

At December 31, 2016, the total borrowing capacity remaining under Valvoline's 2016 revolving credit facility was $428 million due to a reduction of $22 million for letters of credit outstanding. Valvoline's total borrowing capacity at December 31, 2016 was $478 million, which included $50 million of available capacity from the 2017 accounts receivable securitization facility.

Covenants related to current Valvoline debt agreements

The Valvoline Credit Agreement contains usual and customary representations and warranties, and usual and customary affirmative and negative covenants, including limitations on liens, additional indebtedness, investments, restricted payments, asset sales, mergers, affiliate transactions and other customary limitations, as well as financial covenants (including maintenance of a maximum consolidated leverage ratio and a minimum consolidated interest coverage ratio) and other customary limitations. As of December 31, 2016, Valvoline Inc. was in compliance with all debt agreement covenant restrictions.

The maximum consolidated leverage ratio permitted under the Valvoline Credit Agreement is 4.5. At December 31, 2016, Valvoline’s calculation of the consolidated leverage ratio was 1.2, which is below the maximum consolidated leverage ratio of 4.5.

The minimum required consolidated interest coverage ratio under the Valvoline Credit Agreement during its entire duration is 3.0. At December 31, 2016, Valvoline’s calculation of the interest coverage ratio was 13.6, which exceeds the minimum required consolidated ratio of 3.0.

INCOME TAXES

3 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

Current fiscal year

Ashland’s estimated annual effective income tax rate used to determine income tax expense in interim financial reporting for the year ending September 30, 2017 is 25%. Ashland’s effective tax rate in any interim period is subject to adjustments related to discrete items and the mix of domestic and foreign operating results. The overall effective tax benefit rate was 150% for the three months ended December 31, 2016. The effective income tax rate was impacted by the current quarter income mix, including the Ashland identified key items, which resulted in charges that were taxed at a U.S. statutory rate and drove the overall rate to a tax benefit. The current quarter tax rate was also impacted by net unfavorable tax discrete items of $1 million.

Prior fiscal year

Ashland’s annual effective income tax rate used to determine income tax expense in interim financial reporting for the year ending September 30, 2016 was 25%. The overall effective tax rate was 18% for the three months ended December 31, 2015 and was impacted by net favorable tax discrete items of $7 million, primarily related to the law change from the reinstatement of the research and development credit and certain global restructuring steps.

Unrecognized tax benefits

Changes in unrecognized tax benefits are summarized as follows for the three months ended December 31, 2016.



(In millions)
Balance at October 1, 2016	$	168
Increases related to positions taken on items from prior years	4
Decreases related to positions taken on items from prior years	(2		)
Increases related to positions taken in the current year	4
Settlement of uncertain tax positions with tax authorities	(1		)
Balance at December 31, 2016	$	173

In the next twelve months, Ashland expects a decrease in the amount accrued for uncertain tax positions of up to $3 million for continuing operations and zero for discontinued operations related primarily to audit settlements and statute of limitations expirations in various tax jurisdictions. It is reasonably possible that there could be other material changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues or the reassessment of existing uncertain tax positions; however, Ashland is not able to estimate the impact of these items at this time.

EMPLOYEE BENEFIT PLANS

3 Months Ended

Dec. 31, 2016

EMPLOYEE BENEFIT PLANS

For the three months ended December 31, 2016, Ashland contributed $2 million to its non-qualified U.S. pension plans, all of which was paid by Valvoline, and $1 million to its non-U.S. pension plans. No contributions were made to Ashland's qualified U.S. pension plans during the three months ended December 31, 2016. Ashland expects to make additional contributions to the non-qualified U.S. plans of approximately $13 million, which will be paid by Valvoline, and to the non-U.S. plans of approximately $9 million during the remainder of 2017.

Plan Transfers, Amendments and Remeasurements

Effective January 1, 2017, Ashland discontinued certain post-employment health and life insurance benefits. The effect of these plan changes resulted in a remeasurement gain of $10 million, $4 million within cost of sales and $6 million within selling, general and administrative expense, in the Statements of Consolidated Comprehensive Income for the three months ended December 31, 2016.

During September 2016, Ashland transferred a substantial portion of the largest U.S. qualified pension and non-qualified U.S. pension plans as well as certain other postretirement obligations to Valvoline Inc. as part of the separation process discussed further in Note B.

Components of net periodic benefit costs (income)

For segment reporting purposes, service cost for continuing operations is proportionately allocated to each 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 details the components of pension and other postretirement benefit costs.



							Other postretirement
	Pension benefits						benefits
(In millions)	2016			2015			2016			2015
Three months ended December 31
Service cost (a)	$	3		$	6		$	—		$	—
Interest cost	23			31			1			2
Expected return on plan assets	(39		)	(47		)	—			—
Amortization of prior service credit (a)	—			(1		)	(3		)	(4		)
Actuarial gain	—			—			(10		)	—
	$	(13	)	$	(11	)	$	(12	)	$	(2	)


(a)	Activity of $0 denote values less than $1 million.

LITIGATION, CLAIMS AND CONTINGENCIES

3 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

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 Hamilton, Rabinovitz & Associates, Inc. (HR&A). The methodology used by HR&A 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, HR&A 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.

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 Stoker Corporation, 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.



	Three months ended
	December 31				Years ended September 30
(In thousands)	2016		2015		2016		2015		2014
Open claims - beginning of period	57		60		60		65		65
New claims filed	—		1		2		2		2
Claims settled	—		—		—		—		(1	)
Claims dismissed	(1	)	(2	)	(5	)	(7	)	(1	)
Open claims - end of period	56		59		57		60		65

Ashland asbestos-related liability

During the most recent annual update of this estimate completed during the June 2016 quarter, it was determined that the liability for Ashland asbestos-related claims should be increased by $37 million. Total reserves for asbestos claims were $406 million at December 31, 2016 compared to $415 million at September 30, 2016.

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



	Three months ended
	December 31						Years ended September 30
(In millions)	2016			2015			2016			2015			2014
Asbestos reserve - beginning of period	$	415		$	409		$	409		$	438		$	463
Reserve adjustment	—			—			37			—			4
Amounts paid	(9		)	(8		)	(31		)	(29		)	(29		)
Asbestos reserve - end of period	$	406		$	401		$	415		$	409		$	438

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 December 31, 2016, Ashland’s receivable for recoveries of litigation defense and claim settlement costs from insurers amounted to $149 million (excluding the Hercules receivable for asbestos claims), of which $7 million relates to costs previously paid. Receivables from insurers amounted to $151 million at September 30, 2016. During the June 2016 quarter, 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 $16 million increase in the receivable for probable insurance recoveries.

During the March 2016 quarter, Ashland entered into settlement agreements totaling $4 million with certain insurers, which resulted in a reduction of the Ashland insurance receivable within the Condensed Consolidated Balance Sheets by the same amount. During the June 2016 quarter, Ashland placed $4 million of the settlement funds into the renewable annual trust.

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



	Three months ended
	December 31						Years ended September 30
(In millions)	2016			2015			2016			2015			2014
Insurance receivable - beginning of period	$	151		$	150		$	150		$	402		$	408
Receivable adjustment	—			—			16			(3		)	22
Insurance settlement	—			—			(4		)	(227		)	—
Amounts collected	(2		)	(5		)	(11		)	(22		)	(28		)
Insurance receivable - end of period	$	149		$	145		$	151		$	150		$	402

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.



	Three months ended
	December 31		Years ended September 30
(In thousands)	2016	2015	2016		2015		2014
Open claims - beginning of period	15	20	20		21		21
New claims filed	—	—	1		1		1
Claims dismissed	—	—	(6	)	(2	)	(1	)
Open claims - end of period	15	20	15		20		21

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 HR&A. As a result of the most recent annual update of this estimate, completed during the June 2016 quarter, it was determined that the liability for Hercules asbestos-related claims should be increased by $25 million. Total reserves for asbestos claims were $318 million at December 31, 2016 compared to $321 million at September 30, 2016.

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



	Three months ended
	December 31						Years ended September 30
(In millions)	2016			2015			2016			2015			2014
Asbestos reserve - beginning of period	$	321		$	311		$	311		$	329		$	342
Reserve adjustment	—			—			25			4			10
Amounts paid	(3		)	(5		)	(15		)	(22		)	(23		)
Asbestos reserve - end of period	$	318		$	306		$	321		$	311		$	329

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 December 31, 2016 and September 30, 2016, the receivables from insurers amounted to $63 million. During the June 2016 quarter, 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 $7 million increase in the receivable for probable insurance recoveries.

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



	Three months ended
	December 31				Years ended September 30
(In millions)	2016		2015		2016		2015			2014
Insurance receivable - beginning of period	$	63	$	56	$	56	$	77		$	75
Receivable adjustment	—		—		7		1			3
Insurance settlement	—		—		—		(22		)	—
Amounts collected	—		—		—		—			(1		)
Insurance receivable - end of period	$	63	$	56	$	63	$	56		$	77

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 $670 million for the Ashland asbestos-related litigation (current reserve of $406 million) and approximately $490 million for the Hercules asbestos-related litigation (current reserve of $318 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 December 31, 2016, 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, 130 current and former operating facilities (including certain operating facilities conveyed as part of the MAP Transaction) and about 1,225 service station properties, of which 64 are being actively remediated.

Ashland’s reserves for environmental remediation and related environmental litigation amounted to $174 million at December 31, 2016 compared to $177 million September 30, 2016, of which $131 million at December 31, 2016 and $134 million at September 30, 2016 were classified in other noncurrent liabilities on the Condensed Consolidated Balance Sheets.

The following table provides a reconciliation of the changes in the environmental remediation reserves during the three months ended December 31, 2016 and 2015.



	Three months ended
	December 31
(In millions)	2016			2015
Reserve - beginning of period	$	177		$	186
Disbursements	(7		)	(10		)
Revised obligation estimates and accretion	4			4
Reserve - end of period	$	174		$	180

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 December 31, 2016 and September 30, 2016, Ashland’s recorded receivable for these probable insurance recoveries was $23 million, of which $15 million at December 31, 2016 and September 30, 2016 were classified in other noncurrent assets on the Condensed Consolidated Balance Sheets.

Components of environmental remediation expense included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income are presented in the following table for the three months ended December 31, 2016 and 2015.



	Three months ended
	December 31
(In millions)	2016		2015
Environmental expense	$	4	$	4
Legal expense	2		2
Total expense	6		6

Insurance receivable (a)	—		—
Total expense, net of receivable activity	$	6	$	6


(a)	Activity of $0 denotes value less than $1 million.

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 $380 million. No individual remediation location is significant, as the largest reserve for any site is less than 15% 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 December 31, 2016 and September 30, 2016. 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 December 31, 2016.

EARNINGS PER SHARE

3 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

EARNINGS PER SHARE

The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Stock appreciation rights (SARs), stock options and warrants available to purchase shares outstanding for each reporting period whose grant price was greater than the average market price of Ashland Common Stock for each applicable period were not included in the computation of income from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was approximately 0.9 million and 1.2 million at December 31, 2016 and 2015, respectively. Earnings per share is reported under the treasury stock method.



	Three months ended
	December 31
(In millions except per share data)	2016			2015
Numerator
Numerator for basic and diluted EPS –
Income from continuing operations	$	10		$	91
Less: Income from continuing operations attributable to noncontrolling interest	11			—
Income (loss) from continuing operations attributable to Ashland, net of tax	$	(1	)	$	91
Denominator
Denominator for basic EPS – Weighted-average
common shares outstanding	62			65
Share-based awards convertible to common shares (a)	—			1
Denominator for diluted EPS – Adjusted weighted-
average shares and assumed conversions	62			66

EPS from continuing operations attributable to Ashland
Basic	$	(0.01	)	$	1.39
Diluted	(0.01		)	1.38


(a)	As a result of the loss from continuing operations attributable to Ashland during the three months ended December 31, 2016, the effect of the share-based awards convertible to common shares would be antidilutive. As such, they have been excluded from the diluted EPS calculation.

EQUITY ITEMS

3 Months Ended

Dec. 31, 2016

Equity [Abstract]

EQUITY ITEMS

Stock repurchase programs

In April 2015, Ashland's Board of Directors approved a $1 billion share repurchase authorization that will expire on December 31, 2017 (the 2015 stock repurchase program). This authorization allows for Ashland’s common shares to be repurchased in open market transactions, privately negotiated transactions or pursuant to one or more accelerated stock repurchase programs or Rule 10b5-1 plans. The following summarizes the stock repurchases under the 2015 stock repurchase program.

2015 stock repurchase program agreement

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 the March 2016 quarter to settle the difference between the initial share delivery and the total number of shares repurchased. After the 2016 ASR Agreement, $500 million of share repurchase authorization remains under the 2015 stock repurchase program.

Stockholder dividends

Ashland dividends

In May 2015, the Board of Directors of Ashland announced a quarterly cash dividend increase to 39 cents per share to eligible shareholders of record. This amount was paid for quarterly dividends in the first quarter of fiscal 2017 and each quarter of fiscal 2016.

Valvoline dividends

In November 2016, the Board of Directors of Valvoline Inc. announced a quarterly cash dividend of 4.9 cents per share to eligible shareholders of record. This was Valvoline Inc.'s first dividend declaration and was paid for quarterly dividends during the first quarter of fiscal 2017. Since Ashland owns approximately 83% of Valvoline Inc., the net cash outflow of $2 million was payments made to the remaining 17% of shareholders outstanding and is included within the Statements of Condensed Consolidated Cash Flows for the three months ended December 31, 2016.

Accumulated other comprehensive income (loss)

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



	2016								2015
												Tax
	Before			Tax		Net of			Before			(expense)			Net of
(In millions)	tax			benefit		tax			tax			benefit			tax
Three months ended December 31
Other comprehensive income (loss)
Unrealized translation loss	$	(150	)	$	4	$	(146	)	$	(63	)	$	2		$	(61	)
Pension and postretirement obligation adjustment:
Amortization of unrecognized prior service
credits included in net income (a)	(3		)	2		(1		)	(5		)	2			(3		)
Unrealized gain on available-for-sale securities	—			—		—			9			(3		)	6
Total other comprehensive loss	$	(153	)	$	6	$	(147	)	$	(59	)	$	1		$	(58	)


(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.

As discussed in the table above, certain pension and postretirement costs (income) are amortized from accumulated other comprehensive income (loss) and recognized in net income. The captions on the Statements of Consolidated Comprehensive Income impacted by the amortization of unrecognized prior service credits for pension and other postretirement plans are disclosed within. See Note J for more information.



	Three months ended
	December 31
(In millions)	2016			2015
Cost of sales	$	(1	)	$	(2	)
Selling, general and administrative expense	(2		)	(3		)
Total amortization of unrecognized prior service credits	$	(3	)	$	(5	)

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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REPORTABLE SEGMENT INFORMATION

STOCK INCENTIVE PLANS	3 Months Ended
STOCK INCENTIVE PLANS	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK INCENTIVE PLANS	Ashland has stock incentive plans under which key employees or directors are granted stock-settled 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 within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income. Stock-based compensation expense was $8 million and $9 million for the three months ended December 31, 2016 and 2015, respectively. Stock-based compensation expense during the three months ended December 31, 2016 included cash-settled nonvested stock awards expense and cash-settled performance units expense of $1 million each, while the three months ended December 31, 2015 included only $1 million of expense for cash-settled nonvested stock awards. SARs 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. SARS granted for each of the three months ended December 31, 2016 and 2015 were 0.4 million. As of December 31, 2016, there was $14 million of total unrecognized compensation costs related to SARs. That cost is expected to be recognized over a weighted-average period of 2.3 years. 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. 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. During 2016 and 2017, 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 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. Nonvested stock awards granted were 80,800 and 87,050 for the three months ended December 31, 2016 and 2015, respectively. As of December 31, 2016, there was $16 million of total unrecognized compensation costs related to nonvested stock awards. That cost is expected to be recognized over a weighted-average period of 1.8 years. Cash-settled nonvested stock awards Certain nonvested stock awards are granted to employees and are settled in cash upon vesting. As of December 31, 2016, 96,400 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 $1 million during the three months ended December 31, 2016 and 2015. Performance awards Ashland sponsors a long-term incentive plan that awards performance shares/units to certain key employees that are primarily tied to Ashland’s overall financial performance relative to internal targets. Additionally, certain outstanding performance awards are tied to Ashland's overall financial performance relative to the financial performance of selected industry peer groups. Awards are granted annually, with each award covering a three-year vesting period. For awards granted in prior years, each performance share/unit is convertible to one share of Ashland Common Stock. These plans are recorded as a component of stockholders’ equity in the Condensed 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 under applicable U.S. GAAP. For awards granted in the current year, upon vesting, each performance unit will be settled in cash based on the fair market value of Ashland or Valvoline common stock. For these awards, dependent upon whether the participant is an employee of Ashland or Valvoline, the performance measure used to determine the actual number of performance units issuable upon vesting is the financial performance of Ashland or Valvoline 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 and Valvoline. Nonvested performance shares/units do not entitle employees to vote the shares or to receive any dividends thereon. Performance shares/units granted for the three months ended December 31, 2016 and 2015 were 0.1 million. As of December 31, 2016, there was $16 million of total unrecognized compensation costs related to performance shares/units. That cost is expected to be recognized over a weighted-average period of 2.2 years. Other commitments 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. At December 31, 2016, total nonvested shares outstanding, assuming vesting at the 100% performance level, are 264 thousand shares, which includes the cumulative value of forfeitable dividends. The expense associated with these awards is contingent upon the completion of the full separation and therefore will not be recorded until the full and complete separation occurs. Based on the price of Ashland’s common stock on the grant date, the total estimated unrecognized compensation expense is $15 million assuming the performance mid-point target is met. At that time, the awards will be recognized ratably over the remaining vesting period.

REPORTABLE SEGMENT INFORMATION

3 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

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 reviewed by the chief operating decision maker in assessing each reportable segment's financial performance. Ashland does not aggregate operating segments to arrive at these reportable segments. Ashland’s businesses are managed within three reportable segments: Specialty Ingredients, Performance Materials and Valvoline.

Reportable segment business descriptions

Specialty Ingredients is a global leader in cellulose ethers, vinyl pyrrolidones and biofunctionals. It offers industry-leading products, technologies and resources for solving formulation and product-performance challenges. Specialty Ingredients uses 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 includes two divisions, Consumer Specialties and Industrial Specialties, that offer comprehensive and innovative solutions for today’s demanding consumer and industrial applications. Key customers include: pharmaceutical companies; makers of personal care products, food and beverages; manufacturers of paint, coatings and construction materials; packaging and converting; and oilfield service companies.

Performance Materials is a global leader in unsaturated polyester resins and vinyl ester resins. The business unit has leading positions in gelcoats, maleic anhydride, butanediol, tetrahydrofuran, N-Methylpyrrolidone and other intermediates and solvents. Key customers include: manufacturers of residential and commercial building products; industrial product specifiers and manufacturers; wind blade and pipe manufacturers; automotive and truck OEM suppliers; boatbuilders; engineered plastics and electronic producers; and specialty chemical manufacturers.

Valvoline is a leading worldwide producer and distributor of premium-branded automotive, commercial and industrial lubricants, and automotive chemicals. In 2016, it ranked as the #2 quick-lube chain by number of stores and #3 passenger car motor oil in the DIY market by volume brand in the United States. The brand operates and franchises 1,076 Valvoline Instant Oil Change^SM centers in the United States. It also markets Valvoline^TM lubricants and automotive chemicals; MaxLife^TM lubricants created for higher-mileage engines; SynPower^TM synthetic motor oil; and Zerex^TM antifreeze. Key customers include: retail auto parts stores and mass merchandisers who sell to consumers; installers, such as car dealers, repair shops and quick lubes; commercial fleets; and distributors. During February 2016, Ashland completed the acquisition of Oil Can Henry's resulting in the addition of 89 quick-lube stores. See Note B for information on the acquisition of Oil Can Henry's.

During 2015, Ashland announced a plan to separate Valvoline into an independent, publicly traded company. On September 22, 2016, Ashland and Valvoline Inc. announced an IPO of Valvoline Inc.’s common stock and closed the IPO on September 28, 2016. As a result of the IPO, Ashland maintains an approximately 83% ownership interest in Valvoline Inc. as of September 30, 2016. See Note B for additional information. The financial information within this footnote is reflective of the manner in which Ashland manages the Valvoline reportable segment and the Valvoline reportable segment does not include any assets or liabilities transferred to Valvoline Inc. by Ashland in September 2016. Valvoline’s financial position and results of operations as reported as a segment of Ashland may be different than how they are reported on a stand-alone basis.

Unallocated and Other generally includes items such as components of pension and other postretirement benefit plan expenses (excluding service costs, which are allocated to the reportable segments), 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.

Reportable segment results

Results of Ashland’s reportable segments are presented based on its management structure and internal accounting practices. The structure and practices are 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, such as the restructuring plans, 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. Revisions to Ashland’s methodologies that are deemed insignificant are applied on a prospective basis.

The following table presents various financial information for each reportable segment for the three months ended December 31, 2016 and 2015.



	Three months ended
	December 31
(In millions - unaudited)	2016			2015
SALES
Specialty Ingredients	$	482		$	476
Performance Materials	222			231
Valvoline	489			456
	$	1,193		$	1,163
OPERATING INCOME (LOSS)
Specialty Ingredients	$	40		$	38
Performance Materials	8			24
Valvoline	99			92
Unallocated and other	(10		)	(3		)
	$	137		$	151

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Supplemental Guarantor Information [Abstract]

SUPPLEMENTAL GUARANTOR INFORMATION

3 Months Ended

Dec. 31, 2016

SUPPLEMENTAL GUARANTOR INFORMATION

The following tables present condensed consolidating financial information for (a) Ashland Global Holdings Inc. (for purposes of this discussion and table, Parent Guarantor); (b) Ashland LLC (formerly Ashland Inc.), the issuer of the 3.875% notes due 2018, 4.750% notes due 2022 and 6.875% notes due 2043 (collectively referred to as the Senior Notes) (the Issuer); and (c) all other non-guarantor subsidiaries of the Parent Guarantor on a combined basis, none of which guaranteed the Senior Notes (the Other Non-Guarantor Subsidiaries).

Ashland Global Holdings Inc. was incorporated on May 6, 2016 as a direct wholly owned subsidiary of Ashland Inc. (now Ashland LLC) to reincorporate in Delaware and to help facilitate the separation of the Valvoline business from the specialty chemical businesses. As a result of the Reorganization, Ashland Global Holdings Inc. replaced Ashland Inc. as the publicly held corporation, and Ashland Inc. was converted to a Kentucky limited liability company and is now an indirect, wholly owned subsidiary of Ashland Global Holdings Inc. Ashland Global Holdings Inc. fully and unconditionally guaranteed the Senior Notes and has no significant independent assets or operations. For periods prior to September 30, 2016, the parent entity was Ashland LLC (formerly Ashland Inc.).

Ashland presents all investments in subsidiaries in the supplemental guarantor information using the equity method of accounting. Therefore, the net income (loss) of the subsidiaries accounted for using the equity method is in their parents’ investment accounts. For each financial statement period presented within the following tables, Ashland Global Holdings Inc.’s activity reflects the accounting for investments in subsidiaries under the equity method reflective of the 2016 Reorganization and resulting presentation. The elimination entries within the tables primarily eliminate investments in subsidiaries and inter-company balances and transactions. The total net effect of the settlement of these inter-company transactions is reflected in the Condensed Statements of Cash Flows as a financing activity. The following supplemental condensed consolidating financial statements present information about Ashland Global Holdings Inc., Ashland LLC and other non-guarantor subsidiaries.



Condensed Statements of Comprehensive Income
Three months ended December 31, 2016
(In millions)	Ashland Global Holdings Inc. (Parent Guarantor)			Ashland LLC (Issuer)			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	137		$	1,065		$	(9	)	$	1,193
Cost of sales	—			96			719			(8		)	807
Gross profit	—			41			346			(1		)	386

Selling, general and administrative expense	8			32			199			—			239
Research and development expense	—			3			20			—			23
Equity and other income (loss)	—			(15		)	28			—			13
Operating income (loss)	(8		)	(9		)	155			(1		)	137

Net interest and other financing expense	—			34			98			—			132
Net loss on divestitures	—			(1		)	—			—			(1		)
Income (loss) from continuing operations
before income taxes	(8		)	(44		)	57			(1		)	4
Income tax expense (benefit)	—			5			(11		)	—			(6		)
Equity in net income (loss) of subsidiaries	7			1			—			(8		)	—
Net income (loss)	(1		)	(48		)	68			(9		)	10
Net income attributable to noncontrolling interests	—			—			11			—			11
Net income (loss) attributable to Ashland	$	(1	)	$	(48	)	$	57		$	(9	)	$	(1	)

Comprehensive income (loss)	(137		)	(41		)	(86		)	127			(137		)
Comprehensive income attributable
to noncontrolling interests	10			—			10			(10		)	10
Comprehensive income (loss) attributable
to Ashland	$	(147	)	$	(41	)	$	(96	)	$	137		$	(147	)



Condensed Statements of Comprehensive Income
Three months ended December 31, 2015
(In millions)	Ashland Global Holdings Inc. (Parent Guarantor)		Ashland LLC (Issuer)			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—	$	156		$	1,014		$	(7	)	$	1,163
Cost of sales	—		102			675			(6		)	771
Gross profit	—		54			339			(1		)	392

Selling, general and administrative expense	—		32			192			—			224
Research and development expense	—		3			22			—			25
Equity and other income (loss)	—		(2		)	10			—			8
Operating income (loss)	—		17			135			(1		)	151

Net interest and other financing expense	—		38			4			—			42
Net gain on divestitures	—		1			1			—			2
Income (loss) from continuing operations
before income taxes	—		(20		)	132			(1		)	111
Income tax expense (benefit)	—		(27		)	47			—			20
Equity in net income (loss) of subsidiaries	89		95			—			(184		)	—
Income (loss) from continuing operations	89		102			85			(185		)	91
Loss from discontinued operations (net of tax)	—		(1		)	(1		)	—			(2		)
Net income (loss)	$	89	$	101		$	84		$	(185	)	$	89

Comprehensive income (loss)	$	31	$	100		$	27		$	(127	)	$	31



Condensed Balance Sheets
At December 31, 2016
(In millions)	Ashland Global Holdings Inc. (Parent Guarantor)		Ashland LLC (Issuer)		Other Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	—	$	148	$	556		$	—		$	704
Accounts receivable	—		47		811			—			858
Inventories	—		45		621			—			666
Other assets	6		10		100			(10		)	106
Total current assets	6		250		2,088			(10		)	2,334
Noncurrent assets
Property, plant and equipment, net	—		241		1,945			—			2,186
Goodwill	—		141		2,207			—			2,348
Intangibles	—		35		991			—			1,026
Restricted investments	—		—		297			—			297
Asbestos insurance receivable	—		131		63			—			194
Equity and other unconsolidated investments	—		2		58			—			60
Investment in subsidiaries	2,995		7,503		—			(10,498		)	—
Deferred income taxes	31		97		199			(128		)	199
Intercompany receivables	—		19		2,539			(2,558		)	—
Other assets	—		254		165			—			419
Total noncurrent assets	3,026		8,423		8,464			(13,184		)	6,729
Total assets	$	3,032	$	8,673	$	10,552		$	(13,194	)	$	9,063
LIABILITIES AND EQUITY
Current liabilities
Short-term debt	$	—	$	—	$	92		$	—		$	92
Current portion of long-term debt	—		—		15			—			15
Accounts payable and other accrued liabilities	—		222		697			(10		)	909
Total current liabilities	—		222		804			(10		)	1,016
Noncurrent liabilities
Long-term debt	—		2,116		709			—			2,825
Employee benefit obligations	—		38		1,002			—			1,040
Asbestos litigation reserve	—		371		303			—			674
Deferred income taxes	—		—		197			(128		)	69
Intercompany payables	31		2,508		19			(2,558		)	—
Other liabilities	—		220		218			—			438
Total noncurrent liabilities	31		5,253		2,448			(2,686		)	5,046
Equity
Total Ashland stockholders’ equity	3,001		3,198		7,474			(10,498		)	3,175
Noncontrolling interests	—		—		(174		)	—			(174		)
Total equity	3,001		3,198		7,300			(10,498		)	3,001
Total liabilities and equity	$	3,032	$	8,673	$	10,552		$	(13,194	)	$	9,063



Condensed Balance Sheets
At September 30, 2016
(In millions)	Ashland Global Holdings Inc. (Parent Guarantor)		Ashland LLC (Issuer)		Other Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	—	$	76	$	1,112		$	—		$	1,188
Accounts receivable	—		18		876			—			894
Inventories	—		42		629			—			671
Other assets	7		16		98			(8		)	113
Total current assets	7		152		2,715			(8		)	2,866
Noncurrent assets
Property, plant and equipment, net	—		246		1,978			—			2,224
Goodwill	—		141		2,260			—			2,401
Intangibles	—		35		1,029			—			1,064
Restricted investments	—		—		292			—			292
Asbestos insurance receivable	—		133		63			—			196
Equity and other unconsolidated investments	—		2		55			—			57
Investment in subsidiaries	3,127		7,597		—			(10,724		)	—
Deferred income taxes	31		97		146			(97		)	177
Intercompany receivables	—		5		2,264			(2,269		)	—
Other assets	—		253		167			—			420
Total noncurrent assets	3,158		8,509		8,254			(13,090		)	6,831
Total assets	$	3,165	$	8,661	$	10,969		$	(13,098	)	$	9,697
LIABILITIES AND EQUITY
Current liabilities
Short-term debt	$	—	$	—	$	170		$	—		$	170
Current portion of long-term debt	—		—		19			—			19
Accounts payable and other accrued liabilities	—		244		791			(8		)	1,027
Total current liabilities	—		244		980			(8		)	1,216
Noncurrent liabilities
Long-term debt	—		2,182		873			—			3,055
Employee benefit obligations	—		44		1,036			—			1,080
Asbestos litigation reserve	—		381		305			—			686
Deferred income taxes	—		—		166			(97		)	69
Intercompany payables	—		2,264		5			(2,269		)	—
Other liabilities	—		220		206			—			426
Total noncurrent liabilities	—		5,091		2,591			(2,366		)	5,316
Equity
Total Ashland stockholders’ equity	3,165		3,326		7,580			(10,724		)	3,347
Noncontrolling interest	—		—		(182		)	—			(182		)
Total equity	3,165		3,326		7,398			(10,724		)	3,165
Total liabilities and equity	$	3,165	$	8,661	$	10,969		$	(13,098	)	$	9,697



Condensed Statements of Cash Flows
Three months ended December 31, 2016
(In millions)	Ashland Global Holdings Inc. (Parent Guarantor)			Ashland LLC (Issuer)			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated
Total cash flows provided (used) by operating
activities from continuing operations	$	—		$	(83	)	$	95		$	—		$	12
Cash flows provided (used) by investing
activities from continuing operations
Additions to property, plant and equipment	—			(3		)	(40		)	—			(43		)
Intercompany dividends	8			8			—			(16		)	—
Net purchases of funds restricted for
specific transactions	—			(2		)	—			—			(2		)
Other investing activities, net	—			4			—			—			4
Total cash flows provided (used) by investing
activities from continuing operations	8			7			(40		)	(16		)	(41		)
Cash flows provided (used) by financing
activities from continuing operations
Repayment of long-term debt	—			(65		)	(253		)	—			(318		)
Premium on long-term debt repayment	—			(1		)	(4		)	—			(5		)
Repayment from short-term debt	—			—			(78		)	—			(78		)
Cash dividends paid	(24		)	—			—			—			(24		)
Distributions to noncontrolling interest	—			—			(2		)	—			(2		)
Intercompany dividends	(8		)	—			(8		)	16			—
Other intercompany activity, net	24			231			(255		)	—			—
Other financing activities, net	—			(7		)	(1		)	—			(8		)
Total cash flows provided (used) by financing
activities from continuing operations	(8		)	158			(601		)	16			(435		)
Cash provided (used) by continuing operations	—			82			(546		)	—			(464		)
Cash used by discontinued operations
Operating cash flows	—			(10		)	(2		)	—			(12		)
Investing cash flows	—			—			—			—			—
Total cash used by discontinued operations	—			(10		)	(2		)	—			(12		)
Effect of currency exchange rate changes on
cash and cash equivalents	—			—			(8		)	—			(8		)
Increase (decrease) in cash and cash equivalents	—			72			(556		)	—			(484		)
Cash and cash equivalents - beginning of year	—			76			1,112			—			1,188
Cash and cash equivalents - end of year	$	—		$	148		$	556		$	—		$	704



Condensed Statements of Cash Flows
Three months ended December 31, 2015
(In millions)	Ashland Global Holdings Inc. (Parent Guarantor)		Ashland LLC (Issuer)			Other Non-Guarantor Subsidiaries			Eliminations		Consolidated
Total cash flows provided (used) by operating
activities from continuing operations	$	—	$	(123	)	$	189		$	—	$	66
Cash flows provided (used) by investing
activities from continuing operations
Additions to property, plant and equipment	—		(2		)	(51		)	—		(53		)
Purchase of operations - net of cash acquired	—		—			(4		)	—		(4		)
Reimbursements from restricted investments	—		7			—			—		7
Other investing activities, net	—		5			1			—		6
Total cash flows provided (used) by investing
activities from continuing operations	—		10			(54		)	—		(44		)
Cash flows provided (used) by financing
activities from continuing operations
Repayment of long-term debt	—		(14		)	—			—		(14		)
Proceeds (repayment) from short-term debt	—		409			(90		)	—		319
Repurchase of common stock	—		(500		)	—			—		(500		)
Cash dividends paid	—		(24		)	—			—		(24		)
Other intercompany activity, net	—		233			(233		)	—		—
Total cash flows provided (used) by financing
activities from continuing operations	—		104			(323		)	—		(219		)
Cash used by continuing operations	—		(9		)	(188		)	—		(197		)
Cash used by discontinued operations
Operating cash flows	—		(5		)	(5		)	—		(10		)
Investing cash flows	—		—			—			—		—
Total cash used by discontinued operations	—		(5		)	(5		)	—		(10		)
Effect of currency exchange rate changes on
cash and cash equivalents	—		—			(11		)	—		(11		)
Decrease in cash and cash equivalents	—		(14		)	(204		)	—		(218		)
Cash and cash equivalents - beginning of year	—		21			1,236			—		1,257
Cash and cash equivalents - end of year	$	—	$	7		$	1,032		$	—	$	1,039

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	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 2016 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. The Condensed 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). The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and Securities and Exchange Commission (SEC) regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. These statements omit certain information and footnote disclosures required for complete annual financial statements and, therefore, should be read in conjunction with Ashland’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016. Results of operations for the period ended December 31, 2016 are not necessarily indicative of the expected results for the remaining quarter in the fiscal year. Ashland is composed of three reportable segments: Ashland Specialty Ingredients (Specialty Ingredients), Ashland Performance Materials (Performance Materials) and Valvoline. As of December 31, 2016, Ashland maintains an approximately 83% controlling interest in Valvoline Inc., which holds the Valvoline reportable segment. See Note B for additional information. The term Valvoline as used herein, depending on context, refers to either Valvoline Inc. or Valvoline as a reportable segment of Ashland.
Use of Estimates, Risk and Uncertainties	Use of estimates, risks and uncertainties The preparation of Ashland’s Condensed 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), employee benefit obligations, 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.
New Accounting Standards	New accounting standards A description of new U.S. GAAP accounting standards issued or adopted during the current year is required in interim financial reporting. A detailed listing of new accounting standards relevant to Ashland is included in the Annual Report on Form 10-K for the fiscal year ended September 30, 2016. The following standard relevant to Ashland was adopted in the current period. In April 2015, the FASB issued accounting guidance to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. Cloud computing arrangements represent the delivery of hosted services over the internet which includes software, platforms, infrastructure and other hosting arrangements. Under the guidance, customers that gain access to software in a cloud computing arrangement account for the software as internal-use software only if the arrangement includes a software license. This guidance became effective prospectively for Ashland on October 1, 2016.

FAIR VALUE MEASUREMENTS (Policies)	3 Months Ended
FAIR VALUE MEASUREMENTS (Policies)	Dec. 31, 2016
Fair Value Disclosures [Abstract]
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.
Marketable Securities, Available-for-sale Securities, Policy	During 2015, Ashland diversified the restricted investments received from the January 2015 asbestos insurance settlement into primarily equity and corporate bond mutual funds that are designated as available-for-sale securities, classified as Level 1 measurements within the fair value hierarchy. 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 Condensed Consolidated Balance Sheets as a component of accumulated other comprehensive income (AOCI). Investment 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.
Marketable Securities, Trading Securities, Policy	Gains and losses related to deferred compensation investments are immediately recognized within the Statements of Consolidated Comprehensive Income.
Derivatives, Methods of Accounting, Derivatives Not Designated or Qualifying as Hedges, Policy	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.
Derivatives, Methods of Accounting, Hedging Derivatives, Policy	Since 2014, Ashland has entered into foreign currency contracts in order to manage the foreign currency exposure of the net investment in certain foreign operations. These foreign currency contracts were primarily the result of certain proceeds from the sale of Water Technologies being received in non-U.S. denominated currencies during 2014 and ongoing management of the volatility in foreign currency exchange rates. Ashland designated the foreign currency contracts as hedges of net investments in its foreign subsidiaries. As a result, Ashland records these hedges at fair value using forward rates, with the effective portion of the gain or loss reported as a component of the cumulative translation adjustment within AOCI and subsequently recognized in the Statements of Consolidated Comprehensive Income when the hedged item affects net income. During the three months ended December 31, 2016 and 2015, these foreign currency contracts were settled and for certain hedges Ashland entered into new foreign currency contracts designated as hedges of net investments in foreign subsidiaries. These settlements resulted in net gains, recorded within the cumulative translation adjustment within AOCI, of $4 million and $7 million for the three months ended December 31, 2016 and 2015, respectively. As of December 31, 2016 and September 30, 2016, the total notional value of foreign currency contracts equaled $69 million and $94 million, respectively. The fair value of Ashland's net investment hedge assets and liabilities are calculated using forward rates. Accordingly, these instruments are deemed to be Level 2 measurements within the fair value hierarchy. Counterparties to these net investment hedges are highly rated financial institutions which Ashland believes carry only a nominal risk of nonperformance.

INVENTORIES (Policies)	3 Months Ended
INVENTORIES (Policies)	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventory Policy	Inventories are carried at the lower of cost or market. Inventories are primarily stated at cost using the weighted-average cost method. In addition, certain chemicals, plastics and lubricants are valued at cost using the last-in, first-out (LIFO) method.

Disclosure of accounting policy for major classes of inventories, bases of stating inventories (for example, lower of cost or market), methods by which amounts are added and removed from inventory classes (for example, FIFO, LIFO, or average cost), loss recognition on impairment of inventories, and situations in which inventories are stated above cost. If inventory is carried at cost, this disclosure includes the nature of the cost elements included in inventory.

Discontinued Operations and Disposal Groups [Abstract]

GOODWILL AND OTHER INTANGIBLES (Policies)	3 Months Ended
GOODWILL AND OTHER INTANGIBLES (Policies)	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Goodwill, Policy	Ashland reviews goodwill and indefinite-lived intangible assets 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. For its July 1, 2016 assessment, Ashland determined that its reporting units for the allocation of goodwill include the Specialty Ingredients reportable segment, the Composites and Intermediates/Solvents reporting units within the Performance Materials reportable segment, and the Core North America, Quick Lubes and International reporting units within the Valvoline reportable segment. 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 for Intermediates/Solvents during the fourth quarter of 2016.
Finite-Lived Intangible Asset 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 20 years, and customer relationships over 3 to 24 years.
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy	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.

LITIGATION, CLAIMS AND CONTINGENCIES (Policies)	3 Months Ended
LITIGATION, CLAIMS AND CONTINGENCIES (Policies)	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Policy	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 Hamilton, Rabinovitz & Associates, Inc. (HR&A). The methodology used by HR&A 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, HR&A 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.
Environmental Cost Policy	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.

EARNINGS PER SHARE (Policies)	3 Months Ended
EARNINGS PER SHARE (Policies)	Dec. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share Policy	The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Stock appreciation rights (SARs), stock options and warrants available to purchase shares outstanding for each reporting period whose grant price was greater than the average market price of Ashland Common Stock for each applicable period were not included in the computation of income from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was approximately 0.9 million and 1.2 million at December 31, 2016 and 2015, respectively. Earnings per share is reported under the treasury stock method.

STOCK INCENTIVE PLANS (Policies)	3 Months Ended
STOCK INCENTIVE PLANS (Policies)	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Incentive Plan Policy	Ashland has stock incentive plans under which key employees or directors are granted stock-settled 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 within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income.

DISCONTINUED OPERATIONS (Tables)

3 Months Ended

Dec. 31, 2016

Components of Amounts in the Statements of Consolidated Income Related To Discontinued Operations



	Three months ended
	December 31
(In millions)	2016		2015
Loss on disposal of discontinued operations (net of tax)
Water Technologies	$	—	$	(2	)
Total loss from discontinued operations (net of tax)	$	—	$	(2	)

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.

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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Fair Value of Financial Instruments

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

The following table summarizes financial instruments subject to recurring fair value measurements as of December 31, 2016.



(In millions)	Carrying value		Total fair value		Quoted prices in active markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Assets
Cash and cash equivalents	$	704	$	704	$	704	$	—	$	—
Restricted investments (a)	327		327		327		—		—
Deferred compensation investments (b)	184		184		34		150		—
Investments of captive insurance company (b)	2		2		2		—		—
Foreign currency derivatives	17		17		—		17		—
Total assets at fair value	$	1,234	$	1,234	$	1,067	$	167	$	—

Liabilities
Foreign currency derivatives	$	12	$	12	$	—	$	12	$	—


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


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

The following table summarizes financial asset instruments subject to recurring fair value measurements as of September 30, 2016.



(In millions)	Carrying value		Total fair value		Quoted prices in active markets for identical assets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Assets
Cash and cash equivalents	$	1,188	$	1,188	$	1,188	$	—	$	—
Restricted investments (a)	322		322		322		—		—
Deferred compensation investments (b)	185		185		35		150		—
Investments of captive insurance company (b)	4		4		4		—		—
Foreign currency derivatives	3		3		—		3		—
Total assets at fair value	$	1,702	$	1,702	$	1,549	$	153	$	—

Liabilities
Foreign currency derivatives	$	5	$	5	$	—	$	5	$	—


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


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

Available-for-sale Securities

The following table provides a summary of the available-for-sale securities portfolio as of December 31, 2016 and September 30, 2016:



	December 31			September 30
(In millions)	2016			2016
Original cost	$	335		$	335
Accumulated investment income, settlement funds,
and disbursements, net	(24		)	(3		)
Adjusted cost (a)	311			332
Investment income (b)	3			8
Unrealized gain	13			11
Unrealized loss	(2		)	—
Settlement funds	2			4
Disbursements	—			(33		)
Fair value	$	327		$	322


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


(b)	Investment income for the demand deposit 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 December 31, 2016 and September 30, 2016:



			Gross		Gross
(In millions)	Adjusted Cost		Unrealized Gain		Unrealized Loss			Fair Value
As of December 31, 2016
Demand Deposit	$	11	$	—	$	—		$	11
Equity Mutual Fund	185		13		—			198
Corporate bond Mutual Fund	120		—		(2		)	118
Fair value	$	316	$	13	$	(2	)	$	327

As of September 30, 2016
Demand Deposit	$	6	$	—	$	—		$	6
Equity Mutual Fund	185		8		—			193
Corporate bond Mutual Fund	120		3		—			123
Fair value	$	311	$	11	$	—		$	322

Investment Income

The following table presents the investment income and disbursements related to the investments within the portfolio for the three months ended December 31, 2016 and 2015.



	Three months ended
	December 31
(In millions)	2016		2015
Investment income	$	3	$	2
Disbursements	—		(7		)

Summary of gains (losses) on foreign currency derivatives

The following table summarizes the gains and losses recognized during the three months ended December 31, 2016 and 2015 within the Statements of Consolidated Comprehensive Income.



	Three months ended
	December 31
(In millions)	2016		2015
Foreign currency derivative gain	$	2	$	3

Summary of fair values on foreign currency derivatives



	December 31		September 30
(In millions)	2016		2016
Foreign currency derivative assets	$	15	$	3
Notional contract values	678		333

Foreign currency derivative liabilities	$	12	$	4
Notional contract values	629		530

Fair value of the outstanding net investment hedges

The following table summarizes the fair value of the outstanding net investment hedge instruments as of December 31, 2016 and September 30, 2016.



		December 31		September 30
(In millions)	Consolidated balance sheet caption	2016		2016
Net investment hedge assets (a)	Accounts receivable	$	2	$	—
Net investment hedge liabilities (a)	Accrued expenses and other liabilities	—		1


(a)	Fair value of $0 denotes a value less than $1 million.

Summary of unrealized gain (loss) on net investment hedges



	Three months ended
	December 31
(In millions)	2016			2015
Change in unrealized gain in AOCI (a)	$	2		$	—
Tax impact of change in unrealized gain in AOCI (a)	(1		)	—


(a)	$0 denotes a value less than $1 million.

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLES (Tables)

3 Months Ended

Dec. 31, 2016

Goodwill by Segment

The following is a progression of goodwill by reportable segment for the three months ended December 31, 2016.



	Specialty			Performance
(In millions)	Ingredients			Materials			(a)	Valvoline		(b)	Total
Balance as of September 30, 2016	$	1,991		$	147			$	263		$	2,401
Acquisitions (c)	—			—				4			4
Currency translation adjustment	(54		)	(3		)		—			(57		)
Balance as of December 31, 2016	$	1,937		$	144			$	267		$	2,348


(a)	As of December 31, 2016, goodwill was completely attributable to the Composites reporting unit due to the full impairment of the goodwill for the Intermediates/Solvents reporting unit during the fourth quarter of 2016.


(b)	As of December 31, 2016, goodwill consisted of $89 million for the Core North America reporting unit, $139 million for the Quick Lubes reporting unit and $39 million for the International reporting unit.


(c)	Relates to Valvoline Instant Oil Change^SM center acquisitions during the three months ended December 31, 2016.

Intangible Assets

Intangible assets were comprised of the following as of December 31, 2016 and September 30, 2016.



	December 31, 2016
	Gross					Net
	carrying		Accumulated			carrying
(In millions)	amount		amortization			amount
Definite-lived intangible assets
Trademarks and trade names	$	42	$	(20	)	$	22
Intellectual property	659		(284		)	375
Customer relationships	530		(202		)	328
Total definite-lived intangible assets	1,231		(506		)	725

Indefinite-lived intangible assets
Trademarks and trade names	301		—			301
Total intangible assets	$	1,532	$	(506	)	$	1,026



	September 30, 2016
	Gross					Net
	carrying		Accumulated			carrying
(In millions)	amount		amortization			amount
Definite-lived intangible assets
Trademarks and trade names	$	42	$	(19	)	$	23
Intellectual property	667		(273		)	394
Customer relationships	546		(200		)	346
Total definite-lived intangible assets	1,255		(492		)	763

Indefinite-lived intangible assets
Trademarks and trade names	301		—			301
Total intangible assets	$	1,556	$	(492	)	$	1,064

DEBT (Tables)

3 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Summary of Debt

The following table summarizes Ashland’s current and long-term debt as of the dates reported in the Condensed Consolidated Balance Sheets.



	December 31			September 30
(In millions)	2016			2016
4.750% notes, due 2022	$	1,085		$	1,121
3.875% notes, due 2018	671			700
6.875% notes, due 2043	376			376
5.500% notes, due 2024 (a)	375			375
Term Loan, due 2021 (a)	296			375
2017 accounts receivable securitization facility (a)	75			—
6.50% junior subordinated notes, due 2029	50			140
Other international loans, interest at a weighted-
average rate of 4.9% at December 31, 2016 (4.8% to 5.0%)	17			20
Medium-term notes, due 2019, interest of 9.4% at December 31, 2016	5			5
Term Loan, due 2017	—			150
Other (b)	(18		)	(18		)
Total debt	2,932			3,244
Short-term debt	(92		)	(170		)
Current portion of long-term debt	(15		)	(19		)
Long-term debt (less current portion and debt issuance cost discounts)	$	2,825		$	3,055


(a)	These debt instruments were issued by Valvoline during 2016 and 2017 in connection with the separation process.


(b)	Other includes $29 million of debt issuance cost discounts as of December 31, 2016 and September 30, 2016

EMPLOYEE BENEFIT PLANS (Tables)

3 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

The following table details the components of pension and other postretirement benefit costs.



							Other postretirement
	Pension benefits						benefits
(In millions)	2016			2015			2016			2015
Three months ended December 31
Service cost (a)	$	3		$	6		$	—		$	—
Interest cost	23			31			1			2
Expected return on plan assets	(39		)	(47		)	—			—
Amortization of prior service credit (a)	—			(1		)	(3		)	(4		)
Actuarial gain	—			—			(10		)	—
	$	(13	)	$	(11	)	$	(12	)	$	(2	)


(a)	Activity of $0 denote values less than $1 million.

LITIGATION, CLAIMS AND CONTINGENCIES (Tables)

3 Months Ended

Dec. 31, 2016

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 the three months ended December 31, 2016 and 2015.



	Three months ended
	December 31
(In millions)	2016			2015
Reserve - beginning of period	$	177		$	186
Disbursements	(7		)	(10		)
Revised obligation estimates and accretion	4			4
Reserve - end of period	$	174		$	180

Components of Environmental Remediation Expense



	Three months ended
	December 31
(In millions)	2016		2015
Environmental expense	$	4	$	4
Legal expense	2		2
Total expense	6		6

Insurance receivable (a)	—		—
Total expense, net of receivable activity	$	6	$	6


(a)	Activity of $0 denotes value less than $1 million.

Ashland [Member]

Loss Contingencies [Line Items]

Summary of Asbestos Claims Activity

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



	Three months ended
	December 31				Years ended September 30
(In thousands)	2016		2015		2016		2015		2014
Open claims - beginning of period	57		60		60		65		65
New claims filed	—		1		2		2		2
Claims settled	—		—		—		—		(1	)
Claims dismissed	(1	)	(2	)	(5	)	(7	)	(1	)
Open claims - end of period	56		59		57		60		65

Progression of Activity in the Asbestos Reserve Accounts

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



	Three months ended
	December 31						Years ended September 30
(In millions)	2016			2015			2016			2015			2014
Asbestos reserve - beginning of period	$	415		$	409		$	409		$	438		$	463
Reserve adjustment	—			—			37			—			4
Amounts paid	(9		)	(8		)	(31		)	(29		)	(29		)
Asbestos reserve - end of period	$	406		$	401		$	415		$	409		$	438

Progression of Insurance Receivable

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



	Three months ended
	December 31						Years ended September 30
(In millions)	2016			2015			2016			2015			2014
Insurance receivable - beginning of period	$	151		$	150		$	150		$	402		$	408
Receivable adjustment	—			—			16			(3		)	22
Insurance settlement	—			—			(4		)	(227		)	—
Amounts collected	(2		)	(5		)	(11		)	(22		)	(28		)
Insurance receivable - end of period	$	149		$	145		$	151		$	150		$	402

Hercules [Member]

Loss Contingencies [Line Items]

Summary of Asbestos Claims Activity

A summary of Hercules’ asbestos claims activity follows.



	Three months ended
	December 31		Years ended September 30
(In thousands)	2016	2015	2016		2015		2014
Open claims - beginning of period	15	20	20		21		21
New claims filed	—	—	1		1		1
Claims dismissed	—	—	(6	)	(2	)	(1	)
Open claims - end of period	15	20	15		20		21

Progression of Activity in the Asbestos Reserve Accounts

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



	Three months ended
	December 31						Years ended September 30
(In millions)	2016			2015			2016			2015			2014
Asbestos reserve - beginning of period	$	321		$	311		$	311		$	329		$	342
Reserve adjustment	—			—			25			4			10
Amounts paid	(3		)	(5		)	(15		)	(22		)	(23		)
Asbestos reserve - end of period	$	318		$	306		$	321		$	311		$	329

Progression of Insurance Receivable

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



	Three months ended
	December 31				Years ended September 30
(In millions)	2016		2015		2016		2015			2014
Insurance receivable - beginning of period	$	63	$	56	$	56	$	77		$	75
Receivable adjustment	—		—		7		1			3
Insurance settlement	—		—		—		(22		)	—
Amounts collected	—		—		—		—			(1		)
Insurance receivable - end of period	$	63	$	56	$	63	$	56		$	77

EARNINGS PER SHARE (Tables)

3 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings per Share



	Three months ended
	December 31
(In millions except per share data)	2016			2015
Numerator
Numerator for basic and diluted EPS –
Income from continuing operations	$	10		$	91
Less: Income from continuing operations attributable to noncontrolling interest	11			—
Income (loss) from continuing operations attributable to Ashland, net of tax	$	(1	)	$	91
Denominator
Denominator for basic EPS – Weighted-average
common shares outstanding	62			65
Share-based awards convertible to common shares (a)	—			1
Denominator for diluted EPS – Adjusted weighted-
average shares and assumed conversions	62			66

EPS from continuing operations attributable to Ashland
Basic	$	(0.01	)	$	1.39
Diluted	(0.01		)	1.38


(a)	As a result of the loss from continuing operations attributable to Ashland during the three months ended December 31, 2016, the effect of the share-based awards convertible to common shares would be antidilutive. As such, they have been excluded from the diluted EPS calculation.

EQUITY ITEMS (Tables)

3 Months Ended

Dec. 31, 2016

Equity [Abstract]

Schedule of Comprehensive Income (Loss) [Table Text Block]

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



	2016								2015
												Tax
	Before			Tax		Net of			Before			(expense)			Net of
(In millions)	tax			benefit		tax			tax			benefit			tax
Three months ended December 31
Other comprehensive income (loss)
Unrealized translation loss	$	(150	)	$	4	$	(146	)	$	(63	)	$	2		$	(61	)
Pension and postretirement obligation adjustment:
Amortization of unrecognized prior service
credits included in net income (a)	(3		)	2		(1		)	(5		)	2			(3		)
Unrealized gain on available-for-sale securities	—			—		—			9			(3		)	6
Total other comprehensive loss	$	(153	)	$	6	$	(147	)	$	(59	)	$	1		$	(58	)


(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 [Table Text Block]

The captions on the Statements of Consolidated Comprehensive Income impacted by the amortization of unrecognized prior service credits for pension and other postretirement plans are disclosed within. See Note J for more information.



	Three months ended
	December 31
(In millions)	2016			2015
Cost of sales	$	(1	)	$	(2	)
Selling, general and administrative expense	(2		)	(3		)
Total amortization of unrecognized prior service credits	$	(3	)	$	(5	)

REPORTABLE SEGMENT INFORMATION (Tables)

3 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Reportable Segment Information

The following table presents various financial information for each reportable segment for the three months ended December 31, 2016 and 2015.



	Three months ended
	December 31
(In millions - unaudited)	2016			2015
SALES
Specialty Ingredients	$	482		$	476
Performance Materials	222			231
Valvoline	489			456
	$	1,193		$	1,163
OPERATING INCOME (LOSS)
Specialty Ingredients	$	40		$	38
Performance Materials	8			24
Valvoline	99			92
Unallocated and other	(10		)	(3		)
	$	137		$	151

SUPPLEMENTAL GUARANTOR INFORMATION (Tables)

3 Months Ended

Dec. 31, 2016

Supplemental Guarantor Information [Abstract]

Condensed Statements of Comprehensive Income



Condensed Statements of Comprehensive Income
Three months ended December 31, 2016
(In millions)	Ashland Global Holdings Inc. (Parent Guarantor)			Ashland LLC (Issuer)			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	137		$	1,065		$	(9	)	$	1,193
Cost of sales	—			96			719			(8		)	807
Gross profit	—			41			346			(1		)	386

Selling, general and administrative expense	8			32			199			—			239
Research and development expense	—			3			20			—			23
Equity and other income (loss)	—			(15		)	28			—			13
Operating income (loss)	(8		)	(9		)	155			(1		)	137

Net interest and other financing expense	—			34			98			—			132
Net loss on divestitures	—			(1		)	—			—			(1		)
Income (loss) from continuing operations
before income taxes	(8		)	(44		)	57			(1		)	4
Income tax expense (benefit)	—			5			(11		)	—			(6		)
Equity in net income (loss) of subsidiaries	7			1			—			(8		)	—
Net income (loss)	(1		)	(48		)	68			(9		)	10
Net income attributable to noncontrolling interests	—			—			11			—			11
Net income (loss) attributable to Ashland	$	(1	)	$	(48	)	$	57		$	(9	)	$	(1	)

Comprehensive income (loss)	(137		)	(41		)	(86		)	127			(137		)
Comprehensive income attributable
to noncontrolling interests	10			—			10			(10		)	10
Comprehensive income (loss) attributable
to Ashland	$	(147	)	$	(41	)	$	(96	)	$	137		$	(147	)



Condensed Statements of Comprehensive Income
Three months ended December 31, 2015
(In millions)	Ashland Global Holdings Inc. (Parent Guarantor)		Ashland LLC (Issuer)			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—	$	156		$	1,014		$	(7	)	$	1,163
Cost of sales	—		102			675			(6		)	771
Gross profit	—		54			339			(1		)	392

Selling, general and administrative expense	—		32			192			—			224
Research and development expense	—		3			22			—			25
Equity and other income (loss)	—		(2		)	10			—			8
Operating income (loss)	—		17			135			(1		)	151

Net interest and other financing expense	—		38			4			—			42
Net gain on divestitures	—		1			1			—			2
Income (loss) from continuing operations
before income taxes	—		(20		)	132			(1		)	111
Income tax expense (benefit)	—		(27		)	47			—			20
Equity in net income (loss) of subsidiaries	89		95			—			(184		)	—
Income (loss) from continuing operations	89		102			85			(185		)	91
Loss from discontinued operations (net of tax)	—		(1		)	(1		)	—			(2		)
Net income (loss)	$	89	$	101		$	84		$	(185	)	$	89

Comprehensive income (loss)	$	31	$	100		$	27		$	(127	)	$	31

Condensed Statements of Cash Flows



Condensed Statements of Cash Flows
Three months ended December 31, 2016
(In millions)	Ashland Global Holdings Inc. (Parent Guarantor)			Ashland LLC (Issuer)			Other Non-Guarantor Subsidiaries			Eliminations			Consolidated
Total cash flows provided (used) by operating
activities from continuing operations	$	—		$	(83	)	$	95		$	—		$	12
Cash flows provided (used) by investing
activities from continuing operations
Additions to property, plant and equipment	—			(3		)	(40		)	—			(43		)
Intercompany dividends	8			8			—			(16		)	—
Net purchases of funds restricted for
specific transactions	—			(2		)	—			—			(2		)
Other investing activities, net	—			4			—			—			4
Total cash flows provided (used) by investing
activities from continuing operations	8			7			(40		)	(16		)	(41		)
Cash flows provided (used) by financing
activities from continuing operations
Repayment of long-term debt	—			(65		)	(253		)	—			(318		)
Premium on long-term debt repayment	—			(1		)	(4		)	—			(5		)
Repayment from short-term debt	—			—			(78		)	—			(78		)
Cash dividends paid	(24		)	—			—			—			(24		)
Distributions to noncontrolling interest	—			—			(2		)	—			(2		)
Intercompany dividends	(8		)	—			(8		)	16			—
Other intercompany activity, net	24			231			(255		)	—			—
Other financing activities, net	—			(7		)	(1		)	—			(8		)
Total cash flows provided (used) by financing
activities from continuing operations	(8		)	158			(601		)	16			(435		)
Cash provided (used) by continuing operations	—			82			(546		)	—			(464		)
Cash used by discontinued operations
Operating cash flows	—			(10		)	(2		)	—			(12		)
Investing cash flows	—			—			—			—			—
Total cash used by discontinued operations	—			(10		)	(2		)	—			(12		)
Effect of currency exchange rate changes on
cash and cash equivalents	—			—			(8		)	—			(8		)
Increase (decrease) in cash and cash equivalents	—			72			(556		)	—			(484		)
Cash and cash equivalents - beginning of year	—			76			1,112			—			1,188
Cash and cash equivalents - end of year	$	—		$	148		$	556		$	—		$	704



Condensed Statements of Cash Flows
Three months ended December 31, 2015
(In millions)	Ashland Global Holdings Inc. (Parent Guarantor)		Ashland LLC (Issuer)			Other Non-Guarantor Subsidiaries			Eliminations		Consolidated
Total cash flows provided (used) by operating
activities from continuing operations	$	—	$	(123	)	$	189		$	—	$	66
Cash flows provided (used) by investing
activities from continuing operations
Additions to property, plant and equipment	—		(2		)	(51		)	—		(53		)
Purchase of operations - net of cash acquired	—		—			(4		)	—		(4		)
Reimbursements from restricted investments	—		7			—			—		7
Other investing activities, net	—		5			1			—		6
Total cash flows provided (used) by investing
activities from continuing operations	—		10			(54		)	—		(44		)
Cash flows provided (used) by financing
activities from continuing operations
Repayment of long-term debt	—		(14		)	—			—		(14		)
Proceeds (repayment) from short-term debt	—		409			(90		)	—		319
Repurchase of common stock	—		(500		)	—			—		(500		)
Cash dividends paid	—		(24		)	—			—		(24		)
Other intercompany activity, net	—		233			(233		)	—		—
Total cash flows provided (used) by financing
activities from continuing operations	—		104			(323		)	—		(219		)
Cash used by continuing operations	—		(9		)	(188		)	—		(197		)
Cash used by discontinued operations
Operating cash flows	—		(5		)	(5		)	—		(10		)
Investing cash flows	—		—			—			—		—
Total cash used by discontinued operations	—		(5		)	(5		)	—		(10		)
Effect of currency exchange rate changes on
cash and cash equivalents	—		—			(11		)	—		(11		)
Decrease in cash and cash equivalents	—		(14		)	(204		)	—		(218		)
Cash and cash equivalents - beginning of year	—		21			1,236			—		1,257
Cash and cash equivalents - end of year	$	—	$	7		$	1,032		$	—	$	1,039

Condensed Balance Sheets



Condensed Balance Sheets
At December 31, 2016
(In millions)	Ashland Global Holdings Inc. (Parent Guarantor)		Ashland LLC (Issuer)		Other Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	—	$	148	$	556		$	—		$	704
Accounts receivable	—		47		811			—			858
Inventories	—		45		621			—			666
Other assets	6		10		100			(10		)	106
Total current assets	6		250		2,088			(10		)	2,334
Noncurrent assets
Property, plant and equipment, net	—		241		1,945			—			2,186
Goodwill	—		141		2,207			—			2,348
Intangibles	—		35		991			—			1,026
Restricted investments	—		—		297			—			297
Asbestos insurance receivable	—		131		63			—			194
Equity and other unconsolidated investments	—		2		58			—			60
Investment in subsidiaries	2,995		7,503		—			(10,498		)	—
Deferred income taxes	31		97		199			(128		)	199
Intercompany receivables	—		19		2,539			(2,558		)	—
Other assets	—		254		165			—			419
Total noncurrent assets	3,026		8,423		8,464			(13,184		)	6,729
Total assets	$	3,032	$	8,673	$	10,552		$	(13,194	)	$	9,063
LIABILITIES AND EQUITY
Current liabilities
Short-term debt	$	—	$	—	$	92		$	—		$	92
Current portion of long-term debt	—		—		15			—			15
Accounts payable and other accrued liabilities	—		222		697			(10		)	909
Total current liabilities	—		222		804			(10		)	1,016
Noncurrent liabilities
Long-term debt	—		2,116		709			—			2,825
Employee benefit obligations	—		38		1,002			—			1,040
Asbestos litigation reserve	—		371		303			—			674
Deferred income taxes	—		—		197			(128		)	69
Intercompany payables	31		2,508		19			(2,558		)	—
Other liabilities	—		220		218			—			438
Total noncurrent liabilities	31		5,253		2,448			(2,686		)	5,046
Equity
Total Ashland stockholders’ equity	3,001		3,198		7,474			(10,498		)	3,175
Noncontrolling interests	—		—		(174		)	—			(174		)
Total equity	3,001		3,198		7,300			(10,498		)	3,001
Total liabilities and equity	$	3,032	$	8,673	$	10,552		$	(13,194	)	$	9,063



Condensed Balance Sheets
At September 30, 2016
(In millions)	Ashland Global Holdings Inc. (Parent Guarantor)		Ashland LLC (Issuer)		Other Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets
Cash and cash equivalents	$	—	$	76	$	1,112		$	—		$	1,188
Accounts receivable	—		18		876			—			894
Inventories	—		42		629			—			671
Other assets	7		16		98			(8		)	113
Total current assets	7		152		2,715			(8		)	2,866
Noncurrent assets
Property, plant and equipment, net	—		246		1,978			—			2,224
Goodwill	—		141		2,260			—			2,401
Intangibles	—		35		1,029			—			1,064
Restricted investments	—		—		292			—			292
Asbestos insurance receivable	—		133		63			—			196
Equity and other unconsolidated investments	—		2		55			—			57
Investment in subsidiaries	3,127		7,597		—			(10,724		)	—
Deferred income taxes	31		97		146			(97		)	177
Intercompany receivables	—		5		2,264			(2,269		)	—
Other assets	—		253		167			—			420
Total noncurrent assets	3,158		8,509		8,254			(13,090		)	6,831
Total assets	$	3,165	$	8,661	$	10,969		$	(13,098	)	$	9,697
LIABILITIES AND EQUITY
Current liabilities
Short-term debt	$	—	$	—	$	170		$	—		$	170
Current portion of long-term debt	—		—		19			—			19
Accounts payable and other accrued liabilities	—		244		791			(8		)	1,027
Total current liabilities	—		244		980			(8		)	1,216
Noncurrent liabilities
Long-term debt	—		2,182		873			—			3,055
Employee benefit obligations	—		44		1,036			—			1,080
Asbestos litigation reserve	—		381		305			—			686
Deferred income taxes	—		—		166			(97		)	69
Intercompany payables	—		2,264		5			(2,269		)	—
Other liabilities	—		220		206			—			426
Total noncurrent liabilities	—		5,091		2,591			(2,366		)	5,316
Equity
Total Ashland stockholders’ equity	3,165		3,326		7,580			(10,724		)	3,347
Noncontrolling interest	—		—		(182		)	—			(182		)
Total equity	3,165		3,326		7,398			(10,724		)	3,165
Total liabilities and equity	$	3,165	$	8,661	$	10,969		$	(13,098	)	$	9,697

VALVOLINE IPO (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Subsidiary, Sale of Stock [Line Items]
Valvoline Shares Owned by Ashland	170
Sale of Stock, Percentage of Ownership after Transaction	83.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	17.00%
Noncontrolling interest	$ (174)		$ (182)
Net assets (liabilities) transferred to Valvoline Inc.			15
Selling, General and Administrative Expenses [Member]
Subsidiary, Sale of Stock [Line Items]
Separation costs	$ 28	$ 6
Valvoline [Member]
Subsidiary, Sale of Stock [Line Items]
Defined Benefit Plan, Funded Status of Plan			$ 900

VALVOLINE Acquisitions (Details)
number in Millions, $ in Millions

3 Months Ended

12 Months Ended

Mar. 31, 2017

USD ($)

site

Dec. 31, 2016

USD ($)

Dec. 31, 2015

USD ($)

Sep. 30, 2016

USD ($)

site

Business Acquisition [Line Items]

Payments to Acquire Businesses, Net of Cash Acquired

$ 0

$ 4

Goodwill, Acquired During Period

^[1]

$ 4

Oil Can Henry's [Member]

Business Acquisition [Line Items]

Number of Stores | site

Number of vehicles serviced annually.

Number of company-owned stores | site

Number of franchise locations | site

Purchase of Business, Transaction Value

$ 72

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt

Payments to Acquire Businesses, Net of Cash Acquired

Goodwill, Acquired During Period

$ 83

Subsequent Event [Member] | Time-It Lube [Member]

Business Acquisition [Line Items]

Number of Stores | site

Purchase of Business, Transaction Value

$ 48

[1]	Relates to Valvoline Instant Oil ChangeSM center acquisitions during the three months ended December 31, 2016.

DIVESTITURES (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
DIVESTITURES (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (Loss) on Disposal	$ (1)	$ 2
Specialty Ingredients [Member] \| Specialty Ingredients Joint Venture [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (Loss) on Disposal			$ (12)

DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions	3 Months Ended
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015
Discontinued Operations [Line Items]
Loss from discontinued operations (net of tax)	$ 0	$ (2)
Water Technologies [Member]
Discontinued Operations [Line Items]
Loss on disposal of discontinued operations (net of tax)	$ 0	$ (2)

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.

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.12)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721675-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.14)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=51716988&loc=d3e1012-107759

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3B
-URI http://asc.fasb.org/extlink&oid=51716988&loc=SL51721525-107759

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=51716988&loc=SL51721523-107759

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=51716988&loc=d3e957-107759

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1361-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 13
-Article 7

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 15
-Article 5

Restricted Investments, Current

FAIR VALUE MEASUREMENTS (Recurring Basis) (Details) - USD ($)
$ in Millions

Dec. 31, 2016

Sep. 30, 2016

ASSETS

$ 30

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

ASSETS

704

1,188

^[1]

327

322

^[2]

184

185

^[2]

1,234

1,702

Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]

ASSETS

704

1,188

^[1]

327

322

^[2]

184

185

^[2]

1,234

1,702

Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]

ASSETS

704

1,188

^[1]

327

322

^[2]

^[2]

1,067

1,549

Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]

ASSETS

^[1]

^[2]

150

^[2]

167

153

Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [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 Condensed Consolidated Balance Sheets.
[2]	Included in other noncurrent assets in the Condensed Consolidated Balance Sheets.

FAIR VALUE MEASUREMENTS (Available-for-sale Securities) (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Sep. 30, 2016

Sep. 30, 2015

Litigation Settlement, Amount

$ 398

Increase (Decrease) in Restricted Cash

$ 335

Restricted Investments, Current

$ 30

Original cost

335

Accumulated investment income and disbursements

(24)

(3)

Marketable Securities, Realized Gain (Loss)

^[1]

311

332

Investment income

^[2]

$ 2

^[2]

(2)

(33)

327

322

Other than Temporary Impairment Losses, Investments, Available-for-sale Securities

Demand Deposits [Member]

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

Investment income

Disbursements

$ (7)

Demand Deposit Accounts

Equity mutual fund [Member]

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

Equity mutual fund, unrealized gain

185

Equity mutual fund, Fair value

198

193

Corporate bond mutual fund [Member]

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

Corporate bond mutual fund, unrealized loss

120

(2)

Corporate bond mutual fund, unrealized gain

Corporate bond mutual fund, Fair value

118

123

Available-for-sale Securities [Member]

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

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

316

311

Unrealized gain

Unrealized loss

(2)

Total, fair value

$ 327

$ 322

[1]	{F\|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjVkNWExZjRhZmIwYzRhYzk4YmE0YWYzYmVmZGUzYWM5fFRleHRTZWxlY3Rpb246NjZBNkRFMTI1NDdENTM1Qzg5MkE5NTNGQ0M0MUUzRjcM}
[2]	{F\|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjVkNWExZjRhZmIwYzRhYzk4YmE0YWYzYmVmZGUzYWM5fFRleHRTZWxlY3Rpb246RUNFQTAwNjk3QTZDNTBCNkIwMDk1NzlGNzNENEIyRTMM}

FAIR VALUE MEASUREMENTS (Currency Hedges) (Details) - USD ($)
$ in Millions

3 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Sep. 30, 2016

Settlement net gains

$ (150)

$ (63)

Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Foreign currency derivative gain

Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accounts Receivable [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Foreign currency derivative assets

$ 3

Notional amounts, foreign currency derivatives

678

333

Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accrued Expenses and Other Liabilities [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Foreign currency derivative liabilities

Notional amounts, foreign currency derivatives

629

530

Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Notional amounts, foreign currency derivatives

Settlement net gains

Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax

Loss on Fair Value Hedge Ineffectiveness

Change in unrealized gain in AOCI

Tax impact of change in unrealized gain in AOCI

(1)

$ 0

Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accounts Receivable [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Foreign currency derivative assets

^[1]

Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accrued Expenses and Other Liabilities [Member]

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Foreign currency derivative liabilities

$ 0

^[1]

$ 1

[1]	Fair value of $0 denotes a value less than $1 million.

FAIR VALUE MEASUREMENTS (Other Financial Instruments) (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Other financial instruments [Abstract]
Long-term Debt, Carrying Value	$ 2,869	$ 3,103
Long-term Debt, Fair Value	$ 3,020	$ 3,336

INVENTORIES (Details) - USD ($) $ in Millions	Dec. 31, 2016	Sep. 30, 2016
Inventory Disclosure [Abstract]
Finished products	$ 512	$ 516
Raw materials, supplies and work in process	182	184
LIFO reserve	(28)	(29)
Inventory, Net	$ 666	$ 671

GOODWILL AND OTHER INTANGIBLES (Goodwill) (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Goodwill [Line Items]

Goodwill impairment

$ 171

$ 2,401

^[1]

(57)

Specialty Ingredients [Member]

2,348

2,401

1,991

(54)

Performance Materials [Member]

1,937

1,991

147

(3)

144

^[2]

147

Valvoline [Member]

263

^[1]

Valvoline Core North America Reporting Unit [Member]

267

^[3]

$ 263

Valvoline Quick Lubes [Member]

Valvoline International Reporting Unit [Member]

139

$ 39

[1]	Relates to Valvoline Instant Oil ChangeSM center acquisitions during the three months ended December 31, 2016.
[2]	As of December 31, 2016, goodwill was completely attributable to the Composites reporting unit due to the full impairment of the goodwill for the Intermediates/Solvents reporting unit during the fourth quarter of 2016.
[3]	As of December 31, 2016, goodwill consisted of $89 million for the Core North America reporting unit, $139 million for the Quick Lubes reporting unit and $39 million for the International reporting unit.

GOODWILL AND OTHER INTANGIBLES (Other Intangible Assets) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Intangible Assets, Net [Abstract]
Intangible Assets, Gross (Excluding Goodwill)	$ 1,532		$ 1,556
Intangibles	1,026		1,064
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	1,231		1,255
Accumulated amortization	(506)		(492)
Net carrying amount	725		763
Amortization expense recognized on intangible assets	19	$ 19
Expected future amortization expense [Abstract]
2017 (includes three months actual and nine months estimated)	75
2018	75
2019	70
2020	70
2021	69
Trademarks and Trade Names [Member]
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
Indefinite-lived intangible assets (excluding goodwill)	301		301
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	42		42
Accumulated amortization	(20)		(19)
Net carrying amount	22		23
Intellectual Property [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	659		667
Accumulated amortization	(284)		(273)
Net carrying amount	375		394
Customer Relationships [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Gross carrying amount	530		546
Accumulated amortization	(202)		(200)
Net carrying amount	$ 328		$ 346
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 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)	20 years
Maximum [Member] \| Customer Relationships [Member]
Intangible Assets, Net [Abstract]
Useful life (in years)	24 years

DEBT (Schedule of Long-term Debt) (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

$ 2,932

$ 3,244

(92)

(170)

(15)

(19)

Unamortized Debt Issuance Expense, Long-Term Debt

2,825

3,055

Scheduled aggregate debt maturities by fiscal year [Abstract]

686

210

Notes due 2022 [Member]

$ 1,085

$ 1,121

4.75%

Aug. 15, 2022

Notes due 2018 [Member]

$ 671

$ 700

3.875%

Apr. 15, 2018

Notes due 2043 [Member]

$ 376

6.875%

May 15, 2043

Notes due 2024 [Member]

^[1]

$ 375

5.50%

Term Loan Due 2021 [Member]

Jul. 15, 2024

2017 Accounts Receivable Securitization [Member]

^[1]

$ 296

$ 375

Junior Subordinated Debt [Member]

^[1]

$ 50

$ 140

6.50%

Other International Loans [Member]

Dec. 31, 2029

Debt, Weighted Average Interest Rate

$ 17

$ 20

4.90%

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum

4.80%

Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum

5.00%

Medium-term Notes [Member]

$ 5

9.40%

Term Loan Due 2017 [Member]

Dec. 31, 2019

$ 0

$ 150

Other Notes [Member]

^[2]

$ (18)

[1]	These debt instruments were issued by Valvoline during 2016 and 2017 in connection with the separation process.
[2]	Other includes $29 million of debt issuance cost discounts as of December 31, 2016 and September 30, 2016.

DEBT (Financing Activity and Covenants) (Details)
$ in Millions

3 Months Ended

Dec. 31, 2016

USD ($)

Mar. 31, 2017

Sep. 30, 2016

USD ($)

Junior Subordinated Debt [Member]

$ 2,932

$ 3,244

Par value of debt repurchases

6.50%

$ 182

Aggregate purchase price of debt

177

Reduction in carrying value of debt

Repayment of debt, accelerated accretion

Gain (Loss) on Repurchase of Debt Instrument

$ 50

$ 140

Notes due 2022 [Member]

4.75%

Repayments of Debt

$ 36

$ 1,085

$ 1,121

Notes due 2018 [Member]

3.875%

Repayments of Debt

$ 29

Notes due 2018 and 2022 [Member]

671

$ 700

Gain (Loss) on Repurchase of Debt Instrument

(2)

2017 Term Loan [Member]

2015 Revolving Credit Facility [Member]

150

Line of Credit Facility, Remaining Borrowing Capacity

742

Letters of Credit Outstanding, Amount

$ 58

Covenant restrictions [Abstract]

Maximum consolidated leverage ratio

3.75

Calculated leverage ratio

3.1

Minimum required consolidated interest coverage ratio

3.0

Calculated consolidated interest coverage ratio

4.4

2012 Accounts Receivable Securitization [Member]

Line of Credit Facility, Remaining Borrowing Capacity

$ 75

2017 Accounts Receivable Securitization [Member]

Line of Credit Facility, Remaining Borrowing Capacity

^[1]

Line of Credit Facility, Maximum Borrowing Capacity

125

2016 Revolving Credit Facility [Member]

Line of Credit Facility, Remaining Borrowing Capacity

428

Letters of Credit Outstanding, Amount

$ 22

Covenant restrictions [Abstract]

Maximum consolidated leverage ratio

4.50

Calculated leverage ratio

1.2

Minimum required consolidated interest coverage ratio

3.0

Calculated consolidated interest coverage ratio

13.6

Term Loan Due 2021 [Member]

Repayments of Debt

$ 75

Repayment of Debt, Accelerated Amortization

^[1]

296

$ 375

Subsequent Event [Member] | 2015 Revolving Credit Facility [Member]

Covenant restrictions [Abstract]

Maximum consolidated leverage ratio

3.5

Ashland [Member]

Line of Credit Facility, Remaining Borrowing Capacity

817

Valvoline [Member]

Line of Credit Facility, Remaining Borrowing Capacity

$ 478

[1]	These debt instruments were issued by Valvoline during 2016 and 2017 in connection with the separation process.

INCOME TAXES (Effective Tax Rate) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount [Abstract]
Estimated Annual Effective Interest Rate	25.00%	25.00%
Effective tax rate (in hundredths)	(150.00%)	18.00%
Net discrete tax adjustments	$ 1	$ (7)

INCOME TAXES (Unrecognized Tax Benefits) (Details) $ in Millions	3 Months Ended
	Dec. 31, 2016 USD ($)
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance	$ 168
Increases related to positions taken on items from prior years	4
Decreases related to positions taken on items from prior years	(2)
Increases related to positions taken in the current year	4
Settlement of uncertain tax positions with tax authorities	(1)
Balance	173
Continuing Operations [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Decrease in Unrecognized Tax Benefits is Reasonably Possible	3
Discontinued Operations [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Decrease in Unrecognized Tax Benefits is Reasonably Possible	$ 0

EMPLOYEE BENEFIT PLANS (Details) - USD ($)
$ in Millions

3 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]

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

$ (10)

$ 0

Defined Benefit Plan Disclosure [Line Items]

Actual contributions to benefit plans in period

Estimated future contributions in current fiscal year

Foreign Pension Plans, Defined Benefit [Member]

Defined Benefit Plan Disclosure [Line Items]

Actual contributions to benefit plans in period

Estimated future contributions in current fiscal year

Pension Plan [Member]

Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]

Service cost

Interest cost

Expected return on plan assets

(39)

(47)

Amortization of prior service credit

^[1]

(1)

Total net periodic benefit cost

(13)

(11)

Other Postretirement Benefit Plan, Defined Benefit [Member]

Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]

Service cost

^[1]

Interest cost

Expected return on plan assets

Amortization of prior service credit

(3)

(4)

Total net periodic benefit cost

(10)

(12)

$ (2)

Other Postretirement Benefit Plan, Defined Benefit [Member] | Cost of Sales [Member]

Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]

Other Postretirement Benefit Plan, Defined Benefit [Member] | Selling, General and Administrative Expenses [Member]

(4)

Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]

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

$ (6)

[1]	Activity of $0 denote values less than $1 million.

LITIGATION, CLAIMS AND CONTINGENCIES (Asbestos Litigation) (Details)
claim in Thousands, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2016

USD ($)

claim

Dec. 31, 2015

USD ($)

claim

Sep. 30, 2016

USD ($)

claim

Sep. 30, 2015

USD ($)

claim

Sep. 30, 2014

USD ($)

claim

Insurance settlement

^[1]

$ 0

Minimum [Member]

Number of Years Included in Asbestos Assumption

40 years

Maximum [Member]

Number of Years Included in Asbestos Assumption

50 years

Ashland [Member]

Asbestos claims [Roll Forward]

Open claims - beginning of period | claim

New claims filed | claim

Claims settled | claim

(1)

Claims dismissed | claim

(1)

(2)

(5)

(7)

(1)

Open claims - end of period | claim

Asbestos reserve [Roll Forward]

Asbestos reserve - beginning of period

$ 415

$ 409

$ 438

$ 463

Reserve adjustment

Amounts paid

(9)

(8)

(31)

(29)

Asbestos reserve - end of period

406

401

415

409

438

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

Insurance receivable - beginning of period

151

150

402

408

Receivable adjustment

(3)

Insurance settlement

(4)

(227)

Amounts collected

(2)

(5)

(11)

(22)

(28)

Insurance receivable - end of period

149

$ 145

$ 151

$ 150

$ 402

Insurance receivables relating to costs previously paid

Possible total future litigation defense and claim settlement costs

$ 670

Hercules [Member]

Asbestos claims [Roll Forward]

Open claims - beginning of period | claim

New claims filed | claim

Claims dismissed | claim

(6)

(2)

(1)

Open claims - end of period | claim

Asbestos reserve [Roll Forward]

Asbestos reserve - beginning of period

$ 321

$ 311

$ 329

$ 342

Reserve adjustment

Amounts paid

(3)

(5)

(15)

(22)

(23)

Asbestos reserve - end of period

318

306

321

311

329

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

Insurance receivable - beginning of period

Receivable adjustment

Insurance settlement

(22)

Amounts collected

(1)

Insurance receivable - end of period

$ 56

$ 63

$ 56

$ 77

Possible total future litigation defense and claim settlement costs

$ 490

[1]	Activity of $0 denotes value less than $1 million.

LITIGATION, CLAIMS AND CONTINGENCIES (Environmental Remediation and Asset Retirement Obligations) (Details)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2016

USD ($)

disposal_site

waste_treatment_or_disposal_sites

service_station_property

Dec. 31, 2015

USD ($)

Sep. 30, 2016

USD ($)

Environmental contingencies and asset retirement obligation [Roll Forward]

Environmental remediation reserve - beginning of period

$ 177

$ 186

Disbursements

(7)

(10)

Revised obligation estimates and accretion

Environmental remediation reserve - end of period

174

180

177

Accrued Environmental Loss Contingencies, Noncurrent

131

134

Recorded Third-Party Environmental Recoveries Receivables

Recorded Third-Party Environmental Recoveries, Noncurrent

$ 15

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 | waste_treatment_or_disposal_sites

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

130

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

1,225

Number of service stations being actively remediated | service_station_property

Environmental expense

$ 4

Legal Fees

Total expense

Insurance receivable

^[1]

Total environmental remediation expense, net of receivable activity

$ 6

Maximum future environmental remediation costs for identified sites

$ 380

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

15.00%

[1]	Activity of $0 denotes value less than $1 million.

EARNINGS PER SHARE (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Earnings Per Share [Abstract]

Antidilutive securities excluded from calculation of earnings per share

0.9

1.2

Numerator [Abstract]

Income from continuing operations

$ 10

$ 91

Net income attributable to noncontrolling interest

Numerator for basic and diluted EPS - Income from continuing operations

$ (1)

$ 91

Denominator [Abstract]

Denominator for basic EPS - Weighted-average common shares outstanding

62.0

65.0

Share based awards convertible to common shares

0.0

^[1]

1.0

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

62.0

66.0

EPS from continuing operations [Abstract]

Basic (in usd per share)

$ (0.01)

$ 1.39

Diluted (in usd per share)

$ (0.01)

$ 1.38

[1]	As a result of the loss from continuing operations attributable to Ashland during the three months ended December 31, 2016, the effect of the share-based awards convertible to common shares would be antidilutive. As such, they have been excluded from the diluted EPS calculation.

EQUITY ITEMS (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2016

Sep. 30, 2015

Other Comprehensive Income (Loss) [Line Items]

Unrealized translation loss, before tax

$ (150)

$ (63)

Unrealized translation loss, tax

Unrealized translation loss, net of tax

(146)

(61)

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

^[1]

(3)

(5)

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

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

(1)

(3)

Unrealized gain on available-for-sale securities, before taxes

Unrealized gain on available-for-sale securities, tax

(3)

Unrealized gain on available-for-sale securities, net of tax

Other comprehensive income (loss), before tax

(153)

(59)

Other comprehensive income (loss), tax

Other comprehensive loss

(147)

(58)

Share Repurchase Programs and Dividends [Line Items]

Stock repurchase program, authorized amount

$ 1,000

Payments for Repurchase of Common Stock

$ 500

Stock Repurchase Program, Remaining Authorized Repurchase Amount

$ 500

Quarterly dividend (per share)

$ 0.39

Sale of Stock, Percentage of Ownership after Transaction

83.00%

Payments of Ordinary Dividends, Noncontrolling Interest

$ 2

$ 0

Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners

17.00%

2016 Accelerated Share Repurchase Program [Member]

Share Repurchase Programs and Dividends [Line Items]

Payments for Repurchase of Common Stock

$ 500

Stock Repurchased and Retired During Period, Shares

1.2

3.9

5.1

Accelerated Share Repurchases, Final Price Paid Per Share

$ 99.01

Valvoline [Member]

Share Repurchase Programs and Dividends [Line Items]

Quarterly dividend (per share)

$ 0.049

Cost of Sales [Member]

Other Comprehensive Income (Loss) [Line Items]

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

$ (1)

$ (2)

Selling, General and Administrative Expenses [Member]

Other Comprehensive Income (Loss) [Line Items]

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

$ (2)

$ (3)

[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 (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
STOCK INCENTIVE PLANS (Details) - USD ($) $ in Millions	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 8	$ 9
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unexercised SARs lapse expiration period	10 years 1 month
Grants of share-based payment awards in period	400,000	400,000
Total unrecognized compensation costs	$ 14
Unrecognized cost expected to be recognized over a weighted-average period (in years)	2 years 3 months 18 days
Model to fair value share-based payment awards	Black-Scholes option-pricing model
Stock Appreciation Rights (SARs) [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of share-based payment award	1 year
Stock Appreciation Rights (SARs) [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of share-based payment award	3 years
Nonvested Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants of share-based payment awards in period	80,800	87,050
Total unrecognized compensation costs	$ 16
Unrecognized cost expected to be recognized over a weighted-average period (in years)	1 year 9 months 18 days
Nonvested Stock Awards [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of share-based payment award	1 year
Nonvested Stock Awards [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of share-based payment award	5 years
Cash-settled Nonvested Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 1	$ 1
Vesting period of share-based payment award	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	96,400
Cash-settled Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 1
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of share-based payment award	3 years
Number of common shares for each converted performance share	1
Grants of share-based payment awards in period	100,000.0	100,000
Total unrecognized compensation costs	$ 16
Unrecognized cost expected to be recognized over a weighted-average period (in years)	2 years 2 months 12 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation costs	$ 15
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			260,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	264,000

REPORTABLE SEGMENT INFORMATION (Details) $ in Millions	3 Months Ended
REPORTABLE SEGMENT INFORMATION (Details) $ in Millions	Dec. 31, 2016 USD ($) site	Dec. 31, 2015 USD ($)	Sep. 30, 2016 site
Segment Reporting Information [Line Items]
Number of reportable segments	3
Sale of Stock, Percentage of Ownership after Transaction	83.00%
Sales	$ 1,193	$ 1,163
Operating income (loss)	137	151
Specialty Ingredients [Member]
Segment Reporting Information [Line Items]
Sales	482	476
Operating income (loss)	40	38
Performance Materials [Member]
Segment Reporting Information [Line Items]
Sales	222	231
Operating income (loss)	$ 8	24
Valvoline [Member]
Segment Reporting Information [Line Items]
Number of Stores \| site	1,076
Sales	$ 489	456
Operating income (loss)	99	92
Unallocated and other [Member]
Segment Reporting Information [Line Items]
Operating income (loss)	$ (10)	$ (3)
Oil Can Henry's [Member]
Segment Reporting Information [Line Items]
Number of Stores \| site			89

SUPPLEMENTAL GUARANTOR INFORMATION SUPPLEMENTAL GUARANTOR INFORMATION (Details)	Dec. 31, 2016	Sep. 30, 2016
Notes due 2018 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.875%	3.875%
Notes due 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.75%	4.75%
Notes due 2043 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	6.875%	6.875%

SUPPLEMENTAL GUARANTOR INFORMATION (Condensed Statements of Comprehensive Income) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Sales	$ 1,193	$ 1,163
Cost of sales	807	771
Gross Profit	386	392
Selling, general and administrative expense	239	224
Research and Development Expense	23	25
Equity and other income (loss)	13	8
Operating income (loss)	137	151
Net interest and other financing expense	132	42
Net gain (loss) on divestitures	(1)	2
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	4	111
Income tax expense (benefit)	(6)	20
Equity in net income (loss) of subsidiaries	0	0
Income (loss) from continuing operations	10	91
Loss from discontinued operations (net of tax)	0	(2)
Net income (loss)	10	89
Net income attributable to noncontrolling interest	11	0
Net income (loss) attributable to Ashland	(1)	89
Comprehensive income (loss)	(137)	31
Comprehensive income attributable to noncontrolling interest	10	0
Comprehensive income (loss) attributable to Ashland	(147)	31
Eliminations
Sales	(9)	(7)
Cost of sales	(8)	(6)
Gross Profit	(1)	(1)
Selling, general and administrative expense	0	0
Research and Development Expense	0	0
Equity and other income (loss)	0	0
Operating income (loss)	(1)	(1)
Net interest and other financing expense	0	0
Net gain (loss) on divestitures	0	0
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	(1)	(1)
Income tax expense (benefit)	0	0
Equity in net income (loss) of subsidiaries	(8)	(184)
Income (loss) from continuing operations		(185)
Loss from discontinued operations (net of tax)		0
Net income (loss)	(9)	(185)
Net income attributable to noncontrolling interest	0
Net income (loss) attributable to Ashland	(9)
Comprehensive income (loss)	127	(127)
Comprehensive income attributable to noncontrolling interest	(10)
Comprehensive income (loss) attributable to Ashland	137
Ashland Global Holdings Inc. (Parent Guarantor)
Sales	0	0
Cost of sales	0	0
Gross Profit	0	0
Selling, general and administrative expense	8	0
Research and Development Expense	0	0
Equity and other income (loss)	0	0
Operating income (loss)	(8)	0
Net interest and other financing expense	0	0
Net gain (loss) on divestitures	0	0
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	(8)	0
Income tax expense (benefit)	0	0
Equity in net income (loss) of subsidiaries	7	89
Income (loss) from continuing operations		89
Loss from discontinued operations (net of tax)		0
Net income (loss)	(1)	89
Net income attributable to noncontrolling interest	0
Net income (loss) attributable to Ashland	(1)
Comprehensive income (loss)	(137)	31
Comprehensive income attributable to noncontrolling interest	10
Comprehensive income (loss) attributable to Ashland	(147)
Ashland LLC (Issuer)
Sales	137	156
Cost of sales	96	102
Gross Profit	41	54
Selling, general and administrative expense	32	32
Research and Development Expense	3	3
Equity and other income (loss)	(15)	(2)
Operating income (loss)	(9)	17
Net interest and other financing expense	34	38
Net gain (loss) on divestitures	(1)	1
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	(44)	(20)
Income tax expense (benefit)	5	(27)
Equity in net income (loss) of subsidiaries	1	95
Income (loss) from continuing operations		102
Loss from discontinued operations (net of tax)		(1)
Net income (loss)	(48)	101
Net income attributable to noncontrolling interest	0
Net income (loss) attributable to Ashland	(48)
Comprehensive income (loss)	(41)	100
Comprehensive income attributable to noncontrolling interest	0
Comprehensive income (loss) attributable to Ashland	(41)
Other Non-Guarantor Subsidiaries
Sales	1,065	1,014
Cost of sales	719	675
Gross Profit	346	339
Selling, general and administrative expense	199	192
Research and Development Expense	20	22
Equity and other income (loss)	28	10
Operating income (loss)	155	135
Net interest and other financing expense	98	4
Net gain (loss) on divestitures	0	1
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	57	132
Income tax expense (benefit)	(11)	47
Equity in net income (loss) of subsidiaries	0	0
Income (loss) from continuing operations		85
Loss from discontinued operations (net of tax)		(1)
Net income (loss)	68	84
Net income attributable to noncontrolling interest	11
Net income (loss) attributable to Ashland	57
Comprehensive income (loss)	(86)	$ 27
Comprehensive income attributable to noncontrolling interest	10
Comprehensive income (loss) attributable to Ashland	$ (96)

SUPPLEMENTAL GUARANTOR INFORMATION (Condensed Balance Sheets) (Details) - USD ($)
$ in Millions

Dec. 31, 2016

Sep. 30, 2016

Dec. 31, 2015

Sep. 30, 2015

$ 704

$ 1,188

$ 1,039

$ 1,257

^[1]

858

894

Inventories

666

671

106

113

2,334

2,866

2,186

2,224

2,348

2,401

1,026

1,064

297

292

194

196

199

177

419

420

6,729

6,831

9,063

9,697

170

909

1,027

1,016

1,216

2,825

3,055

1,040

1,080

674

686

438

426

5,046

5,316

Equity

3,175

3,347

(174)

(182)

3,001

3,165

9,063

9,697

Eliminations

Inventories

(10)

(8)

(10)

(8)

(10,498)

(10,724)

(128)

(97)

(2,558)

(2,269)

(13,184)

(13,090)

(13,194)

(13,098)

(10)

(8)

(10)

(8)

(128)

(97)

(2,558)

(2,269)

(2,686)

(2,366)

Equity

(10,498)

(10,724)

(10,498)

(10,724)

Ashland Global Holdings Inc. (Parent Guarantor)

(13,194)

(13,098)

2,995

3,127

3,026

3,158

3,032

3,165

Equity

3,001

3,165

3,001

3,165

3,032

3,165

Ashland LLC (Issuer)

148

250

152

241

246

141

131

133

7,503

7,597

254

253

8,423

8,509

8,673

8,661

222

244

222

244

2,116

2,182

371

381

2,508

2,264

220

5,253

5,091

Equity

3,198

3,326

3,198

3,326

Other Non-Guarantor Subsidiaries

8,673

8,661

556

1,112

$ 1,032

$ 1,236

811

876

Inventories

621

629

100

2,088

2,715

1,945

1,978

2,207

2,260

991

1,029

297

292

199

146

2,539

2,264

165

167

8,464

8,254

10,552

10,969

170

697

791

804

980

709

873

1,002

1,036

303

305

197

166

218

206

2,448

2,591

Equity

7,474

7,580

(174)

(182)

7,300

7,398