Selling, general and administrative expense

$ 3,260

$ 3,019

$ 3,420

Cost of sales

2,372

2,153

2,532

Gross profit

888

866

888

670

914

^[1]

692

Research and development expense

Equity and other income

Net interest and other financing expense - Note I

142

(127)

112

234

173

174

Net loss on acquisitions and divestitures - Notes C and D

(6)

(8)

(89)

Loss from continuing operations before income taxes

(98)

(308)

(151)

Income tax expense (benefit) - Note L

(25)

(139)

Loss from continuing operations

(105)

(283)

(12)

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

133

255

321

Net income attributable to noncontrolling interest

(28)

309

^[2]

Net income (loss) attributable to Ashland

$ 1

$ (29)

$ 309

Basic earnings per share

Loss from continuing operations (usd per share)

$ (1.69)

$ (4.51)

$ (0.18)

Income from discontinued operations attributable to Ashland (usd per share)

1.70

4.04

4.72

Net income (loss) attributable to Ashland (usd per share)

0.01

(0.47)

4.54

Diluted earnings per share

Loss from continuing operations (usd per share)

(1.69)

(4.51)

(0.18)

Income from discontinued operations attributable to Ashland (usd per share)

1.70

4.04

4.72

Net income (loss) attributable to Ashland (usd per share)

$ 0.01

$ (0.47)

$ 4.54

COMPREHENSIVE INCOME (LOSS)

Other comprehensive income (loss), net of tax

$ 28

$ (28)

$ 309

Unrealized translation gain (loss)

(14)

(369)

Pension and postretirement obligation adjustment

(4)

(18)

Net change in available-for-sale securities

(11)

Comprehensive income (loss)

(398)

120

(11)

(89)

Comprehensive income attributable to noncontrolling interest

Comprehensive income (loss) attributable to Ashland

$ 93

$ (12)

$ (89)

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

Consolidated Balance Sheets - USD ($)
$ in Millions

Sep. 30, 2017

Sep. 30, 2016

Current assets

Cash and cash equivalents

$ 566

$ 1,017

Accounts receivable

^[1]

612

529

Inventories - Note A

634

539

Current assets of discontinued operations - Note E

714

Total current assets

1,903

2,888

Property, plant and equipment - Note G

Cost

3,762

3,615

Accumulated depreciation

^[2]

1,792

1,715

Restricted investments - Note F

1,970

1,900

Goodwill - Note H

2,465

2,138

Intangibles - Note H

1,319

1,061

302

292

Asbestos insurance receivable - Note N

209

196

Deferred income taxes - Note L

Other assets - Note J

422

437

Noncurrent assets of discontinued operations - Note E

1,053

Total noncurrent assets

6,715

7,112

Total assets

8,618

10,000

Current liabilities

Short-term debt - Note I

235

170

Accrued expenses and other liabilities

409

376

324

313

Current liabilities of discontinued operations - Note E

379

Total current liabilities

968

1,238

Noncurrent liabilities

Long-term debt - Note I

2,584

2,325

Employee benefit obligations - Note M

191

195

Asbestos litigation reserve - Note N

694

686

Deferred income taxes - Note L

375

315

Other liabilities - Note J

400

361

Noncurrent liabilities of discontinued operations - Note E

1,715

Total noncurrent liabilities

4,244

5,597

Commitments and contingencies - Notes K and N

Equity - Notes O and P

Common stock, par value $.01 per share, 200 million shares authorized, issued 62 million shares in 2017 and 2016

Paid-in capital

931

923

Retained earnings

2,696

2,704

Accumulated other comprehensive loss

(222)

(281)

Total Ashland stockholders’ equity

3,406

3,347

Noncontrolling interest (b)

^[3]

Total equity

3,406

3,165

Total liabilities and equity

$ 8,618

$ 10,000

[1]	Accounts receivable includes an allowance for doubtful accounts of $9 million and $10 million at September 30, 2017 and 2016, respectively.
[2]	As of September 30, 2017 and 2016, accumulated depreciation included impairment charges to buildings and machinery and equipment of $1 million and $9 million, respectively, related to Intermediates and Solvents. See Note H for more information.
[3]	Represents the previous noncontrolling interest in Valvoline Inc. held outside of Ashland which is now included within discontinued operations. See Note B for more information.

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2017	Sep. 30, 2016
Current assets
Allowance for doubtful accounts, current	$ 9	$ 10
Stockholders' Equity
Common stock, shares authorized	200	200
Common stock, par value per share (usd per share)	$ 0.01	$ 0.01
Common stock, shares, issued	62	62

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

Total

Common Stock [Member]

Paid-in Capital [Member]

Retained Earnings [Member]

Accumulated other comprehensive income (loss) [Member]

Noncontrolling Interest [Member]

Balance at Sep. 30, 2014

$ 3,583

$ 1

$ 0

$ 3,475

$ 107

$ 0

Increase (Decrease) in Stockholders' Equity [Roll Forward]

309

Regular dividends, ($1.46, $1.56, $1.23 per common share for 2015, 2016, 2017)

(398)

(98)

Common shares issued under stock incentive and other plans

^[1],[2]

(8)

Repurchase of common shares

^[3]

(397)

Balance at Sep. 30, 2015

3,037

3,281

(291)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

(28)

(29)

Regular dividends, ($1.46, $1.56, $1.23 per common share for 2015, 2016, 2017)

(97)

Common shares issued under stock incentive and other plans

^[1],[2]

Repurchase of common shares

^[3]

(500)

(49)

(451)

Valvoline Inc. initial public offering

^[4]

712

902

(7)

(183)

Balance at Sep. 30, 2016

3,165

923

2,704

(281)

^[5]

(182)

^[4]

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Regular dividends, ($1.46, $1.56, $1.23 per common share for 2015, 2016, 2017)

(77)

Common shares issued under stock incentive and other plans

^[1],[2]

Distribution of Valvoline Inc.

^[4]

187

(33)

152

Other

(7)

Distributions to noncontrolling interest

(4)

Balance at Sep. 30, 2017

$ 3,406

$ 1

$ 931

$ 2,696

$ (222)

^[5]

$ 0

^[4]

[1]	Common shares issued were 42,861, 417,584 and 441,609 for 2017, 2016 and 2015, respectively.
[2]	Includes income tax benefits resulting from the exercise of stock options of $4 million in 2017, $4 million in 2016 and $8 million in 2015.
[3]	Common shares repurchased were 5,049,911 and 3,944,356 for 2016 and 2015, respectively.
[4]	See Note B for discussion of the noncontrolling interest and the initial public offering and distribution of Valvoline Inc.
[5]	At September 30, 2017 and 2016, the accumulated other comprehensive loss of $222 million and $281 million, respectively, was comprised of unrecognized prior service credits as a result of certain employee benefit plan amendments of $3 million and $46 million, respectively, net unrealized translation losses of $246 million and $333 million, respectively, and net unrealized gains on available for sale securities of $21 million and $6 million, respectively. As of September 30, 2016, the unrecognized prior service credits and the net unrealized translation loss excluded amounts attributable to noncontrolling interest of $9 million and $2 million, respectively. The accumulated other comprehensive income that was distributed to Valvoline Inc. included $39 million of unrecognized prior service credits and $6 million of net unrealized translation losses.

Statement of Consolidated Equity (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015	May 12, 2017
Dividends (in usd per share)	$ 1.23	$ 1.56	$ 1.46
Accumulated other comprehensive loss	$ (222)	$ (281)
Unrecognized prior service credits	3	46
Net unrealized translation loss	246	333
Available-for-sale securities unrealized gains	21	6
Income tax benefits resulting from the exercise of stock options	$ 4	$ 4	$ 8
Stock Issued During Period, Shares, New Issues	42,861	417,584	441,609
Common shares repurchased (in shares)		5,049,911	3,944,356
Noncontrolling Interest [Member]
Unrecognized prior service credits		$ 9
Net unrealized translation loss		$ (2)
Valvoline [Member]
Unrecognized prior service credits				$ 39
Net unrealized translation loss				$ 6

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

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

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

Income from discontinued operations (net of tax)

$ 28

$ (28)

$ 309

(133)

(255)

(321)

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

Depreciation and amortization

301

302

306

Original issue discount and debt issuance cost amortization

109

Equity income from affiliates

(30)

(29)

(49)

(1)

(3)

Distributions from equity affiliates

Stock based compensation expense - Note P

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

(11)

^[1]

(8)

^[1]

(3)

Net loss on acquisitions and divestitures - Notes C and D

Impairments

181

Pension contributions

(7)

(33)

(610)

Loss on pension and other postretirement plan remeasurements

142

208

Change in operating assets and liabilities

^[2]

(42)

(254)

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

255

372

(256)

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

Proceeds from disposal of property, plant and equipment

(199)

(231)

(220)

Purchase of operations - net of cash acquired

(680)

(8)

Proceeds from sale of operations or equity investments

139

Net purchases of funds restricted for specific transactions

(2)

(4)

(320)

Reimbursement from restricted investments

Proceeds from sale of available-for-sale securities

315

Purchase of available-for-sale securities

(19)

(10)

(315)

Proceeds from the settlement of derivative instruments

Payments for the settlement of derivative instruments

(3)

(5)

(7)

Total cash flows used by investing activities from continuing operations

(829)

(177)

(391)

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

Proceeds from issuance of long-term debt

1,100

Repayment of long-term debt

(915)

(1,095)

(623)

Premium on long-term debt repayment

(17)

(9)

Proceeds (repayment) from short-term debt

(156)

(3)

Repurchase of common stock

(500)

(397)

Debt issuance costs

(15)

(9)

Cash dividends paid

(77)

(97)

(98)

Excess tax benefits related to share-based payments

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

154

(1,845)

(30)

Cash used by continuing operations

(420)

(1,650)

(677)

Cash provided (used) by discontinued operations

Operating cash flows

110

293

589

Investing cash flows

(290)

(155)

(1)

Financing cash flows

(17)

1,451

Total cash provided (used) by discontinued operations

(197)

1,589

588

Effect of currency exchange rate changes on cash and cash equivalents

(5)

(8)

(47)

Increase (decrease) in cash and cash equivalents

(622)

(69)

(136)

Cash and cash equivalents - beginning of year

1,017

1,257

1,393

Cash transferred to Valvoline Inc.

171

(171)

Cash and cash equivalents - end of year

566

1,017

1,257

Changes in assets and liabilities

Accounts receivable

(64)

211

(23)

Other assets and liabilities

(99)

(228)

(15)

(282)

Change in operating assets and liabilities

^[2]

(42)

(254)

Supplemental disclosures [Abstract]

Interest paid

132

162

149

Income taxes paid

$ 79

$ 108

$ 226

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

SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation and basis of presentation

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

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

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

Subsequent to completing the distribution of Valvoline Inc. during the current year, Ashland's operations are now managed within the following three reportable segments: Specialty Ingredients, Composites and Intermediates and Solvents. In previous years, Composites and Intermediates and Solvents were reporting units included within the Ashland Performance Materials reportable segment.

During 2016 and 2015, Ashland sold certain assets in its portfolio of businesses which were not reflected as discontinued operations in accordance with U.S. GAAP. See Notes D and Q for additional information on these activities as well as Ashland’s current reportable segment results.

Use of estimates, risks and uncertainties

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

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

Cash and cash equivalents

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

Allowance for doubtful accounts

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

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



(In millions)	2017			2016			2015
Allowance for doubtful accounts - beginning of year	$	10		$	7		$	8
Adjustments to net income	4			4			3
Reserves utilized	(4		)	(2		)	(3		)
Other changes	(1		)	1			(1		)
Allowance for doubtful accounts - end of year	$	9		$	10		$	7

Inventories

Inventories are carried at the lower of cost or net realizable value. Inventories are primarily stated at cost using the weighted-average cost method. In addition, certain chemicals with a replacement cost of $108 million at September 30, 2017 and $102 million at September 30, 2016 are valued at cost using the last-in, first-out (LIFO) method.

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



(In millions)	2017			2016
Finished products	$	390		$	377
Raw materials, supplies and work in process	245			163
LIFO reserves	(1		)	(1		)
	$	634		$	539

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



(In millions)	2017			2016			2015
Inventory reserves - beginning of year	$	31		$	31		$	47
Adjustments to net income	6			6			9
Reserves utilized	(8		)	(6		)	(5		)
Dispositions and other changes	—			—			(20		)
Inventory reserves - end of year	$	29		$	31		$	31

Property, plant and equipment

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

Goodwill and other intangibles

Ashland tests goodwill and other indefinite-lived intangible assets for impairment annually as of July 1 and when events and circumstances indicate an impairment may have occurred. Ashland reviews goodwill for impairment based on its identified reporting units, which are defined as operating segments or groupings of businesses one level below the operating segment level. Ashland tests goodwill for impairment by comparing the carrying value to the estimated fair value of its reporting units, determined using a combination of discounted cash flow models and valuations based on earnings multiples for guideline public companies in each reporting unit’s industry peer group, when externally quoted market prices are not readily available. If this comparison indicates that a reporting unit’s estimated fair value is less than its carrying value, it is adjusted to its calculated fair value and the adjustment represents the impairment charge.

Ashland tests its indefinite-lived intangible assets, principally trademarks and trade names, using a “relief-from-royalty” valuation method compared to the carrying value. Significant assumptions inherent in the valuation methodologies for goodwill and other intangibles are employed and include, but are not limited to, such estimates as future projected business results, growth rates, the weighted-average cost of capital for a market participant, and royalty and discount rates. If the carrying value of an individual indefinite-lived intangible asset exceeds its fair value, such individual indefinite-lived intangible asset is written down by an amount equal to such excess.

Finite-lived intangible assets principally consist of certain trademarks and trade names, intellectual property, and customer lists. These intangible assets are amortized on a straight-line basis over their estimated useful lives. The cost of trademarks and trade names is amortized principally over 3 to 25 years, intellectual property over 5 to 25 years and customer and supplier relationships over 3 to 24 years. Ashland reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Ashland monitors these changes and events on at least a quarterly basis. For further information on goodwill and other intangible assets, see Note H.

Derivative instruments

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

Restricted investments

On January 13, 2015, Ashland and Hercules LLC (formerly Hercules Incorporated), an indirect wholly-owned subsidiary of Ashland that was acquired in 2009, entered into a comprehensive settlement agreement related to certain insurance coverage for asbestos bodily injury claims with Underwriters at Lloyd’s, certain London companies and Chartis (AIG) member companies, along with National Indemnity Company and Resolute Management, Inc., under which Ashland and Hercules received a total of $398 million (the January 2015 asbestos insurance settlement). During 2015, Ashland placed $335 million of the settlement funds into a renewable annual trust restricted for the purpose of paying ongoing and future litigation defense and claim settlement costs incurred in conjunction with asbestos claims. These funds are presented primarily as noncurrent assets, with $30 million classified within other current assets in the Consolidated Balance Sheets as of September 30, 2017 and 2016.

As of September 30, 2017, the funds within the trust were primarily invested in equity and corporate bond investments with a portion maintained in demand deposits. The funds within the trust are classified as available-for-sale securities. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of related deferred income taxes, included in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income. Interest income and realized gains and losses on the available-for-sale securities are reported in the net interest and other financing expense caption in the Statements of Consolidated Comprehensive Income. See Notes F and N for additional information regarding fair value of these investments within the trust and the January 2015 asbestos insurance settlement.

Revenue recognition

Sales generally are recognized when persuasive evidence of an arrangement exists, products are received or services are provided to customers, the sales price is fixed or determinable and collectibility is reasonably assured. For consignment inventory, title and risk of loss are transferred when the products have been consumed or used in the customer’s production process. The percentage of Ashland’s sales recognized from consignment inventory sales was 6% during 2017 and 2016 and 5% during 2015. Ashland reports all sales net of tax assessed by qualifying governmental authorities. Certain shipping and handling costs paid by the customer are recorded in sales, while those costs paid by Ashland are recorded in cost of sales. In May 2014, the FASB issued accounting guidance effective on October 1, 2018 that will change Ashland’s policy and disclosure requirements for revenue recognition treatment. See the new accounting pronouncements section within this Note A for further information.

Expense recognition

Cost of sales include material and production costs, as well as the costs of inbound and outbound freight, purchasing and receiving, inspection, warehousing, internal transfers and all other distribution network costs. Selling, general and administrative expense includes sales and marketing costs, advertising, customer support, environmental remediation, corporate and divisional administrative and other costs. Advertising costs ($6 million in 2017, 2016 and 2015) and research and development costs ($83 million in 2017, $87 million in 2016 and $99 million in 2015) are expensed as incurred.

Income taxes

Ashland is subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment in the forecasting of taxable income using historical and projected future operating results is required in determining Ashland’s provision for income taxes and the related assets and liabilities. The provision for income taxes includes income taxes paid, currently payable or receivable, and deferred taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities, and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Deferred tax assets are also recognized for the estimated future effects of tax loss carryforwards. The effect on deferred taxes of changes in tax rates is recognized in the period in which the enactment date occurs. Valuation allowances are established when necessary on a jurisdictional basis to reduce deferred tax assets to the amounts expected to be realized. In the event that the actual outcome of future tax consequences differs from Ashland’s estimates and assumptions due to changes or future events such as tax legislation, geographic mix of earnings, completion of tax audits or earnings repatriation plans, the resulting change to the provision for income taxes could have a material effect on the Statements of Consolidated Comprehensive Income and Consolidated Balance Sheets. For additional information on income taxes, see Note L.

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



(In millions)	2017			2016			2015
Tax valuation allowances - beginning of year	$	136		$	103		$	139
Adjustments to income tax expense (benefit)	27			43			(20		)
Reserves utilized	(41		)	(10		)	(7		)
Other changes	—			—			(9		)
Tax valuation allowances - end of year	$	122		$	136		$	103

Asbestos-related litigation

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

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

Environmental remediation

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

Pension and other postretirement benefits

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

Ashland recognizes the change in the fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for a remeasurement. The remaining components of pension and other postretirement benefits expense are recorded ratably on a quarterly basis. Pension and other postretirement benefits adjustments charged directly to cost of sales that are applicable to inactive participants are excluded from inventoriable costs. The service cost component of pension and other postretirement benefits costs is allocated to each reportable segment on a ratable basis; while the remaining components of pension and other postretirement benefits costs are recorded to Unallocated and other.

Foreign currency translation

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

Stock incentive plans

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

Earnings per share

The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Earnings per share are reported under the treasury stock method. Stock options and SARs for each reported year whose grant price was greater than the market price of Ashland Common Stock at the end of each fiscal year were not included in the computation of loss from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was 1.1 million for 2017, 1.2 million for 2016 and 0.7 million for 2015.



(In millions except per share data)	2017			2016			2015
Numerator
Numerator for basic and diluted EPS -
Loss from continuing operations, net of tax	$	(105	)	$	(283	)	$	(12	)
Denominator
Denominator for basic EPS - Weighted-average
common shares outstanding	62			63			68
Share based awards convertible to common shares (a)	—			—			—
Denominator for diluted EPS - Adjusted weighted-
average shares and assumed conversions	62			63			68
EPS from continuing operations attributable to Ashland
Basic	$	(1.69	)	$	(4.51	)	$	(0.18	)
Diluted	(1.69		)	(4.51		)	(0.18		)


(a)	As a result of the loss from continuing operations for 2017, 2016 and 2015, the effect of the share-based awards convertible to common shares would be antidilutive. In accordance with U.S. GAAP, they have been excluded from the diluted EPS calculation.

New accounting pronouncements

In May 2014, the FASB issued accounting guidance outlining a single comprehensive five step model for entities to use in accounting for revenue arising from contracts with customers (ASC 606 Revenue from Contracts with Customers). The new guidance and subsequent amendments to it supersedes most current revenue recognition guidance, in an effort to converge the revenue recognition principles within U.S. GAAP. This new guidance also requires entities to disclose certain quantitative and qualitative information regarding the nature, amount, timing and uncertainty of qualifying revenue and cash flows arising from contracts with customers. Entities have the option of using a full retrospective or a modified retrospective approach to adopt the new guidance. Ashland has identified an implementation team that is currently evaluating the impact of the new standard on the Consolidated Financial Statements and the adoption method options available as well as the overall impact the new guidance will have on the organization. The assessment process consists of categorizing Ashland’s revenue streams and reviewing the current internal accounting policies and practices to determine potential differences that would result from applying the requirements of the new standard to revenue contracts. Additional discussions and meetings with each revenue stream team have occurred to solicit input, identify potential impacts and appropriate changes to Ashland’s business processes, systems and controls to support the revenue recognition and disclosure requirements under the new standard. Based on various preliminary assessments conducted to date, Ashland has identified agreements with distributors and customers that are subject to rebate and incentive programs that could contain elements of material rights and/or variable consideration. Ashland does not currently believe that these elements would result in a material change to how revenue would be recognized for these agreements. Ashland currently intends to adopt this standard using the modified retrospective approach and does not believe the impact will be material to the Consolidated Financial Statements but does expect there to be significant additional disclosures within the Notes to Consolidated Financial Statements. This guidance becomes effective for Ashland on October 1, 2018 and Ashland currently plans to adopt the standard at that time.

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

In March 2017, the FASB issued accounting guidance that will change how employers who sponsor defined benefit pension and/or postretirement benefit plans present the net periodic benefit cost in the Statement of Consolidated Comprehensive Income. This guidance requires employers to present the service cost component of net periodic benefit cost in the same caption within the Statement of Consolidated Comprehensive Income (Loss) as other employee compensation costs from services rendered during the period. All other components of the net periodic benefit cost will be presented separately outside of the operating income caption. This guidance must be applied retrospectively and will become effective for Ashland on October 1, 2018, with early adoption being optional. Ashland intends to early adopt this guidance on October 1, 2017 and will revise the presentation of the net periodic benefit cost in previous periods to conform to the current period presentation.

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

In August 2016, the FASB issued new accounting guidance on eight specific cash flow classification issues. The amendments in this guidance will become effective retrospectively for Ashland on October 1, 2018. Early adoption is permitted in any interim or annual period. Ashland is currently evaluating the impact this guidance may have on Ashland’s Consolidated Financial Statements.

In March 2016, the FASB issued new accounting guidance for certain aspects of share-based payments to employees. This guidance requires all excess tax benefits and tax deficiencies related to share-based payments to be recognized as income tax expense in the Statements of Consolidated Comprehensive Income (Loss) instead of additional paid in capital, and changes the classification of excess tax benefits from a financing activity to an operating activity within the statement of cash flows. This guidance also allows entities to make an accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. Lastly, this guidance increases the amount an employer can withhold to cover income taxes on awards and still qualify for equity classification and requires that cash paid by an employer when directly withholding shares for tax-withholding purposes be classified as a financing activity within the statement of cash flows. The guidance will become effective for Ashland on October 1, 2017. Ashland does not expect this new accounting guidance to have a significant effect on its Consolidated Financial Statements or disclosures.

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

In January 2016, the FASB issued accounting guidance related to the recognition and measurement of financial assets and financial liabilities. The main objective of this guidance is enhancing the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The amendments in this guidance address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The guidance also eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The guidance will become effective for Ashland on October 1, 2018. Ashland is currently evaluating the impact this guidance may have on Ashland’s Consolidated Financial Statements.

In September 2015, the FASB issued accounting guidance to simplify the accounting for measurement-period adjustments related to acquisitions. This guidance requires that an acquirer recognize adjustments to initial amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period’s financial statements, the effect on earnings changes in depreciation, amortization, or other income effects, if significant, as a result of the change to the initial amounts, calculated as if the accounting had been completed at the acquisition date. These effects should be presented separately on the face of the Statements of Consolidated Comprehensive Income (Loss) or disclosed in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance became effective prospectively for Ashland on October 1, 2016. In accordance with this new guidance, see Note C for disclosure of the subsequent adjustments to the initial purchase price of acquisitions.

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 and did not have a significant impact on Ashland’s Consolidated Financial Statements.

VALVOLINE

7 Months Ended

May 12, 2017

Valvoline Disclosure [Abstract]

VALVOLINE [Text Block]

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 total net proceeds after deducting underwriters’ discount and other offering expenses received from the IPO were $712 million, which were used primarily to repay debt incurred prior to the IPO and retained for Valvoline Inc.’s cash on hand. As discussed further within the Final Separation section of this Note B, Ashland completed the distribution of its remaining shares in Valvoline Inc. on May 12, 2017. The new Ashland is a premier global leader in providing specialty chemical solutions to customers in a wide range of consumer and industrial markets. Key markets and applications include pharmaceutical, personal care, food and beverage, architectural coatings, adhesives, automotive, construction and energy.

After completing the IPO on September 28, 2016 and before the distribution of its remaining shares on May 12, 2017, Ashland owned 170 million shares of Valvoline Inc.’s common stock which represented approximately 83% of the total outstanding shares of Valvoline Inc.’s common stock. As a result, Ashland continued to consolidate Valvoline within the Consolidated Financial Statements up until the distribution of the remaining shares. The resulting outside stockholders’ interests in Valvoline Inc., which was approximately 17% as of September 30, 2016, was presented separately as a noncontrolling interest within Ashland’s equity in the Consolidated Balance Sheet. The amount of consolidated net income attributed to these previous minority holders is presented as a separate caption on the Statements of Consolidated Comprehensive Income.

Final Separation

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



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

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

Discontinued Operations Assessment

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

In 2016 and 2015, certain indirect corporate costs included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) that were previously allocated to the Valvoline reportable segment do not qualify for classification within discontinued operations and continue to be reported as selling, general and administrative expense within continuing operations on a consolidated basis and within the Unallocated and other segment. These costs were $22 million and $23 million during 2016 and 2015, respectively.

Costs of transaction

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

ACQUISITIONS

12 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

ACQUISITIONS [Text Block]

Pharmachem

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

Purchase price allocation

The acquisition was recorded by Ashland using the purchase method of accounting in accordance with U.S. GAAP whereby the total purchase price was allocated to tangible and intangible assets and liabilities acquired based on respective fair values.

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



	At
	May 17, 2017
Preliminary purchase price allocation (in millions)	As Adjusted
Assets:
Accounts receivable	52
Inventory	74
Other current assets	4
Intangible assets	330
Goodwill	287
Property, plant and equipment	97
Other noncurrent assets	20
Liabilities:
Accounts payable	(32		)
Deferred tax - net	(138		)
Other noncurrent liabilities	(14		)
Total purchase price	$	680

As of September 30, 2017, the purchase price allocation for the acquisition was preliminary and subject to completion. Adjustments to the current fair value estimates in the above table may still occur as the process conducted for various valuations and assessments, including certain tangible and intangible assets and tax reserves, are finalized. Goodwill was calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The factors contributing to the recognition of goodwill were based on strategic benefits that are expected to be realized from the acquisition. None of the goodwill is expected to be deductible for income tax purposes.

Subsequent Adjustments to Initial Purchase Price

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

Intangible assets identified

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

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



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

Impact on operating results

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



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


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

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



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

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

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

DIVESTITURES	12 Months Ended
DIVESTITURES	Sep. 30, 2017
DIVESTITURES [Abstract]
DIVESTITURES [Text Block]	Specialty Ingredients Joint Venture During September 2016, Ashland entered into a definitive sale agreement to sell its ownership interest in a Specialty Ingredients consolidated joint venture. Ashland recognized a loss of $12 million before tax in 2016 to recognize the assets at fair value less cost to sell, using Level 2 nonrecurring fair value measurements. During 2017, Ashland completed the transfer of its ownership interest in the joint venture and recognized an additional loss of $4 million primarily related to a license fee and tax adjustments. The losses in 2017 and 2016 were reported within the net loss on acquisitions and divestitures caption within the Statements of Consolidated Comprehensive Income (Loss). The net assets held for sale were not material to Ashland’s Consolidated Balance Sheet as of September 30, 2016. 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 will be recognized in the period incurred. Industrial Biocides During May 2015, Ashland entered into a definitive sale agreement to sell the industrial biocides assets within Specialty Ingredients, which closed on July 1, 2015. As a result of the sale, Ashland received net cash proceeds of approximately $30 million during the fourth quarter of 2015 and recognized a nominal gain before tax and after customary closing costs within the net loss on acquisitions and divestitures caption within the Statements of Consolidated Comprehensive Income. The sale of Specialty Ingredients’ industrial biocides assets 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. MAP Transaction As part of the 2005 transfer of Ashland’s 38% interest in the Marathon Ashland Petroleum LLC (MAP) joint venture and two other small businesses to Marathon Oil Corporation (Marathon) (the MAP Transaction), Marathon is entitled to the tax deductions for Ashland’s future payments of certain contingent liabilities, including asbestos liabilities, related to previously owned businesses of Ashland. Marathon agreed to compensate Ashland for these tax deductions and Ashland established a discounted receivable, which represented the estimated present value of probable recoveries from Marathon for the portion of their future tax deductions. As a result of the January 2015 asbestos insurance settlement, Ashland recorded a $7 million charge during 2015 within the net loss on acquisitions and divestitures caption of the Statements of Consolidated Comprehensive Income. The total MAP receivable remaining as of September 30, 2017 was $4 million. See Note N for more information related to the January 2015 asbestos insurance settlement. Elastomers On October 9, 2014, Ashland entered into a definitive agreement to sell the Elastomers division of the Composites reportable segment, which operated a 250-person manufacturing facility in Port Neches, Texas, to Lion Copolymer Holdings, LLC. The Elastomers division, which primarily served the North American replacement tire market, accounted for approximately 5% of Ashland’s 2014 sales of $6.1 billion. The sale was completed on December 1, 2014 in a transaction valued at approximately $120 million which was subject to working capital adjustments. The total post-closing adjusted cash proceeds received before taxes by Ashland during 2015 was $105 million, which included working capital adjustments and transaction costs, as defined in the definitive agreement. Elastomers’ net assets as of November 30, 2014 were $191 million which primarily included accounts receivable, inventory, property, plant and equipment, non-deductible goodwill and other intangibles and payables. Since the net proceeds received were less than book value, Ashland recorded a loss of $86 million pre-tax, using Level 2 nonrecurring fair value measurements, within the net loss on acquisitions and divestitures caption of the Statements of Consolidated Comprehensive Income (Loss) during 2015. The related tax effect was a benefit of $28 million included in the income tax expense (benefit) caption within the Statements of Consolidated Comprehensive Income. Ashland determined that the sale of Elastomers did not represent a strategic shift that had or will have a major effect on Ashland’s operations and financial results. As such, Elastomers’ results were included in the Composites reportable segment results of operations and financial position within the Statements of Consolidated Comprehensive Income (Loss) and Consolidated Balance Sheets, respectively, until its December 1, 2014 sale. Certain indirect corporate costs of $11 million for 2015 were included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) that were previously allocated to the Elastomers division.

DISCONTINUED OPERATIONS

12 Months Ended

Sep. 30, 2017

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

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

Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result primarily from indemnification obligations undertaken in 1990 in connection with the sale of Riley, a former subsidiary, which qualified as a discontinued operation and from the acquisition during 2009 of Hercules, an indirect wholly-owned subsidiary of Ashland. Adjustments to the recorded litigation reserves and related insurance receivables are recorded within the discontinued operations caption and continue periodically. During 2015, Ashland recorded an after-tax gain of $120 million within discontinued operations due to the January 2015 asbestos insurance settlement. See Note N for further discussion of Ashland’s asbestos-related activity.

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

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

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



(In millions)	2017			2016			2015
Income (loss) from discontinued operations
Valvoline	$	240		$	444		$	320
Asbestos-related litigation	(31		)	(37		)	132
Water Technologies	1			7			(3		)
Distribution	(5		)	(2		)	(3		)
Gain on disposal of discontinued operations
Water Technologies	—			—			4
Income before taxes	205			412			450
Income tax benefit (expense)
Benefit (expense) related to income (loss) from discontinued operations
Valvoline	(81		)	(158		)	(117		)
Asbestos-related litigation	6			7			(22		)
Water Technologies	1			(7		)	2
Distribution	2			1			1
Benefit related to gain on disposal of discontinued operations
Water Technologies	—			—			4
Distribution	—			—			3
Income from discontinued operations (net of taxes)	$	133		$	255		$	321

Valvoline Separation

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



(In millions)	2017 (a)			2016			2015
Income from discontinued operations
attributable to Valvoline
Sales	$	1,237		$	1,929		$	1,967
Cost of sales	(750		)	(1,168		)	(1,282		)
Selling, general and administrative expense	(234		)	(314		)	(336		)
Research and development expense	(8		)	(13		)	(11		)
Equity and other income	17			20			8
Operating income of discontinued operations	262			454			346
Net loss on acquisitions and divestitures	—			(1		)	(26		)
Net interest and other financing expense	(22		)	(9		)	—
Pretax income of discontinued operations	240			444			320
Income tax expense	(81		)	(158		)	(117		)
Income from discontinued operations	$	159		$	286		$	203


(a)	Results in 2017 reflect only 224 days of activity since Valvoline was fully distributed on May 12, 2017, as previously discussed.

The following table presents the captions of assets and liabilities of Valvoline that are presented as discontinued operations within Ashland's Consolidated Balance Sheet as of September 30, 2016.



(In millions)	2016
Cash	$	171
Accounts receivable, net	387
Inventories	131
Other current assets	25
Current assets of discontinued operations	$	714

Net property, plant and equipment	$	324
Goodwill	264
Equity and other unconsolidated investments	26
Deferred income taxes	347
Other noncurrent assets	92
Noncurrent assets of discontinued operations	$	1,053

Current portion of long-term debt	$	19
Trade and other payables	360
Current liabilities of discontinued operations	$	379

Long-term debt	$	730
Employee benefit obligations	886
Other long-term liabilities	99
Noncurrent liabilities of discontinued operations	$	1,715

Equity
Noncontrolling interest	$	(182	)

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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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FAIR VALUE MEASUREMENTS

12 Months Ended

Sep. 30, 2017

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 September 30, 2017. For additional information on fair value hierarchy measurements of pension plan asset holdings, see Note M.



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

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


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


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

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



			Quoted prices
					in active		Significant
					markets for		other		Significant
					identical		observable		unobservable
	Carrying		Total fair		assets		inputs		inputs
(In millions)	value		value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	1,017	$	1,017	$	1,017	$	—	$	—
Restricted investments (a)	322		322		322		—		—
Deferred compensation investments (b)	150		150		—		150		—
Investments of captive insurance company (b)	4		4		4		—		—
Foreign currency derivatives	3		3		—		3		—
Total assets at fair value	$	1,496	$	1,496	$	1,343	$	153	$	—

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


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


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

Restricted investments

As discussed in Note A, Ashland maintains certain investments in a restricted renewable annual trust for the purpose of paying future asbestos indemnity and defense costs. The investments are designated as available-for-sale securities, classified as Level 1 measurements within the fair value hierarchy. These securities were classified primarily as noncurrent restricted investment assets, with $30 million classified within other current assets, in the Consolidated Balance Sheets. The following table provides a summary of the activity within the available-for-sale securities portfolio as of September 30, 2017 and 2016:



(In millions)	2017			2016
Original cost	$	335		$	335
Accumulated investment income
and disbursements, net	(24		)	(3		)
Adjusted cost (a)	311			332
Investment income (b)	9			8
Unrealized gain	35			11
Realized gain	2			—
Settlement funds	2			4
Disbursements	(27		)	(33		)
Fair value	$	332		$	322

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


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

The following table presents gross unrealized gains and losses for the available-for-sale securities as of September 30, 2017 and 2016:



			Gross		Gross
(In millions)	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
As of September 30, 2017
Demand Deposit	9		—		—		9
Equity Mutual Fund	168		34		—		202
Corporate bond Mutual Fund	120		1		—		121
Fair value	$	297	$	35	$	—	$	332

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 September 30, 2017 and 2016 were recognized within accumulated other comprehensive income (AOCI). Ashland invests in highly-rated investment grade mutual funds. No other-than-temporary impairment was recognized in AOCI during 2017 and 2016.

The following table presents the investment income, realized gains and disbursements related to the investments within the portfolio during 2017, 2016 and 2015.



(In millions)	2017			2016			2015
Investment income	$	9		$	8		$	3
Realized gains	2			—			—
Disbursements	(27		)	(33		)	(6		)

Deferred compensation investments

Deferred compensation investments consist of Level 2 measurements within the fair value hierarchy which are comprised primarily of a guaranteed interest fund, a common stock index fund and an intermediate 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 2017, 2016 and 2015 within the Statements of Consolidated Comprehensive Income.



(In millions)	2017		2016		2015
Foreign currency derivative gain (loss)	$	9	$	2	$	(17	)

The following table summarizes the fair values of the outstanding foreign currency derivatives as of September 30, 2017 and 2016 included in accounts receivable and accrued expenses and other liabilities of the Consolidated Balance Sheets.



(In millions)	2017		2016
Foreign currency derivative assets	$	2	$	3
Notional contract values	79		325

Foreign currency derivative liabilities	$	36	$	4
Notional contract values	1,601		528

Other financial instruments

At September 30, 2017 and 2016, Ashland’s long-term debt (including current portion and excluding debt issuance cost discounts) had a carrying value of $2,615 million and $2,345 million, respectively, compared to a fair value of $2,768 million and $2,558 million, respectively. The fair values of long-term debt are based on quoted market prices or, if market prices are not available, the present values of the underlying cash flows discounted at Ashland’s incremental borrowing rates, which are deemed to be Level 2 measurements within the fair value hierarchy.

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

PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Sep. 30, 2017

PROPERTY, PLANT AND EQUIPMENT

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



(In millions)	2017			2016
Land	$	150		$	151
Buildings	547			528
Machinery and equipment	2,840			2,667
Construction in progress	225			269
Total property, plant and equipment (gross)	3,762			3,615
Accumulated depreciation (a)	(1,792		)	(1,715		)
Total property, plant and equipment (net)	$	1,970		$	1,900


(a)	As of September 30, 2017 and 2016, accumulated depreciation included impairment charges to buildings and machinery and equipment of $1 million and $9 million, respectively, related to Intermediates and Solvents. See Note H for more information.

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



(In millions)	2017		2016		2015
Depreciation	$	219	$	226	$	228
Capitalized interest	1		1		2

Accelerated Depreciation

During 2017, Ashland committed to a plan to reorganize certain operations which resulted in the closure of a manufacturing facility that was previously operational. Due to this closure, depreciation included $13 million of accelerated depreciation for the remaining value of this facility primarily related to machinery and equipment. Also during 2017, the termination of a contract at a manufacturing facility resulted in $1 million of accelerated depreciation for the remaining value of the related machinery and equipment. During 2016 and 2015, depreciation included $4 million and $6 million, respectively, of accelerated depreciation related to the restructuring plan of an existing manufacturing facility. All of these charges related to the Specialty Ingredients reportable segment and were recorded within the cost of sales caption of the Statements of Consolidated Comprehensive Income.

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

GOODWILL AND OTHER INTANGIBLES

12 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

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. Ashland determined that its reporting units for the allocation of goodwill are its three reportable segments: Specialty Ingredients, Composites and Intermediates and Solvents.

As part of the goodwill impairment assessment, Ashland compares the carrying value of each reporting unit to its respective estimated fair value. Ashland makes various estimates and assumptions in determining the estimated fair values of those units through the use of a combination of discounted cash flow models and valuations based on earnings multiples for guideline public companies in each reporting unit’s industry peer group. Discounted cash flow models are highly reliant on various assumptions. Significant assumptions Ashland utilized in these models for the current year included: projected business results and future industry direction, long-term growth factors and weighted-average cost of capital. Ashland uses assumptions that it deems to be reasonable estimates of likely future events and compares the total fair values of each reporting unit to Ashland’s market capitalization, and implied control premium, to determine if the fair values are reasonable compared to external market indicators. Subsequent changes in these key assumptions could affect the results of future goodwill impairment reviews. In conjunction with the July 1, 2017 annual assessment of goodwill, Ashland’s valuation techniques did not indicate any impairment existed for its reporting units.

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

Ashland’s assessment of an impairment charge on any of these remaining assets currently classified as having indefinite lives, including goodwill, could result in additional impairment charges in future periods if any or all of the following events were to occur with respect to a particular reporting unit: a significant change in projected business results, a divestiture decision, increase in Ashland’s weighted-average cost of capital rates, decrease in growth rates or other assumptions, economic deterioration that is more severe or of a longer duration than anticipated, or another significant economic event.

The following is a progression of goodwill by reportable segment for the years ended September 30, 2017 and 2016.



	Specialty					Intermediates
(In millions)	Ingredients			Composites		and Solvents			Total
Balance at September 30, 2015	$	2,004		$	142	$	171		$	2,317
Divestiture (a)	(10		)	—		—			(10		)
Impairment	—			—		(171		)	(171		)
Currency translation	(3		)	5		—			2
Balance at September 30, 2016	1,991			147		—			2,138
Acquisition (b)	287			—		—			287
Currency translation	37			3		—			40
Balance at September 30, 2017	$	2,315		$	150	$	—		$	2,465


(a)	Divestiture caption represents the amount of goodwill related to the Specialty Ingredients joint venture during 2016. See Note D for more information.


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

Other intangible assets

Intangible assets principally consist of trademarks and trade names, intellectual property, and customer relationships. Intangible assets classified as finite are amortized on a straight-line basis over their estimated useful lives. The cost of trademarks and trade names is amortized principally over 3 to 25 years, intellectual property over 5 to 25 years and customer and supplier relationships over 3 to 24 years.

As of September 30, 2017 and 2016, certain intangible assets within trademarks and tradenames were classified as indefinite-lived and had a balance of $301 million. During 2015, there was an impairment of certain IPR&D assets associated with the acquisition of International Specialty Products Inc. (ISP) of $11 million, which was classified within the research and development expense caption of the Statements of Consolidated Comprehensive Income. This impairment represented Level 2 nonrecurring fair value measurements.

Ashland annually reviews indefinite-lived intangible assets for possible impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. In conjunction with the July 1, 2017 annual assessment of indefinite-lived intangible assets, Ashland’s models did not indicate any impairment for indefinite-lived intangible assets. Intangible assets were comprised of the following as of September 30, 2017 and 2016.



	2017							2016
	Gross					Net		Gross					Net
	carrying		Accumulated			carrying		carrying		Accumulated			carrying
(In millions)	amount		amortization			amount		amount		amortization			amount
Definite-lived intangible assets
Trademarks and trade names	$	67	$	(22	)	$	45	$	40	$	(19	)	$	21
Intellectual property	757		(326		)	431		667		(273		)	394
Customer and supplier relationships	777		(235		)	542		543		(198		)	345
Total definite-lived intangible assets (a)	1,601		(583		)	1,018		1,250		(490		)	760

Indefinite-lived intangible assets
Trademarks and trade names	301		—			301		301		—			301
Total intangible assets	$	1,902	$	(583	)	$	1,319	$	1,551	$	(490	)	$	1,061


(a)	The gross carrying amount of the definite-lived intangible assets increased significantly during 2017, primarily due to the acquisition of Pharmachem. See Note C for more information.

Amortization expense recognized on intangible assets was $82 million for 2017, $76 million for 2016 and $78 million for 2015, and is primarily included in the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income. As of September 30, 2017, all of Ashland’s intangible assets that had a carrying value were being amortized except for certain trademarks and trade names that have been determined to have indefinite lives. Estimated amortization expense for future periods is $93 million in 2018, $89 million in 2019, $88 million in 2020, $87 million in 2021 and $86 million in 2022. 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

12 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

DEBT

The following table summarizes Ashland’s current and long-term debt at September 30, 2017 and 2016.



(In millions)	2017			2016
4.750% notes, due 2022	$	1,082		$	1,121
Term Loan B, due 2024	599			—
6.875% notes, due 2043	376			376
Term Loan A, due 2022	250			—
Term Loan A, due 2020	250			—
Revolving Credit Facility	173			—
Accounts receivable securitization	56			—
6.50% junior subordinated notes, due 2029	51			140
Other international loans	—			20
Medium-term notes, due 2019, interest of 9.4% at September 30, 2016	5			5
Term Loan, due 2017	—			150
3.875% notes, due 2018	—			700
Other (a)	(23		)	(17		)
Total debt	2,819			2,495
Short-term debt (includes current portion of long-term debt)	(235		)	(170		)
Long-term debt (less current portion and debt issuance costs)	$	2,584		$	2,325


(a)	Other includes $25 million and $20 million of debt issuance costs as of September 30, 2017 and 2016, respectively.

At September 30, 2017, Ashland’s total debt had an outstanding principal balance of $2,897 million, discounts of $53 million and debt issuance costs of $25 million. The scheduled aggregate maturities of long-term debt for the next five fiscal years (including the current portion and excluding debt issuance costs) are as follows: $6 million in 2018, $11 million in 2019, $269 million in 2020, $56 million in 2021 and $1,279 million in 2022.

Credit Agreements and Refinancing

2017 Credit Agreement

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

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

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

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

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

Senior notes refinancing, 2015 Senior Credit Agreement and 2016 Amendment

During June of 2015, Ashland completed certain refinancing transactions related to the $600 million 3.000% senior notes due in 2016 (2016 Senior Notes). Ashland commenced and completed a cash tender offer to purchase for cash any and all of its outstanding 2016 Senior Notes. At the close of the tender offer, $550 million aggregate principal amount of the 2016 Senior Notes was tendered by note holders, representing approximately 92% of the outstanding 2016 Senior Notes, which have been purchased by Ashland. Subsequently, Ashland redeemed the remaining balance of the 2016 Senior Notes of $50 million on July 23, 2015.

In connection with the tender offer and redemption, in June 2015, Ashland entered into a new Credit Agreement (the 2015 Senior Credit Agreement). The 2015 Senior Credit Agreement replaced the $1.2 billion senior unsecured revolving credit facility (the 2013 Senior Credit Facility), and was comprised of a new five-year senior unsecured revolving credit facility in an aggregate amount of $1.2 billion (the 2015 Revolving Credit Facility), which included a $250 million letter of credit sublimit and a $100 million swing line loan sublimit, and a five-year senior unsecured term loan facility in an aggregate principal amount of $1.1 billion (the 2015 term loan facility). The 2015 Senior Credit Agreement was not guaranteed, was unsecured and could be prepaid at any time without premium or penalty.

At Ashland’s option, borrowings under the 2015 Revolving Credit Facility bore interest at either LIBOR or an alternate base rate, in each case plus the applicable interest rate margin. The loans’ interest rate fluctuated between LIBOR plus 1.375% per annum and LIBOR plus 2.50% per annum (or between the alternate base rate plus 0.375% per annum and the alternate base rate plus 1.50% per annum), based upon Ashland’s corporate credit ratings or the consolidated gross leverage ratio (as defined in the 2015 Senior Credit Agreement) (whichever yields a lower applicable interest rate margin) at such time. In addition, Ashland was required to pay fees of 0.25% per annum on the daily unused amount of the 2015 Revolving Credit Facility through and including June 30, 2015, and thereafter the fee rate fluctuated between 0.175% and 0.40% per annum, based upon Ashland’s corporate credit ratings or the consolidated gross leverage ratio (whichever yields a lower fee rate).

During 2015, Ashland used the proceeds from borrowings under the $1.1 billion term loan facility along with cash on hand (i) to fund the tender offer of the 2016 Senior Notes, (ii) to prepay in full the outstanding loans under the 2013 Senior Credit Facility, (iii) to pay accrued interest, fees and expenses under the 2013 Senior Credit Facility and the 2016 Senior Notes, (iv) to contribute funds to the U.S. pension plans impacted by the pension plan settlement program, and (v) to pay fees and expenses incurred in connection with the entry into the 2015 Senior Credit Agreement. As a result of the tender offer and redemption, Ashland recognized a $9 million charge related to early redemption premium payments, which is included in the net interest and other financing expense caption of the Statements of Consolidated Comprehensive Income (Loss) in 2015.

Ashland incurred $10 million of new debt issuance costs in connection with the 2015 Senior Credit Agreement, of which $2 million was expensed immediately during 2015 within the net interest and other financing expense caption of the Statements of Consolidated Comprehensive Income. The remaining balance was amortized over the term of the 2015 Senior Credit Agreement using the effective interest method. Additionally, as a result of the termination of the 2013 Senior Credit Facility and the repayment of the 2016 Senior Notes, Ashland recognized a $2 million charge during 2015 for the accelerated amortization of previously capitalized debt issuance costs, which is included in the net interest and other financing expense caption of the Statements of Consolidated Comprehensive Income.

During July 2016, Ashland amended the 2015 Senior Credit Agreement to permit the Reorganization and the series of events relating to the separation of Valvoline Inc. Additionally, the amendment provided that if the aggregate principal amount of the Valvoline debt reaches $750 million, Ashland would be required to use the net proceeds of such borrowings to repay the 2015 term loan facility and/or permanently reduce its existing revolving credit commitments under the 2015 Senior Credit Agreement in an aggregate amount of up to $1 billion. As a result of the July 2016 amendment and the Valvoline debt borrowings in connection with the separation, Ashland reduced its revolving borrowing capacity to $800 million.

The 2015 Term Loan Facility balance was repaid in full in connection with the combined Ashland and Valvoline financing activities during September 2016. In connection with these transactions, Ashland recognized a $6 million charge for the accelerated amortization of previously capitalized debt issuance costs, which is included in the net interest and other financing expense caption of the Statements of Consolidated Comprehensive Income (Loss) in 2016.

Other Financing Activities

Redemption of 3.875% notes due 2018

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

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

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

6.50% junior subordinated notes due 2029

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

Accounts receivable securitization

On August 31, 2012, Ashland entered into a $350 million accounts receivable securitization facility pursuant to (i) a Sale Agreement, among Ashland and certain of its direct and indirect subsidiaries (each an Originator and collectively, the Originators) and CVG Capital III LLC, a wholly-owned “bankruptcy remote” special purpose subsidiary of the Originators (CVG) and (ii) a Transfer and Administration Agreement, among CVG, each Originator, Ashland, as Master Servicer, certain Conduit Investors, Uncommitted Investors, Letter of Credit Issuers, Managing Agents, Administrators and Committed Investors, and The Bank of Nova Scotia, as agent for various secured parties (the Agent). The Transfer and Administration Agreement had a term of three years, but was extendable at the discretion of Ashland and the Investors. During 2016, the termination date of the commitments under the Transfer and Administration Agreement was extended from December 31, 2015, the previous termination extension date, to March 22, 2017. During the March 2017 quarter, this facility was extended for an additional year with similar terms as the previous facility agreement.

Under the Sale Agreement, each Originator will transfer, on an ongoing basis, certain of its accounts receivable, certain related assets and the right to the collections on those accounts receivable to CVG. Under the terms of the Transfer and Administration Agreement, CVG could, from time to time, obtain up to $350 million (in the form of cash or letters of credit for the benefit of Ashland and its subsidiaries) from the Conduit Investors, the Uncommitted Investors and/or the Committed Investors through the sale of an undivided interest in such accounts receivable, related assets and collections. Subsequently during 2014 and 2015, the available funding for qualifying receivables under the accounts receivable securitization facility was reduced from $350 million to $275 million during 2014 and from $275 million to $250 million during 2015 due to the divestitures that occurred during the fiscal years. The accounts receivable securitization facility was reduced from $250 million to $100 million when Valvoline was removed as an Originator as part of the combined Ashland and Valvoline financing activities in September 2016. Ashland accounts for the securitization facility as secured borrowings, and the receivables sold pursuant to the facility are included in the Consolidated Balance Sheets as accounts receivable. Fundings under the Transfer and Administration Agreement will be repaid as accounts receivable are collected, with new fundings being advanced (through daily reinvestments) as new accounts receivable are originated by the Originators and transferred to CVG, with settlement generally occurring monthly. Ashland continues to classify any borrowings under this facility as a short-term debt instrument within the Consolidated Balance Sheets. Once sold to CVG, the accounts receivable, related assets and rights to collection described above are separate and distinct from each Originator’s own assets and are not available to its creditors should such Originator become insolvent. Substantially all of CVG’s assets have been pledged to the Agent in support of its obligations under the Transfer and Administration Agreement.

At September 30, 2017 and 2016, the outstanding amount of accounts receivable transferred by Ashland to CVG was $155 million and $133 million, respectively. There were $56 million of borrowings under the facility as of September 30, 2017, while Ashland had no borrowings under the facility as of September 30, 2016. The weighted-average interest rate for this instrument was 2.8% for 2017 and 1.5% for 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 that matured on February 15, 2017. This term loan was drawn in full as of September 30, 2016 and was fully repaid during 2017.

Other debt

At September 30, 2017 and 2016, Ashland held other debt totaling $58 million and $168 million, respectively, comprised primarily of the 6.50% notes due 2029, other short-term international loans and a medium-term note.

Remaining borrowing capacity

The borrowing capacity remaining under the 2017 Revolving Credit Facility was $579 million due to an outstanding balance of $173 million, as well as a reduction of $48 million for letters of credit outstanding at September 30, 2017. Ashland's total borrowing capacity at September 30, 2017 was $614 million, which included $35 million of available capacity under 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 September 30, 2017, Ashland was in compliance with all debt agreement covenant restrictions.

The maximum consolidated net leverage ratio permitted under Ashland’s most recent credit agreement (the 2017 Credit Agreement) is 4.50. The 2017 Credit Agreement defines the consolidated net leverage ratio as the ratio of consolidated indebtedness minus unrestricted cash and cash equivalents to consolidated EBITDA (Covenant Adjusted EBITDA) for any measurement period. In general, the 2017 Credit Agreement defines Covenant Adjusted EBITDA as net income plus consolidated interest charges, taxes, depreciation and amortization expense, fees and expenses related to capital market transactions and proposed or actual acquisitions and divestitures, restructuring and integration charges, noncash stock and equity compensation expense, and any other nonrecurring expenses or losses that do not represent a cash item in such period or any future period; less any noncash gains or other items increasing net income. The computation of Covenant Adjusted EBITDA differs from the calculation of EBITDA and Adjusted EBITDA, which have been reconciled on page M-7. In general, consolidated indebtedness includes debt plus all purchase money indebtedness, banker’s acceptances and bank guaranties, deferred purchase price of property or services, attributable indebtedness and guarantees.

The minimum required consolidated interest coverage ratio under the 2017 Credit Agreement during is 3.0. The 2017 Credit Agreement defines the consolidated interest coverage ratio as the ratio of Covenant Adjusted EBITDA to consolidated interest charges for any measurement period.

At September 30, 2017, Ashland’s calculation of the consolidated net leverage ratio was 3.8, which is below the maximum consolidated net leverage ratio permitted under the 2017 Credit Agreement of 4.50. At September 30, 2017, Ashland’s calculation of the consolidated interest coverage ratio was 4.7, which exceeds the minimum required consolidated ratio of 3.0.

Guarantee of Senior Notes

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 3.875% notes due 2018 (which were fully repaid during the current year), 4.750% notes due 2022 and 6.875% notes due 2043 (collectively referred to as 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.).

On October 20, 2016, Ashland received the requisite consents with respect to its consent solicitation from the holders of the Senior Notes to certain amendments to the reporting covenants in the indentures governing the Senior Notes. Following receipt of the consents, Ashland LLC, as issuer, Ashland Global Holdings Inc. and the trustee, entered into two supplemental indentures that (1) modified the applicable reporting covenants contained in the indentures governing the Senior Notes to provide that so long as any parent entity of Ashland LLC guarantees the Senior Notes, the reports, information and other documents required to be filed and furnished to holders of the Notes pursuant to the applicable indenture may, at the option of Ashland LLC, be filed by and be those of such parent entity rather than Ashland LLC and (2) provided for the guarantee of the Senior Notes by Ashland.

Subsequent to the final distribution of Valvoline Inc. during May 2017, there were no longer any significant subsidiaries of Ashland Global Holdings Inc. other than the subsidiary issuer (Ashland LLC). As a result, Ashland is no longer required to provide condensed consolidated financial information for Ashland Global Holdings Inc., Ashland LLC and all other non-guarantor subsidiaries.

Net interest and other financing expense (income)



(In millions)	2017			2016			2015
Interest expense (a)	$	232		$	180		$	166
Interest income	(4		)	(5		)	(6		)
Available-for-sale securities income (b)	(11		)	(8		)	(3		)
Other financing costs (c)	17			6			17
	$	234		$	173		$	174


(a)	Includes $101 million, $6 million and $4 million of accelerated accretion and/or amortization for original issue discounts and debt issuance costs during 2017, 2016 and 2015, respectively.


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


(c)	Includes costs of $14 million related to early redemption premium payments of the 2022 and 2018 Senior Notes and a net gain of $5 million related to the repayment of the 2029 Notes during 2017. Includes costs of $9 million related to early redemption premium payments for the tender and redemption of the 2016 Senior Notes during 2015.

The following table details the debt issuance cost and original issue discount amortization included in interest expense during 2017, 2016 and 2015.



(In millions)	2017		2016		2015
Normal amortization	$	8	$	12	$	14
Accelerated amortization (a)	101		6		4
Total	$	109	$	18	$	18


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

LEASE COMMITMENTS

12 Months Ended

Sep. 30, 2017

Leases [Abstract]

LEASE COMMITMENTS

Ashland and its subsidiaries are lessees of office buildings, transportation equipment, warehouses and storage facilities, other equipment, facilities and properties under leasing agreements that expire at various dates. Capitalized lease obligations are not significant and are included in long-term debt while capital lease assets are included in property, plant and equipment. Future minimum rental payments at September 30, 2017 were $31 million in 2018, $33 million in 2019, $23 million in 2020, $17 million in 2021, $15 million in 2022 and $99 million in 2023 and later years. Rental expense under operating leases for continuing operations was as follows:



(In millions)	2017			2016			2015
Minimum rentals (including rentals under short-term leases)	$	48		$	50		$	45
Contingent rentals	—			1			1
Sublease rental income	(1		)	(1		)	(1		)
	$	47		$	50		$	45

INCOME TAXES

12 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

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



(In millions)	2017			2016			2015
Current
Federal	$	(10	)	$	(56	)	$	(125	)
State	—			(8		)	(16		)
Foreign	46			68			52
	36			4			(89		)
Deferred	(29		)	(29		)	(50		)
Income tax expense (benefit)	$	7		$	(25	)	$	(139	)

Deferred income taxes are provided for income and expense items recognized in different years for tax and financial reporting purposes. As of September 30, 2017, management intends to indefinitely reinvest approximately $1.5 billion of foreign earnings. Because these earnings are considered indefinitely reinvested, no U.S. tax provision has been accrued related to the repatriation of these earnings, and it is not practicable to estimate the amount of U.S. tax that might be payable if these earnings were ever to be remitted.

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



(In millions)	2017			2016
Deferred tax assets
Foreign net operating loss carryforwards (a)	$	69		$	75
Employee benefit obligations	47			46
Environmental, self-insurance and litigation reserves (net of receivables)	192			209
State net operating loss carryforwards (net of unrecognized tax benefits) (b)	62			44
Compensation accruals	72			67
Credit carryforwards (net of unrecognized tax benefits) (c)	26			45
Other items	47			13
Valuation allowances (d)	(122		)	(136		)
Total deferred tax assets	393			363
Deferred tax liabilities
Goodwill and other intangibles (e)	432			343
Property, plant and equipment	302			295
Unremitted earnings	6			5
Total deferred tax liabilities	740			643
Net deferred tax liability	$	(347	)	$	(280	)


(a)	Gross net operating loss carryforwards of $219 million will expire in future years beyond 2019 or have no expiration.


(b)	Apportioned net operating loss carryforwards generated of $1.5 billion will expire in future years as follows: $64 million in 2018, $67 million in 2019 and the remaining balance in other future years.


(c)	Credit carryforwards consist primarily of foreign tax credits of $4 million expiring in future years beyond 2019, research and development credits of $13 million expiring in future years beyond 2019 and alternative minimum tax credits of $18 million with no expiration date.


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


(e)	The total gross amount of goodwill as of September 30, 2017 expected to be deductible for tax purposes is $25 million.

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



(In millions)	2017			2016			2015
Income (loss) from continuing operations before income taxes
United States	$	(376	)	$	(557	)	$	(424	)
Foreign	278			249			273
Loss from continuing operations before income taxes	$	(98	)	$	(308	)	$	(151	)

Income taxes computed at U.S. statutory rate (35%)	$	(34	)	$	(108	)	$	(53	)
Increase (decrease) in amount computed resulting from
Net gain on divestitures	—			—			10
Uncertain tax positions	12			24			22
Foreign dividends and deemed dividend inclusions	124			111			102
Foreign tax credits	(29		)	(93		)	(87		)
Valuation allowance changes (a)	(3		)	33			(27		)
Research and development credits	(6		)	(9		)	(7		)
State taxes (b)	(15		)	(3		)	(23		)
Goodwill impairment	—			55			—
International rate differential	(63		)	(57		)	(61		)
Other items (c)	21			22			(15		)
Income tax expense (benefit)	$	7		$	(25	)	$	(139	)

(a)

2017 includes $25 million of benefit for the release of a foreign tax credit valuation allowance and $22 million of expense for state, foreign and domestic federal deferred tax asset valuation allowances net of a NOL write-off offset; 2016 relates to foreign tax credit carryforward and state deferred tax asset valuation allowance establishments; 2015 primarily relates to state deferred tax asset valuation allowance releases.


(b)	2017 includes $6 million of benefit for state tax rate changes primarily related to the final distribution of Valvoline.

(c)

2017 includes $7 million of expense related to foreign withholding taxes, $5 million of expense for the write-off of a prepaid asset related to an intercompany transaction with a Valvoline legal entity and $4 million of expense for non-deductible transaction costs primarily related to the Valvoline spin-off and $6 million of benefit for certain other domestic permanent items; 2016 includes $25 million of expense for costs associated with the separation of Valvoline; 2015 primarily includes non-recurring favorable permanent differences.

The 2017 effective tax rate was impacted by jurisdictional income mix, $87 million of tax expense related to deemed dividend inclusions and a $25 million tax benefit for the reversal of a valuation allowance related to the utilization of foreign tax credits.

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

The 2015 effective tax rate was impacted by jurisdictional income mix and net favorable items predominantly due to the release of certain valuation allowances related to state deferred tax assets. These favorable adjustments were partially offset by an accrual for an unrecognized tax benefit and tax related to certain global restructuring steps.

Unrecognized tax benefits

U.S. GAAP prescribes a recognition threshold and measurement attribute for the accounting and financial statement disclosure of tax positions taken or expected to be taken in a tax return. The evaluation of a tax position is a two-step process. The first step requires Ashland to determine whether it is more likely than not that a tax position will be sustained upon examination based on the technical merits of the position. The second step requires Ashland to recognize in the financial statements each tax position that meets the more likely than not criteria, measured at the amount of benefit that has a greater than 50% likelihood of being realized. Ashland had $194 million and $168 million of unrecognized tax benefits at September 30, 2017 and 2016, respectively. As of September 30, 2017, the total amount of unrecognized tax benefits that, if recognized, would affect the tax rate for continuing and discontinued operations was $171 million. The remaining unrecognized tax benefits relate to tax positions for which ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Recognition of these tax benefits would not have an impact on the effective tax rate.

Ashland recognizes interest and penalties related to uncertain tax positions as a component of income tax expense (benefit) in the Statements of Consolidated Comprehensive Income. Such interest and penalties totaled a $3 million expense in 2017, $5 million expense in 2016 and $1 million expense in 2015. Ashland had $26 million and $21 million in interest and penalties related to unrecognized tax benefits accrued as of September 30, 2017 and 2016, respectively.

Changes in unrecognized tax benefits were as follows:



(In millions)
Balance at September 30, 2015	$	144
Increases related to positions taken on items from prior years	10
Decreases related to positions taken on items from prior years	(4		)
Increases related to positions taken in the current year	22
Lapse of statute of limitations	(2		)
Settlement of uncertain tax positions with tax authorities	(2		)
Balance at September 30, 2016	168
Increases related to positions taken on items from prior years	8
Decreases related to positions taken on items from prior years	(3		)
Increases related to positions taken in the current year	14
Lapse of statute of limitations	(3		)
Acquisition of Pharmachem	11
Settlement of uncertain tax positions with tax authorities	(1		)
Balance at September 30, 2017 (a)	$	194


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

From a combination of statute expirations and audit settlements in the next twelve months, Ashland expects a decrease in the amount of accrual for uncertain tax positions of between $22 million and $32 million for continuing operations. For the remaining balance as of September 30, 2017, it is reasonably possible that there could be material changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues, reassessment of existing uncertain tax positions or the expiration of applicable statute of limitations; however, Ashland is not able to estimate the impact of these items at this time.

Ashland or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. Foreign taxing jurisdictions significant to Ashland include Brazil, Canada, China, Germany, Mexico, Netherlands, Spain, Switzerland and United Kingdom. Ashland is subject to U.S. federal income tax examinations by tax authorities for periods after September 30, 2011 and U.S. state income tax examinations by tax authorities for periods after September 30, 2003. With respect to countries outside of the United States, with certain exceptions, Ashland’s foreign subsidiaries are subject to income tax audits for years after 2006.

EMPLOYEE BENEFIT PLANS

12 Months Ended

Sep. 30, 2017

EMPLOYEE BENEFIT PLANS

Plan Transfers

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

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

Pension plans

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

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

Other postretirement benefit plans

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

Postretirement health care plans include a limit on Ashland’s share of costs for recent and future retirees. The assumed pre-65 health care cost trend rate as of September 30, 2017 was 7.5% and continues to be reduced to 4.50% in 2037 and thereafter. The assumptions used to project the liability anticipate future cost-sharing changes to the written plans that are consistent with the increase in health care cost.

Change in applying discount rate to measure benefit costs

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

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

Plan Amendments and Remeasurements

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

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

During 2015, Ashland was required to remeasure a non-U.S. pension plan due to the exit of Water Technologies’ employees from the plan. As a result of the remeasurement, Ashland recognized an actuarial loss of $9 million within the Statements of Consolidated Comprehensive Income.

Net periodic benefit costs (income) allocation

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

The following table summarizes the components of pension and other postretirement benefit costs for continuing operations and the assumptions used to determine net periodic benefit costs (income) for the plans. During 2016 and 2015, certain curtailments and actuarial adjustments related to plans that transferred to Valvoline Inc. were required, in accordance with US GAAP, to be recorded within Ashland’s continuing operations within the Statements of Consolidated Comprehensive Income (Loss) and totaled $78 million and $145 million, respectively. As a result, comparisons between 2017 to the previous fiscal years within the components of pension and other postretirement benefit cost table, including weighted-average plan assumptions, are significantly impacted by the inclusion of these costs and plans within continuing operations during 2016 and 2015.



	Pension benefits									Other postretirement benefits
(In millions)	2017			2016			2015			2017			2016			2015
Net periodic benefit costs (income)
Service cost	$	8		$	21		$	21		$	1		$	1		$	1
Interest cost	8			94			144			2			3			7
Curtailment, settlement and other	—			(64		)	(5		)	—			(34		)	—
Expected return on plan assets	(11		)	(149		)	(177		)	—			—			—
Amortization of prior service credit	—			(1		)	(3		)	—			(11		)	(15		)
Actuarial loss	—			208			212			6			32			1
	$	5		$	109		$	192		$	9		$	(9	)	$	(6	)
Weighted-average plan assumptions (a)
Discount rate for service cost (b)	1.92		%	3.95		%	4.22		%	3.93		%	4.07		%	3.81		%
Discount rate for interest cost (b)	2.22		%	3.30		%	4.22		%	2.86		%	2.57		%	3.81		%
Rate of compensation increase	2.80		%	3.04		%	3.01		%
Expected long-term rate of
return on plan assets	3.41		%	6.71		%	7.30		%


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


(b)	Weighted-average discount rates in 2017 and 2016 reflect the adoption of the full yield curve approach.

The following table shows other changes in prior service credit recognized in accumulated other comprehensive income.



	Pension				Postretirement
(In millions)	2017		2016		2017		2016
Prior service cost (credit)	$	—	$	2	$	—	$	(88	)
Curtailment, settlement and other	—		6		—		39
Amortization of prior service credit	—		1		—		14
Total	$	—	$	9	$	—	$	(35	)

Total recognized in net periodic benefit cost (income)
and accumulated other comprehensive income	$	5	$	118	$	9	$	(44	)

At September 30, 2017, Ashland does not expect to recognize any of the prior service credit in accumulated other comprehensive income as net periodic benefit cost (income) during the next fiscal year.

At September 30, 2017 and 2016, the amounts included in accumulated other comprehensive income are shown in the following table.



	Pension						Postretirement
(In millions)	2017			2016			2017		2016 (a)
Prior service credit	$	(3	)	$	(3	)	$	—	$	(80	)


(a)	Entire amount related to plans that transferred to Valvoline as previously discussed within this Note M. As a result, no Ashland plans had prior service credits as of September 30, 2017.

Obligations and funded status

Actuarial valuations are performed for the pension and other postretirement benefit plans to determine Ashland’s obligation for each plan. In accordance with U.S. GAAP, Ashland recognizes the unfunded status of the plans as a liability in the Consolidated Balance Sheets. Summaries of the change in benefit obligations, plan assets, funded status of the plans, amounts recognized in the balance sheet, and assumptions used to determine the benefit obligations for 2017 and 2016 are as follows.



							Other postretirement
	Pension plans						benefit plans
(In millions)	2017			2016			2017			2016
Change in benefit obligations
Benefit obligations at October 1	$	448		$	421		$	59		$	60
Service cost	8			9			1			—
Interest cost	8			11			2			—
Participant contributions	1			1			—			—
Benefits paid	(12		)	(13		)	(6		)	(1		)
Actuarial (gain) loss	(20		)	66			6			—
Foreign currency exchange rate changes	13			(32		)	—			—
Other	17			(1		)	—			—
Curtailment and settlement	(8		)	(14		)	—			—
Benefit obligations at September 30	$	455		$	448		$	62		$	59
Change in plan assets
Value of plan assets at October 1	$	353		$	333		$	—		$	—
Actual return on plan assets	(9		)	64			—			—
Employer contributions (a)	7			8			—			—
Participant contributions	1			1			—			—
Benefits paid	(12		)	(13		)	—			—
Foreign currency exchange rate changes	8			(37		)	—			—
Other	7			(3		)	—			—
Value of plan assets at September 30	$	355		$	353		$	—		$	—

Unfunded status of the plans	$	(100	)	$	(95	)	$	(62	)	$	(59	)

Amounts recognized in the balance sheet
Noncurrent benefit assets	$	27		$	36		$	—		$	—
Current benefit liabilities	(3		)	(4		)	(4		)	(4		)
Noncurrent benefit liabilities	(124		)	(127		)	(58		)	(55		)
Net amount recognized	$	(100	)	$	(95	)	$	(62	)	$	(59	)

Weighted-average plan assumptions
Discount rate	2.66		%	3.39		%	3.66		%	3.42		%
Rate of compensation increase	2.80		%	3.04		%


(a)	Fiscal 2016 excludes $25 million of employer contributions related to plans transferred to Valvoline Inc. as previously discussed within this Note M.

The accumulated benefit obligation for all pension plans was $441 million at September 30, 2017 and $435 million at September 30, 2016. Subsequent to the transfer of plans to Valvoline Inc. on September 1, 2016, all remaining Ashland pension plans are either qualified U.S. or non-US plans. Information for pension plans with an accumulated benefit obligation in excess of plan assets follows:



(In millions)	2017		2016
Projected benefit obligation	$	254	$	242
Accumulated benefit obligation	239		230
Fair value of plan assets	126		112

Plan assets

The expected long-term rate of return on pension plan assets was 3.41% and 6.71% for 2017 and 2016, respectively. The basis for determining the expected long-term rate of return is a combination of future return assumptions for various asset classes in Ashland’s investment portfolio, historical analysis of previous returns, market indices and a projection of inflation.

The following table summarizes the various investment categories that the pension plan assets are invested in and the applicable fair value hierarchy that the financial instruments are classified within these investment categories as of September 30, 2017. For additional information and a detailed description of each level within the fair value hierarchy, see Note F.



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



	Quoted prices
			in active		Significant
			markets for		other		Significant
			identical		observable		unobservable
	Total fair		assets		inputs		inputs
(In millions)	value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	103	$	103	$	—	$	—
Non-U.S. Government securities	111		—		111		—
Corporate debt instruments	99		—		99		—
Corporate stocks	29		—		29		—
Insurance contracts	11		—		11		—
Total assets at fair value	$	353	$	103	$	250	$	—

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

Investments and Strategy

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

The current target asset allocation for the U.S. plans is 50% fixed securities and 50% equity securities. Fixed income securities primarily includes cash and cash equivalents, long duration high grade corporate debt obligations and U.S. government debt obligations. Equity securities are comprised solely of traditional equity investments. Investment managers may employ a limited use of derivatives to gain efficient exposure to markets.

Ashland’s investment strategy and management practices relative to plan assets of non-U.S. plans generally are consistent with those for U.S. plans, except in those countries where investment of plan assets is dictated by applicable regulations. Although the allocation between debt and equity securities may vary based on funding percentages and whether plans are still accruing additional liabilities, the weighted-average asset allocations for Ashland’s U.S. and non-U.S. plans at September 30, 2017 and 2016 by asset category follow.



		Actual at September 30
(In millions)	Target	2017		2016 (a)
Plan assets allocation
Equity securities	15 - 60%	19	%	8	%
Fixed income securities	40 - 85%	81	%	92	%
		100	%	100	%


(a)	The asset allocations were outside of the target range at September 30, 2016 as a result of all U.S. plan assets being held as cash and cash equivalents at that time while Ashland was transitioning the plan assets subsequent to the September transfer of pension plans to Valvoline.

Cash flows

During 2017 and 2016, Ashland contributed $1 million and $21 million, respectively, to its U.S. pension plans and $6 million and $12 million, respectively, to its non-U.S. pension plans. During 2016, all of the contributions to the U.S. pension plans and $4 million of the contributions to the non-U.S. pension plans related to plans that transferred to Valvoline Inc. as previously discussed within this Note M. Ashland expects to contribute approximately $1 million to its U.S. pension plans and $7 million to its non-U.S. pension plans during 2018.

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



				Other
	Pension		postretirement
(In millions)	benefits			benefits
2018	$	19		$	5
2019	16			5
2020	17			5
2021	18			5
2022	18			5
2023 - 2027	101			24

Other plans

Ashland sponsors savings plans to assist eligible employees in providing for retirement or other future needs. Under such plans, company contributions amounted to $26 million in 2017, $35 million in 2016 and $38 million in 2015. Ashland also sponsors various other employee benefit plans, some of which are required by different countries. The total noncurrent liabilities associated with these plans were $9 million and $13 million as of September 30, 2017 and 2016, respectively.

LITIGATION, CLAIMS AND CONTINGENCIES

12 Months Ended

Sep. 30, 2017

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, a former subsidiary. The amount and timing of settlements and number of open claims can fluctuate from period to period. A summary of Ashland asbestos claims activity, excluding Hercules claims, follows.



(In thousands)	2017		2016		2015
Open claims - beginning of year	57		60		65
New claims filed	2		2		2
Claims settled	(1	)	—		—
Claims dismissed	(4	)	(5	)	(7	)
Open claims - end of year	54		57		60

Ashland asbestos-related liability

During the most recent update completed during 2017, it was determined that the liability for Ashland asbestos-related claims should be increased by $36 million. Total reserves for asbestos claims were $419 million at September 30, 2017 compared to $415 million at September 30, 2016.

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



(In millions)	2017			2016			2015
Asbestos reserve - beginning of year	$	415		$	409		$	438
Reserve adjustment	36			37			—
Amounts paid	(32		)	(31		)	(29		)
Asbestos reserve - end of year (a)	$	419		$	415		$	409


(a)	Included $34 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2017 and 2016.

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.

In October 2012, Ashland and Hercules initiated various arbitration proceedings against Underwriters at Lloyd’s, certain London companies and/or Chartis (AIG) member companies seeking to enforce these insurers’ contractual obligations to provide indemnity for asbestos liabilities and defense costs under existing coverage-in-place agreements. In addition, Ashland and Hercules initiated a lawsuit in Kentucky state court against certain Berkshire Hathaway entities (National Indemnity Company and Resolute Management, Inc.) on grounds that these Berkshire Hathaway entities had wrongfully interfered with Underwriters’ and Chartis’ performance of their respective contractual obligations to provide asbestos coverage by directing the insurers to reduce and delay certain claim payments.

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. In exchange, all claims were released against these entities for past, present and future coverage obligations arising out of the asbestos coverage-in-place agreements that were the subject of the pending arbitration proceedings. In addition, as part of this settlement, Ashland and Hercules released all claims against National Indemnity Company and Resolute Management, Inc. in the Kentucky state court action. As a result, the arbitration proceedings and the Kentucky state court action have been terminated.

As a result of this settlement, Ashland recorded an after-tax gain of $120 million within the discontinued operations caption of the Statements of Consolidated Comprehensive Income (Loss) during 2015. The Ashland insurance receivable balance was also reduced as a result of this settlement by $227 million within the Consolidated Balance Sheets.

In addition, during 2015, Ashland placed $335 million of the settlement funds received into a renewable annual trust restricted for the purpose of paying for ongoing and future litigation defense and claim settlement costs incurred in conjunction with asbestos claims.

Ashland entered into settlement agreements totaling $5 million and $4 million with certain insurers during 2017 and 2016, respectively, which resulted in a reduction of the Ashland insurance receivable within the Consolidated Balance Sheets by the same amount.

At September 30, 2017, Ashland’s receivable for recoveries of litigation defense and claim settlement costs from insurers amounted to $155 million (excluding the Hercules receivable for asbestos claims). Receivables from insurers amounted to $151 million at September 30, 2016. During 2017, 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 $15 million increase in the receivable for probable insurance recoveries.

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



(In millions)	2017			2016			2015
Insurance receivable - beginning of year	$	151		$	150		$	402
Receivable adjustment	15			16			(3		)
Insurance settlement	(5		)	(4		)	(227		)
Amounts collected	(6		)	(11		)	(22		)
Insurance receivable - end of year (a)	$	155		$	151		$	150


(a)	Included $14 million and $18 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2017 and 2016, respectively.

Hercules asbestos-related litigation

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



(In thousands)	2017		2016		2015
Open claims - beginning of year	15		20		21
New claims filed	1		1		1
Claims dismissed	(4	)	(6	)	(2	)
Open claims - end of year	12		15		20

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 2017, it was determined that the liability for Hercules asbestos-related claims should be increased by $16 million. Total reserves for asbestos claims were $323 million at September 30, 2017 compared to $321 million at September 30, 2016.

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



(In millions)	2017			2016			2015
Asbestos reserve - beginning of year	$	321		$	311		$	329
Reserve adjustments	16			25			4
Amounts paid	(14		)	(15		)	(22		)
Asbestos reserve - end of year (a)	$	323		$	321		$	311


(a)	Included $14 million and $16 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2017 and 2016, respectively.

Hercules asbestos-related receivables

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

As a result of the January 2015 asbestos insurance settlement previously described, Hercules resolved all disputes with Chartis (AIG) member companies under their existing coverage-in-place agreement for past, present and future Hercules asbestos claims. As a result, during 2015, a $22 million reduction in the insurance receivable balance within the Consolidated Balance Sheets was recorded.

As of September 30, 2017 and 2016, the receivables from insurers amounted to $68 million and $63 million, respectively. During 2017, the annual update of the model used for purposes of valuing the asbestos reserve and its impact on valuation of future recoveries from insurers was completed. This model update resulted in a $5 million increase in the receivable for probable insurance recoveries.

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



(In millions)	2017		2016		2015
Insurance receivable - beginning of year	$	63	$	56	$	77
Receivable adjustment	5		7		1
Insurance settlement	—		—		(22		)
Insurance receivable - end of year	$	68	$	63	$	56

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 $660 million for the Ashland asbestos-related litigation (current reserve of $419 million) and approximately $510 million for the Hercules asbestos-related litigation (current reserve of $323 million), depending on the combination of assumptions selected in the various models. If actual experience is worse than projected, relative to the number of claims filed, the severity of alleged disease associated with those claims or costs incurred to resolve those claims, or actuarial refinement or improvements to the assumptions used within these models are initiated, Ashland may need to further increase the estimates of the costs associated with asbestos claims and these increases could be material over time.

Environmental remediation and asset retirement obligations

Ashland is subject to various federal, state and local environmental laws and regulations that require environmental assessment or remediation efforts (collectively environmental remediation) at multiple locations. At September 30, 2017, such locations included 82 waste treatment or disposal sites where Ashland has been identified as a potentially responsible party under Superfund or similar state laws, 126 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 61 are being actively remediated.

Ashland’s reserves for environmental remediation and related environmental litigation amounted to $163 million at September 30, 2017 compared to $177 million at September 30, 2016, of which $121 million at September 30, 2017 and $134 million at September 30, 2016 were classified in other noncurrent liabilities on the Consolidated Balance Sheets. The remaining reserves were classified in accrued expenses and other liabilities on the Consolidated Balance Sheets.

The following table provides a reconciliation of the changes in the environmental remediation reserves during 2017 and 2016.



(In millions)	2017			2016
Environmental remediation reserve - beginning of year	$	177		$	186
Disbursements	(32		)	(44		)
Revised obligation estimates and accretion	18			35
Environmental remediation reserve - end of year	$	163		$	177

The total reserves for environmental remediation reflect Ashland’s estimates of the most likely costs that will be incurred over an extended period to remediate identified conditions for which the costs are reasonably estimable, without regard to any third-party recoveries. Engineering studies, probability techniques, historical experience and other factors are used to identify and evaluate remediation alternatives and their related costs in determining the estimated reserves for environmental remediation. Ashland continues to discount certain environmental sites and regularly adjusts its reserves as environmental remediation continues. Ashland has estimated the value of its probable insurance recoveries associated with its environmental reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage. At September 30, 2017 and 2016, Ashland’s recorded receivable for these probable insurance recoveries was $15 million and $23 million, respectively, of which $14 million and $15 million, respectively, were classified in other noncurrent assets in the Consolidated Balance Sheets.

Components of environmental remediation expense included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) are presented in the following table for the years ended September 30, 2017, 2016 and 2015.



(In millions)	2017			2016			2015
Environmental expense	$	17		$	33		$	32
Accretion	1			2			4
Legal expense	8			8			6
Total expense	26			43			42

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

(a)

Net expense of $3 million, $2 million and $5 million for the fiscal years ended September 30, 2017, 2016 and 2015, respectively, relates to divested businesses which qualified for treatment as discontinued operations and for which certain environmental liabilities were retained by Ashland. These amounts are classified within the income from discontinued operations caption of the Statements of Consolidated Comprehensive Income.

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 $416 million. The largest reserve for any site is approximately 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 September 30, 2017 and 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 September 30, 2017 and 2016. For additional information on legal proceedings and claims, see the Legal Proceedings section of Form 10-K (Part I, Item 3).

EQUITY ITEMS

12 Months Ended

Sep. 30, 2017

Equity [Abstract]

EQUITY ITEMS

Stock repurchase programs

During 2015, Ashland’s Board of Directors approved a $1 billion share repurchase authorization (the 2015 stock repurchase program) that was set to expire on December 31, 2017. This authorization allows for 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.

During 2017, Ashland’s Board of Directors extended this $1 billion share repurchase authorization indefinitely. As further described in this Note O, there is $500 million currently remaining on this authorization.

Stock repurchase program agreements

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

During 2015, Ashland announced and completed accelerated share repurchase agreements (2015 ASR Agreements) with Deutsche Bank and JPMorgan to repurchase an aggregate of $270 million of Ashland’s common stock. Under the 2015 ASR Agreements, Ashland paid an initial purchase price of $270 million, split evenly between the financial institutions and received an initial delivery of approximately 1.9 million shares of common stock. The 2015 ASR Agreements had a variable maturity, at the financial institutions option, with a maximum pricing period termination date of July 31, 2015. During 2015, Deutsche Bank and JPMorgan exercised their early termination option under the 2015 ASR Agreements 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 $125.22 per share. Based on this settlement price, the final number of shares repurchased by Ashland that were delivered by the financial institutions under the 2015 ASR Agreements was 2.2 million shares. Ashland received the additional 0.3 million shares from the financial institutions during 2015 to settle the difference between the initial share delivery and the total number of shares repurchased.

Stockholder dividends

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

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 during the first and second quarters of fiscal 2017, each quarter of fiscal 2016 and the third and fourth quarters of fiscal 2015. This amount was an increase from the quarterly cash dividend of 34 cents per share paid during the first and second quarters of fiscal 2015.

Shares reserved for issuance

At September 30, 2017, 13.9 million common shares are reserved for issuance under stock incentive and deferred compensation plans.

Other comprehensive income (loss)

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



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

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

Year ended September 30, 2015
Other comprehensive income (loss)
Unrealized translation loss	$	(368	)	$	(1	)	$	(369	)
Pension and postretirement obligation adjustment:
Adjustment of unrecognized prior service credit	(2		)	1			(1		)
Amortization of unrecognized prior service
credits included in net income (a)	(24		)	7			(17		)
Unrealized loss on available-for-sale securities	(17		)	6			(11		)
Total other comprehensive loss	$	(411	)	$	13		$	(398	)


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

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



(In millions)	2017			2016			2015
Cost of sales	$	—		$	(22	)	$	(7	)
Selling, general and administrative expense	—			(31		)	(11		)
Discontinued operations	(7		)	(7		)	(6		)
Total amortization of unrecognized prior service credits	$	(7	)	$	(60	)	$	(24	)

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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Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK INCENTIVE PLANS

12 Months Ended

Sep. 30, 2017

STOCK INCENTIVE PLANS

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

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



(In millions)	2017		(a)	2016		(b)	2015		(c)
SARs	$	5		$	9		$	10
Nonvested stock awards	15			17			15
Performance share awards	8			8			13
	$	28		$	34		$	38

Income tax benefit	$	11		$	13		$	13


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


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


(c)	The year ended September 30, 2015 included a $7 million award modification within performance shares that was designated as a cash item and $1 million of expense related primarily to cash-settled nonvested restricted stock awards.

Conversion of Equity Awards Outstanding from Valvoline Distribution

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

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

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

Stock Appreciation Rights

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



(In millions except per share data)	2017			2016			2015
Weighted-average fair value per share of SARs granted (a)	$	21.25		$	26.24		$	30.70
Assumptions (weighted-average)
Risk-free interest rate	1.8		%	1.8		%	1.7		%
Expected dividend yield	1.4		%	1.4		%	1.2		%
Expected volatility	22.8		%	27.7		%	31.8		%
Expected life (in years)	5			5			5


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

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



	2017				2016				2015
	Number		Weighted-		Number		Weighted-		Number		Weighted-
	of		average		of		average		of		average
	common		exercise price		common		exercise price		common		exercise price
(In thousands except per share data)	shares		per share		shares		per share		shares		per share
Outstanding - beginning of year	1,511		$	83.64	1,383		$	73.18	1,798		$	62.85
Granted	422		109.15		362		111.89		277		113.65
Exercised	(330	)	70.55		(196	)	59.69		(584	)	58.80
Forfeitures and expirations	(70	)	105.98		(38	)	95.65		(108	)	83.00
Transfer to Valvoline Inc. (a)	(352	)	94.28		—		—		—		—
Conversion adjustment (b)	1,080		—		—		—		—		—
Outstanding - end of year (c), (d)	2,261		47.98		1,511		83.64		1,383		73.18
Exercisable - end of year (d)	1,456		42.10		991		69.68		906		59.92


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


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

(c)

Exercise prices per share for SARs outstanding at September 30, 2017 ranged from $5.04 to $5.70 for 68 thousand shares, from $20.02 to $29.50 for 381 thousand shares, from $34.47 to $47.63 for 536 thousand shares, and from $57.96 to $62.33 for 1,276 thousand shares. The weighted-average remaining contractual life of outstanding SARs and stock options was 6.7 years and exercisable SARs and stock options was 5.5 years.


(d)	The 2017 ending weighted-average exercise price per share has been adjusted for the final Valvoline Inc. distribution.

The total intrinsic value of SARs exercised was $14 million in 2017, $11 million in 2016 and $35 million in 2015. The actual tax benefit realized from the exercised SARs was $2 million in 2017, $2 million in 2016 and $6 million in 2015. The total grant date fair value of SARs that vested during 2017, 2016 and 2015 was $8 million, $9 million and $13 million, respectively. As of September 30, 2017, there was $6 million of total unrecognized compensation costs related to SARs. That cost is expected to be recognized over a weighted-average period of 1.7 years. As of September 30, 2017, the aggregate intrinsic value of outstanding SARs was $39 million and exercisable SARs was $34 million.

Nonvested stock awards

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

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



	2017				2016				2015
	Number		Weighted-		Number		Weighted-		Number		Weighted-
	of		average		of		average		of		average
	common		grant date		common		grant date		common		grant date
(In thousands except per share data)	shares		fair value		shares		fair value		shares		fair value
Nonvested - beginning of year	293		$	109.12	298		$	106.41	221		$	88.81
Granted	92		105.10		107		111.76		187		114.97
Vested	(189	)	99.69		(93	)	104.44		(69	)	77.51
Forfeitures	(24	)	104.19		(19	)	104.66		(41	)	99.20
Transfer to Valvoline Inc. (a)	(71	)	111.97		—		—		—		—
Conversion adjustment (b)	118		—		—		—		—		—
Nonvested - end of year (c)	219		59.16		293		109.12		298		106.41


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


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


(c)	The 2017 ending weighted-average grant date fair value per share has been adjusted for the final Valvoline Inc. distribution.

The total fair value of nonvested stock awards that vested during 2017, 2016 and 2015 was $19 million, $10 million and $5 million, respectively. As of September 30, 2017, there was $5 million of total unrecognized compensation costs related to nonvested stock awards. That cost is expected to be recognized over a weighted-average period of 2.3 years.

Executive performance incentive and retention program

During 2016, certain executives were granted 260 thousand performance-based restricted shares of Ashland in order to provide an incentive to remain employed in the period after the full separation from Valvoline. At September 30, 2017, total nonvested shares outstanding were 79 thousand shares, which include forfeitures and the cumulative value of forfeitable dividends. The expense associated with these awards was $3 million during 2017 and was contingent upon the completion of the full separation of Valvoline, which occurred May 12, 2017. As of September 30, 2017, there was $9 million of total unrecognized compensation costs related to these awards.

Cash-settled nonvested stock awards

Certain nonvested stock awards are granted to employees and are settled in cash upon vesting. As of September 30, 2017, 198 thousand cash-settled nonvested stock awards were outstanding. The value of these cash-settled nonvested stock awards changes in connection with changes in the fair market value of the Ashland Common Stock. These awards generally vest over a period of three years. The expense recognized related to cash-settled nonvested stock awards was $5 million and $4 million during 2017 and 2016, respectively.

Performance awards

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

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

For awards granted in the current year, upon vesting, each performance unit will be settled in cash based on the fair market value of Ashland common stock. In accordance with U.S. GAAP, this plan is recorded within the other liabilities caption in the Consolidated Balance Sheet. For these awards, the performance measure used to determine the actual number of performance units issuable upon vesting is the financial performance of Ashland compared to award targets. The financial performance award metric is considered a performance condition under applicable U.S. GAAP. Additionally, the actual number of performance units issuable upon vesting can be potentially increased or decreased based on a TSR performance modifier relative to peers for Ashland.

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



				Weighted-
		Target		average
		shares/units		fair value per
(In thousands)	Vesting period	granted	(a)	share/unit		(a)
Fiscal Year 2017	October 1, 2016 - September 30, 2019	56		$	103.72
Fiscal Year 2016	October 1, 2015 - September 30, 2018	73		$	110.03
Fiscal Year 2015	October 1, 2014 - September 30, 2017	77		$	121.87


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

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

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



	2017		2016		2015
Risk-free interest rate	1.3%-1.4%		0.5% - 1.2%		0.1% - 1.0%
Expected dividend yield	1.4	%	1.2	%	1.4	%
Expected life (in years)	3		3		3
Expected volatility	25.1	%	21.1	%	24.2	%

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



	2017				2016				2015
			Weighted-				Weighted-				Weighted-
			average				average				average
	Shares/		grant date		Shares/		grant date		Shares/		grant date
(In thousands except per share data)	Units		fair value		Units		fair value		Units		fair value
Nonvested - beginning of year	199		$	106.91	204		$	93.79	368		$	72.20
Granted (a)	71		99.86		73		110.03		103		115.19
Vested (a)	(69	)	85.86		(72	)	76.26		(133	)	68.18
Forfeitures (b)	(54	)	75.52		(6	)	114.83		(134	)	74.79
Transfer to Valvoline Inc. (c)	(21	)	115.68		—		—		—		—
Conversion adjustment (d)	142		—		—		—		—		—
Nonvested - end of year (e)	268		63.00		199		106.91		204		93.79


(a)	2017 and 2015 include 15 thousand and 26 thousand additional shares from the fiscal year 2014 and 2012 plans, respectively, since a portion of the payouts for those plans was in excess of the initial 100% target.

(b)

During 2015, Ashland modified certain performance shares to provide that the instruments be paid in cash instead of stock. This change in payment designation caused Ashland to recognize $7 million in incremental stock-based compensation expense related to 84 thousand shares modified during 2015. During 2017, Ashland determined that zero percent of the TSR portion of the fiscal year 2016 plan will be paid out upon vesting which resulted in the forfeiture of 35 thousand shares.


(c)	Represents the transfer of performance shares from the fiscal year 2016 and 2015 plans held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution.


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


(e)	The 2017 ending weighted-average grant date fair value per share has been adjusted for the final Valvoline Inc. distribution.

As of September 30, 2017, there was $8 million of total unrecognized compensation costs related to nonvested performance share/unit awards. That cost is expected to be recognized over a weighted-average period of approximately 1.8 years.

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

REPORTABLE SEGMENT INFORMATION

REPORTABLE SEGMENT INFORMATION

12 Months Ended

Sep. 30, 2017

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 on the Statements of Consolidated Comprehensive Income (Loss) that is reviewed by the chief operating decision maker in assessing each reportable segment’s financial performance. Ashland does not aggregate operating segments to arrive at these reportable segments.

New Reportable Segments

Subsequent to completing the distribution of Valvoline Inc. during the current year, Ashland's operations are now managed by the chief operating decision maker within the following three reportable segments: Specialty Ingredients, Composites and Intermediates and Solvents. As a result, the financial information for the new reportable segments (Composites and Intermediates and Solvents) has been disclosed for all periods presented. In previous years, Composites and Intermediates and Solvents were reporting units included within the Ashland Performance Materials reportable segment.

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 Ingredient’ end markets 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; makers of nutraceuticals and supplements; manufacturers of paint, coatings and construction materials; packaging and converting; and oilfield service companies. On May 17, 2017, Ashland completed its acquisition of the stock of Pharmachem, a leading provider of quality ingredients to the global health and wellness industries and high-value differentiated products to fragrance and flavor houses. With 14 manufacturing facilities in the United States and Mexico, New Jersey-based Pharmachem develops, manufactures and supplies custom and branded nutritional and fragrance products. See Note C for more information.

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

Intermediates and Solvents is a leading producer of 1,4 butanediol (BDO) and related derivatives, including tetrahydrofuran and n-methylpyrrolidone. These products are used as chemical intermediates in the production of engineering polymers and polyurethanes, and as specialty process solvents in a wide array of applications including electronics, pharmaceuticals, water filtration membranes and more. Butanediol is also supplied to Ashland’s Specialty Ingredients business for use as a raw material.

Unallocated and Other generally includes items such as 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.

International data

Information about Ashland’s domestic and international operations follows. Ashland has no operations in any individual international country or single customer that represented more than 10% of sales in 2017, 2016 or 2015.



	Sales to										Property, plant
	external customers						Net assets (liabilities)				and equipment - net
(In millions)	2017		2016		2015		2017		2016		2017		2016
United States	$	1,248	$	1,165	$	1,330	$	674	$	41	$	1,417	$	1,341
International	2,012		1,854		2,090		2,732		3,124		553		559
	$	3,260	$	3,019	$	3,420	$	3,406	$	3,165	$	1,970	$	1,900

Reportable segment results

The following tables present various financial information for each reportable segment for the years ended September 30, 2017, 2016 and 2015 and as of September 30, 2017, 2016 and 2015. Results of Ashland’s reportable segments are presented based on its management and internal accounting structure. The structure is specific to Ashland; therefore, the financial results of Ashland’s reportable segments are not necessarily comparable with similar information for other comparable companies. Ashland allocates all costs to its reportable segments except for certain significant company-wide restructuring activities and other costs or adjustments that relate to former businesses that Ashland no longer operates. The service cost component of pension and other postretirement benefits costs is allocated to each reportable segment on a ratable basis; while the remaining components of pension and other postretirement benefits costs are recorded to Unallocated and other. Ashland refines its expense allocation methodologies to the reportable segments from time to time as internal accounting practices are improved, more refined information becomes available and the industry or market changes. Significant revisions to Ashland’s methodologies are adjusted for all segments on a retrospective basis.

Ashland determined that disclosing sales by specific product was impracticable due to the highly customized and extensive portfolio of products offered to customers and since no one product or a small group of products could be aggregated together to represent a majority of revenue within a reportable segment. As such, the following table provides a summary of 2017 sales by product category for each reportable segment:



Sales by product category for 2017
Specialty Ingredients			Composites			Intermediates and Solvents
Cellulosics	36	%	UPR/VER (a)	83	%	Derivatives	61	%
Poly vinyl pyrrolidones	18	%	Gelcoats and other	17	%	Butanediol	39	%
Adhesives	15	%		100	%		100	%
Actives	6	%
Vinyl ethers	6	%
Pharmachem	5	%
Other	14	%
	100	%


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

The following table presents various financial information for each reportable segment. The operating results of divested divisions and assets during 2017, 2016 and 2015 that did not qualify for discontinued operations accounting treatment are included in the financial information until the date of sale.



Ashland Global Holdings Inc. and Consolidated Subsidiaries
Reportable Segment Information
Years Ended September 30
(In millions)	2017			2016			2015
Sales
Specialty Ingredients	$	2,216		$	2,089		$	2,263
Composites (a)	779			669			834
Intermediates and Solvents	265			261			323
	$	3,260		$	3,019		$	3,420
Equity income
Specialty Ingredients	$	—		$	—		$	1
Composites	—			1			2
Intermediates and Solvents	—			—			—
Unallocated and other	—			—			—
	—			1			3
Other income (expense)
Specialty Ingredients	(2		)	(1		)	(1		)
Composites	4			5			5
Intermediates and Solvents	—			—			—
Unallocated and other	5			3			8
	7			7			12
	$	7		$	8		$	15
Operating income (loss)
Specialty Ingredients	$	233		$	237		$	239
Composites	67			63			61
Intermediates and Solvents	(12		)	(181		)	26
Unallocated and other	(146		)	(246		)	(214		)
	$	142		$	(127	)	$	112
Assets
Specialty Ingredients	$	6,050		$	5,235		$	5,365
Composites	586			520			711
Intermediates and Solvents	292			311			368
Unallocated and other	1,690			3,934			3,622
	$	8,618		$	10,000		$	10,066


(a)	Fiscal 2015 includes $40 million of sales from the divested Elastomers division for the period October 1, 2014 through the completion of the sale on December 1, 2014. See Note D for more information.



Ashland Global Holdings Inc. and Consolidated Subsidiaries
Reportable Segment Information (continued)
Years Ended September 30
(In millions)	2017		2016		2015
Depreciation and amortization
Specialty Ingredients	$	243	$	243	$	244
Composites	22		22		27
Intermediates and Solvents	31		31		32
Unallocated and other	5		6		3
	$	301	$	302	$	306
Property, plant and equipment - net
Specialty Ingredients	$	1,470	$	1,388	$	1,383
Composites	189		175		174
Intermediates and Solvents	146		160		184
Unallocated and other	165		177		188
	$	1,970	$	1,900	$	1,929
Additions to property, plant and equipment
Specialty Ingredients	$	148	$	179	$	171
Composites	26		23		23
Intermediates and Solvents	10		13		10
Unallocated and other	15		16		16
	$	199	$	231	$	220

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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SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2017
Accounting Policies [Abstract]
Consolidation, policy	Principles of consolidation and basis of presentation On September 20, 2016, Ashland was reincorporated under the laws of the State of Delaware through a tax-free reorganization under a new holding company structure (the Reorganization). As a result of the Reorganization, Ashland Global Holdings Inc. replaced Ashland Inc. as the publicly held corporation and, through its subsidiaries, now conducts all of the operations that historically were conducted by Ashland Inc. Pursuant to the terms of the Reorganization, each outstanding share of Ashland common stock was automatically converted into one share of Ashland Global Holdings Inc. common stock. Following consummation of the Reorganization, (i) Ashland Inc. was converted into Ashland LLC, an indirect, wholly owned subsidiary of Ashland Global Holdings Inc., and (ii) Ashland Global Holdings Inc., as the new holding company, through its subsidiaries, conducts all of the operations conducted by Ashland Inc. immediately prior to the Reorganization. The Consolidated Financial Statements include the accounts of Ashland Global Holdings Inc. and its majority owned subsidiaries and, when applicable, entities for which Ashland has a controlling financial interest or is the primary beneficiary (Ashland). For entities for which Ashland has a controlling financial interest but owns less than 100%, the outside stockholders’ interests are shown as noncontrolling interests. Investments in joint ventures and 20% to 50% owned affiliates where Ashland has the ability to exert significant influence are accounted for under the equity method. The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and U.S. Securities and Exchange Commission (SEC) regulations. All intercompany transactions and balances have been eliminated. Additionally, certain prior period data, primarily related to discontinued operations, have been reclassified in the Consolidated Financial Statements and accompanying notes to conform to the current period presentation, as further described in this section. On May 12, 2017, Ashland completed the distribution of its remaining 170 million shares of common stock of Valvoline Inc. which represented approximately 83% of the total outstanding shares of Valvoline Inc.'s common stock. This distribution of Valvoline represented a strategic shift in Ashland's business and, in accordance with U.S. GAAP, qualified as a discontinued operation. Accordingly, Valvoline's assets, liabilities, operating results and cash flows for all periods presented have been classified as discontinued operations within the Consolidated Financial Statements. See Note B for additional information on the separation of Valvoline Inc. The term Valvoline as used herein, depending on context, refers to either Valvoline Inc. or Valvoline as a previous reportable segment of Ashland. Subsequent to completing the distribution of Valvoline Inc. during the current year, Ashland's operations are now managed within the following three reportable segments: Specialty Ingredients, Composites and Intermediates and Solvents. In previous years, Composites and Intermediates and Solvents were reporting units included within the Ashland Performance Materials reportable segment. During 2016 and 2015, Ashland sold certain assets in its portfolio of businesses which were not reflected as discontinued operations in accordance with U.S. GAAP. See Notes D and Q for additional information on these activities as well as Ashland’s current reportable segment results.
Use of estimates, risks and uncertainties	Use of estimates, risks and uncertainties The preparation of Ashland’s Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities. Significant items that are subject to such estimates and assumptions include, but are not limited to, long-lived assets (including goodwill and other intangible assets), income taxes and liabilities and receivables associated with asbestos litigation and environmental remediation. Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ significantly from the estimates under different assumptions or conditions. Ashland’s results are affected by domestic and international economic, political, legislative, regulatory and legal actions. Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies and changes in the prices of certain key raw materials, can have a significant effect on operations. While Ashland maintains reserves for anticipated liabilities and carries various levels of insurance, Ashland could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings relating to asbestos, environmental remediation or other matters.
Cash and cash equivalents	Cash and cash equivalents Cash and cash equivalents include cash on hand and highly liquid investments maturing within three months after purchase.
Allowance for doubtful accounts	Allowance for doubtful accounts Ashland records an allowance for doubtful accounts as a best estimate of the amount of probable credit losses for accounts receivable. Each month, Ashland reviews this allowance and considers factors such as customer credit, past transaction history with the customer and changes in customer payment terms when determining whether the collection of a receivable is reasonably assured. Past due balances over 90 days and over a specified amount are reviewed individually for collectibility. The allowance for doubtful accounts is adjusted when it becomes probable a receivable will not be recovered.
Inventories	Inventories Inventories are carried at the lower of cost or net realizable value. Inventories are primarily stated at cost using the weighted-average cost method. In addition, certain chemicals with a replacement cost of $108 million at September 30, 2017 and $102 million at September 30, 2016 are valued at cost using the last-in, first-out (LIFO) method.
Property, Plant and Equipment	Property, plant and equipment The cost of property, plant and equipment is depreciated by the straight-line method over the estimated useful lives of the assets. Buildings are depreciated principally over 12 to 35 years and machinery and equipment principally over 2 to 25 years. Such costs are periodically reviewed for recoverability when impairment indicators are present. Such indicators include, among other factors, operating losses, unused capacity, market value declines and technological obsolescence. Recorded values of asset groups of property, plant and equipment that are not expected to be recovered through undiscounted future net cash flows are written down to current fair value, which generally is determined from estimated discounted future net cash flows (assets held for use) or net realizable value (assets held for sale).
Goodwill and other intangibles	Goodwill and other intangibles Ashland tests goodwill and other indefinite-lived intangible assets for impairment annually as of July 1 and when events and circumstances indicate an impairment may have occurred. Ashland reviews goodwill for impairment based on its identified reporting units, which are defined as operating segments or groupings of businesses one level below the operating segment level. Ashland tests goodwill for impairment by comparing the carrying value to the estimated fair value of its reporting units, determined using a combination of discounted cash flow models and valuations based on earnings multiples for guideline public companies in each reporting unit’s industry peer group, when externally quoted market prices are not readily available. If this comparison indicates that a reporting unit’s estimated fair value is less than its carrying value, it is adjusted to its calculated fair value and the adjustment represents the impairment charge. Ashland tests its indefinite-lived intangible assets, principally trademarks and trade names, using a “relief-from-royalty” valuation method compared to the carrying value. Significant assumptions inherent in the valuation methodologies for goodwill and other intangibles are employed and include, but are not limited to, such estimates as future projected business results, growth rates, the weighted-average cost of capital for a market participant, and royalty and discount rates. If the carrying value of an individual indefinite-lived intangible asset exceeds its fair value, such individual indefinite-lived intangible asset is written down by an amount equal to such excess. Finite-lived intangible assets principally consist of certain trademarks and trade names, intellectual property, and customer lists. These intangible assets are amortized on a straight-line basis over their estimated useful lives. The cost of trademarks and trade names is amortized principally over 3 to 25 years, intellectual property over 5 to 25 years and customer and supplier relationships over 3 to 24 years. Ashland reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Ashland monitors these changes and events on at least a quarterly basis. For further information on goodwill and other intangible assets, see Note H.
Derivative instruments	Derivative instruments Ashland regularly uses derivative instruments to manage its exposure to fluctuations in foreign currencies and certain commodities. All derivative instruments are recognized as either assets or liabilities on the balance sheet and are measured at fair value. Changes in the fair value of all derivatives are recognized immediately in the Statements of Consolidated Comprehensive Income (Loss) unless the derivative qualifies as a hedge of future cash flows or a hedge of a net investment in a foreign operation. Gains and losses related to an instrument that qualifies for hedge accounting are either recognized in the Statements of Consolidated Comprehensive Income (Loss) immediately to offset the gain or loss on the hedged item, or deferred and recorded in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income and subsequently recognized in the Statements of Consolidated Comprehensive Income (Loss) when the hedged item affects net income. The ineffective portion of the change in fair value of a hedge is recognized in income immediately. For additional information on derivative instruments, see Note F.
Restricted investments	Restricted investments On January 13, 2015, Ashland and Hercules LLC (formerly Hercules Incorporated), an indirect wholly-owned subsidiary of Ashland that was acquired in 2009, entered into a comprehensive settlement agreement related to certain insurance coverage for asbestos bodily injury claims with Underwriters at Lloyd’s, certain London companies and Chartis (AIG) member companies, along with National Indemnity Company and Resolute Management, Inc., under which Ashland and Hercules received a total of $398 million (the January 2015 asbestos insurance settlement). During 2015, Ashland placed $335 million of the settlement funds into a renewable annual trust restricted for the purpose of paying ongoing and future litigation defense and claim settlement costs incurred in conjunction with asbestos claims. These funds are presented primarily as noncurrent assets, with $30 million classified within other current assets in the Consolidated Balance Sheets as of September 30, 2017 and 2016. As of September 30, 2017, the funds within the trust were primarily invested in equity and corporate bond investments with a portion maintained in demand deposits. The funds within the trust are classified as available-for-sale securities. Available-for-sale securities are reported at fair value with unrealized gains and losses, net of related deferred income taxes, included in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income. Interest income and realized gains and losses on the available-for-sale securities are reported in the net interest and other financing expense caption in the Statements of Consolidated Comprehensive Income. See Notes F and N for additional information regarding fair value of these investments within the trust and the January 2015 asbestos insurance settlement.
Revenue recognition	Revenue recognition Sales generally are recognized when persuasive evidence of an arrangement exists, products are received or services are provided to customers, the sales price is fixed or determinable and collectibility is reasonably assured. For consignment inventory, title and risk of loss are transferred when the products have been consumed or used in the customer’s production process. The percentage of Ashland’s sales recognized from consignment inventory sales was 6% during 2017 and 2016 and 5% during 2015. Ashland reports all sales net of tax assessed by qualifying governmental authorities. Certain shipping and handling costs paid by the customer are recorded in sales, while those costs paid by Ashland are recorded in cost of sales. In May 2014, the FASB issued accounting guidance effective on October 1, 2018 that will change Ashland’s policy and disclosure requirements for revenue recognition treatment. See the new accounting pronouncements section within this Note A for further information.
Expense recognition	Expense recognition Cost of sales include material and production costs, as well as the costs of inbound and outbound freight, purchasing and receiving, inspection, warehousing, internal transfers and all other distribution network costs. Selling, general and administrative expense includes sales and marketing costs, advertising, customer support, environmental remediation, corporate and divisional administrative and other costs. Advertising costs ($6 million in 2017, 2016 and 2015) and research and development costs ($83 million in 2017, $87 million in 2016 and $99 million in 2015) are expensed as incurred.
Income taxes	Income taxes Ashland is subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment in the forecasting of taxable income using historical and projected future operating results is required in determining Ashland’s provision for income taxes and the related assets and liabilities. The provision for income taxes includes income taxes paid, currently payable or receivable, and deferred taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities, and are measured using enacted tax rates and laws that are expected to be in effect when the differences reverse. Deferred tax assets are also recognized for the estimated future effects of tax loss carryforwards. The effect on deferred taxes of changes in tax rates is recognized in the period in which the enactment date occurs. Valuation allowances are established when necessary on a jurisdictional basis to reduce deferred tax assets to the amounts expected to be realized. In the event that the actual outcome of future tax consequences differs from Ashland’s estimates and assumptions due to changes or future events such as tax legislation, geographic mix of earnings, completion of tax audits or earnings repatriation plans, the resulting change to the provision for income taxes could have a material effect on the Statements of Consolidated Comprehensive Income and Consolidated Balance Sheets. For additional information on income taxes, see Note L.
Asbestos-related litigation	Asbestos-related litigation Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation (Riley) and the acquisition of Hercules in November 2008. Although Riley, a former subsidiary, was neither a producer nor a manufacturer of asbestos, its industrial boilers contained some asbestos-containing components provided by other companies. Hercules, an indirect wholly-owned subsidiary of Ashland, has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products sold by one of Hercules’ former subsidiaries to a limited industrial market. Ashland retained Hamilton, Rabinovitz & Associates, Inc. (HR&A) to assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs given various assumptions. The methodology used by HR&A to project future asbestos costs is based largely on Ashland’s recent experience, including claim-filing and settlement rates, disease mix, enacted legislation, open claims, and litigation defense. Ashland’s claim experience is compared to the results of previously conducted epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, 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. From the range of estimates, Ashland records the amount it believes to be the best estimate of future payments for litigation defense and claim settlement costs. For additional information on asbestos-related litigation, see Note N. 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 remediation	Environmental remediation Accruals for environmental remediation are recognized when it is probable a liability has been incurred and the amount of that liability can be reasonably estimated. Such costs are charged to expense if they relate to the remediation of conditions caused by past operations or are not expected to mitigate or prevent contamination from future operations. Liabilities are recorded at estimated cost values based on experience, assessments and current technology, without regard to any third-party recoveries and are regularly adjusted as environmental assessments and remediation efforts continue. For additional information on environmental remediation, see Note N. 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.
Pension and other postretirement benefits	Pension and other postretirement benefits The funded status of Ashland’s pension and other postretirement benefit plans is recognized in the Consolidated Balance Sheets. The funded status is measured as the difference between the fair value of plan assets and the benefit obligation at September 30, the measurement date. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (PBO) and for the other postretirement benefit plans, the benefit obligation is the accumulated postretirement benefit obligation (APBO). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The measurement of the benefit obligation is based on Ashland’s estimates and actuarial valuations. These valuations reflect the terms of the plans and use participant-specific information such as compensation, age and years of service, as well as certain key assumptions that require significant judgment, including, but not limited to, estimates of discount rates, expected return on plan assets, rate of compensation increases, interest rates and mortality rates. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. For additional information regarding plan assumptions and the current financial position of the pension and other postretirement plans, see Note M. Ashland recognizes the change in the fair value of plan assets and net actuarial gains and losses annually in the fourth quarter of each fiscal year and whenever a plan is determined to qualify for a remeasurement. The remaining components of pension and other postretirement benefits expense are recorded ratably on a quarterly basis. Pension and other postretirement benefits adjustments charged directly to cost of sales that are applicable to inactive participants are excluded from inventoriable costs. The service cost component of pension and other postretirement benefits costs is allocated to each reportable segment on a ratable basis; while the remaining components of pension and other postretirement benefits costs are recorded to Unallocated and other.
Foreign currency translation	Foreign currency translation Operations outside the United States are measured primarily using the local currency as the functional currency. Upon consolidation, the results of operations of the subsidiaries and affiliates whose functional currency is other than the U.S. dollar are translated into U.S. dollars at the average exchange rates for the year while assets and liabilities are translated at year-end exchange rates. Consistent with U.S. GAAP standards, adjustments to translate assets and liabilities into U.S. dollars are recorded in the stockholders’ equity section of the Consolidated Balance Sheets as a component of accumulated other comprehensive income and are included in net earnings only upon sale or substantial liquidation of the underlying foreign subsidiary or affiliated company.
Stock incentive plans	Stock incentive plans Ashland recognizes compensation expense for stock incentive plans awarded to key employees and directors, primarily in the form of stock appreciation rights (SARs), restricted stock and restricted stock units, performance shares and other non-vested stock awards, that are generally based upon the grant-date fair value over the appropriate vesting period. Ashland utilizes several industry accepted valuation models to determine the fair value. For further information concerning stock incentive plans, see Note P.
Earnings per share	Earnings per share The following is the computation of basic and diluted earnings per share (EPS) from continuing operations attributable to Ashland. Earnings per share are reported under the treasury stock method. Stock options and SARs for each reported year whose grant price was greater than the market price of Ashland Common Stock at the end of each fiscal year were not included in the computation of loss from continuing operations per diluted share because the effect of these instruments would be antidilutive. The total number of these shares outstanding was 1.1 million for 2017, 1.2 million for 2016 and 0.7 million for 2015.
New accounting standards	New accounting pronouncements In May 2014, the FASB issued accounting guidance outlining a single comprehensive five step model for entities to use in accounting for revenue arising from contracts with customers (ASC 606 Revenue from Contracts with Customers). The new guidance and subsequent amendments to it supersedes most current revenue recognition guidance, in an effort to converge the revenue recognition principles within U.S. GAAP. This new guidance also requires entities to disclose certain quantitative and qualitative information regarding the nature, amount, timing and uncertainty of qualifying revenue and cash flows arising from contracts with customers. Entities have the option of using a full retrospective or a modified retrospective approach to adopt the new guidance. Ashland has identified an implementation team that is currently evaluating the impact of the new standard on the Consolidated Financial Statements and the adoption method options available as well as the overall impact the new guidance will have on the organization. The assessment process consists of categorizing Ashland’s revenue streams and reviewing the current internal accounting policies and practices to determine potential differences that would result from applying the requirements of the new standard to revenue contracts. Additional discussions and meetings with each revenue stream team have occurred to solicit input, identify potential impacts and appropriate changes to Ashland’s business processes, systems and controls to support the revenue recognition and disclosure requirements under the new standard. Based on various preliminary assessments conducted to date, Ashland has identified agreements with distributors and customers that are subject to rebate and incentive programs that could contain elements of material rights and/or variable consideration. Ashland does not currently believe that these elements would result in a material change to how revenue would be recognized for these agreements. Ashland currently intends to adopt this standard using the modified retrospective approach and does not believe the impact will be material to the Consolidated Financial Statements but does expect there to be significant additional disclosures within the Notes to Consolidated Financial Statements. This guidance becomes effective for Ashland on October 1, 2018 and Ashland currently plans to adopt the standard at that time. In August 2017, the FASB issued accounting guidance amending the existing hedge accounting model to simplify various hedge documentation requirements while also expanding hedging abilities for certain nonfinancial and financial risk components. This guidance will become effective for Ashland on October 1, 2019. Ashland is currently evaluating the impact this guidance may have on Ashland's Consolidated Financial Statements. In March 2017, the FASB issued accounting guidance that will change how employers who sponsor defined benefit pension and/or postretirement benefit plans present the net periodic benefit cost in the Statement of Consolidated Comprehensive Income. This guidance requires employers to present the service cost component of net periodic benefit cost in the same caption within the Statement of Consolidated Comprehensive Income (Loss) as other employee compensation costs from services rendered during the period. All other components of the net periodic benefit cost will be presented separately outside of the operating income caption. This guidance must be applied retrospectively and will become effective for Ashland on October 1, 2018, with early adoption being optional. Ashland intends to early adopt this guidance on October 1, 2017 and will revise the presentation of the net periodic benefit cost in previous periods to conform to the current period presentation. In January 2017, the FASB issued accounting guidance which simplifies the subsequent measurement of goodwill by eliminating the second step of the two-step impairment test under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The guidance instead requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value. Ashland elected to early adopt this guidance in conjunction with its annual assessment of goodwill performed as of July 1, 2017. In August 2016, the FASB issued new accounting guidance on eight specific cash flow classification issues. The amendments in this guidance will become effective retrospectively for Ashland on October 1, 2018. Early adoption is permitted in any interim or annual period. Ashland is currently evaluating the impact this guidance may have on Ashland’s Consolidated Financial Statements. In March 2016, the FASB issued new accounting guidance for certain aspects of share-based payments to employees. This guidance requires all excess tax benefits and tax deficiencies related to share-based payments to be recognized as income tax expense in the Statements of Consolidated Comprehensive Income (Loss) instead of additional paid in capital, and changes the classification of excess tax benefits from a financing activity to an operating activity within the statement of cash flows. This guidance also allows entities to make an accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. Lastly, this guidance increases the amount an employer can withhold to cover income taxes on awards and still qualify for equity classification and requires that cash paid by an employer when directly withholding shares for tax-withholding purposes be classified as a financing activity within the statement of cash flows. The guidance will become effective for Ashland on October 1, 2017. Ashland does not expect this new accounting guidance to have a significant effect on its Consolidated Financial Statements or disclosures. In February 2016, the FASB issued new accounting guidance related to lease transactions. The main objective of this guidance is to increase transparency and comparability among organizations by requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by leases and to disclose key information about leasing arrangements. The presentation of the Statements of Consolidated Comprehensive Income (Loss) and the Statements of Consolidated Cash Flows is largely unchanged under this guidance. This guidance retains a distinction between finance leases and operating leases, and the classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the current accounting literature. The guidance will become effective for Ashland on October 1, 2019. This new accounting guidance will have a significant effect on Ashland’s Consolidated Balance Sheet and disclosures. Ashland is currently evaluating implementation options and quantifying the impact that this guidance will have within its Consolidated Balance Sheet. In January 2016, the FASB issued accounting guidance related to the recognition and measurement of financial assets and financial liabilities. The main objective of this guidance is enhancing the reporting model for financial instruments to provide users of financial statements with more decision-useful information. The amendments in this guidance address certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The guidance also eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The guidance will become effective for Ashland on October 1, 2018. Ashland is currently evaluating the impact this guidance may have on Ashland’s Consolidated Financial Statements. In September 2015, the FASB issued accounting guidance to simplify the accounting for measurement-period adjustments related to acquisitions. This guidance requires that an acquirer recognize adjustments to initial amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period’s financial statements, the effect on earnings changes in depreciation, amortization, or other income effects, if significant, as a result of the change to the initial amounts, calculated as if the accounting had been completed at the acquisition date. These effects should be presented separately on the face of the Statements of Consolidated Comprehensive Income (Loss) or disclosed in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance became effective prospectively for Ashland on October 1, 2016. In accordance with this new guidance, see Note C for disclosure of the subsequent adjustments to the initial purchase price of acquisitions. 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 and did not have a significant impact on Ashland’s Consolidated Financial Statements.

FAIR VALUE MEASUREMENTS (Policies)	12 Months Ended
FAIR VALUE MEASUREMENTS (Policies)	Sep. 30, 2017
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, Trading Securities, Policy	As discussed in Note A, Ashland maintains certain investments in a restricted renewable annual trust for the purpose of paying future asbestos indemnity and defense costs. The investments are designated as available-for-sale securities, classified as Level 1 measurements within the fair value hierarchy. These securities were classified primarily as noncurrent restricted investment assets, with $30 million classified within other current assets, in the Consolidated Balance Sheets
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.

GOODWILL AND OTHER INTANGIBLES (Policies)	12 Months Ended
GOODWILL AND OTHER INTANGIBLES (Policies)	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Goodwill, Policy	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. Ashland determined that its reporting units for the allocation of goodwill are its three reportable segments: Specialty Ingredients, Composites and Intermediates and Solvents. As part of the goodwill impairment assessment, Ashland compares the carrying value of each reporting unit to its respective estimated fair value. Ashland makes various estimates and assumptions in determining the estimated fair values of those units through the use of a combination of discounted cash flow models and valuations based on earnings multiples for guideline public companies in each reporting unit’s industry peer group. Discounted cash flow models are highly reliant on various assumptions. Significant assumptions Ashland utilized in these models for the current year included: projected business results and future industry direction, long-term growth factors and weighted-average cost of capital. Ashland uses assumptions that it deems to be reasonable estimates of likely future events and compares the total fair values of each reporting unit to Ashland’s market capitalization, and implied control premium, to determine if the fair values are reasonable compared to external market indicators. Subsequent changes in these key assumptions could affect the results of future goodwill impairment reviews. In conjunction with the July 1, 2017 annual assessment of goodwill, Ashland’s valuation techniques did not indicate any impairment existed for its reporting units. During 2016, due to the deterioration in the butanediol commodity in which Intermediates and Solvents operates, Ashland determined that the carrying value of the Intermediates and Solvents reporting unit exceeded its fair value at July 1, 2016 which resulted in the reporting unit failing the first step of the goodwill impairment test. Ashland then performed the second step of the goodwill impairment test, which involved, among other things, obtaining third-party appraisals of substantially all of Intermediates and Solvents tangible and intangible assets. Based on the results of its goodwill impairment testing as of July 1, 2016, Ashland recorded a pre-tax goodwill impairment charge of $171 million in the fourth quarter of 2016, which in addition to a $10 million impairment related to Intermediates and Solvents property, plant and equipment, resulted in a total $181 million impairment charge for Intermediates and Solvents during 2016. A portion of the goodwill impairment was nondeductible for tax purposes. Ashland’s assessment of an impairment charge on any of these remaining assets currently classified as having indefinite lives, including goodwill, could result in additional impairment charges in future periods if any or all of the following events were to occur with respect to a particular reporting unit: a significant change in projected business results, a divestiture decision, increase in Ashland’s weighted-average cost of capital rates, decrease in growth rates or other assumptions, economic deterioration that is more severe or of a longer duration than anticipated, or another significant economic event.
Intangible Assets, Finite-Lived, Policy	Intangible assets principally consist of trademarks and trade names, intellectual property, and customer relationships. Intangible assets classified as finite are amortized on a straight-line basis over their estimated useful lives. The cost of trademarks and trade names is amortized principally over 3 to 25 years, intellectual property over 5 to 25 years and customer and supplier relationships over 3 to 24 years.
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy	During 2015, there was an impairment of certain IPR&D assets associated with the acquisition of International Specialty Products Inc. (ISP) of $11 million, which was classified within the research and development expense caption of the Statements of Consolidated Comprehensive Income. This impairment represented Level 2 nonrecurring fair value measurements. Ashland annually reviews indefinite-lived intangible assets for possible impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. In conjunction with the July 1, 2017 annual assessment of indefinite-lived intangible assets, Ashland’s models did not indicate any impairment for indefinite-lived intangible assets.

LITIGATION, CLAIMS AND CONTINGENCIES (Policies)	12 Months Ended
LITIGATION, CLAIMS AND CONTINGENCIES (Policies)	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies, Policy [Policy Text Block]	Asbestos-related litigation Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims result from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation (Riley) and the acquisition of Hercules in November 2008. Although Riley, a former subsidiary, was neither a producer nor a manufacturer of asbestos, its industrial boilers contained some asbestos-containing components provided by other companies. Hercules, an indirect wholly-owned subsidiary of Ashland, has liabilities from claims alleging personal injury caused by exposure to asbestos. Such claims typically arise from alleged exposure to asbestos fibers from resin encapsulated pipe and tank products sold by one of Hercules’ former subsidiaries to a limited industrial market. Ashland retained Hamilton, Rabinovitz & Associates, Inc. (HR&A) to assist in developing and annually updating independent reserve estimates for future asbestos claims and related costs given various assumptions. The methodology used by HR&A to project future asbestos costs is based largely on Ashland’s recent experience, including claim-filing and settlement rates, disease mix, enacted legislation, open claims, and litigation defense. Ashland’s claim experience is compared to the results of previously conducted epidemiological studies estimating the number of people likely to develop asbestos-related diseases. Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos. Using that information, 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. From the range of estimates, Ashland records the amount it believes to be the best estimate of future payments for litigation defense and claim settlement costs. For additional information on asbestos-related litigation, see Note N. 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 Costs, Policy [Policy Text Block]	Environmental remediation Accruals for environmental remediation are recognized when it is probable a liability has been incurred and the amount of that liability can be reasonably estimated. Such costs are charged to expense if they relate to the remediation of conditions caused by past operations or are not expected to mitigate or prevent contamination from future operations. Liabilities are recorded at estimated cost values based on experience, assessments and current technology, without regard to any third-party recoveries and are regularly adjusted as environmental assessments and remediation efforts continue. For additional information on environmental remediation, see Note N. 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.

SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Schedule of Calculation of Numerator and Denominator in Earnings Per Share

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



(In millions)	2017			2016
Finished products	$	390		$	377
Raw materials, supplies and work in process	245			163
LIFO reserves	(1		)	(1		)
	$	634		$	539



(In millions except per share data)	2017			2016			2015
Numerator
Numerator for basic and diluted EPS -
Loss from continuing operations, net of tax	$	(105	)	$	(283	)	$	(12	)
Denominator
Denominator for basic EPS - Weighted-average
common shares outstanding	62			63			68
Share based awards convertible to common shares (a)	—			—			—
Denominator for diluted EPS - Adjusted weighted-
average shares and assumed conversions	62			63			68
EPS from continuing operations attributable to Ashland
Basic	$	(1.69	)	$	(4.51	)	$	(0.18	)
Diluted	(1.69		)	(4.51		)	(0.18		)


(a)	As a result of the loss from continuing operations for 2017, 2016 and 2015, the effect of the share-based awards convertible to common shares would be antidilutive. In accordance with U.S. GAAP, they have been excluded from the diluted EPS calculation.

Allowance for Doubtful Accounts [Member]

Valuation and Qualifying Accounts Disclosure [Line Items]

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

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



(In millions)	2017			2016			2015
Allowance for doubtful accounts - beginning of year	$	10		$	7		$	8
Adjustments to net income	4			4			3
Reserves utilized	(4		)	(2		)	(3		)
Other changes	(1		)	1			(1		)
Allowance for doubtful accounts - end of year	$	9		$	10		$	7

Inventory Reserve [Member]

Valuation and Qualifying Accounts Disclosure [Line Items]

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

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



(In millions)	2017			2016			2015
Inventory reserves - beginning of year	$	31		$	31		$	47
Adjustments to net income	6			6			9
Reserves utilized	(8		)	(6		)	(5		)
Dispositions and other changes	—			—			(20		)
Inventory reserves - end of year	$	29		$	31		$	31

Valuation Allowance of Deferred Tax Assets [Member]

Valuation and Qualifying Accounts Disclosure [Line Items]

Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

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



(In millions)	2017			2016			2015
Tax valuation allowances - beginning of year	$	136		$	103		$	139
Adjustments to income tax expense (benefit)	27			43			(20		)
Reserves utilized	(41		)	(10		)	(7		)
Other changes	—			—			(9		)
Tax valuation allowances - end of year	$	122		$	136		$	103

VALVOLINE Valvoline (Tables)

7 Months Ended

May 12, 2017

Valvoline [Abstract]

Condensed Balance Sheet [Table Text Block]

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



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

ACQUISITIONS (Tables)

12 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table summarizes the values of the assets acquired and liabilities assumed at the date of acquisition.



	At
	May 17, 2017
Preliminary purchase price allocation (in millions)	As Adjusted
Assets:
Accounts receivable	52
Inventory	74
Other current assets	4
Intangible assets	330
Goodwill	287
Property, plant and equipment	97
Other noncurrent assets	20
Liabilities:
Accounts payable	(32		)
Deferred tax - net	(138		)
Other noncurrent liabilities	(14		)
Total purchase price	$	680

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

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



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

Results of Operations [Table Text Block]

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



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


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

Business Acquisition, Pro Forma Information [Table Text Block]

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



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

DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

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



(In millions)	2017			2016			2015
Income (loss) from discontinued operations
Valvoline	$	240		$	444		$	320
Asbestos-related litigation	(31		)	(37		)	132
Water Technologies	1			7			(3		)
Distribution	(5		)	(2		)	(3		)
Gain on disposal of discontinued operations
Water Technologies	—			—			4
Income before taxes	205			412			450
Income tax benefit (expense)
Benefit (expense) related to income (loss) from discontinued operations
Valvoline	(81		)	(158		)	(117		)
Asbestos-related litigation	6			7			(22		)
Water Technologies	1			(7		)	2
Distribution	2			1			1
Benefit related to gain on disposal of discontinued operations
Water Technologies	—			—			4
Distribution	—			—			3
Income from discontinued operations (net of taxes)	$	133		$	255		$	321

Valvoline Separation



(In millions)	2017 (a)			2016			2015
Income from discontinued operations
attributable to Valvoline
Sales	$	1,237		$	1,929		$	1,967
Cost of sales	(750		)	(1,168		)	(1,282		)
Selling, general and administrative expense	(234		)	(314		)	(336		)
Research and development expense	(8		)	(13		)	(11		)
Equity and other income	17			20			8
Operating income of discontinued operations	262			454			346
Net loss on acquisitions and divestitures	—			(1		)	(26		)
Net interest and other financing expense	(22		)	(9		)	—
Pretax income of discontinued operations	240			444			320
Income tax expense	(81		)	(158		)	(117		)
Income from discontinued operations	$	159		$	286		$	203


(a)	Results in 2017 reflect only 224 days of activity since Valvoline was fully distributed on May 12, 2017, as previously discussed.

The following table presents the captions of assets and liabilities of Valvoline that are presented as discontinued operations within Ashland's Consolidated Balance Sheet as of September 30, 2016.



(In millions)	2016
Cash	$	171
Accounts receivable, net	387
Inventories	131
Other current assets	25
Current assets of discontinued operations	$	714

Net property, plant and equipment	$	324
Goodwill	264
Equity and other unconsolidated investments	26
Deferred income taxes	347
Other noncurrent assets	92
Noncurrent assets of discontinued operations	$	1,053

Current portion of long-term debt	$	19
Trade and other payables	360
Current liabilities of discontinued operations	$	379

Long-term debt	$	730
Employee benefit obligations	886
Other long-term liabilities	99
Noncurrent liabilities of discontinued operations	$	1,715

Equity
Noncontrolling interest	$	(182	)

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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Fair Value of Financial Instruments

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]



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

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


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


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

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



			Quoted prices
					in active		Significant
					markets for		other		Significant
					identical		observable		unobservable
	Carrying		Total fair		assets		inputs		inputs
(In millions)	value		value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	1,017	$	1,017	$	1,017	$	—	$	—
Restricted investments (a)	322		322		322		—		—
Deferred compensation investments (b)	150		150		—		150		—
Investments of captive insurance company (b)	4		4		4		—		—
Foreign currency derivatives	3		3		—		3		—
Total assets at fair value	$	1,496	$	1,496	$	1,343	$	153	$	—

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


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


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

Available-for-sale Securities

The following table provides a summary of the activity within the available-for-sale securities portfolio as of September 30, 2017 and 2016:



(In millions)	2017			2016
Original cost	$	335		$	335
Accumulated investment income
and disbursements, net	(24		)	(3		)
Adjusted cost (a)	311			332
Investment income (b)	9			8
Unrealized gain	35			11
Realized gain	2			—
Settlement funds	2			4
Disbursements	(27		)	(33		)
Fair value	$	332		$	322

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


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

The following table presents gross unrealized gains and losses for the available-for-sale securities as of September 30, 2017 and 2016:



			Gross		Gross
(In millions)	Adjusted Cost		Unrealized Gain		Unrealized Loss		Fair Value
As of September 30, 2017
Demand Deposit	9		—		—		9
Equity Mutual Fund	168		34		—		202
Corporate bond Mutual Fund	120		1		—		121
Fair value	$	297	$	35	$	—	$	332

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 [Table Text Block]

The following table presents the investment income, realized gains and disbursements related to the investments within the portfolio during 2017, 2016 and 2015.



(In millions)	2017			2016			2015
Investment income	$	9		$	8		$	3
Realized gains	2			—			—
Disbursements	(27		)	(33		)	(6		)

Summary of gains (losses) on foreign currency derivatives

The following table summarizes the gains and losses recognized during 2017, 2016 and 2015 within the Statements of Consolidated Comprehensive Income.



(In millions)	2017		2016		2015
Foreign currency derivative gain (loss)	$	9	$	2	$	(17	)

Summary of fair values on foreign currency derivatives



(In millions)	2017		2016
Foreign currency derivative assets	$	2	$	3
Notional contract values	79		325

Foreign currency derivative liabilities	$	36	$	4
Notional contract values	1,601		528

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.

PROPERTY, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Table Text Block]

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



(In millions)	2017			2016
Land	$	150		$	151
Buildings	547			528
Machinery and equipment	2,840			2,667
Construction in progress	225			269
Total property, plant and equipment (gross)	3,762			3,615
Accumulated depreciation (a)	(1,792		)	(1,715		)
Total property, plant and equipment (net)	$	1,970		$	1,900


(a)	As of September 30, 2017 and 2016, accumulated depreciation included impairment charges to buildings and machinery and equipment of $1 million and $9 million, respectively, related to Intermediates and Solvents. See Note H for more information.

Property, Plant and Equipment Expenses [Table Text Block]

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



(In millions)	2017		2016		2015
Depreciation	$	219	$	226	$	228
Capitalized interest	1		1		2

GOODWILL AND OTHER INTANGIBLES (Tables)

12 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill by segment roll forward

The following is a progression of goodwill by reportable segment for the years ended September 30, 2017 and 2016.



	Specialty					Intermediates
(In millions)	Ingredients			Composites		and Solvents			Total
Balance at September 30, 2015	$	2,004		$	142	$	171		$	2,317
Divestiture (a)	(10		)	—		—			(10		)
Impairment	—			—		(171		)	(171		)
Currency translation	(3		)	5		—			2
Balance at September 30, 2016	1,991			147		—			2,138
Acquisition (b)	287			—		—			287
Currency translation	37			3		—			40
Balance at September 30, 2017	$	2,315		$	150	$	—		$	2,465


(a)	Divestiture caption represents the amount of goodwill related to the Specialty Ingredients joint venture during 2016. See Note D for more information.


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

Intangible assets

Intangible assets were comprised of the following as of September 30, 2017 and 2016.



	2017							2016
	Gross					Net		Gross					Net
	carrying		Accumulated			carrying		carrying		Accumulated			carrying
(In millions)	amount		amortization			amount		amount		amortization			amount
Definite-lived intangible assets
Trademarks and trade names	$	67	$	(22	)	$	45	$	40	$	(19	)	$	21
Intellectual property	757		(326		)	431		667		(273		)	394
Customer and supplier relationships	777		(235		)	542		543		(198		)	345
Total definite-lived intangible assets (a)	1,601		(583		)	1,018		1,250		(490		)	760

Indefinite-lived intangible assets
Trademarks and trade names	301		—			301		301		—			301
Total intangible assets	$	1,902	$	(583	)	$	1,319	$	1,551	$	(490	)	$	1,061


(a)	The gross carrying amount of the definite-lived intangible assets increased significantly during 2017, primarily due to the acquisition of Pharmachem. See Note C for more information.

DEBT (Tables)

12 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of Debt

The following table summarizes Ashland’s current and long-term debt at September 30, 2017 and 2016.



(In millions)	2017			2016
4.750% notes, due 2022	$	1,082		$	1,121
Term Loan B, due 2024	599			—
6.875% notes, due 2043	376			376
Term Loan A, due 2022	250			—
Term Loan A, due 2020	250			—
Revolving Credit Facility	173			—
Accounts receivable securitization	56			—
6.50% junior subordinated notes, due 2029	51			140
Other international loans	—			20
Medium-term notes, due 2019, interest of 9.4% at September 30, 2016	5			5
Term Loan, due 2017	—			150
3.875% notes, due 2018	—			700
Other (a)	(23		)	(17		)
Total debt	2,819			2,495
Short-term debt (includes current portion of long-term debt)	(235		)	(170		)
Long-term debt (less current portion and debt issuance costs)	$	2,584		$	2,325


(a)	Other includes $25 million and $20 million of debt issuance costs as of September 30, 2017 and 2016, respectively.

Net interest and other financing expense (income)



(In millions)	2017			2016			2015
Interest expense (a)	$	232		$	180		$	166
Interest income	(4		)	(5		)	(6		)
Available-for-sale securities income (b)	(11		)	(8		)	(3		)
Other financing costs (c)	17			6			17
	$	234		$	173		$	174


(a)	Includes $101 million, $6 million and $4 million of accelerated accretion and/or amortization for original issue discounts and debt issuance costs during 2017, 2016 and 2015, respectively.


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


(c)	Includes costs of $14 million related to early redemption premium payments of the 2022 and 2018 Senior Notes and a net gain of $5 million related to the repayment of the 2029 Notes during 2017. Includes costs of $9 million related to early redemption premium payments for the tender and redemption of the 2016 Senior Notes during 2015.

Debt issuance cost amortization

The following table details the debt issuance cost and original issue discount amortization included in interest expense during 2017, 2016 and 2015.



(In millions)	2017		2016		2015
Normal amortization	$	8	$	12	$	14
Accelerated amortization (a)	101		6		4
Total	$	109	$	18	$	18


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

INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

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



(In millions)	2017			2016			2015
Current
Federal	$	(10	)	$	(56	)	$	(125	)
State	—			(8		)	(16		)
Foreign	46			68			52
	36			4			(89		)
Deferred	(29		)	(29		)	(50		)
Income tax expense (benefit)	$	7		$	(25	)	$	(139	)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

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



(In millions)	2017			2016
Deferred tax assets
Foreign net operating loss carryforwards (a)	$	69		$	75
Employee benefit obligations	47			46
Environmental, self-insurance and litigation reserves (net of receivables)	192			209
State net operating loss carryforwards (net of unrecognized tax benefits) (b)	62			44
Compensation accruals	72			67
Credit carryforwards (net of unrecognized tax benefits) (c)	26			45
Other items	47			13
Valuation allowances (d)	(122		)	(136		)
Total deferred tax assets	393			363
Deferred tax liabilities
Goodwill and other intangibles (e)	432			343
Property, plant and equipment	302			295
Unremitted earnings	6			5
Total deferred tax liabilities	740			643
Net deferred tax liability	$	(347	)	$	(280	)


(a)	Gross net operating loss carryforwards of $219 million will expire in future years beyond 2019 or have no expiration.


(b)	Apportioned net operating loss carryforwards generated of $1.5 billion will expire in future years as follows: $64 million in 2018, $67 million in 2019 and the remaining balance in other future years.


(c)	Credit carryforwards consist primarily of foreign tax credits of $4 million expiring in future years beyond 2019, research and development credits of $13 million expiring in future years beyond 2019 and alternative minimum tax credits of $18 million with no expiration date.


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


(e)	The total gross amount of goodwill as of September 30, 2017 expected to be deductible for tax purposes is $25 million.

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]



(In millions)	2017			2016			2015
Income (loss) from continuing operations before income taxes
United States	$	(376	)	$	(557	)	$	(424	)
Foreign	278			249			273
Loss from continuing operations before income taxes	$	(98	)	$	(308	)	$	(151	)

Income taxes computed at U.S. statutory rate (35%)	$	(34	)	$	(108	)	$	(53	)
Increase (decrease) in amount computed resulting from
Net gain on divestitures	—			—			10
Uncertain tax positions	12			24			22
Foreign dividends and deemed dividend inclusions	124			111			102
Foreign tax credits	(29		)	(93		)	(87		)
Valuation allowance changes (a)	(3		)	33			(27		)
Research and development credits	(6		)	(9		)	(7		)
State taxes (b)	(15		)	(3		)	(23		)
Goodwill impairment	—			55			—
International rate differential	(63		)	(57		)	(61		)
Other items (c)	21			22			(15		)
Income tax expense (benefit)	$	7		$	(25	)	$	(139	)

(a)


(b)	2017 includes $6 million of benefit for state tax rate changes primarily related to the final distribution of Valvoline.

(c)

Changes in unrecognized tax benefit

Changes in unrecognized tax benefits were as follows:



(In millions)
Balance at September 30, 2015	$	144
Increases related to positions taken on items from prior years	10
Decreases related to positions taken on items from prior years	(4		)
Increases related to positions taken in the current year	22
Lapse of statute of limitations	(2		)
Settlement of uncertain tax positions with tax authorities	(2		)
Balance at September 30, 2016	168
Increases related to positions taken on items from prior years	8
Decreases related to positions taken on items from prior years	(3		)
Increases related to positions taken in the current year	14
Lapse of statute of limitations	(3		)
Acquisition of Pharmachem	11
Settlement of uncertain tax positions with tax authorities	(1		)
Balance at September 30, 2017 (a)	$	194


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

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Sep. 30, 2017

Schedule of Costs of Retirement Plans [Table Text Block]



	Pension benefits									Other postretirement benefits
(In millions)	2017			2016			2015			2017			2016			2015
Net periodic benefit costs (income)
Service cost	$	8		$	21		$	21		$	1		$	1		$	1
Interest cost	8			94			144			2			3			7
Curtailment, settlement and other	—			(64		)	(5		)	—			(34		)	—
Expected return on plan assets	(11		)	(149		)	(177		)	—			—			—
Amortization of prior service credit	—			(1		)	(3		)	—			(11		)	(15		)
Actuarial loss	—			208			212			6			32			1
	$	5		$	109		$	192		$	9		$	(9	)	$	(6	)
Weighted-average plan assumptions (a)
Discount rate for service cost (b)	1.92		%	3.95		%	4.22		%	3.93		%	4.07		%	3.81		%
Discount rate for interest cost (b)	2.22		%	3.30		%	4.22		%	2.86		%	2.57		%	3.81		%
Rate of compensation increase	2.80		%	3.04		%	3.01		%
Expected long-term rate of
return on plan assets	3.41		%	6.71		%	7.30		%


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


(b)	Weighted-average discount rates in 2017 and 2016 reflect the adoption of the full yield curve approach.

Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]

The following table shows other changes in prior service credit recognized in accumulated other comprehensive income.



	Pension				Postretirement
(In millions)	2017		2016		2017		2016
Prior service cost (credit)	$	—	$	2	$	—	$	(88	)
Curtailment, settlement and other	—		6		—		39
Amortization of prior service credit	—		1		—		14
Total	$	—	$	9	$	—	$	(35	)

Total recognized in net periodic benefit cost (income)
and accumulated other comprehensive income	$	5	$	118	$	9	$	(44	)

Total Prior Service Credits Recognized in Accumulated Other Comprehensive Income

At September 30, 2017 and 2016, the amounts included in accumulated other comprehensive income are shown in the following table.



	Pension						Postretirement
(In millions)	2017			2016			2017		2016 (a)
Prior service credit	$	(3	)	$	(3	)	$	—	$	(80	)

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

Summaries of the change in benefit obligations, plan assets, funded status of the plans, amounts recognized in the balance sheet, and assumptions used to determine the benefit obligations for 2017 and 2016 are as follows.



							Other postretirement
	Pension plans						benefit plans
(In millions)	2017			2016			2017			2016
Change in benefit obligations
Benefit obligations at October 1	$	448		$	421		$	59		$	60
Service cost	8			9			1			—
Interest cost	8			11			2			—
Participant contributions	1			1			—			—
Benefits paid	(12		)	(13		)	(6		)	(1		)
Actuarial (gain) loss	(20		)	66			6			—
Foreign currency exchange rate changes	13			(32		)	—			—
Other	17			(1		)	—			—
Curtailment and settlement	(8		)	(14		)	—			—
Benefit obligations at September 30	$	455		$	448		$	62		$	59
Change in plan assets
Value of plan assets at October 1	$	353		$	333		$	—		$	—
Actual return on plan assets	(9		)	64			—			—
Employer contributions (a)	7			8			—			—
Participant contributions	1			1			—			—
Benefits paid	(12		)	(13		)	—			—
Foreign currency exchange rate changes	8			(37		)	—			—
Other	7			(3		)	—			—
Value of plan assets at September 30	$	355		$	353		$	—		$	—

Unfunded status of the plans	$	(100	)	$	(95	)	$	(62	)	$	(59	)

Amounts recognized in the balance sheet
Noncurrent benefit assets	$	27		$	36		$	—		$	—
Current benefit liabilities	(3		)	(4		)	(4		)	(4		)
Noncurrent benefit liabilities	(124		)	(127		)	(58		)	(55		)
Net amount recognized	$	(100	)	$	(95	)	$	(62	)	$	(59	)

Weighted-average plan assumptions
Discount rate	2.66		%	3.39		%	3.66		%	3.42		%
Rate of compensation increase	2.80		%	3.04		%


(a)	Fiscal 2016 excludes $25 million of employer contributions related to plans transferred to Valvoline Inc. as previously discussed within this Note M.

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets [Table Text Block]



(In millions)	2017		2016
Projected benefit obligation	$	254	$	242
Accumulated benefit obligation	239		230
Fair value of plan assets	126		112

Schedule of Expected Benefit Payments [Table Text Block]

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



				Other
	Pension		postretirement
(In millions)	benefits			benefits
2018	$	19		$	5
2019	16			5
2020	17			5
2021	18			5
2022	18			5
2023 - 2027	101			24

Plan Asset Fair Value Heirarchy [Member]

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]



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



	Quoted prices
			in active		Significant
			markets for		other		Significant
			identical		observable		unobservable
	Total fair		assets		inputs		inputs
(In millions)	value		Level 1		Level 2		Level 3
Cash and cash equivalents	$	103	$	103	$	—	$	—
Non-U.S. Government securities	111		—		111		—
Corporate debt instruments	99		—		99		—
Corporate stocks	29		—		29		—
Insurance contracts	11		—		11		—
Total assets at fair value	$	353	$	103	$	250	$	—

Plan Asset Allocation by Asset Type [Member]

Schedule of Allocation of Plan Assets [Table Text Block]

Although the allocation between debt and equity securities may vary based on funding percentages and whether plans are still accruing additional liabilities, the weighted-average asset allocations for Ashland’s U.S. and non-U.S. plans at September 30, 2017 and 2016 by asset category follow.



		Actual at September 30
(In millions)	Target	2017		2016 (a)
Plan assets allocation
Equity securities	15 - 60%	19	%	8	%
Fixed income securities	40 - 85%	81	%	92	%
		100	%	100	%


(a)	The asset allocations were outside of the target range at September 30, 2016 as a result of all U.S. plan assets being held as cash and cash equivalents at that time while Ashland was transitioning the plan assets subsequent to the September transfer of pension plans to Valvoline.

LITIGATION, CLAIMS AND CONTINGENCIES (Tables)

12 Months Ended

Sep. 30, 2017

Loss Contingencies [Line Items]

Reconciliation of Activity in the Environmental Remediation Reserves

The following table provides a reconciliation of the changes in the environmental remediation reserves during 2017 and 2016.



(In millions)	2017			2016
Environmental remediation reserve - beginning of year	$	177		$	186
Disbursements	(32		)	(44		)
Revised obligation estimates and accretion	18			35
Environmental remediation reserve - end of year	$	163		$	177

Components of Environmental Remediation Expense



(In millions)	2017			2016			2015
Environmental expense	$	17		$	33		$	32
Accretion	1			2			4
Legal expense	8			8			6
Total expense	26			43			42

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

(a)

Ashland [Member]

Loss Contingencies [Line Items]

Progression of Asbestos Claims Activity [Table Text Block]

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



(In thousands)	2017		2016		2015
Open claims - beginning of year	57		60		65
New claims filed	2		2		2
Claims settled	(1	)	—		—
Claims dismissed	(4	)	(5	)	(7	)
Open claims - end of year	54		57		60

Progression Of Activity In Asbestos Reserve Accounts [Table Text Block]

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



(In millions)	2017			2016			2015
Asbestos reserve - beginning of year	$	415		$	409		$	438
Reserve adjustment	36			37			—
Amounts paid	(32		)	(31		)	(29		)
Asbestos reserve - end of year (a)	$	419		$	415		$	409


(a)	Included $34 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2017 and 2016.

Progression of Activity in Insurance Receivable [Table Text Block]

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



(In millions)	2017			2016			2015
Insurance receivable - beginning of year	$	151		$	150		$	402
Receivable adjustment	15			16			(3		)
Insurance settlement	(5		)	(4		)	(227		)
Amounts collected	(6		)	(11		)	(22		)
Insurance receivable - end of year (a)	$	155		$	151		$	150

Hercules [Member]

Loss Contingencies [Line Items]

Progression of Asbestos Claims Activity [Table Text Block]

A summary of Hercules’ asbestos claims activity follows.



(In thousands)	2017		2016		2015
Open claims - beginning of year	15		20		21
New claims filed	1		1		1
Claims dismissed	(4	)	(6	)	(2	)
Open claims - end of year	12		15		20

Progression Of Activity In Asbestos Reserve Accounts [Table Text Block]

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



(In millions)	2017			2016			2015
Asbestos reserve - beginning of year	$	321		$	311		$	329
Reserve adjustments	16			25			4
Amounts paid	(14		)	(15		)	(22		)
Asbestos reserve - end of year (a)	$	323		$	321		$	311


(a)	Included $14 million and $16 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2017 and 2016, respectively.

Progression of Activity in Insurance Receivable [Table Text Block]

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



(In millions)	2017		2016		2015
Insurance receivable - beginning of year	$	63	$	56	$	77
Receivable adjustment	5		7		1
Insurance settlement	—		—		(22		)
Insurance receivable - end of year	$	68	$	63	$	56

EQUITY ITEMS (Tables)

12 Months Ended

Sep. 30, 2017

Equity [Abstract]

Comprehensive Income (Loss) [Table Text Block]

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



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

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

Year ended September 30, 2015
Other comprehensive income (loss)
Unrealized translation loss	$	(368	)	$	(1	)	$	(369	)
Pension and postretirement obligation adjustment:
Adjustment of unrecognized prior service credit	(2		)	1			(1		)
Amortization of unrecognized prior service
credits included in net income (a)	(24		)	7			(17		)
Unrealized loss on available-for-sale securities	(17		)	6			(11		)
Total other comprehensive loss	$	(411	)	$	13		$	(398	)


(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 (Loss) impacted by the amortization of unrecognized prior service credits for pension and other postretirement plans are disclosed below. During 2016, the amortization of unrecognized prior service credits includes the curtailment impact of the pension and other postretirement plan remeasurements related to plan amendments of $40 million. See Note M for more information on curtailments, settlements and other costs.



(In millions)	2017			2016			2015
Cost of sales	$	—		$	(22	)	$	(7	)
Selling, general and administrative expense	—			(31		)	(11		)
Discontinued operations	(7		)	(7		)	(6		)
Total amortization of unrecognized prior service credits	$	(7	)	$	(60	)	$	(24	)

STOCK INCENTIVE PLANS (Tables)

12 Months Ended

Sep. 30, 2017

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

Stock incentive expense

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



(In millions)	2017		(a)	2016		(b)	2015		(c)
SARs	$	5		$	9		$	10
Nonvested stock awards	15			17			15
Performance share awards	8			8			13
	$	28		$	34		$	38

Income tax benefit	$	11		$	13		$	13


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


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


(c)	The year ended September 30, 2015 included a $7 million award modification within performance shares that was designated as a cash item and $1 million of expense related primarily to cash-settled nonvested restricted stock awards.

Stock Appreciation Rights (SARs) [Member]

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

Weighted-average of key assumptions used in pricing model

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



(In millions except per share data)	2017			2016			2015
Weighted-average fair value per share of SARs granted (a)	$	21.25		$	26.24		$	30.70
Assumptions (weighted-average)
Risk-free interest rate	1.8		%	1.8		%	1.7		%
Expected dividend yield	1.4		%	1.4		%	1.2		%
Expected volatility	22.8		%	27.7		%	31.8		%
Expected life (in years)	5			5			5


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

Stock appreciation rights award activity

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



	2017				2016				2015
	Number		Weighted-		Number		Weighted-		Number		Weighted-
	of		average		of		average		of		average
	common		exercise price		common		exercise price		common		exercise price
(In thousands except per share data)	shares		per share		shares		per share		shares		per share
Outstanding - beginning of year	1,511		$	83.64	1,383		$	73.18	1,798		$	62.85
Granted	422		109.15		362		111.89		277		113.65
Exercised	(330	)	70.55		(196	)	59.69		(584	)	58.80
Forfeitures and expirations	(70	)	105.98		(38	)	95.65		(108	)	83.00
Transfer to Valvoline Inc. (a)	(352	)	94.28		—		—		—		—
Conversion adjustment (b)	1,080		—		—		—		—		—
Outstanding - end of year (c), (d)	2,261		47.98		1,511		83.64		1,383		73.18
Exercisable - end of year (d)	1,456		42.10		991		69.68		906		59.92


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


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

(c)

Nonvested Stock Awards [Member]

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

Nonvested stock awards and performance shares activity

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



	2017				2016				2015
	Number		Weighted-		Number		Weighted-		Number		Weighted-
	of		average		of		average		of		average
	common		grant date		common		grant date		common		grant date
(In thousands except per share data)	shares		fair value		shares		fair value		shares		fair value
Nonvested - beginning of year	293		$	109.12	298		$	106.41	221		$	88.81
Granted	92		105.10		107		111.76		187		114.97
Vested	(189	)	99.69		(93	)	104.44		(69	)	77.51
Forfeitures	(24	)	104.19		(19	)	104.66		(41	)	99.20
Transfer to Valvoline Inc. (a)	(71	)	111.97		—		—		—		—
Conversion adjustment (b)	118		—		—		—		—		—
Nonvested - end of year (c)	219		59.16		293		109.12		298		106.41


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


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


(c)	The 2017 ending weighted-average grant date fair value per share has been adjusted for the final Valvoline Inc. distribution.

Performance Shares [Member]

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

Weighted-average of key assumptions used in pricing model



	2017		2016		2015
Risk-free interest rate	1.3%-1.4%		0.5% - 1.2%		0.1% - 1.0%
Expected dividend yield	1.4	%	1.2	%	1.4	%
Expected life (in years)	3		3		3
Expected volatility	25.1	%	21.1	%	24.2	%

Nonvested stock awards and performance shares activity

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



	2017				2016				2015
			Weighted-				Weighted-				Weighted-
			average				average				average
	Shares/		grant date		Shares/		grant date		Shares/		grant date
(In thousands except per share data)	Units		fair value		Units		fair value		Units		fair value
Nonvested - beginning of year	199		$	106.91	204		$	93.79	368		$	72.20
Granted (a)	71		99.86		73		110.03		103		115.19
Vested (a)	(69	)	85.86		(72	)	76.26		(133	)	68.18
Forfeitures (b)	(54	)	75.52		(6	)	114.83		(134	)	74.79
Transfer to Valvoline Inc. (c)	(21	)	115.68		—		—		—		—
Conversion adjustment (d)	142		—		—		—		—		—
Nonvested - end of year (e)	268		63.00		199		106.91		204		93.79


(a)	2017 and 2015 include 15 thousand and 26 thousand additional shares from the fiscal year 2014 and 2012 plans, respectively, since a portion of the payouts for those plans was in excess of the initial 100% target.

(b)


(c)	Represents the transfer of performance shares from the fiscal year 2016 and 2015 plans held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution.


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


(e)	The 2017 ending weighted-average grant date fair value per share has been adjusted for the final Valvoline Inc. distribution.

Performance shares/units granted

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



				Weighted-
		Target		average
		shares/units		fair value per
(In thousands)	Vesting period	granted	(a)	share/unit		(a)
Fiscal Year 2017	October 1, 2016 - September 30, 2019	56		$	103.72
Fiscal Year 2016	October 1, 2015 - September 30, 2018	73		$	110.03
Fiscal Year 2015	October 1, 2014 - September 30, 2017	77		$	121.87


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

REPORTABLE SEGMENT INFORMATION (Tables)

12 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Information about domestic and international operations



	Sales to										Property, plant
	external customers						Net assets (liabilities)				and equipment - net
(In millions)	2017		2016		2015		2017		2016		2017		2016
United States	$	1,248	$	1,165	$	1,330	$	674	$	41	$	1,417	$	1,341
International	2,012		1,854		2,090		2,732		3,124		553		559
	$	3,260	$	3,019	$	3,420	$	3,406	$	3,165	$	1,970	$	1,900

Revenue from External Customers by Products and Services [Table Text Block]



Sales by product category for 2017
Specialty Ingredients			Composites			Intermediates and Solvents
Cellulosics	36	%	UPR/VER (a)	83	%	Derivatives	61	%
Poly vinyl pyrrolidones	18	%	Gelcoats and other	17	%	Butanediol	39	%
Adhesives	15	%		100	%		100	%
Actives	6	%
Vinyl ethers	6	%
Pharmachem	5	%
Other	14	%
	100	%


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

Schedule of segment reporting information, by segment



Ashland Global Holdings Inc. and Consolidated Subsidiaries
Reportable Segment Information
Years Ended September 30
(In millions)	2017			2016			2015
Sales
Specialty Ingredients	$	2,216		$	2,089		$	2,263
Composites (a)	779			669			834
Intermediates and Solvents	265			261			323
	$	3,260		$	3,019		$	3,420
Equity income
Specialty Ingredients	$	—		$	—		$	1
Composites	—			1			2
Intermediates and Solvents	—			—			—
Unallocated and other	—			—			—
	—			1			3
Other income (expense)
Specialty Ingredients	(2		)	(1		)	(1		)
Composites	4			5			5
Intermediates and Solvents	—			—			—
Unallocated and other	5			3			8
	7			7			12
	$	7		$	8		$	15
Operating income (loss)
Specialty Ingredients	$	233		$	237		$	239
Composites	67			63			61
Intermediates and Solvents	(12		)	(181		)	26
Unallocated and other	(146		)	(246		)	(214		)
	$	142		$	(127	)	$	112
Assets
Specialty Ingredients	$	6,050		$	5,235		$	5,365
Composites	586			520			711
Intermediates and Solvents	292			311			368
Unallocated and other	1,690			3,934			3,622
	$	8,618		$	10,000		$	10,066


(a)	Fiscal 2015 includes $40 million of sales from the divested Elastomers division for the period October 1, 2014 through the completion of the sale on December 1, 2014. See Note D for more information.



Ashland Global Holdings Inc. and Consolidated Subsidiaries
Reportable Segment Information (continued)
Years Ended September 30
(In millions)	2017		2016		2015
Depreciation and amortization
Specialty Ingredients	$	243	$	243	$	244
Composites	22		22		27
Intermediates and Solvents	31		31		32
Unallocated and other	5		6		3
	$	301	$	302	$	306
Property, plant and equipment - net
Specialty Ingredients	$	1,470	$	1,388	$	1,383
Composites	189		175		174
Intermediates and Solvents	146		160		184
Unallocated and other	165		177		188
	$	1,970	$	1,900	$	1,929
Additions to property, plant and equipment
Specialty Ingredients	$	148	$	179	$	171
Composites	26		23		23
Intermediates and Solvents	10		13		10
Unallocated and other	15		16		16
	$	199	$	231	$	220

SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

Principles of consolidation and basis of presentation [Abstract]

Ownership Percentage

100.00%

Valvoline Shares Owned by Ashland

170.0

Sale of Stock, Percentage of Ownership after Transaction

83.00%

Number of reportable segments

Allowance for doubtful accounts [Abstract]

Past due balances reviewed individually (in days)

90 days

Inventories [Abstract]

Inventory replacement cost

$ 108

$ 102

Finished products

390

377

Raw materials, supplies and work in process

245

163

LIFO reserves

(1)

Total

634

539

Restricted Cash and Investments [Abstract]

Litigation Settlement, Amount

$ 398

Increase in Restricted Cash

335

Restricted Investments, Current

$ 30

Revenue Recognition [Abstract]

Percentage of consignment inventory sales

6.00%

5.00%

Expense Recognition [Abstract]

Advertising costs

$ 6

Research and development costs

$ 83

$ 87

$ 99

Earnings Per Share [Abstract]

Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount

1.1

1.2

0.7

Numerator [Abstract]

Income from continuing operations attributable to Ashland, net of tax

$ (105)

$ (283)

$ (12)

Denominator [Abstract]

Weighted-average common shares outstanding (in shares)

62.0

63.0

68.0

Share based awards convertible to common shares (in shares)

^[1]

0.0

Adjusted weighted-average shares and assumed conversions (in shares)

62.0

63.0

68.0

EPS from continuing operations [Abstract]

Basic (usd per share)

$ (1.69)

$ (4.51)

$ (0.18)

Diluted (usd per share)

$ (1.69)

$ (4.51)

$ (0.18)

Principles of consolidation and basis of presentation [Abstract]

Percentage of ownership under equity method

20.00%

Principles of consolidation and basis of presentation [Abstract]

Percentage of ownership under equity method

50.00%

Trademarks and Trade Names [Member] | Minimum [Member]

Trademarks and Trade Names [Member] | Maximum [Member]

3 years

Intellectual Property [Member] | Minimum [Member]

25 years

Intellectual Property [Member] | Maximum [Member]

5 years

Customer Relationships [Member] | Minimum [Member]

25 years

Customer Relationships [Member] | Maximum [Member]

3 years

Allowance for Doubtful Accounts [Member]

24 years

Reserves deducted from asset accounts [Roll Forward]

Adjustments to net income

$ 10

$ 7

$ 8

Reserves utilized

(4)

(2)

(3)

Dispositions and other changes

(1)

Inventory Reserve [Member]

Reserves deducted from asset accounts [Roll Forward]

Adjustments to net income

Reserves utilized

(8)

(6)

(5)

Dispositions and other changes

(20)

Valuation Allowance of Deferred Tax Assets [Member]

Reserves deducted from asset accounts [Roll Forward]

Adjustments to net income

136

103

139

(20)

Reserves utilized

(41)

(10)

(7)

Dispositions and other changes

(9)

Buildings [Member] | Minimum [Member]

$ 122

$ 136

$ 103

Buildings [Member] | Maximum [Member]

12 years

Machinery and Equipment [Member] | Minimum [Member]

35 years

Machinery and Equipment [Member] | Maximum [Member]

2 years

25 years

[1]	As a result of the loss from continuing operations for 2017, 2016 and 2015, the effect of the share-based awards convertible to common shares would be antidilutive. In accordance with U.S. GAAP, they have been excluded from the diluted EPS calculation

VALVOLINE (Details)
shares in Millions, $ in Millions

7 Months Ended

12 Months Ended

May 12, 2017

USD ($)

Sep. 30, 2017

USD ($)

Sep. 30, 2016

USD ($)

May 17, 2017

USD ($)

Sep. 30, 2015

USD ($)

Proceeds from Issuance Initial Public Offering

^[1]

$ 712

Valvoline Shares Owned by Ashland | shares

170

Sale of Stock, Percentage of Ownership after Transaction

83.00%

Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners

17.00%

Stockholders' Equity Note, Stock Split, Conversion Ratio

2.745338

Accounts receivable, net

^[2]

$ 612

$ 529

634

539

Total current assets

1,903

2,888

1,970

1,900

$ 1,929

Goodwill

2,465

2,138

$ 287

2,317

422

437

Total assets

6,715

7,112

Total assets

8,618

10,000

$ 10,066

Short-term debt

235

170

Other current liabilities

409

376

324

313

Total current liabilities

968

1,238

2,584

2,325

Total noncurrent liabilities

191

195

Other liabilities

400

361

4,244

5,597

Net deficit

3,406

3,165

Stranded divestitures costs

Selling, General and Administrative Expenses [Member]

Discontinued Operations [Member]

Separation costs

Separation costs

$ 13

Cash

$ 179

Accounts receivable, net

385

153

Total current assets

741

357

Goodwill

329

Current portion of long-term debt - Note I

391

347

1,201

1,942

Other current liabilities

353

Total current liabilities

478

662

730

Total noncurrent liabilities

826

$ 886

Other liabilities

163

1,651

Total liabilities

2,129

Net deficit

$ (187)

[1]	See Note B for discussion of the noncontrolling interest and the initial public offering and distribution of Valvoline Inc.
[2]	Accounts receivable includes an allowance for doubtful accounts of $9 million and $10 million at September 30, 2017 and 2016, respectively.

ACQUISITIONS (Details) $ in Millions		12 Months Ended
ACQUISITIONS (Details) $ in Millions	May 17, 2017 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period			$ 300
Number of manufacturing facilities	14
Business acquisiton, purchase price	$ 680
Working capital adjustments	20
Business Acquisition, Transaction Costs		$ 5
Accounts receivable	52
Inventory	74
Other current assets	4
Intangible assets	330
Goodwill	287	2,465	2,138	$ 2,317
Property, plant and equipment	97
Other noncurrent assets	20
Accounts payable	(32)
Deferred tax - net	(138)
Other noncurrent liabilities	(14)
Finite-Lived Intangible Assets, Purchase Accounting Adjustments		18
Goodwill, Purchase Accounting Adjustments		11
Operating income		142	(127)	$ 112
Business Acquisition, Pro Forma Revenue		3,434	3,321
Business Acquisition, Pro Forma Net Income (Loss)		31	$ (27)
Pharmachem [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues		104
Operating income		$ 7
Trademarks and Trade Names [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Finite-lived Intangible Assets Acquired	$ 26
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	15 years
Intellectual Property [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Finite-lived Intangible Assets Acquired	$ 68
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	22 years
Customer Relationships [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Finite-lived Intangible Assets Acquired	$ 236
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	20 years

DIVESTITURES (Details) $ in Millions	12 Months Ended
DIVESTITURES (Details) $ in Millions	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)	Nov. 30, 2014 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net loss on divestitures	$ (6)	$ (8)	$ (89)
Sales	3,260	3,019	3,420	$ 6,100
Net assets (liabilities)	3,406	3,165
Discontinued Operation, Tax Effect of Discontinued Operation			28
Disposal Group, Including Discontinued Operation, Other Expense			11
Industrial Biocides [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from Divestiture of Businesses			30
MAP Transaction [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Increase (Decrease) in Other Receivables			$ (7)
Other Receivables	$ 4
Elastomers [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Entity Number of Employees			250
Percentage of Revenue by Product Category				5.00%
Sale of Business, Transaction Value			$ 120
Net assets (liabilities)					$ 191
Proceeds from Divestiture of Businesses			105
Gain (loss) on sale of divested division, pre-tax			(86)
Specialty Ingredients [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of Revenue by Product Category	100.00%
Sales	$ 2,216	2,089	$ 2,263
Specialty Ingredients [Member] \| Specialty Ingredients Joint Venture [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net loss on divestitures	$ (4)	$ (12)

DISCONTINUED OPERATIONS (Details) - USD ($)
shares in Millions, $ in Millions

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

May 12, 2017

Valvoline Shares Owned by Ashland

170

Income from discontinued operations (net of taxes)

$ 205

$ 412

$ 450

133

255

321

Research and development expense

Current assets of discontinued operations

(25)

(139)

714

Noncurrent assets of discontinued operations

1,053

Current liabilities of discontinued operations

379

2,584

2,325

Noncurrent liabilities of discontinued operations

191

195

1,715

Noncontrolling interest

^[1]

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

240

^[2]

444

320

(81)

(158)

(117)

Income from discontinued operations (net of taxes)

159

^[2]

286

203

Revenue

1,237

^[2]

1,929

1,967

Cost of sales

(750)

^[2]

(1,168)

(1,282)

Selling, general and administrative expense

(234)

^[2]

(314)

(336)

Research and development expense

(8)

^[2]

(13)

(11)

Equity and other income

^[2]

Operating income of discontinued operations

262

^[2]

454

346

Net loss on acquisitions and divestitures

^[2]

(1)

(26)

Net interest and other financing expense

(22)

^[2]

(9)

(81)

^[2]

(158)

(117)

Cash

171

Accounts receivable, net

387

Current assets of discontinued operations

131

Other current assets

714

324

Goodwill

264

$ 31

Noncurrent assets of discontinued operations

347

391

Other noncurrent assets

1,053

Current portion of long-term debt

Current liabilities of discontinued operations

360

379

730

662

Other long-term liabilities

886

$ 826

Noncurrent liabilities of discontinued operations

1,715

Noncontrolling interest

^[1]

(182)

Asbestos [Member]

Gain Related to Litigation Settlement

120

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

(31)

(37)

132

(22)

Water Technologies [Member]

Gain on disposal of discontinued operations

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

(3)

(7)

Distribution [Member]

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

(5)

(2)

(3)

$ 0

$ 3

[1]	Represents the previous noncontrolling interest in Valvoline Inc. held outside of Ashland which is now included within discontinued operations. See Note B for more information.
[2]	Results in 2017 reflect only 224 days of activity since Valvoline was fully distributed on May 12, 2017, as previously discussed.

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016
Liabilities [Abstract]
Restricted Investments, Current	$ 30	$ 30
Fair Value, Measurements, Recurring [Member] \| Carrying (Reported) Amount, Fair Value Disclosure [Member]
Assets [Abstract]
Cash and cash equivalents	566	1,017
Restricted Investments	332	322
Deferred compensation investments	158	150
Investments of captive insurance company	3	4
Foreign currency derivatives	2	3
Total assets at fair value	1,061	1,496
Liabilities [Abstract]
Foreign currency derivatives	36	5
Fair Value, Measurements, Recurring [Member] \| Estimate of Fair Value Measurement [Member]
Assets [Abstract]
Cash and cash equivalents	566	1,017
Restricted Investments	332	322
Deferred compensation investments	158	150
Investments of captive insurance company	3	4
Foreign currency derivatives	2	3
Total assets at fair value	1,061	1,496
Liabilities [Abstract]
Foreign currency derivatives	36	5
Fair Value, Inputs, Level 1 [Member] \| Fair Value, Measurements, Recurring [Member]
Assets [Abstract]
Cash and cash equivalents	566	1,017
Restricted Investments	332	322
Deferred compensation investments	0	0
Investments of captive insurance company	3	4
Foreign currency derivatives	0	0
Total assets at fair value	901	1,343
Liabilities [Abstract]
Foreign currency derivatives	0	0
Fair Value, Inputs, Level 2 [Member] \| Fair Value, Measurements, Recurring [Member]
Assets [Abstract]
Cash and cash equivalents	0	0
Restricted Investments	0	0
Deferred compensation investments	158	150
Investments of captive insurance company	0	0
Foreign currency derivatives	2	3
Total assets at fair value	160	153
Liabilities [Abstract]
Foreign currency derivatives	36	5
Fair Value, Inputs, Level 3 [Member] \| Fair Value, Measurements, Recurring [Member]
Assets [Abstract]
Cash and cash equivalents	0	0
Restricted Investments	0	0
Deferred compensation investments	0	0
Investments of captive insurance company	0	0
Foreign currency derivatives	0	0
Total assets at fair value	0	0
Liabilities [Abstract]
Foreign currency derivatives	$ 0	$ 0

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

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

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

Restricted Investments, Current

$ 30

Original cost

335

Accumulated investment income and disbursements

(24)

(3)

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

^[1]

311

332

Investment income

^[2]

$ 3

(27)

(33)

$ (6)

Total, Fair value

332

322

Demand Deposit Accounts

Demand Deposits [Member]

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

Demand Deposit Accounts

Equity Securities [Member]

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

Equity mutual fund, Unrealized gain

168

185

Equity mutual fund, Fair value

202

193

Debt Securities [Member]

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

Corporate bond mutual fund, Unrealized gain

120

Corporate bond mutual fund, Fair value

121

123

Available-for-sale Securities [Member]

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

297

311

Unrealized gain

Total, Fair value

$ 332

$ 322

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

FAIR VALUE MEASUREMENTS (Currency Hedges) (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Accounts Receivable [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amounts, foreign currency derivatives	$ 79
Foreign Exchange Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency derivative gain (loss)	9	$ 2	$ (17)
Foreign Exchange Contract [Member] \| Accounts Receivable [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency derivative assets	2	3
Notional amounts, foreign currency derivatives		325
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	36	4
Notional amounts, foreign currency derivatives	$ 1,601	$ 528

FAIR VALUE MEASUREMENTS (Other Financial Instruments) (Details) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Long-term Debt, Carrying Value	$ 2,615	$ 2,345
Long-term Debt, Fair Value	$ 2,768	$ 2,558

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

$ 3,762

$ 3,615

Accumulated Depreciation

^[1]

(1,792)

(1,715)

Property Plant and Equipment Income Statement Disclosures [Abstract]

1,970

1,900

$ 1,929

Depreciation

219

226

228

Capitalized interest

146

160

184

Unallocated and other [Member]

165

177

188

Cost of Sales [Member] | Specialty Ingredients [Member]

1,470

1,388

1,383

Property Plant and Equipment Income Statement Disclosures [Abstract]

Accelerated depreciation

$ 6

Selling, General and Administrative Expenses [Member] | Unallocated and other [Member]

Property Plant and Equipment Income Statement Disclosures [Abstract]

Accelerated depreciation

Land [Member]

150

151

Buildings [Member]

Buildings [Member] | Intermediates and Solvents [Member]

547

528

Machinery and Equipment [Member]

Machinery and Equipment [Member] | Intermediates and Solvents [Member]

2,840

2,667

Machinery and Equipment [Member] | Cost of Sales [Member] | Specialty Ingredients [Member]

Property Plant and Equipment Income Statement Disclosures [Abstract]

Accelerated depreciation

Construction in Progress [Member]

$ 225

$ 269

[1]	As of September 30, 2017 and 2016, accumulated depreciation included impairment charges to buildings and machinery and equipment of $1 million and $9 million, respectively, related to Intermediates and Solvents. See Note H for more information.

GOODWILL (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

Goodwill [Line Items]

Asset impairment charges

$ 0

$ 181

$ 11

2,138

2,317

Acquisitions

^[1]

287

Divestitures

^[2]

(10)

Impairment

(171)

Currency translation

2,465

2,138

2,317

1,991

2,004

Acquisitions

^[1]

287

Divestitures

^[2]

(10)

Impairment

Currency translation

(3)

2,315

1,991

2,004

Composites [Member]

147

142

150

147

142

Goodwill [Line Items]

Asset impairment charges

181

171

(171)

$ 0

$ 171

[1]	Relates to the acquisition of Pharmachem during 2017. See Note C for more information.
[2]	Divestiture caption represents the amount of goodwill related to the Specialty Ingredients joint venture during 2016. See Note D for more information.

OTHER INTANGIBLES (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

Intangible Assets, Gross (Excluding Goodwill)

$ 1,902

$ 1,551

Intangible Assets, Net (Excluding Goodwill)

1,319

1,061

1,601

^[1]

1,250

(583)

(490)

Amortization expense recognized on intangible assets

1,018

760

$ 78

Expected future amortization expense [Abstract]

Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]

Indefinite-lived intangible assets (excluding goodwill)

301

Trademarks and Trade Names [Member]

Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]

Indefinite-lived intangible assets (excluding goodwill)

301

Trademarks and Trade Names [Member]

(22)

(19)

Intellectual Property [Member]

757

667

(326)

(273)

Customer Relationships [Member]

431

394

777

543

(235)

(198)

Minimum [Member] | Trademarks and Trade Names [Member]

$ 542

$ 345

Minimum [Member] | Intellectual Property [Member]

3 years

Minimum [Member] | Customer Relationships [Member]

5 years

Maximum [Member] | Trademarks and Trade Names [Member]

3 years

Maximum [Member] | Intellectual Property [Member]

25 years

Maximum [Member] | Customer Relationships [Member]

25 years

International Specialty Products Inc. [Member] | In Process Research and Development [Member]

24 years

Indefinite-lived Intangible Assets, Period Increase (Decrease)

$ 11

[1]	The gross carrying amount of the definite-lived intangible assets increased significantly during 2017, primarily due to the acquisition of Pharmachem. See Note C for more information.

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

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Sep. 30, 2016

Long-term debt (less current portion and debt issuance cost discounts)

$ 2,819

$ 2,495

Short-term debt

(235)

(170)

2,584

2,325

Unamortized Debt Issuance Expense, Long-Term Debt

Total debt outstanding principal balance

2,897

Discounts on outstanding debt balance

Long-term Debt, Fiscal Year Maturity [Abstract]

269

1,279

Notes due 2022 [Member]

$ 1,082

1,121

4.75%

Term Loan B due 2024 [Member]

Aug. 15, 2022

$ 599

May 17, 2024

Notes due 2043 [Member]

$ 376

376

6.875%

Term Loan A due 2022 [Member]

May 15, 2043

$ 250

Term Loan Due 2020 [Member]

May 17, 2022

$ 250

2017 Revolving Credit Facility [Member]

May 17, 2020

Accounts Receivable Securitization [Member]

$ 173

Junior Subordinated Notes due 2029 [Member]

$ 51

140

6.50%

Other International Loans [Member]

Dec. 31, 2029

Medium-Term Notes due 2019 [Member]

$ 0

$ 5

9.40%

Term Loan Due 2017 [Member]

Dec. 31, 2019

$ 0

150

Notes due 2018 [Member]

$ 0

700

3.875%

Apr. 15, 2018

Other [Member]

^[1]

$ (23)

$ (17)

[1]	Other includes $25 million and $20 million of debt issuance costs as of September 30, 2017 and 2016, respectively.

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

3 Months Ended

12 Months Ended

Sep. 30, 2017

USD ($)

Sep. 30, 2015

USD ($)

Sep. 30, 2017

USD ($)

Sep. 30, 2016

USD ($)

Sep. 30, 2015

USD ($)

Jun. 30, 2017

May 17, 2017

USD ($)

Mar. 31, 2017

Sep. 30, 2014

USD ($)

Sep. 30, 2012

USD ($)

Payments of Debt Issuance Costs

$ 15

$ 0

$ 9

Accelerated amortization

^[1]

101

Valvoline borrowings triggering amount

750

Maximum debt reduction

1,000

Line of Credit Facility, Remaining Borrowing Capacity

$ 2,819

2,819

2,495

614

Term Loan Due 2020 [Member]

Repayment of Debt, Accelerated Amortization

250

$ 1,100

250

1,100

^[1]

Term Loan A due 2022 [Member]

250

250

2017 Revolving Credit Facility [Member]

250

Line of Credit Facility, Maximum Borrowing Capacity

800

$ 680

Line of credit facility, letter of credit sublimit

125

$ 125

Line of Credit Facility, Unused Capacity, Commitment Fee Percentage

0.25%

Letters of Credit Outstanding, Amount

173

$ 173

Line of Credit Facility, Remaining Borrowing Capacity

$ 579

Maximum Consolidated Leverage Ratio

4.50

Term Loan B due 2024 [Member]

$ 600

2017 Credit Agreement [Member]

$ 599

599

Payments of Debt Issuance Costs

(15)

Debt issuance costs immediately recognized

Notes due 2016 [Member]

$ 600

Percentage of Long Term Debt Repaid

3.00%

Repayments of Debt

$ 50

$ 550

92.00%

2013 Senior Credit Facility [Member]

2015 Revolving Credit Facility [Member]

1,200

$ 1,200

Line of Credit Facility, Maximum Borrowing Capacity

1,200

800

1,200

Line of credit facility, letter of credit sublimit

250

$ 250

Line of Credit Facility, Unused Capacity, Commitment Fee Percentage

0.25%

Payments of Debt Issuance Costs

$ 10

Accelerated amortization

Repayment of Debt, Accelerated Amortization

$ 5

Line of Credit, Swing Line Loan Sublimit

100

Minimum Consolidated Interest Coverage Ratio

3.0

Calculated Consolidated Leverage Ratio

3.8

Calculated Consolidated Interest Coverage Ratio

4.7

Notes due 2018 [Member]

3.875%

Repayments of Debt

$ 659

$ 41

$ 0

700

Notes due 2022 [Member]

4.75%

Repayments of Debt

$ 39

Notes due 2018 and 2022 [Member]

$ 1,082

1,082

1,121

Junior Subordinated Debt [Member]

$ (3)

6.50%

Par value of debt repurchases

$ 5

182

Reduction in carrying value of debt

Aggregate purchase price of debt

177

Accounts Receivable Securitization [Member]

$ 51

140

Line of Credit Facility, Maximum Borrowing Capacity

$ 250

100

$ 250

$ 275

$ 350

Debt, Weighted Average Interest Rate

$ 56

$ 0

2.80%

1.50%

Line of Credit Facility, Remaining Borrowing Capacity

$ 35

Outstanding amount of receivables sold to affiliate

155

$ 133

2017 Term Loan [Member]

150

Other Debt [Member]

$ 58

168

Notes due 2043 [Member]

6.875%

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

$ 376

Line of Credit Facility, Unused Capacity, Commitment Fee Percentage

0.175%

Minimum [Member] | 2015 Revolving Credit Facility [Member]

Line of Credit Facility, Unused Capacity, Commitment Fee Percentage

0.175%

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

Line of Credit Facility, Unused Capacity, Commitment Fee Percentage

0.40%

Maximum [Member] | 2015 Revolving Credit Facility [Member]

Line of Credit Facility, Unused Capacity, Commitment Fee Percentage

0.40%

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

Debt instruments, percentage points added to variable rate

1.75%

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

Debt instruments, percentage points added to variable rate

2.00%

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

Debt instruments, percentage points added to variable rate

1.375%

London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | 2015 Revolving Credit Facility [Member]

Debt instruments, percentage points added to variable rate

1.375%

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

Debt instruments, percentage points added to variable rate

2.50%

London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | 2015 Revolving Credit Facility [Member]

Debt instruments, percentage points added to variable rate

2.50%

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

Debt instruments, percentage points added to variable rate

0.75%

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

Debt instruments, percentage points added to variable rate

1.00%

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

Debt instruments, percentage points added to variable rate

0.375%

Alternate base rate [Member] | Minimum [Member] | 2015 Revolving Credit Facility [Member]

Debt instruments, percentage points added to variable rate

0.375%

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

Debt instruments, percentage points added to variable rate

1.50%

Alternate base rate [Member] | Maximum [Member] | 2015 Revolving Credit Facility [Member]

Debt instruments, percentage points added to variable rate

1.50%

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

DEBT (Net interest and other financing expense) (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

Available-for-sale securities income

Interest expense

^[1]

$ (232)

$ (180)

$ (166)

Interest income

^[2]

Other financing costs

(17)

^[3]

(6)

^[3]

(17)

Interest Income (Expense), Net

(234)

(173)

(174)

Normal amortization

Accelerated amortization

^[4]

101

Total amortization of financing costs and discounts

109

Notes due 2018 and 2022 [Member]

$ 0

$ 9

Junior Subordinated Debt [Member]

(3)

Repayment of debt, accelerated accretion

$ 92

[1]	Includes $101 million, $6 million and $4 million of accelerated accretion and/or amortization for original issue discounts and debt issuance costs during 2017, 2016 and 2015, respectively.
[2]	Represents investment income related to the restricted investments discussed in Note G.
[3]	Includes costs of $14 million related to early redemption premium payments of the 2022 and 2018 Senior Notes and a net gain of $5 million related to the repayment of the 2029 Notes during 2017. Includes costs of $9 million related to early redemption premium payments for the tender and redemption of the 2016 Senior Notes during 2015.
[4]	Fiscal year 2017 includes $92 million of accelerated accretion of the recorded debt discount for the 2029 Notes, while the remaining amounts in each year relate to accelerated amortization of debt issuance costs.

OTHER NONCURRENT ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016
Other Assets, Noncurrent [Abstract]
Deferred compensation investments	$ 158	$ 150
Tax and tax indemnity receivables	86	82
Manufacturing catalyst supplies	37	35
Equity and other unconsolidated investments	32	31
Defined benefit plan assets	27	36
Land use rights	16	21
Life insurance policies	15	16
Environmental insurance receivables	14	15
Notes receivable	5	20
Debt issuance costs	6	10
Other	26	21
Other noncurrent assets, Total	422	437
Other Liabilities, Noncurrent [Abstract]
Tax liabilities	179	104
Environmental remediation reserves	121	134
Deferred compensation	50	54
Other	50	69
Other noncurrent liabilties, Total	$ 400	$ 361

LEASE COMMITMENTS (Details) - USD ($) $ in Millions	12 Months Ended
LEASE COMMITMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2018	$ 31
2019	33
2020	23
2021	17
2022	15
2023 and later years	99
Operating Leases, Rent Expense [Abstract]
Minimum rentals (including rentals under short-term leases)	48	$ 50	$ 45
Contingent rentals	0	1	1
Sublease rental income	(1)	(1)	(1)
Rent expense	$ 47	$ 50	$ 45

INCOME TAXES (Income tax provision) (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
Federal	$ (10)	$ (56)	$ (125)
State	0	(8)	(16)
Foreign	46	68	52
Total current income tax expense (benefit)	36	4	(89)
Deferred	(29)	(29)	(50)
Income tax expense (benefit)	7	$ (25)	$ (139)
Undistributed earnings of certain foreign subsidiaries and foreign corporate joint ventures	$ 1,500

INCOME TAXES (Deferred Taxes) (Details) - USD ($)
$ in Millions

Sep. 30, 2017

Sep. 30, 2016

Deferred Tax Assets [Abstract]

Foreign net operating loss carryforwards

^[1]

$ 69

$ 75

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

192

209

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

^[2]

Compensation accruals

Credit carryforwards (net of unrecognized tax benefits)

^[3]

Total deferred tax assets

Valuation allowances

^[4]

(122)

(136)

393

363

Deferred Tax Liabilities [Abstract]

Goodwill and other intangibles

^[5]

432

343

Property, plant and equipment

302

295

Unremitted earnings

Total deferred tax liabilities

740

643

Net deferred tax liability

(347)

$ (280)

Goodwill expected to be deductible for tax purposes

Foreign [Member]

Research Tax Credit Carryforward [Member]

Tax credits

Alternative Minimum [Member]

Tax credits

Foreign Tax Authority [Member]

Tax credits

Operating Loss Carryforwards

219

State and Local Jurisdiction [Member]

Operating Loss Carryforwards

1,500

Operating loss carryforwards expiring in next fiscal year

Operating loss carryforwards expiring in fiscal year two

$ 67

[1]	Gross net operating loss carryforwards of $219 million will expire in future years beyond 2019 or have no expiration.
[2]	Apportioned net operating loss carryforwards generated of $1.5 billion will expire in future years as follows: $64 million in 2018, $67 million in 2019 and the remaining balance in other future years.
[3]	Credit carryforwards consist primarily of foreign tax credits of $4 million expiring in future years beyond 2019, research and development credits of $13 million expiring in future years beyond 2019 and alternative minimum tax credits of $18 million with no expiration date.
[4]	Valuation allowances primarily relate to certain state and foreign net operating loss carryforwards.
[5]	The total gross amount of goodwill as of September 30, 2017 expected to be deductible for tax purposes is $25 million.

INCOME TAXES (Income from continuing operations, before tax and reconciliation of provision) (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

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

35.00%

United States

$ (376)

$ (557)

$ (424)

Foreign

278

249

273

Loss from continuing operations before income taxes

(98)

(308)

(151)

Income taxes computed at U.S. statutory rate (35%)

(34)

(108)

(53)

Net gain on divestitures

Uncertain tax positions

Foreign dividends and deemed dividend inclusions

124

111

102

Foreign tax credits

(29)

(93)

(87)

Valuation allowance charges

(3)

^[1]

(27)

Claim for research and development credits

(6)

(9)

(7)

State taxes

(15)

^[2]

(3)

(23)

Goodwill impairment

International rate differential

(63)

(57)

(61)

^[3]

(15)

Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount

(25)

(139)

^[3]

Foreign Tax Authority [Member]

Foreign dividends and deemed dividend inclusions

Valuation allowance charges

^[1]

State and Local Jurisdiction [Member]

^[3]

Valuation allowance charges

^[1]

State taxes

^[2]

^[3]

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

$ (81)

^[4]

$ (158)

$ (117)

[1]	2017 includes $25 million of benefit for the release of a foreign tax credit valuation allowance and $22 million of expense for state, foreign and domestic federal deferred tax asset valuation allowances net of a NOL write-off offset; 2016 relates to foreign tax credit carryforward and state deferred tax asset valuation allowance establishments; 2015 primarily relates to state deferred tax asset valuation allowance releases.
[2]	2017 includes $6 million of benefit for state tax rate changes primarily related to the final distribution of Valvoline.
[3]	2017 includes $7 million of expense related to foreign withholding taxes, $5 million of expense for the write-off of a prepaid asset related to an intercompany transaction with a Valvoline legal entity and $4 million of expense for non-deductible transaction costs primarily related to the Valvoline spin-off and $6 million of benefit for certain other domestic permanent items; 2016 includes $25 million of expense for costs associated with the separation of Valvoline; 2015 primarily includes non-recurring favorable permanent differences.
[4]	Results in 2017 reflect only 224 days of activity since Valvoline was fully distributed on May 12, 2017, as previously discussed.

INCOME TAXES (Unrecognized tax benefits) (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

$ 171

Interest and penalties related to uncertain tax positions

$ 5

$ (1)

Interest and penalties related to unrecognized tax benefits accrued

Tax indemnity receivable

Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]

Lapse of statute of limitations

168

144

(3)

(4)

(2)

Acquisition of Pharmachem

Settlement of uncertain tax positions with tax authorities

(1)

(2)

194

^[1]

$ 168

$ 144

Decrease in Unrecognized Tax Benefits is Reasonably Possible

Decrease in Unrecognized Tax Benefits is Reasonably Possible

Net Prior Service Credit, before Tax [Abstract]

Tax indemnity receivable

$ 48

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

EMPLOYEE BENEFIT PLANS (Pension, Other Post Retirement, and Other Plans) (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015	May 12, 2017
Defined Benefit Plan Disclosure [Line Items]
Employee benefit obligations	$ 191	$ 195
Pre-65 Health Care Cost Trend Rate	7.50%
Future Pre-65 Health Care Cost Trend Rate	4.50%
Decrease in estimated service and interest cost		27
Valvoline [Member]
Defined Benefit Plan Disclosure [Line Items]
Employee benefit obligations		886		$ 826
Pension Plans [Member] \| Water Technologies [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Actuarial Gain (Loss)			$ (9)
Amendments to Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Actuarial Gain (Loss)		$ (18)
Amendments to Plan [Member] \| Other Postretirement Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Actuarial Gain (Loss)	$ 2

EMPLOYEE BENEFIT PLANS (Components of Net Periodic Benefit Costs) (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

Prior service cost (credit)

$ 86

$ (2)

Amortization unrecognized prior service credit, before Tax

^[1]

$ (7)

(60)

(24)

Pension Plans [Member]

Net Periodic Benefit Costs [Abstract]

Service cost

Interest cost

144

Expected return on plan assets

(64)

(5)

(11)

(149)

(177)

Amortization of prior service credit

(1)

(3)

Actuarial loss

208

212

Total net periodic benefit cost (income)

$ 5

$ 109

$ 192

Weighted-Average Plan Assumptions [Abstract]

Discount rate for service cost

^[2]

1.92%

^[3]

3.95%

^[3]

4.22%

Discount rate for interest cost

^[2]

2.22%

^[3]

3.30%

^[3]

4.22%

Rate of compensation increase

^[2]

2.80%

3.04%

3.01%

Expected long-term rate of return on plan assets

^[2]

3.41%

6.71%

7.30%

Net Prior Service Credit, before Tax [Abstract]

Prior service cost (credit)

$ 0

$ 2

Amortization unrecognized prior service credit, before Tax

Total

Total recognized in net periodic benefit cost (income) and accumulated other comprehensive income

118

Prior service credit recognized in accumulated other comprehensive income [Abstract]

Prior service credit

(3)

Other Postretirement Benefit Plans [Member]

Net Periodic Benefit Costs [Abstract]

Service cost

$ 1

Interest cost

Expected return on plan assets

(34)

Amortization of prior service credit

(11)

(15)

^[2]

Actuarial loss

Total net periodic benefit cost (income)

$ 9

$ (9)

$ (6)

Weighted-Average Plan Assumptions [Abstract]

Discount rate for service cost

^[2]

3.93%

4.07%

3.81%

Discount rate for interest cost

^[2]

2.86%

2.57%

3.81%

Net Prior Service Credit, before Tax [Abstract]

Prior service cost (credit)

$ 0

$ (88)

Amortization unrecognized prior service credit, before Tax

Total

(35)

Total recognized in net periodic benefit cost (income) and accumulated other comprehensive income

(44)

Prior service credit recognized in accumulated other comprehensive income [Abstract]

Prior service credit

$ 0

(80)

^[4]

Net Periodic Benefit Costs [Abstract]

Total net periodic benefit cost (income)

$ 78

$ 145

[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.
[2]	The plan assumptions discussed are a blended weighted-average rate for Ashland’s U.S. and non-U.S. plans.
[3]	Weighted-average discount rates in 2017 and 2016 reflect the adoption of the full yield curve approach.
[4]	Entire amount related to plans that transferred to Valvoline as previously discussed within this Note M. As a result, no Ashland plans had prior service credits as of September 30, 2017.

EMPLOYEE BENEFIT PLANS (Obligations and Funded Status) (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015	May 12, 2017
Amounts Recognized in the Balance Sheet [Abstract]
Noncurrent benefit assets	$ 27	$ 36
Noncurrent benefit liabilities	(191)	(195)
Pension Plans [Member]
Change in Benefit Obligations [Roll Forward]
Service cost	8	21	$ 21
Interest cost	8	94	144
Weighted-Average Plan Assumptions [Abstract]
Defined Benefit Plan, Accumulated Benefit Obligation	441	435
Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets [Abstract]
Projected benefit obligation	254	242
Accumulated benefit obligation	239	230
Fair value of plan assets	126	112
Other Postretirement Benefit Plans [Member]
Change in Benefit Obligations [Roll Forward]
Service cost	1	1	1
Interest cost	2	3	7
Valvoline [Member]
Amounts Recognized in the Balance Sheet [Abstract]
Noncurrent benefit liabilities		(886)		$ (826)
Valvoline [Member] \| Pension Plans [Member]
Change in Plan Assets [Roll Forward]
Employer contributions		25
Continuing Operations [Member] \| Pension Plans [Member]
Change in Benefit Obligations [Roll Forward]
Benefit obligations at October 1	448	421
Service cost	8	9
Interest cost	8	11
Participant contributions	1	1
Benefits paid	(12)	(13)
Actuarial (gain) loss	(20)	66
Foreign currency exchange rate changes	13	(32)
Other	17	(1)
Curtailment and settlement	(8)	(14)
Benefit obligations at September 30	455	448	421
Change in Plan Assets [Roll Forward]
Value of plan assets at October 1	353	333
Actual return on plan assets	(9)	64
Employer contributions	7	8
Participant contributions	1	1
Benefits paid	(12)	(13)
Foreign currency exchange rate changes	8	(37)
Other	7	(3)
Value of plan assets at September 30	355	353	333
Unfunded status of the plans	(100)	(95)
Amounts Recognized in the Balance Sheet [Abstract]
Noncurrent benefit assets	27	36
Current benefit liabilities	(3)	(4)
Noncurrent benefit liabilities	(124)	(127)
Net amount recognized	$ (100)	$ (95)
Weighted-Average Plan Assumptions [Abstract]
Discount rate	2.66%	3.39%
Rate of compensation increase	2.80%	3.04%
Continuing Operations [Member] \| Other Postretirement Benefit Plans [Member]
Change in Benefit Obligations [Roll Forward]
Benefit obligations at October 1	$ 59	$ 60
Service cost	1	0
Interest cost	2	0
Participant contributions	0	0
Benefits paid	(6)	(1)
Actuarial (gain) loss	6	0
Foreign currency exchange rate changes	0	0
Other	0	0
Curtailment and settlement	0	0
Benefit obligations at September 30	62	59	$ 60
Change in Plan Assets [Roll Forward]
Value of plan assets at October 1	0
Participant contributions	0	0
Benefits paid	(6)	(1)
Value of plan assets at September 30	0	0
Unfunded status of the plans	(62)	(59)
Amounts Recognized in the Balance Sheet [Abstract]
Noncurrent benefit assets	0	0
Current benefit liabilities	(4)	(4)
Noncurrent benefit liabilities	(58)	(55)
Net amount recognized	$ (62)	$ (59)
Weighted-Average Plan Assumptions [Abstract]
Discount rate	3.66%	3.42%

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

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Defined Benefit Plan, Plan Assets Allocation [Abstract]

$ 355

$ 353

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

50.00%

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

50.00%

Asset target allocation, actual

100.00%

U.S. Benefit Plans [Member]

Expected long-term rate of return on U.S. Pension plan assets (in hundredths)

3.41%

6.71%

Fair Value, Inputs, Level 1 [Member]

Fair Value, Inputs, Level 2 [Member]

$ 18

$ 103

Fair Value, Inputs, Level 3 [Member]

337

250

Cash and Cash Equivalents [Member]

Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member]

103

Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member]

103

Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member]

Other Government Securities [Member]

Other Government Securities [Member] | Fair Value, Inputs, Level 1 [Member]

103

111

Other Government Securities [Member] | Fair Value, Inputs, Level 2 [Member]

Other Government Securities [Member] | Fair Value, Inputs, Level 3 [Member]

103

111

Corporate Debt Instruments [Member]

Corporate Debt Instruments [Member] | Fair Value, Inputs, Level 1 [Member]

123

Corporate Debt Instruments [Member] | Fair Value, Inputs, Level 2 [Member]

Corporate Debt Instruments [Member] | Fair Value, Inputs, Level 3 [Member]

123

Corporate Stocks [Member]

Defined Benefit Plan, Plan Assets Allocation [Abstract]

$ 67

$ 29

Asset target allocation, minimum

15.00%

Asset target allocation, maximum

60.00%

Asset target allocation, actual

19.00%

8.00%

^[1]

Corporate Stocks [Member] | Fair Value, Inputs, Level 1 [Member]

Corporate Stocks [Member] | Fair Value, Inputs, Level 2 [Member]

$ 0

Corporate Stocks [Member] | Fair Value, Inputs, Level 3 [Member]

Defined Benefit Plan, Plan Assets Allocation [Abstract]

$ 0

Debt Securities [Member]

Asset target allocation, minimum

40.00%

Asset target allocation, maximum

85.00%

Asset target allocation, actual

81.00%

92.00%

^[1]

Insurance Contracts [Member]

Insurance Contracts [Member] | Fair Value, Inputs, Level 1 [Member]

$ 44

$ 11

Insurance Contracts [Member] | Fair Value, Inputs, Level 2 [Member]

Insurance Contracts [Member] | Fair Value, Inputs, Level 3 [Member]

Litigation Settlement, Amount

$ 0

[1]	The asset allocations were outside of the target range at September 30, 2016 as a result of all U.S. plan assets being held as cash and cash equivalents at that time while Ashland was transitioning the plan assets subsequent to the September transfer of pension plans to Valvoline.

EMPLOYEE BENEFIT PLANS (Cash Flows) (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2015
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
Postemployment Benefits Liability, Noncurrent		$ 13
United States Pension Plan of US Entity [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Contributions by Employer	$ 1	21
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year	1
Foreign Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Contributions by Employer	6	12
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year	7
Pension Plans [Member]
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
2018	19
2019	16
2020	17
2021	18
2022	18
2023-2027	101
Other Postretirement Benefit Plans [Member]
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
2018	5
2019	5
2020	5
2021	5
2022	5
2023-2027	24
Other Pension Plan, Postretirement or Supplemental Plans [Member]
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract]
Company contributions to other employee benefit savings plans	26	35	$ 38
Postemployment Benefits Liability, Noncurrent	$ 9
Valvoline [Member] \| Foreign Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Contributions by Employer		4
Valvoline [Member] \| Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Contributions by Employer		$ 25

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

12 Months Ended

Sep. 30, 2017

USD ($)

claim

Sep. 30, 2016

USD ($)

claim

Sep. 30, 2015

USD ($)

claim

Insurance receivables [Abstract]

$ 398

Increase in Restricted Cash

335

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

Insurance settlement

$ 2

$ 3

$ 2

Number of years included in asbestos assumption model

40 years

Number of years included in asbestos assumption model

50 years

Ashland [Member]

Asbestos Claims [Roll Forward]

Open claims - beginning of year | claim

New claims filed | claim

Claims settled | claim

(1)

Claims dismissed | claim

(4)

(5)

(7)

Open claims - end of year | claim

$ 415

^[1]

$ 409

$ 438

Reserve adjustment

Amounts paid

(32)

(31)

(29)

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

419

^[1]

415

^[1]

409

Insurance receivable - beginning of year

151

^[2]

150

402

Receivable adjustment

(3)

Insurance settlement

(5)

(4)

(227)

Amounts collected

(6)

(11)

(22)

Insurance receivable - end of year

155

^[2]

$ 151

^[2]

$ 150

Possible total future litigation defense and claim settlement costs

$ 660

Hercules [Member]

Asbestos Claims [Roll Forward]

Open claims - beginning of year | claim

New claims filed | claim

Claims dismissed | claim

(4)

(6)

(2)

Open claims - end of year | claim

$ 321

^[3]

$ 311

$ 329

Reserve adjustment

Amounts paid

(14)

(15)

(22)

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

323

^[3]

321

^[3]

311

Insurance receivable - beginning of year

Receivable adjustment

Insurance settlement

(22)

Insurance receivable - end of year

Possible total future litigation defense and claim settlement costs

510

Asbestos [Member]

Insurance receivables [Abstract]

Gain Related to Litigation Settlement

$ 120

Other Current Liabilities [Member] | Ashland [Member]

Other Current Liabilities [Member] | Hercules [Member]

^[1]

Accounts Receivable [Member] | Ashland [Member]

^[1]

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

Insurance receivable - beginning of year

^[2]

Insurance receivable - end of year

^[2]

$ 14

$ 18

[1]	Included $34 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2017 and 2016.
[2]	Included $14 million and $18 million classified in accounts receivable on the Consolidated Balance Sheets as of September 30, 2017 and 2016, respectively.
[3]	Included $14 million and $16 million classified in accrued expenses and other liabilities on the Consolidated Balance Sheets as of September 30, 2017 and 2016, respectively.

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

12 Months Ended

Sep. 30, 2017

USD ($)

disposal_site

waste_treatment_or_disposal_sites

service_station_property

Sep. 30, 2016

USD ($)

Sep. 30, 2015

USD ($)

Accrual for Environmental Loss Contingencies [Roll Forward]

Environmental remediation reserve - beginning of year

$ 177

$ 186

Disbursements

(32)

(44)

Revised obligation estimates and accretion

Environmental remediation reserve - end of year

163

177

$ 186

Accrued Environmental Loss Contingencies, Noncurrent

121

134

Recorded Third-Party Environmental Recoveries Receivable

Recorded Third-Party Environmental Recoveries, Noncurrent

$ 14

Environmental Remediation Costs Recognized [Abstract]

Number of waste treatment or disposal sites where Ashland has been 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

126

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

1,225

Number of service station properties being actively remediated | service_station_property

Environmental Expense

$ 17

(2)

(3)

(2)

Total expense, net of receivable activity

^[1]

Site Contingency [Line Items]

Net expense relates to divested businesses

$ 3

$ 2

$ 5

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

15.00%

Environmental Exit Costs, Reasonably Possible Additional Loss

Site Contingency [Line Items]

$ 416

[1]

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

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Jun. 30, 2015

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

Unrealized translation gain (loss), before tax

$ 80

$ (15)

$ (368)

Unrealized translation gain (loss), tax

(1)

Unrealized translation gain (loss), net of tax

(14)

(369)

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

(2)

Adjustment of unrecognized prior service cost (credit), tax

(31)

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

(1)

Amortization unrecognized prior service credit, before Tax

^[1]

(7)

(60)

(24)

Amortization of unrecognized prior service credits, tax

Amortization of unrecognized prior service credits, net of tax

(4)

^[1]

(41)

^[1]

(17)

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

(17)

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

(8)

(11)

Unrealized gain (loss) on available-for-sale securities, net of Tax

(11)

Reclassification adjustment for gains included in net income, before tax

(2)

Reclassification adjustment for gains included in net income, tax

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

(1)

Total other comprehensive income (loss), before tax

(411)

Total other comprehensive income (loss), tax

(3)

(22)

Share Repurchase Program [Line Items]

(398)

Stock repurchase program, authorized amount

$ 1,000

1,000

Stock Repurchase Program, Remaining Authorized Repurchase Amount

$ 500

500

Payments for Repurchase of Common Stock

$ 0

500

397

Dividends, Common Stock [Abstract]

Dividends paid per common share (in USD per share)

$ 0.225

$ 0.390

$ 0.340

Common shares reserved (in shares)

13.9

Cost of Sales [Member]

Amortization unrecognized prior service credit, before Tax

$ 0

(22)

(7)

Selling, General and Administrative Expenses [Member]

Amortization unrecognized prior service credit, before Tax

(31)

(11)

Discontinued Operations [Member]

Amortization unrecognized prior service credit, before Tax

$ (7)

(6)

2016 Accelerated Share Repurchase Agreement [Member]

Share Repurchase Program [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

2015 Accelerated Share Repurchase Agreement [Member]

Share Repurchase Program [Line Items]

Payments for Repurchase of Common Stock

$ 270

Stock Repurchased and Retired During Period, Shares

0.3

1.9

2.2

Accelerated Share Repurchases, Final Price Paid Per Share

$ 125.22

Amendments to Plan [Member]

Amortization unrecognized prior service credit, before Tax

$ (40)

[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

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

Stock incentive expense recognized in income [Abstract]

Tax Benefit from Share-Based Compensation Expense

$ 28

$ 34

$ 38

Stock Appreciation Rights (SARs) [Member]

Stock incentive expense recognized in income [Abstract]

Nonvested Stock Awards [Member]

Stock incentive expense recognized in income [Abstract]

Performance Shares [Member]

^[1]

^[2]

^[3]

Stock incentive expense recognized in income [Abstract]

Cash-settled Nonvested Stock Awards [Member]

^[1]

^[3]

Stock incentive expense recognized in income [Abstract]

Cash-settled Performance Shares [Member]

$ 4

$ 1

Stock incentive expense recognized in income [Abstract]

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

$ 3

[1]	The year ended September 30, 2017 included $5 million and $3 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.
[2]	The year ended September 30, 2016 included $4 million of expense related primarily to cash-settled nonvested restricted stock awards.
[3]	The year ended September 30, 2015 included a $7 million award modification within performance shares that was designated as a cash item and $1 million of expense related primarily to cash-settled nonvested restricted stock awards.

STOCK INCENTIVE PLANS (Stock Appreciation Rights) (Details) - Stock Appreciation Rights (SARs) [Member] - USD ($)
$ / shares in Units, $ in Millions

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period

10 years 1 month

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used

Black-Scholes option-pricing model

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

Weighted-average fair value per share of SARs granted

^[1]

$ 21.25

$ 26.24

$ 30.70

Assumptions (weighted-average) [Abstract]

Risk-free interest rate

2.00%

Expected dividend yield

1.40%

1.00%

Expected volatility

23.00%

28.00%

32.00%

Expected life (in years)

5 years

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

Outstanding - beginning of year (in shares)

1,511,000

1,383,000

1,798,000

Forfeitures and expirations (in shares)

422,000

362,000

277,000

Exercised (in shares)

(330,000)

(196,000)

(584,000)

(70,000)

(38,000)

(108,000)

Transfer to Valvoline Inc.

^[2]

(352,000)

Conversion adjustment (in shares)

^[3]

1,080,000

Outstanding - end of year (in shares)

2,261,000

^[4]

1,511,000

1,383,000

Exercisable - end of year (in shares)

1,456,000

991,000

906,000

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

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

$ 83.64

$ 73.18

$ 62.85

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

109.15

111.89

113.65

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

70.55

59.69

58.80

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

105.98

95.65

83.00

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

^[2]

94.28

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

47.98

^[4],[5]

83.64

73.18

Weighted-average exercise price per share, exercisable - end of year (in usd per share)

$ 42.10

^[5]

$ 69.68

$ 59.92

Weighted-average remaining contractual life of outstanding SARs and stock options (in years)

6 years 8 months 12 days

Weighted-average remaining contractual life of outstanding, exercisable SARs and stock options (in years)

5 years 6 months

Intrinsic value of stock appreciation rights and stock options exercised

$ 14

$ 11

$ 35

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

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

$ 9

$ 13

Total unrecognized compensation costs related to stock appreciation rights, awards and options

$ 6

Weighted-average recognition period for unrecognized compensation costs related to SARs (in years)

1 year 8 months 12 days

Aggregate intrinsic value of outstanding stock appreciation rights and stock options

$ 39

Aggregate intrinsic value of exercisable stock appreciation rights and stock options

$ 34

Exercise Price Range 1 [Member]

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

Exercise price per share range, minimum (in usd per share)

$ 5.04

Exercise price per share range, maximum (in usd per share)

$ 5.70

Exercise price per share range, number of exercisable SARs and options

68,000

Exercise Price Range 2 [Member]

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

Exercise price per share range, minimum (in usd per share)

$ 20.02

Exercise price per share range, maximum (in usd per share)

$ 29.50

Exercise price per share range, number of exercisable SARs and options

381,000

Exercise Price Range 3 [Member]

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

Exercise price per share range, minimum (in usd per share)

$ 34.47

Exercise price per share range, maximum (in usd per share)

$ 47.63

Exercise price per share range, number of exercisable SARs and options

536,000

Exercise Price Range 4 [Member]

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

Exercise price per share range, minimum (in usd per share)

$ 57.96

Exercise price per share range, maximum (in usd per share)

$ 62.33

Exercise price per share range, number of exercisable SARs and options

1,276,000

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

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

1 year

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

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

3 years

[1]	The weighted-average fair values per share are as of the grant date and have not been adjusted for the Valvoline separation if the SARs were granted prior to the final distribution on May 12, 2017.
[2]	Represents the transfer of SARs held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution.
[3]	The number and exercise prices of SARs outstanding at the time of the final Valvoline Inc. distribution were proportionately adjusted to maintain the aggregate intrinsic value before and after the transaction.
[4]	Exercise prices per share for SARs outstanding at September 30, 2017 ranged from $5.04 to $5.70 for 68 thousand shares, from $20.02 to $29.50 for 381 thousand shares, from $34.47 to $47.63 for 536 thousand shares, and from $57.96 to $62.33 for 1,276 thousand shares. The weighted-average remaining contractual life of outstanding SARs and stock options was 6.7 years and exercisable SARs and stock options was 5.5 years.
[5]	The 2017 ending weighted-average exercise price per share has been adjusted for the final Valvoline Inc. distribution.

STOCK INCENTIVE PLANS (Nonvested stock awards) (Details) - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

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

Nonvested Stock Awards [Member]

$ 28

$ 34

$ 38

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]

Nonvested - beginning of year (in shares)

293,000

298,000

221,000

Transfer to Valvoline Inc. (in shares)

92,000

107,000

187,000

Vested (in shares)

(189,000)

(93,000)

(69,000)

Forfeitures (in shares)

(24,000)

(19,000)

(41,000)

^[1]

(71,000)

Conversion adjustment (in shares)

^[2]

118,000

Nonvested - end of year (in shares)

219,000

293,000

298,000

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

Weighted-average grant date fair value, nonvested - beginning of year (in usd per share)

$ 109.12

$ 106.41

$ 88.81

Weighted-average grant date fair value, granted (in usd per share)

105.10

111.76

114.97

Weighted-average grant date fair value, vested (in usd per share)

99.69

104.44

77.51

Weighted-average grant date fair value, forfeitures (in usd per share)

104.19

104.66

99.20

Weighted-average grant date fair value, transfer to Valvoline Inc. (in usd per share)

^[1]

111.97

Weighted-average grant date fair value, nonvested - end of year (in usd per share)

$ 59.16

^[3]

$ 59.16

^[3]

$ 109.12

$ 106.41

Total fair value of nonvested stock awards that vested

$ 19

$ 10

$ 5

Total unrecognized compensation costs related to stock appreciation rights, awards and options

$ 5

Weighted-average recognition period for unrecognized compensation costs related to SARs (in years)

2 years 3 months 19 days

Nonvested Stock Awards [Member] | Minimum [Member]

$ 15

^[4]

$ 17

^[5]

^[6]

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

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

1 year

Nonvested Stock Awards [Member] | Maximum [Member]

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

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

5 years

Restricted Stock [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]

Nonvested - end of year (in shares)

260,000

79,000

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

Total unrecognized compensation costs related to stock appreciation rights, awards and options

$ 9

Cash-settled Nonvested Stock Awards [Member]

$ 3

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

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

3 years

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

Cash-settled nonvested stock awards, outstanding

198,000

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

$ 5

$ 4

$ 1

[1]	Represents the transfer of nonvested stock awards held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution.
[2]	The number and exercise prices of nonvested stock awards outstanding at the time of the final Valvoline Inc. distribution were proportionately adjusted to maintain the aggregate intrinsic value before and after the transaction.
[3]	The 2017 ending weighted-average grant date fair value per share has been adjusted for the final Valvoline Inc. distribution.
[4]	The year ended September 30, 2017 included $5 million and $3 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.
[5]	The year ended September 30, 2016 included $4 million of expense related primarily to cash-settled nonvested restricted stock awards.
[6]	The year ended September 30, 2015 included a $7 million award modification within performance shares that was designated as a cash item and $1 million of expense related primarily to cash-settled nonvested restricted stock awards.

STOCK INCENTIVE PLANS (Performance shares) (Details) - Performance Shares [Member] - USD ($)
$ / shares in Units, $ in Millions

3 Months Ended

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

3 years

Number of common shares for each converted performance share

Target shares granted

^[1]

56,000

73,000

77,000

Weighted-average fair value per share

^[1]

$ 103.72

$ 110.03

$ 121.87

Actual to Target Number of Shares Issued Percentage, Minimum

0.00%

Actual to Target Number of Shares Issued Percentage, Maximum

200.00%

Target Number of Shares Issued Percentage

100.00%

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Method Used

Monte Carlo simulation valuation model

Assumptions (weighted-average) [Abstract]

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum

1.30%

0.50%

0.10%

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum

1.40%

1.20%

1.00%

Expected dividend yield

1.40%

1.20%

1.40%

Expected life (in years)

3 years

Expected volatility

25.10%

21.10%

24.20%

Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]

Nonvested - beginning of year (in shares)

199,000

204,000

368,000

Transfer to Valvoline Inc. (in shares)

71,000

73,000

103,000

Vested (in shares)

(69,000)

(72,000)

(133,000)

Forfeitures (in shares)

(54,000)

(6,000)

(134,000)

(21,000)

Conversion adjustment (in shares)

142,000

Nonvested - end of year (in shares)

268,000

199,000

204,000

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

Weighted-average grant date fair value, nonvested - beginning of year (in usd per share)

$ 106.91

$ 93.79

$ 72.20

Weighted-average grant date fair value, granted (in usd per share)

99.86

110.03

115.19

Weighted-average grant date fair value, vested (in usd per share)

85.86

76.26

68.18

Weighted-average grant date fair value, forfeitures (in usd per share)

75.52

114.83

74.79

Weighted-average grant date fair value, transfer to Valvoline Inc. (in usd per share)

115.68

Weighted-average grant date fair value, nonvested - end of year (in usd per share)

$ 63.00

^[2]

$ 63.00

^[2]

$ 106.91

$ 93.79

Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options, Grants In Perior Relating to Prior Periods

Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost

$ 7

Share-based Compensation, Arrangement by Share-based Payment Award, Plan Modification, Number of Shares

Total unrecognized compensation costs related to stock appreciation rights, awards and options

$ 8

Weighted-average recognition period for unrecognized compensation costs related to SARs (in years)

1 year 9 months 18 days

[1]	At the end of the performance period, the actual number of shares/units awarded can range from zero to 200% of the target shares/units granted, which is assumed to be 100%. Both the shares granted and weighted-average fair value per share/unit are as of the grant date and have not been adjusted for the Valvoline separation.
[2]	The 2017 ending weighted-average grant date fair value per share has been adjusted for the final Valvoline Inc. distribution.

REPORTABLE SEGMENT INFORMATION (Details) $ in Millions	12 Months Ended
REPORTABLE SEGMENT INFORMATION (Details) $ in Millions	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	May 17, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of Reportable Segments	3
Number of manufacturing facilities				14
Maximum percentage of sales which exceeds sales to any single customer	10.00%
Sales from external customers	$ 3,260	$ 3,019	$ 3,420
Net assets (liabilities)	3,406	3,165
Property, plant and equipment, net	1,970	1,900	1,929
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales from external customers	1,248	1,165	1,330
Net assets (liabilities)	674	41
Property, plant and equipment, net	1,417	1,341
Non-US [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales from external customers	2,012	1,854	$ 2,090
Net assets (liabilities)	2,732	3,124
Property, plant and equipment, net	$ 553	$ 559

REPORTABLE SEGMENT INFORMATION (Sales by product category) (Details)

Sep. 30, 2017

Specialty Ingredients [Member] | Cellulosics [Member]

100.00%

Specialty Ingredients [Member] | Poly vinyl pyrrolidones [Member]

36.00%

Specialty Ingredients [Member] | Adhesives [Member]

18.00%

Specialty Ingredients [Member] | Actives [Member]

15.00%

Specialty Ingredients [Member] | Vinyl Ethers [Member]

6.00%

Specialty Ingredients [Member] | Pharmachem [Member]

6.00%

Specialty Ingredients [Member] | Other Products [Member]

5.00%

14.00%

Composites [Member]

Composites [Member] | UPR/VER [Member]

100.00%

Composites [Member] | Gelcoats and other [Member]

83.00%

^[1]

17.00%

Intermediates and Solvents [Member] | Derivatives [Member]

100.00%

Intermediates and Solvents [Member] | Butanediol [Member]

61.00%

39.00%

[1]	UPR stands for unsaturated polyester resins and VER stands for vinyl ester resins.

REPORTABLE SEGMENT INFORMATION (Reportable segment results) (Details) - USD ($)
$ in Millions

12 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2015

Sep. 30, 2014

$ 3,260

$ 3,019

$ 3,420

$ 6,100

Equity and other Income

142

(127)

112

8,618

10,000

10,066

301

302

306

1,970

1,900

1,929

199

231

220

2,216

2,089

2,263

(2)

(1)

233

237

239

6,050

5,235

5,365

243

244

1,470

1,388

1,383

148

179

171

Composites [Member]

779

669

834

^[1]

586

520

711

189

175

174

265

261

323

(12)

(181)

292

311

368

146

160

184

Unallocated and other [Member]

(146)

(246)

(214)

1,690

3,934

3,622

165

177

188