x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
Large Accelerated Filer þ | Accelerated Filer o |
Non-Accelerated Filer o | Smaller Reporting Company o |
(Do not check if a smaller reporting company.) |
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||||||||||
STATEMENTS OF CONSOLIDATED INCOME
|
||||||||||||||||
Three months ended
|
Nine months ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
(In millions except per share data - unaudited)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
SALES
|
$ | 2,362 | $ | 2,037 | $ | 6,630 | $ | 5,993 | ||||||||
COSTS AND EXPENSES
|
||||||||||||||||
Cost of sales (a)
|
1,838 | 1,544 | 5,110 | 4,716 | ||||||||||||
Selling, general and administrative expenses (a)
|
351 | 330 | 1,038 | 976 | ||||||||||||
Research and development expenses (b)
|
23 | 23 | 63 | 73 | ||||||||||||
2,212 | 1,897 | 6,211 | 5,765 | |||||||||||||
EQUITY AND OTHER INCOME
|
13 | 12 | 42 | 29 | ||||||||||||
OPERATING INCOME
|
163 | 152 | 461 | 257 | ||||||||||||
Net interest and other financing expense (c)
|
(26 | ) | (62 | ) | (172 | ) | (144 | ) | ||||||||
Net gain on acquisitions and divestitures (d)
|
23 | 1 | 18 | 2 | ||||||||||||
Other income and expenses (e)
|
- | - | 1 | (86 | ) | |||||||||||
INCOME FROM CONTINUING OPERATIONS
|
||||||||||||||||
BEFORE INCOME TAXES
|
160 | 91 | 308 | 29 | ||||||||||||
Income tax expense - Note J
|
26 | 40 | 79 | 49 | ||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS
|
134 | 51 | 229 | (20 | ) | |||||||||||
Income (loss) from discontinued operations (net of income taxes) - Note E
|
14 | (1 | ) | 27 | (2 | ) | ||||||||||
NET INCOME (LOSS)
|
$ | 148 | $ | 50 | $ | 256 | $ | (22 | ) | |||||||
BASIC EARNINGS PER SHARE - Note K
|
||||||||||||||||
Income (loss) from continuing operations
|
$ | 1.71 | $ | .69 | $ | 2.95 | $ | (.27 | ) | |||||||
Income (loss) from discontinued operations
|
.18 | (.02 | ) | .34 | (.03 | ) | ||||||||||
Net income (loss)
|
$ | 1.89 | $ | .67 | $ | 3.29 | $ | (.30 | ) | |||||||
DILUTED EARNINGS PER SHARE - Note K
|
||||||||||||||||
Income (loss) from continuing operations
|
$ | 1.67 | $ | .68 | $ | 2.89 | $ | (.27 | ) | |||||||
Income (loss) from discontinued operations
|
.18 | (.02 | ) | .34 | (.03 | ) | ||||||||||
Net income (loss)
|
$ | 1.85 | $ | .66 | $ | 3.23 | $ | (.30 | ) | |||||||
DIVIDENDS PAID PER COMMON SHARE
|
$ | .15 | $ | .075 | $ | .30 | $ | .225 | ||||||||
(a)
|
The three and nine months ended June 30, 2009 include $9 million and $13 million, respectively, within the cost of sales caption and $4 million and $39 million, respectively, within the selling, general and administrative expenses caption for restructuring charges related to the ongoing integration and reorganization from the Hercules Incorporated (Hercules) acquisition and other cost reduction programs. In addition, a charge of $37 million for the nine months ended June 30, 2009 was recorded within the cost of sales caption for a one-time fair value assessment of Hercules inventory as of the date of the transaction.
|
(b)
|
The nine months ended June 30, 2009 includes a $10 million charge related to the valuation of the ongoing research and development projects at Hercules as of the merger date. In accordance with GAAP and SEC accounting regulations applicable at the date of acquisition, these purchased in-process research and development costs were expensed upon acquisition.
|
(c)
|
The nine months ended June 30, 2010 includes a $66 million charge related to the refinancing of the Senior Credit Facility and related extinguishment of debt during the March quarter.
|
(d)
|
Includes a gain of $23 million for the three and nine months ended June 30, 2010 related to Ashland’s acquisition of the additional 50% interest in Ara Quimica S.A. (Ara Quimica).
|
(e)
|
The nine months ended June 30, 2009 includes a $54 million loss on currency swaps related to the Hercules acquisition and a $32 million loss on auction rate securities.
|
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||
June 30
|
September 30
|
June 30
|
||||||||||
(In millions - unaudited)
|
2010
|
2009
|
2009
|
|||||||||
ASSETS
|
||||||||||||
CURRENT ASSETS
|
||||||||||||
Cash and cash equivalents
|
$ | 484 | $ | 352 | $ | 256 | ||||||
Accounts receivable (a)
|
1,569 | 1,392 | 1,405 | |||||||||
Inventories - Note H
|
611 | 527 | 517 | |||||||||
Deferred income taxes
|
102 | 115 | 95 | |||||||||
Other current assets
|
50 | 40 | 57 | |||||||||
Current assets held for sale - Note C
|
2 | 41 | 89 | |||||||||
2,818 | 2,467 | 2,419 | ||||||||||
NONCURRENT ASSETS
|
||||||||||||
Auction rate securities - Note F
|
54 | 170 | 188 | |||||||||
Goodwill - Note I
|
2,131 | 2,220 | 2,150 | |||||||||
Intangibles - Note I
|
1,103 | 1,204 | 1,178 | |||||||||
Asbestos insurance receivable (noncurrent portion) - Note O
|
463 | 510 | 464 | |||||||||
Deferred income taxes
|
99 | 161 | - | |||||||||
Other noncurrent assets
|
545 | 596 | 564 | |||||||||
Noncurrent assets held for sale - Note C
|
20 | 61 | 88 | |||||||||
4,415 | 4,922 | 4,632 | ||||||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||||||
Cost
|
3,370 | 3,449 | 3,448 | |||||||||
Accumulated depreciation and amortization
|
(1,458 | ) | (1,391 | ) | (1,334 | ) | ||||||
1,912 | 2,058 | 2,114 | ||||||||||
TOTAL ASSETS
|
$ | 9,145 | $ | 9,447 | $ | 9,165 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||
CURRENT LIABILITIES
|
||||||||||||
Short-term debt - Note G
|
$ | 287 | $ | 23 | $ | 44 | ||||||
Current portion of long-term debt - Note G
|
32 | 53 | 71 | |||||||||
Trade and other payables
|
1,020 | 944 | 783 | |||||||||
Accrued expenses and other liabilities
|
474 | 541 | 455 | |||||||||
Current liabilities held for sale - Note C
|
- | 5 | 17 | |||||||||
1,813 | 1,566 | 1,370 | ||||||||||
NONCURRENT LIABILITIES
|
||||||||||||
Long-term debt (noncurrent portion) - Note G
|
1,102 | 1,537 | 1,878 | |||||||||
Employee benefit obligations - Note L
|
1,129 | 1,214 | 657 | |||||||||
Asbestos litigation reserve (noncurrent portion) - Note O
|
855 | 956 | 828 | |||||||||
Deferred income taxes
|
- | - | 147 | |||||||||
Other noncurrent liabilities
|
590 | 590 | 578 | |||||||||
3,676 | 4,297 | 4,088 | ||||||||||
STOCKHOLDERS’ EQUITY
|
3,656 | 3,584 | 3,707 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 9,145 | $ | 9,447 | $ | 9,165 | ||||||
(a)
|
Accounts receivable includes an allowance for doubtful accounts of $26 million and $43 million at June 30, 2010 and 2009, respectively, and $38 million at September 30, 2009.
|
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
|||||||||||||||||||||
STATEMENTS OF CONSOLIDATED STOCKHOLDERS’ EQUITY
|
|||||||||||||||||||||
Accumulated
|
|||||||||||||||||||||
other
|
|||||||||||||||||||||
Common
|
Paid-in
|
Retained
|
comprehensive
|
||||||||||||||||||
(In millions - unaudited)
|
stock
|
capital
|
earnings
|
income (loss)
|
(a)
|
Total
|
|||||||||||||||
BALANCE AT SEPTEMBER 30, 2008
|
$ | 1 | $ | 33 | $ | 3,138 | $ | 30 | $ | 3,202 | |||||||||||
Total comprehensive income (loss) (b)
|
(22 | ) | 71 | 49 | |||||||||||||||||
Regular dividend, $.225 per common share
|
(17 | ) | (17 | ) | |||||||||||||||||
Issuance of common shares - Note M
|
450 | 450 | |||||||||||||||||||
Common shares issued under stock
|
|||||||||||||||||||||
incentive and other plans (c) (d)
|
26 | 26 | |||||||||||||||||||
Other
|
(3 | ) | (3 | ) | |||||||||||||||||
BALANCE AT JUNE 30, 2009
|
$ | 1 | $ | 506 | $ | 3,099 | $ | 101 | $ | 3,707 | |||||||||||
BALANCE AT SEPTEMBER 30, 2009
|
$ | 1 | $ | 521 | $ | 3,185 | $ | (123 | ) | $ | 3,584 | ||||||||||
Total comprehensive income (loss) (b)
|
256 | (285 | ) | (29 | ) | ||||||||||||||||
Regular dividend, $.30 per common share
|
(23 | ) | (23 | ) | |||||||||||||||||
Issuance of common shares (e) - Note M
|
100 | 100 | |||||||||||||||||||
Common shares issued under stock
|
|||||||||||||||||||||
incentive and other plans (c) (d)
|
24 | 24 | |||||||||||||||||||
BALANCE AT JUNE 30, 2010
|
$ | 1 | $ | 645 | $ | 3,418 | $ | (408 | ) | $ | 3,656 | ||||||||||
(a)
|
At June 30, 2010 and 2009, the after-tax accumulated other comprehensive (loss) income of ($408) million for 2010 and $101 million for 2009 was comprised of pension and postretirement obligations of $453 million for 2010 and $107 million for 2009 and net unrealized translation gains of $45 million for 2010 and $208 million for 2009.
|
(b)
|
Reconciliations of net income (loss) to total comprehensive (loss) income follow.
|
Three months ended
|
Nine months ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
(In millions)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Net income (loss)
|
$ | 148 | $ | 50 | $ | 256 | $ | (22 | ) | |||||||
Pension and postretirement obligation adjustments, net of tax
|
(1 | ) | (2 | ) | 9 | - | ||||||||||
Unrealized translation (loss) gain, net of tax
|
(171 | ) | 112 | (294 | ) | 51 | ||||||||||
Unrealized gain on investment securities, net of tax
|
- | - | - | 20 | ||||||||||||
Total comprehensive (loss) income
|
$ | (24 | ) | $ | 160 | $ | (29 | ) | $ | 49 | ||||||
(c)
|
Common shares issued were 894,589 and 922,920 for the nine months ended June 30, 2010 and 2009, respectively.
|
(d)
|
Includes income tax benefits resulting from the exercise of stock options of $8 million for the nine months ended June 30, 2010. Includes $10 million from the fair value of Hercules stock options converted into stock options for Ashland shares for the nine months ended June 30, 2009.
|
(e)
|
Relates to the November 2009 voluntary pension plan contribution of approximately 3.0 million shares of Ashland Common Stock.
|
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS
|
||||||||
Nine months ended
|
||||||||
June 30
|
||||||||
(In millions - unaudited)
|
2010
|
2009
|
||||||
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS
|
||||||||
Net income (loss)
|
$ | 256 | $ | (22 | ) | |||
(Income) loss from discontinued operations (net of income taxes)
|
(27 | ) | 2 | |||||
Adjustments to reconcile income (loss) from continuing operations
|
||||||||
to cash flows from operating activities
|
||||||||
Depreciation and amortization
|
226 | 244 | ||||||
Debt issuance cost amortization
|
77 | 35 | ||||||
Purchased in-process research and development amortization
|
- | 10 | ||||||
Deferred income taxes
|
45 | 33 | ||||||
Equity income from affiliates
|
(16 | ) | (9 | ) | ||||
Distributions from equity affiliates
|
11 | 13 | ||||||
Gain from sale of property and equipment
|
(5 | ) | - | |||||
Stock based compensation expense
|
10 | 6 | ||||||
Stock contributions to qualified savings plans
|
18 | 8 | ||||||
Net gain on acquisitions and divestitures
|
(18 | ) | (2 | ) | ||||
Loss on early retirement of debt
|
5 | - | ||||||
Inventory fair value adjustment related to Hercules acquisition
|
- | 37 | ||||||
Loss on currency swaps related to Hercules acquisition
|
- | 54 | ||||||
(Gain) loss on auction rate securities
|
(1 | ) | 32 | |||||
Change in operating assets and liabilities (a)
|
(283 | ) | 208 | |||||
298 | 649 | |||||||
CASH FLOWS PROVIDED (USED) BY INVESTING ACTIVITIES FROM
|
||||||||
CONTINUING OPERATIONS
|
||||||||
Additions to property, plant and equipment
|
(100 | ) | (107 | ) | ||||
Proceeds from disposal of property, plant and equipment
|
14 | 5 | ||||||
Purchase of operations - net of cash acquired
|
(24 | ) | (2,080 | ) | ||||
Proceeds from sale of operations
|
60 | 7 | ||||||
Settlement of currency swaps related to Hercules acquisition
|
- | (95 | ) | |||||
Proceeds from sales and maturities of available-for-sale securities
|
117 | 55 | ||||||
67 | (2,215 | ) | ||||||
CASH FLOWS (USED) PROVIDED BY FINANCING ACTIVITIES FROM
|
||||||||
CONTINUING OPERATIONS
|
||||||||
Proceeds from issuance of long-term debt
|
313 | 2,628 | ||||||
Repayment of long-term debt
|
(776 | ) | (1,502 | ) | ||||
Proceeds from/repayments of issuance of short-term debt
|
264 | 3 | ||||||
Debt issuance costs
|
(13 | ) | (161 | ) | ||||
Cash dividends paid
|
(23 | ) | (17 | ) | ||||
Proceeds from exercise of stock options
|
6 | 2 | ||||||
Excess tax benefits related to share-based payments
|
2 | - | ||||||
(227 | ) | 953 | ||||||
CASH PROVIDED (USED) BY CONTINUING OPERATIONS
|
138 | (613 | ) | |||||
Cash used by discontinued operations
|
||||||||
Operating cash flows
|
- | (1 | ) | |||||
Effect of currency exchange rate changes on cash and cash equivalents
|
(6 | ) | (16 | ) | ||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
132 | (630 | ) | |||||
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR
|
352 | 886 | ||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD
|
$ | 484 | $ | 256 | ||||
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
Purchase price allocation (in millions)
|
At
November 13
2008
|
||||
Assets: |
|
|
|
||
Cash | $ | 54 | |||
Accounts receivable
|
355 | ||||
Inventory | 261 | ||||
Other current assets | 57 | ||||
Intangible assets | 1,093 | ||||
Goodwill | 1,808 | ||||
Asbestos receivable | 97 | ||||
Property, plant and equipment | 1,058 | ||||
Purchased in-process research and development | 10 | ||||
Other noncurrent assets | 187 | ||||
Liabilities: | |||||
Accounts payable | (232 | ) | |||
Accrued expenses | (217 | ) | |||
Debt |
(798
|
)
|
|||
Pension and other postretirement obligations |
(316
|
)
|
|||
Environmental | (106 | ) | |||
Asbestos |
(451
|
)
|
|||
Deferred tax - net |
(144
|
)
|
|||
Other noncurrent liabilities |
(122
|
)
|
|||
Total purchase price |
$
|
2,594
|
|
(In millions)
|
|||||
Functional Ingredients
|
Corebond
|
$ | 2 | |||
Water Technologies
|
Biofilm Sensor
|
$ | 2 | |||
Water Technologies
|
Surface Dry Strength
|
$ | 2 | |||
Functional Ingredients / Water Technologies
|
Other
|
$ | 4 | |||
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
Life
|
|||||||||
Intangible asset type (in millions)
|
Value
|
(years)
|
|||||||
Customer relationships - Functional Ingredients
|
$ | 289 | 10 - 24 | ||||||
Customer relationships - Water Technologies
|
240 | 12 | |||||||
Developed technology - Functional Ingredients
|
217 | 15 | |||||||
Developed technology - Water Technologies
|
60 | 5 - 20 | |||||||
Product trade names - Functional Ingredients
|
32 | 20 | |||||||
Product trade names - Functional Ingredients | 104 | Indefinite | |||||||
Product trade names - Water Technologies
|
151 |
Indefinite
|
|||||||
Total
|
$ | 1,093 |
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
June 30 |
September 30
|
June 30 | ||||||||||||
(In millions - unaudited)
|
2010
|
2009
|
2009
|
|||||||||||
Accounts receivable
|
$ | 1 | $ | 13 | $ | 42 | ||||||||
Inventories
|
1 | 28 | 46 | |||||||||||
Other current assets | - | - | 1 | |||||||||||
Current assets
|
$ | 2 | $ | 41 | $ | 89 | ||||||||
Property, plant and equipment, net
|
$ | - | $ | 39 | $ | 42 | ||||||||
Goodwill and intangible assets | - | - | 15 | |||||||||||
Deferred income tax | - | - | - | |||||||||||
Other noncurrent assets | - | - | 6 | |||||||||||
Noncurrent assets | $ | - | $ | 39 | $ | 63 | ||||||||
Trade payables | $ | - | $ | 5 | $ | 16 | ||||||||
Accrued expenses and other liabilities
|
- | - | 1 | |||||||||||
Current liabilities
|
$ | - | $ | 5 | $ | 17 |
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
(In millions)
|
Severance |
|
|||
Balance as of September 30, 2009 | $ | 38 | |||
Restructuring reserve | 1 | ||||
Utilization (cash paid or otherwise settled) | (25 | ) | |||
Balance at June 30, 2010 | $ | 14 | |||
Balance as of September 30, 2008 | $ | 7 | |||
Restructuring reserve | 73 | ||||
Utilization (cash paid or otherwise settled) | (32 | ) | |||
Balance at June 30, 2009 | $ | 48 |
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
Three months ended
|
Nine months ended
|
|||||||||||||||||
June 30
|
June 30
|
|||||||||||||||||
(In millions)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||||
Income from discontinued operations (net of tax)
|
||||||||||||||||||
Asbestos-related litigation reserves and receivables
|
$ | 12 | $ | 3 | $ | 21 | $ | 3 | ||||||||||
APAC
|
1 | - | 1 | - | ||||||||||||||
Gain (loss) on disposal of discontinued operations (net of tax)
|
||||||||||||||||||
APAC
|
1 | (1 | ) | 3 | (2 | ) | ||||||||||||
Electronic Chemicals
|
- | (3 | ) | 2 | (3 | ) | ||||||||||||
Total income (loss) from discontinued operations (net of tax)
|
$ | 14 | $ | (1 | ) | $ | 27 | $ | (2 | ) |
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
Quoted prices | ||||||||||||||||||||||
in active
|
Significant
|
|||||||||||||||||||||
markets for
|
other
|
Significant
|
||||||||||||||||||||
|
Total |
identical
|
observable
|
unobservable
|
||||||||||||||||||
Carrying
|
fair |
assets
|
inputs
|
inputs
|
||||||||||||||||||
(In millions)
|
value
|
value |
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||||
Assets
|
||||||||||||||||||||||
Cash and cash equivalents
|
$ | 484 | $ | 484 | $ | 484 | $ | - | $ | - | ||||||||||||
Auction rate securities
|
54 | 54 | - | - | 54 | |||||||||||||||||
Deferred compensation investments (a)
|
166 | 166 | 63 | 103 | - | |||||||||||||||||
Investments (a)
|
1 | 1 | 1 | - | - | |||||||||||||||||
Total assets at fair value
|
$ | 705 | $ | 705 | $ | 548 | $ | 103 | $ | 54 | ||||||||||||
(a) |
Included in other noncurrent assets in the Condensed Consolidated Balance Sheet.
|
Three months ended
|
Nine months ended | |||||||||||||||||
June 30 | June 30 | |||||||||||||||||
(In millions)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||||
Par value
|
$ | 37 | $ | 29 | $ | 132 | $ | 62 | ||||||||||
Cash received
|
33 | 26 | 117 | 55 | ||||||||||||||
Gain or (loss)
|
- | - | 1 | (2 | ) |
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
|
(In millions)
|
Level 3
|
||||
Balance as of October 1, 2009
|
$ | 170 | ||||
Sales of auction rate securities
|
(117 | ) | ||||
Realized gain recognized in the Consolidated Statement of Income
|
1 | |||||
Balance as of June 30, 2010
|
$ | 54 | ||||
Balance as of October 1, 2008
|
$ | 243 | ||||
Sales of auction rate securities
|
(55 | ) | ||||
Balance as of June 30, 2009
|
$ | 188 | ||||
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
June 30
|
September 30
|
June 30
|
||||||||||||
2010
|
2009
|
2009
|
||||||||||||
Term Loan A, due 2013 (a)
|
$ | - | $ | 219 | $ | 340 | ||||||||
Term Loan B, due 2014 (a)
|
- | 542 | 780 | |||||||||||
Term Loan A, due 2014 (a)
|
296 | - | - | |||||||||||
6.60% notes, due 2027 (b)
|
12 | 12 | 12 | |||||||||||
Accounts receivable securitization
|
250 | - | - | |||||||||||
9.125% notes, due 2017
|
630 | 628 | 628 | |||||||||||
Medium-term notes, due 2013-2019, interest at a weighted-
|
||||||||||||||
average rate of 8.4% at June 30, 2010 (7.7% to 9.4%)
|
21 | 21 | 21 | |||||||||||
8.80% debentures, due 2012
|
20 | 20 | 20 | |||||||||||
Hercules Tianpu - term notes, due through 2011 (b)
|
14 | 19 | 19 | |||||||||||
Hercules Jiangmen - term notes, due through 2010 (b) | - | - | 1 | |||||||||||
Hercules Nanjing - term notes, due 2015 | 13 | - | - | |||||||||||
6.50% junior subordinated notes, due 2029 (b)
|
126 | 125 | 124 | |||||||||||
International revolver agreements
|
38 | 22 | 45 | |||||||||||
Other
|
1 | 5 | 3 | |||||||||||
Total debt
|
1,421 | 1,613 | 1,993 | |||||||||||
Short-term debt
|
(287 | ) | (23 | ) | (44 | ) | ||||||||
Current portion of long-term debt
|
(32 | ) | (53 | ) | (71 | ) | ||||||||
Long-term debt (less current portion)
|
$ | 1,102 | $ | 1,537 | $ | 1,878 | ||||||||
(a) | Senior credit facilities. On March 31, 2010, Term Loan A due 2014 was entered into while the Term Loan A due 2013 and Term Loan B due 2014 were paid in full. | ||
(b)
|
Hercules retained instruments.
|
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
|
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
June 30
|
September 30
|
June 30
|
||||||||||||
(In millions)
|
2010
|
2009
|
2009
|
|||||||||||
Finished products
|
$ | 598 | $ | 486 | $ | 468 | ||||||||
Raw materials, supplies and work in process
|
159 | 166 | 168 | |||||||||||
LIFO carrying values
|
(146 | ) | (125 | ) | (119 | ) | ||||||||
$ | 611 | $ | 527 | $ | 517 |
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
||||||||
Functional
|
Water
|
Performance
|
Consumer
|
|||||||||||||||||||||||
(In millions)
|
Ingredients
|
Technologies
|
Materials
|
(a)
|
Markets
|
Distribution
|
Total
|
|||||||||||||||||||
Balance at September 30, 2009
|
$ | 1,106 | $ | 626 | $ | 293 | $ | 115 | $ | 80 | $ | 2,220 | ||||||||||||||
Acquisitions
|
1 | 1 | 42 | - | - | 44 | ||||||||||||||||||||
Currency translation adjustment
|
(80 | ) | (43 | ) | (10 | ) | - | - | (133 | ) | ||||||||||||||||
Balance at June 30, 2010
|
$ | 1,027 | $ | 584 | $ | 325 | $ | 115 | $ | 80 | $ | 2,131 | ||||||||||||||
(a) |
Goodwill consisted of $51 million and $274 million, respectively, for the Castings Solutions and Composite Polymers/Specialty Polymers and Adhesives reporting units. The addition of $42 million of goodwill is related to the Ara Quimica acquisition.
|
Functional
|
Water
|
Performance
|
Consumer
|
|||||||||||||||||||||||
(In millions)
|
Ingredients
|
Technologies
|
(a)
|
Materials
|
(b)
|
Markets
|
Distribution
|
Total
|
||||||||||||||||||
Balance at September 30, 2008
|
$ | - | $ | 56 | $ | 196 | $ | 30 | $ | 1 | $ | 283 | ||||||||||||||
Acquisitions
|
1,016 | 508 | 97 | 85 | 79 | 1,785 | ||||||||||||||||||||
Currency translation adjustment
|
61 | 24 | (3 | ) | - | - | 82 | |||||||||||||||||||
Balance at June 30, 2009
|
$ | 1,077 | $ | 588 | $ | 290 | $ | 115 | $ | 80 | $ | 2,150 | ||||||||||||||
(a)
|
Excludes goodwill of $15 million as of June 30, 2009 associated with the Drew Marine sale during 2009 that has been classified within assets held for sale.
|
(b)
|
Goodwill consisted of $51 million and $239 million, respectively, for the Castings Solutions and Composite Polymers/Specialty Polymers and Adhesives reporting units.
|
June 30, 2010
|
||||||||||||||
Gross
|
Net
|
|||||||||||||
carrying
|
Accumulated
|
carrying
|
||||||||||||
(In millions)
|
amount
|
amortization
|
amount
|
|||||||||||
Trademarks and trade names
|
$ | 353 | $ | (26 | ) | $ | 327 | |||||||
Intellectual property
|
331 | (58 | ) | 273 | ||||||||||
Customer relationships
|
537 | (70 | ) | 467 | ||||||||||
Other intangibles
|
63 | (27 | ) | 36 | ||||||||||
Total intangible assets
|
$ | 1,284 | $ | (181 | ) | $ | 1,103 | |||||||
September 30, 2009
|
||||||||||||||
Gross
|
Net
|
|||||||||||||
carrying
|