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
|
||||||||
December 31
|
||||||||
(In millions except per share data - unaudited)
|
2011
|
2010
|
||||||
SALES
|
$ | 1,930 | $ | 1,433 | ||||
COSTS AND EXPENSES
|
||||||||
Cost of sales (a)
|
1,408 | 1,035 | ||||||
Selling, general and administrative expense (b)
|
362 | 276 | ||||||
Research and development expense
|
30 | 20 | ||||||
1,800 | 1,331 | |||||||
EQUITY AND OTHER INCOME
|
14 | 12 | ||||||
OPERATING INCOME
|
144 | 114 | ||||||
Net interest and other financing expense
|
(57 | ) | (27 | ) | ||||
Net gain (loss) on acquisitions and divestitures (c)
|
(4 | ) | 21 | |||||
INCOME FROM CONTINUING OPERATIONS
|
||||||||
BEFORE INCOME TAXES
|
83 | 108 | ||||||
Income tax expense - Note J
|
23 | 37 | ||||||
INCOME FROM CONTINUING OPERATIONS
|
60 | 71 | ||||||
Income from discontinued operations (net of income taxes) - Note D (d)
|
1 | 28 | ||||||
NET INCOME
|
$ | 61 | $ | 99 | ||||
BASIC EARNINGS PER SHARE - Note M
|
||||||||
Income from continuing operations
|
$ | .77 | $ | .92 | ||||
Income from discontinued operations
|
.01 | .35 | ||||||
Net income
|
$ | .78 | $ | 1.27 | ||||
DILUTED EARNINGS PER SHARE - Note M
|
||||||||
Income from continuing operations
|
$ | .76 | $ | .91 | ||||
Income from discontinued operations
|
.01 | .34 | ||||||
Net income
|
$ | .77 | $ | 1.25 | ||||
DIVIDENDS PAID PER COMMON SHARE
|
$ | .175 | $ | .15 | ||||
(a)
|
Includes a non-cash charge of $25 million for the three months ended December 31, 2011 related to the fair value assessment of inventory acquired from ISP at the date of acquisition.
|
(b)
|
Includes a restructuring charge of $28 million for the three months ended December 31, 2011 related to the ongoing efforts to reduce stranded costs resulting from the divestiture of Distribution, the contribution of the Casting Solutions business to the expanded global joint venture with Süd-Chemie AG and integration activities related to the acquisition of ISP.
|
(c)
|
Includes a gain of $19 million for the three months ended December 31, 2010 related to the formation of an expanded global joint venture with Süd-Chemie AG. The gain is primarily attributable to the fair value remeasurement of the net assets contributed to the joint venture exceeding the recorded values.
|
(d)
|
Includes income of $26 million for the three months ended December 31, 2010 related to direct results of the Distribution business that was divested on March 31, 2011. Due to the sale qualifying for discontinued operation treatment, the direct results of this business have been presented within this caption.
|
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
December 31
|
September 30
|
|||||||
(In millions - unaudited)
|
2011
|
2011
|
||||||
ASSETS
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
$ | 466 | $ | 737 | ||||
Accounts receivable (a)
|
1,369 | 1,482 | ||||||
Inventories - Note G
|
981 | 925 | ||||||
Deferred income taxes
|
163 | 163 | ||||||
Other assets
|
84 | 80 | ||||||
3,063 | 3,387 | |||||||
NONCURRENT ASSETS
|
||||||||
Goodwill - Note H
|
3,294 | 3,291 | ||||||
Intangibles - Note H
|
2,088 | 2,134 | ||||||
Asbestos insurance receivable (noncurrent portion) - Note L
|
440 | 448 | ||||||
Deferred income taxes
|
11 | 11 | ||||||
Other assets
|
759 | 781 | ||||||
6,592 | 6,665 | |||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||
Cost
|
4,308 | 4,306 | ||||||
Accumulated depreciation and amortization
|
(1,450 | ) | (1,392 | ) | ||||
2,858 | 2,914 | |||||||
TOTAL ASSETS
|
$ | 12,513 | $ | 12,966 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Short-term debt - Note I
|
$ | 76 | $ | 83 | ||||
Current portion of long-term debt - Note I
|
121 | 101 | ||||||
Trade and other payables
|
770 | 911 | ||||||
Accrued expenses and other liabilities
|
497 | 644 | ||||||
1,464 | 1,739 | |||||||
NONCURRENT LIABILITIES
|
||||||||
Long-term debt (noncurrent portion) - Note I
|
3,607 | 3,648 | ||||||
Employee benefit obligations - Note K
|
1,546 | 1,566 | ||||||
Asbestos litigation reserve (noncurrent portion) - Note L
|
766 | 783 | ||||||
Deferred income taxes
|
403 | 404 | ||||||
Other liabilities
|
662 | 691 | ||||||
6,984 | 7,092 | |||||||
STOCKHOLDERS’ EQUITY
|
4,065 | 4,135 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 12,513 | $ | 12,966 | ||||
(a)
|
Accounts receivable includes an allowance for doubtful accounts of $31 million and $37 million at December 31, 2011 and September 30, 2011, respectively.
|
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
|||||||||||||||||||||
STATEMENTS OF CONSOLIDATED STOCKHOLDERS’ EQUITY
|
|||||||||||||||||||||
Accumulated
|
|||||||||||||||||||||
other
|
|||||||||||||||||||||
Common
|
Paid-in
|
Retained
|
comprehensive
|
||||||||||||||||||
(In millions - unaudited)
|
stock
|
capital
|
earnings
|
income
|
(a)
|
Total
|
|||||||||||||||
BALANCE AT SEPTEMBER 30, 2011
|
$ | 1 | $ | 627 | $ | 3,200 | $ | 307 | $ | 4,135 | |||||||||||
Total comprehensive income (loss) (b)
|
61 | (116 | ) | (55 | ) | ||||||||||||||||
Dividend on common stock, $.175 per share
|
(14 | ) | (14 | ) | |||||||||||||||||
Common shares issued under stock
|
|||||||||||||||||||||
incentive and other plans (c)
|
(1 | ) | (1 | ) | |||||||||||||||||
BALANCE AT DECEMBER 31, 2011
|
$ | 1 | $ | 626 | $ | 3,247 | $ | 191 | $ | 4,065 | |||||||||||
(a)
|
At December 31, 2011, the after-tax accumulated other comprehensive income of $191 million was comprised of unrecognized prior service credits as a result of certain employee benefit plan amendments of $61 million, net unrealized translation gains of $147 million, and net unrealized losses on interest rate hedges of $17 million.
|
(b)
|
Reconciliations of net income to total comprehensive income (loss) follow.
|
Three months ended
|
||||||||
December 31
|
||||||||
(In millions)
|
2011
|
2010
|
||||||
Net income
|
$ | 61 | $ | 99 | ||||
Unrealized translation loss, net of tax
|
(111 | ) | (18 | ) | ||||
Net unrealized loss on interest rate hedges, net of tax
|
(5 | ) | - | |||||
Total comprehensive income (loss)
|
$ | (55 | ) | $ | 81 | |||
(c)
|
Common shares issued were 220,180 for the three months ended December 31, 2011.
|
ASHLAND INC. AND CONSOLIDATED SUBSIDIARIES
|
||||||||
STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS
|
||||||||
Three months ended
|
||||||||
December 31
|
||||||||
(In millions - unaudited)
|
2011
|
2010
|
||||||
CASH FLOWS (USED) PROVIDED BY OPERATING ACTIVITIES FROM
|
||||||||
CONTINUING OPERATIONS
|
||||||||
Net income
|
$ | 61 | $ | 99 | ||||
Income from discontinued operations (net of income taxes)
|
(1 | ) | (28 | ) | ||||
Adjustments to reconcile income from continuing operations to
|
||||||||
cash flows from operating activities
|
||||||||
Depreciation and amortization
|
104 | 73 | ||||||
Debt issuance cost amortization
|
6 | 4 | ||||||
Deferred income taxes
|
2 | 10 | ||||||
Equity income from affiliates
|
(7 | ) | (3 | ) | ||||
Distributions from equity affiliates
|
1 | 2 | ||||||
Gain from sale of property and equipment
|
- | (3 | ) | |||||
Stock based compensation expense
|
6 | 4 | ||||||
Stock contributions to qualified savings plans
|
- | 12 | ||||||
Net (gain) loss on acquisitions and divestitures
|
2 | (21 | ) | |||||
Inventory fair value adjustment related to ISP acquisition
|
25 | - | ||||||
Change in operating assets and liabilities (a)
|
(380 | ) | (187 | ) | ||||
(181 | ) | (38 | ) | |||||
CASH FLOWS (USED) PROVIDED BY INVESTING ACTIVITIES FROM
|
||||||||
CONTINUING OPERATIONS
|
||||||||
Additions to property, plant and equipment
|
(44 | ) | (22 | ) | ||||
Proceeds from disposal of property, plant and equipment
|
1 | 4 | ||||||
Purchase of operations - net of cash acquired
|
- | (5 | ) | |||||
Proceeds from sale of operations or equity investments
|
- | 21 | ||||||
(43 | ) | (2 | ) | |||||
CASH FLOWS (USED) PROVIDED BY FINANCING ACTIVITIES FROM
|
||||||||
CONTINUING OPERATIONS
|
||||||||
Proceeds from issuance of long-term debt
|
- | 11 | ||||||
Repayment of long-term debt
|
(23 | ) | (10 | ) | ||||
(Repayment of)/proceeds from short-term debt
|
(7 | ) | 6 | |||||
Cash dividends paid
|
(14 | ) | (12 | ) | ||||
Proceeds from exercise of stock options
|
1 | 1 | ||||||
Excess tax benefits related to share-based payments
|
- | 1 | ||||||
(43 | ) | (3 | ) | |||||
CASH (USED) PROVIDED BY CONTINUING OPERATIONS
|
(267 | ) | (43 | ) | ||||
Cash (used) provided by discontinued operations
|
||||||||
Operating cash flows
|
(3 | ) | - | |||||
Investing cash flows
|
- | (1 | ) | |||||
Effect of currency exchange rate changes on cash and cash equivalents
|
(1 | ) | 1 | |||||
DECREASE IN CASH AND CASH EQUIVALENTS
|
(271 | ) | (43 | ) | ||||
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR
|
737 | 417 | ||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD
|
$ | 466 | $ | 374 | ||||
(a)
|
Excludes changes resulting from operations acquired or sold.
|
At
|
||||
Purchase price allocation (in millions)
|
August 23, 2011 | |||
Assets:
|
||||
Cash
|
$ | 186 | ||
Accounts receivable
|
286 | |||
Inventory
|
381 | |||
Other current assets
|
51 | |||
Intangible assets
|
1,101 | |||
Goodwill
|
1,234 | |||
Property, plant and equipment
|
1,140 | |||
Other noncurrent assets
|
85 | |||
Liabilities:
|
||||
Accounts payable
|
(175 | ) | ||
Accrued expenses
|
(211 | ) | ||
Debt
|
(1,196 | ) | ||
Deferred tax - net
|
(570 | ) | ||
Employee benefit obligations
|
(72 | ) | ||
Other noncurrent liabilities
|
(63 | ) | ||
Total purchase price
|
$ | 2,177 | ||
Life
|
||||||||
Intangible asset type (in millions)
|
Value
|
(years)
|
||||||
Customer relationships - Specialty Ingredients
|
$ | 266 | 18 | |||||
Developed technology - Specialty Ingredients
|
498 | 8 - 15 | ||||||
Developed technology - Performance Materials
|
19 | 8 - 15 | ||||||
IPR&D - Specialty Ingredients
|
135 |
Indefinite
|
||||||
Product trade names - Specialty Ingredients
|
174 |
Indefinite
|
||||||
Product trade names - Specialty Ingredients
|
3 | 4 | ||||||
Product trade names - Performance Materials
|
6 | 4 | ||||||
Total
|
$ | 1,101 | ||||||
Three months ended
|
||||||||
December 31
|
||||||||
(In millions)
|
2011
|
2010
|
||||||
Income (loss) from discontinued operations (net of tax)
|
||||||||
Distribution (a)
|
$ | (1 | ) | $ | 26 | |||
Asbestos-related litigation reserves and receivables
|
6 | 1 | ||||||
Gain (loss) on disposal of discontinued operations (net of tax)
|
||||||||
Distribution
|
(4 | ) | - | |||||
APAC
|
- | 1 | ||||||
Total income from discontinued operations (net of tax)
|
$ | 1 | $ | 28 | ||||
(a)
|
For the three months ended December 31, 2010, the pretax income reported for Distribution was $36 million.
|
(In millions)
|
Severance
|
|||
Balance as of September 30, 2011
|
$ | 45 | ||
Restructuring reserve
|
28 | |||
Utilization (cash paid or otherwise settled)
|
(9 | ) | ||
Balance at December 31, 2011
|
$ | 64 | ||
Balance as of September 30, 2010
|
$ | 26 | ||
Utilization (cash paid or otherwise settled)
|
(5 | ) | ||
Balance at December 31, 2010
|
$ | 21 | ||
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
|
$ | 466 | $ | 466 | $ | 466 | $ | - | $ | - | ||||||||||
Auction rate securities
|
10 | 10 | - | - | 10 | |||||||||||||||
Deferred compensation investments (a)
|
173 | 173 | 60 | 113 | - | |||||||||||||||
Investments of captive insurance company (a)
|
2 | 2 | 2 | - | - | |||||||||||||||
Total assets at fair value
|
$ | 651 | $ | 651 | $ | 528 | $ | 113 | $ | 10 | ||||||||||
Liabilities
|
||||||||||||||||||||
Interest rate swap derivatives
|
$ | 29 | $ | 29 | $ | - | $ | 29 | $ | - | ||||||||||
(a)
|
Included in other noncurrent assets in the Condensed Consolidated Balance Sheets.
|
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
|
$ | 737 | $ | 737 | $ | 737 | $ | - | $ | - | ||||||||||
Auction rate securities
|
10 | 10 | - | - | 10 | |||||||||||||||
Deferred compensation investments (a)
|
185 | 185 | 76 | 109 | - | |||||||||||||||
Investments of captive insurance company (a)
|
2 | 2 | 2 | - | - | |||||||||||||||
Foreign currency derivatives
|
1 | 1 | - | 1 | - | |||||||||||||||
Total assets at fair value
|
$ | 935 | $ | 935 | $ | 815 | $ | 110 | $ | 10 | ||||||||||
Liabilities
|
||||||||||||||||||||
Interest rate swap derivatives
|
$ | 20 | $ | 20 | $ | - | $ | 20 | $ | - | ||||||||||
Three months ended
|
||||||||
December 31
|
||||||||
(In millions)
|
2011
|
2010
|
||||||
Foreign currency derivative gain
|
$ | 1 | $ | - | ||||
December 31
|
September 30
|
|||||||
(In millions)
|
2011
|
2011
|
||||||
Foreign currency derivative assets
|
$ | - | $ | 1 | ||||
Notional contract values
|
52 | 62 | ||||||
Foreign currency derivative liabilities
|
$ | - | $ | - | ||||
Notional contract values
|
45 | 35 | ||||||
December 31
|
September 30
|
||||||||
(In millions)
|
Consolidated balance sheet caption
|
2011
|
2011
|
||||||
Interest rate swap liabilities
|
Accrued expenses and other liabilities
|
$ | 17 | $ | 17 | ||||
Interest rate swap liabilities
|
Other noncurrent liabilities
|
12 | 3 |
Change in
|
Loss reclassified | |||||||
unrealized loss |
from AOCI
|
|||||||
(In millions)
|
in AOCI
|
to income
|
||||||
Interest rate hedges
|
$ | 14 | $ | 5 | ||||
December 31
|
September 30
|
|||||||
(In millions)
|
2011
|
2011
|
||||||
Finished products
|
$ | 661 | $ | 620 | ||||
Raw materials, supplies and work in process
|
370 | 364 | ||||||
LIFO reserve
|
(50 | ) | (59 | ) | ||||
$ | 981 | $ | 925 | |||||
Specialty
|
Water
|
Performance
|
Consumer
|
|||||||||||||||||
(In millions)
|
Ingredients
|
Technologies
|
Materials
|
Markets
|
Total
|
|||||||||||||||
Balance at September 30, 2011
|
$ | 2,092 | $ | 676 | $ | 357 | $ | 166 | $ | 3,291 | ||||||||||
Acquisitions (a)
|
49 | - | - | - | 49 | |||||||||||||||
Currency translation adjustment
|
(25 | ) | (12 | ) | (9 | ) | - | (46 | ) | |||||||||||
Balance at December 31, 2011
|
$ | 2,116 | $ | 664 | $ | 348 | $ | 166 | $ | 3,294 | ||||||||||
|
(a) The adjustment primarily relates to updates to the post-closing adjustments from the ISP acquisition.
|
December 31, 2011
|
||||||||||||
Gross
|
Net
|
|||||||||||
carrying
|
Accumulated
|
carrying
|
||||||||||
(In millions)
|
amount
|
amortization
|
amount
|
|||||||||
Trademarks and trade names
|
$ | 536 | $ | (33 | ) | $ | 503 | |||||
Intellectual property
|
845 | (100 | ) | 745 | ||||||||
Customer relationships
|
833 | (129 | ) | 704 | ||||||||
IPR&D
|
135 | - | 135 | |||||||||
Other intangibles
|
35 | (34 | ) | 1 | ||||||||
Total intangible assets
|
$ | 2,384 | $ | (296 | ) | $ | 2,088 | |||||
September 30, 2011
|
||||||||||||
Gross
|
Net
|
|||||||||||
carrying
|
Accumulated
|
carrying
|
||||||||||
(In millions)
|
amount
|
amortization
|
amount
|
|||||||||
Trademarks and trade names
|
$ | 536 | $ | (31 | ) | $ | 505 | |||||
Intellectual property
|
848 | (87 | ) | 761 | ||||||||
Customer relationships
|
846 | (116 | ) | 730 | ||||||||
IPR&D
|
135 | - | 135 | |||||||||
Other intangibles
|
35 | (32 | ) | 3 | ||||||||
Total intangible assets
|
$ | 2,400 | $ | (266 | ) | $ | 2,134 | |||||
December 31
|
September 30
|
|||||||
2011
|
2011
|
|||||||
Term Loan A, due 2016 (a)
|
$ | 1,481 | $ | 1,500 | ||||
Term Loan B, due 2018 (a)
|
1,396 | 1,400 | ||||||
9.125% notes, due 2017
|
633 | 633 | ||||||
6.50% junior subordinated notes, due 2029 (b)
|
128 | 128 | ||||||
6.60% notes, due 2027 (b)
|
12 | 12 | ||||||
Medium-term notes, due 2013-2019, interest at a weighted-
|
||||||||
average rate of 8.4% at December 31, 2011 (7.7% to 9.4%)
|
21 | 21 | ||||||
8.80% debentures, due 2012
|
20 | 20 | ||||||
Hercules Nanjing - term notes, due 2013
|
36 | 35 | ||||||
Other international loans, interest at a weighted-average
|
||||||||
rate of 7.0% at December 31, 2011 (2.0% to 11.8%)
|
76 | 81 | ||||||
Other
|
1 | 2 | ||||||
Total debt
|
3,804 | 3,832 | ||||||
Short-term debt
|
(76 | ) | (83 | ) | ||||
Current portion of long-term debt
|
(121 | ) | (101 | ) | ||||
Long-term debt (less current portion)
|
$ | 3,607 | $ | 3,648 | ||||
(a)
|
Senior credit facilities.
|
(b)
|
Retained instrument from the Hercules acquisition.
|
(In millions)
|
||||
Balance at October 1, 2011
|
$ | 160 | ||
Increases related to positions taken on items from prior years
|
4 | |||
Decreases related to positions taken on items from prior years
|
(14 | ) | ||
Increases related to positions taken in the current year
|
1 | |||
Balance at December 31, 2011
|
$ | 151 | ||
Other postretirement
|
||||||||||||||||
Pension benefits
|
benefits
|
|||||||||||||||
(In millions)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Three months ended December 31
|
||||||||||||||||
Service cost
|
$ | 10 | $ | 13 | $ | 1 | $ | 1 | ||||||||
Interest cost
|
49 | 50 | 3 | 4 | ||||||||||||
Expected return on plan assets
|
(57 | ) | (57 | ) | - | - | ||||||||||
Amortization of prior service credit
|
(1 | ) | (1 | ) | (4 | ) | (1 | ) | ||||||||
$ | 1 | $ | 5 | $ | - | $ | 4 | |||||||||
Three months ended
|
|||||||||||||||
December 31
|
Years ended September 30
|
||||||||||||||
(In thousands)
|
2011
|
2010
|
2011
|
2010
|
2009
|
||||||||||
Open claims - beginning of period
|
72 | 83 | 83 | 100 | 115 | ||||||||||
New claims filed
|
1 | - | 2 | 2 | 2 | ||||||||||
Claims settled
|
- | - | (1 | ) | (1 | ) | (1 | ) | |||||||
Claims dismissed
|
(3 | ) | (4 | ) | (12 | ) | (18 | ) | (16 | ) | |||||
Open claims - end of period
|
70 | 79 | 72 | 83 | 100 | ||||||||||
Three months ended
|
||||||||||||||||||||
December 31
|
Years ended September 30
|
|||||||||||||||||||
(In millions)
|
2011
|
2010
|
2011
|
2010
|
2009
|
|||||||||||||||
Asbestos reserve - beginning of period
|
$ | 543 | $ | 537 | $ | 537 | $ | 543 | $ | 572 | ||||||||||
Reserve adjustment
|
- | - | 41 | 28 | 5 | |||||||||||||||
Amounts paid
|
(10 | ) | (11 | ) | (35 | ) | (34 | ) | (34 | ) | ||||||||||
Asbestos reserve - end of period
|
$ | 533 | $ | 526 | $ | 543 | $ | 537 | $ | 543 | ||||||||||
Three months ended
|
||||||||||||||||||||
December 31
|
Years ended September 30
|
|||||||||||||||||||
(In millions)
|
2011
|
2010
|
2011
|
2010
|
2009
|
|||||||||||||||
Insurance receivable - beginning of period
|
$ | 431 | $ | 421 | $ | 421 | $ | 422 | $ | 458 | ||||||||||
Receivable adjustment
|
- | - | 42 | 36 | 8 | |||||||||||||||
Amounts collected
|
(8 | ) | (7 | ) | (32 | ) | (37 | ) | (44 | ) | ||||||||||
Insurance receivable - end of period
|
$ | 423 | $ | 414 | $ | 431 | $ | 421 | $ | 422 | ||||||||||
Three months ended
|
|||||||||||||||
December 31
|
Years ended September 30
|
||||||||||||||
(In thousands)
|
2011
|
2010
|
2011
|
2010
|
2009
|
(a) | |||||||||
Open claims - beginning of period
|
21 | 20 | 20 | 21 | 27 | ||||||||||
New claims filed
|
- | 2 | 2 | - | 1 | ||||||||||
Claims dismissed
|
- | - | (1 | ) | (1 | ) | (7 | ) | |||||||
Open claims - end of period
|
21 | 22 | 21 | 20 | 21 | ||||||||||
Three months ended
|
|||||||||||||||||||||
December 31
|
Years ended September 30
|
||||||||||||||||||||
(In millions)
|
2011
|
2010
|
2011
|
2010
|
2009
|
(a) | |||||||||||||||
Asbestos reserve - beginning of period
|
$ | 311 | $ | 375 | $ | 375 | $ | 484 | $ | 233 | |||||||||||
Reserve adjustment (b)
|
- | - | (48 | ) | (93 | ) | 261 | ||||||||||||||
Amounts paid
|
(6 | ) | (5 | ) | (16 | ) | (16 | ) | (10 | ) | |||||||||||
Asbestos reserve - end of period
|
$ | 305 | $ | 370 | $ | 311 | $ | 375 | $ | 484 | |||||||||||
(a) | Beginning of period represents acquisition date of November 13, 2008. | ||||||||||||||||||||
(b)
|
Includes purchase accounting adjustments recorded during 2010 and 2009 as part of purchase price allocations for the Hercules acquisition. |
Three months ended
|
||||||||||||||||||||
December 31
|
Years ended September 30
|
|||||||||||||||||||
(In millions)
|
2011
|
2010
|
2011
|
2010
|
2009
|
(a) | ||||||||||||||
Insurance receivable - beginning of period
|
$ | 48 | $ | 68 | $ | 68 | $ | 118 | $ | 35 | ||||||||||
Receivable adjustment
|
- | - | (20 | ) | (50 | ) | 83 | |||||||||||||
Insurance receivable - end of period
|
$ | 48 | $ | 68 | $ | 48 | $ | 68 | $ | 118 | ||||||||||
Three months ended
|
||||||||
December 31
|
||||||||
(In millions)
|
2011
|
2010
|
||||||
Reserve - beginning of period
|
$ | 246 | $ | 207 | ||||
Disbursements, net of cost recoveries
|
(8 | ) | (7 | ) | ||||
Revised obligation estimates and accretion
|
5 | 4 | ||||||
Reserve - end of period
|
$ | 243 | $ | 204 | ||||
Three months ended
|
||||||||
December 31
|
||||||||
(In millions)
|
2011
|
2010
|
||||||
Environmental expense
|
$ | 4 | $ | 3 | ||||
Accretion
|
1 | 1 | ||||||
Legal expense
|
1 | 1 | ||||||
Total expense
|
6 | 5 | ||||||
Insurance receivable
|
(2 | ) | (1 | ) | ||||
Total expense, net of receivable activity (a)
|
$ | 4 | $ | 4 | ||||
(a)
|
Net expense of $1 million for the three months ended December 31, 2011 and 2010 relates to divested businesses which qualified for treatment as discontinued operations and for which the environmental liabilities were retained by Ashland. These amounts are classified within the income from discontinued operations caption of the Statements of Consolidated Income.
|
Three months ended
|
||||||||
December 31
|
||||||||
(In millions except per share data)
|
2011
|
2010
|
||||||
Numerator
|
||||||||
Numerator for basic and diluted EPS – Income
|
||||||||
from continuing operations
|
$ | 60 | $ | 71 | ||||
Denominator
|
||||||||
Denominator for basic EPS – Weighted-average
|