XML 41 R32.htm IDEA: XBRL DOCUMENT v3.23.1
Litigation, Claims and Contingencies (Tables)
 6 Months Ended
Mar. 31, 2023
Loss Contingencies [Line Items]  
Reconciliation of Changes in Environmental Contingencies and Asset Retirement Obligations Reserve

The following table provides a reconciliation of the changes in the environmental remediation reserves during the six months ended March 31, 2023 and 2022.

 

 

 

Six months ended

 

 

 

March 31

 

(In millions)

 

2023

 

 

2022

 

Reserve - beginning of period

 

$

211

 

 

$

207

 

Disbursements

 

 

(29

)

 

 

(30

)

Revised obligation estimates and accretion

 

 

11

 

 

 

15

 

Reserve - end of period

 

$

193

 

 

$

192

 

 

 

 

 

 

 

 
Components of Environmental Remediation Expense

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 three and six ended March 31, 2023 and 2022.

 

 

Three months ended

 

 

Six months ended

 

 

 

March 31

 

 

March 31

 

(In millions)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Environmental expense

 

$

3

 

 

$

12

 

 

$

11

 

 

$

15

 

Legal expense

 

 

1

 

 

 

1

 

 

 

2

 

 

 

2

 

Total expense

 

 

4

 

 

 

13

 

 

 

13

 

 

 

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance receivable

 

 

—

 

 

 

(3

)

 

 

—

 

 

 

(3

)

Total expense, net of receivable activity (a)

 

$

4

 

 

$

10

 

 

$

13

 

 

$

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Ashland [Member]  
Loss Contingencies [Line Items]  
Summary of Asbestos Claims Activity A summary of Ashland asbestos claims activity, excluding Hercules claims, follows.

 

 

 

Six months ended

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

 

Years ended September 30

 

(In thousands)

 

2023

 

 

2022

 

 

2022

 

 

2021

 

 

2020

 

Open claims - beginning of year

 

 

44

 

 

 

46

 

 

 

46

 

 

 

49

 

 

 

53

 

New claims filed

 

 

1

 

 

 

1

 

 

 

2

 

 

 

2

 

 

 

2

 

Claims settled

 

 

—

 

 

 

(1

)

 

 

(1

)

 

 

(1

)

 

 

(1

)

Claims dismissed

 

 

(2

)

 

 

(1

)

 

 

(3

)

 

 

(4

)

 

 

(5

)

Open claims - end of period

 

 

43

 

 

 

45

 

 

 

44

 

 

 

46

 

 

 

49

 
Progression of Activity in Asbestos Reserve Accounts

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

 

 

 

Six months ended

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

 

Years ended September 30

 

(In millions)

 

2023

 

 

2022

 

 

2022

 

 

2021

 

 

2020

 

Asbestos reserve - beginning of year

 

$

305

 

 

$

320

 

 

$

320

 

 

$

335

 

 

$

352

 

Reserve adjustment

 

 

—

 

 

 

—

 

 

 

16

 

 

 

12

 

 

 

13

 

Amounts paid

 

 

(20

)

 

 

(19

)

 

 

(31

)

 

 

(27

)

 

 

(30

)

Asbestos reserve - end of period (a)

 

$

285

 

 

$

301

 

 

$

305

 

 

$

320

 

 

$

335

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
Included $29 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2023 and September 30, 2022.
Progression of Insurance Receivable

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

 

 

 

Six months ended

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

 

Years ended September 30

 

(In millions)

 

2023

 

 

2022

 

 

2022

 

 

2021

 

 

2020

 

Insurance receivable - beginning of year

 

$

101

 

 

$

100

 

 

$

100

 

 

$

103

 

 

$

123

 

Receivable adjustment (a)

 

 

—

 

 

 

—

 

 

 

7

 

 

 

6

 

 

 

1

 

Insurance settlement

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10

)

Amounts collected

 

 

(5

)

 

 

(2

)

 

 

(6

)

 

 

(9

)

 

 

(11

)

Insurance receivable - end of period (b)

 

$

96

 

 

$

98

 

 

$

101

 

 

$

100

 

 

$

103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
2021 includes a $2 million reserve adjustment related to allowances for credit losses as a result of Ashland's adoption of the new credit measurement standard. The total allowance for credit losses was $2 million as of March 31, 2023 and September 30, 2022.
(b)
Includes $12 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of March 31, 2023 and September 30, 2022.
Hercules [Member]  
Loss Contingencies [Line Items]  
Summary of Asbestos Claims Activity A summary of Hercules’ asbestos claims activity follows.

 

 

 

Six months ended

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

 

Years ended September 30

 

(In thousands)

 

2023

 

 

2022

 

 

2022

 

 

2021

 

 

2020

 

Open claims - beginning of year

 

 

11

 

 

 

12

 

 

 

12

 

 

 

12

 

 

 

13

 

New claims filed

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

Claims dismissed

 

 

—

 

 

 

(1

)

 

 

(2

)

 

 

(1

)

 

 

(2

)

Open claims - end of period

 

 

12

 

 

 

12

 

 

 

11

 

 

 

12

 

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Progression of Activity in Asbestos Reserve Accounts

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

 

 

 

Six months ended

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

 

Years ended September 30

 

(In millions)

 

2023

 

 

2022

 

 

2022

 

 

2021

 

 

2020

 

Asbestos reserve - beginning of year

 

$

213

 

 

$

217

 

 

$

217

 

 

$

229

 

 

$

252

 

Reserve adjustments

 

 

—

 

 

 

—

 

 

 

15

 

 

 

8

 

 

 

(3

)

Amounts paid

 

 

(8

)

 

 

(10

)

 

 

(19

)

 

 

(20

)

 

 

(20

)

Asbestos reserve - end of period (a)

 

$

205

 

 

$

207

 

 

$

213

 

 

$

217

 

 

$

229

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
Included $18 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2023 and September 30, 2022.
Progression of Insurance Receivable

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

 

 

 

Six months ended

 

 

 

 

 

 

 

 

 

 

 

 

March 31

 

 

Years ended September 30

 

(In millions)

 

2023

 

 

2022

 

 

2022

 

 

2021

 

 

2020

 

Insurance receivable - beginning of year

 

$

52

 

 

$

47

 

 

$

47

 

 

$

47

 

 

$

49

 

Receivable adjustment (a)

 

 

—

 

 

 

—

 

 

 

7

 

 

 

1

 

 

 

(2

)

Amounts collected

 

 

(1

)

 

 

(1

)

 

 

(2

)

 

 

(1

)

 

 

—

 

Insurance receivable - end of period (b)

 

$

51

 

 

$

46

 

 

$

52

 

 

$

47

 

 

$

47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
2021 includes a $1 million reserve adjustment related to allowances for credit losses as a result of Ashland's adoption of the new credit measurement standard. The total allowance for credit losses was $1 million as of March 31, 2023 and September 30, 2022.
(b)
Includes $2 million and $3 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of March 31, 2023 and September 30, 2022, respectively.