ASHLAND INC.

CIK:0001305014|SEC Filings

STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Sales	$ 1,290	$ 1,367	$ 3,700	$ 4,107
Cost of sales	854	939	2,449	2,845
Gross profit	436	428	1,251	1,262
Selling, general and administrative expense	244	216	726	645
Research and development expense	25	24	75	74
Equity and other income	8	8	23	16
Operating income	175	196	473	559
Net interest and other financing expense	40	54	125	136
Net gain (loss) on divestitures	3	0	3	(118)
Income from continuing operations before income taxes	138	142	351	305
Income tax expense - Note J	41	27	76	55
Income from continuing operations	97	115	275	250
Income (loss) from discontinued operations (net of tax) - Note D	(26)	(8)	(28)	113
Net income	$ 71	$ 107	$ 247	$ 363
Basic earnings per share - Note M
Income from continuing operations	$ 1.57	$ 1.70	$ 4.35	$ 3.66
Income (loss) from discontinued operations	(0.42)	(0.12)	(0.44)	1.65
Net income	1.15	1.58	3.91	5.31
Diluted earnings per share - Note M
Income from continuing operations	1.55	1.68	4.31	3.61
Income (loss) from discontinued operations	(0.42)	(0.12)	(0.44)	1.63
Net income	1.13	1.56	3.87	5.24
DIVIDENDS PAID PER COMMON SHARE	$ 0.39	$ 0.39	$ 1.17	$ 1.07
COMPREHENSIVE INCOME (LOSS)
Net income	$ 71	$ 107	$ 247	$ 363
Other comprehensive income (loss), net of tax - Note N
Unrealized translation gain (loss)	(46)	68	(26)	(314)
Pension and postretirement obligation adjustment	0	(2)	21	(13)
Unrealized gain (loss) on available-for-sale securities	4	(3)	13	(3)
Other comprehensive income (loss)	(42)	63	8	(330)
Comprehensive income	$ 29	$ 170	$ 255	$ 33

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

9 Months Ended

Jun. 30, 2016

Jun. 30, 2015

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

Net income

$ 247

$ 363

Loss (income) from discontinued operations (net of tax)

(113)

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

Depreciation and amortization

254

255

Debt issuance cost amortization

Deferred income taxes

(16)

Equity income from affiliates

(12)

Distributions from equity affiliates

Stock based compensation expense

Premium on long-term debt repayment

Gain on available-for-sale securities

(6)

(1)

Net loss (gain) on divestitures

(3)

118

Impairment of equity investment

Pension contributions

(24)

(592)

Losses on pension and other postretirement plan remeasurements

Change in operating assets and liabilities

^[1]

(115)

(249)

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

435

(159)

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

Additions to property, plant and equipment

(181)

(147)

Proceeds from disposal of property, plant and equipment

Purchase of operations - net of cash acquired

(70)

(5)

Proceeds from sale of operations or equity investments

133

Funds restricted for specific transactions

(4)

(320)

Reimbursements from restricted investments

Proceeds from sales of available-for-sale securities

315

Purchase of available-for-sale securities

(4)

(315)

Proceeds from the settlement of derivative instruments

Payments for the settlement of derivative instruments

(2)

(5)

Total cash flows used by investing activities from continuing operations

(207)

(325)

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

Proceeds from issuance of long-term debt

1,100

Repayment of long-term debt

(50)

(559)

Premium on long-term debt repayment

(8)

Proceeds (repayment) from short-term debt

389

(98)

Repurchase of common stock

(500)

(397)

Debt issuance costs

(2)

(9)

Cash dividends paid

(72)

Excess tax benefits related to share-based payments

Total cash flows used by financing activities from continuing operations

(234)

(34)

CASH USED BY CONTINUING OPERATIONS

(6)

(518)

Cash provided (used) by discontinued operations

Operating cash flows

(30)

261

Investing cash flows

Total cash provided (used) by discontinued operations

(30)

280

Effect of currency exchange rate changes on cash and cash equivalents

(6)

(42)

DECREASE IN CASH AND CASH EQUIVALENTS

(42)

(280)

CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD

1,257

1,393

CASH AND CASH EQUIVALENTS - END OF PERIOD

$ 1,215

$ 1,113

[1]	Excludes changes resulting from operations acquired or sold.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)
$ in Millions

Jun. 30, 2016

Sep. 30, 2015

Current assets

Cash and cash equivalents

$ 1,215

$ 1,257

Accounts receivable

^[1]

908

961

Inventories - Note G

677

706

Other assets

111

169

Total current assets

2,911

3,093

Property, plant and equipment

Cost

4,228

4,144

Accumulated depreciation

2,058

1,962

Net property, plant and equipment

2,170

2,182

Goodwill - Note H

2,567

2,486

Intangibles - Note H

1,086

1,142

Restricted investments - Note F

292

285

Asbestos insurance receivable - Note L

197

180

Equity and other unconsolidated investments

Deferred income taxes

213

212

Other assets

414

409

Total noncurrent assets

7,001

6,961

Total assets

9,912

10,054

Current liabilities

Short-term debt - Note I

716

326

Current portion of long-term debt - Note I

Trade and other payables

477

573

Accrued expenses and other liabilities

423

488

Total current liabilities

1,671

1,442

Noncurrent liabilities

Long-term debt - Note I

3,316

3,348

Employee benefit obligations - Note K

989

1,076

Asbestos litigation reserve - Note L

696

661

Deferred income taxes

Other liabilities

421

405

Total noncurrent liabilities

5,507

5,575

Commitments and contingencies - Note L

Stockholders’ equity

2,734

3,037

Total liabilities and stockholders’ equity

$ 9,912

$ 10,054

[1]	Accounts receivable includes an allowance for doubtful accounts of $12 million and $11 million at June 30, 2016 and September 30, 2015, respectively.