Ashland’s revenue is measured as the amount of consideration it expects to receive in exchange for transferring goods or providing services and is recognized when performance obligations are satisfied under the terms of contracts with customers. Ashland generally utilizes standardized language for the terms of contracts, unless a separate agreement has been entered into with a customer that supersedes the standard language.

A performance obligation is deemed to be satisfied by Ashland when control of the product or service is transferred to the customer. The transaction price of a contract, or the amount Ashland expects to receive upon satisfaction of all performance obligations, is determined by reference to the contract’s terms and includes adjustments, if applicable, for any variable consideration, such as volume discounts, rebates, refunds and right to return. Where a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on the standalone selling price of each performance obligation, although these situations do not occur frequently and are generally not included within Ashland’s contracts. Any unsatisfied performance obligations are not material. Standalone selling prices are based on prices Ashland charges to customers, which in some cases is based on established market prices. Ashland generally collects the cash from its customers within 60 days of the product delivery date. Sales and other similar taxes collected from customers on behalf of third parties are excluded from the contract price.

All of Ashland’s revenue is derived from contracts with customers, and nearly all contracts with customers contain one performance obligation for the transfer of goods where such performance obligation is satisfied at a point in time. Control of a product is deemed to be transferred to the customer generally upon shipment or delivery. Costs for shipping and handling activities, whether performed before or after the customer obtains control of the goods, are accounted for as fulfillment costs when not reimbursed.

Costs incurred to obtain contracts with customers have historically not been significant and are expensed immediately as the amortization period is generally one year or less. Ashland estimates expected credit losses based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the customers receivable amount.

Trade receivables are defined as receivables arising from contracts with customers and are recorded within the accounts receivable caption within the Condensed Consolidated Balance Sheets. Ashland’s trade receivables were $345 million and $441 million as of June 30, 2021 and September 30, 2020, respectively. See Note H for additional information on Ashland’s program to sell certain receivables on a revolving basis to third party banks up to an aggregate purchase limit.

Ashland disaggregates its revenue by segment and geographical region as Ashland believes these categories best depict how management reviews the financial performance of its operations. See the following tables for details. See Note Q for additional information.


Sales by geography
	Three months ended				Nine months ended
	June 30				June 30
(In millions)		2021		2020		2021		2020
Life Sciences
North America	$	60	$	58	$	171	$	166
Europe		63		62		177		174
Asia Pacific		52		50		146		135
Latin America & other		18		19		54		53
	$	193	$	189	$	548	$	528

	Three months ended				Nine months ended
	June 30				June 30
(In millions)		2021		2020		2021		2020
Personal Care & Household
North America	$	46	$	42	$	129	$	133
Europe		59		65		162		190
Asia Pacific		25		28		68		74
Latin America & other		17		20		50		54
	$	147	$	155	$	409	$	451

	Three months ended				Nine months ended
	June 30				June 30
(In millions)		2021		2020		2021		2020
Specialty Additives
North America	$	53	$	50	$	146	$	148
Europe		65		48		179		157
Asia Pacific		43		29		123		97
Latin America & other		8		8		26		27
	$	169	$	135	$	474	$	429

	Three months ended				Nine months ended
	June 30				June 30
(In millions)		2021		2020		2021		2020
Performance Adhesives
North America	$	74	$	59	$	215	$	196
Europe		14		8		35		24
Asia Pacific		4		2		11		5
Latin America & other		2		1		6		4
	$	94	$	70	$	267	$	229

	Three months ended				Nine months ended
	June 30				June 30
(In millions)		2021		2020		2021		2020
Intermediates and Solvents
North America	$	33	$	21	$	73	$	59
Europe		7		6		19		17
Asia Pacific		7		8		21		21
Latin America & other		2		2		5		5
	$	49	$	37	$	118	$	102