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Litigation, Claims and Contingencies (Tables)
 9 Months Ended
Jun. 30, 2022
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 nine months ended June 30, 2022 and 2021.

 

 

 

Nine months ended

 

 

 

June 30

 

(In millions)

 

2022

 

 

2021

 

Reserve - beginning of period

 

$

207

 

 

$

200

 

Disbursements

 

 

(42

)

 

 

(35

)

Changes in obligation estimates and accretion, net

 

 

61

 

 

 

40

 

Reserve - end of period

 

$

226

 

 

$

205

 

 

 

 

 

 

 

 
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 nine ended June 30, 2022 and 2021.

 

 

Three months ended

 

 

Nine months ended

 

 

 

June 30

 

 

June 30

 

(In millions)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Environmental expense

 

$

45

 

 

$

24

 

 

$

60

 

 

$

39

 

Accretion

 

 

1

 

 

 

—

 

 

 

1

 

 

 

1

 

Legal expense

 

 

1

 

 

 

1

 

 

 

3

 

 

 

2

 

Total expense

 

 

47

 

 

 

25

 

 

 

64

 

 

 

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance receivable

 

 

(2

)

 

 

—

 

 

 

(5

)

 

 

(1

)

Total expense, net of receivable activity (a)

 

$

45

 

 

$

25

 

 

$

59

 

 

$

41

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
Net expense of $9 million and $11 million for the three and nine months ended June 30, 2022, respectively, and $3 million and $6 million for the three and nine months ended June 30, 2021, respectively, relates to divested businesses which qualified for treatment as discontinued operations for which certain environmental liabilities were retained by Ashland. These amounts are classified within the income from discontinued operations caption of the Statements of Consolidated Comprehensive Income (loss).
Ashland [Member]  
Loss Contingencies [Line Items]  
Summary of Asbestos Claims Activity A summary of Ashland asbestos claims activity, excluding Hercules claims, follows.

 

 

 

Nine months ended

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

 

Years ended September 30

 

(In thousands)

 

2022

 

 

2021

 

 

2021

 

 

2020

 

 

2019

 

Open claims - beginning of year

 

 

46

 

 

 

49

 

 

 

49

 

 

 

53

 

 

 

53

 

New claims filed

 

 

1

 

 

 

1

 

 

 

2

 

 

 

2

 

 

 

2

 

Claims settled

 

 

(1

)

 

 

—

 

 

 

(1

)

 

 

(1

)

 

 

(1

)

Claims dismissed

 

 

(1

)

 

 

(3

)

 

 

(4

)

 

 

(5

)

 

 

(1

)

Open claims - end of period

 

 

45

 

 

 

47

 

 

 

46

 

 

 

49

 

 

 

53

 
Progression of Activity in Asbestos Reserve Accounts

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

 

 

 

Nine months ended

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

 

Years ended September 30

 

(In millions)

 

2022

 

 

2021

 

 

2021

 

 

2020

 

 

2019

 

Asbestos reserve - beginning of year

 

$

320

 

 

$

335

 

 

$

335

 

 

$

352

 

 

$

380

 

Reserve adjustment

 

 

16

 

 

 

12

 

 

 

12

 

 

 

13

 

 

 

1

 

Amounts paid

 

 

(26

)

 

 

(21

)

 

 

(27

)

 

 

(30

)

 

 

(29

)

Asbestos reserve - end of period (a)

 

$

310

 

 

$

326

 

 

$

320

 

 

$

335

 

 

$

352

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
Included $29 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of June 30, 2022 and September 30, 2021.
Progression of Insurance Receivable

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

 

 

 

Nine months ended

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

 

Years ended September 30

 

(In millions)

 

2022

 

 

2021

 

 

2021

 

 

2020

 

 

2019

 

Insurance receivable - beginning of year

 

$

100

 

 

$

103

 

 

$

103

 

 

$

123

 

 

$

140

 

Receivable adjustment (a)

 

 

7

 

 

 

6

 

 

 

6

 

 

 

1

 

 

 

(5

)

Insurance settlement

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10

)

 

 

—

 

Amounts collected

 

 

(5

)

 

 

(7

)

 

 

(9

)

 

 

(11

)

 

 

(12

)

Insurance receivable - end of period (b)

 

$

102

 

 

$

102

 

 

$

100

 

 

$

103

 

 

$

123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
The nine months ended June 30, 2021 includes a reserve adjustment of $2 million 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 June 30, 2022.
(b)
Includes $12 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of June 30, 2022 and September 30, 2021.
Hercules [Member]  
Loss Contingencies [Line Items]  
Summary of Asbestos Claims Activity A summary of Hercules’ asbestos claims activity follows.

 

 

 

Nine months ended

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

 

Years ended September 30

 

(In thousands)

 

2022

 

 

2021

 

 

2021

 

 

2020

 

 

2019

 

Open claims - beginning of year

 

 

12

 

 

 

12

 

 

 

12

 

 

 

13

 

 

 

13

 

New claims filed

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

Claims dismissed

 

 

(1

)

 

 

(1

)

 

 

(1

)

 

 

(2

)

 

 

(1

)

Open claims - end of period

 

 

12

 

 

 

12

 

 

 

12

 

 

 

12

 

 

 

13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Progression of Activity in Asbestos Reserve Accounts

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

 

 

 

Nine months ended

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

 

Years ended September 30

 

(In millions)

 

2022

 

 

2021

 

 

2021

 

 

2020

 

 

2019

 

Asbestos reserve - beginning of year

 

$

217

 

 

$

229

 

 

$

229

 

 

$

252

 

 

$

282

 

Reserve adjustments

 

 

15

 

 

 

8

 

 

 

8

 

 

 

(3

)

 

 

(10

)

Amounts paid

 

 

(12

)

 

 

(16

)

 

 

(20

)

 

 

(20

)

 

 

(20

)

Asbestos reserve - end of period (a)

 

$

220

 

 

$

221

 

 

$

217

 

 

$

229

 

 

$

252

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
Included $18 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of June 30, 2022 and September 30, 2021.
Progression of Insurance Receivable

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

 

 

 

Nine months ended

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

 

Years ended September 30

 

(In millions)

 

2022

 

 

2021

 

 

2021

 

 

2020

 

 

2019

 

Insurance receivable - beginning of year

 

$

47

 

 

$

47

 

 

$

47

 

 

$

49

 

 

$

54

 

Receivable adjustment (a)

 

 

7

 

 

 

1

 

 

 

1

 

 

 

(2

)

 

 

(5

)

Amounts collected

 

 

(1

)

 

 

—

 

 

 

(1

)

 

 

—

 

 

 

—

 

Insurance receivable - end of period (b)

 

$

53

 

 

$

48

 

 

$

47

 

 

$

47

 

 

$

49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
The nine months ended June 30, 2021 includes a reserve adjustment of $1 million 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 June 30, 2022.
(b)
Includes $3 million and $1 million classified in accounts receivable on the Condensed Consolidated Balance Sheets as of June 30, 2022 and September 30, 2021, respectively.