Goodwill and Other Intangibles

12 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE H – GOODWILL AND OTHER INTANGIBLES

Goodwill

Ashland performed its annual goodwill impairment test using the quantitative approach as of July 1, 2022 and concluded that the reporting unit fair values for all reporting units exceeded their carrying values. No impairment existed as of that date and no subsequent impairment indicators have been identified.

The following is a progression of goodwill by reportable segment for the years ended September 30, 2022 and 2021.


(In millions)	Life Sciences			Personal Care (a)			Specialty Additives (a)			Intermediates (a)		Total
Balance at September 30, 2020	$	861		$	—		$	444		$	—	$	1,305
Acquisitions (b)		—			131			—			—		131
Currency translation and other		(5	)		(2	)		1			—		(6	)
Balance at September 30, 2021		856			129			445			—		1,430
Currency translation and other		(69	)		(11	)		(38	)		—		(118	)
Balance at September 30, 2022	$	787		$	118		$	407		$	—	$	1,312

(a)

As of September 30, 2022 and 2021, there was accumulated impairment of $356 million, $174 million, and $90 million related to the Personal Care, Specialty Additives, and Intermediates reportable segments, respectively. The accumulated impairments for Personal Care and Specialty Additives were recorded in fiscal 2020 within the goodwill impairment caption of the Statements of Consolidated Comprehensive Income (Loss).

(b)

Relates to the acquisition of the Schülke personal care business during 2021. See Note B for more information.

Other intangible assets

Intangible assets principally consist of trademarks and trade names, intellectual property and customer and supplier relationships. Intangible assets classified as finite are amortized on a straight-line basis over their estimated useful lives. The cost of trademarks and trade names is amortized principally over 3 to 20 years, intellectual property over 3 to 20 years, and customer and supplier relationships over 10 to 24 years.

Ashland performed its annual impairment test for other indefinite lived intangible assets using the quantitative approach as of July 1, 2022 and concluded that the assets fair values exceeded their carrying values. No impairment existed as of that date.

Other intangible assets were comprised of the following as of September 30, 2022 and 2021.


	2022							2021
	Gross					Net		Gross					Net
	carrying		Accumulated			carrying		carrying		Accumulated			carrying
(In millions)	amount		amortization			amount		amount		amortization			amount
Definite-lived intangible assets
Trademarks and trade names	$	95	$	(37	)	$	58	$	101	$	(32	)	$	69
Intellectual property		718		(523	)		195		750		(495	)		255
Customer and supplier relationships		801		(369	)		432		849		(352	)		497
Total definite-lived intangible assets		1,614		(929	)		685		1,700		(879	)		821

Indefinite-lived intangible assets
Trademarks and trade names		278		—			278		278		—			278
Total intangible assets	$	1,892	$	(929	)	$	963	$	1,978	$	(879	)	$	1,099

Amortization expense recognized on intangible assets was $94 million for 2022, $90 million for 2021 and $84 million for 2020, and is included in the intangibles amortization expense caption of the Statements of Consolidated Comprehensive Income (Loss). As of September 30, 2022, all of Ashland’s intangible assets that had a carrying value were being amortized except for certain trademarks and trade names that have been determined to have indefinite lives. Estimated amortization expense for future periods is $94 million in 2023, $79 million in 2024, $74 million in 2025, $70 million in 2026 and $47 million in 2027. The amortization expense for future periods is an estimate. Actual amounts may change from such estimated amounts due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions and divestitures, potential impairment, accelerated amortization, or other events.

Goodwill and Other Intangible assets

Ashland’s assessment of an impairment on any of these assets classified currently as having indefinite lives, including goodwill, could change in future periods if significant events happen and/or circumstances change that effect the previously mentioned assumptions such as: a significant change in projected business result, a divestiture decision, increase in Ashland’s weighted-average cost of capital rates, decrease in growth rates or assumptions, economic deterioration that is more severe or of a longer duration than anticipated, or another significant economic event.