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 records bad debt expense in specific situations when it is determined that the customer is unable to meet its financial obligation.

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 $458 million and $435 million as of March 31, 2020 and September 30, 2019, respectively.

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 (intersegment sales eliminations have been excluded). See Note Q for additional information.:

Sales by geography
	Three months ended				Six months ended
	March 31				March 31
(In millions)	2020		2019		2020		2019
Life Sciences
North America	$	59	$	67	$	108	$	126
Europe		63		61		112		110
Asia Pacific		43		48		85		95
Latin America & other		19		20		35		35
	$	184	$	196	$	340	$	366

	Three months ended				Six months ended
	March 31				March 31
(In millions)	2020		2019		2020		2019
Personal Care & Household
North America	$	50	$	48	$	91	$	91
Europe		69		86		124		149
Asia Pacific		22		27		46		55
Latin America & other		18		22		35		42
	$	159	$	183	$	296	$	337

	Three months ended				Six months ended
	March 31				March 31
(In millions)	2020		2019		2020		2019
Specialty Additives
North America	$	53	$	57	$	98	$	105
Europe		59		62		109		112
Asia Pacific		33		39		68		78
Latin America & other		10		11		19		21
	$	155	$	169	$	294	$	316

	Three months ended				Six months ended
	March 31				March 31
(In millions)	2020		2019		2020		2019
Performance Adhesives
North America	$	73	$	75	$	137	$	144
Europe		9		11		16		19
Asia Pacific		1		1		3		3
Latin America & other		2		2		3		5
	$	85	$	89	$	159	$	171

	Three months ended				Six months ended
	March 31				March 31
(In millions)	2020		2019		2020		2019
Intermediates and Solvents
North America	$	23	$	29	$	37	$	50
Europe		6		6		11		11
Asia Pacific		6		7		13		13
Latin America & other		2		2		3		3
	$	37	$	44	$	64	$	77