ASHLAND INC. Revenue Disclosure
NOTE P – REVENUE
Trade receivables
Trade receivables are defined as receivables arising from contracts with customers and are recorded within the accounts receivable, net caption within the Consolidated Balance Sheets. Ashland’s trade receivables were $200 million and $206 million as of September 30, 2025 and 2024, respectively. See Note H for additional information on Ashland's program to sell certain accounts receivable on a revolving basis to third party banks up to an aggregate purchase limit.
Disaggregation of revenue
Ashland disaggregates its revenue from contracts with customers by reportable segment and geographical region, as Ashland believes these categories best depict how management reviews the financial performance of its operations for the years ended September 30, 2025, 2024 and 2023. Ashland includes only U.S. and Canada in its North America designation and includes Europe, the Middle East and Africa in its Europe designation. See the following tables for details (Intersegment sales eliminations have been excluded, see Note Q for additional information) for the years ended September 30:
Sales by geography |
|
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(In millions) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Life Sciences |
|
|||||||||||
North America |
|
$ |
117 |
|
|
$ |
241 |
|
|
$ |
228 |
|
Europe |
|
|
240 |
|
|
|
269 |
|
|
|
305 |
|
Asia Pacific |
|
|
207 |
|
|
|
225 |
|
|
|
233 |
|
Latin America & other |
|
|
77 |
|
|
|
75 |
|
|
|
103 |
|
|
|
$ |
641 |
|
|
$ |
810 |
|
|
$ |
869 |
|
|
|
|
|
|
|
|
|
|
|
|||
(In millions) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Personal Care |
|
|||||||||||
North America |
|
$ |
155 |
|
|
$ |
183 |
|
|
$ |
176 |
|
Europe |
|
|
219 |
|
|
|
238 |
|
|
|
233 |
|
Asia Pacific |
|
|
128 |
|
|
|
128 |
|
|
|
105 |
|
Latin America & other |
|
|
75 |
|
|
|
85 |
|
|
|
84 |
|
|
|
$ |
577 |
|
|
$ |
634 |
|
|
$ |
598 |
|
|
|
|
|
|
|
|
|
|
|
|||
(In millions) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Specialty Additives |
|
|||||||||||
North America |
|
$ |
177 |
|
|
$ |
183 |
|
|
$ |
203 |
|
Europe |
|
|
178 |
|
|
|
208 |
|
|
|
214 |
|
Asia Pacific |
|
|
128 |
|
|
|
153 |
|
|
|
153 |
|
Latin America & other |
|
|
28 |
|
|
|
28 |
|
|
|
30 |
|
|
|
$ |
511 |
|
|
$ |
572 |
|
|
$ |
600 |
|
|
|
|
|
|
|
|
|
|
|
|||
(In millions) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Intermediates |
|
|||||||||||
North America |
|
$ |
90 |
|
|
$ |
103 |
|
|
$ |
128 |
|
Europe |
|
|
26 |
|
|
|
21 |
|
|
|
27 |
|
Asia Pacific |
|
|
14 |
|
|
|
16 |
|
|
|
22 |
|
Latin America & other |
|
|
7 |
|
|
|
4 |
|
|
|
8 |
|
|
|
$ |
137 |
|
|
$ |
144 |
|
|
$ |
185 |
|
|
|
|
|
|
|
|
|
|
|
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Ashland has two product categories that represented 10% or greater of Ashland's total consolidated sales, which were cellulosics and polyvinylprrolidones (PVP). The following table summarizes the percentage of Ashland's total consolidated sales by product:
Sales by product |
|
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(In millions) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Cellulosics |
|
|
39 |
% |
|
|
37 |
% |
|
|
37 |
% |
PVP |
|
|
25 |
% |
|
|
23 |
% |
|
|
25 |
% |
|
|
|
64 |
% |
|
|
60 |
% |
|
|
62 |
% |
|
|
|
|
|
|
|
|
|
|
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 20, 2025 | Showing above |
| 2024 | Nov 18, 2024 | |
| 2023 | Nov 17, 2023 | |
| 2022 | Nov 21, 2022 | |
| 2021 | Nov 22, 2021 | |
| 2020 | Nov 23, 2020 | |
| 2019 | Nov 25, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.