2017 Q1 Form 10-Q Financial Statement

#000167486217000030 Filed on April 26, 2017

View on sec.gov

Income Statement

Concept 2017 Q1 2016 Q1
Revenue $806.0M $1.247B
YoY Change -35.36% -7.56%
Cost Of Revenue $578.0M $823.0M
YoY Change -29.77% -10.93%
Gross Profit $228.0M $424.0M
YoY Change -46.23% -0.24%
Gross Profit Margin 28.29% 34.0%
Selling, General & Admin $245.0M $258.0M
YoY Change -5.04% 95.45%
% of Gross Profit 107.46% 60.85%
Research & Development $24.00M $25.00M
YoY Change -4.0% -7.41%
% of Gross Profit 10.53% 5.9%
Depreciation & Amortization $66.00M $85.00M
YoY Change -22.35% 0.0%
% of Gross Profit 28.95% 20.05%
Operating Expenses $269.0M $283.0M
YoY Change -4.95% 50.53%
Operating Profit $53.00M $147.0M
YoY Change -63.95% -37.97%
Interest Expense -$34.00M -$41.00M
YoY Change -17.07% 41.38%
% of Operating Profit -64.15% -27.89%
Other Income/Expense, Net -$3.000M -$2.000M
YoY Change 50.0% 0.0%
Pretax Income $24.00M $102.0M
YoY Change -76.47% -15.0%
Income Tax -$5.000M $15.00M
% Of Pretax Income -20.83% 14.71%
Net Earnings $92.00M $87.00M
YoY Change 5.75% -61.16%
Net Earnings / Revenue 11.41% 6.98%
Basic Earnings Per Share $1.48 $1.39
Diluted Earnings Per Share $1.47 $1.38
COMMON SHARES
Basic Shares Outstanding 62.00M 62.00M shares
Diluted Shares Outstanding 63.00M 63.00M shares

Balance Sheet

Concept 2017 Q1 2016 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $605.0M $1.136B
YoY Change -46.74% 24.7%
Cash & Equivalents $605.0M $1.136B
Short-Term Investments
Other Short-Term Assets $113.0M $115.0M
YoY Change -1.74% -51.48%
Inventory $687.0M $726.0M
Prepaid Expenses
Receivables $972.0M $935.0M
Other Receivables $0.00 $0.00
Total Short-Term Assets $2.377B $2.912B
YoY Change -18.37% 0.34%
LONG-TERM ASSETS
Property, Plant & Equipment $2.205B $2.166B
YoY Change 1.8% 0.14%
Goodwill $2.413B
YoY Change
Intangibles $1.017B
YoY Change
Long-Term Investments $61.00M $64.00M
YoY Change -4.69% -7.25%
Other Assets $423.0M $900.0M
YoY Change -53.0% 12.36%
Total Long-Term Assets $6.809B $6.989B
YoY Change -2.58% 1.38%
TOTAL ASSETS
Total Short-Term Assets $2.377B $2.912B
Total Long-Term Assets $6.809B $6.989B
Total Assets $9.186B $9.901B
YoY Change -7.22% 1.07%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $520.0M $519.0M
YoY Change 0.19% 3.8%
Accrued Expenses $406.0M $429.0M
YoY Change -5.36% -14.03%
Deferred Revenue
YoY Change
Short-Term Debt $95.00M $694.0M
YoY Change -86.31% 197.85%
Long-Term Debt Due $16.00M $55.00M
YoY Change -70.91% 511.11%
Total Short-Term Liabilities $1.037B $1.702B
YoY Change -39.07% 36.16%
LONG-TERM LIABILITIES
Long-Term Debt $2.812B $3.328B
YoY Change -15.5% 13.08%
Other Long-Term Liabilities $445.0M $2.063B
YoY Change -78.43% -18.56%
Total Long-Term Liabilities $5.006B $5.391B
YoY Change -7.14% -1.55%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.037B $1.702B
Total Long-Term Liabilities $5.006B $5.391B
Total Liabilities $6.043B $7.178B
YoY Change -15.81% 5.92%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.300B $2.723B
YoY Change
Total Liabilities & Shareholders Equity $9.186B $9.901B
YoY Change -7.22% 1.07%

Cashflow Statement

Concept 2017 Q1 2016 Q1
OPERATING ACTIVITIES
Net Income $92.00M $87.00M
YoY Change 5.75% -61.16%
Depreciation, Depletion And Amortization $66.00M $85.00M
YoY Change -22.35% 0.0%
Cash From Operating Activities $48.00M $175.0M
YoY Change -72.57% -57.0%
INVESTING ACTIVITIES
Capital Expenditures -$40.00M -$50.00M
YoY Change -20.0% 16.28%
Acquisitions
YoY Change
Other Investing Activities -$61.00M -$30.00M
YoY Change 103.33% -90.26%
Cash From Investing Activities -$101.0M -$80.00M
YoY Change 26.25% -77.21%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -46.00M 2.000M
YoY Change -2400.0% -100.53%
NET CHANGE
Cash From Operating Activities 48.00M 175.0M
Cash From Investing Activities -101.0M -80.00M
Cash From Financing Activities -46.00M 2.000M
Net Change In Cash -99.00M 97.00M
YoY Change -202.06% -130.22%
FREE CASH FLOW
Cash From Operating Activities $48.00M $175.0M
Capital Expenditures -$40.00M -$50.00M
Free Cash Flow $88.00M $225.0M
YoY Change -60.89% -50.0%

Facts In Submission

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49000000 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Before Tax
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3000000 USD
us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Before Tax
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6000000 USD
CY2016Q1 us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax
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31000000 USD
us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax
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34000000 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax
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2000000 USD
us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Net Of Tax
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4000000 USD
CY2016Q1 us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Tax
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us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Tax
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15000000 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Tax
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us-gaap Other Comprehensive Income Loss Amortization Adjustment From Aoci Pension And Other Postretirement Benefit Plans For Net Prior Service Cost Credit Tax
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CY2017Q1 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Foreign Currency Translation Adjustment Tax
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CY2017Q1 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Adjustment Net Of Tax
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4000000 USD
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us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Benefit Plan Improvement Tax Effect
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CY2017Q1 us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Benefit Plan Improvement Tax Effect
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0 USD
us-gaap Other Comprehensive Income Loss Pension And Other Postretirement Benefit Plans Benefit Plan Improvement Tax Effect
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CY2016Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
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0 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
0 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
-2000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
-2000000 USD
CY2016Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax
0 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax
0 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
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-1000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Net Of Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax
-1000000 USD
CY2016Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesTax
0 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesTax
0 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesTax
-1000000 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesTax
-1000000 USD
CY2016Q1 us-gaap Other Comprehensive Income Loss Tax
OtherComprehensiveIncomeLossTax
19000000 USD
us-gaap Other Comprehensive Income Loss Tax
OtherComprehensiveIncomeLossTax
19000000 USD
CY2017Q1 us-gaap Other Comprehensive Income Loss Tax
OtherComprehensiveIncomeLossTax
-2000000 USD
us-gaap Other Comprehensive Income Loss Tax
OtherComprehensiveIncomeLossTax
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CY2016Q3 us-gaap Other Liabilities Noncurrent
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CY2017Q1 us-gaap Other Liabilities Noncurrent
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445000000 USD
CY2016Q1 us-gaap Other Operating Income
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6000000 USD
us-gaap Other Operating Income
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15000000 USD
CY2017Q1 us-gaap Other Operating Income
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6000000 USD
us-gaap Other Operating Income
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18000000 USD
CY2016Q1 us-gaap Other Than Temporary Impairment Losses Investments Availableforsale Securities
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0 USD
us-gaap Other Than Temporary Impairment Losses Investments Availableforsale Securities
OtherThanTemporaryImpairmentLossesInvestmentsAvailableforsaleSecurities
0 USD
CY2017Q1 us-gaap Other Than Temporary Impairment Losses Investments Availableforsale Securities
OtherThanTemporaryImpairmentLossesInvestmentsAvailableforsaleSecurities
0 USD
us-gaap Other Than Temporary Impairment Losses Investments Availableforsale Securities
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0 USD
us-gaap Payments For Hedge Investing Activities
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0 USD
us-gaap Payments For Hedge Investing Activities
PaymentsForHedgeInvestingActivities
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us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
10000000 USD
us-gaap Payments For Proceeds From Other Investing Activities
PaymentsForProceedsFromOtherInvestingActivities
1000000 USD
us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
500000000 USD
us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
0 USD
us-gaap Payments Of Debt Extinguishment Costs
PaymentsOfDebtExtinguishmentCosts
0 USD
us-gaap Payments Of Debt Extinguishment Costs
PaymentsOfDebtExtinguishmentCosts
5000000 USD
us-gaap Payments Of Dividends Common Stock
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48000000 USD
us-gaap Payments Of Dividends Common Stock
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48000000 USD
us-gaap Payments Of Dividends Minority Interest
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0 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
0 USD
us-gaap Payments Of Debt Issuance Costs
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us-gaap Payments Of Dividends Minority Interest
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4000000 USD
us-gaap Payments To Acquire Available For Sale Securities
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4000000 USD
us-gaap Payments To Acquire Available For Sale Securities
PaymentsToAcquireAvailableForSaleSecurities
19000000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
66000000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
48000000 USD
us-gaap Payments To Acquire Property Plant And Equipment
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103000000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
104000000 USD
CY2016Q3 us-gaap Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent
PensionAndOtherPostretirementDefinedBenefitPlansLiabilitiesNoncurrent
1080000000 USD
CY2017Q1 us-gaap Pension And Other Postretirement Defined Benefit Plans Liabilities Noncurrent
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1017000000 USD
us-gaap Pension Contributions
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15000000 USD
us-gaap Pension Contributions
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14000000 USD
us-gaap Proceeds From Hedge Investing Activities
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7000000 USD
us-gaap Proceeds From Hedge Investing Activities
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4000000 USD
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us-gaap Proceeds From Payments For Other Financing Activities
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us-gaap Proceeds From Repayments Of Short Term Debt
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368000000 USD
us-gaap Proceeds From Repayments Of Short Term Debt
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-75000000 USD
us-gaap Proceeds From Sale Of Available For Sale Securities
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4000000 USD
us-gaap Proceeds From Sale Of Available For Sale Securities
ProceedsFromSaleOfAvailableForSaleSecurities
19000000 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
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3000000 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
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1000000 USD
CY2016Q1 us-gaap Profit Loss
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87000000 USD
us-gaap Profit Loss
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176000000 USD
CY2017Q1 us-gaap Profit Loss
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105000000 USD
us-gaap Profit Loss
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115000000 USD
CY2016Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
4343000000 USD
CY2017Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
4364000000 USD
CY2016Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
2224000000 USD
CY2017Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
2205000000 USD
CY2016Q3 us-gaap Recorded Third Party Environmental Recoveries Noncurrent
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15000000 USD
CY2017Q1 us-gaap Recorded Third Party Environmental Recoveries Noncurrent
RecordedThirdPartyEnvironmentalRecoveriesNoncurrent
14000000 USD
CY2016Q3 us-gaap Recorded Third Party Environmental Recoveries Receivable
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23000000 USD
CY2017Q1 us-gaap Recorded Third Party Environmental Recoveries Receivable
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22000000 USD
us-gaap Repayments Of Long Term Debt
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36000000 USD
us-gaap Repayments Of Long Term Debt
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337000000 USD
CY2016Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
25000000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
49000000 USD
CY2017Q1 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
24000000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
47000000 USD
CY2016Q3 us-gaap Restricted Cash And Cash Equivalents Noncurrent
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CY2017Q1 us-gaap Restricted Cash And Cash Equivalents Noncurrent
RestrictedCashAndCashEquivalentsNoncurrent
298000000 USD
CY2016Q3 us-gaap Restricted Cash And Investments Current
RestrictedCashAndInvestmentsCurrent
30000000 USD
CY2017Q1 us-gaap Restricted Cash And Investments Current
RestrictedCashAndInvestmentsCurrent
30000000 USD
CY2016Q3 us-gaap Restricted Cash And Investments Noncurrent
RestrictedCashAndInvestmentsNoncurrent
292000000 USD
CY2017Q1 us-gaap Restricted Cash And Investments Noncurrent
RestrictedCashAndInvestmentsNoncurrent
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us-gaap Sale Of Stock Percentage Of Ownership After Transaction
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0.83
CY2016Q1 us-gaap Sales Revenue Net
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us-gaap Sales Revenue Net
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2410000000 USD
CY2017Q1 us-gaap Sales Revenue Net
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1320000000 USD
us-gaap Sales Revenue Net
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2513000000 USD
CY2016Q1 us-gaap Selling General And Administrative Expense
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258000000 USD
us-gaap Selling General And Administrative Expense
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CY2017Q1 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
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us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
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us-gaap Share Based Compensation
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17000000 USD
us-gaap Share Based Compensation
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CY2016Q3 us-gaap Short Term Borrowings
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170000000 USD
CY2017Q1 us-gaap Short Term Borrowings
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us-gaap Stock Issued During Period Shares New Issues
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CY2015Q3 us-gaap Stock Repurchase Program Authorized Amount1
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500000000 USD
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CY2017Q1 us-gaap Stockholders Equity
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CY2016Q3 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
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CY2017Q1 us-gaap Stockholders Equity Including Portion Attributable To Noncontrolling Interest
StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
3143000000 USD
CY2016Q3 us-gaap Unrecognized Tax Benefits
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168000000 USD
CY2017Q1 us-gaap Unrecognized Tax Benefits
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175000000 USD
us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
2000000 USD
us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
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1000000 USD
us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
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7000000 USD
us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
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5000000 USD
us-gaap Unrecognized Tax Benefits Reductions Resulting From Lapse Of Applicable Statute Of Limitations
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CY2016Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
64000000 shares
CY2017Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
63000000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
63000000 shares
CY2016Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
63000000 shares
CY2017Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
62000000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
62000000 shares
us-gaap Derivatives Methods Of Accounting Hedging Derivatives
DerivativesMethodsOfAccountingHedgingDerivatives
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:6px;padding-top:6px;text-align:justify;padding-left:24px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Since 2014, Ashland has entered into foreign currency contracts in order to manage the foreign currency exposure of the net investment in certain foreign operations. These foreign currency contracts were primarily the result of certain proceeds from the sale of Water Technologies being received in non-U.S. denominated currencies during 2014 and ongoing management of the volatility in foreign currency exchange rates. Ashland designated the foreign currency contracts as hedges of net investments in its foreign subsidiaries. As a result, Ashland records these hedges at fair value using forward rates, with the effective portion of the gain or loss reported as a component of the cumulative translation adjustment within AOCI and subsequently recognized in the Statements of Consolidated Comprehensive Income when the hedged item affects net income</font><font style="font-family:inherit;font-size:10pt;">.</font><font style="font-family:inherit;font-size:11pt;"> During 2017 and 2016, these foreign currency contracts were settled and for certain hedges Ashland entered into new foreign currency contracts designated as hedges of net investments in foreign subsidiaries. These settlements resulted in net gains and losses recorded within the cumulative translation adjustment within AOCI, including a net loss of </font><font style="font-family:inherit;font-size:11pt;">$2 million</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:11pt;">for the three months ended </font><font style="font-family:inherit;font-size:11pt;">March&#160;31, 2017</font><font style="font-family:inherit;font-size:11pt;">, and net gains of </font><font style="font-family:inherit;font-size:11pt;">$1 million</font><font style="font-family:inherit;font-size:11pt;"> and </font><font style="font-family:inherit;font-size:11pt;">$7 million</font><font style="font-family:inherit;font-size:11pt;"> for the </font><font style="font-family:inherit;font-size:11pt;">six</font><font style="font-family:inherit;font-size:11pt;"> months </font><font style="font-family:inherit;font-size:11pt;">March&#160;31, 2017</font><font style="font-family:inherit;font-size:11pt;"> and </font><font style="font-family:inherit;font-size:11pt;">2016</font><font style="font-family:inherit;font-size:11pt;">, respectively.</font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;padding-left:24px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">As of </font><font style="font-family:inherit;font-size:11pt;">March&#160;31, 2017</font><font style="font-family:inherit;font-size:11pt;"> and </font><font style="font-family:inherit;font-size:11pt;">September&#160;30, 2016</font><font style="font-family:inherit;font-size:11pt;">, the total notional value of foreign currency contracts equaled </font><font style="font-family:inherit;font-size:11pt;">$69 million</font><font style="font-family:inherit;font-size:11pt;"> and </font><font style="font-family:inherit;font-size:11pt;">$94 million</font><font style="font-family:inherit;font-size:11pt;">, respectively. The fair value of Ashland's net investment hedge assets and liabilities are calculated using forward rates. Accordingly, these instruments are deemed to be Level 2 measurements within the fair value hierarchy. Counterparties to these net investment hedges are highly rated financial institutions which Ashland believes carry only a nominal risk of nonperformance.</font></div></div>
us-gaap Derivatives Methods Of Accounting Nonhedging Derivatives
DerivativesMethodsOfAccountingNonhedgingDerivatives
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;text-align:justify;padding-left:24px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Ashland conducts business in a variety of foreign currencies.&#160;&#160;Accordingly, Ashland regularly uses foreign currency derivative instruments to manage exposure on certain transactions denominated in foreign currencies to curtail potential earnings volatility effects of certain assets and liabilities, including short-term inter-company loans, denominated in currencies other than Ashland&#8217;s functional currency of an entity. These derivative contracts generally require exchange of one foreign currency for another at a fixed rate at a future date and generally have maturities of less than twelve months.&#160;&#160;All contracts are valued at fair value with net changes in fair value recorded within the selling, general and administrative expense caption.&#160;&#160;The impacts of these contracts were largely offset by gains and losses resulting from the impact of changes in exchange rates on transactions denominated in non-functional currencies. </font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;text-align:justify;padding-left:24px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-style:italic;">Use of estimates, risks and uncertainties </font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;padding-left:24px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">The preparation of Ashland&#8217;s Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosures of contingent assets and liabilities.&#160;&#160;Significant items that are subject to such estimates and assumptions include, but are not limited to, long-lived assets (including goodwill and other intangible assets), employee benefit obligations, income taxes and liabilities and receivables associated with asbestos litigation and environmental remediation.&#160;&#160;Although management bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, actual results could differ significantly from the estimates under different assumptions or conditions. </font></div><div style="line-height:120%;padding-bottom:8px;text-align:justify;padding-left:24px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">Ashland&#8217;s results are affected by domestic and international economic, political, legislative, regulatory and legal actions.&#160;&#160;Economic conditions, such as recessionary trends, inflation, interest and monetary exchange rates, government fiscal policies and changes in the prices of certain key raw materials, can have a significant effect on operations.&#160;&#160;While Ashland maintains reserves for anticipated liabilities and carries various levels of insurance, Ashland could be affected by civil, criminal, regulatory or administrative actions, claims or proceedings relating to asbestos, environmental remediation or other matters.</font></div></div>

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