On February 28, 2022, Ashland completed the sale of its Performance Adhesives business to Arkema, a French société anonyme. Proceeds from the sale were approximately $1.7 billion, net of transaction costs. Ashland recognized a $726 million after-tax gain on sale within the Income (loss) from Discontinued Operations caption of the Statements of Consolidated Comprehensive Income (Loss) for the twelve months ended September 30, 2022.

The transaction represented a strategic shift in Ashland’s business and had a major effect on Ashland’s operations and financial results. Accordingly, the operating results and cash flows related to Performance Adhesives have been reflected as discontinued operations in the Statements of Consolidated Comprehensive Income (Loss) and Statements of Consolidated Cash Flows, while the assets and liabilities that were sold have been classified within the Consolidated Balance Sheets as held for sale in periods preceding the sale. See Note D for the results of operations for Performance Adhesives for all periods presented.

Certain indirect corporate costs included within the selling, general and administrative expense caption of the Statements of Consolidated Comprehensive Income (Loss) that were previously allocated to the Performance Adhesives segment do not qualify for classification within discontinued operations and are now reported as selling, general and administrative expense within continuing operations on a consolidated basis and within the Unallocated and other segment. These costs were $9 million, $15 million and $20 million during the twelve months ended September 30, 2022, 2021 and 2020 respectively.

On September 30, 2020, Ashland completed the sale of its Maleic business to AOC Materials LLC (AOC). Net proceeds from the sale were approximately $98 million. As a result of the sale, Ashland recognized a $29 million after-tax gain within the Statement of Consolidated Comprehensive Income (Loss) within the income from discontinued operations caption for the twelve months ended September 30, 2020.

Since the Maleic business was operated under the Composites business and Marl facility disposal group which signified a strategic shift in Ashland’s business and had a major effect on Ashland’s operations and financial results, the operating results and cash flows related to the Maleic business, have been reflected as discontinued operations in the Statements of Consolidated Comprehensive Income (Loss) and Statements of Consolidated Cash Flows. See Note D of the Notes to Consolidated Financial Statements for the results of operations for the Maleic business, for all periods presented.

During 2020, Ashland entered into a definitive sale agreement to sell a Specialty Additives facility, the assets and liabilities of which were classified as held for sale as of September 30, 2020. During 2021, Ashland completed the sale of the Specialty Additives facility. Net proceeds received from the sale were approximately $20 million ($14 million and $6 million received during the twelve months September 30 2021 and 2020, respectively). The company recognized a pre-tax gain of $14 million recorded within the income on acquisitions and divestitures caption in the Statements of Consolidated Comprehensive Income (Loss) for the twelve months ended September 30, 2021.

Ashland determined this transaction did not qualify for discontinued operations treatment since it did not represent a strategic shift that had or will have a major effect on Ashland’s operations and financial results.

Ashland sometimes pursues to divest corporate assets, primarily related to land and buildings. When sales for these assets are expected to close within 12 months, they are classified as held for sale. During 2022, Ashland completed the sale of two excess land properties with a net book value of $8 million as of September 30, 2021. Ashland received net proceeds of approximately $50 million and recorded pre-tax gain of $42 million within the income on acquisitions and divestitures caption within the Statement of Consolidated Comprehensive Income (Loss) for 2022. During 2020, Ashland completed the sale of an office building with a net book value of $6 million and received net proceeds of $5 million. As a result, Ashland recognized a loss of $1 million before tax. The loss was reported within the income on acquisitions and divestitures caption within the Statement of Consolidated Comprehensive Income (Loss) for 2020

The assets and liabilities of the Performance Adhesives segment, along with other properties, have been reflected as assets and liabilities held for sale as described above. As a result, in accordance with U.S. GAAP standards, depreciation and amortization were not being recorded within the Statements of Consolidated Comprehensive Income (Loss) and the Consolidated Balance Sheets. There were no assets classified as held for sale as of September 30, 2022. These assets and liabilities were comprised of the following components as of September 30, 2021:


(In millions)	2021
Accounts receivable, net	$	26
Inventories		27
Net property, plant and equipment		80
Goodwill		453
Operating lease assets, net		10
Other assets		1
Current assets held for sale	$	597

Trade and other payables	$	33
Accrued expenses and other liabilities		7
Current operating lease obligations		1
Operating lease obligations		9
Current labilities held for sale	$	50