Equity Items

12 Months Ended

Sep. 30, 2023

Equity [Abstract]

Equity Items

NOTE N – EQUITY ITEMS

Stock repurchase programs

On June 28, 2023, Ashland's board of directors authorized a new evergreen $1 billion common share repurchase program (2023 stock repurchase program). The new authorization terminates and replaces the company's 2022 stock repurchase program, which had $200 million outstanding at the date of termination. In 2022, the 2022 stock repurchase program replaced and terminated the 2018 $1 billion share repurchase program, which had $150 million outstanding at its date of termination on May 22, 2022. As of September 30, 2023, $1 billion remained available for repurchase under the 2023 stock repurchase program.

Stock repurchase program agreements

During May 2023, under the 2022 stock repurchase program, Ashland initiated a Rule 10b5-1 trading plan agreement to repurchase up to $100 million of its outstanding shares. The program was completed during June 2023, when Ashland paid a total of $100 million and received a delivery of 1.1 million shares of common stock.

During March 2023, under the 2022 stock repurchase program, Ashland initiated a Rule 10b5-1 trading plan agreement to repurchase up to $100 million of its outstanding shares. The program was completed during April 2023, when Ashland paid a total of $100 million and received a delivery of 1.0 million shares of common stock.

During February 2023, under the 2022 stock repurchase program, Ashland initiated a Rule 10b5-1 trading plan agreement to repurchase up to $100 million of its outstanding shares. The program was completed during February 2023, when Ashland paid a total of $100 million and received a delivery of 1.0 million shares of common stock.

On March 1, 2022, under the 2018 stock repurchase program, Ashland entered into an agreement to repurchase an aggregate amount of $200 million of Ashland common stock using open-market purchases under rule 10b-18. On April 8, 2022, Ashland completed repurchases under this agreement repurchasing a total of 2.15 million shares for a total amount of $200 million.

In September 2021, under the 2018 stock repurchase program, Ashland announced that it entered into an accelerated share repurchase agreement (2021 ASR Agreement). Under the 2021 ASR Agreement, Ashland paid an initial purchase price of $450 million and received an initial delivery of 3.9 million shares of common stock during September 2021. The bank exercised its early termination option under the 2021 ASR Agreement in February 2022, and an additional 0.7 million shares were repurchased, bringing the total shares repurchased upon settlement to 4.6 million.

Stockholder dividends

Ashland paid dividends per common share of $1.44, $1.27 and $1.15 during 2023, 2022 and 2021, respectively.

In May 2023, the Board of Directors of Ashland announced a quarterly cash dividend of 38.5 cents per share to eligible stockholders at record, which represented an increase from the previous quarterly cash dividend of 33.5 cents per share. The dividend was paid in the third and fourth quarter of fiscal 2023.

In May 2022, the Board of Directors of Ashland announced a quarterly cash dividend of 33.5 cents per share to eligible stockholders at record, which represented an increase from the previous quarterly cash dividend of 30.0 cents per share. This dividend was paid in the third and fourth quarters of fiscal 2022 and the first and second quarters of fiscal 2023.

In May 2021, the Board of Directors of Ashland announced a quarterly cash dividend of 30.0 cents per share to eligible stockholders at record, which represented an increase from the previous quarterly cash dividend of 27.5 cents per share. This dividend was paid in the third and fourth quarters of fiscal 2021 and the first and second quarters of fiscal 2022.

In May 2019, the Board of Directors of Ashland announced a quarterly cash dividend of 27.5 cents per share to eligible stockholders at record, which represented an increase from the previous quarterly cash dividend of 25.0 cents per share. This dividend was paid in the first and second quarters of fiscal 2021.

Shares reserved for issuance

At September 30, 2023, 17.3 million common shares were reserved for issuance under stock incentive and deferred compensation plans.

Other comprehensive income (loss)

Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented in the following table, before tax and net of tax effects.

				Tax
	Before			(expense)			Net of
(In millions)	tax			benefit			tax
Year ended September 30, 2023
Other comprehensive income (loss)
Unrealized translation gain	$	72		$	—		$	72
Unrealized loss on commodity hedges		(8	)		2			(6	)
Total other comprehensive income (loss)	$	64		$	2		$	66
Year ended September 30, 2022
Other comprehensive income (loss)
Unrealized translation loss	$	(199	)	$	2		$	(197	)
Unrealized loss on commodity hedges		(2	)		1			(1	)
Pension and postretirement obligation adjustment		1			—			1
Total other comprehensive income (loss)	$	(200	)	$	3		$	(197	)
Year ended September 30, 2021
Other comprehensive income (loss)
Unrealized translation gain	$	8		$	(1	)	$	7
Unrealized gain on commodity hedges		5			(1	)		4
Total other comprehensive income (loss)	$	13		$	(2	)	$	11

Summary of Stockholders’ Equity

A reconciliation of changes in stockholders’ equity are as follows:

(In millions)	2023			2022			2021
Common stock and paid in capital
Balance, beginning of period	$	136		$	328		$	770
Common shares issued under stock incentive and other plans (a)		12			8			8
Common shares purchased under repurchase program (b) (c)		(143	)		(200	)		(450	)
Balance, end of period		5			136			328
Retained earnings
Balance, beginning of period		3,653			2,796			2,649
Adoption of new accounting pronouncements (d)		—			—			(2	)
Common shares purchased under repurchase program (b)		(160	)		—			—
Net income		178			927			220
Regular dividends		(76	)		(70	)		(71	)
Balance, end of period		3,595			3,653			2,796
Accumulated other comprehensive income (loss)
Balance, beginning of period		(569	)		(372	)		(383	)
Unrealized translation gain (loss)		72			(197	)		7
Unrealized gain (loss) on commodity hedges		(6	)		(1	)		4
Pension and postretirement obligation adjustment		—			1			—
Balance, end of period		(503	)		(569	)		(372	)
Total stockholders' equity	$	3,097		$	3,220		$	2,752
Cash dividends declared per common share	$	1.44		$	1.27		$	1.15

(a)Common shares issued were 193,767, 168,270 and 183,281 for 2023, 2022 and 2021, respectively.

(b)Common shares repurchased were 3,082,928, 2,853,312 and 3,922,423 for 2023, 2022 and 2021, respectively.

(c)Includes $3 million in excise tax on stock repurchases for 2023.

(d)Represents the cumulative-effect adjustment related to the adoption of the new guidance related to the measurement of credit losses on financial instruments during fiscal 2021. See Note A for more information.