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Equity Items (Tables)
 6 Months Ended
Mar. 31, 2019
Equity [Abstract]  
Components of Accumulated Other Comprehensive Income (Loss)

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

 

 

2019

 

 

2018

 

(In millions)

Before

tax

 

 

Tax

(expense) benefit

 

 

Net of

tax

 

 

Before

tax

 

 

Tax

(expense) benefit

 

 

Net of

tax

 

Three months ended March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized translation gain (loss)

$

(9

)

 

$

—

 

 

$

(9

)

 

$

55

 

 

$

—

 

 

$

55

 

Pension and postretirement obligation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustment of unrecognized prior service costs

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net change in investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains during periods (a)

 

—

 

 

 

—

 

 

 

—

 

 

 

(5

)

 

 

1

 

 

 

(4

)

Reclassification adjustment for gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

included in net income

 

—

 

 

 

—

 

 

 

—

 

 

 

(3

)

 

 

1

 

 

 

(2

)

Total other comprehensive income (loss)

$

(9

)

 

$

—

 

 

$

(9

)

 

$

47

 

 

$

2

 

 

$

49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized translation gain (loss)

$

(40

)

 

$

—

 

 

$

(40

)

 

$

58

 

 

$

—

 

 

$

58

 

Pension and postretirement obligation adjustment:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustment of unrecognized prior service costs

 

(7

)

 

 

1

 

 

 

(6

)

 

 

—

 

 

 

—

 

 

 

—

 

Net change in investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains during periods (a)

 

—

 

 

 

—

 

 

 

—

 

 

 

6

 

 

 

(1

)

 

 

5

 

Reclassification adjustment for gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

included in net income

 

—

 

 

 

—

 

 

 

—

 

 

 

(4

)

 

 

1

 

 

 

(3

)

Total other comprehensive income (loss)

$

(47

)

 

$

1

 

 

$

(46

)

 

$

60

 

 

$

—

 

 

$

60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Due to the adoption of new accounting guidance in fiscal 2019, unrealized gains and losses on Ashland’s equity securities are now recognized in net income rather than AOCI. See Notes A and E for more information.

 
Summary of Reconciliation of Changes in Stockholders' Equity

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

 

 

Three months ended

 

 

Six months ended

 

 

March 31

 

 

March 31

 

(In millions)

2019

 

 

2018

 

 

2019

 

 

2018

 

Common stock and paid in capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

$

948

 

 

$

932

 

 

$

947

 

 

$

932

 

Common shares issued under stock incentive and other plans (a)

 

5

 

 

 

4

 

 

 

6

 

 

 

4

 

     Balance, end of period

 

953

 

 

 

936

 

 

 

953

 

 

 

936

 

Retained earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

2,719

 

 

 

2,678

 

 

 

2,750

 

 

 

2,696

 

Adoption of new accounting pronouncements (b)

 

1

 

 

 

—

 

 

 

34

 

 

 

—

 

Net income (loss)

 

76

 

 

 

73

 

 

 

28

 

 

 

69

 

Regular dividends

 

(16

)

 

 

(14

)

 

 

(32

)

 

 

(28

)

     Balance, end of period

 

2,780

 

 

 

2,737

 

 

 

2,780

 

 

 

2,737

 

Accumulated other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

(362

)

 

 

(211

)

 

 

(291

)

 

 

(222

)

Adoption of new accounting pronouncements (b)

 

—

 

 

 

—

 

 

 

(34

)

 

 

—

 

Unrealized translation gain (loss)

 

(9

)

 

 

55

 

 

 

(40

)

 

 

58

 

Pension and postretirement obligation adjustment

 

—

 

 

 

—

 

 

 

(6

)

 

 

—

 

Net change in investment securities

 

—

 

 

 

(6

)

 

 

—

 

 

 

2

 

     Balance, end of period

 

(371

)

 

 

(162

)

 

 

(371

)

 

 

(162

)

Total stockholders' equity

$

3,362

 

 

$

3,511

 

 

$

3,362

 

 

$

3,511

 

Cash dividends declared per common share

$

0.25

 

 

$

0.225

 

 

$

0.50

 

 

$

0.45

 

 

(a)

Common share issued were 93,738 and 154,421 for the three months ended March 31, 2019 and 2018 and 234,352 and 265,821 for the six months ended March 31, 2019 and 2018.

 

 

(b)

Represents the cumulative-effect adjustment related to the adoption of the new guidance related to the accounting for equity securities and tax effects of intercompany transfers during fiscal 2019. See Note A for more information.