Stock repurchase programs

During 2015, Ashland’s Board of Directors approved a $1 billion share repurchase authorization (the 2015 stock repurchase program) that was set to expire on December 31, 2017. This authorization allows for common shares to be repurchased in open market transactions, privately negotiated transactions or pursuant to one or more accelerated stock repurchase programs or Rule 10b5-1 plans.

During 2017, Ashland’s Board of Directors extended this $1 billion share repurchase authorization indefinitely. As further described in this Note O, there is $500 million currently remaining on this authorization.

Stock repurchase program agreements

In November 2015, under the 2015 stock repurchase program, Ashland announced that it entered into an accelerated share repurchase agreement (2016 ASR Agreement) with Goldman Sachs & Co. Under the 2016 ASR Agreement, Ashland paid an initial purchase price of $500 million and received an initial delivery of approximately 3.9 million shares of common stock during November 2015. In February 2016, Goldman Sachs & Co. exercised their early termination option under the 2016 ASR Agreement and the pricing period was closed. The settlement price, which represents the weighted average price of Ashland’s common stock over the pricing period less a discount, was $99.01 per share. Based on this settlement price, the final number of shares repurchased by Ashland that were delivered by Goldman Sachs & Co. under the 2016 ASR Agreement was 5.1 million shares. Ashland received the additional 1.2 million shares during 2016 to settle the difference between the initial share delivery and the total number of shares repurchased. After the 2016 ASR Agreement, $500 million of share repurchase authorization remains under the 2015 stock repurchase authorization.

During 2015, Ashland announced and completed accelerated share repurchase agreements (2015 ASR Agreements) with Deutsche Bank and JPMorgan to repurchase an aggregate of $270 million of Ashland’s common stock. Under the 2015 ASR Agreements, Ashland paid an initial purchase price of $270 million, split evenly between the financial institutions and received an initial delivery of approximately 1.9 million shares of common stock. The 2015 ASR Agreements had a variable maturity, at the financial institutions option, with a maximum pricing period termination date of July 31, 2015. During 2015, Deutsche Bank and JPMorgan exercised their early termination option under the 2015 ASR Agreements and the pricing period was closed. The settlement price, which represents the weighted average price of Ashland’s common stock over the pricing period less a discount, was $125.22 per share. Based on this settlement price, the final number of shares repurchased by Ashland that were delivered by the financial institutions under the 2015 ASR Agreements was 2.2 million shares. Ashland received the additional 0.3 million shares from the financial institutions during 2015 to settle the difference between the initial share delivery and the total number of shares repurchased.

Stockholder dividends

During May 2017, subsequent to the final distribution of Valvoline Inc.’s common stock, the Board of Directors announced a quarterly cash dividend of 22.5 cents per share to eligible shareholders at record. This amount was paid for quarterly dividends in the third and fourth quarters of fiscal 2017 and represents a reduction from the previous quarterly dividend of 39 cents per share.

In May 2015, the Board of Directors of Ashland announced a quarterly cash dividend increase to 39 cents per share to eligible shareholders of record. This amount was paid for quarterly dividends during the first and second quarters of fiscal 2017, each quarter of fiscal 2016 and the third and fourth quarters of fiscal 2015. This amount was an increase from the quarterly cash dividend of 34 cents per share paid during the first and second quarters of fiscal 2015.

Shares reserved for issuance

At September 30, 2017, 13.9 million common shares are 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, 2017
Other comprehensive income (loss)
Unrealized translation gain	$	80		$	1		$	81
Amortization of unrecognized prior service
credits included in net income (a)	(7		)	3			(4		)
Net change in available-for-sale securities:
Unrealized gain on available-for-sale securities	24			(8		)	16
Reclassification adjustment for gains
included in net income	(2		)	1			(1		)
Total other comprehensive income	$	95		$	(3	)	$	92

Year ended September 30, 2016
Other comprehensive income (loss)
Unrealized translation loss	$	(15	)	$	1		$	(14	)
Pension and postretirement obligation adjustment:
Adjustment of unrecognized prior service cost	86			(31		)	55
Amortization of unrecognized prior service
credits included in net income (a)	(60		)	19			(41		)
Unrealized gain on available-for-sale securities	28			(11		)	17
Total other comprehensive income	$	39		$	(22	)	$	17

Year ended September 30, 2015
Other comprehensive income (loss)
Unrealized translation loss	$	(368	)	$	(1	)	$	(369	)
Pension and postretirement obligation adjustment:
Adjustment of unrecognized prior service credit	(2		)	1			(1		)
Amortization of unrecognized prior service
credits included in net income (a)	(24		)	7			(17		)
Unrealized loss on available-for-sale securities	(17		)	6			(11		)
Total other comprehensive loss	$	(411	)	$	13		$	(398	)


(a)	Amortization of unrecognized prior service credits are included in the calculation of net periodic benefit costs (income) for pension and other postretirement plans. For specific financial statement captions impacted by the amortization see the table below.

In accordance with U.S. GAAP, as disclosed in the table above, certain pension and other postretirement costs (income) are amortized from accumulated other comprehensive income and recognized in net income. The captions on the Statements of Consolidated Comprehensive Income (Loss) impacted by the amortization of unrecognized prior service credits for pension and other postretirement plans are disclosed below. During 2016, the amortization of unrecognized prior service credits includes the curtailment impact of the pension and other postretirement plan remeasurements related to plan amendments of $40 million. See Note M for more information on curtailments, settlements and other costs.



(In millions)	2017			2016			2015
Cost of sales	$	—		$	(22	)	$	(7	)
Selling, general and administrative expense	—			(31		)	(11		)
Discontinued operations	(7		)	(7		)	(6		)
Total amortization of unrecognized prior service credits	$	(7	)	$	(60	)	$	(24	)