Equity Items

9 Months Ended

Jun. 30, 2022

Equity [Abstract]

Equity Items

NOTE N – EQUITY ITEMS

2022 Stock repurchase program

On May 25, 2022, Ashland's board of directors authorized a new, evergreen $500 million common share repurchase program (2022 stock repurchase program). The new authorization terminates and replaces the company's 2018 $1 billion share repurchase program, which had $150 million outstanding at the date of termination.

2018 Stock repurchase program

In September 2021, under the 2018 stock repurchase program, Ashland 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.

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.

Stockholder dividends

On May 25, 2022, Ashland's Board declared a quarterly cash dividend of $0.335 cents per share on the company's common stock representing a 12 percent increase from the previous quarter. The dividend was paid in the third quarter of fiscal 2022. Dividends of 30 cents per share were paid in the third and fourth quarters of fiscal 2021 and the first and second quarter of fiscal 2022 and 27.5 cents per share were paid in the first and second quarter of fiscal 2021.

Accumulated other comprehensive income (loss)

Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented below.

	2022								2021
(In millions)	Before tax			Tax (expense) benefit		Net of tax			Before tax		Tax (expense) benefit			Net of tax
Three months ended June 30
Other comprehensive income (loss)
Unrealized translation gain (loss)	$	(86	)	$	—	$	(86	)	$	23	$	—		$	23
Unrealized gain (loss) on commodity hedges		(4	)		1		(3	)		—		—			—
Total other comprehensive income (loss)	$	(90	)	$	1	$	(89	)	$	23	$	—		$	23
Nine months ended June 30
Other comprehensive income (loss)
Unrealized translation gain (loss)	$	(108	)	$	1	$	(107	)	$	38	$	(1	)	$	37
Unrealized gain (loss) on commodity hedges		(3	)		1		(2	)		—		—			—
Total other comprehensive income (loss)	$	(111	)	$	2	$	(109	)	$	38	$	(1	)	$	37

Summary of stockholders’ equity

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

	Three months ended						Nine months ended
	June 30						June 30
(In millions)	2022			2021			2022			2021
Common stock and paid in capital
Balance, beginning of period	$	177		$	773		$	328		$	770
Compensation expense and common shares issued (a)		1			4			5			7
Common shares purchased under repurchase program (b)		(45	)		—			(200	)		—
Balance, end of period		133			777			133			777
Retained earnings
Balance, beginning of period		3,596			2,710			2,796			2,649
Adoption of new accounting pronouncements		—			—			—			(2	)
Net income		36			80			870			176
Regular dividends		(18	)		(19	)		(52	)		(52	)
Balance, end of period		3,614			2,771			3,614			2,771
Accumulated other comprehensive income (loss)
Balance, beginning of period		(392	)		(369	)		(372	)		(383	)
Unrealized translation gain (loss)		(86	)		23			(107	)		37
Unrealized gain (loss) on commodity hedges		(3	)		—			(2	)		—
Balance, end of period		(481	)		(346	)		(481	)		(346	)
Total stockholders' equity	$	3,266		$	3,202		$	3,266		$	3,202
Cash dividends declared per common share	$	0.335		$	0.300		$	0.935		$	0.850

(a)Common shares issued were 55,006 shares and 24,452 shares for the three months ended June 30, 2022 and 2021, respectively, and 163,656 shares and 165,158 shares for the nine months ended June 30, 2022 and 2021, respectively.

(b)Common shares repurchased were 449,932 and 2,853,312 shares for the three and nine months ended June 30, 2022.