Leasing Arrangements (Tables)

9 Months Ended

Jun. 30, 2022

Leases [Abstract]

Components of Lease Cost Recognized

The components of lease cost recognized within the Statements of Consolidated Comprehensive Income (Loss) were as follows:

		Three months ended				Nine months ended
		June 30				June 30
(In millions)	Location	2022		2021		2022		2021
Lease cost:
Operating lease cost	Selling, General & Administrative (a)	$	5	$	3	$	12	$	10
Operating lease cost	Cost of Sales		3		4		10		11
Variable lease cost	Selling, General & Administrative		1		1		3		2
Variable lease cost	Cost of Sales		1		1		3		2
Short-term leases	Cost of Sales		1		1		2		3
Total lease cost		$	11	$	10	$	30	$	28

a)Includes $2 million lease termination fee for the three and nine months ended June 30, 2022.

Summary of Lease Assets and Liabilities

The following table summarizes Ashland’s lease assets and liabilities as presented in the Condensed Consolidated Balance Sheet:

(In millions)	June 30 2022		September 30 2021
Assets
Operating lease assets, net	$	112	$	124
Total lease assets	$	112	$	124
Liabilities
Current operating lease obligations	$	18	$	23
Non-current operating lease obligations		100		110
Total lease liabilities	$	118	$	133

Schedule of Cash Paid for Amounts Included in the Measurement of Operating Lease Liabilities

The following table provides cash paid for amounts included in the measurement of operating lease liabilities:

	Three months ended				Nine months ended
	June 30				June 30
(In millions)	2022		2021		2021		2020
Operating cash flows from operating leases	$	9	$	8	$	23	$	23

Schedule of Maturities Analysis of Lease Liabilities

The following table summarizes Ashland's maturities of lease liabilities as of June 30, 2022 and September 30, 2021:

(In millions)	June 30 2022			September 30 2021
Remainder of 2022	$	20		$	39
2023		21			20
2024		16			16
2025		12			11
2026		9			9
Thereafter		74			78
Total lease payments		152			173
Less amount of lease payment representing interest		(34	)		(40	)
Total present value of lease payments	$	118		$	133