3 unchanged sentences
Three months ended
+Added: Six months ended
(In millions except per share data - unaudited)
5 unchanged sentences
Equity and other income
−Removed: Loss on acquisitions and divestitures, net - Note B
−Removed: Operating loss
+Added: Income (loss) on acquisitions and divestitures, net - Note B
+Added: Operating income (loss)
Net interest and other expense (income)
1 unchanged sentence
Income (loss) from continuing operations before income taxes
−Removed: Income tax benefit - Note J
+Added: Income tax expense (benefit) - Note J
Income (loss) from continuing operations
14 unchanged sentences
Unrealized translation gain (loss)
−Removed: Unrealized gain (loss) on commodity hedges
+Added: Unrealized gain on commodity hedges
Other comprehensive income (loss) - Note N
8 unchanged sentences
Inventories - Note F
−Removed: Current assets held for sale - Note B
Total current assets
12 unchanged sentences
Current liabilities
+Added: Short-term debt - Note H
Trade and other payables
1 unchanged sentence
Current operating lease obligations - Note I
−Removed: Current liabilities held for sale - Note B
Total current liabilities
10 unchanged sentences
Total liabilities and stockholders' equity
−Removed: (a) Accounts receivable, net includes an allowance for credit losses of $ 2 million at both December 31, 2024 and September 30, 2024 .
−Removed: (b) Asbestos insurance receivable, net includes an allowance for credit losses of $ 2 million at both December 31, 2024 and September 30, 2024 .
+Added: (a) Accounts receivable, net includes an allowance for credit losses of $ 2 million at both March 31, 2025 and September 30, 2024 .
+Added: (b) Asbestos insurance receivable, net includes an allowance for credit losses of $ 2 million at both March 31, 2025 and September 30, 2024 .
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
1 unchanged sentence
STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS
−Removed: Three months ended
+Added: Six months ended
(In millions - unaudited)
6 unchanged sentences
Deferred income taxes
+Added: Gain from sales of property and equipment
Income from affiliates
1 unchanged sentence
Loss (income) from restricted investments
+Added: Income on divestitures, net
Impairment charges
5 unchanged sentences
Additions to property, plant and equipment
+Added: Proceeds from disposal of property, plant and equipment
+Added: Proceeds from sale of operations
Company-owned life insurance payments
3 unchanged sentences
Purchases of securities
+Added: Other investing cash flows
Total cash flows used by investing activities from continuing operations
−Removed: CASH FLOWS USED BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS
+Added: CASH FLOWS PROVIDED (USED) BY FINANCING ACTIVITIES FROM CONTINUING OPERATIONS
Repurchase of common stock
−Removed: Repayment of short-term debt
+Added: Proceeds from (repayment of) short-term debt
Cash dividends paid
20 unchanged sentences
and consolidated subsidiaries ("Ashland" or the "Company") Annual Report on Form 10-K for the fiscal year ended September 30, 2024, filed with the SEC on November 18, 2024.
−Removed: Results of operations for the period ended December 31, 2024, are not necessarily indicative of the expected results for the remainder of the fiscal year.
+Added: Results of operations for the period ended March 31, 2025, are not necessarily indicative of the expected results for the remainder of the fiscal year.
Ashland is comprised of the following reportable segments:
22 unchanged sentences
Avoca business sale
−Removed: In December 2024, Ashland signed a definitive agreement to sell substantially all of the net assets of its Avoca business to Mane SA.
−Removed: The Avoca business is included within Ashland's Personal Care reportable segment.
−Removed: The transaction is expected to close during Ashland's fiscal second quarter, contingent on certain customary regulatory approvals and standard closing conditions.
−Removed: Ashland determined that it has met all the criteria for its Avoca business to be classified as held for sale as of December 31, 2024.
−Removed: Therefore, the net assets of this business were classified as held for sale within the Condensed Consolidated Balance Sheet as of December 31, 2024.
+Added: During the three months ended March 2025, Ashland completed the sale of its Avoca business to Mane SA.
+Added: Proceeds from the sale were approximately $ 16 million, net of transaction costs.
+Added: The Avoca business was included within Ashland's Personal Care reportable segment.
Ashland determined this transaction did not qualify for discontinued operations treatment since it neither represented a strategic shift nor did it have a major effect on Ashland's operations and financial results.
−Removed: Ashland recorded an impairment charge of $ 183 million related to allocated goodwill of $ 1 million, other intangible assets of $ 134 million, property, plant and equipment of $ 33 million, operating lease assets, net of $ 14 million, and other current assets of $ 1 million within the loss on acquisitions and divestitures, net caption of the Statement of Condensed Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2024.
−Removed: The tax benefit associated with the expected disposition is included within the income tax benefit caption of the Statement of Condensed Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2024.
−Removed: See Note J for additional details.
−Removed: Held for sale classification
−Removed: The assets and liabilities of the Avoca business have been reflected as assets and liabilities held for sale, as described above and are comprised of the following components as of:
−Removed: (In millions)
−Removed: Accounts receivable, net
−Removed: Current assets held for sale
−Removed: Trade and other payables
−Removed: Operating lease obligations
−Removed: Current liabilities held for sale
+Added: Ashland recorded an impairment charge of zero for the three months ended March 31, 2025 and $ 183 million ($ 1 million allocated to goodwill, $ 134 million to other intangible assets, $ 33 million to property, plant and equipment, $ 14 million to operating lease assets, net and $ 1 million to other current assets) for the six months ended March 31, 2025, within the income (loss) on acquisitions and divestitures, net caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).
+Added: The tax benefit associated with the sale is included within the income tax expense (benefit) caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three and six months ended March 31, 2025 .
+Added: See Note J of the Notes to the Condensed Consolidated Financial Statements for additional details.
+Added: Ashland also recorded a pre-tax gain on sale of $ 8 million following the completion of this sale, mainly related to working capital movements, within the income (loss) on acquisitions and divestitures, net caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three and six months ended March 31, 2025.
+Added: Other corporate assets
+Added: During the three months ended March 2025, Ashland completed the sale of a land property with a net book value of zero .
+Added: Ashland received net proceeds and recorded a pre-tax gain of $ 11 million within the income (loss) on acquisitions and divestitures, net caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three and six months ended March 31, 2025 .
NOTE C – DISCONTINUED OPERATIONS
Ashland has divested certain businesses that have qualified as discontinued operations.
−Removed: The operating results from these divested businesses and subsequent adjustments related to ongoing assessments of certain retained liabilities and income tax items have been recorded within the discontinued operations caption in the Statements of Condensed Consolidated Comprehensive Income (Loss) for all periods presented.
−Removed: Due to the ongoing assessment of certain matters associated with previous divestitures, subsequent adjustments to these divestitures may continue in future periods in the discontinued operations caption in the Statements of Condensed Consolidated Comprehensive Income (Loss).
−Removed: The Performance Adhesives business, divested in 2022, represents a disposal group that qualified as discontinued operations in previous periods and impacted discontinued operations for the three months ended December 31, 2023.
−Removed: Additionally, Ashland is subject to liabilities from claims alleging personal injury caused by exposure to asbestos.
−Removed: Such claims result primarily from indemnification obligations undertaken in 1990 in connection with the sale of Riley Stoker Corporation ("Riley"), a former subsidiary, which qualified as a discontinued operation and from the acquisition during 2009 of Hercules LLC (formerly Hercules Incorporated) ("Hercules"), an indirect wholly-owned subsidiary of Ashland.
−Removed: Adjustments to the recorded litigation reserves and related insurance receivables are recorded within the discontinued operations caption within the Statements of Condensed Consolidated Comprehensive Income (Loss).
−Removed: See Note L of the Notes to the Condensed Consolidated Financial Statements for more information related to the adjustments on asbestos liabilities and receivables.
+Added: The operating results from these divested businesses and subsequent adjustments related to ongoing assessments of certain retained liabilities and income tax items have been recorded within the income (loss) from discontinued operations, net of income taxes caption in the Statements of Condensed Consolidated Comprehensive Income (Loss) for all periods presented.
+Added: Due to the ongoing assessment of certain matters associated with previous divestitures, subsequent adjustments to these divestitures may continue in future periods in the income (loss) from discontinued operations, net of income taxes caption in the Statements of Condensed Consolidated Comprehensive Income (Loss).
+Added: The following divested businesses represent disposal groups that qualified as discontinued operations in previous periods and impacted discontinued operations for the three and six months ended March 31, 2025 and 2024:
+Added: • The Performance Adhesives business divested in 2022;
+Added: • The Composites business and Marl facility (Composites/Marl facility) divested in 2019;
+Added: • The separation of Valvoline Inc.
+Added: (Valvoline) business divested in 2017;
+Added: • The sale of the Ashland Distribution (Distribution) business divested in 2011.
Components of amounts reflected in the Statements of Condensed Consolidated Comprehensive Income (Loss) related to discontinued operations are presented in the following table:
Three months ended
+Added: Six months ended
(In millions)
1 unchanged sentence
Performance Adhesives
−Removed: Asbestos-related litigation
+Added: Composites/Marl facility
NOTE D – RESTRUCTURING ACTIVITIES
2 unchanged sentences
As a part of this program, Ashland is also advancing a multi-year manufacturing optimization restructuring plan to improve operational cost and strengthen its competitive position.
+Added: During the three and six months ended March 31, 2025 , Ashland incurred $ 13 million of accelerated depreciation for product line optimization activities associated with a Life Sciences manufacturing facility, which was recorded within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).
During fiscal 2023, Ashland implemented targeted organizational restructuring actions to reduce costs.
This program continued into fiscal 2024 and 2025.
−Removed: Additionally, during the three months ended December 31, 2023 , Ashland incurred $ 21 million of accelerated depreciation for product line optimization activities associated with a Specialty Additives manufacturing facility, which was recorded within the cost of goods sold caption of the Statement of Condensed Consolidated Comprehensive Income (Loss).
−Removed: The following table details the amount of restructuring severance expense related to these programs.
−Removed: Three months ended December 31,2024
−Removed: Three months ended December 31,2023
+Added: During the three and six months ended March 31, 2024 , Ashland incurred $ 27 million and $ 49 million, respectively, of accelerated depreciation for product line optimization activities associated with two Specialty Additives manufacturing facilities, which was recorded within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).
+Added: The following tables detail the amount of restructuring severance expense related to these programs.
+Added: Three months ended March 31, 2025
+Added: Three months ended March 31, 2024
(In millions)
+Added: Severance expense (a)
+Added: Utilization (cash paid)
+Added: Severance expense (a)
+Added: Utilization (cash paid)
+Added: 2025 Restructuring program
+Added: 2023 Restructuring program
+Added: (a) Severance expense is recorded within the selling, general and administrative expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three months ended March 31, 2025 and 2024.
+Added: Six months ended March 31, 2025
+Added: Six months ended March 31, 2024
+Added: (In millions)
Severance expense (income) (a)
4 unchanged sentences
2023 Restructuring program
−Removed: (a) Severance expense is recorded within the selling, general and administrative expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2024 and 2023.
−Removed: The following table details at December 31, 2024 the amount of restructuring severance liabilities related to these programs.
+Added: (a) Severance expense is recorded within the selling, general and administrative expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the six months ended March 31, 2025 and 2024.
+Added: The following table details at March 31, 2025 the amount of restructuring severance liabilities related to these programs.
(In millions)
4 unchanged sentences
Utilization (cash paid)
−Removed: Balance at December 31, 2024 (a)
−Removed: (a) The restructuring severance liability associated with these programs is recorded within accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets at December 31, 2024 and September 30, 2024 .
+Added: Balance at March 31, 2025 (a)
+Added: (a) The restructuring severance liability associated with these programs is recorded within accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets at March 31, 2025 and September 30, 2024 .
NOTE E – FAIR VALUE MEASUREMENTS
6 unchanged sentences
For all other assets and liabilities for which unobservable inputs are used (Level 3), fair value is derived through the use of fair value models, such as a discounted cash flow model or other standard pricing models that Ashland deems reasonable.
−Removed: The following table summarizes financial instruments subject to recurring fair value measurements as of December 31, 2024:
+Added: The following table summarizes financial instruments subject to recurring fair value measurements as of March 31, 2025:
(In millions)
5 unchanged sentences
Total assets at fair value
−Removed: Commodity derivatives (e)
−Removed: Total liabilities at fair value
(a) Includes $ 272 million within restricted investments and $ 73 million within other current assets in the Condensed Consolidated Balance Sheet .
2 unchanged sentences
(d) Included in accounts receivable, net in the Condensed Consolidated Balance Sheet.
−Removed: (e) Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet.
The following table summarizes financial asset instruments subject to recurring fair value measurements as of September 30, 2024:
17 unchanged sentences
The financial instruments are designated as investment securities, classified as Level 1 measurements within the fair value hierarchy.
−Removed: These securities were classified primarily as noncurrent restricted investment assets, with $ 73 million classified within other current assets, in the Condensed Consolidated Balance Sheets at both December 31, 2024 and September 30, 2024.
−Removed: The following table presents gross unrealized gains and losses for the restricted securities as of:
+Added: These securities were classified primarily as noncurrent restricted investment assets, with $ 73 million classified within other current assets, in the Condensed Consolidated Balance Sheets at both March 31, 2025 and September 30, 2024.
+Added: The following table presents gross unrealized gains and losses for the restricted investments as of:
(In millions)
2 unchanged sentences
Unrealized Loss
−Removed: December 31, 2024
+Added: March 31, 2025
Demand deposit
7 unchanged sentences
Three months ended
+Added: Six months ended
(In millions)
12 unchanged sentences
Three months ended
+Added: Six months ended
(In millions)
9 unchanged sentences
plants during the manufacturing process, Ashland regularly enters into forward contracts that are designated as cash flow hedges.
−Removed: The following table summarizes the net gai ns and losses recognized within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss):
+Added: The following table summarizes the net losses recognized within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss):
Three months ended
+Added: Six months ended
(In millions)
7 unchanged sentences
Other financial instruments
−Removed: At December 31, 2024 and September 30, 2024 , Ashland's long-term debt (including the current portion and excluding debt issuance cost discounts) had a carrying value of $ 1,324 million and $ 1,361 million, respectively, compared to a fair value of $ 1,276 million and $ 1,327 million, respectively.
+Added: At March 31, 2025 and September 30, 2024 , Ashland's long-term debt (including the current portion and excluding debt issuance cost discounts) had a carrying value of $ 1,347 million and $ 1,361 million, respectively, compared to a fair value of $ 1,292 million and $ 1,327 million, respectively.
The fair values of long-term debt are based on quoted market prices (level 1 of the fair value hierarchy).
9 unchanged sentences
Ashland tests goodwill and other indefinite-lived intangible assets for impairment annually as of July 1 or whenever events and circumstances indicate an impairment may have occurred.
−Removed: No indicators of impairment were identified during the three months ended December 31, 2024 .
−Removed: The following is a progression of goodwill by reportable segment for the three months ended December 31, 2024:
+Added: No indicators of impairment were identified during the three and six months ended March 31, 2025 .
+Added: The following is a progression of goodwill by reportable segment for the six months ended March 31, 2025:
(In millions)
3 unchanged sentences
Currency translation
−Removed: Avoca business - held for sale (b)
−Removed: Balance at December 31, 2024
−Removed: (a) As of December 31, 2024 and September 30, 2024 , there were accumulated impairments of $ 356 million, $ 174 million and $ 90 million related to the Personal Care, Specialty Additives and Intermediates reportable segments, respectively.
−Removed: (b) Reclassified to the current assets held for sale caption of the Condensed Consolidated Balance Sheet as of December 31, 2024 .
+Added: Avoca business - divestiture (b)
+Added: Balance at March 31, 2025
+Added: (a) As of March 31, 2025 and September 30, 2024 , there were accumulated impairments of $ 356 million, $ 174 million and $ 90 million related to the Personal Care, Specialty Additives and Intermediates reportable segments, respectively.
+Added: (b) Ashland allocated $ 1 million to the Avoca disposal group during the six months ended March 31, 2025 .
See Note B of the Notes to the Condensed Consolidated Financial Statements for more information.
4 unchanged sentences
Ashland annually reviews, as of July 1, indefinite-lived intangible assets for possible impairment or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable.
−Removed: No indicators of impairment were identified during the three months ended December 31, 2024 , other than the other intangible assets within the Avoca business.
−Removed: See Note B for further information.
+Added: No indicators of impairment were identified during the three and six months ended March 31, 2025 , other than the other intangible assets within the Avoca business.
+Added: See Note B of the Notes to the Condensed Consolidated Financial Statements for further information.
Other intangible assets were comprised of the following as of:
−Removed: December 31, 2024 (a)
+Added: March 31, 2025
September 30, 2024
1 unchanged sentence
Definite-lived intangibles
−Removed: Trademarks and trade names
−Removed: Intellectual property
−Removed: Customer and supplier relationships
+Added: Trademarks and trade names (a)
+Added: Intellectual property (b)
+Added: Customer and supplier relationships (c)
Total definite-lived intangibles
2 unchanged sentences
Total intangible assets
−Removed: (a) Includes $ 134 million r eclassified to the current assets held for sale caption of the Condensed Consolidated Balance Sheets as of December 31, 2024 .
−Removed: See Note B of the Notes to the Condensed Consolidated Financial Statements for more information.
−Removed: Amortization expense recognized on intangible assets was $ 17 million and $ 21 million for the three months ended December 31, 2024 and 2023 , respectively, and is included within the intangibles amortization expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).
−Removed: Estimated amortization expense for future periods is $ 62 million in 2025 (includes three months actual and nine months estimated), $ 57 million in 2026, $ 35 million in 2027, $ 33 million in 2028 and $ 28 million in 2029.
+Added: (a) Ashland allocated $ 7 million to the Avoca business during the six months ended March 31, 2025.
+Added: See Note B of the Notes to the Condensed Consolidated Financial Statements for additional details.
+Added: (b) Ashland allocated $ 29 million to the Avoca business during the six months ended March 31, 2025.
+Added: See Note B of the Notes to the Condensed Consolidated Financial Statements for additional details.
+Added: (c) Ashland allocated $ 98 million to the Avoca business during the six months ended March 31, 2025.
+Added: See Note B of the Notes to the Condensed Consolidated Financial Statements for additional details.
+Added: Amortization expense recognized on intangible assets was $ 15 million and $ 20 million for the three months ended March 31, 2025 and 2024 , respectively, and $ 32 million and $ 40 million for the six months ended March 31, 2025 and 2024 , respectively, and is included within the intangibles amortization expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).
+Added: Estimated amortization expense for future periods is $ 61 million in 2025 (includes six months actual and six months estimated), $ 57 million in 2026, $ 35 million in 2027, $ 33 million in 2028 and $ 26 million in 2029.
Actual amounts may change from such estimated amounts due to fluctuations in foreign currency exchange rates, additional intangible asset acquisitions and divestitures, potential impairment, accelerated amortization, or other events.
2 unchanged sentences
(In millions)
−Removed: December 31, 2024
+Added: March 31, 2025
September 30, 2024
3 unchanged sentences
6.50 % Junior Subordinated Notes, due 2029
+Added: Short-term debt
Long-term debt (less debt issuance costs)
−Removed: (a) Other includes $ 11 million and $ 12 million of debt issuance costs as of December 31, 2024 and September 30, 2024 , respectively.
−Removed: The scheduled aggregate maturities for long-term debt by year (excluding debt issuance costs) are as follows as of December 31, 2024 :
+Added: (a) Other includes $ 11 million and $ 12 million of debt issuance costs as of March 31, 2025 and September 30, 2024, respectively.
+Added: The current portion of the long-term debt was zero for both March 31, 2025 and September 30, 2024 .
+Added: The scheduled aggregate maturities for long-term debt by year (excluding debt issuance costs) are as follows as of March 31, 2025 :
zero in 2025 and 2026, $ 4 million in 2027, $ 541 million in 2028, $ 97 million in 2029, and zero in 2030.
10 unchanged sentences
Accounts Receivable Sales Program
−Removed: Ashland recognized a loss of $ 1 million and less than $ 1 million within the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2024 and 202 3, respectively, within the net interest and other expense (income) caption associated with sales under the program.
−Removed: Ashland has recorded $ 64 million in sales at December 31, 2024 against the buyer’s limit, which was $ 64 million at December 31, 2024 compared to $ 71 million of sales at September 30, 2024 against the buyer's limit, which was $ 71 million at September 30, 2024 .
−Removed: Ashland transferred $ 78 million and $ 85 million in accounts receivable to the special purpose entity as of December 31, 2024 and September 30, 2024, respectively.
−Removed: Ashland recorded liabilities related to its service obligations and limited guarantee as of December 31, 2024 and September 30, 2024 of less than $ 1 million.
−Removed: As of December 31, 2024 and 20 23, the year-to-date gross cash proceeds received for accounts receivable transferred and derecognized were $ 95 million and $ 85 million, respectively, of which $ 102 million and $ 77 million were collected, which includes collections from sales in prior years transferred to the buyer.
−Removed: The difference between accounts receivable transferred and derecognized versus collected of $ 7 million and $ 8 million for the three months ended December 31, 2024 and 2023, respectively, represents the impact of a net reduction and a net increase in accounts receivable sales volume during each period, respectively.
+Added: Ashland recognized a loss of $ 1 million and $ 1 million within the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three months ended March 31, 2025 and 2024 , respectively, and $ 2 million and $ 2 million for the six months ended March 31, 2025 and 2024 , respectively, within the net interest and other expense (income) caption associated with sales under the program.
+Added: Ashland has recorded $ 60 million in sales at March 31, 2025 against the buyer’s limit, which was $ 60 million at March 31, 2025 compared to $ 71 million of sales at September 30, 2024 against the buyer's limit, which was $ 71 million at September 30, 2024 .
+Added: Ashland transferred $ 73 million and $ 85 million in accounts receivable to the special purpose entity as of March 31, 2025 and September 30, 2024, respectively.
+Added: Ashland recorded liabilities related to its service obligations and limited guarantee as of March 31, 2025 and September 30, 2024 of less than $ 1 million.
+Added: As of March 31, 2025 and 2024 , the year-to-date gross cash proceeds received for accounts receivable transferred and derecognized were $ 189 million and $ 174 million, respectively, of which $ 200 million and $ 159 million were collected, which includes collections from sales in prior years transferred to the buyer.
+Added: The difference between accounts receivable transferred and derecognized versus collected of $ 11 million and $ 15 million for the six months ended March 31, 2025 and 2024, respectively, represents the impact of a net reduction and a net increase in accounts receivable sales volume during each period, respectively.
Foreign Accounts Receivable Sales Program
−Removed: Ashland recognized a loss of less than $ 1 million and $ 1 million within the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2024 and 2023, respectively, within the net interest and other expense (income) caption associat ed with sales under the program.
−Removed: Ashland has recorded $ 92 million in sales at December 31, 2024 against the buyer’s limit, which was $ 92 million at December 31, 2024 compared to $ 104 million of sales at September 30, 2024 against the buyer's limit, which was $ 104 million at September 30, 2024 .
−Removed: Ashland transferred $ 128 million and $ 155 million in accounts receivable to the special purpose entity as of December 31, 2024 and September 30, 2024, respectively.
−Removed: Ashland recorded liabilities related to its service obligations and limited guarantee as of December 31, 2024 and September 30, 2024 of less than $ 1 million.
−Removed: As of December 31, 2024 and 20 23, the year-to-date gross cash proceeds received for accounts receivable transferred and derecognized were $ 71 million and $ 102 million, respectively, of which $ 84 million and zero million were collected.
−Removed: The difference between accounts receivable transferred and derecognized versus collected of $ 13 million and $ 102 million for the three months ended December 31, 2024 and 2023, respectively, represents the impact of a net reduction and a net increase in accounts receivable sales volume during each period, respectively.
+Added: Ashland recognized a loss of $ 1 million and $ 1 million within the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three months ended March 31, 2025 and 2024 , respectively, and $ 2 million and $ 2 million for the six months ended March 31, 2025 and 2024 , respectively, within the net interest and other expense (income) caption associated with sales under the program.
+Added: Ashland has recorded $ 117 million in sales at March 31, 2025 against the buyer’s limit, which was $ 117 million at March 31, 2025 compared to $ 104 million of sales at September 30, 2024 against the buyer's limit, which was $ 104 million at September 30, 2024 .
+Added: Ashland transferred $ 152 million and $ 155 million in accounts receivable to the special purpose entity as of March 31, 2025 and September 30, 2024, respectively.
+Added: Ashland recorded liabilities related to its service obligations and limited guarantee as of March 31, 2025 and September 30, 2024 of less than $ 1 million.
+Added: As of March 31, 2025 and 2024 , the year-to-date gross cash proceeds received for accounts receivable transferred and derecognized were $ 242 million and $ 122 million, respectively, of which $ 233 million and zero million were collected.
+Added: The difference between accounts receivable transferred and derecognized versus collected of $ 9 million and $ 122 million for the six months ended March 31, 2025 and 2024, respectively, represents the impact of a net increase in accounts receivable sales volume during each period, respectively.
Supply Chain Finance Program
3 unchanged sentences
Ashland provides no guarantees to JP Morgan and Taulia Alliance under this program.
−Removed: As of December 31, 2024, the program has not yet been offered to suppliers for utilization.
+Added: As of March 31, 2025, the program is still in implementation with no active supplier participation.
Available borrowing capacity and liquidity
−Removed: The borrowing capacity remaining under current credit agreement (the “2022 Credit Agreement”) was $ 596 million, which reflects the full $ 600 million Revolving Credit Facility less a reduction of $ 4 million for letters of credit outstanding as of December 31, 2024.
−Removed: Ashland's total borrowing capacity at December 31, 2024 , was $ 596 million.
−Removed: Ashland had zero of available liquidity under its current U.S.
−Removed: and Foreign Accounts Receivable Sales Programs as of December 31, 2024.
+Added: The borrowing capacity remaining under current credit agreement (the “2022 Credit Agreement”) was $ 546 million, which reflects reductions for utilization of $ 50 million of the $ 600 million Revolving Credit Facility and $ 4 million for letters of credit outstanding as of March 31, 2025.
+Added: Ashland had no available liquidity under its current U.S.
+Added: and Foreign Accounts Receivable Sales Programs as of March 31, 2025.
Covenants related to current Ashland debt agreements
Ashland's debt contains usual and customary representations, warranties and affirmative and negative covenants, including financial covenants for leverage and interest coverage ratios, limitations on liens, additional subsidiary indebtedness, restrictions on subsidiary distributions, investments, mergers, sale of assets and restricted payments and other customary limitations.
−Removed: As of December 31, 2024, Ashland is in compliance with all debt agreement covenant restrictions.
+Added: As of March 31, 2025, Ashland is in compliance with all debt agreement covenant restrictions.
The maximum consolidated net leverage ratio permitted under the 2022 Credit Agreement is 4.0 .
−Removed: At December 31, 2024 , Ashland’s calculation of the consolidated net leverage ratio was 2.5 .
+Added: At March 31, 2025, Ashland’s calculation of the consolidated net leverage rat io was 2.9 .
The minimum required consolidated interest coverage ratio under the 2022 Credit Agreement during its entire duration is 3.0 .
−Removed: At December 31, 2024 , Ashland’s calculation of the interest coverage ratio was 7.6 .
+Added: At March 31, 2025 , Ashland’s calculation of the interest coverage ratio was 7.0 .
NOTE I – LEASING ARRANGEMENTS
1 unchanged sentence
Three months ended
+Added: Six months ended
(In millions)
10 unchanged sentences
Total lease cost
−Removed: (a) Includes a $ 1 million charge for the impairment of an abandoned right of use office building asset for the three months ended December 31, 2023 .
−Removed: Right-of-use assets exchanged for new operating lease obligations were zero and $ 1 million for the three months ended December 31, 2024 and 2023, respectively.
+Added: (a) Includes zero and $ 1 million charge for the impairment of an abandoned right of use office building asset for the three and six months ended March 31, 2024 .
+Added: Right-of-use assets exchanged for new operating lease obligations were $ 1 million and $ 2 million for the three ended March 31, 2025 and 2024 , respectively, and $ 2 million and $ 3 million for the six months ended March 31, 2025 and 2024, respectively.
+Added: During the second quarter of fiscal 2024, Ashland acquired a favorable lease asset for $ 10 million, which was recorded in the property, plant and equipment caption of the Condensed Consolidated Balance Sheet as of March 31, 2024.
The following table provides cash paid for amounts included in the measurement of lease liabilities:
Three months ended
+Added: Six months ended
(In millions)
Operating cash flows from operating leases
+Added: Investing cash flows from finance leases
NOTE J – INCOME TAXES
1 unchanged sentence
Ashland’s effective tax rate in any interim period is subject to adjustments related to discrete items and the mix of domestic and foreign operating results.
−Removed: The overall effective tax rate was 21 % for the three months ended December 31, 2024.
−Removed: The current quarter's tax rate was impacted by jurisdictional income mix as well as a net $ 8 million from unfavorable tax discrete items primarily related to final regulations issued in the United States during the quarter impacting the recognition of deferred taxes on certain unrealized foreign exchange gains and losses.
+Added: The overall effective tax rate was 23 % and 20 % for the three and six months ended March 31, 2025, respectively.
+Added: The tax rate for the three months ended March 31, 2025 was primarily impacted by jurisdictional income mix.
+Added: The tax rate for the six months ended March 31, 2025 was impacted by jurisdictional income mix, as well as a net $ 7 million from unfavorable tax discrete items primarily related to changes in foreign tax activity and final regulations issued in the United States impacting the recognition of deferred taxes on certain unrealized foreign exchange gains and losses.
Prior fiscal year
−Removed: The overall effective tax rate was a benefit of 600 % for the three months ended December 31, 2023 .
−Removed: The quarter tax rate was impacted by jurisdictional income mix, as well as net $ 24 million from favorable tax discrete items primarily related to changes in foreign tax reform related activity.
+Added: The overall effective tax rate was a benefit of 612 % and 610 % for the three and six months ended March 31, 2024, respectively.
+Added: The tax rate for the three months ended March 31, 2024 was impacted by jurisdictional income mix, as well as a net $ 102 million from favorable tax discrete items primarily related to changes in foreign tax activity.
+Added: The tax rate for the six months ended March 31, 2024 was impacted by jurisdictional income mix, as well as net $ 126 million from favorable tax discrete items primarily related to changes in foreign tax activity.
Unrecognized tax benefits
−Removed: Changes in unrecognized tax benefits are summarized as follows for the three months ended December 31, 2024.
+Added: Changes in unrecognized tax benefits are summarized as follows for the six months ended March 31, 2025.
(In millions)
3 unchanged sentences
Increases related to positions taken in the prior year
−Removed: Balance at December 31, 2024
+Added: Balance at March 31, 2025
From a combination of statute expirations and audit settlements in the next twelve months, Ashland expects a decrease in the amount of accrual for uncertain tax positions of between $ 2 million and $ 4 million for continuing operations.
−Removed: For the remaining balance as of December 31, 2024 , it is reasonably possible that there could be material changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues,
−Removed: reassessment of existing uncertain tax positions or the expiration of applicable statute of limitations;
+Added: For the remaining balance as of March 31, 2025 , it is reasonably possible that there could be material changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues, reassessment of existing uncertain tax positions or the expiration of applicable statute of limitations;
however, Ashland is not able to estimate the impact of these items at this time.
4 unchanged sentences
This resulted in a decrease in total expected future years of service within the plan and required Ashland to remeasure the plan as of December 31, 2024.
−Removed: As a result, Ashland recorded a $ 1 million curtailment loss within the other net periodic benefit loss caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three months ended December 31, 2024.
+Added: As a result, Ashland recorded a $ 1 million curtailment loss within the other net periodic benefit loss caption of the Statement of Condensed Consolidated Comprehensive Income (Loss) for the six months ended March 31, 2025.
Plan contributions
−Removed: For the three months ended December 31, 2024 , Ashland contributed $ 1 million to its non-U.S.
−Removed: pension plans and $ 3 million to its U.S.
+Added: For the six months ended March 31, 2025 , Ashland contributed $ 4 million to its U.S.
+Added: pension plans and $ 3 million to its non-U.S.
pension plans.
6 unchanged sentences
Other postretirement
−Removed: Three months ended December 31
−Removed: Three months ended December 31
(In millions)
+Added: Three months ended March 31
Interest cost
Expected return on plan assets
+Added: Total net periodic benefit costs
+Added: Six months ended March 31
+Added: Interest cost
+Added: Expected return on plan assets
Curtailment loss
Total net periodic benefit costs
−Removed: For segment reporting purposes, service cost is proportionately allocated to each segment, excluding the Unallocated and other segment, and is recorded within the selling, general and administrative expense and cost of sales captions on the Statements of Condensed Consolidated Comprehensive Income (Loss).
−Removed: All other components are recorded within the other net periodic benefit loss caption on the Statements of Condensed Consolidated Comprehensive Income (Loss), which resulted in expense of $ 2 million for both the three months ended December 31, 2024 and 2023 .
+Added: For segment reporting purposes, service cost is proportionately allocated to each segment, excluding the Unallocated and other, and is recorded within the selling, general and administrative expense and cost of sales captions on the Statements of Condensed Consolidated Comprehensive Income (Loss).
+Added: All other components are recorded within the other net periodic benefit loss caption on the Statements of Condensed Consolidated Comprehensive Income (Loss), which netted to expense of $ 1 million and $ 3 million for the three and six months ended March 31, 2025 , respectively, and expense of $ 2 million and $ 4 million for the three and six months ended March 31, 2024 , respectively.
NOTE L – LITIGATION, CLAIMS AND CONTINGENCIES
7 unchanged sentences
The methodology used by Gnarus to project future asbestos costs is based largely on recent experience, including claim-filing and settlement rates, disease mix, open claims and litigation defense.
−Removed: The claim experience of Ashland and Hercules are separately compared to the results of previously conducted third party
−Removed: epidemiological studies estimating the number of people likely to develop asbestos-related diseases.
+Added: The claim experience of Ashland and Hercules are separately compared to the results of previously conducted third party epidemiological studies estimating the number of people likely to develop asbestos-related diseases.
Those studies were undertaken in connection with national analyses of the population expected to have been exposed to asbestos.
Using that information, Gnarus estimates a range of the number of future claims that may be filed, as well as the related costs that may be incurred in resolving those claims.
−Removed: Changes in asbestos-related liabilities and receivables are recorded on an after-tax basis within the discontinued operations caption in the Statements of Condensed Consolidated Comprehensive Income (Loss).
+Added: Changes in asbestos-related liabilities and receivables are recorded on an after-tax basis within the income (loss) from discontinued operations, net of income taxes caption in the Statements of Condensed Consolidated Comprehensive Income (Loss).
Ashland asbestos-related litigation
1 unchanged sentence
The amount and timing of settlements and number of open claims can fluctuate from period to period.
−Removed: A summary of Ashland asbestos claims activity, excluding Hercules claims, is as follow:
−Removed: Three months ended
+Added: A summary of Ashland asbestos claims activity, excluding Hercules claims, is as follows:
+Added: Six months ended
Years ended September 30
9 unchanged sentences
During the most recent update completed in fiscal 2024, it was determined that the liability for Ashland asbestos-related claims should be increased by $ 24 million.
−Removed: Total reserves for asbestos claims were $ 264 million and $ 274 million at December 31, 2024 and September 30, 2024, respectively.
+Added: Total reserves for asbestos claims were $ 256 million and $ 274 million at March 31, 2025 and September 30, 2024, respectively.
A progression of activity in the asbestos reserve is presented in the following table.
−Removed: Three months ended
+Added: Six months ended
Years ended September 30
3 unchanged sentences
Asbestos reserve - end of period (a)
−Removed: (a) Includes $ 28 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of December 31, 2024 and September 30, 2024 .
+Added: (a) Includes $ 28 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of March 31, 2025 and September 30, 2024 .
Ashland asbestos-related receivables
2 unchanged sentences
Substantially all of the estimated receivables from insurance companies are expected to be due from domestic insurers, all of which are solvent.
−Removed: At December 31, 2024 and September 30, 2024, Ashland’s receivable for recoveries of litigation defense and claim settlement costs from insurers amounted to $ 96 million (excluding the Hercules receivable for asbestos claims discussed below) and $ 97 million, respectively.
+Added: At March 31, 2025 and September 30, 2024, Ashland’s receivable for recoveries of litigation defense and claim settlement costs from insurers amounted to $ 95 million (excluding the Hercules receivable for asbestos claims discussed below) and $ 97 million, respectively.
In fiscal 2024, the annual update of the model used for purposes of valuing the asbestos reserve and its impact on valuation of future recoveries from insurers was completed.
1 unchanged sentence
A progression of activity in the Ashland insurance receivable is presented in the following table.
−Removed: Three months ended
+Added: Six months ended
Years ended September 30
4 unchanged sentences
Insurance receivable - end of period (b)
−Removed: (a) The total allowance for credit losses was $ 1 million at of December 31, 2024 and September 30, 2024 .
−Removed: (b) Includes $ 9 million classified in accounts receivable, net on the Condensed Consolidated Balance Sheets at December 31, 2024 and September 30, 2024 .
+Added: (a) The total allowance for credit losses was $ 1 million at of March 31, 2025 and September 30, 2024 .
+Added: (b) Includes $ 9 million classified in accounts receivable, net on the Condensed Consolidated Balance Sheets at March 31, 2025 and September 30, 2024 .
Hercules asbestos-related litigation
3 unchanged sentences
A summary of Hercules’ asbestos claims activity follows:
−Removed: Three months ended
+Added: Six months ended
Years ended September 30
8 unchanged sentences
During the most recent update completed in fiscal 2024, it was determined that the liability for Hercules asbestos-related claims should be increased by $ 14 million.
−Removed: Total reserves for asbestos claims were $ 182 million and $ 185 million at December 31, 2024 and September 30, 2024, respectively.
+Added: Total reserves for asbestos claims were $ 180 million and $ 185 million at March 31, 2025 and September 30, 2024, respectively.
A progression of activity in the asbestos reserve is presented in the following table.
−Removed: Three months ended
+Added: Six months ended
Years ended September 30
3 unchanged sentences
Asbestos reserve - end of period (a)
−Removed: (a) Includes $ 17 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets at December 31, 2024 and September 30, 2024 .
+Added: (a) Includes $ 17 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets at March 31, 2025 and September 30, 2024 .
Hercules asbestos-related receivables
3 unchanged sentences
The estimated receivable consists exclusively of solvent domestic insurers.
−Removed: As of December 31, 2024 and September 30, 2024, Ashland’s receivable for recoveries of litigation defense and claims costs from insurers with respect to Hercules amounted to $ 48 million and $ 50 million, respectively.
+Added: As of March 31, 2025 and September 30, 2024, Ashland’s receivable for recoveries of litigation defense and claims costs from insurers with respect to Hercules amounted to $ 46 million and $ 50 million, respectively.
In fiscal 2024, the annual update of the model used for purposes of valuing the asbestos reserve and its impact on valuation of future recoveries from insurers was completed.
1 unchanged sentence
A progression of activity in the Hercules insurance receivable is presented in the following table.
−Removed: Three months ended
+Added: Six months ended
Years ended September 30
4 unchanged sentences
Insurance receivable - end of period (b)
−Removed: (a) The total allowance for credit losses was $ 1 million at December 31, 2024 and September 30, 2024 .
−Removed: (b) Includes $ 6 million classified in accounts receivable, net on the Condensed Consolidated Balance Sheets at December 31, 2024 and September 30, 2024 .
+Added: (a) The total allowance for credit losses was $ 1 million at March 31, 2025 and September 30, 2024 .
+Added: (b) Includes $ 6 million classified in accounts receivable, net on the Condensed Consolidated Balance Sheets at March 31, 2025 and September 30, 2024 .
Asbestos litigation cost projection
Projecting future asbestos costs is subject to numerous variables that are difficult to predict.
−Removed: In addition to the uncertainties surrounding the number of claims that might be received, other variables include the type and severity of the disease alleged by each claimant and the related costs incurred in resolving those claims, mortality rates, dismissal rates, uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case.
+Added: In addition to the uncertainties surrounding the number of claims that might be received, other variables include the type and severity of the disease alleged by each claimant and the related costs incurred in resolving those claims, mortality rates, dismissal rates, and uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case.
Furthermore, any predictions with respect to these variables are subject to even greater uncertainty as the projection period lengthens.
7 unchanged sentences
Ashland is subject to various federal, state and local environmental laws and regulations that require environmental assessment or remediation efforts (collectively environmental remediation) at multiple locations.
−Removed: At December 31, 2024 , such locations included 53 sites where Ashland has been identified as a potentially responsible party under
−Removed: Superfund or similar state laws, 108 current and former operating facilities and about 1,225 service station properties, of which 14 are being actively remediated.
−Removed: Ashland’s reserves for environmental remediation and related environmental litigation amounted to $ 216 million and $ 221 million at December 31, 2024 and September 30, 2024 , respectively, of which $ 159 million and $ 164 million at December 31, 2024 and September 30, 2024, respectively, were classified in other noncurrent liabilities on the Condensed Consolidated Balance Sheets.
+Added: At March 31, 2025 , such locations included 53 sites where Ashland has been identified as a potentially responsible party under Superfund or similar state laws, 108 current and former operating facilities and about 1,225 service station properties, of which 14 are being actively remediated.
+Added: Ashland’s reserves for environmental remediation and related environmental litigation amounted to $ 207 million and $ 221 million at March 31, 2025 and September 30, 2024 , respectively, of which $ 150 million and $ 164 million at March 31, 2025 and September 30, 2024, respectively, were classified in other noncurrent liabilities on the Condensed Consolidated Balance Sheets.
The remaining reserves were classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets.
The following table provides a reconciliation of the changes in the environmental remediation reserves:
−Removed: Three months ended
+Added: Six months ended
(In millions)
7 unchanged sentences
Ashland has estimated the value of its probable insurance recoveries associated with its environmental reserve based on management’s interpretations and estimates surrounding the available or applicable insurance coverage.
−Removed: At December 31, 2024 and September 30, 2024 , Ashland’s recorded receivables for these probable insurance recoveries were $ 12 million and $ 13 million, respectively, of which $ 11 million at December 31, 2024 and September 30, 2024 , were classified in other noncurrent assets on the Condensed Consolidated Balance Sheets.
+Added: At March 31, 2025 and September 30, 2024 , Ashland’s recorded receivables for these probable insurance recoveries were $ 12 million and $ 13 million, respectively, of which $ 10 million and $ 11 million at March 31, 2025 and September 30, 2024 , respectively, were classified in other noncurrent assets on the Condensed Consolidated Balance Sheets.
Components of environmental remediation expense included within the selling, general and administrative expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) are presented in the following table:
Three months ended
+Added: Six months ended
(In millions)
4 unchanged sentences
Total expense, net of receivable activity (a)
−Removed: (a) Net expense of zero and $ 1 million for the three months ended December 31, 2024 and 2023 , respectively, relates to divested businesses which qualified for treatment as discontinued operations for which certain environmental liabilities were retained by Ashland.
+Added: (a) Net expense of zero for the three and six months ended March 31, 2025 and zero and $ 1 million for the three and six months ended March 31, 2024 , respectively, relates to divested businesses which qualified for treatment as discontinued operations for which certain environmental liabilities were retained by Ashland.
These amounts are classified within the income (loss) from discontinued operations, net of income taxes caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).
2 unchanged sentences
Although it is not possible to predict with certainty the ultimate costs of environmental remediation, Ashland currently estimates that the upper end of the reasonably possible range of future costs for identified sites could be as high as approximately $ 465 million.
−Removed: The largest reserve for any site is 21 % of the remediation reserve as of December 31, 2024.
+Added: The largest reserve for any site is 22 % of the remediation reserve as of March 31, 2025.
Other legal proceedings and claims
1 unchanged sentence
Such actions are with respect to commercial matters, product liability, toxic tort liability, and other environmental matters, which seek remedies or damages, some of which are for substantial amounts.
−Removed: While Ashland cannot predict with certainty the outcome of
−Removed: such actions, it believes that adequate reserves have been recorded and losses already recognized with respect to such actions were immaterial as of December 31, 2024.
+Added: While Ashland cannot predict with certainty the outcome of such actions, it believes that adequate reserves have been recorded and losses already recognized with respect to such actions were immaterial as of March 31, 2025.
There is a reasonable possibility that a loss exceeding amounts already recognized may be incurred related to these actions;
−Removed: however, Ashland believes that such potential losses were immaterial as of December 31, 2024 .
+Added: however, Ashland believes that such potential losses were immaterial as of March 31, 2025 .
NOTE M – EARNINGS PER SHARE
1 unchanged sentence
Stock appreciation rights and warrants available to purchase shares outstanding for each reporting period whose exercise price was greater than the average market price of Ashland common stock for each applicable period were not included in the computation of income (loss) from continuing operations per diluted share because the effect of these instruments would be antidilutive .
−Removed: The total number of these shares outstanding was approximately 1 million at December 31, 2024 and 2023 .
+Added: The total number of these shares outstanding was approximately 1 million at March 31, 2025 and 2024 .
The majority of these shares are for warrants with a strike price of $ 128.66 .
1 unchanged sentence
Three months ended
+Added: Six months ended
(In millions, except per share data)
4 unchanged sentences
EPS from continuing operations
−Removed: (a) As a result of the loss from continuing operations attributable to Ashland during the three months ended December 31, 2024, the effect of the share-based awards convertible to common stock would be antidilutive and have been excluded from the diluted EPS calculation.
+Added: (a) As a result of the loss from continuing operations attributable to Ashland during the six months ended March 31, 2025 , the effect of the share-based awards convertible to common stock would be antidilutive and have been excluded from the diluted EPS calculation.
NOTE N – EQUITY ITEMS
2 unchanged sentences
The new authorization terminated and replaced the 2022 Stock Repurchase Program, which had $ 200 million outstanding at the date of termination.
−Removed: As of December 31, 2024 and September 30, 2024 , $ 620 million remained available for repurchase under the 2023 Stock Repurchase Program.
−Removed: There was no stock repurchase activity during the three months ended December 31, 2024 .
−Removed: The following table provides the common stock repurchase activity for the three months ended December 31, 2023:
+Added: As of March 31, 2025 , $ 520 million remained available for repurchase under the 2023 Stock Repurchase Program.
+Added: The following table provides the common stock repurchase activity:
+Added: Three months ended
+Added: Six months ended
(In millions, except per share data)
3 unchanged sentences
2023 Stock Repurchase Program
+Added: 2023 Stock Repurchase Program
+Added: 2023 Stock Repurchase Program
(a) Includes transactions costs.
Stockholder dividends
−Removed: Dividends of 40.5 cents and 38.5 cents per share were paid in the first quarters of fiscal 2025 and 2024, respectively.
−Removed: Accumulated other comprehensive income (loss)
+Added: Dividends of 40.5 cents per share were paid in the first and second quarters of fiscal 2025 and 38.5 cents per share were paid in the first two quarters of fiscal 2024.
+Added: Accumulated other comprehensive loss
Components of other comprehensive income (loss) recorded in the Statements of Condensed Consolidated Comprehensive Income (Loss) are presented below, before tax and net of tax effects.
(In millions)
−Removed: Three months ended December 31
+Added: Tax benefit (expense)
+Added: Three months ended March 31
Other comprehensive income (loss)
2 unchanged sentences
Total other comprehensive income (loss)
+Added: Six months ended March 31
+Added: Other comprehensive income (loss)
+Added: Unrealized translation gain (loss)
+Added: Unrealized gain (loss) on commodity hedges
+Added: Total other comprehensive income (loss)
Summary of stockholders’ equity
1 unchanged sentence
Three months ended
+Added: Six months ended
(In millions, except per share data)
17 unchanged sentences
Cash dividends declared per common share
−Removed: (a) Common stock issued were 75,408 and 78,349 for the three months ended December 31, 2024 and 2023 , respectively.
−Removed: Includes $ 3 million for both the three months ended December 31, 2024 and 2023 associated with stock-based compensation employee withholding taxes.
−Removed: (b) Common stock repurchased were 1,238,212 for the three months ended December 31, 2023 .
−Removed: (c) Includes $ 1 million in excise tax on common stock repurchases for the three months ended December 31, 2023 .
−Removed: Ashland paid a total of $ 100 million for the three months ended December 31, 2023 for common stock repurchases.
+Added: (a) Common stock issued were 52,993 and 32,458 for the three months ended March 31, 2025 and 2024 , respectively, and 128,401 and 110,807 for the six months ended March 31, 2025 and 2024 , respectively.
+Added: Includes zero and $ 1 million for the three months ended March 31, 2025 and 2024 , respectively, and $ 3 million and $ 4 million for the six months ended March 31, 2025 and 2024 , respectively, associated with stock-based compensation employee withholding taxes.
+Added: (b) Common stock repurchased were 1,541,320 for the three and six months ended March 31, 2025 , and zero and 1,238,212 for the three and six months ended March 31, 2024 .
+Added: (c) Includes $ 1 million in excise tax on common stock repurchases for both the three and six months ended March 31, 2025 , and zero and $ 1 million for the three and six months ended March 31, 2024 , respectively.
+Added: Ashland paid a total of $ 100 million for the three and six months ended March 31, 2025 and zero and $ 100 million for the three and six months ended March 31, 2024 , respectively, for common stock repurchases.
NOTE O – STOCK INCENTIVE PLANS
1 unchanged sentence
Three months ended
+Added: Six months ended
(In millions)
1 unchanged sentence
Performance share awards
−Removed: (a) Included $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three months ended December 31, 2024 , and $ 1 million income related to cash-settled performance units during the three months ended December 31, 2024 .
−Removed: (b) Included less than $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three months ended December 31, 2023, and $ 1 million of income related to cash-settled performance units during the three months ended December 31, 2023 .
+Added: (a) Included zero and $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three and six months ended March 31, 2025 , and zero and income of $ 1 million related to cash-settled performance units during the three and six months ended March 31, 2025 .
+Added: (b) Included zero and $ 1 million of expense related to cash-settled nonvested restricted stock awards during the three and six months ended March 31, 2024, and $ 1 million of expense and zero related to cash-settled performance units during the three and six months ended March 31, 2024 .
NOTE P – REVENUE
7 unchanged sentences
Three months ended
+Added: Six months ended
(In millions)
3 unchanged sentences
Three months ended
+Added: Six months ended
(In millions)
3 unchanged sentences
Three months ended
+Added: Six months ended
(In millions)
3 unchanged sentences
Three months ended
+Added: Six months ended
(In millions)
2 unchanged sentences
Latin America & other
−Removed: For the three months ending December 31, 2024 , Ashland had two product categories that represented 10 % or greater of Ashland's total consolidated sales which were cellulosics representing 38 % of total consolidated sales and polyvinylpyrrolidones (PVP) representing 25 % of total consolidated sales.
+Added: For the six months ended March 31, 2025 , Ashland had two product categories that represented 10 % or greater of Ashland's total consolidated sales which were cellulosics representing 39 % of total consolidated sales and polyvinylpyrrolidones (PVP) representing 24 % of total consolidated sales.
Trade receivables
Trade receivables are defined as receivables arising from contracts with customers and are recorded within the accounts receivable, net caption within the Condensed Consolidated Balance Sheets.
−Removed: Ashland’s trade receivables were $ 128 million and $ 206 million as of December 31, 2024 and September 30, 2024 , respectively.
+Added: Ashland’s trade receivables were $ 189 million and $ 206 million as of March 31, 2025 and September 30, 2024 , respectively.
See Note H of the Notes to the Condensed Consolidated Financial Statements for additional information on Ashland’s programs to sell certain accounts receivables on a revolving basis to third party banks up to an aggregate purchase limit (U.S and Foreign Accounts Receivable Sales Programs).
1 unchanged sentence
Ashland determines its reportable segments based on how operations are managed internally for the products and services sold to customers, including how the results are reviewed by the chief operating decision maker, which includes determining resource allocation methodologies used for reportable segments.
−Removed: Operating income (loss) and EBITDA (EBITDA is defined as net income (loss), plus income tax benefit, net interest and other expense (income), and depreciation and amortization) are the primary measures of performance that are reviewed by the chief operating decision maker in assessing each reportable segment's financial performance.
−Removed: Ashland does not aggregate reportable segments to arrive at these reportable segments.
+Added: Operating income (loss) and EBITDA (EBITDA is defined as net income (loss), plus income tax expense (benefit), net interest and other expense (income), and depreciation and amortization) are the primary measures of performance that are reviewed by the chief operating decision maker in assessing each reportable segment's financial performance.
+Added: Ashland does not aggregate segments to arrive at these reportable segments.
Reportable segment business descriptions
8 unchanged sentences
Customers include formulators at large multinational branded consumer products companies and smaller, independent boutique companies.
+Added: The Avoca business was sold in March 2025.
Specialty Additives is comprised of rheology and performance-enhancing additives serving the architectural coatings, construction, energy, automotive and various industrial markets.
13 unchanged sentences
The service cost component of pension and other postretirement benefits costs is allocated to each reportable segment on a ratable basis;
−Removed: while the remaining components of pension and other postretirement benefits costs are recorded within the other net periodic benefit loss caption of the Statement of Condensed Consolidated Comprehensive Income (loss).
+Added: while the remaining components of pension and other postretirement benefits costs are recorded within the other net periodic benefit loss caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).
Ashland refines its expense allocation methodologies to the reportable segments from time to time as internal accounting practices are improved, more refined information becomes available and the industry or market changes.
2 unchanged sentences
Three months ended
+Added: Six months ended
(In millions - unaudited)
11 unchanged sentences
DEPRECIATION EXPENSE
−Removed: Life Sciences
+Added: Life Sciences (c)
Personal Care
−Removed: Specialty Additives (c)
+Added: Specialty Additives (d)
Intermediates
17 unchanged sentences
All other intersegment sales are accounted for at cost.
−Removed: (b) Includes a $ 183 million impairment charge related to the Avoca business within the loss on acquisitions and divestitures, net for the three months ended December 31, 2024 .
−Removed: (c) Depreciation includes accelerated depreciation of $ 21 million for Specialty Additives for the three months ended December 31, 2023 .
−Removed: (d) Excludes income (loss) from discontinued operations and other net periodic benefit loss.
+Added: (b) Includes a $ 8 million gain on sale for the three and six months ended March 31, 2025 and a $ 183 million impairment charge for the six months ended March 31, 2025 , both related to the sale of the Avoca business within income (loss) on acquisitions and divestitures, net caption of the Statements of Condensed Consolidated Income (Loss).
+Added: (c) Depreciation includes accelerated depreciation of $ 13 million for Life Sciences for the three and six months ended March 31, 2025 .
+Added: (d) Depreciation includes accelerated depreciation of $ 27 million and $ 49 million for Specialty Additives for the three and six months ended March 31, 2024 , respectively.
+Added: (e) Excludes income (loss) from discontinued operations and other net periodic benefit loss.
See the Statements of Condensed Consolidated Comprehensive Income (Loss) for applicable amounts excluded.
11 unchanged sentences
severe weather, natural disasters, public health crises, cyber events and legal proceedings and claims (including product recalls, environmental and asbestos matters);
+Added: the effect of announced or future tariff increases;
the ongoing Ukraine/Russia and Israel/Hamas conflict on the geographies in which Ashland operates, the end markets Ashland serves and on Ashland’s supply chain and customers;
5 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.