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Stock Incentive Plans (Tables)

12 Months Ended

Sep. 30, 2019

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Components of Stock-Based Compensation Expense Associated With Income Tax Benefits

The components of Ashland’s pretax stock-based awards (net of forfeitures) and associated income tax benefits are as follows:

(In millions)		2019			(a)	2018			(b)	2017			(c)
SARs		$	7			$	7			$	5
Nonvested stock awards			18				24				15
Performance share awards			1				13				8
		$	26			$	44			$	28
Income tax benefit		$	6			$	14			$	11

(a) The year ended September 30, 2019 included $5 million and zero of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.

(b) The year ended September 30, 2018 included $9 million and $8 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.

(c) The year ended September 30, 2017 included $5 million and $3 million of expense related to cash-settled nonvested restricted stock awards and cash-settled performance units, respectively.

Stock Appreciation Rights (SARs) [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted-average of key assumptions used in pricing model

The following table illustrates the weighted-average of key assumptions used within the Black-Scholes option-pricing model. The risk-free interest rate assumption was based on the U.S. Treasury yield curve in effect at the time of the grant for the expected term of the instrument. The dividend yield reflects the assumption that the current dividend payout will continue with no anticipated increases. The volatility assumption was calculated by utilizing peer companies because historical volatility was not considered reflective of future volatility as a result of the Valvoline IPO discussed in Note B. The expected life is based on the mid-point of the weighted average time to vest and contractual term.

(In millions except per share data)		2019				2018				2017
Weighted-average fair value per share of SARs granted (a)		$	21.95			$	19.62			$	21.25
Assumptions (weighted-average)
Risk-free interest rate			3.0	%			2.1	%			1.8	%
Expected dividend yield			1.2	%			1.3	%			1.4	%
Expected volatility			25.9	%			31.8	%			22.8	%
Expected life (in years)			6				6				5

(a) The weighted-average fair values per share are as of the grant date and have not been adjusted for the Valvoline separation if the SARs were granted prior to the final distribution on May 12, 2017.

Stock appreciation rights award activity

A progression of activity and various other information relative to SARs and previously issued and vested stock options is presented in the following table.

		2019								2018								2017
		Number				Weighted-				Number				Weighted-				Number				Weighted-
		of				average				of				average				of				average
		common				exercise price				common				exercise price				common				exercise price
(In thousands except per share data)		shares				per share				shares				per share				shares				per share
Outstanding - beginning of year			2,263			$	53.21				2,261			$	47.98				1,511			$	83.64
Granted			299				82.34				470				67.16				422				109.15
Exercised			(380	)			46.15				(421	)			40.10				(330	)			70.55
Forfeitures and expirations			(80	)			71.38				(47	)			58.73				(70	)			105.98
Transfer to Valvoline Inc. (a)			—				—				—				—				(352	)			94.28
Conversion adjustment (b)			—				—				—				—				1,080				—
Outstanding - end of year (c)			2,102				57.94				2,263				53.21				2,261				47.98
Exercisable - end of year			1,579				53.04				1,472				47.76				1,456				42.10

(a) Represents the transfer of SARs held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution in 2017.

(b) The number and exercise prices of SARs outstanding at the time of the final Valvoline Inc. distribution in 2017 were proportionately adjusted to maintain the aggregate intrinsic value before and after the transaction.

(c) Exercise prices per share for SARs outstanding at September 30, 2019 ranged from $20.02 to $29.5 for 172 thousand shares, from $37.37 to $47.63 for 350 thousand shares, from $57.96 to $59.95 for 871 thousand shares, and from $62.33 to $82.34 for 709 thousand shares. The weighted-average remaining contractual life of outstanding SARs and stock options was 6.2 years and exercisable SARs and stock options was 5.4 years.

Nonvested Stock Awards [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Nonvested stock awards and performance shares activity

A progression of activity and various other information relative to nonvested stock awards is presented in the following table.

		2019								2018								2017
		Number				Weighted-				Number				Weighted-				Number				Weighted-
		of				average				of				average				of				average
		common				grant date				common				grant date				common				grant date
(In thousands except per share data)		shares				fair value				shares				fair value				shares				fair value
Nonvested - beginning of year			291			$	66.98				219			$	59.16				293			$	109.12
Granted			96				81.31				192				71.36				92				105.10
Vested			(151	)			66.24				(107	)			59.46				(189	)			99.69
Forfeitures			(21	)			73.63				(13	)			62.22				(24	)			104.19
Transfer to Valvoline Inc. (a)			—				—				—				—				(71	)			111.97
Conversion adjustment (b)			—				—				—				—				118				—
Nonvested - end of year			215				73.26				291				66.98				219				59.16

(a) Represents the transfer of nonvested stock awards held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution in 2017.

(b) The number and exercise prices of nonvested stock awards outstanding at the time of the final Valvoline Inc. distribution in 2017 were proportionately adjusted to maintain the aggregate intrinsic value before and after the transaction.

Performance Shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted-average of key assumptions used in pricing model

The fair values of the TSR portion of the performance share awards and TSR modifier of the performance unit awards are calculated using a Monte Carlo simulation valuation model using key assumptions included in the following table. Compensation cost is recognized over the requisite service period regardless of whether the market condition is satisfied.

		2019				2018				2017
Risk-free interest rate		2.9				1.6% - 1.8%				1.3% - 1.4%
Expected dividend yield		1.3%				1.4%				1.4%
Expected life (in years)			3				3				3
Expected volatility		24.6%				25.0%				25.1%

Nonvested stock awards and performance shares activity

The following table shows changes in nonvested performance shares/units for all plans that award Ashland Common Stock or cash.

		2019								2018								2017
						Weighted-								Weighted-								Weighted-
						average								average								average
		Shares/				grant date				Shares/				grant date				Shares/				grant date
(In thousands except per share data)		Units				fair value				Units				fair value				Units				fair value
Nonvested - beginning of year			260			$	64.55				268			$	63.00				199			$	106.91
Granted (a)			78				84.93				101				68.93				71				99.86
Vested (a)			(68	)			61.67				(104	)			65.53				(69	)			85.86
Forfeitures (b)			(10	)			65.16				(5	)			66.24				(54	)			75.52
Transfer to Valvoline Inc. (c)			—				—				—				—				(21	)			115.68
Conversion adjustment (d)			—				—				—				—				142				—
Nonvested - end of year			260				76.59				260				64.55				268				63.00

(a) 2017 includes 15 thousand additional shares from the fiscal year 2014 since a portion of the payouts for this plan was in excess of the initial 100% target.

(b) During 2017, Ashland determined that zero percent of the TSR portion of the fiscal year 2016 plan will be paid out upon vesting which resulted in the forfeiture of 35 thousand shares.

(c) Represents the transfer of performance shares from the fiscal year 2016 plans held by Valvoline Inc. employees at the time of the final Valvoline Inc. distribution in 2017.

(d) The number and exercise prices of performance shares/units outstanding at the time of the final Valvoline Inc. distribution in 2017 were proportionately adjusted to maintain the aggregate intrinsic value before and after the transaction.

Performance shares/units granted

The following table shows the performance shares/units granted for all plans that award Ashland Common Stock or cash.

Weighted-

Target

average

shares/units

fair value per

(In thousands)

Vesting period

granted

(a)

share/unit

(a)

Fiscal Year 2019

October 1, 2018 - September 30, 2021

78

$

84.93

Fiscal Year 2018

October 1, 2017 - September 30, 2020

101

$

68.93

Fiscal Year 2017

October 1, 2016 - September 30, 2019

56

$

103.72

(a) At the end of the performance period, the actual number of shares/units awarded can range from zero to 200% of the target shares/units granted, which is assumed to be 100%. Both the shares granted and weighted-average fair value per share/unit are as of the grant date and have not been adjusted for the Valvoline separation that occurred during 2017.

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Tabular disclosure of allocation of amount expensed and capitalized for award under share-based payment arrangement to statement of income or comprehensive income and statement of financial position. Includes, but is not limited to, corresponding line item in financial statement.

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