Equity Items (Tables)

9 Months Ended

Jun. 30, 2019

Components of Accumulated Other Comprehensive Income (Loss)

Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented below, before tax and net of tax effects.

	2019								2018
(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)	$	3		$	—	$	3		$	(140	)	$	—		$	(140	)
Pension and postretirement obligation adjustment:
Adjustment of unrecognized prior service costs		—			—		—			—			—			—
Net change in investment securities:
Unrealized gains during periods (a)		—			—		—			4			(2	)		2
Reclassification adjustment for gains
included in net income		—			—		—			—			—			—
Total other comprehensive income (loss)	$	3		$	—	$	3		$	(136	)	$	(2	)	$	(138	)

Nine months ended June 30
Other comprehensive income (loss)
Unrealized translation gain (loss)	$	(37	)	$	—	$	(37	)	$	(82	)	$	—		$	(82	)
Pension and postretirement obligation adjustment:
Adjustment of unrecognized prior service costs		(7	)		1		(6	)		—			—			—
Net change in investment securities:
Unrealized gains during periods (a)		—			—		—			10			(3	)		7
Reclassification adjustment for gains
included in net income		—			—		—			(4	)		1			(3	)
Total other comprehensive income (loss)	$	(44	)	$	1	$	(43	)	$	(76	)	$	(2	)	$	(78	)

(a)

Due to the adoption of new accounting guidance in fiscal 2019, unrealized gains and losses on Ashland’s equity securities are now recognized in net income rather than AOCI. See Notes A and E for more information.

Summary of Reconciliation of Changes in Stockholders' Equity

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

	Three months ended						Nine months ended
	June 30						June 30
(In millions)	2019			2018			2019			2018
Common stock and paid in capital
Balance, beginning of period	$	953		$	936		$	947		$	932
Common shares issued under stock incentive and other plans (a)		2			7			8			11
Common shares purchased under repurchase program (b)		(200	)		—			(200	)		—
Balance, end of period		755			943			755			943
Retained earnings
Balance, beginning of period		2,780			2,736			2,750			2,696
Adoption of new accounting pronouncements (c)		—			—			34			—
Net income (loss)		66			36			94			104
Regular dividends		(16	)		(16	)		(48	)		(44	)
Balance, end of period		2,830			2,756			2,830			2,756
Accumulated other comprehensive income (loss)
Balance, beginning of period		(371	)		(162	)		(291	)		(222	)
Adoption of new accounting pronouncements (c)		—			—			(34	)		—
Unrealized translation gain (loss)		3			(140	)		(37	)		(82	)
Pension and postretirement obligation adjustment		—			—			(6	)		—
Net change in investment securities		—			2			—			4
Balance, end of period		(368	)		(300	)		(368	)		(300	)
Total stockholders' equity	$	3,217		$	3,399		$	3,217		$	3,399
Cash dividends declared per common share	$	0.275		$	0.25		$	0.775		$	0.70

(a)

Common shares issued were 46,725 and 42,958 for the three months ended June 30, 2019 and 2018 and 281,077 and 308,779 for the nine months ended June 30, 2019 and 2018.

(b)

Common shares repurchased were 2,236,546 in the three and nine months ended June 30, 2019.

(c)

Represents the cumulative-effect adjustment related to the adoption of the new guidance related to the accounting for equity securities and tax effects of intercompany transfers during fiscal 2019. See Note A for more information.