Equity Items

3 Months Ended

Dec. 31, 2019

NOTE N – EQUITY ITEMS

Stockholder dividends

In May 2019, the Board of Directors of Ashland announced a quarterly cash dividend of 27.5 cents per share to eligible stockholders at record, which represented an increase from previous quarterly cash dividend of 25.0 cents per share. This dividend was paid in the third and fourth quarter of fiscal 2019 and the first quarter of fiscal 2020.

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 December 31
Other comprehensive income (loss)
Unrealized translation gain (loss)	$	38	$	—	$	38	$	(31	)	$	—	$	(31	)
Pension and postretirement obligation adjustment:
Adjustment of unrecognized prior service costs		—		—		—		(7	)		1		(6	)
Total other comprehensive income (loss)	$	38	$	—	$	38	$	(38	)	$	1	$	(37	)

Summary of stockholders’ equity

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

	Three months ended
	December 31
(In millions)	2019			2018
Common stock and paid in capital
Balance, beginning of period	$	757		$	947
Common shares issued under stock incentive and other plans (a)		1			1
Balance, end of period		758			948
Retained earnings
Balance, beginning of period		3,224			2,750
Adoption of new accounting pronouncements (b)		—			33
Net income (loss)		32			(48	)
Regular dividends		(17	)		(16	)
Balance, end of period		3,239			2,719
Accumulated other comprehensive income (loss)
Balance, beginning of period		(410	)		(291	)
Adoption of new accounting pronouncements (b)		—			(34	)
Unrealized translation gain (loss)		38			(31	)
Pension and postretirement obligation adjustment		—			(6	)
Net change in investment securities		—			—
Balance, end of period		(372	)		(362	)
Total stockholders' equity	$	3,625		$	3,305
Cash dividends declared per common share		0.275			0.250

(a)

Common shares issued were 70,461 shares and 140,614 shares for the three months ended December 31, 2019 and 2018, respectively.

(b)

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.