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Equity Items
 6 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Equity Items

NOTE N – EQUITY ITEMS

Stock repurchase program agreements

In September 2021, under the 2018 stock repurchase program, Ashland entered into an accelerated share repurchase agreement (2021 ASR Agreement). Under the 2021 ASR Agreement, Ashland paid an initial purchase price of $450 million and received an initial delivery of 3.9 million shares of common stock during September 2021. The bank exercised its early termination option under the 2021 ASR Agreement in February 2022, and an additional 0.7 million shares were repurchased, bringing the total shares repurchased upon settlement to 4.6 million.

On March 1, 2022, under its current stock repurchase program, Ashland entered into an agreement to repurchase an aggregate amount of $200 million of Ashland common stock using open-market purchases under rule 10b-18. Under the terms of the agreement, the bank will purchase a number of shares of Ashland common stock for a pre-determined amount on various trading days dependent upon Ashland's prevailing stock price on that date. The term of the agreement is through September 1, 2022. As of March 31, 2022, Ashland paid $155 million and received 1.7 million shares of common stock under the agreement. On April 8, 2022, Ashland completed repurchases under this agreement repurchasing a total of 2.15 million shares.

Stockholder dividends

Dividends of 30 cents per share were paid in the first and second quarter of fiscal 2022 and 27.5 cents per share were paid in the first and second quarter of fiscal 2021.

Accumulated other comprehensive income (loss)

Components of other comprehensive income (loss) recorded in the Statements of Consolidated Comprehensive Income (Loss) are presented below.

 

 

2022

 

 

2021

 

(In millions)

 

Before
tax

 

 

Tax
(expense) benefit

 

 

Net of
tax

 

 

Before
tax

 

 

Tax
(expense) benefit

 

 

Net of
tax

 

Three months ended March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized translation gain (loss)

 

$

(5

)

 

$

—

 

 

$

(5

)

 

$

(33

)

 

$

(1

)

 

$

(34

)

Unrealized gain (loss) on commodity hedges

 

 

6

 

 

 

(1

)

 

 

5

 

 

 

—

 

 

 

—

 

 

 

—

 

Total other comprehensive income (loss)

 

$

1

 

 

$

(1

)

 

$

—

 

 

$

(33

)

 

$

(1

)

 

$

(34

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended March 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized translation gain (loss)

 

$

(22

)

 

$

1

 

 

$

(21

)

 

$

15

 

 

$

(1

)

 

$

14

 

Unrealized gain on commodity hedges

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

Total other comprehensive income (loss)

 

$

(21

)

 

$

1

 

 

$

(20

)

 

$

15

 

 

$

(1

)

 

$

14

 

 

Summary of stockholders’ equity

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

 

 

Three months ended

 

 

Six months ended

 

 

 

March 31

 

 

March 31

 

(In millions)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Common stock and paid in capital

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

328

 

 

$

771

 

 

$

328

 

 

$

770

 

Compensation expense and common shares issued (a)

 

 

4

 

 

 

2

 

 

 

4

 

 

 

3

 

Common shares purchased under repurchase program (b)

 

 

(155

)

 

 

—

 

 

 

(155

)

 

 

—

 

Balance, end of period

 

 

177

 

 

 

773

 

 

 

177

 

 

 

773

 

Retained earnings

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

 

2,827

 

 

 

2,686

 

 

 

2,796

 

 

 

2,649

 

Adoption of new accounting pronouncements

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

Net income

 

 

786

 

 

 

41

 

 

 

834

 

 

 

97

 

Regular dividends

 

 

(17

)

 

 

(17

)

 

 

(34

)

 

 

(34

)

Balance, end of period

 

 

3,596

 

 

 

2,710

 

 

 

3,596

 

 

 

2,710

 

Accumulated other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

 

(392

)

 

 

(335

)

 

 

(372

)

 

 

(383

)

Unrealized translation gain (loss)

 

 

(5

)

 

 

(34

)

 

 

(21

)

 

 

14

 

Unrealized gain on commodity hedges

 

 

5

 

 

 

—

 

 

 

1

 

 

 

—

 

Balance, end of period

 

 

(392

)

 

 

(369

)

 

 

(392

)

 

 

(369

)

Total stockholders' equity

 

$

3,381

 

 

$

3,114

 

 

$

3,381

 

 

$

3,114

 

Cash dividends declared per common share

 

$

0.300

 

 

$

0.275

 

 

$

0.600

 

 

$

0.550

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
Common shares issued were 13,935 shares and 41,512 shares for the three months ended March 31, 2022 and 2021, respectively, and 108,650 shares and 140,706 shares for the six months ended March 31, 2022 and 2021, respectively.
(b)
Common shares repurchased were 2,403,380 shares for the three and six months ended March 31, 2022.