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Fair Value Measurements (Tables)
 6 Months Ended
Mar. 31, 2026
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]  
Summary of Financial Instruments Subject to Recurring Fair Value Measurements

The following table summarizes financial instruments subject to recurring fair value measurements as of March 31, 2026:

 

(In millions)

 

Carrying value

 

 

Total
fair value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

343

 

 

$

343

 

 

$

343

 

 

$

—

 

 

$

—

 

Restricted investments(a)(b)

 

 

326

 

 

 

326

 

 

 

326

 

 

 

—

 

 

 

—

 

Investment of captive insurance company(c)

 

 

7

 

 

 

7

 

 

 

7

 

 

 

—

 

 

 

—

 

Commodity derivatives(d)

 

 

1

 

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

Total assets at fair value

 

$

677

 

 

$

677

 

 

$

676

 

 

$

1

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivatives(e)

 

$

2

 

 

$

2

 

 

$

—

 

 

$

2

 

 

$

—

 

Commodity derivatives(e)

 

 

1

 

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

Total liabilities at fair value

 

$

3

 

 

$

3

 

 

$

—

 

 

$

3

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
Includes $276 million within restricted investments and $50 million within other current assets in the Condensed Consolidated Balance Sheet.
(b)
Includes $213 million related to the Asbestos trust and $113 million related to the Environmental trust.
(c)
Included in other noncurrent assets in the Condensed Consolidated Balance Sheet.
(d)
Included in accounts receivable, net in the Condensed Consolidated Balance Sheet.
(e)
Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet.

The following table summarizes financial instruments subject to recurring fair value measurements as of September 30, 2025:

 

(In millions)

 

Carrying value

 

 

Total
fair value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

215

 

 

$

215

 

 

$

215

 

 

$

—

 

 

$

—

 

Restricted investments(a)(b)

 

 

347

 

 

 

347

 

 

 

347

 

 

 

—

 

 

 

—

 

Investment of captive insurance company(c)

 

 

5

 

 

 

5

 

 

 

5

 

 

 

—

 

 

 

—

 

Commodity derivatives(d)

 

 

1

 

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

Total assets at fair value

 

$

568

 

 

$

568

 

 

$

567

 

 

$

1

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivatives(e)

 

$

1

 

 

$

1

 

 

$

—

 

 

$

1

 

 

$

—

 

Commodity derivatives(e)

 

 

1

 

 

 

1

 

 

 

—

 

 

 

1

 

 

 

—

 

Total liabilities at fair value

 

$

2

 

 

$

2

 

 

$

—

 

 

$

2

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
Includes $297 million within restricted investments and $50 million within other current assets in the Condensed Consolidated Balance Sheet.
(b)
Includes $231 million related to the Asbestos trust and $116 million related to the Environmental trust.
(c)
Included in other noncurrent assets in the Condensed Consolidated Balance Sheet.
(d)
Included in accounts receivable, net in the Condensed Consolidated Balance Sheet.
(e)
Included in accrued expenses and other liabilities in the Condensed Consolidated Balance Sheet.
Summary of Restricted Investment Portfolio

The following table presents gross unrealized gains and losses for the restricted investments as of:

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

(In millions)

 

Adjusted Cost

 

 

Unrealized Gain

 

 

Unrealized Loss

 

 

Fair Value

 

March 31, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposit

 

$

3

 

 

$

—

 

 

$

—

 

 

$

3

 

Equity mutual fund

 

 

94

 

 

 

60

 

 

 

—

 

 

 

154

 

Fixed income mutual fund

 

 

202

 

 

 

—

 

 

 

(33

)

 

 

169

 

Fair value

 

$

299

 

 

$

60

 

 

$

(33

)

 

$

326

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposit

 

$

3

 

 

$

—

 

 

$

—

 

 

$

3

 

Equity mutual fund

 

 

103

 

 

 

67

 

 

 

—

 

 

 

170

 

Fixed income mutual fund

 

 

205

 

 

 

—

 

 

 

(31

)

 

 

174

 

Fair value

 

$

311

 

 

$

67

 

 

$

(31

)

 

$

347

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Summary of Investment Income, Net Gains and Losses, Funds restricted for Specific Transactions and Disbursements Related to Investments

The following table presents the investment income, net gains and losses realized, funds restricted for specific transactions, and disbursements related to restricted investments:

 

 

Three months ended

 

 

Six months ended

 

 

 

March 31

 

 

March 31

 

(In millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Investment income(a)

 

$

2

 

 

$

3

 

 

$

8

 

 

$

8

 

Net gains (losses)(a)

 

 

(5

)

 

 

3

 

 

 

(3

)

 

 

(14

)

Funds restricted for specific transactions

 

 

—

 

 

 

8

 

 

 

7

 

 

 

8

 

Disbursements

 

 

(18

)

 

 

(19

)

 

 

(33

)

 

 

(25

)

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
Included in the net interest and other expense caption within the Statements of Condensed Consolidated Comprehensive Income (Loss).
Summary of Net Gains (Losses) on Foreign Currency Derivatives The following table summarizes the gains (losses) recognized within the Statements of Condensed Consolidated Comprehensive Income (Loss):

 

 

Three months ended

 

 

Six months ended

 

 

 

March 31

 

 

March 31

 

(In millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Foreign currency derivative gains (losses)

 

$

(3

)

 

$

12

 

 

$

(2

)

 

$

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 
Summary of Fair Values of Outstanding Foreign Currency Derivatives

The following table summarizes the fair values of the outstanding foreign currency derivatives included in accounts receivable, net and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets as of:

 

 

 

March 31

 

 

September 30

 

(In millions)

 

2026

 

 

2025

 

Foreign currency derivative assets(a)

 

$

—

 

 

$

—

 

Notional contract values

 

 

26

 

 

 

44

 

 

 

 

 

 

Foreign currency derivative liabilities

 

$

2

 

 

$

1

 

Notional contract values

 

 

171

 

 

 

128

 

 

 

 

 

 

 

 
(a)
Zero denotes less than $1 million of activity.
Commodity Derivatives [Member]  
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]  
Summary of Net Gains (Losses) on Derivatives

The following table summarizes the net gains (losses) recognized within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss):

 

 

Three months ended

 

 

Six months ended

 

 

 

March 31

 

 

March 31

 

(In millions)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Commodity derivative gains (losses)

 

$

1

 

 

$

—

 

 

$

1

 

 

$

(1

)

 

 

 

 

 

 

 

 

 

 

 

 

 
Summary of Fair Values of Outstanding Derivatives

The following table summarizes the fair values of the outstanding natural gas derivatives included in accounts receivable, net and accrued expenses and other liabilities of the Condensed Consolidated Balance Sheets as of:

 

 

March 31

 

 

September 30

 

(In millions)

 

2026

 

 

2025

 

Commodity derivative assets

 

$

1

 

 

$

1

 

Notional contract values

 

 

2

 

 

 

6

 

 

 

 

 

 

Commodity derivative liabilities

 

$

1

 

 

$

1

 

Notional contract values

 

 

9

 

 

 

7

 

 

 

 

 

 

 

 

Other commodity derivatives

During the three months ended March 31, 2026, Ashland entered into a series of forward contracts to manage its exposure to the market volatility of butane consumed by its U.S. plants during the manufacturing process. These derivative instruments qualify as a hedge of future cash flows, are recognized as either assets or liabilities on the Condensed Consolidated Balance Sheets and are measured at fair value. Gains and losses related to an instrument that qualifies for hedge accounting are either recognized in the Statements of Condensed Consolidated Comprehensive Income (Loss) immediately to offset the gain or loss on the hedged item, or deferred and recorded in the stockholders’ equity section of the Condensed Consolidated Balance Sheets as a component of accumulated other comprehensive loss and subsequently recognized in the Statements of Condensed Consolidated Comprehensive Income (Loss) when the hedged item affects net income (loss). Cash flows from derivative financial instruments designated as cash flow hedges are classified as cash flows from operating activities in the Condensed Consolidated Statements of Cash Flows for the relevant period. These contracts did not have a material impact on Ashland’s Condensed Consolidated Financial Statements during the three and six months ended March 31, 2026.