Ashland periodically implements restructuring programs related to acquisitions, divestitures and other cost reduction programs in order to enhance profitability through streamlined operations and an improved overall cost structure.

During fiscal 2025, Ashland initiated a restructuring plan to offset the impact from the Nutraceuticals business sale completed in fiscal 2024 and other portfolio optimization actions. As a part of this program, Ashland is also advancing a multi-year manufacturing optimization restructuring plan to improve operational cost and strengthen its competitive position.

During the three and nine months ended June 30, 2025, Ashland incurred $27 million and $40 million, respectively, of accelerated depreciation for product line optimization activities associated with manufacturing facilities within the Life Sciences, Personal Care and Specialty Additives reportable segments, which was recorded within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).

During fiscal 2023, Ashland implemented targeted organizational restructuring actions to reduce costs. This program continued into fiscal 2024. During the three and nine months ended June 30, 2024, Ashland incurred $7 million and $55 million, respectively, of accelerated depreciation for product line optimization activities associated with two Specialty Additives manufacturing facilities, which was recorded within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).

During both the three and nine months ended June 30, 2024, Ashland incurred $1 million, of accelerated depreciation for product line optimization activities associated with a Personal Care manufacturing facility, which was recorded within the cost of sales caption of the Statements of Consolidated Comprehensive Income (Loss).

The following tables detail the amount of restructuring severance expense related to these programs.


	Three months ended June 30, 2025					Three months ended June 30, 2024
(In millions)	Severance expense(a)		Utilization (cash paid)			Severance expense(a)		Utilization (cash paid)
2025 Restructuring program	$	4	$	(2	)	$	—	$	—
2023 Restructuring program		—		(2	)		3		(3	)
Total	$	4	$	(4	)	$	3	$	(3	)

(a)

Severance expense is recorded within the selling, general and administrative expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three months ended June 30, 2025 and 2024.


	Nine months ended June 30, 2025						Nine months ended June 30, 2024
(In millions)	Severance expense (income)(a)			Utilization (cash paid)			Severance expense(a)		Utilization (cash paid)
2025 Restructuring program	$	15		$	(7	)	$	—	$	—
2023 Restructuring program		(2	)		(11	)		23		(7	)
Total	$	13		$	(18	)	$	23	$	(7	)

(a)

The following table details at June 30, 2025, the amount of restructuring severance liabilities related to these programs.


(In millions)	2025 Restructuring Program			2023 Restructuring Program
Balance at September 30, 2024(a)	$	—		$	18
Restructuring reserve		15			(2	)
Utilization (cash paid)		(7	)		(11	)
Balance at June 30, 2025(a)	$	8		$	5

(a)

The restructuring severance liability associated with these programs is recorded within accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets at June 30, 2025 and September 30, 2024.