The components of lease cost recognized within the Statements of Condensed Consolidated Comprehensive Income (Loss) are as follows:


		Three months ended				Nine months ended
		June 30				June 30
(In millions)	Location	2025		2024		2025		2024
Lease cost:
Operating lease cost	Selling, General & Administrative(a)	$	3	$	3	$	9	$	10
Operating lease cost	Cost of Sales		4		4		10		11
Variable lease cost	Selling, General & Administrative		1		1		4		4
Variable lease cost	Cost of Sales		1		1		5		4
Short-term leases	Cost of Sales		1		1		3		2
Total lease cost		$	10	$	10	$	31	$	31

(a)

Includes zero and $1 million charge for the impairment of an abandoned right of use office building asset for the three and nine months ended June 30, 2024.

Right-of-use assets exchanged for new operating lease obligations were $3 million and $1 million for the three ended June 30, 2025 and 2024, respectively, and $5 million and $4 million for the nine months ended June 30, 2025 and 2024, respectively. During the second quarter of fiscal 2024, Ashland acquired a favorable lease asset for $10 million, which was recorded in the property, plant and equipment caption of the Condensed Consolidated Balance Sheet as of June 30, 2025 and September 30, 2024.

The following table provides cash paid for amounts included in the measurement of lease liabilities:


	Three months ended				Nine months ended
	June 30				June 30
(In millions)	2025		2024		2025		2024
Operating cash flows from operating leases	$	7	$	6	$	20	$	20
Investing cash flows from finance leases		—		—		—		10