Litigation, Claims and Contingencies (Tables)

9 Months Ended

Jun. 30, 2025

Reconciliation of Changes in Environmental Contingencies and Asset Retirement Obligations Reserve

The following table provides a reconciliation of the changes in the environmental remediation reserves:


	Nine months ended
	June 30
(In millions)	2025			2024
Reserve - beginning of period	$	221		$	214
Disbursements		(29	)		(34	)
Revised obligation estimates and accretion		50			51
Reserve - end of period	$	242		$	231

Components of Environmental Remediation Expense

Components of environmental remediation expense included within the selling, general and administrative expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) are presented in the following table:


	Three months ended						Nine months ended
	June 30						June 30
(In millions)	2025			2024			2025			2024
Environmental expense	$	46		$	43		$	49		$	50
Accretion		1			1			1			1
Legal expense		—			—			1			2
Total expense		47			44			51			53

Insurance receivable		(3	)		(1	)		(4	)		(2	)
Total expense, net of receivable activity(a)	$	44		$	43		$	47		$	51

(a)

Net expense of $14 million for the three and nine months ended June 30, 2025 and $8 million and $10 million for the three and nine months ended June 30, 2024, respectively, relates to divested businesses which qualified for treatment as discontinued operations for which certain environmental liabilities were retained by Ashland. These amounts are classified within the loss from discontinued operations, net of income taxes caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).

Ashland [Member]

Loss Contingencies [Line Items]

Summary of Asbestos Claims Activity

A summary of Ashland asbestos claims activity, excluding Hercules claims, is as follows:


	Nine months ended
	June 30						Years ended September 30
(In thousands)	2025			2024			2024			2023			2022
Open claims - beginning of year		41			42			42			44			46
New claims filed		1			1			2			2			2
Claims settled		—			—			(1	)		(1	)		(1	)
Claims dismissed		(2	)		(1	)		(2	)		(3	)		(3	)
Open claims - end of period		40			42			41			42			44

Progression of Activity in Asbestos Reserve Accounts

A progression of activity in the asbestos reserve is presented in the following table.


	Nine months ended
	June 30						Years ended September 30
(In millions)	2025			2024			2024			2023			2022
Asbestos reserve - beginning of year	$	274		$	281		$	281		$	305		$	320
Reserve adjustment		16			24			24			9			16
Amounts paid		(25	)		(23	)		(31	)		(33	)		(31	)
Asbestos reserve - end of period(a)	$	265		$	282		$	274		$	281		$	305

(a)

Includes $29 million and $28 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets as of June 30, 2025 and September 30, 2024, respectively.

Progression of Insurance Receivable

A progression of activity in the Ashland insurance receivable is presented in the following table.


	Nine months ended
	June 30						Years ended September 30
(In millions)	2025			2024			2024			2023			2022
Insurance receivable - beginning of year	$	97		$	95		$	95		$	101		$	100
Receivable adjustment		5			11			11			3			7
Amounts collected		(6	)		(6	)		(9	)		(9	)		(6	)
Insurance receivable - end of period(a)(b)	$	96		$	100		$	97		$	95		$	101

(a)

The total allowance for credit losses was $1 million at June 30, 2025 and September 30, 2024.

(b)

Includes $10 million and $9 million classified in accounts receivable, net on the Condensed Consolidated Balance Sheets at June 30, 2025 and September 30, 2024, respectively.

Hercules [Member]

Loss Contingencies [Line Items]

Summary of Asbestos Claims Activity

A summary of Hercules’ asbestos claims activity follows:


	Nine months ended
	June 30						Years ended September 30
(In thousands)	2025			2024			2024			2023		2022
Open claims - beginning of year		12			12			12			11		12
New claims filed		1			1			1			1		1
Claims dismissed		(1	)		(1	)		(1	)		—		(2	)
Open claims - end of period		12			12			12			12		11

Progression of Activity in Asbestos Reserve Accounts

A progression of activity in the asbestos reserve is presented in the following table.


	Nine months ended
	June 30						Years ended September 30
(In millions)	2025			2024			2024			2023			2022
Asbestos reserve - beginning of year	$	185		$	191		$	191		$	213		$	217
Reserve adjustments		10			14			14			(2	)		15
Amounts paid		(10	)		(15	)		(20	)		(20	)		(19	)
Asbestos reserve - end of period(a)	$	185		$	190		$	185		$	191		$	213

(a)

Includes $17 million classified in accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets at both June 30, 2025 and September 30, 2024.

Progression of Insurance Receivable

A progression of activity in the Hercules insurance receivable is presented in the following table.


	Nine months ended
	June 30						Years ended September 30
(In millions)	2025			2024			2024			2023			2022
Insurance receivable - beginning of year	$	50		$	47		$	47		$	52		$	47
Receivable adjustment		4			6			6			(3	)		7
Amounts collected		(5	)		(2	)		(3	)		(2	)		(2	)
Insurance receivable - end of period(a)(b)	$	49		$	51		$	50		$	47		$	52

(a)

The total allowance for credit losses was $1 million at June 30, 2025 and September 30, 2024.

(b)

Includes $6 million classified in accounts receivable, net on the Condensed Consolidated Balance Sheets at both June 30, 2025 and September 30, 2024.

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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