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, the Avoca business sale completed in fiscal 2025, and other portfolio optimization actions ("2025 Restructuring Program"). As a part of the 2025 Restructuring Program, Ashland is also advancing a multi-year manufacturing network optimization to improve operational cost and strengthen its competitive position. The 2025 Restructuring Program continued into fiscal 2026.

During fiscal 2023, Ashland implemented targeted organizational restructuring actions to reduce costs ("2023 Restructuring Program"). The 2023 Restructuring Program is now completed.

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


	Three months ended June 30, 2026					Three months ended June 30, 2025
(In millions)	Severance expense(a)		Utilization (cash paid)			Severance expense(a)		Utilization (cash paid)
2025 Restructuring Program	$	1	$	(2	)	$	4	$	(2	)
2023 Restructuring Program		—		—			—		(2	)
Total	$	1	$	(2	)	$	4	$	(4	)

(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, 2026 and 2025.


	Nine months ended June 30, 2026					Nine months ended June 30, 2025
(In millions)	Severance expense(a)		Utilization (cash paid)			Severance expense (income)(a)			Utilization (cash paid)
2025 Restructuring Program	$	3	$	(6	)	$	15		$	(7	)
2023 Restructuring Program		1		(2	)		(2	)		(11	)
Total	$	4	$	(8	)	$	13		$	(18	)

(a)

Severance expense (income) is recorded within the selling, general and administrative expense caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the nine months ended June 30, 2026 and 2025.

The following table details at June 30, 2026, the amount of restructuring severance liabilities related to these programs.


(In millions)	2025 Restructuring Program			2023 Restructuring Program
Balance at September 30, 2025(a)	$	5		$	1
Restructuring expense		3			1
Utilization (cash paid)		(6	)		(2	)
Balance at June 30, 2026(a)	$	2		$	—

(a)

The restructuring severance liabilities associated with these programs is recorded within accrued expenses and other liabilities in the Condensed Consolidated Balance Sheets at June 30, 2026 and September 30, 2025.

Ashland's portfolio optimization actions have included manufacturing network optimization projects associated with carboxymethylcellulose ("CMC"), industrial methylcellulose ("MC"), vinyl pyrrolidone and derivatives ("VP&D") and hydroxyethylcellulose ("HEC").

During the three and nine months ended June 30, 2026, Ashland incurred zero and $4 million of accelerated depreciation for product line optimization activities associated with a Specialty Additives manufacturing facility, which was recorded within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).

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 Life Sciences, Personal Care and Specialty Additives manufacturing facilities, which was recorded within the cost of sales caption of the Statements of Condensed Consolidated Comprehensive Income (Loss).