NOTE K - EMPLOYEE BENEFIT PLANS

Restructuring and plan remeasurement

In June 2026, Ashland completed a buy-out transaction for certain retirees participating in two of its U.S. defined benefit pension plans. Under the buy-out transaction, the pension plans purchased group annuity contracts from an insurance company, which assumed responsibility for future benefit payments to the

affected retirees. As a result, Ashland was relieved of the related pension obligations and derecognized the associated projected benefit obligations and related plan assets from its Condensed Consolidated Balance Sheet. The affected pension plans continue to operate following the transaction, with remaining active, deferred vested and retiree participants. The buy-in transaction triggered a remeasurement of the affected pension plans immediately prior to settlement. Based on the remeasurement and settlement accounting, Ashland recognized a settlement gain of $2 million within the other net periodic benefit (income) loss caption of the Statements of Condensed Consolidated Comprehensive Income (Loss) for the three and nine months ended June 30, 2026. As of June 30, 2026, Ashland transferred approximately $30 million of projected benefit obligations and $28 million of related plan assets associated with the affected retirees to the insurance company. The remaining projected benefit obligations and related plan assets of the two pension plans continue to be reflected in Ashland's Condensed Consolidated Balance Sheet.

During the first quarter of fiscal 2025, as part of its fiscal 2024 restructuring activities, Ashland terminated approximately 40 employees in its Doel, Belgium facility. The postretirement benefits for these employees, all of whom participated in a non-contributory defined benefit plan in Belgium, were frozen. This resulted in a decrease in total expected future years of service within the plan and required Ashland to remeasure the plan during the nine months ended June 30, 2025. As a result, Ashland recorded a $1 million curtailment loss within the other net periodic benefit (income) loss caption of the Statement of Condensed Consolidated Comprehensive Income (Loss) for the nine months ended June 30, 2025.

Plan contributions

For the nine months ended June 30, 2026, Ashland contributed $5 million to its U.S. pension plans and $5 million to its non-U.S. pension plans. Ashland expects to make additional contributions of $1 million to its U.S. pension plans and $1 million to its non-U.S. pension plans during the remainder of fiscal 2026.

Components of net periodic benefit costs

For segment reporting purposes, service cost is proportionately allocated to each segment, excluding Unallocated and other, and is recorded within the selling, general and administrative expense and cost of

sales captions on the Statements of Condensed Consolidated Comprehensive Income (Loss). All other components are recorded within the other net periodic benefit (income) loss caption on the Statements of Condensed Consolidated Comprehensive Income (Loss), which netted to income of $5 million and $3 million for the three and nine months ended June 30, 2026, respectively, and expense of $1 million and $4 million for the three and nine months ended June 30, 2025, respectively.