v3.26.1
Litigation, Claims and Contingencies (Tables)
 9 Months Ended
Jun. 30, 2026
Loss Contingencies [Line Items]  
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)

 

2026

 

 

2025

 

Environmental remediation reserves - beginning of year(a)

 

$

226

 

 

$

221

 

Disbursements

 

 

(28

)

 

 

(29

)

Revised obligation estimates and accretion

 

 

33

 

 

 

50

 

Environmental remediation reserves - end of period(a)

 

$

231

 

 

$

242

 

 

 

 

 

 

 

 
(a)
Includes $184 million and $179 million within other noncurrent liabilities within the Condensed Consolidated Balance Sheets at June 30, 2026 and September 30, 2025, respectively. The remaining reserves were classified in accrued expenses and other liabilities within the Condensed Consolidated Balance Sheets.
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)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Environmental expense

 

$

21

 

 

$

46

 

 

$

32

 

 

$

49

 

Accretion

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

Legal expense

 

 

1

 

 

 

—

 

 

 

2

 

 

 

1

 

Total expense

 

 

23

 

 

 

47

 

 

 

35

 

 

 

51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance receivable

 

 

(2

)

 

 

(3

)

 

 

(3

)

 

 

(4

)

Total expense, net of receivable activity

 

$

21

 

 

$

44

 

 

$

32

 

 

$

47

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
Net expense of $4 million for both the three and nine months ended June 30, 2026 and $14 million for both the three and nine months ended June 30, 2025, 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)

 

2026

 

 

2025

 

 

2025

 

 

2024

 

 

2023

 

Open claims - beginning of year

 

 

40

 

 

 

41

 

 

 

41

 

 

 

42

 

 

 

44

 

New claims filed

 

 

2

 

 

 

1

 

 

 

2

 

 

 

2

 

 

 

2

 

Claims settled

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

(1

)

Claims dismissed

 

 

(2

)

 

 

(2

)

 

 

(3

)

 

 

(2

)

 

 

(3

)

Open claims - end of period

 

 

40

 

 

 

40

 

 

 

40

 

 

 

41

 

 

 

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Progression of Activity in Asbestos Litigation Reserves Accounts

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

 

 

Nine months ended

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

 

Years ended September 30

 

(In millions)

 

2026

 

 

2025

 

 

2025

 

 

2024

 

 

2023

 

Asbestos litigation reserves - beginning of year

 

$

258

 

 

$

274

 

 

$

274

 

 

$

281

 

 

$

305

 

Reserve adjustment

 

 

31

 

 

 

16

 

 

 

16

 

 

 

24

 

 

 

9

 

Amounts paid

 

 

(27

)

 

 

(25

)

 

 

(32

)

 

 

(31

)

 

 

(33

)

Asbestos litigation reserves - end of period(a)

 

$

262

 

 

$

265

 

 

$

258

 

 

$

274

 

 

$

281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
Includes $29 million classified in accrued expenses and other liabilities within the Condensed Consolidated Balance Sheets as of both June 30, 2026 and September 30, 2025.
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)

 

2026

 

 

2025

 

 

2025

 

 

2024

 

 

2023

 

Insurance receivable - beginning of year

 

$

95

 

 

$

97

 

 

$

97

 

 

$

95

 

 

$

101

 

Receivable adjustment

 

 

15

 

 

 

5

 

 

 

5

 

 

 

11

 

 

 

3

 

Amounts collected

 

 

(7

)

 

 

(6

)

 

 

(7

)

 

 

(9

)

 

 

(9

)

Insurance receivable - end of period(a)(b)

 

$

103

 

 

$

96

 

 

$

95

 

 

$

97

 

 

$

95

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
The allowance for credit losses was $1 million at both June 30, 2026 and September 30, 2025.
(b)
Includes $10 million classified in accounts receivable, net within the Condensed Consolidated Balance Sheets at both June 30, 2026 and September 30, 2025.
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)

 

2026

 

 

2025

 

 

2025

 

 

2024

 

 

2023

 

Open claims - beginning of year

 

 

11

 

 

 

12

 

 

 

12

 

 

 

11

 

 

 

12

 

New claims filed

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

Claims dismissed

 

 

(1

)

 

 

(1

)

 

 

(2

)

 

 

—

 

 

 

(2

)

Open claims - end of period

 

 

11

 

 

 

12

 

 

 

11

 

 

 

12

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Progression of Activity in Asbestos Litigation Reserves Accounts

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

 

 

Nine months ended

 

 

 

 

 

 

 

 

 

 

 

 

June 30

 

 

Years ended September 30

 

(In millions)

 

2026

 

 

2025

 

 

2025

 

 

2024

 

 

2023

 

Asbestos litigation reserves - beginning of year

 

$

177

 

 

$

185

 

 

$

185

 

 

$

191

 

 

$

213

 

Reserve adjustments

 

 

17

 

 

 

10

 

 

 

10

 

 

 

14

 

 

 

(2

)

Amounts paid

 

 

(11

)

 

 

(10

)

 

 

(18

)

 

 

(20

)

 

 

(20

)

Asbestos litigation reserves - end of period(a)

 

$

183

 

 

$

185

 

 

$

177

 

 

$

185

 

 

$

191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
Includes $17 million classified in accrued expenses and other liabilities within the Condensed Consolidated Balance Sheets at both June 30, 2026 and September 30, 2025.
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)

 

2026

 

 

2025

 

 

2025

 

 

2024

 

 

2023

 

Insurance receivable - beginning of year

 

$

48

 

 

$

50

 

 

$

50

 

 

$

47

 

 

$

52

 

Receivable adjustment

 

 

7

 

 

 

4

 

 

 

4

 

 

 

6

 

 

 

(3

)

Amounts collected

 

 

(2

)

 

 

(5

)

 

 

(6

)

 

 

(3

)

 

 

(2

)

Insurance receivable - end of period(a)(b)

 

$

53

 

 

$

49

 

 

$

48

 

 

$

50

 

 

$

47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(a)
The allowance for credit losses was $1 million at both June 30, 2026 and September 30, 2025.
(b)
Includes $7 million and $6 million classified in accounts receivable, net on the Condensed Consolidated Balance Sheets at June 30, 2026 and September 30, 2025, respectively.