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Earnings Per Share (Tables)
 9 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Components of Basic and Diluted Earnings (Loss) Per Common Share (EPS)

The following tables summarize the components of the basic and diluted earnings (loss) per common share (“EPS”) computations:

 

 

 

Three Months Ended June 30

 

 

Nine Months Ended June 30

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(In millions, except per share amounts)

 

Basic EPS:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Cabot
   Corporation

 

$

82

 

 

$

97

 

 

$

211

 

 

$

115

 

Less: Dividends and dividend equivalents
   to participating securities

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Less: Undistributed earnings allocated to
   participating securities(1)

 

 

1

 

 

 

1

 

 

 

3

 

 

 

1

 

Earnings (loss) allocated to common
   shareholders (numerator)

 

$

81

 

 

$

96

 

 

$

207

 

 

$

113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares and
   participating securities outstanding

 

 

57.3

 

 

 

57.2

 

 

 

57.5

 

 

 

57.4

 

Less: Participating securities(1)

 

 

1.2

 

 

 

0.9

 

 

 

1.3

 

 

 

0.9

 

Adjusted weighted average common
   shares (denominator)

 

 

56.1

 

 

 

56.3

 

 

 

56.2

 

 

 

56.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share - basic:

 

$

1.44

 

 

$

1.70

 

 

$

3.68

 

 

$

2.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS:

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) allocated to common
   shareholders

 

$

81

 

 

$

96

 

 

$

207

 

 

$

113

 

Plus: Earnings allocated to
   participating securities

 

 

1

 

 

 

1

 

 

 

4

 

 

 

2

 

Less: Adjusted earnings allocated to
   participating securities(2)

 

 

1

 

 

 

1

 

 

 

4

 

 

 

2

 

Earnings (loss) allocated to common
   shareholders (numerator)

 

$

81

 

 

$

96

 

 

$

207

 

 

$

113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted weighted average common
   shares outstanding

 

 

56.1

 

 

 

56.3

 

 

 

56.2

 

 

 

56.5

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

Common shares issuable(3)

 

 

0.4

 

 

 

0.5

 

 

 

0.5

 

 

 

0.4

 

Adjusted weighted average common
   shares (denominator)

 

 

56.5

 

 

 

56.8

 

 

 

56.7

 

 

 

56.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share - diluted:

 

$

1.43

 

 

$

1.69

 

 

$

3.65

 

 

$

1.99

 

 

(1)
Participating securities consist of shares underlying unvested time-based restricted stock units (the "TSUs"), earned and unvested performance-based restricted stock units (the "PSUs", and referred to in this note collectively with the TSUs as the "RSUs"), stock units accounted for under the Supplemental 401(k) Plan portion of the Company’s Deferred Compensation and Supplemental Retirement Plan, and stock units and phantom stock units accounted for under the Company’s Non-Employee Directors’ Deferral Plan. The holders of RSUs are entitled to receive dividend equivalents, payable in cash, to the extent dividends are paid on the outstanding shares of Common Stock, and equal in value to the dividends that would have been paid in respect of the Common Stock underlying the RSU. The accounts of holders of stock units and phantom stock units are credited with dividend equivalents, which are payable, in stock or cash, as the case may be, with the distribution of account balances.
Calculation of Undistributed Earnings The calculation of undistributed earnings is as follows:

 

 

 

Three Months Ended June 30

 

 

Nine Months Ended June 30

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(In millions)

 

Calculation of undistributed earnings (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Cabot Corporation

 

$

82

 

 

$

97

 

 

$

211

 

 

$

115

 

Less: Dividends declared on common stock

 

 

23

 

 

 

21

 

 

 

64

 

 

 

63

 

Less: Dividends declared on participating
   securities

 

 

—

 

 

 

—

 

 

 

1

 

 

 

1

 

Undistributed earnings (loss)

 

$

59

 

 

$

76

 

 

$

146

 

 

$

51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allocation of undistributed earnings (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Undistributed earnings (loss) allocated to
   common shareholders

 

$

58

 

 

$

75

 

 

$

143

 

 

$

50

 

Undistributed earnings allocated to
   participating shareholders

 

 

1

 

 

 

1

 

 

 

3

 

 

 

1

 

Undistributed earnings (loss)

 

$

59

 

 

$

76

 

 

$

146

 

 

$

51

 

 

(2)
Undistributed earnings are adjusted for the assumed distribution of dividends to the dilutive securities, which are described in (3) below, and then reallocated to participating securities.
(3)
Represents incremental shares of common stock from the assumed exercise of stock options issued under Cabot’s equity incentive plans. For the three and nine months ended June 30, 2023, 156,550 and 133,039 incremental shares of common stock were excluded from the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive. For the three and nine months ended June 30, 2022, 169,425 and 204,796 incremental shares of common stock were excluded from the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive.