XML 65 R48.htm IDEA: XBRL DOCUMENT v3.23.3
Financial Information by Segment & Geographic Area (Tables)
 12 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Financial Information by Reportable Segment

Financial information by reportable segment is as follows:

 

Years Ended September 30

 

Reinforcement
Materials

 

 

Performance
Chemicals

 

 

Purification
Solutions(1)

 

 

Segment
Total

 

 

Unallocated
and
Other(2)

 

 

Consolidated
Total

 

 

 

(In millions)

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(4)

 

$

2,563

 

 

$

1,225

 

 

$

—

 

 

$

3,788

 

 

$

143

 

 

$

3,931

 

Depreciation and amortization

 

$

70

 

 

$

72

 

 

$

—

 

 

$

142

 

 

$

2

 

 

$

144

 

Equity in earnings of affiliated companies

 

$

2

 

 

$

3

 

 

$

—

 

 

$

5

 

 

$

—

 

 

$

5

 

Income (loss) from operations
   before income taxes(5)

 

$

482

 

 

$

125

 

 

$

—

 

 

$

607

 

 

$

(156

)

 

$

451

 

Assets(6)

 

$

1,632

 

 

$

1,473

 

 

$

—

 

 

$

3,105

 

 

$

499

 

 

$

3,604

 

Total expenditures for additions to long-lived
   assets(7)

 

$

149

 

 

$

108

 

 

$

—

 

 

$

257

 

 

$

8

 

 

$

265

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(3)(4)

 

$

2,673

 

 

$

1,388

 

 

$

97

 

 

$

4,158

 

 

$

163

 

 

$

4,321

 

Depreciation and amortization

 

$

70

 

 

$

72

 

 

$

3

 

 

$

145

 

 

$

1

 

 

$

146

 

Equity in earnings of affiliated companies

 

$

4

 

 

$

5

 

 

$

1

 

 

$

10

 

 

$

—

 

 

$

10

 

Income (loss) from operations
   before income taxes(5)

 

$

408

 

 

$

234

 

 

$

—

 

 

$

642

 

 

$

(307

)

 

$

335

 

Assets(6)

 

$

1,691

 

 

$

1,458

 

 

$

—

 

 

$

3,149

 

 

$

376

 

 

$

3,525

 

Total expenditures for additions to long-lived
   assets(7)

 

$

114

 

 

$

100

 

 

$

3

 

 

$

217

 

 

$

4

 

 

$

221

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(3)(4)

 

$

1,838

 

 

$

1,156

 

 

$

257

 

 

$

3,251

 

 

$

158

 

 

$

3,409

 

Depreciation and amortization

 

$

70

 

 

$

73

 

 

$

16

 

 

$

159

 

 

$

1

 

 

$

160

 

Equity in earnings of affiliated companies

 

$

—

 

 

$

2

 

 

$

2

 

 

$

4

 

 

$

(1

)

 

$

3

 

Income (loss) from operations
   before income taxes(5)

 

$

329

 

 

$

211

 

 

$

10

 

 

$

550

 

 

$

(144

)

 

$

406

 

Assets(6)

 

$

1,421

 

 

$

1,325

 

 

$

283

 

 

$

3,029

 

 

$

277

 

 

$

3,306

 

Total expenditures for additions to long-lived
   assets(7)

 

$

104

 

 

$

80

 

 

$

9

 

 

$

193

 

 

$

5

 

 

$

198

 

 

(1)
Cabot divested its Purification Solutions business on March 1, 2022. Refer to Note D for the terms of this transaction.
(2)
Unallocated and Other includes certain items and eliminations necessary to reflect management’s reporting of operating segment results. These items are reflective of the segment reporting presented to the CODM.
(3)
Beginning in fiscal 2023, the Company began allocating energy center revenue to the applicable segment’s revenue. The Company recast prior period financial information to conform to the new presentation. The allocation of such revenue resulted in an increase of $98 million and $57 million in the Reinforcement Materials segment and $16 million and $8 million in the Performance Chemicals segment, with an offsetting decrease in Unallocated and Other revenue for fiscal 2022 and fiscal 2021, respectively. There was no impact to Consolidated Total Revenue from external customers.
(4)
Consolidated Total Revenues from external customers reconciles to Net sales and other operating revenues on the Consolidated Statements of Operations. Revenues from external customers that are categorized as Unallocated and Other are summarized as follows:

 

 

 

Years Ended September 30

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(In millions)

 

Shipping and handling fees

 

$

132

 

 

$

162

 

 

$

153

 

By-product sales

 

 

5

 

 

 

8

 

 

 

8

 

Other

 

 

6

 

 

 

(7

)

 

 

(3

)

Total

 

$

143

 

 

$

163

 

 

$

158

 

 

(5)
Consolidated Total Income (loss) from operations before income taxes reconciles to Income (loss) from operations before income taxes and equity in earnings of affiliated companies on the Consolidated Statements of Operations. Total Income (loss) from operations before income taxes that are categorized as Unallocated and Other includes:

 

 

 

Years Ended September 30

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(In millions)

 

Interest expense

 

$

(90

)

 

$

(56

)

 

$

(49

)

Certain items:(a)

 

 

 

 

 

 

 

 

 

Gain on sale of land

 

 

1

 

 

 

17

 

 

 

—

 

Legal and environmental matters and reserves (Note S)

 

 

(10

)

 

 

(9

)

 

 

(25

)

Argentina controlled currency devaluation loss

 

 

(7

)

 

 

—

 

 

 

—

 

Acquisition and integration-related charges

 

 

(4

)

 

 

(6

)

 

 

(5

)

Global restructuring activities

 

 

(4

)

 

 

(3

)

 

 

(11

)

Loss on sale of business and asset impairment charge

 

 

(3

)

 

 

(207

)

 

 

—

 

Other certain items

 

 

(2

)

 

 

—

 

 

 

(1

)

Gain on bargain purchase of a business (Note C)

 

 

—

 

 

 

24

 

 

 

—

 

Specialty Fluids divestiture related benefit

 

 

—

 

 

 

5

 

 

 

—

 

Employee benefit plan settlement and other charges

 

 

—

 

 

 

1

 

 

 

(4

)

Purification Solutions divestiture related charges

 

 

—

 

 

 

(5

)

 

 

—

 

Indirect tax settlement credits

 

 

—

 

 

 

—

 

 

 

12

 

Total certain items, pre-tax

 

 

(29

)

 

 

(183

)

 

 

(34

)

Unallocated corporate costs(b)

 

 

(54

)

 

 

(59

)

 

 

(58

)

General unallocated income (expense)(c)

 

 

22

 

 

 

1

 

 

 

—

 

Less: Equity in earnings of affiliated companies, net of tax(d)

 

 

5

 

 

 

10

 

 

 

3

 

Total

 

$

(156

)

 

$

(307

)

 

$

(144

)

 

(a)
Certain items are items that management does not consider representative of operating segment results and they are, therefore, excluded from Segment EBIT.
(b)
Unallocated corporate costs are not controlled by the segments and primarily benefit corporate interests.
(c)
General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, interest and dividend income, the profit or loss related to the corporate adjustment for unearned revenue, and unrealized holding gains (losses) for investments.
(d)
Equity in earnings of affiliated companies, net of tax is included in Segment EBIT and is removed from Unallocated and other to reconcile to income (loss) from operations before taxes and equity in earnings from affiliated companies.
(6)
Unallocated and Other assets include cash, marketable securities, cost investments, income taxes receivable, deferred taxes, headquarters’ assets and current and non-current assets held for sale.
(7)
Expenditures for additions to long-lived assets include total equity and other investments (including available-for-sale securities) and property, plant and equipment.
Revenue from External Customers and Property, Plant and Equipment Information by Geographic Area

Revenues from external customers attributable to an individual country, other than the U.S. and China, were not material for disclosure. Revenues from external customers by individual country are summarized as follows:

 

 

 

Years Ended September 30

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(In millions)

 

United States

 

$

738

 

 

$

842

 

 

$

668

 

China

 

 

972

 

 

 

1,129

 

 

 

858

 

Other countries

 

 

2,221

 

 

 

2,350

 

 

 

1,883

 

Total

 

$

3,931

 

 

$

4,321

 

 

$

3,409

 

Property, plant and equipment attributable to an individual country, other than the U.S. and China, were not material for disclosure. Property, plant and equipment information by individual country is summarized as follows:

 

 

 

Years Ended September 30

 

 

 

2023

 

 

2022

 

 

 

(In millions)

 

United States

 

$

588

 

 

$

524

 

China

 

 

356

 

 

 

333

 

Other countries

 

 

468

 

 

 

413

 

Total

 

$

1,412

 

 

$

1,270

 
Revenues from External Customers by Geographic Region

Each of the Company’s segments operates globally. In addition to presenting Revenue from external customers by reportable segment, the following tables further disaggregate Revenue from external customers by geographic region.

 

 

 

Year Ended September 30, 2023

 

 

 

Reinforcement
Materials

 

 

Performance
Chemicals

 

 

Purification
Solutions

 

 

Consolidated Total

 

 

 

(In millions)

 

Americas

 

$

1,046

 

 

$

379

 

 

$

—

 

 

$

1,425

 

Asia Pacific

 

 

995

 

 

 

491

 

 

 

—

 

 

 

1,486

 

Europe, Middle East and Africa

 

 

522

 

 

 

355

 

 

 

—

 

 

 

877

 

Segment revenues from external customers

 

 

2,563

 

 

 

1,225

 

 

 

—

 

 

 

3,788

 

Unallocated and other

 

 

 

 

 

 

 

 

 

 

 

143

 

Net sales and other operating revenues

 

 

 

 

 

 

 

 

 

 

$

3,931

 

 

 

 

Year Ended September 30, 2022

 

 

 

Reinforcement
Materials(1)

 

 

Performance
Chemicals(1)

 

 

Purification
Solutions

 

 

Consolidated Total

 

 

 

(In millions)

 

Americas

 

$

1,072

 

 

$

419

 

 

$

43

 

 

$

1,534

 

Asia Pacific

 

 

1,049

 

 

 

567

 

 

 

14

 

 

 

1,630

 

Europe, Middle East and Africa

 

 

552

 

 

 

402

 

 

 

40

 

 

 

994

 

Segment revenues from external customers

 

 

2,673

 

 

 

1,388

 

 

 

97

 

 

 

4,158

 

Unallocated and other

 

 

 

 

 

 

 

 

 

 

 

163

 

Net sales and other operating revenues

 

 

 

 

 

 

 

 

 

 

$

4,321

 
(1)
Beginning in fiscal 2023, the Company began allocating energy center revenue to the applicable segment’s revenue. The Company recast prior period financial information to conform to the new presentation.

 

 

 

Year Ended September 30, 2021

 

 

 

Reinforcement
Materials(1)

 

 

Performance
Chemicals(1)

 

 

Purification
Solutions

 

 

Consolidated Total

 

 

 

(In millions)

 

Americas

 

$

708

 

 

$

311

 

 

$

110

 

 

$

1,129

 

Asia Pacific

 

 

777

 

 

 

489

 

 

 

34

 

 

$

1,300

 

Europe, Middle East and Africa

 

 

353

 

 

 

356

 

 

 

113

 

 

 

822

 

Segment revenues from external customers

 

 

1,838

 

 

 

1,156

 

 

 

257

 

 

 

3,251

 

Unallocated and other

 

 

 

 

 

 

 

 

 

 

 

158

 

Net sales and other operating revenues

 

 

 

 

 

 

 

 

 

 

$

3,409

 
(1)
Beginning in fiscal 2023, the Company began allocating energy center revenue to the applicable segment’s revenue. The Company recast prior period financial information to conform to the new presentation.