Earnings Per Share (Tables)

12 Months Ended

Sep. 30, 2011

Earnings Per Share

Components Of Basic And Diluted Earnings Per Common Share

	Years Ended September 30
	2011			2010			2009
	(In millions, except per share amounts)
Basic EPS:
Net income (loss) attributable to Cabot Corporation	$	236		$	154		$	(77	)
Less: Dividends and dividend equivalents to participating securities		1			1			2
Less: Undistributed earnings allocated to participating securities(1)		2			2			—
Earnings (loss) allocated to common shareholders (numerator)	$	233		$	151		$	(79	)
Weighted average common shares and participating securities outstanding		65.4			65.3			65.3
Less: Participating securities(1)		0.8			1.5			2.5
Adjusted weighted average common shares (denominator)		64.6			63.8			62.8
Per share amounts—basic:
Income (loss) from continuing operations attributable to Cabot Corporation	$	2.80		$	1.96		$	(1.21	)
Income (loss) from discontinued operations		0.82			0.41			(0.04	)
Net income (loss) attributable to Cabot Corporation	$	3.62		$	2.37		$	(1.25	)
Diluted EPS:
Earnings (loss) allocated to common shareholders	$	233		$	151		$	(79	)
Plus: Earnings allocated to participating securities		3			3			2
Less: Adjusted earnings allocated to participating securities(2)		(3	)		(3	)		(2	)
Earnings (loss) available to common shares (numerator)	$	233		$	151		$	(79	)
Adjusted weighted average common shares outstanding		64.6			63.8			62.8
Effect of dilutive securities:
Common shares issuable(3)		0.8			0.5			—
Adjusted weighted average common shares (denominator)		65.4			64.3			62.8
Per share amounts—diluted:
Income (loss) from continuing operations attributable to Cabot Corporation	$	2.77		$	1.94		$	(1.21	)
Income (loss) from discontinued operations		0.80			0.41			(0.04	)
Net income (loss) attributable to Cabot Corporation	$	3.57		$	2.35		$	(1.25	)

⁽¹⁾  Participating securities consist of shares of unvested restricted stock, vested restricted stock awards held by employees in which Cabot has a security interest, and unvested time-based restricted stock units. ⁽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 (i) assumed exercise of stock options issued under Cabot's equity incentive plans; (ii) assumed issuance of shares to employees pursuant to the Company's Supplemental Retirement Savings Plan; and (iii) assumed issuance of shares for outstanding and achieved performance-based stock unit awards issued under Cabot's equity incentive plans using the treasury stock method. For fiscal 2011, 253,000 incremental shares of common stock were not included in the calculation of diluted earnings per share because the inclusion of these shares would have been antidilutive. For fiscal 2010, 193,000 incremental shares of common stock were not included in the calculation of diluted earnings per share because those shares' exercise prices were greater than the average market price of Cabot common stock for that period. For fiscal 2009, 3,833,000 incremental shares of common stock were excluded from the calculation of diluted earnings per share as those shares would have been antidilutive due to the Company's net loss position.

Calculation Of Undistributed Earnings

	Years Ended September 30
	2011		2010		2009
	(Dollars in millions)
Calculation of undistributed earnings:
Net income (loss) attributable to Cabot Corporation	$	236	$	154	$	(77	)
Less: Dividends declared on common stock		46		46		46
Less: Dividends and dividend equivalents to participating securities		1		1		2
Undistributed earnings	$	189	$	107	$	(125	)
Allocation of undistributed earnings:
Undistributed earnings allocated to common shareholders	$	187	$	105	$	(125	)
Undistributed earnings allocated to participating securities		2		2		—
Undistributed earnings	$	189	$	107	$	(125	)