Acquisition of Norit (Tables)

3 Months Ended

Dec. 31, 2012

Components and Allocation of Purchase Price

The following table presents the components and preliminary allocation of the purchase price, including the measurement period adjustments:

	At Acquisition  Date (As reported at September 30, 2012)			Measurement Period Adjustments			At Acquisition Date  (As adjusted and reported at December 31, 2012)
				(Dollars in millions)
Current assets	$	207		$	—		$	207
Property, plant and equipment		385			(6	)		379
Other non-current assets		72			2			74
Intangible assets		325			(9	)		316
Goodwill		432			11			443
Current liabilities		(98	)		—			(98	)
Deferred non-current tax liabilities		(176	)		2			(174	)
Other non-current liabilities		(34	)		—			(34	)
Total purchase price	$	1,113		$	—		$	1,113

Pro Forma Net Sales and Results of Operations

The following table provides pro forma net sales and earnings for the first quarter of fiscal year 2012, as if Norit had been acquired on October 1, 2011. The unaudited pro forma results reflect certain adjustments related to the acquisition, such as increased depreciation and amortization expense on assets acquired from Norit resulting from recording the fair value of assets acquired, the impact of acquisition financing with the related tax effects, and certain reclassifications to conform with the current year’s presentation. The pro forma adjustments also include non-recurring adjustments in pro forma earnings of $13 million in the first fiscal quarter of 2012 related to the step-up of inventory values at the acquisition date. The pro forma results do not include any synergies or other effects of the planned integration of Norit. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisition been completed on October 1, 2011, nor are they indicative of the future operating results of the combined company.

	Three months ended December 31, 2011 (unaudited)
	(Dollars in millions)
Net sales	$	846
Income from continuing operations		37
Income from continuing operations per common share:
Basic	$	0.58
Diluted	$	0.57