Derivatives (Tables)

9 Months Ended

Jun. 30, 2013

Foreign Currency Risk Management

The following table provides details of the derivatives held as of June 30, 2013 and September 30, 2012 to manage foreign currency risk:

		Notional Amount
Description	Borrowing	June 30, 2013	September 30, 2012	Hedge Designation
Cross Currency Swap	Eurobond (80% of $175 million)	USD 140 million swapped to EUR 124 million	USD 140 million swapped to EUR 124 million	No designation
Cross Currency Swap	Eurobond (20% of $175 million)	USD 35 million swapped to EUR 31 million	USD 35 million swapped to EUR 31 million	No designation
Forward Foreign Currency Contracts (1)	N/A	USD 23 million	USD 106 million	No designation
Forward Foreign Currency Contracts (1)	N/A	USD 0 million	USD 3 million	Cash Flow

⁽¹⁾  Cabot’s forward foreign exchange contracts are denominated primarily in the Australian dollar, British pound sterling, Canadian dollar, Chinese renminbi, Japanese Yen and Euro.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table provides the fair value and Consolidated Balance Sheet presentations of derivative instruments by each derivative type, without regard to the legal right to offset derivative settlement by each counterparty:

Fair Value of Derivative Instruments	Consolidated Balance Sheet Caption	June 30, 2013		September 30, 2012
		(Dollars in millions)
Asset Derivatives
Derivatives designated as hedges
Interest rate(1)	Accounts payable and accrued liabilities	$	—	$	2
Derivatives not designated as hedges
Other(2)	Prepaid expenses and other current assets	$	1	$	1
Total Asset Derivatives		$	1	$	3
Liability Derivatives
Derivatives not designated as hedges
Foreign currency(1)	Accounts payable and accrued liabilities and Other liabilities	$	29	$	28
Other(2)	Prepaid expenses and other current assets		—		1
Total derivatives not designated as hedges		$	29	$	29
Total Liability Derivatives		$	29	$	29

(1) Contracts of less than a million and $2 million presented on a gross basis in this table at June 30, 2013 and September 30, 2012, respectively, have the legal right to offset against other types of contracts with a common counterparty and, therefore, are presented on a net basis in “Accounts payable and accrued liabilities” in the Consolidated Balance Sheet.

(2) Contracts in an asset and liability position presented on a gross basis in this table have the legal right of offset and, therefore, are presented on a net basis in “Prepaid expenses and other current assets” in the Consolidated Balance Sheet.

Interest Rate Risk Management [Member]

Schedule of Derivatives Fair Value Interest Rate

The following table provides details of the derivatives held as of June 30, 2013 and September 30, 2012 to manage interest rate risk.

		Notional Amount
Description	Borrowing	June 30, 2013	September 30, 2012	Hedge Designation
Interest Rate Swap—Fixed to Variable	Eurobond (20% of $175 million)	USD 35 million	USD 35 million	Fair Value