Financial Information by Segment (Tables)

9 Months Ended

Jun. 30, 2013

Financial Information by Reportable Segment

Financial information by reportable segment is as follows:


	Reinforcement		Performance		Advanced		Purification		Segment		Unallocated			Consolidated
	Materials		Materials		Technologies		Solutions		Total		and Other⁽¹⁾			Total
	(Dollars in millions)
Three months ended June 30, 2013
Revenues from external customers⁽²⁾	$	486	$	233	$	69	$	86	$	874	$	29		$	903
Income (loss) before taxes⁽³⁾	$	48	$	35	$	27	$	1	$	111	$	(38	)	$	73

Three months ended June 30, 2012
Revenues from external customers⁽²⁾	$	517	$	247	$	57		N/A	$	821	$	25		$	846
Income (loss) before taxes⁽³⁾	$	59	$	38	$	12		N/A	$	109	$	(31	)	$	78

Nine months ended June 30, 2013
Revenues from external customers⁽²⁾	$	1,420	$	672	$	148	$	258	$	2,498	$	67		$	2,565
Income (loss) before taxes⁽³⁾	$	139	$	98	$	42	$	11	$	290	$	(140	)	$	150

Nine months ended June 30, 2012
Revenues from external customers⁽²⁾	$	1,540	$	687	$	153		N/A	$	2,380	$	72		$	2,452
Income (loss) before taxes⁽³⁾	$	186	$	94	$	33		N/A	$	313	$	(104	)	$	209

⁽¹⁾	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 Chief Operating Decision Maker.

⁽²⁾	Unallocated and other reflects royalties paid by equity affiliates, external shipping and handling fees, and the impact of the corporate adjustment for unearned revenue.


	Three months ended				Nine months ended
	June 30				June 30
	2013		2012		2013		2012
	(Dollars in millions)
Royalties paid by equity affiliates, other operating revenues, the impact of corporate adjustments for unearned revenue, and unconsolidated equity affiliates	$	9	$	3	$	6	$	8
Shipping and handling fees		20		22		61		64

Total	$	29	$	25	$	67	$	72

Schedule of Income (Loss) Before Taxes for Unallocated and Other

⁽³⁾	Income (loss) before taxes that are categorized as Unallocated and Other includes:


	Three months ended						Nine months ended
	June 30						June 30
	2013			2012			2013			2012
	(Dollars in millions)
Interest expense	$	(15	)	$	(11	)	$	(47	)	$	(30	)
Total certain items, pre-tax^(a)		(4	)		(7	)		(44	)		(21	)
Equity in earnings of affiliated companies^(b)		(3	)		(4	)		(9	)		(8	)
Unallocated corporate costs^(c)		(13	)		(12	)		(42	)		(44	)
General unallocated (expense) income^(d)		(3	)		3			2			(1	)

Total	$	(38	)	$	(31	)	$	(140	)	$	(104	)

(a)

Certain items are items that management does not consider to be representative of operating segment results and they are, therefore, excluded from Segment EBIT. Certain items, pre-tax, for the three months ended June 30, 2013 include $5 million related to global restructuring activities and $2 million for acquisition-related charges (consisting of $2 million for certain other one-time integration costs) offset by $3 million of foreign currency gain on revaluation of the GAM Notes. Certain items, pre-tax, for the nine months ended June 30, 2013 include $30 million related to global restructuring activities and $18 million for acquisition-related charges (consisting of $7 million for certain other one-time integration costs and $11 million of charges related to acquisition accounting adjustments for the acquired inventory) offset by $4 million of foreign currency gain on revaluation of the GAM Notes. Certain items, pre-tax, for the three months ended June 30, 2012 include $2 million related to global restructuring activities and $5 million for acquisition-related charges. Certain items, pre-tax, for the nine months ended June 30, 2012 include $14 million related to global restructuring activities, $5 million for acquisition-related charges and $2 million for environmental and legal reserves.

(b)	Equity in earnings of affiliated companies is included in Segment EBIT and is removed from Unallocated and other to reconcile to Income (loss) before taxes.

(c)	Unallocated corporate costs are not controlled by the operating segments and primarily benefit corporate interests.

(d)

General unallocated (expense) income consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, the impact of accounting for certain inventory on a LIFO basis the profit or loss related to the corporate adjustment for unearned revenue, and the impact of including the full operating results of an equity affiliate in Purification Solutions segment EBIT.

Schedule of Performance Segment

The net sales from each of these businesses for the three and nine months ended June 30, 2013 and 2012 are as follows:


	Three months ended				Nine months ended
	June 30				June 30
	2013		2012		2013		2012
	(Dollars in millions)
Specialty Carbons and Compounds	$	159	$	181	$	464	$	505
Fumed Metal Oxides		74		66		208		182

Total Performance Materials	$	233	$	247	$	672	$	687

Schedule of Advanced Technologies Business Segment

The net sales from each of the Advanced Technologies businesses are as follows:


	Three months ended				Nine months ended
	June 30				June 30
	2013		2012		2013		2012
	(Dollars in millions)
Inkjet Colorants	$	18	$	18	$	46	$	48
Aerogel		9		3		17		12
Security Materials		2		2		5		7
Elastomer Composites		5		6		17		17
Specialty Fluids		35		28		63		69

Total Advanced Technologies	$	69	$	57	$	148	$	153

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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