Financial Information by Segment (Tables)

3 Months Ended

Dec. 31, 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 December 31, 2013
Revenues from external customers⁽²⁾	$	517	$	217	$	65	$	77		$	876	$	23		$	899
Income (loss) from continuing operations before taxes⁽³⁾	$	64	$	34	$	24	$	(9	)	$	113	$	(5	)	$	108

Three months ended December 31, 2012
Revenues from external customers⁽²⁾	$	475	$	196	$	38	$	93		$	802	$	18		$	820
Income (loss) from continuing operations before taxes⁽³⁾	$	50	$	27	$	7	$	5		$	89	$	(48	)	$	41

⁽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 and Notes receivable. See table below:


	Three months ended
	December 31
	2013			2012
	(Dollars in millions)
Royalties paid by equity affiliates, other operating revenues, the impact of corporate adjustments for unearned revenue, unconsolidated equity affiliates and discounting charges for certain Notes receivable	$	(1	)	$	(1	)
Shipping and handling fees		24			19

Total	$	23		$	18

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


	Three months ended
	December 31
	2013			2012
	(Dollars in millions)
Interest expense	$	(14	)	$	(16	)
Total certain items, pre-tax^(a)		24			(20	)
Equity in earnings of affiliated companies^(b), net of tax		(2	)		(3	)
Unallocated corporate costs^(c)		(13	)		(12	)
General unallocated income^(d)		—			3

Total	$	(5	)	$	(48	)

(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 December 31, 2013 include $5 million related to global restructuring activities, $5 million for acquisition and integration-related charges (consisting of $3 million for certain other one-time integration costs and $2 million of additional charges related to acquisition accounting adjustments for the acquired inventory of NHUMO) and $1 million for environmental matters offset by $6 million of foreign currency gain on revaluation of the GAM Notes and a $29 million non-cash gain recognized on the Company’s pre-existing investment in NHUMO as a result of the NHUMO transaction. Certain items, pre-tax, for the three months ended December 31, 2012 include $6 million related to global restructuring activities and $14 million for acquisition and integration-related charges (consisting of $3 million for certain other one-time integration costs and $11 million of additional charges related to acquisition accounting adjustments for inventory acquired in the Norit transaction).

(b)

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 continuing operations before taxes.

(c)

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

(d)

General unallocated 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 months ended December 31, 2013 and 2012 are as follows:


	Three months ended
	December 31
	2013		2012
	(Dollars in millions)
Specialty Carbons and Compounds	$	148	$	132
Fumed Metal Oxides		69		64

Total Performance Materials	$	217	$	196

Schedule of Advanced Technologies Business Segment

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


	Three months ended
	December 31
	2013		2012
	(Dollars in millions)
Inkjet Colorants	$	15	$	16
Aerogel		5		5
Security Materials		1		1
Elastomer Composites		16		8
Specialty Fluids		28		8

Total Advanced Technologies	$	65	$	38

- 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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