Discontinued Operations and Notes Receivable from Sale of Business

9 Months Ended

Jun. 30, 2014

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations and Notes Receivable from Sale of Business

D. Discontinued Operations and Notes Receivable from Sale of Business

In January 2012, the Company sold its Supermetals business to Global Advanced Metals Pty Ltd., an Australian company (“GAM”), for $452 million, including cash consideration of $175 million received on the closing date and notes receivable (“GAM Notes”) totaling $277 million payable at various dates through March 2014. During the third quarter of fiscal 2014, Cabot received the final payment on the GAM Notes in the amount of $215 million.

In March 2014, the Company entered into an agreement to sell its Security Materials business to SICPA, for approximately $20 million in cash. The sale closed on July 31, 2014 and the Company expects to record a gain in discontinued operations as a result of this transaction.

The following table summarizes the results from discontinued operations during the three and nine months ended June 30, 2014 and 2013:

	Three Months Ended						Nine Months Ended
	June 30						June 30
	2014			2013			2014			2013
	(Dollars in millions)
Net sales and other operating revenues	$	2		$	1		$	5		$	4
Loss from operations before income taxes		(1	)		(1	)		(3	)		(6	)
Benefit from income taxes		—			2			1			4
(Loss) Income from discontinued operations, net of tax	$	(1	)	$	1		$	(2	)	$	(2	)

The following table summarizes the assets held for sale in the Company’s Consolidated Balance Sheets:

	June 30, 2014		September 30, 2013
	(Dollars in millions)
Assets
Inventories	$	3	$	3
Other current assets		1		1
Total current assets held for sale	$	4	$	4
Property, plant and equipment, net	$	5	$	5
Goodwill		2		2
Intangible assets, net		2		2
Total noncurrent assets held for sale	$	9	$	9