Accumulated Other Comprehensive Loss

75 Months Ended

Dec. 31, 2014

Equity [Abstract]

Accumulated Other Comprehensive Loss

H. Accumulated Other Comprehensive Loss

Comprehensive income combines net income and other comprehensive income items, which are reported as components of stockholders’ equity in the accompanying Consolidated Balance Sheets.

Changes in each component of AOCI, net of tax, are as follows:

	Currency Translation Adjustment			Unrealized Gains on Investments		Pension and Other Postretirement Benefit Liability Adjustment			Total
	(Dollars in millions)
Balance at September 30, 2014, attributable to Cabot Corporation	$	27		$	2	$	(93	)	$	(64	)
Other comprehensive loss before reclassifications		(103	)		—		—			(103	)
Amounts reclassified from accumulated other comprehensive income		—			—		21			21
Net other comprehensive items		(103	)		—		21			(82	)
Less: Noncontrolling interest		(2	)		—		—			(2	)
Balance at December 31, 2014, attributable to Cabot Corporation	$	(74	)	$	2	$	(72	)	$	(144	)

Accumulated other comprehensive items in the accompanying Consolidated Balance Sheets consist of the following items net of tax:

	December 31,			September 30,
	2014			2014
Foreign currency translation adjustments at beginning of period	$	27		$	154
Net foreign currency translation adjustments attributable to Cabot Corporation during the period		(101	)		(127	)
Balance at end of period		(74	)		27
Unrealized gain on investments at beginning of period		2			2
Net unrealized gains during the period		—			—
Balance at end of period		2			2
Pension and other postretirement benefit plans attributable to Cabot Corporation at beginning of period		(93	)		(53	)
Net change in pension and other postretirement benefit plans during the period		21			(40	)
Balance at end of period		(72	)		(93	)
Total accumulated other comprehensive loss	$	(144	)	$	(64	)

The amounts reclassified out of AOCI and into the Statement of Operations for the three months ended December 31, 2014 and 2013 are as follows:

		Three Months Ended December 31
	Affected Line Item in the Consolidated Statements of Operations	2014			2013
		(Dollars in millions)
Pension and other postretirement benefit liability adjustment
Amortization of actuarial losses	Net Periodic Benefit Cost - see Note E for details	$	1		$	1
Amortization of prior service cost	Net Periodic Benefit Cost - see Note E for details		(1	)		(1	)
Settlement costs	Net Periodic Benefit Cost - see Note E for details		27			—
Total before tax			27			—
Tax impact	Benefit for income taxes		(6	)		—
Total after tax		$	21		$	—