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Financial Information by Segment (Tables)
 3 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Schedule of Performance Segment The net sales from each of these businesses for the three months ended December 31, 2018 and 2017 were as follows:

 

 

Three Months Ended December 31

 

 

 

2018

 

 

2017

 

 

 

(In millions)

 

Performance Additives

 

$

167

 

 

$

159

 

Formulated Solutions

 

 

64

 

 

 

70

 

Performance Chemicals

 

$

231

 

 

$

229

 

 
Financial Information by Reportable Segment

Financial information by reportable segment is as follows:

 

 

 

Reinforcement

Materials

 

 

Performance

Chemicals

 

 

Purification

Solutions

 

 

Specialty

Fluids

 

 

Segment

Total

 

 

Unallocated

and Other(1)

 

 

Consolidated

Total

 

 

 

(In millions)

 

Three Months Ended December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

457

 

 

$

231

 

 

$

65

 

 

$

19

 

 

$

772

 

 

$

49

 

 

$

821

 

Income (loss) from continuing operations

   before income taxes(3)

 

$

62

 

 

$

36

 

 

$

(3

)

 

$

10

 

 

$

105

 

 

$

(35

)

 

$

70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

387

 

 

$

229

 

 

$

70

 

 

$

6

 

 

$

692

 

 

$

28

 

 

$

720

 

Income (loss) from continuing operations

   before income taxes(3)

 

$

62

 

 

$

47

 

 

$

6

 

 

$

(2

)

 

$

113

 

 

$

(21

)

 

$

92

 

 

(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 CODM.

(2)

Consolidated Total Revenues from external customers reconciles to Net sales and other operating revenues on the Consolidated Statements of Operations. Revenues from external customers that are categorized as Unallocated and Other reflects royalties, external shipping and handling fees, the impact of unearned revenue, the removal of 100% of the sales of an equity method affiliate, discounting charges for certain Notes receivable, and by-product revenue. Details are provided in the table below:

 

 

 

Three Months Ended December 31

 

 

 

2018

 

 

2017

 

 

 

(In millions)

 

Royalties, the impact of unearned revenue, the removal of 100% of

   the sales of an equity method affiliate and discounting charges for

   certain notes receivable

 

$

(3

)

 

$

1

 

Shipping and handling fees

 

 

32

 

 

 

27

 

By-product sales(a)

 

 

20

 

 

 

—

 

Total

 

$

49

 

 

$

28

 

 

 

(a)

Beginning in fiscal 2019 as part of the adoption of the new accounting standard, Revenue from Contracts with Customers, the Company includes revenue from by-products produced in manufacturing operations in Net sales and other operating revenues, which in prior years was included as a reduction in Cost of sales.

(3)

Consolidated Total Income (loss) from continuing operations before income taxes reconciles to Income (loss) from continuing operations before income taxes and equity in earnings of affiliated companies on the Consolidated Statements of Operations. Income (loss) from continuing operations before income taxes that are categorized as Unallocated and Other includes:

 

 

Three Months Ended December 31

 

 

 

2018

 

 

2017

 

 

 

(In millions)

 

Interest expense

 

$

(15

)

 

$

(13

)

Certain items(a)

 

 

 

 

 

 

 

 

Global restructuring activities

 

 

(9

)

 

 

(1

)

Legal and environmental matters and reserves

 

 

—

 

 

 

(1

)

Gains (losses) on sale of investments

 

 

—

 

 

 

10

 

Acquisition and integration-related charges

 

 

(3

)

 

 

—

 

Other

 

 

2

 

 

 

(1

)

Total certain items, pre-tax

 

 

(10

)

 

 

7

 

Unallocated corporate costs(b)

 

 

(12

)

 

 

(14

)

General unallocated income (expense)(c)

 

 

2

 

 

 

—

 

Less: Equity in earnings of affiliated companies, net of tax(d)

 

 

—

 

 

 

1

 

Total

 

$

(35

)

 

$

(21

)

 

 

(a)

Certain items are items of expense and income that management does not consider representative of the Company’s fundamental on-going segment results and they are, therefore, excluded from Segment EBIT.

 

(b)

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

 

(c)

General unallocated income (expense) consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, the profit or loss related to the corporate adjustment for unearned revenue, and the impact of including the full operating results of a contractual joint venture in Purification Solutions Segment EBIT.

 

(d)

Equity in earnings of affiliated companies, net of tax, is included in Segment EBIT and is removed in Unallocated and other to reconcile to Income (loss) from operations before income taxes and equity in earnings from affiliated companies.
Revenues from External Customers by Geographic Region

The Company’s segments operate globally. In addition to presenting Revenue from external customers by reportable segment, the following table further disaggregates Revenue from external customers by geographic region.

 

 

 

Three Months Ended December 31, 2018

 

 

 

Reinforcement

Materials

 

 

Performance

Chemicals

 

 

Purification

Solutions

 

 

Specialty

Fluids

 

 

Consolidated Total

 

 

 

(In millions)

 

Americas

 

$

167

 

 

$

72

 

 

$

29

 

 

$

2

 

 

$

270

 

Asia Pacific

 

 

202

 

 

 

85

 

 

 

9

 

 

 

1

 

 

 

297

 

Europe, Middle East and Africa

 

 

88

 

 

 

74

 

 

 

27

 

 

 

16

 

 

 

205

 

Segment revenues from external customers

 

 

457

 

 

 

231

 

 

 

65

 

 

 

19

 

 

 

772

 

Unallocated and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

49

 

Net sales and other operating revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

821