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Financial Information by Segment & Geographic Area (Tables)
 12 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Schedule of Performance Segment

The net sales from each of these businesses for fiscal 2015, 2014 and 2013 are as follows:

 

 

 

Years Ended September 30

 

 

 

2015

 

 

2014

 

 

2013

 

 

 

(Dollars in millions)

 

Specialty Carbons and Formulations

 

$

630

 

 

$

709

 

 

$

686

 

Metal Oxides

 

 

297

 

 

 

313

 

 

 

303

 

Total Performance Chemicals

 

$

927

 

 

$

1,022

 

 

$

989

 

 
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), (3)

 

 

Consolidated

Total

 

 

 

(Dollars in millions)

 

Years Ended September 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

1,507

 

 

$

927

 

 

$

296

 

 

$

42

 

 

$

2,772

 

 

$

99

 

 

$

2,871

 

Depreciation and amortization

 

83

 

 

54

 

 

45

 

 

2

 

 

184

 

 

 

(1

)

 

183

 

Equity in earnings of affiliated companies

 

2

 

 

1

 

 

6

 

 

 

—

 

 

9

 

 

 

(5

)

 

4

 

Income (loss) from continuing operations

   before taxes(3)

 

143

 

 

178

 

 

5

 

 

6

 

 

332

 

 

 

(709

)

 

 

(377

)

Assets(4)

 

 

1,220

 

 

 

625

 

 

 

789

 

 

 

119

 

 

 

2,753

 

 

 

322

 

 

 

3,075

 

Total expenditures for additions to long-lived

   assets(5)

 

44

 

 

29

 

 

48

 

 

16

 

 

137

 

 

4

 

 

 

141

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

 

2,108

 

 

 

1,022

 

 

 

315

 

 

 

98

 

 

 

3,543

 

 

 

104

 

 

 

3,647

 

Depreciation and amortization

 

 

88

 

 

 

56

 

 

 

54

 

 

 

3

 

 

 

201

 

 

 

—

 

 

 

201

 

Equity in earnings of affiliated companies

 

 

(3

)

 

 

1

 

 

 

6

 

 

 

—

 

 

 

4

 

 

 

(4

)

 

 

—

 

Income (loss) from continuing operations

   before taxes(3)

 

 

259

 

 

 

168

 

 

 

(19

)

 

 

39

 

 

 

447

 

 

 

(139

)

 

 

308

 

Assets(4)

 

 

1,632

 

 

 

731

 

 

 

1,389

 

 

 

115

 

 

 

3,867

 

 

 

217

 

 

 

4,084

 

Total expenditures for additions to long-lived

   assets(5)

 

 

65

 

 

 

29

 

 

 

64

 

 

 

7

 

 

 

165

 

 

 

6

 

 

 

171

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

 

1,931

 

 

 

989

 

 

 

328

 

 

 

101

 

 

 

3,349

 

 

 

107

 

 

 

3,456

 

Depreciation and amortization

 

 

82

 

 

 

56

 

 

 

54

 

 

 

2

 

 

 

194

 

 

 

(4

)

 

 

190

 

Equity in earnings of affiliated companies

 

 

9

 

 

 

2

 

 

 

4

 

 

 

—

 

 

 

15

 

 

 

(4

)

 

 

11

 

Income (loss) from continuing operations

   before taxes(3)

 

 

195

 

 

 

149

 

 

 

(4

)

 

 

46

 

 

 

386

 

 

 

(176

)

 

 

210

 

Assets(4)

 

 

1,523

 

 

 

752

 

 

 

1,388

 

 

 

110

 

 

 

3,773

 

 

 

460

 

 

 

4,233

 

Total expenditures for additions to long-lived

   assets(5)

 

 

172

 

 

 

46

 

 

 

38

 

 

 

5

 

 

 

261

 

 

 

3

 

 

 

264

 

 

(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)

Revenue from external customers that are categorized as Unallocated and Other reflects royalties, other operating revenues, external shipping and handling fees, the impact of unearned revenue, the removal of 100% of the sales of an equity method affiliate and discounting charges for certain Notes receivable. Details are provided in the table below.

 

 

 

Years Ended September 30

 

 

 

2015

 

 

2014

 

 

2013

 

 

 

(Dollars in millions)

 

Royalties, other operating revenues, the impact of

   unearned revenue, the removal of 100% of the sales

   of an equity method affiliate and discounting charges

   for certain Notes receivable

 

$

9

 

 

$

(7

)

 

$

5

 

Shipping and handling fees

 

 

90

 

 

 

111

 

 

 

102

 

Total

 

$

99

 

 

$

104

 

 

$

107

 

 

(3)

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

 

 

 

Years Ended September 30

 

 

 

2015

 

 

2014

 

 

2013

 

 

 

(Dollars in millions)

 

Interest expense

 

$

(53

)

 

$

(55

)

 

$

(62

)

Total certain items, pre-tax(a)

 

 

(617

)

 

 

(28

)

 

 

(54

)

Equity in earnings of affiliated companies, net of tax(b)

 

 

(4

)

 

 

—

 

 

 

(11

)

Unallocated corporate costs(c)

 

 

(46

)

 

 

(54

)

 

 

(48

)

General unallocated expense(d)

 

 

11

 

 

 

(2

)

 

 

(1

)

Total

 

$

(709

)

 

$

(139

)

 

$

(176

)

 

(a)

Certain items are items that management does not consider representative of operating segment results and they are, therefore, excluded from Segment EBIT. Certain items, pre-tax for fiscal 2015 include $562 million related to goodwill and long-lived asset impairment charges for the Purification Solutions business (refer to Note G), $21 million related to global restructuring activities (Refer to Note P), $5 million for acquisition and integration-related charges, $21 million related to employee benefit plan settlement and other charges (refer to note N), and $2 million related to foreign currency loss on revaluations, and $6 million related to an inventory reserve adjustment (refer to Note E). Certain items, pre-tax, for fiscal 2014 primarily include $29 million related to global restructuring activities, $7 million for acquisition and integration-related charges, $18 million for legal and environmental matters and reserves and $3 million of certain foreign currency gains recorded by foreign subsidiaries offset by 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 fiscal 2013 primarily include $35 million related to global restructuring activities, $21 million for acquisition and integration-related charges (consisting of $10 million for certain other one-time integration costs and $11 million of additional charges related to acquisition accounting adjustments for the acquired inventory) and $1 million for legal and environmental matters and reserves offset by $3 million of certain foreign currency gains recorded by foreign subsidiaries.

(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 operations before taxes.

(c)

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

(d)

General unallocated expense 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.

(4)

Unallocated and Other assets includes cash, marketable securities, cost investments, income taxes receivable, deferred taxes, headquarters’ assets, and current and non-current assets held for sale.

(5)

Expenditures for additions to long-lived assets include total equity and other investments (including available-for-sale securities) and property, plant and equipment.
Revenues from External Customers and Long-Lived Asset Information by Geographic Area

Revenues from external customers and long-lived asset information by geographic area are summarized as follows:

 

 

 

United States

 

 

China

 

 

The

Netherlands

 

 

Other Foreign

Countries

 

 

Consolidated

Total

 

 

 

(Dollars in millions)

 

Years Ended September 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

705

 

 

$

548

 

 

$

176

 

 

$

1,442

 

 

$

2,871

 

Net property, plant and equipment

 

$

480

 

 

$

311

 

 

$

157

 

 

$

435

 

 

$

1,383

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

847

 

 

$

628

 

 

$

220

 

 

$

1,952

 

 

$

3,647

 

Net property, plant and equipment

 

$

496

 

 

$

355

 

 

$

197

 

 

$

533

 

 

$

1,581

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

818

 

 

$

558

 

 

$

224

 

 

$

1,856

 

 

$

3,456

 

Net property, plant and equipment

 

$

488

 

 

$

385

 

 

$

211

 

 

$

516

 

 

$

1,600