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Financial Information by Segment (Tables)
 9 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Schedule of Performance Segment

The net sales from each of these businesses for the three and nine months ended June 30, 2016 and 2015 are as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(Dollars in millions)

 

Specialty Carbons and Formulations

 

$

152

 

 

$

159

 

 

$

437

 

 

$

478

 

Metal Oxides

 

 

76

 

 

 

75

 

 

 

214

 

 

 

222

 

Total Performance Chemicals

 

$

228

 

 

$

234

 

 

$

651

 

 

$

700

 

 
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

 

 

 

(Dollars in millions)

 

Three Months Ended June 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

270

 

 

$

228

 

 

$

77

 

 

$

19

 

 

$

594

 

 

$

27

 

 

$

621

 

Income (loss) from continuing operations

   before taxes(3)

 

$

35

 

 

$

59

 

 

$

—

 

 

$

10

 

 

$

104

 

 

$

(30

)

 

$

74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

351

 

 

$

234

 

 

$

72

 

 

$

12

 

 

$

669

 

 

$

25

 

 

$

694

 

Income (loss) from continuing operations

   before taxes(3)

 

$

32

 

 

$

48

 

 

$

3

 

 

$

3

 

 

$

86

 

 

$

(595

)

 

$

(509

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended June 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

819

 

 

$

651

 

 

$

210

 

 

$

32

 

 

$

1,712

 

 

$

80

 

 

$

1,792

 

Income (loss) from continuing operations

   before taxes(3)

 

$

95

 

 

$

167

 

 

$

(7

)

 

$

8

 

 

$

263

 

 

$

(135

)

 

$

128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended June 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

1,169

 

 

$

700

 

 

$

219

 

 

$

36

 

 

$

2,124

 

 

$

76

 

 

$

2,200

 

Income (loss) from continuing operations

   before taxes(3)

 

$

112

 

 

$

129

 

 

$

3

 

 

$

8

 

 

$

252

 

 

$

(671

)

 

$

(419

)

 

(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 revenues from external customers” reflects royalties, other operating revenues, external shipping and handling costs, 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:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(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

 

$

—

 

 

$

(5

)

 

$

—

 

 

$

(9

)

Shipping and handling fees

 

 

27

 

 

 

30

 

 

 

80

 

 

 

85

 

Total

 

$

27

 

 

$

25

 

 

$

80

 

 

$

76

 

 

(3)

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

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(Dollars in millions)

 

Interest expense

 

$

(13

)

 

$

(13

)

 

$

(40

)

 

$

(40

)

Total certain items, pre-tax(a)

 

 

(6

)

 

 

(567

)

 

 

(63

)

 

 

(599

)

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

 

 

(1

)

 

 

(1

)

 

 

(2

)

 

 

(4

)

Unallocated corporate costs(c)

 

 

(11

)

 

 

(12

)

 

 

(36

)

 

 

(35

)

General unallocated income (expense)(d)

 

 

1

 

 

 

(2

)

 

 

6

 

 

 

7

 

Total

 

$

(30

)

 

$

(595

)

 

$

(135

)

 

$

(671

)

 

 

(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. Certain items, pre-tax, for the three months ended June 30, 2016 include charges of $2 million related to global restructuring activities, $1 million related to legal and environmental matters and reserves, and $3 million related to executive transition costs. Certain items, pre-tax, for the nine months ended June 30, 2016 include charges of $45 million related to global restructuring activities, $11 million related to net foreign currency impacts related to a loss on the devaluation of the Argentine peso, which was partially offset by a gain on the devaluation of the Venezuelan bolivar, $4 million related to legal and environmental matters and reserves, and $3 million related to executive transition costs. Certain items, pre-tax, for the three months ended June 30, 2015 include charges of $563 million related to goodwill and long-lived asset impairment charges for the Purification Solutions business, $2 million related to global restructuring activities, and $2 million related to foreign currency loss on revaluations. Certain items, pre-tax, for the nine months ended June 30, 2015 include charges of $563 million related to goodwill and long-lived asset impairment charges for the Purification Solutions business, $14 million related to global restructuring activities, $2 million for acquisition and integration-related charges, $18 million related to an employee benefit plan settlement charge, and $2 million related to foreign currency loss on revaluations.

 

(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 income (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.