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Financial Information by Segment & Geographic Area (Tables)
 12 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Schedule of Performance Segment

The net sales from each of these businesses for fiscal 2017, 2016 and 2015 are as follows:

 

 

 

Years Ended September 30

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

(In millions)

 

Specialty Carbons and Formulations

 

$

623

 

 

$

578

 

 

$

630

 

Metal Oxides

 

 

285

 

 

 

287

 

 

 

297

 

Total Performance Chemicals

 

$

908

 

 

$

865

 

 

$

927

 

 
Financial Information by Reportable Segment

Financial information by reportable segment is as follows:

 

Years Ended September 30

 

Reinforcement

Materials

 

 

Performance

Chemicals

 

 

Purification

Solutions

 

 

Specialty Fluids

 

 

Segment

Total

 

 

Unallocated

and

Other(1), (3)

 

 

Consolidated

Total

 

 

 

(In millions)

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

1,381

 

 

$

908

 

 

$

281

 

 

$

41

 

 

$

2,611

 

 

$

106

 

 

$

2,717

 

Depreciation and amortization

 

$

69

 

 

$

46

 

 

$

39

 

 

$

2

 

 

$

156

 

 

$

(1

)

 

$

155

 

Equity in earnings of affiliated companies

 

$

6

 

 

$

—

 

 

$

6

 

 

$

—

 

 

$

12

 

 

$

(5

)

 

$

7

 

Income (loss) from continuing operations

   before income taxes(3)

 

$

193

 

 

$

201

 

 

$

6

 

 

$

9

 

 

$

409

 

 

$

(121

)

 

$

288

 

Assets(4)

 

$

1,189

 

 

$

708

 

 

$

741

 

 

$

140

 

 

$

2,778

 

 

$

536

 

 

$

3,314

 

Total expenditures for additions to long-lived

   assets(5)

 

$

68

 

 

$

47

 

 

$

19

 

 

$

5

 

 

$

139

 

 

$

8

 

 

$

147

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

1,108

 

 

$

865

 

 

$

290

 

 

$

47

 

 

$

2,310

 

 

$

101

 

 

$

2,411

 

Depreciation and amortization

 

$

74

 

 

$

48

 

 

$

39

 

 

$

3

 

 

$

164

 

 

$

(3

)

 

$

161

 

Equity in earnings of affiliated companies

 

$

—

 

 

$

1

 

 

$

7

 

 

$

—

 

 

$

8

 

 

$

(5

)

 

$

3

 

Income (loss) from continuing operations

   before income taxes(3)

 

$

137

 

 

$

225

 

 

$

(5

)

 

$

13

 

 

$

370

 

 

$

(176

)

 

$

194

 

Assets(4)

 

$

1,093

 

 

$

629

 

 

$

736

 

 

$

139

 

 

$

2,597

 

 

$

438

 

 

$

3,035

 

Total expenditures for additions to long-lived

   assets(5)

 

$

46

 

 

$

33

 

 

$

30

 

 

$

1

 

 

$

110

 

 

$

2

 

 

$

112

 

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 income taxes(3)

 

$

143

 

 

$

178

 

 

$

5

 

 

$

6

 

 

$

332

 

 

$

(709

)

 

$

(377

)

Assets(4)

 

$

1,220

 

 

$

625

 

 

$

789

 

 

$

119

 

 

$

2,753

 

 

$

310

 

 

$

3,063

 

Total expenditures for additions to long-lived

   assets(5)

 

$

44

 

 

$

29

 

 

$

48

 

 

$

16

 

 

$

137

 

 

$

4

 

 

$

141

 

 

(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 and discounting charges for certain Notes receivable. Details are provided in the table below.

 

 

 

Years Ended September 30

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

(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

 

$

11

 

 

$

13

 

 

$

9

 

Shipping and handling fees

 

 

95

 

 

 

88

 

 

 

90

 

Total

 

$

106

 

 

$

101

 

 

$

99

 

 

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

 

 

 

Years Ended September 30

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

(In millions)

 

Interest expense

 

$

(53

)

 

$

(54

)

 

$

(53

)

Certain Items:(a)

 

 

 

 

 

 

 

 

 

 

 

 

Global restructuring activities (Note N)

 

 

(3

)

 

 

(47

)

 

 

(21

)

Legal and environmental matters and reserves

 

 

1

 

 

 

(17

)

 

 

—

 

Acquisition and integration-related charges

 

 

—

 

 

 

—

 

 

 

(5

)

Employee benefit plan settlement and other charges (Note L)

 

 

—

 

 

 

—

 

 

 

(21

)

Impairment of goodwill and long-lived assets of Purification

   Solutions (Note E)

 

 

—

 

 

 

—

 

 

 

(562

)

Non-recurring gain (loss) on foreign exchange

 

 

—

 

 

 

(11

)

 

 

(2

)

Inventory adjustment (Note C)

 

 

—

 

 

 

—

 

 

 

(6

)

Executive transition costs

 

 

—

 

 

 

(6

)

 

 

—

 

Other certain items

 

 

(1

)

 

 

—

 

 

 

—

 

Total certain items, pre-tax

 

 

(3

)

 

 

(81

)

 

 

(617

)

Unallocated corporate costs(b)

 

 

(50

)

 

 

(45

)

 

 

(46

)

General unallocated income (expense)(c)

 

 

(8

)

 

 

7

 

 

 

11

 

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

 

 

7

 

 

 

3

 

 

 

4

 

Total

 

$

(121

)

 

$

(176

)

 

$

(709

)

 

(a)Certain items are items that management does not consider representative of operating segment results and they are, therefore, excluded from Segment EBIT.

(b)Unallocated corporate costs 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 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.

(d)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.

(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. In fiscal 2017, the Company adopted two new accounting standards that impact the presentation of debt issuance costs and the classification of deferred taxes on the Consolidated Balance Sheets. These new standards were applied retrospectively and fiscal 2016 and fiscal 2015 balances have been updated as discussed in Note A.

(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:

 

Years Ended September 30

 

U.S.

 

 

China

 

 

The

Netherlands

 

 

Other Foreign

Countries

 

 

Consolidated

Total

 

 

 

(In millions)

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

645

 

 

$

573

 

 

$

162

 

 

$

1,337

 

 

$

2,717

 

Net property, plant and equipment

 

$

493

 

 

$

261

 

 

$

161

 

 

$

390

 

 

$

1,305

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

605

 

 

$

482

 

 

$

162

 

 

$

1,162

 

 

$

2,411

 

Net property, plant and equipment

 

$

490

 

 

$

266

 

 

$

152

 

 

$

382

 

 

$

1,290

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

705

 

 

$

548

 

 

$

176

 

 

$

1,442

 

 

$

2,871

 

Net property, plant and equipment

 

$

480

 

 

$

311

 

 

$

157

 

 

$

435

 

 

$

1,383