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Financial Information by Segment (Tables)
 6 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Schedule of Performance Segment

The net sales from each of these businesses for the three and six months ended March 31, 2018 and 2017 were as follows:

 

 

 

Three Months Ended March 31

 

 

Six Months Ended March 31

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(In millions)

 

Specialty Carbons and Formulations

 

$

193

 

 

$

162

 

 

$

353

 

 

$

300

 

Metal Oxides

 

 

75

 

 

 

66

 

 

 

144

 

 

 

133

 

Total Performance Chemicals

 

$

268

 

 

$

228

 

 

$

497

 

 

$

433

 

 
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 March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

454

 

 

$

268

 

 

$

66

 

 

$

6

 

 

$

794

 

 

$

24

 

 

$

818

 

Income (loss) from continuing operations

   before income taxes(3)

 

$

79

 

 

$

57

 

 

$

(6

)

 

$

(3

)

 

$

127

 

 

$

(298

)

 

$

(171

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

352

 

 

$

228

 

 

$

67

 

 

$

7

 

 

$

654

 

 

$

24

 

 

$

678

 

Income (loss) from continuing operations

   before income taxes(3)

 

$

54

 

 

$

51

 

 

$

2

 

 

$

—

 

 

$

107

 

 

$

(29

)

 

$

78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended March 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

841

 

 

$

497

 

 

$

136

 

 

$

12

 

 

$

1,486

 

 

$

52

 

 

$

1,538

 

Income (loss) from continuing operations

   before income taxes(3)

 

$

141

 

 

$

104

 

 

$

—

 

 

$

(5

)

 

$

240

 

 

$

(319

)

 

$

(79

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended March 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

647

 

 

$

433

 

 

$

136

 

 

$

18

 

 

$

1,234

 

 

$

55

 

 

$

1,289

 

Income (loss) from continuing operations

   before income taxes(3)

 

$

94

 

 

$

100

 

 

$

6

 

 

$

2

 

 

$

202

 

 

$

(49

)

 

$

153

 

 

(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 Statement 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:

 

 

 

Three Months Ended March 31

 

 

Six Months Ended March 31

 

 

 

2018

 

 

2017

 

 

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

 

$

(9

)

 

$

(6

)

 

$

(8

)

 

$

(2

)

Shipping and handling fees

 

 

33

 

 

 

30

 

 

 

60

 

 

 

57

 

Total

 

$

24

 

 

$

24

 

 

$

52

 

 

$

55

 

 

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

 

 

 

Three Months Ended March 31

 

 

Six Months Ended March 31

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

 

(In millions)

 

Interest expense

 

$

(14

)

 

$

(13

)

 

$

(27

)

 

$

(26

)

Certain items (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purification Solutions goodwill and long-lived assets

   impairment charge

 

 

(254

)

 

 

—

 

 

 

(254

)

 

 

—

 

Inventory reserve adjustment

 

 

(13

)

 

 

—

 

 

 

(13

)

 

 

—

 

Global restructuring activities

 

 

9

 

 

 

(2

)

 

 

8

 

 

 

(2

)

Legal and environmental matters and reserves

 

 

(5

)

 

 

2

 

 

 

(6

)

 

 

2

 

Acquisition and integration-related charges

 

 

(1

)

 

 

—

 

 

 

(1

)

 

 

—

 

Gains (losses) on sale of investments

 

 

—

 

 

 

—

 

 

 

10

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

(1

)

 

 

—

 

             Total certain items, pre-tax

 

 

(264

)

 

 

—

 

 

 

(257

)

 

 

—

 

Unallocated corporate costs(b)

 

 

(16

)

 

 

(14

)

 

 

(30

)

 

 

(26

)

General unallocated income (expense)(c)

 

 

(3

)

 

 

(1

)

 

 

(3

)

 

 

6

 

Less: Equity in earnings of affiliated

   companies, net of tax(d)

 

 

1

 

 

 

1

 

 

 

2

 

 

 

3

 

Total

 

$

(298

)

 

$

(29

)

 

$

(319

)

 

$

(49

)

 

 

(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. Fiscal 2017 amounts have been recast to reflect the retrospective application of the Company’s election to change its inventory valuation method of accounting for its U.S. carbon black inventories from the LIFO method to the FIFO method, which resulted in a decrease in General unallocated income (expense) of $2 million for the six months ended March 31, 2017.

 

(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.