L. Restructuring

Cabot’s restructuring activities were recorded in the Consolidated Statements of Operations in the three and nine months ended June 30, 2018 and 2017 as follows:

	Three Months Ended June 30				Nine Months Ended June 30
	2018		2017		2018			2017
	(In millions)
Cost of sales	$	1	$	1	$	(8	)	$	2
Selling and administrative expenses		—		—		1			1
Total	$	1	$	1	$	(7	)	$	3

Details of all restructuring activities and the related reserves during the three and nine months ended June 30, 2018 were as follows:

	Severance and Employee Benefits			Environmental Remediation			Asset Sales			Asset Impairment and Accelerated Depreciation			Other			Total
	(In millions)
Reserve at September 30, 2017	$	1		$	2		$	—		$	—		$	—		$	3
Charges		—			—			—			—			1			1
Accrual for deposit on sale of land		—			—			(4	)		—			—			(4	)
Cash received (paid)		—			—			4			—			(1	)		3
Reserve at December 31, 2017	$	1		$	2		$	—		$	—		$	—		$	3
Charges (gain)		1			—			(11	)		1			—			(9	)
Costs charged against assets / (liabilities)		—			—			2			(1	)		—			1
Cash (paid) received		(1	)		—			9			—			—			8
Reserve at March 31, 2018	$	1		$	2		$	—		$	—		$	—		$	3
Charges (gain)		—			1			—			—			—			1
Accrual for deposit on sale of land rights		—			—			(3	)		—			—			(3	)
Cash (paid) received		(1	)		(1	)		3			—			—			1
Reserve at June 30, 2018	$	—		$	2		$	—		$	—		$	—		$	2

Cabot’s severance and employee benefit reserves and other closure related reserves are reflected in Accounts payable and accrued liabilities on the Company’s Consolidated Balance Sheets. Cabot’s environmental remediation reserves related to restructuring activities are reflected in Other liabilities on the Company’s Consolidated Balance Sheets.

Marshall, Texas Plan

In October 2017, Cabot indefinitely idled three of the seven production units at its activated carbon manufacturing facility in Marshall, Texas. The decision, affecting approximately 40 local employees, was driven by the need to better match the business’ production capacity and cost structure with the current demand for powdered activated carbon in North America. Total costs related to this plan are expected to be approximately $1 million, comprised of approximately $1 million of non-cash accelerated depreciation costs and less than $1 million of severance costs. The Company recorded charges of approximately $1 million in the nine months ended June 30, 2018, comprised mainly of accelerated depreciation charges. No further charges are anticipated related to this plan.

2016 Plan

In October 2015, in response to challenging macroeconomic conditions, the Company announced its intention to restructure its operations subject to local consultation requirements and processes in certain locations. Cabot’s plan resulted in the termination of employment for approximately 300 employees across the Company’s global locations.

Most of the charges and cash outlays related to this plan were recorded in fiscal 2016. The Company recorded pre-tax cash charges related to plan of approximately $1 million in the first nine months of both fiscal 2018 and 2017, and expects to record approximately $1 million of cash charges in the remainder of fiscal 2018. The charges recorded and anticipated are comprised of severance, employee benefits and other transition costs. As of June 30, 2018, Cabot has less than $1 million of accrued severance charges in the Consolidated Balance Sheets related to these actions.

Additionally, in fiscal 2016 Cabot closed its carbon black manufacturing facility in Merak, Indonesia to consolidate production in Asia using the Company’s Cilegon, Indonesia and other Asian and global carbon black production sites to meet regional demand. The decision was driven by the financial performance at the Merak facility in the years preceding the closure. Manufacturing operations ceased at the end of January 2016.

The Company completed the sale of the land in Merak on which the facility was located in the second quarter of fiscal 2018. The Company received a refundable deposit of $4 million of cash in the first quarter of fiscal 2018, which was recorded in Accounts payable and accrued liabilities on the Consolidated Balance Sheets as of December 31, 2017. An additional payment of approximately $9 million was received in the second quarter of fiscal 2018, resulting in a net gain of approximately $11 million. The Company recorded net charges of less than $1 million in the nine months ended June 30, 2017 primarily for site clearing and demolition costs related to the Merak closure.

As of June 30, 2018, Cabot has less than $1 million of accrued severance costs in the Consolidated Balance Sheets related to the Merak facility closure.

Other Actions

Cabot has recorded approximately $1 million of severance charges in the nine months ended June 30, 2018, nearly all of which has been paid in the first nine months of fiscal 2018.

Additionally, in previous years, the Company entered into other various restructuring actions that have been substantially completed, other than the sale of land rights in Thane, India and environmental remediation activities in Berre, France that remain to be completed.

The Company entered into an agreement to sell the land rights in Thane, India. The sale is anticipated to be completed for consideration of approximately $32 million and is anticipated to result in a net pre-tax gain of approximately $32 million upon completion of the transaction. The Company received a deposit of $3 million in cash in the first quarter of fiscal 2015 and another deposit of $3 million in cash in the third quarter of fiscal 2018 related to this transaction that are recorded in Accounts payable and accrued liabilities on the Consolidated Balance Sheets as the sale has not been consummated.