Inventories

12 Months Ended

Sep. 30, 2018

Inventory Disclosure [Abstract]

Inventories

Note D. Inventories

Inventories, net of obsolete, unmarketable and slow moving reserves, are as follows:

	September 30
	2018		2017
	(In millions)
Raw materials	$	129	$	93
Work in process		3		2
Finished goods		329		293
Other		50		45
Total	$	511	$	433

Effective October 1, 2017, the Company changed its method of accounting for its U.S. carbon black inventories from the LIFO method to the FIFO method. Total U.S. inventories accounted for utilizing the LIFO cost flow assumption represented 7% of the Company’s total worldwide inventories as of September 30, 2017. Refer to the discussion under the heading “Inventories” in Note A for details on the impact of the change on the consolidated financial statements. Other inventory is comprised of certain spare parts and supplies.

Cabot periodically reviews inventory for both obsolescence and loss of value. In this review, Cabot makes assumptions about the future demand for and market value of the inventory and, based on these assumptions, estimates the amount of obsolete, unmarketable or slow moving inventory. At September 30, 2018 and 2017, total inventory reserves were $38 million and $19 million, respectively. During fiscal year 2018, the Company recorded a lower of cost or market charge in the amount of $13 million related to its Purification Solutions inventory held at several sites in North America and Europe.