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Financial Information by Segment & Geographic Area (Tables)
 12 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Schedule of Performance Segment The net sales from each of these businesses for fiscal 2018, 2017 and 2016 are as follows:

 

 

 

Years Ended September 30

 

 

 

2018

 

 

2017

 

 

2016

 

 

 

(In millions)

 

Specialty Carbons and Formulations

 

$

731

 

 

$

623

 

 

$

578

 

Metal Oxides

 

 

297

 

 

 

285

 

 

 

287

 

Total Performance Chemicals

 

$

1,028

 

 

$

908

 

 

$

865

 
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)

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

1,774

 

 

$

1,028

 

 

$

279

 

 

$

45

 

 

$

3,126

 

 

$

116

 

 

$

3,242

 

Depreciation and amortization

 

$

70

 

 

$

48

 

 

$

32

 

 

$

2

 

 

$

152

 

 

$

(3

)

 

$

149

 

Equity in earnings of affiliated companies

 

$

1

 

 

$

—

 

 

$

6

 

 

$

—

 

 

$

7

 

 

$

(5

)

 

$

2

 

Income (loss) from continuing operations

   before income taxes(3)

 

$

279

 

 

$

200

 

 

$

(7

)

 

$

8

 

 

$

480

 

 

$

(363

)

 

$

117

 

Assets(4)

 

$

1,319

 

 

$

919

 

 

$

460

 

 

$

178

 

 

$

2,876

 

 

$

368

 

 

$

3,244

 

Total expenditures for additions to long-lived

   assets(5)

 

$

97

 

 

$

94

 

 

$

16

 

 

$

17

 

 

$

224

 

 

$

5

 

 

$

229

 

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

 

 

$

(110

)

 

$

299

 

Assets(4)

 

$

1,189

 

 

$

708

 

 

$

741

 

 

$

140

 

 

$

2,778

 

 

$

560

 

 

$

3,338

 

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

 

 

$

(179

)

 

$

191

 

Assets(4)

 

$

1,093

 

 

$

629

 

 

$

736

 

 

$

139

 

 

$

2,597

 

 

$

455

 

 

$

3,052

 

Total expenditures for additions to long-lived

   assets(5)

 

$

46

 

 

$

33

 

 

$

30

 

 

$

1

 

 

$

110

 

 

$

2

 

 

$

112

 

 

(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

 

 

 

2018

 

 

2017

 

 

2016

 

 

 

(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

 

 

$

11

 

 

$

13

 

Shipping and handling fees

 

 

105

 

 

 

95

 

 

 

88

 

Total

 

$

116

 

 

$

106

 

 

$

101

 

 

(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

 

 

 

2018

 

 

2017

 

 

2016

 

 

 

(In millions)

 

Interest expense

 

$

(54

)

 

$

(53

)

 

$

(54

)

Certain items:(a)

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of goodwill and long-lived assets of Purification

   Solutions (Note F)

 

 

(254

)

 

 

—

 

 

 

—

 

Global restructuring activities (Note O)

 

 

30

 

 

 

(3

)

 

 

(47

)

Legal and environmental matters and reserves

 

 

(16

)

 

 

1

 

 

 

(17

)

Inventory reserve adjustment (Note D)

 

 

(13

)

 

 

—

 

 

 

—

 

Gains (losses) on sale of investments

 

 

10

 

 

 

—

 

 

 

—

 

Acquisition and integration-related charges

 

 

(2

)

 

 

—

 

 

 

—

 

Executive transition costs

 

 

(2

)

 

 

—

 

 

 

(6

)

Non-recurring gain (loss) on foreign exchange

 

 

—

 

 

 

—

 

 

 

(11

)

Other certain items

 

 

(1

)

 

 

(1

)

 

 

—

 

Total certain items, pre-tax

 

 

(248

)

 

 

(3

)

 

 

(81

)

Unallocated corporate costs(b)

 

 

(61

)

 

 

(50

)

 

 

(45

)

General unallocated income (expense)(c)

 

 

2

 

 

 

3

 

 

 

4

 

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

 

 

2

 

 

 

7

 

 

 

3

 

Total

 

$

(363

)

 

$

(110

)

 

$

(179

)

 

(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, interest income, dividend income, 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 and fiscal 2016 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 General unallocated income (expense) increasing by $11 million and decreasing by $3 million, respectively, for the years ended September 30, 2017 and 2016.

(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.

(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

 

 

Other Foreign

Countries

 

 

Consolidated

Total

 

 

 

(In millions)

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

676

 

 

$

752

 

 

$

1,814

 

 

$

3,242

 

Net property, plant and equipment

 

$

493

 

 

$

270

 

 

$

533

 

 

$

1,296

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

645

 

 

$

573

 

 

$

1,499

 

 

$

2,717

 

Net property, plant and equipment

 

$

493

 

 

$

261

 

 

$

551

 

 

$

1,305

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers

 

$

605

 

 

$

482

 

 

$

1,324

 

 

$

2,411

 

Net property, plant and equipment

 

$

490

 

 

$

266

 

 

$

534

 

 

$

1,290