Purification Solutions Goodwill and Long-Lived Assets Impairment Charges

12 Months Ended

Sep. 30, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Purification Solutions Goodwill and Long-Lived Assets Impairment Charges

Note G. Purification Solutions Goodwill and Long-Lived Assets Impairment Charges

During the second quarter of fiscal 2018, the Company performed a long-lived asset impairment test and quantitative goodwill impairment test, which determined that the estimated fair value of the Purification Solutions reporting unit was lower than the reporting unit's carrying value. The Company recorded impairment charges relating to the goodwill and long-lived assets of the Purification Solutions reporting unit, and an associated deferred tax benefit, in the Consolidated Statements of Operations as follows:

	Three Months Ended March 31, 2018
	(In millions)
Purification Solutions goodwill impairment charge	$	92
Purification Solutions long-lived assets impairment charge		162
Benefit for income taxes		(30	)
Impairment charges, after tax	$	224

Prior to determining the goodwill impairment charge, the Company recorded an inventory reserve adjustment of $13 million in Cost of sales in the Consolidated Statements of Operations.

Cabot will continue to monitor for events or changes in business circumstances that may indicate that the remaining carrying value of the asset group may not be recoverable.