Financial Information by Segment & Geographic Area (Tables)

12 Months Ended

Sep. 30, 2020

The net sales from each of these businesses for fiscal 2020, 2019 and 2018 are as follows:

	Years Ended September 30
	2020		2019		2018
	(In millions)
Performance Additives	$	645	$	694	$	707
Formulated Solutions		288		301		321
Total Performance Chemicals	$	933	$	995	$	1,028

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⁽¹⁾		Unallocated and Other^(2), ⁽⁴⁾			Consolidated Total
	(In millions)
2020
Revenues from external customers⁽³⁾	$	1,256		$	933	$	253		$	—	$	2,442	$	172		$	2,614
Depreciation and amortization	$	68		$	64	$	24		$	—	$	156	$	2		$	158
Equity in earnings of affiliated companies	$	—		$	1	$	3		$	—	$	4	$	(1	)	$	3
Income (loss) from continuing operations before income taxes⁽⁴⁾	$	162		$	118	$	3		$	—	$	283	$	(316	)	$	(33	)
Assets⁽⁵⁾	$	1,077		$	1,145	$	296		$	—	$	2,518	$	263		$	2,781
Total expenditures for additions to long-lived assets⁽⁶⁾	$	66		$	92	$	8		$	—	$	166	$	3		$	169
2019
Revenues from external customers⁽³⁾	$	1,815		$	995	$	278		$	56	$	3,144	$	193		$	3,337
Depreciation and amortization	$	69		$	51	$	26		$	1	$	147	$	1		$	148
Equity in earnings of affiliated companies	$	(1	)	$	1	$	3		$	—	$	3	$	(2	)	$	1
Income (loss) from continuing operations before income taxes⁽⁴⁾	$	266		$	152	$	2		$	24	$	444	$	(189	)	$	255
Assets⁽⁵⁾	$	1,177		$	1,024	$	436		$	—	$	2,637	$	367		$	3,004
Total expenditures for additions to long-lived assets⁽⁶⁾	$	82		$	148	$	11		$	1	$	242	$	5		$	247
2018
Revenues from external customers⁽³⁾	$	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⁽⁴⁾	$	279		$	200	$	(7	)	$	8	$	480	$	(363	)	$	117
Assets⁽⁵⁾	$	1,319		$	919	$	460		$	178	$	2,876	$	368		$	3,244
Total expenditures for additions to long-lived assets⁽⁶⁾	$	97		$	94	$	16		$	17	$	224	$	5		$	229

⁽¹⁾	Cabot divested its Specialty Fluids business on June 28, 2019. Refer to Note D for the terms of this transaction.

⁽²⁾	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.

⁽³⁾

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
	2020			2019			2018
	(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	$	(3	)	$	(13	)	$	11
Shipping and handling fees		113			130			105
By-product sales^(a)		62			76			—
Total	$	172		$	193		$	116

^(a)

^{As of October 1, 2018, as part of the adoption of the new FASB accounting standard, Revenue from Contracts with Customers, the Company began presenting revenue from by-products produced in manufacturing operations in Net sales and other operating revenues, which in prior years was included as a reduction in Cost of sales.}

⁽⁴⁾

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
	2020			2019			2018
	(In millions)
Interest expense	$	(53	)	$	(59	)	$	(54	)
Certain items:^(a)
Marshall Mine loss on sale and asset impairment charge (Note D)	$	(129	)	$	—		$	—
Legal and environmental matters and reserves (Note U)		(54	)		(21	)		(16	)
Global restructuring activities (Note P)		(19	)		(16	)		30
Employee benefit plan settlement and other charges (Note N)		(10	)		1			—
Acquisition and integration-related charges (Note C)		(5	)		(6	)		(2	)
Inventory reserve adjustment		(2	)		—			(13	)
Specialty Fluids loss on sale and asset impairment charge (Note D)		(1	)		(29	)		—
Equity affiliate investment impairment charge (Note M)		—			(11	)		—
Executive transition costs		—			(1	)		(2	)
Indirect tax settlement credits		3			—			—
Purification Solutions goodwill and long-lived assets impairment charge (Note G)		—			—			(254	)
Gains (losses) on sale of investments		—			—			10
Other certain items		(1	)		(4	)		(1	)
Total certain items, pre-tax		(218	)		(87	)		(248	)
Unallocated corporate costs^(b)		(41	)		(50	)		(61	)
General unallocated income (expense)^(c)		(1	)		8			2
Less: Equity in earnings of affiliated companies, net of tax^(d)		3			1			2
Total	$	(316	)	$	(189	)	$	(363	)

^(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.

^(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.

⁽⁵⁾	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.

⁽⁶⁾	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 attributable to an individual country, other than the U.S. and China, were not material for disclosure. Revenues from external customers by individual country are summarized as follows:

	Years Ended September 30
	2020		2019		2018
	(In millions)
United States	$	581	$	702	$	676
China		598		738		752
Other countries		1,435		1,897		1,814
Total	$	2,614	$	3,337	$	3,242

Long-lived assets attributable to an individual country, other than the U.S. and China, were not material for disclosure. Long-lived asset information by individual country is summarized as follows:

	Years Ended September 30
	2020		2019		2018
	(In millions)
United States	$	493	$	572	$	493
China		295		264		270
Other countries		526		512		533
Total	$	1,314	$	1,348	$	1,296

Revenues from External Customers by Geographic Region

Each of the Company’s segments operate globally. In addition to presenting Revenue from external customers by reportable segment, the following tables further disaggregate Revenue from external customers by geographic region.

	Year Ended September 30, 2020
	Reinforcement Materials		Performance Chemicals		Purification Solutions		Consolidated Total
	(In millions)
Americas	$	490	$	266	$	112	$	868
Asia Pacific		529		368		34		931
Europe, Middle East and Africa		237		299		107		643
Segment revenues from external customers		1,256		933		253		2,442
Unallocated and other								172
Net sales and other operating revenues							$	2,614

	Year Ended September 30, 2019
	Reinforcement Materials		Performance Chemicals		Purification Solutions		Specialty Fluids		Consolidated Total
	(In millions)
Americas	$	688	$	294	$	126	$	6	$	1,114
Asia Pacific		769		353		35		1		1,158
Europe, Middle East and Africa		358		348		117		49		872
Segment revenues from external customers		1,815		995		278		56		3,144
Unallocated and other										193
Net sales and other operating revenues									$	3,337