Financial Information by Segment & Geographic Area (Tables)

12 Months Ended

Sep. 30, 2021

The net sales from each of these businesses for fiscal 2021, 2020 and 2019 are as follows:

	Years Ended September 30
	2021		2020		2019
	(In millions)
Performance Additives	$	796	$	645	$	694
Formulated Solutions		352		288		301
Total Performance Chemicals	$	1,148	$	933	$	995

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)
2021
Revenues from external customers⁽³⁾	$	1,781		$	1,148	$	257	$	—	$	3,186	$	223		$	3,409
Depreciation and amortization	$	70		$	73	$	16	$	—	$	159	$	1		$	160
Equity in earnings of affiliated companies	$	—		$	2	$	2	$	—	$	4	$	(1	)	$	3
Income (loss) from continuing operations before income taxes⁽⁴⁾	$	329		$	211	$	10	$	—	$	550	$	(144	)	$	406
Assets⁽⁵⁾	$	1,421		$	1,325	$	283	$	—	$	3,029	$	277		$	3,306
Total expenditures for additions to long-lived assets⁽⁶⁾	$	104		$	80	$	9	$	—	$	193	$	5		$	198
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

⁽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, discounting charges for certain Notes receivable, and indirect tax settlement credits. Details are provided in the table below.

	Years Ended September 30
	2021			2020			2019
	(In millions)
Shipping and handling fees	$	153		$	113		$	130
By-product sales		73			62			76
Other		(3	)		(3	)		(13	)
Total	$	223		$	172		$	193

⁽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
	2021			2020			2019
	(In millions)
Interest expense	$	(49	)	$	(53	)	$	(59	)
Certain items:^(a)
Indirect tax settlement credits	$	12		$	3		$	-
Legal and environmental matters and reserves (Note T)		(25	)		(54	)		(21	)
Global restructuring activities (Note O)		(11	)		(19	)		(16	)
Acquisition and integration-related charges (Note C)		(5	)		(5	)		(6	)
Employee benefit plan settlement and other charges (Note M)		(4	)		(10	)		1
Marshall Mine loss on sale and asset impairment charge (Note D)		—			(129	)		—
Inventory reserve adjustment		—			(2	)		—
Specialty Fluids loss on sale and asset impairment charge (Note D)		—			(1	)		(29	)
Equity affiliate investment impairment charge		—			—			(11	)
Executive transition costs		—			—			(1	)
Other certain items		(1	)		(1	)		(4	)
Total certain items, pre-tax		(34	)		(218	)		(87	)
Unallocated corporate costs^(b)		(58	)		(41	)		(50	)
General unallocated income (expense)^(c)		—			(1	)		8
Less: Equity in earnings of affiliated companies, net of tax^(d)		3			3			1
Total	$	(144	)	$	(316	)	$	(189	)

^(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.

Revenue from External Customers and Property, Plant and Equipment 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
	2021		2020		2019
	(In millions)
United States	$	668	$	581	$	702
China		858		598		738
Other countries		1,883		1,435		1,897
Total	$	3,409	$	2,614	$	3,337

Property, plant and equipment attributable to an individual country, other than the U.S. and China, were not material for disclosure. Property, plant and equipment information by individual country is summarized as follows:

	Years Ended September 30
	2021		2020
	(In millions)
United States	$	513	$	493
China		333		295
Other countries		530		526
Total	$	1,376	$	1,314

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, 2021
	Reinforcement Materials		Performance Chemicals		Purification Solutions		Consolidated Total
	(In millions)
Americas	$	699	$	310	$	110	$	1,119
Asia Pacific		745		485		34		1,264
Europe, Middle East and Africa		337		353		113		803
Segment revenues from external customers		1,781		1,148		257		3,186
Unallocated and other								223
Net sales and other operating revenues							$	3,409

	Year Ended September 30, 2020
	Reinforcement Materials		Performance Chemicals		Purification Solutions		Specialty Fluids		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