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Financial Information by Segment & Geographic Area (Tables) | 12 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Financial Information by Reportable Segment | Financial information by reportable segment is as follows:
Years Ended September 30 |  | Reinforcement Materials |  |  | Performance Chemicals |  |  | Purification Solutions(1) |  |  | Segment Total |  |  | Unallocated and Other(2) |  |  | Consolidated Total |
|  | (In millions) |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers(4) |  | $ | 2,563 |  |  | $ | 1,225 |  |  | $ | — |  |  | $ | 3,788 |  |  | $ | 143 |  |  | $ | 3,931 |
Depreciation and amortization |  | $ | 70 |  |  | $ | 72 |  |  | $ | — |  |  | $ | 142 |  |  | $ | 2 |  |  | $ | 144 |
Equity in earnings of affiliated companies |  | $ | 2 |  |  | $ | 3 |  |  | $ | — |  |  | $ | 5 |  |  | $ | — |  |  | $ | 5 |
Income (loss) from operations before income taxes(5) |  | $ | 482 |  |  | $ | 125 |  |  | $ | — |  |  | $ | 607 |  |  | $ | (156 | ) |  | $ | 451 |
Assets(6) |  | $ | 1,632 |  |  | $ | 1,473 |  |  | $ | — |  |  | $ | 3,105 |  |  | $ | 499 |  |  | $ | 3,604 |
Total expenditures for additions to long-lived assets(7) |  | $ | 149 |  |  | $ | 108 |  |  | $ | — |  |  | $ | 257 |  |  | $ | 8 |  |  | $ | 265 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers(3)(4) |  | $ | 2,673 |  |  | $ | 1,388 |  |  | $ | 97 |  |  | $ | 4,158 |  |  | $ | 163 |  |  | $ | 4,321 |
Depreciation and amortization |  | $ | 70 |  |  | $ | 72 |  |  | $ | 3 |  |  | $ | 145 |  |  | $ | 1 |  |  | $ | 146 |
Equity in earnings of affiliated companies |  | $ | 4 |  |  | $ | 5 |  |  | $ | 1 |  |  | $ | 10 |  |  | $ | — |  |  | $ | 10 |
Income (loss) from operations before income taxes(5) |  | $ | 408 |  |  | $ | 234 |  |  | $ | — |  |  | $ | 642 |  |  | $ | (307 | ) |  | $ | 335 |
Assets(6) |  | $ | 1,691 |  |  | $ | 1,458 |  |  | $ | — |  |  | $ | 3,149 |  |  | $ | 376 |  |  | $ | 3,525 |
Total expenditures for additions to long-lived assets(7) |  | $ | 114 |  |  | $ | 100 |  |  | $ | 3 |  |  | $ | 217 |  |  | $ | 4 |  |  | $ | 221 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers(3)(4) |  | $ | 1,838 |  |  | $ | 1,156 |  |  | $ | 257 |  |  | $ | 3,251 |  |  | $ | 158 |  |  | $ | 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 operations before income taxes(5) |  | $ | 329 |  |  | $ | 211 |  |  | $ | 10 |  |  | $ | 550 |  |  | $ | (144 | ) |  | $ | 406 |
Assets(6) |  | $ | 1,421 |  |  | $ | 1,325 |  |  | $ | 283 |  |  | $ | 3,029 |  |  | $ | 277 |  |  | $ | 3,306 |
Total expenditures for additions to long-lived assets(7) |  | $ | 104 |  |  | $ | 80 |  |  | $ | 9 |  |  | $ | 193 |  |  | $ | 5 |  |  | $ | 198 |
(1) Cabot divested its Purification Solutions business on March 1, 2022. 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) Beginning in fiscal 2023, the Company began allocating energy center revenue to the applicable segment’s revenue. The Company recast prior period financial information to conform to the new presentation. The allocation of such revenue resulted in an increase of $98 million and $57 million in the Reinforcement Materials segment and $16 million and $8 million in the Performance Chemicals segment, with an offsetting decrease in Unallocated and Other revenue for fiscal 2022 and fiscal 2021, respectively. There was no impact to Consolidated Total Revenue from external customers. (4) 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 are summarized as follows:
|  | Years Ended September 30 |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (In millions) |
Shipping and handling fees |  | $ | 132 |  |  | $ | 162 |  |  | $ | 153 |
By-product sales |  |  | 5 |  |  |  | 8 |  |  |  | 8 |
Other |  |  | 6 |  |  |  | (7 | ) |  |  | (3 | )
Total |  | $ | 143 |  |  | $ | 163 |  |  | $ | 158 |
(5) Consolidated Total Income (loss) from operations before income taxes reconciles to Income (loss) from operations before income taxes and equity in earnings of affiliated companies on the Consolidated Statements of Operations. Total Income (loss) from operations before income taxes that are categorized as Unallocated and Other includes:
|  | Years Ended September 30 |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (In millions) |
Interest expense |  | $ | (90 | ) |  | $ | (56 | ) |  | $ | (49 | )
Certain items:(a) |  |  |  |  |  |  |  |  |
Gain on sale of land |  |  | 1 |  |  |  | 17 |  |  |  | — |
Legal and environmental matters and reserves (Note S) |  |  | (10 | ) |  |  | (9 | ) |  |  | (25 | )
Argentina controlled currency devaluation loss |  |  | (7 | ) |  |  | — |  |  |  | — |
Acquisition and integration-related charges |  |  | (4 | ) |  |  | (6 | ) |  |  | (5 | )
Global restructuring activities |  |  | (4 | ) |  |  | (3 | ) |  |  | (11 | )
Loss on sale of business and asset impairment charge |  |  | (3 | ) |  |  | (207 | ) |  |  | — |
Other certain items |  |  | (2 | ) |  |  | — |  |  |  | (1 | )
Gain on bargain purchase of a business (Note C) |  |  | — |  |  |  | 24 |  |  |  | — |
Specialty Fluids divestiture related benefit |  |  | — |  |  |  | 5 |  |  |  | — |
Employee benefit plan settlement and other charges |  |  | — |  |  |  | 1 |  |  |  | (4 | )
Purification Solutions divestiture related charges |  |  | — |  |  |  | (5 | ) |  |  | — |
Indirect tax settlement credits |  |  | — |  |  |  | — |  |  |  | 12 |
Total certain items, pre-tax |  |  | (29 | ) |  |  | (183 | ) |  |  | (34 | )
Unallocated corporate costs(b) |  |  | (54 | ) |  |  | (59 | ) |  |  | (58 | )
General unallocated income (expense)(c) |  |  | 22 |  |  |  | 1 |  |  |  | — |
Less: Equity in earnings of affiliated companies, net of tax(d) |  |  | 5 |  |  |  | 10 |  |  |  | 3 |
Total |  | $ | (156 | ) |  | $ | (307 | ) |  | $ | (144 | )
(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 and dividend income, the profit or loss related to the corporate adjustment for unearned revenue, and unrealized holding gains (losses) for investments. (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 and equity in earnings from affiliated companies. (6) Unallocated and Other assets include cash, marketable securities, cost investments, income taxes receivable, deferred taxes, headquarters’ assets and current and non-current assets held for sale. (7) 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 |
|  | 2023 |  |  | 2022 |  |  | 2021 |
|  | (In millions) |
United States |  | $ | 738 |  |  | $ | 842 |  |  | $ | 668 |
China |  |  | 972 |  |  |  | 1,129 |  |  |  | 858 |
Other countries |  |  | 2,221 |  |  |  | 2,350 |  |  |  | 1,883 |
Total |  | $ | 3,931 |  |  | $ | 4,321 |  |  | $ | 3,409 |
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 |
|  | 2023 |  |  | 2022 |
|  | (In millions) |
United States |  | $ | 588 |  |  | $ | 524 |
China |  |  | 356 |  |  |  | 333 |
Other countries |  |  | 468 |  |  |  | 413 |
Total |  | $ | 1,412 |  |  | $ | 1,270 |
Revenues from External Customers by Geographic Region | Each of the Company’s segments operates 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, 2023 |
|  | Reinforcement Materials |  |  | Performance Chemicals |  |  | Purification Solutions |  |  | Consolidated Total |
|  | (In millions) |
Americas |  | $ | 1,046 |  |  | $ | 379 |  |  | $ | — |  |  | $ | 1,425 |
Asia Pacific |  |  | 995 |  |  |  | 491 |  |  |  | — |  |  |  | 1,486 |
Europe, Middle East and Africa |  |  | 522 |  |  |  | 355 |  |  |  | — |  |  |  | 877 |
Segment revenues from external customers |  |  | 2,563 |  |  |  | 1,225 |  |  |  | — |  |  |  | 3,788 |
Unallocated and other |  |  |  |  |  |  |  |  |  |  |  | 143 |
Net sales and other operating revenues |  |  |  |  |  |  |  |  |  |  | $ | 3,931 |
|  | Year Ended September 30, 2022 |
|  | Reinforcement Materials(1) |  |  | Performance Chemicals(1) |  |  | Purification Solutions |  |  | Consolidated Total |
|  | (In millions) |
Americas |  | $ | 1,072 |  |  | $ | 419 |  |  | $ | 43 |  |  | $ | 1,534 |
Asia Pacific |  |  | 1,049 |  |  |  | 567 |  |  |  | 14 |  |  |  | 1,630 |
Europe, Middle East and Africa |  |  | 552 |  |  |  | 402 |  |  |  | 40 |  |  |  | 994 |
Segment revenues from external customers |  |  | 2,673 |  |  |  | 1,388 |  |  |  | 97 |  |  |  | 4,158 |
Unallocated and other |  |  |  |  |  |  |  |  |  |  |  | 163 |
Net sales and other operating revenues |  |  |  |  |  |  |  |  |  |  | $ | 4,321 |
(1) Beginning in fiscal 2023, the Company began allocating energy center revenue to the applicable segment’s revenue. The Company recast prior period financial information to conform to the new presentation.
|  | Year Ended September 30, 2021 |
|  | Reinforcement Materials(1) |  |  | Performance Chemicals(1) |  |  | Purification Solutions |  |  | Consolidated Total |
|  | (In millions) |
Americas |  | $ | 708 |  |  | $ | 311 |  |  | $ | 110 |  |  | $ | 1,129 |
Asia Pacific |  |  | 777 |  |  |  | 489 |  |  |  | 34 |  |  | $ | 1,300 |
Europe, Middle East and Africa |  |  | 353 |  |  |  | 356 |  |  |  | 113 |  |  |  | 822 |
Segment revenues from external customers |  |  | 1,838 |  |  |  | 1,156 |  |  |  | 257 |  |  |  | 3,251 |
Unallocated and other |  |  |  |  |  |  |  |  |  |  |  | 158 |
Net sales and other operating revenues |  |  |  |  |  |  |  |  |  |  | $ | 3,409 |
(1) Beginning in fiscal 2023, the Company began allocating energy center revenue to the applicable segment’s revenue. The Company recast prior period financial information to conform to the new presentation.

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