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Financial Information by Segment (Tables) | 9 Months Ended
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Jun. 30, 2023
Segment Reporting [Abstract] |
Financial Information by Reportable Segment | Financial information by reportable segment is as follows:
|  | Reinforcement Materials |  |  | Performance Chemicals |  |  | Purification Solutions |  |  | Segment Total |  |  | Unallocated and Other(1) |  |  | Consolidated Total |
|  | (In millions) |
Three Months Ended June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers(3) |  | $ | 624 |  |  | $ | 307 |  |  | $ | — |  |  | $ | 931 |  |  | $ | 37 |  |  | $ | 968 |
Income (loss) before income taxes(4) |  | $ | 132 |  |  | $ | 32 |  |  | $ | — |  |  | $ | 164 |  |  | $ | (34 | ) |  | $ | 130 |
Three Months Ended June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers(2)(3) |  | $ | 730 |  |  | $ | 376 |  |  | $ | — |  |  | $ | 1,106 |  |  | $ | 43 |  |  | $ | 1,149 |
Income (loss) before income taxes(4) |  | $ | 113 |  |  | $ | 63 |  |  | $ | — |  |  | $ | 176 |  |  | $ | (24 | ) |  | $ | 152 |
Nine Months Ended June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers(3) |  | $ | 1,939 |  |  | $ | 919 |  |  | $ | — |  |  | $ | 2,858 |  |  | $ | 108 |  |  | $ | 2,966 |
Income (loss) before income taxes(4) |  | $ | 348 |  |  | $ | 89 |  |  | $ | — |  |  | $ | 437 |  |  | $ | (113 | ) |  | $ | 324 |
Nine Months Ended June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from external customers(2)(3) |  | $ | 1,947 |  |  | $ | 1,045 |  |  | $ | 97 |  |  | $ | 3,089 |  |  | $ | 120 |  |  | $ | 3,209 |
Income (loss) before income taxes(4) |  | $ | 299 |  |  | $ | 185 |  |  | $ | — |  |  | $ | 484 |  |  | $ | (278 | ) |  | $ | 206 |
(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) Beginning in fiscal 2023, the Company began allocating energy center by-product revenue within the applicable segment’s Revenue from external customers. The Company recast prior period financial information to conform to the new presentation. The allocation of such revenue resulted in an increase of $23 million in the Reinforcement Materials segment and $4 million in the Performance Chemicals segment, respectively, with an offsetting decrease in Unallocated and Other revenue for the three months ended June 30, 2022. The allocation of such revenue resulted in an increase of $72 million in the Reinforcement Materials segment and $11 million in the Performance Chemicals segment, respectively, with an offsetting decrease in Unallocated and Other revenue for the nine months ended June 30, 2022. There was no impact to the Consolidated Total Revenues from external customers. (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, discounting charges for certain Notes receivable, and other by-product revenue. Details are provided in the table below:
|  | Three Months Ended June 30 |  |  | Nine Months Ended June 30 |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | (In millions) |
Shipping and handling fees |  | $ | 31 |  |  | $ | 44 |  |  | $ | 100 |  |  | $ | 124 |
Other |  |  | 6 |  |  |  | (1 | ) |  |  | 8 |  |  |  | (4 | )
Total |  | $ | 37 |  |  | $ | 43 |  |  | $ | 108 |  |  | $ | 120 |
(4) Consolidated Total Income (loss) before income taxes reconciles to Income (loss) before income taxes and equity in earnings of affiliated companies on the Consolidated Statements of Operations. Income (loss) before income taxes that are categorized as Unallocated and Other includes:
|  | Three Months Ended June 30 |  |  | Nine Months Ended June 30 |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | (In millions) |
Interest expense |  | $ | (24 | ) |  | $ | (15 | ) |  | $ | (69 | ) |  | $ | (38 | )
Certain items(a) |  |  |  |  |  |  |  |  |  |  |  |
Gain on bargain purchase of a business (Note C) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 24 |
Gain on sale of land |  |  | — |  |  |  | 17 |  |  |  | 1 |  |  |  | 17 |
Loss on sale of business and asset impairment charge (Note D) |  |  | — |  |  |  | (2 | ) |  |  | (3 | ) |  |  | (206 | )
Legal and environmental matters and reserves |  |  | — |  |  |  | (1 | ) |  |  | (2 | ) |  |  | (9 | )
Acquisition and integration-related charges |  |  | (1 | ) |  |  | (1 | ) |  |  | (2 | ) |  |  | (4 | )
Divestiture related charges |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (5 | )
Global restructuring activities |  |  | — |  |  |  | (1 | ) |  |  | — |  |  |  | (3 | )
Other |  |  | — |  |  |  | — |  |  |  | (1 | ) |  |  | 1 |
Total certain items, pre-tax |  |  | (1 | ) |  |  | 12 |  |  |  | (7 | ) |  |  | (185 | )
Unallocated corporate costs(b) |  |  | (11 | ) |  |  | (15 | ) |  |  | (42 | ) |  |  | (45 | )
General unallocated income (expense)(c) |  |  | 3 |  |  |  | (3 | ) |  |  | 9 |  |  |  | (3 | )
Less: Equity in earnings of affiliated companies, net of tax(d) |  |  | 1 |  |  |  | 3 |  |  |  | 4 |  |  |  | 7 |
Total |  | $ | (34 | ) |  | $ | (24 | ) |  | $ | (113 | ) |  | $ | (278 | )
(a) Certain items are items of expense and income that management does not consider representative of the Company’s fundamental on-going segment results and they are, therefore, excluded from Segment EBIT. (b) Unallocated corporate costs are costs that 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 in Unallocated and other to reconcile to Income (loss) from operations before income taxes and equity in earnings from affiliated companies.
Revenues from External Customers by Geographic Region | The Company’s segments operate globally. In addition to presenting Revenue from external customers by reportable segment, the following tables further disaggregate Revenues from external customers by geographic region.
|  | Three Months Ended June 30, 2023 |
|  | Reinforcement Materials |  |  | Performance Chemicals |  |  | Purification Solutions |  |  | Consolidated Total |
|  | (In millions) |
Americas |  | $ | 260 |  |  | $ | 94 |  |  | $ | — |  |  | $ | 354 |
Asia Pacific |  |  | 234 |  |  |  | 119 |  |  |  | — |  |  |  | 353 |
Europe, Middle East and Africa |  |  | 130 |  |  |  | 94 |  |  |  | — |  |  |  | 224 |
Segment revenues from external customers |  |  | 624 |  |  |  | 307 |  |  |  | — |  |  |  | 931 |
Unallocated and other |  |  |  |  |  |  |  |  |  |  |  | 37 |
Net sales and other operating revenues |  |  |  |  |  |  |  |  |  |  | $ | 968 |
|  | Three Months Ended June 30, 2022 |
|  | Reinforcement Materials |  |  | Performance Chemicals |  |  | Purification Solutions |  |  | Consolidated Total |
|  | (In millions) |
Americas |  | $ | 302 |  |  | $ | 114 |  |  | $ | — |  |  | $ | 416 |
Asia Pacific |  |  | 265 |  |  |  | 147 |  |  |  | — |  |  |  | 412 |
Europe, Middle East and Africa |  |  | 163 |  |  |  | 115 |  |  |  | — |  |  |  | 278 |
Segment revenues from external customers |  |  | 730 |  |  |  | 376 |  |  |  | — |  |  |  | 1,106 |
Unallocated and other |  |  |  |  |  |  |  |  |  |  |  | 43 |
Net sales and other operating revenues |  |  |  |  |  |  |  |  |  |  | $ | 1,149 |
|  | Nine Months Ended June 30, 2023 |
|  | Reinforcement Materials |  |  | Performance Chemicals |  |  | Purification Solutions |  |  | Consolidated Total |
|  | (In millions) |
Americas |  | $ | 781 |  |  | $ | 283 |  |  | $ | — |  |  | $ | 1,064 |
Asia Pacific |  |  | 752 |  |  |  | 368 |  |  |  | — |  |  |  | 1,120 |
Europe, Middle East and Africa |  |  | 406 |  |  |  | 268 |  |  |  | — |  |  |  | 674 |
Segment revenues from external customers |  |  | 1,939 |  |  |  | 919 |  |  |  | — |  |  |  | 2,858 |
Unallocated and other |  |  |  |  |  |  |  |  |  |  |  | 108 |
Net sales and other operating revenues |  |  |  |  |  |  |  |  |  |  | $ | 2,966 |
|  | Nine Months Ended June 30, 2022 |
|  | Reinforcement Materials |  |  | Performance Chemicals |  |  | Purification Solutions |  |  | Consolidated Total |
|  | (In millions) |
Americas |  | $ | 767 |  |  | $ | 314 |  |  | $ | 43 |  |  | $ | 1,124 |
Asia Pacific |  |  | 773 |  |  |  | 422 |  |  |  | 14 |  |  |  | 1,209 |
Europe, Middle East and Africa |  |  | 407 |  |  |  | 309 |  |  |  | 40 |  |  |  | 756 |
Segment revenues from external customers |  |  | 1,947 |  |  |  | 1,045 |  |  |  | 97 |  |  |  | 3,089 |
Unallocated and other |  |  |  |  |  |  |  |  |  |  |  | 120 |
Net sales and other operating revenues |  |  |  |  |  |  |  |  |  |  | $ | 3,209 |

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