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Financial Information by Segment (Tables)
 3 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Schedule of Performance Segment

The net sales from each of these businesses for the three months ended December 31, 2015 and 2014 are as follows:

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

 

 

(Dollars in millions)

 

Specialty Carbons and Formulations

 

$

140

 

 

$

157

 

Metal Oxides

 

 

67

 

 

 

72

 

Total Performance Chemicals

 

$

207

 

 

$

229

 

 

Financial Information by Reportable Segment

Financial information by reportable segment is as follows:

 

 

 

Reinforcement

Materials

 

 

Performance

Chemicals

 

 

Purification

Solutions

 

 

Specialty

Fluids

 

 

Segment

Total

 

 

Unallocated

and Other(1)

 

 

Consolidated

Total

 

 

 

(Dollars in millions)

 

Three Months Ended December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

288

 

 

$

207

 

 

$

66

 

 

$

7

 

 

$

568

 

 

$

35

 

 

$

603

 

Income (loss) from continuing operations

   before taxes(3)

 

$

26

 

 

$

50

 

 

$

(5

)

 

$

—

 

 

$

71

 

 

$

(79

)

 

$

(8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

460

 

 

$

229

 

 

$

76

 

 

$

16

 

 

$

781

 

 

$

31

 

 

$

812

 

Income (loss) from continuing operations

   before taxes(3)

 

$

53

 

 

$

39

 

 

$

(1

)

 

$

6

 

 

$

97

 

 

$

(46

)

 

$

51

 

 

(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 Chief Operating Decision Maker.

(2)“Unallocated and Other revenues from external customers” reflects royalties, other operating revenues, external shipping and handling costs, 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:

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

 

 

(Dollars in millions)

 

Royalties, other operating revenues, the impact of unearned revenue, the

   removal of 100% of the sales of an equity method affiliate and discounting

   charges for certain Notes receivable.

 

$

9

 

 

$

4

 

Shipping and handling fees

 

 

26

 

 

 

27

 

Total

 

$

35

 

 

$

31

 

 

(3)Income (loss) from continuing operations before taxes that are categorized as Unallocated and Other includes:

 

 

 

Three Months Ended

 

 

 

December 31,

 

 

 

2015

 

 

2014

 

 

 

(Dollars in millions)

 

Interest expense

 

$

(13

)

 

$

(13

)

Total certain items, pre-tax(a)

 

 

(58

)

 

 

(26

)

Equity in (earnings) loss of affiliated companies, net of tax(b)

 

 

—

 

 

 

(1

)

Unallocated corporate costs(c)

 

 

(13

)

 

 

(12

)

General unallocated income(d)

 

 

5

 

 

 

6

 

Total

 

$

(79

)

 

$

(46

)

 

(a)Certain items are items that management does not consider to be representative of operating segment results and they are, therefore, excluded from Segment EBIT. Certain items, pre-tax, for the three months ended December 31, 2015 include $48 million related to global restructuring activities, $8 million related to foreign currency loss on the devaluation of the Argentine peso, and $2 million related to legal and environmental matters and reserves. Certain items, pre-tax, for the three months ended December 31, 2014 include $7 million related to global restructuring activities, $1 million for acquisition and integration-related charges and $18 million related to an employee benefit plan settlement charge.

(b)Equity in (earnings) loss 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.

(c)Unallocated corporate costs are not controlled by the segments and primarily benefit corporate interests.

(d)General unallocated income consists of gains (losses) arising from foreign currency transactions, net of other foreign currency risk management activities, the impact of accounting for certain inventory on a LIFO basis, the profit or loss related to the corporate adjustment for unearned revenue, and the impact of including the full operating results of an equity affiliate in Purification Solutions Segment EBIT.