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Financial Information by Segment (Tables)
 6 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Schedule of Performance Segment

The net sales from each of these businesses for the three and six months ended March 31, 2016 and 2015 are as follows:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(Dollars in millions)

 

Specialty Carbons and Formulations

 

$

145

 

 

$

162

 

 

$

285

 

 

$

319

 

Metal Oxides

 

 

71

 

 

 

75

 

 

 

138

 

 

 

147

 

Total Performance Chemicals

 

$

216

 

 

$

237

 

 

$

423

 

 

$

466

 

 
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 March 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

261

 

 

$

216

 

 

$

67

 

 

$

6

 

 

$

550

 

 

$

18

 

 

$

568

 

Income (loss) from continuing operations

   before taxes(3)

 

$

34

 

 

$

58

 

 

$

(2

)

 

$

(2

)

 

$

88

 

 

$

(26

)

 

$

62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

358

 

 

$

237

 

 

$

71

 

 

$

8

 

 

$

674

 

 

$

20

 

 

$

694

 

Income (loss) from continuing operations

   before taxes(3)

 

$

27

 

 

$

42

 

 

$

1

 

 

$

(1

)

 

$

69

 

 

$

(30

)

 

$

39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended March 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

549

 

 

$

423

 

 

$

133

 

 

$

13

 

 

$

1,118

 

 

$

53

 

 

$

1,171

 

Income (loss) from continuing operations

   before taxes(3)

 

$

60

 

 

$

108

 

 

$

(7

)

 

$

(2

)

 

$

159

 

 

$

(105

)

 

$

54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from external customers(2)

 

$

818

 

 

$

466

 

 

$

147

 

 

$

24

 

 

$

1,455

 

 

$

51

 

 

$

1,506

 

Income (loss) from continuing operations

   before taxes(3)

 

$

80

 

 

$

81

 

 

$

—

 

 

$

5

 

 

$

166

 

 

$

(76

)

 

$

90

 

 

(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

 

 

Six Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(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

)

 

$

(8

)

 

$

—

 

 

$

(4

)

Shipping and handling fees

 

 

27

 

 

 

28

 

 

 

53

 

 

 

55

 

Total

 

$

18

 

 

$

20

 

 

$

53

 

 

$

51

 

 

(3)

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(Dollars in millions)

 

Interest expense

 

$

(14

)

 

$

(14

)

 

$

(27

)

 

$

(27

)

Total certain items, pre-tax(a)

 

 

1

 

 

 

(6

)

 

 

(57

)

 

 

(32

)

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

 

 

(1

)

 

 

(2

)

 

 

(1

)

 

 

(3

)

Unallocated corporate costs(c)

 

 

(12

)

 

 

(11

)

 

 

(25

)

 

 

(23

)

General unallocated income (expense)(d)

 

 

—

 

 

 

3

 

 

 

5

 

 

 

9

 

Total

 

$

(26

)

 

$

(30

)

 

$

(105

)

 

$

(76

)

 

 

(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 March 31, 2016 include a $5 million benefit related to global restructuring activities, $3 million of net foreign currency impacts related to a loss on the devaluation of the Argentine peso, which was partially offset by a gain on the devaluation of the Venezuelan bolivar, and $1 million related to legal and environmental matters and reserves. Certain items, pre-tax, for the six months ended March 31, 2016 include $43 million related to global restructuring activities, $11 million related to net foreign currency impacts related to a loss on the devaluation of the Argentine peso, which was partially offset by a gain on the devaluation of the Venezuelan bolivar, and $3 million related to legal and environmental matters and reserves. Certain items, pre-tax, for the three months ended March 31, 2015 include a $5 million charge related to global restructuring activities and $1 million for acquisition and integration-related charges. Certain items, pre-tax, for the six months ended March 31, 2015 include a $12 million charge related to global restructuring activities, $2 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.