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Financial Information by Segment (Tables)

3 Months Ended

Dec. 31, 2021

The net sales from each of these businesses for the three months ended December 31, 2021 and 2020 were as follows:

	Three Months Ended December 31
	2021		2020
	(In millions)
Performance Additives	$	227	$	184
Formulated Solutions		75		83
Total Performance Chemicals	$	302	$	267

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 December 31, 2021
Revenues from external customers⁽²⁾	$	541	$	302	$	61		$	904	$	64		$	968
Income (loss) before income taxes⁽³⁾	$	85	$	52	$	—		$	137	$	(230	)	$	(93	)

Three Months Ended December 31, 2020
Revenues from external customers⁽²⁾	$	375	$	267	$	59		$	701	$	45		$	746
Income (loss) before income taxes⁽³⁾	$	88	$	54	$	(2	)	$	140	$	(41	)	$	99

⁽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⁾

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 by-product revenue. Details are provided in the table below:

	Three Months Ended December 31
	2021			2020
	(In millions)
Shipping and handling fees	$	39		$	33
By-product sales		28			17
Other		(3	)		(5	)
Total	$	64		$	45

⁽³⁾	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 December 31
	2021			2020
	(In millions)
Interest expense	$	(12	)	$	(12	)
Certain items^(a)
Purification Solutions assets held for sale impairment charge (Note D)		(197	)		—
Divestiture related charges		(4	)		—
Global restructuring activities (Note K)		(2	)		(3	)
Legal and environmental matters and reserves		(1	)		—
Acquisition and integration-related charges		(1	)		(1	)
Employee benefit plan settlement and other charges		—			(6	)
Other		1			(1	)
Total certain items, pre-tax		(204	)		(11	)
Unallocated corporate costs^(b)		(14	)		(13	)
General unallocated income (expense)^(c)		1			(5	)
Less: Equity in earnings of affiliated companies, net of tax^(d)		1			—
Total	$	(230	)	$	(41	)

^(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, the impact of including the full operating results of a contractual joint venture in Purification Solutions Segment EBIT and unrealized holding gains (losses) for equity securities.

^(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 December 31, 2021
	Reinforcement Materials		Performance Chemicals		Purification Solutions		Consolidated Total
	(In millions)
Americas	$	206	$	90	$	27	$	323
Asia Pacific		240		136		8		384
Europe, Middle East and Africa		95		76		26		197
Segment revenues from external customers		541		302		61		904
Unallocated and other								64
Net sales and other operating revenues							$	968

	Three Months Ended December 31, 2020
	Reinforcement Materials		Performance Chemicals		Purification Solutions		Consolidated Total
	(In millions)
Americas	$	149	$	69	$	25	$	243
Asia Pacific		155		118		9		282
Europe, Middle East and Africa		71		80		25		176
Segment revenues from external customers		375		267		59		701
Unallocated and other								45
Net sales and other operating revenues							$	746