Financial Information by Segment (Tables)

6 Months Ended

Mar. 31, 2022

The net sales from each of these businesses for the three and six months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended March 31				Six Months Ended March 31
	2022		2021		2022		2021
	(In millions)
Performance Additives	$	266	$	203	$	493	$	387
Formulated Solutions		94		91		169		174
Total Performance Chemicals	$	360	$	294	$	662	$	561

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 March 31, 2022
Revenues from external customers⁽²⁾	$	627	$	360	$	36	$	1,023	$	69		$	1,092
Income (loss) before income taxes⁽³⁾	$	101	$	70	$	—	$	171	$	(24	)	$	147

Three Months Ended March 31, 2021
Revenues from external customers⁽²⁾	$	434	$	294	$	63	$	791	$	51		$	842
Income (loss) before income taxes⁽³⁾	$	89	$	58	$	2	$	149	$	(31	)	$	118

Six Months Ended March 31, 2022
Revenues from external customers⁽²⁾	$	1,168	$	662	$	97	$	1,927	$	133		$	2,060
Income (loss) before income taxes⁽³⁾	$	186	$	122	$	—	$	308	$	(254	)	$	54

Six Months Ended March 31, 2021
Revenues from external customers⁽²⁾	$	809	$	561	$	122	$	1,492	$	96		$	1,588
Income (loss) before income taxes⁽³⁾	$	177	$	112	$	—	$	289	$	(72	)	$	217

⁽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 March 31						Six Months Ended March 31
	2022			2021			2022			2021
	(In millions)
Shipping and handling fees	$	41		$	38		$	80		$	71
By-product sales		33			18			61			35
Other		(5	)		(5	)		(8	)		(10	)
Total	$	69		$	51		$	133		$	96

⁽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 March 31						Six Months Ended March 31
	2022			2021			2022			2021
	(In millions)
Interest expense	$	(11	)	$	(13	)	$	(23	)	$	(25	)
Certain items^(a)
Gain on bargain purchase of a business (Note C)		24			—			24			—
Loss on sale of business and asset impairment charge (Note D)		(7	)		—			(204	)		—
Legal and environmental matters and reserves		(7	)		—			(8	)		—
Divestiture related charges		(1	)		—			(5	)		—
Acquisition and integration-related charges		(2	)		(1	)		(3	)		(2	)
Global restructuring activities		—			(1	)		(2	)		(4	)
Employee benefit plan settlement and other charges		—			1			—			(5	)
Other		—			—			1			(1	)
Total certain items, pre-tax		7			(1	)		(197	)		(12	)
Unallocated corporate costs^(b)		(16	)		(16	)		(30	)		(29	)
General unallocated income (expense)^(c)		(1	)		—			—			(5	)
Less: Equity in earnings of affiliated companies, net of tax^(d)		3			1			4			1
Total	$	(24	)	$	(31	)	$	(254	)	$	(72	)

^(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 March 31, 2022
	Reinforcement Materials		Performance Chemicals		Purification Solutions		Consolidated Total
	(In millions)
Americas	$	252	$	110	$	16	$	378
Asia Pacific		245		138		6		389
Europe, Middle East and Africa		130		112		14		256
Segment revenues from external customers		627		360		36		1,023
Unallocated and other								69
Net sales and other operating revenues							$	1,092

	Three Months Ended March 31, 2021
	Reinforcement Materials		Performance Chemicals		Purification Solutions		Consolidated Total
	(In millions)
Americas	$	163	$	78	$	26	$	267
Asia Pacific		185		122		9		316
Europe, Middle East and Africa		86		94		28		208
Segment revenues from external customers		434		294		63		791
Unallocated and other								51
Net sales and other operating revenues							$	842

	Six Months Ended March 31, 2022
	Reinforcement Materials		Performance Chemicals		Purification Solutions		Consolidated Total
	(In millions)
Americas	$	458	$	200	$	43	$	701
Asia Pacific		485		274		14		773
Europe, Middle East and Africa		225		188		40		453
Segment revenues from external customers		1,168		662		97		1,927
Unallocated and other								133
Net sales and other operating revenues							$	2,060

	Six Months Ended March 31, 2021
	Reinforcement Materials		Performance Chemicals		Purification Solutions		Consolidated Total
	(In millions)
Americas	$	312	$	147	$	51	$	510
Asia Pacific		340		240		18		598
Europe, Middle East and Africa		157		174		53		384
Segment revenues from external customers		809		561		122		1,492
Unallocated and other								96
Net sales and other operating revenues							$	1,588